WESLACO, Texas - One of the pieces of legislation state Sen. Adam Hinojosa was most proud of passing during the 89th Legislature was Senate Bill 1169.
The bill expands the authority of public utility agencies to issue bonds and secure funding for infrastructure projects.
Hinojosa says the aim of the bill is to make it easier for different agencies to work together on water projects that they might not be able to fulfill on their own.
The Rio Grande Guardian caught up with Sen. Hinojosa at a recent meeting hosted by the Associated Builders & Contractors Texas Coastal Bend and held at the offices of the Rio Grande Valley Partnership.
Hinojosa spoke about SB 1169 at the meeting. He said he is now going to different communities around the Rio Grande Valley to explain the bill and how it can be a game changer for the region.
Here is our interview:
Here is the official analysis for SB 1169:
S.B. 1169 expands the authority of public utility agencies (PUAs) in Texas by clarifying their ability to issue bonds, impose assessments, and secure funding for infrastructure projects. Under current law, PUAs operate as independent political entities with corporate powers similar to municipal retail utilities, but their financial tools are limited.
Current law does not explicitly authorize PUAs to leverage financing from the North American Development Bank (NADB), which provides funding for water and environmental infrastructure projects. Additionally, the process for municipalities to join or withdraw from PUAs is regulated but lacks streamlined procedures, making regional cooperation more complex. Ratepayers currently have limited ability to appeal rate increases imposed by PUAs, as there is no clear statutory provision allowing for direct appeals to the Public Utility Commission of Texas (PUC).
S.B. 1169 modifies the Local Government Code and the Water Code to allow PUAs to issue revenue bonds and anticipation notes, reducing reliance on state funding. The bill grants PUAs the authority to impose special assessments to generate revenue for infrastructure projects. It also explicitly permits PUAs to access financing from NADB, expanding their ability to secure funds for water and utility improvements.
The legislation refines the process for adding or withdrawing public entities from PUAs, facilitating regional collaboration and efficiency in utility service management. Additionally, S.B. 1169 introduces consumer protections by establishing a statutory right for ratepayers to appeal rate increases to the PUC.
By granting PUAs expanded financial tools and regulatory clarity, S.B. 1169 addresses existing limitations in funding mechanisms and governance structures. The bill provides a framework for improving infrastructure financing while maintaining oversight to ensure compliance with state regulations.
