HB2692

Regular Session

Relating to the San Antonio River Authority.

ModeratePlan for compliance

Medium Cost

Effective:2025-05-29

Enforcing Agencies

San Antonio River Authority • Texas Commission on Environmental Quality (Supervisory role) • Parks and Wildlife Department (Fish preservation rules)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: May 29, 2025 (Law is currently active).
Compliance Deadline: Immediate. Franchise operators must align accounting practices now. Developers must verify SARA flood plain designations before breaking ground.
Agency Rulemaking: The SARA Board must adopt bylaws for procurement and policies for nonprofit fundraising. Critical Warning: New ordinances regarding pollution and public safety take effect 5 days after their second weekly publication in local newspapers. There is no central digital registry requirement; you must monitor print media.

Immediate Action Plan

1. Audit Franchise Terms: Immediately review river operation contracts for term limits and rate control clauses; prepare for SARA to assert rate-setting authority.
2. Monitor Pollution Districts: Assign staff to watch Board agendas for the creation of "Pollution Control Districts." You have a strict 30-day window to file a lawsuit contesting inclusion in such a district.
3. Verify Eminent Domain: Before negotiating land sales, Legal Counsel must verify if SARA filed the required expiration exemption letter with the Comptroller. If they failed to do so, they may lack condemnation power.
4. Update Bid Monitoring: Adjust procurement workflows to monitor local newspapers (San Antonio Express-News and county papers) for bid notices, as digital-only notice is not the standard.

Operational Changes Required

Contracts

Franchise Agreements: Review all agreements for operations on navigable canals/waterways. Terms exceeding 50 years are now statutorily invalid. If your contract is silent on rate regulation, be advised that SARA now has the statutory right to regulate your fees and tolls.
Wholesale Water: You cannot execute a wholesale water supply contract with SARA until a public notice has been published. Build a 3-week buffer into closing schedules to accommodate this statutory delay.
Construction Bids: Contracts are awarded to the "lowest and best" bidder. If you are not the low bidder, you must provide documentation justifying why your bid offers superior value to survive a challenge.

Hiring/Training

Accounting Staff: Finance teams for franchise holders must be trained to maintain "uniform and adequate analytic accounting systems." SARA has the right to demand these specific reports to justify your rates.
Board Interaction: If your business interacts with SARA Directors, verify they have filed their required $5,000 bond and sworn statement. Acts by unbonded officers may be legally voidable.

Reporting & Record-Keeping

Franchise Financials: Maintain segregated accounts for all river-derived revenue. This data will be your primary defense if SARA attempts to aggressively regulate your consumer rates.
Pollution Control: If a "Pollution Control District" is established over your property, you must document compliance with specific discharge rules to avoid civil penalties.

Fees & Costs

Ad Valorem Tax: The Authority is capped at 2 cents per $100 valuation, subject to voter approval.
Ordinance Filing: Expect standard county recording fees for accessing new Authority ordinances.
Litigation Risk: SARA is authorized to recover litigation costs in civil suits regarding rule violations.

Strategic Ambiguities & Considerations

"Thermal" and "Artificial" Pollution: The law allows SARA to regulate these types of pollution without defining them. Industrial facilities discharging cooling water or aesthetic runoff are in a "regulatory gray zone" until the Board adopts specific technical definitions.
Flood Plain Designation: SARA may "study, designate, and regulate flood plains." This authority likely exceeds FEMA maps. Land that is federally insurable may still be restricted by SARA ordinance, potentially stranding assets.
"Reasonable" Penalties: The statute permits "reasonable and commensurate" civil penalties. Until tested in court, the upper limit of these fines is discretionary and subjective.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsSan Antonio River Authority San Antonio River Canal & Conservancy District Special Districts & Authorities Special Districts & Authorities--river Authorities Statutory Revision

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

C.S.H.B. 2692

By: Guillen

Natural Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that the current laws governing the San Antonio River Authority (SARA) are fragmented and outdated, leading to inefficiencies and confusion regarding SARA's powers, governance, and operations. The bill author has also informed the committee that as SARA manages critical water conservation, flood control, and environmental initiatives, it is essential that SARA's enabling legislation be clearly structured. The Sunset Advisory Commission in 2022 found that SARA's governing law is outdated and difficult for the public and SARA to find and understand, and recommended codification. C.S.H.B. 2692 seeks to address this issue by codifying and updating SARA's enabling legislation in order to make the legislation clearer, more consistent, and easier to navigate for the public, stakeholders, and SARA itself.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2692 amends the Special District Local Laws Code to codify and update the enabling legislation of the San Antonio River Authority.

C.S.H.B. 2692 repeals the following provisions:

·Chapter 276, Acts of the 45th Legislature, Regular Session, 1937;

·Section 2, Chapter 504, Acts of the 55th Legislature, Regular Session, 1957;

·Sections 25, 26, 27, and 28, Chapter 233, Acts of the 57th Legislature, Regular Session, 1961;

·Sections 10, 11, and 12, Chapter 836, Acts of the 61st Legislature, Regular Session, 1969;

·Section 2, Chapter 604, Acts of the 64th Legislature, Regular Session, 1975;

·Sections 4 and 5, Chapter 60, Acts of the 67th Legislature, Regular Session, 1981;

·Sections 2 and 3, Chapter 701, Acts of the 70th Legislature, Regular Session, 1987; and

·Sections 13 and 14, Chapter 179, Acts of the 88th Legislature, Regular Session, 2023.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

C.S.H.B. 2692 differs from the introduced in minor or nonsubstantive ways by conforming to certain bill drafting conventions.

House Authors

Rep. Ryan GuillenRepublican · Primary Author

Senate Sponsors

Sen. Charles PerryRepublican · Primary Sponsor

Cosponsors (1)

Jose Menendez (D)

Bill Text(with markup)

H.B. No. 2692

AN ACT

relating to the San Antonio River Authority.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle G, Title 6, Special District Local Laws

Code, is amended by adding Chapter 8513 to read as follows:

CHAPTER 8513. SAN ANTONIO RIVER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8513.0101. DEFINITIONS. In this chapter:

(1) "Authority" means the San Antonio River Authority.

(2) "Board" means the authority's board of directors.

(3) "Commission" means the Texas Commission on

Environmental Quality.

(4) "Director" means a board member.

(5) "Flood plain" means the area of the channel of a

river or stream and those portions of land abutting and adjacent to

the channel that are reasonably required to carry floodwaters.

(6) "San Antonio River Basin" means all of the area

except for Bandera, Real, and Kerr Counties that has topographic

characteristics causing surface waters to flow into the San Antonio

River and its tributaries.

(7) "State" means the State of Texas or any of its

agencies, departments, boards, political subdivisions, or other

entities.

Sec. 8513.0102. NATURE OF AUTHORITY. (a) The authority is

a conservation and reclamation district under Section 59, Article

XVI, Texas Constitution.

(b) The authority's creation is essential to accomplish the

purposes of Section 59, Article XVI, Texas Constitution, including:

(1) construction, maintenance, and operation of

navigable canals and waterways; and

(2) control of the waters of all rivers, streams, and

tributaries of rivers and streams inside the authority.

Sec. 8513.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.

All land included in the authority will benefit by the exercise of

power conferred by this chapter.

Sec. 8513.0104. REVIEW SCHEDULE UNDER SUNSET ACT. A review

of the authority under Section 325.025, Government Code, shall be

conducted as if the authority were a state agency scheduled to be

abolished September 1, 2035, and every 12th year after that year.

Sec. 8513.0105. TERRITORY. Unless modified under

Subchapter J, Chapter 49, Water Code, or other law, the authority's

territory includes all of that part of this state in the boundaries

of Bexar, Wilson, Karnes, and Goliad Counties.

Sec. 8513.0106. EFFECT OF CHAPTER ON CERTAIN PERSONS OR

ENTITIES. (a) If any power granted to the authority by this

chapter overlaps or conflicts with any power of the

Guadalupe-Blanco River Authority, the power granted to the

Guadalupe-Blanco River Authority supersedes the power granted to

the authority by this chapter, unless the Guadalupe-Blanco River

Authority consents to the authority's exercise of the power.

(b) No provision of this chapter divests any person of any

vested:

(1) riparian right;

(2) right derived under an existing permit for the

appropriation and use of public waters issued by the commission; or

(3) right derived under any certified filing with the

commission.

Sec. 8513.0107. LIBERAL CONSTRUCTION OF CHAPTER. This

chapter shall be liberally construed to effect its purposes.

Sec. 8513.0108. CORRECTION OF INVALID PROCEDURES. If the

board determines that any procedure under this chapter violates the

Texas Constitution or the United States Constitution, the board by

ordinance may provide an alternative procedure that conforms with

the constitution.

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec. 8513.0201. DIRECTORS; TERMS; QUALIFICATIONS. (a) The

board consists of 12 directors elected as follows:

(1) two directors elected at large from Goliad County;

(2) two directors elected at large from Karnes County;

(3) two directors elected at large from Wilson County;

(4) two directors elected at large from Bexar County;

and

(5) one director elected from each single-member

district representing the four county commissioner precincts in

Bexar County.

(b) Directors serve staggered four-year terms. An elected

director's term begins January 1 following the date of the

director's election.

(1) be at least 21 years of age;

(2) reside within the authority;

(3) reside in the county from which the director is

elected or appointed; and

(4) possess the qualifications of a juror.

(d) A director elected from a single-member district must

reside in the district from which the director is elected.

Sec. 8513.0202. DIRECTOR ELECTIONS. (a) The authority

shall hold an election to elect the appropriate number of directors

on the uniform election date in November of each odd-numbered year.

(b) The placing of the names of the candidates on the

ballots shall be determined by lot. A candidate or a designated

representative of the candidate may be present at the drawing.

winner shall be determined by a majority of the board.

(d) Directors serving from single-member districts at the

time new single-member districts are adopted shall serve for the

remainder of the terms to which they were elected regardless of the

redistricting.

Sec. 8513.02025. CERTAIN DIRECTOR TERMS. (a) This section

applies only to the term of a director who is appointed or elected

on or after May 24, 2023.

(b) The two at-large director positions for Bexar County

shall be scheduled for election on the November uniform election

date in 2023. The person who receives the highest number of votes

shall be elected to the first at-large Bexar County director

position and shall serve a four-year term beginning January 1,

2024, and ending December 31, 2027. An election shall be scheduled

for that position on the November uniform election date in 2027 and

every four years thereafter. The person who receives the second

highest number of votes shall be elected to the second at-large

Bexar County director position and shall serve a two-year term

beginning January 1, 2024, and ending December 31, 2025. An

election shall be scheduled for that position on the November

uniform election date in 2025 and every four years thereafter for a

four-year term beginning on January 1 of the year following each

election.

election on the November uniform election date in 2025 and every

four years thereafter, and the directors elected to each position

shall serve four-year terms beginning January 1 of the year

following each election:

(1) the single-member district director elected from

Bexar County commissioners court precinct 1;

(2) the single-member district director elected from

Bexar County commissioners court precinct 2;

(3) the at-large director position for Karnes County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2019;

(4) the at-large director position for Goliad County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2019; and

(5) the at-large director position for Wilson County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2019.

(d) The following director positions shall be scheduled for

election on the November uniform election date in 2027 and every

four years thereafter, and the directors elected to those director

positions shall serve four-year terms beginning January 1 of the

year following each election:

(1) the single-member district director elected from

Bexar County commissioners court precinct 3;

(2) the single-member district director elected from

Bexar County commissioners court precinct 4;

(3) the at-large director position for Karnes County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2021;

(4) the at-large director position for Goliad County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2021; and

(5) the at-large director position for Wilson County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2021.

(e) The members of the board of directors serving in the

director positions described by Subsections (b), (c), and (d) on

May 23, 2023, shall continue to serve until their successors have

been elected and qualified.

(f) This section expires September 1, 2029.

Sec. 8513.0203. SUSPENSION AND REMOVAL. (a) A director or

officer may be suspended or removed from office for:

(1) incompetency;

(2) official misconduct;

(3) official gross negligence;

(4) habitual drunkenness; or

(5) nonattendance at six consecutive regular board

meetings.

(b) A director or officer may not be suspended or removed

from office unless:

(1) charges against the director or officer are filed

in writing; and

(2) the director or officer is given an opportunity

for a fair hearing before the board.

directors is required to suspend or remove a director or officer.

Sec. 8513.0204. VACANCY. The governor, with the advice and

consent of the senate, shall fill a vacancy on the board for the

unexpired term.

Sec. 8513.0205. BYLAWS. The board shall adopt bylaws for

the management of the authority's affairs.

Sec. 8513.0206. ORDINANCES. (a) The board may, by a

majority and to the extent necessary to exercise the authority's

powers and rights, adopt an ordinance:

(1) not adequately provided by Chapter 49 or 51, Water

Code;

(2) germane and appropriate to the accomplishment and

purposes of this chapter; and

(3) consistent with a specific power conferred on a

county, municipality, water improvement district, water control

and improvement district, drainage district, navigation district,

canal corporation, channel and dock corporation, deep water

corporation, railway corporation, terminal railway corporation,

telegraph and telephone corporation, or other similar entity.

(b) The board is not required to provide notice before

adopting an ordinance, except as otherwise required for a regular

or special board meeting.

(1) shall file an adopted ordinance in the authority's

official records; and

(2) may, if the board considers it necessary and

proper:

(A) file certified copies of the ordinance in the

office of the county clerk in each county in the authority where the

ordinance applies; or

(B) publish the ordinance at least once per week

for two weeks in a newspaper of general circulation in each county

where the ordinance applies.

(d) An adopted ordinance takes effect after the filing

requirements of Subsection (c) are met.

(e) After an ordinance takes effect, a county clerk with

whom a certified copy of the ordinance is filed under Subsection

(c)(2)(A) shall record the certified copy. The county clerk shall

charge the same fee for recording the certified copy as for

recording a deed of conveyance.

(f) An ordinance granting a power or mode of procedure

adopted under this section does not limit the accomplishment of the

purposes of this chapter.

Sec. 8513.0207. BOND REQUIREMENT FOR DIRECTORS AND

OFFICERS. (a) Not later than the 15th day after the date of an

election or appointment of a director or officer, the director or

officer shall file a good and sufficient bond with the board

secretary.

(b) The bond must be:

(1) in the amount of $5,000;

(2) payable to the authority;

(3) conditioned on the faithful performance of duties

as a director or officer; and

(4) subject to approval by the board secretary.

Sec. 8513.0208. FILING OF OATH. Before assuming the duties

of office, each director shall file with the board secretary a copy

of the constitutional oath of office taken by the director.

Sec. 8513.0209. COMPENSATION OF DIRECTORS. (a) A director

is entitled to receive reimbursement for reasonable expenses and an

allowance as provided under Section 49.060, Water Code.

(b) A director is not entitled to receive a per diem

allowance for more than 60 days in a fiscal year.

49.060, Water Code, takes precedence.

Sec. 8513.0210. CERTAIN INTERESTS PROHIBITED. (a) A

director may not engage in a transaction with the authority for gain

or profit.

(b) An officer of the authority may not have any interest,

direct or indirect, in any contract awarded by the authority.

Sec. 8513.0211. OFFICERS. (a) The board shall appoint by

majority vote a chair, a vice chair, a secretary, a treasurer, and

other officers or assistant officers the board considers necessary.

(b) The chair, the vice chair, the secretary, and the

treasurer must each be a director. Assistant officers are not

required to be directors.

(d) A non-director assistant officer:

(1) holds office at the pleasure of the board; and

(2) may be granted limited powers in the authority

bylaws.

(e) The authority may appoint officers, prescribe their

duties, and set their compensation.

Sec. 8513.0212. DIRECTOR TRAINING PROGRAM. (a) A person

who is elected or appointed to and qualifies for office as a

director may not vote, deliberate, or be counted as a director in

attendance at a board meeting until the person completes a training

program that complies with this section.

(b) The training program must provide the person with

information regarding:

(1) the law governing authority operations;

(2) the authority's programs, functions, rules, and

budget;

(3) the scope of and limitations on the board's

rulemaking authority;

(4) the results of the authority's most recent formal

audit;

(5) the requirements of:

(A) laws relating to open meetings, public

information, administrative procedure, and disclosure of conflicts

of interest; and

(B) other laws applicable to members of the

governing body of a river authority in performing their duties; and

(6) any applicable ethics policies adopted by the

authority or the Texas Ethics Commission.

to reimbursement for the travel expenses incurred in attending the

training program regardless of whether the attendance at the

program occurs before or after the person qualifies for office.

(d) The manager of the authority shall create a training

manual that includes the information required by Subsection (b).

The manager shall distribute a copy of the training manual annually

to each director. Each director shall sign and submit to the

manager a statement acknowledging that the director has received

and reviewed the training manual.

Sec. 8513.0213. MEETINGS. (a) Regular and special board

meetings shall be held as provided by general law and the bylaws.

(b) Notice of regular and special board meetings shall be

given as required by general law and the bylaws.

Sec. 8513.0214. POLICIES TO SEPARATE POLICY-MAKING AND

STAFF FUNCTIONS. The board shall develop and implement policies

that clearly separate the board's policy-making responsibilities

and the management responsibilities of the manager and authority

staff.

Sec. 8513.0215. AGENTS, EMPLOYEES, AND PROFESSIONAL

CONSULTANTS. (a) The authority may appoint agents, employees, and

professional consultants, prescribe their duties, and set their

compensation.

(b) An agent, employee, or professional consultant may not

have any interest, direct or indirect, in any contract awarded by

the authority.

Sec. 8513.0216. MANAGER. (a) The board may employ a

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 31, 2025

TO:	Honorable Cody Harris, Chair, House Committee on Natural Resources

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB2692 by Guillen (Relating to the codification and clarification of local laws concerning the San Antonio River Authority.), As Introduced

No fiscal implication to the State is anticipated.

Local Government Impact

The fiscal implications of the bill to the river authority cannot be determined due to the circumstances relating to the authority's exercise of eminent domain power, issuance of bonds, or imposition of assessments, fees, and taxes being unknown. No fiscal implication to other units of local government is anticipated.

Source Agencies:

580 Water Development Board, 582 Commission on Environmental Quality

LBB Staff:

JMc, TUf, BC, CWi, CMA, AJL

Related Legislation

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Frequently Asked Questions

Common questions about HB2692

What does Texas HB2692 do?

HB2692 codifies and strengthens the San Antonio River Authority’s (SARA) regulatory, taxing, and enforcement powers across Bexar, Wilson, Karnes, and Goliad Counties. While framed as a statutory revision, this law grants SARA immediate authority to regulate river-adjacent franchises, designate flood plains beyond FEMA standards, and enforce pollution controls with civil penalties. Real estate developers, industrial dischargers, and river-based tourism operators face the most significant operational exposure.

Who authored HB2692?

HB2692 was authored by Texas Representative Ryan Guillen during the Regular Session.

When was HB2692 signed into law?

HB2692 was signed into law by Governor Greg Abbott on May 29, 2025.

Which agencies enforce HB2692?

HB2692 is enforced by San Antonio River Authority, Texas Commission on Environmental Quality (Supervisory role) and Parks and Wildlife Department (Fish preservation rules).

How urgent is compliance with HB2692?

The compliance urgency for HB2692 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB2692?

The cost impact of HB2692 is estimated as "medium". This may vary based on industry and implementation requirements.

What topics does HB2692 address?

HB2692 addresses topics including san antonio river authority, san antonio river canal & conservancy district, special districts & authorities, special districts & authorities--river authorities and statutory revision.

Legislative data provided by LegiScanLast updated: November 25, 2025

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Relating to the San Antonio River Authority.

Compliance Analysis

Implementation Timeline

Immediate Action Plan

Operational Changes Required

Contracts

Hiring/Training

Reporting & Record-Keeping

Fees & Costs

Strategic Ambiguities & Considerations

Need Help Understanding Implementation?

Legislative Timeline

Official Analysis

BILL ANALYSIS

House Authors

Senate Sponsors

Bill Text(with markup)

Fiscal NoteView Original

Related Legislation

More from Rep. Ryan Guillen

Related by Topic

Frequently Asked Questions

What does Texas HB2692 do?

Who authored HB2692?

When was HB2692 signed into law?

Which agencies enforce HB2692?

How urgent is compliance with HB2692?

What is the cost impact of HB2692?

What topics does HB2692 address?

Need Strategic Guidance on This Bill?