Regular Session
Local Governments (granted contracting authority) • Texas Water Development Board (oversight of related planning processes)
Key implementation requirements and action items for compliance with this legislation
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This bill's path through the Texas Legislature
BILL ANALYSIS
| Senate Research Center | S.B. 480 |
| 89R4807 JBD-F | By: Perry |
| Water, Agriculture and Rural Affairs | |
| 2/25/2025 | |
| As Filed |
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
S.B. 480 expressly authorizes local governments to enter into agreements with other governmental entities to participate in joint research or planning regarding water resources.
Questions have recently arisen in at least two regions of the state as to whether certain types of local governments have clear legal authority to enter into interlocal agreements with other governmental entities to work cooperatively on water-related joint research and planning activities. The types of activities at issue include regional and state water planning and flood planning overseen by the Texas Water Development Board, planning for joint facilities, joint planning for long-term management of aquifers, and the various research efforts that provide the underlying science and data to support those planning activities.
As issues related to water supply, infrastructure, treatment, groundwater and surface water management, drought response, and flooding become more important across the state for reasons relating to both economic development and public health and safety, it is imperative that all communities and their local governments be able to work cooperatively to promote coordination and to achieve cost savings through economies of scale via joint research and planning projects regarding issues in which they share a common interest. S.B. 480 is intended to clarify their ability to do so by providing an express, general authorization in statute for any interested local government to participate in those processes.
As proposed, S.B. 480 amends current law relating to the authority of a local government to enter into an interlocal contract with certain governmental entities to participate in water research or planning activities.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1.� Amends Subchapter C, Chapter 791, Government Code, by adding Section 791.038, as follows:
Sec. 791.038.� CONTRACTS FOR WATER RESEARCH OR PLANNING.� Authorizes a local government to contract with another local government, the state, or the federal government to jointly participate in research or planning activities related to water resources.
SECTION 2. Effective date: upon passage or September 1, 2025.
| S.B. No. 480 | ||
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| relating to the authority of a local government to enter into an | ||
| interlocal contract with certain governmental entities to | ||
| participate in water research or planning activities. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter C, Chapter 791, Government Code, is | ||
| amended by adding Section 791.038 to read as follows: | ||
| Sec. 791.038. CONTRACTS FOR WATER RESEARCH OR PLANNING. A | ||
| local government may contract with another local government, the | ||
| state, or the federal government to jointly participate in research | ||
| or planning activities related to water resources. | ||
| SECTION 2. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2025. | ||
| TO: | Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | SB480 by Perry (Relating to the authority of a local government to enter into an interlocal contract with certain governmental entities to participate in water research or planning activities.), As Introduced |
| Source Agencies: |
| LBB Staff: | JMc, FV, BC, CWi, CMA |
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Common questions about SB480
SB 480 explicitly authorizes local governments to enter into interlocal contracts with state, federal, or other local entities specifically for water research and planning activities. This legislation shifts the procurement landscape for engineering and environmental firms from single-client solicitations to larger, regional joint-venture contracts. Vendors must prepare for complex multi-party liability structures and "Lead Agency" billing models immediately.
SB480 was authored by Texas Senator Charles Perry during the Regular Session.
SB480 was signed into law by Governor Greg Abbott on May 28, 2025.
SB480 is enforced by Local Governments (granted contracting authority) and Texas Water Development Board (oversight of related planning processes).
The compliance urgency for SB480 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of SB480 is estimated as "low". This may vary based on industry and implementation requirements.
SB480 addresses topics including city government, city government--general, county government, county government--general and intergovernmental relations.
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