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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB790

Regular Session

Relating to the procedure for resolving certain customer complaints before the Public Utility Commission of Texas.

Government Affairs & Regulatory Compliance Analysis

SB790: Government Affairs Overview

SB790 authorizes the Public Utility Commission of Texas (PUC) to bypass standard Administrative Procedure Act safeguards for tenant water and wastewater billing complaints, effective September 1, 2025. Landlords, property managers, and third-party billing vendors must prepare for a new "fast-track" adjudication process that eliminates formal discovery and contested case hearings in favor of rapid, summary decisions.

Sen. Carol Alvarado·Senate Bill·Regular Session

Moderate
Low Cost
Effective:2025-09-01
Business Impact

Who SB790 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

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Water

Affected business types:

  • Water utilities
  • Wastewater treatment facilities
  • Municipal water districts
  • Agricultural water users
View all water legislation

Key Operational Considerations

  • 1Triage Protocol: Train compliance staff and site managers to flag PUC correspondence as "Urgent/Expedited." The standard 21-day response window may be shortened under new rules.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB790
Moderate
Relating to the procedure for resolving certain customer complaints before the Public Utility Commission of Texas.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Public Utility Commission of Texas
Primary Author: Sen. Carol Alvarado
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: Operational compliance is triggered once the PUC adopts procedural rules (Anticipated Q1/Q2 2026). However, internal audits of billing addendums must be completed before the effective date to mitigate retroactive liability.
  • Agency Rulemaking: The PUC is required to define the "simplified procedure." Watch for a new Project Number to be opened in late 2025. The period between September 1, 2025, and final rule adoption creates a regulatory gray zone where the handling of complaints may be inconsistent.

Immediate Action Plan

  • Audit Leases: Conduct a random sampling of current tenant files to ensure water/sewer addendums match the actual billing method used (e.g., allocated vs. submetered).
  • Update Vendor Contracts: Issue notice to billing vendors regarding SB790 and demand confirmation of their ability to support expedited data requests.
  • Monitor Rulemaking: Assign counsel to track the PUC Control Number for this rulemaking; submit comments to ensure the "simplified" process includes a minimum 15-day response window for owners.
  • Review E&O Insurance: Confirm that administrative fines and penalties related to billing disputes are covered under your current policy.

Operational Changes Required

Contracts

  • Vendor MSAs: Renegotiate Master Service Agreements with third-party billing providers (RUBS/Submetering). Insert strict Service Level Agreements (SLAs) requiring billing data production within 24-48 hours to meet expedited response windows.
  • Indemnification: Strengthen indemnity clauses to hold vendors liable for administrative penalties resulting from calculation errors, as you will have limited ability to litigate these facts in the new simplified process.
  • Lease Addendums: Review all residential leases. Ensure the TWC Chapter 13 water addendum is present and signed. In a simplified review, a missing addendum will likely result in an automatic default judgment against the property.

Hiring/Training

  • Triage Protocol: Train compliance staff and site managers to flag PUC correspondence as "Urgent/Expedited." The standard 21-day response window may be shortened under new rules.
  • Settlement Authority: Grant front-line compliance officers pre-approved authority to settle small-dollar disputes immediately to avoid the risk of a public enforcement order.

Reporting & Record-Keeping

  • Audit-Ready Data: Maintain immediate digital access to the specific allocation formulas and rate-per-gallon calculations for the trailing 24 months. The new process will likely be a "paper review" where the defense relies entirely on the immediate availability of accurate records.

Fees & Costs

  • Penalties: While statutory penalty caps remain unchanged, the *frequency* of adverse findings is expected to rise due to the lower barrier of entry for tenant complaints.
  • Legal Costs: Legal spend per case may decrease (no discovery/hearings), but volume may increase.

Strategic Ambiguities & Considerations

  • Appellate Rights: The statute explicitly waives Chapter 2001 of the Government Code (Administrative Procedure Act). It is currently unclear how a property owner appeals an erroneous decision by PUC staff if the standard motion for rehearing process is removed.
  • Burden of Proof: We must monitor rulemaking to determine if the "simplified procedure" shifts the burden of proof. There is a risk the PUC will require the landlord to affirmatively prove the bill is correct, rather than requiring the tenant to prove it is wrong.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 15, 2025
Passed Senate
Mar 6, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsUtilitiesUtilities--generalUtilities--water & SewerWater & Sewer ServicePublic Utility CommissionGrievance Procedures
03

Senate Authors

Sen. Carol AlvaradoDemocrat · Primary Author
Coauthors (2)

House Sponsor

Rep. Ryan GuillenRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Carol Alvarado

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB790

Q

What does Texas SB790 do?

SB790 authorizes the Public Utility Commission of Texas (PUC) to bypass standard Administrative Procedure Act safeguards for tenant water and wastewater billing complaints, effective September 1, 2025. Landlords, property managers, and third-party billing vendors must prepare for a new "fast-track" adjudication process that eliminates formal discovery and contested case hearings in favor of rapid, summary decisions.

Q

Who authored SB790?

SB790 was authored by Texas Senator Carol Alvarado during the Regular Session.

Q

When was SB790 signed into law?

SB790 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB790?

SB790 is enforced by Public Utility Commission of Texas.

Q

How significant are the changes in SB790?

The regulatory priority for SB790 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB790?

The cost impact of SB790 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB790 address?

SB790 addresses topics including utilities, utilities--general, utilities--water & sewer, water & sewer service and public utility commission.

Q

What are the key dates for SB790?

Key dates for SB790: Effective date is 2025-09-01. Rulemaking: Draft and adopt rules defining the 'simplified procedure' for tenant water/wastewater billing complaints. Note: The statute explicitly waives Chapter 2001, Government Code (Administrative Procedure Act), meaning the agency has broad latitude to create a process with fewer procedural safeguards for property owners. (TBD (Agency Discreti

Q

Which Texas businesses are affected by SB790?

SB790 primarily affects utility companies and energy providers. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026