SB790

Regular Session

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

ModeratePlan for compliance

Low Cost

Effective:2025-09-01

Enforcing Agencies

Public Utility Commission of Texas

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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Legislative Timeline

This bill's path through the Texas Legislature

TopicsUtilities Utilities--general Utilities--water & Sewer Water & Sewer Service Public Utility Commission Grievance Procedures

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 790
89R4498 CS-F	By: Alvarado
	Water, Agriculture and Rural Affairs
	2/14/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Currently, if there is a discrepancy between a tenant and owner on a water or wastewater bill, the case must be resolved at the Public Utility Commission (PUC) through a drawn-out administrative process. This may look like a $25 discrepancy taking months to resolve through administrative hearings at the PUC or the State Office of Administrative Hearings, wasting time and money. Subchapter M of the Water Code sets out requirements for how owners of apartments can charge tenants for submetered and nonsubmetered water and empowers the PUC to order the owner to provide restitution to the tenant if they have overcharged the tenant.

S.B. 790 would direct the PUC to simplify the complaint resolution process when a tenant and an owner have a small discrepancy on a water or wastewater bill.

As proposed, S.B. 790 amends current law relating to the procedure for resolving certain customer complaints before the Public Utility Commission of Texas.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Public Utility Commission of Texas in SECTION 1 (Section 13.5051, Water Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter M, Chapter 13, Water Code, by adding Section 13.5051, as follows:

Sec. 13.5051. SIMPLIFIED COMPLAINT PROCESS. (a) Authorizes the Public Utility Commission of Texas by rule to adopt a simplified procedure to resolve a complaint by a tenant against an owner about a bill for water or wastewater service brought under Section 13.503 (Submetering Rules), 13.5031 (Nonsubmetering Rules), or 13.505 (Restitution).

(b) Provides that Chapter 2001 (Administrative Procedure), Government Code, does not apply to the resolution of a complaint using a procedure described in Subsection (a).

SECTION 2. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Carol AlvaradoDemocrat · Primary Author

Coauthors (2)

House Sponsor

Rep. Ryan GuillenRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 790

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the procedure for resolving certain customer complaints
	before the Public Utility Commission of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter M, Chapter 13, Water Code, is amended
	by adding Section 13.5051 to read as follows:
	Sec. 13.5051. SIMPLIFIED COMPLAINT PROCESS. (a) The
	utility commission by rule may adopt a simplified procedure to
	resolve a complaint by a tenant against an owner about a bill for
	water or wastewater service brought under Section 13.503, 13.5031,
	or 13.505.
	(b) Chapter 2001, Government Code, does not apply to the
	resolution of a complaint using a procedure described in Subsection
	(a).
	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.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 2, 2025

TO:	Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB790 by Alvarado (Relating to the procedure for resolving certain customer complaints before the Public Utility Commission of Texas.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated

Source Agencies:

360 State Office of Administrative Hearings, 473 Public Utility Commission of Texas

LBB Staff:

JMc, FV, GDZ, JBel

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Frequently Asked Questions

Common questions about SB790

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. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: Operational compliance is triggered once the PUC adopts procedural rules (Anticipated Q1/Q2 2026).

Who authored SB790?

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

When was SB790 signed into law?

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

Which agencies enforce SB790?

SB790 is enforced by Public Utility Commission of Texas.

How urgent is compliance with SB790?

The compliance urgency for SB790 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

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.

What topics does SB790 address?

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

Legislative data provided by LegiScanLast updated: November 25, 2025

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