According to the Legislative Budget Board (LBB), the fiscal implications of SB 1413 are primarily tied to its impact on the Public Utility Commission of Texas (PUC), which will experience an increased workload due to the expansion of eligibility for streamlined expedited release (SER) petitions. The bill enlarges the number of counties eligible to request expedited CCN releases from 33 to 74, resulting in a projected rise in applications requiring administrative review, legal interpretation, and technical analysis.

According to the Legislative Budget Board's fiscal note, the PUC estimates it will need to hire 6 additional full-time staff to manage the increased caseload. This includes two attorneys, two engineers with expertise in water and wastewater infrastructure, and two geographic information system (GIS) specialists to support utility mapping and data analysis. The estimated cost per year for these positions, including salaries and benefits, along with associated operating costs, is approximately $878,172.

Over the five-year forecast period (2026–2030), the total estimated cost to the state’s General Revenue Fund is $4,390,860, or about $1.76 million for the 2026–2027 biennium. These costs do not include any potential revenues or administrative fees that might be generated under the program, nor do they include any savings that might result from more efficient land development or reduced regulatory burdens.

No significant fiscal impact on local governments is anticipated. While local jurisdictions may indirectly benefit from accelerated development in newly released utility service areas, the implementation and financial responsibility for processing applications will remain with the PUC.

SB 1413 represents a logical and necessary continuation of prior legislative efforts aimed at reforming the Certificate of Convenience and Necessity (CCN) process for water and sewer utilities in Texas. Building upon the success of SB 573 from 2011, which created the streamlined expedited release (SER) process for property owners in limited counties, SB 1413 expands that opportunity to more counties experiencing rapid development while enhancing protections for both landowners and utility providers.

The bill promotes individual liberty and private property rights by giving landowners a more practical and fair path to exit CCN arrangements where service is not being provided. The original policy problem stems from historical overreach—when CCNs were granted without demonstrating actual service capability, resulting in landowners being bound by monopolistic designations that limited land use and development. By broadening geographic eligibility and clarifying notice and compensation procedures, the bill rebalances rights in favor of voluntary service and landowner autonomy.

At the same time, the bill maintains a structure of personal responsibility and limited government. It requires landowners to provide formal notice and, in certain cases, to cover the cost of federal utility loans to protect public utility investments. This ensures that private rights are expanded without imposing undue fiscal harm on public or investor-owned utilities. Additionally, the mandatory compensation provisions reflect a respect for utility investment and fair market expectations, rather than favoring one side through regulatory fiat.

Although the bill would have a fiscal impact, estimated at approximately $878,000 annually to the state’s General Revenue Fund, primarily for staffing at the Public Utility Commission, the costs are reasonable and support the bill’s implementation. There is no significant local government impact, and the overall effect supports fairer regulatory administration and more efficient land development in expanding regions.

In light of these factors, SB 1413 strikes an appropriate balance between reducing government overreach and ensuring responsible transitions for utility territories. It is consistent with the liberty principles of property rights, limited government, and personal responsibility, and is broadly aligned with the priorities of all three major state political platforms. Therefore, Texas Policy Research recommends that lawmakers vote YES on SB 1413.

• Individual Liberty: The bill empowers landowners to petition for release from a utility’s exclusive service area (Certificate of Convenience and Necessity, or CCN) if they are not receiving service. This expands a landowner’s freedom to determine how their property is used and how it’s served, especially in rapidly developing areas where utility access can be critical to growth and development. It restores a fundamental right to seek better options and not be indefinitely bound to a non-performing utility.
• Personal Responsibility: The bill requires landowners to give advance notice (in certain counties) before filing a release petition and, where applicable, to cover the cost of paying off a utility’s federal loan debt if they want to exit the service area. These requirements ensure that while landowners are given more freedom, they are also held accountable for the financial consequences of their decisions, particularly when public money is involved.
• Free Enterprise: By expanding the eligibility for streamlined expedited release, the bill reduces artificial barriers to entry for competing water and sewer service providers. When monopolies are no longer protected despite failing to serve, private developers and alternative utilities can step in to meet demand. This supports open markets, innovation, and consumer choice in utility services.
• Private Property Rights: This bill directly enhances the rights of property owners to remove government-imposed limitations on how their land can be used. If a utility holds a CCN but doesn’t serve a tract of land, the landowner is no longer stuck. The bill recognizes that land ownership should not come with invisible strings attached to underperforming public or quasi-public entities.
• Limited Government: The bill reduces unnecessary government interference in land-use decisions. Instead of protecting utility monopolies by default, it limits the role of the state to a fair referee, ensuring compensation is paid when appropriate, but not forcing landowners to stay in unserved areas. It reinforces a principle of minimal regulation while preserving due process and fiscal integrity.

• HB 3322 (Same As)