TX HB5370

Expands the exemption for governing body approval of interlocal contracts under $100,000 to include water utilities owned by municipalities that contain more than 60% of the population of a county with 2 million or more residents

Currently, only municipally owned electric utilities can establish procedures to enter interlocal contracts under $100,000 without governing body approval; this bill extends that authority to qualifying municipal water utilities

Changes apply only to interlocal contracts entered into on or after the effective date; existing contracts remain governed by prior law

Takes effect September 1, 2025