HB 5370: Cortez Bill Lets Some City Utilities Skip Approval Up To $100K

Caption

relating to the requirements for interlocal contracts.

Summary

Water utilities need a city with over 75% of a 2M-plus county. Electric ones don’t.

The bill restates the rule that each party's governing body must approve an interlocal contract between local governments. A water utility owned by a city holding more than 75 percent of the population of a county with a population of 2 million or more, or a municipally owned electric utility, may set its own procedures for interlocal contracts that do not exceed $100,000 without governing-body approval. The rule applies to interlocal contracts entered into on or after September 1, 2025.

Labels

Labels: GOT HALFWAY. Passed the House on May 15, 2025. Died in the Senate: received, never referred to a committee.

Receipt

The receipt

89R-HB5370 · 2025-03-14

SOLD BY

Rep. Philip CortezDHouse 117

Rep. Josey GarciaDHouse 124

ITEM

relating to the requirements for interlocal contracts.

WHAT IT DOES

Water utilities need a city with over 75% of a 2M-plus county. Electric ones don’t.

The bill restates the rule that each party's governing body must approve an interlocal contract between local governments. A water utility owned by a city holding more than 75 percent of the population of a county with a population of 2 million or more, or a municipally owned electric utility, may set its own procedures for interlocal contracts that do not exceed $100,000 without governing-body approval. The rule applies to interlocal contracts entered into on or after September 1, 2025.

CHARGES

[x] BRACKET BILLanalysis confidence 70%

THE TEXT

…“owned by a municipality containing more than 75 percent of the”…

Bill text, introduced version (I)

The clause limits the water-utility branch of the approval exception to a utility owned by a city holding more than 75 percent of the population of a county with a population of 2 million or more, which can fit only a very few places. The caption reads as a general rule for all interlocal contracts, though the same exception also covers any municipally owned electric utility.

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 21, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Mar 14, 2025Filed
Apr 7, 2025Read first time
Apr 7, 2025Referred to Intergovernmental Affairs
Apr 22, 2025Scheduled for public hearing on . . .
Apr 22, 2025Considered in public hearing
Apr 22, 2025Testimony taken/registration(s) recorded in committee
Apr 22, 2025Left pending in committee
Apr 28, 2025Considered in formal meeting
Apr 28, 2025Reported favorably w/o amendment(s)
May 7, 2025Comte report filed with Committee Coordinator
May 7, 2025Committee report distributed
May 8, 2025Committee report sent to Calendars
May 9, 2025Considered in Calendars
May 11, 2025Placed on General State Calendar
May 14, 2025Read 2nd time
May 14, 2025Amended 1-Cortez
May 14, 2025Passed to engrossment as amended
May 14, 2025Record vote RV#2549
May 14, 2025Statement(s) of vote recorded in Journal
May 15, 2025Read 3rd time
May 15, 2025Passed
May 15, 2025Record vote RV#2658
May 15, 2025Statement(s) of vote recorded in Journal
May 15, 2025Reported engrossed
May 15, 2025Received from the House

FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 103 yea · 40 nay

Sources

House: Final passage · May 15, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Philip Cortez

Donors

Texas Trial Lawyers Association PAC$44K Texas Sands PAC$37K Physicians for Free Market Healthcare PAC$35K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Trial Lawyers Association PAC$44,000.00

Texas Trial Lawyers Association PAC

$44,000.00

Cash: $44,000.00
Paid by others: $0.00
Total: $44,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 6, 2024 to Sep 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985407, 101008363, 101026711, 101035640, 101039466, 101052595, 101071633.

Texas Sands PAC$37,000.00

Texas Sands PAC

$37,000.00

Cash: $37,000.00
Paid by others: $0.00
Total: $37,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 6, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985407, 101039466, 101071633.

Physicians for Free Market Healthcare PAC$35,000.00

Physicians for Free Market Healthcare PAC

$35,000.00

Cash: $35,000.00
Paid by others: $0.00
Total: $35,000.00

Also funds 33 other sitting lawmakers.

Derived recipient stock · Jun 30, 2025 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Sep 22, 2025 to Oct 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101026711, 101035640, 101071633.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Trial Lawyers Association PAC

$44,000.00

Cash: $44,000.00
Paid by others: $0.00
Total: $44,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 6, 2024 to Sep 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985407, 101008363, 101026711, 101035640, 101039466, 101052595, 101071633.

×

Texas Sands PAC

$37,000.00

Cash: $37,000.00
Paid by others: $0.00
Total: $37,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 6, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985407, 101039466, 101071633.

×

Physicians for Free Market Healthcare PAC

$35,000.00

Cash: $35,000.00
Paid by others: $0.00
Total: $35,000.00

Also funds 33 other sitting lawmakers.

Derived recipient stock · Jun 30, 2025 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Sep 22, 2025 to Oct 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101026711, 101035640, 101071633.

Votes2

House May 15, 2025

Yea: 103
Nay: 40
Present, not voting: 2
Absent: 2
Excused: 3

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2658

HB 5370 was passed by (Record 2658): 103 Yeas, 40 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 103 (published)
Nay: 40 (published)
Present, not voting: 2 (published)
Absent: 2 (derived from named list)
Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 14, 2025

Yea: 97
Nay: 34
Present, not voting: 2
Absent: 6
Excused: 11

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2549

HB 5370, as amended, was passed to engrossment by (Record 2549): 97 Yeas, 34 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 97 (published)
Nay: 34 (published)
Present, not voting: 2 (published)
Absent: 6 (derived from named list)
Excused: 11 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses2

For: 2
Against: 0
On: 0

Names

For

San Antonio Water System1 registration
Self1 registration

Sources

2 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 21, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Adversarial review by claude-opus-5-5 at high effort: Smells.

Analysis of text version I by claude-opus-5-5, Oct 21, 2026, against the published rubric.

Sources

Texas House · Filed Mar 14, 2025

05/15/2025 S Received from the House

Texas Legislature Online · Introduced · House Committee Report · Engrossed

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Intergovernmental Affairs · Committee vote 10 aye, 0 nay, 1 absent · Out of committee

Subjects

SAN ANTONIO, CITY OF

Intergovernmental Relations

Purchasing--Local

Text

The text as introduced · 239 words

By: Cortez
H.B. No. 5370

A BILL TO BE ENTITLED

AN ACT

relating to the requirements for interlocal contracts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 791.011(d), Government Code, is amended

to read as follows:

(d) An interlocal contract must:

(1) be authorized by the governing body of each party

to the contract unless a party to the contract is a water utility

owned by a municipality containing more than 75 percent of the

population of a county with a population of 2 million or more or a

municipally owned electric utility, in which event the governing

body may establish procedures for entering into interlocal

contracts that do not exceed $100,000 without requiring the

approval of the governing body;

(2) state the purpose, terms, rights, and duties of

the contracting parties; and

(3) specify that each party paying for the performance

of governmental functions or services must make those payments from

current revenues available to the paying party.

SECTION 2. The changes in law made by this Act apply only to

an interlocal contract entered into on or after the effective date

of this Act. An interlocal contract entered into before the

effective date of this Act is governed by the law in effect on the

date the contract was entered into, and the former law is continued

in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2025.

Verdict: Smells

The receipt

SOLD BY

ITEM

WHAT IT DOES

CHARGES

TOTAL

HISTORY

SIGNED FOR BY

Donors

Texas Trial Lawyers Association PAC

Texas Sands PAC

Physicians for Free Market Healthcare PAC

Texas Trial Lawyers Association PAC

Texas Sands PAC

Physicians for Free Market Healthcare PAC

House May 15, 2025

House May 14, 2025

For