Senate approves bill limiting pipeline construction fees by certain reclamation districts

The Texas Senate advanced and passed a committee substitute to Senate Bill 6 12, a local bill supporters said protects real-estate developers from excessive pipeline and infrastructure construction fees imposed by certain conservation and reclamation districts.

Senator Hinojosa introduced the measure on the floor, saying the 2021 law that limited some districts— powers "did not include real estate developers" and that in some cases districts had used arbitrary fee schedules and strict construction requirements "to extract fees from developers far beyond actual cost." He said the bill "extends cost based protections to include developers, not just retail public utilities" and defines a developer as someone who subdivides land or requests more than two water or sewer service connections on a single contiguous tract.

The committee substitute—s language, as read on the floor, prohibits districts from imposing pipeline construction fees on developers greater than the actual reasonable documented cost incurred by the district, including legal, engineering, administrative and review, construction oversight, and required infrastructure relocations, conversions, or repairs. The sponsor described the bill as strictly local in scope.

Senate proceedings show the chamber suspended regular order to take up the committee substitute, passed the bill to engrossment, suspended the constitutional three-day rule, and on final reading recorded 31 ayes and 0 nays; the chair announced the bill was finally passed.

The transcript excerpt does not include the enrolled bill text, effective date, or any implementing rule language. It also does not include any amendments offered or a floor debate beyond the sponsor—s explanation.