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AN ACT
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relating to the authority of certain municipalities to provide |
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sewer service to areas within the municipal boundaries without |
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obtaining a certificate of public convenience and necessity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.247(a), Water Code, is amended to |
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read as follows: |
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(a) If an area is within the boundaries of a municipality, |
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all retail public utilities certified or entitled to certification |
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under this chapter to provide service or operate facilities in that |
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area may continue and extend service in its area of public |
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convenience and necessity within the area pursuant to the rights |
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granted by its certificate and this chapter, unless the |
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municipality exercises its power of eminent domain to acquire the |
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property of the retail public utility under Subsection (d). Except |
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as provided by Section 13.2475 or 13.255, a municipally owned or |
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operated utility may not provide retail water and sewer utility |
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service within the area certificated to another retail public |
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utility without first having obtained from the utility commission a |
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certificate of public convenience and necessity that includes the |
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areas to be served. |
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SECTION 2. Subchapter G, Chapter 13, Water Code, is amended |
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by adding Section 13.2475 to read as follows: |
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Sec. 13.2475. CERTIFICATES OF PUBLIC CONVENIENCE AND |
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NECESSITY TO PROVIDE SEWER SERVICE IN CERTAIN MUNICIPALITIES. |
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(a) This section applies only to a municipality: |
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(1) with a population of more than 95,000; |
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(2) located in a county that: |
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(A) borders Lake Palestine; and |
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(B) has a population of more than 200,000; |
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(3) that owns and operates a utility that provides |
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sewer service; and |
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(4) that has an area within the boundaries of the |
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municipality that is certificated to another retail public utility |
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that provides sewer service. |
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(b) A municipality may provide sewer service to an area |
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entirely within the municipality's boundaries without first having |
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to obtain from the utility commission a certificate of public |
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convenience and necessity that includes the area to be served, |
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regardless of whether the area to be served is certificated to |
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another retail public utility. |
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(c) Not less than 30 days before the municipality begins |
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providing sewer service to an area certificated to another retail |
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public utility, the municipality shall provide notice to the retail |
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public utility and the utility commission of its intention to |
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provide service to the area. |
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(d) On receipt of the notice required by Subsection (c), a |
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retail public utility may: |
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(1) petition the utility commission to decertify its |
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certificate for the area to be served by the municipality; or |
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(2) discontinue service to the area to be served by the |
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municipality, provided that there is no interruption of service to |
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any customer. |
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(e) This section may not be construed to limit the right of a |
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retail public utility to provide service in an area certificated to |
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the retail public utility. |
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(f) This section does not expand a municipality's power of |
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eminent domain under Chapter 21, Property Code. |
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SECTION 3. As soon as practicable after the effective date |
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of this Act, the Public Utility Commission of Texas shall adopt |
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rules and establish procedures relating to the notice required |
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under Section 13.2475, Water Code, as added by this Act. |
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SECTION 4. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 789 passed the Senate on |
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April 30, 2015, by the following vote: Yeas 30, Nays 1; and that |
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the Senate concurred in House amendment on May 26, 2015, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 789 passed the House, with |
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amendment, on May 21, 2015, by the following vote: Yeas 133, |
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Nays 10, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |