SB2136 - Relating to dual certification for water or sewer service in an area incorporated or annexed by certain municipalities.

  2025S0190-1 03/06/25     By: Hinojosa of Hidalgo S.B. No. 2136     A BILL TO BE ENTITLED   AN ACT   relating to dual certification for water or sewer service in an area   incorporated or annexed by certain municipalities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Section 13.255, Water Code, is   amended to read as follows:          Sec. 13.255.  SINGLE OR DUAL CERTIFICATION IN INCORPORATED   OR ANNEXED AREAS.          SECTION 2.  Section 13.255, Water Code, is amended by adding   Subsections (n) and (o) to read as follows:           (n)     Subsection (o) applies only to the most populous   municipality in a county that:                 (1)  is located on an international border;                 (2)  has a population of more than 800,000; and                 (3)     contains at least two municipalities each of which   has a population of 100,000 or more.           (o)     As an alternative to single certification, a   municipality to which this subsection applies may provide to a   retail public utility that provides water or sewer service to all or   part of an area annexed or incorporated by the municipality   pursuant to a certificate of convenience and necessity notice that   the municipality intends to seek dual certification in the area as   provided under this subsection. The notice must indicate whether   the municipality intends to provide service through a municipally   owned utility or a franchised utility. The municipality and the   retail public utility may enter into an agreement for the purchase   of retail public utility facilities or property or that has other   terms on which the parties agree. If the municipality intends that   a franchised utility is to serve the area, the franchised utility   must be a party to the agreement. A municipality that delivers a   notice under this subsection may file an application with the   utility commission for dual certification that includes the notice   and any related agreement with the retail public utility. The   utility commission shall fix a time and place for a hearing on the   application and give notice of the hearing to the municipality and,   if any, the franchised utility and give notice of the application   and hearing to the retail public utility. The utility commission   shall grant dual certification to the municipality and amend   certificates of convenience and necessity as needed to authorize   the dual certification. Subsections (c)-(m), other than   Subsections (c-3) and (k), apply to a dual certification proceeding   under this subsection.          SECTION 3.  This Act takes effect September 1, 2025.