83R10369 JXC-D
By: Zaffirini S.B. No. 1612
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain municipalities to provide
water and sewer service to areas within the municipal boundaries
without obtaining a certificate of public convenience and
necessity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.247(a), Water Code, is amended to
read as follows:
(a) If an area is within the boundaries of a municipality,
all retail public utilities certified or entitled to certification
under this chapter to provide service or operate facilities in that
area may continue and extend service in its area of public
convenience and necessity within the area pursuant to the rights
granted by its certificate and this chapter, unless the
municipality exercises its power of eminent domain to acquire the
property of the retail public utility under Subsection (d). Except
as provided by Section 13.2476 or 13.255, a municipally owned or
operated utility may not provide retail water and sewer utility
service within the area certificated to another retail public
utility without first having obtained from the commission a
certificate of public convenience and necessity that includes the
areas to be served.
SECTION 2. Subchapter G, Chapter 13, Water Code, is amended
by adding Section 13.2476 to read as follows:
Sec. 13.2476. CERTIFICATES OF PUBLIC CONVENIENCE AND
NECESSITY TO PROVIDE WATER AND SEWER SERVICE IN CERTAIN
MUNICIPALITIES. (a) This section applies only to a municipality:
(1) with a population of less than 50,000; and
(2) that has an area within the boundaries of the
municipality that is certificated to an investor-owned utility that
provides water and sewer service through 10,000 or more taps or
connections inside and outside the municipality.
(b) A municipality may provide water and sewer service to an
area entirely within the municipality's boundaries without first
having to obtain from the commission a certificate of public
convenience and necessity that includes the area to be served,
regardless of whether the area to be served is certificated to a
public utility.
(c) Not less than 30 days before the municipality begins
providing water or sewer service to an area certificated to a public
utility, the municipality shall provide notice to the utility and
the commission of its intention to provide service to the area.
(d) On receipt of the notice required by Subsection (c), a
public utility may:
(1) petition the commission to decertify its
certificate for the area to be served by the municipality; or
(2) discontinue service to the area to be served by the
municipality.
(e) This section may not be construed to limit the right of a
public utility to provide service in an area certificated to the
utility.
(f) This section does not expand a municipality's power of
eminent domain under Chapter 21, Property Code.
SECTION 3. As soon as practicable after the effective date
of this Act, the Texas Commission on Environmental Quality shall
adopt rules and establish procedures relating to the notice
required under Section 13.2476, Water Code, as added by this Act.
SECTION 4. This Act takes effect September 1, 2013.