1 | 1 | | By: Zaffirini S.B. No. 1612 |
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2 | 2 | | (In the Senate - Filed March 8, 2013; March 20, 2013, read |
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3 | 3 | | first time and referred to Committee on Natural Resources; |
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4 | 4 | | April 17, 2013, reported favorably by the following vote: Yeas 9, |
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5 | 5 | | Nays 0; April 17, 2013, sent to printer.) |
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6 | 6 | | |
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7 | 7 | | |
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8 | 8 | | A BILL TO BE ENTITLED |
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9 | 9 | | AN ACT |
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10 | 10 | | relating to the authority of certain municipalities to provide |
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11 | 11 | | water and sewer service to areas within the municipal boundaries |
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12 | 12 | | without obtaining a certificate of public convenience and |
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13 | 13 | | necessity. |
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14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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15 | 15 | | SECTION 1. Subsection (a), Section 13.247, Water Code, is |
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16 | 16 | | amended to read as follows: |
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17 | 17 | | (a) If an area is within the boundaries of a municipality, |
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18 | 18 | | all retail public utilities certified or entitled to certification |
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19 | 19 | | under this chapter to provide service or operate facilities in that |
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20 | 20 | | area may continue and extend service in its area of public |
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21 | 21 | | convenience and necessity within the area pursuant to the rights |
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22 | 22 | | granted by its certificate and this chapter, unless the |
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23 | 23 | | municipality exercises its power of eminent domain to acquire the |
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24 | 24 | | property of the retail public utility under Subsection (d). Except |
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25 | 25 | | as provided by Section 13.2476 or 13.255, a municipally owned or |
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26 | 26 | | operated utility may not provide retail water and sewer utility |
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27 | 27 | | service within the area certificated to another retail public |
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28 | 28 | | utility without first having obtained from the commission a |
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29 | 29 | | certificate of public convenience and necessity that includes the |
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30 | 30 | | areas to be served. |
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31 | 31 | | SECTION 2. Subchapter G, Chapter 13, Water Code, is amended |
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32 | 32 | | by adding Section 13.2476 to read as follows: |
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33 | 33 | | Sec. 13.2476. CERTIFICATES OF PUBLIC CONVENIENCE AND |
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34 | 34 | | NECESSITY TO PROVIDE WATER AND SEWER SERVICE IN CERTAIN |
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35 | 35 | | MUNICIPALITIES. (a) This section applies only to a municipality: |
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36 | 36 | | (1) with a population of less than 50,000; and |
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37 | 37 | | (2) that has an area within the boundaries of the |
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38 | 38 | | municipality that is certificated to an investor-owned utility that |
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39 | 39 | | provides water and sewer service through 10,000 or more taps or |
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40 | 40 | | connections inside and outside the municipality. |
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41 | 41 | | (b) A municipality may provide water and sewer service to an |
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42 | 42 | | area entirely within the municipality's boundaries without first |
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43 | 43 | | having to obtain from the commission a certificate of public |
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44 | 44 | | convenience and necessity that includes the area to be served, |
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45 | 45 | | regardless of whether the area to be served is certificated to a |
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46 | 46 | | public utility. |
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47 | 47 | | (c) Not less than 30 days before the municipality begins |
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48 | 48 | | providing water or sewer service to an area certificated to a public |
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49 | 49 | | utility, the municipality shall provide notice to the utility and |
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50 | 50 | | the commission of its intention to provide service to the area. |
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51 | 51 | | (d) On receipt of the notice required by Subsection (c), a |
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52 | 52 | | public utility may: |
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53 | 53 | | (1) petition the commission to decertify its |
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54 | 54 | | certificate for the area to be served by the municipality; or |
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55 | 55 | | (2) discontinue service to the area to be served by the |
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56 | 56 | | municipality. |
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57 | 57 | | (e) This section may not be construed to limit the right of a |
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58 | 58 | | public utility to provide service in an area certificated to the |
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59 | 59 | | utility. |
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60 | 60 | | (f) This section does not expand a municipality's power of |
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61 | 61 | | eminent domain under Chapter 21, Property Code. |
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62 | 62 | | SECTION 3. As soon as practicable after the effective date |
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63 | 63 | | of this Act, the Texas Commission on Environmental Quality shall |
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64 | 64 | | adopt rules and establish procedures relating to the notice |
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65 | 65 | | required under Section 13.2476, Water Code, as added by this Act. |
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66 | 66 | | SECTION 4. This Act takes effect September 1, 2013. |
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67 | 67 | | * * * * * |
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