Texas 2015 - 84th Regular

Texas House Bill HB3782 Compare Versions

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11 84R11351 JXC-D
22 By: Crownover H.B. No. 3782
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the authority of certain municipalities to provide
88 water and sewer service to areas within the municipal boundaries
99 without obtaining a certificate of public convenience and
1010 necessity.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Section 13.247(a), Water Code, is amended to
1313 read as follows:
1414 (a) If an area is within the boundaries of a municipality,
1515 all retail public utilities certified or entitled to certification
1616 under this chapter to provide service or operate facilities in that
1717 area may continue and extend service in its area of public
1818 convenience and necessity within the area pursuant to the rights
1919 granted by its certificate and this chapter, unless the
2020 municipality exercises its power of eminent domain to acquire the
2121 property of the retail public utility under Subsection (d). Except
2222 as provided by Section 13.2476 or 13.255, a municipally owned or
2323 operated utility may not provide retail water and sewer utility
2424 service within the area certificated to another retail public
2525 utility without first having obtained from the utility commission a
2626 certificate of public convenience and necessity that includes the
2727 areas to be served.
2828 SECTION 2. Subchapter G, Chapter 13, Water Code, is amended
2929 by adding Section 13.2476 to read as follows:
3030 Sec. 13.2476. CERTIFICATES OF PUBLIC CONVENIENCE AND
3131 NECESSITY TO PROVIDE WATER AND SEWER SERVICE IN CERTAIN
3232 MUNICIPALITIES. (a) This section applies only to a municipality:
3333 (1) with a population of less than 50,000; and
3434 (2) that has an area within the boundaries of the
3535 municipality that is certificated to an investor-owned utility that
3636 provides water and sewer service through 10,000 or more taps or
3737 connections inside and outside the municipality.
3838 (b) A municipality may provide water and sewer service to an
3939 area entirely within the municipality's boundaries without first
4040 having to obtain from the utility commission a certificate of
4141 public convenience and necessity that includes the area to be
4242 served, regardless of whether the area to be served is certificated
4343 to a public utility.
4444 (c) Not less than 30 days before the municipality begins
4545 providing water or sewer service to an area certificated to a public
4646 utility, the municipality shall provide notice to the utility and
4747 the utility commission of its intention to provide service to the
4848 area.
4949 (d) On receipt of the notice required by Subsection (c), a
5050 public utility may:
5151 (1) petition the utility commission to decertify its
5252 certificate for the area to be served by the municipality; or
5353 (2) discontinue service to the area to be served by the
5454 municipality.
5555 (e) This section may not be construed to limit the right of a
5656 public utility to provide service in an area certificated to the
5757 utility.
5858 (f) This section does not expand a municipality's power of
5959 eminent domain under Chapter 21, Property Code.
6060 SECTION 3. As soon as practicable after the effective date
6161 of this Act, the Public Utility Commission of Texas shall adopt
6262 rules and establish procedures relating to the notice required
6363 under Section 13.2476, Water Code, as added by this Act.
6464 SECTION 4. This Act takes effect September 1, 2015.