S.B. No. 789
AN ACT
relating to the authority of certain municipalities to provide
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 13.2475 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 utility 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 13.2475 to read as follows:
Sec. 13.2475. CERTIFICATES OF PUBLIC CONVENIENCE AND
NECESSITY TO PROVIDE SEWER SERVICE IN CERTAIN MUNICIPALITIES.
(a) This section applies only to a municipality:
(1) with a population of more than 95,000;
(2) located in a county that:
(A) borders Lake Palestine; and
(B) has a population of more than 200,000;
(3) that owns and operates a utility that provides
sewer service; and
(4) that has an area within the boundaries of the
municipality that is certificated to another retail public utility
that provides sewer service.
(b) A municipality may provide sewer service to an area
entirely within the municipality's boundaries without first having
to obtain from the utility 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
another retail public utility.
(c) Not less than 30 days before the municipality begins
providing sewer service to an area certificated to another retail
public utility, the municipality shall provide notice to the retail
public utility and the utility commission of its intention to
provide service to the area.
(d) On receipt of the notice required by Subsection (c), a
retail public utility may:
(1) petition the utility 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, provided that there is no interruption of service to
any customer.
(e) This section may not be construed to limit the right of a
retail public utility to provide service in an area certificated to
the retail public 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 Public Utility Commission of Texas shall adopt
rules and establish procedures relating to the notice required
under Section 13.2475, Water Code, as added by this Act.
SECTION 4. This Act takes effect September 1, 2015.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 789 passed the Senate on
April 30, 2015, by the following vote: Yeas 30, Nays 1; and that
the Senate concurred in House amendment on May 26, 2015, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 789 passed the House, with
amendment, on May 21, 2015, by the following vote: Yeas 133,
Nays 10, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor