| 1 | 1 | | 2025S0190-1 03/06/25 |
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| 2 | 2 | | By: Hinojosa of Hidalgo S.B. No. 2136 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to dual certification for water or sewer service in an area |
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| 10 | 10 | | incorporated or annexed by certain municipalities. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. The heading to Section 13.255, Water Code, is |
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| 13 | 13 | | amended to read as follows: |
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| 14 | 14 | | Sec. 13.255. SINGLE OR DUAL CERTIFICATION IN INCORPORATED |
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| 15 | 15 | | OR ANNEXED AREAS. |
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| 16 | 16 | | SECTION 2. Section 13.255, Water Code, is amended by adding |
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| 17 | 17 | | Subsections (n) and (o) to read as follows: |
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| 18 | 18 | | (n) Subsection (o) applies only to the most populous |
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| 19 | 19 | | municipality in a county that: |
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| 20 | 20 | | (1) is located on an international border; |
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| 21 | 21 | | (2) has a population of more than 800,000; and |
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| 22 | 22 | | (3) contains at least two municipalities each of which |
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| 23 | 23 | | has a population of 100,000 or more. |
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| 24 | 24 | | (o) As an alternative to single certification, a |
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| 25 | 25 | | municipality to which this subsection applies may provide to a |
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| 26 | 26 | | retail public utility that provides water or sewer service to all or |
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| 27 | 27 | | part of an area annexed or incorporated by the municipality |
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| 28 | 28 | | pursuant to a certificate of convenience and necessity notice that |
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| 29 | 29 | | the municipality intends to seek dual certification in the area as |
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| 30 | 30 | | provided under this subsection. The notice must indicate whether |
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| 31 | 31 | | the municipality intends to provide service through a municipally |
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| 32 | 32 | | owned utility or a franchised utility. The municipality and the |
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| 33 | 33 | | retail public utility may enter into an agreement for the purchase |
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| 34 | 34 | | of retail public utility facilities or property or that has other |
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| 35 | 35 | | terms on which the parties agree. If the municipality intends that |
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| 36 | 36 | | a franchised utility is to serve the area, the franchised utility |
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| 37 | 37 | | must be a party to the agreement. A municipality that delivers a |
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| 38 | 38 | | notice under this subsection may file an application with the |
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| 39 | 39 | | utility commission for dual certification that includes the notice |
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| 40 | 40 | | and any related agreement with the retail public utility. The |
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| 41 | 41 | | utility commission shall fix a time and place for a hearing on the |
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| 42 | 42 | | application and give notice of the hearing to the municipality and, |
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| 43 | 43 | | if any, the franchised utility and give notice of the application |
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| 44 | 44 | | and hearing to the retail public utility. The utility commission |
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| 45 | 45 | | shall grant dual certification to the municipality and amend |
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| 46 | 46 | | certificates of convenience and necessity as needed to authorize |
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| 47 | 47 | | the dual certification. Subsections (c)-(m), other than |
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| 48 | 48 | | Subsections (c-3) and (k), apply to a dual certification proceeding |
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| 49 | 49 | | under this subsection. |
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| 50 | 50 | | SECTION 3. This Act takes effect September 1, 2025. |
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