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               AN ACT
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            relating to the suspension of an enforcement action against a  | 
         
         
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            regional water supply, sewer, or wastewater treatment service for a  | 
         
         
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            violation committed by a retail public utility being integrated  | 
         
         
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            into the regional service. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Section 7.0026, Water Code, is amended to read as  | 
         
         
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            follows: | 
         
         
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                   Sec. 7.0026.  SUSPENSION OF ENFORCEMENT ACTION AGAINST  | 
         
         
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            CERTAIN REGIONAL WATER, SEWER, OR SOLID WASTE SERVICES.  (a)  In  | 
         
         
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            this section, "retail public utility" has the meaning assigned by  | 
         
         
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            Section 13.002. | 
         
         
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                   (b)  If a water supply, sewer, wastewater treatment, or solid  | 
         
         
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            waste disposal service operated by or for a municipality or county  | 
         
         
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            is being integrated into a regional water supply, sewer, wastewater  | 
         
         
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            treatment, or solid waste disposal service, the commission may  | 
         
         
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            enter into a compliance agreement with the regional service under  | 
         
         
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            which the commission will not initiate an enforcement action  | 
         
         
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            against the regional service for existing or anticipated violations  | 
         
         
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            resulting from the operation by the regional service of the service  | 
         
         
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            being integrated.  A compliance agreement under this section must  | 
         
         
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            include provisions necessary to bring the service being integrated  | 
         
         
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            into compliance. | 
         
         
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                   (c)  If a water supply, sewer, or wastewater treatment  | 
         
         
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            service operated by a retail public utility, other than a  | 
         
         
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            municipality or county, is being integrated into a regional water  | 
         
         
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            supply, sewer, or wastewater treatment service administered by  | 
         
         
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            another entity, the commission may enter into a compliance  | 
         
         
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            agreement with the regional service under which the commission will  | 
         
         
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            not initiate an enforcement action against the regional service for  | 
         
         
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            existing or anticipated violations resulting from the operation by  | 
         
         
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            the regional service of the service being integrated.  A compliance  | 
         
         
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            agreement under this section must include provisions necessary to  | 
         
         
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            bring the service being integrated into compliance. | 
         
         
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                   (d)  This section does not prohibit the commission from  | 
         
         
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            initiating an enforcement action against a regional service that is  | 
         
         
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            a party to a compliance agreement if the regional service does not  | 
         
         
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            substantially comply with the agreement. | 
         
         
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                   SECTION 2.  Not later than December 1, 2023, the Texas  | 
         
         
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            Commission on Environmental Quality shall adopt rules as necessary  | 
         
         
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            to implement Section 7.0026(c), Water Code, as added by this Act. | 
         
         
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                   SECTION 3.  This Act takes effect September 1, 2023. | 
         
         
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            ______________________________ | 
            ______________________________ | 
         
         
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               President of the Senate | 
            Speaker of the House      | 
         
         
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                   I certify that H.B. No. 3232 was passed by the House on April  | 
         
         
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            28, 2023, by the following vote:  Yeas 136, Nays 8, 2 present, not  | 
         
         
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            voting. | 
         
         
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            ______________________________ | 
         
         
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            Chief Clerk of the House    | 
         
         
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                   I certify that H.B. No. 3232 was passed by the Senate on May  | 
         
         
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            24, 2023, by the following vote:  Yeas 31, Nays 0. | 
         
         
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            ______________________________ | 
         
         
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            Secretary of the Senate     | 
         
         
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            APPROVED:  _____________________ | 
         
         
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                               Date           | 
         
         
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                      _____________________ | 
         
         
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                             Governor        |