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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain municipalities to provide |
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water and sewer service to areas within the municipal boundaries |
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without obtaining a certificate of public convenience and |
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necessity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.247(a), Water Code, is amended to |
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read as follows: |
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(a) If an area is within the boundaries of a municipality, |
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all retail public utilities certified or entitled to certification |
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under this chapter to provide service or operate facilities in that |
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area may continue and extend service in its area of public |
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convenience and necessity within the area pursuant to the rights |
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granted by its certificate and this chapter, unless the |
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municipality exercises its power of eminent domain to acquire the |
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property of the retail public utility under Subsection (d). Except |
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as provided by Section 13.2476 or 13.255, a municipally owned or |
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operated utility may not provide retail water and sewer utility |
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service within the area certificated to another retail public |
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utility without first having obtained from the utility commission a |
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certificate of public convenience and necessity that includes the |
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areas to be served. |
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SECTION 2. Subchapter G, Chapter 13, Water Code, is amended |
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by adding Section 13.2476 to read as follows: |
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Sec. 13.2476. CERTIFICATES OF PUBLIC CONVENIENCE AND |
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NECESSITY TO PROVIDE WATER AND SEWER SERVICE IN CERTAIN |
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MUNICIPALITIES. (a) This section applies only to a municipality: |
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(1) with a population of less than 50,000; and |
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(2) that has an area within the boundaries of the |
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municipality that is certificated to an investor-owned utility that |
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provides water and sewer service through 10,000 or more taps or |
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connections inside and outside the municipality. |
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(b) A municipality may provide water and sewer service to an |
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area entirely within the municipality's boundaries without first |
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having to obtain from the utility commission a certificate of |
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public convenience and necessity that includes the area to be |
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served, regardless of whether the area to be served is certificated |
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to a public utility. |
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(c) Not less than 30 days before the municipality begins |
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providing water or sewer service to an area certificated to a public |
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utility, the municipality shall provide notice to the utility and |
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the utility commission of its intention to provide service to the |
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area. |
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(d) On receipt of the notice required by Subsection (c), a |
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public utility may: |
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(1) petition the utility commission to decertify its |
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certificate for the area to be served by the municipality; or |
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(2) discontinue service to the area to be served by the |
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municipality. |
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(e) This section may not be construed to limit the right of a |
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public utility to provide service in an area certificated to the |
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utility. |
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(f) This section does not expand a municipality's power of |
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eminent domain under Chapter 21, Property Code. |
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SECTION 3. As soon as practicable after the effective date |
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of this Act, the Public Utility Commission of Texas shall adopt |
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rules and establish procedures relating to the notice required |
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under Section 13.2476, Water Code, as added by this Act. |
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SECTION 4. This Act takes effect September 1, 2015. |