BILL ANALYSIS

H.B. 4385

By: Guillen

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current law, if a water supply corporation or retail public utility fails to provide services to a municipality, the municipality is permitted to render retail water services without a certificate of public convenience and necessity. However, this provision does not apply to sewer services. H.B. 4385 seeks to address this issue by authorizing the Public Utility Commission of Texas to allow a municipality or utility or water supply corporation to render retail sewer services without a certificate of public convenience and necessity under certain circumstances.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Public Utility Commission of Texas in SECTION 1 of this bill.

ANALYSIS

H.B. 4385 amends the Water Code to authorize the Public Utility Commission of Texas by rule to allow a municipality or utility or water supply corporation to render retail sewer service without a certificate of public convenience and necessity if the municipality has given applicable notice that it intends to provide retail sewer service to an area or if the utility or water supply corporation has less than 15 potential connections and is not within the certificated area of another retail public utility.

EFFECTIVE DATE

September 1, 2023.