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A BILL TO BE ENTITLED
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AN ACT
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relating to the procedure for amending or revoking certificates of |
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public convenience and necessity issued to certain water utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.2541, Water Code, is amended by |
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amending Subsections (b), (b-1), (e), and (f) and adding |
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Subsections (b-2), (b-3), and (e-1) to read as follows: |
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(b) As an alternative to decertification or expedited |
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release under Section 13.254, the owner of a tract of land that is |
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at least 25 acres and that is not receiving water or sewer service |
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may petition for expedited release of the area from a certificate of |
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public convenience and necessity in the manner provided by this |
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section and is entitled to that release. |
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(b-1) This section applies only if the landowner's property |
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is located in: |
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(1) a county with a population of at least 1.2 million; |
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(2) [,] a county adjacent to a county with a population |
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of at least 1.2 million; |
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(3) [, or] a county with a population of more than |
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200,000 and less than 233,500 that does not contain a public or |
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private university that had a total enrollment in the most recent |
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fall semester of 40,000 or more; or |
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(4) a county adjacent to a county described by |
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Subdivision (2)[, and not in a county that has a population of more |
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than 50,500 and less than 52,000]. |
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(b-2) This subsection applies only to a petition for a tract |
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of land located in a county described by Subsection (b-1)(4). The |
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petitioner shall provide written notice, by certified mail and |
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regular mail, to the certificate holder of the petitioner's intent |
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to petition the utility commission for expedited release of an area |
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from a certificate of public convenience and necessity under this |
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section not later than the 60th day before the date on which the |
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petitioner submits the petition to the utility commission. The |
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notice must include contact information for the property owner |
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whose tract or tracts are the subject of the petition. The |
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certificate holder may waive the notice required by this |
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subsection. |
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(b-3) [(b-1)] On the day a petitioner submits a petition to |
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the utility commission under this section, the petitioner shall |
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send, via certified mail, a copy of the petition to the certificate |
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holder, who may submit information to the utility commission to |
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controvert information submitted by the petitioner. |
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(e) The certificate holder may not initiate an application |
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to borrow money under a federal loan program after the date the |
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notice is provided or waived under Subsection (b-2) [petition is |
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filed] until the utility commission issues a decision on the |
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petition. |
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(e-1) A landowner that submits a petition under this section |
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may agree to pay to the certificate holder that is the subject of |
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the petition under this section an amount equal to the amount |
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necessary to pay or defease a federal loan for a certificate holder |
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that is a borrower under a federal loan program. On request from |
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the petitioner, the certificate holder must provide the petitioner |
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with the amount necessary to pay or defease the federal loan. The |
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utility commission may issue an order to require the certificate |
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holder to accept a loan payment or defeasance under this section. |
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(f) If the utility commission determines that compensation |
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to the certificate holder is owed under this section and Section |
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13.254(g), the [The] utility commission shall [may] require an |
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award of compensation to be paid by the petitioner to the |
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certificate holder [in the manner provided by this section]. If the |
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utility commission requires an award of compensation, the utility |
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commission shall require the petitioner to submit a report to the |
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utility commission verifying for the purposes of Subsection (j) |
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that the compensation has been paid to the certificate holder. |
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SECTION 2. The changes in law made by this Act apply only to |
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a proceeding affecting a certificate of public convenience and |
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necessity that commences on or after the effective date of this Act. |
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A proceeding affecting a certificate of public convenience and |
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necessity that commenced before the effective date of this Act is |
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governed by the law in effect on the date the proceeding is |
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commenced, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |