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A BILL TO BE ENTITLED
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AN ACT
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relating to dual certification for water or sewer service in an area |
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incorporated or annexed by certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 13.255, Water Code, is |
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amended to read as follows: |
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Sec. 13.255. SINGLE OR DUAL CERTIFICATION IN INCORPORATED |
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OR ANNEXED AREAS. |
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SECTION 2. Section 13.255, Water Code, is amended by adding |
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Subsections (n) and (o) to read as follows: |
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(n) Subsection (o) applies only to the most populous |
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municipality in a county that: |
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(1) is located on an international border; |
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(2) has a population of more than 800,000; and |
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(3) contains at least two municipalities each of which |
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has a population of 100,000 or more. |
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(o) As an alternative to single certification, a |
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municipality to which this subsection applies may provide to a |
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retail public utility that provides water or sewer service to all or |
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part of an area annexed or incorporated by the municipality |
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pursuant to a certificate of convenience and necessity notice that |
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the municipality intends to seek dual certification in the area as |
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provided under this subsection. The notice must indicate whether |
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the municipality intends to provide service through a municipally |
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owned utility or a franchised utility. The municipality and the |
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retail public utility may enter into an agreement for the purchase |
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of retail public utility facilities or property or that has other |
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terms on which the parties agree. If the municipality intends that |
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a franchised utility is to serve the area, the franchised utility |
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must be a party to the agreement. A municipality that delivers a |
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notice under this subsection may file an application with the |
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utility commission for dual certification that includes the notice |
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and any related agreement with the retail public utility. The |
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utility commission shall fix a time and place for a hearing on the |
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application and give notice of the hearing to the municipality and, |
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if any, the franchised utility and give notice of the application |
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and hearing to the retail public utility. The utility commission |
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shall grant dual certification to the municipality and amend |
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certificates of convenience and necessity as needed to authorize |
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the dual certification. Subsections (c)-(m), other than |
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Subsections (c-3) and (k), apply to a dual certification proceeding |
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under this subsection. |
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SECTION 3. This Act takes effect September 1, 2025. |