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A BILL TO BE ENTITLED
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AN ACT
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relating to entities authorized to provide water or sewer service. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 572.052(c) and (d), Local Government |
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Code, are amended to read as follows: |
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(c) A public utility agency is a: |
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(1) separate agency; |
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(2) political subdivision of this state; [and] |
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(3) political entity and corporate body; and |
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(4) retail public utility for the purposes of Chapter |
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13, Water Code. |
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(d) A public utility agency may not impose a tax but has all |
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the other powers and obligations that are related to facilities and |
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that are provided by law to a municipality that owns a facility, |
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except as provided by Section 572.061. |
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SECTION 2. Chapter 572, Local Government Code, is amended |
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by adding Subchapter D to read as follows: |
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SUBCHAPTER D. RECEIVERSHIP AND TEMPORARY MANAGEMENT |
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Sec. 572.101. DEFINITIONS. In this subchapter: |
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(1) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(2) "Utility" and "water supply or sewer service |
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corporation" have the meanings assigned by Section 13.002, Water |
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Code. |
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(3) "Utility commission" means the Public Utility |
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Commission of Texas. |
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Sec. 572.102. APPLICABILITY. (a) This subchapter applies |
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only to a utility or water supply or sewer service corporation |
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providing water or sewer service in the territory of a public |
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utility agency. |
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(b) For purposes of this subchapter, a reference in Chapter |
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13, Water Code, to a person includes a public utility agency. |
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Sec. 572.103. RECEIVERSHIP. (a) At the request of the |
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utility commission or the commission, the attorney general shall |
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bring suit for the appointment of a receiver that is a public |
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utility agency in the manner provided by Section 13.412, Water |
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Code, to collect the assets and carry on the business of a utility |
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or water supply or sewer service corporation that: |
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(1) has abandoned operation of its facilities; |
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(2) informs the utility commission or the commission |
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that the owner is abandoning the system; |
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(3) violates a final order of the utility commission |
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or the commission; |
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(4) allows any property owned or controlled by it to be |
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used in violation of a final order of the utility commission or the |
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commission; |
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(5) violates a final judgment issued by a district |
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court in a suit brought by the attorney general under: |
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(A) Chapter 7 or 13, Water Code; or |
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(B) Chapter 341, Health and Safety Code; |
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(6) is subject to an administrative penalty for a |
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violation of Subchapter M, Chapter 13, Water Code, or a rule adopted |
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by the utility commission under that subchapter; or |
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(7) violates a final judgment issued by a court in a |
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proceeding to enforce a provision of a permit issued by a |
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groundwater conservation district under Chapter 36. |
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(b) To facilitate the regionalization of water and sewer |
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service, the utility commission shall prioritize an application |
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submitted under Section 13.412(g), Water Code, by a public utility |
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agency. The utility commission shall issue an order approving the |
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acquisition proposed in the application not later than the 120th |
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day after the date the utility commission determines the |
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application is complete. |
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Sec. 572.104. TEMPORARY MANAGEMENT. The utility commission |
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or the commission, after providing to the utility or water supply or |
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sewer service corporation notice and an opportunity to be heard by |
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the commissioners at a utility commission or commission meeting, |
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may authorize a public utility agency to temporarily manage and |
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operate a utility or water supply or sewer service corporation in |
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the manner provided by Section 13.4132, Water Code, if the utility |
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or corporation: |
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(1) has discontinued or abandoned operations or the |
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provision of services; |
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(2) has been or is being referred to the attorney |
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general for the appointment of a receiver under Section 572.103; or |
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(3) provides retail water or sewer utility service |
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through fewer than 10,000 taps or connections and violates a final |
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order of the commission by failing to: |
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(A) provide system capacity that is greater than |
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the required raw water or groundwater production rate or the |
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anticipated daily demand of the system; |
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(B) provide a minimum pressure of 35 pounds per |
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square inch throughout the distribution system under normal |
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operating conditions; or |
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(C) maintain accurate or properly calibrated |
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testing equipment or other means of monitoring the effectiveness of |
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a chemical treatment or pathogen inactivation or removal process. |
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SECTION 3. Section 13.002, Water Code, is amended by adding |
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Subdivision (16-a) and amending Subdivisions (19) and (23) to read |
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as follows: |
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(16-a) "Public utility agency" means a public utility |
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agency created under Chapter 572, Local Government Code. |
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(19) "Retail public utility" means any person, |
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corporation, public utility, water supply or sewer service |
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corporation, municipality, public utility agency, political |
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subdivision or agency operating, maintaining, or controlling in |
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this state facilities for providing potable water service or sewer |
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service, or both, for compensation. |
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(23) "Water and sewer utility," "public utility," or |
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"utility" means any person, corporation, cooperative corporation, |
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affected county, or any combination of these persons or entities, |
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other than a municipal corporation, public utility agency, water |
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supply or sewer service corporation, or [a] political subdivision |
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of the state, except an affected county, or their lessees, |
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trustees, and receivers, owning or operating for compensation in |
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this state equipment or facilities for the transmission, storage, |
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distribution, sale, or provision of potable water to the public or |
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for the resale of potable water to the public for any use or for the |
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collection, transportation, treatment, or disposal of sewage or |
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other operation of a sewage disposal service for the public, other |
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than equipment or facilities owned and operated for either purpose |
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by a municipality or other political subdivision of this state or a |
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water supply or sewer service corporation, but does not include any |
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person or corporation not otherwise a public utility that furnishes |
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the services or commodity only to itself or its employees or tenants |
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as an incident of that employee service or tenancy when that service |
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or commodity is not resold to or used by others. |
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SECTION 4. Section 13.004(a), Water Code, is amended to |
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read as follows: |
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(a) Notwithstanding any other law, the utility commission |
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has the same jurisdiction over a water supply or sewer service |
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corporation that the utility commission has under this chapter over |
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a water and sewer utility if the utility commission finds that the |
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water supply or sewer service corporation: |
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(1) is failing to conduct annual or special meetings |
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in compliance with Section 67.007; [or] |
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(2) is operating in a manner that does not comply with |
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the requirements for classifications as a nonprofit water supply or |
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sewer service corporation prescribed by Sections 13.002(11) and |
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(24); or |
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(3) is operating in a manner that necessitates |
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appointment of a receiver or temporary manager for the water supply |
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or sewer service corporation in the manner provided by Subchapter |
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K. |
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SECTION 5. This Act takes effect September 1, 2025. |