SB 2136

2025S0190-1  03/06/25
		By: Hinojosa of Hidalgo
  S.B. No. 2136
  A BILL TO BE ENTITLED
  AN ACT
  relating to dual certification for water or sewer service in an area
  incorporated or annexed by certain municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 13.255, Water Code, is
  amended to read as follows:
         Sec. 13.255.  SINGLE OR DUAL CERTIFICATION IN INCORPORATED
  OR ANNEXED AREAS.
         SECTION 2.  Section 13.255, Water Code, is amended by adding
  Subsections (n) and (o) to read as follows:
         (n)  Subsection (o) applies only to the most populous
  municipality in a county that:
               (1)  is located on an international border;
               (2)  has a population of more than 800,000; and
               (3)  contains at least two municipalities each of which
  has a population of 100,000 or more.
         (o)  As an alternative to single certification, a
  municipality to which this subsection applies may provide to a
  retail public utility that provides water or sewer service to all or
  part of an area annexed or incorporated by the municipality
  pursuant to a certificate of convenience and necessity notice that
  the municipality intends to seek dual certification in the area as
  provided under this subsection.  The notice must indicate whether
  the municipality intends to provide service through a municipally
  owned utility or a franchised utility.  The municipality and the
  retail public utility may enter into an agreement for the purchase
  of retail public utility facilities or property or that has other
  terms on which the parties agree.  If the municipality intends that
  a franchised utility is to serve the area, the franchised utility
  must be a party to the agreement.  A municipality that delivers a
  notice under this subsection may file an application with the
  utility commission for dual certification that includes the notice
  and any related agreement with the retail public utility.  The
  utility commission shall fix a time and place for a hearing on the
  application and give notice of the hearing to the municipality and,
  if any, the franchised utility and give notice of the application
  and hearing to the retail public utility.  The utility commission
  shall grant dual certification to the municipality and amend
  certificates of convenience and necessity as needed to authorize
  the dual certification.  Subsections (c)-(m), other than
  Subsections (c-3) and (k), apply to a dual certification proceeding
  under this subsection.
         SECTION 3.  This Act takes effect September 1, 2025.