Relating to the procedure for amending or revoking certificates of public convenience and necessity issued to certain water utilities.

89(R) SB 1413 - House Committee Report version - Bill Text

By: Nichols, et al.

S.B. No. 1413

(Harris)

A BILL TO BE ENTITLED

AN ACT

relating to the procedure for amending or revoking certificates of

public convenience and necessity issued to certain water utilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 13.2541, Water Code, is amended by

amending Subsections (b), (b-1), (e), and (f) and adding

Subsections (b-2), (b-3), and (e-1) to read as follows:

(b) As an alternative to decertification or expedited

release under Section 13.254, the owner of a tract of land that is

at least 25 acres and that is not receiving water or sewer service

may petition for expedited release of the area from a certificate of

public convenience and necessity in the manner provided by this

section and is entitled to that release
.

(b-1) This section applies only
if the landowner's property

is located in
:

(1)
a county with a population of at least 1.2 million
;

(2)
[
,
] a county adjacent to a county with a population

of at least 1.2 million
;

(3)
[
, or
] a county with a population of more than

200,000 and less than 233,500 that does not contain a public or

private university that had a total enrollment in the most recent

fall semester of 40,000 or more
; or

(4)

a county adjacent to a county described by

Subdivision (2)
[
, and not in a county that has a population of more

than 50,500 and less than 52,000
].

(b-2)

This subsection applies only to a petition for a tract

of land located in a county described by Subsection (b-1)(4).

The

petitioner shall provide written notice, by certified mail and

regular mail, to the certificate holder of the petitioner's intent

to petition the utility commission for expedited release of an area

from a certificate of public convenience and necessity under this

section not later than the 60th day before the date on which the

petitioner submits the petition to the utility commission.

The

notice must include contact information for the property owner

whose tract or tracts are the subject of the petition.

The

certificate holder may waive the notice required by this

subsection.

(b-3)
[
(b-1)
] On the day a petitioner submits a petition to

the utility commission under this section, the petitioner shall

send, via certified mail, a copy of the petition to the certificate

holder, who may submit information to the utility commission to

controvert information submitted by the petitioner.

(e) The certificate holder may not initiate an application

to borrow money under a federal loan program after the date the

notice is provided or waived under Subsection (b-2)
[
petition is

filed
] until the utility commission issues a decision on the

petition.

(e-1)

A landowner that submits a petition under this section

may agree to pay to the certificate holder that is the subject of

the petition under this section an amount equal to the amount

necessary to pay or defease a federal loan for a certificate holder

that is a borrower under a federal loan program.

On request from

the petitioner, the certificate holder must provide the petitioner

with the amount necessary to pay or defease the federal loan.

The

utility commission may issue an order to require the certificate

holder to accept a loan payment or defeasance under this section.

(f)
If the utility commission determines that compensation

to the certificate holder is owed under this section and Section

13.254(g), the
[
The
] utility commission
shall
[
may
] require an

award of compensation
to be paid
by the petitioner to the

certificate holder [
in the manner provided by this section
]. If the

utility commission requires an award of compensation, the utility

commission shall require the petitioner to submit a report to the

utility commission verifying for the purposes of Subsection (j)

that the compensation has been paid to the certificate holder.

SECTION 2. The changes in law made by this Act apply only to

a proceeding affecting a certificate of public convenience and

necessity that commences on or after the effective date of this Act.

A proceeding affecting a certificate of public convenience and

necessity that commenced before the effective date of this Act is

governed by the law in effect on the date the proceeding is

commenced, and that law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2025.