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HB 2505

AN ACT relating to the notification provided by a municipality to a retail

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Fiscal Note

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What This Bill Does

Modifies the process for municipalities seeking to provide water or sewer service in newly incorporated or annexed areas. If a municipality cannot execute an agreement with an existing utility within 180 days of notification, it must file an application with the utility commission for single certification and simultaneously send a copy of the application to the current retail public utility via certified mail, hand delivery, or email. The changes apply to certificate of public convenience and necessity proceedings starting on or after September 1, 2025.

Subject Areas

Bill Text

relating to the notification provided by a municipality to a retail
public utility of the municipality's intent to provide water or
sewer service in an incorporated or annexed area.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Sections 13.255(b) and (b-1), Water Code, are
(b)  If an agreement is not executed within 180 days after
the municipality[, in writing,] notifies the retail public utility
of its intent to provide service to the incorporated or annexed
area, and if the municipality desires and intends to provide retail
utility service to the area, the municipality, prior to providing
service to the area, shall file an application with the utility
commission to grant single certification to the municipally owned
water or sewer utility or to a franchised utility.  If an
application for single certification is filed, the utility
commission shall fix a time and place for a hearing and give notice
of the hearing to the municipality and franchised utility, if any,
and notice of the application and hearing to the retail public
(b-1)  On the day a municipality submits an application for
single certification to the utility commission under this section,
the municipality shall send, via certified mail, [or] hand
delivery, or e-mail, a copy of the application to the retail public
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.

Bill History

filed

Bill filed: AN ACT relating to the notification provided by a municipality to a retail