SB 2136

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
Sec. 13.255.  SINGLE OR DUAL CERTIFICATION IN INCORPORATED
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
(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
SECTION 3.  This Act takes effect September 1, 2025.