89R10424 SCR-F     By: Eckhardt S.B. No. 2389       A BILL TO BE ENTITLED   AN ACT   relating to entities authorized to provide water or sewer service.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 572.052(c) and (d), Local Government   Code, are amended to read as follows:          (c)  A public utility agency is a:                (1)  separate agency;                (2)  political subdivision of this state; [and]                (3)  political entity and corporate body; and                (4)  retail public utility for the purposes of Chapter   13, Water Code.          (d)  A public utility agency may not impose a tax but has all   the other powers and obligations that are related to facilities and   that are provided by law to a municipality that owns a facility,   except as provided by Section 572.061.          SECTION 2.  Chapter 572, Local Government Code, is amended   by adding Subchapter D to read as follows:   SUBCHAPTER D.  RECEIVERSHIP AND TEMPORARY MANAGEMENT          Sec. 572.101.  DEFINITIONS. In this subchapter:                (1)  "Commission" means the Texas Commission on   Environmental Quality.                (2)  "Utility" and "water supply or sewer service   corporation" have the meanings assigned by Section 13.002, Water   Code.                (3)  "Utility commission" means the Public Utility   Commission of Texas.          Sec. 572.102.  APPLICABILITY. (a)  This subchapter applies   only to a utility or water supply or sewer service corporation   providing water or sewer service in the territory of a public   utility agency.          (b)  For purposes of this subchapter, a reference in Chapter   13, Water Code, to a person includes a public utility agency.          Sec. 572.103.  RECEIVERSHIP. (a)  At the request of the   utility commission or the commission, the attorney general shall   bring suit for the appointment of a receiver that is a public   utility agency in the manner provided by Section 13.412, Water   Code, to collect the assets and carry on the business of a utility   or water supply or sewer service corporation that:                (1)  has abandoned operation of its facilities;                (2)  informs the utility commission or the commission   that the owner is abandoning the system;                (3)  violates a final order of the utility commission   or the commission;                (4)  allows any property owned or controlled by it to be   used in violation of a final order of the utility commission or the   commission;                (5)  violates a final judgment issued by a district   court in a suit brought by the attorney general under:                      (A)  Chapter 7 or 13, Water Code; or                      (B)  Chapter 341, Health and Safety Code;                (6)  is subject to an administrative penalty for a   violation of Subchapter M, Chapter 13, Water Code, or a rule adopted   by the utility commission under that subchapter; or                (7)  violates a final judgment issued by a court in a   proceeding to enforce a provision of a permit issued by a   groundwater conservation district under Chapter 36.          (b)  To facilitate the regionalization of water and sewer   service, the utility commission shall prioritize an application   submitted under Section 13.412(g), Water Code, by a public utility   agency.  The utility commission shall issue an order approving the   acquisition proposed in the application not later than the 120th   day after the date the utility commission determines the   application is complete.          Sec. 572.104.  TEMPORARY MANAGEMENT. The utility commission   or the commission, after providing to the utility or water supply or   sewer service corporation notice and an opportunity to be heard by   the commissioners at a utility commission or commission meeting,   may authorize a public utility agency to temporarily manage and   operate a utility or water supply or sewer service corporation in   the manner provided by Section 13.4132, Water Code, if the utility   or corporation:                (1)  has discontinued or abandoned operations or the   provision of services;                (2)  has been or is being referred to the attorney   general for the appointment of a receiver under Section 572.103; or                (3)  provides retail water or sewer utility service   through fewer than 10,000 taps or connections and violates a final   order of the commission by failing to:                      (A)  provide system capacity that is greater than   the required raw water or groundwater production rate or the   anticipated daily demand of the system;                      (B)  provide a minimum pressure of 35 pounds per   square inch throughout the distribution system under normal   operating conditions; or                      (C)  maintain accurate or properly calibrated   testing equipment or other means of monitoring the effectiveness of   a chemical treatment or pathogen inactivation or removal process.          SECTION 3.  Section 13.002, Water Code, is amended by adding   Subdivision (16-a) and amending Subdivisions (19) and (23) to read   as follows:                (16-a)  "Public utility agency" means a public utility   agency created under Chapter 572, Local Government Code.                (19)  "Retail public utility" means any person,   corporation, public utility, water supply or sewer service   corporation, municipality, public utility agency, political   subdivision or agency operating, maintaining, or controlling in   this state facilities for providing potable water service or sewer   service, or both, for compensation.                (23)  "Water and sewer utility," "public utility," or   "utility" means any person, corporation, cooperative corporation,   affected county, or any combination of these persons or entities,   other than a municipal corporation, public utility agency, water   supply or sewer service corporation, or [a] political subdivision   of the state, except an affected county, or their lessees,   trustees, and receivers, owning or operating for compensation in   this state equipment or facilities for the transmission, storage,   distribution, sale, or provision of potable water to the public or   for the resale of potable water to the public for any use or for the   collection, transportation, treatment, or disposal of sewage or   other operation of a sewage disposal service for the public, other   than equipment or facilities owned and operated for either purpose   by a municipality or other political subdivision of this state or a   water supply or sewer service corporation, but does not include any   person or corporation not otherwise a public utility that furnishes   the services or commodity only to itself or its employees or tenants   as an incident of that employee service or tenancy when that service   or commodity is not resold to or used by others.          SECTION 4.  Section 13.004(a), Water Code, is amended to   read as follows:          (a)  Notwithstanding any other law, the utility commission   has the same jurisdiction over a water supply or sewer service   corporation that the utility commission has under this chapter over   a water and sewer utility if the utility commission finds that the   water supply or sewer service corporation:                (1)  is failing to conduct annual or special meetings   in compliance with Section 67.007; [or]                (2)  is operating in a manner that does not comply with   the requirements for classifications as a nonprofit water supply or   sewer service corporation prescribed by Sections 13.002(11) and   (24); or                (3)  is operating in a manner that necessitates   appointment of a receiver or temporary manager for the water supply   or sewer service corporation in the manner provided by Subchapter   K.          SECTION 5.  This Act takes effect September 1, 2025.