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TexasHB 131889th Legislature Regular SessionHouse

Relating to a certificate of public convenience and necessity to provide water or sewer service in an area incorporated or annexed by a municipality.

Sponsored By: Pete Flores (Republican), Ryan Guillen

Signed by Governor

City Government--AnnexationUtilities--GeneralUtilities--Water & SewerWATER & SEWER SERVICEPUBLIC UTILITY COMMISSION

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Broader compensation rules for water utility takeovers

The law applies to water or sewer service certification proceedings begun on or after September 1, 2025. For covered areas incorporated or annexed by a city, Texas utility regulators must grant the city sole service certification. When the city requests a property transfer, regulators must set fair compensation for transferred property and harm to property the utility keeps. Compensation is no longer limited to property made useless or worthless. A franchised utility that joins the city's application must pay the amounts ordered for both types of property. Certification takes effect only after payment under a court order or payment into the court registry or to the utility. If a court finds no compensation is owed, certification takes effect when that judgment becomes final. The regulator's order alone cannot transfer property; a court judgment is required. Appeals over retained property use only the factors listed in Water Code Section 13.255(g). The law sets no direct household payment or utility-rate change.

Sponsors & Cosponsors

Sponsors

  • Pete Flores

    Republican • Senate

  • Ryan Guillen

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 191 • No: 27

House vote • 5/23/2025

Record vote

Yes: 110 • No: 27

Senate vote • 5/19/2025

Record vote

Yes: 31 • No: 0

Senate vote • 5/19/2025

Record vote

Yes: 31 • No: 0

House vote • 4/25/2025

Record vote

Yes: 0 • No: 0

Senate vote • Unknown

Committee vote: Water, Agriculture and Rural Affairs

Yes: 8 • No: 0

House vote • Unknown

Committee vote: Natural Resources

Yes: 11 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House

  2. Signed by the Governor

    6/20/2025House

  3. Sent to the Governor

    5/26/2025House

  4. Signed in the Senate

    5/25/2025Senate

  5. Signed in the House

    5/25/2025House

  6. Reported enrolled

    5/24/2025House

  7. House concurs in Senate amendment(s)-reported

    5/23/2025Senate

  8. Text of Senate Amendment(s)

    5/23/2025House

  9. Statement(s) of vote recorded in Journal

    5/23/2025House

  10. Record vote (RV#3426)

    5/23/2025House

  11. House concurs in Senate amendment(s)

    5/23/2025House

  12. Senate Amendments Analysis distributed

    5/20/2025House

  13. Senate Amendments distributed

    5/20/2025House

  14. Senate passage as amended reported

    5/20/2025House

  15. Record vote

    5/19/2025Senate

  16. Passed

    5/19/2025Senate

  17. Read 3rd time

    5/19/2025Senate

  18. Record vote

    5/19/2025Senate

  19. Three day rule suspended

    5/19/2025Senate

  20. Vote recorded in Journal

    5/19/2025Senate

  21. Passed to 3rd reading as amended

    5/19/2025Senate

  22. Vote recorded in Journal

    5/19/2025Senate

  23. Amended

    5/19/2025Senate

  24. Amendment(s) offered (FA1 J. Hinojosa)

    5/19/2025Senate

  25. Read 2nd time

    5/19/2025Senate

Bill Text

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