S.B. No. 1413 amends the Water Code to modify the procedures for amending or revoking certificates of public convenience and necessity for certain water utilities. The bill introduces new provisions that allow landowners of tracts of at least 25 acres, who are not receiving water or sewer service, to petition for expedited release from such certificates. Specifically, it outlines the conditions under which this applies, including the population criteria for counties and the requirement for landowners to provide written notice to the certificate holder prior to submitting their petition. Additionally, the bill establishes that the certificate holder cannot initiate a loan application under federal programs after notice is provided until a decision is made by the utility commission.

The bill also includes provisions for compensation owed to the certificate holder if the utility commission determines it is necessary. It specifies that the commission may require the petitioner to pay an amount equal to the necessary funds to pay off a federal loan held by the certificate holder. Furthermore, the bill clarifies that any proceedings affecting a certificate that began before the effective date of the Act will be governed by the previous law, ensuring a smooth transition to the new regulations. The changes will take effect on September 1, 2025.

Statutes affected:
Introduced: Water Code 13.2541 (Water Code 13)
Senate Committee Report: Water Code 13.2541 (Water Code 13)
Engrossed: Water Code 13.2541 (Water Code 13)
House Committee Report: Water Code 13.2541 (Water Code 13)