TX SB2136

Applies specifically to the most populous municipality in a county that is located on an international border, has a population over 800,000, and contains at least two municipalities each with populations of 100,000 or more (criteria matching Hidalgo County/McAllen area)

Allows qualifying municipalities to seek "dual certification" as an alternative to single certification for water or sewer service in areas the municipality has annexed or incorporated

Requires the municipality to notify the existing retail public utility of its intent to seek dual certification and specify whether service will be provided through a municipally owned utility or franchised utility

Permits the municipality and existing retail public utility to negotiate agreements for purchase of facilities, property, or other terms; franchised utilities must be party to any agreement if they will serve the area

Requires the Public Utility Commission to hold a hearing on dual certification applications and grant certification while amending certificates of convenience and necessity as needed

Takes effect September 1, 2025