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Signed Into Law
Signed May 24, 2025Effective 2025-09-01
SB2476

Regular Session

Relating to transfer of the ownership rights of the Woodlawn Water Supply Corporation to the Angelina and Neches River Authority.

Government Affairs & Regulatory Compliance Analysis

SB2476: Government Affairs Overview

SB 2476 authorizes the acquisition of Woodlawn Water Supply Corporation by the Angelina and Neches River Authority, mandating the automatic transfer of all assets, debts, and Certificate of Convenience and Necessity (CCN) No. 10354 upon contract execution. Vendors, creditors, and developers currently engaged with Woodlawn WSC must prepare for an immediate shift in counterparty status to a state political subdivision, as the legislation explicitly bypasses standard administrative protest procedures.

Sen. Robert Nichols·Senate Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Business Impact

Who SB2476 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

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Water

Affected business types:

  • Water utilities
  • Wastewater treatment facilities
  • Municipal water districts
  • Agricultural water users
View all water legislation

Key Operational Considerations

  • 1No Protest Rights: Third parties (creditors/vendors) are statutorily barred from protesting this transfer at the PUC.
  • 2N/A for External Businesses.
  • 3Internal Note: Woodlawn WSC staff and Board members must prepare for the cessation of the Corporation’s existence.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB2476
Low
Relating to transfer of the ownership rights of the Woodlawn Water Supply Corporation to the Angelina and Neches River Authority.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
PUCTCEQ
Primary Author: Sen. Robert Nichols
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Compliance Deadline: Floating Trigger. Operational transfer occurs immediately on the date the transfer contract is executed between the Corporation and the Authority.
  • Agency Rulemaking: No public rulemaking required. The PUC and TCEQ are statutorily mandated to process the transfer of the CCN and corporate dissolution without public hearings or standard application procedures immediately upon notification.

Immediate Action Plan

  • 1. Audit Vendor Lists: Search accounts receivable for "Woodlawn Water Supply Corporation."
  • 2. Monitor Agendas: Assign staff to monitor Angelina and Neches River Authority board agendas starting September 2025 to identify the specific date of contract execution.
  • 3. Update Billing: Prepare to reroute all invoices to the Authority immediately upon notice of the transfer.
  • 4. Legal Notice: Draft a pro-forma letter acknowledging the assignment of contracts to be sent to the Authority once the transfer is public.

Operational Changes Required

Contracts

  • Automatic Assignment: Existing contracts with Woodlawn WSC legally transfer to the Angelina and Neches River Authority. New contracts are not required by statute, but legal departments should issue a Notice of Acknowledgement of Assignment to the Authority to formalize the relationship.
  • No Protest Rights: Third parties (creditors/vendors) are statutorily barred from protesting this transfer at the PUC.

Hiring/Training

  • N/A for External Businesses.
  • Internal Note: Woodlawn WSC staff and Board members must prepare for the cessation of the Corporation’s existence.

Reporting & Record-Keeping

  • Woodlawn Board: Must file formal notice of transfer with TCEQ and PUC immediately upon contract execution.
  • Woodlawn Board: Must commence corporate dissolution proceedings with the Secretary of State no later than 30 days after the transfer contract is signed.
  • Vendors/Creditors: Update Master Service Agreements (MSAs) and billing systems to reflect the Angelina and Neches River Authority as the liable entity.

Fees & Costs

  • No State Fees: The transfer of the CCN is exempt from standard application fees.
  • Credit Profile: Creditors must update risk profiles. Counterparty risk shifts from a non-profit WSC to a River Authority (political subdivision), potentially implicating sovereign immunity regarding debt collection.

Strategic Ambiguities & Considerations

  • The "Gap" Period: The legislation authorizes the transfer but does not mandate a specific date for the contract execution. Until the private contract is signed, the status quo remains.
  • Asset Condition: The bill transfers "all" systems and assets. It does not specify representations and warranties regarding the condition of infrastructure, which will be governed solely by the private contract between the entities.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 13, 2025
Passed Senate
May 1, 2025
Passed House
May 10, 2025
Signed
May 24, 2025
Effective
Sep 1, 2025
TopicsAngelina & Neches River AuthoritySpecial Districts & AuthoritiesSpecial Districts & Authorities--river AuthoritiesSpecial Districts & Authorities--water & Utility
03

Senate Authors

Sen. Robert NicholsRepublican · Primary Author

House Sponsor

Rep. Trent AshbyRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Robert Nichols

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Related by Topic

View more Angelina & Neches River Authority legislation
Quick Reference

Frequently Asked Questions

Common questions about SB2476

Q

What does Texas SB2476 do?

SB 2476 authorizes the acquisition of Woodlawn Water Supply Corporation by the Angelina and Neches River Authority, mandating the automatic transfer of all assets, debts, and Certificate of Convenience and Necessity (CCN) No. 10354 upon contract execution. Vendors, creditors, and developers currently engaged with Woodlawn WSC must prepare for an immediate shift in counterparty status to a state political subdivision, as the legislation explicitly bypasses standard administrative protest procedures.

Q

Who authored SB2476?

SB2476 was authored by Texas Senator Robert Nichols during the Regular Session.

Q

When was SB2476 signed into law?

SB2476 was signed into law by Governor Greg Abbott on May 24, 2025.

Q

Which agencies enforce SB2476?

SB2476 is enforced by Public Utility Commission of Texas (PUC) and Texas Commission on Environmental Quality (TCEQ).

Q

How significant are the changes in SB2476?

The regulatory priority for SB2476 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB2476?

The cost impact of SB2476 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB2476 address?

SB2476 addresses topics including angelina & neches river authority, special districts & authorities, special districts & authorities--river authorities and special districts & authorities--water & utility.

Q

What are the key dates for SB2476?

Key dates for SB2476: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026