SB2476

Regular Session

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

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Public Utility Commission of Texas (PUC) • Texas Commission on Environmental Quality (TCEQ)

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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Legislative Timeline

This bill's path through the Texas Legislature

TopicsAngelina & Neches River Authority Special Districts & Authorities Special Districts & Authorities--river Authorities Special Districts & Authorities--water & Utility

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 2476
89R12330 SCF-F	By: Nichols
	Water, Agriculture and Rural Affairs
	4/15/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Woodlawn Water Supply Corporation (corporation), located in Angelina County, believes that it is the best interest of the WSC and its members to dissolve and transfer all of its property and assets to the Angelina and Neches River Authority (authority). The authority has a water certificate of convenience and necessity (CCN), a sewer CCN, and all of the technical capacity needed to serve the corporation's members and customers. The authority has consented to the corporation's desire for the authority to takeover the WSC's operations.

As proposed, S.B. 2476 amends current law relating to transfer of the ownership rights of the Woodlawn Water Supply Corporation to the Angelina and Neches River Authority.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. DEFINITIONS. Defines "authority" and "corporation."

SECTION 2. TRANSFER OF WATER SUPPLY CORPORATION; ASSETS; DISSOLUTION. (a) Authorizes the Angelina and Neches River Authority (authority) to enter into a contract with the Woodlawn Water Supply Corporation (corporation) to transfer the assets, debts, and contractual rights and obligations of the corporation to the authority.

(b) Provides that, on the date a contract is executed as provided by Subsection (a) of this section:

(1) all real property, easements, appurtenances, conveyance systems, transmission and treatment systems, designated rights-of-way, and other property interests of the corporation are transferred to the authority;

(2) Certificate of Convenience and Necessity No. 10354 is considered to be held by the authority; and

(3) the board of directors of the corporation (board) is required to notify:

(A) the Texas Commission on Environmental Quality of the transfer of the corporation to the authority; and

(B) the Public Utility Commission of Texas (PUC) of the transfer of Certificate of Convenience and Necessity No. 10354 to the authority.

(c) Requires the PUC, on receipt of notice under Subsection (b)(3)(B) of this section, to note in its records that Certificate of Convenience and Necessity No. 10354 is held by the authority and to reissue the certificate in the name of the authority without further application, notice, or hearing. Provides that a person, party, or entity does not have any right of protest, objection, or administrative review of the transfer prescribed by this section.

(d) Requires the board, not later than 30 days after the date of the transfer under Subsection (b) of this section, to commence dissolution proceedings of the corporation.

SECTION 3. EFFECTIVE DATE. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Robert NicholsRepublican · Primary Author

House Sponsor

Rep. Trent AshbyRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 2476

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to transfer of the ownership rights of the Woodlawn Water
	Supply Corporation to the Angelina and Neches River Authority.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. DEFINITIONS. In this Act:
	(1) "Authority" means the Angelina and Neches River
	Authority.
	(2) "Corporation" means the Woodlawn Water Supply
	Corporation.
	SECTION 2. TRANSFER OF WATER SUPPLY CORPORATION; ASSETS;
	DISSOLUTION. (a) The authority may enter into a contract with the
	corporation to transfer the assets, debts, and contractual rights
	and obligations of the corporation to the authority.
	(b) On the date a contract is executed as provided by
	Subsection (a) of this section:
	(1) all real property, easements, appurtenances,
	conveyance systems, transmission and treatment systems, designated
	rights-of-way, and other property interests of the corporation are
	transferred to the authority;
	(2) Certificate of Convenience and Necessity
	No. 10354 is considered to be held by the authority; and
	(3) the board of directors of the corporation shall
	notify:
	(A) the Texas Commission on Environmental
	Quality of the transfer of the corporation to the authority; and
	(B) the Public Utility Commission of Texas of the
	transfer of Certificate of Convenience and Necessity No. 10354 to
	the authority.
	(c) On receipt of notice under Subsection (b)(3)(B) of this
	section, the Public Utility Commission of Texas shall note in its
	records that Certificate of Convenience and Necessity No. 10354 is
	held by the authority and shall reissue the certificate in the name
	of the authority without further application, notice, or hearing.
	A person, party, or entity does not have any right of protest,
	objection, or administrative review of the transfer prescribed by
	this section.
	(d) Not later than 30 days after the date of the transfer
	under Subsection (b) of this section, the board of directors of the
	corporation shall commence dissolution proceedings of the
	corporation.
	SECTION 3. EFFECTIVE DATE. This Act takes effect
	immediately if it receives a vote of two-thirds of all the members
	elected to each house, as provided by Section 39, Article III, Texas
	Constitution. If this Act does not receive the vote necessary for
	immediate effect, this Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 17, 2025

TO:	Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB2476 by Nichols (Relating to transfer of the ownership rights of the Woodlawn Water Supply Corporation to the Angelina and Neches River Authority.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

473 Public Utility Commission of Texas, 582 Commission on Environmental Quality

LBB Staff:

JMc, FV, BC, CWi

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Frequently Asked Questions

Common questions about SB2476

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.

Who authored SB2476?

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

When was SB2476 signed into law?

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

Which agencies enforce SB2476?

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

How urgent is compliance with SB2476?

The compliance urgency for SB2476 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

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.

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.

Legislative data provided by LegiScanLast updated: November 25, 2025

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