(a) This section applies only to a municipality:
(1) with a population of more than 95,000;
(2) located in a county that:
(A) borders Lake Palestine; and
(B) has a population of more than 200,000;
(3) that owns and operates a utility that provides sewer service; and
(4) that has an area within the boundaries of the municipality that is certificated to another retail public utility that provides sewer service.
(b) A municipality may provide sewer service to an area entirely within the municipality’s boundaries without first having to obtain from the utility commission a certificate of public convenience and necessity that includes the area to be served, regardless of whether the area to be served is certificated to another retail public utility.

(c) Not less than 30 days before the municipality begins providing sewer service to an area certificated to another retail public utility, the municipality shall provide notice to the retail public utility and the utility commission of its intention to provide service to the area.
(d) On receipt of the notice required by Subsection (c), a retail public utility may:
(1) petition the utility commission to decertify its certificate for the area to be served by the municipality; or
(2) discontinue service to the area to be served by the municipality, provided that there is no interruption of service to any customer.
(e) This section may not be construed to limit the right of a retail public utility to provide service in an area certificated to the retail public utility.
(f) This section does not expand a municipality’s power of eminent domain under Chapter 21, Property Code.