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Click here for the full text of this decision FACTS:The court says the narrow question presented is whether a home rule city, such as appellant city of Carrollton, which acquired a Certificate of Convenience and Necessity (CCN) to provide water and sewer service, may revoke or discontinue its water certificate without notice and hearing. Texas Water Code 13.254(a) allows for revocation of a water certificate after notice and hearing. The city of Carrollton sought a declaratory judgment that, because it is a municipal corporation that is not required to obtain a certificate prior to providing water or sewer service, the Texas Commission on Environmental Quality must grant its petition to cancel its CCN to provide water and sewer service without notice and hearing. The district court denied the requested declaratory judgment, and the city of Carrollton appealed. HOLDING:Affirmed. The Legislature clearly and unmistakably intended to apply the cancellation provisions of Texas Water Code Chapter 13 to home-rule municipalities, the court concludes. The home-rule amendment specifically provides that no home rule city “charter or any ordinance passed under said charter shall contain any provision inconsistent with the Constitution of the State or of the general laws enacted by the Legislature of this State.” Texas Constitution Article 11 5. The court finds Carrollton’s charter, the home-rule amendment and the commission’s authority to issue and cancel certificates entirely in harmony. While home-rule cities generally need not look to the Legislature for power to act, the Legislature may impose limitations on their ability to act outside their boundaries, the court states. With the comprehensive regulatory framework of the Water Code, the Legislature has done so here by granting the commission the exclusive authority to issue and cancel water certificates. OPINION:Jan P. Patterson, J.; Law, C.J., Patterson and Puryear, JJ.

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