Texas 2019 - 86th Regular

Texas Senate Bill SB2272 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 2272
	1	+	86R34235 JXC-D
	2	+	By: Nichols, et al. S.B. No. 2272
	3	+	(Metcalf)
	4	+	Substitute the following for S.B. No. 2272: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to the procedure for amending or revoking certificates of
6	10		public convenience and necessity issued to certain water utilities.
7	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	12		SECTION 1. The heading to Section 13.254, Water Code, is
9	13		amended to read as follows:
10	14		Sec. 13.254. DECERTIFICATION INITIATED BY UTILITY
11	15		COMMISSION OR UTILITY; EXPEDITED RELEASE INITIATED BY LANDOWNER
12	16		[REVOCATION OR AMENDMENT OF CERTIFICATE].
13	17		SECTION 2. Sections 13.254(a-2) and (d), Water Code, are
14	18		amended to read as follows:
15	19		(a-2) A landowner is not entitled to file a petition under
16	20		[make the election described in] Subsection (a-1) or Section
17	21		13.2541 [(a-5)] but is entitled to contest under Subsection (a) the
18	22		involuntary certification of the landowner's [its] property in a
19	23		hearing held by the utility commission if the landowner's property
20	24		is located:
21	25		(1) in [within] the boundaries of any municipality or
22	26		the extraterritorial jurisdiction of a municipality with a
23	27		population of more than 500,000 and the municipality or retail
24	28		public utility owned by the municipality is the holder of the
25	29		certificate; or
26	30		(2) in a platted subdivision actually receiving water
27	31		or sewer service.
28	32		(d) A retail public utility may not in any way render retail
29	33		water or sewer service directly or indirectly to the public in an
30	34		area that has been decertified under this section unless just and
31	35		adequate compensation required under Subsection (g) has been paid
32	36		[without providing compensation for any property that the utility
33	37		commission determines is rendered useless or valueless] to the
34	38		decertified retail public utility [as a result of the
35	39		decertification].
36	40		SECTION 3. Subchapter G, Chapter 13, Water Code, is amended
37	41		by adding Section 13.2541 to read as follows:
38	42		Sec. 13.2541. STREAMLINED EXPEDITED RELEASE INITIATED BY
39	43		LANDOWNER. (a) Sections 13.254(a-7), (c), (d), and (h) apply to a
40	44		proceeding under this section.
41	45		SECTION 4. Sections 13.254(a-5) and (a-6), Water Code, are
42	46		transferred to Section 13.2541, Water Code, as added by this Act,
43	47		redesignated as Sections 13.2541(b), (c), (d), (e), and (f), Water
44	48		Code, and amended to read as follows:
45	49		(b) [(a-5)] As an alternative to decertification or [under
46	50		Subsection (a) and] expedited release under Section 13.254
47	51		[Subsection (a-1)], the owner of a tract of land that is at least 25
48	52		acres and that is not receiving water or sewer service may petition
49	53		for expedited release of the area from a certificate of public
50	54		convenience and necessity in the manner provided by this section
51	55		and is entitled to that release if the landowner's property is
52	56		located in a county with a population of at least one million, a
53	57		county adjacent to a county with a population of at least one
54	58		million, or a county with a population of more than 200,000 and less
55	59		than 220,000 that does not contain a public or private university
56	60		that had a total enrollment in the most recent fall semester of
57	61		40,000 or more, and not in a county that has a population of more
58	62		than 45,500 and less than 47,500.
59	63		(c) [(a-6)] The utility commission shall grant the [a]
60	64		petition [received under Subsection (a-5)] not later than the 60th
61	65		day after the date the landowner files the petition.
62	66		(d) The utility commission may not deny the [a] petition
63	67		[received under Subsection (a-5)] based on the fact that the [a]
64	68		certificate holder is a borrower under a federal loan program.
65	69		(e) The certificate holder may not initiate an application
66	70		to borrow money under a federal loan program after the date the
67	71		petition is filed until the utility commission issues a decision on
68	72		the petition.
69	73		(f) The utility commission may require an award of
70	74		compensation by the petitioner to the certificate holder in the
71	75		manner provided by this section [a decertified retail public
72	76		utility that is the subject of a petition filed under Subsection
73	77		(a-5) as otherwise provided by this section].
74	78		SECTION 5. Section 13.2541, Water Code, as added by this
75	79		Act, is amended by adding Subsections (g), (h), (i), and (j) to read
76	80		as follows:
77	81		(g) The monetary amount of compensation, if any, shall be
78	82		determined by a qualified individual or firm serving as independent
79	83		appraiser agreed upon by the certificate holder and the petitioner.
80	84		The determination of compensation by the independent appraiser
81	85		shall be binding on the utility commission. The costs of the
82	86		independent appraiser shall be borne by the petitioner.
83	87		(h) Section 13.254(g) applies to a determination of the
84	88		monetary amount of compensation under this section.
85	89		(i) If the petitioner and the certificate holder cannot
86	90		agree on an independent appraiser within 10 calendar days after the
87	91		date on which the utility commission approves the petition, the
88	92		petitioner and the certificate holder shall each engage its own
89	93		appraiser at its own expense, and each appraisal shall be submitted
90	94		to the utility commission within 70 calendar days after the date on
91	95		which the utility commission approves the petition. After
92	96		receiving the appraisals, the utility commission shall appoint a
93	97		third appraiser who shall make a determination of the compensation
94	98		within 100 days after the date on which the utility commission
95	99		approves the petition. The determination may not be less than the
96	100		lower appraisal or more than the higher appraisal. The petitioner
97	101		and the certificate holder shall each pay half the cost of the third
98	102		appraisal.
99	103		(j) The utility commission shall ensure that:
100	104		(1) the monetary amount of compensation is determined
101	105		not later than the 60th day after the date the utility commission
102	106		receives the final appraisal; and
103	107		(2) the landowner pays the compensation to the
104	108		certificate holder not later than the 90th calendar day after the
105	109		date the monetary amount of compensation is determined.
106	110		SECTION 6. The changes in law made by this Act apply only to
107	111		a proceeding affecting a certificate of public convenience and
108	112		necessity that commences on or after the effective date of this Act.
109	113		A proceeding affecting a certificate of public convenience and
110	114		necessity that commenced before the effective date of this Act is
111	115		governed by the law in effect on the date the proceeding is
112	116		commenced, and that law is continued in effect for that purpose.
113	117		SECTION 7. This Act takes effect September 1, 2019.
114		-	______________________________ ______________________________
115		-	President of the Senate Speaker of the House
116		-	I hereby certify that S.B. No. 2272 passed the Senate on
117		-	May 1, 2019, by the following vote: Yeas 31, Nays 0; and that the
118		-	Senate concurred in House amendment on May 25, 2019, by the
119		-	following vote: Yeas 30, Nays 0.
120		-	______________________________
121		-	Secretary of the Senate
122		-	I hereby certify that S.B. No. 2272 passed the House, with
123		-	amendment, on May 22, 2019, by the following vote: Yeas 143,
124		-	Nays 0, two present not voting.
125		-	______________________________
126		-	Chief Clerk of the House
127		-	Approved:
128		-	______________________________
129		-	Date
130		-	______________________________
131		-	Governor