| 1 | 1 | | 87R6257 CXP-F |
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| 2 | 2 | | By: Lucio S.B. No. 2114 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a certificate of public convenience and necessity to |
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| 8 | 8 | | provide water or sewer service in an area incorporated or annexed by |
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| 9 | 9 | | a municipality. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 13.255, Water Code, is amended by |
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| 12 | 12 | | amending Subsection (c) and adding Subsection (c-1) to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | (c) The utility commission shall make an express finding of |
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| 15 | 15 | | whether the retail public utility is capable of providing |
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| 16 | 16 | | continuous and adequate service to the incorporated or annexed |
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| 17 | 17 | | area. The finding must be based solely on information provided by |
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| 18 | 18 | | the municipality and the retail public utility. The utility |
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| 19 | 19 | | commission may grant single certification to the municipality only |
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| 20 | 20 | | if the utility commission makes a finding under this subsection |
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| 21 | 21 | | that the municipality demonstrated that the retail public utility |
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| 22 | 22 | | is not capable of providing continuous and adequate service to the |
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| 23 | 23 | | incorporated or annexed area. If the [The] utility commission |
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| 24 | 24 | | grants single certification to the municipality, the utility |
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| 25 | 25 | | commission shall [also determine whether single certification as |
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| 26 | 26 | | requested by the municipality would result in property of a retail |
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| 27 | 27 | | public utility being rendered useless or valueless to the retail |
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| 28 | 28 | | public utility, and shall] determine in its order the monetary |
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| 29 | 29 | | amount that is adequate and just to compensate the retail public |
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| 30 | 30 | | utility for any of the retail public utility's [such] property that |
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| 31 | 31 | | is affected by the single certification. If the municipality in its |
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| 32 | 32 | | application has requested the transfer of specified property of the |
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| 33 | 33 | | retail public utility to the municipality or to a franchised |
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| 34 | 34 | | utility, the utility commission shall also determine in its order |
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| 35 | 35 | | the adequate and just compensation to be paid for such property |
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| 36 | 36 | | pursuant to the provisions of this section, including an award for |
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| 37 | 37 | | damages to property remaining in the ownership of the retail public |
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| 38 | 38 | | utility after single certification. The order of the utility |
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| 39 | 39 | | commission shall not be effective to transfer property. A transfer |
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| 40 | 40 | | of property may [only] be obtained under this section only by a |
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| 41 | 41 | | court judgment rendered under [pursuant to] Subsection (d) or (e). |
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| 42 | 42 | | The grant of single certification by the utility commission takes |
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| 43 | 43 | | [shall go into] effect on the date the municipality or franchised |
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| 44 | 44 | | utility, as the case may be, pays adequate and just compensation |
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| 45 | 45 | | pursuant to court order, or pays an amount into the registry of the |
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| 46 | 46 | | court or to the retail public utility under Subsection (f). If the |
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| 47 | 47 | | court judgment provides that the retail public utility is not |
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| 48 | 48 | | entitled to any compensation, the grant of single certification |
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| 49 | 49 | | takes [shall go into] effect when the court judgment becomes final. |
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| 50 | 50 | | The municipality or franchised utility must provide to each |
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| 51 | 51 | | customer of the retail public utility being acquired an individual |
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| 52 | 52 | | written notice within 60 days after the effective date for the |
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| 53 | 53 | | transfer specified in the court judgment. The notice must clearly |
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| 54 | 54 | | advise the customer of the identity of the new service provider, the |
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| 55 | 55 | | reason for the transfer, the rates to be charged by the new service |
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| 56 | 56 | | provider, and the effective date of those rates. |
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| 57 | 57 | | (c-1) Before filing an appeal under Subsection (e), the |
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| 58 | 58 | | retail public utility may appeal to the utility commission in a |
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| 59 | 59 | | separate hearing before the utility commission a final order of the |
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| 60 | 60 | | utility commission issued under Subsection (c). |
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| 61 | 61 | | SECTION 2. The changes in law made by this Act apply only to |
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| 62 | 62 | | a proceeding affecting a certificate of public convenience and |
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| 63 | 63 | | necessity that commences on or after the effective date of this Act. |
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| 64 | 64 | | A proceeding affecting a certificate of public convenience and |
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| 65 | 65 | | necessity that commenced before the effective date of this Act is |
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| 66 | 66 | | governed by the law in effect on the date the proceeding is |
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| 67 | 67 | | commenced, and that law is continued in effect for that purpose. |
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| 68 | 68 | | SECTION 3. This Act takes effect September 1, 2021. |
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