Texas 2025 - 89th Regular

Texas House Bill HB1318 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		89R1848 CXP-D
2	2		By: Guillen H.B. No. 1318
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5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to a certificate of public convenience and necessity to
8	10		provide water or sewer service in an area incorporated or annexed by
9	11		a municipality.
10	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	13		SECTION 1. Sections 13.255(c), (d), (e), (f), and (i),
12	14		Water Code, are amended to read as follows:
13	15		(c) The utility commission by order shall grant single
14	16		certification to the municipality. [The utility commission shall
15	17		also determine in its order the monetary amount that is adequate and
16	18		just to compensate the retail public utility for any of the retail
17	19		public utility's property the utility commission determines is
18	20		being rendered useless or valueless by the single certification.]
19	21		If the municipality in its application has requested the transfer
20	22		of specified property of the retail public utility to the
21	23		municipality or to a franchised utility, the utility commission
22	24		shall also determine in its order the adequate and just
23	25		compensation to be paid, under the provisions of this section, for
24	26		the transferred [such] property and [pursuant to the provisions of
25	27		this section, including an award for] damages to or adverse effects
26	28		on property remaining in the ownership of the retail public utility
27	29		after single certification. The order of the utility commission
28	30		shall not be effective to transfer property. A transfer of property
29	31		may be obtained under this section only by a court judgment rendered
30	32		under Subsection (d) or (e). The grant of single certification by
31	33		the utility commission takes effect on the date the municipality or
32	34		franchised utility, as the case may be, pays adequate and just
33	35		compensation pursuant to court order, or pays an amount into the
34	36		registry of the court or to the retail public utility under
35	37		Subsection (f). If the court judgment provides that the retail
36	38		public utility is not entitled to any compensation, the grant of
37	39		single certification takes effect when the court judgment becomes
38	40		final.
39	41		(d) In the event the final order of the utility commission
40	42		is not appealed within 30 days, the municipality may request the
41	43		district court of Travis County to enter a judgment consistent with
42	44		the order of the utility commission. In such event, the court shall
43	45		render a judgment that:
44	46		(1) transfers to the municipally owned utility or
45	47		franchised utility title to property to be transferred to the
46	48		municipally owned utility or franchised utility as delineated by
47	49		the utility commission's final order [and property determined by
48	50		the utility commission to be rendered useless or valueless by the
49	51		granting of single certification]; and
50	52		(2) orders payment to the retail public utility of
51	53		adequate and just compensation [for the property] as determined by
52	54		the utility commission in its final order under Subsection (c).
53	55		(e) Any party that is aggrieved by a final order of the
54	56		utility commission under this section may file an appeal with the
55	57		district court of Travis County within 30 days after the order
56	58		becomes final. The hearing in such an appeal before the district
57	59		court shall be by trial de novo on all issues. After the hearing, if
58	60		the court determines that the municipally owned utility or
59	61		franchised utility is entitled to single certification under the
60	62		provisions of this section, the court shall enter a judgment that:
61	63		(1) transfers to the municipally owned utility or
62	64		franchised utility title to property requested by the municipality
63	65		to be transferred to the municipally owned utility or franchised
64	66		utility and located within the singly certificated area [and
65	67		property determined by the court or jury to be rendered useless or
66	68		valueless by the granting of single certification]; and
67	69		(2) orders payment in accordance with Subsection (g)
68	70		to the retail public utility of adequate and just compensation for
69	71		the property transferred, and for the property remaining in the
70	72		ownership of the retail public utility after single certification
71	73		that is damaged or adversely affected, as determined by the court or
72	74		jury.
73	75		(f) Transfer of property shall be effective on the date the
74	76		judgment becomes final. However, after the judgment of the court is
75	77		entered, the municipality or franchised utility may take possession
76	78		of transferred [condemned] property pending appeal if the
77	79		municipality or franchised utility pays the retail public utility
78	80		or pays into the registry of the court, subject to withdrawal by the
79	81		retail public utility, the amount, if any, established in the
80	82		court's judgment as just and adequate compensation. To provide
81	83		security in the event an appellate court, or the trial court in a
82	84		new trial or on remand, awards compensation in excess of the
83	85		original award, the municipality or franchised utility, as the case
84	86		may be, shall deposit in the registry of the court an additional sum
85	87		in the amount of the award, or a surety bond in the same amount
86	88		issued by a surety company qualified to do business in this state,
87	89		conditioned to secure the payment of an award of compensation
88	90		[damages] in excess of the original award of the trial court. On
89	91		application by the municipality or franchised utility, the court
90	92		shall order that funds deposited in the registry of the court be
91	93		deposited in an interest-bearing account, and that interest
92	94		accruing prior to withdrawal of the award by the retail public
93	95		utility be paid to the municipality or to the franchised utility.
94	96		In the event the municipally owned utility or franchised utility
95	97		takes possession of property or provides utility service in the
96	98		singly certificated area pending appeal, and a court in a final
97	99		judgment in an appeal under this section holds that the grant of
98	100		single certification was in error, the retail public utility is
99	101		entitled to seek compensation for any damages sustained by it in
100	102		accordance with Subsection (g) of this section.
101	103		(i) In the event that a municipality files an application
102	104		for single certification on behalf of a franchised utility, the
103	105		municipality shall be joined in such application by such franchised
104	106		utility, and the franchised utility shall make all payments
105	107		required in the court's judgment to adequately and justly
106	108		compensate the retail public utility [for any taking or damaging of
107	109		property and] for the transfer of property to such franchised
108	110		utility and for the property remaining in the ownership of the
109	111		retail public utility after single certification that is damaged or
110	112		adversely affected.
111	113		SECTION 2. The changes in law made by this Act apply only to
112	114		a proceeding affecting a certificate of public convenience and
113	115		necessity that commences on or after the effective date of this Act.
114	116		A proceeding affecting a certificate of public convenience and
115	117		necessity that commenced before the effective date of this Act is
116	118		governed by the law in effect on the date the proceeding is
117	119		commenced, and that law is continued in effect for that purpose.
118	120		SECTION 3. This Act takes effect September 1, 2025.