Texas 2025 - 89th Regular

Texas Senate Bill SB947 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R1848 CXP-D
2	2	By: Flores S.B. No. 947
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a certificate of public convenience and necessity to
10	10	provide water or sewer service in an area incorporated or annexed by
11	11	a municipality.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Sections 13.255(c), (d), (e), (f), and (i),
14	14	Water Code, are amended to read as follows:
15	15	(c) The utility commission by order shall grant single
16	16	certification to the municipality. [The utility commission shall
17	17	also determine in its order the monetary amount that is adequate and
18	18	just to compensate the retail public utility for any of the retail
19	19	public utility's property the utility commission determines is
20	20	being rendered useless or valueless by the single certification.]
21	21	If the municipality in its application has requested the transfer
22	22	of specified property of the retail public utility to the
23	23	municipality or to a franchised utility, the utility commission
24	24	shall also determine in its order the adequate and just
25	25	compensation to be paid, under the provisions of this section, for
26	26	the transferred [such] property and [pursuant to the provisions of
27	27	this section, including an award for] damages to or adverse effects
28	28	on property remaining in the ownership of the retail public utility
29	29	after single certification. The order of the utility commission
30	30	shall not be effective to transfer property. A transfer of property
31	31	may be obtained under this section only by a court judgment rendered
32	32	under Subsection (d) or (e). The grant of single certification by
33	33	the utility commission takes effect on the date the municipality or
34	34	franchised utility, as the case may be, pays adequate and just
35	35	compensation pursuant to court order, or pays an amount into the
36	36	registry of the court or to the retail public utility under
37	37	Subsection (f). If the court judgment provides that the retail
38	38	public utility is not entitled to any compensation, the grant of
39	39	single certification takes effect when the court judgment becomes
40	40	final.
41	41	(d) In the event the final order of the utility commission
42	42	is not appealed within 30 days, the municipality may request the
43	43	district court of Travis County to enter a judgment consistent with
44	44	the order of the utility commission. In such event, the court shall
45	45	render a judgment that:
46	46	(1) transfers to the municipally owned utility or
47	47	franchised utility title to property to be transferred to the
48	48	municipally owned utility or franchised utility as delineated by
49	49	the utility commission's final order [and property determined by
50	50	the utility commission to be rendered useless or valueless by the
51	51	granting of single certification]; and
52	52	(2) orders payment to the retail public utility of
53	53	adequate and just compensation [for the property] as determined by
54	54	the utility commission in its final order under Subsection (c).
55	55	(e) Any party that is aggrieved by a final order of the
56	56	utility commission under this section may file an appeal with the
57	57	district court of Travis County within 30 days after the order
58	58	becomes final. The hearing in such an appeal before the district
59	59	court shall be by trial de novo on all issues. After the hearing, if
60	60	the court determines that the municipally owned utility or
61	61	franchised utility is entitled to single certification under the
62	62	provisions of this section, the court shall enter a judgment that:
63	63	(1) transfers to the municipally owned utility or
64	64	franchised utility title to property requested by the municipality
65	65	to be transferred to the municipally owned utility or franchised
66	66	utility and located within the singly certificated area [and
67	67	property determined by the court or jury to be rendered useless or
68	68	valueless by the granting of single certification]; and
69	69	(2) orders payment in accordance with Subsection (g)
70	70	to the retail public utility of adequate and just compensation for
71	71	the property transferred, and for the property remaining in the
72	72	ownership of the retail public utility after single certification
73	73	that is damaged or adversely affected, as determined by the court or
74	74	jury.
75	75	(f) Transfer of property shall be effective on the date the
76	76	judgment becomes final. However, after the judgment of the court is
77	77	entered, the municipality or franchised utility may take possession
78	78	of transferred [condemned] property pending appeal if the
79	79	municipality or franchised utility pays the retail public utility
80	80	or pays into the registry of the court, subject to withdrawal by the
81	81	retail public utility, the amount, if any, established in the
82	82	court's judgment as just and adequate compensation. To provide
83	83	security in the event an appellate court, or the trial court in a
84	84	new trial or on remand, awards compensation in excess of the
85	85	original award, the municipality or franchised utility, as the case
86	86	may be, shall deposit in the registry of the court an additional sum
87	87	in the amount of the award, or a surety bond in the same amount
88	88	issued by a surety company qualified to do business in this state,
89	89	conditioned to secure the payment of an award of compensation
90	90	[damages] in excess of the original award of the trial court. On
91	91	application by the municipality or franchised utility, the court
92	92	shall order that funds deposited in the registry of the court be
93	93	deposited in an interest-bearing account, and that interest
94	94	accruing prior to withdrawal of the award by the retail public
95	95	utility be paid to the municipality or to the franchised utility.
96	96	In the event the municipally owned utility or franchised utility
97	97	takes possession of property or provides utility service in the
98	98	singly certificated area pending appeal, and a court in a final
99	99	judgment in an appeal under this section holds that the grant of
100	100	single certification was in error, the retail public utility is
101	101	entitled to seek compensation for any damages sustained by it in
102	102	accordance with Subsection (g) of this section.
103	103	(i) In the event that a municipality files an application
104	104	for single certification on behalf of a franchised utility, the
105	105	municipality shall be joined in such application by such franchised
106	106	utility, and the franchised utility shall make all payments
107	107	required in the court's judgment to adequately and justly
108	108	compensate the retail public utility [for any taking or damaging of
109	109	property and] for the transfer of property to such franchised
110	110	utility and for the property remaining in the ownership of the
111	111	retail public utility after single certification that is damaged or
112	112	adversely affected.
113	113	SECTION 2. The changes in law made by this Act apply only to
114	114	a proceeding affecting a certificate of public convenience and
115	115	necessity that commences on or after the effective date of this Act.
116	116	A proceeding affecting a certificate of public convenience and
117	117	necessity that commenced before the effective date of this Act is
118	118	governed by the law in effect on the date the proceeding is
119	119	commenced, and that law is continued in effect for that purpose.
120	120	SECTION 3. This Act takes effect September 1, 2025.