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               AN ACT
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            relating to certificates of public convenience and necessity issued  | 
         
         
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            to certain retail public utilities. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Section 13.2541, Water Code, is amended by  | 
         
         
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            adding Subsection (b-1) to read as follows: | 
         
         
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                   (b-1)  On the day a petitioner submits a petition to the  | 
         
         
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            utility commission under this section, the petitioner shall send,  | 
         
         
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            via certified mail, a copy of the petition to the certificate  | 
         
         
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            holder, who may submit information to the utility commission to  | 
         
         
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            controvert information submitted by the petitioner. | 
         
         
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                   SECTION 2.  Section 13.255, Water Code, is amended by adding  | 
         
         
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            Subsections (b-1) and (c-3) and amending Subsection (c) to read as  | 
         
         
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            follows: | 
         
         
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                   (b-1)  On the day a municipality submits an application for  | 
         
         
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            single certification to the utility commission under this section,  | 
         
         
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            the municipality shall send, via certified mail or hand delivery, a  | 
         
         
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            copy of the application to the retail public utility. | 
         
         
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                   (c)  The utility commission by order shall grant single  | 
         
         
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            certification to the municipality.  The utility commission shall  | 
         
         
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            also [determine whether single certification as requested by the  | 
         
         
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            municipality would result in property of a retail public utility  | 
         
         
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            being rendered useless or valueless to the retail public utility,  | 
         
         
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            and shall] determine in its order the monetary amount that is  | 
         
         
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            adequate and just to compensate the retail public utility for any of  | 
         
         
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            the retail public utility's [such] property the utility commission  | 
         
         
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            determines is being rendered useless or valueless by the single  | 
         
         
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            certification.  If the municipality in its application has  | 
         
         
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            requested the transfer of specified property of the retail public  | 
         
         
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            utility to the municipality or to a franchised utility, the utility  | 
         
         
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            commission shall also determine in its order the adequate and just  | 
         
         
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            compensation to be paid for such property pursuant to the  | 
         
         
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            provisions of this section, including an award for damages to  | 
         
         
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            property remaining in the ownership of the retail public utility  | 
         
         
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            after single certification.  The order of the utility commission  | 
         
         
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            shall not be effective to transfer property.  A transfer of property  | 
         
         
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            may [only] be obtained under this section only by a court judgment  | 
         
         
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            rendered under [pursuant to] Subsection (d) or (e).  The grant of  | 
         
         
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            single certification by the utility commission takes [shall go  | 
         
         
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            into] effect on the date the municipality or franchised utility, as  | 
         
         
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            the case may be, pays adequate and just compensation pursuant to  | 
         
         
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            court order, or pays an amount into the registry of the court or to  | 
         
         
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            the retail public utility under Subsection (f).  If the court  | 
         
         
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            judgment provides that the retail public utility is not entitled to  | 
         
         
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            any compensation, the grant of single certification takes [shall go  | 
         
         
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            into] effect when the court judgment becomes final. | 
         
         
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                   (c-3)  Before filing an appeal under Subsection (e) and not  | 
         
         
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            later than the seventh day after the date the utility commission  | 
         
         
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            issues a final order under Subsection (c), the retail public  | 
         
         
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            utility may appeal the final order to the utility commission in a  | 
         
         
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            separate hearing before the utility commission. | 
         
         
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                   SECTION 3.  The changes in law made by this Act apply only to  | 
         
         
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            a proceeding affecting a certificate of public convenience and  | 
         
         
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            necessity that commences on or after the effective date of this Act.   | 
         
         
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            A proceeding affecting a certificate of public convenience and  | 
         
         
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            necessity that commenced before the effective date of this Act is  | 
         
         
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            governed by the law in effect on the date the proceeding is  | 
         
         
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            commenced, and that law is continued in effect for that purpose. | 
         
         
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                   SECTION 4.  This Act takes effect September 1, 2023. | 
         
         
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            ______________________________ | 
            ______________________________ | 
         
         
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               President of the Senate | 
            Speaker of the House      | 
         
         
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                   I certify that H.B. No. 2442 was passed by the House on May 2,  | 
         
         
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            2023, by the following vote:  Yeas 133, Nays 11, 3 present, not  | 
         
         
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            voting. | 
         
         
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            ______________________________ | 
         
         
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            Chief Clerk of the House    | 
         
         
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                   I certify that H.B. No. 2442 was passed by the Senate on May  | 
         
         
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            23, 2023, by the following vote:  Yeas 31, Nays 0. | 
         
         
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            ______________________________ | 
         
         
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            Secretary of the Senate     | 
         
         
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            APPROVED:  _____________________ | 
         
         
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                               Date           | 
         
         
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                      _____________________ | 
         
         
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                             Governor        |