H.B. No. 1935
    1-1                                AN ACT
    1-2  relating to single certification of an area served by a
    1-3  municipality and certain retail public utilities.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 13.255(j), Water Code, is amended to read
    1-6  as follows:
    1-7        (j)  This section shall apply only in a case where:
    1-8              (1)  the retail public utility that is authorized to
    1-9  serve in the certificated area that is annexed or incorporated by
   1-10  the municipality is a nonprofit water supply or sewer service
   1-11  corporation or a special utility district under Chapter 65, Water
   1-12  Code; or
   1-13              (2)  the retail public utility that is authorized to
   1-14  serve in the certificated area that is annexed or incorporated by
   1-15  the municipality is a retail public utility, other than a nonprofit
   1-16  water supply or sewer service corporation, and whose service area
   1-17  is located entirely within the boundaries of a municipality with a
   1-18  population of 1.7 million or more according to the most recent
   1-19  federal census.
   1-20        SECTION 2.  Section 13.255, Water Code, is amended by adding
   1-21  Subsection (l) to read as follows:
   1-22        (l)  The compensation provided under Subsection (g) shall be
   1-23  determined by a qualified individual or firm to serve as
   1-24  independent appraiser, who shall be selected by the affected retail
    2-1  public utility.  The determination of compensation by the
    2-2  independent appraiser shall be binding on the commission.  The
    2-3  costs of the independent appraiser shall be borne by the
    2-4  municipality.
    2-5        SECTION 3.  Section 13.255, Water Code, is amended by adding
    2-6  Subsection (m) to read as follows:
    2-7        (m)  The commission shall deny an application for single
    2-8  certification by a municipality that fails to demonstrate
    2-9  compliance with the commission's minimum requirements for public
   2-10  drinking water systems.
   2-11        SECTION 4.  Section 13.255(g), Water Code, is amended to read
   2-12  as follows:
   2-13        (g)  For the purpose of implementing this section, the value
   2-14  of real property shall be determined <by the commission and/or the
   2-15  court> according to the standards set forth in Chapter 21, Property
   2-16  Code, governing actions in eminent domain; the value of personal
   2-17  property shall be determined according to the <rules to be
   2-18  promulgated by the commission pursuant to the> factors in this
   2-19  subsection.  The factors ensuring <Such rules shall assure> that
   2-20  the compensation to a retail public utility for the taking, <and>
   2-21  damaging, and/or loss of personal property, including the retail
   2-22  public utility's business, is just and adequate, <and> shall, at a
   2-23  minimum, include <take into account the following factors>:  impact
   2-24  on the existing indebtedness of the retail public utility and its
   2-25  ability to repay that debt, the value of the service facilities
   2-26  <personal and real property> of the retail public utility located
   2-27  within the area in question, the amount of any expenditures for
    3-1  planning, design, or construction of service facilities outside the
    3-2  incorporated or annexed area that are allocable to service to the
    3-3  area in question, the amount of the retail public utility's
    3-4  contractual obligations allocable to the area in question, any
    3-5  demonstrated impairment of service or increase of cost to consumers
    3-6  of the retail public utility remaining after the single
    3-7  certification, the impact on future revenues and expenses of the
    3-8  retail public utility, necessary and reasonable legal expenses and
    3-9  professional fees, factors relevant to maintaining the current
   3-10  financial integrity of the retail public utility, and other
   3-11  relevant factors.
   3-12        SECTION 5.  The importance of this legislation and the
   3-13  crowded condition of the calendars in both houses create an
   3-14  emergency and an imperative public necessity that the
   3-15  constitutional rule requiring bills to be read on three several
   3-16  days in each house be suspended, and this rule is hereby suspended,
   3-17  and that this Act take effect and be in force from and after its
   3-18  passage, and it is so enacted.