By Lewis of Orange                                    H.B. No. 1935
       74R5852 CBH-F
                                 A BILL TO BE ENTITLED
    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 that converted from a
   1-12  nonprofit water supply or sewer service corporation under Chapter
   1-13  65, Water Code; or
   1-14              (2)  the retail public utility that is authorized to
   1-15  serve in the certificated area that is annexed or incorporated by
   1-16  the municipality is a retail public utility, other than a nonprofit
   1-17  water supply or sewer service corporation, and whose service area
   1-18  is located entirely within the boundaries of a municipality with a
   1-19  population of 1.7 million or more according to the most recent
   1-20  federal census.
   1-21        SECTION 2.  The importance of this legislation and the
   1-22  crowded condition of the calendars in both houses create an
   1-23  emergency and an imperative public necessity that the
   1-24  constitutional rule requiring bills to be read on three several
    2-1  days in each house be suspended, and this rule is hereby suspended,
    2-2  and that this Act take effect and be in force from and after its
    2-3  passage, and it is so enacted.
    2-4                       COMMITTEE AMENDMENT NO. 1
    2-5        (1)  On page 1, lines 11-12, delete "that converted from a
    2-6  nonprofit water supply or sewer service corporation".
    2-7        (2)  Add a new Section 2 to read as follows:
    2-8        Section 13.255, Water Code, is amended to add a new
    2-9  subsection (1) to read as follows:
   2-10        (1)  The compensation provided under subsection (g) shall be
   2-11  determined by a qualified individual or firm to serve as
   2-12  independent appraiser, who shall be selected by the affected retail
   2-13  public utility.  The determination of compensation by the
   2-14  independent appraiser shall be binding on the commission.  The
   2-15  costs of the independent appraiser shall be borne by the
   2-16  municipality.
   2-17        (3)  Add a new Section 3 to read as follows:
   2-18        SECTION 3.  Section 13.255, Water Code, is amended to add a
   2-19  new subsection (m) to read as follows:
   2-20        (m)  The commission shall deny an application for single
   2-21  certification by a municipality which fails to demonstrate
   2-22  compliance with the commission's minimum requirements for public
   2-23  drinking water systems.
   2-24        (4)  Add a new Section 4 to read as follows:
   2-25        SECTION 4.  Section 13.255(g), Water Code, is amended to read
   2-26  as follows:
   2-27        (g)  For the purpose of implementing this section, the value
    3-1  of real property shall be determined <by the commission and/or the
    3-2  court> according to the standards set forth in Chapter 21, Property
    3-3  Code, governing actions in eminent domain; the value of personal
    3-4  property shall be determined according to the <rules to be
    3-5  promulgated by the commission pursuant to the> factors in this
    3-6  subsection.  The factors ensuring <Such rules shall assure> that
    3-7  the compensation to a retail public utility for the taking, <and>
    3-8  damaging, and/or loss of personal property, including the retail
    3-9  public utility's business, is just and adequate, <and> shall, at a
   3-10  minimum, include <take into account the following factors>:  impact
   3-11  on the existing indebtedness of the retail public utility and its
   3-12  ability to repay that debt, the value of the service facilities
   3-13  <personal and real property> of the retail public utility located
   3-14  within the area in question, the amount of any expenditures for
   3-15  planning, design or construction of service facilities outside the
   3-16  incorporated or annexed area which are allocable to service to the
   3-17  area in question, the amount of the retail public utility's
   3-18  contractual obligations allocable to the area in question, any
   3-19  demonstrated impairment of service or increase of cost to consumers
   3-20  of the retail public utility remaining after the single
   3-21  certification, the impact on future revenues and expenses of the
   3-22  retail public utility, necessary and reasonable legal expenses and
   3-23  professional fees, factors relevant to maintaining the current
   3-24  financial integrity of the retail public utility, and other
   3-25  relevant factors.
   3-26        (5)  Renumber Section 2 appropriately.
   3-27                                                      Lewis of Orange