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