Amend HB 1291 by adding SECTION ____ in the appropriate place
as follows:
      1.  "SECTION ____  Amend Section 13.247(a), Water Code, to
read as follows:
      (a)  If an area has been or is included within the boundaries
of a municipality <city> as the result of annexation,
incorporation, or otherwise, all retail public utilities certified
or entitled to certification under this chapter to provide service
or operate facilities in that area before the inclusion may
continue and extend service in its area of public convenience and
necessity within the annexed or incorporated area pursuant to the
rights granted by its certificate and this chapter.
      (b)  A utility owned or operated by the municipality is not
required to obtain a certificate of public convenience and
necessity to provide retail water or sewer service in territory
within its boundaries if;
      (1)  the territory or customers in the territory are not
receiving service from the retail public utility that holds a
certificate for the territory at the time the territory is first
included in the municipality;
      (2)  such retail public utility has no facilities located
within the territory at the time the territory is first included in
the municipality; and
      (3)  such retail public utility has held the certificate of
convenience and necessity which includes the territory for at least
ten years.
      (c)  The municipality shall not be required to compensate the
retail public utility for any property in the territory which has
not received service from the retail public utility or for the loss
of service area of the retail public utility.  <Except as provided
by Section 13.255 of this code, a municipally owned or operated
utility may not provide retail water and sewer utility service
within the area certificated to another retail public utility
without first having obtained from the commission a certificate of
public convenience and necessity that includes the areas to be
served.>"