1-1                                   AN ACT
 1-2     relating to the selection of appraisers for the determination of
 1-3     compensation paid to certain retail public utilities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 13.255, Water Code, is amended by
 1-6     amending Subsection (l) to read as follows:
 1-7           (l)  For an area incorporated by a municipality, the [The]
 1-8     compensation provided under Subsection (g) shall be determined by a
 1-9     qualified individual or firm to serve as independent appraiser, who
1-10     shall be selected by the affected retail public utility, and the
1-11     costs of the appraiser shall be paid by the municipality.  For an
1-12     area annexed by a municipality, the compensation provided under
1-13     Subsection (g) shall be determined by a qualified individual or
1-14     firm to which the municipality and the retail public utility agree
1-15     to serve as independent appraiser.  If the retail public utility
1-16     and the municipality  are unable to agree on a single individual or
1-17     firm to serve as the independent appraiser before the 11th day
1-18     after the date the retail public utility or municipality notifies
1-19     the other party of the impasse, the retail public utility and
1-20     municipality each shall appoint a qualified individual or firm to
1-21     serve as independent appraiser.  On or before the 10th business day
1-22     after the date of their appointment, the independent appraisers
1-23     shall meet to reach an agreed determination of the amount of
1-24     compensation.  If the appraisers are unable to agree on a
 2-1     determination before the 16th business day after the date of their
 2-2     first meeting under this subsection, the retail public utility or
 2-3     municipality may petition the commission or a person the commission
 2-4     designates for the purpose to appoint a third qualified independent
 2-5     appraiser to reconcile the appraisals of the two originally
 2-6     appointed appraisers.  The determination of the third appraiser may
 2-7     not be less than the lesser or more than the greater of the two
 2-8     original appraisals.  The costs of the independent appraisers for
 2-9     an annexed area shall be shared equally by the retail public
2-10     utility and the municipality.  The determination of compensation
2-11     under this subsection is [by the independent appraiser shall be]
2-12     binding on the commission.  [The costs of the independent appraiser
2-13     shall be borne by the municipality.]
2-14           SECTION 2.  The changes in law made by this Act apply only to
2-15     an application filed with the Texas Natural Resource Conservation
2-16     Commission to grant single certification to a municipality under
2-17     Section 13.255(b), Water Code, that is filed on or after September
2-18     1, 1999.  An application to grant single certification filed with
2-19     the commission under that section before September 1, 1999, is
2-20     governed by the law in effect immediately before the effective date
2-21     of this Act, and the former law is continued in effect for that
2-22     purpose.
2-23           SECTION 3.  This Act takes effect September 1, 1999.
2-24           SECTION 4.  The importance of this legislation and the
2-25     crowded condition of the calendars in both houses create an
2-26     emergency and an imperative public necessity that the
2-27     constitutional rule requiring bills to be read on three several
 3-1     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1362 was passed by the House on March
         25, 1999, by a non-record vote; that the House refused to concur in
         Senate amendments to H.B. No. 1362 on May 12, 1999, and requested
         the appointment of a conference committee to consider the
         differences between the two houses; and that the House adopted the
         conference committee report on H.B. No. 1362 on May 26, 1999, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1362 was passed by the Senate, with
         amendments, on May 10, 1999, by the following vote:  Yeas 30, Nays
         0; at the request of the House, the Senate appointed a conference
         committee to consider the differences between the two houses; and
         that the Senate adopted the conference committee report on H.B. No.
         1362 on May 29, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor