By Clark                                              H.B. No. 1362
         76R3883 JJT-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the selection of appraisers for the determination of
 1-3     compensation paid to a retail public utility on annexation.
 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) and by adding Subsection (n) to read as
 1-7     follows:
 1-8           (l)  Except as provided by Subsection (n), the amount of
 1-9     compensation to be paid to a retail public utility under this
1-10     section [The compensation provided under Subsection (g)] shall be
1-11     determined by a qualified individual or firm to serve as
1-12     independent appraiser, who shall be selected by the affected retail
1-13     public utility.  The determination of compensation by the
1-14     independent appraiser shall be binding on the commission.  The
1-15     costs of the independent appraiser shall be borne by the
1-16     municipality.
1-17           (n)  If the affected retail public utility is located in an
1-18     area annexed under Section 43.023, 43.024, 43.025, or 43.028, Local
1-19     Government Code, the amount of compensation to be paid to the
1-20     utility shall be determined by a qualified individual or firm
1-21     serving as independent appraiser to which the utility and the
1-22     municipality agree.  If the utility and the municipality are unable
1-23     to agree on a single individual or firm to serve as independent
1-24     appraiser, on or before the 10th working day after the utility or
 2-1     municipality notifies the other of the impasse, the utility and
 2-2     municipality each shall appoint an individual or firm to serve as
 2-3     independent appraiser.  On or before the 10th working day after
 2-4     their appointment, the independent appraisers shall meet to attempt
 2-5     to reach an agreed determination of the amount of compensation.  If
 2-6     the appraisers are unable to agree on a determination of
 2-7     compensation before the 16th working day after the first meeting,
 2-8     the utility or the municipality may petition the commission or a
 2-9     person designated by the commission for this purpose to appoint a
2-10     third independent appraiser to reconcile the appraisals of the
2-11     other appraisers.  The determination of the third appraiser may not
2-12     be less than the lesser or more than the greater of the two
2-13     appraisals.  A determination of compensation reached under this
2-14     subsection is binding on the commission.  The utility and the
2-15     municipality shall share equally the costs of a third appraiser
2-16     appointed under this subsection.
2-17           SECTION 2.  The importance of this legislation and the
2-18     crowded condition of the calendars in both houses create an
2-19     emergency and an imperative public necessity that the
2-20     constitutional rule requiring bills to be read on three several
2-21     days in each house be suspended, and this rule is hereby suspended,
2-22     and that this Act take effect and be in force from and after its
2-23     passage, and it is so enacted.