By Brown of Brazos                                    H.B. No. 3137
         76R7865 JJT-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the provision of retail water and sewer service by a
 1-3     utility owned or operated by a municipality in certain territories
 1-4     of the municipality.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 13.247(a), Water Code, is amended to read
 1-7     as follows:
 1-8           (a)  If an area has been or is included within the boundaries
 1-9     of a municipality [city] as the result of annexation,
1-10     incorporation, or otherwise, all retail public  utilities certified
1-11     or entitled to certification under this chapter to provide service
1-12     or operate facilities in that area before the inclusion may
1-13     continue and extend service in its area of public convenience and
1-14     necessity within the annexed or incorporated area pursuant to the
1-15     rights granted by its certificate and this chapter.  A utility
1-16     owned or operated by the municipality is not required to obtain a
1-17     certificate of public convenience and necessity to provide retail
1-18     water or sewer service in territory within its boundaries if the
1-19     territory or customers in the territory are not receiving service
1-20     from the retail public utility that holds a certificate for the
1-21     territory at the time the territory is first included in the
1-22     municipality.  [Except as provided by Section 13.255 of this code,
1-23     a  municipally owned or operated utility may not provide retail
1-24     water and sewer utility service within the area certificated to
 2-1     another retail public utility without first having obtained from
 2-2     the commission a certificate of public convenience and necessity
 2-3     that includes the areas to be served.]
 2-4           SECTION 2.  This Act takes effect September 1, 1999.
 2-5           SECTION 3.  The importance of this legislation and the
 2-6     crowded condition of the calendars in both houses create an
 2-7     emergency and an imperative public necessity that the
 2-8     constitutional rule requiring bills to be read on three several
 2-9     days in each house be suspended, and this rule is hereby suspended.