By Turner of Harris H.B. No. 2231
77R2759 MTB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the acquisition of certain water utilities by a
1-3 municipality.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter G, Chapter 13, Water Code, is amended
1-6 by adding Section 13.2541 to read as follows:
1-7 Sec. 13.2541. REVOCATION OF CERTIFICATE WHEN SERVICE
1-8 PROVIDED TO A MUNICIPALITY. (a) On request of a municipality
1-9 served by a retail public utility, the commission at any time
1-10 after notice and hearing may revoke the retail public utility's
1-11 certificate of public convenience and necessity if it finds that
1-12 the retail public utility:
1-13 (1) has never provided, is no longer providing, or has
1-14 failed to provide continuous and adequate service in the
1-15 municipality requesting the revocation; or
1-16 (2) has been grossly or continuously mismanaged or has
1-17 grossly or continuously not complied with this chapter, commission
1-18 rules, or commission orders.
1-19 (b) If the certificate of a retail public utility is revoked
1-20 under Subsection (a), the municipality that requested the
1-21 revocation shall operate the decertified retail public utility for
1-22 an interim period prescribed by commission rule and shall request
1-23 commission approval to acquire the decertified retail public
1-24 utility's facilities and to transfer the decertified retail public
2-1 utility's certificate of convenience and necessity to the
2-2 municipality. The municipality must apply in accordance with
2-3 Subchapter H.
2-4 (c) The compensation paid to the decertified retail public
2-5 utility for its facilities shall be determined by a qualified
2-6 individual or firm serving as independent appraiser agreed upon by
2-7 the decertified retail public utility and the municipality. The
2-8 determination of compensation by the independent appraiser shall be
2-9 binding on the commission. The municipality shall pay the costs of
2-10 the independent appraiser. For the purpose of implementing this
2-11 section, the value of real property shall be determined according
2-12 to the standards prescribed by Chapter 21, Property Code, governing
2-13 actions in eminent domain.
2-14 (d) The commission shall determine whether the municipality
2-15 shall pay the compensation in a lump sum or over a specified
2-16 period.
2-17 SECTION 2. This Act takes effect September 1, 2001.