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.