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	Amend CSHB 2876 by adding the following appropriately 
numbered section to the bill and renumbering the remaining sections 
of the bill as appropriate:
	SECTION 5.  Section 13.245(a), Water Code, is amended to read 
by adding Sections 13.245 and 13.2451 to read as follows:
	Sec. 13.245  MUNICIPAL BOUNDARIES OR EXTRATERRITORIAL 
JURISDICTION OF CERTAIN MUNICIPALITIES.  (a)  This section applies 
only to a municipality with a population of 500,000 or more.
	SECTION 6.  Section 13.246, Water Code, is amended by adding 
Subsection (i) to read as follows:
	(i)  A landowner is not entitled to make an election under 
Subsection (h) but is entitled to contest the inclusion of the 
landowner's property in the proposed service area at a hearing held 
by the commission regarding the application if the proposed service 
area is located within the boundaries or extraterritorial 
jurisdiction of a municipality with a population of more than 
500,000 and the municipality or a utility owned by the municipality 
is the applicant.
	SECTION 8.  Section 13.247, Water Code, is amended by adding 
Subsection (d) to read as follows:
	(d)  In addition to any other rights provided by law, a 
municipality with a population of more than 500,000 may exercise 
the power of eminent domain in the manner provided by Chapter 21, 
Property Code, to acquire a substandard water or sewer system if all 
the facilities of the system are located entirely within the 
municipality's boundaries.  The municipality shall pay just and 
adequate compensation for the property.  In this subsection, 
"substandard water or sewer system" means a system that is not in 
compliance with the municipality's standards for water and 
wastewater service.
	SECTION 9.  Section 13.254, Water Code, is amended by adding 
Subsections (a-2) to read as follows:
	(a-2)  A landowner is not entitled to make the election 
described in Subsection (a-1) but is entitled to contest the 
involuntary certification of its property in a hearing held by the 
commission if the landowner's property is located:
		(1)  within the boundaries of any municipality or the 
extraterritorial jurisdiction of a municipality with a population 
of more than 500,000 and the municipality or retail public utility 
owned by the municipality is the holder of the certificate; or
		(2)  in a platted subdivision actually receiving water 
or sewer service.