Amend CSHB 725 (Senate Committee printing) by adding a new appropriately numbered SECTION as follows:

SECTION ____.  Subsection (j), Section 13.255, Water Code, is amended as follows:

(j)  This section shall apply only in a case where:

(1)  the retail public utility that is authorized to serve in the certificated area that is annexed or incorporated by the municipality is a nonprofit water supply or sewer service corporation, a special utility district under Chapter 65, Water Code, a fresh water supply district under Chapter 53 Water Code; or

(2)  the retail public utility that is authorized to serve in the certificated area that is annexed or incorporated by the municipality is a retail public utility, other than a nonprofit water supply or sewer service corporation, and whose service area is located entirely within the boundaries of a municipality with a population of 1.7 million or more according to the most recent federal census.; or