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A BILL TO BE ENTITLED
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AN ACT
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relating to certificates of public convenience and necessity for |
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water or sewer services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.254, Water Code, is amended by |
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amending Subsections (a) and (a-2) and adding Subsections (a-5) and |
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(a-6) to read as follows: |
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(a) The commission at any time after notice and hearing |
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may[, on its own motion or on receipt of a petition described by
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Subsection (a-1),] revoke or amend any certificate of public |
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convenience and necessity with the written consent of the |
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certificate holder or if it finds that: |
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(1) the certificate holder has never provided, is no |
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longer providing, is incapable of providing, or has failed to |
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provide continuous and adequate service in the area, or part of the |
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area, covered by the certificate; |
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(2) in an affected county as defined in Section |
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16.341, the cost of providing service by the certificate holder is |
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so prohibitively expensive as to constitute denial of service, |
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provided that, for commercial developments or for residential |
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developments started after September 1, 1997, in an affected county |
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as defined in Section 16.341, the fact that the cost of obtaining |
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service from the currently certificated retail public utility makes |
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the development economically unfeasible does not render such cost |
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prohibitively expensive in the absence of other relevant factors; |
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(3) the certificate holder has agreed in writing to |
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allow another retail public utility to provide service within its |
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service area, except for an interim period, without amending its |
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certificate; or |
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(4) the certificate holder has failed to file a cease |
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and desist action pursuant to Section 13.252 within 180 days of the |
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date that it became aware that another retail public utility was |
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providing service within its service area, unless the certificate |
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holder demonstrates good cause for its failure to file such action |
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within the 180 days. |
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(a-2) A landowner is not entitled to make the election |
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described in Subsection (a-1) or (a-5) but is entitled to contest |
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under Subsection (a) the involuntary certification of its property |
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in a hearing held by the commission if the landowner's property is |
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located: |
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(1) within the boundaries of any municipality or the |
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extraterritorial jurisdiction of a municipality with a population |
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of more than 500,000 and the municipality or retail public utility |
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owned by the municipality is the holder of the certificate; or |
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(2) in a platted subdivision actually receiving water |
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or sewer service. |
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(a-5) As an alternative to decertification under Subsection |
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(a) and expedited release under Subsection (a-1), the owner of a |
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tract of land that is at least 25 acres and that is not receiving |
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water or sewer service may petition for expedited release of the |
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area from a certificate of public convenience and necessity and is |
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entitled to that release if the landowner's property is located in a |
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county with a population of at least one million, a county adjacent |
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to a county with a population of at least one million, or a county |
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with a population of more than 200,000 and less than 220,000. |
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(a-6) The commission shall grant a petition received under |
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Subsection (a-5) not later than the 60th day after the date the |
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landowner files the petition. The commission may not deny a |
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petition received under Subsection (a-5) based on the fact that a |
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certificate holder is a borrower under a federal loan program. The |
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commission may require an award of compensation to a decertified |
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retail public utility that is the subject of a petition filed under |
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Subsection (a-5) as otherwise provided by this section. |
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SECTION 2. This Act takes effect September 1, 2011. |
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