By: Geren H.B. No. 1160
  relating to the transfer of a certificate of convenience and
  necessity in certain municipalities.
         SECTION 1.  Subchapter B, Chapter 552, Local Government
  Code, is amended by adding Section 552.024 to read as follows:
  NECESSITY IN CERTAIN MUNICIPALITIES. (a) This section applies to a
  municipality that:
               (1)  has a population of not more than 2,500;
               (2)  is located in a county that:
                     (A)  has a population of 1.7 million or more; and
                     (B)  has two municipalities with a population of
  300,000 or more; and
               (3)  is served by a public utility that:
                     (A)  provides service to the entire municipality;
                     (B)  charges rates for 5,000 gallons of water for
  residential customers that are at least 50 percent higher than the
  rates charged by a municipally owned utility that serves another
  part of the county in which the municipality is located.
         (b)  Notwithstanding any other law, on application by a
  municipality described by Subsection (a), the agency with authority
  over certificates of convenience and necessity for water and sewer
  service shall transfer at such time and under such circumstances as
  specified by a trial court a certificate of convenience and
  necessity for water and sewer service from a public utility to the
  municipality for the public utility's service area located in the
  municipality's corporate limits, if the municipality:
               (1)  has instituted a condemnation proceeding under
  Chapter 21, Property Code, to acquire the property of the public
  utility's water and sewer system in the municipality's corporate
  limits; and
               (2)  will possess the financial, managerial, and
  technical capability to provide continuous and adequate water and
  sewer service to the area to the satisfaction of or in accordance
  with the orders of a trial court at the time of transfer.
         (c)  The transfer of the certificate shall not be effective
               (1)  a judgment that transfers the real property of the
  public utility to the municipality becomes final and is not subject
  to further appeal; and
               (2)  the municipality has paid to the public utility
  the fair market value compensation due, as set by agreement or as
  ordered by a court judgment, for that taking of real property.
         (d)  This section does not expand, restrict, or otherwise
  alter the law with regard to a municipality's right to exercise the
  power of eminent domain under Chapter 21, Property Code.
         SECTION 2.  The changes in law made by this Act apply only to
  a condemnation proceeding in which the petition is filed on or after
  September 1, 2011. A condemnation proceeding in which the petition
  is filed before September 1, 2011, is governed by the law in effect
  on the date the petition was filed, and that law is continued in
  effect for that purpose.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.