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AN ACT
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relating to the transfer of a certificate of convenience and |
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necessity in certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 552, Local Government |
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Code, is amended by adding Section 552.024 to read as follows: |
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Sec. 552.024. TRANSFER OF CERTIFICATE OF CONVENIENCE AND |
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NECESSITY IN CERTAIN MUNICIPALITIES. (a) This section applies to: |
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(1) a municipality that: |
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(A) has a population of not more than 2,500; |
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(B) is located in a county that: |
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(i) has a population of 1.7 million or more; |
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and |
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(ii) has two municipalities with a |
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population of 300,000 or more; and |
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(C) is served by a public utility that: |
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(i) provides service to the entire |
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municipality; and |
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(ii) charges rates for 5,000 gallons of |
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water for residential customers that are at least 50 percent higher |
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than the rates charged by a municipally owned utility that serves |
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another part of the county in which the municipality is located; and |
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(2) a municipality: |
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(A) with a population of more than 95,000; |
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(B) located in a county that: |
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(i) borders Lake Palestine; and |
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(ii) has a population of more than 200,000; |
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(C) that owns and operates a utility that |
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provides sewer service; and |
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(D) that has an area within the boundaries of the |
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municipality that is certificated to another retail public utility |
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that provides sewer service. |
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(b) Notwithstanding any other law, on application by a |
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municipality described by Subsection (a), the agency with authority |
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over certificates of convenience and necessity for water and sewer |
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service shall transfer at such time and under such circumstances as |
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specified by a trial court a certificate of convenience and |
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necessity for water and sewer service from a public utility to the |
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municipality for the public utility's service area located in the |
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municipality's corporate limits, if the municipality: |
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(1) has instituted a condemnation proceeding under |
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Chapter 21, Property Code, to acquire the property of the public |
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utility's water and sewer system in the municipality's corporate |
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limits; and |
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(2) will possess the financial, managerial, and |
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technical capability to provide continuous and adequate water and |
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sewer service to the area to the satisfaction of or in accordance |
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with the orders of a trial court at the time of transfer. |
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(c) The transfer of the certificate shall not be effective |
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unless: |
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(1) a judgment that transfers the real property of the |
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public utility to the municipality becomes final and is not subject |
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to further appeal; and |
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(2) the municipality has paid to the public utility |
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the fair market value compensation due, as set by agreement or as |
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ordered by a court judgment, for that taking of real property. |
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(d) This section does not expand, restrict, or otherwise |
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alter the law with regard to a municipality's right to exercise the |
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power of eminent domain under Chapter 21, Property Code. |
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SECTION 2. Section 552.024, Local Government Code, as added |
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by this Act, applies only to a condemnation proceeding in which the |
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petition is filed on or after September 1, 2011. A condemnation |
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proceeding in which the petition is filed before September 1, 2011, |
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is governed by the law in effect on the date the petition was filed, |
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and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1160 was passed by the House on April |
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24, 2013, by the following vote: Yeas 142, Nays 1, 1 present, not |
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voting; that the House refused to concur in Senate amendments to |
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H.B. No. 1160 on May 16, 2013, and requested the appointment of a |
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conference committee to consider the differences between the two |
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houses; and that the House adopted the conference committee report |
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on H.B. No. 1160 on May 23, 2013, by the following vote: Yeas 139, |
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Nays 1, 2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1160 was passed by the Senate, with |
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amendments, on May 15, 2013, by the following vote: Yeas 31, Nays |
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0; at the request of the House, the Senate appointed a conference |
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committee to consider the differences between the two houses; and |
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that the Senate adopted the conference committee report on H.B. No. |
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1160 on May 23, 2013, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |