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A BILL TO BE ENTITLED
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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 a |
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municipality that: |
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(1) has a population of not more than 2,500; |
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(2) is located in a county that: |
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(A) has a population of 1.7 million or more; and |
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(B) has two municipalities with a population of |
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300,000 or more; and |
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(3) is served by a public utility that: |
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(A) provides service to the entire municipality; |
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and |
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(B) charges rates for 5,000 gallons of water for |
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residential customers that are at least 50 percent higher than the |
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rates charged by a municipally owned utility that serves another |
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part of the county in which the municipality is located. |
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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 a certificate of convenience and necessity |
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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) is willing to provide continuous and adequate |
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water and sewer service to the area; and |
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(2) 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. |
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(c) The transfer is effective on the date the court in which |
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the condemnation proceeding is pending issues an order that: |
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(1) transfers the property of the public utility to |
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the municipality; and |
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(2) requires the municipality to ensure continuous and |
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adequate water and sewer service to the citizens of the |
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municipality. |
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SECTION 2. The changes in law made by this Act apply only to |
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a condemnation proceeding in which the petition is filed on or after |
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September 1, 2011. A condemnation proceeding in which the petition |
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is filed before September 1, 2011, is governed by the law in effect |
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on the date the petition was filed, and that law is continued in |
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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. |