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AN ACT
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relating to the procedure for amending or revoking certificates of |
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public convenience and necessity issued to certain water utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 13.254, Water Code, is |
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amended to read as follows: |
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Sec. 13.254. DECERTIFICATION INITIATED BY UTILITY |
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COMMISSION OR UTILITY; EXPEDITED RELEASE INITIATED BY LANDOWNER |
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[REVOCATION OR AMENDMENT OF CERTIFICATE]. |
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SECTION 2. Sections 13.254(a-2) and (d), Water Code, are |
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amended to read as follows: |
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(a-2) A landowner is not entitled to file a petition under |
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[make the election described in] Subsection (a-1) or Section |
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13.2541 [(a-5)] but is entitled to contest under Subsection (a) the |
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involuntary certification of the landowner's [its] property in a |
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hearing held by the utility commission if the landowner's property |
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is located: |
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(1) in [within] the boundaries of any municipality or |
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the extraterritorial jurisdiction of a municipality with a |
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population of more than 500,000 and the municipality or retail |
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public utility owned by the municipality is the holder of the |
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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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(d) A retail public utility may not in any way render retail |
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water or sewer service directly or indirectly to the public in an |
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area that has been decertified under this section unless just and |
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adequate compensation required under Subsection (g) has been paid |
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[without providing compensation for any property that the utility
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commission determines is rendered useless or valueless] to the |
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decertified retail public utility [as a result of the
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decertification]. |
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SECTION 3. Subchapter G, Chapter 13, Water Code, is amended |
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by adding Section 13.2541 to read as follows: |
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Sec. 13.2541. STREAMLINED EXPEDITED RELEASE INITIATED BY |
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LANDOWNER. (a) Sections 13.254(a-7), (c), (d), and (h) apply to a |
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proceeding under this section. |
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SECTION 4. Sections 13.254(a-5) and (a-6), Water Code, are |
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transferred to Section 13.2541, Water Code, as added by this Act, |
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redesignated as Sections 13.2541(b), (c), (d), (e), and (f), Water |
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Code, and amended to read as follows: |
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(b) [(a-5)] As an alternative to decertification or [under
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Subsection (a) and] expedited release under Section 13.254 |
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[Subsection (a-1)], the owner of a tract of land that is at least 25 |
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acres and that is not receiving water or sewer service may petition |
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for expedited release of the area from a certificate of public |
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convenience and necessity in the manner provided by this section |
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and is entitled to that release if the landowner's property is |
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located in a county with a population of at least one million, a |
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county adjacent to a county with a population of at least one |
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million, or a county with a population of more than 200,000 and less |
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than 220,000 that does not contain a public or private university |
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that had a total enrollment in the most recent fall semester of |
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40,000 or more, and not in a county that has a population of more |
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than 45,500 and less than 47,500. |
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(c) [(a-6)] The utility commission shall grant the [a] |
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petition [received under Subsection (a-5)] not later than the 60th |
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day after the date the landowner files the petition. |
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(d) The utility commission may not deny the [a] petition |
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[received under Subsection (a-5)] based on the fact that the [a] |
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certificate holder is a borrower under a federal loan program. |
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(e) The certificate holder may not initiate an application |
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to borrow money under a federal loan program after the date the |
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petition is filed until the utility commission issues a decision on |
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the petition. |
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(f) The utility commission may require an award of |
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compensation by the petitioner to the certificate holder in the |
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manner provided by this section [a decertified retail public
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utility that is the subject of a petition filed under Subsection
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(a-5) as otherwise provided by this section]. |
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SECTION 5. Section 13.2541, Water Code, as added by this |
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Act, is amended by adding Subsections (g), (h), (i), and (j) to read |
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as follows: |
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(g) The monetary amount of compensation, if any, shall be |
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determined by a qualified individual or firm serving as independent |
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appraiser agreed upon by the certificate holder and the petitioner. |
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The determination of compensation by the independent appraiser |
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shall be binding on the utility commission. The costs of the |
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independent appraiser shall be borne by the petitioner. |
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(h) Section 13.254(g) applies to a determination of the |
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monetary amount of compensation under this section. |
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(i) If the petitioner and the certificate holder cannot |
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agree on an independent appraiser within 10 calendar days after the |
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date on which the utility commission approves the petition, the |
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petitioner and the certificate holder shall each engage its own |
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appraiser at its own expense, and each appraisal shall be submitted |
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to the utility commission within 70 calendar days after the date on |
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which the utility commission approves the petition. After |
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receiving the appraisals, the utility commission shall appoint a |
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third appraiser who shall make a determination of the compensation |
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within 100 days after the date on which the utility commission |
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approves the petition. The determination may not be less than the |
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lower appraisal or more than the higher appraisal. The petitioner |
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and the certificate holder shall each pay half the cost of the third |
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appraisal. |
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(j) The utility commission shall ensure that: |
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(1) the monetary amount of compensation is determined |
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not later than the 60th day after the date the utility commission |
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receives the final appraisal; and |
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(2) the landowner pays the compensation to the |
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certificate holder not later than the 90th calendar day after the |
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date the monetary amount of compensation is determined. |
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SECTION 6. The changes in law made by this Act apply only to |
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a proceeding affecting a certificate of public convenience and |
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necessity that commences on or after the effective date of this Act. |
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A proceeding affecting a certificate of public convenience and |
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necessity that commenced before the effective date of this Act is |
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governed by the law in effect on the date the proceeding is |
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commenced, and that law is continued in effect for that purpose. |
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SECTION 7. This Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 2272 passed the Senate on |
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May 1, 2019, by the following vote: Yeas 31, Nays 0; and that the |
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Senate concurred in House amendment on May 25, 2019, by the |
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following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 2272 passed the House, with |
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amendment, on May 22, 2019, by the following vote: Yeas 143, |
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Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |