89R1848 CXP-D     By: Flores S.B. No. 947       A BILL TO BE ENTITLED   AN ACT   relating to a certificate of public convenience and necessity to   provide water or sewer service in an area incorporated or annexed by   a municipality.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 13.255(c), (d), (e), (f), and (i),   Water Code, are amended to read as follows:          (c)  The utility commission by order shall grant single   certification to the municipality. [The utility commission shall   also determine in its order the monetary amount that is adequate and   just to compensate the retail public utility for any of the retail   public utility's property the utility commission determines is   being rendered useless or valueless by the single certification.]   If the municipality in its application has requested the transfer   of specified property of the retail public utility to the   municipality or to a franchised utility, the utility commission   shall also determine in its order the adequate and just   compensation to be paid, under the provisions of this section, for   the transferred [such] property and [pursuant to the provisions of   this section, including an award for] damages to or adverse effects   on property remaining in the ownership of the retail public utility   after single certification. The order of the utility commission   shall not be effective to transfer property. A transfer of property   may be obtained under this section only by a court judgment rendered   under Subsection (d) or (e). The grant of single certification by   the utility commission takes effect on the date the municipality or   franchised utility, as the case may be, pays adequate and just   compensation pursuant to court order, or pays an amount into the   registry of the court or to the retail public utility under   Subsection (f). If the court judgment provides that the retail   public utility is not entitled to any compensation, the grant of   single certification takes effect when the court judgment becomes   final.          (d)  In the event the final order of the utility commission   is not appealed within 30 days, the municipality may request the   district court of Travis County to enter a judgment consistent with   the order of the utility commission. In such event, the court shall   render a judgment that:                (1)  transfers to the municipally owned utility or   franchised utility title to property to be transferred to the   municipally owned utility or franchised utility as delineated by   the utility commission's final order [and property determined by   the utility commission to be rendered useless or valueless by the   granting of single certification]; and                (2)  orders payment to the retail public utility of   adequate and just compensation [for the property] as determined by   the utility commission in its final order under Subsection (c).          (e)  Any party that is aggrieved by a final order of the   utility commission under this section may file an appeal with the   district court of Travis County within 30 days after the order   becomes final. The hearing in such an appeal before the district   court shall be by trial de novo on all issues. After the hearing, if   the court determines that the municipally owned utility or   franchised utility is entitled to single certification under the   provisions of this section, the court shall enter a judgment that:                (1)  transfers to the municipally owned utility or   franchised utility title to property requested by the municipality   to be transferred to the municipally owned utility or franchised   utility and located within the singly certificated area [and   property determined by the court or jury to be rendered useless or   valueless by the granting of single certification]; and                (2)  orders payment in accordance with Subsection (g)   to the retail public utility of adequate and just compensation for   the property transferred, and for the property remaining in the   ownership of the retail public utility after single certification   that is damaged or adversely affected, as determined by the court or   jury.          (f)  Transfer of property shall be effective on the date the   judgment becomes final. However, after the judgment of the court is   entered, the municipality or franchised utility may take possession   of transferred [condemned] property pending appeal if the   municipality or franchised utility pays the retail public utility   or pays into the registry of the court, subject to withdrawal by the   retail public utility, the amount, if any, established in the   court's judgment as just and adequate compensation. To provide   security in the event an appellate court, or the trial court in a   new trial or on remand, awards compensation in excess of the   original award, the municipality or franchised utility, as the case   may be, shall deposit in the registry of the court an additional sum   in the amount of the award, or a surety bond in the same amount   issued by a surety company qualified to do business in this state,   conditioned to secure the payment of an award of compensation   [damages] in excess of the original award of the trial court. On   application by the municipality or franchised utility, the court   shall order that funds deposited in the registry of the court be   deposited in an interest-bearing account, and that interest   accruing prior to withdrawal of the award by the retail public   utility be paid to the municipality or to the franchised utility.   In the event the municipally owned utility or franchised utility   takes possession of property or provides utility service in the   singly certificated area pending appeal, and a court in a final   judgment in an appeal under this section holds that the grant of   single certification was in error, the retail public utility is   entitled to seek compensation for any damages sustained by it in   accordance with Subsection (g) of this section.          (i)  In the event that a municipality files an application   for single certification on behalf of a franchised utility, the   municipality shall be joined in such application by such franchised   utility, and the franchised utility shall make all payments   required in the court's judgment to adequately and justly   compensate the retail public utility [for any taking or damaging of   property and] for the transfer of property to such franchised   utility and for the property remaining in the ownership of the   retail public utility after single certification that is damaged or   adversely affected.          SECTION 2.  The changes in law made by this Act apply only to   a proceeding affecting a certificate of public convenience and   necessity that commences on or after the effective date of this Act.   A proceeding affecting a certificate of public convenience and   necessity that commenced before the effective date of this Act is   governed by the law in effect on the date the proceeding is   commenced, and that law is continued in effect for that purpose.          SECTION 3.  This Act takes effect September 1, 2025.