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.