H.B. No. 2442

	AN ACT
	relating to certificates of public convenience and necessity issued
	to certain retail public utilities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 13.2541, Water Code, is amended by
	adding Subsection (b-1) to read as follows:
	(b-1)  On the day a petitioner submits a petition to the
	utility commission under this section, the petitioner shall send,
	via certified mail, a copy of the petition to the certificate
	holder, who may submit information to the utility commission to
	controvert information submitted by the petitioner.
	SECTION 2.  Section 13.255, Water Code, is amended by adding
	Subsections (b-1) and (c-3) and amending Subsection (c) to read as
	follows:
	(b-1)  On the day a municipality submits an application for
	single certification to the utility commission under this section,
	the municipality shall send, via certified mail or hand delivery, a
	copy of the application to the retail public utility.
	(c)  The utility commission by order shall grant single
	certification to the municipality. The utility commission shall
	also [determine whether single certification as requested by the
	municipality would result in property of a retail public utility
	being rendered useless or valueless to the retail public utility,
	and shall] 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 [such] 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 for such property pursuant to the
	provisions of this section, including an award for damages to
	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 [only] be obtained under this section only by a court judgment
	rendered under [pursuant to] Subsection (d) or (e). The grant of
	single certification by the utility commission takes [shall go
	into] 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 [shall go
	into] effect when the court judgment becomes final.
	(c-3)  Before filing an appeal under Subsection (e) and not
	later than the seventh day after the date the utility commission
	issues a final order under Subsection (c), the retail public
	utility may appeal the final order to the utility commission in a
	separate hearing before the utility commission.
	SECTION 3.  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 4.  This Act takes effect September 1, 2023.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2442 was passed by the House on May 2,
	2023, by the following vote:  Yeas 133, Nays 11, 3 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2442 was passed by the Senate on May
	23, 2023, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor