85R436 DDT-F     By: Phelan H.B. No. 2777       A BILL TO BE ENTITLED   AN ACT   relating to an application for the amendment of a certificate of   public convenience and necessity in an area within the boundaries   of a political subdivision.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 13.002, Water Code, is amended by adding   Subdivision (13-a) to read as follows:                (13-a)  "Municipal utility district" means a political   subdivision of this state operating under Chapter 54.          SECTION 2.  Section 13.244(a), Water Code, is amended to   read as follows:          (a)  Except as provided by Section 13.258, to [To] obtain a   certificate of public convenience and necessity or an amendment to   a certificate, a public utility or water supply or sewer service   corporation shall submit to the utility commission an application   for a certificate or for an amendment as provided by this section.          SECTION 3.  Section 13.246, Water Code, is amended by adding   Subsection (j) to read as follows:          (j)  This section does not apply to an application under   Section 13.258.          SECTION 4.  Subchapter G, Chapter 13, Water Code, is amended   by adding Section 13.258 to read as follows:          Sec. 13.258.  UTILITY'S APPLICATION FOR AMENDMENT AND USE OF   MUNICIPAL UTILITY DISTRICT'S CERTIFICATE UNDER CONTRACT. (a)   Notwithstanding any other provision of this chapter, a Class A   utility may apply to the commission for an amendment of a municipal   utility district's certificate of convenience and necessity to   allow the utility to have the same rights and powers under the   certificate as the municipal utility district.          (b)  An application under this section must be accompanied   by:                (1)  information identifying the applicant;                (2)  the identifying number of the certificate of   convenience and necessity to be amended;                (3)  the written consent of the municipal utility   district that holds the certificate of convenience and necessity;                (4)  a written statement by the municipal utility   district that the application is supported by a contract between   the municipal utility district and the utility for the utility to   provide services inside the certificated area and inside the   boundaries of the municipal utility district; and                (5)  a description of the proposed service area by:                      (A)  a metes and bounds survey certified by a   licensed state land surveyor or a registered professional land   surveyor;                      (B)  the Texas State Plane Coordinate System;                      (C)  verifiable landmarks, including roads,   creeks, or railroad lines; or                      (D)  if a recorded plat of the area exists, lot and   block number.          (c)  For an application under this section, the utility   commission may not require any information other than the   information required by this section.          (d)  Not later than the 60th day after the date an applicant   files an application for an amendment under this section, the   utility commission shall review whether the application is   complete. If the utility commission finds that the application is   complete, the utility commission shall:                (1)  find that the amendment of the certificate is   necessary for the service, accommodation, convenience, or safety of   the public; and                (2)  grant the application and amend the certificate.          (e)  The utility commission's decision under this section   becomes final after reconsideration, if any, authorized by utility   commission rule, and may not be appealed.          (f)  The consent of a municipality is not required for the   utility commission to amend a certificate as provided by Subsection   (a) for an area that is in the municipality's extraterritorial   jurisdiction.          (g)  Sections 13.241(d) and 13.245 do not apply to an   application under this section.          (h)  Chapter 2001, Government Code, does not apply to an   application for an amendment of a certificate of public convenience   and necessity under this section.          SECTION 5.  Section 341.035(d), Health and Safety Code, is   amended to read as follows:          (d)  A person is not required to file a business plan under   Subsection (a)(1) or (b) if the person:                (1)  is a county;                (2)  is a retail public utility as defined by Section   13.002, Water Code, unless that person is a utility as defined by   that section;                (3)  has executed an agreement with a political   subdivision to transfer the ownership and operation of the water   supply system to the political subdivision; [or]                (4)  is a Class A utility, as defined by Section 13.002,   Water Code, that has applied for or been granted an amendment of a   certificate of convenience and necessity under Section 13.258,   Water Code, for the area in which the construction of the public   drinking water supply system will operate; or                (5)  is a noncommunity nontransient water system and   the person has demonstrated financial assurance under Chapter 361   or 382 of this code or Chapter 26, Water Code.          SECTION 6.  The change in law made by this Act applies only   to an application for an amendment of a certificate of public   convenience and necessity filed on or after the effective date of   this Act. An application filed before the effective date of this Act   is governed by the law in effect on the date the application is   filed, and the former law is continued in effect for that purpose.          SECTION 7.  This Act takes effect September 1, 2017.