H.B. No. 1318 amends the Water Code regarding the process for municipalities to obtain a certificate of public convenience and necessity for providing water or sewer services in areas that have been incorporated or annexed. The bill specifies that the utility commission will grant single certification to the municipality and determine adequate compensation for any property transferred from a retail public utility. Notably, the bill removes the requirement for the utility commission to assess compensation for property deemed useless or valueless due to the certification. Instead, it emphasizes compensation for property transferred and for any remaining property that may be damaged or adversely affected.

Additionally, the bill introduces new provisions that clarify the process for appealing utility commission orders and the conditions under which municipalities or franchised utilities can take possession of property pending appeal. It establishes that compensation must be paid for both transferred property and any remaining property that is negatively impacted. The changes in law will apply only to proceedings that commence after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Water Code 13.255 (Water Code 13)
House Committee Report: Water Code 13.255 (Water Code 13)
Engrossed: Water Code 13.255 (Water Code 13)
Senate Committee Report: Water Code 13.255 (Water Code 13)
Enrolled: Water Code 13.255 (Water Code 13)