| (C) the landowner or retail public utility that submitted
the formal request has not unreasonably refused to:
(i) comply with the municipality's service extension
and development process; or
(ii) enter into a contract for retail water or sewer
utility service with the municipality.
(5) If a municipality refuses to provide service in
the requested area, as evidenced by a formal vote of the municipality's
governing body or an official notification from the municipality,
the commission is not required to make the findings otherwise required
by this section and may grant the CCN to the retail public utility
at any time after the date of the formal vote or receipt of the official
notification.
(6) The commission must include as a condition of a
CCN granted under paragraph (4) or (5) of this subsection that all
water and sewer facilities be designed and constructed in accordance
with the municipality's standards for water and sewer facilities.
(7) Paragraphs (4) - (6) of this subsection do not
apply to Cameron, Hidalgo, or Willacy Counties, or to a county:
(A) with a population of more than 30,000 and less
than 35,000 that borders the Red River;
(B) with a population of more than 100,000 and less
than 200,000 that borders a county described by subparagraph (A) of
this paragraph;
(C) with a population of 130,000 or more that is adjacent
to a county with a population of 1.5 million or more that is within
200 miles of an international border; or
(D) with a population of more than 40,000 and less
than 50,000 that contains a portion of the San Antonio river.
(E) The commission will maintain on its website a list
of counties that are presumed to meet the requirements of this paragraph.
(8) A commitment by a city to provide service must,
at a minimum, provide that the construction of service facilities
will begin within one year and will be substantially completed within
two years after the date the retail public utility's application was
filed with the municipality.
(9) If the commission makes a decision under paragraph
(3) of this subsection regarding the granting of a CCN without the
consent of the municipality, the municipality or the retail public
utility may appeal the decision to the appropriate state district
court.
(d) Extension beyond extraterritorial jurisdiction.
(1) Except as provided by paragraph (2) of this subsection,
if a municipality extends its extraterritorial jurisdiction to include
an area in the certificated service area of a retail public utility,
the retail public utility may continue and extend service in its certificated
service area under the rights granted by its CCN and this chapter.
(2) The commission may not extend a municipality's
certificated service area beyond its extraterritorial jurisdiction
if an owner of land that is located wholly or partly outside the extraterritorial
jurisdiction elects to exclude some or all of the landowner's property
within the requested area in accordance with TWC §13.246(h).
This subsection does not apply to a sale, transfer, merger, consolidation,
acquisition, lease, or rental of a CCN as approved by the commission.
(3) Paragraph (2) of this subsection does not apply
to an extension of extraterritorial jurisdiction in Cameron, Hidalgo,
or Willacy Counties, or in a county:
(A) with a population of more than 30,000 and less
than 35,000 that borders the Red River;
(B) with a population of more than 100,000 and less
than 200,000 that borders a county described by subparagraph (A) of
this paragraph;
(C) with a population of 130,000 or more that is adjacent
to a county with a population of 1.5 million or more that is within
200 miles of an international border; or
(D) with a population of more than 40,000 and less
than 50,000 that contains a portion of the San Antonio river.
(E) The commission will maintain on its website a list
of counties that are presumed to meet the requirements of this paragraph.
(4) To the extent of a conflict between this subsection
and TWC §13.245, TWC §13.245 prevails.
(e) Area within municipality.
(1) If an area is within the boundaries of a municipality,
any retail public utility holding or entitled to hold a CCN under
this chapter to provide retail water and/or sewer utility service
or operate facilities in that area may continue and extend service
in its certificated service area, unless the municipality exercises
its power of eminent domain to acquire the property of the retail
public utility under this subsection. Except as provided by TWC §13.255,
a municipally owned or operated utility may not provide retail water
and sewer utility service within the certificated service area of
another retail public utility without first having obtained from the
commission a CCN that includes the area to be served.
(2) This subsection may not be construed as limiting
the power of municipalities to incorporate or extend their boundaries
by annexation, or as prohibiting any municipality from levying taxes
and other special charges for the use of the streets as are authorized
by Texas Tax Code §182.025.
(3) In addition to any other rights provided by law,
a municipality with a population of more than 500,000 may exercise
the power of eminent domain in the manner provided by Texas Property
Code, chapter 21, to acquire a substandard water or sewer system if
all the facilities of the system are located entirely within the municipality's
boundaries. The municipality shall pay just and adequate compensation
for the property. In this subsection, substandard water or sewer system
means a system that is not in compliance with the municipality's standards
for water and wastewater service.
(A) A municipality shall notify the commission no later
than seven days after filing an eminent domain lawsuit to acquire
a substandard water or sewer system and also notify the commission
no later than seven days after acquiring the system.
(B) With the notification of filing its eminent domain
lawsuit, the municipality, in its sole discretion, shall either request
that the commission cancel the CCN of the acquired system or transfer
the certificate to the municipality, and the commission shall take
such requested action upon notification of acquisition of the system.
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