| 1 | 1 | | 81R1555 TJS-D |
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| 2 | 2 | | By: Nichols S.B. No. 720 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the recovery of certain rate case expenses by a water |
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| 8 | 8 | | and sewer utility. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 13.185(h), Water Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (h) The regulatory authority may not include for ratemaking |
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| 13 | 13 | | purposes: |
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| 14 | 14 | | (1) legislative advocacy expenses, whether made |
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| 15 | 15 | | directly or indirectly, including legislative advocacy expenses |
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| 16 | 16 | | included in trade association dues; |
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| 17 | 17 | | (2) costs of processing a refund or credit under |
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| 18 | 18 | | Section 13.187 [of this chapter]; [or] |
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| 19 | 19 | | (3) legal expenses, including attorney's fees and |
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| 20 | 20 | | court costs, incurred by a water and sewer utility in a contested |
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| 21 | 21 | | proceeding under Section 13.187 or in an appeal of that proceeding, |
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| 22 | 22 | | other than legal expenses described by Section 13.084; or |
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| 23 | 23 | | (4) any expenditure found by the regulatory authority |
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| 24 | 24 | | to be unreasonable, unnecessary, or not in the public interest, |
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| 25 | 25 | | including executive salaries, advertising expenses, legal expenses |
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| 26 | 26 | | not described by Subdivision (3), and civil penalties or fines. |
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| 27 | 27 | | SECTION 2. This Act applies only to a statement of intent |
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| 28 | 28 | | for which a regulatory authority has not issued a final decision |
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| 29 | 29 | | before the effective date of this Act. A statement of intent for |
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| 30 | 30 | | which a regulatory authority has issued a final decision before the |
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| 31 | 31 | | effective date of this Act is governed by the law in effect on the |
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| 32 | 32 | | date that final decision was issued and that law is continued in |
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| 33 | 33 | | effect for that purpose. |
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| 34 | 34 | | SECTION 3. This Act takes effect September 1, 2009. |
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