82R392 RWG-D
By: Miller of Comal H.B. No. 2400
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the Texas Commission on
Environmental Quality and other entities regarding water and sewer
utilities and certain conservation and reclamation districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 13.187(a), (b), (d), (e), (f), (k), and
(o), Water Code, are amended to read as follows:
(a) A utility may not make changes in its rates except by
delivering a statement of intent to each ratepayer and [with] the
regulatory authority having original jurisdiction at least 120 [60]
days before the proposed effective date of the proposed change. The
proposed effective date of the new rates must be the first day of a
billing period, and the new rates may not apply to service received
before the proposed effective date of the new rates. The statement
of intent must include:
(1) the information required by the regulatory
authority's rules;
(2) a billing comparison regarding the existing water
rate and the new water rate computed for the use of:
(A) 10,000 gallons of water; and
(B) 30,000 gallons of water; and
(3) a billing comparison regarding the existing sewer
rate and the new sewer rate computed for the use of 10,000 gallons,
unless the utility proposes a flat rate for sewer services.
(b) A copy of the statement of intent shall be mailed or
delivered to the appropriate offices of each affected municipality,
to the executive director, and to any [other] affected persons as
required by the regulatory authority's rules.
(d) If [Except as provided by Subsection (d-1), if] the
application or the statement of intent is not substantially
complete or does not comply with the regulatory authority's rules,
it may be rejected and the proposed effective date of the rate
change may be suspended until a properly completed application is
accepted by the regulatory authority and a proper statement of
intent is provided. The commission may also suspend the proposed
effective date of any rate change if the utility does not have a
certificate of public convenience and necessity or a completed
application for a certificate or to transfer a certificate pending
before the commission or if the utility is delinquent in paying the
assessment and any applicable penalties or interest required by
Section 5.701(n) of this code.
(e) The regulatory authority shall hold a hearing on the
proposed rate increase if [If], before the 91st day after the
[effective] date the statement of intent was provided to the
authority and each ratepayer under Subsection (a) [of the rate
change], the regulatory authority receives a complaint from any
affected municipality, or from the lesser of 1,000 or 10 percent of
the ratepayers of the utility over whose rates the regulatory
authority has original jurisdiction[, the regulatory authority
shall set the matter for hearing].
(f) The regulatory authority may set the matter for hearing
on its own motion at any time within 120 days after the [effective]
date the statement of intent was provided to the authority and each
ratepayer under Subsection (a) [of the rate change]. If more than
half of the ratepayers of the utility receive service in a county
with a population of more than 2.5 million, the hearing must be held
at a location in that county.
(k) If the regulatory authority sets the matter for
[receives at least the number of complaints from ratepayers
required for the regulatory authority to set] a hearing under
Subsection (e), the regulatory authority shall [may], pending the
hearing and a decision, suspend the date the rate change would
otherwise be effective until the date the regulatory authority
issues a final decision on the matter. [Except as provided by
Subsection (d-1), the proposed rate may not be suspended for longer
than:
[(1) 90 days by a local regulatory authority; or
[(2) 150 days by the commission.]
(o) If the [a] regulatory authority does not set a hearing
on the proposed rate increase under Subsection (e) or (f), [other
than the commission establishes interim rates or an escrow account,
the regulatory authority must make a final determination on the
rates not later than the first anniversary of the effective date of
the interim rates or escrowed rates or] the rates are automatically
approved as requested by the utility.
SECTION 2. Section 13.242(c), Water Code, is amended to
read as follows:
(c) The commission may by rule allow a municipality or
utility or water supply corporation to render retail water or sewer
service without a certificate of public convenience and necessity
if the municipality has given notice under Section 13.255 [of this
code] that it intends to provide retail water or sewer service to an
area or if the utility or water supply corporation has less than 15
potential connections and is not within the certificated area of
another retail public utility.
SECTION 3. Section 13.248, Water Code, is amended to read as
follows:
Sec. 13.248. CONTRACTS VALID AND ENFORCEABLE. Contracts
between retail public utilities designating areas to be served and
customers to be served by those retail public utilities, when
approved by the commission or the executive director after public
notice [and hearing], are valid and enforceable and are
incorporated into the appropriate areas of public convenience and
necessity.
SECTION 4. Section 49.321, Water Code, is amended to read as
follows:
Sec. 49.321. DISSOLUTION AUTHORITY. After notice [and
hearing], the commission or executive director may dissolve any
district that is inactive for a period of five consecutive years and
has no outstanding bonded indebtedness.
SECTION 5. Section 49.324, Water Code, is amended to read as
follows:
Sec. 49.324. ORDER OF DISSOLUTION. The commission or the
executive director may enter an order dissolving the district [at
the conclusion of the hearing] if the commission or executive
director [it] finds that the district has performed none of the
functions for which it was created for a period of five consecutive
years [before the day of the proceeding] and that the district has
no outstanding bonded indebtedness.
SECTION 6. Section 49.326(a), Water Code, is amended to
read as follows:
(a) Appeals from an [a commission] order dissolving a
district shall be filed and heard in the district court of any of
the counties in which the land is located.
SECTION 7. Section 54.030(b), Water Code, is amended to
read as follows:
(b) The governing body of a district which desires to
convert into a district operating under this chapter shall adopt
and enter in the minutes of the governing body a resolution
declaring that in its judgment, conversion into a municipal utility
district operating under this chapter and under Article XVI,
Section 59, of the Texas Constitution, would serve the best
interest of the district and would be a benefit to the land and
property included in the district. The resolution shall also
request that the commission approve [to hold a hearing on the
question of] the conversion of the district.
SECTION 8. Section 54.032, Water Code, is amended to read as
follows:
Sec. 54.032. CONVERSION OF DISTRICT: NOTICE. (a) Notice
of the conversion [hearing] shall be given by publishing notice in a
newspaper with general circulation in the county or counties in
which the district is located.
(b) The notice shall be published once a week for two
consecutive weeks [with the first publication to be made not less
than 14 full days before the time set for the hearing].
(c) The notice shall:
(1) [state the time and place of the hearing;
[(2)] set out the resolution adopted by the district
in full; and
(2) [(3)] notify all interested persons how they may
offer comments [to appear and offer testimony] for or against the
proposal contained in the resolution.
SECTION 9. Section 54.033, Water Code, is amended to read as
follows:
Sec. 54.033. CONVERSION OF DISTRICT; FINDINGS. (a) If
[After a hearing, if] the commission or the executive director
finds that conversion of the district into one operating under this
chapter would serve the best interest of the district and would be a
benefit to the land and property included in the district, the
commission or executive director [it] shall enter an order making
this finding and the district shall become a district operating
under this chapter and no confirmation election shall be required.
(b) If the commission or the executive director finds that
the conversion of the district would not serve the best interest of
the district and would not be a benefit to the land and property
included in the district, the commission or executive director [it]
shall enter an order against conversion of the district into one
operating under this chapter.
(c) The findings of the commission or the executive director
entered under this section shall be subject to appeal or review
within 30 days after entry of the order [of the commission] granting
or denying the conversion.
(d) A copy of the [commission] order converting a district
shall be filed in the deed records of the county or counties in
which the district is located.
SECTION 10. The following are repealed:
(1) Sections 13.187(d-1), (i), (j), (l), (m), and (n),
Water Code; and
(2) Sections 49.322 and 54.031, Water Code.
SECTION 11. Except as otherwise provided by this Act, this
Act applies only to a statement of intent filed on or after the
effective date of this Act. A rate change to which a statement of
intent filed before the effective date of this Act applies is
governed by the law in effect on the date the statement was filed,
and that law is continued in effect for that purpose.
SECTION 12. This Act takes effect September 1, 2011.