82R29060 RWG-D By: Nichols, Gallegos, Patrick S.B. No. 635 (Larson) Substitute the following for S.B. No. 635: No. A BILL TO BE ENTITLED AN ACT relating to the authority of the Texas Commission on Environmental Quality. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 13.043(h), Water Code, is amended to read as follows: (h) The commission or executive director may[, on a motion by the executive director or by the appellant under Subsection (a), (b), or (f) of this section,] establish interim rates to be in effect until a final decision is made in an appeal filed under Subsection (a), (b), or (f). SECTION 2. Sections 13.187(b) and (l), Water Code, are amended to read as follows: (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. (l) At any time during the pendency of the rate proceeding the regulatory authority or, if the regulatory authority is the commission, the executive director may fix interim rates to remain in effect until a final determination is made on the proposed rate. SECTION 3. 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 4. 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 5. 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 6. 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 7. 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 8. 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 9. 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 10. 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 11. Sections 49.322 and 54.031, Water Code, are repealed. SECTION 12. 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 13. This Act takes effect September 1, 2011.