Texas 2015 - 84th Regular

Texas House Bill HB2256 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R4369 JXC-D
2	2	By: Keffer H.B. No. 2256
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the transfer of functions relating to the rates and
8	8	services of certain gas utilities, propane distribution system
9	9	retailers, and submetering from the Railroad Commission of Texas to
10	10	the Public Utility Commission of Texas.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 101.003, Utilities Code, is amended by
13	13	adding Subdivision (3-a) and amending Subdivision (13) to read as
14	14	follows:
15	15	(3-a) "Commission" means the Public Utility Commission
16	16	of Texas.
17	17	(13) "Regulatory authority" means either the
18	18	[railroad] commission or the governing body of a municipality, in
19	19	accordance with the context.
20	20	SECTION 2. Section 101.004(a), Utilities Code, is amended
21	21	to read as follows:
22	22	(a) The [railroad] commission may determine that a person is
23	23	an affiliate for purposes of this subtitle if the [railroad]
24	24	commission after notice and hearing finds that the person:
25	25	(1) actually exercises substantial influence or
26	26	control over the policies and actions of a gas utility;
27	27	(2) is a person over which a gas utility exercises the
28	28	control described by Subdivision (1);
29	29	(3) is under common control with a gas utility; or
30	30	(4) actually exercises substantial influence over the
31	31	policies and actions of a gas utility in conjunction with one or
32	32	more persons with whom the person is related by ownership or blood
33	33	relationship, or by action in concert, that together they are
34	34	affiliated with the gas utility within the meaning of this section
35	35	even though neither person may qualify as an affiliate
36	36	individually.
37	37	SECTION 3. Section 101.006, Utilities Code, is amended to
38	38	read as follows:
39	39	Sec. 101.006. JURISDICTION OVER [CUMULATIVE EFFECT;
40	40	APPLICATION TO] GAS UTILITIES. (a) The jurisdiction of the
41	41	commission under this subtitle does not affect [This subtitle is
42	42	cumulative of laws existing on September 1, 1983, relating to] the
43	43	jurisdiction[,] or power[, or authority] of the Railroad Commission
44	44	of Texas [railroad commission] over a gas utility granted under
45	45	other law[, and, except as specifically in conflict with this
46	46	subtitle, that jurisdiction, power, and authority are not limited
47	47	by this subtitle].
48	48	(b) This subtitle applies to all gas utilities, including a
49	49	gas utility that is under the jurisdiction, power, or authority of
50	50	the [railroad] commission in accordance with a law other than this
51	51	subtitle.
52	52	SECTION 4. Sections 101.052(a) and (c), Utilities Code, are
53	53	amended to read as follows:
54	54	(a) The office:
55	55	(1) may appear or intervene as a party or otherwise
56	56	represent residential consumers, as a class, in appeals to the
57	57	[railroad] commission only at the written request of an affected
58	58	municipality's governing body;
59	59	(2) may initiate or intervene as a matter of right or
60	60	otherwise appear in a judicial proceeding that involves an action
61	61	taken by the [railroad] commission in a proceeding in which the
62	62	office was a party;
63	63	(3) is entitled to the same access as a party, other
64	64	than [railroad] commission staff, to records gathered by the
65	65	[railroad] commission under Section 102.203;
66	66	(4) is entitled to discovery of any nonprivileged
67	67	matter that is relevant to the subject matter of a proceeding or
68	68	petition before the [railroad] commission;
69	69	(5) may represent an individual residential consumer
70	70	with respect to the consumer's disputed complaint concerning
71	71	utility services that is unresolved before the [railroad]
72	72	commission; and
73	73	(6) may recommend legislation to the legislature that
74	74	the office determines would positively affect the interests of
75	75	residential consumers.
76	76	(c) This section does not limit the authority of the
77	77	[railroad] commission to represent residential consumers.
78	78	SECTION 5. Chapter 101, Utilities Code, is amended by
79	79	adding Subchapter C to read as follows:
80	80	SUBCHAPTER C. MEMORANDUM OF UNDERSTANDING WITH
81	81	RAILROAD COMMISSION
82	82	Sec. 101.071. MEMORANDUM OF UNDERSTANDING. The Railroad
83	83	Commission of Texas and the commission shall enter into a
84	84	memorandum of understanding that establishes the duties of each
85	85	agency in administering this subtitle, Subtitle B, and other laws
86	86	governing gas utilities.
87	87	SECTION 6. The heading to Chapter 102, Utilities Code, is
88	88	amended to read as follows:
89	89	CHAPTER 102. JURISDICTION AND POWERS OF [RAILROAD] COMMISSION AND
90	90	OTHER REGULATORY AUTHORITIES
91	91	SECTION 7. The heading to Subchapter A, Chapter 102,
92	92	Utilities Code, is amended to read as follows:
93	93	SUBCHAPTER A. GENERAL POWERS OF [RAILROAD] COMMISSION
94	94	SECTION 8. Section 102.001, Utilities Code, is amended to
95	95	read as follows:
96	96	Sec. 102.001. [RAILROAD] COMMISSION JURISDICTION. (a) The
97	97	[railroad] commission has exclusive original jurisdiction over the
98	98	rates and services of a gas utility:
99	99	(1) that distributes natural gas or synthetic natural
100	100	gas in:
101	101	(A) areas outside a municipality; and
102	102	(B) areas inside a municipality that surrenders
103	103	its jurisdiction to the [railroad] commission under Section
104	104	103.003; and
105	105	(2) that transmits, transports, delivers, or sells
106	106	natural gas or synthetic natural gas to a gas utility that
107	107	distributes the gas to the public.
108	108	(b) The [railroad] commission has exclusive appellate
109	109	jurisdiction to review an order or ordinance of a municipality
110	110	exercising exclusive original jurisdiction as provided by this
111	111	subtitle.
112	112	SECTION 9. Section 102.002, Utilities Code, is amended to
113	113	read as follows:
114	114	Sec. 102.002. LIMITATION ON [RAILROAD] COMMISSION
115	115	JURISDICTION. Except as otherwise provided by this subtitle, this
116	116	subtitle does not authorize the [railroad] commission to:
117	117	(1) regulate or supervise a rate or service of a
118	118	municipally owned utility; or
119	119	(2) affect the jurisdiction, power, or duty of a
120	120	municipality that has elected to regulate and supervise a gas
121	121	utility in the municipality.
122	122	SECTION 10. Section 102.003, Utilities Code, is amended to
123	123	read as follows:
124	124	Sec. 102.003. [RAILROAD] COMMISSION POWERS RELATING TO
125	125	REPORTS. The [railroad] commission may:
126	126	(1) require a gas utility to report to the [railroad]
127	127	commission information relating to the gas utility and an affiliate
128	128	inside or outside this state as useful in administering this
129	129	subtitle;
130	130	(2) establish the form for a report;
131	131	(3) determine the time for a report and the frequency
132	132	with which the report is to be made;
133	133	(4) require that a report be made under oath;
134	134	(5) require the filing with the [railroad] commission
135	135	of a copy of:
136	136	(A) a contract or arrangement between a gas
137	137	utility and an affiliate;
138	138	(B) a report filed with a federal agency or a
139	139	governmental agency or body of another state; and
140	140	(C) an annual report that shows each payment of
141	141	compensation, other than salary or wages subject to federal income
142	142	tax withholding:
143	143	(i) to residents of this state;
144	144	(ii) with respect to legal, administrative,
145	145	or legislative matters in this state; or
146	146	(iii) for representation before the
147	147	legislature of this state or any governmental agency or body; and
148	148	(6) require that a contract or arrangement described
149	149	by Subdivision (5)(A) that is not in writing be reduced to writing
150	150	and filed with the [railroad] commission.
151	151	SECTION 11. Section 102.004, Utilities Code, is amended to
152	152	read as follows:
153	153	Sec. 102.004. REPORT OF SUBSTANTIAL INTEREST. The
154	154	[railroad] commission may require disclosure of the identity and
155	155	respective interests of each owner of at least one percent of the
156	156	voting securities of a gas utility or its affiliate.
157	157	SECTION 12. Section 102.005, Utilities Code, is amended to
158	158	read as follows:
159	159	Sec. 102.005. ASSISTANCE TO MUNICIPALITY. On request of a
160	160	municipality, the [railroad] commission may advise and assist the
161	161	municipality with respect to a question or proceeding arising under
162	162	this subtitle. Assistance provided by the [railroad] commission
163	163	may include aid to a municipality on a matter pending before the
164	164	[railroad] commission, a court, or the municipality's governing
165	165	body, such as making a staff member available as a witness or
166	166	otherwise providing evidence.
167	167	SECTION 13. Section 102.006, Utilities Code, is amended to
168	168	read as follows:
169	169	Sec. 102.006. ADMINISTRATIVE HEARINGS IN CONTESTED CASES.
170	170	(a) The [railroad] commission by rule shall provide for
171	171	administrative hearings in contested cases to be conducted by one
172	172	or more members of the [railroad] commission[, by railroad
173	173	commission hearings examiners,] or by the utility division of the
174	174	State Office of Administrative Hearings. The rules must provide
175	175	for [a railroad commission hearings examiner or] the utility
176	176	division of the State Office of Administrative Hearings to conduct
177	177	each hearing in a contested case that is not conducted by one or
178	178	more members of the [railroad] commission. A hearing must be
179	179	conducted in accordance with the rules and procedures adopted by
180	180	the [railroad] commission.
181	181	(b) The [railroad] commission may delegate to [a railroad
182	182	commission hearings examiner or to] the utility division of the
183	183	State Office of Administrative Hearings the authority to make a
184	184	final decision and to issue findings of fact, conclusions of law,
185	185	and other necessary orders in a proceeding in which there is not a
186	186	contested issue of fact or law.
187	187	(c) The [railroad] commission by rule shall define the
188	188	procedures by which it delegates final decision-making authority
189	189	under Subsection (b) [to a railroad commission hearings examiner or
190	190	to the utility division of the State Office of Administrative
191	191	Hearings].
192	192	(d) For purposes of judicial review, the final decision of
193	193	[a railroad commission hearings examiner or] an administrative law
194	194	judge of the State Office of Administrative Hearings in a matter
195	195	delegated under Subsection (b) has the same effect as a final
196	196	decision of the [railroad] commission unless a member of the
197	197	commission requests formal review of the decision.
198	198	(e) The State Office of Administrative Hearings shall
199	199	charge the [railroad] commission a fixed annual rate for hearings
200	200	conducted by the office under this section only if the legislature
201	201	appropriates money for that purpose. If the legislature does not
202	202	appropriate money for the payment of a fixed annual rate under this
203	203	section, the State Office of Administrative Hearings shall charge
204	204	the [railroad] commission an hourly rate of not more than $90 per
205	205	hour for hearings conducted by the office under this section.
206	206	SECTION 14. Section 102.051, Utilities Code, is amended to
207	207	read as follows:
208	208	Sec. 102.051. REPORT OF CERTAIN TRANSACTIONS; [RAILROAD]
209	209	COMMISSION CONSIDERATION. (a) Not later than the 60th day after
210	210	the date the transaction takes effect, a gas utility shall report to
211	211	the [railroad] commission:
212	212	(1) a sale, acquisition, or lease of a plant as an
213	213	operating unit or system in this state for a total consideration of
214	214	more than $1 million; or
215	215	(2) a merger or consolidation with another gas utility
216	216	operating in this state.
217	217	(b) On the filing of a report with the [railroad]
218	218	commission, the [railroad] commission shall investigate the
219	219	transaction described by Subsection (a), with or without a public
220	220	hearing, to determine whether the action is consistent with the
221	221	public interest. In reaching its determination, the [railroad]
222	222	commission shall consider the reasonable value of the property,
223	223	facilities, or securities to be acquired, disposed of, merged, or
224	224	consolidated.
225	225	(c) If the [railroad] commission finds that a transaction is
226	226	not in the public interest, the [railroad] commission shall take
227	227	the effect of the transaction into consideration in ratemaking
228	228	proceedings and disallow the effect of the transaction if the
229	229	transaction will unreasonably affect rates or service.
230	230	(d) This section does not apply to:
231	231	(1) the purchase of a unit of property for
232	232	replacement; or
233	233	(2) an addition to the facilities of a gas utility by
234	234	construction.
235	235	SECTION 15. Section 102.052, Utilities Code, is amended to
236	236	read as follows:
237	237	Sec. 102.052. REPORT OF PURCHASE OF VOTING STOCK IN GAS
238	238	UTILITY. A gas utility may not purchase voting stock in another gas
239	239	utility doing business in this state unless the utility reports the
240	240	purchase to the [railroad] commission.
241	241	SECTION 16. Section 102.053, Utilities Code, is amended to
242	242	read as follows:
243	243	Sec. 102.053. REPORT OF LOAN TO STOCKHOLDERS. A gas utility
244	244	may not loan money, stocks, bonds, notes, or other evidence of
245	245	indebtedness to a person who directly or indirectly owns or holds
246	246	any stock of the gas utility unless the gas utility reports the
247	247	transaction to the [railroad] commission within a reasonable time.
248	248	SECTION 17. Sections 102.101(a), (b), (c), and (d),
249	249	Utilities Code, are amended to read as follows:
250	250	(a) Each gas utility shall keep and provide to the
251	251	regulatory authority, in the manner and form prescribed by the
252	252	[railroad] commission, uniform accounts of all business transacted
253	253	by the gas utility.
254	254	(b) The [railroad] commission may prescribe the form of
255	255	books, accounts, records, and memoranda to be kept by a gas utility,
256	256	including:
257	257	(1) the books, accounts, records, and memoranda of:
258	258	(A) the provision of and capacity for service;
259	259	and
260	260	(B) the receipt and expenditure of money; and
261	261	(2) any other form, record, and memorandum that the
262	262	[railroad] commission considers necessary to carry out this
263	263	subtitle.
264	264	(c) For a gas utility subject to regulation by a federal
265	265	regulatory agency, compliance with the system of accounts
266	266	prescribed for the particular class of utilities by the federal
267	267	agency may be considered sufficient compliance with the system
268	268	prescribed by the [railroad] commission. The [railroad] commission
269	269	may prescribe the form of books, accounts, records, and memoranda
270	270	covering information in addition to that required by the federal
271	271	agency. The system of accounts and the form of books, accounts,
272	272	records, and memoranda prescribed by the [railroad] commission for
273	273	a gas utility or class of utilities may not be inconsistent with the
274	274	systems and forms established by a federal agency for that gas
275	275	utility or class of utilities.
276	276	(d) Each gas utility shall:
277	277	(1) keep and provide its books, accounts, records, and
278	278	memoranda accurately and faithfully in the manner and form
279	279	prescribed by the [railroad] commission; and
280	280	(2) comply with the directions of the regulatory
281	281	authority relating to the books, accounts, records, and memoranda.
282	282	SECTION 18. Section 102.102, Utilities Code, is amended to
283	283	read as follows:
284	284	Sec. 102.102. MAINTENANCE OF OFFICE AND RECORDS IN THIS
285	285	STATE. (a) Each gas utility shall maintain an office in this state
286	286	in a county in which some part of the utility's property is located.
287	287	The gas utility shall keep in this office all books, accounts,
288	288	records, and memoranda required by the [railroad] commission to be
289	289	kept in this state.
290	290	(b) A book, account, record, or memorandum required by the
291	291	regulatory authority to be kept in this state may not be removed
292	292	from this state except as prescribed by the [railroad] commission.
293	293	SECTION 19. Section 102.104, Utilities Code, is amended to
294	294	read as follows:
295	295	Sec. 102.104. JURISDICTION OVER AFFILIATE. The [railroad]
296	296	commission has jurisdiction over an affiliate that has a
297	297	transaction with a gas utility under the [railroad] commission's
298	298	jurisdiction to the extent of access to an account or a record of
299	299	the affiliate relating to the transaction, including an account or
300	300	a record of joint or general expenses, any portion of which may be
301	301	applicable to the transaction.
302	302	SECTION 20. Section 102.152, Utilities Code, is amended to
303	303	read as follows:
304	304	Sec. 102.152. DEPRECIATION ACCOUNT. The [railroad]
305	305	commission shall require each gas utility or municipally owned
306	306	utility to carry a proper and adequate depreciation account in
307	307	accordance with:
308	308	(1) the rates and methods prescribed by the [railroad]
309	309	commission under Section 104.054; and
310	310	(2) any other rule the [railroad] commission adopts.
311	311	SECTION 21. Section 102.206(a), Utilities Code, is amended
312	312	to read as follows:
313	313	(a) A regulatory authority may require, by order or subpoena
314	314	served on a gas utility, the production, at the time and place in
315	315	this state that the regulatory authority designates, of any books,
316	316	accounts, papers, or records kept by that gas utility outside this
317	317	state or, if ordered by the [railroad] commission, verified copies
318	318	of the books, accounts, papers, or records.
319	319	SECTION 22. Section 103.001, Utilities Code, is amended to
320	320	read as follows:
321	321	Sec. 103.001. MUNICIPAL JURISDICTION. To provide fair,
322	322	just, and reasonable rates and adequate and efficient services, the
323	323	governing body of a municipality has exclusive original
324	324	jurisdiction over the rates, operations, and services of a gas
325	325	utility within the municipality, subject to the limitations imposed
326	326	by this subtitle, unless the municipality surrenders its
327	327	jurisdiction to the [railroad] commission under Section 103.003.
328	328	SECTION 23. Section 103.002(c), Utilities Code, is amended
329	329	to read as follows:
330	330	(c) A franchise agreement may not limit or interfere with a
331	331	power conferred on the [railroad] commission by this subtitle.
332	332	SECTION 24. Section 103.003, Utilities Code, is amended to
333	333	read as follows:
334	334	Sec. 103.003. SURRENDER OF MUNICIPAL JURISDICTION TO
335	335	[RAILROAD] COMMISSION; REINSTATEMENT OF JURISDICTION. (a) A
336	336	municipality may elect to have the [railroad] commission exercise
337	337	exclusive original jurisdiction over gas utility rates,
338	338	operations, and services in the municipality by ordinance or by
339	339	submitting the question of the surrender of its jurisdiction to the
340	340	voters at a municipal election.
341	341	(b) The governing body of a municipality shall submit at a
342	342	municipal election the question of surrendering its jurisdiction to
343	343	the [railroad] commission if the governing body receives a petition
344	344	signed by a number of qualified voters of the municipality equal to
345	345	at least the lesser of 20,000 or 10 percent of the number of voters
346	346	voting in the last preceding general election in the municipality.
347	347	(c) A municipality may not elect to surrender its
348	348	jurisdiction while a case involving the municipality is pending.
349	349	(d) A municipality that surrenders its jurisdiction to the
350	350	[railroad] commission may reinstate its jurisdiction. The
351	351	provisions of this section governing the surrender of jurisdiction
352	352	apply to the reinstatement of jurisdiction.
353	353	SECTION 25. Section 103.023, Utilities Code, is amended to
354	354	read as follows:
355	355	Sec. 103.023. MUNICIPAL STANDING. (a) A municipality has
356	356	standing in each case before the [railroad] commission that relates
357	357	to a gas utility's rates and services in the municipality.
358	358	(b) A municipality's standing is subject to the right of the
359	359	[railroad] commission to consolidate that municipality with
360	360	another party on an issue of common interest.
361	361	SECTION 26. Section 103.024, Utilities Code, is amended to
362	362	read as follows:
363	363	Sec. 103.024. JUDICIAL REVIEW. A municipality is entitled
364	364	to judicial review of a [railroad] commission order relating to a
365	365	gas utility's rates and services in a municipality as provided by
366	366	Section 105.001.
367	367	SECTION 27. Section 103.051, Utilities Code, is amended to
368	368	read as follows:
369	369	Sec. 103.051. APPEAL BY PARTY. A party to a rate proceeding
370	370	before a municipality's governing body may appeal the governing
371	371	body's decision to the [railroad] commission.
372	372	SECTION 28. Section 103.052, Utilities Code, is amended to
373	373	read as follows:
374	374	Sec. 103.052. APPEAL BY RESIDENTS. The residents of a
375	375	municipality may appeal to the [railroad] commission the decision
376	376	of the municipality's governing body in a rate proceeding by filing
377	377	with the [railroad] commission a petition for review signed by a
378	378	number of qualified voters of the municipality equal to at least the
379	379	lesser of 20,000 or 10 percent of the qualified voters of the
380	380	municipality.
381	381	SECTION 29. Section 103.053(a), Utilities Code, is amended
382	382	to read as follows:
383	383	(a) The ratepayers of a municipally owned utility who are
384	384	outside the municipality may appeal to the [railroad] commission an
385	385	action of the municipality's governing body affecting the
386	386	municipally owned utility's rates by filing with the [railroad]
387	387	commission a petition for review signed by a number of ratepayers
388	388	served by the utility outside the municipality equal to at least the
389	389	lesser of 10,000 or five percent of those ratepayers.
390	390	SECTION 30. Section 103.054(a), Utilities Code, is amended
391	391	to read as follows:
392	392	(a) An appeal under this subchapter is initiated by filing a
393	393	petition for review with the [railroad] commission and serving a
394	394	copy of the petition on each party to the original rate proceeding.
395	395	SECTION 31. Sections 103.055(b) and (c), Utilities Code,
396	396	are amended to read as follows:
397	397	(b) The [railroad] commission shall enter a final order
398	398	establishing the rates the [railroad] commission determines the
399	399	municipality should have set in the ordinance to which the appeal
400	400	applies.
401	401	(c) If the [railroad] commission fails to enter a final
402	402	order within 185 days after the date the appeal is perfected, the
403	403	rates proposed by the gas utility are considered to be approved by
404	404	the [railroad] commission and take effect on the expiration of the
405	405	185-day period.
406	406	SECTION 32. Section 103.056, Utilities Code, is amended to
407	407	read as follows:
408	408	Sec. 103.056. APPLICABILITY OF RATES. Temporary or
409	409	permanent rates set by the [railroad] commission are prospective
410	410	and observed from the date of the applicable [railroad] commission
411	411	order, except an interim rate order necessary to provide a gas
412	412	utility the opportunity to avoid confiscation during the period
413	413	beginning on the date a petition for review is filed with the
414	414	[railroad] commission and ending on the date of a final order
415	415	establishing rates.
416	416	SECTION 33. Section 104.001(a), Utilities Code, is amended
417	417	to read as follows:
418	418	(a) The [railroad] commission is vested with all the
419	419	authority and power of this state to ensure compliance with the
420	420	obligations of gas utilities in this subtitle.
421	421	SECTION 34. Sections 104.003(a) and (c), Utilities Code,
422	422	are amended to read as follows:
423	423	(a) The regulatory authority shall ensure that each rate a
424	424	gas utility or two or more gas utilities jointly make, demand, or
425	425	receive is just and reasonable. A rate may not be unreasonably
426	426	preferential, prejudicial, or discriminatory but must be
427	427	sufficient, equitable, and consistent in application to each class
428	428	of consumer. In establishing a gas utility's rates, the [railroad]
429	429	commission may treat as a single class two or more municipalities
430	430	that a gas utility serves if the commission considers that
431	431	treatment to be appropriate.
432	432	(c) Subsection (b) does not apply:
433	433	(1) if a complaint is filed with the [railroad]
434	434	commission by a transmission pipeline purchaser of gas sold or
435	435	transported under the pipeline-to-pipeline or transportation rate;
436	436	or
437	437	(2) to a direct sale for resale to a gas distribution
438	438	utility at a city gate.
439	439	SECTION 35. Section 104.005(c), Utilities Code, is amended
440	440	to read as follows:
441	441	(c) After notice and hearing, the [railroad] commission
442	442	may, in the public interest, order a gas utility to refund with
443	443	interest compensation received in violation of this section.
444	444	SECTION 36. Section 104.006, Utilities Code, is amended to
445	445	read as follows:
446	446	Sec. 104.006. RATES FOR AREA NOT IN MUNICIPALITY. Without
447	447	the approval of the [railroad] commission, a gas utility's rates
448	448	for an area not in a municipality may not exceed 115 percent of the
449	449	average of all rates for similar services for all municipalities
450	450	served by the same utility in the same county as that area.
451	451	SECTION 37. Section 104.054(a), Utilities Code, is amended
452	452	to read as follows:
453	453	(a) The [railroad] commission shall establish proper and
454	454	adequate rates and methods of depreciation, amortization, or
455	455	depletion for each class of property of a gas utility or municipally
456	456	owned utility.
457	457	SECTION 38. Section 104.107(a), Utilities Code, is amended
458	458	to read as follows:
459	459	(a) Pending the hearing and a decision:
460	460	(1) the local regulatory authority, after delivering
461	461	to the gas utility a written statement of the regulatory
462	462	authority's reasons, may suspend the operation of the schedule for
463	463	not longer than 90 days after the date the schedule would otherwise
464	464	be effective; and
465	465	(2) the [railroad] commission may suspend the
466	466	operation of the schedule for not longer than 150 days after the
467	467	date the schedule would otherwise be effective.
468	468	SECTION 39. Section 104.201, Utilities Code, is amended to
469	469	read as follows:
470	470	Sec. 104.201. TRANSPORTATION RATES BETWEEN GAS UTILITY OR
471	471	MUNICIPALLY OWNED UTILITY AND STATE AGENCY. (a) Notwithstanding
472	472	Section 104.003(b), absent a contract for transportation service
473	473	between a state agency and a gas utility or municipally owned
474	474	utility, the [railroad] commission, not later than the 210th day
475	475	after the date either party files a request to set a transportation
476	476	rate, shall establish the transportation rate for the state agency.
477	477	The commission has exclusive original jurisdiction to establish a
478	478	transportation rate for a state agency under this section.
479	479	(b) The [railroad] commission shall base its determination
480	480	of the transportation rate under Subsection (a) on the cost of
481	481	providing the transportation service for both the distribution
482	482	system and the transmission system, as applicable, of the gas
483	483	utility or municipally owned utility.
484	484	(c) The [railroad] commission may order temporary rates
485	485	under Subsection (a) as provided for under the commission's
486	486	appellate jurisdiction.
487	487	SECTION 40. Section 104.2545(c), Utilities Code, is amended
488	488	to read as follows:
489	489	(c) A utility shall provide a service described by
490	490	Subsection (b) at rates provided by a written contract negotiated
491	491	between the utility and the state or a state agency. If the utility
492	492	and the state or state agency are not able to agree to a contract
493	493	rate, a fair and reasonable rate may be determined for the public
494	494	retail customer, as a rate for a separate class of service, by the
495	495	[railroad] commission or, for municipally owned gas utilities, by
496	496	the relevant regulatory body under this chapter.
497	497	SECTION 41. Section 104.255(b), Utilities Code, is amended
498	498	to read as follows:
499	499	(b) The [railroad] commission shall adopt rules concerning
500	500	payment of bills by the state or a state agency to a gas utility or
501	501	municipally owned utility. The rules must be consistent with
502	502	Chapter 2251, Government Code.
503	503	SECTION 42. Section 104.301(j), Utilities Code, is amended
504	504	to read as follows:
505	505	(j) A gas utility implementing a tariff or rate schedule
506	506	under this section shall reimburse the [railroad] commission the
507	507	utility's proportionate share of the [railroad] commission's costs
508	508	related to the administration of the interim rate adjustment
509	509	mechanism provided by this section.
510	510	SECTION 43. Section 105.001(a), Utilities Code, is amended
511	511	to read as follows:
512	512	(a) Any party to a proceeding before the [railroad]
513	513	commission is entitled to judicial review under the substantial
514	514	evidence rule.
515	515	SECTION 44. Section 105.021(a), Utilities Code, is amended
516	516	to read as follows:
517	517	(a) The attorney general, on the request of the [railroad]
518	518	commission, shall apply in the name of the commission for an order
519	519	under Subsection (b) if the commission determines that a gas
520	520	utility or other person is:
521	521	(1) engaging in or about to engage in an act that
522	522	violates this subtitle or an order or rule of the commission entered
523	523	or adopted under this subtitle; or
524	524	(2) failing to comply with the requirements of this
525	525	subtitle or a rule or order of the commission.
526	526	SECTION 45. Section 105.022, Utilities Code, is amended to
527	527	read as follows:
528	528	Sec. 105.022. CONTEMPT. The [railroad] commission may file
529	529	an action for contempt against a person who:
530	530	(1) fails to comply with a lawful order of the
531	531	commission;
532	532	(2) fails to comply with a subpoena or subpoena duces
533	533	tecum; or
534	534	(3) refuses to testify about a matter on which the
535	535	person may be lawfully interrogated.
536	536	SECTION 46. Sections 105.023(a) and (d), Utilities Code,
537	537	are amended to read as follows:
538	538	(a) A gas utility or affiliate is subject to a civil penalty
539	539	if the gas utility or affiliate knowingly violates this subtitle,
540	540	fails to perform a duty imposed on it, or fails, neglects, or
541	541	refuses to obey an order, rule, direction, or requirement of the
542	542	[railroad] commission or a decree or judgment of a court.
543	543	(d) The attorney general shall file in the name of the
544	544	[railroad] commission a suit on the attorney general's own
545	545	initiative or at the request of the commission to recover the civil
546	546	penalty under this section.
547	547	SECTION 47. Section 105.027, Utilities Code, is amended to
548	548	read as follows:
549	549	Sec. 105.027. DISPOSITION OF FINES AND PENALTIES. A fine or
550	550	penalty collected under this subtitle, other than a fine or penalty
551	551	collected in a criminal proceeding, shall be paid to the [railroad]
552	552	commission.
553	553	SECTION 48. Section 124.002(a), Utilities Code, is amended
554	554	to read as follows:
555	555	(a) The Public Utility Commission of Texas [railroad
556	556	commission] shall adopt rules under which an owner, operator, or
557	557	manager of a mobile home park or apartment house may purchase
558	558	natural gas through a master meter for delivery to a dwelling unit
559	559	in the mobile home park or apartment house using individual
560	560	submeters to allocate fairly the cost of the gas consumption of each
561	561	dwelling unit.
562	562	SECTION 49. Sections 141.001(3) and (5), Utilities Code,
563	563	are amended to read as follows:
564	564	(3) "Commission" means the Public Utility [Railroad]
565	565	Commission of Texas or its successor agency.
566	566	(5) "Distribution system retailer":
567	567	(A) means a retail propane dealer that:
568	568	(i) owns or operates for compensation in
569	569	this state a propane gas system; and
570	570	(ii) has a Category E or K license issued by
571	571	the applicable license and permit section of the Railroad
572	572	Commission of Texas [commission]; and
573	573	(B) does not include a person that furnishes
574	574	propane gas only to the person, to the person's employees, or to the
575	575	person's tenants as an incident of employment or tenancy, if the
576	576	service is not resold to customers.
577	577	SECTION 50. Chapter 141, Utilities Code, is amended by
578	578	adding Section 141.011 to read as follows:
579	579	Sec. 141.011. MEMORANDUM OF UNDERSTANDING. The commission
580	580	may enter into a memorandum of understanding with the Railroad
581	581	Commission of Texas as necessary to administer and enforce this
582	582	chapter.
583	583	SECTION 51. (a) On September 1, 2016, the following are
584	584	transferred from the Railroad Commission of Texas to the Public
585	585	Utility Commission of Texas:
586	586	(1) the powers, duties, functions, programs, and
587	587	activities of the Railroad Commission of Texas relating to the
588	588	rates and services of gas utilities under Subtitle A, Title 3,
589	589	Utilities Code, the rates and services of propane distribution
590	590	system retailers under Subtitle C, Title 3, Utilities Code, and
591	591	submetering under Chapter 124, Utilities Code, as provided by this
592	592	Act;
593	593	(2) any obligations and contracts of the Railroad
594	594	Commission of Texas that are directly related to implementing a
595	595	power, duty, function, program, or activity transferred under this
596	596	Act; and
597	597	(3) all property and records in the custody of the
598	598	Railroad Commission of Texas that are related to a power, duty,
599	599	function, program, or activity transferred under this Act and all
600	600	funds appropriated by the legislature for that power, duty,
601	601	function, program, or activity.
602	602	(b) The Railroad Commission of Texas shall continue to carry
603	603	out the railroad commission's duties related to the rates and
604	604	services of gas utilities under Subtitle A, Title 3, Utilities
605	605	Code, the rates and services of propane distribution system
606	606	retailers under Subtitle C, Title 3, Utilities Code, and
607	607	submetering under Chapter 124, Utilities Code, as those laws
608	608	existed immediately before the effective date of this Act until
609	609	September 1, 2016, and the former law is continued in effect for
610	610	that purpose.
611	611	(c) The Railroad Commission of Texas and the Public Utility
612	612	Commission of Texas shall enter into a memorandum of understanding
613	613	that:
614	614	(1) identifies in detail the applicable powers and
615	615	duties that are transferred by this Act;
616	616	(2) establishes a plan for the identification and
617	617	transfer of the records, personnel, property, and unspent
618	618	appropriations of the Railroad Commission of Texas that are used
619	619	for purposes of the railroad commission's powers and duties
620	620	directly related to the rates and services of gas utilities under
621	621	Subtitle A, Title 3, Utilities Code, the rates and services of
622	622	propane distribution system retailers under Subtitle C, Title 3,
623	623	Utilities Code, and submetering under Chapter 124, Utilities Code,
624	624	as amended by this Act; and
625	625	(3) establishes a plan for the transfer of all pending
626	626	applications, hearings, rulemaking proceedings, and orders
627	627	relating to the rates and services of gas utilities under Subtitle
628	628	A, Title 3, Utilities Code, the rates and services of propane
629	629	distribution system retailers under Subtitle C, Title 3, Utilities
630	630	Code, and submetering under Chapter 124, Utilities Code, as amended
631	631	by this Act, from the Railroad Commission of Texas to the Public
632	632	Utility Commission of Texas.
633	633	(d) The memorandum of understanding under this section must
634	634	be completed by August 1, 2016.
635	635	(e) The executive directors of the Railroad Commission of
636	636	Texas and the Public Utility Commission of Texas may agree in the
637	637	memorandum of understanding under this section to transfer to the
638	638	Public Utility Commission of Texas any personnel of the Railroad
639	639	Commission of Texas whose functions predominantly involve powers,
640	640	duties, obligations, functions, and activities related to the rates
641	641	and services of gas utilities under Subtitle A, Title 3, Utilities
642	642	Code, the rates and services of propane distribution system
643	643	retailers under Subtitle C, Title 3, Utilities Code, and
644	644	submetering under Chapter 124, Utilities Code, as amended by this
645	645	Act.
646	646	(f) A rule, form, policy, procedure, or decision of the
647	647	Railroad Commission of Texas related to a power, duty, function,
648	648	program, or activity transferred under this Act continues in effect
649	649	as a rule, form, policy, procedure, or decision of the Public
650	650	Utility Commission of Texas and remains in effect until amended or
651	651	replaced by that agency. Notwithstanding any other law, beginning
652	652	September 1, 2015, the Public Utility Commission of Texas may
653	653	propose rules, forms, policies, and procedures related to a
654	654	function to be transferred to the Public Utility Commission of
655	655	Texas under this Act.
656	656	SECTION 52. This Act takes effect September 1, 2015.