84R4369 JXC-D
By: Keffer H.B. No. 2256
A BILL TO BE ENTITLED
AN ACT
relating to the transfer of functions relating to the rates and
services of certain gas utilities, propane distribution system
retailers, and submetering from the Railroad Commission of Texas to
the Public Utility Commission of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 101.003, Utilities Code, is amended by
adding Subdivision (3-a) and amending Subdivision (13) to read as
follows:
(3-a) "Commission" means the Public Utility Commission
of Texas.
(13) "Regulatory authority" means either the
[railroad] commission or the governing body of a municipality, in
accordance with the context.
SECTION 2. Section 101.004(a), Utilities Code, is amended
to read as follows:
(a) The [railroad] commission may determine that a person is
an affiliate for purposes of this subtitle if the [railroad]
commission after notice and hearing finds that the person:
(1) actually exercises substantial influence or
control over the policies and actions of a gas utility;
(2) is a person over which a gas utility exercises the
control described by Subdivision (1);
(3) is under common control with a gas utility; or
(4) actually exercises substantial influence over the
policies and actions of a gas utility in conjunction with one or
more persons with whom the person is related by ownership or blood
relationship, or by action in concert, that together they are
affiliated with the gas utility within the meaning of this section
even though neither person may qualify as an affiliate
individually.
SECTION 3. Section 101.006, Utilities Code, is amended to
read as follows:
Sec. 101.006. JURISDICTION OVER [CUMULATIVE EFFECT;
APPLICATION TO] GAS UTILITIES. (a) The jurisdiction of the
commission under this subtitle does not affect [This subtitle is
cumulative of laws existing on September 1, 1983, relating to] the
jurisdiction[,] or power[, or authority] of the Railroad Commission
of Texas [railroad commission] over a gas utility granted under
other law[, and, except as specifically in conflict with this
subtitle, that jurisdiction, power, and authority are not limited
by this subtitle].
(b) This subtitle applies to all gas utilities, including a
gas utility that is under the jurisdiction, power, or authority of
the [railroad] commission in accordance with a law other than this
subtitle.
SECTION 4. Sections 101.052(a) and (c), Utilities Code, are
amended to read as follows:
(a) The office:
(1) may appear or intervene as a party or otherwise
represent residential consumers, as a class, in appeals to the
[railroad] commission only at the written request of an affected
municipality's governing body;
(2) may initiate or intervene as a matter of right or
otherwise appear in a judicial proceeding that involves an action
taken by the [railroad] commission in a proceeding in which the
office was a party;
(3) is entitled to the same access as a party, other
than [railroad] commission staff, to records gathered by the
[railroad] commission under Section 102.203;
(4) is entitled to discovery of any nonprivileged
matter that is relevant to the subject matter of a proceeding or
petition before the [railroad] commission;
(5) may represent an individual residential consumer
with respect to the consumer's disputed complaint concerning
utility services that is unresolved before the [railroad]
commission; and
(6) may recommend legislation to the legislature that
the office determines would positively affect the interests of
residential consumers.
(c) This section does not limit the authority of the
[railroad] commission to represent residential consumers.
SECTION 5. Chapter 101, Utilities Code, is amended by
adding Subchapter C to read as follows:
SUBCHAPTER C. MEMORANDUM OF UNDERSTANDING WITH
RAILROAD COMMISSION
Sec. 101.071. MEMORANDUM OF UNDERSTANDING. The Railroad
Commission of Texas and the commission shall enter into a
memorandum of understanding that establishes the duties of each
agency in administering this subtitle, Subtitle B, and other laws
governing gas utilities.
SECTION 6. The heading to Chapter 102, Utilities Code, is
amended to read as follows:
CHAPTER 102. JURISDICTION AND POWERS OF [RAILROAD] COMMISSION AND
OTHER REGULATORY AUTHORITIES
SECTION 7. The heading to Subchapter A, Chapter 102,
Utilities Code, is amended to read as follows:
SUBCHAPTER A. GENERAL POWERS OF [RAILROAD] COMMISSION
SECTION 8. Section 102.001, Utilities Code, is amended to
read as follows:
Sec. 102.001. [RAILROAD] COMMISSION JURISDICTION. (a) The
[railroad] commission has exclusive original jurisdiction over the
rates and services of a gas utility:
(1) that distributes natural gas or synthetic natural
gas in:
(A) areas outside a municipality; and
(B) areas inside a municipality that surrenders
its jurisdiction to the [railroad] commission under Section
103.003; and
(2) that transmits, transports, delivers, or sells
natural gas or synthetic natural gas to a gas utility that
distributes the gas to the public.
(b) The [railroad] commission has exclusive appellate
jurisdiction to review an order or ordinance of a municipality
exercising exclusive original jurisdiction as provided by this
subtitle.
SECTION 9. Section 102.002, Utilities Code, is amended to
read as follows:
Sec. 102.002. LIMITATION ON [RAILROAD] COMMISSION
JURISDICTION. Except as otherwise provided by this subtitle, this
subtitle does not authorize the [railroad] commission to:
(1) regulate or supervise a rate or service of a
municipally owned utility; or
(2) affect the jurisdiction, power, or duty of a
municipality that has elected to regulate and supervise a gas
utility in the municipality.
SECTION 10. Section 102.003, Utilities Code, is amended to
read as follows:
Sec. 102.003. [RAILROAD] COMMISSION POWERS RELATING TO
REPORTS. The [railroad] commission may:
(1) require a gas utility to report to the [railroad]
commission information relating to the gas utility and an affiliate
inside or outside this state as useful in administering this
subtitle;
(2) establish the form for a report;
(3) determine the time for a report and the frequency
with which the report is to be made;
(4) require that a report be made under oath;
(5) require the filing with the [railroad] commission
of a copy of:
(A) a contract or arrangement between a gas
utility and an affiliate;
(B) a report filed with a federal agency or a
governmental agency or body of another state; and
(C) an annual report that shows each payment of
compensation, other than salary or wages subject to federal income
tax withholding:
(i) to residents of this state;
(ii) with respect to legal, administrative,
or legislative matters in this state; or
(iii) for representation before the
legislature of this state or any governmental agency or body; and
(6) require that a contract or arrangement described
by Subdivision (5)(A) that is not in writing be reduced to writing
and filed with the [railroad] commission.
SECTION 11. Section 102.004, Utilities Code, is amended to
read as follows:
Sec. 102.004. REPORT OF SUBSTANTIAL INTEREST. The
[railroad] commission may require disclosure of the identity and
respective interests of each owner of at least one percent of the
voting securities of a gas utility or its affiliate.
SECTION 12. Section 102.005, Utilities Code, is amended to
read as follows:
Sec. 102.005. ASSISTANCE TO MUNICIPALITY. On request of a
municipality, the [railroad] commission may advise and assist the
municipality with respect to a question or proceeding arising under
this subtitle. Assistance provided by the [railroad] commission
may include aid to a municipality on a matter pending before the
[railroad] commission, a court, or the municipality's governing
body, such as making a staff member available as a witness or
otherwise providing evidence.
SECTION 13. Section 102.006, Utilities Code, is amended to
read as follows:
Sec. 102.006. ADMINISTRATIVE HEARINGS IN CONTESTED CASES.
(a) The [railroad] commission by rule shall provide for
administrative hearings in contested cases to be conducted by one
or more members of the [railroad] commission[, by railroad
commission hearings examiners,] or by the utility division of the
State Office of Administrative Hearings. The rules must provide
for [a railroad commission hearings examiner or] the utility
division of the State Office of Administrative Hearings to conduct
each hearing in a contested case that is not conducted by one or
more members of the [railroad] commission. A hearing must be
conducted in accordance with the rules and procedures adopted by
the [railroad] commission.
(b) The [railroad] commission may delegate to [a railroad
commission hearings examiner or to] the utility division of the
State Office of Administrative Hearings the authority to make a
final decision and to issue findings of fact, conclusions of law,
and other necessary orders in a proceeding in which there is not a
contested issue of fact or law.
(c) The [railroad] commission by rule shall define the
procedures by which it delegates final decision-making authority
under Subsection (b) [to a railroad commission hearings examiner or
to the utility division of the State Office of Administrative
Hearings].
(d) For purposes of judicial review, the final decision of
[a railroad commission hearings examiner or] an administrative law
judge of the State Office of Administrative Hearings in a matter
delegated under Subsection (b) has the same effect as a final
decision of the [railroad] commission unless a member of the
commission requests formal review of the decision.
(e) The State Office of Administrative Hearings shall
charge the [railroad] commission a fixed annual rate for hearings
conducted by the office under this section only if the legislature
appropriates money for that purpose. If the legislature does not
appropriate money for the payment of a fixed annual rate under this
section, the State Office of Administrative Hearings shall charge
the [railroad] commission an hourly rate of not more than $90 per
hour for hearings conducted by the office under this section.
SECTION 14. Section 102.051, Utilities Code, is amended to
read as follows:
Sec. 102.051. REPORT OF CERTAIN TRANSACTIONS; [RAILROAD]
COMMISSION CONSIDERATION. (a) Not later than the 60th day after
the date the transaction takes effect, a gas utility shall report to
the [railroad] commission:
(1) a sale, acquisition, or lease of a plant as an
operating unit or system in this state for a total consideration of
more than $1 million; or
(2) a merger or consolidation with another gas utility
operating in this state.
(b) On the filing of a report with the [railroad]
commission, the [railroad] commission shall investigate the
transaction described by Subsection (a), with or without a public
hearing, to determine whether the action is consistent with the
public interest. In reaching its determination, the [railroad]
commission shall consider the reasonable value of the property,
facilities, or securities to be acquired, disposed of, merged, or
consolidated.
(c) If the [railroad] commission finds that a transaction is
not in the public interest, the [railroad] commission shall take
the effect of the transaction into consideration in ratemaking
proceedings and disallow the effect of the transaction if the
transaction will unreasonably affect rates or service.
(d) This section does not apply to:
(1) the purchase of a unit of property for
replacement; or
(2) an addition to the facilities of a gas utility by
construction.
SECTION 15. Section 102.052, Utilities Code, is amended to
read as follows:
Sec. 102.052. REPORT OF PURCHASE OF VOTING STOCK IN GAS
UTILITY. A gas utility may not purchase voting stock in another gas
utility doing business in this state unless the utility reports the
purchase to the [railroad] commission.
SECTION 16. Section 102.053, Utilities Code, is amended to
read as follows:
Sec. 102.053. REPORT OF LOAN TO STOCKHOLDERS. A gas utility
may not loan money, stocks, bonds, notes, or other evidence of
indebtedness to a person who directly or indirectly owns or holds
any stock of the gas utility unless the gas utility reports the
transaction to the [railroad] commission within a reasonable time.
SECTION 17. Sections 102.101(a), (b), (c), and (d),
Utilities Code, are amended to read as follows:
(a) Each gas utility shall keep and provide to the
regulatory authority, in the manner and form prescribed by the
[railroad] commission, uniform accounts of all business transacted
by the gas utility.
(b) The [railroad] commission may prescribe the form of
books, accounts, records, and memoranda to be kept by a gas utility,
including:
(1) the books, accounts, records, and memoranda of:
(A) the provision of and capacity for service;
and
(B) the receipt and expenditure of money; and
(2) any other form, record, and memorandum that the
[railroad] commission considers necessary to carry out this
subtitle.
(c) For a gas utility subject to regulation by a federal
regulatory agency, compliance with the system of accounts
prescribed for the particular class of utilities by the federal
agency may be considered sufficient compliance with the system
prescribed by the [railroad] commission. The [railroad] commission
may prescribe the form of books, accounts, records, and memoranda
covering information in addition to that required by the federal
agency. The system of accounts and the form of books, accounts,
records, and memoranda prescribed by the [railroad] commission for
a gas utility or class of utilities may not be inconsistent with the
systems and forms established by a federal agency for that gas
utility or class of utilities.
(d) Each gas utility shall:
(1) keep and provide its books, accounts, records, and
memoranda accurately and faithfully in the manner and form
prescribed by the [railroad] commission; and
(2) comply with the directions of the regulatory
authority relating to the books, accounts, records, and memoranda.
SECTION 18. Section 102.102, Utilities Code, is amended to
read as follows:
Sec. 102.102. MAINTENANCE OF OFFICE AND RECORDS IN THIS
STATE. (a) Each gas utility shall maintain an office in this state
in a county in which some part of the utility's property is located.
The gas utility shall keep in this office all books, accounts,
records, and memoranda required by the [railroad] commission to be
kept in this state.
(b) A book, account, record, or memorandum required by the
regulatory authority to be kept in this state may not be removed
from this state except as prescribed by the [railroad] commission.
SECTION 19. Section 102.104, Utilities Code, is amended to
read as follows:
Sec. 102.104. JURISDICTION OVER AFFILIATE. The [railroad]
commission has jurisdiction over an affiliate that has a
transaction with a gas utility under the [railroad] commission's
jurisdiction to the extent of access to an account or a record of
the affiliate relating to the transaction, including an account or
a record of joint or general expenses, any portion of which may be
applicable to the transaction.
SECTION 20. Section 102.152, Utilities Code, is amended to
read as follows:
Sec. 102.152. DEPRECIATION ACCOUNT. The [railroad]
commission shall require each gas utility or municipally owned
utility to carry a proper and adequate depreciation account in
accordance with:
(1) the rates and methods prescribed by the [railroad]
commission under Section 104.054; and
(2) any other rule the [railroad] commission adopts.
SECTION 21. Section 102.206(a), Utilities Code, is amended
to read as follows:
(a) A regulatory authority may require, by order or subpoena
served on a gas utility, the production, at the time and place in
this state that the regulatory authority designates, of any books,
accounts, papers, or records kept by that gas utility outside this
state or, if ordered by the [railroad] commission, verified copies
of the books, accounts, papers, or records.
SECTION 22. Section 103.001, Utilities Code, is amended to
read as follows:
Sec. 103.001. MUNICIPAL JURISDICTION. To provide fair,
just, and reasonable rates and adequate and efficient services, the
governing body of a municipality has exclusive original
jurisdiction over the rates, operations, and services of a gas
utility within the municipality, subject to the limitations imposed
by this subtitle, unless the municipality surrenders its
jurisdiction to the [railroad] commission under Section 103.003.
SECTION 23. Section 103.002(c), Utilities Code, is amended
to read as follows:
(c) A franchise agreement may not limit or interfere with a
power conferred on the [railroad] commission by this subtitle.
SECTION 24. Section 103.003, Utilities Code, is amended to
read as follows:
Sec. 103.003. SURRENDER OF MUNICIPAL JURISDICTION TO
[RAILROAD] COMMISSION; REINSTATEMENT OF JURISDICTION. (a) A
municipality may elect to have the [railroad] commission exercise
exclusive original jurisdiction over gas utility rates,
operations, and services in the municipality by ordinance or by
submitting the question of the surrender of its jurisdiction to the
voters at a municipal election.
(b) The governing body of a municipality shall submit at a
municipal election the question of surrendering its jurisdiction to
the [railroad] commission if the governing body receives a petition
signed by a number of qualified voters of the municipality equal to
at least the lesser of 20,000 or 10 percent of the number of voters
voting in the last preceding general election in the municipality.
(c) A municipality may not elect to surrender its
jurisdiction while a case involving the municipality is pending.
(d) A municipality that surrenders its jurisdiction to the
[railroad] commission may reinstate its jurisdiction. The
provisions of this section governing the surrender of jurisdiction
apply to the reinstatement of jurisdiction.
SECTION 25. Section 103.023, Utilities Code, is amended to
read as follows:
Sec. 103.023. MUNICIPAL STANDING. (a) A municipality has
standing in each case before the [railroad] commission that relates
to a gas utility's rates and services in the municipality.
(b) A municipality's standing is subject to the right of the
[railroad] commission to consolidate that municipality with
another party on an issue of common interest.
SECTION 26. Section 103.024, Utilities Code, is amended to
read as follows:
Sec. 103.024. JUDICIAL REVIEW. A municipality is entitled
to judicial review of a [railroad] commission order relating to a
gas utility's rates and services in a municipality as provided by
Section 105.001.
SECTION 27. Section 103.051, Utilities Code, is amended to
read as follows:
Sec. 103.051. APPEAL BY PARTY. A party to a rate proceeding
before a municipality's governing body may appeal the governing
body's decision to the [railroad] commission.
SECTION 28. Section 103.052, Utilities Code, is amended to
read as follows:
Sec. 103.052. APPEAL BY RESIDENTS. The residents of a
municipality may appeal to the [railroad] commission the decision
of the municipality's governing body in a rate proceeding by filing
with the [railroad] commission a petition for review signed by a
number of qualified voters of the municipality equal to at least the
lesser of 20,000 or 10 percent of the qualified voters of the
municipality.
SECTION 29. Section 103.053(a), Utilities Code, is amended
to read as follows:
(a) The ratepayers of a municipally owned utility who are
outside the municipality may appeal to the [railroad] commission an
action of the municipality's governing body affecting the
municipally owned utility's rates by filing with the [railroad]
commission a petition for review signed by a number of ratepayers
served by the utility outside the municipality equal to at least the
lesser of 10,000 or five percent of those ratepayers.
SECTION 30. Section 103.054(a), Utilities Code, is amended
to read as follows:
(a) An appeal under this subchapter is initiated by filing a
petition for review with the [railroad] commission and serving a
copy of the petition on each party to the original rate proceeding.
SECTION 31. Sections 103.055(b) and (c), Utilities Code,
are amended to read as follows:
(b) The [railroad] commission shall enter a final order
establishing the rates the [railroad] commission determines the
municipality should have set in the ordinance to which the appeal
applies.
(c) If the [railroad] commission fails to enter a final
order within 185 days after the date the appeal is perfected, the
rates proposed by the gas utility are considered to be approved by
the [railroad] commission and take effect on the expiration of the
185-day period.
SECTION 32. Section 103.056, Utilities Code, is amended to
read as follows:
Sec. 103.056. APPLICABILITY OF RATES. Temporary or
permanent rates set by the [railroad] commission are prospective
and observed from the date of the applicable [railroad] commission
order, except an interim rate order necessary to provide a gas
utility the opportunity to avoid confiscation during the period
beginning on the date a petition for review is filed with the
[railroad] commission and ending on the date of a final order
establishing rates.
SECTION 33. Section 104.001(a), Utilities Code, is amended
to read as follows:
(a) The [railroad] commission is vested with all the
authority and power of this state to ensure compliance with the
obligations of gas utilities in this subtitle.
SECTION 34. Sections 104.003(a) and (c), Utilities Code,
are amended to read as follows:
(a) The regulatory authority shall ensure that each rate a
gas utility or two or more gas utilities jointly make, demand, or
receive is just and reasonable. A rate may not be unreasonably
preferential, prejudicial, or discriminatory but must be
sufficient, equitable, and consistent in application to each class
of consumer. In establishing a gas utility's rates, the [railroad]
commission may treat as a single class two or more municipalities
that a gas utility serves if the commission considers that
treatment to be appropriate.
(c) Subsection (b) does not apply:
(1) if a complaint is filed with the [railroad]
commission by a transmission pipeline purchaser of gas sold or
transported under the pipeline-to-pipeline or transportation rate;
or
(2) to a direct sale for resale to a gas distribution
utility at a city gate.
SECTION 35. Section 104.005(c), Utilities Code, is amended
to read as follows:
(c) After notice and hearing, the [railroad] commission
may, in the public interest, order a gas utility to refund with
interest compensation received in violation of this section.
SECTION 36. Section 104.006, Utilities Code, is amended to
read as follows:
Sec. 104.006. RATES FOR AREA NOT IN MUNICIPALITY. Without
the approval of the [railroad] commission, a gas utility's rates
for an area not in a municipality may not exceed 115 percent of the
average of all rates for similar services for all municipalities
served by the same utility in the same county as that area.
SECTION 37. Section 104.054(a), Utilities Code, is amended
to read as follows:
(a) The [railroad] commission shall establish proper and
adequate rates and methods of depreciation, amortization, or
depletion for each class of property of a gas utility or municipally
owned utility.
SECTION 38. Section 104.107(a), Utilities Code, is amended
to read as follows:
(a) Pending the hearing and a decision:
(1) the local regulatory authority, after delivering
to the gas utility a written statement of the regulatory
authority's reasons, may suspend the operation of the schedule for
not longer than 90 days after the date the schedule would otherwise
be effective; and
(2) the [railroad] commission may suspend the
operation of the schedule for not longer than 150 days after the
date the schedule would otherwise be effective.
SECTION 39. Section 104.201, Utilities Code, is amended to
read as follows:
Sec. 104.201. TRANSPORTATION RATES BETWEEN GAS UTILITY OR
MUNICIPALLY OWNED UTILITY AND STATE AGENCY. (a) Notwithstanding
Section 104.003(b), absent a contract for transportation service
between a state agency and a gas utility or municipally owned
utility, the [railroad] commission, not later than the 210th day
after the date either party files a request to set a transportation
rate, shall establish the transportation rate for the state agency.
The commission has exclusive original jurisdiction to establish a
transportation rate for a state agency under this section.
(b) The [railroad] commission shall base its determination
of the transportation rate under Subsection (a) on the cost of
providing the transportation service for both the distribution
system and the transmission system, as applicable, of the gas
utility or municipally owned utility.
(c) The [railroad] commission may order temporary rates
under Subsection (a) as provided for under the commission's
appellate jurisdiction.
SECTION 40. Section 104.2545(c), Utilities Code, is amended
to read as follows:
(c) A utility shall provide a service described by
Subsection (b) at rates provided by a written contract negotiated
between the utility and the state or a state agency. If the utility
and the state or state agency are not able to agree to a contract
rate, a fair and reasonable rate may be determined for the public
retail customer, as a rate for a separate class of service, by the
[railroad] commission or, for municipally owned gas utilities, by
the relevant regulatory body under this chapter.
SECTION 41. Section 104.255(b), Utilities Code, is amended
to read as follows:
(b) The [railroad] commission shall adopt rules concerning
payment of bills by the state or a state agency to a gas utility or
municipally owned utility. The rules must be consistent with
Chapter 2251, Government Code.
SECTION 42. Section 104.301(j), Utilities Code, is amended
to read as follows:
(j) A gas utility implementing a tariff or rate schedule
under this section shall reimburse the [railroad] commission the
utility's proportionate share of the [railroad] commission's costs
related to the administration of the interim rate adjustment
mechanism provided by this section.
SECTION 43. Section 105.001(a), Utilities Code, is amended
to read as follows:
(a) Any party to a proceeding before the [railroad]
commission is entitled to judicial review under the substantial
evidence rule.
SECTION 44. Section 105.021(a), Utilities Code, is amended
to read as follows:
(a) The attorney general, on the request of the [railroad]
commission, shall apply in the name of the commission for an order
under Subsection (b) if the commission determines that a gas
utility or other person is:
(1) engaging in or about to engage in an act that
violates this subtitle or an order or rule of the commission entered
or adopted under this subtitle; or
(2) failing to comply with the requirements of this
subtitle or a rule or order of the commission.
SECTION 45. Section 105.022, Utilities Code, is amended to
read as follows:
Sec. 105.022. CONTEMPT. The [railroad] commission may file
an action for contempt against a person who:
(1) fails to comply with a lawful order of the
commission;
(2) fails to comply with a subpoena or subpoena duces
tecum; or
(3) refuses to testify about a matter on which the
person may be lawfully interrogated.
SECTION 46. Sections 105.023(a) and (d), Utilities Code,
are amended to read as follows:
(a) A gas utility or affiliate is subject to a civil penalty
if the gas utility or affiliate knowingly violates this subtitle,
fails to perform a duty imposed on it, or fails, neglects, or
refuses to obey an order, rule, direction, or requirement of the
[railroad] commission or a decree or judgment of a court.
(d) The attorney general shall file in the name of the
[railroad] commission a suit on the attorney general's own
initiative or at the request of the commission to recover the civil
penalty under this section.
SECTION 47. Section 105.027, Utilities Code, is amended to
read as follows:
Sec. 105.027. DISPOSITION OF FINES AND PENALTIES. A fine or
penalty collected under this subtitle, other than a fine or penalty
collected in a criminal proceeding, shall be paid to the [railroad]
commission.
SECTION 48. Section 124.002(a), Utilities Code, is amended
to read as follows:
(a) The Public Utility Commission of Texas [railroad
commission] shall adopt rules under which an owner, operator, or
manager of a mobile home park or apartment house may purchase
natural gas through a master meter for delivery to a dwelling unit
in the mobile home park or apartment house using individual
submeters to allocate fairly the cost of the gas consumption of each
dwelling unit.
SECTION 49. Sections 141.001(3) and (5), Utilities Code,
are amended to read as follows:
(3) "Commission" means the Public Utility [Railroad]
Commission of Texas or its successor agency.
(5) "Distribution system retailer":
(A) means a retail propane dealer that:
(i) owns or operates for compensation in
this state a propane gas system; and
(ii) has a Category E or K license issued by
the applicable license and permit section of the Railroad
Commission of Texas [commission]; and
(B) does not include a person that furnishes
propane gas only to the person, to the person's employees, or to the
person's tenants as an incident of employment or tenancy, if the
service is not resold to customers.
SECTION 50. Chapter 141, Utilities Code, is amended by
adding Section 141.011 to read as follows:
Sec. 141.011. MEMORANDUM OF UNDERSTANDING. The commission
may enter into a memorandum of understanding with the Railroad
Commission of Texas as necessary to administer and enforce this
chapter.
SECTION 51. (a) On September 1, 2016, the following are
transferred from the Railroad Commission of Texas to the Public
Utility Commission of Texas:
(1) the powers, duties, functions, programs, and
activities of the Railroad Commission of Texas relating to the
rates and services of gas utilities under Subtitle A, Title 3,
Utilities Code, the rates and services of propane distribution
system retailers under Subtitle C, Title 3, Utilities Code, and
submetering under Chapter 124, Utilities Code, as provided by this
Act;
(2) any obligations and contracts of the Railroad
Commission of Texas that are directly related to implementing a
power, duty, function, program, or activity transferred under this
Act; and
(3) all property and records in the custody of the
Railroad Commission of Texas that are related to a power, duty,
function, program, or activity transferred under this Act and all
funds appropriated by the legislature for that power, duty,
function, program, or activity.
(b) The Railroad Commission of Texas shall continue to carry
out the railroad commission's duties related to the rates and
services of gas utilities under Subtitle A, Title 3, Utilities
Code, the rates and services of propane distribution system
retailers under Subtitle C, Title 3, Utilities Code, and
submetering under Chapter 124, Utilities Code, as those laws
existed immediately before the effective date of this Act until
September 1, 2016, and the former law is continued in effect for
that purpose.
(c) The Railroad Commission of Texas and the Public Utility
Commission of Texas shall enter into a memorandum of understanding
that:
(1) identifies in detail the applicable powers and
duties that are transferred by this Act;
(2) establishes a plan for the identification and
transfer of the records, personnel, property, and unspent
appropriations of the Railroad Commission of Texas that are used
for purposes of the railroad commission's powers and duties
directly related to the rates and services of gas utilities under
Subtitle A, Title 3, Utilities Code, the rates and services of
propane distribution system retailers under Subtitle C, Title 3,
Utilities Code, and submetering under Chapter 124, Utilities Code,
as amended by this Act; and
(3) establishes a plan for the transfer of all pending
applications, hearings, rulemaking proceedings, and orders
relating to the rates and services of gas utilities under Subtitle
A, Title 3, Utilities Code, the rates and services of propane
distribution system retailers under Subtitle C, Title 3, Utilities
Code, and submetering under Chapter 124, Utilities Code, as amended
by this Act, from the Railroad Commission of Texas to the Public
Utility Commission of Texas.
(d) The memorandum of understanding under this section must
be completed by August 1, 2016.
(e) The executive directors of the Railroad Commission of
Texas and the Public Utility Commission of Texas may agree in the
memorandum of understanding under this section to transfer to the
Public Utility Commission of Texas any personnel of the Railroad
Commission of Texas whose functions predominantly involve powers,
duties, obligations, functions, and activities related to the rates
and services of gas utilities under Subtitle A, Title 3, Utilities
Code, the rates and services of propane distribution system
retailers under Subtitle C, Title 3, Utilities Code, and
submetering under Chapter 124, Utilities Code, as amended by this
Act.
(f) A rule, form, policy, procedure, or decision of the
Railroad Commission of Texas related to a power, duty, function,
program, or activity transferred under this Act continues in effect
as a rule, form, policy, procedure, or decision of the Public
Utility Commission of Texas and remains in effect until amended or
replaced by that agency. Notwithstanding any other law, beginning
September 1, 2015, the Public Utility Commission of Texas may
propose rules, forms, policies, and procedures related to a
function to be transferred to the Public Utility Commission of
Texas under this Act.
SECTION 52. This Act takes effect September 1, 2015.