84R20290 DDT-F
By: Walle H.B. No. 2284
A BILL TO BE ENTITLED
AN ACT
relating to the revocation of certain water utilities' certificate
of public convenience and necessity for major rules violations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter G, Chapter 13, Water Code, is amended
by adding Section 13.2541 to read as follows:
Sec. 13.2541. REVOCATION OF CERTIFICATE FOR CERTAIN MAJOR
VIOLATORS. (a) Utility commission staff shall file a petition to
revoke an investor-owned water utility's certificate of public
convenience and necessity if the staff has reason to believe:
(1) the utility has committed repeated or continuous
major violations of one or more commission rules related to safe
drinking water for at least six years before the petition is filed;
(2) none of the owners of the utility have borrowed
money from a federally insured lending institution to use to remedy
a violation of one or more commission rules related to safe drinking
water;
(3) the utility serves more than 1,000 connections but
is made up of less than five public water systems;
(4) the utility does not serve customers who are
located in a municipality; and
(5) the utility is located in a county with a
population of more than four million.
(b) If, after notice and hearing, the utility commission
finds that the facts alleged in the petition are true, the utility
commission may revoke the investor-owned water utility's
certificate on or before the 90th day after the date the petition is
filed.
(c) At the time the utility commission revokes the
certificate it shall appoint a temporary manager and temporarily
transfer the certificate to the temporary manager. On accepting
the transfer, the temporary manager has all the powers necessary to
operate and manage the utility until the utility commission
certifies another retail public utility.
(d) Not more than 12 months after the date the utility
commission appoints a temporary manager under Subsection (c), the
utility commission shall offer at auction any property that the
utility commission determines is rendered useless or valueless to
the decertified investor-owned water utility as a result of the
decertification.
(e) Any person, including public and private water
utilities and the temporary manager appointed under Subsection (c),
may apply for approval to bid on the decertified utility's assets
and property. The utility commission shall review each application
and approve applicants that it determines have the financial,
managerial, and technical ability to provide safe, adequate, and
continuous water service to the decertified utility's customers.
Only approved applicants may bid in the auction. The utility
commission shall request proposals from all approved bidders.
(f) Before the auction, the utility commission and the
temporary manager shall:
(1) make the books and records of the decertified
utility available to all approved bidders; and
(2) provide an opportunity for all approved bidders to
inspect the decertified utility's assets and property.
(g) Each bid must:
(1) estimate the rates the bidder would charge for
service during the first five years following the date of the sale;
and
(2) agree that the bidder, if the bidder purchases the
assets and property, will consider making improvements to remedy
and prevent damages from previous violations of commission rules
related to safe drinking water before the third anniversary of the
purchase date.
(h) The utility commission shall select the bidder that has
the best plan to remedy previous violations of commission rules, as
determined by the utility commission, and, on completion of the
sale to the selected bidder and payment to the decertified utility,
transfer the certificate of public convenience and necessity from
the temporary manager to the selected bidder.
(i) This section expires December 31, 2019.
SECTION 2. This Act takes effect September 1, 2015.