85R3435 DDT-F
By: Garcia S.B. No. 1115
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. APPOINTMENT OF TEMPORARY MANAGER. (a)
Utility commission staff shall file a petition to appoint a
temporary manager of an investor-owned water utility if the staff
has reason to believe:
(1) the utility has repeated or continuous violations
of commission rules or of the commission's predecessor agency rules
regarding well capacity, storage tank capacity, service pump
capacity, or pressure tank capacity for at least six years before
the petition is filed;
(2) neither an owner of the utility nor the utility has
borrowed money from a federally insured lending institution to
remedy a violation of a rule described by Subdivision (1);
(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 2.7 million.
(b) If, after notice and an opportunity for a hearing, the
utility commission finds that the facts alleged in the petition are
true, the utility commission may appoint a temporary manager and
may also refer the investor-owned utility to the attorney general
for the appointment of a receiver under Section 13.412. The utility
commission shall issue its final order not more than 180 days after
the date the petition is filed.
(c) If the utility commission appoints a temporary manager,
the manager shall have all the power and authority provided by
Section 13.4132(c). Not more than 120 days after the appointment of
the manager, the manager shall recommend to the utility commission
whether or not the utility's certificate should be revoked. If the
manager recommends revocation, the manager shall recommend one or
more retail public utilities that could provide service to the
certificated area.
(d) If a court appoints a receiver for the utility, the
temporary manager's appointment ends when the receiver executes the
bond required by Section 13.412. The temporary manager is eligible
to be appointed as the receiver.
(e) Not more than 90 days after the appointment of a
receiver by the court, the receiver shall recommend to the utility
commission whether or not the utility's certificate of convenience
and necessity should be revoked. If the receiver recommends
revocation, the receiver shall recommend one or more retail public
utilities that could provide service to the certificated area. The
receiver may recommend any other remedy authorized by this chapter.
(f) If the receiver recommends revocation, the utility
commission staff shall file a petition to revoke the certificate of
convenience and necessity under Section 13.254.
SECTION 2. This Act takes effect September 1, 2017.