Texas 2019 - 86th Regular

Texas House Bill HB4241 Compare Versions

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

Old	New	Differences
1	1	86R14148 JXC-F
2	2	By: Wray H.B. No. 4241
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to providing services for or acquiring certain water
8	8	utilities and establishing related rates.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 13.043, Water Code, is amended by adding
11	11	Subsection (b-4) to read as follows:
12	12	(b-4) Notwithstanding Subsection (b), ratepayers described
13	13	by that subsection may not appeal to the utility commission the
14	14	decision of the governing body of the entity affecting their water,
15	15	drainage, or sewer rates if the decision relates to a rate charged
16	16	to recover the costs associated with the acquisition of a
17	17	nonfunctioning system, as defined by Section 13.4134.
18	18	SECTION 2. Section 13.046, Water Code, is transferred to
19	19	Subchapter K, Chapter 13, Water Code, redesignated as Section
20	20	13.4134, and amended to read as follows:
21	21	Sec. 13.4134 [13.046]. [TEMPORARY] RATES FOR SERVICES
22	22	PROVIDED FOR NONFUNCTIONING SYSTEM; SANCTIONS FOR NONCOMPLIANCE.
23	23	(a) In this section, "nonfunctioning system" means a system that is
24	24	operating as a retail public utility and:
25	25	(1) does not have a required certificate of
26	26	convenience and necessity;
27	27	(2) is under the supervision of the utility commission
28	28	in the manner provided by Section 13.4131; or
29	29	(3) is under the supervision of a receiver or
30	30	temporary manager or has been referred for the appointment of a
31	31	temporary manager or receiver in the manner provided by Section
32	32	13.412 or 13.4132.
33	33	(b) The utility commission by rule shall establish a
34	34	procedure that allows a retail public utility that takes over the
35	35	provision of services for a nonfunctioning system or acquires a
36	36	nonfunctioning system [retail water or sewer utility service
37	37	provider] to charge a reasonable rate for the services provided to
38	38	the customers of the nonfunctioning system and to bill the
39	39	customers for the services at that rate immediately to recover
40	40	[service] costs described by Subsection (c).
41	41	(c) [(b)] The rules must provide a streamlined process
42	42	that the retail public utility that takes over the provision of
43	43	services for or acquires the nonfunctioning system may use to apply
44	44	to the utility commission for a ruling on the reasonableness of the
45	45	rates the utility is charging under Subsection (b) [(a)]. The
46	46	process must allow for adequate consideration of costs for
47	47	interconnection or other costs incurred in making services
48	48	available or during the acquisition and of the costs that may
49	49	necessarily be incurred to bring the nonfunctioning system into
50	50	compliance with utility commission and commission rules.
51	51	(d) A rate process under this section is an uncontested
52	52	matter and is not a rate case. Sections 13.187, 13.1871, and 13.1872
53	53	do not apply to a rate process under this section. However, the
54	54	utility commission shall hold a public meeting to provide
55	55	information on the rate process:
56	56	(1) on the request of a member of the legislature who
57	57	represents the area formerly served by the nonfunctioning system;
58	58	or
59	59	(2) if the utility commission determines that there is
60	60	substantial public interest in the matter.
61	61	(e) [(c)] The utility commission and the commission shall
62	62	provide a reasonable period for the retail public utility that
63	63	takes over the nonfunctioning system to bring the nonfunctioning
64	64	system into compliance with utility commission and commission rules
65	65	during which the utility commission or the commission may not
66	66	impose a penalty for any deficiency in the system that is present at
67	67	the time the utility takes over the nonfunctioning system. The
68	68	utility commission and the commission must consult with the utility
69	69	before determining the period and may grant an extension of the
70	70	period for good cause.
71	71	(f) During the period described by Subsection (e), the
72	72	retail public utility that provides services for or acquires the
73	73	nonfunctioning system shall report to the utility commission, in
74	74	the manner and frequency specified by the utility commission, the
75	75	retail public utility's progress in bringing the nonfunctioning
76	76	system into compliance with the utility commission's financial,
77	77	managerial, and technical standards.
78	78	SECTION 3. Section 15.971, Water Code, is amended by adding
79	79	Subdivision (3-a) to read as follows:
80	80	(3-a) "Nonfunctioning system" has the meaning
81	81	assigned by Section 13.4134.
82	82	SECTION 4. Section 15.973(a), Water Code, is amended to
83	83	read as follows:
84	84	(a) The water infrastructure fund is a special fund in the
85	85	state treasury to be administered by the board under this
86	86	subchapter and rules adopted by the board under this subchapter.
87	87	Money in the fund may be used to pay:
88	88	(1) for the implementation of water projects
89	89	recommended through the state and regional water planning processes
90	90	under Sections 16.051 and 16.053; and
91	91	(2) costs related to the acquisition of a
92	92	nonfunctioning system by a retail public utility that will take
93	93	over the provision of services for the system.
94	94	SECTION 5. The heading to Section 15.974, Water Code, is
95	95	amended to read as follows:
96	96	Sec. 15.974. USE OF WATER INFRASTRUCTURE FUND FOR PROJECTS.
97	97	SECTION 6. Subchapter Q, Chapter 15, Water Code, is amended
98	98	by adding Section 15.9741 to read as follows:
99	99	Sec. 15.9741. USE OF WATER INFRASTRUCTURE FUND FOR
100	100	ACQUISITION OF NONFUNCTIONING SYSTEMS. The board may use the fund
101	101	in accordance with board rules to provide a grant, low-interest
102	102	loan, or zero-interest loan to a retail public utility to pay for:
103	103	(1) an interconnection between the retail public
104	104	utility and a nonfunctioning system; and
105	105	(2) costs associated with bringing the nonfunctioning
106	106	system into compliance with all applicable financial, managerial,
107	107	and technical standards.
108	108	SECTION 7. Section 15.975(a), Water Code, is amended to
109	109	read as follows:
110	110	(a) On review and recommendation by the executive
111	111	administrator, the board by resolution may approve an application
112	112	only if the board finds that[:
113	113	[(1)] the application and the assistance applied for
114	114	meet the requirements of this subchapter and board rules. For an
115	115	application related to a project, the board must also find that:
116	116	(1)[;
117	117	[(2)] the revenue or taxes, or both the revenue and
118	118	taxes, pledged by the applicant will be sufficient to meet all the
119	119	obligations assumed by the political subdivision for the project;
120	120	and
121	121	(2) [(3)] the project will meet water needs in a
122	122	manner consistent with the state and regional water plans as
123	123	required by Section 16.053(j), unless otherwise specified by an act
124	124	of the legislature.
125	125	SECTION 8. Section 15.976, Water Code, is amended to read as
126	126	follows:
127	127	Sec. 15.976. APPLICABLE LAW. Subchapter E, Chapter 17,
128	128	applies to financial assistance made available from the fund for a
129	129	project, except that the board may also execute contracts as
130	130	necessary to evidence grant agreements.
131	131	SECTION 9. This Act takes effect September 1, 2019.