| 12 | | - | SECTION 1. Subchapter E, Chapter 13, Water Code, is amended |
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| 13 | | - | by adding Section 13.150 to read as follows: |
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| 14 | | - | Sec. 13.150. REPORTS REQUIRED FOR WATER AND SEWER |
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| 15 | | - | UTILITIES. (a) Except as provided by Subsection (b), a Class B or |
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| 16 | | - | Class C utility shall deliver to the utility commission a report of |
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| 17 | | - | the utility's financial, managerial, and technical capacity to |
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| 18 | | - | provide continuous and adequate service to its customers not later |
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| 19 | | - | than the third anniversary of the date that the utility violates a |
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| 20 | | - | final order of the commission by failing to: |
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| 21 | | - | (1) provide system capacity that is greater than the |
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| 22 | | - | required raw water or groundwater production rate or the |
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| 23 | | - | anticipated daily demand of the system; |
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| 24 | | - | (2) provide a minimum pressure of 35 pounds per square |
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| 25 | | - | inch throughout the distribution system under normal operating |
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| 26 | | - | conditions; or |
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| 27 | | - | (3) maintain accurate or properly calibrated testing |
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| 28 | | - | equipment or other means of monitoring the effectiveness of a |
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| 29 | | - | chemical treatment or pathogen inactivation or removal process. |
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| 30 | | - | (b) A Class B or Class C utility that has an existing |
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| 31 | | - | obligation to deliver a report under Subsection (a) is not required |
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| 32 | | - | to deliver another report as a result of the occurrence of an event |
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| 33 | | - | described by Subsection (a) if the event occurs before the date that |
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| 34 | | - | the utility delivers the report required by Subsection (a). |
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| 35 | | - | SECTION 2. (a) Except as provided by Subsection (b) of this |
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| 36 | | - | section, a Class B or Class C utility that, not more than three |
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| 37 | | - | years before the effective date of this Act, violated an order |
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| 38 | | - | described by Section 13.150(a), Water Code, as added by this Act, |
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| 39 | | - | shall submit a report described by Section 13.150(a), Water Code, |
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| 40 | | - | as added by this Act, not later than the fifth anniversary of the |
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| 41 | | - | event. |
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| 42 | | - | (b) A Class B or Class C utility that has an existing |
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| 43 | | - | obligation to deliver a report under Subsection (a) of this section |
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| 44 | | - | is not required to deliver another report as a result of the |
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| 45 | | - | occurrence of an event described by Section 13.150(a), Water Code, |
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| 46 | | - | as added by this Act, if the event occurs before the date that the |
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| 47 | | - | utility delivers the report required by Subsection (a) of this |
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| 48 | | - | section. |
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| 49 | | - | SECTION 3. This Act takes effect September 1, 2019. |
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| 9 | + | SECTION 1. Sec. 13.181. POWER TO ENSURE COMPLIANCE; RATE |
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| 10 | + | REGULATION. (a) Except for the provisions of Section 13.192, this |
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| 11 | + | subchapter shall apply only to a utility and shall not be applied to |
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| 12 | + | municipalities, counties, districts, or water supply or sewer |
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| 13 | + | service corporations. |
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| 14 | + | (b) Subject to this chapter, the utility commission has all |
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| 15 | + | authority and power of the state to ensure compliance with the |
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| 16 | + | obligations of utilities under this chapter. For this purpose the |
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| 17 | + | regulatory authority may fix and regulate rates of utilities, |
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| 18 | + | including rules and regulations for determining the classification |
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| 19 | + | of customers and services and for determining the applicability of |
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| 20 | + | rates. A rule or order of the regulatory authority may not conflict |
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| 21 | + | with the rulings of any federal regulatory body. The utility |
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| 22 | + | commission may adopt rules which authorize a utility which is |
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| 23 | + | permitted under Section 13.242(c) to provide service without a |
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| 24 | + | certificate of public convenience and necessity to request or |
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| 25 | + | implement a rate increase and operate according to rules, |
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| 26 | + | regulations, and standards of service other than those otherwise |
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| 27 | + | required under this chapter provided that rates are just and |
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| 28 | + | reasonable for customers and the utility and that service is safe, |
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| 29 | + | adequate, efficient, and reasonable. |
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| 30 | + | (C) Every water and sewer utility shall provide a $5 million |
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| 31 | + | dollar bond held in trust by the Commission. |
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| 32 | + | (1) The Commission may draw down money from the bond, if and |
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| 33 | + | when the water or sewer utility fails within a reasonable time, as |
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| 34 | + | determined by the PUC, to furnish service, instrumentalities, and |
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| 35 | + | facilities that are safe, adequate, efficient, and reasonable. |
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| 36 | + | (2) The commission shall use the proceeds of the bond to |
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| 37 | + | make any necessary improvements to the bring the water or sewer |
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| 38 | + | utility back into compliance to ensure that the service, |
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| 39 | + | instrumentalities, and facilities are safe, adequate, efficient, |
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| 40 | + | and reasonable. |
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| 41 | + | (3) The commission may charge the water or sewer utility the |
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| 42 | + | amount that was required to make the necessary repairs to replenish |
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| 43 | + | the bond of the utility back up to a $5 million dollar threshold. |
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| 44 | + | SECTION 2. This Act takes effect September 1, 2019. |
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