| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to procedures for imposing certain administrative |
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| 6 | 8 | | penalties or disgorgement orders by the Public Utility Commission |
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| 7 | 9 | | of Texas. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Section 15.024, Utilities Code, is amended by |
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| 10 | 12 | | amending Subsections (b), (e), and (f) and adding Subsection (b-1) |
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| 11 | 13 | | to read as follows: |
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| 12 | 14 | | (b) Not later than the 14th day after the date the report is |
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| 13 | 15 | | issued, the executive director shall give written notice of the |
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| 14 | 16 | | report to the person against whom the penalty may be assessed. The |
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| 15 | 17 | | notice may be given by regular or certified mail. The notice must: |
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| 16 | 18 | | (1) include a brief summary of the alleged violation; |
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| 17 | 19 | | (2) state the amount of the recommended penalty; and |
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| 18 | 20 | | (3) inform the person that the person has a right to a |
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| 19 | 21 | | hearing on the occurrence of the violation, the amount of the |
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| 20 | 22 | | penalty, or both the occurrence of the violation and the amount of |
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| 21 | 23 | | the penalty. |
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| 22 | 24 | | (b-1) If the commission sends written notice to a person by |
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| 23 | 25 | | mail addressed to the person's mailing address as maintained in the |
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| 24 | 26 | | commission's records, the person is deemed to have received notice: |
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| 25 | 27 | | (1) on the fifth day after the date that the commission |
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| 26 | 28 | | sent the written notice, for notice sent by regular mail; or |
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| 27 | 29 | | (2) on the date the written notice is received or |
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| 28 | 30 | | delivery is refused, for notice sent by certified mail. |
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| 29 | 31 | | (e) If the person accepts the executive director's |
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| 30 | 32 | | determination and recommended penalty or fails to timely respond to |
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| 31 | 33 | | the notice, the commission by order shall approve the determination |
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| 32 | 34 | | and impose the recommended penalty or order a hearing on the |
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| 33 | 35 | | determination and the recommended penalty. |
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| 34 | 36 | | (f) If the person requests a hearing or the commission |
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| 35 | 37 | | orders a hearing under Subsection (e) [fails to timely respond to |
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| 36 | 38 | | the notice], the commission [executive director] shall refer the |
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| 37 | 39 | | matter to the State Office of Administrative Hearings for [set] a |
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| 38 | 40 | | hearing and give notice of the referral [hearing] to the person. |
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| 39 | 41 | | The parties to a proceeding under this subchapter shall be limited |
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| 40 | 42 | | to the person and the commission, including the independent market |
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| 41 | 43 | | monitor. The hearing shall be held by an administrative law judge |
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| 42 | 44 | | of the State Office of Administrative Hearings and notice of the |
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| 43 | 45 | | hearing must be provided in accordance with Chapter 2001, |
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| 44 | 46 | | Government Code. The administrative law judge shall make findings |
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| 45 | 47 | | of fact and conclusions of law and promptly issue to the commission |
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| 46 | 48 | | a proposal for a decision about the occurrence of the violation and |
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| 47 | 49 | | the amount of a proposed penalty. Based on the findings of fact, |
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| 48 | 50 | | conclusions of law, and proposal for a decision, the commission by |
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| 49 | 51 | | order may find that a violation has occurred and impose a penalty or |
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| 50 | 52 | | disgorgement order or may find that no violation occurred. |
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| 51 | 53 | | SECTION 2. The changes in law made by this Act apply only to |
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| 52 | 54 | | the procedures for an administrative penalty or disgorgement order |
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| 53 | 55 | | for which a written notice is given under Section 15.024(b), |
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| 54 | 56 | | Utilities Code, on or after the effective date of this Act. Those |
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| 55 | 57 | | procedures for a penalty or order for which a written notice is |
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| 56 | 58 | | given before the effective date of this Act are governed by the law |
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| 57 | 59 | | in effect on the date the notice is given, and the former law is |
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| 58 | 60 | | continued in effect for that purpose. |
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| 59 | 61 | | SECTION 3. This Act takes effect September 1, 2019. |
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| 60 | | - | ______________________________ ______________________________ |
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| 61 | | - | President of the Senate Speaker of the House |
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| 62 | | - | I hereby certify that S.B. No. 1358 passed the Senate on |
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| 63 | | - | April 11, 2019, by the following vote: Yeas 30, Nays 1. |
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| 64 | | - | ______________________________ |
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| 65 | | - | Secretary of the Senate |
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| 66 | | - | I hereby certify that S.B. No. 1358 passed the House on |
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| 67 | | - | May 3, 2019, by the following vote: Yeas 140, Nays 0, two present |
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| 68 | | - | not voting. |
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| 69 | | - | ______________________________ |
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| 70 | | - | Chief Clerk of the House |
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| 71 | | - | Approved: |
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| 72 | | - | ______________________________ |
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| 73 | | - | Date |
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| 74 | | - | ______________________________ |
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| 75 | | - | Governor |
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