88R13448 KBB-F
By: Gates H.B. No. 4296
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a petitioner to pay off a certificate
holder's federal loan to facilitate decertification of a
certificated area.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.254(a-1), Water Code, is amended to
read as follows:
(a-1) As an alternative to decertification under Subsection
(a), the owner of a tract of land that is at least 50 acres and that
is not in a platted subdivision actually receiving water or sewer
service may petition the utility commission under this subsection
for expedited release of the area from a certificate of public
convenience and necessity so that the area may receive service from
another retail public utility. The fact that a certificate holder
is a borrower under a federal loan program is not a bar to a request
under this subsection for the release of the petitioner's land and
the receipt of services from an alternative provider. If the
certificate holder is a borrower under a federal loan program, the
petitioner is entitled to pay off the loan to facilitate the release
process, if allowed under federal law. On the day the petitioner
submits the petition to the utility commission, the petitioner
shall send, via certified mail, a copy of the petition to the
certificate holder, who may submit information to the utility
commission to controvert information submitted by the petitioner.
The petitioner must demonstrate that:
(1) a written request for service, other than a
request for standard residential or commercial service, has been
submitted to the certificate holder, identifying:
(A) the area for which service is sought;
(B) the timeframe within which service is needed
for current and projected service demands in the area;
(C) the level and manner of service needed for
current and projected service demands in the area;
(D) the approximate cost for the alternative
provider to provide the service at the same level and manner that is
requested from the certificate holder;
(E) the flow and pressure requirements and
specific infrastructure needs, including line size and system
capacity for the required level of fire protection requested; and
(F) any additional information requested by the
certificate holder that is reasonably related to determination of
the capacity or cost for providing the service;
(2) the certificate holder has been allowed at least
90 calendar days to review and respond to the written request and
the information it contains;
(3) the certificate holder:
(A) has refused to provide the service;
(B) is not capable of providing the service on a
continuous and adequate basis within the timeframe, at the level,
at the approximate cost that the alternative provider is capable of
providing for a comparable level of service, or in the manner
reasonably needed or requested by current and projected service
demands in the area; or
(C) conditions the provision of service on the
payment of costs not properly allocable directly to the
petitioner's service request, as determined by the utility
commission; and
(4) the alternate retail public utility from which the
petitioner will be requesting service possesses the financial,
managerial, and technical capability to provide continuous and
adequate service within the timeframe, at the level, at the cost,
and in the manner reasonably needed or requested by current and
projected service demands in the area.
SECTION 2. Section 13.2541(d), Water Code, is amended to
read as follows:
(d) The utility commission may not deny the petition based
on the fact that the certificate holder is a borrower under a
federal loan program. If the certificate holder is a borrower under
a federal loan program, the petitioner is entitled to pay off the
loan to facilitate the release process, if allowed under federal
law.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.