| 1 | 1 | | 88R13448 KBB-F |
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| 2 | 2 | | By: Gates H.B. No. 4296 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of a petitioner to pay off a certificate |
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| 8 | 8 | | holder's federal loan to facilitate decertification of a |
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| 9 | 9 | | certificated area. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 13.254(a-1), Water Code, is amended to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (a-1) As an alternative to decertification under Subsection |
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| 14 | 14 | | (a), the owner of a tract of land that is at least 50 acres and that |
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| 15 | 15 | | is not in a platted subdivision actually receiving water or sewer |
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| 16 | 16 | | service may petition the utility commission under this subsection |
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| 17 | 17 | | for expedited release of the area from a certificate of public |
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| 18 | 18 | | convenience and necessity so that the area may receive service from |
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| 19 | 19 | | another retail public utility. The fact that a certificate holder |
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| 20 | 20 | | is a borrower under a federal loan program is not a bar to a request |
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| 21 | 21 | | under this subsection for the release of the petitioner's land and |
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| 22 | 22 | | the receipt of services from an alternative provider. If the |
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| 23 | 23 | | certificate holder is a borrower under a federal loan program, the |
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| 24 | 24 | | petitioner is entitled to pay off the loan to facilitate the release |
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| 25 | 25 | | process, if allowed under federal law. On the day the petitioner |
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| 26 | 26 | | submits the petition to the utility commission, the petitioner |
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| 27 | 27 | | shall send, via certified mail, a copy of the petition to the |
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| 28 | 28 | | certificate holder, who may submit information to the utility |
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| 29 | 29 | | commission to controvert information submitted by the petitioner. |
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| 30 | 30 | | The petitioner must demonstrate that: |
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| 31 | 31 | | (1) a written request for service, other than a |
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| 32 | 32 | | request for standard residential or commercial service, has been |
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| 33 | 33 | | submitted to the certificate holder, identifying: |
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| 34 | 34 | | (A) the area for which service is sought; |
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| 35 | 35 | | (B) the timeframe within which service is needed |
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| 36 | 36 | | for current and projected service demands in the area; |
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| 37 | 37 | | (C) the level and manner of service needed for |
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| 38 | 38 | | current and projected service demands in the area; |
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| 39 | 39 | | (D) the approximate cost for the alternative |
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| 40 | 40 | | provider to provide the service at the same level and manner that is |
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| 41 | 41 | | requested from the certificate holder; |
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| 42 | 42 | | (E) the flow and pressure requirements and |
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| 43 | 43 | | specific infrastructure needs, including line size and system |
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| 44 | 44 | | capacity for the required level of fire protection requested; and |
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| 45 | 45 | | (F) any additional information requested by the |
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| 46 | 46 | | certificate holder that is reasonably related to determination of |
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| 47 | 47 | | the capacity or cost for providing the service; |
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| 48 | 48 | | (2) the certificate holder has been allowed at least |
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| 49 | 49 | | 90 calendar days to review and respond to the written request and |
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| 50 | 50 | | the information it contains; |
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| 51 | 51 | | (3) the certificate holder: |
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| 52 | 52 | | (A) has refused to provide the service; |
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| 53 | 53 | | (B) is not capable of providing the service on a |
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| 54 | 54 | | continuous and adequate basis within the timeframe, at the level, |
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| 55 | 55 | | at the approximate cost that the alternative provider is capable of |
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| 56 | 56 | | providing for a comparable level of service, or in the manner |
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| 57 | 57 | | reasonably needed or requested by current and projected service |
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| 58 | 58 | | demands in the area; or |
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| 59 | 59 | | (C) conditions the provision of service on the |
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| 60 | 60 | | payment of costs not properly allocable directly to the |
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| 61 | 61 | | petitioner's service request, as determined by the utility |
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| 62 | 62 | | commission; and |
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| 63 | 63 | | (4) the alternate retail public utility from which the |
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| 64 | 64 | | petitioner will be requesting service possesses the financial, |
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| 65 | 65 | | managerial, and technical capability to provide continuous and |
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| 66 | 66 | | adequate service within the timeframe, at the level, at the cost, |
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| 67 | 67 | | and in the manner reasonably needed or requested by current and |
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| 68 | 68 | | projected service demands in the area. |
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| 69 | 69 | | SECTION 2. Section 13.2541(d), Water Code, is amended to |
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| 70 | 70 | | read as follows: |
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| 71 | 71 | | (d) The utility commission may not deny the petition based |
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| 72 | 72 | | on the fact that the certificate holder is a borrower under a |
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| 73 | 73 | | federal loan program. If the certificate holder is a borrower under |
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| 74 | 74 | | a federal loan program, the petitioner is entitled to pay off the |
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| 75 | 75 | | loan to facilitate the release process, if allowed under federal |
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| 76 | 76 | | law. |
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| 77 | 77 | | SECTION 3. This Act takes effect immediately if it receives |
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| 78 | 78 | | a vote of two-thirds of all the members elected to each house, as |
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| 79 | 79 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 80 | 80 | | Act does not receive the vote necessary for immediate effect, this |
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| 81 | 81 | | Act takes effect September 1, 2023. |
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