Texas 2023 - 88th Regular

Texas Senate Bill SB1965 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 1965
2	2
3	3
4	4	AN ACT
5	5	relating to requirements for the purchase or acquisition of certain
6	6	water and sewer systems.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 13.301, Water Code, is amended by
9	9	amending Subsection (h) and adding Subsections (l), (m), and (n) to
10	10	read as follows:
11	11	(h) A sale, acquisition, lease, or rental of any water or
12	12	sewer system owned by an entity required by law to possess a
13	13	certificate of public convenience and necessity, or a sale or
14	14	acquisition of or merger or consolidation with such an entity, that
15	15	is not completed in accordance with the provisions of this section
16	16	is void. The utility commission shall approve a transaction to
17	17	which this section applies without an owner's signature required by
18	18	other law if the owner has abandoned operation of the facilities
19	19	that are the subject of the transaction and cannot be located or
20	20	does not respond to an application filed under Subsection (l).
21	21	(l) Notwithstanding any other provision of this section,
22	22	the utility commission by rule shall adopt an expedited process
23	23	that allows a person appointed by the utility commission or
24	24	commission under Section 13.4132 as a temporary manager of a
25	25	utility, utility in receivership, or utility in supervision, who is
26	26	also an operator of a Class A or Class B utility to apply for utility
27	27	commission approval of the person's acquisition of the stock,
28	28	ownership interest, or assets of the temporarily managed and
29	29	operated utility, utility in receivership, or utility in
30	30	supervision, its facilities, and, if applicable, its certificated
31	31	service area. The expedited process must:
32	32	(1) waive public notice requirements regardless of
33	33	whether the person elects to charge initial rates in accordance
34	34	with Section 13.3011 or use a voluntary valuation determined under
35	35	Section 13.305;
36	36	(2) require approval of the acquisition transaction if
37	37	the transaction is considered to be in the public interest; and
38	38	(3) provide that:
39	39	(A) the person's appointment is considered
40	40	sufficient to demonstrate adequate financial, managerial, and
41	41	technical capability for providing continuous and adequate service
42	42	to the service area to be acquired and any areas currently
43	43	certificated to the person; and
44	44	(B) all used and useful invested capital and just
45	45	and reasonable operations and maintenance costs incurred by the
46	46	person during the person's appointment as temporary manager and
47	47	operator of the utility, utility in receivership, or utility in
48	48	supervision to be acquired are considered to be a regulatory asset
49	49	for the person and are recoverable in the person's next
50	50	comprehensive rate proceeding or system improvement charge
51	51	application.
52	52	(m) If a temporary rate under Section 13.046 is adopted
53	53	during the period described by Subsection (l)(3)(B), all used and
54	54	useful invested capital and just and reasonable operations and
55	55	maintenance costs incurred by the person in excess of costs covered
56	56	by the temporary rate are considered to be a regulatory asset for
57	57	the person and are recoverable in the person's next comprehensive
58	58	rate proceeding or system improvement charge application.
59	59	(n) The utility commission and commission shall provide a
60	60	reasonable period for a person acquiring a utility under Subsection
61	61	(l) to bring the acquired utility into compliance with utility
62	62	commission and commission rules before imposing a penalty for any
63	63	violation committed by the acquired utility for which no
64	64	enforcement action has been completed at the time of acquisition.
65	65	SECTION 2. This Act takes effect September 1, 2023.
66	66	______________________________ ______________________________
67	67	President of the Senate Speaker of the House
68	68	I hereby certify that S.B. No. 1965 passed the Senate on
69	69	April 12, 2023, by the following vote: Yeas 31, Nays 0.
70	70	______________________________
71	71	Secretary of the Senate
72	72	I hereby certify that S.B. No. 1965 passed the House on April
73	73	28, 2023, by the following vote: Yeas 136, Nays 8, two present not
74	74	voting.
75	75	______________________________
76	76	Chief Clerk of the House
77	77	Approved:
78	78	______________________________
79	79	Date
80	80	______________________________
81	81	Governor