Texas 2023 - 88th Regular

Texas Senate Bill SB2441 Compare Versions

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1	1	88R6989 DIO-D
2	2	By: Perry S.B. No. 2441
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the transfer of functions relating to the economic
8	8	regulation of water and sewer service from the Public Utility
9	9	Commission of Texas and the Office of Public Utility Counsel to the
10	10	Water Public Utility Commission and the Office of Water Public
11	11	Utility Counsel; creating a criminal offense.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 11.041(f), Water Code, is amended to
14	14	read as follows:
15	15	(f) The commission shall hold a hearing on the complaint at
16	16	the time and place stated in the order. It may hear evidence orally
17	17	or by affidavit in support of or against the complaint, and it may
18	18	hear arguments. The Water Public Utility Commission [utility
19	19	commission] may participate in the hearing if necessary to present
20	20	evidence on the price or rental demanded for the available water.
21	21	On completion of the hearing, the commission shall render a written
22	22	decision.
23	23	SECTION 2. Section 12.013(b), Water Code, is amended to
24	24	read as follows:
25	25	(b) In this section:
26	26	(1) "Utility commission" means the Water Public
27	27	Utility Commission.
28	28	(2) "Political[, "political] subdivision" means
29	29	incorporated cities, towns or villages, counties, river
30	30	authorities, water districts, and other special purpose districts.
31	31	SECTION 3. Section 13.002(22-a), Water Code, is amended to
32	32	read as follows:
33	33	(22-a) "Utility commission" means the Water Public
34	34	Utility Commission [of Texas].
35	35	SECTION 4. Section 13.017, Water Code, is amended to read as
36	36	follows:
37	37	Sec. 13.017. OFFICE OF WATER PUBLIC UTILITY COUNSEL; POWERS
38	38	AND DUTIES. (a) In this section, "counsellor" and "office" have
39	39	the meanings assigned by Section 14A.002 [11.003, Utilities Code].
40	40	(b) The independent Office of Water Public Utility Counsel
41	41	represents the interests of residential and small commercial
42	42	consumers under this chapter. The office:
43	43	(1) shall assess the effect of utility rate changes
44	44	and other regulatory actions on residential consumers in this
45	45	state;
46	46	(2) shall advocate in the office's own name a position
47	47	determined by the counsellor to be most advantageous to a
48	48	substantial number of residential consumers;
49	49	(3) may appear or intervene, as a party or otherwise,
50	50	as a matter of right on behalf of:
51	51	(A) residential consumers, as a class, in any
52	52	proceeding before the utility commission, including an alternative
53	53	dispute resolution proceeding; and
54	54	(B) small commercial consumers, as a class, in
55	55	any proceeding in which the counsellor determines that small
56	56	commercial consumers are in need of representation, including an
57	57	alternative dispute resolution proceeding;
58	58	(4) may initiate or intervene as a matter of right or
59	59	otherwise appear in a judicial proceeding:
60	60	(A) that involves an action taken by an
61	61	administrative agency in a proceeding, including an alternative
62	62	dispute resolution proceeding, in which the counsellor is
63	63	authorized to appear; or
64	64	(B) in which the counsellor determines that
65	65	residential consumers or small commercial consumers are in need of
66	66	representation;
67	67	(5) is entitled to the same access as a party, other
68	68	than utility commission staff, to records gathered by the utility
69	69	commission under Section 13.133;
70	70	(6) is entitled to discovery of any nonprivileged
71	71	matter that is relevant to the subject matter of a proceeding or
72	72	petition before the utility commission;
73	73	(7) may represent an individual residential or small
74	74	commercial consumer with respect to the consumer's disputed
75	75	complaint concerning retail utility services that is unresolved
76	76	before the utility commission;
77	77	(8) may recommend legislation to the legislature that
78	78	the office determines would positively affect the interests of
79	79	residential and small commercial consumers; and
80	80	(9) may conduct consumer outreach and education
81	81	programs for residential and small commercial consumers.
82	82	(c) This section does not:
83	83	(1) affect a duty the office is required to perform
84	84	under other law; or
85	85	(2) limit the authority of the utility commission to
86	86	represent residential or small commercial consumers.
87	87	(d) The appearance of the counsellor in a proceeding does
88	88	not preclude the appearance of other parties on behalf of
89	89	residential or small commercial consumers. The counsellor may not
90	90	be grouped with any other party.
91	91	SECTION 5. Subtitle B, Title 2, Water Code, is amended by
92	92	adding Chapters 14 and 14A to read as follows:
93	93	CHAPTER 14. WATER PUBLIC UTILITY COMMISSION
94	94	SUBCHAPTER A. GENERAL PROVISIONS
95	95	Sec. 14.001. WATER PUBLIC UTILITY COMMISSION. The Water
96	96	Public Utility Commission exercises the jurisdiction and powers
97	97	conferred by this subtitle.
98	98	Sec. 14.002. DEFINITIONS. In this chapter:
99	99	(1) "Affiliate" has the meaning assigned by Section
100	100	13.002.
101	101	(2) "Commission" means the Water Public Utility
102	102	Commission.
103	103	(3) "Commissioner" means a member of the Water Public
104	104	Utility Commission.
105	105	(4) "Executive director" means the executive director
106	106	of the commission.
107	107	(5) "Retail public utility" has the meaning assigned
108	108	by Section 13.002.
109	109	Sec. 14.003. COMMISSION OFFICE. (a) The principal office
110	110	of the commission is in Austin.
111	111	(b) The commission's office shall be open daily during usual
112	112	business hours. The commission's office is not required to be open
113	113	on Saturday, Sunday, or a legal holiday.
114	114	Sec. 14.004. SEAL. (a) The commission has a seal bearing
115	115	the inscription: "Water Public Utility Commission."
116	116	(b) The seal shall be affixed to each record and to an
117	117	authentication of a copy of a record. The commission may require
118	118	the seal to be affixed to other instruments.
119	119	(c) A court of this state shall take judicial notice of the
120	120	seal.
121	121	Sec. 14.005. REPRESENTATION BY ATTORNEY GENERAL. The
122	122	attorney general shall represent the commission in a matter before
123	123	a state court, a court of the United States, or a federal public
124	124	utility regulatory commission.
125	125	Sec. 14.006. APPLICATION OF SUNSET ACT. The Water Public
126	126	Utility Commission is subject to Chapter 325, Government Code
127	127	(Texas Sunset Act). Unless continued in existence as provided by
128	128	that chapter, the commission is abolished September 1, 2035.
129	129	SUBCHAPTER B. COMMISSION APPOINTMENT AND FUNCTIONS
130	130	Sec. 14.051. APPOINTMENT; TERM. (a) The commission is
131	131	composed of five commissioners appointed by the governor with the
132	132	advice and consent of the senate.
133	133	(b) An appointment to the commission shall be made without
134	134	regard to the race, color, disability, sex, religion, age, or
135	135	national origin of the appointee.
136	136	(c) In making appointments to the commission, the governor
137	137	shall appoint:
138	138	(1) one individual with expertise in rural retail
139	139	public utilities;
140	140	(2) one individual with expertise in urban retail
141	141	public utilities;
142	142	(3) one individual with expertise in financial matters
143	143	of retail public utilities;
144	144	(4) one individual with expertise in legal matters of
145	145	retail public utilities; and
146	146	(5) one individual with general expertise in retail
147	147	public utilities.
148	148	(d) Commissioners serve staggered six-year terms.
149	149	Sec. 14.052. PRESIDING OFFICER. (a) The governor shall
150	150	designate a commissioner as the presiding officer.
151	151	(b) The presiding officer serves in that capacity at the
152	152	pleasure of the governor.
153	153	Sec. 14.053. PRESIDING OFFICER QUALIFICATIONS. The
154	154	commissioner designated as the presiding officer must be a resident
155	155	of this state.
156	156	Sec. 14.054. MEMBERSHIP QUALIFICATIONS. (a) To be
157	157	eligible for appointment, a commissioner must:
158	158	(1) be a qualified voter;
159	159	(2) be a citizen of the United States;
160	160	(3) be a resident of this state; and
161	161	(4) be a competent and experienced administrator.
162	162	(b) A person is not eligible for appointment as a
163	163	commissioner if the person:
164	164	(1) at any time during the one year preceding
165	165	appointment:
166	166	(A) personally served as an officer, director,
167	167	owner, employee, partner, or legal representative of a retail
168	168	public utility regulated by the commission or of an affiliate or
169	169	direct competitor of a retail public utility regulated by the
170	170	commission;
171	171	(B) owned or controlled, directly or indirectly,
172	172	more than a 10 percent interest in a retail public utility regulated
173	173	by the commission or in an affiliate or direct competitor of a
174	174	retail public utility regulated by the commission; or
175	175	(C) served as an executive officer listed under
176	176	Section 1, Article IV, Texas Constitution, other than the secretary
177	177	of state, or a member of the legislature; or
178	178	(2) is not qualified to serve under Section 14.151,
179	179	14.152, or 14.153.
180	180	Sec. 14.055. REMOVAL OF COMMISSIONER. (a) It is a ground
181	181	for removal from the commission if a commissioner:
182	182	(1) does not have at the time of appointment or
183	183	maintain during service on the commission the qualifications
184	184	required by Section 14.053;
185	185	(2) violates a prohibition provided by Section 14.054
186	186	or by Subchapter D;
187	187	(3) cannot discharge the commissioner's duties for a
188	188	substantial part of the term for which the commissioner is
189	189	appointed because of illness or disability; or
190	190	(4) is absent from more than half of the regularly
191	191	scheduled commission meetings that the commissioner is eligible to
192	192	attend during a calendar year unless the absence is excused by
193	193	majority vote of the commission.
194	194	(b) The validity of an action of the commission is not
195	195	affected by the fact that the action is taken when a ground for
196	196	removal of a commissioner exists.
197	197	(c) If the executive director has knowledge that a potential
198	198	ground for removal exists, the executive director shall notify the
199	199	presiding officer of the commission of the potential ground. The
200	200	presiding officer shall then notify the governor and the attorney
201	201	general that a potential ground for removal exists. If the
202	202	potential ground for removal involves the presiding officer, the
203	203	executive director shall notify the next highest officer of the
204	204	commission, who shall notify the governor and the attorney general
205	205	that a potential ground for removal exists.
206	206	Sec. 14.056. PROHIBITION ON SEEKING ANOTHER OFFICE. A
207	207	person may not seek nomination or election to another civil office
208	208	of this state or of the United States while serving as a
209	209	commissioner. If a commissioner files for nomination or election
210	210	to another civil office of this state or of the United States, the
211	211	person's office as commissioner immediately becomes vacant, and the
212	212	governor shall appoint a successor.
213	213	Sec. 14.057. EFFECT OF VACANCY. A vacancy or
214	214	disqualification does not prevent the remaining commissioner or
215	215	commissioners from exercising the powers of the commission.
216	216	Sec. 14.058. COMPENSATION. The annual salary of the
217	217	commissioners is determined by the legislature.
218	218	Sec. 14.059. MEETINGS. The commission shall hold meetings
219	219	at its office and at other convenient places in this state as
220	220	expedient and necessary for the proper performance of the
221	221	commission's duties.
222	222	Sec. 14.060. TRAINING PROGRAM FOR COMMISSIONERS. (a)
223	223	Before a commissioner may assume the commissioner's duties and
224	224	before the commissioner may be confirmed by the senate, the
225	225	commissioner must complete at least one course of the training
226	226	program established under this section.
227	227	(b) A training program established under this section shall
228	228	provide information to the commissioner regarding:
229	229	(1) the enabling legislation that created the
230	230	commission and its policymaking body to which the commissioner is
231	231	appointed to serve;
232	232	(2) the programs operated by the commission;
233	233	(3) the role and functions of the commission;
234	234	(4) the rules of the commission with an emphasis on the
235	235	rules that relate to disciplinary and investigatory authority;
236	236	(5) the current budget for the commission;
237	237	(6) the results of the most recent formal audit of the
238	238	commission;
239	239	(7) the requirements of Chapters 551, 552, and 2001,
240	240	Government Code;
241	241	(8) the requirements of the conflict of interest laws
242	242	and other laws relating to public officials; and
243	243	(9) any applicable ethics policies adopted by the
244	244	commission or the Texas Ethics Commission.
245	245	(c) A person who is appointed to the commission is entitled
246	246	to reimbursement, as provided by the General Appropriations Act,
247	247	for the travel expenses incurred in attending the training program
248	248	regardless of whether the attendance at the program occurs before
249	249	or after the person qualifies for office.
250	250	Sec. 14.061. FORMER COMMISSIONER: LOBBYING RESTRICTED. A
251	251	former member of the commission may not, before the first
252	252	anniversary of the date the member ceases to be a member of the
253	253	commission, engage in an activity before the commission that
254	254	requires registration under Chapter 305, Government Code.
255	255	SUBCHAPTER C. COMMISSION PERSONNEL
256	256	Sec. 14.101. COMMISSION EMPLOYEES. The commission shall
257	257	employ:
258	258	(1) an executive director; and
259	259	(2) officers and other employees the commission
260	260	considers necessary to administer this subtitle.
261	261	Sec. 14.102. DUTIES OF EMPLOYEES. The commission shall
262	262	develop and implement policies that clearly separate the
263	263	policymaking responsibilities of the commission and the management
264	264	responsibilities of the commission employees.
265	265	Sec. 14.103. DUTIES OF EXECUTIVE DIRECTOR. The executive
266	266	director is responsible for the daily operations of the commission
267	267	and shall coordinate the activities of commission employees.
268	268	Sec. 14.104. CAREER LADDER PROGRAM; PERFORMANCE
269	269	EVALUATIONS; MERIT PAY. (a) The executive director or the
270	270	executive director's designee shall develop an intra-agency career
271	271	ladder program that addresses opportunities for mobility and
272	272	advancement for commission employees. The program shall require
273	273	intra-agency posting of each position concurrently with any public
274	274	posting.
275	275	(b) The executive director or the executive director's
276	276	designee shall develop a system of annual performance evaluations
277	277	that are based on documented employee performance. Merit pay for
278	278	commission employees must be based on the system established under
279	279	this subsection.
280	280	Sec. 14.105. EQUAL EMPLOYMENT OPPORTUNITY POLICY
281	281	STATEMENT. (a) The executive director or the executive director's
282	282	designee shall prepare and maintain a written policy statement to
283	283	ensure implementation of a program of equal employment opportunity
284	284	under which all personnel transactions are made without regard to
285	285	race, color, disability, sex, religion, age, or national origin.
286	286	(b) The policy statement under Subsection (a) must include:
287	287	(1) personnel policies, including policies related to
288	288	recruitment, evaluation, selection, appointment, training, and
289	289	promotion of personnel, that are in compliance with the
290	290	requirements of Chapter 21, Labor Code;
291	291	(2) a comprehensive analysis of the commission
292	292	workforce that meets federal and state guidelines;
293	293	(3) procedures by which a determination can be made
294	294	about the extent of underuse in the commission workforce of all
295	295	persons for whom federal or state guidelines encourage a more
296	296	equitable balance; and
297	297	(4) reasonable methods to appropriately address the
298	298	underuse.
299	299	(c) A policy statement prepared under Subsection (b) must:
300	300	(1) cover an annual period;
301	301	(2) be updated at least annually;
302	302	(3) be reviewed by the Civil Rights Division of the
303	303	Texas Workforce Commission for compliance with Subsection (b)(1);
304	304	and
305	305	(4) be filed with the governor's office.
306	306	(d) The governor's office shall deliver a biennial report to
307	307	the legislature based on the information received under Subsection
308	308	(c). The report may be made separately or as a part of other
309	309	biennial reports to the legislature.
310	310	SUBCHAPTER D. PROHIBITED RELATIONSHIPS AND ACTIVITIES
311	311	Sec. 14.151. REGISTERED LOBBYIST. A person required to
312	312	register as a lobbyist under Chapter 305, Government Code, because
313	313	of the person's activities for compensation on behalf of a
314	314	profession related to the operation of the commission may not serve
315	315	as a commissioner.
316	316	Sec. 14.152. CONFLICT OF INTEREST. (a) A person is not
317	317	eligible for appointment as a commissioner or employment as
318	318	executive director of the commission if:
319	319	(1) the person serves on the board of directors of a
320	320	company that supplies utility-related services or utility-related
321	321	products to regulated or unregulated retail public utilities; or
322	322	(2) the person or the person's spouse:
323	323	(A) is employed by or participates in the
324	324	management of a business entity or other organization that is
325	325	regulated by or receives funds from the commission;
326	326	(B) directly or indirectly owns or controls more
327	327	than a 10 percent interest in:
328	328	(i) a business entity or other organization
329	329	that is regulated by or receives funds from the commission; or
330	330	(ii) a retail public utility competitor or
331	331	supplier or another entity affected by a commission decision in a
332	332	manner other than by the setting of rates for that class of
333	333	customer;
334	334	(C) uses or receives a substantial amount of
335	335	tangible goods, services, or funds from the commission, other than
336	336	compensation or reimbursement authorized by law for commission
337	337	membership, attendance, or expenses; or
338	338	(D) notwithstanding Paragraph (B), has an
339	339	interest in a mutual fund or retirement fund in which more than 10
340	340	percent of the fund's holdings at the time of appointment is in a
341	341	single retail public utility, retail public utility competitor, or
342	342	retail public utility supplier in this state and the person does not
343	343	disclose this information to the governor, senate, commission, or
344	344	other entity, as appropriate.
345	345	(b) A person otherwise ineligible because of Subsection
346	346	(a)(2)(B) may be appointed to the commission and serve as a
347	347	commissioner or may be employed as executive director if the
348	348	person:
349	349	(1) notifies the attorney general and commission that
350	350	the person is ineligible because of Subsection (a)(2)(B); and
351	351	(2) divests the person or the person's spouse of the
352	352	ownership or control:
353	353	(A) before beginning service or employment; or
354	354	(B) if the person is already serving or employed,
355	355	within a reasonable time.
356	356	Sec. 14.153. RELATIONSHIP WITH TRADE ASSOCIATION. A person
357	357	may not serve as a commissioner or be a commission employee who is
358	358	employed in a "bona fide executive, administrative, or professional
359	359	capacity," as that phrase is used for purposes of establishing an
360	360	exemption to the overtime provisions of the federal Fair Labor
361	361	Standards Act of 1938 (29 U.S.C. Section 201 et seq.), if the person
362	362	is:
363	363	(1) an officer, employee, or paid consultant of a
364	364	trade association; or
365	365	(2) the spouse of an officer, manager, or paid
366	366	consultant of a trade association.
367	367	Sec. 14.154. PROHIBITED ACTIVITIES. (a) During the period
368	368	of service with the commission, a commissioner or commission
369	369	employee may not:
370	370	(1) have a pecuniary interest, including an interest
371	371	as an officer, director, partner, owner, employee, attorney, or
372	372	consultant, in:
373	373	(A) a retail public utility or affiliate; or
374	374	(B) a person a significant portion of whose
375	375	business consists of furnishing goods or services to retail public
376	376	utilities or affiliates; or
377	377	(2) accept a gift, gratuity, or entertainment from:
378	378	(A) a retail public utility, affiliate, or direct
379	379	competitor of a retail public utility;
380	380	(B) a person a significant portion of whose
381	381	business consists of furnishing goods or services to retail public
382	382	utilities, affiliates, or direct competitors of retail public
383	383	utilities; or
384	384	(C) an agent, representative, attorney,
385	385	employee, officer, owner, director, or partner of a person
386	386	described by Paragraph (A) or (B).
387	387	(b) A commissioner or a commission employee may not directly
388	388	or indirectly solicit, request from, or suggest or recommend to a
389	389	retail public utility or an agent, representative, attorney,
390	390	employee, officer, owner, director, or partner of a retail public
391	391	utility the appointment to a position or the employment of a person
392	392	by the retail public utility or affiliate.
393	393	(c) A person may not give or offer to give a gift, gratuity,
394	394	employment, or entertainment to a commissioner or commission
395	395	employee if that person is:
396	396	(1) a retail public utility, affiliate, or direct
397	397	competitor of a retail public utility;
398	398	(2) a person who furnishes goods or services to a
399	399	retail public utility, affiliate, or direct competitor of a retail
400	400	public utility; or
401	401	(3) an agent, representative, attorney, employee,
402	402	officer, owner, director, or partner of a person described by
403	403	Subdivision (1) or (2).
404	404	(d) A retail public utility, affiliate, or direct
405	405	competitor of a retail public utility or a person furnishing goods
406	406	or services to a retail public utility, affiliate, or direct
407	407	competitor of a retail public utility may not aid, abet, or
408	408	participate with a commissioner, commission employee, or former
409	409	commission employee in conduct that violates Subsection (a)(2) or
410	410	(c).
411	411	(e) Subsection (a)(1) does not apply to an interest in a
412	412	nonprofit group or association, other than a trade association,
413	413	that is solely supported by gratuitous contributions of money,
414	414	property, or services.
415	415	(f) It is not a violation of this section if a commissioner
416	416	or commission employee, on becoming the owner of stocks, bonds, or
417	417	another pecuniary interest in a retail public utility, affiliate,
418	418	or direct competitor of a retail public utility otherwise than
419	419	voluntarily, informs the commission and the attorney general of the
420	420	ownership and divests the ownership or interest within a reasonable
421	421	time.
422	422	(g) It is not a violation of this section if a pecuniary
423	423	interest is held indirectly by ownership of an interest in a
424	424	retirement system, institution, or fund that in the normal course
425	425	of business invests in diverse securities independently of the
426	426	control of the commissioner or commission employee.
427	427	(h) This section does not apply to a contract for a retail
428	428	public utility product or service or equipment for use of a retail
429	429	public utility product when a commissioner or commission employee
430	430	is acting as a consumer.
431	431	(i) In this section, a "pecuniary interest" includes
432	432	income, compensation, and payment of any kind, in addition to an
433	433	ownership interest.
434	434	Sec. 14.155. PROHIBITION ON EMPLOYMENT OR REPRESENTATION.
435	435	(a) A commissioner, a commission employee, or an employee of the
436	436	State Office of Administrative Hearings involved in hearing cases
437	437	for the commission may not:
438	438	(1) be employed by a retail public utility that was in
439	439	the scope of the commissioner's or employee's official
440	440	responsibility while the commissioner or employee was associated
441	441	with the commission or the State Office of Administrative Hearings;
442	442	or
443	443	(2) represent a person before the commission or State
444	444	Office of Administrative Hearings or a court in a matter:
445	445	(A) in which the commissioner or employee was
446	446	personally involved while associated with the commission or State
447	447	Office of Administrative Hearings; or
448	448	(B) that was within the commissioner's or
449	449	employee's official responsibility while the commissioner or
450	450	employee was associated with the commission or State Office of
451	451	Administrative Hearings.
452	452	(b) The prohibition of Subsection (a)(1) applies until the:
453	453	(1) second anniversary of the date the commissioner
454	454	ceases to serve as a commissioner; and
455	455	(2) first anniversary of the date the employee's
456	456	employment with the commission or State Office of Administrative
457	457	Hearings ceases.
458	458	(c) The prohibition of Subsection (a)(2) applies while a
459	459	commissioner, commission employee, or employee of the State Office
460	460	of Administrative Hearings involved in hearing utility cases is
461	461	associated with the commission or State Office of Administrative
462	462	Hearings and at any time after.
463	463	Sec. 14.156. QUALIFICATIONS AND STANDARDS OF CONDUCT
464	464	INFORMATION. The executive director or the executive director's
465	465	designee shall provide to commissioners and commission employees as
466	466	often as necessary information regarding their:
467	467	(1) qualifications for office or employment under this
468	468	chapter; and
469	469	(2) responsibilities under applicable laws relating
470	470	to standards of conduct for state officers and employees.
471	471	SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND REPORTS
472	472	Sec. 14.201. PUBLIC INTEREST INFORMATION. (a) The
473	473	commission shall prepare information of public interest describing
474	474	the functions of the commission and the commission's procedures by
475	475	which a complaint is filed with and resolved by the commission. The
476	476	commission shall make the information available to the public and
477	477	appropriate state agencies.
478	478	(b) The commission by rule shall establish methods by which
479	479	consumers and service recipients are notified of the name, mailing
480	480	address, and telephone number of the commission for the purpose of
481	481	directing complaints to the commission.
482	482	Sec. 14.202. PUBLIC PARTICIPATION. (a) The commission
483	483	shall develop and implement policies that provide the public with a
484	484	reasonable opportunity to appear before the commission and to speak
485	485	on any issue under the jurisdiction of the commission.
486	486	(b) The commission shall comply with federal and state laws
487	487	related to program and facility accessibility.
488	488	(c) The commission shall prepare and maintain a written plan
489	489	that describes how a person who does not speak English may be
490	490	provided reasonable access to the commission's programs and
491	491	services.
492	492	Sec. 14.203. BIENNIAL REPORT. Not later than January 15 of
493	493	each odd-numbered year, the commission shall prepare a written
494	494	report that includes suggestions regarding modification and
495	495	improvement of the commission's statutory authority and for the
496	496	improvement of retail public utility regulation in general that the
497	497	commission considers appropriate for protecting and furthering the
498	498	interest of the public.
499	499	Sec. 14.204. INTERNET FOR HEARINGS AND MEETINGS. The
500	500	commission shall make publicly accessible without charge live
501	501	Internet video of all public hearings and meetings the commission
502	502	holds for viewing from the commission's Internet website. The
503	503	commission may recover the costs of administering this section by
504	504	imposing an assessment against a retail public utility.
505	505	CHAPTER 14A. OFFICE OF WATER PUBLIC UTILITY COUNSEL
506	506	SUBCHAPTER A. GENERAL PROVISIONS; POWERS AND DUTIES
507	507	Sec. 14A.001. OFFICE OF WATER PUBLIC UTILITY COUNSEL. The
508	508	independent office of water public utility counsel represents the
509	509	interests of residential and small commercial consumers.
510	510	Sec. 14A.002. DEFINITIONS. In this chapter:
511	511	(1) "Commission" has the meaning assigned by Section
512	512	14.002.
513	513	(2) "Counsellor" means the water public utility
514	514	counsel.
515	515	(3) "Office" means the Office of Water Public Utility
516	516	Counsel.
517	517	(4) "Proceeding" has the meaning assigned by Section
518	518	13.002.
519	519	Sec. 14A.003. APPLICATION OF SUNSET ACT. The Office of
520	520	Water Public Utility Counsel is subject to Chapter 325, Government
521	521	Code (Texas Sunset Act). Unless continued in existence as provided
522	522	by that chapter, the office is abolished September 1, 2035.
523	523	Sec. 14A.004. OFFICE POWERS AND DUTIES. The office has the
524	524	powers and duties assigned by Section 13.017.
525	525	Sec. 14A.005. ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.
526	526	(a) The counsellor shall develop and implement a policy to
527	527	encourage the use of appropriate alternative dispute resolution
528	528	procedures under Chapter 2009, Government Code, to assist in the
529	529	resolution of internal disputes under the office's jurisdiction.
530	530	(b) The office's procedures relating to alternative dispute
531	531	resolution must conform, to the extent possible, to any model
532	532	guidelines issued by the State Office of Administrative Hearings
533	533	for the use of alternative dispute resolution by state agencies.
534	534	(c) The counsellor shall designate a trained person to:
535	535	(1) coordinate the implementation of the policy
536	536	adopted under Subsection (a);
537	537	(2) serve as a resource for any training needed to
538	538	implement the procedures for alternative dispute resolution; and
539	539	(3) collect data concerning the effectiveness of those
540	540	procedures, as implemented by the office.
541	541	Sec. 14A.006. COMPLAINTS. (a) The office shall maintain a
542	542	system to promptly and efficiently act on complaints filed with the
543	543	office that the office has the authority to resolve. The office
544	544	shall maintain information about parties to the complaint, the
545	545	subject matter of the complaint, a summary of the results of the
546	546	review or investigation of the complaint, and its disposition.
547	547	(b) The office shall make information available describing
548	548	its procedures for complaint investigation and resolution.
549	549	(c) The office shall periodically notify the complaint
550	550	parties of the status of the complaint until final disposition.
551	551	Sec. 14A.007. TECHNOLOGY POLICY. The counsellor shall
552	552	implement a policy requiring the office to use appropriate
553	553	technological solutions to improve the office's ability to perform
554	554	its functions. The policy must ensure that the public is able to
555	555	interact with the office on the Internet.
556	556	SUBCHAPTER B. WATER PUBLIC UTILITY COUNSEL
557	557	Sec. 14A.021. APPOINTMENT; TERM. (a) The chief executive
558	558	of the office is the counsellor.
559	559	(b) The counsellor is appointed by the governor with the
560	560	advice and consent of the senate.
561	561	(c) The appointment of the counsellor shall be made without
562	562	regard to the race, color, disability, sex, religion, age, or
563	563	national origin of the appointee.
564	564	(d) The counsellor serves a two-year term that expires on
565	565	February 1 of the final year of the term.
566	566	Sec. 14A.022. QUALIFICATIONS. (a) The counsellor must:
567	567	(1) be licensed to practice law in this state and a
568	568	resident of this state;
569	569	(2) have demonstrated a strong commitment to and
570	570	involvement in efforts to safeguard the rights of the public; and
571	571	(3) possess the knowledge and experience necessary to
572	572	practice effectively in utility proceedings.
573	573	(b) A person is not eligible for appointment as counsellor
574	574	if:
575	575	(1) the person or the person's spouse:
576	576	(A) is employed by or participates in the
577	577	management of a business entity or other organization that is
578	578	regulated by or receives funds from the commission;
579	579	(B) directly or indirectly owns or controls more
580	580	than a 10 percent interest or a pecuniary interest with a value
581	581	exceeding $10,000 in:
582	582	(i) a business entity or other organization
583	583	that is regulated by or receives funds from the commission or the
584	584	office; or
585	585	(ii) a retail public utility competitor,
586	586	retail public utility supplier, or other entity affected by a
587	587	commission decision in a manner other than by the setting of rates
588	588	for that class of customer;
589	589	(C) uses or receives a substantial amount of
590	590	tangible goods, services, or funds from the commission or the
591	591	office, other than compensation or reimbursement authorized by law
592	592	for service as counsellor or for commission membership, attendance,
593	593	or expenses; or
594	594	(D) notwithstanding Paragraph (B), has an
595	595	interest in a mutual fund or retirement fund in which more than 10
596	596	percent of the fund's holdings is in a single retail public utility,
597	597	retail public utility competitor, or retail public utility supplier
598	598	in this state and the person does not disclose this information to
599	599	the governor, senate, or other entity, as appropriate; or
600	600	(2) the person is not qualified to serve under Section
601	601	14A.042.
602	602	(c) A person otherwise ineligible because of Subsection
603	603	(b)(1)(B) may be appointed and serve as counsellor if the person:
604	604	(1) notifies the attorney general and commission that
605	605	the person is ineligible because of Subsection (b)(1)(B); and
606	606	(2) divests the person or the person's spouse of the
607	607	ownership or control:
608	608	(A) before beginning service; or
609	609	(B) if the person is already serving, within a
610	610	reasonable time.
611	611	Sec. 14A.023. GROUNDS FOR REMOVAL. (a) It is a ground for
612	612	removal from office if the counsellor:
613	613	(1) does not have at the time of taking office or
614	614	maintain during service as counsellor the qualifications required
615	615	by Section 14A.022;
616	616	(2) is ineligible for service as counsellor under
617	617	Section 14A.022, 14A.042, or 14A.043; or
618	618	(3) cannot discharge the counsellor's duties for a
619	619	substantial part of the term for which the counsellor is appointed
620	620	because of illness or disability.
621	621	(b) The validity of an action of the office is not affected
622	622	by the fact that the action is taken when a ground for removal of the
623	623	counsellor exists.
624	624	(c) If an employee has knowledge that a potential ground for
625	625	removal of the counsellor exists, the employee shall notify the
626	626	next highest ranking employee of the office, other than the
627	627	counsellor, who shall then notify the governor and the attorney
628	628	general that a potential ground for removal exists.
629	629	Sec. 14A.024. PROHIBITED ACTS. (a) The counsellor may not
630	630	have a direct or indirect interest in a retail public utility
631	631	company regulated under this subtitle, its parent, or its
632	632	subsidiary companies, corporations, or cooperatives or a retail
633	633	public utility competitor, retail public utility supplier, or other
634	634	entity affected in a manner other than by the setting of rates for
635	635	that class of customer.
636	636	(b) The prohibition under Subsection (a) applies during the
637	637	period of the counsellor's service.
638	638	SUBCHAPTER C. OFFICE PERSONNEL
639	639	Sec. 14A.041. PERSONNEL. The counsellor may employ
640	640	lawyers, economists, engineers, consultants, statisticians,
641	641	accountants, clerical staff, and other employees as the counsellor
642	642	considers necessary to carry out this chapter.
643	643	Sec. 14A.042. CONFLICT OF INTEREST. (a) In this section,
644	644	"Texas trade association" means a cooperative and voluntarily
645	645	joined statewide association of business or professional
646	646	competitors in this state designed to assist its members and its
647	647	industry or profession in dealing with mutual business or
648	648	professional problems and in promoting their common interest.
649	649	(b) A person may not serve as counsellor or be an employee of
650	650	the office employed in a "bona fide executive, administrative, or
651	651	professional capacity," as that phrase is used for purposes of
652	652	establishing an exemption to the overtime provisions of the federal
653	653	Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if
654	654	the person is:
655	655	(1) an officer, employee, or paid consultant of a
656	656	Texas trade association in the field of retail public utilities; or
657	657	(2) the spouse of an officer, manager, or paid
658	658	consultant of a Texas trade association in the field of retail
659	659	public utilities.
660	660	(c) A person may not serve as counsellor or act as the
661	661	general counsel to the office if the person is required to register
662	662	as a lobbyist under Chapter 305, Government Code, because of the
663	663	person's activities for compensation on behalf of a profession
664	664	related to the operation of the office.
665	665	Sec. 14A.043. PROHIBITION ON EMPLOYMENT OR REPRESENTATION.
666	666	(a) A former counsel may not make any communication to or
667	667	appearance before the commission or an officer or employee of the
668	668	commission before the second anniversary of the date the person
669	669	ceases to serve as counsel if the communication or appearance is
670	670	made:
671	671	(1) on behalf of another person in connection with any
672	672	matter on which the person seeks official action; or
673	673	(2) with the intent to influence a commission decision
674	674	or action, unless acting on the person's own behalf and without
675	675	remuneration.
676	676	(b) A former counsel may not represent any person or receive
677	677	compensation for services rendered on behalf of any person
678	678	regarding a matter before the commission before the second
679	679	anniversary of the date the person ceases to serve as counsel.
680	680	(c) A person commits an offense if the person violates this
681	681	section. An offense under this subsection is a Class A misdemeanor.
682	682	(d) An employee of the office may not:
683	683	(1) be employed by a retail public utility that was in
684	684	the scope of the employee's official responsibility while the
685	685	employee was associated with the office; or
686	686	(2) represent a person before the commission or a
687	687	court in a matter:
688	688	(A) in which the employee was personally involved
689	689	while associated with the office; or
690	690	(B) that was within the employee's official
691	691	responsibility while the employee was associated with the office.
692	692	(e) The prohibition of Subsection (d)(1) applies until the
693	693	first anniversary of the date the employee's employment with the
694	694	office ceases.
695	695	(f) The prohibition of Subsection (d)(2) applies while an
696	696	employee of the office is associated with the office and at any time
697	697	after.
698	698	(g) For purposes of this section, "person" includes a water
699	699	cooperative.
700	700	Sec. 14A.044. CAREER LADDER PROGRAM; PERFORMANCE
701	701	EVALUATIONS; MERIT PAY. (a) The counsellor or the counsellor's
702	702	designee shall develop an intra-agency career ladder program that
703	703	addresses opportunities for mobility and advancement for office
704	704	employees. The program shall require intra-agency postings of each
705	705	position concurrently with any public posting.
706	706	(b) The counsellor or the counsellor's designee shall
707	707	develop a system of annual performance evaluations that are based
708	708	on documented employee performance. Merit pay for office employees
709	709	must be based on the system established under this subsection.
710	710	Sec. 14A.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY
711	711	STATEMENT. (a) The counsellor or the counsellor's designee shall
712	712	prepare and maintain a written policy statement to ensure
713	713	implementation of a program of equal employment opportunity under
714	714	which all personnel transactions are made without regard to race,
715	715	color, disability, sex, religion, age, or national origin.
716	716	(b) The policy statement under Subsection (a) must include:
717	717	(1) personnel policies, including policies related to
718	718	recruitment, evaluation, selection, appointment, training, and
719	719	promotion of personnel, that are in compliance with the
720	720	requirements of Chapter 21, Labor Code;
721	721	(2) a comprehensive analysis of the office workforce
722	722	that meets federal and state guidelines;
723	723	(3) procedures by which a determination can be made
724	724	about the extent of underuse in the office workforce of all persons
725	725	for whom federal or state guidelines encourage a more equitable
726	726	balance; and
727	727	(4) reasonable methods to appropriately address the
728	728	underuse.
729	729	(c) A policy statement prepared under Subsection (b) must:
730	730	(1) cover an annual period;
731	731	(2) be updated at least annually;
732	732	(3) be reviewed by the Civil Rights Division of the
733	733	Texas Workforce Commission for compliance with Subsection (b)(1);
734	734	and
735	735	(4) be filed with the governor's office.
736	736	(d) The governor's office shall deliver a biennial report to
737	737	the legislature based on the information received under Subsection
738	738	(c). The report may be made separately or as a part of other
739	739	biennial reports to the legislature.
740	740	Sec. 14A.046. QUALIFICATIONS AND STANDARDS OF CONDUCT
741	741	INFORMATION. The office shall provide to office employees as often
742	742	as necessary information regarding their:
743	743	(1) qualifications for employment under this chapter;
744	744	and
745	745	(2) responsibilities under applicable laws relating
746	746	to standards of conduct for employees.
747	747	SUBCHAPTER D. PUBLIC INTEREST INFORMATION AND REPORTS
748	748	Sec. 14A.061. PUBLIC INTEREST INFORMATION. The office
749	749	shall prepare information of public interest describing the
750	750	functions of the office. The office shall make the information
751	751	available to the public and appropriate state agencies.
752	752	Sec. 14A.062. PUBLIC PARTICIPATION. (a) The office shall
753	753	comply with federal and state laws related to program and facility
754	754	accessibility.
755	755	(b) The office shall prepare and maintain a written plan
756	756	that describes how a person who does not speak English may be
757	757	provided reasonable access to the office's programs and services.
758	758	Sec. 14A.063. ANNUAL REPORT. The office shall prepare
759	759	annually a report on the office's activities during the preceding
760	760	year and submit the report to the standing legislative committees
761	761	that have jurisdiction over the office, the house appropriations
762	762	committee, and the senate finance committee. At a minimum, the
763	763	report must include:
764	764	(1) a list of the types of activities conducted by the
765	765	office and the time spent by the office on each activity;
766	766	(2) the number of hours billed by the office for
767	767	representing residential or small commercial consumers in
768	768	proceedings;
769	769	(3) the number of staff positions and the type of work
770	770	performed by each position; and
771	771	(4) the office's rate of success in representing
772	772	residential or small commercial consumers in appealing commission
773	773	decisions.
774	774	Sec. 14A.064. PUBLIC HEARING. (a) The office annually
775	775	shall conduct a public hearing to assist the office in developing a
776	776	plan of priorities and to give the public, including residential
777	777	and small commercial consumers, an opportunity to comment on the
778	778	office's functions and effectiveness.
779	779	(b) A public hearing held under this section is not subject
780	780	to Chapter 551, Government Code.
781	781	(c) The office shall file notice of a public hearing held
782	782	under this section with the secretary of state for publication in
783	783	the Texas Register.
784	784	SECTION 6. Section 49.352(c), Water Code, is amended to
785	785	read as follows:
786	786	(c) For purposes of this section, a municipality may obtain
787	787	single certification in the manner provided by Section 13.255,
788	788	except that the municipality may file an application with the Water
789	789	Public Utility Commission [of Texas] to grant single certification
790	790	immediately after the municipality provides notice of intent to
791	791	provide service as required by Section 13.255(b).
792	792	SECTION 7. Section 2003.049, Government Code, is amended by
793	793	amending Subsection (a) and adding Subsection (a-1) to read as
794	794	follows:
795	795	(a) The office shall perform contested case hearings for:
796	796	(1) the Public Utility Commission of Texas as
797	797	prescribed by the Public Utility Regulatory Act of 1995 and other
798	798	applicable law; and
799	799	(2) the Water Public Utility Commission as prescribed
800	800	by Subtitle B, Title 2, Water Code.
801	801	(a-1) In this section, "commission" means the Public
802	802	Utility Commission of Texas or the Water Public Utility Commission.
803	803	SECTION 8. Section 7201.004(b), Special District Local Laws
804	804	Code, is amended to read as follows:
805	805	(b) This section does not apply to:
806	806	(1) rules or regulations concerning potable water
807	807	quality standards; or
808	808	(2) conflicts relating to service areas or
809	809	certificates issued to the corporation or district by the Water
810	810	Public Utility Commission or a predecessor agency [of Texas or the
811	811	Texas Commission on Environmental Quality].
812	812	SECTION 9. Section 7201.005(c), Special District Local Laws
813	813	Code, is amended to read as follows:
814	814	(c) District boundaries may be modified in accordance with
815	815	Chapters 13 and 49, Water Code, except that the boundaries must
816	816	include all territory in any area included under a certificate of
817	817	convenience and necessity issued by the Water Public Utility
818	818	Commission or a predecessor agency [of Texas or the Texas
819	819	Commission on Environmental Quality to the district].
820	820	SECTION 10. Section 7201.102, Special District Local Laws
821	821	Code, is amended to read as follows:
822	822	Sec. 7201.102. PROVISION OF SERVICE. The district shall at
823	823	all times operate and construct necessary improvements within the
824	824	certificated areas established by the Water Public Utility
825	825	Commission or a predecessor agency [of Texas or the Texas
826	826	Commission on Environmental Quality] to provide uninterrupted,
827	827	continuous, and adequate service to existing and future customers
828	828	for water, sewer, and contract services.
829	829	SECTION 11. Section 7886.0101(4), Special District Local
830	830	Laws Code, is amended to read as follows:
831	831	(4) "Utility commission" means the Water Public
832	832	Utility Commission [of Texas].
833	833	SECTION 12. Section 7958.0101(6), Special District Local
834	834	Laws Code, is amended to read as follows:
835	835	(6) "Utility commission" means the Water Public
836	836	Utility Commission [of Texas].
837	837	SECTION 13. Section 8281.103, Special District Local Laws
838	838	Code, is amended to read as follows:
839	839	Sec. 8281.103. LIMITATION ON PROVIDING WATER TO CERTAIN
840	840	USERS. Notwithstanding any other provision of this chapter, the
841	841	district may not compete with the City of Mabank in providing water
842	842	to household users unless the district receives permission from the
843	843	Water Public Utility Commission [of Texas], with the consent of
844	844	that city.
845	845	SECTION 14. Section 8363.106(b), Special District Local
846	846	Laws Code, is amended to read as follows:
847	847	(b) In relation to a retail public utility that provides
848	848	water or sewer service to all or part of the area of the district
849	849	under a certificate of public convenience and necessity, the
850	850	district may exercise the powers given to a municipality provided
851	851	by Section 13.255, Water Code, as if the district were a
852	852	municipality that had annexed the area of the district. The Water
853	853	Public Utility Commission [of Texas] shall grant single
854	854	certification as to the city as provided by Section 13.255(c),
855	855	Water Code, in the event that the district applies for the
856	856	certification on the city's behalf in the manner provided by
857	857	Section 13.255(b), Water Code.
858	858	SECTION 15. Section 8363.251(a), Special District Local
859	859	Laws Code, is amended to read as follows:
860	860	(a) The city may dissolve the district by ordinance after
861	861	provision is made for all debts incurred by the district if one or
862	862	more of the following does not occur:
863	863	(1) on or before the 90th day after the effective date
864	864	of the Act enacting this chapter, the city receives one or more
865	865	petitions requesting annexation of all territory in the district
866	866	remaining in the extraterritorial jurisdiction of the city;
867	867	(2) on or before the last day of the ninth month after
868	868	the effective date of the Act enacting this chapter, the city adopts
869	869	one or more ordinances annexing all territory in the district
870	870	remaining in the city's extraterritorial jurisdiction;
871	871	(3) on or before the last day of the third year after
872	872	the effective date of the Act enacting this chapter, the Water
873	873	Public Utility Commission [of Texas] issues an order approving the
874	874	sale and transfer of a certificate of public convenience and
875	875	necessity authorizing the city to provide retail water service to
876	876	territory in the district; or
877	877	(4) by the end of the fifth year after the effective
878	878	date of the Act enacting this chapter, the district has completed
879	879	construction of internal streets and water and sanitary sewer
880	880	facilities sufficient to serve at least 100 residential lots in the
881	881	district.
882	882	SECTION 16. Section 8801.201, Special District Local Laws
883	883	Code, is amended to read as follows:
884	884	Sec. 8801.201. APPEAL OF SURFACE WATER RATES. (a) A person
885	885	who is required to convert to surface water under this chapter and
886	886	who purchases that water supply wholesale from a political
887	887	subdivision as defined by Section 12.013(b), Water Code, may appeal
888	888	to the Water Public Utility Commission [of Texas] the rates the
889	889	political subdivision charges to the person. Chapter 12, Water
890	890	Code, and rules adopted under that chapter apply to an appeal under
891	891	this section.
892	892	(b) The Water Public Utility Commission [of Texas] shall
893	893	hear the appeal not later than the 180th day after the date the
894	894	appeal is filed.
895	895	(c) The Water Public Utility Commission [of Texas] shall
896	896	issue a final decision on the appeal not later than the 60th day
897	897	after the date the hearing ends.
898	898	SECTION 17. Section 8803.151(1), Special District Local
899	899	Laws Code, is amended to read as follows:
900	900	(1) "Commission" means the Water Public Utility
901	901	Commission [of Texas].
902	902	SECTION 18. Section 8808.151(1), Special District Local
903	903	Laws Code, is amended to read as follows:
904	904	(1) "Commission" means the Water Public Utility
905	905	Commission [of Texas].
906	906	SECTION 19. Section 11002.151, Special District Local Laws
907	907	Code, is amended to read as follows:
908	908	Sec. 11002.151. DEFINITION. In this subchapter, "receiving
909	909	entity" means the entity that holds a certificate of convenience
910	910	and necessity issued by the Water Public Utility Commission [of
911	911	Texas] for the territory included in the district.
912	912	SECTION 20. Section 11.002(21), Water Code, is repealed.
913	913	SECTION 21. (a) On September 1, 2024, the following are
914	914	transferred from the Public Utility Commission of Texas to the
915	915	Water Public Utility Commission:
916	916	(1) the powers, duties, functions, programs, and
917	917	activities of the Public Utility Commission of Texas relating to
918	918	the economic regulation of water and sewer service, including the
919	919	issuance and transfer of certificates of convenience and necessity,
920	920	the determination of rates, and the administration of hearings and
921	921	proceedings involving those matters, as provided by this Act;
922	922	(2) any obligations and contracts of the Public
923	923	Utility Commission of Texas that are directly related to
924	924	implementing a power, duty, function, program, or activity
925	925	transferred under this Act; and
926	926	(3) all property and records in the custody of the
927	927	Public Utility Commission of Texas that are related to a power,
928	928	duty, function, program, or activity transferred under this Act and
929	929	all funds appropriated by the legislature for that power, duty,
930	930	function, program, or activity.
931	931	(b) The Public Utility Commission of Texas shall continue to
932	932	carry out that commission's duties related to the economic
933	933	regulation of water and sewer service under the law as it existed
934	934	immediately before the effective date of this Act until September
935	935	1, 2024, and the former law is continued in effect for that purpose.
936	936	(c) The Public Utility Commission of Texas and the Water
937	937	Public Utility Commission shall enter into a memorandum of
938	938	understanding that:
939	939	(1) identifies in detail the applicable powers and
940	940	duties that are transferred by this Act;
941	941	(2) establishes a plan for the identification and
942	942	transfer of the records, personnel, property, and unspent
943	943	appropriations of the Public Utility Commission of Texas that are
944	944	used for purposes of that commission's powers and duties directly
945	945	related to the economic regulation of water and sewer service; and
946	946	(3) establishes a plan for the transfer of all pending
947	947	applications, hearings, rulemaking proceedings, and orders
948	948	relating to the economic regulation of water and sewer service from
949	949	the Public Utility Commission of Texas to the Water Public Utility
950	950	Commission.
951	951	(d) The memorandum of understanding under this section:
952	952	(1) is not required to be adopted by rule; and
953	953	(2) must be completed by August 1, 2024.
954	954	(e) The executive directors of the Public Utility
955	955	Commission of Texas and the Water Public Utility Commission may
956	956	agree in the memorandum of understanding under this section to
957	957	transfer to the Water Public Utility Commission any personnel of
958	958	the Public Utility Commission of Texas whose functions
959	959	predominantly involve powers, duties, obligations, functions, and
960	960	activities related to the economic regulation of water and sewer
961	961	service.
962	962	(f) On or after September 1, 2023, the Office of Water
963	963	Public Utility Counsel may initiate or intervene in a contested
964	964	case before the Public Utility Commission of Texas that the office
965	965	would be entitled to initiate or intervene in if the case were
966	966	before the Water Public Utility Commission, as authorized by
967	967	Chapter 14A, Water Code, as added by this Act.
968	968	(g) The Public Utility Commission of Texas and the Water
969	969	Public Utility Commission shall appoint a transition team to
970	970	accomplish the purposes of this section. The transition team may
971	971	consult with the Office of Public Utility Counsel and the Office of
972	972	Water Public Utility Counsel to accomplish the purposes of this
973	973	section.
974	974	(h) A rule, form, policy, procedure, or decision of the
975	975	Public Utility Commission of Texas related to a power, duty,
976	976	function, program, or activity transferred under this Act continues
977	977	in effect as a rule, form, policy, procedure, or decision of the
978	978	Water Public Utility Commission and remains in effect until amended
979	979	or replaced by that agency. Notwithstanding any other law,
980	980	beginning September 1, 2023, the Water Public Utility Commission
981	981	may propose rules, forms, policies, and procedures related to a
982	982	function to be transferred to the Water Public Utility Commission
983	983	under this Act.
984	984	(i) The Public Utility Commission of Texas and the Water
985	985	Public Utility Commission shall adopt rules to implement the
986	986	changes in law made by this Act not later than September 1, 2025.
987	987	SECTION 22. This Act takes effect September 1, 2023.