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AN ACT
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relating to procedural requirements for the review of a contractual |
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rate charged for the furnishing of raw or treated water or water or |
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sewer service. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.013, Water Code, is amended by adding |
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Subsections (g), (h), (i), (j), (k), and (l) to read as follows: |
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(g) In a proceeding under this section or Chapter 11 to |
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review a rate charged under a written contract, the utility |
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commission may not hold a hearing on or otherwise prescribe just and |
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reasonable amounts to be charged under the contract unless the |
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utility commission determines that the amount charged under the |
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contract harms the public interest. A determination under this |
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subsection becomes final for purposes of appeal in the manner |
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provided by Section 2001.144, Government Code. |
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(h) A party adversely affected by a determination under |
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Subsection (g) may seek judicial review of the determination. |
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Judicial review of a determination under Subsection (g) shall be by |
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trial de novo. |
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(i) The utility commission shall abate proceedings on the |
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contract in the event of an appeal under Subsection (h) until the |
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entry of a final judicial determination that a rate charged under |
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the contract harms the public interest. |
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(j) Chapter 2001, Government Code, applies to an appeal |
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under Subsection (h). |
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(k) The utility commission shall, before holding a hearing |
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on or otherwise prescribing a just and reasonable rate to be charged |
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under the contract, allow the contracting parties to amend the |
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amount charged under the contract until at least 60 days after the |
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date: |
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(1) of a final judicial determination in an appeal |
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under Subsection (h) that a rate charged under the contract harms |
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the public interest; or |
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(2) the determination made under Subsection (g) became |
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final if a motion for rehearing was not filed on time. |
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(l) If the parties amend their contract under Subsection |
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(k), a party may challenge before the utility commission the rate |
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paid under the amended contract only: |
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(1) after the 5th anniversary of the date of the |
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contract amendment; or |
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(2) during a period agreed to by the parties that |
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begins after the 5th anniversary of the date of the contract |
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amendment and ends on or before the 25th anniversary of that date. |
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SECTION 2. Subchapter C, Chapter 13, Water Code, is amended |
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by adding Section 13.0431 to read as follows: |
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Sec. 13.0431. APPEALS BY RETAIL PUBLIC UTILITIES. (a) In |
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an appeal under Section 13.043(f) on the amount paid for water or |
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sewer service under a written contract, the utility commission may |
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not hold a hearing on or otherwise prescribe just and reasonable |
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amounts to be charged under the contract unless the utility |
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commission determines that the amount charged under the contract |
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harms the public interest. A determination under this subsection |
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becomes final for purposes of appeal in the manner provided by |
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Section 2001.144, Government Code. |
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(b) A party adversely affected by a determination under |
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Subsection (a) may seek judicial review of the determination. |
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Judicial review of a determination under Subsection (a) shall be by |
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trial de novo. |
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(c) The utility commission shall abate proceedings on the |
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contract in the event of an appeal under Subsection (b) until the |
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entry of a final judicial determination that a rate charged under |
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the contract harms the public interest. |
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(d) Chapter 2001, Government Code, applies to an appeal |
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under Subsection (b). |
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(e) The utility commission shall, before holding a hearing |
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on or otherwise prescribing a just and reasonable rate to be charged |
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under the contract, allow the contracting parties to amend the |
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amount charged under the contract until at least 60 days after the |
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date: |
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(1) of a final judicial determination in an appeal |
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under Subsection (b) that a rate charged under the contract harms |
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the public interest; or |
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(2) the determination made under Subsection (a) became |
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final if a motion for rehearing was not filed on time. |
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(f) If the parties amend their contract under Subsection |
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(e), a party may challenge before the utility commission the rate |
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paid under the amended contract only: |
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(1) after the 5th anniversary of the date of the |
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contract amendment; or |
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(2) during a period agreed to by the parties that |
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begins after the 5th anniversary of the date of the contract |
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amendment and ends on or before the 25th anniversary of that date. |
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SECTION 3. The changes in law made by this Act apply only to |
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a rate proceeding under Chapter 11, 12, or 13, Water Code, that |
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begins on or after the effective date of this Act. A rate |
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proceeding that begins before the effective date of this Act is |
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governed by the law in effect on the date the rate proceeding began, |
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and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 997 passed the Senate on |
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April 27, 2021, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 997 passed the House on |
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May 19, 2021, by the following vote: Yeas 143, Nays 0, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |