BILL ANALYSIS
H.B. 2387
By: Johnson (Sponsor)
Natural Resources
05-08-95
Senate Committee Report (Unamended)
BACKGROUND
Chapter 13 of the Water Code establishes state regulation of water
and utility service. The Texas Natural Resource Conservation
Commission was given the power to administer regulations created
under this code.
PURPOSE
As proposed, H.B. 2387 amends the regulation of water supply and
sewer service corporations providing retail water and sewer
utilities.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the applicable regulatory authority, either the Texas Natural
Resource Conservation Commission or the governing body of a
municipality, under SECTIONS 4 and 8 (Sections 13.187(d) and
13.304(c), Water Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subdivisions (11) and (24), Section 13.002, Water
Code, to redefine "member" and "water supply or sewer service
corporation."
SECTION 2. Amends Section 13.043(g), Water Code, to authorize an
applicant for a water supply or sewer service corporation
(corporation) to appeal to the Texas Natural Resource Conservation
Commission (commission) a decision of the corporation affecting the
amount to be paid to obtain service other than, rather than in
addition to, the regular membership or tap fees. Requires the
commission, in addition to factors specified under Subsection (j),
to determine, in an appeal brought under this subsection, whether
the amount paid by the applicant is consistent with the tariff of
the corporation and is related to the cost of installing on-site
and off-site facilities to provide service to the applicant.
Provides that a determination made by the commission on an appeal
is binding on all similarly situated applicants for service.
Prohibits the commission from considering other appeals on the same
issue until the applicable provisions of the tariff of the
corporation are amended.
SECTION 3. Amends Section 13.139(d), Water Code, to provide that
the capacity of a retail public utility is compared to the minimum
capacity requirements for public drinking water system, rather than
to the Texas Department of Health's minimum capacity requirements.
SECTION 4. Amends Section 13.187(d), Water Code, to prohibit two
or more utilities under common control and ownership from filing a
statement of intent to increase its rates more than once in a 12-month period except, among others, to implement a rate, rather than
an approved water purchase pass-through, adjustment provision
approved by the regulatory authority, by rule or ordinance, as
applicable.
SECTION 5. Amends Section 13.250(b), Water Code, to prohibit a
certificate holder or a person who possesses facilities used to
provide utility service from discontinuing, reducing, or impairing
service to all or part of a certified service area except, among
others, for nonpayment of charges for sewer service provided by
another retail public utility under a commission-ordered
arrangement between the two service providers, rather than only by
commission order.
SECTION 6. Amends Chapter 13G, Water Code, by adding Section
13.2502, as follows:
Sec. 13.2502. SERVICE EXTENSIONS BY WATER SUPPLY AND SEWER
SERVICE CORPORATION OR SPECIAL UTILITY DISTRICT. (a) Provides
that notwithstanding Section 13.250, a corporation or special
utility district (district) organized under Chapter 65 is not
required to extend retail water or utility service within the
certificated area of the corporation or district to a service
applicant in a subdivision if a corporation or district
documents that the subdivision developer failed to comply with
a specific policy; and the service applicant purchased the
property after the corporation or district gave a certain
notice.
(b) Provides that publication of a notice in a newspaper of
general circulation in each county in which the corporation
or district is certified for utility service of the
requirement to comply with the subdivision service extension
policy constitutes notice under this section. Requires the
notice to be published once a week for two consecutive weeks
on a biennial basis and contain specific information.
Requires the corporation or district to be able to provide
proof of publication through an affidavit of the publisher
of the newspaper that specifies each county in which the
newspaper is circulated.
(c) Authorizes a corporation or district to demonstrate that
a developer has been notified by an alternative to
publication of the notice including an agreement,
correspondence, or other documentation.
(d) Provides that this section does not limit or extend the
jurisdiction of the commission under Section 13.043(g).
(e) Defines "developer" and "service applicant."
SECTION 7. Amends Section 13.301(c), Water Code, to authorize the
executive director of the commission to request a hearing to
determine if the transaction will serve in the public interest if,
among others, there are concerns that the transaction may not serve
the public interest, after the application of considerations
provided by Section 13.246(c) for determining whether to grant a
certificate of convenience and necessity.
SECTION 8. Amends Section 13.304, Water Code, as follows:
Sec. 13.304. FORECLOSURE REPORT. (a) Created from existing
text.
(b) Provides that a financial institution that forecloses on
a utility or any part of the utility's facilities or
property that are used to provide utility service is not
required to provide the 120-day notice prescribed by Section
13.301, but shall provide written notice to the commission
before the 30th day preceding the date on which the
foreclosure is completed.
(c) Authorizes the financial institution to operate the
utility for an interim period prescribed by commission rule
before transferring or otherwise obtaining a certificate of
convenience and necessity. Subjects a financial institution
that operates a utility during an interim period under this
subsection to each commission rule to which the utility was
subject and in the same manner.
SECTION 9. Effective date: September 1, 1995.
SECTION 10. Emergency clause.