By Wilson                                       H.B. No. 1372

      75R3628 JJT-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to mergers with and acquisitions of certain utilities by

 1-3     certain other utilities.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Article VI, Gas Utility Regulatory Act (Article

 1-6     1446e, Vernon's Texas Civil Statutes), is amended by adding Section

 1-7     6.05 to read as follows:

 1-8           Sec. 6.05.  CERTAIN MERGERS, ACQUISITIONS, OR PURCHASES

 1-9     PROHIBITED; REPORT.  Notwithstanding Sections 6.01 and 6.02 of this

1-10     Act, a gas utility may not merge with, acquire, or purchase a

1-11     controlling interest in a gas, water, sewer, or electric utility

1-12     that serves the same area the gas utility serves.

1-13           SECTION 2.  Subtitle A, Title II, Public Utility Regulatory

1-14     Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

1-15     amended by adding Section 2.004 to read as follows:

1-16           Sec. 2.004.  CERTAIN MERGERS, ACQUISITIONS, OR PURCHASES

1-17     PROHIBITED; REPORT.  Notwithstanding Sections 1.251 and 1.252 of

1-18     this Act, an electric utility may not merge with, acquire, or

1-19     purchase a controlling interest in a gas, water, sewer, or electric

1-20     utility that serves the same area the electric utility serves.

1-21           SECTION 3.  Subchapter H, Chapter 13, Water Code, is amended

1-22     by adding Section 13.305 to read as follows:

1-23           Sec. 13.305.  CERTAIN MERGERS, ACQUISITIONS, OR PURCHASES

1-24     PROHIBITED; REPORT.  Notwithstanding Sections 13.301 and 13.302, a

 2-1     water or sewer utility may not merge with, acquire, or purchase a

 2-2     controlling interest in a gas, water, sewer, or electric utility

 2-3     that serves the same area the water or sewer utility serves.

 2-4           SECTION 4.  (a)  This Act takes effect September 1, 1997.

 2-5           (b)  A merger, acquisition, or purchase that occurs before

 2-6     the effective date of this Act is governed by the law in effect at

 2-7     the time of the occurrence or transaction and the former law is

 2-8     continued in effect for that purpose.

 2-9           SECTION 5.  The importance of this legislation and the

2-10     crowded condition of the calendars in both houses create an

2-11     emergency and an imperative public necessity that the

2-12     constitutional rule requiring bills to be read on three several

2-13     days in each house be suspended, and this rule is hereby suspended.