Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Keel                                         H.B. No. 3355

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to regulation of water and sewer services provided by

 1-3     retail public utilities.

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

 1-5           SECTION 1.  Section 13.253, Texas Water Code is amended to

 1-6     read as follows:

 1-7           Sec. 13.253.  Improvements in Service; Interconnecting

 1-8     Service.  After notice and hearing, the commission may:

 1-9                 (1)  order any retail public utility that is required

1-10     by law to possess a certificate of public convenience and necessity

1-11     to provide specified improvements in its service in a defined area

1-12     if service in that area is inadequate or is substantially inferior

1-13     to service in a comparable area and it is reasonable to require the

1-14     retail public utility to provide the improved service;

1-15                 (2)  order two or more public utilities or water supply

1-16     or sewer service corporations to establish specified facilities for

1-17     the interconnecting service; or

1-18                 (3)  issue an emergency order, with or without a

1-19     hearing, under Section 13.041 of this code[.] ;or

1-20                 (4)  if a petition requesting action is filed, order a

1-21     retail public utility that is required by law to possess a

1-22     certificate of convenience and necessity to provide retail water or

1-23     sewer utility service to territory not located within its

1-24     certificated area if:

 2-1                       (A)  the territory is contiguous to the retail

 2-2     public utility's certificated area on 3 or more sides;

 2-3                       (B)  the ultimate point of use is within

 2-4     one-quarter mile of the boundary of the retail public utility's

 2-5     certificated area;

 2-6                       (C)  the property owner(s) within the territory

 2-7     have attempted and been unable to obtain water or sewer service,

 2-8     obtain a supply of water, or dispose of wastewater for a reasonable

 2-9     cost using other alternatives;

2-10                       (D)  the property owner(s) within the territory

2-11     agree to pay the retail public utility a reasonable fee for service

2-12     that:

2-13                             (i)  is consistent with the retail public

2-14     utility's tariff or service rules; and

2-15                             (ii)  includes the actual cost of

2-16     installing on-site and off-site facilities to provide service to

2-17     the property owner(s) unless the property owner has previously

2-18     acquired commitments or other rights to service from the retail

2-19     public utility, in which case the fee may only include standard and

2-20     customary connection fees and the costs to extend lines necessary

2-21     to serve the territory; and

2-22                       (E)  there are less than 15 potential single

2-23     family residence connections within the territory.

2-24           SECTION 2.  This Act takes effect on September 1, 1997.

2-25           SECTION 3.  The importance of this legislation and the

2-26     crowded condition of the calendars in both houses create an

2-27     emergency and an imperative public necessity that the

2-28     constitutional rule requiring bills to be read on three several

2-29     days in each house be suspended, and this rule is hereby suspended.