1-1     By:  Cain                                             S.B. No. 1768

 1-2           (In the Senate - Filed March 14, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on State Affairs;

 1-4     April 7, 1997, reported favorably by the following vote:  Yeas 10,

 1-5     Nays 3; April 7, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the abolition of the Public Utility Commission of Texas

 1-9     and to the transfer of its powers and duties to the Railroad

1-10     Commission of Texas.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Subdivisions (4) and (5), Section 1.003, Public

1-13     Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas

1-14     Civil Statutes), are amended to read as follows:

1-15                 (4)  "Commission" means the Railroad [Public Utility]

1-16     Commission of Texas, with respect to the regulatory jurisdiction,

1-17     powers, and duties set forth in Title II of this Act, and to those

1-18     sections of Title I of this Act necessary to carry out those powers

1-19     and duties.

1-20                 (5)  "Commissioner" means a member of the Railroad

1-21     [Public Utility] Commission of Texas, with respect to the

1-22     regulatory jurisdiction, powers, and duties set forth in Title II

1-23     of this Act, and to those sections of Title I of this Act necessary

1-24     to carry out those powers and duties.

1-25           SECTION 2.  Subdivisions (4) and (5), Section 1.003, Public

1-26     Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas

1-27     Civil Statutes), are amended to read as follows:

1-28                 (4)  "Commission" means the Railroad [Public Utility]

1-29     Commission of Texas.

1-30                 (5)  "Commissioner" means a member of the Railroad

1-31     [Public Utility] Commission of Texas.

1-32           SECTION 3.  Section 1.022, Public Utility Regulatory Act of

1-33     1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

1-34     to read as follows:

1-35           Sec. 1.022.  Sunset Provision.  The [Public Utility

1-36     Commission of Texas and the] Office of Public Utility Counsel is

1-37     [are] subject to Chapter 325, Government Code (Texas Sunset Act).

1-38     Unless continued in existence as provided by that chapter, the

1-39     [commission and the] office is [are] abolished and this Act expires

1-40     September 1, 2001.

1-41           SECTION 4.  Subsections (d), (e), (f), (g), (h), (k), (l),

1-42     (m), and (s), Section 1.3215, Public Utility Regulatory Act of 1995

1-43     (Article 1446c-0, Vernon's Texas Civil Statutes), are amended to

1-44     read as follows:

1-45           (d)  If the commission [executive director] determines that a

1-46     violation has occurred, the [executive director may issue to the]

1-47     commission may issue a report that states the facts on which the

1-48     determination is based and the commission's [director's]

1-49     recommendation on the imposition of a penalty, including a

1-50     recommendation on the amount of the penalty.

1-51           (e)  Within 14 days after the date the report is issued, the

1-52     commission [executive director] shall give written notice of the

1-53     report to the person.  The notice may be given by certified mail.

1-54     The notice must include a brief summary of the alleged violation

1-55     and a statement of the amount of the recommended penalty and must

1-56     inform the person that the person has a right to a hearing on the

1-57     occurrence of the violation, the amount of the penalty, or both the

1-58     occurrence of the violation and the amount of the penalty.  Before

1-59     any penalty may be assessed under this section, the person against

1-60     whom the penalty may be assessed shall be given 30 days after

1-61     receiving from the commission [executive director] the notice of

1-62     the report summarizing the alleged violation pursuant to this

1-63     subsection in which to cure the violation and the person must fail

1-64     to cure the alleged violation within the 30-day period.  The person

 2-1     against whom the penalty may be assessed who claims to have cured

 2-2     the alleged violation shall have the burden of proving to the

 2-3     commission that the alleged violation was cured and was accidental

 2-4     or inadvertent.

 2-5           (f)  Within 20 days after the date the person receives the

 2-6     notice, the person in writing may accept the determination and

 2-7     recommended penalty of the commission [executive director] or may

 2-8     make a written request for a hearing on the occurrence of the

 2-9     violation, the amount of the penalty, or both the occurrence of the

2-10     violation and the amount of the penalty.

2-11           (g)  If the person accepts the determination and recommended

2-12     penalty of the commission [executive director], the commission by

2-13     order shall approve the determination and impose the recommended

2-14     penalty.

2-15           (h)  If the person requests a hearing or fails to respond

2-16     timely to the notice, the commission [executive director] shall set

2-17     a hearing and give notice of the hearing to the person.  The

2-18     hearing shall be held by an administrative law judge of the State

2-19     Office of Administrative Hearings.  The administrative law judge

2-20     shall make findings of fact and conclusions of law and promptly

2-21     issue to the commission a proposal for a decision about the

2-22     occurrence of the violation and the amount of a proposed penalty.

2-23     Based on the findings of fact, conclusions of law, and proposal for

2-24     a decision, the commission by order may find that a violation has

2-25     occurred and impose a penalty or may find that no violation

2-26     occurred.

2-27           (k)  Within the 30-day period, a person who acts under

2-28     Subsection (j)(3) of this section may:

2-29                 (1)  stay enforcement of the penalty by:

2-30                       (A)  paying the amount of the penalty to the

2-31     court for placement in an escrow account; or

2-32                       (B)  giving to the court a supersedeas bond that

2-33     is approved by the court for the amount of the penalty and that is

2-34     effective until all judicial review of the commission's order is

2-35     final; or

2-36                 (2)  request the court to stay enforcement of the

2-37     penalty by:

2-38                       (A)  filing with the court a sworn affidavit of

2-39     the person stating that the person is financially unable to pay the

2-40     amount of the penalty and is financially unable to give the

2-41     supersedeas bond; and

2-42                       (B)  giving a copy of the affidavit to the

2-43     commission [executive director] by certified mail.

2-44           (l)  The commission [executive director], on receipt of a

2-45     copy of an affidavit under Subsection (k)(2) of this section, may

2-46     file with the court, within five days after the date the copy is

2-47     received, a contest to the affidavit.  The court shall hold a

2-48     hearing on the facts alleged in the affidavit as soon as

2-49     practicable and shall stay the enforcement of the penalty on

2-50     finding that the alleged facts are true.  The person who files an

2-51     affidavit has the burden of proving that the person is financially

2-52     unable to pay the amount of the penalty and to give a supersedeas

2-53     bond.

2-54           (m)  If the person does not pay the amount of the penalty and

2-55     the enforcement of the penalty is not stayed, the commission

2-56     [executive director] may refer the matter to the attorney general

2-57     for collection of the amount of the penalty.

2-58           (s)  The commission [executive director] may delegate to a

2-59     commission employee [person] that the commission [executive

2-60     director] designates any power or duty given the commission

2-61     [executive director] by this section.

2-62           SECTION 5.  Section 1.405, Public Utility Regulatory Act of

2-63     1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

2-64     to read as follows:

2-65           Sec. 1.405.  TERMINATING SERVICES TO ELDERLY AND DISABLED;

2-66     CRITERIA AND GUIDELINES; ESTABLISHMENT.  The Railroad [Public

2-67     Utility] Commission is authorized to establish criteria and

2-68     guidelines with the utility industry relating to procedures

2-69     employed by the industry in terminating services to the elderly and

 3-1     disabled.

 3-2           SECTION 6.  Subsection (a), Section 104.003, Agriculture

 3-3     Code, is amended to read as follows:

 3-4           (a)  This chapter does not apply to:

 3-5                 (1)  an order or rule issued by the Railroad [Public

 3-6     Utility] Commission of Texas; or

 3-7                 (2)  an order or rule concerning the operation of

 3-8     common carriers issued by the Interstate Commerce Commission.

 3-9           SECTION 7.  Subdivision (14), Section 1, Article 18.21, Code

3-10     of Criminal Procedure, is amended to read as follows:

3-11                 (14)  "Trap and trace device" means a mechanical or

3-12     electronic device that attaches to a telephone line and is capable

3-13     of recording an incoming electronic or other impulse that

3-14     identifies the originating number of an instrument or device from

3-15     which a wire or electronic communication was transmitted.  The term

3-16     does not include a device or telecommunications network used in

3-17     providing:  (1) a caller identification service authorized by the

3-18     Railroad [Public Utility] Commission of Texas under Section 3.302

3-19     [87C], Public Utility Regulatory Act of 1995 (Article 1446c-0

3-20     [1446c], Vernon's Texas Civil Statutes); (2) the services

3-21     referenced in Subsection (g), Section 3.302 [87C], Public Utility

3-22     Regulatory Act of 1995 (Article 1446c-0 [1446c], Vernon's Texas

3-23     Civil Statutes); or (3) a caller identification service provided by

3-24     a commercial mobile radio service provider licensed by the Federal

3-25     Communications Commission.

3-26           SECTION 8.  Section 232.002, Family Code, is amended to read

3-27     as follows:

3-28           Sec. 232.002.  Licensing Authorities Subject to Chapter.  The

3-29     following state agencies are licensing authorities subject to this

3-30     subchapter:

3-31                 (1)  Department of Agriculture;

3-32                 (2)  Texas Commission on Alcohol and Drug Abuse;

3-33                 (3)  Texas Alcoholic Beverage Commission;

3-34                 (4)  Texas Appraiser Licensing and Certification Board;

3-35                 (5)  Texas Board of Architectural Examiners;

3-36                 (6)  State Board of Barber Examiners;

3-37                 (7)  Texas Board of Chiropractic Examiners;

3-38                 (8)  Comptroller of Public Accounts;

3-39                 (9)  Texas Cosmetology Commission;

3-40                 (10)  Court Reporters Certification Board;

3-41                 (11)  State Board of Dental Examiners, if the 74th

3-42     Legislature, at its regular session, enacts legislation that

3-43     becomes law authorizing a state agency to regulate the practice of

3-44     dentistry;

3-45                 (12)  Texas State Board of Examiners of Dietitians;

3-46                 (13)  Texas Funeral Service Commission;

3-47                 (14)  Texas Department of Health;

3-48                 (15)  Texas Board of Professional Land Surveying;

3-49                 (16)  Texas Department of Licensing and Regulation;

3-50                 (17)  Texas State Board of Examiners of Marriage and

3-51     Family Therapists;

3-52                 (18)  Texas State Board of Medical Examiners;

3-53                 (19)  Midwifery Board;

3-54                 (20)  Texas Natural Resource Conservation Commission;

3-55                 (21)  Board of Nurse Examiners;

3-56                 (22)  Texas Board of Nursing Facility Administrators;

3-57                 (23)  Texas Board of Occupational Therapy Examiners;

3-58                 (24)  Texas Optometry Board;

3-59                 (25)  Parks and Wildlife Department;

3-60                 (26)  Texas State Board of Examiners of Perfusionists;

3-61                 (27)  Texas State Board of Pharmacy;

3-62                 (28)  Texas Board of Physical Therapy Examiners;

3-63                 (29)  Texas State Board of Plumbing Examiners;

3-64                 (30)  Texas State Board of Podiatry Examiners;

3-65                 (31)  Polygraph Examiners Board;

3-66                 (32)  Texas Board of Private Investigators and Private

3-67     Security Agencies;

3-68                 (33)  Texas State Board of Examiners of Professional

3-69     Counselors;

 4-1                 (34)  State Board of Registration for Professional

 4-2     Engineers;

 4-3                 (35)  Department of Protective and Regulatory Services;

 4-4                 (36)  Texas State Board of Examiners of Psychologists;

 4-5                 (37)  Texas State Board of Public Accountancy;

 4-6                 (38)  Department of Public Safety of the State of

 4-7     Texas;

 4-8                 (39)  [Public Utility Commission of Texas;]

 4-9                 [(40)]  Railroad Commission of Texas;

4-10                 (40) [(41)]  Texas Real Estate Commission;

4-11                 (41) [(42)]  State Bar of Texas;

4-12                 (42) [(43)]  Texas State Board of Social Worker

4-13     Examiners;

4-14                 (43) [(44)]  State Board of Examiners for

4-15     Speech-Language Pathology and Audiology;

4-16                 (44) [(45)]  Texas Structural Pest Control Board;

4-17                 (45) [(46)]  Board of Tax Professional Examiners;

4-18                 (46) [(47)]  Secretary of State;

4-19                 (47) [(48)]  Supreme Court of Texas;

4-20                 (48) [(49)]  Texas Transportation Commission;

4-21                 (49) [(50)]  State Board of Veterinary Medical

4-22     Examiners;

4-23                 (50) [(51)]  Board of Vocational Nurse Examiners;

4-24                 (51) [(52)]  Texas Ethics Commission;

4-25                 (52) [(53)]  Advisory Board of Athletic Trainers;

4-26                 (53) [(54)]  State Committee of Examiners in the

4-27     Fitting and Dispensing of Hearing Instruments;

4-28                 (54) [(55)]  Texas Board of Licensure for Professional

4-29     Medical Physicists; and

4-30                 (55) [(56)]  Texas Department of Insurance.

4-31           SECTION 9.  Subsection (c), Section 572.003, Government Code,

4-32     is amended to read as follows:

4-33           (c)  The term means a member of:

4-34                 (1)  the [Public Utility Commission of Texas;]

4-35                 [(2)  the] Texas Department of Commerce;

4-36                 (2) [(3)]  the Texas Natural Resource Conservation

4-37     Commission;

4-38                 (3) [(4)]  the Texas Alcoholic Beverage Commission;

4-39                 (4) [(5)]  The Finance Commission of Texas;

4-40                 (5) [(6)]  the General Services Commission;

4-41                 (6) [(7)]  the Texas Board of Criminal Justice;

4-42                 (7) [(8)]  the board of trustees of the Employees

4-43     Retirement System of Texas;

4-44                 (8) [(9)]  the Texas Transportation Commission;

4-45                 (9) [(10)]  the Texas Workers' Compensation Commission;

4-46                 (10) [(11)]  the State Board of Insurance;

4-47                 (11) [(12)]  the Parks and Wildlife Commission;

4-48                 (12) [(13)]  the Public Safety Commission;

4-49                 (13) [(14)]  the Texas Ethics Commission;

4-50                 (14) [(15)]  the State Securities Board;

4-51                 (15) [(16)]  the Texas Water Development Board;

4-52                 (16) [(17)]  the governing board of a public senior

4-53     college or university as defined by Section 61.003, Education Code,

4-54     or of The University of Texas Southwestern Medical Center at

4-55     Dallas, The University of Texas Medical Branch at Galveston, The

4-56     University of Texas Health Science Center at Houston, The

4-57     University of Texas Health Science Center at San Antonio, The

4-58     University of Texas System Cancer Center, The University of Texas

4-59     Health Science Center at Tyler, University of North Texas Health

4-60     Science Center at Fort Worth, Texas Tech University Health Sciences

4-61     Center, Texas State Technical College--Amarillo, Texas State

4-62     Technical College--Harlingen, Texas State Technical

4-63     College--Sweetwater, or Texas State Technical College--Waco;

4-64                 (17) [(18)]  the Texas Higher Education Coordinating

4-65     Board;

4-66                 (18) [(19)]  the Texas Employment Commission;

4-67                 (19) [(20)]  the State Banking Board;

4-68                 (20) [(21)]  the board of trustees of the Teacher

4-69     Retirement System of Texas;

 5-1                 (21) [(22)]  the Credit Union Commission;

 5-2                 (22) [(23)]  the School Land Board;

 5-3                 (23) [(24)]  the board of the Texas Department of

 5-4     Housing and Community Affairs;

 5-5                 (24) [(25)]  the Texas Racing Commission;

 5-6                 (25) [(26)]  the State Board of Dental Examiners;

 5-7                 (26) [(27)]  the Texas Board of Licensure for Nursing

 5-8     Home Administrators;

 5-9                 (27) [(28)]  the Texas State Board of Medical

5-10     Examiners;

5-11                 (28) [(29)]  the Board of Pardons and Paroles;

5-12                 (29) [(30)]  the State Board of Pharmacy;

5-13                 (30) [(31)]  the Department of Information Resources

5-14     governing board;

5-15                 (31) [(32)]  the Motor Vehicle Board;

5-16                 (32) [(33)]  the Texas Real Estate Commission;

5-17                 (33) [(34)]  the board of directors of the State Bar of

5-18     Texas;

5-19                 (34) [(35)]  the bond review board;

5-20                 (35) [(36)]  the Texas Board of Health;

5-21                 (36) [(37)]  the Texas Board of Mental Health and

5-22     Mental Retardation;

5-23                 (37) [(38)]  the Texas Board on Aging;

5-24                 (38) [(39)]  the Texas Board of Human Services;

5-25                 (39) [(40)]  the Texas Funeral Service Commission;

5-26                 (40) [(41)]  the board of directors of a river

5-27     authority created under the Texas Constitution or a statute of this

5-28     state; or

5-29                 (41) [(42)]  the Texas Lottery Commission.

5-30           SECTION 10.  Subdivision (2), Section 2302.001, Government

5-31     Code, is amended to read as follows:

5-32                 (2)  "Commission" means the Railroad [Public Utility]

5-33     Commission of Texas.

5-34           SECTION 11.  Section 2302.002, Government Code, is amended to

5-35     read as follows:

5-36           Sec. 2302.002.  Composition of Council.  The council is

5-37     composed of:

5-38                 (1)  one representative with knowledge of cogeneration

5-39     from each of the following agencies, appointed by and serving at

5-40     the pleasure of the agency's presiding officer:

5-41                       (A)  the commission;

5-42                       (B)  [the Railroad Commission of Texas;]

5-43                       [(C)]  the General Services Commission; and

5-44                       (C) [(D)]  the Texas Natural Resource

5-45     Conservation Commission;

5-46                 (2)  one representative of the office of the attorney

5-47     general, appointed by the attorney general; and

5-48                 (3)  one representative of higher education, appointed

5-49     by the governor.

5-50           SECTION 12.  Subdivisions (5) and (11), Section 771.001,

5-51     Health and Safety Code, are amended to read as follows:

5-52                 (5)  "Local exchange service provider" means a

5-53     telecommunications carrier providing telecommunications service in

5-54     a local exchange service area under a certificate of public

5-55     convenience and necessity issued by the Railroad [Public Utility]

5-56     Commission of Texas.

5-57                 (11)  "Business service" means a telecommunications

5-58     service classified as a business service under rules adopted by the

5-59     Railroad [Public Utility] Commission of Texas or under the

5-60     applicable tariffs of the principal service supplier.

5-61           SECTION 13.  Subsection (d), Section 28.03, Penal Code, is

5-62     amended to read as follows:

5-63           (d)  The term "public communication, public transportation,

5-64     public water, gas, or power supply, or other public service" shall

5-65     mean, refer to, and include any such services subject to regulation

5-66     by [the Public Utility Commission of Texas,] the Railroad

5-67     Commission of Texas[,] or the Texas Natural Resource Conservation

5-68     Commission or any such services enfranchised by the State of Texas

5-69     or any political subdivision thereof.

 6-1           SECTION 14.  Subsection (b), Section 22.23, Tax Code, is

 6-2     amended to read as follows:

 6-3           (b)  For good cause shown in writing by the property owner,

 6-4     the chief appraiser may extend a deadline for filing a rendition

 6-5     statement or property report by written order to a date not later

 6-6     than April 30.  However, if the property that is the subject of the

 6-7     rendition is regulated by the [Public Utility Commission of Texas

 6-8     or the] Railroad Commission of Texas, the chief appraiser, upon

 6-9     written request by the property owner, shall extend the filing

6-10     deadline until April 30, and may further extend the deadline an

6-11     additional 15 days upon good cause shown in writing by the property

6-12     owner.

6-13           SECTION 15.  Subsection (c), Section 301.004, Tax Code, is

6-14     amended to read as follows:

6-15           (c)  In this section, "telephone company" means a person who

6-16     owns or operates a telephone line or a telephone network in this

6-17     state, charges for its use, and is regulated by the Railroad

6-18     [Public Utility] Commission of Texas as a certificated provider of

6-19     local exchange telephone service.

6-20           SECTION 16.  Subsection (f), Section 4B, Chapter 245, Acts of

6-21     the 67th Legislature, Regular Session, 1981 (Article 717p, Vernon's

6-22     Texas Civil Statutes), is amended to read as follows:

6-23           (f)  This section does not in any way limit the authority of

6-24     the Railroad [Public Utility] Commission of Texas to determine the

6-25     recoverability of cost from rate payers.

6-26           SECTION 17.  Article 1440a, Revised Statutes, is amended to

6-27     read as follows:

6-28           Art. 1440a.  Deposit for Installing Service.  Every person,

6-29     firm, company, corporation, receiver or trustee engaged in the

6-30     furnishing of water, light, gas or telephone service which requires

6-31     the payment on the part of the user of such service a deposit of

6-32     money as a condition precedent to furnishing any such service,

6-33     shall pay interest on such deposit to the one making same, or to

6-34     his heirs or assigns, from the time of such deposit, the same to be

6-35     paid annually on demand, or sooner if such service be discontinued.

6-36     The rate of interest for each calendar year shall be established by

6-37     the Railroad [Public Utility] Commission of Texas on December 1, or

6-38     the next regular work day if December 1 falls on a Saturday,

6-39     Sunday, or legal holiday, of the preceding year at a rate not to

6-40     exceed eighty-five per cent (85%) of the average rate paid over the

6-41     previous 12-month period on United States Treasury bills with a

6-42     12-month maturity date; provided, in no event shall the rate of

6-43     interest set by the commission be less than six per cent (6%) per

6-44     annum or greater than twelve per cent (12%) per annum.  When such

6-45     service is discontinued, such deposit, together with any unpaid

6-46     interest thereon, or such part of such deposit and unpaid interest

6-47     not consumed in bills due for such service, shall be returned to

6-48     such depositor, his heirs or legal representatives.  Whoever

6-49     violates any provision of this Article shall be fined not less than

6-50     Twenty-five Dollars ($25) nor more than Two Hundred Dollars ($200),

6-51     or be confined in jail not less than six (6) months nor more than

6-52     one year, or both.

6-53           SECTION 18.  Subdivision (1), Section 1, Chapter 650, Acts of

6-54     the 68th Legislature, Regular Session, 1983 (Article 1446c-1,

6-55     Vernon's Texas Civil Statutes), is amended to read as follows:

6-56                 (1)  "Commission" means the Railroad [Public Utility]

6-57     Commission of Texas.

6-58           SECTION 19.  Section 3, Chapter 353, Acts of the 65th

6-59     Legislature, Regular Session, 1977 (Article 1446d, Vernon's Texas

6-60     Civil Statutes), is amended to read as follows:

6-61           Sec. 3.  Notwithstanding any law to the contrary, the

6-62     Railroad [Public Utility] Commission of Texas shall promulgate

6-63     rules, regulations, and standards under which any owner, operator,

6-64     or manager of an apartment house or mobile home park which is not

6-65     individually metered for electricity for each dwelling unit may

6-66     install submetering equipment for each individual dwelling unit for

6-67     the purpose of fairly allocating the cost of each individual

6-68     dwelling unit's electrical consumption.  In addition to other

6-69     appropriate safeguards for the tenant, such rules and regulations

 7-1     shall require (a) that an apartment house owner or mobile home park

 7-2     owner shall not impose on the tenant any extra charges, over and

 7-3     above the cost per kilowatt hour which is charged by the utility to

 7-4     the owner, and (b) that the apartment house owner shall maintain

 7-5     adequate records regarding submetering and shall make such records

 7-6     available for inspection by the tenant during reasonable business

 7-7     hours.  Any rule, regulation, or standard promulgated by the

 7-8     commission pursuant to this section shall be deemed to have been

 7-9     entered or adopted under the Public Utility Regulatory Act of 1995

7-10     (Article 1446c-0 [1446c], Vernon's Texas Civil Statutes), and for

7-11     purposes of enforcement, both utility companies and the owners,

7-12     operators, or managers of apartment houses included in this Act are

7-13     subject to enforcement pursuant to Sections 1.321, 1.322, 1.323,

7-14     1.325, 1.326, 1.327, and  1.328,  [71, 72, 73, 74, 75, 76, and 77

7-15     of the] Public Utility Regulatory Act of 1995 (Article 1446c-0

7-16     [1446c], Vernon's Texas Civil Statutes).  All electric submetering

7-17     equipment shall be subject to the same rules, regulations, and

7-18     standards established by the Railroad [Public Utility] Commission

7-19     of Texas for accuracy, testing, and record keeping of meters

7-20     installed by electric utilities and shall be subject to the meter

7-21     testing requirements of Section 2.156, [36 of the] Public Utility

7-22     Regulatory Act of 1995 (Article 1446c-0 [1446c], Vernon's Texas

7-23     Civil Statutes).

7-24           SECTION 20.  Section 2, Article 1446d-2, Revised Statutes, is

7-25     amended to read as follows:

7-26           Sec. 2.  Metered sale of electricity.  Notwithstanding any

7-27     provision in the Public Utility Regulatory Act of 1995 (Article

7-28     1446c-0 [1446c], Vernon's Texas Civil Statutes) to the contrary,

7-29     the metered sale of electricity by a recreational vehicle park

7-30     owner is not considered the provision of electric service for

7-31     compensation if:

7-32                 (1)  the owner complies with submetering rules adopted

7-33     by the Railroad [Public Utility] Commission of Texas under the

7-34     Public Utility Regulatory Act of 1995 (Article 1446c-0 [1446c],

7-35     Vernon's Texas Civil Statutes); or

7-36                 (2)  each of the following conditions is met:

7-37                       (A)  the electricity is consumed in a

7-38     recreational vehicle that is located in a recreational vehicle

7-39     park;

7-40                       (B)  the recreational vehicle park owner can show

7-41     that the park owner does not, on an annual basis, recover from the

7-42     recreational vehicle occupants through metered charges more than

7-43     the supplying utility charges the park owner, including the

7-44     recognition of fuel refunds, for the electricity that is submetered

7-45     to the recreational vehicle occupants;

7-46                       (C)  the recreational vehicle park owner

7-47     establishes a fiscal year for purposes of this article and

7-48     maintains for at least three years records of the bills received

7-49     from the supplying utility and the charges made to recreational

7-50     vehicle occupants, including consumption records for each fiscal

7-51     year;

7-52                       (D)  the electricity is charged by using a fixed

7-53     rate per kilowatt hour for a fiscal year, computed by dividing the

7-54     amount charged the park owner by the supplying utility for

7-55     electricity used by occupants of recreational vehicles visiting the

7-56     recreational vehicle park in the preceding fiscal year by the total

7-57     number of kilowatt hours consumed by occupants of recreational

7-58     vehicles visiting the recreational vehicle park in the preceding

7-59     fiscal year, and rounding the quotient to the nearest cent,

7-60     provided that:

7-61                             (i)  if the supplying utility has increased

7-62     its rates since or during the preceding fiscal year, the park owner

7-63     may recompute the preceding fiscal year's charges by the utility

7-64     using the utility's current rates; and

7-65                             (ii)  if the supplying utility decreased

7-66     its rates since or during the preceding fiscal year, the park owner

7-67     shall recompute the preceding fiscal year's charges by the utility

7-68     using the utility's current rates;

7-69                       (E)  the fixed rate is established at the

 8-1     beginning of each fiscal year;

 8-2                       (F)  if at the end of a fiscal year the park

 8-3     owner determines that the park owner has collected an amount

 8-4     different than the amount charged by the supplying utility, the

 8-5     park owner shall refund an overcollection to recreational vehicle

 8-6     occupants visiting the park in the succeeding fiscal year; and

 8-7                       (G)  a charge by a supplying utility for

 8-8     electricity used in a common area or office of a recreational

 8-9     vehicle park may not be included in the charges to be recovered

8-10     through a metered charge from the recreational vehicle occupants.

8-11           SECTION 21.  Subsection (a), Section 2, Article 1446f,

8-12     Revised Statutes, is amended to read as follows:

8-13           (a)  Notwithstanding any law to the contrary, the Railroad

8-14     [Public Utility] Commission of Texas shall promulgate rules,

8-15     regulations, and standards governing billing systems or methods

8-16     used by apartment house owners for prorating or allocating among

8-17     tenants central system utility costs or nonsubmetered master

8-18     metered utility service costs.  In addition to other appropriate

8-19     safeguards for the tenant, these rules shall require that:

8-20                 (1)  the rental agreement shall contain a clear written

8-21     description of the method of calculation of the allocation of

8-22     central system utilities or nonsubmetered master metered utilities

8-23     for the apartment house;

8-24                 (2)  the rental agreement shall contain a statement of

8-25     the average apartment unit monthly bill for all apartment units for

8-26     any allocation of such utilities for the previous calendar year;

8-27                 (3)  an apartment house owner may not impose additional

8-28     charges on a tenant in excess of the actual charges imposed on the

8-29     owner for utility consumption by the apartment house;

8-30                 (4)  the apartment house shall maintain adequate

8-31     records regarding the utility consumption of the apartment house,

8-32     the charges assessed by the utility, and the allocation of the

8-33     utility costs to the tenants; and

8-34                 (5)  the apartment owner shall maintain all necessary

8-35     records concerning utility allocations, including the utility's

8-36     bills, and shall make the records available for inspection by the

8-37     tenants during normal business hours.

8-38           SECTION 22.  Article 1446g, Revised Statutes, is amended to

8-39     read as follows:

8-40           Art. 1446g.  Penalties; submetering or allocation of central

8-41     system costs.  If a landlord violates any Railroad [Public Utility]

8-42     Commission of Texas rule regarding (1) submetering of electric

8-43     utilities consumed exclusively within the tenant's dwelling unit,

8-44     or (2) allocating central system utility costs or nonsubmetered

8-45     master metered electric utility costs, the tenant may recover

8-46     treble the amount of any overcharge, a civil penalty equal to one

8-47     month's rent, reasonable attorney's fees, and court costs.

8-48     However, the landlord shall not be liable for a civil penalty when

8-49     the violation was a good faith, unintentional mistake.  The

8-50     landlord shall have the burden of proving the violation was a good

8-51     faith, unintentional mistake.

8-52           SECTION 23.  Subdivision (7), Section 2, Telephone

8-53     Cooperative Act (Article 1528c, Vernon's Texas Civil Statutes), is

8-54     amended to read as follows:

8-55                 (7)  "Commission" means the Railroad [Public Utility]

8-56     Commission of Texas.

8-57           SECTION 24.  Section 2.01, Chapter 793, Acts of the 73rd

8-58     Legislature, 1993 (Article 4413 (47f), Vernon's Texas Civil

8-59     Statutes), is amended to read as follows:

8-60           Sec. 2.01.  Texas Committee on Energy Policy.  The Texas

8-61     Committee on Energy Policy is composed of the following ex officio

8-62     members:

8-63                 (1)  the governor;

8-64                 (2)  the lieutenant governor;

8-65                 (3)  the speaker of the house of representatives;

8-66                 (4)  the chairman of the house of representatives

8-67     committee on energy;

8-68                 (5)  the chairman of the senate committee on natural

8-69     resources;

 9-1                 (6)  a member of the Railroad Commission of Texas,

 9-2     appointed by the Railroad Commission of Texas; and

 9-3                 (7)  [a member of the Public Utility Commission of

 9-4     Texas, appointed by the Public Utility Commission of Texas; and]

 9-5                 [(8)]  the commissioner of the General Land Office.

 9-6           SECTION 25.  Subsection (a), Article 18.02, Title 79, Revised

 9-7     Statutes (Article 5069-18.02, Vernon's Texas Civil Statutes), is

 9-8     amended to read as follows:

 9-9           (a)  This chapter does not apply to:

9-10                 (1)  a person offering or selling a security that has

9-11     been qualified for sale under Section 7, The Securities Act

9-12     (Article 581-7, Vernon's Texas Civil Statutes), and its subsequent

9-13     amendments, or that is subject to an exemption under Section 5 or 6

9-14     of that Act;

9-15                 (2)  a publicly traded corporation registered with the

9-16     Securities and Exchange Commission or the State Securities Board,

9-17     or a subsidiary or agent of the corporation;

9-18                 (3)  a person licensed under the Insurance Code, if the

9-19     solicited transaction is governed by the Insurance Code;

9-20                 (4)  a person soliciting the sale of a subscription to:

9-21                       (A)  a daily or weekly newspaper of general

9-22     circulation;

9-23                       (B)  a magazine or other periodical of general

9-24     circulation; or

9-25                       (C)  a cable television service;

9-26                 (5)  a supervised financial institution or parent,

9-27     subsidiary, or affiliate of a supervised financial institution;

9-28                 (6)  a person or affiliate of a person whose business

9-29     is regulated by the Railroad [Public Utility] Commission of Texas

9-30     under the Public Utility Regulatory Act of 1995 (Article 1446c-0,

9-31     Vernon's Texas Civil Statutes), except that this chapter applies to

9-32     a person or affiliate of a person who is regulated by the Railroad

9-33     [Public Utility] Commission of Texas only with respect to one or

9-34     more automated dial announcing devices;

9-35                 (7)  an educational institution or organization or a

9-36     nonprofit organization exempt from taxation under Section 501(c)(3)

9-37     of the Internal Revenue Code of 1986;

9-38                 (8)  a sale in which the purchaser is a business that

9-39     intends to:

9-40                       (A)  resell the item purchased; or

9-41                       (B)  use the item purchased in a recycling,

9-42     reuse, remanufacturing, or manufacturing process;

9-43                 (9)  a person soliciting the sale of food;

9-44                 (10)  a person who periodically issues and delivers

9-45     catalogs to potential purchasers if the catalog:

9-46                       (A)  includes a written description or

9-47     illustration and the sales price of each item offered for sale;

9-48                       (B)  includes at least 24 full pages of written

9-49     material or illustrations;

9-50                       (C)  is distributed in more than one state; and

9-51                       (D)  has an annual circulation of not less than

9-52     250,000 customers;

9-53                 (11)  the solicitation of contracts for the maintenance

9-54     or repair of items previously purchased from the person making the

9-55     solicitation or on whose behalf the solicitation is made;

9-56                 (12)  a person soliciting:

9-57                       (A)  without intent to complete or obtain

9-58     provisional acceptance of a sale during the telephone solicitation;

9-59                       (B)  who does not make the major sales

9-60     presentation during the telephone solicitation but arranges for the

9-61     major sales presentation to be made at a later face-to-face meeting

9-62     between the salesperson and the purchaser; and

9-63                       (C)  who does not cause an individual to go to

9-64     the prospective purchaser to collect payment for the purchase or to

9-65     deliver any item purchased directly following the telephone

9-66     solicitation;

9-67                 (13)  a person subject to the control or licensing

9-68     regulations of the Federal Communications Commission;

9-69                 (14)  a person selling:

 10-1                      (A)  a contractual plan regulated by the Federal

 10-2    Trade Commission trade regulation on use of negative option plans

 10-3    by sellers in commerce under Title 16, Code of Federal Regulations,

 10-4    Part 425; or

 10-5                      (B)  merchandise under an arrangement in which

 10-6    the seller periodically ships the merchandise to a consumer who has

 10-7    consented in advance to receive the merchandise on a periodic

 10-8    basis;

 10-9                (15)  a person:

10-10                      (A)  who provides telephone solicitation services

10-11    under contract to sellers;

10-12                      (B)  who has been operating continuously for at

10-13    least three years under the same business name; and

10-14                      (C)  for whom at least 75 percent of the person's

10-15    contracts are performed on behalf of other persons exempt under

10-16    this section;

10-17                (16)  a person soliciting business from a former or

10-18    current customer if the person has operated under the exact same

10-19    business name for at least two years;

10-20                (17)  a person engaging in a commercial telephone

10-21    solicitation that is an isolated transaction and not done in the

10-22    course of a pattern of repeated transactions of a like nature;

10-23                (18)  a person who for at least two years has been

10-24    operating under the same name as that used in connection with its

10-25    telemarketing operations a retail establishment where consumer

10-26    goods are displayed and offered for sale on a continuing basis if a

10-27    majority of the person's business involves the buyers obtaining

10-28    services or products at the person's retail establishment;

10-29                (19)  a person subject to the filing requirements of

10-30    Chapter 1054, Acts of the 70th Legislature, Regular Session, 1987

10-31    (Article 9023a, Vernon's Texas Civil Statutes), or any successor to

10-32    this statute; or

10-33                (20)  a person soliciting a transaction regulated by

10-34    the Commodity Futures Trading Commission if the person is

10-35    registered or temporarily licensed for that activity with the

10-36    Commodity Futures Trading Commission under the Commodity Exchange

10-37    Act (7 U.S.C. Section 1 et seq.) and the registration or license

10-38    has not expired or been suspended or revoked.

10-39          SECTION 26.  (a)  The following provisions of the Public

10-40    Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas

10-41    Civil Statutes), are repealed:

10-42                (1)  Section 1.021;

10-43                (2)  Section 1.023;

10-44                (3)  Section 1.024;

10-45                (4)  Section 1.025;

10-46                (5)  Section 1.026;

10-47                (6)  Section 1.027;

10-48                (7)  Section 1.028;

10-49                (8)  Section 1.029;

10-50                (9)  Section 1.030;

10-51                (10)  Section 1.031;

10-52                (11)  Section 1.032;

10-53                (12)  Section 1.033;

10-54                (13)  Section 1.035;

10-55                (14)  Section 1.036;

10-56                (15)  Section 1.037; and

10-57                (16)  Section 1.323.

10-58          (b)  Subsection (h), Section 12.013, Water Code, is repealed.

10-59          SECTION 27.  It is the intention of the legislature that the

10-60    powers, duties, obligations, rights, contracts, records, employees,

10-61    property, funds, and appropriations of the Public Utility

10-62    Commission of Texas shall be transferred to the Railroad Commission

10-63    of Texas.  The transfer shall take effect in phases such that the

10-64    Railroad Commission of Texas shall take regulatory jurisdiction

10-65    over public utilities effective March 1, 1998, and shall take

10-66    regulatory jurisdiction over telecommunications utilities effective

10-67    September 1, 1998.  To that end:

10-68                (1)  Sections 1, 10, 11, 16, 18, 19, 20, 21, 22, 24,

10-69    30, 31, and 32 of this Act take effect March 1, 1998, and apply to

 11-1    a case filed or a proceeding initiated on or after that date;

 11-2                (2)  Sections 2, 3, 4, 5, 6, 7, 8, 9, 12, 13, 14, 15,

 11-3    17, 23, 25, 26, and 29 of this Act take effect September 1, 1998,

 11-4    and apply to a case filed or a proceeding initiated on or after

 11-5    that date; and

 11-6                (3)  Section 28 of this Act takes effect immediately.

 11-7          SECTION 28.  (a)  The Railroad Commission of Texas shall

 11-8    administer the transfer of the powers, duties, obligations, rights,

 11-9    contracts, records, employees, property, funds, and appropriations

11-10    from the Public Utility Commission of Texas to the Railroad

11-11    Commission of Texas.  The Railroad Commission of Texas or its

11-12    designee or designees shall:

11-13                (1)  determine the personnel, equipment, data,

11-14    facilities, unspent appropriations, and other items that will be

11-15    transferred under this Act and the schedule for the transfers; and

11-16                (2)  ensure that the transfers do not adversely affect

11-17    a proceeding before the Public Utility Commission of Texas or the

11-18    rights of the parties to the proceeding.

11-19          (b)  After the transfers have been completed, the Railroad

11-20    Commission of Texas or its designee or designees shall prepare a

11-21    written report detailing the specifics of the transfers and shall

11-22    submit the report to the governor and the legislature.

11-23          SECTION 29.  On September 1, 1998:

11-24                (1)  all remaining powers, duties, obligations, rights,

11-25    contracts, records, employees, property, funds, and unspent

11-26    appropriations are transferred from the Public Utility Commission

11-27    of Texas to the Railroad Commission of Texas;

11-28                (2)  the Public Utility Commission of Texas is

11-29    abolished; and

11-30                (3)  the terms of the commissioners of the Public

11-31    Utility Commission of Texas expire.

11-32          SECTION 30.  All rules, policies, procedures, and decisions

11-33    of the Public Utility Commission of Texas relating to the

11-34    regulation of utilities under the Public Utility Regulatory Act of

11-35    1995 (Article 1446c-0, Vernon's Texas Civil Statutes) are continued

11-36    in effect as rules, policies, procedures, and decisions of the

11-37    Railroad Commission of Texas until superseded by a rule or other

11-38    appropriate action of the Railroad Commission of Texas.  All rules,

11-39    policies, procedures, and decisions of the Public Utility

11-40    Commission of Texas relating to the management and day-to-day

11-41    operation of the Public Utility Commission of Texas are superseded

11-42    by the rules, policies, procedures, and decisions of the Railroad

11-43    Commission of Texas relating to the management and day-to-day

11-44    operation of the Railroad Commission of Texas on the transfer of

11-45    the respective powers, duties, obligations, rights, contracts,

11-46    records, employees, property, funds, and unspent appropriations

11-47    from the Public Utility Commission of Texas to the Railroad

11-48    Commission of Texas.

11-49          SECTION 31.  The abolition of the Public Utility Commission

11-50    of Texas and the transfer of its powers and duties to the Railroad

11-51    Commission of Texas does not affect or impair an act done or

11-52    obligation, certificate, permit, rule, criterion, standard, or

11-53    requirement, or penalty accrued or existing under former law, and

11-54    that law remains in effect for that purpose.

11-55          SECTION 32.  A reference in law to the Public Utility

11-56    Commission of Texas means the Railroad Commission of Texas, on and

11-57    after March 1, 1998, with respect to public utilities, and on and

11-58    after September 1, 1998, with respect to telecommunications

11-59    utilities.

11-60          SECTION 33.  The importance of this legislation and the

11-61    crowded condition of the calendars in both houses create an

11-62    emergency and an imperative public necessity that the

11-63    constitutional rule requiring bills to be read on three several

11-64    days in each house be suspended, and this rule is hereby suspended.

11-65                                 * * * * *