SRC-PNG S.B. 1503 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1503
76R6481 JJT-DBy: Truan
Border Affairs - Special
3/24/1999
As Filed


DIGEST 

Currently, the Texas Natural Resource Conservation Commission does not
differentiate between economically distressed areas and noneconomically
distressed areas in the certification process of utilities or water supply
or sewer service corporations.  This bill would revise the method for
selecting which utilities or water supply or sewer service corporations
receive certification of public convenience and necessity in economically
distressed areas. 

PURPOSE

As proposed, S.B. 1503 revises the method for selecting which utilities or
water supply or sewer service corporations receive certification of public
convenience and necessity in economically distressed areas. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 13.241, Water Code, by adding Subsection (e), to
require the Texas Natural Resource Conservation Commission (TNRCC) to
develop a standardized method for determining under Section 13.246(f) which
of two or more retail public utilities or water supply or sewer service
corporations that apply for a certificate of public convenience and
necessity to provide water or sewer utility service to an uncertified area
located in an economically distressed area is more capable financially,
managerially, and technically of providing continuous and adequate service.
Defines "economically distressed area." 

SECTION 2. Amends Section 13.246, Water Code, by amending Subsection (e)
and adding Subsections (f) and (g), to delete the definition of
"economically distressed area."  Requires TNRCC to grant a certificate of
public convenience and necessity (certificate) to the retail public utility
or water supply or sewer service corporation that is more capable
financially, managerially, and technically of providing continuous and
adequate service, if two or more retail public utilities or water supply or
sewer service corporations apply for a certificate to an uncertificated
area located in an economically distressed area and otherwise meet the
requirements for obtaining a new certificate.  Makes conforming changes. 

SECTION 3. Amends Section 13.381, Water Code, to provide that any party to
a proceeding before TNRCC is entitled to judicial review under the
substantial evidence rule, except as provided by Subsection (b).
Authorizes a retail public utility or water supply or sewer service
corporation that is denied a certificate of public convenience and
necessity to provide water or sewer utility service to an uncertificated
area located in an economically distressed area on the ground that another
retail public utility or water supply or sewer service corporation is more
capable financially, managerially, and technically of providing continuous
and adequate service to file a motion for rehearing as provided by Section
2001.146, Government Code.  Defines "economically distressed area."  Makes
conforming changes. 

SECTION 4. Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 5. Emergency clause.