By Truan                                              S.B. No. 1503
         76R6481 JJT-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certificates of public convenience and necessity to
 1-3     provide water or sewer utility service to economically distressed
 1-4     areas.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 13.241, Water Code, is amended by adding
 1-7     Subsection (e) to read as follows:
 1-8           (e)  The commission shall develop a standardized method for
 1-9     determining under Section 13.246(f) which of two or more retail
1-10     public utilities or water supply or sewer service  corporations
1-11     that apply for a certificate of public convenience and necessity to
1-12     provide water or sewer utility service to an uncertificated area
1-13     located in an economically distressed area is more capable
1-14     financially, managerially, and technically of providing continuous
1-15     and adequate service.  In this subsection, "economically distressed
1-16     area" has the meaning assigned by Section 15.001.
1-17           SECTION 2.  Section 13.246, Water Code, is amended by
1-18     amending Subsection (e) and adding Subsections (f) and (g) to read
1-19     as follows:
1-20           (e)  Where applicable, in addition to the other factors in
1-21     this section the commission shall consider the efforts of the
1-22     applicant to extend service to any economically distressed areas
1-23     located within the service areas certificated to the applicant.
1-24     [For the purposes of this subsection, "economically distressed
 2-1     area" has the meaning assigned by Section 15.001.]
 2-2           (f)  If two or more retail public utilities or water supply
 2-3     or sewer service corporations apply for a certificate of public
 2-4     convenience and necessity to provide water or sewer utility service
 2-5     to an uncertificated area located in an  economically distressed
 2-6     area and otherwise meet the requirements for obtaining a new
 2-7     certificate, the commission shall grant the certificate to the
 2-8     retail public utility or water supply or sewer service corporation
 2-9     that is more capable financially, managerially, and technically of
2-10     providing continuous and adequate service.
2-11           (g)  In this section, "economically distressed area" has the
2-12     meaning assigned by Section 15.001.
2-13           SECTION 3.  Section 13.381, Water Code, is amended to read as
2-14     follows:
2-15           Sec. 13.381.  RIGHT TO JUDICIAL REVIEW;  EVIDENCE.  (a)
2-16     Except as provided by Subsection (b), any [Any] party to a
2-17     proceeding before the commission is entitled to judicial review
2-18     under the substantial evidence rule.
2-19           (b)  A retail public utility or water supply or sewer service
2-20     corporation that is denied a certificate of public convenience and
2-21     necessity to provide water or sewer utility service to an
2-22     uncertificated area located in an  economically distressed area on
2-23     the ground that another retail public utility or water supply or
2-24     sewer service corporation is more capable financially,
2-25     managerially, and technically of providing continuous and adequate
2-26     service may file a motion for rehearing as provided by Section
2-27     2001.146, Government Code.  In this subsection, "economically
 3-1     distressed area" has the meaning assigned by Section 15.001.
 3-2           SECTION 4.  This Act takes effect September 1, 1999, and
 3-3     applies only to an application for a new certificate of public
 3-4     convenience and necessity filed on or after the effective date of
 3-5     this Act.  An application for a new certificate of public
 3-6     convenience and necessity filed before the effective date of this
 3-7     Act is governed by the law in effect on the date the application
 3-8     was filed, and that law is continued in effect for that purpose.
 3-9           SECTION 5.  The importance of this legislation and the
3-10     crowded condition of the calendars in both houses create an
3-11     emergency and an imperative public necessity that the
3-12     constitutional rule requiring bills to be read on three several
3-13     days in each house be suspended, and this rule is hereby suspended.