1-1     By:  Truan                                            S.B. No. 1503
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Special Committee on Border Affairs;
 1-4     April 7, 1999, reported favorably by the following vote:  Yeas 6,
 1-5     Nays 0; April 7, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to certificates of public convenience and necessity to
 1-9     provide water or sewer utility service to economically distressed
1-10     areas.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 13.241, Water Code, is amended by adding
1-13     Subsection (e) to read as follows:
1-14           (e)  The commission shall develop a standardized method for
1-15     determining under Section 13.246(f) which of two or more retail
1-16     public utilities or water supply or sewer service corporations that
1-17     apply for a certificate of public convenience and necessity to
1-18     provide water or sewer utility service to an uncertificated area
1-19     located in an economically distressed area is more capable
1-20     financially, managerially, and technically of providing continuous
1-21     and adequate service.  In this subsection, "economically distressed
1-22     area" has the meaning assigned by Section 15.001.
1-23           SECTION 2.  Section 13.246, Water Code, is amended by
1-24     amending Subsection (e) and adding Subsections (f) and (g) to read
1-25     as follows:
1-26           (e)  Where applicable, in addition to the other factors in
1-27     this section the commission shall consider the efforts of the
1-28     applicant to extend service to any economically distressed areas
1-29     located within the service areas certificated to the applicant.
1-30     [For the purposes of this subsection, "economically distressed
1-31     area" has the meaning assigned by Section 15.001.]
1-32           (f)  If two or more retail public utilities or water supply
1-33     or sewer service corporations apply for a certificate of public
1-34     convenience and necessity to provide water or sewer utility service
1-35     to an uncertificated area located in an economically distressed
1-36     area and otherwise meet the requirements for obtaining a new
1-37     certificate, the commission shall grant the certificate to the
1-38     retail public utility or water supply or sewer service corporation
1-39     that is more capable financially, managerially, and technically of
1-40     providing continuous and adequate service.
1-41           (g)  In this section, "economically distressed area" has the
1-42     meaning assigned by Section 15.001.
1-43           SECTION 3.  Section 13.381, Water Code, is amended to read as
1-44     follows:
1-45           Sec. 13.381.  RIGHT TO JUDICIAL REVIEW;  EVIDENCE.  (a)
1-46     Except as provided by Subsection (b), any [Any] party to a
1-47     proceeding before the commission is entitled to judicial review
1-48     under the substantial evidence rule.
1-49           (b)  A retail public utility or water supply or sewer service
1-50     corporation that is denied a certificate of public convenience and
1-51     necessity to provide water or sewer utility service to an
1-52     uncertificated area located in an economically distressed area on
1-53     the ground that another retail public utility or water supply or
1-54     sewer service corporation is more capable financially,
1-55     managerially, and technically of providing continuous and adequate
1-56     service may file a motion for rehearing as provided by Section
1-57     2001.146, Government Code.  In this subsection, "economically
1-58     distressed area" has the meaning assigned by Section 15.001.
1-59           SECTION 4.  This Act takes effect September 1, 1999, and
1-60     applies only to an application for a new certificate of public
1-61     convenience and necessity filed on or after the effective date of
1-62     this Act.  An application for a new certificate of public
1-63     convenience and necessity filed before the effective date of this
1-64     Act is governed by the law in effect on the date the application
 2-1     was filed, and that law is continued in effect for that purpose.
 2-2           SECTION 5.  The importance of this legislation and the
 2-3     crowded condition of the calendars in both houses create an
 2-4     emergency and an imperative public necessity that the
 2-5     constitutional rule requiring bills to be read on three several
 2-6     days in each house be suspended, and this rule is hereby suspended.
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