By Turner of Harris H.B. No. 724
77R1506 MTB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the transfer of the Texas Natural Resource Conservation
1-3 Commission's powers and duties regarding water rates and services
1-4 to the Public Utility Commission of Texas.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 5.013(a), Water Code, is amended to read
1-7 as follows:
1-8 (a) The commission has general jurisdiction over:
1-9 (1) water and water rights including the issuance of
1-10 water rights permits, water rights adjudication, cancellation of
1-11 water rights, and enforcement of water rights;
1-12 (2) continuing supervision over districts created
1-13 under Article III, Sections 52(b)(1) and (2), and Article XVI,
1-14 Section 59, of the Texas Constitution;
1-15 (3) the state's water quality program including
1-16 issuance of permits, enforcement of water quality rules, standards,
1-17 orders, and permits, and water quality planning;
1-18 (4) the state's weather modification program including
1-19 the issuance of permits and licenses and the enforcement of
1-20 permits, licenses, rules, standards, and orders relating to weather
1-21 modification;
1-22 (5) the determination of the feasibility of certain
1-23 federal projects;
1-24 (6) the adoption and enforcement of rules and
2-1 performance of other acts relating to the safe construction,
2-2 maintenance, and removal of dams;
2-3 (7) conduct of the state's hazardous spill prevention
2-4 and control program;
2-5 (8) the administration of the state's program relating
2-6 to inactive hazardous substance, pollutant, and contaminant
2-7 disposal facilities;
2-8 (9) the administration of a portion of the state's
2-9 injection well program;
2-10 (10) the administration of the state's programs
2-11 involving underground water and water wells and drilled and mined
2-12 shafts;
2-13 (11) the state's responsibilities relating to regional
2-14 waste disposal;
2-15 (12) the responsibilities assigned to the commission
2-16 by Chapters 361, 363, 382, 401, and 402, Health and Safety Code;
2-17 (13) the administration of the national flood
2-18 insurance program; and
2-19 (14) [administration of the state's water rate program
2-20 under Chapter 13 of this code; and]
2-21 [(15)] any other areas assigned to the commission by
2-22 this code and other laws of this state.
2-23 SECTION 2. Section 5.235(n), Water Code, is amended to read
2-24 as follows:
2-25 (n)[(1) Each provider of potable water or sewer utility
2-26 service shall collect a regulatory assessment from each retail
2-27 customer as follows:]
3-1 [(A) A public utility as defined in Section
3-2 13.002 of this code shall collect from each retail customer a
3-3 regulatory assessment equal to one percent of the charge for retail
3-4 water or sewer service.]
3-5 [(B) A water supply or sewer service corporation
3-6 as defined in Section 13.002 of this code shall collect from each
3-7 retail customer a regulatory assessment equal to one-half of one
3-8 percent of the charge for retail water or sewer service.]
3-9 [(C) A district as defined in Section 49.001 of
3-10 this code that provides potable water or sewer utility service to
3-11 retail customers shall collect from each retail customer a
3-12 regulatory assessment equal to one-half of one percent of the
3-13 charge for retail water or sewer service.]
3-14 [(2) The regulatory assessment may be listed on the
3-15 customer's bill as a separate item and shall be collected in
3-16 addition to other charges for utility services.]
3-17 [(3) The commission shall use the assessments
3-18 collected under this subsection solely to pay costs and expenses
3-19 incurred by the commission in the regulation of districts, water
3-20 supply or sewer service corporations, and public utilities under
3-21 Chapter 13, Water Code.]
3-22 [(4) The commission shall annually use a portion of
3-23 the assessments to provide on-site technical assistance and
3-24 training to public utilities, water supply or sewer service
3-25 corporations, and districts. The commission shall contract with
3-26 others to provide the services.]
3-27 [(5) The commission by rule may establish due dates,
4-1 collection procedures, and penalties for late payment related to
4-2 regulatory assessments under this subsection. The executive
4-3 director shall collect all assessments from the utility service
4-4 providers.]
4-5 [(6)] The commission shall assess a penalty against a
4-6 municipality with a population of more than 1.5 million that does
4-7 not provide municipal water and sewer services in an annexed area
4-8 in accordance with Section 43.0565, Local Government Code. A
4-9 penalty assessed under this subsection [paragraph] shall be not
4-10 more than $1,000 for each day the services are not provided after
4-11 March 1, 1998, for areas annexed before January 1, 1993, or not
4-12 provided within 4 1/2 years after the effective date of the
4-13 annexation for areas annexed on or after January 1, 1993. A
4-14 penalty collected under this subsection [paragraph] shall be
4-15 deposited to the credit of the water resource management account to
4-16 be used to provide water and sewer service to residents of the
4-17 city.
4-18 [(7) The regulatory assessment does not apply to water
4-19 that has not been treated for the purpose of human consumption.]
4-20 SECTION 3. Section 5.311(a), Water Code, is amended to read
4-21 as follows:
4-22 (a) The commission may delegate to an administrative law
4-23 judge of the State Office of Administrative Hearings the
4-24 responsibility to hear any matter before the commission [and to
4-25 issue interlocutory orders related to interim rates under Chapter
4-26 13].
4-27 SECTION 4. Section 13.011(b), Water Code, is amended to read
5-1 as follows:
5-2 (b) The executive director and the commission's staff are
5-3 responsible for the gathering of information relating to all
5-4 matters within the jurisdiction of the commission under this
5-5 subchapter. The duties of the executive director and the staff
5-6 include:
5-7 (1) accumulation of evidence and other information
5-8 from water and sewer utilities and from the commission [and the
5-9 board] and from other sources for the purposes specified by this
5-10 chapter;
5-11 (2) preparation and presentation of evidence before
5-12 the commission or its appointed examiner in proceedings;
5-13 (3) conducting investigations of water and sewer
5-14 utilities under the jurisdiction of the commission;
5-15 (4) preparation of recommendations that the commission
5-16 undertake an investigation of any matter within its jurisdiction;
5-17 (5) preparation of recommendations and a report for
5-18 inclusion in the annual report of the commission;
5-19 (6) protection and representation of the public
5-20 interest, together with the public interest advocate, before the
5-21 commission; and
5-22 (7) other activities that are reasonably necessary to
5-23 enable the executive director and the staff to perform their
5-24 duties.
5-25 SECTION 5. Sections 13.002(5) and (8), Water Code, are
5-26 amended to read as follows:
5-27 (5) "Commission" means the Public Utility [Texas
6-1 Natural Resource Conservation] Commission of Texas.
6-2 (8) "Executive director" means the executive director
6-3 of the Public Utility [Texas Natural Resource Conservation]
6-4 Commission of Texas.
6-5 SECTION 6. Subchapter B, Chapter 13, Water Code, is amended
6-6 by adding Section 13.017 to read as follows:
6-7 Sec. 13.017. FEES. (a) The fee for filing an application
6-8 for setting or adjusting rates is $100 plus the cost of required
6-9 notice.
6-10 (b) Each provider of potable water or sewer utility service
6-11 shall collect a regulatory assessment from each retail customer. A
6-12 public utility shall collect from each retail customer a regulatory
6-13 assessment equal to one percent of the charge for retail water or
6-14 sewer service. A water supply or sewer service corporation shall
6-15 collect from each retail customer a regulatory assessment equal to
6-16 one-half of one percent of the charge for retail water or sewer
6-17 service. A "district," as that term is defined by Section 49.001,
6-18 that provides potable water or sewer utility service to retail
6-19 customers shall collect from each retail customer a regulatory
6-20 assessment equal to one-half of one percent of the charge for
6-21 retail water or sewer service.
6-22 (c) The regulatory assessment may be listed on the
6-23 customer's bill as a separate item and shall be collected in
6-24 addition to other charges for utility services.
6-25 (d) The commission shall use the assessments collected under
6-26 this section solely to pay costs and expenses incurred by the
6-27 commission in the regulation of districts, water supply or sewer
7-1 service corporations, and public utilities under this chapter.
7-2 (e) The commission shall annually use a portion of the
7-3 assessments to provide on-site technical assistance and training to
7-4 public utilities, water supply or sewer service corporations, and
7-5 districts. The commission shall contract with others to provide
7-6 the services.
7-7 (f) The commission by rule may establish due dates,
7-8 collection procedures, and penalties for late payment related to
7-9 regulatory assessments under this section. The executive director
7-10 shall collect all assessments from the utility service providers.
7-11 (g) The regulatory assessment does not apply to water that
7-12 has not been treated for the purpose of human consumption.
7-13 SECTION 7. Section 50.502(a), Water Code, is amended to read
7-14 as follows:
7-15 (a) The owner of property in a district on which the
7-16 district has imposed a tax but to which the district does not
7-17 provide services may petition the board to exclude the property
7-18 from the district if:
7-19 (1) the owner or the owner's predecessor in interest
7-20 has requested the district to provide services to the property and
7-21 the district has declined to provide services;
7-22 (2) all taxes the district has levied and assessed
7-23 against the property and all fees and assessments the district has
7-24 imposed against the property or the owner that are due and payable
7-25 on or before the date of the petition are fully paid; and
7-26 (3) the property is located in an area:
7-27 (A) separated from the remainder of the district
8-1 by a United States highway or interstate highway constructed by the
8-2 Texas Department of Transportation or a predecessor of the
8-3 department and the highway causes the provision of service by the
8-4 district to be financially unfeasible; or
8-5 (B) for which the Public Utility Commission of
8-6 Texas [commission] or a predecessor of the Public Utility
8-7 Commission of Texas [commission] has issued a certificate of
8-8 convenience and necessity under Subchapter G, Chapter 13, Water
8-9 Code, and service is being provided under that certificate.
8-10 SECTION 8. Sections 11.003(15) and (16), Utilities Code, are
8-11 amended to read as follows:
8-12 (15) "Proceeding" means a hearing, investigation,
8-13 inquiry, or other procedure for finding facts or making a decision
8-14 under this title or Chapter 13, Water Code. The term includes a
8-15 denial of relief or dismissal of a complaint.
8-16 (16) "Rate" includes:
8-17 (A) any compensation, tariff, charge, fare,
8-18 toll, rental, or classification that is directly or indirectly
8-19 demanded, observed, charged, or collected by a public utility for a
8-20 service, product, or commodity described in the definition of
8-21 utility in Section 31.002 or 51.002, or in Section 13.002, Water
8-22 Code; and
8-23 (B) a rule, practice, or contract affecting the
8-24 compensation, tariff, charge, fare, toll, rental, or
8-25 classification.
8-26 SECTION 9. Section 11.004, Utilities Code, is amended to
8-27 read as follows:
9-1 Sec. 11.004. DEFINITION OF UTILITY. (a) In Subtitle A,
9-2 "public utility" or "utility" means:
9-3 (1) an electric utility, as that term is defined by
9-4 Section 31.002; or
9-5 (2) a public utility or utility, as those terms are
9-6 defined by Section 51.002.
9-7 (b) In this chapter, and in Chapters 12-15, "utility"
9-8 includes a "water and sewer utility" as that term is defined by
9-9 Section 13.002, Water Code.
9-10 SECTION 10. Section 13.003(a), Utilities Code, is amended to
9-11 read as follows:
9-12 (a) The office:
9-13 (1) shall assess the effect of utility rate changes
9-14 and other regulatory actions on residential consumers in this
9-15 state;
9-16 (2) shall advocate in the office's own name a position
9-17 determined by the counsellor to be most advantageous to a
9-18 substantial number of residential consumers;
9-19 (3) may appear or intervene, as a party or otherwise,
9-20 as a matter of right on behalf of:
9-21 (A) residential consumers, as a class, in any
9-22 proceeding before the commission, including an alternative dispute
9-23 resolution proceeding; and
9-24 (B) small commercial consumers, as a class, in
9-25 any proceeding in which the counsellor determines that small
9-26 commercial consumers are in need of representation, including an
9-27 alternative dispute resolution proceeding;
10-1 (4) may initiate or intervene as a matter of right or
10-2 otherwise appear in a judicial proceeding:
10-3 (A) that involves an action taken by an
10-4 administrative agency in a proceeding, including an alternative
10-5 dispute resolution proceeding, in which the counsellor is
10-6 authorized to appear; [or]
10-7 (B) in which the counsellor determines that
10-8 residential electricity consumers or small commercial electricity
10-9 consumers are in need of representation; or
10-10 (C) in which the counsellor determines that
10-11 residential or small commercial consumers of water or sewer utility
10-12 service are in need of representation;
10-13 (5) is entitled to the same access as a party, other
10-14 than commission staff, to records gathered by the commission under
10-15 Section 14.204 or under Section 13.133(a), Water Code;
10-16 (6) is entitled to discovery of any nonprivileged
10-17 matter that is relevant to the subject matter of a proceeding or
10-18 petition before the commission;
10-19 (7) may represent an individual residential or small
10-20 commercial consumer with respect to the consumer's disputed
10-21 complaint concerning utility services that is unresolved before the
10-22 commission; and
10-23 (8) may recommend legislation to the legislature that
10-24 the office determines would positively affect the interests of
10-25 residential and small commercial consumers.
10-26 SECTION 11. Section 402.047(e), Local Government Code, is
10-27 amended to read as follows:
11-1 (e) Users residing within the established service area, but
11-2 outside the municipality's boundaries, may appeal rates established
11-3 for drainage charges to the Public Utility [Texas Natural Resource
11-4 Conservation] Commission of Texas as authorized by Section
11-5 13.043(b), [of the] Water Code.
11-6 SECTION 12. The following provisions of the Water Code are
11-7 repealed:
11-8 (1) Section 5.235(d); and
11-9 (2) Section 13.002(4).
11-10 SECTION 13. (a) On September 1, 2001:
11-11 (1) all of the rights, powers, duties, functions,
11-12 programs, and activities assigned to the Texas Natural Resource
11-13 Conservation Commission or to the commission's officers or
11-14 employees by Chapter 13, Water Code, that are related to water
11-15 rates and services are transferred to the Public Utility Commission
11-16 of Texas;
11-17 (2) all funds, obligations, contracts, property, and
11-18 records of the Texas Natural Resource Conservation Commission
11-19 relating to water rates and services are transferred to the Public
11-20 Utility Commission of Texas;
11-21 (3) all employees of the Texas Natural Resource
11-22 Conservation Commission who perform duties relating to water rates
11-23 and services become employees of the Public Utility Commission of
11-24 Texas, to be assigned duties by the executive director of the
11-25 commission; and
11-26 (4) all appropriations to the Texas Natural Resource
11-27 Conservation Commission for activities related to water rates and
12-1 services are transferred to the Public Utility Commission of Texas.
12-2 (b) Money collected by the Texas Natural Resource
12-3 Conservation Commission for fees related to applications pending
12-4 before the commission on September 1, 2001, are transferred to the
12-5 Public Utility Commission of Texas on that date. The application
12-6 fees may not be assessed again for the same applications.
12-7 (c) A rule or form adopted by the Texas Natural Resource
12-8 Conservation Commission that relates to water rates and services is
12-9 a rule or form of the Public Utility Commission of Texas and
12-10 remains in effect until altered by the commission. The secretary
12-11 of state is authorized to adopt rules as necessary to expedite the
12-12 implementation of this subsection.
12-13 (d) A reference in law to the Texas Natural Resource
12-14 Conservation Commission that relates to water rates and services
12-15 means the Public Utility Commission of Texas or the executive
12-16 director of the commission, as appropriate.
12-17 SECTION 14. (a) The transfer of powers, duties, functions,
12-18 programs, and activities under this Act does not affect or impair
12-19 any act done, any obligation, right, order, license, permit, rule,
12-20 criterion, standard, or requirement existing, any investigation
12-21 begun, or any penalty accrued under former law, and that law
12-22 remains in effect for any action concerning those matters.
12-23 (b) An action brought or proceeding commenced before the
12-24 effective date of this Act, including a contested case or a remand
12-25 of an action or proceeding by a reviewing court, is governed by the
12-26 law and rules applicable to the action or proceeding before the
12-27 effective date of this Act.
13-1 SECTION 15. This Act takes effect September 1, 2001.