By Van de Putte                                        S.B. No. 662
         77R1336 MTB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to combining the office of public insurance counsel, the
 1-3     Office of Public Utility Counsel, and the office of public interest
 1-4     counsel of the Texas Natural Resource Conservation Commission into
 1-5     a single independent office of public interest counsel; providing a
 1-6     penalty.
 1-7           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-8           SECTION 1. Subtitle A, Title 10, Government Code, is amended
 1-9     by adding Chapter 2010 to read as follows:
1-10              CHAPTER 2010.  OFFICE OF PUBLIC INTEREST COUNSEL
1-11                      SUBCHAPTER A.  GENERAL PROVISIONS
1-12           Sec. 2010.001.  DEFINITIONS.  In this chapter:
1-13                 (1)  "Department" means the Texas Department of
1-14     Insurance.
1-15                 (2)  "Office" means the office of public interest
1-16     counsel.
1-17           Sec. 2010.002.  APPLICATION OF SUNSET ACT.  The office of
1-18     public interest counsel is subject to Chapter 325 (Texas Sunset
1-19     Act).  Unless continued in existence as provided by that chapter,
1-20     the office is abolished and this chapter expires September 1, 2011.
1-21           Sec. 2010.003.  REFERENCE IN LAW.  (a)  A reference in law to
1-22     the office of public insurance counsel, the Office of Public
1-23     Utility Counsel, or the office of public interest counsel of the
1-24     Texas Natural Resource Conservation Commission, or to the head of
 2-1     one of those offices, means the office of public interest counsel
 2-2     as created by this chapter or, as appropriate, the public counsel.
 2-3           (b)  A reference in law to a fund, account, or source of
 2-4     revenue that is to be used to pay for an activity of the office of
 2-5     public insurance counsel, the Office of Public Utility Counsel, or
 2-6     the office of public interest counsel of the Texas Natural Resource
 2-7     Conservation Commission is considered to be a reference to a fund,
 2-8     account, or source of revenue that is to be used to pay for the
 2-9     applicable activity of the appropriate division of the office of
2-10     public interest counsel as created by this chapter.
2-11             (Sections 2010.004-2010.020 reserved for expansion
2-12             SUBCHAPTER B.  GENERAL POWERS AND DUTIES OF OFFICE
2-13           Sec. 2010.021.  LAWS ADMINISTERED AND ENFORCED BY OFFICE.
2-14     (a)  The office shall administer and enforce:
2-15                 (1)  Article 1.35A, Insurance Code;
2-16                 (2)  Subchapter G, Chapter 5, Water Code;
2-17                 (3)  Subchapter B, Chapter 101, Utilities Code; and
2-18                 (4)  Chapter 13, Utilities Code.
2-19           (b)  The office has any other powers and shall perform any
2-20     other duties given to the office under a law listed in Subsection
2-21     (a) or another law.
2-22           Sec. 2010.022.  INSURANCE DIVISION.  (a)  The office shall
2-23     establish an insurance division to represent interests of insurance
2-24     consumers.
2-25           (b)  Expenses for the division are paid from the assessment
2-26     imposed in Article 1.35B, Insurance Code.
2-27           Sec. 2010.023.  UTILITIES DIVISION.  (a)  The office shall
 3-1     establish a utilities division to represent the interests of
 3-2     residential and small commercial consumers of electricity and
 3-3     natural gas.
 3-4           (b)  An employee of the office whose duties primarily involve
 3-5     the activities of the utilities division receives compensation as
 3-6     prescribed by the legislature from the assessment imposed by
 3-7     Subchapter A, Chapter 16, Utilities Code.
 3-8           Sec. 2010.024.  NATURAL RESOURCE CONSERVATION DIVISION.  The
 3-9     office shall establish a natural resource conservation division to
3-10     ensure the Texas Natural Resource Conservation Commission promotes
3-11     the public's interest and is responsive to environmental and
3-12     citizens' concerns, including environmental quality and consumer
3-13     protection.
3-14             (Sections 2010.025-2010.040 reserved for expansion
3-15                        SUBCHAPTER C.  PUBLIC COUNSEL
3-16           Sec. 2010.041.  APPOINTMENT; TERM.  (a)  The executive
3-17     director of the office is the public counsel.
3-18           (b)  The public counsel is appointed by the governor with the
3-19     advice and consent of the senate.
3-20           (c)  The appointment of the public counsel shall be made
3-21     without regard to the race, color, disability, sex, religion, age,
3-22     or national origin of the appointee.
3-23           (d)  The public counsel serves a two-year term that expires
3-24     on February 1 of each odd-numbered year.
3-25           Sec. 2010.042.  QUALIFICATIONS.  The public counsel must:
3-26                 (1)  be licensed to practice law in this state; and
3-27                 (2)  have demonstrated a strong commitment to and
 4-1     involvement in efforts to safeguard the rights of consumers.
 4-2           Sec. 2010.043.  CERTAIN CONFLICTS OF INTEREST.  (a)  A person
 4-3     is not eligible for appointment as public counsel if the person or
 4-4     the person's spouse:
 4-5                 (1)  is employed by or participates in the management
 4-6     of a business entity or other organization that is regulated by or
 4-7     receives funds from the department, the Public Utility Commission
 4-8     of Texas, the Texas Natural Resource Conservation Commission, the
 4-9     Railroad Commission of Texas, or the office;
4-10                 (2)  directly or indirectly owns or controls more than
4-11     a 10 percent interest or a pecuniary interest with a value
4-12     exceeding $10,000 in:
4-13                       (A)  a business entity or other organization that
4-14     is regulated by or receives funds from the department, the Public
4-15     Utility Commission of Texas, the Texas Natural Resource
4-16     Conservation Commission, the Railroad Commission of Texas, or the
4-17     office; or
4-18                       (B)  a utility competitor, utility supplier, or
4-19     other entity affected by a decision by the department, the Public
4-20     Utility Commission of Texas, the Texas Natural Resource
4-21     Conservation Commission, the Railroad Commission of Texas, or the
4-22     office in a manner other than:
4-23                             (i)  the manner in which a member of the
4-24     general public is affected; or
4-25                             (ii)  by the setting of rates for the class
4-26     of customer to which the entity belongs; or
4-27                 (3)  uses or receives a substantial amount of tangible
 5-1     goods, services, or funds from the department, the Public Utility
 5-2     Commission of Texas, the Texas Natural Resource Conservation
 5-3     Commission, the Railroad Commission of Texas, or the office, other
 5-4     than compensation or reimbursement authorized by law for service as
 5-5     public counsel.
 5-6           (b)  A person required to register as a lobbyist under
 5-7     Chapter 305 because of the person's activities for compensation on
 5-8     behalf of a profession related to the operation of the department,
 5-9     the Public Utility Commission of Texas, the Texas Natural Resource
5-10     Conservation Commission, the Railroad Commission of Texas, or the
5-11     office may not serve as public counsel.
5-12           (c)  A person otherwise ineligible under Subsection (a)(2)
5-13     may be appointed and serve as public counsel if the person:
5-14                 (1)  notifies the attorney general, the department, the
5-15     Public Utility Commission of Texas, the Texas Natural Resource
5-16     Conservation Commission, the Railroad Commission of Texas, or the
5-17     office that the person is ineligible because of Subsection (a)(2);
5-18     and
5-19                 (2)  the person or the person's spouse divests the
5-20     ownership or control:
5-21                       (A)  before beginning service; or
5-22                       (B)  if the person is already serving, within a
5-23     reasonable time.
5-24           Sec. 2010.044.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
5-25     removal from office that the public counsel:
5-26                 (1)  does not have at the time of appointment or
5-27     maintain during service as public counsel the qualifications
 6-1     required by Section 2010.042;
 6-2                 (2)  violates a prohibition provided by Section
 6-3     2010.045 or 2010.062, or, subject to Section 2010.043(c), by
 6-4     Section 2010.043; or
 6-5                 (3)  cannot discharge the public counsel's duties for a
 6-6     substantial part of the term for which the public counsel is
 6-7     appointed because of illness or disability.
 6-8           (b)  The validity of an action of the office is not affected
 6-9     by the fact that the action is taken when a ground for removal of
6-10     the public counsel exists.
6-11           Sec. 2010.045.  PROHIBITED ACTS.  (a)  The public counsel may
6-12     not:
6-13                 (1)  have a direct or indirect interest in a business
6-14     entity regulated under:
6-15                       (A)  the Insurance Code or another insurance law
6-16     of this state;
6-17                       (B)  the Utilities Code; or
6-18                       (C)  a law administered or enforced by the Texas
6-19     Natural Resource Conservation Commission; or
6-20                 (2)  provide legal services directly or indirectly to
6-21     or be employed in any capacity by a business entity described by
6-22     Subdivision (1) or by the parent or a subsidiary of such a business
6-23     entity.
6-24           (b)  The prohibition prescribed by Subsection (a) applies
6-25     during the period of the public counsel's service and until the
6-26     second anniversary of the date the public counsel ceases to serve
6-27     as public counsel.
 7-1           (c)  This section does not prohibit a person from otherwise
 7-2     engaging in the private practice of law after the person ceases to
 7-3     serve as public counsel.
 7-4             (Sections 2010.046-2010.060 reserved for expansion
 7-5             SUBCHAPTER D.  OFFICE PERSONNEL AND ADMINISTRATION
 7-6           Sec. 2010.061.  PERSONNEL.  The public counsel may employ
 7-7     lawyers, economists, engineers, consultants, statisticians,
 7-8     accountants, clerical staff, and other employees as the public
 7-9     counsel considers necessary to implement this chapter.
7-10           Sec. 2010.062.  PROHIBITION ON RELATIONSHIP WITH TRADE
7-11     ASSOCIATION.  (a)  In this section, "Texas trade association" means
7-12     a cooperative and voluntarily joined association of businesses or
7-13     professionals regulated by this state or of business or
7-14     professional competitors in this state designed to assist its
7-15     members and its industry or profession in dealing with mutual
7-16     business or professional problems and in promoting their common
7-17     interest.
7-18           (b)  A person may not serve as public counsel and may not be
7-19     an office employee employed in a "bona fide executive,
7-20     administrative, or professional capacity," as that phrase is used
7-21     for purposes of establishing an exemption to the overtime
7-22     provisions of the federal Fair Labor Standards Act of 1938 (29
7-23     U.S.C. Section 201 et seq.), and its subsequent amendments, if:
7-24                 (1)  the person is an officer, employee, or paid
7-25     consultant of a Texas trade association whose members provide
7-26     services subject to regulation or whose members provide services
7-27     whose fees are subject to regulation by the department, the Public
 8-1     Utility Commission of Texas, the Texas Natural Resource
 8-2     Conservation Commission, the Railroad Commission of Texas, or the
 8-3     office; or
 8-4                 (2)  the person's spouse is an officer, manager, or
 8-5     paid consultant of a Texas trade association whose members provide
 8-6     services subject to regulation or whose members provide services
 8-7     whose fees are subject to regulation by the department, the Public
 8-8     Utility Commission of Texas, the Texas Natural Resource
 8-9     Conservation Commission, the Railroad Commission of Texas, or the
8-10     office.
8-11           Sec. 2010.063.  PROHIBITION ON SUBSEQUENT EMPLOYMENT OR
8-12     REPRESENTATION.  (a)  A former public counsel may not, before the
8-13     second anniversary of the date the person ceases to serve as public
8-14     counsel, make a communication or appearance described by Subsection
8-15     (b) to or before:
8-16                 (1)  the department, the Public Utility Commission of
8-17     Texas, the Texas Natural Resource Conservation Commission, the
8-18     Railroad Commission of Texas, the office, or, in a matter before
8-19     one of those agencies, the State Office of Administrative Hearings;
8-20     or
8-21                 (2)  an officer or employee of an agency listed in
8-22     Subdivision (1), with the prohibition extending to an officer or
8-23     employee of the State Office of Administrative Hearings, only in a
8-24     matter before one of the other listed agencies.
8-25           (b)  Subsection (a) applies to a communication or appearance
8-26     if the communication or appearance is made:
8-27                 (1)  on behalf of another person in connection with any
 9-1     matter on which the person seeks official action; or
 9-2                 (2)  with the intent to influence a decision or action,
 9-3     unless the former public counsel is acting on the person's own
 9-4     behalf and without remuneration.
 9-5           (c)  A former public counsel may not represent any person or
 9-6     receive compensation for services rendered on behalf of any person
 9-7     regarding a matter before the department, the Public Utility
 9-8     Commission of Texas, the Texas Natural Resource Conservation
 9-9     Commission, the Railroad Commission of Texas, or the office,
9-10     including a matter before one of those agencies being heard by the
9-11     State Office of Administrative Hearings, before the second
9-12     anniversary of the date the person ceases to serve as public
9-13     counsel.
9-14           (d)  A former public counsel or former employee of the office
9-15     may not represent any person or receive compensation for services
9-16     rendered on behalf of any person regarding a particular matter in
9-17     which the former public counsel or former employee participated
9-18     during the period of employment, either through personal
9-19     involvement or because the case or proceeding was a matter within
9-20     the former public counsel or former employee's official
9-21     responsibility.  In this subsection, "particular matter" has the
9-22     meaning assigned by Section 572.054.
9-23           (e)  Subsection (d) does not apply to a rulemaking proceeding
9-24     that was concluded before the former public counsel's or former
9-25     employee's service or employment ceased.  After a rulemaking
9-26     proceeding is concluded, a matter involving the application of the
9-27     rule is a different matter than the rulemaking proceeding under
 10-1    which the rule was adopted.
 10-2          (f)  A person commits an offense if the person violates this
 10-3    section.  An offense under this subsection is a Class A
 10-4    misdemeanor.
 10-5          Sec. 2010.064.  CAREER LADDER PROGRAM; PERFORMANCE
 10-6    EVALUATIONS; MERIT PAY.  (a)  The public counsel or the public
 10-7    counsel's designee shall develop an intra-agency career ladder
 10-8    program that addresses opportunities for mobility and advancement
 10-9    for office employees.  The program shall require intra-agency
10-10    postings of each position concurrently with any public posting.
10-11          (b)  The public counsel or the public counsel's designee
10-12    shall develop a system of annual performance evaluations that are
10-13    based on documented employee performance.  Merit pay for office
10-14    employees must be based on the system established under this
10-15    subsection.
10-16          Sec. 2010.065.  EQUAL EMPLOYMENT OPPORTUNITY POLICY
10-17    STATEMENT.  (a)  The public counsel or the public counsel's
10-18    designee shall prepare and maintain a written policy statement to
10-19    ensure implementation of a program of equal employment opportunity
10-20    under which all personnel transactions are made without regard to
10-21    race, color, disability, sex, religion, age, or national origin.
10-22          (b)  The policy statement under Subsection (a) must include:
10-23                (1)  personnel policies, including policies related to
10-24    recruitment, evaluation, selection, appointment, training, and
10-25    promotion of personnel, that are in compliance with the
10-26    requirements of Chapter 21, Labor Code;
10-27                (2)  a comprehensive analysis of the office workforce
 11-1    that meets federal and state guidelines;
 11-2                (3)  procedures by which a determination can be made
 11-3    about the extent of underuse in the office workforce of all persons
 11-4    for whom federal or state guidelines encourage a more equitable
 11-5    balance; and
 11-6                (4)  reasonable methods to appropriately address the
 11-7    underuse.
 11-8          (c)  A policy statement prepared under Subsection (b) must:
 11-9                (1)  cover an annual period;
11-10                (2)  be updated at least annually;
11-11                (3)  be reviewed by the Commission on Human Rights for
11-12    compliance with Subsection (b)(1); and
11-13                (4)  be filed with the governor's office.
11-14          (d)  The governor's office shall deliver a biennial report to
11-15    the legislature based on the information received under Subsection
11-16    (c).  The report may be made separately or as a part of other
11-17    biennial reports to the legislature.
11-18          Sec. 2010.066.  QUALIFICATIONS AND STANDARDS OF CONDUCT
11-19    INFORMATION.  The office shall provide to office employees as often
11-20    as necessary information regarding their:
11-21                (1)  qualifications for employment under this chapter;
11-22    and
11-23                (2)  responsibilities under applicable laws relating to
11-24    standards of conduct for employees.
11-25            (Sections 2010.067-2010.080 reserved for expansion
11-26          SUBCHAPTER E.  PUBLIC INTEREST INFORMATION AND REPORTS
11-27          Sec. 2010.081.  PUBLIC INTEREST INFORMATION.  The office
 12-1    shall prepare information of public interest describing the
 12-2    functions of the office.  The office shall make the information
 12-3    available to the public and appropriate state agencies.
 12-4          Sec. 2010.082.  PUBLIC PARTICIPATION.  (a)  The office shall
 12-5    comply with federal and state laws related to program and facility
 12-6    accessibility.
 12-7          (b)  The office shall prepare and maintain a written plan
 12-8    that describes how a person who does not speak English may be
 12-9    provided reasonable access to the office's programs and services.
12-10          Sec. 2010.083.  ANNUAL REPORT.  The office shall prepare
12-11    annually a complete and detailed written report accounting for all
12-12    funds received and disbursed by the office during the preceding
12-13    fiscal year.  The annual report must meet the reporting
12-14    requirements applicable to financial reporting in general law and
12-15    the General Appropriations Act.
12-16          SECTION 2. The heading of Article 1.35A, Insurance Code, is
12-17    amended to read as follows:
12-18          Art. 1.35A.  OFFICE OF PUBLIC INTEREST [INSURANCE] COUNSEL
12-19          SECTION 3. Section 1, Article 1.35A, Insurance Code, is
12-20    amended to read as follows:
12-21          Sec. 1.  A reference in law to the [The independent] office
12-22    of public insurance counsel or to the head of that office means the
12-23    office of public interest counsel or, as appropriate, the public
12-24    counsel, as created by Chapter 2010, Government Code [is created to
12-25    represent the interests of insurance consumers in Texas].
12-26          SECTION 4. Sections 5(a) and (e), Article 1.35A, Insurance
12-27    Code, are amended to read as follows:
 13-1          (a)  The office of public interest [insurance] counsel may
 13-2    assess the impact of insurance rates, rules, and forms on insurance
 13-3    consumers in Texas and, in its own name, shall act as an advocate
 13-4    of positions that are most advantageous to a substantial number of
 13-5    insurance consumers as determined by the public counsel for the
 13-6    office.
 13-7          (e)  The office of public interest [insurance] counsel shall
 13-8    develop and implement a system to compare and evaluate, on an
 13-9    objective basis, the quality of care provided by and the
13-10    performance of health maintenance organizations that are
13-11    established under the Texas Health Maintenance Organization Act
13-12    (Chapter 20A, Vernon's Texas Insurance Code).
13-13                (1)  In developing the system under this subsection,
13-14    the office of public interest [insurance] counsel may use
13-15    information or data from any person, agency, organization, or
13-16    governmental unit that the office deems reliable.
13-17                (2)  The office of public interest [insurance] counsel
13-18    shall develop and issue annually consumer report cards that
13-19    identify and compare, on an objective basis, health maintenance
13-20    organizations in this state.  The consumer report card may be based
13-21    on information or data from any person, agency, organization, or
13-22    governmental unit that the office deems reliable.
13-23                (3)  The department and the health care information
13-24    council shall provide information or data as requested by the
13-25    office of public interest [insurance] counsel in furtherance of
13-26    these duties.
13-27                (4)  The office of public interest [insurance] counsel
 14-1    shall use the information collected or received under this
 14-2    subsection for the benefit of the public.  Except as provided by
 14-3    this subsection, the information is subject to the open records
 14-4    law, Chapter 552, Government Code, and the office of public
 14-5    interest [insurance] counsel shall make determinations on requests
 14-6    for information in favor of access.
 14-7                (5)  The office of public interest [insurance] counsel
 14-8    is entitled to information that is confidential under any law of
 14-9    this state, including Section 27, Texas Health Maintenance
14-10    Organization Act (Article 20A.27, Vernon's Texas Insurance Code),
14-11    Chapter 108, Health and Safety Code, and the open records law,
14-12    Chapter 552, Government Code.
14-13                (6)  The office of public interest [insurance] counsel
14-14    may not make public confidential information provided to the office
14-15    under this subsection but may disclose a summary of the information
14-16    that does not directly or indirectly identify the health
14-17    maintenance organization that is the subject of the information.
14-18    The office of public interest [insurance] counsel may not release,
14-19    and a person or entity may not gain access to, any information
14-20    that:
14-21                      (A)  could reasonably be expected to reveal the
14-22    identity of a patient or physician or that reveals the zip code of
14-23    a patient's primary residence;
14-24                      (B)  discloses provider discounts or
14-25    differentials between payments and billed charges; or
14-26                      (C)  relates to actual payments to an identified
14-27    provider made by a payer.
 15-1                (7)  Information collected or used by the office of
 15-2    public interest [insurance] counsel under this subsection is
 15-3    subject to the confidentiality provisions and criminal penalties
 15-4    of:
 15-5                      (A)  Section 81.103, Health and Safety Code;
 15-6                      (B)  Section 311.037, Health and Safety Code; and
 15-7                      (C)  Chapter 159, Occupations Code [Section 5.08,
 15-8    Medical Practice Act (Article 4495b, Vernon's Texas Civil
 15-9    Statutes)].
15-10                (8)  Information that is in the possession of the
15-11    office of public interest [insurance] counsel and that relates to
15-12    patients and physicians and any compilation, report, or analysis
15-13    produced from the information that identifies patients and
15-14    physicians is not:
15-15                      (A)  subject to discovery, subpoena, or other
15-16    means of legal compulsion for release to any person or entity; or
15-17                      (B)  admissible in any civil, administrative, or
15-18    criminal proceeding.
15-19                (9)  Notwithstanding Subdivision (6)(A) of this
15-20    subsection, the office of public interest [insurance] counsel may
15-21    use zip code information to analyze information on a geographic
15-22    basis.
15-23                (10)  The office of public interest [insurance] counsel
15-24    may not endorse or recommend a specific health maintenance
15-25    organization or plan, or subjectively rate or rank such
15-26    organizations or plans, other than through comparison and
15-27    evaluation of objective criteria.
 16-1                (11)  The office of public interest [insurance] counsel
 16-2    shall provide a copy of the consumer report to any person on
 16-3    request on payment of a reasonable fee.
 16-4          SECTION 5.  Article 1.35B, Insurance Code, is amended to read
 16-5    as follows:
 16-6          Art. 1.35B.  ASSESSMENT FOR THE OFFICE OF PUBLIC INTEREST
 16-7    [INSURANCE] COUNSEL, INSURANCE DIVISION.  (a)  To defray the costs
 16-8    of [creating,] administering[,] and operating the insurance
 16-9    division of the office of public interest [insurance] counsel, the
16-10    comptroller shall collect the following assessments annually in
16-11    connection with the collection of other taxes imposed on insurers:
16-12                (1)  each property and casualty insurer authorized to
16-13    do business in this state shall pay an annual assessment of 5.7
16-14    cents for each policy of property and casualty insurance in force
16-15    at year end in this state;
16-16                (2)  each insurer shall pay an annual assessment of 5.7
16-17    cents for each individual policy, and for each certificate of
16-18    insurance evidencing coverage under a group policy, of life,
16-19    health, or accident insurance written for delivery and placed in
16-20    force with the initial premium thereon paid in full in this state
16-21    during each calendar year if the insurer is authorized to do
16-22    business in this state under:
16-23                      (A)  Chapter 3, 10, 11, 14, 20, 22, 23, or 25 of
16-24    this code;
16-25                      (B)  Chapter 113, Acts of the 53rd Legislature,
16-26    Regular Session, 1953 (Article 3.49-1, Vernon's Texas Insurance
16-27    Code);
 17-1                      (C)  Section 1, Chapter 417, Acts of the 56th
 17-2    Legislature, Regular Session, 1959 (Article 3.49-2, Vernon's Texas
 17-3    Insurance Code);
 17-4                      (D)  the Texas Employees Uniform Group Insurance
 17-5    Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code);
 17-6                      (E)  the Texas State College and University
 17-7    Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
 17-8    Texas Insurance Code);
 17-9                      (F)  Section 1, Chapter 123, Acts of the 60th
17-10    Legislature, Regular Session, 1967 (Article 3.51-3, Vernon's Texas
17-11    Insurance Code);
17-12                      (G)  Section 1, Chapter 387, Acts of the 55th
17-13    Legislature, Regular Session, 1957 (Article 3.62-1, Vernon's Texas
17-14    Insurance Code);
17-15                      (H)  Sections 1 to 3A and 4 to 13, Chapter 397,
17-16    Acts of the 54th Legislature, Regular Session, 1955 (Articles
17-17    3.70-1 to 3.70-3A and 3.70-4 to 3.70-11, Vernon's Texas Insurance
17-18    Code); or
17-19                      (I)  the Texas Health Maintenance Organization
17-20    Act (Chapter 20A, Vernon's Texas Insurance Code); and
17-21                (3)  each title insurance company authorized to do
17-22    business in this state shall pay an annual assessment of 5.7 cents
17-23    for each owner policy and mortgage policy of title insurance
17-24    written for delivery in this state during each calendar year and
17-25    for which the full basic premium is charged.
17-26          (b)  The office of public interest [insurance] counsel
17-27    account, insurance division, is created in the State Treasury, and
 18-1    all assessments collected under this article must be deposited in
 18-2    the State Treasury to the credit of that account as provided by
 18-3    rules of the comptroller of public accounts.
 18-4          (c)  The comptroller of public accounts shall adopt necessary
 18-5    rules to provide for the payment to the office of public interest
 18-6    [insurance] counsel account, insurance division, of assessments
 18-7    collected from insurers under this article.
 18-8          (d)  Money deposited in the office of public interest
 18-9    [insurance] counsel account, insurance division, may be
18-10    appropriated for the purpose of paying the costs of [creating,]
18-11    administering[,] and operating the insurance division of the
18-12    office.
18-13          SECTION 6. Sections 11.003(8) and (12), Utilities Code, are
18-14    amended to read as follows:
18-15                (8)  "Counsellor" or "public counsel" means the public
18-16    [utility] counsel created under Chapter 2010, Government Code.
18-17                (12)  "Office" means the office of public interest
18-18    counsel created under Chapter 2010, Government Code [Office of
18-19    Public Utility Counsel].
18-20          SECTION 7. The heading of Chapter 13, Utilities Code, is
18-21    amended to read as follows:
18-22                CHAPTER 13.  POWERS AND DUTIES [OFFICE] OF
18-23                     PUBLIC INTEREST [UTILITY] COUNSEL
18-24          SECTION 8. Sections 13.003(a) and (c), Utilities Code, are
18-25    amended to read as follows:
18-26          (a)  The office:
18-27                (1)  shall assess the effect of utility rate changes
 19-1    and other regulatory actions on residential consumers in this
 19-2    state;
 19-3                (2)  shall advocate in the office's own name a position
 19-4    determined by the public counsel [counsellor] to be most
 19-5    advantageous to a substantial number of residential consumers;
 19-6                (3)  may appear or intervene, as a party or otherwise,
 19-7    as a matter of right on behalf of:
 19-8                      (A)  residential consumers, as a class, in any
 19-9    proceeding before the commission, including an alternative dispute
19-10    resolution proceeding; and
19-11                      (B)  small commercial consumers, as a class, in
19-12    any proceeding in which the public counsel [counsellor] determines
19-13    that small commercial consumers are in need of representation,
19-14    including an alternative dispute resolution proceeding;
19-15                (4)  may initiate or intervene as a matter of right or
19-16    otherwise appear in a judicial proceeding:
19-17                      (A)  that involves an action taken by an
19-18    administrative agency in a proceeding, including an alternative
19-19    dispute resolution proceeding, in which the public counsel
19-20    [counsellor] is authorized to appear; or
19-21                      (B)  in which the public counsel [counsellor]
19-22    determines that residential electricity consumers or small
19-23    commercial electricity consumers are in need of representation;
19-24                (5)  is entitled to the same access as a party, other
19-25    than commission staff, to records gathered by the commission under
19-26    Section 14.204;
19-27                (6)  is entitled to discovery of any nonprivileged
 20-1    matter that is relevant to the subject matter of a proceeding or
 20-2    petition before the commission;
 20-3                (7)  may represent an individual residential or small
 20-4    commercial consumer with respect to the consumer's disputed
 20-5    complaint concerning utility services that is unresolved before the
 20-6    commission; and
 20-7                (8)  may recommend legislation to the legislature that
 20-8    the office determines would positively affect the interests of
 20-9    residential and small commercial consumers.
20-10          (c)  The appearance of the public counsel [counsellor] in a
20-11    proceeding does not preclude the appearance of other parties on
20-12    behalf of residential or small commercial consumers.  The public
20-13    counsel [counsellor] may not be grouped with any other party.
20-14          SECTION 9. Chapter 13, Utilities Code, is amended by adding
20-15    Section 13.004 to read as follows:
20-16          Sec. 13.004.  REFERENCES IN LAW.  (a)  A reference in law to
20-17    the counsellor is a reference to the public counsel created under
20-18    Chapter 2010, Government Code.
20-19          (b)  A reference in law to the Office of Public Utility
20-20    Counsel is a reference to the office of public interest counsel
20-21    created under Chapter 2010, Government Code.
20-22          SECTION 10. Section 101.003(5), Utilities Code, is amended to
20-23    read as follows:
20-24                (5)  "Counsellor" or "public counsel" means the public
20-25    counsel created under Chapter 2010, Government Code [chief
20-26    executive of the Office of Public Utility Counsel].
20-27          SECTION 11. The heading of Subchapter B, Chapter 101,
 21-1    Utilities Code, is amended to read as follows:
 21-2               SUBCHAPTER B.  POWERS AND DUTIES [OFFICE] OF
 21-3                     PUBLIC INTEREST [UTILITY] COUNSEL
 21-4          SECTION 12. Section 101.052(d), Utilities Code, is amended to
 21-5    read as follows:
 21-6          (d)  The appearance of the public counsel [counsellor] in a
 21-7    proceeding does not preclude the appearance of other parties on
 21-8    behalf of residential consumers.  The public counsel [counsellor]
 21-9    may not be grouped with any other party.
21-10          SECTION 13.  Section 5.273, Water Code, is amended to read as
21-11    follows:
21-12          Sec. 5.273.  DUTIES OF THE PUBLIC [INTEREST] COUNSEL.  The
21-13    public counsel shall represent the public interest and be a party
21-14    to all proceedings before the commission.
21-15          SECTION 14.  Section 5.275, Water Code, is amended to read as
21-16    follows:
21-17          Sec. 5.275.  APPEAL.  A ruling, decision, or other act of the
21-18    commission may not be appealed by the public counsel.
21-19          SECTION 15. Subchapter G, Chapter 5, Water Code, is amended
21-20    by adding Section 5.276 to read as follows:
21-21          Sec. 5.276.  REFERENCES IN LAW.  (a)  A reference in law to
21-22    the public interest counsel or to the previous name for that
21-23    position, the public interest advocate, is a reference to the
21-24    public counsel created under Chapter 2010, Government Code.
21-25          (b)  A reference in law to the office of public interest
21-26    counsel or the office of public interest is a reference to the
21-27    office of public interest counsel created under Chapter 2010,
 22-1    Government Code.
 22-2          SECTION 16. The following provisions are repealed:
 22-3                (1)  Sections 5.271 and 5.272, Water Code;
 22-4                (2)  Sections 13.001, 13.002, 101.051, 101.053, and
 22-5    101.054, Utilities Code;
 22-6                (3)  Subchapters B, C, and D, Chapter 13, Utilities
 22-7    Code;
 22-8                (4)  the subchapter heading to Subchapter A, Chapter
 22-9    13, Utilities Code; and
22-10                (5)  Sections 2, 3, 4, 6, and 7, Article 1.35A,
22-11    Insurance Code.
22-12          SECTION 17. As soon as possible after September 1, 2001, the
22-13    governor shall appoint a public counsel under Chapter 2010,
22-14    Government Code, as added by this Act, to a term ending February 1,
22-15    2003.
22-16          SECTION 18.  (a)  On the appointment of a public counsel
22-17    under Chapter 2010, Government Code, as added by this Act, the
22-18    office of public interest counsel of the Texas Natural Resource
22-19    Conservation Commission, the Office of Public Utility Counsel, and
22-20    the office of public insurance counsel are abolished and the
22-21    following are transferred to the office of public interest counsel
22-22    as created by this Act:
22-23                (1)  all of the rights, powers, duties, functions,
22-24    programs, and activities assigned to:
22-25                      (A)  the Texas Natural Resource Conservation
22-26    Commission or to the commission's officers or employees by
22-27    Subchapter G, Chapter 5, Water Code;
 23-1                      (B)  the Office of Public Utility Counsel or to
 23-2    the head of the office or the office's employees; and
 23-3                      (C)  the office of public insurance counsel or to
 23-4    the head of the office or the office's employees;
 23-5                (2)  all funds, obligations, contracts, property, and
 23-6    records of:
 23-7                      (A)  the Texas Natural Resource Conservation
 23-8    Commission relating to the activities of the office of public
 23-9    interest counsel under Subchapter G, Chapter 5, Water Code;
23-10                      (B)  the Office of Public Utility Counsel; and
23-11                      (C)  the office of public insurance counsel;
23-12                (3)  all employees of:
23-13                      (A)  the Texas Natural Resource Conservation
23-14    Commission who perform duties relating to representing the interest
23-15    of the public under Subchapter G, Chapter 5, Water Code, to be
23-16    assigned duties by the public counsel;
23-17                      (B)  the Office of Public Utility Counsel, to be
23-18    assigned duties by the public counsel; and
23-19                      (C)  the office of public insurance counsel, to
23-20    be assigned duties by the public counsel; and
23-21                (4)  all appropriations to:
23-22                      (A)  the Texas Natural Resource Conservation
23-23    Commission for activities relating to the performance of duties
23-24    under Subchapter G, Chapter 5, Water Code;
23-25                      (B)  the Office of Public Utility Counsel; and
23-26                      (C)  the office of public insurance counsel.
23-27          (b)  A rule or form adopted by the Texas Natural Resource
 24-1    Conservation Commission that relates to representing the interests
 24-2    of consumers or the public under Subchapter G, Chapter 5, Water
 24-3    Code, by the Office of Public Utility Counsel, or by the office of
 24-4    public insurance counsel is a rule or form of the office of public
 24-5    interest counsel as created by this Act and remains in effect until
 24-6    altered by the office.  The secretary of state may take action
 24-7    necessary to expedite the implementation of this subsection.
 24-8          (c)  The office of public interest counsel as created by this
 24-9    Act assumes, without a change in status, the position of the office
24-10    of public interest counsel of the Texas Natural Resource
24-11    Conservation Commission, the Office of Public Utility Counsel, or
24-12    the office of public insurance counsel in any proceeding.
24-13          (d)  Until a public counsel is appointed under Chapter 2010,
24-14    Government Code, as added by this Act, the office of public
24-15    interest counsel of the Texas Natural Resource Conservation
24-16    Commission, the Office of Public Utility Counsel, and the office of
24-17    public insurance counsel shall continue to function under
24-18    applicable law as it existed immediately before the effective date
24-19    of this Act or as modified by another Act of the 77th Legislature,
24-20    Regular Session, 2001, that becomes law, and the former law is
24-21    continued in effect for that purpose.
24-22          SECTION 19. The transfer of powers, duties, functions,
24-23    programs, and activities under this Act does not affect or impair
24-24    any act done, any obligation, right, order, license, permit, rule,
24-25    criterion, standard, or requirement existing, any investigation
24-26    begun, or any penalty accrued under former law.
24-27          SECTION 20. This Act takes effect September 1, 2001.