78R78 CBH-D
By: Homer H.B. No. 2596
A BILL TO BE ENTITLED
AN ACT
relating to the abolishment of the Public Utility Commission of
Texas and to the transfer of its powers and duties to the Railroad
Commission of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.002(c), Utilities Code, is amended to
read as follows:
(c) Significant changes have occurred in the
telecommunications and electric power industries since the Public
Utility Regulatory Act was originally adopted. Changes in
technology and market structure have increased the need for minimum
standards of service quality, customer service, and fair business
practices to ensure high-quality service to customers and a healthy
marketplace where competition is permitted by law. It is the
purpose of this title to grant the commission [Public Utility
Commission of Texas] authority to make and enforce rules necessary
to protect customers of telecommunications and electric services
consistent with the public interest.
SECTION 2. Sections 11.003(4) and (5), Utilities Code, are
amended to read as follows:
(4) "Commission" means the Railroad [Public Utility]
Commission of Texas.
(5) "Commissioner" means a member of the Railroad
[Public Utility] Commission of Texas.
SECTION 3. Section 12.001, Utilities Code, is amended to
read as follows:
Sec. 12.001. RAILROAD [PUBLIC UTILITY] COMMISSION OF TEXAS.
The Railroad [Public Utility] Commission of Texas exercises the
jurisdiction and powers conferred by this title.
SECTION 4. Sections 15.024(a), (b), (d), (e), and (f),
Utilities Code, are amended to read as follows:
(a) If the commission [executive director] determines that
a violation has occurred, the commission [executive director] may
issue [to the commission] a report that states the facts on which
the determination is based and the commission's proposed [executive
director's recommendation on the imposition of an] administrative
penalty, including [a recommendation on] the amount of the penalty.
(b) Not later than the 14th day after the date the report is
issued, the commission [executive director] shall give written
notice of the report to the person against whom the penalty may be
assessed. The notice may be given by certified mail. The notice
must:
(1) include a brief summary of the alleged violation;
(2) state the amount of the proposed [recommended]
penalty; and
(3) inform the person that the person has a right to a
hearing on the occurrence of the violation, the amount of the
penalty, or both the occurrence of the violation and the amount of
the penalty.
(d) Not later than the 20th day after the date the person
receives the notice, the person may accept the determination and
proposed [recommended] penalty of the commission [executive
director] in writing or may make a written request for a hearing on
the occurrence of the violation, the amount of the penalty, or both
the occurrence of the violation and the amount of the penalty.
(e) If the person accepts the commission's [executive
director's] determination and proposed [recommended] penalty, the
commission by order shall approve the determination and impose the
proposed [recommended] penalty.
(f) If the person requests a hearing or fails to timely
respond to the notice, the commission [executive director] shall
set a hearing and give notice of the hearing to the person. The
hearing shall be held by an administrative law judge of the State
Office of Administrative Hearings. The administrative law judge
shall make findings of fact and conclusions of law and promptly
issue to the commission a proposal for a decision about the
occurrence of the violation and the amount of a proposed penalty.
Based on the findings of fact, conclusions of law, and proposal for
a decision, the commission by order may find that a violation has
occurred and impose a penalty or may find that no violation
occurred.
SECTION 5. Sections 15.025(b), (c), and (d), Utilities
Code, are amended to read as follows:
(b) Not later than the 30th day after the date the
commission's order is final as provided by Section 2001.144,
Government Code, a person who acts under Subsection (a)(3) may:
(1) stay enforcement of the penalty by:
(A) paying the amount of the penalty to the court
for placement in an escrow account; or
(B) giving to the court a supersedeas bond that
is approved by the court for the amount of the penalty and that is
effective until all judicial review of the commission's order is
final; or
(2) request the court to stay enforcement of the
penalty by:
(A) filing with the court a sworn affidavit of
the person stating that the person is financially unable to pay the
amount of the penalty and is financially unable to give the
supersedeas bond; and
(B) giving a copy of the affidavit to the
commission [executive director] by certified mail.
(c) The commission [executive director], on receipt of a
copy of an affidavit under Subsection (b)(2), may file with the
court, not later than the fifth day after the date the copy is
received, a contest to the affidavit. The court shall hold a
hearing on the facts alleged in the affidavit as soon as practicable
and shall stay the enforcement of the penalty on finding that the
alleged facts are true. The person who files an affidavit has the
burden of proving that the person is financially unable to pay the
amount of the penalty and to give a supersedeas bond.
(d) If the person does not pay the amount of the penalty and
the enforcement of the penalty is not stayed, the commission
[executive director] may refer the matter to the attorney general
for collection of the amount of the penalty.
SECTION 6. Section 15.027(c), Utilities Code, is amended
to read as follows:
(c) The commission [executive director] may delegate any
power or duty relating to an administrative penalty given the
commission [executive director] by this subchapter to a person
designated by the commission [executive director].
SECTION 7. Section 39.157(d), Utilities Code, is amended
to read as follows:
(d) The [Not later than January 10, 2000, the] commission
shall adopt rules and enforcement procedures to govern transactions
or activities between a transmission and distribution utility and
its competitive affiliates to avoid potential market power abuses
and cross-subsidizations between regulated and competitive
activities both during the transition to and after the introduction
of competition. Nothing in this subsection is intended to affect or
modify the obligations or duties relating to any rules or standards
of conduct that may apply to a utility or the utility's affiliates
under orders or regulations of the Federal Energy Regulatory
Commission or the Securities and Exchange Commission. A utility
that is subject to statutes or regulations in other states that
conflict with a provision of this section may petition the
commission for a waiver of the conflicting provision on a showing of
good cause. The rules adopted under this section shall ensure that:
(1) a utility makes any products and services, other
than corporate support services, that it provides to a competitive
affiliate available, contemporaneously and in the same manner, to
the competitive affiliate's competitors and applies its tariffs,
prices, terms, conditions, and discounts for those products and
services in the same manner to all similarly situated entities;
(2) a utility does not:
(A) give a competitive affiliate or a competitive
affiliate's customers any preferential advantage, access, or
treatment regarding services other than corporate support
services; or
(B) act in a manner that is discriminatory or
anticompetitive with respect to a nonaffiliated competitor of a
competitive affiliate;
(3) a utility providing electric transmission or
distribution services:
(A) provides those services on nondiscriminatory
terms and conditions;
(B) does not establish as a condition for the
provision of those services the purchase of other goods or services
from the utility or the competitive affiliate; and
(C) does not provide competitive affiliates
preferential access to the utility's transmission and distribution
systems or to information about those systems;
(4) a utility does not release any proprietary
customer information to a competitive affiliate or any other
entity, other than an independent organization as defined by
Section 39.151 or a provider of corporate support services for the
purposes of providing the services, without obtaining prior
verifiable authorization, as determined from the commission, from
the customer;
(5) a utility does not:
(A) communicate with a current or potential
customer about products or services offered by a competitive
affiliate in a manner that favors a competitive affiliate; or
(B) allow a competitive affiliate, before
September 1, 2005, to use the utility's corporate name, trademark,
brand, or logo unless the competitive affiliate includes on
employee business cards and in its advertisements of specific
services to existing or potential residential or small commercial
customers locating within the utility's certificated service area a
disclaimer that states, "(Name of competitive affiliate) is not the
same company as (name of utility) and is not regulated by the
Railroad [Public Utility] Commission of Texas, and you do not have
to buy (name of competitive affiliate)'s products to continue to
receive quality regulated services from (name of utility).";
(6) a utility does not conduct joint advertising or
promotional activities with a competitive affiliate in a manner
that favors the competitive affiliate;
(7) a utility is a separate, independent entity from
any competitive affiliates and, except as provided by Subdivisions
(8) and (9), does not share employees, facilities, information, or
other resources, other than permissible corporate support
services, with those competitive affiliates unless the utility can
prove to the commission that the sharing will not compromise the
public interest;
(8) a utility's office space is physically separated
from the office space of the utility's competitive affiliates by
being located in separate buildings or, if within the same
building, by a method such as having the offices on separate floors
or with separate access, unless otherwise approved by the
commission;
(9) a utility and a competitive affiliate:
(A) may, to the extent the utility implements
adequate safeguards precluding employees of a competitive
affiliate from gaining access to information in a manner
inconsistent with Subsection (g) or (i), share common officers and
directors, property, equipment, offices to the extent consistent
with Subdivision (8), credit, investment, or financing
arrangements to the extent consistent with Subdivision (17),
computer systems, information systems, and corporate support
services; and
(B) are not required to enter into prior written
contracts or competitive solicitations for non-tariffed
transactions between the utility and the competitive affiliate,
except that the commission by rule may require the utility and the
competitive affiliate to enter into prior written contracts or
competitive solicitations for certain classes of transactions,
other than corporate support services, that have a per unit value of
more than $75,000 or that total more than $1 million;
(10) a utility does not temporarily assign, for less
than one year, employees engaged in transmission or distribution
system operations to a competitive affiliate unless the employee
does not have knowledge of information that is intended to be
protected under this section;
(11) a utility does not subsidize the business
activities of an affiliate with revenues from a regulated service;
(12) a utility and its affiliates fully allocate costs
for any shared services, corporate support services, and other
items described by Subdivisions (8) and (9);
(13) a utility and its affiliates keep separate books
of accounts and records and the commission may review records
relating to a transaction between a utility and an affiliate;
(14) assets transferred or services provided between a
utility and an affiliate, other than transfers that facilitate
unbundling under Section 39.051 or asset valuation under Section
39.262, are priced at a level that is fair and reasonable to the
customers of the utility and reflects the market value of the assets
or services or the utility's fully allocated cost to provide those
assets or services;
(15) regulated services that a utility provides on a
routine or recurring basis are included in a tariff that is subject
to commission approval;
(16) each transaction between a utility and a
competitive affiliate is conducted at arm's length; and
(17) a utility does not allow an affiliate to obtain
credit under an arrangement that would include a specific pledge of
assets in the rate base of the utility or a pledge of cash
reasonably necessary for utility operations.
SECTION 8. Section 163.123, Utilities Code, is amended to
read as follows:
Sec. 163.123. AUTHORITY OF RAILROAD [PUBLIC UTILITY]
COMMISSION. A joint powers agency created under this subchapter is:
(1) subject to all applicable provisions of Title 2;
and
(2) under the jurisdiction of the Railroad [Public
Utility] Commission of Texas as provided by Title 2.
SECTION 9. Section 183.001(1), Utilities Code, is amended
to read as follows:
(1) "Commission" means the Railroad [Public Utility]
Commission of Texas.
SECTION 10. Section 184.001, Utilities Code, is amended to
read as follows:
Sec. 184.001. DEFINITION. In this chapter, "commission"
means the Railroad [Public Utility] Commission of Texas.
SECTION 11. Section 185.001(1), Utilities Code, is amended
to read as follows:
(1) "Commission" means the Railroad [Public Utility]
Commission of Texas.
SECTION 12. Section 104.003(a), Agriculture Code, is
amended to read as follows:
(a) This chapter does not apply to:
(1) an order or rule issued by the Railroad [Public
Utility] Commission of Texas; or
(2) an order or rule concerning the operation of
common carriers issued by the Interstate Commerce Commission.
SECTION 13. Section 38.053, Business & Commerce Code, is
amended to read as follows:
Sec. 38.053. PERSONS OR ITEMS REGULATED BY OTHER LAW. This
chapter does not apply to:
(1) a person offering or selling a security that has
been qualified for sale under Section 7, The Securities Act
(Article 581-7, Vernon's Texas Civil Statutes), or that is subject
to an exemption under Section 5 or 6 of that Act;
(2) a publicly traded corporation registered with the
Securities and Exchange Commission or the State Securities Board,
or a subsidiary or agent of the corporation;
(3) a person licensed under the Insurance Code if the
solicited transaction is governed by the Insurance Code;
(4) a supervised financial institution or parent,
subsidiary, or affiliate of a supervised financial institution;
(5) a person or affiliate of a person whose business is
regulated by the Railroad [Public Utility] Commission of Texas
under Title 2, Utilities Code, except that this chapter applies to a
person or affiliate of a person who is regulated by the Railroad
[Public Utility] Commission of Texas under Title 2, Utilities Code,
only with respect to one or more automated dial announcing devices;
(6) a person subject to the control or licensing
regulations of the Federal Communications Commission;
(7) a person selling a contractual plan regulated by
the Federal Trade Commission trade regulation on use of negative
option plans by sellers in commerce under 16 C.F.R. Part 425;
(8) a person subject to the filing requirements of
Chapter 1803, Occupations Code; or
(9) a person soliciting a transaction regulated by the
Commodity Futures Trading Commission if the person is registered or
temporarily licensed for that activity with the Commodity Futures
Trading Commission under the Commodity Exchange Act (7 U.S.C.
Section 1 et seq.) and the registration or license has not expired
or been suspended or revoked.
SECTION 14. Section 43.002(2), Business & Commerce Code,
as added by Chapter 1429, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
(2) "Commission" means the Railroad [Public Utility]
Commission of Texas.
SECTION 15. Section 1(7), Article 18.21, Code of Criminal
Procedure, is amended to read as follows:
(7) "Trap and trace device" means a device that
records an incoming electronic or other impulse that identifies the
originating number of an instrument or device from which a wire or
electronic communication was transmitted. The term does not
include a device or telecommunications network used in providing:
(A) a caller identification service authorized
by the Railroad [Public Utility] Commission of Texas under
Subchapter E, Chapter 55, Utilities Code;
(B) the services referenced in Section
55.102(b), Utilities Code; or
(C) a caller identification service provided by a
commercial mobile radio service provider licensed by the Federal
Communications Commission.
SECTION 16. Section 88.215(b), Education Code, is amended
to read as follows:
(b) The advisory committee consists of 12 members appointed
as follows:
(1) one representative of Texas A&M University
appointed by the director of the Texas Agricultural Experiment
Station;
(2) one representative of Texas Tech University
appointed by the dean of the College of Agriculture of Texas Tech
University;
(3) one representative of The University of Texas
appointed by the vice president for research of The University of
Texas System;
(4) one representative of the Department of
Agriculture appointed by the commissioner of agriculture;
(5) one representative of the Parks and Wildlife
Department appointed by the director of the department;
(6) one representative of the Railroad [Public
Utility] Commission of Texas appointed by the [executive director
of the] commission;
(7) one representative of municipal governments
appointed by the governor;
(8) one representative of the general public appointed
by the governor;
(9) one representative of the agribusiness industry
appointed by the governor;
(10) one representative of the Texas Structural Pest
Control Board appointed by the executive director of the board;
(11) one representative of the chemical industry
appointed by the Texas Chemical Council; and
(12) one representative of the oil and gas industry
appointed by the Texas Mid-Continent Oil and Gas Association.
SECTION 17. Section 232.002, Family Code, is amended to
read as follows:
Sec. 232.002. LICENSING AUTHORITIES SUBJECT TO
CHAPTER. The following are licensing authorities subject to this
chapter:
(1) Department of Agriculture;
(2) Texas Commission on Alcohol and Drug Abuse;
(3) Texas Alcoholic Beverage Commission;
(4) Texas Appraiser Licensing and Certification
Board;
(5) Texas Board of Architectural Examiners;
(6) State Board of Barber Examiners;
(7) Texas Board of Chiropractic Examiners;
(8) Comptroller of Public Accounts;
(9) Texas Cosmetology Commission;
(10) Court Reporters Certification Board;
(11) State Board of Dental Examiners;
(12) Texas State Board of Examiners of Dietitians;
(13) Texas Funeral Service Commission;
(14) Texas Department of Health;
(15) Texas Department of Human Services;
(16) Texas Board of Professional Land Surveying;
(17) Texas Department of Licensing and Regulation;
(18) Texas State Board of Examiners of Marriage and
Family Therapists;
(19) Texas State Board of Medical Examiners;
(20) Midwifery Board;
(21) Texas [Natural Resource Conservation] Commission
on Environmental Quality;
(22) Board of Nurse Examiners;
(23) Texas Board of Occupational Therapy Examiners;
(24) Texas Optometry Board;
(25) Parks and Wildlife Department;
(26) Texas State Board of Examiners of Perfusionists;
(27) Texas State Board of Pharmacy;
(28) Texas Board of Physical Therapy Examiners;
(29) Texas State Board of Plumbing Examiners;
(30) Texas State Board of Podiatric Medical Examiners;
(31) Polygraph Examiners Board;
(32) Texas Commission on Private Security;
(33) Texas State Board of Examiners of Professional
Counselors;
(34) Texas Board of Professional Engineers;
(35) Department of Protective and Regulatory
Services;
(36) Texas State Board of Examiners of Psychologists;
(37) Texas State Board of Public Accountancy;
(38) Department of Public Safety of the State of
Texas;
(39) [Public Utility Commission of Texas;
[(40)] Railroad Commission of Texas;
(40) [(41)] Texas Real Estate Commission;
(41) [(42)] State Bar of Texas;
(42) [(43)] Texas State Board of Social Worker
Examiners;
(43) [(44)] State Board of Examiners for
Speech-Language Pathology and Audiology;
(44) [(45)] Texas Structural Pest Control Board;
(45) [(46)] Board of Tax Professional Examiners;
(46) [(47)] Secretary of State;
(47) [(48)] Supreme Court of Texas;
(48) [(49)] Texas Transportation Commission;
(49) [(50)] State Board of Veterinary Medical
Examiners;
(50) [(51)] Board of Vocational Nurse Examiners;
(51) [(52)] Texas Ethics Commission;
(52) [(53)] Advisory Board of Athletic Trainers;
(53) [(54)] State Committee of Examiners in the
Fitting and Dispensing of Hearing Instruments;
(54) [(55)] Texas Board of Licensure for Professional
Medical Physicists;
(55) [(56)] Texas Department of Insurance;
(56) [(57)] Texas Board of Orthotics and Prosthetics;
(57) [(58)] savings and loan commissioner;
(58) [(59)] Texas Juvenile Probation Commission; and
(59) [(60)] Texas Lottery Commission under Chapter
466, Government Code.
SECTION 18. Section 487.054(a), Government Code, is amended
to read as follows:
(a) At least once each year, the following agency heads
shall meet to discuss rural issues:
(1) the commissioner of agriculture;
(2) the chairman [executive director] of the Railroad
[Public Utility] Commission of Texas;
(3) the director of the Texas Agricultural Extension
Service;
(4) the presiding officer of the Telecommunications
Infrastructure Fund Board;
(5) the executive director of the Texas Department of
Housing and Community Affairs;
(6) the commissioner of public health;
(7) the executive administrator of the Texas Water
Development Board;
(8) the executive director of the Parks and Wildlife
Department;
(9) the commissioner of human services;
(10) the commissioner of higher education;
(11) the comptroller; and
(12) the executive director of the Texas Department of
Transportation.
SECTION 19. Section 551.086(b)(3), Government Code, is
amended to read as follows:
(3) "Competitive matter" means a utility-related
matter that the public power utility governing body in good faith
determines by a vote under this section is related to the public
power utility's competitive activity, including commercial
information, and would, if disclosed, give advantage to competitors
or prospective competitors but may not be deemed to include the
following categories of information:
(A) information relating to the provision of
distribution access service, including the terms and conditions of
the service and the rates charged for the service but not including
information concerning utility-related services or products that
are competitive;
(B) information relating to the provision of
transmission service that is required to be filed with the Railroad
[Public Utility] Commission of Texas, subject to any
confidentiality provided for under the rules of the commission;
(C) information for the distribution system
pertaining to reliability and continuity of service, to the extent
not security-sensitive, that relates to emergency management,
identification of critical loads such as hospitals and police,
records of interruption, and distribution feeder standards;
(D) any substantive rule of general
applicability regarding service offerings, service regulation,
customer protections, or customer service adopted by the public
power utility as authorized by law;
(E) aggregate information reflecting receipts or
expenditures of funds of the public power utility, of the type that
would be included in audited financial statements;
(F) information relating to equal employment
opportunities for minority groups, as filed with local, state, or
federal agencies;
(G) information relating to the public power
utility's performance in contracting with minority business
entities;
(H) information relating to nuclear
decommissioning trust agreements, of the type required to be
included in audited financial statements;
(I) information relating to the amount and timing
of any transfer to an owning city's general fund;
(J) information relating to environmental
compliance as required to be filed with any local, state, or
national environmental authority, subject to any confidentiality
provided under the rules of those authorities;
(K) names of public officers of the public power
utility and the voting records of those officers for all matters
other than those within the scope of a competitive resolution
provided for by this section;
(L) a description of the public power utility's
central and field organization, including the established places at
which the public may obtain information, submit information and
requests, or obtain decisions and the identification of employees
from whom the public may obtain information, submit information or
requests, or obtain decisions; or
(M) information identifying the general course
and method by which the public power utility's functions are
channeled and determined, including the nature and requirements of
all formal and informal policies and procedures.
SECTION 20. Section 552.133(a)(3), Government Code, is
amended to read as follows:
(3) "Competitive matter" means a utility-related
matter that the public power utility governing body in good faith
determines by a vote under this section is related to the public
power utility's competitive activity, including commercial
information, and would, if disclosed, give advantage to competitors
or prospective competitors but may not be deemed to include the
following categories of information:
(A) information relating to the provision of
distribution access service, including the terms and conditions of
the service and the rates charged for the service but not including
information concerning utility-related services or products that
are competitive;
(B) information relating to the provision of
transmission service that is required to be filed with the Railroad
[Public Utility] Commission of Texas, subject to any
confidentiality provided for under the rules of the commission;
(C) information for the distribution system
pertaining to reliability and continuity of service, to the extent
not security-sensitive, that relates to emergency management,
identification of critical loads such as hospitals and police,
records of interruption, and distribution feeder standards;
(D) any substantive rule of general
applicability regarding service offerings, service regulation,
customer protections, or customer service adopted by the public
power utility as authorized by law;
(E) aggregate information reflecting receipts or
expenditures of funds of the public power utility, of the type that
would be included in audited financial statements;
(F) information relating to equal employment
opportunities for minority groups, as filed with local, state, or
federal agencies;
(G) information relating to the public power
utility's performance in contracting with minority business
entities;
(H) information relating to nuclear
decommissioning trust agreements, of the type required to be
included in audited financial statements;
(I) information relating to the amount and timing
of any transfer to an owning city's general fund;
(J) information relating to environmental
compliance as required to be filed with any local, state, or
national environmental authority, subject to any confidentiality
provided under the rules of those authorities;
(K) names of public officers of the public power
utility and the voting records of those officers for all matters
other than those within the scope of a competitive resolution
provided for by this section;
(L) a description of the public power utility's
central and field organization, including the established places at
which the public may obtain information, submit information and
requests, or obtain decisions and the identification of employees
from whom the public may obtain information, submit information or
requests, or obtain decisions; or
(M) information identifying the general course
and method by which the public power utility's functions are
channeled and determined, including the nature and requirements of
all formal and informal policies and procedures.
SECTION 21. Section 572.003(c), Government Code, is
amended to read as follows:
(c) The term means a member of:
(1) the [Public Utility Commission of Texas;
[(2) the] Texas Department of Economic Development
[Commerce];
(2) [(3)] the Texas [Natural Resource Conservation]
Commission on Environmental Quality;
(3) [(4)] the Texas Alcoholic Beverage Commission;
(4) the [(5) The] Finance Commission of Texas;
(5) [(6)] the Texas Building and Procurement [General
Services] Commission;
(6) [(7)] the Texas Board of Criminal Justice;
(7) [(8)] the board of trustees of the Employees
Retirement System of Texas;
(8) [(9)] the Texas Transportation Commission;
(9) [(10)] the Texas Workers' Compensation
Commission;
(10) [(11)] the Texas Department [State Board] of
Insurance;
(11) [(12)] the Parks and Wildlife Commission;
(12) [(13)] the Public Safety Commission;
(13) [(14)] the Texas Ethics Commission;
(14) [(15)] the State Securities Board;
(15) [(16)] the Texas Water Development Board;
(16) [(17)] the governing board of a public senior
college or university as defined by Section 61.003, Education Code,
or of The University of Texas Southwestern Medical Center at
Dallas, The University of Texas Medical Branch at Galveston, The
University of Texas Health Science Center at Houston, The
University of Texas Health Science Center at San Antonio, The
University of Texas System Cancer Center, The University of Texas
Health Science Center at Tyler, University of North Texas Health
Science Center at Fort Worth, Texas Tech University Health Sciences
Center, Texas State Technical College--Harlingen, Texas State
Technical College--Marshall, Texas State Technical
College--Sweetwater, or Texas State Technical College--Waco;
(17) [(18)] the Texas Higher Education Coordinating
Board;
(18) [(19)] the Texas Workforce [Employment]
Commission;
(19) [(20) the State Banking Board;
[(21)] the board of trustees of the Teacher Retirement
System of Texas;
(20) [(22)] the Credit Union Commission;
(21) [(23)] the School Land Board;
(22) [(24)] the board of the Texas Department of
Housing and Community Affairs;
(23) [(25)] the Texas Racing Commission;
(24) [(26)] the State Board of Dental Examiners;
(25) [(27)] the Texas Board of [Licensure for] Nursing
Facility [Home] Administrators;
(26) [(28)] the Texas State Board of Medical
Examiners;
(27) [(29)] the Board of Pardons and Paroles;
(28) [(30)] the Texas State Board of Pharmacy;
(29) [(31)] the Department of Information Resources
governing board;
(30) [(32)] the Motor Vehicle Board;
(31) [(33)] the Texas Real Estate Commission;
(32) [(34)] the board of directors of the State Bar of
Texas;
(33) [(35)] the bond review board;
(34) [(36)] the Texas Board of Health;
(35) [(37)] the Texas Board of Mental Health and
Mental Retardation;
(36) [(38)] the Texas Board on Aging;
(37) [(39)] the Texas Board of Human Services;
(38) [(40)] the Texas Funeral Service Commission;
(39) [(41)] the board of directors of a river
authority created under the Texas Constitution or a statute of this
state; or
(40) [(42)] the Texas Lottery Commission.
SECTION 22. Section 660.203(a), Government Code, is
amended to read as follows:
(a) An individual is entitled to reimbursement for the
actual expense of meals and lodging incurred while performing the
duties of the individual's office or employment if the individual
is:
(1) a judicial officer;
(2) a chief administrative officer of a state agency,
subject to Subsection (c);
(3) the executive director of the Texas Legislative
Council;
(4) the secretary of the senate;
(5) a member of the Texas [Natural Resource
Conservation] Commission on Environmental Quality, the Texas
Workforce Commission, [the Public Utility Commission of Texas,] the
Board of Pardons and Paroles, or the Sabine River Compact
Administration; or
(6) a full-time member of a board and receives a salary
from the state for service on that board.
SECTION 23. Sections 1232.1071(d) and (e), Government
Code, are amended to read as follows:
(d) The Railroad [Public Utility] Commission of Texas shall
provide necessary assistance to the authority to ensure the
collection and enforcement of the nonbypassable charges, whether
directly or by using the assistance and powers of the requesting
member city.
(e) The authority and the Railroad [Public Utility]
Commission of Texas have all powers necessary to perform the duties
and responsibilities described by this section. This section shall
be interpreted broadly in a manner consistent with the most
cost-effective financing of stranded costs. To the extent
possible, obligations or evidences of indebtedness issued by the
authority under this section must be structured so that any
interest on the obligations or evidences of indebtedness is
excluded from gross income for federal income tax purposes. Any
interest on the obligations or evidences of indebtedness is not
subject to taxation by and may not be included as part of the
measurement of a tax by this state or a political subdivision of
this state.
SECTION 24. Section 2003.0421(c), Government Code, is
amended to read as follows:
(c) This section applies to any contested case hearing
conducted by the office, except hearings conducted on behalf of the
Texas [Natural Resource Conservation] Commission on Environmental
Qaulity or the Railroad [Public Utility] Commission of Texas which
are governed by Sections 2003.047 and 2003.049.
SECTION 25. Section 2003.049(a), Government Code, is
amended to read as follows:
(a) The office shall establish a utility division to perform
the contested case hearings for the Railroad [Public Utility]
Commission of Texas as prescribed by Title 2, Utilities Code,
Section 102.006, Utilities Code, [the Public Utility Regulatory Act
of 1995] and other applicable law.
SECTION 26. Section 2007.003(b), Government Code, is
amended to read as follows:
(b) This chapter does not apply to the following
governmental actions:
(1) an action by a municipality except as provided by
Subsection (a)(3);
(2) a lawful forfeiture or seizure of contraband as
defined by Article 59.01, Code of Criminal Procedure;
(3) a lawful seizure of property as evidence of a crime
or violation of law;
(4) an action, including an action of a political
subdivision, that is reasonably taken to fulfill an obligation
mandated by federal law or an action of a political subdivision that
is reasonably taken to fulfill an obligation mandated by state law;
(5) the discontinuance or modification of a program or
regulation that provides a unilateral expectation that does not
rise to the level of a recognized interest in private real property;
(6) an action taken to prohibit or restrict a
condition or use of private real property if the governmental
entity proves that the condition or use constitutes a public or
private nuisance as defined by background principles of nuisance
and property law of this state;
(7) an action taken out of a reasonable good faith
belief that the action is necessary to prevent a grave and immediate
threat to life or property;
(8) a formal exercise of the power of eminent domain;
(9) an action taken under a state mandate to prevent
waste of oil and gas, protect correlative rights of owners of
interests in oil or gas, or prevent pollution related to oil and gas
activities;
(10) a rule or proclamation adopted for the purpose of
regulating water safety, hunting, fishing, or control of
nonindigenous or exotic aquatic resources;
(11) an action taken by a political subdivision:
(A) to regulate construction in an area
designated under law as a floodplain;
(B) to regulate on-site sewage facilities;
(C) under the political subdivisions's statutory
authority to prevent waste or protect rights of owners of interest
in groundwater; or
(D) to prevent subsidence;
(12) the appraisal of property for purposes of ad
valorem taxation;
(13) an action that:
(A) is taken in response to a real and
substantial threat to public health and safety;
(B) is designed to significantly advance the
health and safety purpose; and
(C) does not impose a greater burden than is
necessary to achieve the health and safety purpose; or
(14) an action or rulemaking undertaken by the
Railroad [Public Utility] Commission of Texas to order or require
the location or placement of telecommunications equipment owned by
another party on the premises of a certificated local exchange
company.
SECTION 27. Section 2302.001(2), Government Code, is
amended to read as follows:
(2) "Commission" means the Railroad [Public Utility]
Commission of Texas.
SECTION 28. Sections 361.040(b) and (d), Health and Safety
Code, are amended to read as follows:
(b) The commission and the Railroad [Public Utility]
Commission of Texas shall jointly promote the economic development
and use of landfill gas by, at a minimum:
(1) publicizing agency information on identified
landfills with the potential for economic landfill gas development,
including an estimate of that potential;
(2) assisting gas developers, landfill owners and
operators, electric utilities, and gas utilities in exploring
partnership opportunities with regard to landfill gas; and
(3) establishing a clearinghouse of information on
landfill gas development and use.
(d) The commission and the Railroad [Public Utility]
Commission of Texas shall jointly report to the legislature by
November 1 of 2002, 2004, and 2006 on the status of the development
of landfill gas in this state. Each report shall:
(1) summarize the activities of the agencies in
fulfilling the requirements of this section;
(2) identify landfills with gas recovery projects;
(3) state the amount of gas produced from landfill gas
recovery projects;
(4) state the amount of electricity generated from
landfill gas recovery projects;
(5) identify the environmental benefits of the
recovery and use of landfill gas; and
(6) identify any legal, administrative, economic, or
other obstacles to the further development and use of landfill gas.
SECTION 29. Section 386.001(11), Health and Safety Code,
is amended to read as follows:
(11) "Utility commission" means the Railroad [Public
Utility] Commission of Texas.
SECTION 30. Sections 771.001(5) and (11), Health and
Safety Code, are amended to read as follows:
(5) "Local exchange service provider" means a
telecommunications carrier providing telecommunications service in
a local exchange service area under a certificate of public
convenience and necessity issued by the Railroad [Public Utility]
Commission of Texas.
(11) "Business service" means a telecommunications
service classified as a business service under rules adopted by the
Railroad [Public Utility] Commission of Texas or under the
applicable tariffs of the principal service supplier.
SECTION 31. Section 771.031(b), Health and Safety Code, is
amended to read as follows:
(b) The following individuals serve as nonvoting ex officio
members:
(1) the chairman [executive director] of the Railroad
[Public Utility] Commission of Texas, or an individual designated
by the chairman [executive director];
(2) the executive director of the Department of
Information Resources [General Services Commission], or an
individual designated by the executive director; and
(3) the commissioner of public health, or an
individual who has responsibility for the poison control network
designated by the commissioner.
SECTION 32. Section 771.0725, Health and Safety Code, is
amended to read as follows:
Sec. 771.0725. ESTABLISHMENT OF RATES FOR
FEES. (a) Subject to the applicable limitations prescribed by
Sections 771.071(b) and 771.072(b), (d), and (e), the Railroad
[Public Utility] Commission of Texas shall monitor the
establishment of:
(1) emergency service fees imposed under Section
771.071; and
(2) the equalization surcharge imposed under Section
771.072, including the allocation of revenue under Sections
771.072(d) and (e).
(b) Each year the commission shall provide documentation to
the Railroad [Public Utility] Commission of Texas regarding the
rate at which each fee should be imposed and the allocation of
revenue under Sections 771.072(d) and (e). The commission may
provide such documentation more often under this subsection if the
commission determines that action is necessary.
(c) The Railroad [Public Utility] Commission of Texas shall
review the documentation provided by the commission as well as
allocations derived therefrom and also identified by the
commission. If the Railroad [Public Utility] Commission of Texas
determines that a recommended rate or allocation is not
appropriate, the Railroad [Public Utility] Commission of Texas
shall provide comments to the commission, the governor, and the
Legislative Budget Board regarding appropriate rates and the basis
for that determination.
(d) The Railroad [Public Utility] Commission of Texas may
review and make comments regarding a rate or allocation under this
section in an informal proceeding. A proceeding in which a rate or
allocation is reviewed is not a contested case for purposes of
Chapter 2001, Government Code. A review of a rate or allocation is
not a rate change for purposes of Chapter 36 or 53, Utilities Code.
SECTION 33. Section 771.076(c), Health and Safety Code, is
amended to read as follows:
(c) At the request of the Railroad [Public Utility]
Commission of Texas, the state auditor may audit a regional
planning commission or other public agency designated by the
regional planning commission that receives money under this
subchapter.
SECTION 34. Section 772.001(21), Health and Safety Code,
is amended to read as follows:
(21) "Business service" means a telecommunications
service classified as a business service under rules adopted by the
Railroad [Public Utility] Commission of Texas or under the
applicable tariffs of the principal service supplier.
SECTION 35. Section 246.001(1), Local Government Code, is
amended to read as follows:
(1) "Commission" means the Railroad [Public Utility]
Commission of Texas.
SECTION 36. Section 283.002(3), Local Government Code, is
amended to read as follows:
(3) "Commission" means the Railroad [Public Utility]
Commission of Texas.
SECTION 37. Section 304.001(f), Local Government Code, is
amended to read as follows:
(f) A political subdivision corporation may appear on
behalf of its incorporating political subdivisions before the
[Public Utility Commission of Texas, the] Railroad Commission of
Texas, the Texas [Natural Resource Conservation] Commission on
Environmental Qaulity, any other governmental agency or regulatory
authority, the Texas Legislature, and the courts.
SECTION 38. Section 33.2053(c), Natural Resources Code, is
amended to read as follows:
(c) The Railroad Commission of Texas shall comply with
Sections 33.205(a) and (b) when issuing:
(1) a wastewater discharge permit;
(2) a waste disposal or storage pit permit; [or]
(3) a certification of a federal permit for the
discharge of dredge or fill material; or
(4) a certificate of convenience and necessity.
SECTION 39. Section 28.03(d), Penal Code, is amended to
read as follows:
(d) The terms "public communication, public transportation,
public gas or power supply, or other public service" and "public
water supply" shall mean, refer to, and include any such services
subject to regulation by [the Public Utility Commission of Texas,]
the Railroad Commission of Texas[,] or the Texas [Natural Resource
Conservation] Commission on Environmental Quality or any such
services enfranchised by the State of Texas or any political
subdivision thereof.
SECTION 40. Section 92.008(c), Property Code, is amended
to read as follows:
(c) A landlord may interrupt or cause the interruption of
electrical service furnished to a tenant by the landlord as an
incident of the tenancy or by other agreement if:
(1) the electrical service furnished to the tenant is
individually metered or submetered for the dwelling unit;
(2) the electrical service connection with the utility
company is in the name of the landlord or the landlord's agent; and
(3) the landlord complies with the rules adopted by
the Railroad [Public Utility] Commission of Texas for
discontinuance of submetered electrical service.
SECTION 41. Section 22.23(b), Tax Code, is amended to read
as follows:
(b) For good cause shown in writing by the property owner,
the chief appraiser may extend a deadline for filing a rendition
statement or property report by written order to a date not later
than April 30. However, if the property that is the subject of the
rendition is regulated by the [Public Utility Commission of Texas
or the] Railroad Commission of Texas, the chief appraiser, upon
written request by the property owner, shall extend the filing
deadline until April 30, and may further extend the deadline an
additional 15 days upon good cause shown in writing by the property
owner.
SECTION 42. Section 301.004(c), Tax Code, is amended to
read as follows:
(c) In this section, "telephone company" means a person who
owns or operates a telephone line or a telephone network in this
state, charges for its use, and is regulated by the Railroad [Public
Utility] Commission of Texas as a certificated provider of local
exchange telephone service.
SECTION 43. Section 452.065(b), Transportation Code, is
amended to read as follows:
(b) The parties to a contract made under Subsection (a)(3)
may fulfill the terms of the contract notwithstanding any order or
rule of the Railroad [Public Utility] Commission of Texas with
respect to certification, except that any supply of power or energy
by one utility into the service area of another utility must be
provided over transmission or distribution lines owned by the
authority.
SECTION 44. Section 12.013(h), Water Code, is amended to
read as follows:
(h) Nothing herein contained shall affect the jurisdiction
of the Railroad [Public Utility] Commission of Texas.
SECTION 45. Section 152.255, Water Code, is amended to read
as follows:
Sec. 152.255. RECOVERABILITY OF COSTS FROM
RATEPAYERS. This subchapter does not limit the authority of the
Railroad [Public Utility] Commission of Texas to determine the
recoverability of costs from ratepayers.
SECTION 46. Section 152.301, Water Code, is amended to read
as follows:
Sec. 152.301. ELECTRIC TRANSMISSION SERVICES AND
FACILITIES. Notwithstanding any other law, a river authority may:
(1) provide transmission services, as defined by the
Utilities Code or the Railroad [Public Utility] Commission of
Texas, on a regional basis to any eligible transmission customer at
any location within or outside the boundaries of the river
authority; and
(2) acquire, including by lease-purchase, lease from
or to any person, finance, construct, rebuild, operate, or sell
electric transmission facilities at any location within or outside
the boundaries of the river authority.
SECTION 47. The following are repealed:
(1) Sections 12.002 through 12.203, Utilities Code;
(2) Section 15.029, Utilities Code;
(3) Section 2003.0491, Government Code; and
(4) Section 33.2053(b), Natural Resources Code.
SECTION 48. (a) It is the intent of the legislature that
the powers, duties, obligations, rights, contracts, records,
employees, property, funds, and appropriations of the Public
Utility Commission of Texas be transferred to the Railroad
Commission of Texas on September 1, 2004.
(b) The Railroad Commission of Texas shall administer the
transfer described by Subsection (a) of this section.
(c) The Railroad Commission of Texas or its designee shall
ensure that the transfer described by Subsection (a) of this
section does not adversely affect a proceeding pending before the
Public Utility Commission of Texas or the rights of the parties to
the proceeding.
(d) After the transfer has been completed, the Railroad
Commission of Texas or its designee shall prepare a written report
detailing the specifics of the transfer described by Subsection (a)
of this section and shall submit the report to the governor and the
legislature.
(e) This section takes effect immediately.
SECTION 49. On September 1, 2004:
(1) all powers, duties, functions, programs, and
activities of the Public Utility Commission of Texas are
transferred to the Railroad Commission of Texas;
(2) all obligations, rights, contracts, records, and
property in the custody of the Public Utility Commission of Texas
and all funds appropriated by the legislature to the Public Utility
Commission of Texas are transferred to the Railroad Commission of
Texas;
(3) all employees of the Public Utility Commission of
Texas become employees of the Railroad Commission of Texas, to be
assigned duties by the Railroad Commission of Texas;
(4) the Public Utility Commission of Texas is
abolished; and
(5) a reference in law to the Public Utility
Commission of Texas means the Railroad Commission of Texas.
SECTION 50. (a) On September 1, 2004, a rule, policy,
procedure, decision, or form adopted by the Public Utility
Commission of Texas that relates to the regulation of the electric
or telecommunications industries is a rule, policy, procedure,
decision, or form of the Railroad Commission of Texas and remains in
effect until altered by the Railroad Commission of Texas. The
secretary of state may adopt rules as necessary to expedite the
implementation of this subsection.
(b) On September 1, 2004, a rule, policy, procedure,
decision, or form of the Public Utility Commission of Texas that
relates to the management and daily operation of the Public Utility
Commission of Texas is superseded by the rules, policies,
procedures, decisions, and forms of the Railroad Commission of
Texas relating to the management and daily operation of the
Railroad Commission of Texas.
SECTION 51. (a) The abolition of the Public Utility
Commission of Texas and the transfer of its powers, duties,
functions, programs, activities, obligations, rights, contracts,
records, property, funds, and employees to the Railroad Commission
of Texas does not affect or impair an act done, any obligation,
right, order, permit, certificate, rule, criterion, standard, or
requirement existing, any investigation begun, or any penalty
accrued under former law, and that law remains in effect for any
action concerning those matters.
(b) An action brought or proceeding commenced before the
effective date of a transfer prescribed by this Act, including a
contested case or a remand of an action or proceeding by a reviewing
court, is governed by the laws and rules applicable to the action or
proceeding before the transfer.
SECTION 52. Except as otherwise provided by this Act, this
Act takes effect September 1, 2004.