By:  Ellis                                                        S.B. No. 1048

A BILL TO BE ENTITLED
AN ACT
relating to the abolition of the Public Utility Commission of Texas and the Railroad Commission of Texas, the creation of the Texas Energy and Communications Commission, and the transfer of the powers and duties of the public utility commission and the railroad commission to the energy and communications commission and other state agencies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TEXAS ENERGY AND COMMUNICATIONS COMMISSION
SECTION 1.01. CREATION OF TEXAS ENERGY AND COMMUNICATIONS COMMISSION. The Utilities Code is amended by adding Title 6 to read as follows:
TITLE 6. REGULATION OF CERTAIN ACTIVITIES FORMERLY REGULATED BY
PUBLIC UTILITY COMMISSION OF TEXAS AND RAILROAD
COMMISSION OF TEXAS
CHAPTER 301. TEXAS ENERGY AND COMMUNICATIONS COMMISSION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 301.001. DEFINITIONS. In this chapter: (1) "Commission" means the Texas Energy and Communications Commission. (2) "Commissioner" means a member of the commission's governing body. (3) "Executive director" means the executive director of the commission. Sec. 301.002. AGENCY. The commission is an agency of the state. Sec. 301.003. SUNSET PROVISION. The Texas Energy and Communications Commission is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the commission is abolished and this chapter expires September 1, 2017.
[Sections 301.004-301.050 reserved for expansion]
SUBCHAPTER B. COMMISSION
Sec. 301.051. ELECTION OF MEMBERS; TERMS. (a) The commission is composed of three commissioners. (b) Commissioners are elected for staggered four-year terms, with one or two members being elected at each general election for state and county officers. Members are elected at large using the place system. Sec. 301.052. QUALIFICATIONS. To be elected a commissioner, a person must be: (1) a qualified voter; and (2) at least 25 years of age. Sec. 301.053. CONFLICTS OF INTEREST. (a) In this section, "Texas trade association" means a cooperative and voluntarily joined statewide association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest. (b) A person may not be a commissioner and may not be a commission employee employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), and its subsequent amendments, if: (1) the person is an officer, employee, or paid consultant of a Texas trade association in a field regulated by the commission; or (2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in a field regulated by the commission. (c) A person may not be a commissioner or act as the general counsel to the commission if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the commission. Sec. 301.054. TRAINING PROGRAM FOR COMMISSIONERS. (a) A person who is elected to and qualifies for office as a commissioner may not vote, deliberate, or be counted as a commissioner in attendance at a meeting of the commission until the person completes a training program that complies with this section. (b) The training program must provide the person with information regarding: (1) the legislation that created the commission; (2) the programs operated by the commission; (3) the role and functions of the commission; (4) the rules of the commission, with an emphasis on the rules that relate to disciplinary and investigatory authority; (5) the current budget for the commission; (6) the results of the most recent formal audit of the commission; (7) the requirements of: (A) the open meetings law, Chapter 551, Government Code; (B) the public information law, Chapter 552, Government Code; (C) the administrative procedure law, Chapter 2001, Government Code; and (D) other laws relating to public officials, including conflict-of-interest laws; and (8) any applicable ethics policies adopted by the commission or the Texas Ethics Commission. (c) A person elected to the commission is entitled to reimbursement, as provided by the General Appropriations Act, for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office. Sec. 301.055. REIMBURSEMENT FOR EXPENSES. A commissioner is entitled to reimbursement for actual and necessary expenses incurred in discharging the member's duties as a commissioner, subject to any applicable limitation on reimbursement provided by the General Appropriations Act. Sec. 301.056. PRESIDING OFFICER; MEETINGS. (a) The governor shall designate a commissioner as the presiding officer of the commission to serve in that capacity at the pleasure of the governor. (b) The commission shall meet quarterly and at other times at the call of the presiding officer when necessary to transact commission business. The commission shall hold meetings in different areas of the state. Sec. 301.057. ADVISORY COMMITTEES. The commission may appoint advisory committees to assist it in administering this chapter.
[Sections 301.058-301.100 reserved for expansion]
SUBCHAPTER C. EXECUTIVE DIRECTOR AND OTHER COMMISSION PERSONNEL
Sec. 301.101. EXECUTIVE DIRECTOR. (a) The commission shall appoint an executive director, who is to be selected according to education, training, experience, and demonstrated ability. (b) The executive director serves at the pleasure of the commission. (c) The executive director shall act as the commission's secretary and the commission's chief administrative officer. Sec. 301.102. PERSONNEL. (a) The commission may employ, compensate, and prescribe the duties of personnel, other than members of advisory committees, necessary and suitable to administer this chapter. (b) The executive director shall prepare and the commission by rule shall adopt personnel standards. (c) A personnel position may be filled only by an individual selected and appointed on a nonpartisan merit basis. (d) The commission shall develop and implement policies that clearly define the respective responsibilities of the commission and the staff of the commission. Sec. 301.103. POLICY-MAKING AND MANAGEMENT RESPONSIBILITIES. The commission shall develop and implement policies that clearly separate the policy-making responsibilities of the executive director and the staff of the commission. Sec. 301.104. INFORMATION ABOUT QUALIFICATIONS AND STANDARDS OF CONDUCT. The executive director or the executive director's designee shall provide to commissioners and to commission employees, as often as necessary, information regarding the requirements for office or employment under this chapter, including information regarding a person's responsibilities under applicable laws relating to standards of conduct for state officers or employees. Sec. 301.105. MERIT PAY. The executive director or the executive director's designee shall develop a system of annual performance evaluations. All merit pay for commission employees must be given under the system established under this section. Sec. 301.106. CAREER LADDER. The executive director or the executive director's designee shall develop an intra-agency career ladder program. The program must require intra-agency postings of all nonentry-level positions concurrently with any public posting. Sec. 301.107. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The executive director or the executive director's designee shall prepare and maintain a written policy statement that implements a program of equal employment opportunity to ensure that all personnel decisions are made without regard to race, color, disability, sex, religion, age, or national origin. (b) The policy statement must include: (1) personnel policies, including policies relating to recruitment, evaluation, selection, training, and promotion of personnel, that show the intent of the commission to avoid the unlawful employment practices described by Chapter 21, Labor Code; and (2) an analysis of the extent to which the composition of the commission's personnel is in accordance with state and federal law and a description of reasonable methods to achieve compliance with state and federal law. (c) The policy statement must: (1) be updated annually; (2) be reviewed by the state Commission on Human Rights for compliance with Subsection (b)(1); and (3) be filed with the governor's office. Sec. 301.108. STATE EMPLOYEE INCENTIVE PROGRAM. The executive director or the executive director's designee shall provide to commission employees information and training on the benefits and methods of participation in the state employee incentive program.
[Sections 301.109-301.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
Sec. 301.151. GENERAL POWERS AND DUTIES OF COMMISSION. As provided by other law, the commission is responsible for the regulation of: (1) electric, telecommunications, and gas utilities; (2) oil and gas exploration and production; (3) gas transportation and use; (4) hazardous liquid and carbon dioxide pipelines; (5) common carriers, public utilities, and common purchasers; (6) used oil field equipment dealers; (7) oil tanker vehicles; (8) certain transporters of oil or petroleum products; and (9) pipeline assessment and testing. Sec. 301.152. RULES. The commission may adopt rules reasonably necessary to administer this chapter. Sec. 301.153. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION PROCEDURES. (a) The commission shall develop and implement a policy to encourage the use of: (1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of commission rules; and (2) appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the commission's jurisdiction. (b) The commission's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies. (c) The commission shall designate a trained person to: (1) coordinate the implementation of the policy adopted under Subsection (a); (2) serve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and (3) collect data concerning the effectiveness of those procedures, as implemented by the commission. Sec. 301.154. USE OF TECHNOLOGY. The commission shall develop and implement a policy requiring the commission and commission employees to research and propose appropriate technological solutions to improve the commission's ability to perform its functions. The technological solutions must: (1) ensure that persons who want to use the commission's services are able to: (A) interact with the commission through the Internet; and (B) access any service that can be provided effectively through the Internet; and (2) be cost-effective and developed through the commission's planning processes. Sec. 301.155. ANNUAL REPORT. (a) The commission shall file annually with the governor and the presiding officer of each house of the legislature a complete and detailed written report accounting for all funds received and disbursed by the commission during the preceding fiscal year. (b) The annual report must be in the form and be reported in the time provided by the General Appropriations Act. Sec. 301.156. OFFICES. The commission shall maintain its central office in Austin. The commission may maintain offices in other areas of the state as necessary.
[Sections 301.157-301.200 reserved for expansion]
SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND COMPLAINT
PROCEDURES
Sec. 301.201. PUBLIC INTEREST INFORMATION AND COMPLAINTS. (a) The commission shall prepare information of public interest describing the functions of the commission and the commission's procedures by which complaints are filed with and resolved by the commission. The commission shall make the information available to the public and appropriate state governmental entities. (b) The commission by rule shall establish methods by which consumers and service recipients are notified of the name, mailing address, and telephone number of the commission for directing complaints to the commission. Sec. 301.202. PUBLIC ACCESS AND TESTIMONY. The commission shall develop and implement policies that provide the public with a reasonable opportunity to appear before the commission and to speak on any issue under the jurisdiction of the commission. Sec. 301.203. INFORMATION REGARDING COMPLAINTS. (a) The commission shall maintain a file on each written complaint filed with the commission. The file must include: (1) the name of the person who filed the complaint; (2) the date the complaint is received by the commission; (3) the subject matter of the complaint; (4) the name of each person contacted in relation to the complaint; (5) a summary of the results of the review or investigation of the complaint; and (6) an explanation of the reason the file was closed, if the commission closed the file without taking action other than to investigate the complaint. (b) The commission shall provide to the person filing the complaint and to each person who is a subject of the complaint a copy of the commission's policies and procedures relating to complaint investigation and resolution. (c) The commission, at least quarterly until final disposition of the complaint, shall notify the person filing the complaint and each person who is a subject of the complaint of the status of the investigation unless the notice would jeopardize an undercover investigation. SECTION 1.02. INITIAL ELECTION OF TEXAS ENERGY AND COMMUNICATIONS COMMISSION COMMISSIONERS. (a) On September 1, 2003, the Texas Energy and Communications Commission is created. (b) The offices of the commissioners of the Texas Energy and Communications Commission exist for purposes of the primary and general elections in 2004. (c) The initial commissioners of the Texas Energy and Communications Commission shall be elected at the general election for state and county officers in 2004. The initial commissioners elected shall draw lots so that one member serves a two-year term and two members serve four-year terms. (d) The initial commissioners of the Texas Energy and Communications Commission shall take office January 1, 2005.
ARTICLE 2. INTERAGENCY TRANSFERS OF PROPERTY, RECORDS,
OBLIGATIONS, FUNDS, FUNCTIONS, PROGRAMS, AND ACTIVITIES
SECTION 2.01. TRANSFERS TO TEXAS ENERGY AND COMMUNICATIONS COMMISSION. (a) On January 1, 2005, the following powers, duties, functions, programs, and activities are transferred to the Texas Energy and Communications Commission created under Chapter 301, Utilities Code, as added by this Act: (1) all powers, duties, functions, programs, and activities of the Public Utility Commission of Texas; (2) the following powers, duties, functions, programs, and activities of the Railroad Commission of Texas: (A) except as provided by Section 2.02 of this Act, the regulation of oil and gas exploration and production under Subtitles B and C, Title 3, Natural Resources Code; (B) the regulation of gas utilities under Subtitle A, Title 3, Utilities Code; (C) the regulation of gas transportation and use under Subtitle B, Title 3, Utilities Code; (D) the regulation of hazardous liquid and carbon dioxide pipelines under Chapter 117, Natural Resources Code; (E) the regulation of common carriers, public utilities, and common purchasers under Chapter 111, Natural Resources Code; (F) the regulation of used oil field equipment dealers under Chapter 112, Natural Resources Code; (G) the regulation of oil tanker vehicles under Chapter 114, Natural Resources Code; (H) the regulation of certain transporters of oil or petroleum products under Chapter 115, Natural Resources Code; (I) the regulation of pipeline assessment and testing under Chapter 118, Natural Resources Code; and (J) any other power, duty, function, program, or activity of the commission other than a power, duty, function, program, or activity of the commission transferred to another state agency under another provision of this article. (b) On the date specified by Subsection (a) of this section: (1) all obligations and contracts of the Public Utility Commission of Texas or the Railroad Commission of Texas that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section are transferred to the Texas Energy and Communications Commission; (2) all property and records in the custody of the Public Utility Commission of Texas or the Railroad Commission of Texas that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section and all funds appropriated by the legislature for the power, duty, function, program, or activity shall be transferred to the Texas Energy and Communications Commission; and (3) all complaints, investigations, or contested cases that are pending before the Public Utility Commission of Texas or the Railroad Commission of Texas, or the governing body of the Public Utility Commission of Texas or the Railroad Commission of Texas, and that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section are transferred without change in status to the Texas Energy and Communications Commission. (c) A rule or form adopted by the Public Utility Commission of Texas or the Railroad Commission of Texas that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section is a rule or form of the Texas Energy and Communications Commission and remains in effect until altered by that commission. (d) A reference in law to the Public Utility Commission of Texas or the Railroad Commission of Texas, or to the governing body of the Public Utility Commission of Texas or the Railroad Commission of Texas, that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section means the Texas Energy and Communications Commission. (e) A license, permit, or certification in effect that was issued by the Public Utility Commission of Texas or the Railroad Commission of Texas and that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section is continued in effect as a license, permit, or certification of the Texas Energy and Communications Commission. SECTION 2.02. TRANSFERS TO TEXAS COMMISSION ON ENVIRONMENTAL QUALITY. (a) On January 1, 2005, the following powers, duties, functions, programs, and activities of the Railroad Commission of Texas are transferred to the Texas Commission on Environmental Quality: (1) the regulation of uranium surface mining and reclamation under Chapter 131, Natural Resources Code; (2) the regulation of surface coal mining and reclamation under Chapter 134, Natural Resources Code; (3) the prevention of pollution of surface and subsurface waters in the state by activities associated with the exploration, development, or production of oil, gas, or geothermal resources, including the transportation of oil or gas by pipeline, under Chapter 40, Natural Resources Code, Section 91.101, Natural Resources Code, and Section 26.131, Water Code; and (4) the plugging of abandoned oil and gas wells under Chapter 89, Natural Resources Code. (b) On the date specified by Subsection (a) of this section: (1) all obligations and contracts of the Railroad Commission of Texas that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section are transferred to the Texas Commission on Environmental Quality; (2) all property and records in the custody of the Railroad Commission of Texas that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section and all funds appropriated by the legislature for the power, duty, function, program, or activity shall be transferred to the Texas Commission on Environmental Quality; and (3) all complaints, investigations, or contested cases that are pending before the Railroad Commission of Texas, or the governing body of the Railroad Commission of Texas, and that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section are transferred without change in status to the Texas Commission on Environmental Quality. (c) A rule or form adopted by the Railroad Commission of Texas that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section is a rule or form of the Texas Commission on Environmental Quality and remains in effect until altered by that commission. (d) A reference in law to the Railroad Commission of Texas, or to the governing body of the Railroad Commission of Texas, that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section means the Texas Commission on Environmental Quality. (e) A license, permit, or certification in effect that was issued by the Railroad Commission of Texas and that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section is continued in effect as a license, permit, or certification of the Texas Commission on Environmental Quality. SECTION 2.03. TRANSFERS TO GENERAL LAND OFFICE. (a) On January 1, 2005, the following powers, duties, functions, programs, and activities of the Railroad Commission of Texas are transferred to the General Land Office: (1) the regulation of the liquefied petroleum gas industry under Chapter 113, Natural Resources Code; (2) the regulation of the compressed natural gas and liquefied natural gas industries under Chapter 116, Natural Resources Code; (3) alternative fuels research and education under Subchapter I, Chapter 113, Natural Resources Code; (4) acting as on-scene coordinator for the abatement, containment, removal, and cleanup of unauthorized discharges in coastal waters of 240 barrels or less of oil from activities associated with the exploration, development, or production of oil or gas, including the transportation of oil or gas by pipeline, under Section 40.053(b), Natural Resources Code; and (5) the regulation of the exploration, development, and production of geothermal energy and associated resources under Chapter 141, Natural Resources Code. (b) On the date specified by Subsection (a) of this section: (1) all obligations and contracts of the Railroad Commission of Texas that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section are transferred to the General Land Office; (2) all property and records in the custody of the Railroad Commission of Texas that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section and all funds appropriated by the legislature for the power, duty, function, program, or activity shall be transferred to the General Land Office; and (3) all complaints, investigations, or contested cases that are pending before the Railroad Commission of Texas, or the governing body of the Railroad Commission of Texas, and that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section are transferred without change in status to the General Land Office. (c) A rule or form adopted by the Railroad Commission of Texas that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section is a rule or form of the General Land Office and remains in effect until altered by the office. (d) A reference in law to the Railroad Commission of Texas, or to the governing body of the Railroad Commission of Texas, that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section means the General Land Office. (e) A license, permit, or certification in effect that was issued by the Railroad Commission of Texas and that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section is continued in effect as a license, permit, or certification of the General Land Office. SECTION 2.04. TRANSFERS TO TEXAS DEPARTMENT OF TRANSPORTATION. (a) On January 1, 2005, the following powers, duties, functions, programs, and activities of the Railroad Commission of Texas are transferred to the Texas Department of Transportation: (1) the regulation of railroad safety under Title 112, Revised Statutes; and (2) the regulation of aggregate quarry and pit safety under Chapter 133, Natural Resources Code. (b) On the date specified by Subsection (a) of this section: (1) all obligations and contracts of the Railroad Commission of Texas that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section are transferred to the Texas Department of Transportation; (2) all property and records in the custody of the Railroad Commission of Texas that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section and all funds appropriated by the legislature for the power, duty, function, program, or activity shall be transferred to the Texas Department of Transportation; and (3) all complaints, investigations, or contested cases that are pending before the Railroad Commission of Texas, or the governing body of the Railroad Commission of Texas, and that are related to a power, duty, function, program, or activity transferred under Subsection (a) of this section are transferred without change in status to the Texas Department of Transportation. (c) A rule or form adopted by the Railroad Commission of Texas that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section is a rule or form of the Texas Department of Transportation and remains in effect until altered by the department. (d) A reference in law to the Railroad Commission of Texas, or to the governing body of the Railroad Commission of Texas, that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section means the Texas Department of Transportation. (e) A license, permit, or certification in effect that was issued by the Railroad Commission of Texas and that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section is continued in effect as a license, permit, or certification of the Texas Department of Transportation. SECTION 2.05. FACILITATION OF TRANSFERS. To facilitate the transfer of powers, duties, functions, programs, and activities of the Public Utility Commission of Texas and the Railroad Commission of Texas to the Texas Energy and Communications Commission and other agencies as provided by this article with a minimal negative effect on the performance of those powers, duties, functions, programs, and activities, each agency to which a power, duty, function, program, or activity is transferred under this article shall: (1) for each power, duty, function, program, or activity transferred under this article, determine: (A) the relevant agency actions that constitute the power, duty, function, program, or activity; (B) the pertinent records and property used by the Public Utility Commission of Texas or the Railroad Commission of Texas for the power, duty, function, program, or activity; (C) each state agency employee whose primary duties involve the power, duty, function, program, or activity and whether: (i) the employee becomes an employee of the agency, to be assigned duties by the executive director of the agency; (ii) the employee must reapply with the agency for a comparable employment position; or (iii) the employment position will be eliminated; and (D) the funds and obligations that are related to the power, duty, function, program, or activity; and (2) oversee and assist the Public Utility Commission of Texas or the Railroad Commission of Texas in transferring the powers, duties, functions, programs, activities, records, property, funds, obligations, and employees in accordance with this article. SECTION 2.06. APPLICABILITY OF FORMER LAW. An action brought or proceeding commenced before the effective date of a transfer prescribed by this article, 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.
ARTICLE 3. MISCELLANEOUS PROVISIONS
SECTION 3.01. ABOLITION OF STATE AGENCIES. (a) On January 1, 2005, the Public Utility Commission of Texas and the Railroad Commission of Texas are abolished. (b) The abolition of a state agency listed in Subsection (a) of this section and the transfer of its powers, duties, functions, programs, activities, obligations, rights, contracts, records, property, funds, and employees as provided by this Act do not affect or impair an act done, any obligation, right, order, permit, certificate, rule, criterion, standard, or requirement existing, or any penalty accrued under former law, and that law remains in effect for any action concerning those matters. SECTION 3.02. EFFECTIVE DATE. Except as otherwise provided by this Act, this Act takes effect September 1, 2003.