79R5417 MTB-F

By:  Armbrister                                                   S.B. No. 949


A BILL TO BE ENTITLED
AN ACT
relating to the mediation of certain proceedings conducted by the Railroad Commission of Texas. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 102, Utilities Code, is amended by adding Section 102.0055 to read as follows: Sec. 102.0055. MEDIATION OF CONTESTED PROCEEDINGS. (a) In this section, "contested proceeding" means a hearing, claim, complaint, investigation, inquiry, or other procedure for finding facts or making a decision: (1) that involves disputed issues of law, fact, or both law and fact; and (2) over which the railroad commission has original jurisdiction under this title. (b) This section does not apply to a contested proceeding: (1) initiated under Chapter 103; (2) initiated under Subchapter C or G, Chapter 104; or (3) related to the rates, services, or practices of a gas utility that is not docketed by the railroad commission. (c) The railroad commission shall establish a process for mediating contested proceedings. The railroad commission shall require the parties to a contested proceeding to mediate all issues raised in the case before an administrative hearing under Section 102.006 may be conducted. The mediation process must be completed before the 91st day after a proceeding is docketed by the railroad commission unless: (1) the parties to the mediation agree otherwise; or (2) the railroad commission staff appointed by the railroad commission to conduct the proceeding determines that additional time is warranted. (d) The railroad commission staff shall conduct limited discovery as part of the mediation process. The discovery is limited to obtaining copies of the 10 most recent contracts for services or transactions that are similar to the contract that is the basis for the contested proceeding and any other relevant documents or information the staff determines is necessary to the mediation process. If the party producing the contracts or other relevant documents requests that the contracts or documents be reviewed at the party's offices, the staff may make copies of the contracts or documents for the mediation process and the producing party shall pay the staff's travel expenses in an amount not to exceed the per diem allowance for state employees in accordance with the General Appropriations Act. (e) If the parties agree that the mediation be conducted at a location other than the offices of the railroad commission in Austin, Texas, the parties shall share equally the cost of the staff's travel expenses in an amount not to exceed the per diem allowance for state employees in accordance with the General Appropriations Act. (f) If the mediation results in a settlement, the railroad commission shall by order approve the settlement and dismiss the contested proceeding. If the contested proceeding is not settled by agreement of the parties during the period for mediation provided by Subsection (c), the railroad commission staff conducting the proceeding shall, before the 11th day after the completion of the period for mediation, send a confidential memorandum to the parties to the mediation that states one of the following conclusions, based on the information reviewed by the staff: (1) no discriminatory act has been identified; or (2) further formal proceeding is warranted. (g) The railroad commission staff shall: (1) convene a settlement conference of the parties following the issuance of the memorandum to be held before the 31st day after the completion of the period for mediation if a party requests a settlement conference based on the confidential memorandum; or (2) set the contested proceeding for an administrative hearing under Section 102.006: (A) not later than the 61st day after the completion of the period for mediation; or (B) at a time considered appropriate by the railroad commission staff, if the contested proceeding relates to setting a cost of service rate under Subchapter B, Chapter 104. (h) If the railroad commission holds a settlement conference and the conference results in a settlement, the railroad commission shall by order approve the settlement and dismiss the contested proceeding. If a settlement conference does not result in a settlement, the railroad commission staff shall set the matter for an administrative hearing under Section 102.006. (i) Section 2009.054, Government Code, applies to information produced or obtained during the mediation process. SECTION 2. Subchapter G, Chapter 111, Natural Resources Code, is amended by adding Section 111.228 to read as follows: Sec. 111.228. MEDIATION OF CONTESTED PROCEEDINGS. (a) In this section, "contested proceeding" means a hearing, claim, complaint, investigation, inquiry, or other procedure for finding facts or making a decision: (1) that involves disputed issues of law, fact, or both law and fact; and (2) over which the commission has jurisdiction under this chapter or Chapter 117. (b) This section does not apply to a contested proceeding related to the rates, services, or practices of a public utility or pipeline facility that is not docketed by the commission. (c) The commission shall establish a process for mediating contested proceedings. The commission shall require the parties to a contested proceeding to mediate all issues raised in the case before an administrative hearing under this chapter or Chapter 117 may be conducted. The mediation process must be completed before the 91st day after a proceeding is docketed by the commission unless: (1) the parties to the mediation agree otherwise; or (2) the commission staff appointed by the commission to conduct the proceeding determines that additional time is warranted. (d) The commission staff shall conduct limited discovery as part of the mediation process. The discovery is limited to obtaining copies of the 10 most recent contracts for services or transactions that are similar to the contract that is the basis for the contested proceeding and any other relevant documents or information the staff determines is necessary to the mediation process. If the party producing the contracts or other relevant documents requests that the contracts or documents be reviewed at the party's offices, the staff may make copies of the contracts or documents for the mediation process and the producing party shall pay the staff's travel expenses in an amount not to exceed the per diem allowance for state employees in accordance with the General Appropriations Act. (e) If the parties agree that the mediation be conducted at a location other than the offices of the commission in Austin, Texas, the parties shall share equally the cost of the staff's travel expenses in an amount not to exceed the per diem allowance for state employees in accordance with the General Appropriations Act. (f) If the mediation results in a settlement, the commission shall by order approve the settlement and dismiss the contested proceeding. If the contested proceeding is not settled by agreement of the parties during the period for mediation provided by Subsection (c), the commission staff conducting the proceeding shall, before the 11th day after the completion of the period for mediation, send a confidential memorandum to the parties to the mediation that states one of the following conclusions, based on the information reviewed by the staff: (1) no discriminatory act has been identified; or (2) further formal proceeding is warranted. (g) The commission staff shall: (1) convene a settlement conference of the parties following the issuance of the memorandum to be held before the 31st day after the completion of the period for mediation if a party requests a settlement conference based on the confidential memorandum; or (2) set the contested proceeding for an administrative hearing under this chapter or Chapter 117 not later than the 61st day after the completion of the period for mediation. (h) If the commission holds a settlement conference and the conference results in a settlement, the commission shall by order approve the settlement and dismiss the contested proceeding. If a settlement conference does not result in a settlement, the commission staff shall set the matter for an administrative hearing under this chapter or Chapter 117. (i) Section 2009.054, Government Code, applies to any information produced or obtained during the mediation process. SECTION 3. This Act takes effect September 1, 2005.