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.