By: Turner H.B. No. 1391
 
A BILL TO BE ENTITLED
AN ACT
relating to the provision of water and utility service.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Subchapter C, Chapter 341, Health and Safety
Code, is amended by adding Section 341.0357 to read as follows:
       Sec. 341.0357.  PUBLIC SAFETY STANDARDS.  (a)  In this
section:
             (1)  "Public utility" has the meaning assigned by
Section 13.002, Water Code.
             (2)  "Regulatory authority" has the meaning assigned by
Section 13.002, Water Code.
             (3)  "Residential area" means:
                   (A)  an area designated as a residential zoning
district by a governing ordinance or code or an area in which the
principal land use is for private residences;
                   (B)  a subdivision for which a plat is recorded in
the real property records of the county and that contains or is
bounded by public streets or parts of public streets that are
abutted by residential property occupying at least 75 percent of
the front footage along the block face; or
                   (C)  a subdivision a majority of the lots of which
are subject to deed restrictions limiting the lots to residential
use.
       (b)  The regulatory authority for a public utility shall by
rule or ordinance adopt standards for maintaining sufficient water
pressure for service to fire hydrants adequate to protect public
safety in residential areas in a municipality with a population of
655,000 or more.
       (c)  The commission shall assess residential areas in a
municipality with a population of 655,000 or more to ensure that:
             (1)  the regulatory authority for the area has adopted
the standards required by this section; and
             (2)  all public utilities serving the residential area
are complying with the standards required by this section.
       (d)  The commission shall require a municipality with a
population of 655,000 or more and acting as a regulatory authority
to make appropriate revisions to standards the commission considers
to be inadequate within a reasonable time established by the
commission.
       (e)  The commission shall require a public utility in
violation of a standard required under this section and established
by the commission or by a municipality with a population of 655,000
or more and acting as a regulatory authority to comply with the
standard within a reasonable time established by the commission.
       (f)  This section does not limit the authority of a
municipality with a population of 655,000 or more and acting as a
regulatory authority to prohibit a public utility in violation of a
standard established by the municipality from recovering through
the public utility's rates a penalty or fine incurred for a
violation of a standard.
       SECTION 2.  Section 341.040, Health and Safety Code, is
amended to read as follows:
       Sec. 341.040.  DEFINITION.  In this subchapter,
"commission" means the Texas [Natural Resource Conservation]
Commission on Environmental Quality.
       SECTION 3.  Subchapter C, Chapter 13, Water Code, is amended
by adding Section 13.046 to read as follows:
       Sec. 13.046.  TEMPORARY RATES FOR SERVICES PROVIDED FOR
NONFUNCTIONING SYSTEM; SANCTIONS FOR NONCOMPLIANCE. (a)  The
commission by rule shall establish a procedure that allows a retail
public utility that takes over the provision of services for a
nonfunctioning retail water or sewer utility service provider to
charge a reasonable rate for the services provided to the customers
of the nonfunctioning system and to bill the customers for the
services at that rate immediately to recover service costs.
       (b)  The rules must provide a streamlined process that the
retail public utility that takes over the nonfunctioning system may
use to apply to the commission for a ruling on the reasonableness of
the rates the utility is charging under Subsection (a). The process
must allow for adequate consideration of costs for interconnection
or other costs incurred in making services available and of the
costs that may necessarily be incurred to bring the nonfunctioning
system into compliance with commission rules.
       (c)  The commission shall provide a reasonable period for the
retail public utility that takes over the nonfunctioning system to
bring the nonfunctioning system into compliance with commission
rules during which the commission may not impose a penalty for any
deficiency in the system that is present at the time the utility
takes over the nonfunctioning system. The commission must consult
with the utility before determining the period and may grant an
extension of the period for good cause.
       SECTION 4.  This Act takes effect September 1, 2007.