81R9624 TRH-D

By: Nichols S.B. No. 1361

A BILL TO BE ENTITLED

AN ACT

relating to certificates of public convenience and necessity for water or sewer services.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 13.254, Water Code, is amended by amending Subsections (a-1) and (a-3) to read as follows:

(a-1) As an alternative to decertification under Subsection (a), the owner of a tract of land that is at least 25 [50] acres and that is not in a platted subdivision actually receiving water or sewer service may petition the commission under this subsection for expedited release of the area from a certificate of public convenience and necessity [so that the area may receive service from another retail public utility. The petitioner shall deliver, via certified mail, a copy of the petition to the certificate holder, who may submit information to the commission to controvert information submitted by the petitioner. The petitioner must demonstrate that:

[(1) a written request for service, other than a request for standard residential or commercial service, has been submitted to the certificate holder, identifying:

[(A) the area for which service is sought;

[(B) the timeframe within which service is needed for current and projected service demands in the area;

[(C) the level and manner of service needed for current and projected service demands in the area; and

[(D) any additional information requested by the certificate holder that is reasonably related to determination of the capacity or cost for providing the service;

[(2) the certificate holder has been allowed at least 90 calendar days to review and respond to the written request and the information it contains;

[(3) the certificate holder:

[(A) has refused to provide the service;

[(B) is not capable of providing the service on a continuous and adequate basis within the timeframe, at the level, or in the manner reasonably needed or requested by current and projected service demands in the area; or

[(C) conditions the provision of service on the payment of costs not properly allocable directly to the petitioner's service request, as determined by the commission; and

[(4) the alternate retail public utility from which the petitioner will be requesting service is capable of providing continuous and adequate service within the timeframe, at the level, and in the manner reasonably needed or requested by current and projected service demands in the area].

(a-3) Within 60 [90] calendar days from the date the petition is filed with the commission [determines the petition filed pursuant to Subsection (a-1) to be administratively complete], the commission shall grant the petition [unless the commission makes an express finding that the petitioner failed to satisfy the elements required in Subsection (a-1) and supports its finding with separate findings and conclusions for each element based solely on the information provided by the petitioner and the certificate holder. The commission may grant or deny a petition subject to terms and conditions specifically related to the service request of the petitioner and all relevant information submitted by the petitioner and the certificate holder]. The commission may not deny a petition based on the fact that a certificate holder is a borrower under a federal loan program. In addition, the commission may require an award of compensation as otherwise provided by this section.

SECTION 2. The changes in law made by Section 13.254, Water Code, as amended by this Act, apply only to a petition filed on or after the effective date of this Act. A petition filed before the effective date of this Act is subject to the law in effect on the date the petition is filed, and that law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2009.