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A BILL TO BE ENTITLED
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AN ACT
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relating to the recovery of certain rate case expenses by a water |
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and sewer utility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.185(h), Water Code, is amended to |
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read as follows: |
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(h) The regulatory authority may not include for ratemaking |
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purposes: |
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(1) legislative advocacy expenses, whether made |
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directly or indirectly, including legislative advocacy expenses |
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included in trade association dues; |
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(2) costs of processing a refund or credit under |
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Section 13.187 of this chapter; |
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(3) legal expenses, including court costs and |
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attorney's, consultant, and expert witness fees, incurred by a |
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water and sewer utility in a contested proceeding under Section |
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13.187 or an appeal of that proceeding, other than legal expenses |
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described by Section 13.084; or |
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(4) [(3)] any expenditure found by the regulatory |
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authority to be unreasonable, unnecessary, or not in the public |
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interest, including executive salaries, advertising expenses, |
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legal expenses, and civil penalties or fines. |
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SECTION 2. Section 13.185(h), Water Code, as amended by |
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this Act, applies only to a statement of intent for which a |
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regulatory authority has not issued a final decision before the |
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effective date of this Act. A statement of intent for which a |
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regulatory authority has issued a final decision before the |
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effective date of this Act is governed by the law in effect on the |
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date that final decision was issued, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |