Amend CSHB 3474 (senate committee printing) by adding the following appropriately numbered SECTION to the bill and renumbering subsequent SECTIONS of the bill accordingly:
SECTION ____. Effective September 1, 2015, Subchapter G, Chapter 13, Water Code, is amended by adding Section 13.2541 to read as follows:
Sec. 13.2541. APPOINTMENT OF TEMPORARY MANAGER. (a) Utility commission staff shall file a petition to appoint a temporary manager of an investor-owned water utility if the staff has reason to believe:
(1) the utility has repeated or continuous violations of commission rules or of the commission's predecessor agency rules regarding well capacity, storage tank capacity, service pump capacity, or pressure tank capacity for at least six years before the petition is filed;
(2) neither an owner of the utility nor the utility has borrowed money from a federally insured lending institution to remedy a violation of a rule described by Subdivision (1);
(3) the utility serves more than 1,000 connections but is made up of less than five public water systems;
(4) the utility does not serve customers who are located in a municipality; and
(5) the utility is located in a county with a population of more than 2.7 million.
(b) If, after notice and an opportunity for a hearing, the utility commission finds that the facts alleged in the petition are true, the utility commission may appoint a temporary manager and may also refer the investor-owned utility to the attorney general for the appointment of a receiver under Section 13.412. The utility commission shall issue its final order not more than 180 days after the date the petition is filed.
(c) If the utility commission appoints a temporary manager, the manager shall have all the power and authority provided by Section 13.4132(c). Not more than 120 days after the appointment of the manager, the manager shall recommend to the utility commission whether or not the utility's certificate should be revoked. If the manager recommends revocation, the manager shall recommend one or more retail public utilities that could provide service to the certificated area.
(d) If a court appoints a receiver for the utility, the temporary manager's appointment ends when the receiver executes the bond required by Section 13.412. The temporary manager is eligible to be appointed as the receiver.
(e) Not more than 90 days after the appointment of a receiver by the court, the receiver shall recommend to the utility commission whether or not the utility's certificate of convenience and necessity should be revoked. If the receiver recommends revocation, the receiver shall recommend one or more retail public utilities that could provide service to the certificated area. The receiver may recommend any other remedy authorized by this chapter.
(f) If the receiver recommends revocation, the utility commission staff shall file a petition to revoke the certificate of convenience and necessity under Section 13.254.