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A BILL TO BE ENTITLED
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AN ACT
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relating to the revocation of certain water utilities' certificate |
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of public convenience and necessity for major rules violations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 13, Water Code, is amended |
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by adding Section 13.2541 to read as follows: |
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Sec. 13.2541. REVOCATION OF CERTIFICATE FOR CERTAIN MAJOR |
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VIOLATORS. (a) Utility commission staff shall file a petition to |
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revoke an investor-owned water utility's certificate of public |
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convenience and necessity if the staff has reason to believe: |
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(1) the utility has committed repeated or continuous |
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major violations of one or more commission rules related to safe |
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drinking water for at least six years before the petition is filed; |
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(2) none of the owners of the utility have borrowed |
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money from a federally insured lending institution to use to remedy |
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a violation of one or more commission rules related to safe drinking |
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water; |
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(3) the utility serves more than 1,000 connections but |
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is made up of less than five public water systems; |
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(4) the utility does not serve customers who are |
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located in a municipality; and |
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(5) the utility is located in a county with a |
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population of more than four million. |
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(b) If, after notice and hearing, the utility commission |
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finds that the facts alleged in the petition are true, the utility |
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commission may revoke the investor-owned water utility's |
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certificate on or before the 90th day after the date the petition is |
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filed. |
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(c) At the time the utility commission revokes the |
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certificate it shall appoint a temporary manager and temporarily |
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transfer the certificate to the temporary manager. On accepting |
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the transfer, the temporary manager has all the powers necessary to |
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operate and manage the utility until the utility commission |
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certifies another retail public utility. |
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(d) Not more than 12 months after the date the utility |
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commission appoints a temporary manager under Subsection (c), the |
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utility commission shall offer at auction any property that the |
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utility commission determines is rendered useless or valueless to |
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the decertified investor-owned water utility as a result of the |
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decertification. |
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(e) Any person, including public and private water |
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utilities and the temporary manager appointed under Subsection (c), |
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may apply for approval to bid on the decertified utility's assets |
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and property. The utility commission shall review each application |
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and approve applicants that it determines have the financial, |
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managerial, and technical ability to provide safe, adequate, and |
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continuous water service to the decertified utility's customers. |
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Only approved applicants may bid in the auction. The utility |
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commission shall request proposals from all approved bidders. |
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(f) Before the auction, the utility commission and the |
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temporary manager shall: |
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(1) make the books and records of the decertified |
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utility available to all approved bidders; and |
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(2) provide an opportunity for all approved bidders to |
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inspect the decertified utility's assets and property. |
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(g) Each bid must: |
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(1) estimate the rates the bidder would charge for |
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service during the first five years following the date of the sale; |
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and |
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(2) agree that the bidder, if the bidder purchases the |
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assets and property, will consider making improvements to remedy |
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and prevent damages from previous violations of commission rules |
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related to safe drinking water before the third anniversary of the |
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purchase date. |
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(h) The utility commission shall select the bidder that has |
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the best plan to remedy previous violations of commission rules, as |
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determined by the utility commission, and, on completion of the |
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sale to the selected bidder and payment to the decertified utility, |
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transfer the certificate of public convenience and necessity from |
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the temporary manager to the selected bidder. |
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(i) This section expires December 31, 2019. |
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SECTION 2. This Act takes effect September 1, 2015. |