Amend HB 3542 by adding the following appropriately numbered SECTIONS to the bill and renumbering subsequent SECTIONS of the bill accordingly:
SECTION ____. Subchapter E, Chapter 13, Water Code, is amended by adding Section 13.150 to read as follows:
Sec. 13.150. REPORTS REQUIRED FOR WATER AND SEWER UTILITIES. (a) This section applies only to a utility that provides retail water or sewer utility service through fewer than 10,000 taps or connections.
(b) Except as provided by Subsection (c), a utility shall deliver to the utility commission a report of the utility's financial, managerial, and technical capacity to provide continuous and adequate service to its customers not later than the third anniversary of the date that the utility violates a final order of the commission by failing to:
(1) provide system capacity that is greater than the required raw water or groundwater production rate or the anticipated daily demand of the system;
(2) provide a minimum pressure of 35 pounds per square inch throughout the distribution system under normal operating conditions; or
(3) maintain accurate or properly calibrated testing equipment or other means of monitoring the effectiveness of a chemical treatment or pathogen inactivation or removal process.
(c) A utility that has an existing obligation to deliver a report under Subsection (b) is not required to deliver another report as a result of the occurrence of an event described by Subsection (b) if the event occurs before the date that the utility delivers the report required by Subsection (b).
(d) On receiving notice that a utility has violated an order described by Subsection (b), the commission shall provide written notice of the violation to the utility commission.
(e) The utility commission shall deliver a copy of a report received under Subsection (b) to:
(1) each state senator representing a district that contains a portion of the service area of the utility that submitted the report; and
(2) each state representative representing a district that contains a portion of the service area of the utility that submitted the report.
(f) If a utility fails to deliver a report in accordance with Subsection (b), the utility commission shall report the failure to:
(1) the commission;
(2) each state senator representing a district that contains a portion of the utility's service area; and
(3) each state representative representing a district that contains a portion of the utility's service area.
SECTION ____. Section 13.4132(a), Water Code, is amended to read as follows:
(a) The utility commission or the commission, after providing to the utility notice and an opportunity to be heard by the commissioners at a utility commission or commission meeting, may authorize a willing person to temporarily manage and operate a utility if the utility:
(1) has discontinued or abandoned operations or the provision of services; [or]
(2) has been or is being referred to the attorney general for the appointment of a receiver under Section 13.412; or
(3) provides retail water or sewer utility service through fewer than 10,000 taps or connections and violates a final order of the commission by failing to:
(A) provide system capacity that is greater than the required raw water or groundwater production rate or the anticipated daily demand of the system;
(B) provide a minimum pressure of 35 pounds per square inch throughout the distribution system under normal operating conditions; or
(C) maintain accurate or properly calibrated testing equipment or other means of monitoring the effectiveness of a chemical treatment or pathogen inactivation or removal process.
SECTION ____. (a) Except as provided by Subsection (b) of this section, a utility that provides retail water or sewer utility service through fewer than 10,000 taps or connections and that, not more than three years before the effective date of this Act, violated an order described by Section 13.150(b), Water Code, as added by this Act, shall submit a report described by Section 13.150(b), Water Code, as added by this Act, not later than the fifth anniversary of the event.
(b) A utility that provides retail water or sewer utility service through fewer than 10,000 taps or connections and that has an existing obligation to deliver a report under Subsection (a) of this section is not required to deliver another report as a result of the occurrence of an event described by Section 13.150(b), Water Code, as added by this Act, if the event occurs before the date that the utility delivers the report required by Subsection (a) of this section.