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        |  | AN ACT | 
      
        |  | relating to procedures for imposing certain administrative | 
      
        |  | penalties or disgorgement orders by the Public Utility Commission | 
      
        |  | of Texas. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Section 15.024, Utilities Code, is amended by | 
      
        |  | amending Subsections (b), (e), and (f) and adding Subsection (b-1) | 
      
        |  | to read as follows: | 
      
        |  | (b)  Not later than the 14th day after the date the report is | 
      
        |  | issued, the executive director shall give written notice of the | 
      
        |  | report to the person against whom the penalty may be assessed.  The | 
      
        |  | notice may be given by regular or certified mail.  The notice must: | 
      
        |  | (1)  include a brief summary of the alleged violation; | 
      
        |  | (2)  state the amount of the recommended penalty; and | 
      
        |  | (3)  inform the person that the person has a right to a | 
      
        |  | hearing on the occurrence of the violation, the amount of the | 
      
        |  | penalty, or both the occurrence of the violation and the amount of | 
      
        |  | the penalty. | 
      
        |  | (b-1)  If the commission sends written notice to a person by | 
      
        |  | mail addressed to the person's mailing address as maintained in the | 
      
        |  | commission's records, the person is deemed to have received notice: | 
      
        |  | (1)  on the fifth day after the date that the commission | 
      
        |  | sent the written notice, for notice sent by regular mail; or | 
      
        |  | (2)  on the date the written notice is received or | 
      
        |  | delivery is refused, for notice sent by certified mail. | 
      
        |  | (e)  If the person accepts the executive director's | 
      
        |  | determination and recommended penalty or fails to timely respond to | 
      
        |  | the notice, the commission by order shall approve the determination | 
      
        |  | and impose the recommended penalty or order a hearing on the | 
      
        |  | determination and the recommended penalty. | 
      
        |  | (f)  If the person requests a hearing or the commission | 
      
        |  | orders a hearing under Subsection (e) [ fails to timely respond to  | 
      
        |  | the notice], the commission [executive director] shall refer the | 
      
        |  | matter to the State Office of Administrative Hearings for [ set] a | 
      
        |  | hearing and give notice of the referral [ hearing] to the person. | 
      
        |  | The parties to a proceeding under this subchapter shall be limited | 
      
        |  | to the person and the commission, including the independent market | 
      
        |  | monitor.  The hearing shall be held by an administrative law judge | 
      
        |  | of the State Office of Administrative Hearings and notice of the | 
      
        |  | hearing must be provided in accordance with Chapter 2001, | 
      
        |  | Government Code.  The administrative law judge shall make findings | 
      
        |  | of fact and conclusions of law and promptly issue to the commission | 
      
        |  | a proposal for a decision about the occurrence of the violation and | 
      
        |  | the amount of a proposed penalty.  Based on the findings of fact, | 
      
        |  | conclusions of law, and proposal for a decision, the commission by | 
      
        |  | order may find that a violation has occurred and impose a penalty or | 
      
        |  | disgorgement order or may find that no violation occurred. | 
      
        |  | SECTION 2.  The changes in law made by this Act apply only to | 
      
        |  | the procedures for an administrative penalty or disgorgement order | 
      
        |  | for which a written notice is given under Section 15.024(b), | 
      
        |  | Utilities Code, on or after the effective date of this Act.  Those | 
      
        |  | procedures for a penalty or order for which a written notice is | 
      
        |  | given before the effective date of this Act are governed by the law | 
      
        |  | in effect on the date the notice is given, and the former law is | 
      
        |  | continued in effect for that purpose. | 
      
        |  | SECTION 3.  This Act takes effect September 1, 2019. | 
      
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        |  | ______________________________ | ______________________________ | 
      
        |  | President of the Senate | Speaker of the House | 
      
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        |  | I hereby certify that S.B. No. 1358 passed the Senate on | 
      
        |  | April 11, 2019, by the following vote:  Yeas 30, Nays 1. | 
      
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        |  | ______________________________ | 
      
        |  | Secretary of the Senate | 
      
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        |  | I hereby certify that S.B. No. 1358 passed the House on | 
      
        |  | May 3, 2019, by the following vote:  Yeas 140, Nays 0, two present | 
      
        |  | not voting. | 
      
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        |  | ______________________________ | 
      
        |  | Chief Clerk of the House | 
      
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        |  | Approved: | 
      
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        |  | ______________________________ | 
      
        |  | Date | 
      
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        |  | ______________________________ | 
      
        |  | Governor |