87R16124 CXP-F
 
  By: Paddie, Hernandez, et al. H.B. No. 10
 
  Substitute the following for H.B. No. 10:
 
  By:  Hunter C.S.H.B. No. 10
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the governance of the Public Utility Commission of
  Texas, the Office of Public Utility Counsel, and an independent
  organization certified to manage a power region.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 12.052(a), Utilities Code, is amended to
  read as follows:
         (a)  The governor shall designate a commissioner as the
  presiding officer. The commissioner designated as the presiding
  officer must be a resident of this state.
         SECTION 2.  Section 13.022(a), Utilities Code, is amended to
  read as follows:
         (a)  The counsellor must:
               (1)  be licensed to practice law in this state and a
  resident of this state;
               (2)  have demonstrated a strong commitment to and
  involvement in efforts to safeguard the rights of the public; and
               (3)  possess the knowledge and experience necessary to
  practice effectively in utility proceedings.
         SECTION 3.  Section 39.151, Utilities Code, is amended by
  amending Subsections (g) and (g-1) and adding Subsections (g-2),
  (g-3), (g-4), and (g-5) to read as follows:
         (g)  To maintain certification as an independent
  organization under this section, an organization's governing body
  must be composed of persons specified by this section and selected
  in accordance with formal bylaws or protocols of the organization.
  The bylaws or protocols must be approved by the commission and must
  reflect the input of the commission. The bylaws must specify the
  process by which appropriate stakeholders elect members [and, for
  unaffiliated members, prescribe professional qualifications for
  selection as a member. The bylaws must require the use of a
  professional search firm to identify candidates for membership of
  unaffiliated members]. The process must allow for commission input
  in identifying candidates. The governing body must be composed of:
               (1)  the chairman of the commission as an ex officio
  nonvoting member;
               (2)  the counsellor as an ex officio voting member
  representing residential and small commercial consumer interests;
               (3)  the chief executive officer of the independent
  organization as an ex officio voting member;
               (4)  six market participants elected by their
  respective market segments to serve one-year terms, with:
                     (A)  one representing independent generators;
                     (B)  one representing investor-owned utilities;
                     (C)  one representing power marketers;
                     (D)  one representing retail electric providers;
                     (E)  one representing municipally owned
  utilities; and
                     (F)  one representing electric cooperatives;
               (5)  one member representing industrial consumer
  interests and elected by the industrial consumer market segment to
  serve a one-year term;
               (6)  one member representing large commercial consumer
  interests selected in accordance with the bylaws to serve a
  one-year term; [and]
               (7)  three members appointed by the governor, at least
  one of whom must represent residential consumer interests;
               (8)  one member appointed by the lieutenant governor;
  and
               (9)  one member appointed by the speaker of the house of
  representatives [five members unaffiliated with any market segment
  and selected by the other members of the governing body to serve
  three-year terms].
         (g-1)  The governor shall designate the presiding officer of
  the independent organization's governing body [must be one of the
  members described by Subsection (g)(7)].
         (g-2)  Members of the governing body of an independent
  organization certified under this section appointed under
  Subsections (g)(7), (8), and (9) serve staggered terms of two
  years, with three members' terms expiring February 1 of each
  odd-numbered year and two members' terms expiring February 1 of
  each even-numbered year. Not later than the 30th day after the date
  a member of the governing body's term expires, the appropriate
  appointing authority shall appoint a replacement in the same manner
  as the original appointment. If a vacancy occurs on the governing
  body, the appropriate appointing authority shall appoint a
  successor in the same manner as the original appointment to serve
  for the remainder of the unexpired term. The appropriate
  appointing authority shall appoint the successor not later than the
  30th day after the date the vacancy occurs.
         (g-3)  To qualify as a member of the governing body under
  Subsection (g)(4), (5), (6), (7), (8), or (9), a person must be a
  resident of this state.
         (g-4)  To maintain certification as an independent
  organization under this section, an organization's chief executive
  officer must be a resident of this state.
         (g-5)  A member of the governing body is not entitled to
  compensation, but is entitled to reimbursement for travel and other
  necessary expenses related to the activities of the independent
  organization as provided by the General Appropriations Act.
         SECTION 4.  (a) As soon as practicable after the effective
  date of this Act, the governor, lieutenant governor, and speaker of
  the house of representatives shall comply with Section 39.151,
  Utilities Code, as amended by this Act, by appointing members to the
  governing body of an independent organization certified under
  Section 39.151, Utilities Code, by the Public Utility Commission of
  Texas before September 1, 2021. To establish staggered terms, the
  governor shall designate three initial appointees to serve terms
  expiring February 1 of the next odd-numbered year and two initial
  appointees to serve terms expiring February 1 of the next
  even-numbered year.
         (b)  An independent organization certified under Section
  39.151, Utilities Code, by the Public Utility Commission of Texas
  before September 1, 2021, shall ensure that the chief executive
  officer of the organization is a resident of this state as soon as
  practicable, but not later than September 1, 2022.
         (c)  After September 1, 2022, the Public Utility Commission
  of Texas may decertify an independent organization whose governing
  body or chief executive officer does not comply with Section
  39.151, Utilities Code, as amended by this Act.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.