By: Nichols  S.B. No. 997
         (In the Senate - Filed March 3, 2021; March 18, 2021, read
  first time and referred to Committee on Water, Agriculture & Rural
  Affairs; April 20, 2021, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 8, Nays 0;
  April 20, 2021, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 997 By:  Perry
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to procedural requirements for the review of a contractual
  rate charged for the furnishing of raw or treated water or water or
  sewer service.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 12.013, Water Code, is amended by adding
  Subsections (g), (h), (i), (j), (k), and (l) to read as follows:
         (g)  In a proceeding under this section or Chapter 11 to
  review a rate charged under a written contract, the utility
  commission may not hold a hearing on or otherwise prescribe just and
  reasonable amounts to be charged under the contract unless the
  utility commission determines that the amount charged under the
  contract harms the public interest. A determination under this
  subsection becomes final for purposes of appeal in the manner
  provided by Section 2001.144, Government Code.
         (h)  A party adversely affected by a determination under
  Subsection (g) may seek judicial review of the determination.
  Judicial review of a determination under Subsection (g) shall be by
  trial de novo.
         (i)  The utility commission shall abate proceedings on the
  contract in the event of an appeal under Subsection (h) until the
  entry of a final judicial determination that a rate charged under
  the contract harms the public interest.
         (j)  Chapter 2001, Government Code, applies to an appeal
  under Subsection (h).
         (k)  The utility commission shall, before holding a hearing
  on or otherwise prescribing a just and reasonable rate to be charged
  under the contract, allow the contracting parties to amend the
  amount charged under the contract until at least 60 days after the
  date:
               (1)  of a final judicial determination in an appeal
  under Subsection (h) that a rate charged under the contract harms
  the public interest; or
               (2)  the determination made under Subsection (g) became
  final if a motion for rehearing was not filed on time.
         (l)  If the parties amend their contract under Subsection
  (k), none of the parties may challenge before the utility
  commission the rate paid under the amended contract before:
               (1)  the fifth anniversary of the date of the contract
  amendment; or
               (2)  a date agreed to by the parties that is after the
  fifth anniversary of the date of the contract amendment.
         SECTION 2.  Subchapter C, Chapter 13, Water Code, is amended
  by adding Section 13.0431 to read as follows:
         Sec. 13.0431.  APPEALS BY RETAIL PUBLIC UTILITIES. (a) In
  an appeal under Section 13.043(f) on the amount paid for water or
  sewer service under a written contract, the utility commission may
  not hold a hearing on or otherwise prescribe just and reasonable
  amounts to be charged under the contract unless the utility
  commission determines that the amount charged under the contract
  harms the public interest. A determination under this subsection
  becomes final for purposes of appeal in the manner provided by
  Section 2001.144, Government Code.
         (b)  A party adversely affected by a determination under
  Subsection (a) may seek judicial review of the determination.
  Judicial review of a determination under Subsection (a) shall be by
  trial de novo.
         (c)  The utility commission shall abate proceedings on the
  contract in the event of an appeal under Subsection (b) until the
  entry of a final judicial determination that a rate charged under
  the contract harms the public interest.
         (d)  Chapter 2001, Government Code, applies to an appeal
  under Subsection (b).
         (e)  The utility commission shall, before holding a hearing
  on or otherwise prescribing a just and reasonable rate to be charged
  under the contract, allow the contracting parties to amend the
  amount charged under the contract until at least 60 days after the
  date:
               (1)  of a final judicial determination in an appeal
  under Subsection (b) that a rate charged under the contract harms
  the public interest; or
               (2)  the determination made under Subsection (a) became
  final if a motion for rehearing was not filed on time.
         (f)  If the parties amend their contract under Subsection
  (e), none of the parties may challenge before the utility
  commission the rate paid under the amended contract before:
               (1)  the fifth anniversary of the date of the contract
  amendment; or
               (2)  a date agreed to by the parties that is after the
  fifth anniversary of the date of the contract amendment.
         SECTION 3.  The changes in law made by this Act apply only to
  a rate proceeding under Chapter 11, 12, or 13, Water Code, that
  begins on or after the effective date of this Act. A rate
  proceeding that begins before the effective date of this Act is
  governed by the law in effect on the date the rate proceeding began,
  and the former law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2021.
 
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