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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a petitioner to pay off a certificate |
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holder's federal loan to facilitate decertification of a |
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certificated area. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.254(a-1), Water Code, is amended to |
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read as follows: |
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(a-1) As an alternative to decertification under Subsection |
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(a), the owner of a tract of land that is at least 50 acres and that |
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is not in a platted subdivision actually receiving water or sewer |
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service may petition the utility commission under this subsection |
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for expedited release of the area from a certificate of public |
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convenience and necessity so that the area may receive service from |
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another retail public utility. The fact that a certificate holder |
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is a borrower under a federal loan program is not a bar to a request |
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under this subsection for the release of the petitioner's land and |
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the receipt of services from an alternative provider. If the |
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certificate holder is a borrower under a federal loan program, the |
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petitioner is entitled to pay off the loan to facilitate the release |
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process, if allowed under federal law. On the day the petitioner |
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submits the petition to the utility commission, the petitioner |
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shall send, via certified mail, a copy of the petition to the |
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certificate holder, who may submit information to the utility |
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commission to controvert information submitted by the petitioner. |
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The petitioner must demonstrate that: |
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(1) a written request for service, other than a |
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request for standard residential or commercial service, has been |
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submitted to the certificate holder, identifying: |
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(A) the area for which service is sought; |
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(B) the timeframe within which service is needed |
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for current and projected service demands in the area; |
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(C) the level and manner of service needed for |
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current and projected service demands in the area; |
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(D) the approximate cost for the alternative |
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provider to provide the service at the same level and manner that is |
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requested from the certificate holder; |
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(E) the flow and pressure requirements and |
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specific infrastructure needs, including line size and system |
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capacity for the required level of fire protection requested; and |
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(F) any additional information requested by the |
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certificate holder that is reasonably related to determination of |
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the capacity or cost for providing the service; |
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(2) the certificate holder has been allowed at least |
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90 calendar days to review and respond to the written request and |
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the information it contains; |
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(3) the certificate holder: |
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(A) has refused to provide the service; |
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(B) is not capable of providing the service on a |
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continuous and adequate basis within the timeframe, at the level, |
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at the approximate cost that the alternative provider is capable of |
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providing for a comparable level of service, or in the manner |
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reasonably needed or requested by current and projected service |
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demands in the area; or |
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(C) conditions the provision of service on the |
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payment of costs not properly allocable directly to the |
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petitioner's service request, as determined by the utility |
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commission; and |
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(4) the alternate retail public utility from which the |
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petitioner will be requesting service possesses the financial, |
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managerial, and technical capability to provide continuous and |
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adequate service within the timeframe, at the level, at the cost, |
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and in the manner reasonably needed or requested by current and |
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projected service demands in the area. |
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SECTION 2. Section 13.2541(d), Water Code, is amended to |
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read as follows: |
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(d) The utility commission may not deny the petition based |
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on the fact that the certificate holder is a borrower under a |
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federal loan program. If the certificate holder is a borrower under |
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a federal loan program, the petitioner is entitled to pay off the |
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loan to facilitate the release process, if allowed under federal |
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law. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |