By: Armbrister S.B. No. 1751 A BILL TO BE ENTITLED AN ACT 1-1 relating to the adoption of a nonsubstantive revision of statutes 1-2 relating to utilities, including conforming amendments, repeals, 1-3 and penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. ADOPTION OF CODE. The Utilities Code is adopted 1-6 to read as follows: 1-7 UTILITIES CODE 1-8 TITLE 1. GENERAL PROVISIONS 1-9 CHAPTER 1. GENERAL PROVISIONS 1-10 (Chapters 2-10 reserved for expansion) 1-11 TITLE 2. PUBLIC UTILITY REGULATORY ACT 1-12 SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES 1-13 CHAPTER 11. GENERAL PROVISIONS 1-14 CHAPTER 12. ORGANIZATION OF COMMISSION 1-15 CHAPTER 13. OFFICE OF PUBLIC UTILITY COUNCIL 1-16 CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND 1-17 OTHER REGULATORY AUTHORITIES 1-18 CHAPTER 15. JUDICIAL REVIEW, ENFORCEMENT, AND PENALTIES 1-19 CHAPTER 16. COMMISSION FINANCING 1-20 (Chapters 17-30 reserved for expansion) 1-21 SUBTITLE B. ELECTRIC UTILITIES 1-22 CHAPTER 31. GENERAL PROVISIONS 2-1 CHAPTER 32. JURISDICTION AND POWERS OF COMMISSION AND 2-2 OTHER REGULATORY AUTHORITIES 2-3 CHAPTER 33. JURISDICTION AND POWERS OF MUNICIPALITY 2-4 CHAPTER 34. ELECTRICAL PLANNING 2-5 CHAPTER 35. ALTERNATIVE ENERGY PROVIDERS 2-6 CHAPTER 36. RATES 2-7 CHAPTER 37. CERTIFICATES OF CONVENIENCE AND NECESSITY 2-8 CHAPTER 38. REGULATION OF ELECTRIC SERVICES 2-9 (Chapters 39-50 reserved for expansion) 2-10 SUBTITLE C. TELECOMMUNICATIONS UTILITIES 2-11 CHAPTER 51. GENERAL PROVISIONS 2-12 CHAPTER 52. COMMISSION JURISDICTION 2-13 CHAPTER 53. RATES 2-14 CHAPTER 54. CERTIFICATES 2-15 CHAPTER 55. REGULATION OF TELECOMMUNICATIONS SERVICES 2-16 CHAPTER 56. TELECOMMUNICATIONS ASSISTANCE AND UNIVERSAL 2-17 SERVICE FUND 2-18 CHAPTER 57. DISTANCE LEARNING AND OTHER ADVANCED SERVICES 2-19 CHAPTER 58. INCENTIVE REGULATION 2-20 CHAPTER 59. INFRASTRUCTURE PLAN 2-21 CHAPTER 60. COMPETITIVE SAFEGUARDS 2-22 CHAPTER 61. INFORMATION TECHNOLOGY SERVICES 2-23 CHAPTER 62. BROADCASTER SAFEGUARDS 2-24 CHAPTER 63. ELECTRONIC PUBLISHING 2-25 (Chapters 64-100 reserved for expansion) 3-1 TITLE 3. GAS REGULATION 3-2 SUBTITLE A. GAS UTILITY REGULATORY ACT 3-3 CHAPTER 101. GENERAL PROVISIONS AND OFFICE OF PUBLIC 3-4 UTILITY COUNSEL 3-5 CHAPTER 102. JURISDICTION AND POWERS OF RAILROAD COMMISSION 3-6 AND OTHER REGULATORY AUTHORITIES 3-7 CHAPTER 103. JURISDICTION AND POWERS OF MUNICIPALITY 3-8 CHAPTER 104. RATES AND SERVICES 3-9 CHAPTER 105. JUDICIAL REVIEW; ENFORCEMENT AND PENALTIES 3-10 (Chapters 106-120 reserved for expansion) 3-11 SUBTITLE B. REGULATION OF TRANSPORTATION AND USE 3-12 CHAPTER 121. GAS PIPELINES 3-13 CHAPTER 122. GAS UTILITY PIPELINE TAX 3-14 CHAPTER 123. USE OF NATURAL GAS FOR AGRICULTURAL PURPOSES 3-15 CHAPTER 124. SUBMETERING TO MOBILE HOME PARKS AND 3-16 APARTMENT HOUSES 3-17 (Chapters 125-160 reserved for expansion) 3-18 TITLE 4. DELIVERY OF UTILITY SERVICES 3-19 SUBTITLE A. UTILITY CORPORATIONS AND OTHER PROVIDERS 3-20 CHAPTER 161. ELECTRIC COOPERATIVE CORPORATIONS 3-21 CHAPTER 162. TELEPHONE COOPERATIVE CORPORATIONS 3-22 CHAPTER 163. JOINT POWERS AGENCIES 3-23 CHAPTER 164. JOINT OWNERSHIP OF ELECTRIC FACILITIES BY 3-24 PUBLIC ENTITIES 3-25 (Chapters 165-180 reserved for expansion) 4-1 SUBTITLE B. PROVISIONS REGULATING DELIVERY OF SERVICES 4-2 CHAPTER 181. MISCELLANEOUS POWERS AND DUTIES OF UTILITIES 4-3 CHAPTER 182. RIGHTS OF UTILITY CUSTOMERS 4-4 CHAPTER 183. UTILITY DEPOSITS 4-5 CHAPTER 184. ELECTRIC AND WATER METERING 4-6 CHAPTER 185. RATING OF SOLAR ENERGY DEVICES 4-7 CHAPTER 186. PROVISIONS TO ENSURE THE RELIABILITY AND INTEGRITY 4-8 OF UTILITY SERVICE 4-9 UTILITIES CODE 4-10 TITLE 1. GENERAL PROVISIONS 4-11 CHAPTER 1. GENERAL PROVISIONS 4-12 Sec. 1.001. PURPOSE OF CODE 4-13 Sec. 1.002. CONSTRUCTION OF CODE 4-14 Sec. 1.003. REFERENCE IN LAW TO STATUTE REVISED BY CODE 4-15 CHAPTER 1. GENERAL PROVISIONS 4-16 Sec. 1.001. PURPOSE OF CODE. (a) This code is enacted as a 4-17 part of the state's continuing statutory revision program, begun by 4-18 the Texas Legislative Council in 1963 as directed by the 4-19 legislature in the law codified as Section 323.007, Government 4-20 Code. The program contemplates a topic-by-topic revision of the 4-21 state's general and permanent statute law without substantive 4-22 change. 4-23 (b) Consistent with the objectives of the statutory revision 4-24 program, the purpose of this code is to make the law encompassed by 4-25 this code more accessible and understandable by: 5-1 (1) rearranging the statutes into a more logical 5-2 order; 5-3 (2) employing a format and numbering system designed 5-4 to facilitate citation of the law and to accommodate future 5-5 expansion of the law; 5-6 (3) eliminating repealed, duplicative, 5-7 unconstitutional, expired, executed, and other ineffective 5-8 provisions; and 5-9 (4) restating the law in modern American English to 5-10 the greatest extent possible. (New.) 5-11 Sec. 1.002. CONSTRUCTION OF CODE. Chapter 311, Government 5-12 Code (Code Construction Act), applies to the construction of each 5-13 provision in this code except as otherwise expressly provided by 5-14 this code. (New.) 5-15 Sec. 1.003. REFERENCE IN LAW TO STATUTE REVISED BY CODE. A 5-16 reference in a law to a statute or a part of a statute revised by 5-17 this code is considered to be a reference to the part of this code 5-18 that revises that statute or part of that statute. (New.) 5-19 (Chapters 2-10 reserved for expansion) 5-20 TITLE 2. PUBLIC UTILITY REGULATORY ACT 5-21 SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES 5-22 CHAPTER 11. GENERAL PROVISIONS 5-23 Sec. 11.001. SHORT TITLE 5-24 Sec. 11.002. PURPOSE AND FINDINGS 5-25 Sec. 11.003. DEFINITIONS 6-1 Sec. 11.004. DEFINITION OF UTILITY 6-2 Sec. 11.005. ENTITY, COMPETITOR, OR SUPPLIER AFFECTED IN 6-3 MANNER OTHER THAN BY SETTING OF RATES 6-4 Sec. 11.006. PERSON DETERMINED TO BE AFFILIATE 6-5 Sec. 11.007. ADMINISTRATIVE PROCEDURE 6-6 Sec. 11.008. LIBERAL CONSTRUCTION 6-7 Sec. 11.009. CONSTRUCTION WITH FEDERAL AUTHORITY 6-8 CHAPTER 11. GENERAL PROVISIONS 6-9 Sec. 11.001. SHORT TITLE. This title may be cited as the 6-10 Public Utility Regulatory Act. (V.A.C.S. Art. 1446c-0, Sec. 6-11 1.001.) 6-12 Sec. 11.002. PURPOSE AND FINDINGS. (a) This title is 6-13 enacted to protect the public interest inherent in the rates and 6-14 services of public utilities. The purpose of this title is to 6-15 establish a comprehensive and adequate regulatory system for public 6-16 utilities to assure rates, operations, and services that are just 6-17 and reasonable to the consumers and to the utilities. 6-18 (b) Public utilities traditionally are by definition 6-19 monopolies in the areas they serve. As a result, the normal forces 6-20 of competition that regulate prices in a free enterprise society do 6-21 not operate. Public agencies regulate utility rates, operations, 6-22 and services as a substitute for competition. (V.A.C.S. 6-23 Art. 1446c-0, Sec. 1.002.) 6-24 Sec. 11.003. DEFINITIONS. In this title: 6-25 (1) "Affected person" means: 7-1 (A) a public utility affected by an action of a 7-2 regulatory authority; 7-3 (B) a person whose utility service or rates are 7-4 affected by a proceeding before a regulatory authority; or 7-5 (C) a person who: 7-6 (i) is a competitor of a public utility 7-7 with respect to a service performed by the utility; or 7-8 (ii) wants to enter into competition with 7-9 a public utility. 7-10 (2) "Affiliate" means: 7-11 (A) a person who directly or indirectly owns or 7-12 holds at least five percent of the voting securities of a public 7-13 utility; 7-14 (B) a person in a chain of successive ownership 7-15 of at least five percent of the voting securities of a public 7-16 utility; 7-17 (C) a corporation that has at least five percent 7-18 of its voting securities owned or controlled, directly or 7-19 indirectly, by a public utility; 7-20 (D) a corporation that has at least five percent 7-21 of its voting securities owned or controlled, directly or 7-22 indirectly, by: 7-23 (i) a person who directly or indirectly 7-24 owns or controls at least five percent of the voting securities of 7-25 a public utility; or 8-1 (ii) a person in a chain of successive 8-2 ownership of at least five percent of the voting securities of a 8-3 public utility; 8-4 (E) a person who is an officer or director of a 8-5 public utility or of a corporation in a chain of successive 8-6 ownership of at least five percent of the voting securities of a 8-7 public utility; or 8-8 (F) a person determined to be an affiliate under 8-9 Section 11.006. 8-10 (3) "Allocation" means the division among 8-11 municipalities or among municipalities and unincorporated areas of 8-12 the plant, revenues, expenses, taxes, and reserves of a utility 8-13 used to provide public utility service in a municipality or for a 8-14 municipality and unincorporated areas. 8-15 (4) "Commission" means the Public Utility Commission 8-16 of Texas. 8-17 (5) "Commissioner" means a member of the Public 8-18 Utility Commission of Texas. 8-19 (6) "Cooperative corporation" means: 8-20 (A) an electric cooperative corporation 8-21 organized under Chapter 161 or a predecessor statute to Chapter 161 8-22 and operating under that chapter; or 8-23 (B) a telephone cooperative corporation 8-24 organized under Chapter 162 or a predecessor statute to Chapter 162 8-25 and operating under that chapter. 9-1 (7) "Corporation" means a domestic or foreign 9-2 corporation, joint-stock company, or association, and each lessee, 9-3 assignee, trustee, receiver, or other successor in interest of the 9-4 corporation, company, or association, that has any of the powers or 9-5 privileges of a corporation not possessed by an individual or 9-6 partnership. The term does not include a municipal corporation, 9-7 except as expressly provided by this title. 9-8 (8) "Counsellor" means the public utility counsel. 9-9 (9) "Facilities" means all of the plant and equipment 9-10 of a public utility, and includes the tangible and intangible 9-11 property, without limitation, owned, operated, leased, licensed, 9-12 used, controlled, or supplied for, by, or in connection with the 9-13 business of the public utility. 9-14 (10) "Municipally owned utility" means a utility 9-15 owned, operated, and controlled by a municipality or by a nonprofit 9-16 corporation the directors of which are appointed by one or more 9-17 municipalities. 9-18 (11) "Office" means the Office of Public Utility 9-19 Counsel. 9-20 (12) "Order" means all or a part of a final 9-21 disposition by a regulatory authority in a matter other than 9-22 rulemaking, without regard to whether the disposition is 9-23 affirmative or negative or injunctive or declaratory. The term 9-24 includes: 9-25 (A) the issuance of a certificate of convenience 10-1 and necessity; and 10-2 (B) the setting of a rate. 10-3 (13) "Person" includes an individual, a partnership of 10-4 two or more persons having a joint or common interest, a mutual or 10-5 cooperative association, and a corporation. 10-6 (14) "Proceeding" means a hearing, investigation, 10-7 inquiry, or other procedure for finding facts or making a decision 10-8 under this title. The term includes a denial of relief or 10-9 dismissal of a complaint. 10-10 (15) "Rate" includes: 10-11 (A) any compensation, tariff, charge, fare, 10-12 toll, rental, or classification that is directly or indirectly 10-13 demanded, observed, charged, or collected by a public utility for a 10-14 service, product, or commodity described in the definition of 10-15 utility in Section 31.002 or 51.002; and 10-16 (B) a rule, practice, or contract affecting the 10-17 compensation, tariff, charge, fare, toll, rental, or 10-18 classification. 10-19 (16) "Ratemaking proceeding" means: 10-20 (A) a proceeding in which a rate is changed; and 10-21 (B) a proceeding initiated under Chapter 34. 10-22 (17) "Regulatory authority" means either the 10-23 commission or the governing body of a municipality, in accordance 10-24 with the context. 10-25 (18) "Service" has its broadest and most inclusive 11-1 meaning. The term includes any act performed, anything supplied, 11-2 and any facilities used or supplied by a public utility in the 11-3 performance of the utility's duties under this title to its 11-4 patrons, employees, other public utilities, and the public. The 11-5 term also includes the interchange of facilities between two or 11-6 more public utilities. The term does not include the printing, 11-7 distribution, or sale of advertising in a telephone directory. 11-8 (19) "Test year" means the most recent 12 months, 11-9 beginning on the first day of a calendar or fiscal year quarter, 11-10 for which operating data for a public utility are available. 11-11 (20) "Trade association" means a nonprofit, 11-12 cooperative, and voluntarily joined association of business or 11-13 professional persons who are employed by public utilities or 11-14 utility competitors to assist the public utility industry, a 11-15 utility competitor, or the industry's or competitor's employees in 11-16 dealing with mutual business or professional problems and in 11-17 promoting their common interest. (V.A.C.S. Art. 1446c-0, Secs. 11-18 1.003(1), (2) (part), (3), (4), (5), (6), (7), (8), (9), (10), 11-19 (11), (12), (13), (13A), (14), (15), (16), (17), (18); New.) 11-20 Sec. 11.004. DEFINITION OF UTILITY. In Subtitle A, "public 11-21 utility" or "utility" means: 11-22 (1) an electric utility, as that term is defined by 11-23 Section 31.002; or 11-24 (2) a public utility or utility, as those terms are 11-25 defined by Section 51.002. (V.A.C.S. Art. 1446c-0, Sec. 1.004.) 12-1 Sec. 11.005. ENTITY, COMPETITOR, OR SUPPLIER AFFECTED IN 12-2 MANNER OTHER THAN BY SETTING OF RATES. In this title, an entity, 12-3 including a utility competitor or utility supplier, is considered 12-4 to be affected in a manner other than by the setting of rates for 12-5 that class of customer if during a relevant calendar year the 12-6 entity provides fuel, utility-related goods, utility-related 12-7 products, or utility-related services to a regulated or unregulated 12-8 provider of telecommunications or electric services or to an 12-9 affiliate in an amount equal to the greater of $10,000 or 10 12-10 percent of the person's business. (V.A.C.S. Art. 1446c-0, Sec. 12-11 1.006.) 12-12 Sec. 11.006. PERSON DETERMINED TO BE AFFILIATE. (a) The 12-13 commission may determine that a person is an affiliate for purposes 12-14 of this title if the commission after notice and hearing finds that 12-15 the person: 12-16 (1) actually exercises substantial influence or 12-17 control over the policies and actions of a public utility; 12-18 (2) is a person over which a public utility exercises 12-19 the control described by Subdivision (1); 12-20 (3) is under common control with a public utility; or 12-21 (4) together with one or more persons with whom the 12-22 person is related by ownership or blood relationship, or by action 12-23 in concert, actually exercises substantial influence over the 12-24 policies and actions of a public utility even though neither person 12-25 may qualify as an affiliate individually. 13-1 (b) For purposes of Subsection (a)(3), "common control with 13-2 a public utility" means the direct or indirect possession of the 13-3 power to direct or cause the direction of the management and 13-4 policies of another, without regard to whether that power is 13-5 established through ownership or voting of securities or by any 13-6 other direct or indirect means. (V.A.C.S. Art. 1446c-0, Sec. 13-7 1.003(2) (part).) 13-8 Sec. 11.007. ADMINISTRATIVE PROCEDURE. (a) Chapter 2001, 13-9 Government Code, applies to a proceeding under this title except to 13-10 the extent inconsistent with this title. 13-11 (b) A communication of a member or employee of the 13-12 commission with any person, including a party or a party's 13-13 representative, is governed by Section 2001.061, Government Code. 13-14 (V.A.C.S. Art. 1446c-0, Sec. 1.005(a).) 13-15 Sec. 11.008. LIBERAL CONSTRUCTION. This title shall be 13-16 construed liberally to promote the effectiveness and efficiency of 13-17 regulation of public utilities to the extent that this construction 13-18 preserves the validity of this title and its provisions. (V.A.C.S. 13-19 Art. 1446c-0, Sec. 1.404 (part).) 13-20 Sec. 11.009. CONSTRUCTION WITH FEDERAL AUTHORITY. This 13-21 title shall be construed to apply so as not to conflict with any 13-22 authority of the United States. (V.A.C.S. Art. 1446c-0, Sec. 1.404 13-23 (part).) 14-1 CHAPTER 12. ORGANIZATION OF COMMISSION 14-2 SUBCHAPTER A. GENERAL PROVISIONS 14-3 Sec. 12.001. PUBLIC UTILITY COMMISSION OF TEXAS 14-4 Sec. 12.002. OFFICE 14-5 Sec. 12.003. SEAL 14-6 Sec. 12.004. REPRESENTATION BY THE ATTORNEY GENERAL 14-7 Sec. 12.005. APPLICATION OF SUNSET ACT 14-8 (Sections 12.006-12.050 reserved for expansion) 14-9 SUBCHAPTER B. COMMISSION APPOINTMENT AND FUNCTIONS 14-10 Sec. 12.051. APPOINTMENT; TERM 14-11 Sec. 12.052. PRESIDING OFFICER 14-12 Sec. 12.053. MEMBERSHIP QUALIFICATIONS 14-13 Sec. 12.054. REMOVAL OF COMMISSIONER 14-14 Sec. 12.055. PROHIBITION ON SEEKING ANOTHER OFFICE 14-15 Sec. 12.056. EFFECT OF VACANCY 14-16 Sec. 12.057. COMPENSATION 14-17 Sec. 12.058. MEETINGS 14-18 Sec. 12.059. TRAINING PROGRAM FOR COMMISSIONERS 14-19 (Sections 12.060-12.100 reserved for expansion) 14-20 SUBCHAPTER C. COMMISSION PERSONNEL 14-21 Sec. 12.101. COMMISSION EMPLOYEES 14-22 Sec. 12.102. DUTIES OF EMPLOYEES 14-23 Sec. 12.103. DUTIES OF EXECUTIVE DIRECTOR 14-24 Sec. 12.104. DUTIES OF GENERAL COUNSEL 15-1 Sec. 12.105. CAREER LADDER PROGRAM; PERFORMANCE 15-2 EVALUATIONS; MERIT PAY 15-3 Sec. 12.106. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT 15-4 (Sections 12.107-12.150 reserved for expansion) 15-5 SUBCHAPTER D. PROHIBITED RELATIONSHIPS AND ACTIVITIES 15-6 Sec. 12.151. REGISTERED LOBBYIST 15-7 Sec. 12.152. CONFLICT OF INTEREST 15-8 Sec. 12.153. RELATIONSHIP WITH TRADE ASSOCIATION 15-9 Sec. 12.154. PROHIBITED ACTIVITIES 15-10 Sec. 12.155. PROHIBITION ON EMPLOYMENT OR REPRESENTATION 15-11 Sec. 12.156. QUALIFICATIONS AND STANDARDS OF 15-12 CONDUCT INFORMATION 15-13 (Sections 12.157-12.200 reserved for expansion) 15-14 SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND REPORTS 15-15 Sec. 12.201. PUBLIC INTEREST INFORMATION 15-16 Sec. 12.202. PUBLIC PARTICIPATION 15-17 Sec. 12.203. ANNUAL REPORT 15-18 (Sections 12.204-12.250 reserved for expansion) 15-19 SUBCHAPTER F. HISTORICALLY UNDERUTILIZED BUSINESSES 15-20 Sec. 12.251. DEFINITION 15-21 Sec. 12.252. COMMISSION AUTHORITY 15-22 Sec. 12.253. REPORT REQUIRED 15-23 Sec. 12.254. DISCRIMINATION PROHIBITED 15-24 Sec. 12.255. CAUSE OF ACTION NOT CREATED 16-1 CHAPTER 12. ORGANIZATION OF COMMISSION 16-2 SUBCHAPTER A. GENERAL PROVISIONS 16-3 Sec. 12.001. PUBLIC UTILITY COMMISSION OF TEXAS. The Public 16-4 Utility Commission of Texas exercises the jurisdiction and powers 16-5 conferred by this title. (V.A.C.S. Art. 1446c-0, Sec. 1.021(a) 16-6 (part).) 16-7 Sec. 12.002. OFFICE. (a) The principal office of the 16-8 commission is in Austin. 16-9 (b) The office shall be open daily during usual business 16-10 hours. The office is not required to be open on Saturday, Sunday, 16-11 or a legal holiday. (V.A.C.S. Art. 1446c-0, Sec. 1.031(a) (part).) 16-12 Sec. 12.003. SEAL. (a) The commission has a seal bearing 16-13 the inscription: "Public Utility Commission of Texas." 16-14 (b) The seal shall be affixed to each record and to an 16-15 authentication of a copy of a record. The commission may require 16-16 the seal to be affixed to other instruments. 16-17 (c) A court of this state shall take judicial notice of the 16-18 seal. (V.A.C.S. Art. 1446c-0, Sec. 1.032.) 16-19 Sec. 12.004. REPRESENTATION BY THE ATTORNEY GENERAL. The 16-20 attorney general shall represent the commission in a matter before 16-21 a state court, a court of the United States, or a federal public 16-22 utility regulatory commission. (V.A.C.S. Art. 1446c-0, Secs. 16-23 1.037, 1.301 (part).) 16-24 Sec. 12.005. APPLICATION OF SUNSET ACT. The Public Utility 16-25 Commission of Texas is subject to Chapter 325, Government Code 17-1 (Texas Sunset Act). Unless continued in existence as provided by 17-2 that chapter, the commission is abolished and this title expires 17-3 September 1, 2001. (V.A.C.S. Art. 1446c-0, Sec. 1.022 (part).) 17-4 (Sections 12.006-12.050 reserved for expansion) 17-5 SUBCHAPTER B. COMMISSION APPOINTMENT AND FUNCTIONS 17-6 Sec. 12.051. APPOINTMENT; TERM. (a) The commission is 17-7 composed of three commissioners appointed by the governor with the 17-8 advice and consent of the senate. 17-9 (b) An appointment to the commission shall be made without 17-10 regard to the race, color, disability, sex, religion, age, or 17-11 national origin of the appointee. 17-12 (c) Commissioners serve staggered, six-year terms. 17-13 (V.A.C.S. Art. 1446c-0, Secs. 1.021(a) (part), (d).) 17-14 Sec. 12.052. PRESIDING OFFICER. (a) The governor shall 17-15 designate a commissioner as the presiding officer. 17-16 (b) The presiding officer serves in that capacity at the 17-17 pleasure of the governor. (V.A.C.S. Art. 1446c-0, Sec. 1.021(c).) 17-18 Sec. 12.053. MEMBERSHIP QUALIFICATIONS. (a) To be eligible 17-19 for appointment, a commissioner must be: 17-20 (1) a qualified voter; 17-21 (2) a citizen of the United States; and 17-22 (3) a representative of the general public. 17-23 (b) A person is not eligible for appointment as a 17-24 commissioner if the person: 17-25 (1) at any time during the two years preceding 18-1 appointment: 18-2 (A) personally served as an officer, director, 18-3 owner, employee, partner, or legal representative of a public 18-4 utility, affiliate, or direct competitor of a public utility; or 18-5 (B) owned or controlled, directly or indirectly, 18-6 stocks or bonds of any class with a value of $10,000 or more in a 18-7 public utility, affiliate, or direct competitor of a public 18-8 utility; or 18-9 (2) is not qualified to serve under Section 12.151, 18-10 12.152, or 12.153. (V.A.C.S. Art. 1446c-0, Secs. 1.023(a) (part), 18-11 (c).) 18-12 Sec. 12.054. REMOVAL OF COMMISSIONER. (a) It is a ground 18-13 for removal from the commission if a commissioner: 18-14 (1) does not have at the time of appointment or 18-15 maintain during service on the commission the qualifications 18-16 required by Section 12.053; 18-17 (2) violates a prohibition provided by Section 12.053 18-18 or by Subchapter D; 18-19 (3) cannot discharge the commissioner's duties for a 18-20 substantial part of the term for which the commissioner is 18-21 appointed because of illness or disability; or 18-22 (4) is absent from more than half of the regularly 18-23 scheduled commission meetings that the commissioner is eligible to 18-24 attend during a calendar year unless the absence is excused by 18-25 majority vote of the commission. 19-1 (b) The validity of an action of the commission is not 19-2 affected by the fact that the action is taken when a ground for 19-3 removal of a commissioner exists. 19-4 (c) If the executive director has knowledge that a potential 19-5 ground for removal exists, the executive director shall notify the 19-6 presiding officer of the commission of the potential ground. The 19-7 presiding officer shall then notify the governor and the attorney 19-8 general that a potential ground for removal exists. If the 19-9 potential ground for removal involves the presiding officer, the 19-10 executive director shall notify the next highest officer of the 19-11 commission, who shall notify the governor and the attorney general 19-12 that a potential ground for removal exists. (V.A.C.S. 19-13 Art. 1446c-0, Secs. 1.026(a), (b), (c).) 19-14 Sec. 12.055. PROHIBITION ON SEEKING ANOTHER OFFICE. A 19-15 person may not seek nomination or election to another civil office 19-16 of this state or of the United States while serving as a 19-17 commissioner. If a commissioner files for nomination or election 19-18 to another civil office of this state or of the United States, the 19-19 person's office as commissioner immediately becomes vacant, and the 19-20 governor shall appoint a successor. (V.A.C.S. Art. 1446c-0, Sec. 19-21 1.024(f).) 19-22 Sec. 12.056. EFFECT OF VACANCY. A vacancy or 19-23 disqualification does not prevent the remaining commissioner or 19-24 commissioners from exercising the powers of the commission. 19-25 (V.A.C.S. Art. 1446c-0, Sec. 1.033 (part).) 20-1 Sec. 12.057. COMPENSATION. The annual salary of the 20-2 commissioners is determined by the legislature. (V.A.C.S. 20-3 Art. 1446c-0, Sec. 1.030.) 20-4 Sec. 12.058. MEETINGS. The commission shall hold meetings 20-5 at its office and at other convenient places in this state as 20-6 expedient and necessary for the proper performance of the 20-7 commission's duties. (V.A.C.S. Art. 1446c-0, Sec. 1.031(a) 20-8 (part).) 20-9 Sec. 12.059. TRAINING PROGRAM FOR COMMISSIONERS. 20-10 (a) Before a commissioner may assume the commissioner's duties and 20-11 before the commissioner may be confirmed by the senate, the 20-12 commissioner must complete at least one course of the training 20-13 program established under this section. 20-14 (b) A training program established under this section shall 20-15 provide information to the commissioner regarding: 20-16 (1) the enabling legislation that created the 20-17 commission and its policymaking body to which the commissioner is 20-18 appointed to serve; 20-19 (2) the programs operated by the commission; 20-20 (3) the role and functions of the commission; 20-21 (4) the rules of the commission with an emphasis on 20-22 the rules that relate to disciplinary and investigatory authority; 20-23 (5) the current budget for the commission; 20-24 (6) the results of the most recent formal audit of the 20-25 commission; 21-1 (7) the requirements of Chapters 551, 552, and 2001, 21-2 Government Code; 21-3 (8) the requirements of the conflict of interest laws 21-4 and other laws relating to public officials; and 21-5 (9) any applicable ethics policies adopted by the 21-6 commission or the Texas Ethics Commission. (V.A.C.S. Art. 1446c-0, 21-7 Secs. 1.026(d), (e).) 21-8 (Sections 12.060-12.100 reserved for expansion) 21-9 SUBCHAPTER C. COMMISSION PERSONNEL 21-10 Sec. 12.101. COMMISSION EMPLOYEES. The commission shall 21-11 employ: 21-12 (1) an executive director; 21-13 (2) a general counsel; and 21-14 (3) officers and other employees the commission 21-15 considers necessary to administer this title. (V.A.C.S. 21-16 Art. 1446c-0, Sec. 1.028(a) (part).) 21-17 Sec. 12.102. DUTIES OF EMPLOYEES. The commission shall 21-18 develop and implement policies that clearly define the respective 21-19 responsibilities of the commission and commission employees. 21-20 (V.A.C.S. Art. 1446c-0, Sec. 1.028(a) (part).) 21-21 Sec. 12.103. DUTIES OF EXECUTIVE DIRECTOR. The executive 21-22 director is responsible for the daily operations of the commission 21-23 and shall coordinate the activities of commission employees. 21-24 (V.A.C.S. Art. 1446c-0, Sec. 1.028(b).) 21-25 Sec. 12.104. DUTIES OF GENERAL COUNSEL. The duties of the 22-1 general counsel include: 22-2 (1) gathering information relating to each matter 22-3 within the authority of the commission; 22-4 (2) accumulating evidence and other information for 22-5 the purposes specified by this section from: 22-6 (A) public utilities; 22-7 (B) the accounting, technical, and other 22-8 commission staff; and 22-9 (C) other sources; 22-10 (3) preparing and presenting the evidence described by 22-11 Subdivision (2) in a proceeding before the commission or the 22-12 commission's appointed examiner; 22-13 (4) conducting an investigation of a public utility 22-14 under the jurisdiction of the commission; 22-15 (5) preparing proposed changes in the rules of the 22-16 commission; 22-17 (6) preparing recommendations that the commission 22-18 investigate a matter within its authority; 22-19 (7) preparing recommendations and a report by 22-20 commission employees for inclusion in the annual report of the 22-21 commission; 22-22 (8) protecting and representing the public interest 22-23 and, as necessary to effect the objectives and purposes stated in 22-24 this title and protect the public interest, coordinating and 22-25 directing the preparation and presentation of evidence from 23-1 commission employees in each case before the commission; and 23-2 (9) performing any other activity reasonably necessary 23-3 to the general counsel's duties. (V.A.C.S. Art. 1446c-0, Secs. 23-4 1.028(c), (d).) 23-5 Sec. 12.105. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS; 23-6 MERIT PAY. (a) The executive director or the executive director's 23-7 designee shall develop an intra-agency career ladder program that 23-8 addresses opportunities for mobility and advancement for commission 23-9 employees. The program shall require intra-agency posting of each 23-10 position concurrently with any public posting. 23-11 (b) The executive director or the executive director's 23-12 designee shall develop a system of annual performance evaluations 23-13 that are based on documented employee performance. Merit pay for 23-14 commission employees must be based on the system established under 23-15 this subsection. (V.A.C.S. Art. 1446c-0, Sec. 1.029(a).) 23-16 Sec. 12.106. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT. 23-17 (a) The executive director or the executive director's designee 23-18 shall prepare and maintain a written policy statement to ensure 23-19 implementation of a program of equal employment opportunity under 23-20 which all personnel transactions are made without regard to race, 23-21 color, disability, sex, religion, age, or national origin. 23-22 (b) The policy statement under Subsection (a) must include: 23-23 (1) personnel policies, including policies related to 23-24 recruitment, evaluation, selection, appointment, training, and 23-25 promotion of personnel, that are in compliance with the 24-1 requirements of Chapter 21, Labor Code; 24-2 (2) a comprehensive analysis of the commission 24-3 workforce that meets federal and state guidelines; 24-4 (3) procedures by which a determination can be made 24-5 about the extent of underuse in the commission workforce of all 24-6 persons for whom federal or state guidelines encourage a more 24-7 equitable balance; and 24-8 (4) reasonable methods to appropriately address the 24-9 underuse. 24-10 (c) A policy statement prepared under Subsection (b) must: 24-11 (1) cover an annual period; 24-12 (2) be updated at least annually; 24-13 (3) be reviewed by the Commission on Human Rights for 24-14 compliance with Subsection (b)(1); and 24-15 (4) be filed with the governor's office. 24-16 (d) The governor's office shall deliver a biennial report to 24-17 the legislature based on the information received under Subsection 24-18 (c). The report may be made separately or as a part of other 24-19 biennial reports to the legislature. (V.A.C.S. Art. 1446c-0, Secs. 24-20 1.029(b), (c), (d).) 24-21 (Sections 12.107-12.150 reserved for expansion) 24-22 SUBCHAPTER D. PROHIBITED RELATIONSHIPS AND ACTIVITIES 24-23 Sec. 12.151. REGISTERED LOBBYIST. A person required to 24-24 register as a lobbyist under Chapter 305, Government Code, because 24-25 of the person's activities for compensation on behalf of a 25-1 profession related to the operation of the commission may not serve 25-2 as a commissioner or act as general counsel to the commission. 25-3 (V.A.C.S. Art. 1446c-0, Sec. 1.023(d) (part).) 25-4 Sec. 12.152. CONFLICT OF INTEREST. (a) A person is not 25-5 eligible for appointment as a commissioner or for employment as the 25-6 general counsel or executive director of the commission if: 25-7 (1) the person serves on the board of directors of a 25-8 company that supplies fuel, utility-related services, or 25-9 utility-related products to regulated or unregulated electric or 25-10 telecommunications utilities; or 25-11 (2) the person or the person's spouse: 25-12 (A) is employed by or participates in the 25-13 management of a business entity or other organization that is 25-14 regulated by or receives funds from the commission; 25-15 (B) directly or indirectly owns or controls more 25-16 than a 10 percent interest or a pecuniary interest with a value 25-17 exceeding $10,000 in: 25-18 (i) a business entity or other 25-19 organization that is regulated by or receives funds from the 25-20 commission; or 25-21 (ii) a utility competitor, utility 25-22 supplier, or other entity affected by a commission decision in a 25-23 manner other than by the setting of rates for that class of 25-24 customer; 25-25 (C) uses or receives a substantial amount of 26-1 tangible goods, services, or funds from the commission, other than 26-2 compensation or reimbursement authorized by law for commission 26-3 membership, attendance, or expenses; or 26-4 (D) notwithstanding Paragraph (B), has an 26-5 interest in a mutual fund or retirement fund in which more than 10 26-6 percent of the fund's holdings at the time of appointment is in a 26-7 single utility, utility competitor, or utility supplier in this 26-8 state and the person does not disclose this information to the 26-9 governor, senate, commission, or other entity, as appropriate. 26-10 (b) A person otherwise ineligible because of Subsection 26-11 (a)(2)(B) may be appointed to the commission and serve as a 26-12 commissioner or may be employed as the general counsel or executive 26-13 director if the person: 26-14 (1) notifies the attorney general and commission that 26-15 the person is ineligible because of Subsection (a)(2)(B); and 26-16 (2) divests the person or the person's spouse of the 26-17 ownership or control: 26-18 (A) before beginning service or employment; or 26-19 (B) if the person is already serving or 26-20 employed, within a reasonable time. (V.A.C.S. Art. 1446c-0, Secs. 26-21 1.023(e), (f).) 26-22 Sec. 12.153. RELATIONSHIP WITH TRADE ASSOCIATION. A person 26-23 may not serve as a commissioner or be a commission employee who is 26-24 exempt from the state's position classification plan or is 26-25 compensated at or above the amount prescribed by the General 27-1 Appropriations Act for step 1, salary group 17, of the position 27-2 classification salary schedule if the person is: 27-3 (1) an officer, employee, or paid consultant of a 27-4 trade association; or 27-5 (2) the spouse of an officer, manager, or paid 27-6 consultant of a trade association. (V.A.C.S. Art. 1446c-0, Secs. 27-7 1.023(g), (h).) 27-8 Sec. 12.154. PROHIBITED ACTIVITIES. (a) During the period 27-9 of service with the commission, a commissioner or commission 27-10 employee may not: 27-11 (1) have a pecuniary interest, including an interest 27-12 as an officer, director, partner, owner, employee, attorney, or 27-13 consultant, in: 27-14 (A) a public utility or affiliate; or 27-15 (B) a person a significant portion of whose 27-16 business consists of furnishing goods or services to public 27-17 utilities or affiliates; 27-18 (2) directly or indirectly own or control securities 27-19 in a public utility, affiliate, or direct competitor of a public 27-20 utility; or 27-21 (3) accept a gift, gratuity, or entertainment from: 27-22 (A) a public utility, affiliate, or direct 27-23 competitor of a public utility; 27-24 (B) a person a significant portion of whose 27-25 business consists of furnishing goods or services to public 28-1 utilities, affiliates, or direct competitors of public utilities; 28-2 or 28-3 (C) an agent, representative, attorney, 28-4 employee, officer, owner, director, or partner of a person 28-5 described by Paragraph (A) or (B). 28-6 (b) A commissioner or a commission employee may not directly 28-7 or indirectly solicit, request from, or suggest or recommend to a 28-8 public utility or an agent, representative, attorney, employee, 28-9 officer, owner, director, or partner of a public utility the 28-10 appointment to a position or the employment of a person by the 28-11 public utility or affiliate. 28-12 (c) A person may not give or offer to give a gift, gratuity, 28-13 employment, or entertainment to a commissioner or commission 28-14 employee if that person is: 28-15 (1) a public utility, affiliate, or direct competitor 28-16 of a public utility; 28-17 (2) a person who furnishes goods or services to a 28-18 public utility, affiliate, or direct competitor of a public 28-19 utility; or 28-20 (3) an agent, representative, attorney, employee, 28-21 officer, owner, director, or partner of a person described by 28-22 Subdivision (1) or (2). 28-23 (d) A public utility, affiliate, or direct competitor of a 28-24 public utility or a person furnishing goods or services to a public 28-25 utility, affiliate, or direct competitor of a public utility may 29-1 not aid, abet, or participate with a commissioner, commission 29-2 employee, or former commission employee in conduct that violates 29-3 Subsection (a)(3) or (c). 29-4 (e) Subsection (a)(1) does not apply to an interest in a 29-5 nonprofit group or association, other than a trade association, 29-6 that is solely supported by gratuitous contributions of money, 29-7 property, or services. 29-8 (f) It is not a violation of this section if a commissioner 29-9 or commission employee, on becoming the owner of stocks, bonds, or 29-10 another pecuniary interest in a public utility, affiliate, or 29-11 direct competitor of a public utility otherwise than voluntarily, 29-12 informs the commission and the attorney general of the ownership 29-13 and divests the ownership or interest within a reasonable time. 29-14 (g) It is not a violation of this section if a pecuniary 29-15 interest is held indirectly by ownership of an interest in a 29-16 retirement system, institution, or fund that in the normal course 29-17 of business invests in diverse securities independently of the 29-18 control of the commissioner or commission employee. 29-19 (h) This section does not apply to a contract for a public 29-20 utility product or service or equipment for use of a public utility 29-21 product when a commissioner or commission employee is acting as a 29-22 consumer. 29-23 (i) In this section, a "pecuniary interest" includes income, 29-24 compensation, and payment of any kind, in addition to an ownership 29-25 interest. (V.A.C.S. Art. 1446c-0, Secs. 1.024(a) (part), (b), (c), 30-1 (d), (e).) 30-2 Sec. 12.155. PROHIBITION ON EMPLOYMENT OR REPRESENTATION. 30-3 (a) A commissioner, a commission employee, or an employee of the 30-4 State Office of Administrative Hearings involved in hearing utility 30-5 cases may not: 30-6 (1) be employed by a public utility that was in the 30-7 scope of the commissioner's or employee's official responsibility 30-8 while the commissioner or employee was associated with the 30-9 commission or the State Office of Administrative Hearings; or 30-10 (2) represent a person before the commission or State 30-11 Office of Administrative Hearings or a court in a matter: 30-12 (A) in which the commissioner or employee was 30-13 personally involved while associated with the commission or State 30-14 Office of Administrative Hearings; or 30-15 (B) that was within the commissioner's or 30-16 employee's official responsibility while the commissioner or 30-17 employee was associated with the commission or State Office of 30-18 Administrative Hearings. 30-19 (b) The prohibition of Subsection (a)(1) applies until the: 30-20 (1) second anniversary of the date the commissioner 30-21 ceases to serve as a commissioner; and 30-22 (2) first anniversary of the date the employee's 30-23 employment with the commission or State Office of Administrative 30-24 Hearings ceases. 30-25 (c) The prohibition of Subsection (a)(2) applies while a 31-1 commissioner, commission employee, or employee of the State Office 31-2 of Administrative Hearings involved in hearing utility cases is 31-3 associated with the commission or State Office of Administrative 31-4 Hearings and at any time after. (V.A.C.S. Art. 1446c-0, Secs. 31-5 1.025(a), (b).) 31-6 Sec. 12.156. QUALIFICATIONS AND STANDARDS OF CONDUCT 31-7 INFORMATION. The executive director or the executive director's 31-8 designee shall provide to commissioners and commission employees as 31-9 often as necessary information regarding their: 31-10 (1) qualifications for office or employment under this 31-11 title; and 31-12 (2) responsibilities under applicable laws relating to 31-13 standards of conduct for state officers and employees. (V.A.C.S. 31-14 Art. 1446c-0, Sec. 1.025(c).) 31-15 (Sections 12.157-12.200 reserved for expansion) 31-16 SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND REPORTS 31-17 Sec. 12.201. PUBLIC INTEREST INFORMATION. (a) The 31-18 commission shall prepare information of public interest describing 31-19 the functions of the commission and the commission's procedures by 31-20 which a complaint is filed with and resolved by the commission. 31-21 The commission shall make the information available to the public 31-22 and appropriate state agencies. 31-23 (b) The commission by rule shall establish methods by which 31-24 consumers and service recipients are notified of the name, mailing 31-25 address, and telephone number of the commission for the purpose of 32-1 directing complaints to the commission. (V.A.C.S. Art. 1446c-0, 32-2 Secs. 1.036(a), (b).) 32-3 Sec. 12.202. PUBLIC PARTICIPATION. (a) The commission 32-4 shall develop and implement policies that provide the public with a 32-5 reasonable opportunity to appear before the commission and to speak 32-6 on any issue under the jurisdiction of the commission. 32-7 (b) The commission shall comply with federal and state laws 32-8 related to program and facility accessibility. 32-9 (c) The commission shall prepare and maintain a written plan 32-10 that describes how a person who does not speak English may be 32-11 provided reasonable access to the commission's programs and 32-12 services. (V.A.C.S. Art. 1446c-0, Secs. 1.031(b), 1.036(c).) 32-13 Sec. 12.203. ANNUAL REPORT. (a) The commission shall 32-14 prepare annually a complete and detailed written report accounting 32-15 for all funds received and disbursed by the commission during the 32-16 preceding fiscal year. The annual report must meet the reporting 32-17 requirements applicable to financial reporting in the General 32-18 Appropriations Act. 32-19 (b) In the annual report issued in the year preceding the 32-20 convening of each regular session of the legislature, the 32-21 commission shall make suggestions regarding modification and 32-22 improvement of the commission's statutory authority and for the 32-23 improvement of utility regulation in general that the commission 32-24 considers appropriate for protecting and furthering the interest of 32-25 the public. (V.A.C.S. Art. 1446c-0, Sec. 1.035.) 33-1 (Sections 12.204-12.250 reserved for expansion) 33-2 SUBCHAPTER F. HISTORICALLY UNDERUTILIZED BUSINESSES 33-3 Sec. 12.251. DEFINITION. In this subchapter, "historically 33-4 underutilized business" has the meaning assigned by Section 33-5 481.101, Government Code. (V.A.C.S. Art. 1446c-0, Sec. 1.407(c).) 33-6 Sec. 12.252. COMMISSION AUTHORITY. The commission, after 33-7 notice and hearing, may require each utility subject to regulation 33-8 under this title to make an effort to overcome the underuse of 33-9 historically underutilized businesses. (V.A.C.S. Art. 1446c-0, 33-10 Sec. 1.407(a).) 33-11 Sec. 12.253. REPORT REQUIRED. The commission shall require 33-12 each utility subject to regulation under this title to prepare and 33-13 submit to the commission a comprehensive annual report detailing 33-14 its use of historically underutilized businesses. (V.A.C.S. 33-15 Art. 1446c-0, Sec. 1.407(b).) 33-16 Sec. 12.254. DISCRIMINATION PROHIBITED. The rules adopted 33-17 under this subchapter may not be used to discriminate against a 33-18 citizen on the basis of sex, race, color, creed, or national 33-19 origin. (V.A.C.S. Art. 1446c-0, Sec. 1.407(d).) 33-20 Sec. 12.255. CAUSE OF ACTION NOT CREATED. This subchapter 33-21 does not create a public or private cause of action. (V.A.C.S. 33-22 Art. 1446c-0, Sec. 1.407(e).) 33-23 CHAPTER 13. OFFICE OF PUBLIC UTILITY COUNSEL 33-24 SUBCHAPTER A. GENERAL PROVISIONS; POWERS AND DUTIES 33-25 Sec. 13.001. OFFICE OF PUBLIC UTILITY COUNSEL 34-1 Sec. 13.002. APPLICATION OF SUNSET ACT 34-2 Sec. 13.003. OFFICE POWERS AND DUTIES 34-3 (Sections 13.004-13.020 reserved for expansion) 34-4 SUBCHAPTER B. PUBLIC UTILITY COUNSEL 34-5 Sec. 13.021. APPOINTMENT; TERM 34-6 Sec. 13.022. QUALIFICATIONS 34-7 Sec. 13.023. GROUNDS FOR REMOVAL 34-8 Sec. 13.024. PROHIBITED ACTS 34-9 (Sections 13.025-13.040 reserved for expansion) 34-10 SUBCHAPTER C. OFFICE PERSONNEL 34-11 Sec. 13.041. PERSONNEL 34-12 Sec. 13.042. RELATIONSHIP WITH TRADE ASSOCIATION 34-13 Sec. 13.043. PROHIBITION ON EMPLOYMENT OR REPRESENTATION 34-14 Sec. 13.044. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS; 34-15 MERIT PAY 34-16 Sec. 13.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT 34-17 Sec. 13.046. QUALIFICATIONS AND STANDARDS OF CONDUCT 34-18 INFORMATION 34-19 (Sections 13.047-13.060 reserved for expansion) 34-20 SUBCHAPTER D. PUBLIC INTEREST INFORMATION AND REPORTS 34-21 Sec. 13.061. PUBLIC INTEREST INFORMATION 34-22 Sec. 13.062. PUBLIC PARTICIPATION 34-23 Sec. 13.063. ANNUAL REPORT 35-1 CHAPTER 13. OFFICE OF PUBLIC UTILITY COUNSEL 35-2 SUBCHAPTER A. GENERAL PROVISIONS; POWERS AND DUTIES 35-3 Sec. 13.001. OFFICE OF PUBLIC UTILITY COUNSEL. The 35-4 independent office of public utility counsel represents the 35-5 interests of residential and small commercial consumers. (V.A.C.S. 35-6 Art. 1446c-0, Sec. 1.051(a).) 35-7 Sec. 13.002. APPLICATION OF SUNSET ACT. The Office of 35-8 Public Utility Counsel is subject to Chapter 325, Government Code 35-9 (Texas Sunset Act). Unless continued in existence as provided by 35-10 that chapter, the office is abolished and this chapter expires 35-11 September 1, 2001. (V.A.C.S. Art. 1446c-0, Sec. 1.022 (part).) 35-12 Sec. 13.003. OFFICE POWERS AND DUTIES. (a) The office: 35-13 (1) shall assess the effect of utility rate changes 35-14 and other regulatory actions on residential consumers in this 35-15 state; 35-16 (2) shall advocate in the office's own name a position 35-17 determined by the counsellor to be most advantageous to a 35-18 substantial number of residential consumers; 35-19 (3) may appear or intervene, as a party or otherwise, 35-20 as a matter of right on behalf of: 35-21 (A) residential consumers, as a class, in any 35-22 proceeding before the commission; and 35-23 (B) small commercial consumers, as a class, in 35-24 any proceeding in which the counsellor determines that small 35-25 commercial consumers are in need of representation; 36-1 (4) may initiate or intervene as a matter of right or 36-2 otherwise appear in a judicial proceeding that involves an action 36-3 taken by an administrative agency in a proceeding in which the 36-4 counsellor is authorized to appear; 36-5 (5) is entitled to the same access as a party, other 36-6 than commission staff, to records gathered by the commission under 36-7 Section 14.204; 36-8 (6) is entitled to discovery of any nonprivileged 36-9 matter that is relevant to the subject matter of a proceeding or 36-10 petition before the commission; 36-11 (7) may represent an individual residential or small 36-12 commercial consumer with respect to the consumer's disputed 36-13 complaint concerning utility services that is unresolved before the 36-14 commission; and 36-15 (8) may recommend legislation to the legislature that 36-16 the office determines would positively affect the interests of 36-17 residential and small commercial consumers. 36-18 (b) This section does not limit the authority of the 36-19 commission to represent residential or small commercial consumers. 36-20 (c) The appearance of the counsellor in a proceeding does 36-21 not preclude the appearance of other parties on behalf of 36-22 residential or small commercial consumers. The counsellor may not 36-23 be grouped with any other party. (V.A.C.S. Art. 1446c-0, Sec. 36-24 1.054.) 36-25 (Sections 13.004-13.020 reserved for expansion) 37-1 SUBCHAPTER B. PUBLIC UTILITY COUNSEL 37-2 Sec. 13.021. APPOINTMENT; TERM. (a) The chief executive of 37-3 the office is the counsellor. 37-4 (b) The counsellor is appointed by the governor with the 37-5 advice and consent of the senate. 37-6 (c) The appointment of the counsellor shall be made without 37-7 regard to the race, color, disability, sex, religion, age, or 37-8 national origin of the appointee. 37-9 (d) The counsellor serves a two-year term that expires on 37-10 February 1 of the final year of the term. (V.A.C.S. Art. 1446c-0, 37-11 Sec. 1.051(b).) 37-12 Sec. 13.022. QUALIFICATIONS. (a) The counsellor must: 37-13 (1) be licensed to practice law in this state; 37-14 (2) have demonstrated a strong commitment to and 37-15 involvement in efforts to safeguard the rights of the public; and 37-16 (3) possess the knowledge and experience necessary to 37-17 practice effectively in utility proceedings. 37-18 (b) A person is not eligible for appointment as counsellor 37-19 if: 37-20 (1) the person or the person's spouse: 37-21 (A) is employed by or participates in the 37-22 management of a business entity or other organization that is 37-23 regulated by or receives funds from the commission; 37-24 (B) directly or indirectly owns or controls more 37-25 than a 10 percent interest or a pecuniary interest with a value 38-1 exceeding $10,000 in: 38-2 (i) a business entity or other 38-3 organization that is regulated by or receives funds from the 38-4 commission or the office; or 38-5 (ii) a utility competitor, utility 38-6 supplier, or other entity affected by a commission decision in a 38-7 manner other than by the setting of rates for that class of 38-8 customer; 38-9 (C) uses or receives a substantial amount of 38-10 tangible goods, services, or funds from the commission or the 38-11 office, other than compensation or reimbursement authorized by law 38-12 for service as counsellor or for commission membership, attendance, 38-13 or expenses; or 38-14 (D) notwithstanding Paragraph (B), has an 38-15 interest in a mutual fund or retirement fund in which more than 10 38-16 percent of the fund's holdings is in a single utility, utility 38-17 competitor, or utility supplier in this state and the person does 38-18 not disclose this information to the governor, senate, or other 38-19 entity, as appropriate; or 38-20 (2) the person is not qualified to serve under Section 38-21 13.042. 38-22 (c) A person required to register as a lobbyist under 38-23 Chapter 305, Government Code, because of the person's activities 38-24 for compensation on behalf of a profession related to the operation 38-25 of the commission or the office may not serve as counsellor. 39-1 (d) A person otherwise ineligible because of Subsection 39-2 (b)(1)(B) may be appointed and serve as counsellor if the person: 39-3 (1) notifies the attorney general and commission that 39-4 the person is ineligible because of Subsection (b)(1)(B); and 39-5 (2) divests the person or the person's spouse of the 39-6 ownership or control: 39-7 (A) before beginning service; or 39-8 (B) if the person is already serving, within a 39-9 reasonable time. (V.A.C.S. Art. 1446c-0, Secs. 1.023(d) (part), 39-10 1.051(c), (d), (e), (g).) 39-11 Sec. 13.023. GROUNDS FOR REMOVAL. (a) It is a ground for 39-12 removal from office if the counsellor: 39-13 (1) does not have at the time of appointment or 39-14 maintain during service as counsellor the qualifications required 39-15 by Section 13.022; 39-16 (2) violates a prohibition provided by Section 13.022, 39-17 13.042, or 13.043; or 39-18 (3) cannot discharge the counsellor's duties for a 39-19 substantial part of the term for which the counsellor is appointed 39-20 because of illness or disability. 39-21 (b) The validity of an action of the office is not affected 39-22 by the fact that the action is taken when a ground for removal of 39-23 the counsellor exists. (V.A.C.S. Art. 1446c-0, Sec. 1.0511.) 39-24 Sec. 13.024. PROHIBITED ACTS. (a) The counsellor may not: 39-25 (1) have a direct or indirect interest in a utility 40-1 company regulated under this title; or 40-2 (2) provide legal services directly or indirectly to 40-3 or be employed in any capacity by a utility company regulated under 40-4 this title, its parent, or its subsidiary companies, corporations, 40-5 or cooperatives or a utility competitor, utility supplier, or other 40-6 entity affected in a manner other than by the setting of rates for 40-7 that class of customer. 40-8 (b) The prohibition under Subsection (a) applies during the 40-9 period of the counsellor's service and until the second anniversary 40-10 of the date the counsellor ceases to serve as counsellor. 40-11 (c) This section does not prohibit a person from otherwise 40-12 engaging in the private practice of law after the person ceases to 40-13 serve as counsellor. (V.A.C.S. Art. 1446c-0, Sec. 1.052.) 40-14 (Sections 13.025-13.040 reserved for expansion) 40-15 SUBCHAPTER C. OFFICE PERSONNEL 40-16 Sec. 13.041. PERSONNEL. (a) The counsellor may employ 40-17 lawyers, economists, engineers, consultants, statisticians, 40-18 accountants, clerical staff, and other employees as the counsellor 40-19 considers necessary to carry out this chapter. 40-20 (b) An employee receives compensation as prescribed by the 40-21 legislature from the assessment imposed by Subchapter A, Chapter 40-22 16. (V.A.C.S. Art. 1446c-0, Sec. 1.053(a).) 40-23 Sec. 13.042. RELATIONSHIP WITH TRADE ASSOCIATION. A person 40-24 may not serve as counsellor or be an employee of the office who is 40-25 exempt from the state's position classification plan or is 41-1 compensated at or above the amount prescribed by the General 41-2 Appropriations Act for step 1, salary group 17, of the position 41-3 classification salary schedule if the person is: 41-4 (1) an officer, employee, or paid consultant of a 41-5 trade association; or 41-6 (2) the spouse of an officer, manager, or paid 41-7 consultant of a trade association. (V.A.C.S. Art. 1446c-0, Sec. 41-8 1.051(f).) 41-9 Sec. 13.043. PROHIBITION ON EMPLOYMENT OR REPRESENTATION. 41-10 (a) The counsellor or an employee of the office may not: 41-11 (1) be employed by a public utility that was in the 41-12 scope of the counsellor's or employee's official responsibility 41-13 while the counsellor or employee was associated with the office; or 41-14 (2) represent a person before the commission or a 41-15 court in a matter: 41-16 (A) in which the counsellor or employee was 41-17 personally involved while associated with the office; or 41-18 (B) that was within the counsellor's or 41-19 employee's official responsibility while the counsellor or employee 41-20 was associated with the office. 41-21 (b) The prohibition of Subsection (a)(1) applies until the: 41-22 (1) second anniversary of the date the counsellor 41-23 ceases to serve as a counsellor; and 41-24 (2) first anniversary of the date the employee's 41-25 employment with the office ceases. 42-1 (c) The prohibition of Subsection (a)(2) applies while a 42-2 counsellor or employee of the office is associated with the office 42-3 and at any time after. (V.A.C.S. Art. 1446c-0, Sec. 1.0512.) 42-4 Sec. 13.044. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS; 42-5 MERIT PAY. (a) The counsellor or the counsellor's designee shall 42-6 develop an intra-agency career ladder program that addresses 42-7 opportunities for mobility and advancement for office employees. 42-8 The program shall require intra-agency postings of each position 42-9 concurrently with any public posting. 42-10 (b) The counsellor or the counsellor's designee shall 42-11 develop a system of annual performance evaluations that are based 42-12 on documented employee performance. Merit pay for office employees 42-13 must be based on the system established under this subsection. 42-14 (V.A.C.S. Art. 1446c-0, Sec. 1.053(b).) 42-15 Sec. 13.045. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT. 42-16 (a) The counsellor or the counsellor's designee shall prepare and 42-17 maintain a written policy statement to ensure implementation of a 42-18 program of equal employment opportunity under which all personnel 42-19 transactions are made without regard to race, color, disability, 42-20 sex, religion, age, or national origin. 42-21 (b) The policy statement under Subsection (a) must include: 42-22 (1) personnel policies, including policies related to 42-23 recruitment, evaluation, selection, appointment, training, and 42-24 promotion of personnel, that are in compliance with the 42-25 requirements of Chapter 21, Labor Code; 43-1 (2) a comprehensive analysis of the office workforce 43-2 that meets federal and state guidelines; 43-3 (3) procedures by which a determination can be made 43-4 about the extent of underuse in the office workforce of all persons 43-5 for whom federal or state guidelines encourage a more equitable 43-6 balance; and 43-7 (4) reasonable methods to appropriately address the 43-8 underuse. 43-9 (c) A policy statement prepared under Subsection (b) must: 43-10 (1) cover an annual period; 43-11 (2) be updated at least annually; 43-12 (3) be reviewed by the Commission on Human Rights for 43-13 compliance with Subsection (b)(1); and 43-14 (4) be filed with the governor's office. 43-15 (d) The governor's office shall deliver a biennial report to 43-16 the legislature based on the information received under Subsection 43-17 (c). The report may be made separately or as a part of other 43-18 biennial reports to the legislature. (V.A.C.S. Art. 1446c-0, Secs. 43-19 1.053(c), (d).) 43-20 Sec. 13.046. QUALIFICATIONS AND STANDARDS OF CONDUCT 43-21 INFORMATION. The office shall provide to office employees as often 43-22 as necessary information regarding their: 43-23 (1) qualifications for employment under this title; 43-24 and 43-25 (2) responsibilities under applicable laws relating to 44-1 standards of conduct for employees. (V.A.C.S. Art. 1446c-0, Sec. 44-2 1.053(e).) 44-3 (Sections 13.047-13.060 reserved for expansion) 44-4 SUBCHAPTER D. PUBLIC INTEREST INFORMATION AND REPORTS 44-5 Sec. 13.061. PUBLIC INTEREST INFORMATION. The office shall 44-6 prepare information of public interest describing the functions of 44-7 the office. The office shall make the information available to the 44-8 public and appropriate state agencies. (V.A.C.S. Art. 1446c-0, 44-9 Sec. 1.0513(b).) 44-10 Sec. 13.062. PUBLIC PARTICIPATION. (a) The office shall 44-11 comply with federal and state laws related to program and facility 44-12 accessibility. 44-13 (b) The office shall prepare and maintain a written plan 44-14 that describes how a person who does not speak English may be 44-15 provided reasonable access to the office's programs and services. 44-16 (V.A.C.S. Art. 1446c-0, Sec. 1.0513(c).) 44-17 Sec. 13.063. ANNUAL REPORT. The office shall prepare 44-18 annually a complete and detailed written report accounting for all 44-19 funds received and disbursed by the office during the preceding 44-20 fiscal year. The annual report must meet the reporting 44-21 requirements applicable to financial reporting in the General 44-22 Appropriations Act. (V.A.C.S. Art. 1446c-0, Sec. 1.0513(a).) 45-1 CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND 45-2 OTHER REGULATORY AUTHORITIES 45-3 SUBCHAPTER A. GENERAL POWERS OF COMMISSION 45-4 Sec. 14.001. POWER TO REGULATE AND SUPERVISE 45-5 Sec. 14.002. RULES 45-6 Sec. 14.003. COMMISSION POWERS RELATING TO REPORTS 45-7 Sec. 14.004. REPORT OF SUBSTANTIAL INTEREST 45-8 Sec. 14.005. CRITERIA AND GUIDELINES GOVERNING TERMINATION 45-9 OF SERVICES TO ELDERLY AND DISABLED 45-10 Sec. 14.006. INTERFERENCE WITH TERMS OR CONDITIONS OF 45-11 EMPLOYMENT; PRESUMPTION OF REASONABLENESS 45-12 Sec. 14.007. ASSISTANCE TO MUNICIPALITY 45-13 Sec. 14.008. MUNICIPAL FRANCHISES 45-14 (Sections 14.009-14.050 reserved for expansion) 45-15 SUBCHAPTER B. PRACTICE AND PROCEDURE 45-16 Sec. 14.051. PROCEDURAL POWERS 45-17 Sec. 14.052. RULES 45-18 Sec. 14.053. POWERS AND DUTIES OF STATE OFFICE OF 45-19 ADMINISTRATIVE HEARINGS 45-20 Sec. 14.054. SETTLEMENTS 45-21 Sec. 14.055. RECORD OF PROCEEDINGS 45-22 Sec. 14.056. RIGHT TO BE HEARD 45-23 Sec. 14.057. ORDERS OF COMMISSION; TRANSCRIPTS AND EXHIBITS; 45-24 PUBLIC RECORDS 45-25 (Sections 14.058-14.100 reserved for expansion) 46-1 SUBCHAPTER C. RESTRICTIONS ON CERTAIN TRANSACTIONS 46-2 Sec. 14.101. REPORT OF CERTAIN TRANSACTIONS; COMMISSION 46-3 CONSIDERATION 46-4 Sec. 14.102. REPORT OF PURCHASE OF VOTING STOCK IN PUBLIC 46-5 UTILITY 46-6 Sec. 14.103. REPORT OF LOAN TO STOCKHOLDERS 46-7 (Sections 14.104-14.150 reserved for expansion) 46-8 SUBCHAPTER D. RECORDS 46-9 Sec. 14.151. RECORDS OF PUBLIC UTILITY 46-10 Sec. 14.152. MAINTENANCE OF OFFICE AND RECORDS IN THIS STATE 46-11 Sec. 14.153. COMMUNICATIONS WITH REGULATORY AUTHORITY 46-12 Sec. 14.154. JURISDICTION OVER AFFILIATE 46-13 (Sections 14.155-14.200 reserved for expansion) 46-14 SUBCHAPTER E. AUDITS AND INSPECTIONS 46-15 Sec. 14.201. INQUIRY INTO MANAGEMENT AND AFFAIRS 46-16 Sec. 14.202. MANAGEMENT AUDITS BY COMMISSION 46-17 Sec. 14.203. AUDIT OF ACCOUNTS 46-18 Sec. 14.204. INSPECTION 46-19 Sec. 14.205. EXAMINATIONS UNDER OATH 46-20 Sec. 14.206. ENTERING PREMISES OF PUBLIC UTILITY 46-21 Sec. 14.207. PRODUCTION OF OUT-OF-STATE RECORDS 46-22 CHAPTER 14. JURISDICTION AND POWERS OF COMMISSION AND 46-23 OTHER REGULATORY AUTHORITIES 46-24 SUBCHAPTER A. GENERAL POWERS OF COMMISSION 46-25 Sec. 14.001. POWER TO REGULATE AND SUPERVISE. The 47-1 commission has the general power to regulate and supervise the 47-2 business of each public utility within its jurisdiction and to do 47-3 anything specifically designated or implied by this title that is 47-4 necessary and convenient to the exercise of that power and 47-5 jurisdiction. (V.A.C.S. Art. 1446c-0, Sec. 1.101(a).) 47-6 Sec. 14.002. RULES. The commission shall adopt and enforce 47-7 rules reasonably required in the exercise of its powers and 47-8 jurisdiction. (V.A.C.S. Art. 1446c-0, Sec. 1.101(b) (part).) 47-9 Sec. 14.003. COMMISSION POWERS RELATING TO REPORTS. The 47-10 commission may: 47-11 (1) require a public utility to report to the 47-12 commission information relating to: 47-13 (A) the utility; and 47-14 (B) a transaction between the utility and an 47-15 affiliate inside or outside this state, to the extent that the 47-16 transaction is subject to the commission's jurisdiction; 47-17 (2) establish the form for a report; 47-18 (3) determine the time for a report and the frequency 47-19 with which the report is to be made; 47-20 (4) require that a report be made under oath; 47-21 (5) require the filing with the commission of a copy 47-22 of: 47-23 (A) a contract or arrangement between a public 47-24 utility and an affiliate; 47-25 (B) a report filed with a federal agency or a 48-1 governmental agency or body of another state; and 48-2 (C) an annual report that shows each payment of 48-3 compensation, other than salary or wages subject to federal income 48-4 tax withholding: 48-5 (i) to residents of this state; 48-6 (ii) with respect to legal, 48-7 administrative, or legislative matters in this state; or 48-8 (iii) for representation before the 48-9 legislature of this state or any governmental agency or body; and 48-10 (6) require that a contract or arrangement described 48-11 by Subdivision (5)(A) that is not in writing be reduced to writing 48-12 and filed with the commission. (V.A.C.S. Art. 1446c-0, Sec. 48-13 1.202(a).) 48-14 Sec. 14.004. REPORT OF SUBSTANTIAL INTEREST. The commission 48-15 may require disclosure of the identity and respective interests of 48-16 each owner of at least one percent of the voting securities of a 48-17 public utility or its affiliate. (V.A.C.S. Art. 1446c-0, Sec. 48-18 1.272.) 48-19 Sec. 14.005. CRITERIA AND GUIDELINES GOVERNING TERMINATION 48-20 OF SERVICES TO ELDERLY AND DISABLED. The commission may establish 48-21 criteria and guidelines with the utility industry relating to 48-22 industry procedures used in terminating services to the elderly and 48-23 disabled. (V.A.C.S. Art. 1446c-0, Sec. 1.405.) 48-24 Sec. 14.006. INTERFERENCE WITH TERMS OR CONDITIONS OF 48-25 EMPLOYMENT; PRESUMPTION OF REASONABLENESS. The commission may not 49-1 interfere with employee wages and benefits, working conditions, or 49-2 other terms or conditions of employment that are the product of a 49-3 collective bargaining agreement recognized under federal law. An 49-4 employee wage rate or benefit that is the product of the collective 49-5 bargaining is presumed to be reasonable. (V.A.C.S. Art. 1446c-0, 49-6 Sec. 1.206.) 49-7 Sec. 14.007. ASSISTANCE TO MUNICIPALITY. On request by the 49-8 governing body of a municipality, the commission may provide 49-9 commission employees as necessary to advise and consult with the 49-10 municipality on a pending matter. (V.A.C.S. Art. 1446c-0, Sec. 49-11 1.202(b).) 49-12 Sec. 14.008. MUNICIPAL FRANCHISES. (a) This title does not 49-13 restrict the rights and powers of a municipality to grant or refuse 49-14 a franchise to use the streets and alleys in the municipality or to 49-15 make a statutory charge for that use. 49-16 (b) A franchise agreement may not limit or interfere with a 49-17 power conferred on the commission by this title. (V.A.C.S. 49-18 Art. 1446c-0, Sec. 1.103.) 49-19 (Sections 14.009-14.050 reserved for expansion) 49-20 SUBCHAPTER B. PRACTICE AND PROCEDURE 49-21 Sec. 14.051. PROCEDURAL POWERS. The commission may: 49-22 (1) call and hold a hearing; 49-23 (2) administer an oath; 49-24 (3) receive evidence at a hearing; 49-25 (4) issue a subpoena to compel the attendance of a 50-1 witness or the production of a document; and 50-2 (5) make findings of fact and decisions to administer 50-3 this title or a rule, order, or other action of the commission. 50-4 (V.A.C.S. Art. 1446c-0, Sec. 1.101(d).) 50-5 Sec. 14.052. RULES. (a) The commission shall adopt and 50-6 enforce rules governing practice and procedure before the 50-7 commission and, as applicable, practice and procedure before the 50-8 utility division of the State Office of Administrative Hearings. 50-9 (b) The commission shall adopt rules that authorize an 50-10 administrative law judge to: 50-11 (1) limit the amount of time that a party may have to 50-12 present its case; 50-13 (2) limit the number of requests for information that 50-14 a party may make in a contested case; 50-15 (3) require a party to a contested case to identify 50-16 contested issues and facts before the hearing begins; 50-17 (4) limit cross-examination to only those issues and 50-18 facts identified before the hearing and to any new issues that may 50-19 arise as a result of the discovery process; and 50-20 (5) group parties, other than the office, that have 50-21 the same position on an issue to facilitate cross-examination on 50-22 that issue. 50-23 (c) A rule adopted under Subsection (b)(5) must permit each 50-24 party in a group to present that party's witnesses for 50-25 cross-examination during the hearing. 51-1 (d) A rule adopted under this section must ensure that each 51-2 party receives due process. (V.A.C.S. Art. 1446c-0, Secs. 1.101(b) 51-3 (part), (c).) 51-4 Sec. 14.053. POWERS AND DUTIES OF STATE OFFICE OF 51-5 ADMINISTRATIVE HEARINGS. (a) The utility division of the State 51-6 Office of Administrative Hearings shall conduct each hearing in a 51-7 contested case that is not conducted by one or more commissioners. 51-8 (b) The commission may delegate to the utility division of 51-9 the State Office of Administrative Hearings the authority to make a 51-10 final decision and to issue findings of fact, conclusions of law, 51-11 and other necessary orders in a proceeding in which there is not a 51-12 contested issue of fact or law. 51-13 (c) The commission by rule shall define the procedures by 51-14 which it delegates final decision-making authority under Subsection 51-15 (b). 51-16 (d) For review purposes an administrative law judge's final 51-17 decision under Subsection (b) has the same effect as a final 51-18 decision of the commission unless a commissioner requests formal 51-19 review of the decision. (V.A.C.S. Art. 1446c-0, Sec. 1.101(e).) 51-20 Sec. 14.054. SETTLEMENTS. (a) The commission by rule shall 51-21 adopt procedures governing the use of settlements to resolve 51-22 contested cases. 51-23 (b) Rules adopted under this section must ensure that: 51-24 (1) each party retains the right to: 51-25 (A) a full hearing before the commission on 52-1 issues that remain in dispute; and 52-2 (B) judicial review of issues that remain in 52-3 dispute; 52-4 (2) an issue of fact raised by a nonsettling party may 52-5 not be waived by a settlement or stipulation of the other parties; 52-6 and 52-7 (3) a nonsettling party may use an issue of fact 52-8 raised by that party as the basis for judicial review. (V.A.C.S. 52-9 Art. 1446c-0, Sec. 1.104.) 52-10 Sec. 14.055. RECORD OF PROCEEDINGS. The regulatory 52-11 authority shall keep a record of each proceeding before the 52-12 authority. (V.A.C.S. Art. 1446c-0, Sec. 1.402 (part).) 52-13 Sec. 14.056. RIGHT TO BE HEARD. Each party to a proceeding 52-14 before a regulatory authority is entitled to be heard by attorney 52-15 or in person. (V.A.C.S. Art. 1446c-0, Sec. 1.402 (part).) 52-16 Sec. 14.057. ORDERS OF COMMISSION; TRANSCRIPTS AND EXHIBITS; 52-17 PUBLIC RECORDS. (a) A commission order must be in writing and 52-18 contain detailed findings of the facts on which it is passed. 52-19 (b) The commission shall retain a copy of the transcript and 52-20 the exhibits in any matter in which the commission issues an order. 52-21 (c) Subject to Chapter 552, Government Code, each file 52-22 pertaining to a matter that was at any time pending before the 52-23 commission or to a record, report, or inspection required by 52-24 Section 14.003, 14.151, 14.152, 14.153, 14.201, or 14.203-14.207 or 52-25 by Subtitle B or C is public information. (V.A.C.S. Art. 1446c-0, 53-1 Sec. 1.034.) 53-2 (Sections 14.058-14.100 reserved for expansion) 53-3 SUBCHAPTER C. RESTRICTIONS ON CERTAIN TRANSACTIONS 53-4 Sec. 14.101. REPORT OF CERTAIN TRANSACTIONS; COMMISSION 53-5 CONSIDERATION. (a) Unless a public utility reports the 53-6 transaction to the commission within a reasonable time, the public 53-7 utility may not: 53-8 (1) sell, acquire, or lease a plant as an operating 53-9 unit or system in this state for a total consideration of more than 53-10 $100,000; or 53-11 (2) merge or consolidate with another public utility 53-12 operating in this state. 53-13 (b) A public utility shall report to the commission within a 53-14 reasonable time each transaction that involves the sale of at least 53-15 50 percent of the stock of the utility. On the filing of a report 53-16 with the commission, the commission shall investigate the 53-17 transaction, with or without a public hearing, to determine whether 53-18 the action is consistent with the public interest. In reaching its 53-19 determination, the commission shall consider: 53-20 (1) the reasonable value of the property, facilities, 53-21 or securities to be acquired, disposed of, merged, transferred, or 53-22 consolidated; 53-23 (2) whether the transaction will: 53-24 (A) adversely affect the health or safety of 53-25 customers or employees; 54-1 (B) result in the transfer of jobs of citizens 54-2 of this state to workers domiciled outside this state; or 54-3 (C) result in the decline of service; 54-4 (3) whether the public utility will receive 54-5 consideration equal to the reasonable value of the assets when it 54-6 sells, leases, or transfers assets; and 54-7 (4) whether the transaction is consistent with the 54-8 public interest. 54-9 (c) If the commission finds that a transaction is not in the 54-10 public interest, the commission shall take the effect of the 54-11 transaction into consideration in ratemaking proceedings and 54-12 disallow the effect of the transaction if the transaction will 54-13 unreasonably affect rates or service. 54-14 (d) This section does not apply to: 54-15 (1) the purchase of a unit of property for 54-16 replacement; or 54-17 (2) an addition to the facilities of a public utility 54-18 by construction. (V.A.C.S. Art. 1446c-0, Sec. 1.251.) 54-19 Sec. 14.102. REPORT OF PURCHASE OF VOTING STOCK IN PUBLIC 54-20 UTILITY. A public utility may not purchase voting stock in another 54-21 public utility doing business in this state unless the utility 54-22 reports the purchase to the commission. (V.A.C.S. Art. 1446c-0, 54-23 Sec. 1.252.) 54-24 Sec. 14.103. REPORT OF LOAN TO STOCKHOLDERS. A public 54-25 utility may not loan money, stocks, bonds, notes, or other evidence 55-1 of indebtedness to a person who directly or indirectly owns or 55-2 holds any stock of the public utility unless the public utility 55-3 reports the transaction to the commission within a reasonable time. 55-4 (V.A.C.S. Art. 1446c-0, Sec. 1.253.) 55-5 (Sections 14.104-14.150 reserved for expansion) 55-6 SUBCHAPTER D. RECORDS 55-7 Sec. 14.151. RECORDS OF PUBLIC UTILITY. (a) Each public 55-8 utility shall keep and provide to the regulatory authority, in the 55-9 manner and form prescribed by the commission, uniform accounts of 55-10 all business transacted by the utility. 55-11 (b) The commission may prescribe the form of books, 55-12 accounts, records, and memoranda to be kept by a public utility, 55-13 including: 55-14 (1) the books, accounts, records, and memoranda of: 55-15 (A) the provision of and capacity for service; 55-16 and 55-17 (B) the receipt and expenditure of money; and 55-18 (2) any other form, record, and memorandum that the 55-19 commission considers necessary to carry out this title. 55-20 (c) For a public utility subject to regulation by a federal 55-21 regulatory agency, compliance with the system of accounts 55-22 prescribed for the particular class of utilities by the federal 55-23 agency may be considered sufficient compliance with the system 55-24 prescribed by the commission. The commission may prescribe the 55-25 form of books, accounts, records, and memoranda covering 56-1 information in addition to that required by the federal agency. 56-2 The system of accounts and the form of books, accounts, records, 56-3 and memoranda prescribed by the commission for a public utility or 56-4 class of utilities may not be inconsistent with the systems and 56-5 forms established by a federal agency for that public utility or 56-6 class of utilities. 56-7 (d) Each public utility shall: 56-8 (1) keep and provide its books, accounts, records, and 56-9 memoranda accurately in the manner and form prescribed by the 56-10 commission; and 56-11 (2) comply with the directions of the regulatory 56-12 authority relating to the books, accounts, records, and memoranda. 56-13 (e) In this section, "public utility" includes a municipally 56-14 owned utility. (V.A.C.S. Art. 1446c-0, Secs. 1.201(a), (b), (c), 56-15 (d) (part), (e).) 56-16 Sec. 14.152. MAINTENANCE OF OFFICE AND RECORDS IN THIS 56-17 STATE. (a) Each public utility shall maintain an office in this 56-18 state in a county in which some part of the utility's property is 56-19 located. The utility shall keep in this office all books, 56-20 accounts, records, and memoranda required by the commission to be 56-21 kept in this state. 56-22 (b) A book, account, record, or memorandum required by the 56-23 regulatory authority to be kept in this state may not be removed 56-24 from this state, except as: 56-25 (1) provided by Section 52.255; and 57-1 (2) prescribed by the commission. (V.A.C.S. 57-2 Art. 1446c-0, Sec. 1.204.) 57-3 Sec. 14.153. COMMUNICATIONS WITH REGULATORY AUTHORITY. 57-4 (a) The regulatory authority shall adopt rules governing 57-5 communications with the regulatory authority or a member or 57-6 employee of the regulatory authority by: 57-7 (1) a public utility; 57-8 (2) an affiliate; or 57-9 (3) a representative of a public utility or affiliate. 57-10 (b) A record of a communication must contain: 57-11 (1) the name of the person contacting the regulatory 57-12 authority or member or employee of the regulatory authority; 57-13 (2) the name of the business entity represented; 57-14 (3) a brief description of the subject matter of the 57-15 communication; and 57-16 (4) the action, if any, requested by the public 57-17 utility, affiliate, or representative. 57-18 (c) Records compiled under Subsection (b) shall be available 57-19 to the public monthly. (V.A.C.S. Art. 1446c-0, Sec. 1.205.) 57-20 Sec. 14.154. JURISDICTION OVER AFFILIATE. (a) The 57-21 commission has jurisdiction over an affiliate that has a 57-22 transaction with a public utility under the commission's 57-23 jurisdiction to the extent of access to a record of the affiliate 57-24 relating to the transaction, including a record of joint or general 57-25 expenses, any portion of which may be applicable to the 58-1 transaction. 58-2 (b) A record obtained by the commission relating to sale of 58-3 electrical energy at wholesale by an affiliate to the public 58-4 utility is confidential and is not subject to disclosure under 58-5 Chapter 552, Government Code. (V.A.C.S. Art. 1446c-0, Sec. 1.271.) 58-6 (Sections 14.155-14.200 reserved for expansion) 58-7 SUBCHAPTER E. AUDITS AND INSPECTIONS 58-8 Sec. 14.201. INQUIRY INTO MANAGEMENT AND AFFAIRS. A 58-9 regulatory authority may inquire into the management and affairs of 58-10 each public utility and shall keep itself informed as to the manner 58-11 and method in which each public utility is managed and its affairs 58-12 are conducted. (V.A.C.S. Art. 1446c-0, Sec. 1.203(c).) 58-13 Sec. 14.202. MANAGEMENT AUDITS BY COMMISSION. (a) The 58-14 commission shall: 58-15 (1) inquire into the management of the business of 58-16 each public utility under its jurisdiction; 58-17 (2) keep itself informed as to the manner and method 58-18 in which the utility's business is managed; and 58-19 (3) obtain from the public utility any information 58-20 necessary to enable the commission to perform a management audit. 58-21 (b) The commission may audit a utility under its 58-22 jurisdiction as frequently as needed. Six months after an audit, 58-23 the utility shall report to the commission on the status of the 58-24 implementation of the recommendations of the audit and shall file 58-25 subsequent reports at times the commission considers appropriate. 59-1 (V.A.C.S. Art. 1446c-0, Sec. 1.102.) 59-2 Sec. 14.203. AUDIT OF ACCOUNTS. A regulatory authority may 59-3 require the examination and audit of the accounts of a public or 59-4 municipally owned utility. (V.A.C.S. Art. 1446c-0, Secs. 1.201(d) 59-5 (part), (e).) 59-6 Sec. 14.204. INSPECTION. (a) A regulatory authority and, 59-7 to the extent authorized by the regulatory authority, its counsel, 59-8 agent, or employee, may: 59-9 (1) inspect and obtain copies of the papers, books, 59-10 accounts, documents, and other business records of a public utility 59-11 within its jurisdiction; and 59-12 (2) inspect the plant, equipment, and other property 59-13 of a public utility within its jurisdiction. 59-14 (b) An action under this section must be conducted at a 59-15 reasonable time for a reasonable purpose. (V.A.C.S. Art. 1446c-0, 59-16 Sec. 1.203(a) (part).) 59-17 Sec. 14.205. EXAMINATIONS UNDER OATH. In connection with an 59-18 action taken under Section 14.204, the regulatory authority may: 59-19 (1) examine under oath an officer, agent, or employee 59-20 of a public utility; or 59-21 (2) authorize the person conducting the action to make 59-22 the examination under oath. (V.A.C.S. Art. 1446c-0, Sec. 1.203(a) 59-23 (part).) 59-24 Sec. 14.206. ENTERING PREMISES OF PUBLIC UTILITY. (a) A 59-25 member, agent, or employee of a regulatory authority may enter the 60-1 premises occupied by a public utility to conduct an inspection, 60-2 examination, or test or to exercise any other authority provided by 60-3 this title. 60-4 (b) A member, agent, or employee of the regulatory authority 60-5 may act under this section only during reasonable hours and after 60-6 reasonable notice to the public utility. 60-7 (c) A public utility is entitled to be represented when an 60-8 inspection, examination, or test is conducted on its premises. The 60-9 utility is entitled to a reasonable time to secure a representative 60-10 before the inspection, examination, or test begins. (V.A.C.S. 60-11 Art. 1446c-0, Secs. 1.203(b), 2.156(a) (part).) 60-12 Sec. 14.207. PRODUCTION OF OUT-OF-STATE RECORDS. (a) A 60-13 regulatory authority may require, by order or subpoena served on a 60-14 public utility, the production, at the time and place in this state 60-15 that the regulatory authority designates, of any books, accounts, 60-16 papers, or records kept by that public utility outside this state 60-17 or, if ordered by the commission, verified copies of the books, 60-18 accounts, papers, or records. 60-19 (b) A public utility that fails or refuses to comply with an 60-20 order or subpoena under this section violates this title. 60-21 (V.A.C.S. Art. 1446c-0, Sec. 1.203(a) (part).) 60-22 CHAPTER 15. JUDICIAL REVIEW, ENFORCEMENT, AND PENALTIES 60-23 SUBCHAPTER A. JUDICIAL REVIEW 60-24 Sec. 15.001. RIGHT TO JUDICIAL REVIEW 60-25 Sec. 15.002. COMMISSION AS DEFENDANT 61-1 Sec. 15.003. COSTS AND ATTORNEY'S FEES 61-2 Sec. 15.004. JUDICIAL STAY OR SUSPENSION 61-3 (Sections 15.005-15.020 reserved for expansion) 61-4 SUBCHAPTER B. ENFORCEMENT AND PENALTIES 61-5 Sec. 15.021. ACTION TO ENJOIN OR REQUIRE COMPLIANCE 61-6 Sec. 15.022. CONTEMPT 61-7 Sec. 15.023. ADMINISTRATIVE PENALTY 61-8 Sec. 15.024. ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE 61-9 Sec. 15.025. PAYMENT OF ADMINISTRATIVE PENALTY 61-10 Sec. 15.026. JUDICIAL REVIEW OF ADMINISTRATIVE PENALTY 61-11 Sec. 15.027. ADMINISTRATIVE PENALTY COLLECTION; GENERAL 61-12 PROVISIONS 61-13 Sec. 15.028. CIVIL PENALTY AGAINST PUBLIC UTILITY, PAY 61-14 TELEPHONE SERVICE PROVIDER, OR AFFILIATE 61-15 Sec. 15.029. CIVIL PENALTY FOR VIOLATING SECTION 12.055 61-16 OR 12.154 61-17 Sec. 15.030. OFFENSE 61-18 Sec. 15.031. PLACE FOR SUIT 61-19 Sec. 15.032. PENALTIES CUMULATIVE 61-20 Sec. 15.033. DISPOSITION OF FINES AND PENALTIES 61-21 (Sections 15.034-15.050 reserved for expansion) 61-22 SUBCHAPTER C. COMPLAINTS 61-23 Sec. 15.051. COMPLAINT BY AFFECTED PERSON 61-24 Sec. 15.052. COMPLAINT REGARDING RECREATIONAL VEHICLE 61-25 PARK OWNER 62-1 CHAPTER 15. JUDICIAL REVIEW, ENFORCEMENT, AND PENALTIES 62-2 SUBCHAPTER A. JUDICIAL REVIEW 62-3 Sec. 15.001. RIGHT TO JUDICIAL REVIEW. Any party to a 62-4 proceeding before the commission is entitled to judicial review 62-5 under the substantial evidence rule. (V.A.C.S. Art. 1446c-0, Sec. 62-6 1.301 (part).) 62-7 Sec. 15.002. COMMISSION AS DEFENDANT. The commission must 62-8 be a defendant in a proceeding for judicial review. (V.A.C.S. 62-9 Art. 1446c-0, Sec. 1.301 (part).) 62-10 Sec. 15.003. COSTS AND ATTORNEY'S FEES. (a) A party 62-11 represented by counsel who alleges that existing rates are 62-12 excessive or that rates prescribed by the commission are excessive 62-13 and who prevails in a proceeding for review of a commission order 62-14 or decision is entitled in the same action to recover against the 62-15 regulation fund reasonable fees for attorneys and expert witnesses 62-16 and other costs for the party's efforts before the commission and 62-17 the court. 62-18 (b) The court shall set the amount of attorney's fees 62-19 awarded under Subsection (a). 62-20 (c) If a court finds that an action under Section 15.001 or 62-21 this section was groundless and brought in bad faith and for the 62-22 purpose of harassment, the court may award reasonable attorney's 62-23 fees to the defendant public utility. (V.A.C.S. Art. 1446c-0, Sec. 62-24 1.302.) 62-25 Sec. 15.004. JUDICIAL STAY OR SUSPENSION. While an appeal 63-1 of an order, ruling, or decision of a regulatory authority is 63-2 pending, the district court, court of appeals, or supreme court, as 63-3 appropriate, may stay or suspend all or part of the operation of 63-4 the order, ruling, or decision. In granting or refusing a stay or 63-5 suspension, the court shall act in accordance with the practice of 63-6 a court exercising equity jurisdiction. (V.A.C.S. Art. 1446c-0, 63-7 Sec. 1.403.) 63-8 (Sections 15.005-15.020 reserved for expansion) 63-9 SUBCHAPTER B. ENFORCEMENT AND PENALTIES 63-10 Sec. 15.021. ACTION TO ENJOIN OR REQUIRE COMPLIANCE. 63-11 (a) The attorney general, on the request of the commission, shall 63-12 apply in the name of the commission for a court order under 63-13 Subsection (b) if the commission determines that a public utility 63-14 or other person is: 63-15 (1) engaging in or about to engage in an act that 63-16 violates this title or an order or rule of the commission entered 63-17 or adopted under this title; or 63-18 (2) failing to comply with the requirements of this 63-19 title or a rule or order of the commission. 63-20 (b) A court, in an action under this section, may: 63-21 (1) prohibit the commencement or continuation of an 63-22 act that violates this title or an order or rule of the commission 63-23 entered or adopted under this title; or 63-24 (2) require compliance with a provision of this title 63-25 or an order or rule of the commission. 64-1 (c) The remedy under this section is in addition to any 64-2 other remedy provided under this title. (V.A.C.S. Art. 1446c-0, 64-3 Sec. 1.321.) 64-4 Sec. 15.022. CONTEMPT. The commission may file a court 64-5 action for contempt against a person who: 64-6 (1) fails to comply with a lawful order of the 64-7 commission; 64-8 (2) fails to comply with a subpoena or subpoena duces 64-9 tecum; or 64-10 (3) refuses to testify about a matter on which the 64-11 person may be lawfully interrogated. (V.A.C.S. Art. 1446c-0, Sec. 64-12 1.326.) 64-13 Sec. 15.023. ADMINISTRATIVE PENALTY. (a) The commission 64-14 may impose an administrative penalty against a person regulated 64-15 under this title who violates this title or a rule or order adopted 64-16 under this title. 64-17 (b) The penalty for a violation may be in an amount not to 64-18 exceed $5,000. Each day a violation continues or occurs is a 64-19 separate violation for purposes of imposing a penalty. 64-20 (c) The amount of an administrative penalty shall be based 64-21 on: 64-22 (1) the seriousness of the violation, including: 64-23 (A) the nature, circumstances, extent, and 64-24 gravity of a prohibited act; and 64-25 (B) the hazard or potential hazard created to 65-1 the health, safety, or economic welfare of the public; 65-2 (2) the economic harm to property or the environment 65-3 caused by the violation; 65-4 (3) the history of previous violations; 65-5 (4) the amount necessary to deter future violations; 65-6 (5) efforts to correct the violation; and 65-7 (6) any other matter that justice may require. 65-8 (V.A.C.S. Art. 1446c-0, Secs. 1.3215(a), (b), (c).) 65-9 Sec. 15.024. ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE. 65-10 (a) If the executive director determines that a violation has 65-11 occurred, the executive director may issue to the commission a 65-12 report that states the facts on which the determination is based 65-13 and the executive director's recommendation on the imposition of an 65-14 administrative penalty, including a recommendation on the amount of 65-15 the penalty. 65-16 (b) Not later than the 14th day after the date the report is 65-17 issued, the executive director shall give written notice of the 65-18 report to the person against whom the penalty may be assessed. The 65-19 notice may be given by certified mail. The notice must: 65-20 (1) include a brief summary of the alleged violation; 65-21 (2) state the amount of the recommended penalty; and 65-22 (3) inform the person that the person has a right to a 65-23 hearing on the occurrence of the violation, the amount of the 65-24 penalty, or both the occurrence of the violation and the amount of 65-25 the penalty. 66-1 (c) A penalty may not be assessed under this section if the 66-2 person against whom the penalty may be assessed remedies the 66-3 violation before the 31st day after the date the person receives 66-4 the notice under Subsection (b). A person who claims to have 66-5 remedied an alleged violation has the burden of proving to the 66-6 commission that the alleged violation was remedied and was 66-7 accidental or inadvertent. 66-8 (d) Not later than the 20th day after the date the person 66-9 receives the notice, the person may accept the determination and 66-10 recommended penalty of the executive director in writing or may 66-11 make a written request for a hearing on the occurrence of the 66-12 violation, the amount of the penalty, or both the occurrence of the 66-13 violation and the amount of the penalty. 66-14 (e) If the person accepts the executive director's 66-15 determination and recommended penalty, the commission by order 66-16 shall approve the determination and impose the recommended penalty. 66-17 (f) If the person requests a hearing or fails to timely 66-18 respond to the notice, the executive director shall set a hearing 66-19 and give notice of the hearing to the person. The hearing shall be 66-20 held by an administrative law judge of the State Office of 66-21 Administrative Hearings. The administrative law judge shall make 66-22 findings of fact and conclusions of law and promptly issue to the 66-23 commission a proposal for a decision about the occurrence of the 66-24 violation and the amount of a proposed penalty. Based on the 66-25 findings of fact, conclusions of law, and proposal for a decision, 67-1 the commission by order may find that a violation has occurred and 67-2 impose a penalty or may find that no violation occurred. 67-3 (g) The notice of the commission's order shall be given to 67-4 the person as provided by Chapter 2001, Government Code, and must 67-5 include a statement of the right of the person to judicial review 67-6 of the order. (V.A.C.S. Art. 1446c-0, Secs. 1.3215(d), (e), (f), 67-7 (g), (h), (i).) 67-8 Sec. 15.025. PAYMENT OF ADMINISTRATIVE PENALTY. (a) Not 67-9 later than the 30th day after the date the commission's order 67-10 imposing an administrative penalty is final as provided by Section 67-11 2001.144, Government Code, the person shall: 67-12 (1) pay the amount of the penalty; 67-13 (2) pay the amount of the penalty and file a petition 67-14 for judicial review contesting: 67-15 (A) the occurrence of the violation; 67-16 (B) the amount of the penalty; or 67-17 (C) both the occurrence of the violation and the 67-18 amount of the penalty; or 67-19 (3) without paying the amount of the penalty, file a 67-20 petition for judicial review contesting: 67-21 (A) the occurrence of the violation; 67-22 (B) the amount of the penalty; or 67-23 (C) both the occurrence of the violation and the 67-24 amount of the penalty. 67-25 (b) Not later than the 30th day after the date the 68-1 commission's order is final as provided by Section 2001.144, 68-2 Government Code, a person who acts under Subsection (a)(3) may: 68-3 (1) stay enforcement of the penalty by: 68-4 (A) paying the amount of the penalty to the 68-5 court for placement in an escrow account; or 68-6 (B) giving to the court a supersedeas bond that 68-7 is approved by the court for the amount of the penalty and that is 68-8 effective until all judicial review of the commission's order is 68-9 final; or 68-10 (2) request the court to stay enforcement of the 68-11 penalty by: 68-12 (A) filing with the court a sworn affidavit of 68-13 the person stating that the person is financially unable to pay the 68-14 amount of the penalty and is financially unable to give the 68-15 supersedeas bond; and 68-16 (B) giving a copy of the affidavit to the 68-17 executive director by certified mail. 68-18 (c) The executive director, on receipt of a copy of an 68-19 affidavit under Subsection (b)(2), may file with the court, not 68-20 later than the fifth day after the date the copy is received, a 68-21 contest to the affidavit. The court shall hold a hearing on the 68-22 facts alleged in the affidavit as soon as practicable and shall 68-23 stay the enforcement of the penalty on finding that the alleged 68-24 facts are true. The person who files an affidavit has the burden 68-25 of proving that the person is financially unable to pay the amount 69-1 of the penalty and to give a supersedeas bond. 69-2 (d) If the person does not pay the amount of the penalty and 69-3 the enforcement of the penalty is not stayed, the executive 69-4 director may refer the matter to the attorney general for 69-5 collection of the amount of the penalty. (V.A.C.S. Art. 1446c-0, 69-6 Secs. 1.3215(j), (k), (l), (m).) 69-7 Sec. 15.026. JUDICIAL REVIEW OF ADMINISTRATIVE PENALTY. 69-8 (a) Judicial review of a commission order imposing an 69-9 administrative penalty is: 69-10 (1) instituted by filing a petition as provided by 69-11 Subchapter G, Chapter 2001, Government Code; and 69-12 (2) under the substantial evidence rule. 69-13 (b) If the court sustains the occurrence of the violation, 69-14 the court may uphold or reduce the amount of the penalty and order 69-15 the person to pay the full or reduced amount of the penalty. If 69-16 the court does not sustain the occurrence of the violation, the 69-17 court shall order that no penalty is owed. 69-18 (c) When the judgment of the court becomes final, the court 69-19 shall proceed under this subsection. If the person paid the amount 69-20 of the penalty and that amount is reduced or is not upheld by the 69-21 court, the court shall order that the appropriate amount plus 69-22 accrued interest be remitted to the person. The rate of the 69-23 interest is the rate charged on loans to depository institutions by 69-24 the New York Federal Reserve Bank, and the interest shall be paid 69-25 for the period beginning on the date the penalty was paid and 70-1 ending on the date the penalty is remitted. If the person gave a 70-2 supersedeas bond and the amount of the penalty is not upheld by the 70-3 court, the court shall order the release of the bond. If the 70-4 person gave a supersedeas bond and the amount of the penalty is 70-5 reduced, the court shall order the release of the bond after the 70-6 person pays the amount. (V.A.C.S. Art. 1446c-0, Secs. 1.3215(n), 70-7 (o), (p).) 70-8 Sec. 15.027. ADMINISTRATIVE PENALTY COLLECTION; GENERAL 70-9 PROVISIONS. (a) An administrative penalty collected under this 70-10 subchapter shall be sent to the comptroller. 70-11 (b) A proceeding relating to an administrative penalty under 70-12 this subchapter is subject to Chapter 2001, Government Code. 70-13 (c) The executive director may delegate any power or duty 70-14 relating to an administrative penalty given the executive director 70-15 by this subchapter to a person designated by the executive 70-16 director. (V.A.C.S. Art. 1446c-0, Secs. 1.3215(q), (r), (s).) 70-17 Sec. 15.028. CIVIL PENALTY AGAINST PUBLIC UTILITY, PAY 70-18 TELEPHONE SERVICE PROVIDER, OR AFFILIATE. (a) A public utility, 70-19 customer-owned pay telephone service provider under Section 55.178, 70-20 or affiliate is subject to a civil penalty if the utility, 70-21 provider, or affiliate knowingly violates this title, fails to 70-22 perform a duty imposed on it, or fails or refuses to obey an order, 70-23 rule, direction, or requirement of the commission or a decree or 70-24 judgment of a court. 70-25 (b) A civil penalty under this section shall be in an amount 71-1 of not less than $1,000 and not more than $5,000 for each 71-2 violation. 71-3 (c) A public utility or affiliate commits a separate 71-4 violation each day it continues to violate Subsection (a). 71-5 (d) The attorney general shall file in the name of the 71-6 commission a suit on the attorney general's own initiative or at 71-7 the request of the commission to recover the civil penalty under 71-8 this section. (V.A.C.S. Art. 1446c-0, Sec. 1.322.) 71-9 Sec. 15.029. CIVIL PENALTY FOR VIOLATING SECTION 12.055 OR 71-10 12.154. (a) A member of the commission or an officer or director 71-11 of a public utility or affiliate who knowingly violates Section 71-12 12.055 or 12.154 is subject to a civil penalty of $1,000 for each 71-13 violation. 71-14 (b) A person other than a person subject to Subsection (a) 71-15 who knowingly violates Section 12.154 is subject to a civil penalty 71-16 of $500 for each violation. 71-17 (c) A member, officer, or employee of the commission who in 71-18 any action is found by a preponderance of the evidence to have 71-19 violated a provision of Section 12.055 or 12.154 shall be removed 71-20 from the person's office or employment. 71-21 (d) A civil penalty under this section is recoverable in a 71-22 suit filed in the name of the commission by the attorney general on 71-23 the attorney general's own initiative or at the request of the 71-24 commission. (V.A.C.S. Art. 1446c-0, Sec. 1.323.) 71-25 Sec. 15.030. OFFENSE. (a) A person commits an offense if 72-1 the person wilfully and knowingly violates this title. 72-2 (b) This section does not apply to an offense described by 72-3 Section 55.138. 72-4 (c) An offense under this section is a felony of the third 72-5 degree. (V.A.C.S. Art. 1446c-0, Sec. 1.325(a).) 72-6 Sec. 15.031. PLACE FOR SUIT. A suit for an injunction or a 72-7 penalty under this title may be brought in: 72-8 (1) Travis County; 72-9 (2) a county in which the violation is alleged to have 72-10 occurred; or 72-11 (3) a county in which a defendant resides. (V.A.C.S. 72-12 Art. 1446c-0, Sec. 1.328.) 72-13 Sec. 15.032. PENALTIES CUMULATIVE. (a) A penalty that 72-14 accrues under this title is cumulative of any other penalty. 72-15 (b) A suit for the recovery of a penalty does not bar or 72-16 affect the recovery of any other penalty or bar a criminal 72-17 prosecution against any person. (V.A.C.S. Art. 1446c-0, Sec. 72-18 1.325(b).) 72-19 Sec. 15.033. DISPOSITION OF FINES AND PENALTIES. A fine or 72-20 penalty collected under this title, other than a fine or penalty 72-21 collected in a criminal proceeding or a penalty collected under 72-22 Section 15.027(a), shall be paid to the commission. (V.A.C.S. 72-23 Art. 1446c-0, Sec. 1.327.) 72-24 (Sections 15.034-15.050 reserved for expansion) 73-1 SUBCHAPTER C. COMPLAINTS 73-2 Sec. 15.051. COMPLAINT BY AFFECTED PERSON. (a) An affected 73-3 person may complain to the regulatory authority in writing setting 73-4 forth an act or omission by a public utility in violation or 73-5 claimed violation of a law that the regulatory authority has 73-6 jurisdiction to administer or of an order, ordinance, or rule of 73-7 the regulatory authority. 73-8 (b) The commission shall keep for a reasonable period 73-9 information about each complaint filed with the commission. The 73-10 information shall include: 73-11 (1) the date the complaint is received; 73-12 (2) the name of the complainant; 73-13 (3) the subject matter of the complaint; 73-14 (4) a record of each person contacted in relation to 73-15 the complaint; 73-16 (5) a summary of the results of the review or 73-17 investigation of the complaint; and 73-18 (6) if the commission took no action on the complaint, 73-19 an explanation of the reason the complaint was closed without 73-20 action. 73-21 (c) The commission shall keep a file about each written 73-22 complaint filed with the commission that the commission has 73-23 authority to resolve. The commission shall provide to the person 73-24 filing the complaint and to each person or entity complained about 73-25 information concerning the commission's policies and procedures on 74-1 complaint investigation and resolution. The commission, at least 74-2 quarterly and until final disposition of the complaint, shall 74-3 notify the person filing the complaint and each person or entity 74-4 complained about of the status of the complaint unless the notice 74-5 would jeopardize an undercover investigation. (V.A.C.S. 74-6 Art. 1446c-0, Secs. 1.401(a), (b).) 74-7 Sec. 15.052. COMPLAINT REGARDING RECREATIONAL VEHICLE PARK 74-8 OWNER. (a) An affected person may complain to the regulatory 74-9 authority in writing setting forth an act or omission by a 74-10 recreational vehicle park owner who provides metered electric 74-11 service under Subchapter C, Chapter 184, in violation or claimed 74-12 violation of a law that the regulatory authority has jurisdiction 74-13 to administer or of an order, ordinance, or rule of the regulatory 74-14 authority. 74-15 (b) The commission shall keep for a reasonable period an 74-16 information file about each complaint filed with the commission 74-17 relating to a recreational vehicle park owner. 74-18 (c) The commission, at least quarterly and until final 74-19 disposition of the written complaint, shall notify the parties to 74-20 the complaint of the status of the complaint unless the notice 74-21 would jeopardize an undercover investigation. (V.A.C.S. 74-22 Art. 1446c-0, Sec. 1.401(c).) 74-23 CHAPTER 16. COMMISSION FINANCING 74-24 SUBCHAPTER A. ASSESSMENT ON PUBLIC UTILITIES 74-25 Sec. 16.001. ASSESSMENT ON PUBLIC UTILITIES 75-1 Sec. 16.002. PAYMENT DATES 75-2 Sec. 16.003. LATE PAYMENT PENALTY 75-3 Sec. 16.0031. CERTAIN PAYMENTS BASED ON ESTIMATED GROSS 75-4 RECEIPTS 75-5 Sec. 16.004. COLLECTION BY COMPTROLLER 75-6 (Sections 16.005-16.020 reserved for expansion) 75-7 SUBCHAPTER B. GRANTS AND OTHER FINANCIAL ASSISTANCE 75-8 Sec. 16.021. GRANTS OF FEDERAL FUNDS 75-9 (Sections 16.022-16.040 reserved for expansion) 75-10 SUBCHAPTER C. MONEY DISPOSITION, ACCOUNTING, AND BUDGET 75-11 Sec. 16.041. APPLICATION OF STATE FUNDS REFORM ACT 75-12 Sec. 16.042. ACCOUNTING RECORDS 75-13 Sec. 16.043. AUDIT 75-14 Sec. 16.044. APPROVAL OF BUDGET 75-15 CHAPTER 16. COMMISSION FINANCING 75-16 SUBCHAPTER A. ASSESSMENT ON PUBLIC UTILITIES 75-17 Sec. 16.001. ASSESSMENT ON PUBLIC UTILITIES. (a) To defray 75-18 the expenses incurred in the administration of this title, an 75-19 assessment is imposed on each public utility within the 75-20 jurisdiction of the commission that serves the ultimate consumer, 75-21 including each interexchange telecommunications carrier. 75-22 (b) An assessment under this section is equal to one-sixth 75-23 of one percent of the public utility's gross receipts from rates 75-24 charged to the ultimate consumer in this state. 75-25 (c) An interexchange telecommunications carrier that does 76-1 not provide local exchange telephone service may collect the fee 76-2 imposed under this section as an additional item separately stated 76-3 on the customer bill as "utility gross receipts assessment." 76-4 (V.A.C.S. Art. 1446c-0, Secs. 1.351(a), (c).) 76-5 Sec. 16.002. PAYMENT DATES. (a) The assessment is due 76-6 August 15. 76-7 (b) A public utility may instead make quarterly payments due 76-8 August 15, November 15, February 15, and May 15. (V.A.C.S. 76-9 Art. 1446c-0, Sec. 1.352(a).) 76-10 Sec. 16.003. LATE PAYMENT PENALTY. (a) An additional fee 76-11 equal to 10 percent of the amount due shall be assessed for any 76-12 late payment of an assessment required under this subchapter. 76-13 (b) An assessment delinquent for more than 30 days accrues 76-14 interest at an annual rate of 12 percent on the amount of the 76-15 assessment and penalty due. (V.A.C.S. Art. 1446c-0, Sec. 76-16 1.352(b).) 76-17 Sec. 16.0031. CERTAIN PAYMENTS BASED ON ESTIMATED GROSS 76-18 RECEIPTS. (a) Notwithstanding Section 16.002, the assessments are 76-19 due as provided by this section and are computed on a public 76-20 utility's estimate of its gross receipts. 76-21 (b) For the assessment otherwise due August 15, 1995, 50 76-22 percent of the assessment shall be paid by August 15, 1994, and 50 76-23 percent shall be paid by February 15, 1995. 76-24 (c) For the assessment otherwise due August 15, 1996, 50 76-25 percent of the assessment shall be paid by August 15, 1995, and 50 77-1 percent shall be paid by February 15, 1996. 77-2 (d) For the assessment otherwise due August 15, 1997, 50 77-3 percent of the assessment shall be paid by August 15, 1996, and 50 77-4 percent shall be paid by February 15, 1997. 77-5 (e) For the assessment otherwise due August 15, 1998, 50 77-6 percent of the assessment shall be paid by August 15, 1997, and 50 77-7 percent shall be paid by August 15, 1998. 77-8 (f) An amount that is underpaid for an assessment due August 77-9 15, 1995, August 15, 1996, or August 15, 1997, shall be paid by 77-10 those respective dates. An assessment amount that is overpaid 77-11 shall be credited against a subsequent assessment. 77-12 (g) This section expires September 1, 1998. (V.A.C.S. 77-13 Art. 1446c-0, Sec. 1.353.) 77-14 Sec. 16.004. COLLECTION BY COMPTROLLER. The comptroller 77-15 shall collect the assessment and any penalty or interest due under 77-16 this subchapter. (V.A.C.S. Art. 1446c-0, Sec. 1.354(a).) 77-17