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AN ACT
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relating to the functions of the Public Utility Commission of Texas |
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in relation to the economic regulation of water and sewer service. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 5.315, Water Code, is amended to read as |
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follows: |
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Sec. 5.315. DISCOVERY IN CASES USING PREFILED WRITTEN |
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TESTIMONY. In a contested case hearing delegated by the commission |
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to the State Office of Administrative Hearings that uses prefiled |
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written testimony, all discovery must be completed before the |
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deadline for the submission of that testimony[, except for water
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and sewer ratemaking proceedings]. |
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SECTION 2. Section 5.507, Water Code, is amended to read as |
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follows: |
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Sec. 5.507. EMERGENCY ORDER FOR OPERATION OF UTILITY THAT |
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DISCONTINUES OPERATION OR IS REFERRED FOR APPOINTMENT OF |
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RECEIVER. The commission [or the Public Utility Commission of
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Texas] may issue an emergency order appointing a willing person to |
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temporarily manage and operate a utility under Section |
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13.4132. Notice of the action is adequate if the notice is mailed |
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or hand delivered to the last known address of the utility's |
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headquarters. |
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SECTION 3. Section 13.041(d), Water Code, is amended to |
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read as follows: |
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(d) In accordance with Subchapter K-1, the [The] utility |
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commission may issue emergency orders, with or without a hearing: |
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(1) to compel a water or sewer service provider that |
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has obtained or is required to obtain a certificate of public |
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convenience and necessity to provide continuous and adequate water |
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service, sewer service, or both, if the discontinuance of the |
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service is imminent or has occurred because of the service |
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provider's actions or failure to act; and |
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(2) to compel a retail public utility to provide an |
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emergency interconnection with a neighboring retail public utility |
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for the provision of temporary water or sewer service, or both, for |
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not more than 90 days if service discontinuance or serious |
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impairment in service is imminent or has occurred. |
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SECTION 4. Section 13.043, Water Code, is amended by adding |
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Subsections (b-1), (b-2), and (b-3) to read as follows: |
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(b-1) A municipally owned utility shall: |
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(1) disclose to any person, on request, the number of |
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ratepayers who reside outside the corporate limits of the |
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municipality; and |
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(2) provide to any person, on request, a list of the |
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names and addresses of the ratepayers who reside outside the |
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corporate limits of the municipality. |
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(b-2) If a ratepayer has requested that a municipally owned |
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utility keep the ratepayer's personal information confidential |
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under Section 182.052, Utilities Code, the municipally owned |
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utility may not disclose the address of the ratepayer under |
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Subsection (b-1)(2). |
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(b-3) The municipally owned utility may not charge a fee for |
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disclosing the information under Subsection (b-1)(1). The |
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municipally owned utility may charge a reasonable fee for providing |
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information under Subsection (b-1)(2). The municipally owned |
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utility shall provide information requested under Subsection |
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(b-1)(1) by telephone or in writing as preferred by the person |
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making the request. |
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SECTION 5. Section 13.187(g-1), Water Code, is amended to |
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read as follows: |
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(g-1) If the regulatory authority is the utility |
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commission, the utility commission shall give reasonable notice of |
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the hearing, including notice to the governing body of each |
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affected municipality and county. The utility commission may |
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delegate to an administrative law judge of the State Office of |
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Administrative Hearings the responsibility and authority to give |
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reasonable notice of the hearing, including notice to the governing |
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body of each affected municipality and county. The utility is not |
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required to provide a formal answer or file any other formal |
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pleading in response to the notice, and the absence of an answer |
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does not affect an order for a hearing. |
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SECTION 6. Sections 13.1871(g), (h), (j), (m), and (p), |
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Water Code, are amended to read as follows: |
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(g) After written notice to the utility, the utility |
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commission may suspend the effective date of a rate change for not |
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more than 265 [205] days from the proposed effective date. If the |
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utility commission does not make a final determination on the |
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proposed rate before the expiration of the suspension period, the |
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proposed rate shall be considered approved. This approval is |
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subject to the authority of the utility commission thereafter to |
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continue a hearing in progress. |
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(h) The 265-day [205-day] period described by Subsection |
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(g) shall be extended by two days for each day a hearing exceeds 15 |
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days. |
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(j) If the regulatory authority receives at least the number |
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of complaints from ratepayers required for the regulatory authority |
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to set a hearing under Subsection (i), the regulatory authority |
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may, pending the hearing and a decision, suspend the date the rate |
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change would otherwise be effective. Except as provided by |
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Subsection (h), the proposed rate may not be suspended for longer |
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than: |
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(1) 90 days by a local regulatory authority; or |
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(2) 265 [205] days by the utility commission. |
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(m) The regulatory authority shall give reasonable notice |
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of the hearing, including notice to the governing body of each |
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affected municipality and county. The utility commission may |
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delegate to an administrative law judge of the State Office of |
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Administrative Hearings the responsibility and authority to give |
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reasonable notice for the hearing, including notice to the |
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governing body of each affected municipality and county. The |
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utility is not required to provide a formal answer or file any other |
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formal pleading in response to the notice, and the absence of an |
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answer does not affect an order for a hearing. |
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(p) A utility may put a changed rate into effect throughout |
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the area in which the utility sought to change its rates, including |
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an area over which the utility commission is exercising appellate |
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or original jurisdiction, by filing a bond with the utility |
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commission if the suspension period has been extended under |
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Subsection (h) and the utility commission fails to make a final |
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determination before the 266th [206th] day after the date the rate |
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change would otherwise be effective. |
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SECTION 7. Sections 13.301(a) and (h), Water Code, are |
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amended to read as follows: |
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(a) A utility or a water supply or sewer service |
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corporation, on or before the 120th day before the effective date of |
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a sale, acquisition, lease, or rental of a water or sewer system |
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owned by an entity that is required by law to possess a certificate |
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of public convenience and necessity or the effective date of a sale |
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or acquisition of or merger or consolidation with such an entity [a
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utility or water supply or sewer service corporation], shall: |
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(1) file a written application with the utility |
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commission; and |
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(2) unless public notice is waived by the utility |
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commission for good cause shown, give public notice of the action. |
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(h) A sale, acquisition, lease, or rental of any water or |
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sewer system owned by an entity required by law to possess a |
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certificate of public convenience and necessity, or a sale or |
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acquisition of or merger or consolidation with such an entity, that |
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is not completed in accordance with the provisions of this section |
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is void. |
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SECTION 8. Sections 13.4133(a) and (c), Water Code, are |
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amended to read as follows: |
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(a) Notwithstanding the requirements of Subchapter F, the |
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utility commission may authorize an emergency rate increase for a |
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utility for which a person has been appointed under Section 13.4132 |
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or for which a receiver has been appointed under Section 13.412 if |
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the increase is necessary to ensure the provision of continuous and |
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adequate services to the utility's customers. The commission and |
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utility commission shall coordinate as needed to carry out this |
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section. |
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(c) An emergency order may be issued under this section for |
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a term not to exceed 15 months. The utility commission shall |
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schedule a hearing to establish a final rate within 15 months after |
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the date on which an emergency rate increase takes effect. The |
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utility commission shall require the utility to provide notice of |
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the hearing to each customer. The additional revenues collected |
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under an emergency rate increase are subject to refund if the |
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utility commission finds that the rate increase was larger than |
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necessary to ensure continuous and adequate service. |
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SECTION 9. Chapter 13, Water Code, is amended by adding |
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Subchapter K-1 to read as follows: |
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SUBCHAPTER K-1. EMERGENCY ORDERS |
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Sec. 13.451. ISSUANCE OF EMERGENCY ORDER. (a) The utility |
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commission may issue an emergency order authorized under this |
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chapter after providing the notice and opportunity for a hearing |
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that the utility commission considers practicable under the |
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circumstances or without notice or opportunity for a hearing. If |
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the utility commission considers the provision of notice and |
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opportunity for a hearing practicable, the utility commission |
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shall provide the notice not later than the 10th day before the date |
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set for the hearing. |
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(b) The utility commission by order or rule may delegate to |
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the utility commission's executive director the authority to: |
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(1) receive applications and issue emergency orders |
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under this subchapter; and |
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(2) authorize, in writing, a representative or |
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representatives to act on the utility commission's executive |
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director's behalf under this subchapter. |
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(c) Chapter 2001, Government Code, does not apply to the |
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issuance of an emergency order under this subchapter without a |
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hearing. |
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(d) A law under which the utility commission acts that |
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requires notice of hearing or that prescribes procedures for the |
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issuance of emergency orders does not apply to a hearing on an |
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emergency order issued under this subchapter unless the law |
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specifically requires notice for an emergency order. The utility |
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commission shall give notice of the hearing as it determines is |
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practicable under the circumstances. |
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(e) An emergency order issued under this subchapter does not |
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vest any rights in a person affected by the order and the order |
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expires according to its terms. |
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(f) The utility commission may adopt rules necessary to |
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administer this subchapter. |
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Sec. 13.452. APPLICATION FOR EMERGENCY ORDER. A person |
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other than the utility commission or the staff of the utility |
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commission who desires the issuance of an emergency order under |
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this subchapter must submit a sworn written application to the |
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utility commission. The application must: |
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(1) describe the emergency condition or other |
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condition justifying the issuance of the order; |
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(2) allege facts to support the findings required |
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under this subchapter; |
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(3) estimate the dates on which the proposed order |
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should begin and end; |
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(4) describe the action sought and the activity |
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proposed to be allowed, mandated, or prohibited; and |
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(5) include any other statement, including who must |
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sign the application for the order, and any information required by |
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the utility commission. |
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Sec. 13.453. NOTICE OF ISSUANCE. Notice of the issuance of |
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an emergency order must be provided as required by utility |
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commission rule. |
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Sec. 13.454. HEARING TO AFFIRM, MODIFY, OR SET ASIDE ORDER. |
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(a) If the utility commission or the utility commission's |
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executive director issues an emergency order under this subchapter |
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without a hearing, a hearing must be held to affirm, modify, or set |
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aside the emergency order unless the person affected by the order |
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waives the right to a hearing. If the person does not waive the |
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right to a hearing, the utility commission or the utility |
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commission's executive director shall set a time and place for a |
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hearing to be held before the utility commission or the State Office |
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of Administrative Hearings, which must be as soon as practicable |
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after the order is issued. |
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(b) At a hearing required under Subsection (a), or within a |
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reasonable time after the hearing, the utility commission shall |
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affirm, modify, or set aside the emergency order. |
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(c) A hearing to affirm, modify, or set aside an emergency |
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order must be conducted in accordance with Chapter 2001, Government |
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Code, and utility commission rules. Utility commission rules |
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relating to a hearing to affirm, modify, or set aside an emergency |
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order must provide for presentation of evidence by the applicant, |
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if any, under oath, presentation of rebuttal evidence under oath, |
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and cross-examination of witnesses under oath. |
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Sec. 13.455. TERM OF ORDER. An emergency order issued under |
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this subchapter must be limited to a reasonable time as specified in |
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the order. Except as otherwise provided by this chapter, the term |
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of an emergency order may not exceed 180 days. An emergency order |
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may be renewed once for a period not to exceed 180 days. |
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SECTION 10. Section 5.508, Water Code, is repealed. |
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SECTION 11. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1148 passed the Senate on |
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April 30, 2015, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendment on May 26, 2015, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1148 passed the House, with |
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amendment, on May 19, 2015, by the following vote: Yeas 144, |
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Nays 2, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |