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A BILL TO BE ENTITLED
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AN ACT
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relating to the revocation of certain water utilities' certificate |
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of public convenience and necessity for major rules violations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 13, Water Code, is amended |
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by adding Section 13.2541 to read as follows: |
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Sec. 13.2541. APPOINTMENT OF TEMPORARY MANAGER. (a) |
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Utility commission staff shall file a petition to appoint a |
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temporary manager of an investor-owned water utility if the staff |
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has reason to believe: |
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(1) the utility has repeated or continuous violations |
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of commission rules or of the commission's predecessor agency rules |
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regarding well capacity, storage tank capacity, service pump |
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capacity, or pressure tank capacity for at least six years before |
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the petition is filed; |
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(2) neither an owner of the utility nor the utility has |
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borrowed money from a federally insured lending institution to |
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remedy a violation of a rule described by Subdivision (1); |
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(3) the utility serves more than 1,000 connections but |
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is made up of less than five public water systems; |
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(4) the utility does not serve customers who are |
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located in a municipality; and |
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(5) the utility is located in a county with a |
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population of more than 2.7 million. |
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(b) If, after notice and an opportunity for a hearing, the |
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utility commission finds that the facts alleged in the petition are |
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true, the utility commission may appoint a temporary manager and |
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may also refer the investor-owned utility to the attorney general |
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for the appointment of a receiver under Section 13.412. The utility |
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commission shall issue its final order not more than 180 days after |
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the date the petition is filed. |
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(c) If the utility commission appoints a temporary manager, |
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the manager shall have all the power and authority provided by |
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Section 13.4132(c). Not more than 120 days after the appointment of |
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the manager, the manager shall recommend to the utility commission |
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whether or not the utility's certificate should be revoked. If the |
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manager recommends revocation, the manager shall recommend one or |
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more retail public utilities that could provide service to the |
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certificated area. |
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(d) If a court appoints a receiver for the utility, the |
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temporary manager's appointment ends when the receiver executes the |
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bond required by Section 13.412. The temporary manager is eligible |
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to be appointed as the receiver. |
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(e) Not more than 90 days after the appointment of a |
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receiver by the court, the receiver shall recommend to the utility |
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commission whether or not the utility |
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's certificate of convenience |
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and necessity should be revoked. If the receiver recommends |
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revocation, the receiver shall recommend one or more retail public |
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utilities that could provide service to the certificated area. The |
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receiver may recommend any other remedy authorized by this chapter. |
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(f) If the receiver recommends revocation, the utility |
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commission staff shall file a petition to revoke the certificate of |
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convenience and necessity under Section 13.254. |
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SECTION 2. This Act takes effect September 1, 2017. |