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  S.B. No. 1358
  relating to procedures for imposing certain administrative
  penalties or disgorgement orders by the Public Utility Commission
  of Texas.
         SECTION 1.  Section 15.024, Utilities Code, is amended by
  amending Subsections (b), (e), and (f) and adding Subsection (b-1)
  to read as follows:
         (b)  Not later than the 14th day after the date the report is
  issued, the executive director shall give written notice of the
  report to the person against whom the penalty may be assessed. The
  notice may be given by regular or certified mail. The notice must:
               (1)  include a brief summary of the alleged violation;
               (2)  state the amount of the recommended penalty; and
               (3)  inform the person that the person has a right to a
  hearing on the occurrence of the violation, the amount of the
  penalty, or both the occurrence of the violation and the amount of
  the penalty.
         (b-1)  If the commission sends written notice to a person by
  mail addressed to the person's mailing address as maintained in the
  commission's records, the person is deemed to have received notice:
               (1)  on the fifth day after the date that the commission
  sent the written notice, for notice sent by regular mail; or
               (2)  on the date the written notice is received or
  delivery is refused, for notice sent by certified mail.
         (e)  If the person accepts the executive director's
  determination and recommended penalty or fails to timely respond to
  the notice, the commission by order shall approve the determination
  and impose the recommended penalty or order a hearing on the
  determination and the recommended penalty.
         (f)  If the person requests a hearing or the commission
  orders a hearing under Subsection (e) [fails to timely respond to
  the notice], the commission [executive director] shall refer the
  matter to the State Office of Administrative Hearings for [set] a
  hearing and give notice of the referral [hearing] to the person.  
  The parties to a proceeding under this subchapter shall be limited
  to the person and the commission, including the independent market
  monitor.  The hearing shall be held by an administrative law judge
  of the State Office of Administrative Hearings and notice of the
  hearing must be provided in accordance with Chapter 2001,
  Government Code.  The administrative law judge shall make findings
  of fact and conclusions of law and promptly issue to the commission
  a proposal for a decision about the occurrence of the violation and
  the amount of a proposed penalty.  Based on the findings of fact,
  conclusions of law, and proposal for a decision, the commission by
  order may find that a violation has occurred and impose a penalty or
  disgorgement order or may find that no violation occurred.
         SECTION 2.  The changes in law made by this Act apply only to
  the procedures for an administrative penalty or disgorgement order
  for which a written notice is given under Section 15.024(b),
  Utilities Code, on or after the effective date of this Act.  Those
  procedures for a penalty or order for which a written notice is
  given before the effective date of this Act are governed by the law
  in effect on the date the notice is given, and the former law is
  continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2019.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 1358 passed the Senate on
  April 11, 2019, by the following vote:  Yeas 30, Nays 1.
  Secretary of the Senate    
         I hereby certify that S.B. No. 1358 passed the House on
  May 3, 2019, by the following vote:  Yeas 140, Nays 0, two present
  not voting.
  Chief Clerk of the House