Bill Text: TX SB1965 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to requirements for the purchase or acquisition of certain water and sewer systems.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2023-05-13 - Effective on 9/1/23 [SB1965 Detail]
Download: Texas-2023-SB1965-Enrolled.html
| S.B. No. 1965 | ||
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| relating to requirements for the purchase or acquisition of certain | ||
| water and sewer systems. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 13.301, Water Code, is amended by | ||
| amending Subsection (h) and adding Subsections (l), (m), and (n) to | ||
| read as follows: | ||
| (h) A sale, acquisition, lease, or rental of any water or | ||
| sewer system owned by an entity required by law to possess a | ||
| certificate of public convenience and necessity, or a sale or | ||
| acquisition of or merger or consolidation with such an entity, that | ||
| is not completed in accordance with the provisions of this section | ||
| is void. The utility commission shall approve a transaction to | ||
| which this section applies without an owner's signature required by | ||
| other law if the owner has abandoned operation of the facilities | ||
| that are the subject of the transaction and cannot be located or | ||
| does not respond to an application filed under Subsection (l). | ||
| (l) Notwithstanding any other provision of this section, | ||
| the utility commission by rule shall adopt an expedited process | ||
| that allows a person appointed by the utility commission or | ||
| commission under Section 13.4132 as a temporary manager of a | ||
| utility, utility in receivership, or utility in supervision, who is | ||
| also an operator of a Class A or Class B utility to apply for utility | ||
| commission approval of the person's acquisition of the stock, | ||
| ownership interest, or assets of the temporarily managed and | ||
| operated utility, utility in receivership, or utility in | ||
| supervision, its facilities, and, if applicable, its certificated | ||
| service area. The expedited process must: | ||
| (1) waive public notice requirements regardless of | ||
| whether the person elects to charge initial rates in accordance | ||
| with Section 13.3011 or use a voluntary valuation determined under | ||
| Section 13.305; | ||
| (2) require approval of the acquisition transaction if | ||
| the transaction is considered to be in the public interest; and | ||
| (3) provide that: | ||
| (A) the person's appointment is considered | ||
| sufficient to demonstrate adequate financial, managerial, and | ||
| technical capability for providing continuous and adequate service | ||
| to the service area to be acquired and any areas currently | ||
| certificated to the person; and | ||
| (B) all used and useful invested capital and just | ||
| and reasonable operations and maintenance costs incurred by the | ||
| person during the person's appointment as temporary manager and | ||
| operator of the utility, utility in receivership, or utility in | ||
| supervision to be acquired are considered to be a regulatory asset | ||
| for the person and are recoverable in the person's next | ||
| comprehensive rate proceeding or system improvement charge | ||
| application. | ||
| (m) If a temporary rate under Section 13.046 is adopted | ||
| during the period described by Subsection (l)(3)(B), all used and | ||
| useful invested capital and just and reasonable operations and | ||
| maintenance costs incurred by the person in excess of costs covered | ||
| by the temporary rate are considered to be a regulatory asset for | ||
| the person and are recoverable in the person's next comprehensive | ||
| rate proceeding or system improvement charge application. | ||
| (n) The utility commission and commission shall provide a | ||
| reasonable period for a person acquiring a utility under Subsection | ||
| (l) to bring the acquired utility into compliance with utility | ||
| commission and commission rules before imposing a penalty for any | ||
| violation committed by the acquired utility for which no | ||
| enforcement action has been completed at the time of acquisition. | ||
| SECTION 2. This Act takes effect September 1, 2023. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 1965 passed the Senate on | ||
| April 12, 2023, by the following vote: Yeas 31, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 1965 passed the House on April | ||
| 28, 2023, by the following vote: Yeas 136, Nays 8, two present not | ||
| voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
