Bill Text: TX HB1302 | 2011-2012 | 82nd Legislature | Introduced

---

Bill Title: Relating to the establishment of the Texas Energy and Communications Commission to consolidate the functions of the Public Utility Commission of Texas and the Railroad Commission of Texas.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2011-04-13 - No action taken in committee [HB1302 Detail]

Download: Texas-2011-HB1302-Introduced.html

---

82R2432 RWG-D
By: Larson H.B. No. 1302

A BILL TO BE ENTITLED
AN ACT
relating to the establishment of the Texas Energy and
Communications Commission to consolidate the functions of the
Public Utility Commission of Texas and the Railroad Commission of
Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. RAILROAD COMMISSION OF TEXAS REESTABLISHED AS TEXAS
ENERGY AND COMMUNICATIONS COMMISSION
SECTION 1.01. The heading to Chapter 81, Natural Resources
Code, is amended to read as follows:
CHAPTER 81. TEXAS ENERGY AND COMMUNICATIONS [RAILROAD] COMMISSION
[OF TEXAS]
SECTION 1.02. Section 81.001, Natural Resources Code, is
amended to read as follows:
Sec. 81.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Energy and
Communications [Railroad] Commission [of Texas].
(2) "Commissioner" means any member of the Texas
Energy and Communications [Railroad] Commission [of Texas].
SECTION 1.03. Subchapter A, Chapter 81, Natural Resources
Code, is amended by adding Section 81.003 to read as follows:
Sec. 81.003. TEXAS ENERGY AND COMMUNICATIONS COMMISSION.
(a) The Railroad Commission of Texas is reestablished as the Texas
Energy and Communications Commission.
(b) A reference in law to the Railroad Commission of Texas
means the Texas Energy and Communications Commission.
SECTION 1.04. (a) On January 1, 2012:
(1) the name of the Railroad Commission of Texas is
changed to the Texas Energy and Communications Commission, and all
powers, duties, rights, and obligations of the Railroad Commission
of Texas are the powers, duties, rights, and obligations of the
Texas Energy and Communications Commission;
(2) a member of the Railroad Commission of Texas is a
member of the Texas Energy and Communications Commission; and
(3) any appropriation to the Railroad Commission of
Texas is an appropriation to the Texas Energy and Communications
Commission.
(b) On or after January 1, 2012, a reference in law to the
Railroad Commission of Texas means the Texas Energy and
Communications Commission.
(c) The Texas Energy and Communications Commission is the
successor to the Railroad Commission of Texas in all respects. All
personnel, equipment, data, documents, facilities, contracts,
items, other property, rules, decisions, and proceedings of or
involving the Railroad Commission of Texas are unaffected by the
change in the name of the agency.
SECTION 1.05. This article takes effect January 1, 2012.
ARTICLE 2. PUBLIC UTILITY COMMISSION OF TEXAS ABOLISHED; POWERS AND
DUTIES TRANSFERRED TO TEXAS ENERGY AND COMMUNICATIONS COMMISSION
SECTION 2.01. (a) The powers, duties, obligations, rights,
contracts, records, employees, property, funds, and appropriations
of the Public Utility Commission of Texas are transferred to the
Texas Energy and Communications Commission on September 1, 2012, as
provided by this section.
(b) The Railroad Commission of Texas and the Texas Energy
and Communications Commission shall administer the transfer
described by Subsection (a) of this section. The Public Utility
Commission of Texas shall cooperate with and assist in the transfer
planning and administration.
(c) The Railroad Commission of Texas and the Texas Energy
and Communications Commission shall ensure that the transfer
described by Subsection (a) of this section does not adversely
affect a proceeding pending before the Public Utility Commission of
Texas or the rights of the parties to the proceeding.
(d) After the transfer has been completed, the Texas Energy
and Communications Commission shall prepare a written report
detailing the specifics of the transfer described by Subsection (a)
of this section and shall submit the report to the governor and the
legislature.
SECTION 2.02. On September 1, 2012:
(1) all powers, duties, functions, programs, and
activities of the Public Utility Commission of Texas are
transferred to the Texas Energy and Communications Commission;
(2) all obligations, rights, contracts, records, and
property in the custody of the Public Utility Commission of Texas
and all funds appropriated by the legislature to the Public Utility
Commission of Texas are transferred to the Texas Energy and
Communications Commission;
(3) all employees of the Public Utility Commission of
Texas become employees of the Texas Energy and Communications
Commission, to be assigned duties by the Texas Energy and
Communications Commission;
(4) the Public Utility Commission of Texas is
abolished; and
(5) a reference in law to the Public Utility
Commission of Texas means the Texas Energy and Communications
Commission.
SECTION 2.03. (a) On September 1, 2012, a rule, policy,
procedure, decision, or form adopted by the Public Utility
Commission of Texas that relates to the regulation of the electric
or telecommunications industries is a rule, policy, procedure,
decision, or form of the Texas Energy and Communications Commission
and remains in effect until altered by the Texas Energy and
Communications Commission. The secretary of state may adopt rules
as necessary to expedite the implementation of this subsection.
(b) On September 1, 2012, a rule, policy, procedure,
decision, or form of the Public Utility Commission of Texas that
relates to the management and daily operation of the Public Utility
Commission of Texas, to the extent of any conflict, is superseded by
the rules, policies, procedures, decisions, and forms of the Texas
Energy and Communications Commission relating to the management and
daily operation of the Texas Energy and Communications Commission.
SECTION 2.04. (a) The abolition of the Public Utility
Commission of Texas and the transfer of its powers, duties,
functions, programs, activities, obligations, rights, contracts,
records, property, funds, and employees to the Texas Energy and
Communications Commission does not affect or impair an act done,
any obligation, right, order, permit, certificate, rule,
criterion, standard, or requirement existing, any investigation
begun, or any penalty accrued under former law, and that law remains
in effect for any action concerning those matters.
(b) An action brought or proceeding commenced before the
effective date of a transfer prescribed by this Act, including a
contested case or a remand of an action or proceeding by a reviewing
court, is governed by the laws and rules applicable to the action or
proceeding before the transfer.
ARTICLE 3. CONFORMING AMENDMENTS
SECTION 3.01. Section 11.002(c), Utilities Code, is amended
to read as follows:
(c) Significant changes have occurred in the
telecommunications and electric power industries since the Public
Utility Regulatory Act was originally adopted. Changes in
technology and market structure have increased the need for minimum
standards of service quality, customer service, and fair business
practices to ensure high-quality service to customers and a healthy
marketplace where competition is permitted by law. It is the
purpose of this title to grant the Texas Energy and Communications
[Public Utility] Commission [of Texas] authority to make and
enforce rules necessary to protect customers of telecommunications
and electric services consistent with the public interest.
SECTION 3.02. Sections 11.003(4) and (5), Utilities Code,
are amended to read as follows:
(4) "Commission" means the Texas Energy and
Communications [Public Utility] Commission [of Texas].
(5) "Commissioner" means a member of the Texas Energy
and Communications [Public Utility] Commission [of Texas].
SECTION 3.03. Section 12.001, Utilities Code, is amended to
read as follows:
Sec. 12.001. TEXAS ENERGY AND COMMUNICATIONS [PUBLIC
UTILITY] COMMISSION [OF TEXAS]. The Texas Energy and
Communications [Public Utility] Commission [of Texas] exercises
the jurisdiction and powers conferred by this title.
SECTION 3.04. Section 12.201, Utilities Code, is amended to
read as follows:
Sec. 12.201. PUBLIC INTEREST INFORMATION. (a) The
commission shall prepare information of public interest describing
the functions of the commission under this title and the
commission's procedures by which a complaint concerning a matter
subject to this title is filed with and resolved by the commission.
The commission shall make the information available to the public
and appropriate state agencies.
(b) The commission by rule shall establish methods by which
consumers and service recipients are notified of the name, mailing
address, and telephone number of the commission for the purpose of
directing [complaints] to the commission complaints concerning a
matter subject to this title.
SECTION 3.05. Sections 12.202(a) and (c), Utilities Code,
are amended to read as follows:
(a) The commission shall develop and implement policies
that provide the public with a reasonable opportunity to appear
before the commission and to speak on any issue under the
jurisdiction of the commission under this title.
(c) The commission shall prepare and maintain a written plan
that describes how a person who does not speak English may be
provided reasonable access to the commission's programs and
services under this title.
SECTION 3.06. Section 12.203(a), Utilities Code, is amended
to read as follows:
(a) The commission shall prepare annually a complete and
detailed written report accounting for all funds received and
disbursed by the commission under this title during the preceding
fiscal year. The annual report must meet the reporting
requirements applicable to financial reporting in the General
Appropriations Act.
SECTION 3.07. Section 12.204, Utilities Code, is amended to
read as follows:
Sec. 12.204. INTERNET FOR HEARINGS AND MEETINGS. The
commission shall make publicly accessible without charge live
Internet video of all public hearings and meetings the commission
holds under this title for viewing from the Internet website found
at http://www.puc.state.tx.us. The commission may recover the
costs of administering this section by imposing an assessment
against a:
(1) public utility;
(2) corporation described by Section 32.053;
(3) retail electric provider that serves more than
250,000 customers; or
(4) power generation company that owns more than 5,000
megawatts of installed capacity in this state.
SECTION 3.08. Section 14.002, Utilities Code, is amended to
read as follows:
Sec. 14.002. RULES. The commission shall adopt and enforce
rules reasonably required in the exercise of its powers and
jurisdiction under this title.
SECTION 3.09. Sections 14.0025(a) and (b), Utilities Code,
are amended to read as follows:
(a) The commission shall develop and implement a policy to
encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008, Government Code, for the adoption of commission rules under
this title; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009, Government Code, to assist in the
resolution of internal and external disputes under the commission's
jurisdiction under this title.
(b) The commission's procedures relating to alternative
dispute resolution under this title must conform, to the extent
possible, to any model guidelines issued by the State Office of
Administrative Hearings for the use of alternative dispute
resolution by state agencies.
SECTION 3.10. Section 14.006, Utilities Code, is amended to
read as follows:
Sec. 14.006. INTERFERENCE WITH TERMS OR CONDITIONS OF
EMPLOYMENT; PRESUMPTION OF REASONABLENESS. In exercising its
jurisdiction under this title, the [The] commission may not
interfere with employee wages and benefits, working conditions, or
other terms or conditions of employment that are the product of a
collective bargaining agreement recognized under federal law. An
employee wage rate or benefit that is the product of the collective
bargaining is presumed to be reasonable.
SECTION 3.11. Section 14.007, Utilities Code, is amended to
read as follows:
Sec. 14.007. ASSISTANCE TO MUNICIPALITY. On request by the
governing body of a municipality, the commission may provide
commission employees as necessary to advise and consult with the
municipality on a [pending] matter pending under this title.
SECTION 3.12. Section 14.051, Utilities Code, is amended to
read as follows:
Sec. 14.051. PROCEDURAL POWERS. In exercising its
jurisdiction under this title, the [The] commission may:
(1) call and hold a hearing;
(2) administer an oath;
(3) receive evidence at a hearing;
(4) issue a subpoena to compel the attendance of a
witness or the production of a document; and
(5) make findings of fact and decisions to administer
this title or a rule, order, or other action of the commission.
SECTION 3.13. Sections 14.052(a) and (b), Utilities Code,
are amended to read as follows:
(a) The commission shall adopt and enforce rules governing
practice and procedure before the commission under this title and,
as applicable, practice and procedure before the utility division
of the State Office of Administrative Hearings under this title.
(b) The commission shall adopt rules that authorize an
administrative law judge acting under this title to:
(1) limit the amount of time that a party may have to
present its case;
(2) limit the number of requests for information that
a party may make in a contested case;
(3) require a party to a contested case to identify
contested issues and facts before the hearing begins;
(4) limit cross-examination to only those issues and
facts identified before the hearing and to any new issues that may
arise as a result of the discovery process; and
(5) group parties, other than the office, that have
the same position on an issue to facilitate cross-examination on
that issue.
SECTION 3.14. Sections 14.053(a) and (b), Utilities Code,
are amended to read as follows:
(a) The utility division of the State Office of
Administrative Hearings shall conduct each hearing in a contested
case under this title that is not conducted by one or more
commissioners.
(b) The commission may delegate to the utility division of
the State Office of Administrative Hearings the authority to make a
final decision and to issue findings of fact, conclusions of law,
and other necessary orders in a proceeding under this title in which
there is not a contested issue of fact or law.
SECTION 3.15. Section 14.054(a), Utilities Code, is amended
to read as follows:
(a) The commission by rule shall adopt procedures governing
the use of settlements to resolve contested cases under this title.
SECTION 3.16. Sections 14.057(a) and (b), Utilities Code,
are amended to read as follows:
(a) A commission order under this title must be in writing
and contain detailed findings of the facts on which it is passed.
(b) The commission shall retain a copy of the transcript and
the exhibits in any matter in which the commission issues an order
under this title.
SECTION 3.17. Section 15.001, Utilities Code, is amended to
read as follows:
Sec. 15.001. RIGHT TO JUDICIAL REVIEW. Any party to a
proceeding before the commission under this title is entitled to
judicial review under the substantial evidence rule.
SECTION 3.18. Section 15.002, Utilities Code, is amended to
read as follows:
Sec. 15.002. COMMISSION AS DEFENDANT. The commission must
be a defendant in a proceeding for judicial review under this title.
SECTION 3.19. Section 15.003(a), Utilities Code, is amended
to read as follows:
(a) A party represented by counsel who alleges that existing
rates are excessive or that rates prescribed by the commission are
excessive and who prevails in a proceeding for review of a
commission order or decision under this title is entitled in the
same action to recover against the regulation fund reasonable fees
for attorneys and expert witnesses and other costs for the party's
efforts before the commission and the court.
SECTION 3.20. Section 15.004, Utilities Code, is amended to
read as follows:
Sec. 15.004. JUDICIAL STAY OR SUSPENSION. While an appeal
of an order, ruling, or decision of a regulatory authority under
this title is pending, the district court, court of appeals, or
supreme court, as appropriate, may stay or suspend all or part of
the operation of the order, ruling, or decision. In granting or
refusing a stay or suspension, the court shall act in accordance
with the practice of a court exercising equity jurisdiction.
SECTION 3.21. Section 15.022, Utilities Code, is amended to
read as follows:
Sec. 15.022. CONTEMPT. The commission may file a court
action for contempt against a person who:
(1) fails to comply with a lawful order of the
commission under this title;
(2) fails to comply with a subpoena or subpoena duces
tecum issued under this title; or
(3) refuses to testify about a matter that is subject
to the commission's jurisdiction under this title and on which the
person may be lawfully interrogated.
SECTION 3.22. Sections 15.024(a), (b), (d), (e), and (f),
Utilities Code, are amended to read as follows:
(a) If the commission [executive director] determines that
a violation of this title or a rule or order adopted under this
title has occurred, the commission [executive director] may issue
[to the commission] a report that states:
(1) the facts on which the determination is based;
(2) whether [and] the commission proposes to impose
[executive director's recommendation on the imposition of] an
administrative penalty; and
(3) if a penalty is proposed, [including a
recommendation on] the amount of the proposed penalty.
(b) Not later than the 14th day after the date the report is
issued, the commission [executive director] shall give written
notice of the report to the person against whom the penalty may be
imposed [assessed]. The notice may be given by certified mail. The
notice must:
(1) include a brief summary of the alleged violation;
(2) state the amount of the proposed [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.
(d) Not later than the 20th day after the date the person
receives the notice, the person may accept the determination and
proposed [recommended] penalty of the commission [executive
director] in writing or may make a written request for 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.
(e) If the person accepts the commission's [executive
director's] determination and proposed [recommended] penalty, the
commission by order shall approve the determination and impose the
proposed [recommended] penalty.
(f) If the person requests a hearing or fails to timely
respond to the notice, the commission [executive director] shall
set a hearing and give notice of the hearing to the person. The
hearing shall be held by an administrative law judge of the State
Office of Administrative Hearings. 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 may find that no violation
occurred.
SECTION 3.23. Section 15.025, Utilities Code, is amended to
read as follows:
Sec. 15.025. PAYMENT OF ADMINISTRATIVE PENALTY. (a) Not
later than the 30th day after the date the commission's order
imposing an administrative penalty under this subchapter is final
as provided by Section 2001.144, Government Code, the person shall:
(1) pay the amount of the penalty;
(2) pay the amount of the penalty and file a petition
for judicial review contesting:
(A) the occurrence of the violation;
(B) the amount of the penalty; or
(C) both the occurrence of the violation and the
amount of the penalty; or
(3) without paying the amount of the penalty, file a
petition for judicial review contesting:
(A) the occurrence of the violation;
(B) the amount of the penalty; or
(C) both the occurrence of the violation and the
amount of the penalty.
(b) Not later than the 30th day after the date the
commission's order is final as provided by Section 2001.144,
Government Code, a person who acts under Subsection (a)(3) may:
(1) stay enforcement of the penalty by:
(A) paying the amount of the penalty to the court
for placement in an escrow account; or
(B) giving to the court a supersedeas bond that
is approved by the court for the amount of the penalty and that is
effective until all judicial review of the commission's order is
final; or
(2) request the court to stay enforcement of the
penalty by:
(A) filing with the court a sworn affidavit of
the person stating that the person is financially unable to pay the
amount of the penalty and is financially unable to give the
supersedeas bond; and
(B) giving a copy of the affidavit to the
commission [executive director] by certified mail.
(c) The commission [executive director], on receipt of a
copy of an affidavit under Subsection (b)(2), may file with the
court, not later than the fifth day after the date the copy is
received, a contest to the affidavit. The court shall hold a
hearing on the facts alleged in the affidavit as soon as practicable
and shall stay the enforcement of the penalty on finding that the
alleged facts are true. The person who files an affidavit has the
burden of proving that the person is financially unable to pay the
amount of the penalty and to give a supersedeas bond.
(d) If the person does not pay the amount of the penalty and
the enforcement of the penalty is not stayed, the commission
[executive director] may refer the matter to the attorney general
for collection of the amount of the penalty.
SECTION 3.24. Section 15.026(a), Utilities Code, is amended
to read as follows:
(a) Judicial review of a commission order imposing an
administrative penalty under this subchapter is:
(1) instituted by filing a petition as provided by
Subchapter G, Chapter 2001, Government Code; and
(2) under the substantial evidence rule.
SECTION 3.25. Section 15.027(c), Utilities Code, is amended
to read as follows:
(c) The commission [executive director] may delegate any
power or duty relating to an administrative penalty given the
commission [executive director] by this subchapter to a person
designated by the commission [executive director].
SECTION 3.26. Sections 15.051(b) and (c), Utilities Code,
are amended to read as follows:
(b) The commission shall keep for a reasonable period
information about each complaint filed with the commission that the
commission has authority to resolve under this title. The
information shall include:
(1) the date the complaint is received;
(2) the name of the complainant;
(3) the subject matter of the complaint;
(4) a record of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) if the commission took no action on the complaint,
an explanation of the reason the complaint was closed without
action.
(c) The commission shall keep a file about each written
complaint filed with the commission that the commission has
authority to resolve under this title. The commission shall
provide to the person filing the complaint and to each person or
entity complained about information concerning the commission's
policies and procedures on complaint investigation and resolution.
The commission, at least quarterly and until final disposition of
the complaint, shall notify the person filing the complaint and
each person or entity complained about of the status of the
complaint unless the notice would jeopardize an undercover
investigation.
SECTION 3.27. Section 39.157(d), Utilities Code, is amended
to read as follows:
(d) Not later than January 10, 2000, the commission shall
adopt rules and enforcement procedures to govern transactions or
activities between a transmission and distribution utility and its
competitive affiliates to avoid potential market power abuses and
cross-subsidizations between regulated and competitive activities
both during the transition to and after the introduction of
competition. Nothing in this subsection is intended to affect or
modify the obligations or duties relating to any rules or standards
of conduct that may apply to a utility or the utility's affiliates
under orders or regulations of the Federal Energy Regulatory
Commission or the Securities and Exchange Commission. A utility
that is subject to statutes or regulations in other states that
conflict with a provision of this section may petition the
commission for a waiver of the conflicting provision on a showing of
good cause. The rules adopted under this section shall ensure that:
(1) a utility makes any products and services, other
than corporate support services, that it provides to a competitive
affiliate available, contemporaneously and in the same manner, to
the competitive affiliate's competitors and applies its tariffs,
prices, terms, conditions, and discounts for those products and
services in the same manner to all similarly situated entities;
(2) a utility does not:
(A) give a competitive affiliate or a competitive
affiliate's customers any preferential advantage, access, or
treatment regarding services other than corporate support
services; or
(B) act in a manner that is discriminatory or
anticompetitive with respect to a nonaffiliated competitor of a
competitive affiliate;
(3) a utility providing electric transmission or
distribution services:
(A) provides those services on nondiscriminatory
terms and conditions;
(B) does not establish as a condition for the
provision of those services the purchase of other goods or services
from the utility or the competitive affiliate; and
(C) does not provide competitive affiliates
preferential access to the utility's transmission and distribution
systems or to information about those systems;
(4) a utility does not release any proprietary
customer information to a competitive affiliate or any other
entity, other than an independent organization as defined by
Section 39.151 or a provider of corporate support services for the
purposes of providing the services, without obtaining prior
verifiable authorization, as determined from the commission, from
the customer;
(5) a utility does not:
(A) communicate with a current or potential
customer about products or services offered by a competitive
affiliate in a manner that favors a competitive affiliate; or
(B) allow a competitive affiliate, before
September 1, 2005, to use the utility's corporate name, trademark,
brand, or logo unless the competitive affiliate includes on
employee business cards and in its advertisements of specific
services to existing or potential residential or small commercial
customers located [locating] within the utility's certificated
service area a disclaimer that states, "(Name of competitive
affiliate) is not the same company as (name of utility) and is not
regulated by the Texas Energy and Communications [Public Utility]
Commission [of Texas], and you do not have to buy (name of
competitive affiliate)'s products to continue to receive quality
regulated services from (name of utility).";
(6) a utility does not conduct joint advertising or
promotional activities with a competitive affiliate in a manner
that favors the competitive affiliate;
(7) a utility is a separate, independent entity from
any competitive affiliates and, except as provided by Subdivisions
(8) and (9), does not share employees, facilities, information, or
other resources, other than permissible corporate support
services, with those competitive affiliates unless the utility can
prove to the commission that the sharing will not compromise the
public interest;
(8) a utility's office space is physically separated
from the office space of the utility's competitive affiliates by
being located in separate buildings or, if within the same
building, by a method such as having the offices on separate floors
or with separate access, unless otherwise approved by the
commission;
(9) a utility and a competitive affiliate:
(A) may, to the extent the utility implements
adequate safeguards precluding employees of a competitive
affiliate from gaining access to information in a manner
inconsistent with Subsection (g) or (i), share common officers and
directors, property, equipment, offices to the extent consistent
with Subdivision (8), credit, investment, or financing
arrangements to the extent consistent with Subdivision (17),
computer systems, information systems, and corporate support
services; and
(B) are not required to enter into prior written
contracts or competitive solicitations for non-tariffed
transactions between the utility and the competitive affiliate,
except that the commission by rule may require the utility and the
competitive affiliate to enter into prior written contracts or
competitive solicitations for certain classes of transactions,
other than corporate support services, that have a per unit value of
more than $75,000 or that total more than $1 million;
(10) a utility does not temporarily assign, for less
than one year, employees engaged in transmission or distribution
system operations to a competitive affiliate unless the employee
does not have knowledge of information that is intended to be
protected under this section;
(11) a utility does not subsidize the business
activities of an affiliate with revenues from a regulated service;
(12) a utility and its affiliates fully allocate costs
for any shared services, corporate support services, and other
items described by Subdivisions (8) and (9);
(13) a utility and its affiliates keep separate books
of accounts and records and the commission may review records
relating to a transaction between a utility and an affiliate;
(14) assets transferred or services provided between a
utility and an affiliate, other than transfers that facilitate
unbundling under Section 39.051 or asset valuation under Section
39.262, are priced at a level that is fair and reasonable to the
customers of the utility and reflects the market value of the assets
or services or the utility's fully allocated cost to provide those
assets or services;
(15) regulated services that a utility provides on a
routine or recurring basis are included in a tariff that is subject
to commission approval;
(16) each transaction between a utility and a
competitive affiliate is conducted at arm's length; and
(17) a utility does not allow an affiliate to obtain
credit under an arrangement that would include a specific pledge of
assets in the rate base of the utility or a pledge of cash
reasonably necessary for utility operations.
SECTION 3.28. Section 163.123, Utilities Code, is amended
to read as follows:
Sec. 163.123. AUTHORITY OF TEXAS ENERGY AND COMMUNICATIONS
[PUBLIC UTILITY] COMMISSION. A joint powers agency created under
this subchapter is:
(1) subject to all applicable provisions of Title 2;
and
(2) under the jurisdiction of the Texas Energy and
Communications [Public Utility] Commission [of Texas] as provided
by Title 2.
SECTION 3.29. Section 183.001(1), Utilities Code, is
amended to read as follows:
(1) "Commission" means the Texas Energy and
Communications [Public Utility] Commission [of Texas].
SECTION 3.30. Section 184.001, Utilities Code, is amended
to read as follows:
Sec. 184.001. DEFINITION. In this chapter, "commission"
means the Texas Energy and Communications [Public Utility]
Commission [of Texas].
SECTION 3.31. Section 185.001(1), Utilities Code, is
amended to read as follows:
(1) "Commission" means the Texas Energy and
Communications [Public Utility] Commission [of Texas].
SECTION 3.32. Section 22.003(d), Agriculture Code, is
amended to read as follows:
(d) The Texas Energy and Communications [Public Utility]
Commission [of Texas] and the Texas Commission on Environmental
Quality shall assist the department as necessary to enable the
department to determine whether a facility meets the requirements
of Subsection (b) for purposes of the eligibility of farmers,
loggers, diverters, and renewable biomass aggregators and bio-coal
fuel producers for grants under this chapter.
SECTION 3.33. Section 22.007, Agriculture Code, is amended
to read as follows:
Sec. 22.007. RULES. The commissioner, in consultation
with the Texas Energy and Communications [Public Utility]
Commission [of Texas] and the Texas Commission on Environmental
Quality, shall adopt rules to implement this chapter.
SECTION 3.34. Section 50D.011(a), Agriculture Code, is
amended to read as follows:
(a) The policy council is composed of the following 17 [18]
members:
(1) the commissioner, who serves as chair of the
policy council;
(2) one representative of the Texas Energy and
Communications [Railroad] Commission [of Texas] designated by the
commission;
(3) one representative of the Texas Commission on
Environmental Quality designated by the commission;
(4) [one representative of the Public Utility
Commission of Texas designated by the commission;
[(5)] one representative of the Texas Water
Development Board designated by the board;
(5) [(6)] the chancellor of The Texas A&M University
System, or the person designated by the chancellor;
(6) [(7)] the chancellor of the Texas Tech University
System, or the person designated by the chancellor;
(7) [(8)] the chancellor of The University of Texas
System, or the person designated by the chancellor;
(8) [(9)] one member of the senate appointed by the
lieutenant governor;
(9) [(10)] one member of the house of representatives
appointed by the speaker of the house of representatives; and
(10) [(11)] eight members appointed by the governor,
with each of the following industries or groups represented by one
member:
(A) research and development of feedstock and
feedstock production;
(B) retail distribution of energy;
(C) transportation of biomass feedstock;
(D) agricultural production for bioenergy
production or agricultural waste used for production of bioenergy;
(E) production of biodiesel from nonfood
feedstocks;
(F) production of ethanol from nonfood
feedstocks;
(G) bio-based electricity generation; and
(H) chemical manufacturing.
SECTION 3.35. Section 50D.021(a), Agriculture Code, is
amended to read as follows:
(a) The research committee is composed of the following 15
[16] members:
(1) the commissioner or the person designated by the
commissioner, who serves as the chair of the research committee;
(2) one representative of the Texas Energy and
Communications [Railroad] Commission [of Texas] designated by the
commission;
(3) one representative of the Texas Commission on
Environmental Quality designated by the commission;
(4) [one representative of the Public Utility
Commission of Texas designated by the commission;
[(5)] one representative of the Texas Water
Development Board designated by the board;
(5) [(6)] one researcher or specialist in the
bioenergy field from each of the following university systems,
appointed by the chancellor of the system:
(A) The Texas A&M University System;
(B) the Texas Tech University System; and
(C) The University of Texas System; and
(6) [(7)] eight members, with a member appointed by
each policy council member appointed by the governor under Section
50D.011(a)(10) [50D.011(a)(11)].
SECTION 3.36. Section 302.053, Business & Commerce Code, is
amended to read as follows:
Sec. 302.053. EXEMPTION: PERSONS REGULATED BY OTHER
LAW. This chapter does not apply to:
(1) a person offering or selling a security that has
been qualified for sale under Section 7, The Securities Act
(Article 581-7, Vernon's Texas Civil Statutes), or that is subject
to an exemption under Section 5 or 6 of that Act;
(2) a publicly traded corporation registered with the
Securities and Exchange Commission or the State Securities Board,
or a subsidiary or agent of the corporation;
(3) a person who holds a license issued under the
Insurance Code if the solicited transaction is governed by that
code;
(4) a supervised financial institution or a parent, a
subsidiary, or an affiliate of a supervised financial institution;
(5) a person whose business is regulated by the Texas
Energy and Communications [Public Utility] Commission under Title 2
or 4, Utilities Code, [of Texas] or an affiliate of that person,
except that this chapter applies to such a person or affiliate only
with respect to one or more automated dial announcing devices;
(6) a person subject to the control or licensing
regulations of the Federal Communications Commission;
(7) a person selling a contractual plan regulated by
the Federal Trade Commission trade regulation on use of negative
option plans by sellers in commerce under 16 C.F.R. Part 425;
(8) a person subject to filing requirements under
Chapter 1803, Occupations Code; or
(9) a person who:
(A) is soliciting a transaction regulated by the
Commodity Futures Trading Commission; and
(B) is registered or holds a temporary license
for the activity described by Paragraph (A) with the Commodity
Futures Trading Commission under the Commodity Exchange Act (7
U.S.C. Section 1 et seq.), if the registration or license has not
expired or been suspended or revoked.
SECTION 3.37. Section 304.002(2), Business & Commerce Code,
is amended to read as follows:
(2) "Commission" means the Texas Energy and
Communications [Public Utility] Commission [of Texas].
SECTION 3.38. Section 1(10), Article 18.21, Code of
Criminal Procedure, is amended to read as follows:
(10) "Trap and trace device" means a device or process
that records an incoming electronic or other impulse that
identifies the originating number or other dialing, routing,
addressing, or signaling information reasonably likely to identify
the source of a wire or electronic communication, if the
information does not include the contents of the communication. The
term does not include a device or telecommunications network used
in providing:
(A) a caller identification service authorized
by the Texas Energy and Communications [Public Utility] Commission
[of Texas] under Subchapter E, Chapter 55, Utilities Code;
(B) the services referenced in Section
55.102(b), Utilities Code; or
(C) a caller identification service provided by a
commercial mobile radio service provider licensed by the Federal
Communications Commission.
SECTION 3.39. Section 88.215(b), Education Code, is amended
to read as follows:
(b) The advisory committee consists of 11 members appointed
as follows:
(1) one representative of Texas A & M University
appointed by the director of [the] Texas AgriLife Research
[Agricultural Experiment Station];
(2) one representative of Texas Tech University
appointed by the dean of the College of Agricultural Sciences and
Natural Resources [Agriculture] of Texas Tech University;
(3) one representative of The University of Texas
appointed by the vice president for research of The University of
Texas System;
(4) one representative of the Department of
Agriculture appointed by the commissioner of agriculture;
(5) one representative of the Parks and Wildlife
Department appointed by the director of the department;
(6) one representative of the Texas Energy and
Communications [Public Utility] Commission [of Texas] appointed by
the [executive director of the] commission;
(7) one representative of municipal governments
appointed by the governor;
(8) one representative of the general public appointed
by the governor;
(9) one representative of the agribusiness industry
appointed by the governor;
(10) one representative of the chemical industry
appointed by the Texas Chemical Council; and
(11) one representative of the oil and gas industry
appointed by the Texas [Mid-Continent] Oil and Gas Association.
SECTION 3.40. Section 418.051(c), Government Code, is
amended to read as follows:
(c) The communications coordination group consists of
members selected by the division, including representatives of:
(1) the Texas military forces;
(2) the Department of Public Safety of the State of
Texas;
(3) the Federal Emergency Management Agency;
(4) federal agencies that comprise Emergency Support
Function No. 2;
(5) the telecommunications industry, including cable
service providers, as defined by Section 66.002, Utilities Code;
(6) electric utilities, as defined by Section 31.002,
Utilities Code;
(7) gas utilities, as defined by Sections 101.003 and
121.001, Utilities Code;
(8) the National Guard's Joint Continental United
States Communications Support Environment;
(9) the National Guard Bureau;
(10) amateur radio operator groups;
(11) the Texas Forest Service;
(12) the Texas Department of Transportation;
(13) the General Land Office;
(14) the Texas Engineering Extension Service of The
Texas A&M University System;
(15) [the Public Utility Commission of Texas;
[(16)] the Texas Energy and Communications [Railroad]
Commission [of Texas];
(16) [(17)] the Department of State Health Services;
(17) [(18)] the judicial branch of state government;
(18) [(19)] the Texas Association of Regional
Councils;
(19) [(20)] the United States Air Force Auxiliary
Civil Air Patrol, Texas Wing;
(20) [(21)] each trauma service area regional
advisory council;
(21) [(22)] state agencies, counties, and
municipalities affected by the emergency, including 9-1-1
agencies; and
(22) [(23)] other agencies as determined by the
division.
SECTION 3.41. Section 421.021(a), Government Code, is
amended to read as follows:
(a) The Homeland Security Council is composed of the
governor or the governor's designee, the speaker of the house of
representatives or the speaker's designee, the lieutenant governor
or the lieutenant governor's designee, and one representative of
each of the following entities, appointed by the single statewide
elected or appointed governing officer, administrative head, or
chair, as appropriate, of the entity:
(1) Department of Agriculture;
(2) office of the attorney general;
(3) General Land Office;
(4) Texas Energy and Communications [Public Utility]
Commission [of Texas];
(5) Department of State Health Services;
(6) Department of Information Resources;
(7) Department of Public Safety of the State of Texas;
(8) Texas Division of Emergency Management;
(9) adjutant general's department;
(10) Texas Commission on Environmental Quality;
(11) [Railroad Commission of Texas;
[(12)] Texas Strategic Military Planning Commission;
(12) [(13)] Texas Department of Transportation;
(13) [(14)] Commission on State Emergency
Communications;
(14) [(15)] Office of State-Federal Relations;
(15) [(16)] secretary of state;
(16) [(17)] Senate Committee on Transportation and
Homeland Security;
(17) [(18)] House Committee on Defense and Veterans'
Affairs;
(18) [(19)] Texas Animal Health Commission;
(19) [(20)] Texas Association of Regional Councils;
(20) [(21)] Texas Commission on Law Enforcement
Officer Standards and Education;
(21) [(22)] state fire marshal's office;
(22) [(23)] Texas Education Agency;
(23) [(24)] Texas Commission on Fire Protection;
(24) [(25)] Parks and Wildlife Department;
(25) [(26)] Texas Forest Service; and
(26) [(27)] Texas Water Development Board.
SECTION 3.42. Section 447.006(g), Government Code, is
amended to read as follows:
(g) The state energy conservation office may analyze the
rates for electricity charged to and the amount of electricity used
by state agencies and institutions of higher education to determine
ways the state could obtain lower rates and use less electricity.
Each state agency, including the Texas Energy and Communications
[Public Utility] Commission [of Texas], and institution of higher
education shall assist the office in obtaining the information the
office needs to perform its analysis.
SECTION 3.43. Section 487.054(a), Government Code, is
amended to read as follows:
(a) At least once each year, the following agency heads or
their designees shall meet in Austin to discuss rural issues and to
provide information showing the impact each agency has on rural
communities for use in developing rural policy and compiling the
annual report under Section 487.051(a)(5):
(1) the commissioner of agriculture;
(2) a member [the executive director] of the Texas
Energy and Communications [Public Utility] Commission [of Texas];
(3) the director of the Texas AgriLife [Agricultural]
Extension Service;
(4) the executive director of the Texas Department of
Housing and Community Affairs;
(5) the commissioner of the Department of State Health
Services;
(6) the executive administrator of the Texas Water
Development Board;
(7) the executive director of the Parks and Wildlife
Department;
(8) the commissioner of higher education;
(9) the comptroller;
(10) the executive director of the Texas Department of
Transportation;
(11) the executive director of the Texas Commission on
Environmental Quality;
(12) [the executive director of the Texas Economic
Development and Tourism Office;
[(13)] the commissioner of insurance;
(13) [(14)] the commissioner of the Department of
Aging and Disability Services;
(14) [(15)] the commissioner of education;
(15) [(16)] the executive commissioner of the Health
and Human Services Commission;
(16) [(17)] the executive director of the Texas
Workforce Commission;
(17) [(18)] the executive director of the Texas
Historical Commission;
(18) [(19) a member of the Railroad Commission of
Texas;
[(20)] the executive director of the State Soil and
Water Conservation Board;
(19) [(21)] the executive director of the department;
and
(20) [(22)] the head of any other agency interested in
rural issues.
SECTION 3.44. Section 551.086(b)(3), Government Code, is
amended to read as follows:
(3) "Competitive matter" means a utility-related
matter that the public power utility governing body in good faith
determines by a vote under this section is related to the public
power utility's competitive activity, including commercial
information, and would, if disclosed, give advantage to competitors
or prospective competitors but may not be deemed to include the
following categories of information:
(A) information relating to the provision of
distribution access service, including the terms and conditions of
the service and the rates charged for the service but not including
information concerning utility-related services or products that
are competitive;
(B) information relating to the provision of
transmission service that is required to be filed with the Texas
Energy and Communications [Public Utility] Commission [of Texas],
subject to any confidentiality provided for under the rules of the
commission;
(C) information for the distribution system
pertaining to reliability and continuity of service, to the extent
not security-sensitive, that relates to emergency management,
identification of critical loads such as hospitals and police,
records of interruption, and distribution feeder standards;
(D) any substantive rule of general
applicability regarding service offerings, service regulation,
customer protections, or customer service adopted by the public
power utility as authorized by law;
(E) aggregate information reflecting receipts or
expenditures of funds of the public power utility, of the type that
would be included in audited financial statements;
(F) information relating to equal employment
opportunities for minority groups, as filed with local, state, or
federal agencies;
(G) information relating to the public power
utility's performance in contracting with minority business
entities;
(H) information relating to nuclear
decommissioning trust agreements, of the type required to be
included in audited financial statements;
(I) information relating to the amount and timing
of any transfer to an owning city's general fund;
(J) information relating to environmental
compliance as required to be filed with any local, state, or
national environmental authority, subject to any confidentiality
provided under the rules of those authorities;
(K) names of public officers of the public power
utility and the voting records of those officers for all matters
other than those within the scope of a competitive resolution
provided for by this section;
(L) a description of the public power utility's
central and field organization, including the established places at
which the public may obtain information, submit information and
requests, or obtain decisions and the identification of employees
from whom the public may obtain information, submit information or
requests, or obtain decisions; or
(M) information identifying the general course
and method by which the public power utility's functions are
channeled and determined, including the nature and requirements of
all formal and informal policies and procedures.
SECTION 3.45. Section 552.133(a)(3), Government Code, is
amended to read as follows:
(3) "Competitive matter" means a utility-related
matter that the public power utility governing body in good faith
determines by a vote under this section is related to the public
power utility's competitive activity, including commercial
information, and would, if disclosed, give advantage to competitors
or prospective competitors but may not be deemed to include the
following categories of information:
(A) information relating to the provision of
distribution access service, including the terms and conditions of
the service and the rates charged for the service but not including
information concerning utility-related services or products that
are competitive;
(B) information relating to the provision of
transmission service that is required to be filed with the Texas
Energy and Communications [Public Utility] Commission [of Texas],
subject to any confidentiality provided for under the rules of the
commission;
(C) information for the distribution system
pertaining to reliability and continuity of service, to the extent
not security-sensitive, that relates to emergency management,
identification of critical loads such as hospitals and police,
records of interruption, and distribution feeder standards;
(D) any substantive rule of general
applicability regarding service offerings, service regulation,
customer protections, or customer service adopted by the public
power utility as authorized by law;
(E) aggregate information reflecting receipts or
expenditures of funds of the public power utility, of the type that
would be included in audited financial statements;
(F) information relating to equal employment
opportunities for minority groups, as filed with local, state, or
federal agencies;
(G) information relating to the public power
utility's performance in contracting with minority business
entities;
(H) information relating to nuclear
decommissioning trust agreements, of the type required to be
included in audited financial statements;
(I) information relating to the amount and timing
of any transfer to an owning city's general fund;
(J) information relating to environmental
compliance as required to be filed with any local, state, or
national environmental authority, subject to any confidentiality
provided under the rules of those authorities;
(K) names of public officers of the public power
utility and the voting records of those officers for all matters
other than those within the scope of a competitive resolution
provided for by this section;
(L) a description of the public power utility's
central and field organization, including the established places at
which the public may obtain information, submit information and
requests, or obtain decisions and the identification of employees
from whom the public may obtain information, submit information or
requests, or obtain decisions; or
(M) information identifying the general course
and method by which the public power utility's functions are
channeled and determined, including the nature and requirements of
all formal and informal policies and procedures.
SECTION 3.46. Section 555.051(a), Government Code, is
amended to read as follows:
(a) This section applies only to information held by or for
the office of the attorney general, the Texas Department of
Insurance, the Texas State Board of Public Accountancy, the Texas
Energy and Communications [Public Utility] Commission [of Texas],
the State Securities Board, the Department of Savings and Mortgage
Lending, the Texas Real Estate Commission, the Texas Appraiser
Licensing and Certification Board, the Texas Department of Banking,
the credit union department, the Office of Consumer Credit
Commissioner, or the Texas Department of Housing and Community
Affairs that relates to the possible commission of corporate fraud
or mortgage fraud by a person who is licensed or otherwise regulated
by any of those state agencies. In this subsection, "corporate
fraud" means a violation of state or federal law or rules relating
to fraud committed by a corporation, limited liability company, or
registered limited liability partnership or an officer, director,
or partner of those entities while acting in a representative
capacity.
SECTION 3.47. Section 572.003(c), Government Code, is
amended to read as follows:
(c) The term means a member of:
(1) [the Public Utility Commission of Texas;
[(2) the Texas Department of Economic Development;
[(3)] the Texas Commission on Environmental Quality;
(2) [(4)] the Texas Alcoholic Beverage Commission;
(3) [(5)] The Finance Commission of Texas;
(4) [(6)] the Texas Facilities Commission;
(5) [(7)] the Texas Board of Criminal Justice;
(6) [(8)] the board of trustees of the Employees
Retirement System of Texas;
(7) [(9)] the Texas Transportation Commission;
(8) [(10) the Texas Workers' Compensation Commission;
[(11)] the Texas Department of Insurance;
(9) [(12)] the Parks and Wildlife Commission;
(10) [(13)] the Public Safety Commission;
(11) [(14)] the Texas Ethics Commission;
(12) [(15)] the State Securities Board;
(13) [(16)] the Texas Water Development Board;
(14) [(17)] the governing board of a public senior
college or university as defined by Section 61.003, Education Code,
or of The University of Texas Southwestern Medical Center at
Dallas, The University of Texas Medical Branch at Galveston, The
University of Texas Health Science Center at Houston, The
University of Texas Health Science Center at San Antonio, The
University of Texas System M. D. Anderson Cancer Center, The
University of Texas Health Science Center at Tyler, University of
North Texas Health Science Center at Fort Worth, Texas Tech
University Health Sciences Center, Texas State Technical
College--Harlingen, Texas State Technical College--Marshall, Texas
State Technical College--Sweetwater, or Texas State Technical
College--Waco;
(15) [(18)] the Texas Higher Education Coordinating
Board;
(16) [(19)] the Texas Workforce Commission;
(17) [(21)] the board of trustees of the Teacher
Retirement System of Texas;
(18) [(22)] the Credit Union Commission;
(19) [(23)] the School Land Board;
(20) [(24)] the board of the Texas Department of
Housing and Community Affairs;
(21) [(25)] the Texas Racing Commission;
(22) [(26)] the State Board of Dental Examiners;
(23) [(27)] the Texas Medical [State] Board [of
Medical Examiners];
(24) [(28)] the Board of Pardons and Paroles;
(25) [(29)] the Texas State Board of Pharmacy;
(26) [(30)] the Department of Information Resources
governing board;
(27) [(31)] the Motor Vehicle Board;
(28) [(32)] the Texas Real Estate Commission;
(29) [(33)] the board of directors of the State Bar of
Texas;
(30) [(34)] the bond review board;
(31) [(35)] the [Texas Board of] Health and Human
Services Commission;
(32) [(36) the Texas Board of Mental Health and Mental
Retardation;
[(37) the Texas Board on Aging;
[(38) the Texas Board of Human Services;
[(39)] the Texas Funeral Service Commission;
(33) [(40)] the board of directors of a river
authority created under the Texas Constitution or a statute of this
state; or
(34) [(41)] the Texas Lottery Commission.
SECTION 3.48. Section 660.203(a), Government Code, is
amended to read as follows:
(a) An individual is entitled to reimbursement for the
actual expense of meals and lodging incurred while performing the
duties of the individual's office or employment if the individual
is:
(1) a judicial officer;
(2) a chief administrative officer of a state agency,
subject to Subsection (c);
(3) the executive director of the Texas Legislative
Council;
(4) the secretary of the senate;
(5) a member of the Texas [Natural Resource
Conservation] Commission on Environmental Quality, the Texas
Workforce Commission, the Texas Energy and Communications [Public
Utility] Commission [of Texas], the Board of Pardons and Paroles,
or the Sabine River Compact Administration; or
(6) a full-time member of a board and receives a salary
from the state for service on that board.
SECTION 3.49. Sections 1232.1071(d) and (e), Government
Code, are amended to read as follows:
(d) The Texas Energy and Communications [Public Utility]
Commission [of Texas] shall provide necessary assistance to the
authority to ensure the collection and enforcement of the
nonbypassable charges, whether directly or by using the assistance
and powers of the requesting member city.
(e) The authority and the Texas Energy and Communications
[Public Utility] Commission [of Texas] have all powers necessary to
perform the duties and responsibilities described by this section.
This section shall be interpreted broadly in a manner consistent
with the most cost-effective financing of stranded costs. To the
extent possible, obligations or evidences of indebtedness issued by
the authority under this section must be structured so that any
interest on the obligations or evidences of indebtedness is
excluded from gross income for federal income tax purposes. Any
interest on the obligations or evidences of indebtedness is not
subject to taxation by and may not be included as part of the
measurement of a tax by this state or a political subdivision of
this state.
SECTION 3.50. Section 2003.0421(c), Government Code, is
amended to read as follows:
(c) This section applies to any contested case hearing
conducted by the office, except hearings conducted on behalf of the
Texas [Natural Resource Conservation] Commission on Environmental
Quality or the Texas Energy and Communications [Public Utility]
Commission [of Texas] which are governed by Sections 2003.047 and
2003.049.
SECTION 3.51. Section 2003.049(a), Government Code, is
amended to read as follows:
(a) The office shall establish a utility division to perform
the contested case hearings for the Texas Energy and Communications
[Public Utility] Commission [of Texas] as prescribed by Title 2,
Utilities Code, and Section 102.006, Utilities Code, [the Public
Utility Regulatory Act of 1995] and other applicable law.
SECTION 3.52. Section 2007.003(b), Government Code, is
amended to read as follows:
(b) This chapter does not apply to the following
governmental actions:
(1) an action by a municipality except as provided by
Subsection (a)(3);
(2) a lawful forfeiture or seizure of contraband as
defined by Article 59.01, Code of Criminal Procedure;
(3) a lawful seizure of property as evidence of a crime
or violation of law;
(4) an action, including an action of a political
subdivision, that is reasonably taken to fulfill an obligation
mandated by federal law or an action of a political subdivision that
is reasonably taken to fulfill an obligation mandated by state law;
(5) the discontinuance or modification of a program or
regulation that provides a unilateral expectation that does not
rise to the level of a recognized interest in private real property;
(6) an action taken to prohibit or restrict a
condition or use of private real property if the governmental
entity proves that the condition or use constitutes a public or
private nuisance as defined by background principles of nuisance
and property law of this state;
(7) an action taken out of a reasonable good faith
belief that the action is necessary to prevent a grave and immediate
threat to life or property;
(8) a formal exercise of the power of eminent domain;
(9) an action taken under a state mandate to prevent
waste of oil and gas, protect correlative rights of owners of
interests in oil or gas, or prevent pollution related to oil and gas
activities;
(10) a rule or proclamation adopted for the purpose of
regulating water safety, hunting, fishing, or control of
nonindigenous or exotic aquatic resources;
(11) an action taken by a political subdivision:
(A) to regulate construction in an area
designated under law as a floodplain;
(B) to regulate on-site sewage facilities;
(C) under the political subdivisions's statutory
authority to prevent waste or protect rights of owners of interest
in groundwater; or
(D) to prevent subsidence;
(12) the appraisal of property for purposes of ad
valorem taxation;
(13) an action that:
(A) is taken in response to a real and
substantial threat to public health and safety;
(B) is designed to significantly advance the
health and safety purpose; and
(C) does not impose a greater burden than is
necessary to achieve the health and safety purpose; or
(14) an action or rulemaking undertaken by the Texas
Energy and Communications [Public Utility] Commission [of Texas] to
order or require the location or placement of telecommunications
equipment owned by another party on the premises of a certificated
local exchange company.
SECTION 3.53. Section 2302.001(2), Government Code, is
amended to read as follows:
(2) "Commission" means the Texas Energy and
Communications [Public Utility] Commission [of Texas].
SECTION 3.54. Section 382.501(a), Health and Safety Code,
as added by Chapter 1125 (H.B. 1796), Acts of the 81st Legislature,
Regular Session, 2009, is amended to read as follows:
(a) The commission, [and] the Texas Energy and
Communications [Railroad] Commission [of Texas], and the
Department of Agriculture[, and the Public Utility Commission of
Texas] shall jointly participate in the federal government process
for developing federal greenhouse gas reporting requirements and
the federal greenhouse gas registry requirements.
SECTION 3.55. Section 386.001(11), Health and Safety Code,
is amended to read as follows:
(11) "Utility commission" means the Texas Energy and
Communications [Public Utility] Commission [of Texas].
SECTION 3.56. Section 391.102(f), Health and Safety Code,
is amended to read as follows:
(f) In coordinating interagency application review
procedures, the commission shall:
(1) solicit review and comments from:
(A) the comptroller to assess:
(i) the financial stability of the
applicant;
(ii) the economic benefits and job creation
potential associated with the project; and
(iii) any other information related to the
duties of that office; and
(B) the Texas Energy and Communications [Public
Utility] Commission [of Texas] to assess:
(i) the reliability of the proposed
technology;
(ii) the feasibility and
cost-effectiveness of electric transmission associated with the
project; [and]
(iii) [any other information related to the
duties of that agency; and
[(C) the Railroad Commission of Texas to assess:
[(i)] the availability and cost of the fuel
involved with the project; and
(iv) [(ii)] any other information related
to the duties of that agency;
(2) consider the comments received under Subdivision
(1) in the commission's grant award decision process; and
(3) as part of the report required by Section 391.104,
justify awards made to projects that have been negatively reviewed
by agencies under Subdivision (1).
SECTION 3.57. Section 401.246(b), Health and Safety Code,
is amended to read as follows:
(b) To the extent practicable, the commission shall use the
methods used by the Texas Energy and Communications [Public
Utility] Commission [of Texas] under Sections 36.051, 36.052, and
36.053, Utilities Code, when establishing overall revenues,
reasonable return, and invested capital for the purpose of setting
fees under Subsection (a).
SECTION 3.58. Sections 771.001(5) and (11), Health and
Safety Code, are amended to read as follows:
(5) "Local exchange service provider" means a
telecommunications carrier providing telecommunications service in
a local exchange service area under a certificate of public
convenience and necessity issued by the Texas Energy and
Communications [Public Utility] Commission [of Texas].
(11) "Business service" means a telecommunications
service classified as a business service under rules adopted by the
Texas Energy and Communications [Public Utility] Commission [of
Texas] or under the applicable tariffs of the principal service
supplier.
SECTION 3.59. Section 771.031(b), Health and Safety Code,
is amended to read as follows:
(b) The following individuals serve as nonvoting ex officio
members:
(1) the executive director of the Texas Energy and
Communications [Public Utility] Commission [of Texas], or an
individual designated by the executive director;
(2) the executive director of the Department of
Information Resources, or an individual designated by the executive
director; and
(3) the executive commissioner of the Health and Human
Services Commission, or an individual designated by the executive
commissioner.
SECTION 3.60. Section 771.0725, Health and Safety Code, is
amended to read as follows:
Sec. 771.0725. ESTABLISHMENT OF RATES FOR FEES. (a)
Subject to the applicable limitations prescribed by Sections
771.071(b) and 771.072(b), (d), and (e), the Texas Energy and
Communications [Public Utility] Commission [of Texas] shall
monitor the establishment of:
(1) emergency service fees imposed under Section
771.071; and
(2) the equalization surcharge imposed under Section
771.072, including the allocation of revenue under Sections
771.072(d) and (e).
(b) Each year the commission shall provide documentation to
the Texas Energy and Communications [Public Utility] Commission [of
Texas] regarding the rate at which each fee should be imposed and
the allocation of revenue under Sections 771.072(d) and (e). The
commission may provide such documentation more often under this
subsection if the commission determines that action is necessary.
(c) The Texas Energy and Communications [Public Utility]
Commission [of Texas] shall review the documentation provided by
the commission as well as allocations derived therefrom and also
identified by the commission. If the Texas Energy and
Communications [Public Utility] Commission [of Texas] determines
that a recommended rate or allocation is not appropriate, the Texas
Energy and Communications [Public Utility] Commission [of Texas]
shall provide comments to the commission, the governor, and the
Legislative Budget Board regarding appropriate rates and the basis
for that determination.
(d) The Texas Energy and Communications [Public Utility]
Commission [of Texas] may review and make comments regarding a rate
or allocation under this section in an informal proceeding. A
proceeding in which a rate or allocation is reviewed is not a
contested case for purposes of Chapter 2001, Government Code. A
review of a rate or allocation is not a rate change for purposes of
Chapter 36 or 53, Utilities Code.
SECTION 3.61. Section 771.076(c), Health and Safety Code,
is amended to read as follows:
(c) At the request of the Texas Energy and Communications
[Public Utility] Commission [of Texas], the state auditor may audit
a regional planning commission or other public agency designated by
the regional planning commission that receives money under this
subchapter.
SECTION 3.62. Section 772.001(21), Health and Safety Code,
is amended to read as follows:
(21) "Business service" means a telecommunications
service classified as a business service under rules adopted by the
Texas Energy and Communications [Public Utility] Commission [of
Texas] or under the applicable tariffs of the principal service
supplier.
SECTION 3.63. Section 772.002(e), Health and Safety Code,
is amended to read as follows:
(e) The Texas Energy and Communications [Public Utility]
Commission [of Texas] may impose an administrative penalty under
Subchapter B, Chapter 15, Utilities Code, against a service
provider who is a person regulated under the Utilities Code if the
person:
(1) does not provide information required by a
district under this section; or
(2) bills and collects a 9-1-1 emergency service fee
as required by this chapter but does not remit the fee to the
appropriate district.
SECTION 3.64. Section 246.001(1), Local Government Code, is
amended to read as follows:
(1) "Commission" means the Texas Energy and
Communications [Public Utility] Commission [of Texas].
SECTION 3.65. Section 283.002(3), Local Government Code, is
amended to read as follows:
(3) "Commission" means the Texas Energy and
Communications [Public Utility] Commission [of Texas].
SECTION 3.66. Section 304.001(f), Local Government Code, is
amended to read as follows:
(f) A political subdivision corporation may appear on
behalf of its incorporating political subdivisions before the Texas
Energy and Communications [Public Utility] Commission [of Texas],
[the Railroad Commission of Texas,] the Texas [Natural Resource
Conservation] Commission on Environmental Quality, any other
governmental agency or regulatory authority, the Texas
Legislature, and the courts.
SECTION 3.67. Sections 33.2053(b) and (c), Natural
Resources Code, are amended to read as follows:
(b) The Texas Energy and Communications [Public Utility]
Commission [of Texas] shall comply with Sections 33.205(a) and (b)
when issuing:
(1) a certificate of convenience and necessity;[.]
(2) [(c) The Railroad Commission of Texas shall comply
with Sections 33.205(a) and (b) when issuing:
[(1)] a wastewater discharge permit;
(3) [(2)] a waste disposal or storage pit permit; or
(4) [(3)] a certification of a federal permit for the
discharge of dredge or fill material.
SECTION 3.68. Section 81.01001, Natural Resources Code, is
amended to read as follows:
Sec. 81.01001. SUNSET PROVISION. The Texas Energy and
Communications [Railroad] Commission [of Texas] is subject to
Chapter 325, Government Code (Texas Sunset Act). Unless continued
in existence as provided by that chapter, the commission is
abolished September 1, 2023 [2011].
SECTION 3.69. Section 81.01005, Natural Resources Code, is
amended to read as follows:
Sec. 81.01005. NAME AND SEAL. (a) The commissioners are
known collectively as the "Texas Energy and Communications
["Railroad] Commission [of Texas]."
(b) The seal of the commission contains a star of five
points with the words "Texas Energy and Communications ["Railroad]
Commission [of Texas]" engraved on it.
SECTION 3.70. Section 28.03(d), Penal Code, is amended to
read as follows:
(d) The terms "public communication, public transportation,
public gas or power supply, or other public service" and "public
water supply" shall mean, refer to, and include any such services
subject to regulation by the Texas Energy and Communications
[Public Utility] Commission [of Texas, the Railroad Commission of
Texas,] or the Texas [Natural Resource Conservation] Commission on
Environmental Quality or any such services enfranchised by the
State of Texas or any political subdivision thereof.
SECTION 3.71. Section 8281.103, Special District Local
Laws Code, as effective April 1, 2011, is amended to read as
follows:
Sec. 8281.103. LIMITATION ON PROVIDING WATER TO CERTAIN
USERS. Notwithstanding any other provision of this chapter, the
district may not compete with the City of Mabank in providing water
to household users unless the district receives permission from the
Texas Energy and Communications [Public Utility] Commission [of
Texas], with the consent of that city.
SECTION 3.72. Section 22.01(h), Tax Code, is amended to
read as follows:
(h) If the property that is the subject of the rendition is
regulated by the Texas Energy and Communications [Public Utility]
Commission [of Texas, the Railroad Commission of Texas], the
federal Surface Transportation Board, or the Federal Energy
Regulatory Commission, the owner of the property is considered to
have complied with the requirements of this section if the owner
provides to the chief appraiser, on written request of the chief
appraiser, a copy of the annual regulatory report covering the
property and sufficient information to enable the chief appraiser
to allocate the value of the property among the appropriate taxing
units for which the appraisal district appraises property.
SECTION 3.73. Section 301.004(c), Tax Code, is amended to
read as follows:
(c) In this section, "telephone company" means a person who
owns or operates a telephone line or a telephone network in this
state, charges for its use, and is regulated by the Texas Energy and
Communications [Public Utility] Commission [of Texas] as a
certificated provider of local exchange telephone service.
SECTION 3.74. Section 203.0922(g), Transportation Code, is
amended to read as follows:
(g) This section or a contractual right obtained under an
agreement under this section does not:
(1) make the department or a utility subject to new or
additional licensing, certification, or regulatory jurisdiction of
the Texas Energy and Communications [Public Utility] Commission or
the [of Texas,] Texas Department of Insurance[, or Railroad
Commission of Texas]; or
(2) supersede or otherwise affect a provision of
another law applicable to the department or a utility regarding
licensing, certification, or regulatory jurisdiction of an agency
listed in Subdivision (1).
SECTION 3.75. Section 227.021(e), Transportation Code, is
amended to read as follows:
(e) Nothing in this chapter, or any contractual right
obtained under a contract with the department authorized by this
chapter, supersedes or renders ineffective any provision of another
law applicable to the owner or operator of a public utility
facility, including any provision of the Utilities Code regarding
licensing, certification, and regulatory jurisdiction of the Texas
Energy and Communications [Public Utility] Commission [of Texas or
Railroad Commission of Texas].
SECTION 3.76. Section 370.033(n), Transportation Code, is
amended to read as follows:
(n) Nothing in this chapter or any contractual right
obtained under a contract with an authority under this chapter
supersedes or renders ineffective any provision of another law
applicable to the owner or operator of a public utility facility,
including any provision of the Utilities Code [utilities code]
regarding licensing, certification, or regulatory jurisdiction of
the Texas Energy and Communications [Public Utility] Commission [of
Texas or the Railroad Commission of Texas].
SECTION 3.77. Section 370.181(e), Transportation Code, is
amended to read as follows:
(e) Nothing in this chapter, or any contractual right
obtained under a contract with an authority authorized by this
chapter, supersedes or renders ineffective any provision of another
law applicable to the owner or operator of a public utility
facility, including any provision of the Utilities Code regarding
licensing, certification, and regulatory jurisdiction of the Texas
Energy and Communications [Public Utility] Commission [of Texas or
Railroad Commission of Texas].
SECTION 3.78. Section 370.302(g), Transportation Code, is
amended to read as follows:
(g) Nothing in this chapter, or any contractual right
obtained under a contract with an authority authorized by this
chapter, supersedes or renders ineffective any provision of another
law applicable to the owner or operator of a public utility
facility, including any provision of the Utilities Code regarding
licensing, certification, and regulatory jurisdiction of the Texas
Energy and Communications [Public Utility] Commission [of Texas or
Railroad Commission of Texas].
SECTION 3.79. Section 452.065(b), Transportation Code, is
amended to read as follows:
(b) The parties to a contract made under Subsection (a)(3)
may fulfill the terms of the contract notwithstanding any order or
rule of the Texas Energy and Communications [Public Utility]
Commission [of Texas] with respect to certification, except that
any supply of power or energy by one utility into the service area
of another utility must be provided over transmission or
distribution lines owned by the authority.
SECTION 3.80. Sections 13.1396(b), (c), and (f), Water
Code, are amended to read as follows:
(b) An affected utility shall submit to the county judge,
the office of emergency management of each county in which the
utility has more than one customer, the Texas Energy and
Communications [Public Utility] Commission [of Texas], and the
office of emergency management of the governor, a copy of:
(1) the affected utility's emergency preparedness plan
approved under Section 13.1395; and
(2) the commission's notification to the affected
utility that the plan is accepted.
(c) Each affected utility shall submit to the county judge
and the office of emergency management of each county in which the
utility has water and wastewater facilities that qualify for
critical load status under rules adopted by the Texas Energy and
Communications [Public Utility] Commission [of Texas], and to the
Texas Energy and Communications [Public Utility] Commission [of
Texas] and the division of emergency management of the governor:
(1) information identifying the location and
providing a general description of all water and wastewater
facilities that qualify for critical load status; and
(2) emergency contact information for the affected
utility, including:
(A) the person who will serve as a point of
contact and the person's telephone number;
(B) the person who will serve as an alternative
point of contact and the person's telephone number; and
(C) the affected utility's mailing address.
(f) Not later than May 1 of each year, each electric utility
and each retail electric provider shall determine whether the
facilities of the affected utility qualify for critical load status
under rules adopted by the Texas Energy and Communications [Public
Utility] Commission [of Texas].
SECTION 3.81. Section 152.255, Water Code, is amended to
read as follows:
Sec. 152.255. RECOVERABILITY OF COSTS FROM RATEPAYERS.
This subchapter does not limit the authority of the Texas Energy and
Communications [Public Utility] Commission [of Texas] to determine
the recoverability of costs from ratepayers.
SECTION 3.82. Section 152.301, Water Code, is amended to
read as follows:
Sec. 152.301. ELECTRIC TRANSMISSION SERVICES AND
FACILITIES. Notwithstanding any other law, a river authority may:
(1) provide transmission services, as defined by the
Utilities Code or the Texas Energy and Communications [Public
Utility] Commission [of Texas], on a regional basis to any eligible
transmission customer at any location within or outside the
boundaries of the river authority; and
(2) acquire, including by lease-purchase, lease from
or to any person, finance, construct, rebuild, operate, or sell
electric transmission facilities at any location within or outside
the boundaries of the river authority.
SECTION 3.83. This article takes effect September 1, 2012.
ARTICLE 4. REPEALER
SECTION 4.01. The following are repealed:
(1) Sections 12.002, 12.003, 12.004, and 12.005,
Utilities Code;
(2) Subchapters B, C, and D, Chapter 12, Utilities
Code;
(3) Section 15.029, Utilities Code;
(4) Subchapter B, Chapter 16, Utilities Code;
(5) Section 2003.049, Government Code;
(6) Section 33.2053(b), Natural Resources Code; and
(7) Section 12.013(h), Water Code.
SECTION 4.02. This article takes effect September 1, 2012.
ARTICLE 5. TRANSITION; EFFECTIVE DATE
SECTION 5.01. The Railroad Commission of Texas shall adopt
a timetable for phasing in the change of the agency's name so as to
minimize the fiscal impact of the name change. Until January 1,
2012, to allow for phasing in the change of the agency's name and in
accordance with the timetable established as required by this
section, the agency may perform any act authorized by law for the
Railroad Commission of Texas as the Railroad Commission of Texas or
as the Texas Energy and Communications Commission. Any act of the
Railroad Commission of Texas acting as the Texas Energy and
Communications Commission after the effective date of this Act and
before January 1, 2012, is an act of the Railroad Commission of
Texas.
SECTION 5.02. Except as otherwise provided by this Act,
this Act takes effect immediately if it receives a vote of
two-thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution. If this Act does not
receive the vote necessary for immediate effect, this Act takes
effect on the 91st day after the last day of the legislative
session.