Bill Text: TX SB1310 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the procedure for amending or revoking certificates of public convenience and necessity issued to certain water utilities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-07 - Referred to Water & Rural Affairs [SB1310 Detail]
Download: Texas-2019-SB1310-Introduced.html
86R5758 JXC-D | ||
By: Hinojosa | S.B. No. 1310 |
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relating to the procedure for amending or revoking certificates of | ||
public convenience and necessity issued to certain water utilities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 13.254, Water Code, is amended to read as | ||
follows: | ||
Sec. 13.254. REVOCATION OR AMENDMENT OF CERTIFICATE. (a) | ||
The utility commission at any time after notice and hearing may | ||
revoke or amend any certificate of public convenience and | ||
necessity: | ||
(1) with the written consent of the certificate | ||
holder; or | ||
(2) if the utility commission finds that: | ||
(A) [ |
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provided, is no longer providing, is incapable of providing, or has | ||
failed to provide continuous and adequate service in the area, or | ||
part of the area, covered by the certificate; | ||
(B) [ |
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Section 16.341, the cost of providing service by the certificate | ||
holder is so prohibitively expensive as to constitute denial of | ||
service, provided that, for commercial developments or for | ||
residential developments started after September 1, 1997, in an | ||
affected county as defined in Section 16.341, the fact that the cost | ||
of obtaining service from the currently certificated retail public | ||
utility makes the development economically unfeasible does not | ||
render such cost prohibitively expensive in the absence of other | ||
relevant factors; | ||
(C) [ |
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writing to allow another retail public utility to provide service | ||
within its service area, except for an interim period, without | ||
amending its certificate; or | ||
(D) [ |
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file a cease and desist action pursuant to Section 13.252 within 180 | ||
days of the date that it became aware that another retail public | ||
utility was providing service within its service area, unless the | ||
certificate holder demonstrates good cause for its failure to file | ||
such action within the 180 days. | ||
(b) For a proceeding under Subsection (a) in which another | ||
retail public utility proposes to provide service in the | ||
decertified area and the certificate holder has not agreed to the | ||
decertification, the utility commission shall issue an initial | ||
order to revoke or amend the certificate and follow the process in | ||
this section to require that the alternate retail public utility | ||
provide compensation to the certificate holder. | ||
(c) [ |
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Subsection (a), the owner of a tract of land that is at least 50 | ||
acres and that is not in a platted subdivision actually receiving | ||
water or sewer service may petition the utility commission under | ||
this subsection for expedited release of the area from a | ||
certificate of public convenience and necessity so that the area | ||
may receive service from another retail public utility. The fact | ||
that a certificate holder is a borrower under a federal loan program | ||
is not a bar to a request under this subsection for the release of | ||
the petitioner's land and the receipt of services from an | ||
alternative provider. [ |
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demonstrate in the petition that: | ||
(1) a written request for service, other than a | ||
request for standard residential or commercial service, has been | ||
submitted to the certificate holder, identifying: | ||
(A) the area for which service is sought; | ||
(B) the timeframe within which service is needed | ||
for current and projected service demands in the area; | ||
(C) the level and manner of service needed for | ||
current and projected service demands in the area; | ||
(D) the approximate cost for the alternative | ||
provider to provide the service at the same level and manner that is | ||
requested from the certificate holder; | ||
(E) the flow and pressure requirements and | ||
specific infrastructure needs, including line size and system | ||
capacity for the required level of fire protection requested; and | ||
(F) any additional information requested by the | ||
certificate holder that is reasonably related to determination of | ||
the capacity or cost for providing the service; | ||
(2) the certificate holder has been allowed at least | ||
90 calendar days to review and respond to the written request and | ||
the information it contains; | ||
(3) the certificate holder: | ||
(A) has refused to provide the service; | ||
(B) is not capable of providing the service on a | ||
continuous and adequate basis within the timeframe, at the level, | ||
at the approximate cost that the alternative provider is capable of | ||
providing for a comparable level of service, or in the manner | ||
reasonably needed or requested by current and projected service | ||
demands in the area; or | ||
(C) conditions the provision of service on the | ||
payment of costs not properly allocable directly to the | ||
petitioner's service request, as determined by the utility | ||
commission; and | ||
(4) the alternate retail public utility from which the | ||
petitioner will be requesting service possesses the financial, | ||
managerial, and technical capability to provide continuous and | ||
adequate service within the timeframe, at the level, at the cost, | ||
and in the manner reasonably needed or requested by current and | ||
projected service demands in the area. | ||
(d) A landowner who intends to file a petition under | ||
Subsection (c) shall provide to the certificate holder notice of | ||
the landowner's intent to file the petition at least 30 days before | ||
the date the landowner files the petition. The notice must specify | ||
the tract of land to be decertified. On the day the landowner | ||
submits the petition to the utility commission under Subsection | ||
(c), the landowner by certified mail shall send a copy of the | ||
petition to the certificate holder. The certificate holder may | ||
submit to the utility commission information to controvert | ||
information submitted by the landowner. | ||
(e) [ |
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described in Subsection (c) [ |
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to contest under Subsection (a) the involuntary certification of | ||
its property in a hearing held by the utility commission if the | ||
landowner's property is located: | ||
(1) within the boundaries of any municipality or the | ||
extraterritorial jurisdiction of a municipality with a population | ||
of more than 500,000 and the municipality or retail public utility | ||
owned by the municipality is the holder of the certificate; or | ||
(2) in a platted subdivision actually receiving water | ||
or sewer service. | ||
(f) Not later than the 60th day after [ |
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administratively complete, the utility commission shall issue an | ||
initial order granting [ |
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commission makes an express finding that the petitioner failed to | ||
satisfy the elements required in Subsection (c) [ |
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supports its finding with separate findings and conclusions for | ||
each element based solely on the information provided by the | ||
petitioner and the certificate holder. The utility commission may | ||
grant or deny a petition subject to terms and conditions | ||
specifically related to the service request of the petitioner and | ||
all relevant information submitted by the petitioner and the | ||
certificate holder. [ |
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(g) [ |
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a [ |
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of the utility commission on the petition is final after any | ||
reconsideration authorized by the utility commission's rules and | ||
may not be appealed. | ||
(h) [ |
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Subsection (a) and expedited release under Subsection (c) [ |
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the owner of a tract of land that is at least 25 acres and that is | ||
not receiving water or sewer service may petition for expedited | ||
release of the area from a certificate of public convenience and | ||
necessity and is entitled to that release if the landowner's | ||
property: | ||
(1) is located in a county: | ||
(A) with a population of at least one million or | ||
that is[ |
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least one million; or | ||
(B) [ |
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200,000 and less than 220,000 that does not contain a public or | ||
private university that had a total enrollment in the most recent | ||
fall semester of 40,000 or more; and | ||
(2) is not located[ |
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population of more than 45,500 and less than 47,500. | ||
(i) A landowner who intends to file a petition under | ||
Subsection (h) shall provide to the certificate holder notice of | ||
the landowner's intent to file the petition at least 30 days before | ||
the date the landowner files the petition. The notice must specify | ||
the tract of land to be decertified. | ||
(j) [ |
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order granting [ |
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files the petition. The utility commission may not deny a petition | ||
received under Subsection (h) [ |
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certificate holder is a borrower under a federal loan program. [ |
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(k) A [ |
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of intent provided to each landowner or ratepayer a notice of: | ||
(1) a proceeding under this section related to | ||
certification or decertification; | ||
(2) the reason or reasons for the proposed rate | ||
change; and | ||
(3) any bill payment assistance program available to | ||
low-income ratepayers. | ||
(l) [ |
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available through planning, design, construction of facilities, or | ||
contractual obligations to serve the area a petitioner seeks to | ||
have released under Subsection (c) [ |
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is not required to find that the proposed alternative provider is | ||
capable of providing better service than the certificate holder, | ||
but only that the proposed alternative provider is capable of | ||
providing the requested service. | ||
(m) [ |
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county: | ||
(1) that borders the United Mexican States and the | ||
Gulf of Mexico or a county adjacent to a county that borders the | ||
United Mexican States and the Gulf of Mexico; | ||
(2) [ |
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than 35,000 that borders the Red River; | ||
(3) [ |
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than 200,000 that borders a county described by Subdivision (2); | ||
(4) [ |
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adjacent to a county with a population of 1.5 million or more that | ||
is within 200 miles of an international border; or | ||
(5) [ |
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less than 50,000 that contains a portion of the San Antonio River. | ||
(n) [ |
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the utility commission may cancel the certificate of a utility or | ||
water supply corporation authorized by rule to operate without a | ||
certificate of public convenience and necessity under Section | ||
13.242(c). | ||
(o) [ |
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revoked or amended under this section, the utility commission may | ||
require one or more retail public utilities with their consent to | ||
provide service in the decertified area [ |
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order of the utility commission issued under this subsection shall | ||
not be effective to transfer property. | ||
(p) In an initial order issued under Subsection (b), (f), or | ||
(j), the utility commission shall require the certificate holder, | ||
not later than the 20th day after the date the order is issued, to | ||
submit to the utility commission and, as applicable, the petitioner | ||
and any retail public utility that intends to provide service to the | ||
decertified area the following information, which must be current | ||
as of the date the information is provided: | ||
(1) the number of potable water connections the | ||
certificate holder could have served in the decertified area at a | ||
density of one connection per acre while maintaining 0.6 gallons | ||
per minute of potable water supply to each connection with the | ||
groundwater supply, surface water supply, and treated water | ||
purchase contract supply available to the certificate holder; | ||
(2) the number of wastewater connections the | ||
certificate holder could have served in the decertified area at a | ||
density of one connection per acre while maintaining 200 gallons | ||
per day of wastewater treatment capacity to each connection with | ||
the combined wastewater treatment plant capacity and wastewater | ||
treatment wholesale contract capacity available to the certificate | ||
holder; | ||
(3) the certificate holder's base monthly retail rate; | ||
and | ||
(4) any additional supporting evidence or | ||
documentation for the information described by Subdivision (1), | ||
(2), or (3) if required by the utility commission. | ||
(q) Not later than the 30th day after the date the utility | ||
commission receives the information required to be submitted under | ||
Subsection (p), the utility commission shall issue a second order | ||
requiring that just and adequate compensation be paid to the | ||
certificate holder and establishing the amount of compensation. | ||
Compensation is just and adequate if the compensation is in an | ||
amount equal to the certificate holder's base monthly retail rate | ||
multiplied by the number of water and wastewater connections the | ||
certificate holder could have served in the decertified area for a | ||
period of 10 years. For an area decertified under Subsection (a), | ||
the alternate retail public utility that intends to serve the area | ||
shall pay the compensation. For an area decertified under | ||
Subsection (c) or (h), the petitioner shall pay the compensation. | ||
(r) Notwithstanding Subsection (q), the retail public | ||
utility or petitioner may, before the date the utility commission | ||
is authorized to issue a second order under Subsection (q), request | ||
that the utility commission notify the retail public utility or | ||
petitioner of the amount of compensation the utility commission | ||
intends to order and request a hearing on the issue of compensation | ||
before the utility commission to be held before the second order may | ||
be issued. The utility commission is not required to hold the | ||
hearing unless the requestor deposits the amount of compensation | ||
the utility commission intends to order into the registry of the | ||
district court of Travis County, pending the outcome of the | ||
hearing. | ||
(s) The utility commission shall conduct a hearing under | ||
Subsection (r) not later than the 60th day after the date of the | ||
request. At the hearing, the utility commission shall consider | ||
evidence relating to all information submitted under Subsection | ||
(p). The utility commission shall issue the second order after the | ||
hearing. | ||
(t) When compensation has been paid according to the | ||
requirements of the second order, the utility commission shall | ||
issue a third order to finalize the decertification of the retail | ||
public utility. The third order must be made effective as of the | ||
date the compensation is paid. | ||
(u) [ |
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certificated service area in accordance with this section may not | ||
be required, after the land is removed, to provide service to the | ||
removed land for any reason, including the violation of law or | ||
utility commission or commission rules by a water or sewer system of | ||
another person. | ||
SECTION 2. The changes in law made by this Act apply only to | ||
a proceeding affecting a certificate of public convenience and | ||
necessity that commences on or after the effective date of this Act. | ||
A proceeding affecting a certificate of public convenience and | ||
necessity that commenced before the effective date of this Act is | ||
governed by the law in effect on the date the proceeding is | ||
commenced, and that law is continued in effect for that purpose. | ||
SECTION 3. This Act takes effect September 1, 2019. |