Bill Text: TX SB1526 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the revocation of certain water utilities' certificate of public convenience and necessity for major rules violations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-23 - Referred to Natural Resources & Economic Development [SB1526 Detail]
Download: Texas-2015-SB1526-Introduced.html
84R7787 DDT-F | ||
By: Garcia | S.B. No. 1526 |
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relating to the revocation of certain water utilities' certificate | ||
of public convenience and necessity for major rules violations. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter G, Chapter 13, Water Code, is amended | ||
by adding Section 13.2541 to read as follows: | ||
Sec. 13.2541. REVOCATION OF CERTIFICATE FOR CERTAIN MAJOR | ||
VIOLATORS. (a) Utility commission staff shall file a petition to | ||
revoke an investor-owned water utility's certificate of public | ||
convenience and necessity if the staff has reason to believe: | ||
(1) the utility has committed repeated or continuous | ||
major violations of one or more commission rules related to safe | ||
drinking water for at least six years before the petition is filed; | ||
(2) none of the owners of the utility have borrowed | ||
money from a federally insured lending institution to use to remedy | ||
a violation of one or more commission rules related to safe drinking | ||
water; | ||
(3) the utility serves more than 1,000 connections but | ||
is made up of less than five public water systems; | ||
(4) the utility does not serve customers who are | ||
located in a municipality; and | ||
(5) the utility is located in a county with a | ||
population of more than four million. | ||
(b) If, after notice and hearing, the utility commission | ||
finds that the facts alleged in the petition are true, the utility | ||
commission shall revoke the investor-owned water utility's | ||
certificate on or before the 90th day after the date the petition is | ||
filed. | ||
(c) At the time the utility commission revokes the | ||
certificate it shall appoint a temporary manager and temporarily | ||
transfer the certificate to the temporary manager. The temporary | ||
manager has all the powers necessary to operate and manage the | ||
utility until the utility commission certifies another retail | ||
public utility. | ||
(d) Not more than 12 months after the date the utility | ||
commission appoints a temporary manager under Subsection (c), the | ||
utility commission shall offer at auction any property that the | ||
utility commission determines is rendered useless or valueless to | ||
the decertified investor-owned water utility as a result of the | ||
decertification. | ||
(e) Any person, including public and private water | ||
utilities and the temporary manager appointed under Subsection (c), | ||
may apply for approval to bid on the decertified utility's assets | ||
and property. The utility commission shall review each application | ||
and approve applicants that it determines have the financial, | ||
managerial, and technical ability to provide safe, adequate, and | ||
continuous water service to the decertified utility's customers. | ||
Only approved applicants may bid in the auction. The utility | ||
commission shall request proposals from all approved bidders. | ||
(f) Before the auction, the utility commission and the | ||
decertified utility shall: | ||
(1) make the books and records of the decertified | ||
utility available to all approved bidders; and | ||
(2) provide an opportunity for all approved bidders to | ||
inspect the decertified utility's assets and property. | ||
(g) Each bid must: | ||
(1) estimate the rates the bidder would charge for | ||
service during the first five years following the date of the sale; | ||
and | ||
(2) agree that the bidder, if the bidder purchases the | ||
assets and property, will seek funds available under the board's | ||
safe drinking water revolving fund for improvements to remedy and | ||
prevent damages from previous violations of commission rules | ||
related to safe drinking water. | ||
(h) The utility commission shall, upon completion of the | ||
sale to the selected bidder, transfer the certificate of public | ||
convenience and necessity from the temporary manager to the | ||
selected bidder. | ||
SECTION 2. This Act takes effect September 1, 2015. |