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