Bill Text: TX HB4241 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to providing services for or acquiring certain water utilities and establishing related rates.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-25 - Referred to State Affairs [HB4241 Detail]
Download: Texas-2019-HB4241-Introduced.html
86R14148 JXC-F | ||
By: Wray | H.B. No. 4241 |
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relating to providing services for or acquiring certain water | ||
utilities and establishing related rates. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 13.043, Water Code, is amended by adding | ||
Subsection (b-4) to read as follows: | ||
(b-4) Notwithstanding Subsection (b), ratepayers described | ||
by that subsection may not appeal to the utility commission the | ||
decision of the governing body of the entity affecting their water, | ||
drainage, or sewer rates if the decision relates to a rate charged | ||
to recover the costs associated with the acquisition of a | ||
nonfunctioning system, as defined by Section 13.4134. | ||
SECTION 2. Section 13.046, Water Code, is transferred to | ||
Subchapter K, Chapter 13, Water Code, redesignated as Section | ||
13.4134, and amended to read as follows: | ||
Sec. 13.4134 [ |
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PROVIDED FOR NONFUNCTIONING SYSTEM; SANCTIONS FOR NONCOMPLIANCE. | ||
(a) In this section, "nonfunctioning system" means a system that is | ||
operating as a retail public utility and: | ||
(1) does not have a required certificate of | ||
convenience and necessity; | ||
(2) is under the supervision of the utility commission | ||
in the manner provided by Section 13.4131; or | ||
(3) is under the supervision of a receiver or | ||
temporary manager or has been referred for the appointment of a | ||
temporary manager or receiver in the manner provided by Section | ||
13.412 or 13.4132. | ||
(b) The utility commission by rule shall establish a | ||
procedure that allows a retail public utility that takes over the | ||
provision of services for a nonfunctioning system or acquires a | ||
nonfunctioning system [ |
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the customers of the nonfunctioning system and to bill the | ||
customers for the services at that rate immediately to recover | ||
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(c) [ |
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that the retail public utility that takes over the provision of | ||
services for or acquires the nonfunctioning system may use to apply | ||
to the utility commission for a ruling on the reasonableness of the | ||
rates the utility is charging under Subsection (b) [ |
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process must allow for adequate consideration of costs for | ||
interconnection or other costs incurred in making services | ||
available or during the acquisition and of the costs that may | ||
necessarily be incurred to bring the nonfunctioning system into | ||
compliance with utility commission and commission rules. | ||
(d) A rate process under this section is an uncontested | ||
matter and is not a rate case. Sections 13.187, 13.1871, and 13.1872 | ||
do not apply to a rate process under this section. However, the | ||
utility commission shall hold a public meeting to provide | ||
information on the rate process: | ||
(1) on the request of a member of the legislature who | ||
represents the area formerly served by the nonfunctioning system; | ||
or | ||
(2) if the utility commission determines that there is | ||
substantial public interest in the matter. | ||
(e) [ |
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provide a reasonable period for the retail public utility that | ||
takes over the nonfunctioning system to bring the nonfunctioning | ||
system into compliance with utility commission and commission rules | ||
during which the utility commission or the commission may not | ||
impose a penalty for any deficiency in the system that is present at | ||
the time the utility takes over the nonfunctioning system. The | ||
utility commission and the commission must consult with the utility | ||
before determining the period and may grant an extension of the | ||
period for good cause. | ||
(f) During the period described by Subsection (e), the | ||
retail public utility that provides services for or acquires the | ||
nonfunctioning system shall report to the utility commission, in | ||
the manner and frequency specified by the utility commission, the | ||
retail public utility's progress in bringing the nonfunctioning | ||
system into compliance with the utility commission's financial, | ||
managerial, and technical standards. | ||
SECTION 3. Section 15.971, Water Code, is amended by adding | ||
Subdivision (3-a) to read as follows: | ||
(3-a) "Nonfunctioning system" has the meaning | ||
assigned by Section 13.4134. | ||
SECTION 4. Section 15.973(a), Water Code, is amended to | ||
read as follows: | ||
(a) The water infrastructure fund is a special fund in the | ||
state treasury to be administered by the board under this | ||
subchapter and rules adopted by the board under this subchapter. | ||
Money in the fund may be used to pay: | ||
(1) for the implementation of water projects | ||
recommended through the state and regional water planning processes | ||
under Sections 16.051 and 16.053; and | ||
(2) costs related to the acquisition of a | ||
nonfunctioning system by a retail public utility that will take | ||
over the provision of services for the system. | ||
SECTION 5. The heading to Section 15.974, Water Code, is | ||
amended to read as follows: | ||
Sec. 15.974. USE OF WATER INFRASTRUCTURE FUND FOR PROJECTS. | ||
SECTION 6. Subchapter Q, Chapter 15, Water Code, is amended | ||
by adding Section 15.9741 to read as follows: | ||
Sec. 15.9741. USE OF WATER INFRASTRUCTURE FUND FOR | ||
ACQUISITION OF NONFUNCTIONING SYSTEMS. The board may use the fund | ||
in accordance with board rules to provide a grant, low-interest | ||
loan, or zero-interest loan to a retail public utility to pay for: | ||
(1) an interconnection between the retail public | ||
utility and a nonfunctioning system; and | ||
(2) costs associated with bringing the nonfunctioning | ||
system into compliance with all applicable financial, managerial, | ||
and technical standards. | ||
SECTION 7. Section 15.975(a), Water Code, is amended to | ||
read as follows: | ||
(a) On review and recommendation by the executive | ||
administrator, the board by resolution may approve an application | ||
only if the board finds that[ |
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meet the requirements of this subchapter and board rules. For an | ||
application related to a project, the board must also find that: | ||
(1)[ |
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taxes, pledged by the applicant will be sufficient to meet all the | ||
obligations assumed by the political subdivision for the project; | ||
and | ||
(2) [ |
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manner consistent with the state and regional water plans as | ||
required by Section 16.053(j), unless otherwise specified by an act | ||
of the legislature. | ||
SECTION 8. Section 15.976, Water Code, is amended to read as | ||
follows: | ||
Sec. 15.976. APPLICABLE LAW. Subchapter E, Chapter 17, | ||
applies to financial assistance made available from the fund for a | ||
project, except that the board may also execute contracts as | ||
necessary to evidence grant agreements. | ||
SECTION 9. This Act takes effect September 1, 2019. |