Bill Summary – FastDemocracy

   
      88(R) SB 1965 - Enrolled version - Bill Text
      
            S.B.  No.  1965
         
Statutes affected: 
Introduced: Water Code 13.301 (Water Code 13)
Senate Committee Report: Water Code 13.301 (Water Code 13)
Engrossed: Water Code 13.301 (Water Code 13)
House Committee Report: Water Code 13.301 (Water Code 13)
Enrolled: Water Code 13.301 (Water Code 13)

               AN ACT
            
            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.




	AN ACT
	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.