S.B. No. 1358

	AN ACT
	relating to procedures for imposing certain administrative
	penalties or disgorgement orders by the Public Utility Commission
	of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 15.024, Utilities Code, is amended by
	amending Subsections (b), (e), and (f) and adding Subsection (b-1)
	to read as follows:
	(b)  Not later than the 14th day after the date the report is
	issued, the executive director shall give written notice of the
	report to the person against whom the penalty may be assessed. The
	notice may be given by regular or certified mail. The notice must:
	(1)  include a brief summary of the alleged violation;
	(2)  state the amount of the recommended penalty; and
	(3)  inform the person that the person has a right to a
	hearing on the occurrence of the violation, the amount of the
	penalty, or both the occurrence of the violation and the amount of
	the penalty.
	(b-1)  If the commission sends written notice to a person by
	mail addressed to the person's mailing address as maintained in the
	commission's records, the person is deemed to have received notice:
	(1)  on the fifth day after the date that the commission
	sent the written notice, for notice sent by regular mail; or
	(2)  on the date the written notice is received or
	delivery is refused, for notice sent by certified mail.
	(e)  If the person accepts the executive director's
	determination and recommended penalty or fails to timely respond to
	the notice, the commission by order shall approve the determination
	and impose the recommended penalty or order a hearing on the
	determination and the recommended penalty.
	(f)  If the person requests a hearing or the commission
	orders a hearing under Subsection (e) [fails to timely respond to
	the notice], the commission [executive director] shall refer the
	matter to the State Office of Administrative Hearings for [set] a
	hearing and give notice of the referral [hearing] to the person.
	The parties to a proceeding under this subchapter shall be limited
	to the person and the commission, including the independent market
	monitor.  The hearing shall be held by an administrative law judge
	of the State Office of Administrative Hearings and notice of the
	hearing must be provided in accordance with Chapter 2001,
	Government Code.  The administrative law judge shall make findings
	of fact and conclusions of law and promptly issue to the commission
	a proposal for a decision about the occurrence of the violation and
	the amount of a proposed penalty.  Based on the findings of fact,
	conclusions of law, and proposal for a decision, the commission by
	order may find that a violation has occurred and impose a penalty or
	disgorgement order or may find that no violation occurred.
	SECTION 2.  The changes in law made by this Act apply only to
	the procedures for an administrative penalty or disgorgement order
	for which a written notice is given under Section 15.024(b),
	Utilities Code, on or after the effective date of this Act.  Those
	procedures for a penalty or order for which a written notice is
	given before the effective date of this Act are governed by the law
	in effect on the date the notice is given, and the former law is
	continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1358 passed the Senate on
	April 11, 2019, by the following vote:  Yeas 30, Nays 1.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1358 passed the House on
	May 3, 2019, by the following vote:  Yeas 140, Nays 0, two present
	not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor