Bill Text: TX SB997 | 2021-2022 | 87th Legislature | Enrolled


Bill Title: Relating to procedural requirements for the review of a contractual rate charged for the furnishing of raw or treated water or water or sewer service.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2021-06-04 - Effective on 9/1/21 [SB997 Detail]

Download: Texas-2021-SB997-Enrolled.html
 
 
  S.B. No. 997
 
 
 
 
AN ACT
  relating to procedural requirements for the review of a contractual
  rate charged for the furnishing of raw or treated water or water or
  sewer service.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 12.013, Water Code, is amended by adding
  Subsections (g), (h), (i), (j), (k), and (l) to read as follows:
         (g)  In a proceeding under this section or Chapter 11 to
  review a rate charged under a written contract, the utility
  commission may not hold a hearing on or otherwise prescribe just and
  reasonable amounts to be charged under the contract unless the
  utility commission determines that the amount charged under the
  contract harms the public interest. A determination under this
  subsection becomes final for purposes of appeal in the manner
  provided by Section 2001.144, Government Code.
         (h)  A party adversely affected by a determination under
  Subsection (g) may seek judicial review of the determination.
  Judicial review of a determination under Subsection (g) shall be by
  trial de novo.
         (i)  The utility commission shall abate proceedings on the
  contract in the event of an appeal under Subsection (h) until the
  entry of a final judicial determination that a rate charged under
  the contract harms the public interest.
         (j)  Chapter 2001, Government Code, applies to an appeal
  under Subsection (h).
         (k)  The utility commission shall, before holding a hearing
  on or otherwise prescribing a just and reasonable rate to be charged
  under the contract, allow the contracting parties to amend the
  amount charged under the contract until at least 60 days after the
  date:
               (1)  of a final judicial determination in an appeal
  under Subsection (h) that a rate charged under the contract harms
  the public interest; or
               (2)  the determination made under Subsection (g) became
  final if a motion for rehearing was not filed on time.
         (l)  If the parties amend their contract under Subsection
  (k), a party may challenge before the utility commission the rate
  paid under the amended contract only:
               (1)  after the 5th anniversary of the date of the
  contract amendment; or
               (2)  during a period agreed to by the parties that
  begins after the 5th anniversary of the date of the contract
  amendment and ends on or before the 25th anniversary of that date.
         SECTION 2.  Subchapter C, Chapter 13, Water Code, is amended
  by adding Section 13.0431 to read as follows:
         Sec. 13.0431.  APPEALS BY RETAIL PUBLIC UTILITIES. (a) In
  an appeal under Section 13.043(f) on the amount paid for water or
  sewer service under a written contract, the utility commission may
  not hold a hearing on or otherwise prescribe just and reasonable
  amounts to be charged under the contract unless the utility
  commission determines that the amount charged under the contract
  harms the public interest. A determination under this subsection
  becomes final for purposes of appeal in the manner provided by
  Section 2001.144, Government Code.
         (b)  A party adversely affected by a determination under
  Subsection (a) may seek judicial review of the determination.
  Judicial review of a determination under Subsection (a) shall be by
  trial de novo.
         (c)  The utility commission shall abate proceedings on the
  contract in the event of an appeal under Subsection (b) until the
  entry of a final judicial determination that a rate charged under
  the contract harms the public interest.
         (d)  Chapter 2001, Government Code, applies to an appeal
  under Subsection (b).
         (e)  The utility commission shall, before holding a hearing
  on or otherwise prescribing a just and reasonable rate to be charged
  under the contract, allow the contracting parties to amend the
  amount charged under the contract until at least 60 days after the
  date:
               (1)  of a final judicial determination in an appeal
  under Subsection (b) that a rate charged under the contract harms
  the public interest; or
               (2)  the determination made under Subsection (a) became
  final if a motion for rehearing was not filed on time.
         (f)  If the parties amend their contract under Subsection
  (e), a party may challenge before the utility commission the rate
  paid under the amended contract only:
               (1)  after the 5th anniversary of the date of the
  contract amendment; or
               (2)  during a period agreed to by the parties that
  begins after the 5th anniversary of the date of the contract
  amendment and ends on or before the 25th anniversary of that date.
         SECTION 3.  The changes in law made by this Act apply only to
  a rate proceeding under Chapter 11, 12, or 13, Water Code, that
  begins on or after the effective date of this Act. A rate
  proceeding that begins before the effective date of this Act is
  governed by the law in effect on the date the rate proceeding began,
  and the former law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2021.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 997 passed the Senate on
  April 27, 2021, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 997 passed the House on
  May 19, 2021, by the following vote:  Yeas 143, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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