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