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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Comm_Sub.html

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By: Nichols S.B. No. 997
(In the Senate - Filed March 3, 2021; March 18, 2021, read
first time and referred to Committee on Water, Agriculture & Rural
Affairs; April 20, 2021, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 8, Nays 0;
April 20, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 997 By: Perry

A BILL TO BE ENTITLED
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), none of the parties may challenge before the utility
commission the rate paid under the amended contract before:
(1) the fifth anniversary of the date of the contract
amendment; or
(2) a date agreed to by the parties that is after the
fifth anniversary of the date of the contract amendment.
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), none of the parties may challenge before the utility
commission the rate paid under the amended contract before:
(1) the fifth anniversary of the date of the contract
amendment; or
(2) a date agreed to by the parties that is after the
fifth anniversary of the date of the contract amendment.
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.
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