85R3435 DDT-F     By: Garcia S.B. No. 1115       A BILL TO BE ENTITLED   AN ACT   relating to the revocation of certain water utilities' certificate   of public convenience and necessity for major rules violations.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter G, Chapter 13, Water Code, is amended   by adding Section 13.2541 to read as follows:          Sec. 13.2541.  APPOINTMENT OF TEMPORARY MANAGER. (a)   Utility commission staff shall file a petition to appoint a   temporary manager of an investor-owned water utility if the staff   has reason to believe:                (1)  the utility has repeated or continuous violations   of commission rules or of the commission's predecessor agency rules   regarding well capacity, storage tank capacity, service pump   capacity, or pressure tank capacity for at least six years before   the petition is filed;                (2)  neither an owner of the utility nor the utility has   borrowed money from a federally insured lending institution to   remedy a violation of a rule described by Subdivision (1);                (3)  the utility serves more than 1,000 connections but   is made up of less than five public water systems;                (4)  the utility does not serve customers who are   located in a municipality; and                (5)  the utility is located in a county with a   population of more than 2.7 million.          (b)  If, after notice and an opportunity for a hearing, the   utility commission finds that the facts alleged in the petition are   true, the utility commission may appoint a temporary manager and   may also refer the investor-owned utility to the attorney general   for the appointment of a receiver under Section 13.412. The utility   commission shall issue its final order not more than 180 days after   the date the petition is filed.          (c)  If the utility commission appoints a temporary manager,   the manager shall have all the power and authority provided by   Section 13.4132(c). Not more than 120 days after the appointment of   the manager, the manager shall recommend to the utility commission   whether or not the utility's certificate should be revoked. If the   manager recommends revocation, the manager shall recommend one or   more retail public utilities that could provide service to the   certificated area.          (d)  If a court appoints a receiver for the utility, the   temporary manager's appointment ends when the receiver executes the   bond required by Section 13.412. The temporary manager is eligible   to be appointed as the receiver.          (e)  Not more than 90 days after the appointment of a   receiver by the court, the receiver shall recommend to the utility   commission whether or not the utility's certificate of convenience   and necessity should be revoked. If the receiver recommends   revocation, the receiver shall recommend one or more retail public   utilities that could provide service to the certificated area. The   receiver may recommend any other remedy authorized by this chapter.          (f)  If the receiver recommends revocation, the utility   commission staff shall file a petition to revoke the certificate of   convenience and necessity under Section 13.254.          SECTION 2.  This Act takes effect September 1, 2017.