89R15369 ANG-F     By: Harris H.B. No. 5559       A BILL TO BE ENTITLED   AN ACT   relating to the enforcement of drought contingency plans by water   and sewer utilities and the Public Utility Commission of Texas.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 13.041(a), Water Code, is amended to   read as follows:          (a)  The utility commission may regulate and supervise the   tariffs and business of each water and sewer utility within its   jurisdiction, including ratemaking and other economic regulation.     The commission may regulate water and sewer utilities within its   jurisdiction to ensure safe drinking water and environmental   protection.  The utility commission and the commission may do all   things, whether specifically designated in this chapter or implied   in this chapter, necessary and convenient to the exercise of these   powers and jurisdiction.  The utility commission may consult with   the commission as necessary in carrying out its duties related to   the regulation of water and sewer utilities.          SECTION 2.  Section 13.042(a), Water Code, is amended to   read as follows:          (a)  Subject to the limitations imposed in this chapter and   for the purpose of regulating rates and services so that those rates   may be fair, just, and reasonable and the services adequate and   efficient, the governing body of each municipality has exclusive   original jurisdiction over all water and sewer utility rates,   tariffs, operations, and services provided by a water and sewer   utility within its corporate limits.          SECTION 3.  Section 13.136(a), Water Code, is amended to   read as follows:          (a)  Every utility shall file with each regulatory authority   tariffs showing all rates that are subject to the original or   appellate jurisdiction of the regulatory authority and that are in   force at the time for any utility service, product, or commodity   offered.  Every utility shall file with and as a part of those   tariffs all rules and regulations relating to or affecting the   rates, utility service, product, or commodity furnished, including   the utility's drought contingency plan required by the commission.          SECTION 4.  Sections 13.250(b) and (d), Water Code, are   amended to read as follows:          (b)  Unless the utility commission issues a certificate that   neither the present nor future convenience and necessity will be   adversely affected, the holder of a certificate or a person who   possesses facilities used to provide utility service shall not   discontinue, reduce, or impair service to a certified service area   or part of a certified service area except for:                (1)  nonpayment of charges for services provided by the   certificate holder or a person who possesses facilities used to   provide utility service;                (2)  nonpayment of charges for sewer service provided   by another retail public utility under an agreement between the   retail public utility and the certificate holder or a person who   possesses facilities used to provide utility service or under a   utility commission-ordered arrangement between the two service   providers;                (3)  compliance with a drought contingency plan;                (4)  nonuse; or                (5) [(4)]  other similar reasons in the usual course of   business.          (d)  Except as provided by this subsection, a retail public   utility that has not been granted a certificate of public   convenience and necessity may not discontinue, reduce, or impair   retail water or sewer service to any ratepayer without approval of   the regulatory authority.  Except as provided by this subsection, a   utility or water supply corporation that is allowed to operate   without a certificate of public convenience and necessity under   Section 13.242(c) may not discontinue, reduce, or impair retail   water or sewer service to any ratepayer without the approval of the   regulatory authority.  Subject to rules of the regulatory   authority, a retail public utility, utility, or water supply   corporation described in this subsection may discontinue, reduce,   or impair retail water or sewer service for:                (1)  nonpayment of charges;                (2)  compliance with a drought contingency plan;                (3)  nonuse; or                (4) [(3)]  other similar reasons in the usual course of   business.          SECTION 5.  Section 11.1272, Water Code, is amended by   amending Subsections (c), (d), and (e) and adding Subsection (c-1)   to read as follows:          (c)  A [By May 1, 2005, a] drought contingency plan required   by commission rule adopted under this section must include:                (1)  specific, quantified targets for water use   reductions to be achieved during periods of water shortages and   drought; and                (2)  procedures for the enforcement of mandatory water   use restrictions, including fines, water rate surcharges,   restriction of service, discontinuation of service, or any other   penalty.          (c-1)  The entity preparing the drought contingency plan   shall establish the targets and enforcement procedures required   under Subsection (c).          (d)  The commission, the utility commission, and the board by   joint rule shall identify quantified target goals for drought   contingency plans that wholesale and retail public water suppliers,   irrigation districts, and other entities may use as guidelines in   preparing drought contingency plans.  Goals established under this   subsection are not enforceable requirements.          (e)  The commission, the utility commission, and the board   jointly shall develop and update at least once every five years   model drought contingency programs for different types of water   suppliers that suggest best management practices for accomplishing   the highest practicable levels of water use reductions achievable   during periods of water shortages and drought for each specific   type of water supplier.          SECTION 6.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.