UTILITIES CODE
CHAPTER 12. ORGANIZATION OF COMMISSION
SUBCHAPTER A. GENERAL PROVISIONS
§ 12.001. PUBLIC UTILITY COMMISSION OF TEXAS. The
Public Utility Commission of Texas exercises the jurisdiction and
powers conferred by this title.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.002. OFFICE. (a) The principal office of the
commission is in Austin.
(b) The office shall be open daily during usual business
hours. The office is not required to be open on Saturday, Sunday,
or a legal holiday.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.003. SEAL. (a) The commission has a seal bearing
the inscription: "Public Utility Commission of Texas."
(b) The seal shall be affixed to each record and to an
authentication of a copy of a record. The commission may require
the seal to be affixed to other instruments.
(c) A court of this state shall take judicial notice of the
seal.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.004. REPRESENTATION BY THE ATTORNEY GENERAL. The
attorney general shall represent the commission in a matter before
a state court, a court of the United States, or a federal public
utility regulatory commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.005. APPLICATION OF SUNSET ACT. The Public Utility
Commission of Texas is subject to Chapter 325, Government Code
(Texas Sunset Act). Unless continued in existence as provided by
that chapter or by Chapter 39, the commission is abolished and this
title expires September 1, 2005.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 405, § 2, eff. Sept. 1, 1999; Acts
1999, 76th Leg., ch. 1212, § 1, eff. Sept. 1, 1999.
SUBCHAPTER B. COMMISSION APPOINTMENT AND FUNCTIONS
§ 12.051. APPOINTMENT; TERM. (a) The commission is
composed of three commissioners appointed by the governor with the
advice and consent of the senate.
(b) An appointment to the commission shall be made without
regard to the race, color, disability, sex, religion, age, or
national origin of the appointee.
(c) Commissioners serve staggered, six-year terms.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.052. PRESIDING OFFICER. (a) The governor shall
designate a commissioner as the presiding officer.
(b) The presiding officer serves in that capacity at the
pleasure of the governor.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.053. MEMBERSHIP QUALIFICATIONS. (a) To be
eligible for appointment, a commissioner must be:
(1) a qualified voter;
(2) a citizen of the United States; and
(3) a representative of the general public.
(b) A person is not eligible for appointment as a
commissioner if the person:
(1) at any time during the two years preceding
appointment:
(A) personally served as an officer, director,
owner, employee, partner, or legal representative of a public
utility, affiliate, or direct competitor of a public utility; or
(B) owned or controlled, directly or indirectly,
stocks or bonds of any class with a value of $10,000 or more in a
public utility, affiliate, or direct competitor of a public
utility; or
(2) is not qualified to serve under Section 12.151,
12.152, or 12.153.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.054. REMOVAL OF COMMISSIONER. (a) It is a ground
for removal from the commission if a commissioner:
(1) does not have at the time of appointment or
maintain during service on the commission the qualifications
required by Section 12.053;
(2) violates a prohibition provided by Section 12.053
or by Subchapter D;
(3) cannot discharge the commissioner's duties for a
substantial part of the term for which the commissioner is
appointed because of illness or disability; or
(4) is absent from more than half of the regularly
scheduled commission meetings that the commissioner is eligible to
attend during a calendar year unless the absence is excused by
majority vote of the commission.
(b) The validity of an action of the commission is not
affected by the fact that the action is taken when a ground for
removal of a commissioner exists.
(c) If the executive director has knowledge that a potential
ground for removal exists, the executive director shall notify the
presiding officer of the commission of the potential ground. The
presiding officer shall then notify the governor and the attorney
general that a potential ground for removal exists. If the
potential ground for removal involves the presiding officer, the
executive director shall notify the next highest officer of the
commission, who shall notify the governor and the attorney general
that a potential ground for removal exists.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.055. PROHIBITION ON SEEKING ANOTHER OFFICE. A
person may not seek nomination or election to another civil office
of this state or of the United States while serving as a
commissioner. If a commissioner files for nomination or election
to another civil office of this state or of the United States, the
person's office as commissioner immediately becomes vacant, and the
governor shall appoint a successor.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.056. EFFECT OF VACANCY. A vacancy or
disqualification does not prevent the remaining commissioner or
commissioners from exercising the powers of the commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.057. COMPENSATION. The annual salary of the
commissioners is determined by the legislature.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.058. MEETINGS. The commission shall hold meetings
at its office and at other convenient places in this state as
expedient and necessary for the proper performance of the
commission's duties.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.059. TRAINING PROGRAM FOR
COMMISSIONERS. (a) Before a commissioner may assume the
commissioner's duties and before the commissioner may be confirmed
by the senate, the commissioner must complete at least one course of
the training program established under this section.
(b) A training program established under this section shall
provide information to the commissioner regarding:
(1) the enabling legislation that created the
commission and its policymaking body to which the commissioner is
appointed to serve;
(2) the programs operated by the commission;
(3) the role and functions of the commission;
(4) the rules of the commission with an emphasis on the
rules that relate to disciplinary and investigatory authority;
(5) the current budget for the commission;
(6) the results of the most recent formal audit of the
commission;
(7) the requirements of Chapters 551, 552, and 2001,
Government Code;
(8) the requirements of the conflict of interest laws
and other laws relating to public officials; and
(9) any applicable ethics policies adopted by the
commission or the Texas Ethics Commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER C. COMMISSION PERSONNEL
§ 12.101. COMMISSION EMPLOYEES. The commission shall
employ:
(1) an executive director; and
(2) officers and other employees the commission
considers necessary to administer this title.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 405, § 3, eff. Sept. 1, 1999.
§ 12.102. DUTIES OF EMPLOYEES. The commission shall
develop and implement policies that clearly define the respective
responsibilities of the commission and commission employees.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.103. DUTIES OF EXECUTIVE DIRECTOR. The executive
director is responsible for the daily operations of the commission
and shall coordinate the activities of commission employees.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.105. CAREER LADDER PROGRAM; PERFORMANCE
EVALUATIONS; MERIT PAY. (a) The executive director or the
executive director's designee shall develop an intra-agency career
ladder program that addresses opportunities for mobility and
advancement for commission employees. The program shall require
intra-agency posting of each position concurrently with any public
posting.
(b) The executive director or the executive director's
designee shall develop a system of annual performance evaluations
that are based on documented employee performance. Merit pay for
commission employees must be based on the system established under
this subsection.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.106. EQUAL EMPLOYMENT OPPORTUNITY POLICY
STATEMENT. (a) The executive director or the executive
director's designee shall prepare and maintain a written policy
statement to ensure implementation of a program of equal employment
opportunity under which all personnel transactions are made without
regard to race, color, disability, sex, religion, age, or national
origin.
(b) The policy statement under Subsection (a) must include:
(1) personnel policies, including policies related to
recruitment, evaluation, selection, appointment, training, and
promotion of personnel, that are in compliance with the
requirements of Chapter 21, Labor Code;
(2) a comprehensive analysis of the commission
workforce that meets federal and state guidelines;
(3) procedures by which a determination can be made
about the extent of underuse in the commission workforce of all
persons for whom federal or state guidelines encourage a more
equitable balance; and
(4) reasonable methods to appropriately address the
underuse.
(c) A policy statement prepared under Subsection (b) must:
(1) cover an annual period;
(2) be updated at least annually;
(3) be reviewed by the Commission on Human Rights for
compliance with Subsection (b)(1); and
(4) be filed with the governor's office.
(d) The governor's office shall deliver a biennial report to
the legislature based on the information received under Subsection
(c). The report may be made separately or as a part of other
biennial reports to the legislature.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER D. PROHIBITED RELATIONSHIPS AND ACTIVITIES
§ 12.151. REGISTERED LOBBYIST. A person required to
register as a lobbyist under Chapter 305, Government Code, because
of the person's activities for compensation on behalf of a
profession related to the operation of the commission may not serve
as a commissioner.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 405, § 4, eff. Sept. 1, 1999.
§ 12.152. CONFLICT OF INTEREST. (a) A person is not
eligible for appointment as a commissioner or executive director of
the commission if:
(1) the person serves on the board of directors of a
company that supplies fuel, utility-related services, or
utility-related products to regulated or unregulated electric or
telecommunications utilities; or
(2) the person or the person's spouse:
(A) is employed by or participates in the
management of a business entity or other organization that is
regulated by or receives funds from the commission;
(B) directly or indirectly owns or controls more
than a 10 percent interest or a pecuniary interest with a value
exceeding $10,000 in:
(i) a business entity or other organization
that is regulated by or receives funds from the commission; or
(ii) a utility competitor, utility
supplier, or other entity affected by a commission decision in a
manner other than by the setting of rates for that class of
customer;
(C) uses or receives a substantial amount of
tangible goods, services, or funds from the commission, other than
compensation or reimbursement authorized by law for commission
membership, attendance, or expenses; or
(D) notwithstanding Paragraph (B), has an
interest in a mutual fund or retirement fund in which more than 10
percent of the fund's holdings at the time of appointment is in a
single utility, utility competitor, or utility supplier in this
state and the person does not disclose this information to the
governor, senate, commission, or other entity, as appropriate.
(b) A person otherwise ineligible because of Subsection
(a)(2)(B) may be appointed to the commission and serve as a
commissioner or may be employed as executive director if the
person:
(1) notifies the attorney general and commission that
the person is ineligible because of Subsection (a)(2)(B); and
(2) divests the person or the person's spouse of the
ownership or control:
(A) before beginning service or employment; or
(B) if the person is already serving or employed,
within a reasonable time.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 405, § 4, eff. Sept. 1, 1999.
§ 12.153. RELATIONSHIP WITH TRADE ASSOCIATION. A
person may not serve as a commissioner or be a commission employee
who is exempt from the state's position classification plan or is
compensated at or above the amount prescribed by the General
Appropriations Act for step 1, salary group 17, of the position
classification salary schedule if the person is:
(1) an officer, employee, or paid consultant of a
trade association; or
(2) the spouse of an officer, manager, or paid
consultant of a trade association.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.154. PROHIBITED ACTIVITIES. (a) During the
period of service with the commission, a commissioner or commission
employee may not:
(1) have a pecuniary interest, including an interest
as an officer, director, partner, owner, employee, attorney, or
consultant, in:
(A) a public utility or affiliate; or
(B) a person a significant portion of whose
business consists of furnishing goods or services to public
utilities or affiliates;
(2) directly or indirectly own or control securities
in a public utility, affiliate, or direct competitor of a public
utility; or
(3) accept a gift, gratuity, or entertainment from:
(A) a public utility, affiliate, or direct
competitor of a public utility;
(B) a person a significant portion of whose
business consists of furnishing goods or services to public
utilities, affiliates, or direct competitors of public utilities;
or
(C) an agent, representative, attorney,
employee, officer, owner, director, or partner of a person
described by Paragraph (A) or (B).
(b) A commissioner or a commission employee may not directly
or indirectly solicit, request from, or suggest or recommend to a
public utility or an agent, representative, attorney, employee,
officer, owner, director, or partner of a public utility the
appointment to a position or the employment of a person by the
public utility or affiliate.
(c) A person may not give or offer to give a gift, gratuity,
employment, or entertainment to a commissioner or commission
employee if that person is:
(1) a public utility, affiliate, or direct competitor
of a public utility;
(2) a person who furnishes goods or services to a
public utility, affiliate, or direct competitor of a public
utility; or
(3) an agent, representative, attorney, employee,
officer, owner, director, or partner of a person described by
Subdivision (1) or (2).
(d) A public utility, affiliate, or direct competitor of a
public utility or a person furnishing goods or services to a public
utility, affiliate, or direct competitor of a public utility may
not aid, abet, or participate with a commissioner, commission
employee, or former commission employee in conduct that violates
Subsection (a)(3) or (c).
(e) Subsection (a)(1) does not apply to an interest in a
nonprofit group or association, other than a trade association,
that is solely supported by gratuitous contributions of money,
property, or services.
(f) It is not a violation of this section if a commissioner
or commission employee, on becoming the owner of stocks, bonds, or
another pecuniary interest in a public utility, affiliate, or
direct competitor of a public utility otherwise than voluntarily,
informs the commission and the attorney general of the ownership
and divests the ownership or interest within a reasonable time.
(g) It is not a violation of this section if a pecuniary
interest is held indirectly by ownership of an interest in a
retirement system, institution, or fund that in the normal course
of business invests in diverse securities independently of the
control of the commissioner or commission employee.
(h) This section does not apply to a contract for a public
utility product or service or equipment for use of a public utility
product when a commissioner or commission employee is acting as a
consumer.
(i) In this section, a "pecuniary interest" includes
income, compensation, and payment of any kind, in addition to an
ownership interest.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.155. PROHIBITION ON EMPLOYMENT OR
REPRESENTATION. (a) A commissioner, a commission employee, or an
employee of the State Office of Administrative Hearings involved in
hearing utility cases may not:
(1) be employed by a public utility that was in the
scope of the commissioner's or employee's official responsibility
while the commissioner or employee was associated with the
commission or the State Office of Administrative Hearings; or
(2) represent a person before the commission or State
Office of Administrative Hearings or a court in a matter:
(A) in which the commissioner or employee was
personally involved while associated with the commission or State
Office of Administrative Hearings; or
(B) that was within the commissioner's or
employee's official responsibility while the commissioner or
employee was associated with the commission or State Office of
Administrative Hearings.
(b) The prohibition of Subsection (a)(1) applies until the:
(1) second anniversary of the date the commissioner
ceases to serve as a commissioner; and
(2) first anniversary of the date the employee's
employment with the commission or State Office of Administrative
Hearings ceases.
(c) The prohibition of Subsection (a)(2) applies while a
commissioner, commission employee, or employee of the State Office
of Administrative Hearings involved in hearing utility cases is
associated with the commission or State Office of Administrative
Hearings and at any time after.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.156. QUALIFICATIONS AND STANDARDS OF CONDUCT
INFORMATION. The executive director or the executive director's
designee shall provide to commissioners and commission employees as
often as necessary information regarding their:
(1) qualifications for office or employment under this
title; and
(2) responsibilities under applicable laws relating
to standards of conduct for state officers and employees.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND REPORTS
§ 12.201. PUBLIC INTEREST INFORMATION. (a) The
commission shall prepare information of public interest describing
the functions of the commission and the commission's procedures by
which a complaint is filed with and resolved by the commission. The
commission shall make the information available to the public and
appropriate state agencies.
(b) The commission by rule shall establish methods by which
consumers and service recipients are notified of the name, mailing
address, and telephone number of the commission for the purpose of
directing complaints to the commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.202. PUBLIC PARTICIPATION. (a) The commission
shall develop and implement policies that provide the public with a
reasonable opportunity to appear before the commission and to speak
on any issue under the jurisdiction of the commission.
(b) The commission shall comply with federal and state laws
related to program and facility accessibility.
(c) The commission shall prepare and maintain a written plan
that describes how a person who does not speak English may be
provided reasonable access to the commission's programs and
services.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.203. ANNUAL REPORT. (a) The commission shall
prepare annually a complete and detailed written report accounting
for all funds received and disbursed by the commission during the
preceding fiscal year. The annual report must meet the reporting
requirements applicable to financial reporting in the General
Appropriations Act.
(b) In the annual report issued in the year preceding the
convening of each regular session of the legislature, the
commission shall make suggestions regarding modification and
improvement of the commission's statutory authority and for the
improvement of utility regulation in general that the commission
considers appropriate for protecting and furthering the interest of
the public.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER F. HISTORICALLY UNDERUTILIZED BUSINESSES
§ 12.251. DEFINITION. In this subchapter,
"historically underutilized business" has the meaning assigned by
Section 481.101, Government Code.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.252. COMMISSION AUTHORITY. The commission, after
notice and hearing, may require each utility subject to regulation
under this title to make an effort to overcome the underuse of
historically underutilized businesses.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.253. REPORT REQUIRED. The commission shall
require each utility subject to regulation under this title to
prepare and submit to the commission a comprehensive annual report
detailing its use of historically underutilized businesses.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.254. DISCRIMINATION PROHIBITED. The rules adopted
under this subchapter may not be used to discriminate against a
citizen on the basis of sex, race, color, creed, or national origin.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 12.255. CAUSE OF ACTION NOT CREATED. This subchapter
does not create a public or private cause of action.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
