CHAPTER 12. ORGANIZATION OF COMMISSION - Texas Statutes

UTILITIES CODE

TITLE 2. PUBLIC UTILITY REGULATORY ACT

SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES

CHAPTER 12. ORGANIZATION OF COMMISSION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, 2011.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 405, Sec. 2, eff. Sept. 1,

1999; Acts 1999, 76th Leg., ch. 1212, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2005, 79th Leg., Ch.

797, Sec. 1, eff. September 1, 2005.

SUBCHAPTER B. COMMISSION APPOINTMENT AND FUNCTIONS

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 12.057. COMPENSATION. The annual salary of the

commissioners is determined by the legislature.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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.

(c) A person who is appointed to the commission is entitled to

reimbursement, as provided by the General Appropriations Act, for

the travel expenses incurred in attending the training program

regardless of whether the attendance at the program occurs before

or after the person qualifies for office.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by:

Acts 2005, 79th Leg., Ch.

797, Sec. 2, eff. September 1, 2005.

SUBCHAPTER C. COMMISSION PERSONNEL

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 405, Sec. 3, eff. Sept. 1,

1999.

Sec. 12.102. DUTIES OF EMPLOYEES. The commission shall develop

and implement policies that clearly separate the policymaking

responsibilities of the commission and the management

responsibilities of the commission employees.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by:

Acts 2005, 79th Leg., Ch.

797, Sec. 3, eff. September 1, 2005.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER D. PROHIBITED RELATIONSHIPS AND ACTIVITIES

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 405, Sec. 4, eff. Sept. 1,

1999.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 405, Sec. 4, eff. Sept. 1,

1999.

Sec. 12.153. RELATIONSHIP WITH TRADE ASSOCIATION. A person may

not serve as a commissioner or be a commission employee who is

employed in a "bona fide executive, administrative, or

professional capacity," as that phrase is used for purposes of

establishing an exemption to the overtime provisions of the

federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201

et seq.), 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, Sec. 1, eff. Sept. 1, 1997.

Amended by:

Acts 2005, 79th Leg., Ch.

797, Sec. 4, eff. September 1, 2005.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND REPORTS

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 12.204. INTERNET FOR HEARINGS AND MEETINGS. The commission

shall make publicly accessible without charge live Internet video

of all public hearings and meetings the commission holds for

viewing from the Internet website found at

http://www.puc.state.tx.us. The commission may recover the costs

of administering this section by imposing an assessment against

a:

(1) public utility;

(2) corporation described by Section 32.053;

(3) retail electric provider that serves more than 250,000

customers; or

(4) power generation company that owns more than 5,000 megawatts

of installed capacity in this state.

Added by Acts 2009, 81st Leg., R.S., Ch.

400, Sec. 1, eff. September 1, 2009.

SUBCHAPTER F. HISTORICALLY UNDERUTILIZED BUSINESSES

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.

Sec. 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, Sec. 1, eff. Sept. 1, 1997.