TITLE economic-regulation

Part II. Public Utility Commission of Texas

Chapter 22. Practice and Procedure

The Public Utility Commission of Texas proposes amendments to §22.2 relating to Definitions, §22.307 relating to Subsequent Proceedings, §22.308 relating to Approval of Negotiated Agreements, and §22.309 relating to Approval of Arbitrated Agreements. Project Number 20352 has been assigned to this proceeding. The proposed amendment to §22.2 moves the definitions from existing §22.302 of this title (relating to Definitions) to the Procedural Rules general definitions section. Section 22.302 will be proposed for repeal. The proposed amendment to §22.307 is to conform the section to existing commission practice that arbitrators may file a recommendation in the docket and give advice during an open meeting. The amendments to §22.308 allow the presiding officer the discretion to administratively approve negotiated interconnection agreements. The amendments to §22.309 conform the section to current commission practice by removing references to the general counsel and clarifying that the arbitrator shall file a recommendation concerning the agreement's compliance with the arbitrator's award and any issues that remain in dispute between the parties.

Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined that for each year of the first five-year period the proposed sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Ms. Mueller has determined that for each year of the first five years the proposed sections are in effect the public benefits anticipated as a result of enforcing the sections will be rules that are easier to use due to definitions being consolidated into one section; rules that more accurately reflect commission practice and procedures; and that improve efficiency for approval of negotiated interconnection agreements. There will be no effect on small businesses as a result of enforcing these sections. There is no anticipated economic cost to persons who are required to comply with the sections as proposed.

Ms. Mueller has also determined that for each year of the first five years the proposed sections are in effect there should be no affect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

Comments on the proposed amendments (16 copies) may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 N. Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication. The Appropriations Act of 1997, HB 1, Article IX, §167 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rule continues to exist. The commission invites specific comments regarding whether the reason for adopting these sections continues to exist in considering the proposed amendments. The commission also invites specific comments regarding the costs associated with, and benefits that will be gained by implementation of the proposed sections. The commission will consider the costs and benefits in deciding whether to adopt the amendments. All comments should refer to Project Number 20352 and reference Procedural Rules, Subchapter P.

Subchapter A. General Provisions and Definitions

16 TAC §22.2

These amendments are proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon 1998) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules of practice and procedure.

Cross-Index to Statutes: Public Utility Regulatory Act §14.002 and §14.052.

§22.2.Definitions.

The following terms, when used in this chapter, shall have the following meanings, unless the context or specific language of a section clearly indicates otherwise:

(1)-(6)

(No change.)

(7)

Arbitration-A form of dispute resolution in which each party presents its position on any unresolved issues to an impartial third person(s) who renders a decision on the basis of the information and arguments submitted.

(8)

Arbitration hearing-The hearing conducted by an arbitrator to resolve any issue submitted to the arbitrator. An arbitration hearing is not a contested case under the Administrative Procedure Act, Texas Government Code §§2001.001, et. seq.

(9)

Arbitrator-The commission, any commissioner, any commission employee, or any SOAH administrative law judge selected to serve as the presiding officer in a compulsory arbitration hearing.

(10)

[ (7) ] Authorized representative-A person who enters an appearance on behalf of a party, or on behalf of a person seeking to be a party or otherwise to participate, in a proceeding. The appearance may be entered in person or by subscribing the representative's name upon any pleading filed on behalf of the party or person seeking to be a party or otherwise to participate in the proceeding. The authorized representative shall be considered to remain a representative of record unless a statement or pleading to the contrary is filed or stated in the record.

(11)

[ (8) ] Chairman-The commissioner designated by the Governor to serve as chairman.

(12)

[ (9) ] Commission-The Public Utility Commission of Texas.

(13)

[ (10) ] Commissioner-One of the members of the Public Utility Commission of Texas.

(14)

[ (11) ] Complainant-A person, including the Office of Regulatory Affairs, who files a complaint intended to initiate a proceeding with the commission regarding any act or omission by the commission or any person subject to the commission's jurisdiction.

(15)

Compulsory arbitration-The arbitration proceeding conducted by the commission or its designated arbitrator pursuant to the commission's authority under FTA96 §252.

(16)

[ (12) ] Contested case-A proceeding, including a ratemaking or licensing proceeding, in which the legal rights, duties, or privileges of a party are to be determined by a state agency after an opportunity for adjudicative hearing.

(17)

[ (13) ] Control number-Number assigned by the commission's Central Records to a docket, project, or tariff.

(18)

[ (14) ] Days-Calendar days, not working days, unless otherwise specified by this chapter or the commission's substantive rules.

(19)

[ (15) ] Docket-A proceeding handled as a contested case under APA.

(20)

FTA96-The federal Telecommunications Act of 1996, Public Law Number 104-104, 110 Stat. 56 (1996), (to be codified at 47 U.S.C. §§151 et seq.).

(21)

[ (16) ] Final order-The whole or part of the final disposition by the commission of the issues before the commission in a proceeding, rendered in compliance with §22.263 of this title (relating to Final Orders).

(22)

[ (17) ] Financial interest-Any legal or equitable interest, or any relationship as officer, director, trustee, advisor, or other active participant in the affairs of a party. An interest as a taxpayer, utility ratepayer, or cooperative member is not a financial interest. An interest a person holds indirectly by ownership of an interest in a retirement system, institution, or fund which in the normal course of business invests in diverse securities independently of that person's control is not a financial interest.

(23)

[ (18) ] General counsel-The individual employed by the commission and charged with the duties of the general counsel under PURA. The general counsel duties may be delegated as necessary.

(24)

[ (19) ] Hearing-Any proceeding at which evidence is taken on the merits of the matters at issue, not including prehearing conferences.

(25)

[ (20) ] Hearing day-A day of hearing when the merits of a proceeding are considered at the hearing on the merits, a final order meeting, or a regional hearing.

(26)

[ (21) ] Intervenor-A person, other than the applicant, respondent, or the general counsel, who is permitted by this chapter or by ruling of the presiding officer, to become a party to a proceeding.

(27)

[ (22) ] Licensing proceeding-Any proceeding respecting the granting, denial, renewal, revocation, suspension, annulment, withdrawal, or amendment of a license, including a proceeding regarding a notice of intent to build a new electric generating unit.

(28)

[ (23) ] Major rate proceeding-Any proceeding filed pursuant to PURA, §§36.101-36.111, 36.201-36.203 and 36.205 or §§51.009, 53.101- 53.113, 53.201 and 53.202 involving an increase in rates which would increase the aggregate revenues of the applicant more than the greater of $100,000 or 2.5%. In addition, a major rate proceeding is any rate proceeding initiated pursuant to PURA, §§36.151-36.156 or §53.151 and §53.152 in which the respondent utility is directed to file a rate filing package.

(29)

Mediation-A voluntary form of dispute resolution in which an impartial person facilitates communication between parties to promote negotiation and settlement of disputed issues.

(30)

[ (24) ] Municipality-A city, incorporated village, or town, existing, created, or organized under the general, home-rule, or special laws of Texas. A municipality is a "person" as defined in this section.

(31)

[ (25) ] Party-A party under §22.72 or §22.73 of this title (relating to Formal Requisites of Pleadings To Be Filed with the Commission; General Requirements for Applications).

(32)

[ (26) ] Person-An individual, partnership, corporation, association, governmental subdivision, entity, or public or private organization.

(33)

[ (27) ] Pleading-A written document submitted by a party, or a person seeking to participate in a proceeding, setting forth allegations of fact, claims, requests for relief, legal argument, and/or other matters relating to a proceeding.

(34)

[ (28) ] Prehearing conference-Any conference or meeting of the parties, prior to the hearing on the merits, on the record and presided over by the presiding officer.

(35)

[ (29) ] Presiding officer-The commission, any commissioner, or any administrative law judge presiding over a proceeding or any portion thereof.

(36)

[ (30) ] Proceeding-Any hearing, investigation, inquiry or other fact- finding or decision-making procedure, including the denial of relief or the dismissal of a complaint, conducted by the commission or the utility division of SOAH.

(37)

[ (31) ] Project-A rulemaking or other proceeding that is not a docket or a tariff.

(38)

[ (32) ] Protestant-A person who is not a party to the case who submits oral or written comments. A person classified as a protestant does not have rights to participate in a proceeding other than by providing oral or written comments.

(39)

[ (33) ] PURA-The Public Utility Regulatory Act, Texas Utilities Code, §§11.001-63.063, as it may be amended from time to time.

(40)

[ (34) ] Relative-An individual (or spouse of an individual) who is related to the individual in issue (or the spouse of the individual in issue) within the second degree of consanguinity or relationship according to the civil law system.

(41)

[ (35) ] Respondent-A person under the commission's jurisdiction against whom any complaint or appeal has been filed or who is under formal investigation by the commission.

(42)

[ (36) ] Rulemaking-A proceeding pursuant to APA, §§2001.021- §2001.037 conducted to adopt, amend, or repeal a commission rule.

(43)

[ (37) ] SOAH-The State Office of Administrative Hearings.

(44)

[ (38) ] Unprotested case-A contested case in which a hearing is not necessary.

(45)

[ (39) ] Working day-A day on which the commission is open for the conduct of business.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 27, 1999.

TRD-9900576

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 936-7308


Subchapter P. Dispute Resolution

16 TAC §§22.307-22.309

These amendments are proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon 1998) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules of practice and procedure; and the federal Telecommunications Act of 1996 which authorizes the commission to engage in negotiation, arbitration, approval, and enforcement of agreements for interconnection, services or network elements.

Cross-Index to Statutes: Public Utility Regulatory Act §14.002 and §14.052.

§22.307.Subsequent Proceedings.

A commission employee who has participated as a mediator under §22.303 of this title (relating to Mediation), an arbitrator under §22.305 of this title (relating to Compulsory Arbitration), or a staff member designated as an advisor to the arbitrator under §22.305(c) may not participate as an ex parte advisor to Commissioners in any subsequent commission proceedings concerning the review and approval of the resulting agreement pursuant to FTA96 §252(e), except in cases where two or more of the Commissioners act as the arbitrator. In a proceeding to approve an arbitrated agreement pursuant to §22.309 of this title (relating to Approval of Arbitrated Agreements), the commission or the presiding officer may call upon a commission employee who has participated as an arbitrator under this subchapter to the extent necessary to explain any ambiguities in the arbitrator's final decision.

§22.308.Approval of Negotiated Agreements.

(a)-(b)

(No change.)

(c)

Proceedings.

(1)

Administrative review. An application considered under this section shall be administratively reviewed by the presiding officer unless the presiding officer determines that a formal review of the application is appropriate pursuant to paragraph (2) of this subsection.

(2)

Formal review. The presiding officer may determine that a formal review is necessary to determine if the negotiated agreement meets the requirements of FTA96 §252. [ The commission may conduct whatever proceeding it deems necessary in order to review the negotiated agreement, including, but not limited to, referral of the matter to SOAH for an expedited contested case hearing. The commission or the presiding officer may issue a procedural order or a preliminary order establishing additional procedural requirements for the proceedings. ]At a minimum, the commission will allow interested persons and the Office of Regulatory Affairs [ general counsel ]to file written comments, provided such comments are filed within 25 days of the filing of the application.

(d)

Comments. An interested person or the Office of Regulatory Affairs [ general counsel ] may file comments on the negotiated agreement by filing 13 copies of the comments with the commission's filing clerk and serving a copy of the comments on each party to the agreement. As a part of the comments, a person may include a request for a public hearing on the agreement. The comments shall include the following information:

(1)-(3)

(No change.)

(e)-(f)

(No change.)

(g)

Final Decision.

(1)

Administrative review. The commission delegates its authority to the presiding officer to administratively approve or deny any negotiated interconnection agreements subject to the administrative review process in subsection (c)(1) of this section. The Notice of approval or denial shall be issued within 35 days of the filing of the application. If a notice of denial is filed, the notice of denial shall include written findings indicating any deficiencies in the agreement.

(2)

Formal review. When a negotiated interconnection agreement is subject to the formal review process in subsection (c)(2) of this section, the [ The ] commission will issue its final decision on the agreement within 90 days following the filing of the application. The commission's final decision may reject the agreement as submitted, approve the agreement as submitted, or approve the agreement with modifications necessary to establish or enforce compliance with other requirements of state law. If the commission rejects the agreement, the final decision will include written findings indicating any deficiencies in the agreement.

(h)

Rehearing process regarding administratively approved negotiated agreements.

(1)

On the first and fifteenth day of each month, the presiding officer shall file a monthly status report in a project created for that purpose listing all of the negotiated interconnection agreements administratively approved since the previous report.

(2)

Motions for reconsideration seeking commission review of any agreement in a status report shall be filed within ten days of the filing of that report. All motions for reconsideration shall state any claimed error with specificity.

(3)

Upon the filing of a motion for reconsideration, the Office of Policy Development shall send separate ballots to each commissioner to determine whether the docket should be placed on an open meeting agenda. If a majority of commissioners ballot to reconsider the motion within five days of its filing, the agreement shall be considered at the next open meeting for which notice of the docket may be properly made. If balloted for reconsideration, the agreement shall be considered interimly approved until considered at open meeting.

(i)

[ (h) ] Filing of Agreement. If the commission approves the agreement, it will be filed in central records, along with the commission's final decision approving the agreement.

§22.309.Approval of Arbitrated Agreements.

(a)-(b)

(No change.)

(c)

Proceedings. The commission may conduct whatever proceeding it deems necessary in order to review the arbitrated agreement, including, but not limited to, authorizing a presiding officer to conduct an expedited contested case hearing. The commission or the presiding officer may issue a procedural order or a preliminary order establishing additional procedural requirements for the proceedings. At a minimum, the commission shall [ will ] allow interested persons and the Office of Regulatory Affairs [ general counsel ] to file written comments, provided such comments are filed within seven days of the filing of the application. The arbitrator shall file a recommendation concerning the agreement's compliance with the arbitrator's award and any issues that remain in dispute between the parties.

(d)

Comments. An interested person and the Office of Regulatory Affairs [ general counsel ] may file written comments concerning the agreement by filing 13 copies of the comments with the commission's filing clerk and serving a copy of the comments on each of the parties to the agreement. Such comments shall be limited to whether the agreement meets the requirements of the FTA96 and relevant portions of state law. If such comments request rejection or modification of the agreement, the interested person must provide the following information:

(1)-(3)

(No change.)

(e)-(g)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 27, 1999.

TRD-9900577

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 936-7308


16 TAC §22.302

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Public Utility Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Public Utility Commission of Texas (commission) proposes the repeal of §22.302 relating to Definitions. The definitions in this section are being moved to the general definitions section of the commission's Procedural Rules, §22.2 of this title (relating to Definitions). Therefore, §22.302 is no longer necessary. Project Number 20352 has been assigned to this proposed repeal.

Ms. Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined that for each year of the first five-year period this repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Ms. Mueller has determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of the repeal will be elimination of a section that is no longer necessary, due to the definitions being moved to another section. There will be no effect on small businesses as result of repealing this section. There is no anticipated economic cost to persons as a result of repealing this section.

Ms. Mueller has also determined that for each year of the first five years the repeal is in effect there should be no affect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

Comments on the proposed repeal (16 copies) may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 N. Congress Avenue, P.O. Box 13326, Austin, Texas 78711- 13326, within 30 days after publication. All comments should refer to Project Number 20352.

This repeal is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon 1998)) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules of practice and procedure.

Cross Index to Statutes: Public Utility Regulatory Act §14.002 and §14.052

§22.302.Definitions.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 27, 1999.

TRD-9900578

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: March 14, 1999

For further information, please call: (512) 936-7308


Part III. Texas Alcoholic Beverage Commission

Chapter 35. Enforcement

Subchapter A. Transportation of Liquor

16 TAC §35.6

The Alcoholic Beverage Commission proposes a new rule, §35.6, concerning the shipment of alcoholic beverages into the state by holders of non-resident seller's permits and non-resident manufacturer's licenses. The rule is proposed to allow alcoholic beverages, shipped into the state by virtue of the statutory rights granted to non-resident sellers and non-resident manufacturers, to be temporarily held in regional distribution centers while in transit, subject to conditions stated in the rule.

Lou Bright, General Counsel, has determined that for the first five year period the rule is in effect there will be no fiscal implications for state or local governments as a result of enforcing the rule. Mr. Bright has determined that the public will benefit from this rule in that the rule allows practices that result in a more efficient and economical distribution system for alcoholic beverages shipped in interstate commerce. There is no anticipated costs to owners of small businesses or persons required to comply with the rule.

Comments should be submitted to Lou Bright, General Counsel, Texas Alcoholic Beverage Commission, P. O. Box 13127, Austin, Texas.

This rule is proposed under the authority of Alcoholic Beverage Code, §5.31, which provides the Alcoholic Beverage Commission with authority to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

Cross Reference: Alcoholic Beverage Code, §§37.01 and 63.01 are affected by this rule.

§35.6. Regional Distribution Centers.

(a)

This rule relates to Alcoholic Beverage Code, §§37.01(2) and 63.01.

(b)

Alcoholic beverages shipped into the state under the authority of §§37.01(2) and 63.01 of the Alcoholic Beverage Code may be temporarily held in a regional distribution center, subject to the following conditions:

(1)

A regional distribution center is a facility wherein alcoholic beverages may be held under the control of the non-resident seller or non-resident manufacturer responsible for shipping the alcoholic beverages.

(2)

The regional distribution center may be operated by a third party who acts as the agent of the non-resident manufacturer or non-resident seller in arranging for interstate shipments of alcoholic beverages to permittees and licensees authorized to import such beverages into the state, or for shipment to locations outside the state.

(3)

No member of the wholesale or retail tiers of the alcoholic beverage industry may, directly or indirectly, hold any interest in, or right of operation of a regional distribution center.

(4)

No sale of alcoholic beverages may be made to a person or entity from a regional distribution center.

(5)

A regional distribution center must be located in an area that is wet for the type of alcoholic beverages held therein.

(6)

A licensee or permittee, by using a regional distribution center under the authority of this rule, consents to inspection of such facility by the commission, its agents or employees, or any peace officer, to the same extent as consent is given for inspection of licensed premises by §101.04 of the Alcoholic Beverage Code.

(c)

Licensees and permittees using regional distribution centers under the authority of this rule shall, on forms provided by the commission, make monthly reports to the commission of all alcoholic beverages received in or transferred from the regional distribution center and other information as requested by the commission. Such reports shall be signed by the custodian of the regional distribution center and filed with the commission at its offices in Austin, Texas, postmarked not later than the 15th day of the month following the calendar month for which the report is submitted.

(d)

The information required by subsection (e) of this section shall be maintained as a contemporaneous record at the regional distribution center with information relating to specific shipments entered into the record on the day the shipment is received or sent.

(e)

Licensees and permittees using regional distribution centers under the authority of this rule shall pay an annual fee of $1,000 to the commission.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 28, 1999.

TRD-9900587

Doyne Bailey

Administrator

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: March 14 1999

For further information, please call: (512) 206-3204


Chapter 50. Alcohol Awareness and Education

16 TAC §50.4

The Alcoholic Beverage Commission proposes amendments to §50.4 governing requirements imposed on providers of seller/server training to members of the alcoholic beverage industry. The amendments are proposed to alter and relax the requirements imposed on schools to report scheduled and cancelled classes to the Alcoholic Beverage Commission.

Jeannene Fox, Director of Licenses and Compliance, has determined that for the first five year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing the rule. Ms. Fox has determined that the public will benefit from this rule in that affected schools will be able to provide seller/server training classes on shorter notice and reporting requirements imposed on affected schools will be satisfied more efficiently and economically. It is not anticipated that the proposed amendments will impose increased costs on owners of small businesses or others required to comply with this rule.

Comments should be submitted to Jeannene Fox, Director of Licenses and Compliance, Texas Alcoholic Beverage Commission, P. O. Box 13127, Austin, Texas 78711.

These amendments are proposed under Alcoholic Beverage Code, §5.31, which provides the Alcoholic Beverage Commission with authority to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

Cross Reference: Alcoholic Beverage Code, §106.14, is affected by this rule.

§50.4. Program Administration.

(a)

The Texas Alcoholic Beverage Commission shall receive written notification , including electronic and otherwise, from each school to schedule sessions [ at least three business days prior to the session date ]. At least three-fourths of the session notices shall be received at least three business days prior to the session date for classes held each month. One-fourth of the session notices may be received less than three business days but no later than the next business day after the session is held. Said notice shall include the date, time, and location of each class and shall be received in the headquarters of the Texas Alcoholic Beverage Commission, P. O. Box 13127, Austin, Texas 78711 or local field office on forms prescribed by the commission. The commission must be notified by phone or fax of session cancellations prior to the actual session date except when cancellation cannot be anticipated before the session's scheduled start. When cancellation cannot be anticipated, the commission must be notified by the tenth day of the month for each session cancelled during the previous month [ within three business days of the scheduled session date ].

(b)-(r)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 28, 1999.

TRD-9900588

Doyne Bailey

Administrator

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: March 14 1999

For further information, please call: (512) 206-3204