TITLE economic-regulation

Part II. Public Utility Commission of Texas

Chapter 22. Practice and Procedure

The Public Utility Commission of Texas (commission) adopts amendments to §22.2 relating to Definitions, §22.308 relating to Approval of Negotiated Agreements, and §22.309 relating to Approval of Arbitrated Agreements with changes to the proposed text as published in the February 12, 1999 Texas Register (24 TexReg 897); and adopts §22.307 relating to Subsequent Proceedings with no changes to the text as published in the February 12, 1999 Texas Register (24 TexReg 897). Project Number 20352 is assigned to this proceeding.

The amendment to §22.2 consolidates the definitions in existing §22.302 of this title (relating to Definitions) with the definitions in the Procedural Rules general definitions section. Section 22.302 has been repealed. The amendment to §22.307 conforms the section to existing commission practice that arbitrators may file a recommendation in the docket and give advice during an open meeting. The amendment to §22.308 improves efficiency by allowing the presiding officer the discretion to administratively approve negotiated interconnection agreements. The amendment to §22.309 conforms the section to current commission practice by removing references to the general counsel and clarifies 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.

The Appropriations Act of 1997, HB 1, Article IX, Section 167 (Section 167) requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to Government Code, Chapter 2001. 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 had invited specific comments regarding the Section 167 requirement, as to whether the reason for adopting these rules continues to exist, in the comments on the proposed amendments. No interested persons commented on the Section 167 requirement. The commission finds that the reason for adopting these sections continues to exist.

The commission received comments on the proposed amendments from the Office of Public Utility Counsel (OPC) and Southwestern Bell Telephone Company (SWBT).

OPC requests that the "Office of Public Utility Counsel" be listed as a separate entity, along with the Office of Regulatory Affairs, in the definition of "complainant" and in §§22.308(c)(2), 22.308(d), 22.309(c), and 22.309(d) as one who is allowed to file comments. OPC states that it would still be permitted to file comments or initiate a formal complaint as an "interested party", however, in light of OPC's statutory authority, the requested change should be made for clarification purposes.

The commission agrees and has made the changes.

SWBT recommends that §22.308(h)(2) be revised to clarify that only "parties to the agreement" may file motions for reconsideration of administratively approved negotiated agreements.

The opportunity to file a motion for reconsideration in an administratively approved agreement is intended to parallel the public comment process contained in the formal approval process and includes "interested persons" as well as parties. Interested persons who file a motion for reconsideration are not entitled to participate as parties, but may bring to the commission's attention any specific allegations that the agreement, or some portion thereof, is in violation or not consistent with the federal Telecommunications Act of 1996. The commission has added the language "motions for reconsideration filed by non-parties will be considered as comments filed by an interested person" to clarify the process.

SWBT submits that the interim approval provision in §22.308(h)(3) should be removed because: (1) the commission has previously rejected interim approval of negotiated agreements; (2) the presiding officer would have already denied the application for approval of the negotiated agreement (thus necessitating the motion for reconsideration and commission balloting), thereby making interim approval inappropriate; and (3) as drafted, the provision is not clear as to the effective date of such interim approval.

The interim approval process is intended to allow the parties, if they so choose, to proceed with the terms of the agreement pending commission decision on any motions for reconsideration of an administratively approved agreement filed by interested persons. This interim approval does not change the commission's determination that interim approval of negotiated agreements is not necessary because the parties could agree as a provision of the contract to begin operations pending commission approval of the agreement. The commission adds language to clarify that the effective date of the interim approval is the date the presiding officer issues the notice of approval in an administratively approved agreement.

Finally, SWBT stated that there appears to be some inconsistency in the number of copies required. SWBT stated that §22.308(a) and §22.309(a) require 18 copies of the application for approval, while §22.308(d) and §22.309(d) requires that interested persons file only 13 copies of comments.

A review of §22.308(a) and §22.309(a) as on file with the Secretary of State and as distributed by the commission finds that these subsections require only 13 copies of the application to be filed. There is no inconsistency in the number of copies required.

Subchapter A. General Provisions and Definitions

16 TAC §22.2

This amendment is adopted under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon 1998) (PURA) which provides the 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)

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)

Chairman - The commissioner designated by the Governor to serve as chairman.

(12)

Commission - The Public Utility Commission of Texas.

(13)

Commissioner - One of the members of the Public Utility Commission of Texas.

(14)

Complainant - A person, including the Office of Regulatory Affairs or the Office of Public Utility Counsel, 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)

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)

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

(18)

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

(19)

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)

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)

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)

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)

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

(25)

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)

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)

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)

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)

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)

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)

Person - An individual, partnership, corporation, association, governmental subdivision, entity, or public or private organization.

(33)

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)

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)

Presiding officer - The commission, any commissioner, or any administrative law judge presiding over a proceeding or any portion thereof.

(36)

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)

Project - A rulemaking or other proceeding that is not a docket or a tariff.

(38)

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)

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

(40)

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)

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)

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

(43)

SOAH - The State Office of Administrative Hearings.

(44)

Unprotested case - A contested case in which a hearing is not necessary.

(45)

Working day - A day on which the commission is open for the conduct of business.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 13, 1999.

TRD-9902761

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Effective date: June 2, 1999

Proposal publication date: February 12, 1999

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


Subchapter P. Dispute Resolution

16 TAC §§22.307-22.309

These amendments are adopted under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon 1998) (PURA) which provides the 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.

§22.308.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. At a minimum, the commission will allow interested persons, the Office of Regulatory Affairs and the Office of Public Utility Counsel to file written comments, provided such comments are filed within 25 days of the filing of the application.

(d)

Comments. An interested person, the Office of Regulatory Affairs, or the Office of Public Utility 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 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. Motions for reconsideration filed by non-parties will be considered as comments filed by an interested person.

(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. The administratively approved agreement shall be considered approved on an interim basis from the date the presiding officer files the notice of approval until the time to file motions for reconsideration has expired, or if a motion for reconsideration is filed, until considered at open meeting.

(i)

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 allow interested persons, the Office of Regulatory Affairs, and the Office of Public Utility 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, the Office of Regulatory Affairs and the Office of Public Utility 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 adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 13, 1999.

TRD-9902762

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Effective date: June 2, 1999

Proposal publication date: February 12, 1999

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


16 TAC §22.302

The Public Utility Commission of Texas (commission) adopts the repeal of §22.302 relating to Definitions with no changes to the proposed text as published in the February 12, 1999 Texas Register (24 TexReg 900). Project Number 20352 is assigned to this proceeding. The Appropriations Act of 1997, HB 1, Article IX, Section 167 (Section 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. As a result of this review, the commission has moved the definitions in §22.302 to the commission's Procedural Rules' general definitions section, §22.2 of this title (relating to Definitions).

The commission received no comments on the proposed repeal.

This repeal is adopted under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon 1998) (PURA) which provides the 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

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 13, 1999.

TRD-9902763

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Effective date: June 2, 1999

Proposal publication date: February 12, 1999

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


Part IX. Texas Lottery Commission

Chapter 401. Administration of State Lottery Act

Subchapter D. Lottery Game Rules

16 TAC §401.308

The Texas Lottery Commission adopts amendments to 16 TAC §401.308, relating to Cash 5 On-line game, without changes to the proposed text as published in the April 2, 1999, issue of the Texas Register , (24 TexReg 2592).

These amendments allow for advanced play and extended multi-draw purchases. A lottery player will be able to purchase a Cash 5 ticket for any of the four Cash 5 drawings immediately following the current drawings. Additionally, the amendments allow a player to purchase a Cash 5 ticket for up to 20 consecutive draws beginning with the current draw.

The section, as adopted, will generate additional revenue for the State of Texas through advance sales and through the ability to purchase tickets for multiple draws.

The Texas Lottery Commission received no comments on this rule.

The rule is amended under Texas Government Code, Section 466.015 which provides the Texas Lottery Commission with the authority to adopt rules governing the operation of the lottery.

Texas Government Code, Chapter 466 is affected by the adopted amendments.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 13, 1999.

TRD-9902766

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Effective date: June 2, 1999

Proposal publication date: April 2, 1999

For further information, please call: (512) 344-5113