PRIORH0751B0801A00175 PRINTER'SAJB:CMD 03/12/19 #90 A00175 AMENDMENTS TO HOUSE BILL NO.

801751 PRINTER'SSponsor: NO.

876REPRESENTATIVE THEMATZIE GENERALPrinter's ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

751801 2019Amend INTRODUCEDBill, BYpage ROAE,2, TURZAIline AND6, DELOZIER,by MARCHstriking 8,out 2019"529(a), AS(b) REPORTEDand FROM(i)" COMMITTEEand ONinserting CONSUMER529(i) AFFAIRS,Amend HOUSEBill, OFpage REPRESENTATIVES,2, ASlines AMENDED,10 MARCHthrough 12,30; 2019 AN ACT AmeConsolidated Statutes, in general provisions, further providing for definitions;

inpage powers3, andlines duties,1 furtherthrough providing30; for power of commission to order acquisition of small water and sewer utilities;

inpage procedure4, onlines complaints,1 furtherthrough providing4; for service of complaints on parties;

and,by instriking ratesout andall distributionof systems,said furtherlines providingon forsaid computationpages of2019/90AJB/HB0751A00175 income- tax1 expense- for ratemaking purposes.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 1.

The definition of "service line" in section 102 of Title 66 of the Pennsylvania Consolidated Statutes is amended to read:

§ 102.

Definitions.

Subject to additional definitions contained in subsequent provisions of this part which are applicable to specific provisions of this part, the following words and phrases when used in this part shall have, unless the context clearly indicates otherwise, the meanings given to them in this section:

* * * "Service line." The pipe and appurtenances of the gas utility, water utility or wastewater utility which connect any main with either the point of connection of a customer's service line or the meter of the public utility if the utility owns all the pipe and appurtenances between its main and meter.

* * * Section 2.

Sections 529(a), (b) and (i) 529(I) and 702 of <-- Title 66 are amended to read:

§ 529.

Power of commission to order acquisition of small water and sewer utilities.

(a) General rule.--The commission may order a capable public <-- utility to acquire a small water or sewer utility if the commission, after notice and an opportunity to be heard, determines:

(1) that the small water or sewer utility is in violation of statutory or regulatory standards, including, but not limited to, the act of June 22, 1937 (P.L.1987, No.394), known as The Clean Streams Law, the act of January 24, 1966 (1965 P.L.1535, No.537), known as the Pennsylvania Sewage Facilities Act, and the act of May 1, 1984 (P.L.206, No.43), known as the Pennsylvania Safe Drinking Water Act, and the regulations adopted thereunder, which affect the safety, adequacy, efficiency or reasonableness of the service provided by the small water or sewer utility;

(2) that the small water or sewer utility has failed to comply, within a reasonable period of time, with any order of the Department of Environmental Resources or the commission concerning the safety, adequacy, efficiency or reasonableness of service, including, but not limited to, the availability of water, the potability of water, the palatability of water or the provision of water at adequate volume and pressure;

20190HB0751PN0876 - 2 - (3) that the small water or sewer utility cannot reasonably be expected to furnish and maintain adequate, efficient, safe and reasonable service and facilities in the future;

[(4) that alternatives to acquisition have been considered in accordance with subsection (b) and have been determined by the commission to be impractical or not economically feasible;] (5) that the acquiring capable public utility is financially, managerially and technically capable of acquiring and operating the small water or sewer utility in compliance with applicable statutory and regulatory standards;

and (6) that the rates charged by the acquiring capable public utility to its preacquisition customers will not increase unreasonably because of the acquisition.

[(b) Alternatives to acquisition.--Before the commission may order the acquisition of a small water or sewer utility in accordance with subsection (a), the commission shall discuss with the small water or sewer utility, and shall give such utility a reasonable opportunity to investigate, alternatives to acquisition, including, but not limited to:

(1) The reorganization of the small water or sewer utility under new management.

(2) The entering of a contract with another public utility or a management or service company to operate the small water or sewer utility.

(3) The appointment of a receiver to assure the provision of adequate, efficient, safe and reasonable service and facilities to the public.

20190HB0751PN0876 - 3 - (4) The merger of the small water or sewer utility with one or more other public utilities.

(5) The acquisition of the small water or sewer utility by a municipality, a municipal authority or a cooperative.] * * * (i) Burden of proof.--The [Law Bureau] Bureau of Investigation and Enforcement shall have the burden of establishing a prima facie case that the acquisition of the small water or sewer utility would be in the public interest and in compliance with the provisions of this section.

Once the commission determines that a prima facie case has been established:

(1) the small water or sewer utility shall have the burden of proving its ability to render adequate, efficient, safe and reasonable service at just and reasonable rates;

and (2) a proximate public utility providing the same type of service as the small water or sewer utility shall have the opportunity and burden of proving its financial, managerial or technical inability to acquire and operate the small water or sewer utility.

* * * § 702.

Service of complaints on parties.

Upon the filing of a complaint, the commission shall cause to be served upon each party named in the complaint a copy of the complaint and notice from the commission calling upon such party to satisfy the complaint, or to answer the same in writing, within such time as is specified by the commission in the notice.

Service in all hearings, investigations and proceedings pending before the commission shall be made by registered or certified mail or by e-mail upon agreement by each party.

20190HB0751PN0876 - 4 - Section 3.

Section 1301.1 of Title 66 is amended by adding a subsection to read:

§ 1301.1.