REPORTS REQUIRED FOR WATER AND SEWER UTILITIES.

(a) This section applies only to a utility that provides retail water or sewer utility service through fewer than 10,000 taps or connections.

(b) Except as provided by Subsection (c), a utility shall deliver to the utility commission a report of the utility's financial, managerial, and technical capacity to provide continuous and adequate service to its customers not later than the third anniversary of the date that the utility violates a final order of the commission by failing to:

(1) provide system capacity that is greater than the required raw water or groundwater production rate or the anticipated daily demand of the system;

(2) provide a minimum pressure of 35 pounds per square inch throughout the distribution system under normal operating conditions; or

(3) maintain accurate or properly calibrated testing equipment or other means of monitoring the effectiveness of a chemical treatment or pathogen inactivation or removal process.

(c) A utility that has an existing obligation to deliver a report under Subsection (b) is not required to deliver another report as a result of the occurrence of an event described by Subsection (b) if the event occurs before the date that the utility delivers the report required by Subsection (b).

(d) On receiving notice that a utility has violated an order described by Subsection (b), the commission shall provide written notice of the violation to the utility commission.

(e) The utility commission shall deliver a copy of a report received under Subsection (b) to:

(1) each state senator representing a district that contains a portion of the service area of the utility that submitted the report; and

(2) each state representative representing a district that contains a portion of the service area of the utility that submitted the report.

(f) If a utility fails to deliver a report in accordance with Subsection (b), the utility commission shall report the failure to:

(1) the commission;

(2) each state senator representing a district that contains a portion of the utility's service area; and

(3) each state representative representing a district that contains a portion of the utility's service area.