Texas Senate Bill SB1925

Texas 2019 - 86th Regular

Caption

Relating to late payment fees charged by a municipally owned water utility.

Impact

The bill's enactment represents a significant change in how municipally owned water utilities can charge for late payments, ensuring that there are clear and reasonable limits. This adjustment not only impacts the financial aspects for consumers but also compels municipalities to adhere to a standardized fee structure. By augmenting consumer rights regarding billing disputes, the bill empowers customers to appeal late fees they believe are unjust, thus promoting fairness in municipal water billing practices.

Summary

SB1925 introduces amendments to the Water Code regarding late payment fees imposed by municipally owned water utilities. The bill stipulates specific limitations on the amount of late fees that can be charged, setting a maximum fee of either $5 or 2% of the past due amount, capped at $500. Additionally, it establishes that a late fee cannot be applied until 30 days after the customer has received the bill. This aim of this regulation is to provide protection to consumers against excessive late fees and ensure transparency in billing practices by municipal utilities.

Contention

While the bill is primarily focused on consumer protection, there may be contention surrounding the compliance burden it imposes on municipalities. There may be concerns expressed by municipal officials regarding their ability to efficiently manage and collect payments while adhering to the newly regulated fee structures. Some opponents could argue that setting such limits constricts local governance and the ability of municipalities to effectively manage their budgets and operational costs associated with water utilities.