Texas House Bill HB1227

Texas 2009 - 81st Regular

Caption

Relating to a grace period from the statement issue date for payment of services to gas utilities and municipally owned utilities.

Impact

The implementation of HB 1227 would directly influence the policies and practices of gas utilities and municipally owned utilities in Texas. Utilities must adjust their operational procedures to adhere to the mandated payment grace period, which could lead to changes in their revenue collection strategies. While this may promote better consumer relations, utilities may need to manage potential cash flow impacts as customers will have a longer period to pay their bills. Moreover, the bill underscores a commitment to consumer protection by ensuring that individuals have fair opportunities to meet their financial obligations without the immediate threat of losing service.

Summary

House Bill 1227 establishes a grace period of 30 days for customers to settle their payments to gas utilities and municipally owned utilities before service disconnection or other collection measures can be pursued. This legislation aims to provide consumers, particularly those who may experience financial difficulties, a buffer period to make necessary payments after receiving their utility statements. Such a grace period could potentially reduce the frequency of service interruptions, creating a more stable environment for consumers relying on these essential services.

Contention

Despite its consumer-friendly nature, HB 1227 may encounter pushback from utility companies that view the 30-day grace period as an infringement on their financial operations and a potential hindrance to timely revenue collection. Opponents of the bill might argue that this could lead to increased operational difficulties for utilities, particularly during times of economic adjustments or when there is a spike in non-payments. Proponents, however, will likely assert that the law serves the public interest by prioritizing consumer welfare and providing critical support to those in need.