82R2101 JXC-D
By: Dutton H.B. No. 491
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a water and sewer utility to impose an
impact fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.185(j), Water Code, is amended to
read as follows:
(j) Depreciation expense included in the cost of service
includes depreciation on all currently used, depreciable utility
property owned by the utility except for property provided by
explicit customer agreements or funded by customer contributions in
aid of construction. Depreciation on all currently used and useful
developer or governmental entity contributed property or
infrastructure funded by an impact fee shall be allowed in the cost
of service.
SECTION 2. Subchapter F, Chapter 13, Water Code, is amended
by adding Section 13.193 to read as follows:
Sec. 13.193. IMPACT FEE. (a) In this section, "impact fee"
means a charge or assessment imposed by a utility against a customer
to generate revenue to fund or recover the cost of constructing or
installing a tap or connection to the utility's water, sanitary
sewer, or drainage facilities, including all necessary service
lines and meters.
(b) A utility may file with the regulatory authority an
application to impose a reasonable impact fee against a customer at
the time the customer requests new construction or new
installation.
(c) A utility may change the terms under which an impact fee
is imposed or the amount of the fee only by filing an application
with the regulatory authority.
(d) An application to impose an impact fee or to change the
terms under which the fee is imposed or the amount of the fee is
considered an application to change rates for purposes of the
application of this subchapter, provided that the commission by
rule may modify a procedure or requirement as necessary to
administer this section.
(e) The utility shall deposit money received from an impact
fee into an escrow account with a financial institution approved by
the regulatory authority.
(f) Chapter 395, Local Government Code, does not apply to an
impact fee imposed under this section.
SECTION 3. This Act takes effect September 1, 2011.