By: Jackson S.B. No. 1074
(In the Senate - Filed March 2, 2011; March 16, 2011, read
first time and referred to Committee on Natural Resources;
May 4, 2011, reported favorably by the following vote: Yeas 7,
Nays 0; May 4, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to water districts' authority to set rates and a
presumption of validity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 49.2122, Water Code, is
amended to read as follows:
Sec. 49.2122. AUTHORITY TO SET RATES; PRESUMPTION OF
VALIDITY [ESTABLISHMENT OF CUSTOMER CLASSES].
SECTION 2. Subsection (b), Section 49.2122, Water Code, is
amended to read as follows:
(b) A district is presumed to have weighed and considered
appropriate factors in establishing customer classes and rates and
to have properly established customer classes, rates, charges,
fees, rentals, and deposits absent a showing by a ratepayer at a
hearing on an appeal filed under Section 13.043(b) that the
district had no reasonable basis for its action. A district's rates
are presumed just and reasonable and not unreasonably preferential,
prejudicial, or discriminatory absent a showing by a ratepayer at a
hearing on an appeal filed under Section 13.043(b) that the
district had no reasonable basis for its action [that the district
acted arbitrarily and capriciously].
SECTION 3. The changes in law made by Section 49.2122, Water
Code, as amended by this Act, apply only to rates established on or
after the effective date of this Act. A rate established before the
effective date of this Act is governed by the law in effect
immediately before that date, and that law is continued in effect
for that purpose.
SECTION 4. This Act takes effect September 1, 2011.
* * * * *