85R23012 JXC-F
By: Nevárez H.B. No. 2369
Substitute the following for H.B. No. 2369:
By: Larson C.S.H.B. No. 2369
A BILL TO BE ENTITLED
AN ACT
relating to municipal fees charged to public school districts for
water and sewer service.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that the imposition of
fees for water service that are based on the number of students or
employees of a public school district diverts to other purposes
money appropriated in accordance with Section 1, Article VII, Texas
Constitution, for the education of students. For that reason, the
imposition of fees on those bases by a political subdivision
violates the Texas Constitution.
SECTION 2. The heading to Section 13.044, Water Code, is
amended to read as follows:
Sec. 13.044. RATES CHARGED BY MUNICIPALITY TO CERTAIN
SPECIAL DISTRICTS [DISTRICT].
SECTION 3. Subchapter C, Chapter 13, Water Code, is amended
by adding Section 13.0441 to read as follows:
Sec. 13.0441. FEES CHARGED BY MUNICIPALITY TO PUBLIC SCHOOL
DISTRICTS. (a) This section applies only to fees charged by a
municipality for water or sewer service to a public school
district.
(b) Notwithstanding the provisions of a resolution,
ordinance, or agreement, a public school district charged a fee
that violates Section 13.088 may appeal the charge by filing a
petition with the utility commission. The utility commission shall
hear the appeal de novo, and the municipality charging the fee has
the burden of proof to establish that the fee complies with Section
13.088. The utility commission shall fix the fees to be charged by
the municipality in accordance with this chapter, including Section
13.088.
SECTION 4. Subchapter D, Chapter 13, Water Code, is amended
by adding Section 13.088 to read as follows:
Sec. 13.088. MUNICIPAL FEES FOR PUBLIC SCHOOL DISTRICTS. A
municipally owned utility that provides retail water or sewer
utility service to a public school district may not charge the
district a fee based on the number of district students or employees
in addition to the rates the utility charges the district for the
service.
SECTION 5. (a) This section applies only to a public
school district that, after September 1, 2009, was charged a fee for
retail water or sewer utility service based on the number of
district students or employees in addition to the rates charged for
the service.
(b) Notwithstanding any other law or agreement, on the
petition of a public school district, the Public Utility Commission
of Texas shall evaluate a fee for retail water or sewer utility
service charged by a municipally owned utility to the district
after September 1, 2009, to determine whether the fee complies with
Section 13.088, Water Code, as added by this Act.
(c) If the Public Utility Commission of Texas determines
under Subsection (b) of this section that the fee does not comply
with Section 13.088, Water Code, as added by this Act, the
commission:
(1) shall fix or eliminate the fees to be charged by
the municipally owned utility in accordance with Section 13.088,
Water Code, as added by this Act;
(2) shall establish the original effective date of the
fee that does not comply with Section 13.088, Water Code, as added
by this Act, based on information submitted by the municipally
owned utility;
(3) by order shall require the municipally owned
utility to refund to the public school district money collected
from the fee described by Subdivision (2) of this subsection in
excess of the fee fixed under Subdivision (1) of this subsection;
and
(4) may allow the public school district to recover
from the municipally owned utility any reasonable expenses incurred
by the district in the process of submitting a petition under this
section.
(d) This section expires and a public school district may
not submit a petition under this section after September 1, 2020.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.