85R9404 JXC-F
By: Nevárez H.B. No. 2369
A BILL TO BE ENTITLED
AN ACT
relating to municipal rates for water and sewer service charged to
public school districts.
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. RATES CHARGED BY MUNICIPALITY TO PUBLIC
SCHOOL DISTRICTS. (a) This section applies to rates 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 may appeal the
rates charged to the district by the municipality by filing a
petition with the utility commission. The utility commission shall
hear the appeal de novo, and the municipality shall have the burden
of proof to establish that the rates are just and reasonable. The
utility commission shall fix the rates to be charged by the
municipality in accordance with this chapter, including Section
13.088, and the municipality may not increase those rates without
the approval of the utility commission.
SECTION 4. Subchapter D, Chapter 13, Water Code, is amended
by adding Section 13.088 to read as follows:
Sec. 13.088. MUNICIPAL RATES FOR PUBLIC SCHOOL DISTRICTS.
(a) A municipally owned utility that provides retail water or sewer
utility service to a public school district shall charge the
district for that service the lowest rates the utility charges
commercial businesses or nonprofit organizations that receive
retail water or sewer utility service from the utility.
(b) A municipally owned utility that provides retail water
or sewer utility service to a public school district may not charge
the district:
(1) a fee that the utility does not charge commercial
businesses that receive retail water or sewer utility service from
the utility; or
(2) a fee based on the number of district students or
employees.
SECTION 5. (a) This section applies only to a public
school district that, after August 1, 2012, was charged a rate or
fee for retail water or sewer utility service based on the number of
district students or employees.
(b) Notwithstanding any other law or agreement, on the
petition of a public school district, the Public Utility Commission
of Texas shall evaluate a rate or fee for retail water or sewer
utility service charged by a municipally owned utility to the
district after August 1, 2012, to determine whether the rate or fee
complies with Chapter 13, Water Code, as amended by this Act.
(c) If the Public Utility Commission of Texas determines
under Subsection (b) of this section that the rate or fee does not
comply with Chapter 13, Water Code, as amended by this Act, the
commission:
(1) shall fix the rate or fee to be charged by the
municipally owned utility in accordance with Chapter 13, Water
Code, as amended by this Act;
(2) shall establish the original effective date of the
rate or fee that does not comply with Chapter 13, Water Code, as
amended by this Act, based on information submitted by the
municipally owned utility;
(3) shall by order require the municipally owned
utility to refund to the public school district money collected
from the rate or fee described by Subdivision (2) of this subsection
in excess of the rate or 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, 2022.
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.