| 1 | 1 | | 87R1981 BRG-D |
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| 2 | 2 | | By: Gates H.B. No. 1873 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to late payment fees charged by a municipally owned water |
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| 8 | 8 | | utility. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter C, Chapter 13, Water Code, is amended |
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| 11 | 11 | | by adding Section 13.0442 to read as follows: |
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| 12 | 12 | | Sec. 13.0442. LATE PAYMENT FEES CHARGED BY MUNICIPALITY. |
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| 13 | 13 | | (a) Notwithstanding the provisions of a resolution or ordinance, a |
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| 14 | 14 | | customer charged a fee that violates Section 13.089 may appeal the |
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| 15 | 15 | | charge by filing a petition with the utility commission. |
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| 16 | 16 | | (b) The utility commission shall hear the appeal de novo, |
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| 17 | 17 | | and the municipality charging the fee has the burden of proof to |
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| 18 | 18 | | establish that the fee complies with Section 13.089. The utility |
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| 19 | 19 | | commission shall set the fees to be charged by the municipality in |
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| 20 | 20 | | accordance with Section 13.089. |
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| 21 | 21 | | SECTION 2. Subchapter D, Chapter 13, Water Code, is amended |
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| 22 | 22 | | by adding Section 13.089 to read as follows: |
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| 23 | 23 | | Sec. 13.089. LATE PAYMENT FEES CHARGED BY MUNICIPALITY. |
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| 24 | 24 | | (a) A municipality may not charge a late payment fee that is more |
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| 25 | 25 | | than the greater of: |
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| 26 | 26 | | (1) $5; or |
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| 27 | 27 | | (2) two percent of the amount past due, not to exceed |
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| 28 | 28 | | $500. |
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| 29 | 29 | | (b) A late payment penalty period may not begin before the |
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| 30 | 30 | | 30th day after the date the municipality mails or transmits |
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| 31 | 31 | | electronically the customer's bill. |
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| 32 | 32 | | (c) A late payment penalty period must end on the date the |
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| 33 | 33 | | customer pays all past due amounts to the municipality. |
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| 34 | 34 | | SECTION 3. The changes in law made by this Act apply only to |
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| 35 | 35 | | a fee charged on or after the effective date of this Act. A fee |
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| 36 | 36 | | charged before the effective date of this Act is governed by the law |
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| 37 | 37 | | in effect on the date the fee was charged, and the former law is |
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| 38 | 38 | | continued in effect for that purpose. |
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| 39 | 39 | | SECTION 4. This Act takes effect immediately if it receives |
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| 40 | 40 | | a vote of two-thirds of all the members elected to each house, as |
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| 41 | 41 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 42 | 42 | | Act does not receive the vote necessary for immediate effect, this |
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| 43 | 43 | | Act takes effect September 1, 2021. |
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