88R12152 KBB-D
By: Gates H.B. No. 2787
A BILL TO BE ENTITLED
AN ACT
relating to late payment fees charged by a municipally owned water
utility.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 13, Water Code, is amended
by adding Section 13.0442 to read as follows:
Sec. 13.0442. LATE PAYMENT FEES CHARGED BY MUNICIPALITY.
(a) Notwithstanding the provisions of a resolution or ordinance, a
customer charged a fee that violates Section 13.089 may appeal the
charge by filing a petition with the utility commission.
(b) 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 13.089. The utility
commission shall set the fees to be charged by the municipality in
accordance with Section 13.089.
SECTION 2. Subchapter D, Chapter 13, Water Code, is amended
by adding Section 13.089 to read as follows:
Sec. 13.089. LATE PAYMENT FEES CHARGED BY MUNICIPALITY.
(a) A municipality may not charge a late payment fee that is more
than the greater of:
(1) $5; or
(2) two percent of the amount past due, not to exceed
$500.
(b) A late payment penalty period may not begin before the
30th day after the date the municipality mails or transmits
electronically the customer's bill.
(c) A late payment penalty period must end on the date the
customer pays all past due amounts to the municipality.
SECTION 3. The changes in law made by this Act apply only to
a fee charged on or after the effective date of this Act. A fee
charged before the effective date of this Act is governed by the law
in effect on the date the fee was charged, and the former law is
continued in effect for that purpose.
SECTION 4. 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, 2023.