| 1 | 1 | | 89R6359 ANG-D |
|---|
| 2 | 2 | | By: Gates H.B. No. 2867 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to late payment fees charged by a municipally owned water |
|---|
| 10 | 10 | | utility. |
|---|
| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 12 | 12 | | SECTION 1. Subchapter Z, Chapter 552, Local Government |
|---|
| 13 | 13 | | Code, is amended by adding Section 552.916 to read as follows: |
|---|
| 14 | 14 | | Sec. 552.916. LATE PAYMENT FEES FOR WATER OR SEWER SERVICE. |
|---|
| 15 | 15 | | (a) A municipal utility that provides water or sewer service may |
|---|
| 16 | 16 | | not charge a late payment fee that: |
|---|
| 17 | 17 | | (1) before the 32nd day of the late payment penalty |
|---|
| 18 | 18 | | period is more than the greater of: |
|---|
| 19 | 19 | | (A) $5; or |
|---|
| 20 | 20 | | (B) two percent of the amount past due; |
|---|
| 21 | 21 | | (2) on or after the 32nd day but before the 41st day of |
|---|
| 22 | 22 | | the late payment penalty period is more than the greater of: |
|---|
| 23 | 23 | | (A) $5; or |
|---|
| 24 | 24 | | (B) five percent of the amount past due; or |
|---|
| 25 | 25 | | (3) on or after the 41st day but before the 51st day of |
|---|
| 26 | 26 | | the late payment penalty period is more than the greater of: |
|---|
| 27 | 27 | | (A) $5; or |
|---|
| 28 | 28 | | (B) 10 percent of the amount past due. |
|---|
| 29 | 29 | | (b) A late payment penalty period may not begin before the |
|---|
| 30 | 30 | | 21st day after the date the municipal utility mails or transmits |
|---|
| 31 | 31 | | electronically the customer's bill. |
|---|
| 32 | 32 | | (c) A late payment penalty period must end on the date the |
|---|
| 33 | 33 | | customer pays all past due amounts to the municipal utility. |
|---|
| 34 | 34 | | SECTION 2. The changes in law made by this Act apply only to |
|---|
| 35 | 35 | | a fee charged on or after the effective date of this Act. A fee |
|---|
| 36 | 36 | | charged before the effective date of this Act is governed by the law |
|---|
| 37 | 37 | | in effect on the date the fee was charged, and the former law is |
|---|
| 38 | 38 | | continued in effect for that purpose. |
|---|
| 39 | 39 | | SECTION 3. This Act takes effect immediately if it receives |
|---|
| 40 | 40 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 41 | 41 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 42 | 42 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 43 | 43 | | Act takes effect September 1, 2025. |
|---|