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          AN ACT
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        relating to the frequency of water audits by certain retail public  | 
      
      
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        utilities. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Sections 16.0121(b) and (b-1), Water Code, are  | 
      
      
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        amended to read as follows: | 
      
      
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               (b)  Except as provided by Subsection (b-1), a retail public  | 
      
      
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        utility providing potable water [that receives from the board 
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          financial assistance] shall perform and file with the board an  | 
      
      
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        annual water audit computing the utility's system water loss during  | 
      
      
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        the preceding year. | 
      
      
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               (b-1)  A retail public utility providing potable water that  | 
      
      
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        does not receive from the board financial assistance and is  | 
      
      
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        providing service to 3,300 or fewer connections shall perform and  | 
      
      
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        file with the board every five years a water audit computing the  | 
      
      
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        utility's most recent annual system water loss. | 
      
      
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               SECTION 2.  Not later than May 1, 2014, a retail public  | 
      
      
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        utility shall submit its initial annual water audit required by  | 
      
      
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        Section 16.0121(b), Water Code, as amended by this Act.  The initial  | 
      
      
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        water audit shall compute the utility's most recent annual system  | 
      
      
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        water loss. | 
      
      
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               SECTION 3.  This Act takes effect September 1, 2013. | 
      
      
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        ______________________________ | 
        ______________________________ | 
      
      
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           President of the Senate | 
        Speaker of the House      | 
      
      
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               I certify that H.B. No. 857 was passed by the House on April  | 
      
      
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        25, 2013, by the following vote:  Yeas 135, Nays 1, 2 present, not  | 
      
      
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        voting; and that the House concurred in Senate amendments to H.B.  | 
      
      
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        No. 857 on May 16, 2013, by the following vote:  Yeas 139, Nays 4, 2  | 
      
      
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        present, not voting. | 
      
      
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        ______________________________ | 
      
      
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        Chief Clerk of the House    | 
      
      
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               I certify that H.B. No. 857 was passed by the Senate, with  | 
      
      
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        amendments, on May 13, 2013, by the following vote:  Yeas 31, Nays  | 
      
      
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        0. | 
      
      
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        ______________________________ | 
      
      
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        Secretary of the Senate    | 
      
      
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        APPROVED: __________________ | 
      
      
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                        Date        | 
      
      
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                 __________________ | 
      
      
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                      Governor        |