By Bailey H.B. No. 2714
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the provision of water and sewer service to annexed
1-3 areas of certain municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 5.235(n), Water Code, is amended to read
1-6 as follows:
1-7 (n)(1) Each provider of potable water or sewer utility
1-8 service shall collect a regulatory assessment from each retail
1-9 customer as follows:
1-10 (A) A public utility as defined in Section
1-11 13.002 of this code shall collect from each retail customer a
1-12 regulatory assessment equal to one percent of the charge for retail
1-13 water or sewer service.
1-14 (B) A water supply or sewer service corporation
1-15 as defined in Section 13.002 of this code shall collect from each
1-16 retail customer a regulatory assessment equal to one-half of one
1-17 percent of the charge for retail water or sewer service.
1-18 (C) A district as defined in Section 50.001 of
1-19 this code that provides potable water or sewer utility service to
1-20 retail customers shall collect from each retail customer a
1-21 regulatory assessment equal to one-half of one percent of the
1-22 charge for retail water or sewer service.
1-23 (2) The regulatory assessment may be listed on the
2-1 customer's bill as a separate item and shall be collected in
2-2 addition to other charges for utility services.
2-3 (3) The commission shall use the assessments collected
2-4 from districts solely to pay costs and expenses incurred by the
2-5 commission in the regulation of districts.
2-6 (4) The commission shall use the assessments collected
2-7 from water supply or sewer service corporations solely to pay costs
2-8 and expenses incurred by the commission in the regulation of water
2-9 supply or sewer service corporations.
2-10 (5) The commission shall use the assessments collected
2-11 from public utilities solely to pay costs and expenses incurred by
2-12 the commission in the regulation of public utilities.
2-13 (6) The commission shall annually use a portion of the
2-14 assessments to provide on-site technical assistance and training to
2-15 public utilities, water supply or sewer service corporations, and
2-16 districts. The commission shall contract with others to provide
2-17 the services.
2-18 (7) Except as provided by Paragraph (A) of this
2-19 subdivision, assessments collected from retail customers for the
2-20 prior 12 months are due on January 15 of each year. The executive
2-21 director shall collect all assessments from the utility service
2-22 providers, and those funds shall be paid into the state treasury
2-23 and credited to the water utility fund.
2-24 (A) A utility service provider may make
2-25 quarterly payments due on January 15, April 15, July 15, and
3-1 October 15 of each year. If payments are made quarterly and
3-2 received by the commission not later than the 30th day after the
3-3 due date, the utility service provider may retain an administrative
3-4 fee equal to 10 percent of the amount due for costs incurred in
3-5 collecting and remitting the assessment.
3-6 (B) The commission shall assess on a utility
3-7 service provider a penalty equal to 10 percent of the amount due
3-8 for any payment received after January 31. Funds delinquent for
3-9 more than 30 days shall draw interest at the rate of 10 percent a
3-10 year on the assessment and penalty due.
3-11 (C) The commission shall assess a penalty
3-12 against a municipality with a population of more than 1.5 million
3-13 that does not provide municipal water and sewer services in an
3-14 annexed area <on or before 4-1/2 years after the annexation takes
3-15 effect> in accordance with Section 43.0565 <43.056>, Local
3-16 Government Code. A penalty assessed under this paragraph shall be
3-17 not more than $1,000 for each day the services are not provided
3-18 after March 1, 1998, for areas annexed before January 1, 1993, or
3-19 not provided within 4-1/2 years after the effective date of the
3-20 annexation for areas annexed on or after January 1, 1993 <4-1/2
3-21 years after the annexation>. A penalty collected under this
3-22 paragraph shall be deposited into a special fund in the state
3-23 treasury to be used to provide water and sewer service to residents
3-24 of the city.
3-25 (8) The regulatory assessment does not apply to water
4-1 that has not been treated for the purpose of human consumption.
4-2 SECTION 2. Subchapter C, Chapter 43, Local Government Code,
4-3 is amended by adding Section 43.0565 to read as follows:
4-4 Sec. 43.0565. PROVISION OF WATER OR SEWER SERVICE IN
4-5 POPULOUS MUNICIPALITY. (a) The requirements of this section are
4-6 in addition to those prescribed by Section 43.056.
4-7 (b) A municipality with a population of more than 1.5
4-8 million that includes within its boundaries annexed areas without
4-9 water service, sewer service, or both:
4-10 (1) shall develop a service plan that:
4-11 (A) must identify developed tracts in annexed
4-12 areas of the municipality that do not have water service, sewer
4-13 service, or both and must provide a procedure for providing water
4-14 service, sewer service, or both to those developed tracts;
4-15 (B) must establish a timetable for providing
4-16 service based on a priority system that considers potential health
4-17 hazards, population density, the number of existing buildings, the
4-18 reasonable cost of providing service, and the desires of the
4-19 residents;
4-20 (C) must include a capital improvements plan
4-21 committing the necessary financing;
4-22 (D) may relieve the municipality from an
4-23 obligation to provide water service, sewer service, or both in an
4-24 area described in the service plan if a majority of the households
4-25 in the area sign a petition stating they do not want to receive the
5-1 services; and
5-2 (E) may require property owners to connect to
5-3 service lines constructed to serve their area;
5-4 (2) shall provide water service, sewer service, or
5-5 both to at least 75 percent of the residential buildings in annexed
5-6 areas of the municipality that did not have water service, sewer
5-7 service, or both on September 1, 1991;
5-8 (3) shall provide water service to each area annexed
5-9 before January 1, 1993, if the area or subdivision as described in
5-10 the service plan contains at least 25 residences without water
5-11 service, unless a majority of the households in the area state in a
5-12 petition that they do not want municipal water service; and
5-13 (4) is subject to the penalty prescribed by Section
5-14 5.235(n)(7)(C), Water Code, for the failure to provide services.
5-15 (c) All construction and engineering contracts to provide
5-16 water services, sewer services, or both under this section shall
5-17 not include a provision requiring a contractor and/or an
5-18 engineering firm to indemnify the municipality for damages arising
5-19 from negligence of the municipality.
5-20 (d) The municipality shall allocate community development
5-21 funds to pay for all connection fees and adequate plumbing
5-22 facilities for income-eligible residents who qualify for those
5-23 funds in areas in which the municipality provides water service,
5-24 sewer service, or both under this section.
5-25 (e) The municipality shall notify residents who are not
6-1 eligible for community development funds in areas in which the
6-2 municipality provides water service, sewer service, or both under
6-3 this section that low interest loans may be available from the
6-4 Texas Water Development Board.
6-5 (f) The municipality may not annex any areas until the water
6-6 and sewer connections have been completed for prior annexed areas.
6-7 SECTION 3. The importance of this legislation and the
6-8 crowded condition of the calendars in both houses create an
6-9 emergency and an imperative public necessity that the
6-10 constitutional rule requiring bills to be read on three several
6-11 days in each house be suspended, and this rule is hereby suspended,
6-12 and that this Act take effect and be in force from and after its
6-13 passage, and it is so enacted.