1-1 By: Bailey (Senate Sponsor - Whitmire) H.B. No. 2714
1-2 (In the Senate - Received from the House May 13, 1993;
1-3 May 14, 1993, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 20, 1993, reported favorably, as
1-5 amended, by the following vote: Yeas 10, Nays 0; May 20, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Armbrister x
1-10 Leedom x
1-11 Carriker x
1-12 Henderson x
1-13 Madla x
1-14 Moncrief x
1-15 Patterson x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 Whitmire x
1-20 COMMITTEE AMENDMENT NO. 1 By: Whitmire
1-21 Amend H.B. 2714 in Section 2 of the bill by striking added Sections
1-22 43.0565(c), (d), (e), and (f), Local Government Code (page 3, lines
1-23 3-19, house engrossment).
1-24 A BILL TO BE ENTITLED
1-25 AN ACT
1-26 relating to the provision of water and sewer service to annexed
1-27 areas of certain municipalities.
1-28 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-29 SECTION 1. Section 5.235(n), Water Code, is amended to read
1-30 as follows:
1-31 (n)(1) Each provider of potable water or sewer utility
1-32 service shall collect a regulatory assessment from each retail
1-33 customer as follows:
1-34 (A) A public utility as defined in Section
1-35 13.002 of this code shall collect from each retail customer a
1-36 regulatory assessment equal to one percent of the charge for retail
1-37 water or sewer service.
1-38 (B) A water supply or sewer service corporation
1-39 as defined in Section 13.002 of this code shall collect from each
1-40 retail customer a regulatory assessment equal to one-half of one
1-41 percent of the charge for retail water or sewer service.
1-42 (C) A district as defined in Section 50.001 of
1-43 this code that provides potable water or sewer utility service to
1-44 retail customers shall collect from each retail customer a
1-45 regulatory assessment equal to one-half of one percent of the
1-46 charge for retail water or sewer service.
1-47 (2) The regulatory assessment may be listed on the
1-48 customer's bill as a separate item and shall be collected in
1-49 addition to other charges for utility services.
1-50 (3) The commission shall use the assessments collected
1-51 from districts solely to pay costs and expenses incurred by the
1-52 commission in the regulation of districts.
1-53 (4) The commission shall use the assessments collected
1-54 from water supply or sewer service corporations solely to pay costs
1-55 and expenses incurred by the commission in the regulation of water
1-56 supply or sewer service corporations.
1-57 (5) The commission shall use the assessments collected
1-58 from public utilities solely to pay costs and expenses incurred by
1-59 the commission in the regulation of public utilities.
1-60 (6) The commission shall annually use a portion of the
1-61 assessments to provide on-site technical assistance and training to
1-62 public utilities, water supply or sewer service corporations, and
1-63 districts. The commission shall contract with others to provide
1-64 the services.
1-65 (7) Except as provided by Paragraph (A) of this
1-66 subdivision, assessments collected from retail customers for the
1-67 prior 12 months are due on January 15 of each year. The executive
1-68 director shall collect all assessments from the utility service
2-1 providers, and those funds shall be paid into the state treasury
2-2 and credited to the water utility fund.
2-3 (A) A utility service provider may make
2-4 quarterly payments due on January 15, April 15, July 15, and
2-5 October 15 of each year. If payments are made quarterly and
2-6 received by the commission not later than the 30th day after the
2-7 due date, the utility service provider may retain an administrative
2-8 fee equal to 10 percent of the amount due for costs incurred in
2-9 collecting and remitting the assessment.
2-10 (B) The commission shall assess on a utility
2-11 service provider a penalty equal to 10 percent of the amount due
2-12 for any payment received after January 31. Funds delinquent for
2-13 more than 30 days shall draw interest at the rate of 10 percent a
2-14 year on the assessment and penalty due.
2-15 (C) The commission shall assess a penalty
2-16 against a municipality with a population of more than 1.5 million
2-17 that does not provide municipal water and sewer services in an
2-18 annexed area <on or before 4-1/2 years after the annexation takes
2-19 effect> in accordance with Section 43.0565 <43.056>, Local
2-20 Government Code. A penalty assessed under this paragraph shall be
2-21 not more than $1,000 for each day the services are not provided
2-22 after March 1, 1998, for areas annexed before January 1, 1993, or
2-23 not provided within 4-1/2 years after the effective date of the
2-24 annexation for areas annexed on or after January 1, 1993 <4-1/2
2-25 years after the annexation>. A penalty collected under this
2-26 paragraph shall be deposited into a special fund in the state
2-27 treasury to be used to provide water and sewer service to residents
2-28 of the city.
2-29 (8) The regulatory assessment does not apply to water
2-30 that has not been treated for the purpose of human consumption.
2-31 SECTION 2. Subchapter C, Chapter 43, Local Government Code,
2-32 is amended by adding Section 43.0565 to read as follows:
2-33 Sec. 43.0565. PROVISION OF WATER OR SEWER SERVICE IN
2-34 POPULOUS MUNICIPALITY. (a) The requirements of this section are
2-35 in addition to those prescribed by Section 43.056.
2-36 (b) A municipality with a population of more than 1.5
2-37 million that includes within its boundaries annexed areas without
2-38 water service, sewer service, or both:
2-39 (1) shall develop a service plan that:
2-40 (A) must identify developed tracts in annexed
2-41 areas of the municipality that do not have water service, sewer
2-42 service, or both and must provide a procedure for providing water
2-43 service, sewer service, or both to those developed tracts;
2-44 (B) must establish a timetable for providing
2-45 service based on a priority system that considers potential health
2-46 hazards, population density, the number of existing buildings, the
2-47 reasonable cost of providing service, and the desires of the
2-48 residents;
2-49 (C) must include a capital improvements plan
2-50 committing the necessary financing;
2-51 (D) may relieve the municipality from an
2-52 obligation to provide water service, sewer service, or both in an
2-53 area described in the service plan if a majority of the households
2-54 in the area sign a petition stating they do not want to receive the
2-55 services; and
2-56 (E) may require property owners to connect to
2-57 service lines constructed to serve their area;
2-58 (2) shall provide water service, sewer service, or
2-59 both to at least 75 percent of the residential buildings in annexed
2-60 areas of the municipality that did not have water service, sewer
2-61 service, or both on September 1, 1991;
2-62 (3) shall provide water service to each area annexed
2-63 before January 1, 1993, if the area or subdivision as described in
2-64 the service plan contains at least 25 residences without water
2-65 service, unless a majority of the households in the area state in a
2-66 petition that they do not want municipal water service; and
2-67 (4) is subject to the penalty prescribed by Section
2-68 5.235(n)(7)(C), Water Code, for the failure to provide services.
2-69 (c) All construction and engineering contracts to provide
2-70 water services, sewer services, or both under this section shall
3-1 not include a provision requiring a contractor and/or an
3-2 engineering firm to indemnify the municipality for damages arising
3-3 from negligence of the municipality.
3-4 (d) The municipality shall allocate community development
3-5 funds to pay for all connection fees and adequate plumbing
3-6 facilities for income-eligible residents who qualify for those
3-7 funds in areas in which the municipality provides water service,
3-8 sewer service, or both under this section.
3-9 (e) The municipality shall notify residents who are not
3-10 eligible for community development funds in areas in which the
3-11 municipality provides water service, sewer service, or both under
3-12 this section that low interest loans may be available from the
3-13 Texas Water Development Board.
3-14 (f) The municipality may not annex any areas until the water
3-15 and sewer connections have been completed for prior annexed areas.
3-16 SECTION 3. The importance of this legislation and the
3-17 crowded condition of the calendars in both houses create an
3-18 emergency and an imperative public necessity that the
3-19 constitutional rule requiring bills to be read on three several
3-20 days in each house be suspended, and this rule is hereby suspended,
3-21 and that this Act take effect and be in force from and after its
3-22 passage, and it is so enacted.
3-23 * * * * *
3-24 Austin,
3-25 Texas
3-26 May 20, 1993
3-27 Hon. Bob Bullock
3-28 President of the Senate
3-29 Sir:
3-30 We, your Committee on Intergovernmental Relations to which was
3-31 referred H.B. No. 2714, have had the same under consideration, and
3-32 I am instructed to report it back to the Senate with the
3-33 recommendation that it do pass, as amended, and be printed.
3-34 Armbrister,
3-35 Chairman
3-36 * * * * *
3-37 WITNESSES
3-38 FOR AGAINST ON
3-39 ___________________________________________________________________
3-40 Name: Jim Short x
3-41 Representing: City of Houston
3-42 City: Fulshear
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3-44 Name: Cindy Jenkins x
3-45 Representing: Jim Boyle
3-46 City: Stowell
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3-48 Name: Ronald E. Hudson x
3-49 Representing: City of Houston
3-50 City: Houston
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