SRC-MAX H.B. 1406 75(R)BILL ANALYSIS


Senate Research CenterH.B. 1406
By: Bosse (Brown)
Natural Resources
4-30-97
Committee Report (Amended)


DIGEST 

Currently, nonprofit water districts are allowed to collect volunteer
contributions from customers for surrounding emergency services.  There
are concerns that investor-owned water companies are mistakenly collecting
voluntary contributions without having been granted specific authority.
This bill allows investor-owned water districts to collect voluntary
contributions for surrounding emergency services.   

PURPOSE

As proposed, H.B. 1406 set forth the procedures for the collection of
voluntary contribution on behalf of certain emergency services by
utilities. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 13E, Water Code, by adding Section 13.143, as
follows: 

Sec.  13.143.  VOLUNTARY CONTRIBUTIONS.  Authorizes a utility to implement
as part of its billing process a program under which the utility collects
from its customers a voluntary contribution on behalf of a volunteer fire
department or an emergency medical service.   Requires a utility that
collects contributions to provide each customer at certain times a written
statement that contains certain information.  Requires a billing by the
utility that includes a voluntary contribution to clearly state that the
contribution is voluntary and that it may be deducted from the billed
amount.  Requires the utility to promptly deliver contributions that it
collects to the designated volunteer fire department or emergency medical
service, but authorizes the utility to keep from the contribution a
certain amount. Provides that the amounts collected under this section are
not rates and are not subject to regulatory assessments, late payment
penalties, or other utility-related fees and are not required to be shown
in tariffs filed with the regulatory authority.   

SECTION 2. Makes application of this Act prospective.  

SECTION 3. Emergency clause.
  Effective date:  upon passage.

SUMMARY OF COMMITTEE CHANGES

Amendment 1.

Page 2, line 13, insert the following language into Subsection (e):

(e)...rates are not subject to regulatory assessments, late payment
penalties, or other utilityrelated fees and are not...