78S10705 JJT-F

By:  Hughes                                                       H.B. No. 125



A BILL TO BE ENTITLED

AN ACT

relating to the provision of water service, sewer service, and 
wastewater treatment service.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 13, Water Code, is amended by adding 
Subchapter O to read as follows:

SUBCHAPTER O.  SPECIAL PROVISIONS REGARDING WATER, SEWER,
OR WASTEWATER TREATMENT SERVICE PROVIDED BY A MUNICIPALITY
	Sec. 13.551.  DETERMINATION OF COST OF SERVICE FOR CERTAIN 
MUNICIPALITIES.  (a)  This section applies only to a municipality 
with a population of less than 10,000 and applies to services 
provided under this chapter or under Chapter 11 or 12.
	(b)  A municipality may determine its cost of service for 
providing water service, sewer service, or wastewater treatment 
service to another municipality by dividing the total costs for the 
appropriate water, sewer, or treatment function, as recorded in the 
most recent audited financial statements, by the total volume of 
service billed for that function.
	Sec. 13.552.  BURDEN OF PROOF AND PAYMENT OF EXPENSES IN 
PETITION FOR REVIEW OR APPEAL OF RATES FOR SALE OF WATER FOR RESALE.  
(a)  The commission may not take action on a petition for a review of 
rates charged for the sale of water for resale under Chapter 11 or 
12 or an appellant under Section 13.043(f) unless the petitioner 
demonstrates that the rate charged adversely affects the public 
interest.
	(b)  If the commission does not find that a rate that is the 
subject of a petition or appeal described by Subsection (a) 
adversely affects the public interest, the commission shall assess 
against the petitioners or appellants reasonable expenses incurred 
in responding to the petition or appeal by the person charging the 
rate reviewed or appealed.  This subsection applies only to 
petitions or appeals of rates by a petitioner or appellant that has 
not had a rate increase by the person charging the rate reviewed or 
appealed in at least 10 years.
	Sec. 13.553.  ORDER COMPELLING PROVISION OF SEWER SERVICE OR 
WASTEWATER TREATMENT SERVICE.  The commission may not order a 
municipality to provide another municipality sewer service or 
wastewater treatment service unless the commission finds that an 
emergency exists.
	SECTION 2.  Subchapter O, Chapter 13, Water Code, as added by 
this Act, applies to a petition or appeal filed on or after the 
effective date of this Act and to a petition or appeal that is 
pending on November 1, 2003.  As necessary to facilitate the 
implementation of that subchapter, the Texas Commission on 
Environmental Quality shall suspend any hearing brought under the 
Water Code that involves a municipality seeking review of or 
appealing a rate for water or sewer service that is pending on 
November 1, 2003.
	SECTION 3.  This Act takes effect November 1, 2003.