C.S.H.B. 2036 78(R) BILL ANALYSIS C.S.H.B. 2036 By: Swinford Government Reform Committee Report (Substituted) BACKGROUND AND PURPOSE Cities lose significant revenue when customers move to another city and fail to pay owed utility bills to their original city. Revenue losses are most prevalent in the water and sewer services, although solid waste services also experience losses. Traditionally, those customers who pay their bills are forced to cover the debts of those who do not. To ensure equity among all customers and to perform due diligence in the management of public funds, cities and other public entities have expressed interest in being able to work with each other to collect past due charges. C.S.H.B. 2036 will authorize cities and other public entities to work cooperatively to recover lost revenue by collecting unpaid utility charges or solid waste services disposal fees. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS SECTION 1. Amends Chapter 402, Subchapter Z, Local Government Code, by adding Section 402.910 which authorizes a municipality that operates a utility system or provides solid waste disposal services to enter an agreement for the collection of unpaid utility charges or solid waste disposal services fees with another municipality, a county or public agency that operates these services, or another political subdivision acting on behalf of any of these entities to assist in the collection of unpaid utility charges or solid waste disposal fees. Section 402.910 allows a municipality to refuse to provide service to a person who owes past due utility charges or solid waste disposal services fees to another party to the agreement. Section 402.910 also authorizes a municipality under agreement to collect past due charges or fees owed to another party to the agreement and a service charge. Section 402.910 requires that the agreement provide for the apportionment of any past due charges, fees, and service charges between the collecting entity and the entity to which the fees are owed. SECTION 2. Amends Section 364.034(e), Health and Safety Code, by providing that Section 364.034(e) must not limit the authority of a municipality to contract with another public agency, private contractor for the other public agency, or private contractor to provide all or some solid waste disposal services to persons in its territory. SECTION 3. Amends Chapter 364, Subchapter C, Health and Safety Code, by adding Section 364.037 which authorizes a county or public agency that offers solid waste disposal services to enter an agreement for the collection of unpaid utility charges or solid waste disposal services fees with another county or public agency, a municipality that operates these services, or another political subdivision acting on behalf of any of these entities to assist in the collection of unpaid utility charges or solid waste disposal fees. Section 364.037 allows the county or public agency to refuse to provide solid waste disposal services to a person who owes past due utility charges or solid waste disposal services fees to another party to the agreement. Section 364.037 also allows a county or public agency under agreement to collect past due charges or fees owed to another party to the agreement and a service charge. Section 364.037 requires that the agreement provide for the apportionment of any past due charges, fees, and service charges between the collecting entity and the entity to which the fees are owed. SECTION 3. Effective Date. EFFECTIVE DATE This Act takes effect immediately with a vote of two-thirds of all members elected to each house. If this Act does not receive the necessary votes for immediate effect, this Act takes effect September 1, 2003. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original by adding provisions to authorize another political subdivision acting on behalf of a municipality, county, or public agency to enter an agreement to assist in the collection of unpaid utility charges or solid waste disposal fees (Section 402.910 and Section 364.037, Health and Safety Code). The substitute adds SECTION 2 and renumbers the remaining sections accordingly. The substitute provides that Section 364.034 (e) must not limit the authority of a municipality to contract with another public agency, private contractor for the other public agency, or private contractor to provide all or some solid waste disposal services to person in its territory (Section 364.034, Health and Safety Code).