SRC-TJG H.B. 2388 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2388
By: Cook, Robby (Armbrister)
Natural Resources
5/21/2003
Engrossed


DIGEST AND PURPOSE 

Section 13.501 of the Texas Water Code allows the  owner or manager of
several types of rental properties, including apartments, to bill
residents for submetered or allocated water consumed by them in their
respective homes.  The Texas Commission on Environmental Quality (TCEQ)
regulates water billing and a number of consumer protections are built
into the rules.  For example, residents must receive a lease addendum
outlining the billing program and must also receive a summary of the rules
prepared by TCEQ.  Rules also govern areas such as the type  of
information that must be included on a bill and billing calculations.  

When a property is submetered, the property owner sends a bill to the
resident for only the water actually consumed in the resident's apartment
unit.  When  a property is not submetered, the property owner sends the
resident an  allocated bill that is calculated based on a  formula
approved by TCEQ.   The property owner is responsible for paying the
entire property's mastermetered water bill, and then collects the
submetered or allocated water bills from the residents. 

It is common to allow a late fee on utility bills to encourage customers
to pay in a timely manner. For example, the Public Utility Commission
rules for submetered or allocated electricity specifically allow  a 5
percent late fee if the resident does not pay his bill  on time.  But TCEQ
rules (and the Water Code) are silent  on late fees for submetered or
allocated water.  They neither expressly allow nor prohibit a property
owner from charging the resident a late fee when the resident is
delinquent in paying his water bill to the landlord.  Without the ability
to charge late fees, the property owner is left with few realistic
alternatives short of seeking an eviction whenever the resident fails to
pay a submetered or allocated water bill.  Under TCEQ rules, a tenant has
at least 16 days from the time the bill is mailed or hand delivered  to
the tenant to pay a water bill before it is considered delinquent.   

H.B. 2388 would allow a property owner to charge a resident a late fee of
up to 5 percent if the resident does not pay a submetered or allocated
water bill by the due date.     

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 13.503, Water Code, by amending Subsections (a)
and (b) and adding Subsection (e), as follows: 

(a) Requires the Texas Commission on Environmental Quality (TCEQ) to
encourage submetering of individual rental or dwelling units by master
meter operators or building owners to enhance the conservation of water
resources. 

(b) Requires the rules to allow an owner or manager to charge a tenant a
fee for late payment of a submetered water bill if the amount of the fee
does not exceed five percent of the bill paid late.  Makes a conforming
change.  

 (e) Authorizes TCEQ to authorize a building owner to use submetering
equipment that relies on integrated radio based meter reading systems and
remote registration in a building plumbing system using submeters that
comply with nationally recognized plumbing standards and are as accurate
as utility water meters in single application conditions. 

SECTION 2.  Amends Section 13.5031, Water Code, to add the authority of
the owner or condominium manager to charge a tenant a fee for late payment
of an allocated water bill if the amount of the fee does not exceed five
percent of the bill paid late to the list of requirements of the rules
adopted by TCEQ in this section.  Makes conforming and nonsubstantive
changes.  

SECTION 3.  Effective date: September 1, 2003.