By:  Puente                                                       H.B. No. 1152



A BILL TO BE ENTITLED

AN ACT

relating to the authority of certain nonprofit water supply 
corporations and sewer service corporations to establish and 
enforce customer water conservation measures.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 67.011, Water Code, is amended to read as 
follows:       
	Sec. 67.011.  POWERS OF CORPORATION IN CERTAIN COUNTIES.  
(a) In a county with a population of less than 3.3 million, a 
corporation may:
		(1)  own, hold, lease, or otherwise acquire water 
wells, springs, or other sources of water supply;
		(2)  build, operate, and maintain pipelines to 
transport water or wastewater;
		(3)  build and operate plants and equipment necessary 
to distribute water or to treat and dispose of wastewater; [and]
		(4)  sell water or provide wastewater services to a 
political subdivision, a private corporation, or an individual; and
		(5)  establish and enforce reasonable customer water 
conservation practices and prohibit excessive or wasteful uses of 
potable water.
	(b)  A corporation may enforce customer water conservation 
practices under Subsection (a)(5) by assessing reasonable 
penalties as provided in the corporation's tariff.  A penalty may be 
appealed in the same manner as provided for appeal of new customer 
service costs under Section 13.043(g).  In an appeal, the 
commission shall approve a corporation's penalty if the commission 
determines that the penalty is clearly stated in the tariff, that 
the penalty is reasonable, and that the corporation has deposited 
the penalty in a separate account dedicated to enhancing water 
supply for the benefit of all the corporation's customers.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.