BILL ANALYSIS

 

 

                                                                                                                                             H.B. 841

                                                                                                                                     By: Kolkhorst

                                                                                                                               Natural Resources

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

Recreational Vehicle parks and campground owners in Texas are experiencing a disparity in the water and wastewater rates they pay relative to rates charged to similar commercial entities within their communities. While some retail water utility rates are regulated by the Texas Commission on Environmental Quality (TCEQ), in other instances water and wastewater rates are set by cities. A problem occurs when cities view RV parks as "residential entities," instead of commercial entities like hotels and motels, in setting water and wastewater rates.

 

HB 841 eliminates the disparity in rates by requiring municipal utilities to use the same basis for determining water and wastewater rates for campgrounds and RV parks as they use for similar commercial entities, like hotels and motels. 

 

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

 

H.B. 841 requires a municipally owned utility to determine rates for non-submetered water and wastewater service for recreational vehicle parks on the same basis the utility uses to determine rates for other commercial businesses, such as hotels and motels, serving transient customers and receiving non-submetered service. The bill also grants TCEQ authority to enforce its provisions.

 

EFFECTIVE DATE

 

H.B. 841 takes effect on Sept. 1, 2005.