79R14892 CBH-D


By:  Hilderbran, Van Arsdale, Otto, Hope,                         H.B. No. 2585
 
    et al.                                                                   

Substitute the following for H.B. No. 2585:                                   

By:  Puente                                                   C.S.H.B. No. 2585



A BILL TO BE ENTITLED

AN ACT

relating to the  rates of and billing cycle used by a water and sewer 
utility.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 13, Water Code, is amended 
by adding Section 13.146 to read as follows:
	Sec. 13.146.  BILLING CYCLE OF WATER AND SEWER UTILITY.  A 
water and sewer utility may not adopt or use a billing cycle for 
retail service that is less than 30 days.
	SECTION 2.  Section 13.187, Water Code, is amended by 
amending Subsection (p) and adding Subsection (q) to read as 
follows:
	(p)  Except to implement a rate adjustment provision 
approved by the regulatory authority by rule or ordinance, as 
applicable, or to adjust the rates of a newly acquired utility 
system, a utility or two or more utilities under common control and 
ownership may not file a statement of intent to increase its rates 
more than once in a three-year [12-month] period, unless the 
regulatory authority determines that a financial hardship exists.  
If the regulatory authority requires the utility to deliver a 
corrected statement of intent, the utility is not considered to be 
in violation of the three-year [12-month] filing requirement.
	(q)  Notwithstanding any other provision of this section, 
the commission is considered to have approved a rate change if the 
commission not made a final determination on the rate change on or 
before:
		(1)  the 180th day after the effective date of the rate 
change, if the commission does not set the matter for hearing; or
		(2)  the 545th day after the effective date of the rate 
change, if the commission does set the matter for hearing, 
regardless of whether the hearing has been completed on that date.
	SECTION 3.  Section 13.187(p), Water Code, as amended by 
this Act, and Section 13.187(q), Water Code, as added by this Act, 
apply only to a statement of intent to increase rates filed on or 
after the effective date of this Act.  A statement filed before the 
effective date of this Act is governed by the law in effect on the 
date the statement was filed, and that law is continued in effect 
for that purpose.
	SECTION 4.  This Act takes effect September 1, 2005.