79R9016 CBH-D

By:  Hilderbran                                                   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(p), Water Code, is amended 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 five-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 five-year [12-month] filing requirement.
	SECTION 3.  Section 13.187(p), Water Code, as amended by 
this Act, applies 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.