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79R15528 MTB-D


By:  Guillen, Menendez                                            H.B. No. 3284

Substitute the following for H.B. No. 3284:                                   

By:  Puente                                                   C.S.H.B. No. 3284



A BILL TO BE ENTITLED

AN ACT

relating to requiring voter approval for certain rate increases by 
water and sewer utilities.
	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.  CERTAIN PROPOSED RATE INCREASES.  (a)  This 
section does not apply to a proposed increase in rates if the 
increase is necessary to ensure the provision of continuous and 
adequate services to the customers of a water or sewer utility or a 
water supply or sewer service corporation.
	(b)  A water or sewer utility or a water supply or sewer 
service corporation may not cumulatively increase rates by 25 
percent or more in a calendar year unless a majority of customers or 
members of the utility or corporation, voting by ballot sent in a 
bill or in a separate mailing, approve the proposed rate increase.  
The commission by rule shall prescribe the voting procedures a 
water or sewer utility or water supply or sewer service corporation 
must use under this section.
	(c)  If a majority of the ballots returned to the water or 
sewer utility or the water supply or sewer service corporation not 
later than the 90th day after the date the ballots are mailed 
approve the proposed rate increase, the water or sewer utility or 
the water supply or sewer service corporation may increase the 
rates.
	(d)  If a majority of the ballots returned to the water or 
sewer utility or the water supply or sewer service corporation not 
later than the 90th day after the date the ballots are mailed do not 
approve the proposed rate increase, the water or sewer utility or 
the water supply or sewer service corporation may not increase the 
rates.
	(e)  This section does not affect the requirement that the 
water or sewer utility or the water supply or sewer service 
corporation obtain approval of a rate increase under Subchapter F.
	SECTION 2.  This Act takes effect September 1, 2005.