Honorable Kenneth Armbrister, Chair, Senate Committee on Natural Resources
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:
HB3284 by Guillen (Relating to requiring voter approval for certain rate increases by water and sewer utilities.), As Engrossed
No fiscal implication to the State is anticipated.
The bill would prohibit a water or sewer utility or a water supply or sewer service corporation from cumulatively increasing rates by 25 percent or more in a calendar year, except if the increase is necessary to ensure the provision of continuous and adequate services; otherwise, a majority of the customers or members of the water or sewer utility or corporation affected by the proposed rate increase would have to vote by ballot mailed with a billing or separately to approve the increase. The bill would take effect September 1, 2005.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.