Honorable Robert Puente, Chair, House 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 Introduced
No fiscal implication to the State is anticipated.
The bill would prohibit a water or sewer utility 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 members/customers in the water or sewer utility affected by the proposed rate increase would have to vote to approve the increase. The bill would take effect September 1, 2005.
Local Government Impact
Based on data submitted by various local government entities to the Secretary of State in March 2004, the average cost per registered voter for an election is $1.29. The cost would vary by utility and would depend on the number of voters affected.