By: McClendon (Senate Sponsor - Whitmire) H.B. No. 3862
         (In the Senate - Received from the House May 14, 2007;
  May 15, 2007, read first time and referred to Committee on
  Intergovernmental Relations; May 18, 2007, reported favorably by
  the following vote:  Yeas 3, Nays 0; May 18, 2007, sent to
  printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the duties of a water service provider in an area served
  by sewer service of certain political subdivisions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter Z, Chapter 402, Local Government
  Code, is amended by adding Section 402.911 to read as follows:
         Sec. 402.911.  DUTIES OF WATER SERVICE PROVIDER TO AN AREA
  SERVED BY SEWER SERVICE OF CERTAIN POLITICAL SUBDIVISIONS. (a)
  This section applies only to an area:
               (1)  that is located in a county that has a population
  of more than one million and in which more than 80 percent of the
  population resides in a single municipality; and
               (2)  in which:
                     (A)  sewer service is provided by a municipality
  or conservation and reclamation district that also provides water
  service to other areas; and
                     (B)  an entity other than the municipality or
  district described by Paragraph (A) provides water service to the
  area.
         (b)  A municipality or conservation and reclamation district
  may provide written notice to a person to whom the municipality's or
  district's sewer service system provides service if the person has
  failed to pay for the service for more than 90 days. The notice must
  state the past due amount owed and the deadline by which the past
  due amount must be paid or the person will lose water service. The
  notice may be sent by mail or hand-delivered to the location at
  which the sewer service is provided.
         (c)  The municipality or district may notify the water
  service provider of a person who fails to make timely payment after
  the person receives notice under Subsection (b). The notice must
  indicate the number of days the person has failed to pay for sewer
  service and the total amount past due. On receipt of the notice,
  the water service provider shall discontinue water service to the
  person.
         (d)  For each person the water service provider serves in an
  area to which this section applies, the water service provider
  shall provide the municipality or district with any relevant
  customer information so that the municipality or district may bill
  users of the sewer service directly and verify the water
  consumption of users. Relevant customer information provided under
  this section includes the name, address, and telephone number of
  the customer of the water service provider, the monthly meter
  readings of the customer, monthly consumption information,
  including any billing adjustments, and certain meter information,
  such as brand, model, age, and location.
         (e)  The municipality or district shall reimburse the water
  service provider for its reasonable and actual incremental costs
  for providing services to the municipality or district under this
  section. Incremental costs are limited to only those costs that are
  in addition to the water service provider's costs in providing its
  services to its customers, and those costs must be consistent with
  the costs incurred by other water utility providers.  The water
  service provider must provide the municipality or district with
  documentation certified by a certified public accountant of the
  reasonable and actual incremental costs for providing services to
  the municipality or district under this section.
         SECTION 2.  This Act takes effect September 1, 2007.
 
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