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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a water and sewer utility to impose an |
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impact fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.185(j), Water Code, is amended to |
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read as follows: |
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(j) Depreciation expense included in the cost of service |
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includes depreciation on all currently used, depreciable utility |
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property owned by the utility except for property provided by |
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explicit customer agreements or funded by customer contributions in |
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aid of construction. Depreciation on all currently used and useful |
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developer or governmental entity contributed property or |
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infrastructure funded by an impact fee shall be allowed in the cost |
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of service. |
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SECTION 2. Subchapter F, Chapter 13, Water Code, is amended |
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by adding Section 13.193 to read as follows: |
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Sec. 13.193. IMPACT FEE. (a) In this section, "impact fee" |
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means a charge or assessment imposed by a utility against a customer |
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to generate revenue to fund or recover the cost of constructing or |
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installing a tap or connection to the utility's water, sanitary |
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sewer, or drainage facilities, including all necessary service |
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lines and meters. |
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(b) A utility may file with the regulatory authority an |
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application to impose a reasonable impact fee against a customer at |
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the time the customer requests new construction or new |
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installation. |
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(c) A utility may change the terms under which an impact fee |
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is imposed or the amount of the fee only by filing an application |
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with the regulatory authority. |
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(d) An application to impose an impact fee or to change the |
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terms under which the fee is imposed or the amount of the fee is |
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considered an application to change rates for purposes of the |
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application of this subchapter, provided that the commission by |
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rule may modify a procedure or requirement as necessary to |
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administer this section. |
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(e) The utility shall deposit money received from an impact |
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fee into an escrow account with a financial institution approved by |
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the regulatory authority. |
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(f) Chapter 395, Local Government Code, does not apply to an |
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impact fee imposed under this section. |
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SECTION 3. This Act takes effect September 1, 2011. |