84R23355 JXC-D
 
  By: Nevárez H.B. No. 2852
 
  Substitute the following for H.B. No. 2852:
 
  By:  Bonnen of Brazoria C.S.H.B. No. 2852
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to municipal fees charged to public school districts for
  water and sewer service.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The legislature finds that the imposition of
  fees for water service that are based on the number of students or
  employees of a public school district diverts to other purposes
  money appropriated in accordance with Section 1, Article VII, Texas
  Constitution, for the education of students. For that reason, the
  imposition of fees on those bases by a political subdivision
  violates the Texas Constitution.
         SECTION 2.  The heading to Section 13.044, Water Code, is
  amended to read as follows:
         Sec. 13.044.  RATES CHARGED BY MUNICIPALITY TO CERTAIN
  SPECIAL DISTRICTS [DISTRICT].
         SECTION 3.  Subchapter C, Chapter 13, Water Code, is amended
  by adding Section 13.0441 to read as follows:
         Sec. 13.0441.  FEES CHARGED BY MUNICIPALITY TO PUBLIC SCHOOL
  DISTRICTS. (a) This section applies only to fees charged by a
  municipality for water or sewer service to a public school
  district.
         (b)  Notwithstanding the provisions of a resolution,
  ordinance, or agreement, a public school district charged a fee
  that violates Section 13.088 may appeal the charge by filing a
  petition with the utility commission. The utility commission shall
  hear the appeal de novo, and the municipality charging the fee has
  the burden of proof to establish that the fee complies with Section
  13.088. The utility commission shall fix the fees to be charged by
  the municipality in accordance with this chapter, including Section
  13.088.
         SECTION 4.  Subchapter D, Chapter 13, Water Code, is amended
  by adding Section 13.088 to read as follows:
         Sec. 13.088.  MUNICIPAL FEES FOR PUBLIC SCHOOL DISTRICTS.  A
  municipally owned utility that provides retail water or sewer
  utility service to a public school district may not charge the
  district a fee based on the number of district students or employees
  in addition to the rates the utility charges the district for the
  service.
         SECTION 5.  (a)  This section applies only to a public
  school district that, after September 1, 2009, was charged a fee for
  retail water or sewer utility service based on the number of
  district students or employees in addition to the rates charged for
  the service.
         (b)  Notwithstanding any other law or agreement, on the
  petition of a public school district, the Public Utility Commission
  of Texas shall evaluate a fee for retail water or sewer utility
  service charged by a municipally owned utility to the district
  after September 1, 2009, to determine whether the fee complies with
  Section 13.088, Water Code, as added by this Act.
         (c)  If the Public Utility Commission of Texas determines
  under Subsection (b) of this section that the fee does not comply
  with Section 13.088, Water Code, as added by this Act, the
  commission:
               (1)  shall fix or eliminate the fees to be charged by
  the municipally owned utility in accordance with Section 13.088,
  Water Code, as added by this Act;
               (2)  shall establish the original effective date of the
  fee that does not comply with Section 13.088, Water Code, as added
  by this Act, based on information submitted by the municipally
  owned utility;
               (3)  by order shall require the municipally owned
  utility to refund to the public school district money collected
  from the fee described by Subdivision (2) of this subsection in
  excess of the fee fixed under Subdivision (1) of this subsection;
  and
               (4)  may allow the public school district to recover
  from the municipally owned utility any reasonable expenses incurred
  by the district in the process of submitting a petition under this
  section.
         (d)  This section expires and a public school district may
  not submit a petition under this section after September 1, 2020.
         SECTION 6.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.