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A BILL TO BE ENTITLED
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AN ACT
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relating to municipal fees charged to public school districts for |
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water and sewer service. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The legislature finds that the imposition of |
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fees for water service that are based on the number of students or |
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employees of a public school district diverts to other purposes |
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money appropriated in accordance with Section 1, Article VII, Texas |
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Constitution, for the education of students. For that reason, the |
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imposition of fees on those bases by a political subdivision |
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violates the Texas Constitution. |
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SECTION 2. The heading to Section 13.044, Water Code, is |
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amended to read as follows: |
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Sec. 13.044. RATES CHARGED BY MUNICIPALITY TO CERTAIN |
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SPECIAL DISTRICTS [DISTRICT]. |
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SECTION 3. Subchapter C, Chapter 13, Water Code, is amended |
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by adding Section 13.0441 to read as follows: |
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Sec. 13.0441. FEES CHARGED BY MUNICIPALITY TO PUBLIC SCHOOL |
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DISTRICTS. (a) This section applies only to fees charged by a |
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municipality for water or sewer service to a public school |
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district. |
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(b) Notwithstanding the provisions of a resolution, |
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ordinance, or agreement, a public school district charged a fee |
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that violates Section 13.088 may appeal the charge by filing a |
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petition with the utility commission. The utility commission shall |
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hear the appeal de novo, and the municipality charging the fee has |
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the burden of proof to establish that the fee complies with Section |
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13.088. The utility commission shall fix the fees to be charged by |
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the municipality in accordance with this chapter, including Section |
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13.088. |
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SECTION 4. Subchapter D, Chapter 13, Water Code, is amended |
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by adding Section 13.088 to read as follows: |
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Sec. 13.088. MUNICIPAL FEES FOR PUBLIC SCHOOL DISTRICTS. A |
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municipally owned utility that provides retail water or sewer |
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utility service to a public school district may not charge the |
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district a fee based on the number of district students or employees |
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in addition to the rates the utility charges the district for the |
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service. |
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SECTION 5. (a) This section applies only to a public |
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school district that, after September 1, 2009, was charged a fee for |
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retail water or sewer utility service based on the number of |
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district students or employees in addition to the rates charged for |
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the service. |
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(b) Notwithstanding any other law or agreement, on the |
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petition of a public school district, the Public Utility Commission |
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of Texas shall evaluate a fee for retail water or sewer utility |
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service charged by a municipally owned utility to the district |
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after September 1, 2009, to determine whether the fee complies with |
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Section 13.088, Water Code, as added by this Act. |
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(c) If the Public Utility Commission of Texas determines |
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under Subsection (b) of this section that the fee does not comply |
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with Section 13.088, Water Code, as added by this Act, the |
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commission: |
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(1) shall fix or eliminate the fees to be charged by |
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the municipally owned utility in accordance with Section 13.088, |
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Water Code, as added by this Act; |
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(2) shall establish the original effective date of the |
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fee that does not comply with Section 13.088, Water Code, as added |
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by this Act, based on information submitted by the municipally |
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owned utility; |
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(3) by order shall require the municipally owned |
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utility to refund to the public school district money collected |
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from the fee described by Subdivision (2) of this subsection in |
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excess of the fee fixed under Subdivision (1) of this subsection; |
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and |
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(4) may allow the public school district to recover |
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from the municipally owned utility any reasonable expenses incurred |
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by the district in the process of submitting a petition under this |
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section. |
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(d) This section expires and a public school district may |
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not submit a petition under this section after September 1, 2020. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |