Honorable Lyle Larson, Chair, House Committee on Natural Resources
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB2369 by Nevárez (Relating to municipal rates for water and sewer service charged to public school districts.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend the Water Code relating to municipal rates for water and sewer service charged to public school districts.
The bill permits a public school district to appeal to the Public Utility Commission (PUC) the rates charged to the district by a municipality for water and sewer service, even if the rate is set by provisions of a resolution, ordinance, or agreement. The bill requires PUC to adjust rates if it finds that the rates do not align with statute or are not just and reasonable, and prohibits the municipality from increasing the adjusted rates without approval from PUC.
The bill requires a municipally owned water or sewer utility to charge a school district the lowest rates that it charges commercial businesses or nonprofit organizations, and prohibits the utility from charging a public school district a fee that it does not charge commercial businesses or a fee based on the number of students or employees in the district. The bill requires municipally owned utilities to provide refunds to public school districts that were charged rates or fees after August 1, 2012 that were based on number of district employees or students.
Based on the analysis of the PUC and the Texas Education Agency (TEA), duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
The bill would take effect immediately upon receipt of a two-thirds vote of all members elected to each house; otherwise, the bill would take effect on September 1, 2017
Local Government Impact
According to TEA, public school districts would benefit from possibly reduced utility costs. Additionally, certain districts would be able to seek reimbursement from utilities over past billing rates based on student or employee numbers which are out of compliance with this bill.
According to the Texas Municipal League, the fiscal impact to municipalities cannot be determined at this time.
Source Agencies:
473 Public Utility Commission of Texas, 701 Texas Education Agency