BILL ANALYSIS

H.B. 1506

By: Perez

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been noted that not all Texas residents have access to water and sewer utility service at rates affordable to them and that losing access to such service can reduce quality of life. H.B. 1506 seeks to address this issue by providing a means for reduced water and sewer rates for certain classes of customers.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Public Utility Commission of Texas and other regulatory authorities, as applicable, in SECTION 2 of this bill.

ANALYSIS

H.B. 1506 amends the Water Code to include customers who receive Medicaid assistance or who receive benefits under the supplemental nutrition assistance program among the customers for whom a regulatory authority may authorize a utility to establish reduced water and sewer rates for a minimal level of service for the purpose of ensuring that the customers receive that level of service at more affordable rates. The bill authorizes a regulatory authority to establish requirements for determining the eligibility of customers to receive reduced rates.

H.B. 1506 applies only to proceedings before a regulatory authority regarding rates concerning an application filed on or after January 1, 2020, and requires the Public Utility Commission of Texas and other regulatory authorities to adopt rules as necessary to implement the bill's provisions not later than December 31, 2019.

EFFECTIVE DATE

September 1, 2019.