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A BILL TO BE ENTITLED
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AN ACT
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relating to late payment fees charged by a municipally owned water |
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utility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 13, Water Code, is amended |
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by adding Section 13.0442 to read as follows: |
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Sec. 13.0442. LATE PAYMENT FEES CHARGED BY MUNICIPALITY. |
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(a) Notwithstanding the provisions of a resolution or ordinance, a |
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customer charged a fee that violates Section 13.089 may appeal the |
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charge by filing a petition with the utility commission. |
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(b) The utility commission shall hear the appeal de novo, |
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and the municipality charging the fee has the burden of proof to |
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establish that the fee complies with Section 13.089. The utility |
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commission shall set the fees to be charged by the municipality in |
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accordance with Section 13.089. |
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SECTION 2. Subchapter D, Chapter 13, Water Code, is amended |
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by adding Section 13.089 to read as follows: |
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Sec. 13.089. LATE PAYMENT FEES CHARGED BY MUNICIPALITY. |
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(a) A municipality may not charge a late payment fee that is more |
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than the greater of: |
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(1) $5; or |
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(2) two percent of the amount past due, not to exceed |
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$500. |
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(b) A late payment penalty period may not begin before the |
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30th day after the date the municipality mails or transmits |
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electronically the customer's bill. |
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(c) A late payment penalty period must end on the date the |
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customer pays all past due amounts to the municipality. |
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SECTION 3. The changes in law made by this Act apply only to |
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a fee charged on or after the effective date of this Act. A fee |
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charged before the effective date of this Act is governed by the law |
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in effect on the date the fee was charged, and the former law is |
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continued in effect for that purpose. |
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SECTION 4. 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, 2023. |