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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 Z, Chapter 552, Local Government |
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Code, is amended by adding Section 552.916 to read as follows: |
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Sec. 552.916. LATE PAYMENT FEES FOR WATER OR SEWER SERVICE. |
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(a) A municipal utility that provides water or sewer service may |
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not charge a late payment fee that: |
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(1) before the 32nd day of the late payment penalty |
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period is more than the greater of: |
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(A) $5; or |
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(B) two percent of the amount past due; |
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(2) on or after the 32nd day but before the 41st day of |
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the late payment penalty period is more than the greater of: |
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(A) $5; or |
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(B) five percent of the amount past due; or |
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(3) on or after the 41st day but before the 51st day of |
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the late payment penalty period is more than the greater of: |
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(A) $5; or |
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(B) 10 percent of the amount past due. |
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(b) A late payment penalty period may not begin before the |
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21st day after the date the municipal utility 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 municipal utility. |
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SECTION 2. 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 3. 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, 2025. |