H.B. No. 149
 
 
 
 
AN ACT
  relating to rates charged for water or sewer services by an entity
  that takes over a nonfunctioning water or sewer system.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 13, Water Code, is amended
  by adding Section 13.046 to read as follows:
         Sec. 13.046.  TEMPORARY RATES FOR SERVICES PROVIDED FOR
  NONFUNCTIONING SYSTEM; SANCTIONS FOR NONCOMPLIANCE. (a)  The
  commission by rule shall establish a procedure that allows a retail
  public utility that takes over the provision of services for a
  nonfunctioning retail water or sewer utility service provider to
  charge a reasonable rate for the services provided to the customers
  of the nonfunctioning system and to bill the customers for the
  services at that rate immediately to recover service costs.
         (b)  The rules must provide a streamlined process that the
  retail public utility that takes over the nonfunctioning system may
  use to apply to the commission for a ruling on the reasonableness of
  the rates the utility is charging under Subsection (a). The process
  must allow for adequate consideration of costs for interconnection
  or other costs incurred in making services available and of the
  costs that may necessarily be incurred to bring the nonfunctioning
  system into compliance with commission rules.
         (c)  The commission shall provide a reasonable period for the
  retail public utility that takes over the nonfunctioning system to
  bring the nonfunctioning system into compliance with commission
  rules during which the commission may not impose a penalty for any
  deficiency in the system that is present at the time the utility
  takes over the nonfunctioning system. The commission must consult
  with the utility before determining the period and may grant an
  extension of the period for good cause.
         SECTION 2.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 149 was passed by the House on May 2,
  2007, by the following vote:  Yeas 147, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 149 was passed by the Senate on May
  22, 2007, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor