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  H.B. No. 2369
 
 
 
 
AN ACT
  relating to municipal fees charged to public school districts for
  water and sewer service.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The legislature finds that the imposition of
  fees for water service that are based on the number of students or
  employees of a public school district diverts to other purposes
  money appropriated in accordance with Section 1, Article VII, Texas
  Constitution, for the education of students. For that reason, the
  imposition of fees on those bases by a political subdivision
  violates the Texas Constitution.
         SECTION 2.  The heading to Section 13.044, Water Code, is
  amended to read as follows:
         Sec. 13.044.  RATES CHARGED BY MUNICIPALITY TO CERTAIN
  SPECIAL DISTRICTS [DISTRICT].
         SECTION 3.  Subchapter C, Chapter 13, Water Code, is amended
  by adding Section 13.0441 to read as follows:
         Sec. 13.0441.  FEES CHARGED BY MUNICIPALITY TO PUBLIC SCHOOL
  DISTRICTS. (a) This section applies only to fees charged by a
  municipality for water or sewer service to a public school
  district.
         (b)  Notwithstanding the provisions of a resolution,
  ordinance, or agreement, a public school district charged a fee
  that violates Section 13.088 may appeal the charge by filing a
  petition with the utility commission. The utility commission shall
  hear the appeal de novo, and the municipality charging the fee has
  the burden of proof to establish that the fee complies with Section
  13.088. The utility commission shall fix the fees to be charged by
  the municipality in accordance with this chapter, including Section
  13.088.
         SECTION 4.  Subchapter D, Chapter 13, Water Code, is amended
  by adding Section 13.088 to read as follows:
         Sec. 13.088.  MUNICIPAL FEES FOR PUBLIC SCHOOL DISTRICTS.  A
  municipally owned utility that provides retail water or sewer
  utility service to a public school district may not charge the
  district a fee based on the number of district students or employees
  in addition to the rates the utility charges the district for the
  service.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2369 was passed by the House on May 4,
  2017, by the following vote:  Yeas 145, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2369 was passed by the Senate on May
  23, 2017, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor