By: Nevárez (Senate Sponsor - Lucio) H.B. No. 2369
         (In the Senate - Received from the House May 5, 2017;
  May 8, 2017, read first time and referred to Committee on
  Agriculture, Water & Rural Affairs; May 18, 2017, reported
  favorably by the following vote:  Yeas 5, Nays 0; May 18, 2017, sent
  to printer.)
 
 
A BILL TO BE ENTITLED
 
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.
 
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