85R23012 JXC-F     By: Nevárez H.B. No. 2369     Substitute the following for H.B. No. 2369:     By:  Larson C.S.H.B. No. 2369       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.  (a)  This section applies only to a public   school district that, after September 1, 2009, was charged a fee for   retail water or sewer utility service based on the number of   district students or employees in addition to the rates charged for   the service.          (b)  Notwithstanding any other law or agreement, on the   petition of a public school district, the Public Utility Commission   of Texas shall evaluate a fee for retail water or sewer utility   service charged by a municipally owned utility to the district   after September 1, 2009, to determine whether the fee complies with   Section 13.088, Water Code, as added by this Act.          (c)  If the Public Utility Commission of Texas determines   under Subsection (b) of this section that the fee does not comply   with Section 13.088, Water Code, as added by this Act, the   commission:                (1)  shall fix or eliminate the fees to be charged by   the municipally owned utility in accordance with Section 13.088,   Water Code, as added by this Act;                (2)  shall establish the original effective date of the   fee that does not comply with Section 13.088, Water Code, as added   by this Act, based on information submitted by the municipally   owned utility;                (3)  by order shall require the municipally owned   utility to refund to the public school district money collected   from the fee described by Subdivision (2) of this subsection in   excess of the fee fixed under Subdivision (1) of this subsection;   and                (4)  may allow the public school district to recover   from the municipally owned utility any reasonable expenses incurred   by the district in the process of submitting a petition under this   section.          (d)  This section expires and a public school district may   not submit a petition under this section after September 1, 2020.          SECTION 6.  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.