HB 2369

85(R) - 2017
House Natural Resources
Senate Agriculture, Water, & Rural Affairs
House Natural Resources
Senate Agriculture, Water, & Rural Affairs
Public Education

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral


Poncho Nevarez


Eddie Lucio Jr.

Bill Caption

Relating to municipal fees charged to public school districts for water and sewer service.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

Under current law, utilities are permitted to impose fees on school districts in addition to service rates that are based on the number of students or employees of a public school district. HB 2369 would prohibit a utility from charging fees based on the number of district students or employees. Procedures for a school district to appeal fees would be established and the Public Utility Commission of Texas would be authorized to fix fees. The intent of this bill is to stop any excessive diversion of state funds to water utilities that was originally designated for the education of students.

Vote Recommendation Notes

It is our understanding after having conversations with the bill author's office that this legislation addresses a unique situation in which a municipal water utility is charging extra fees, in addition to normal utility rates, to school districts based on the number of students and employees in the district. This is a practice the utility appears to only be doing with respect to schools. It is worth noting that this is effectively one government entity charging fees to another government entity which it would not charge to private citizens or businesses based on the number of people in a household or the number of people employed at the business. Ultimately these extra fees are paid for by taxpayers out of whose pockets school funding is derived in the first place.

We support this bill because it gives school districts an opportunity to appeal what appears to be a questionable billing practice by a municipal utility. Allowing this appeal would support limited government by preventing a municipal utility from levying an extra fee that is ultimately paid for by the taxpayers.

Organizations Opposed

City of Corpus Christi