82R6908 ALL-D
	By: Bohac	H.B. No. 2778

	A BILL TO BE ENTITLED
	AN ACT
	relating to the criteria necessary to require a hearing to review an
	application for a rate change by certain water and sewer utilities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 13.002, Water Code, is amended by adding
	Subdivision (21-a) to read as follows:
	(21-a)  "Subdivision" means all land that has been
	divided into two or more parts and that is or was burdened by
	restrictions limiting at least the majority of the land area
	burdened by restrictions, excluding streets and public areas, to
	residential use only, if the instrument or instruments creating the
	restrictions are recorded in the deed or real property records of a
	county.
	SECTION 2.  Section 13.187(e), Water Code, is amended to
	read as follows:
	(e)  The regulatory authority shall set the matter for
	hearing if [If], before the 91st day after the effective date of the
	rate change, the regulatory authority receives a complaint from:
	(1)  any affected municipality;
	(2)  [, or from] the lesser of 1,000 or 10 percent of
	the ratepayers of the utility over whose rates the regulatory
	authority has original jurisdiction; or
	(3)  at least 10 percent of the ratepayers residing in
	the same subdivision or five-digit zip code who receive service
	from the utility over whose rates the regulatory authority has
	original jurisdiction, provided that the owners sign a petition and
	attach documentation verifying their residences and receipt of
	service[, the regulatory authority shall set the matter for
	hearing].
	SECTION 3.  This Act applies only to a rate change for which
	a statement of intent is filed on or after the effective date of
	this Act. A rate change for which a statement of intent is filed
	before the effective date of this Act is governed by the law in
	effect on the date the statement was filed, and that law is
	continued in effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2011.