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A BILL TO BE ENTITLED
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AN ACT
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relating to water districts' authority to set rates and a |
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presumption of validity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 49.2122, Water Code, is |
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amended to read as follows: |
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Sec. 49.2122. AUTHORITY TO SET RATES; PRESUMPTION OF |
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VALIDITY [ESTABLISHMENT OF CUSTOMER CLASSES]. |
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SECTION 2. Subsection (b), Section 49.2122, Water Code, is |
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amended to read as follows: |
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(b) A district is presumed to have weighed and considered |
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appropriate factors in establishing customer classes and rates and |
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to have properly established customer classes, rates, charges, |
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fees, rentals, and deposits absent a showing by a ratepayer at a |
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hearing on an appeal filed under Section 13.043(b) that the |
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district had no reasonable basis for its action. A district's rates |
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are presumed just and reasonable and not unreasonably preferential, |
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prejudicial, or discriminatory absent a showing by a ratepayer at a |
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hearing on an appeal filed under Section 13.043(b) that the |
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district had no reasonable basis for its action [that the district
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acted arbitrarily and capriciously]. |
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SECTION 3. The changes in law made by Section 49.2122, Water |
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Code, as amended by this Act, apply only to rates established on or |
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after the effective date of this Act. A rate established before the |
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effective date of this Act is governed by the law in effect |
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immediately before that date, and that law is continued in effect |
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for that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |