HB 2867

relating to late payment fees charged by a municipally owned water
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter Z, Chapter 552, Local Government
Code, is amended by adding Section 552.916 to read as follows:
Sec. 552.916.  LATE PAYMENT FEES FOR WATER OR SEWER SERVICE.
(a)  A municipal utility that provides water or sewer service may
not charge a late payment fee that:
(1)  before the 32nd day of the late payment penalty
period is more than the greater of:
(B)  two percent of the amount past due;
(2)  on or after the 32nd day but before the 41st day of
the late payment penalty period is more than the greater of:
(B)  five percent of the amount past due; or
(3)  on or after the 41st day but before the 51st day of
the late payment penalty period is more than the greater of:
(B)  10 percent of the amount past due.
(b)  A late payment penalty period may not begin before the
21st day after the date the municipal utility mails or transmits
electronically the customer's bill.
(c)  A late payment penalty period must end on the date the
customer pays all past due amounts to the municipal utility.
SECTION 2.  The changes in law made by this Act apply only to
a fee charged on or after the effective date of this Act. A fee
charged before the effective date of this Act is governed by the law
in effect on the date the fee was charged, and the former law is
continued in effect for that purpose.
SECTION 3.  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, 2025.