HB2867 - Relating to late payment fees charged by a municipally owned water utility.

      By: Gates, Thompson, Lopez of Cameron, H.B. No. 2867       Harris, Muñoz, et al.     A BILL TO BE ENTITLED   AN ACT   relating to late payment fees charged by a municipally owned water   utility.          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 11th day of the late payment penalty   period is more than the greater of:                       (A)  $5; or                       (B)  two percent of the amount past due;                 (2)     on or after the 11th day but before the 20th day of   the late payment penalty period is more than the greater of:                       (A)  $5; or                       (B)  five percent of the amount past due; or                 (3)     on or after the 20th day of the late payment   penalty period is more than the greater of:                       (A)  $5; or                       (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 September 1, 2026.