1. (a) For the purpose of this section, utility service provider means a public utility, water supply or sewer service corporation as defined in the Water Code, §13.002, or a district as defined in the Water Code, §49.001.
2. (b) Except as otherwise provided, a utility service provider which provides potable water or sewer utility service shall collect a regulatory assessment from each retail customer and remit such fee to the commission under the provisions of this section.
3. (c) A utility service provider is prohibited from collecting a regulatory assessment from the state or a state agency or institution.

4. (d) Amounts payable to the commission shall be based on the following:

   1. (1) for a public utility as defined in the Water Code, §13.002, 1.0% of the charge for retail water and sewer service;
   2. (2) for a water supply or sewer service corporation as defined in the Water Code, §13.002, 0.5% of the charge for retail water and sewer service;
   3. (3) for a district as defined in the Water Code, §49.001, 0.5% of the charge for retail water and sewer service.
5. (e) The amount payable to the commission shall be based on the amounts actually collected by the utility service provider during the payment period.

6. (f) The amount payable shall be based on water and sewer service charges to retail customers only, and shall not be based on:

   1. (1) associated delinquent, penalty, or interest charges;
   2. (2) tap fees, standby fees, impact fees, extension fees, capital improvement surcharges, itemized solid waste collection fees, or other unrelated charges; or
   3. (3) wholesale charges from one utility service provider to another.
7. (g) The utility service provider may include the assessment as a separate line item on a customer's bill or include it in the retail charge.
8. (h) The utility service provider shall be responsible for keeping proper records of the annual charges and assessment collections for retail water and sewer service and provide such records to the commission upon request.
9. (i) The amount payable may be remitted to the commission on a quarterly basis or on an annual basis. If payments are made on a quarterly basis and submitted to the commission not later than January 30th, April 30th, July 30th, and October 30th, the utility service provider may retain 10% of the total amount collected to cover administrative costs incurred in collecting and remitting the assessment. If payments are remitted annually, the full amount collected is due by January 30th of the following year.
10. (j) The utility service provider shall pursue collection of the assessment from the customer in the same manner and with the same diligence that it pursues collection of other service charges.
11. (k) If assessments remitted on an annual basis are not received by the commission by January 30th following the year in which they are collected, the utility service provider shall be assessed penalties and interest in accordance with Chapter 12 of this title (relating to Payment of Fees).
12. (l) The regulatory assessment does not apply to water that has not been treated for the purpose of human consumption.

13. (m) A utility service provider is exempt from the provisions of this section if such provider:

    1. (1) does not own and has no responsibility for operation and maintenance of the facilities necessary in providing water and sewer utility service, including distribution and collection systems;
    2. (2) does not maintain a security interest in the facilities necessary in providing water and sewer utility service;
    3. (3) has no authority to set the retail customer's rates; and
    4. (4) does not make policy decisions regarding water and sewer services.

14. (n) If it appears that utility service provider has violated this section, the commission may request a civil suit to be brought in a court of competent jurisdiction for injunctive or other appropriate relief.

    1. (1) At the request of the commission, the attorney general shall bring and conduct the suit in the name of the state.
    2. (2) The suit may be brought in Travis County or in the county in which the defendant resides.

Source Note:The provisions of this §291.76 adopted to be effective April 15, 1994, 19 TexReg 2300; amended to be effective January 10, 1996, 21 TexReg 114; amended to be effective September 20, 1996, 21 TexReg 8728; amended to be effective February 14, 1997, 22 TexReg 1324.