(a) Districts, as defined by Water Code, §49.001, which provide or propose to provide retail potable water, wastewater, or drainage services may, with commission approval, adopt and levy standby fees.
(b) Standby fee, as authorized by Water Code, §49.231, means a charge, other than a tax, imposed on undeveloped property for the availability of water, wastewater, or drainage facilities and services. Standby fee does not mean an impact fee, tap fee, or a connection fee.
(c) Undeveloped property means a tract, lot or reserve in the district to which no vertical improvements and water or wastewater connections or drainage services have been made to serve the property utilizing substantially the full amount of the capacity allocated to the property as shown in the district's land development plan submitted with creation applications, bond applications (including supporting documents) or by written commitment and for which:
  (1) any portion of water, wastewater, or drainage facilities and services are available;
  (2) water supply or wastewater treatment plant capacity or drainage capacity sufficient to serve any portion of the property is available; or
  (3) major water supply lines or wastewater collection lines or major drainage outfall facilities with capacity sufficient to serve any portion of the property are available.
(d) A district may not impose a debt service standby fee unless the facilities and services available to the property were financed by the district; however, a district may impose a standby fee for operating and maintaining facilities that it has not financed.
(e) Standby fees levied under this section may be used for the purpose of paying the following costs:
  (1) operation and maintenance costs associated with maintaining the facilities; and/or
  (2) debt service payments for water, wastewater, or drainage facilities.
(f) Commission approval and adoption of standby fees is valid for a period of not more than three successive years. A district may charge a standby fee of an amount not to exceed the maximum amount approved by the commission. A district may submit an application to increase or renew its standby fee at any time.
(g) It is not required that standby fees be uniform throughout the district, only that the fees fairly allocate the cost of district water, wastewater, and drainage facilities and service among property owners of the district. The standby fee may be a single fee expressed as a unit cost per single family equivalent connection or the fee per single family equivalent unit may be divided into separate components (tiers) such as water distribution facilities, water supply facilities, wastewater collection facilities, wastewater treatment facilities, internal drainage facilities, or outfall drainage facilities.
(h) Standby fees as approved by the commission may be collected for monthly, quarterly or annual billing periods, but may not be imposed retroactively or in arrears beyond January 1 of the calendar year in which such standby fees are adopted unless authorized by the commission. A district may not require payment of standby fees in advance of a current billing period.
(i) To the extent that standby fees are imposed and collected in contravention of applicable rules or order(s) of the commission, the commission may require that such improperly collected fees be refunded, together with interest thereon.

Source Note: The provisions of this §293.141 adopted to be effective December 17, 1990, 15 TexReg 6849; amended to be effective October 22, 1996, 21 TexReg 9905.