Under the Service Delivery Act cities and counties cannot charge residents outside their jurisdictions water and sewer fees that are arbitrarily higher than the fees charged to residents of their jurisdiction. HB 174 adds that arbitrarily-higher "rates" would also be prohibited and the definition of fees would now include "account fees or other customer fees." If the reasonableness of a rate or fee is challenged by a county or city, current law requires that a qualified engineer must prepare a rate study. HB 174 removes the requirement for this rate study.