HBA-NLM C.S.H.B. 1463 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1463
By: Clark
Land & Resource Management
4/7/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, a municipality is not obligated to provide water service outside
its municipal boundaries, although its governing body may elect to provide
such service upon certain terms.  However, once a city elects to start
providing service outside  its corporate boundaries, it is required to
provide these services to any other similarly situated applicants.  There
is concern that this requirement is a disincentive for cities to extend
such services to all. 

C.S.H.B. 1463 provides that the provision of water or sewer service by a
municipality to a person outside the boundaries of the municipality does
not entitle another person outside the boundaries of the municipality to
receive water or sewer service form the municipality. This bill does not
affect the municipality's obligation to provide water under a certain
certificate or authorize the municipality to provide service to an area
over which another provider holds a certificate to provide service. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 402.001, Local Government Code, by adding
Subsection (e), as follows: 

(e)  Provides that the provision of water or sewer service by a
municipality to a person outside the boundaries of the municipality does
not entitle another person outside the boundaries of the municipality to
receive water or sewer service form the municipality. Specifies that a
municipality providing water or sewer services outside its municipal
boundaries to one or more nonresidents is not required to provide such
service to other nonresidents.  Provides that this subsection does not
affect the municipality's obligation to provide water under a certificate
issued under Subchapter G (Certificates of Convenience and Necessity),
Chapter 13, Water Code, or authorize the municipality to provide service to
an area over which another provider holds a certificate to provide service
under that subchapter. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1463 modifies the original in SECTION 1 (proposed Section
402.001(e), Local Government Code) by clarifying language relating to the
entitlement to water or sewer services of persons outside the municipal
boundaries of the municipality providing the service.