HBA-TYH S.B. 896 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 896
By: Brown
Urban Affairs
5/5/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, Texas law limits the level of municipal participation in
developer costs to 30 percent of the total contract price.  When a
developer plans for and constructs water and waste water facilities for an
area, the developer usually installs only such facilities necessary to meet
the capacity of the area.  The municipality often requires the oversizing
of these facilities to meet future capacity in anticipation of development
in the area.  S.B. 896 allows a municipality to reimburse a developer for
30 percent of the total cost for public improvements and 100 percent of the
total cost for oversizing any facilities.  

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 212.072(b), Local Government Code, to establish
that the level of participation for total public improvements, rather than
the total contract price, necessitated by a developer in a contract, may
not exceed 30 percent of the total by the municipality.  Authorizes the
contract to allow participation by the municipality at a level not to
exceed 100 percent of the total cost for oversizing of improvements
required by the municipality, including but not limited to increased
capacity of improvements to anticipate other future development in the
area.  

SECTION 2.  Emergency clause.
            Effective date: 90 days after adjournment.