HBA-AMW H.B. 3158 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3158
By: Bonnen
Natural Resources
4/22/2001
Introduced



BACKGROUND AND PURPOSE 

Private water system companies operating throughout the state provide water
services to small neighborhoods for which no alternative service is
available.  These companies are permitted through the Texas Natural
Resource Conservation Commission (TNRCC).  Since these companies are
private businesses, the private and real estate property owned by the
companies is taxed.  Foreclosure against companies that do not pay taxes
may be an undesirable option because the liability for operating a private
water system is high and taxing units may not have the expertise to operate
the system.  House Bill 3158 requires a private water system company to
provide TNRCC with a tax certificate verifying that no delinquent taxes,
interest, or penalties on the property are due to the taxing unit before a
company is granted a certificate of public convenience and necessity for
water utility services.   

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. 

ANALYSIS

House Bill 3158 amends the Water Code to prohibit the Texas Natural
Resource Conservation Commission (TNRCC) from granting a certificate of
public convenience and necessity for water utility service to an applicant
unless the applicant provides TNRCC with a tax certificate for each taxing
unit in which the property is located showing that no delinquent taxes,
interest, or penalties are due to the taxing unit on the property. 

EFFECTIVE DATE

September 1, 2001.