HBA-MPM H.B. 1069 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1069
By: Lewis, Ron
Natural Resources
3/9/1999
Introduced



BACKGROUND AND PURPOSE 

In 1985, Chapter 65 of the Texas Water Code was recodified to make any
non-profit water supply corporation (WSC) providing services on or before
January 1, 1985 eligible to convert to a Special Utility District (SUD),
provided it met certain legal and administrative requirements.  Converting
to a SUD meant that a WSC was provided an alternative source of state
funding for water projects in rural communities, instead of having to rely
solely on low-interest loans and grants from the United States Department
of Agriculture.  The January 1, 1985 date was set in order to limit the
number of SUDs and the amount of state bonds issued to them. 

During the past 14 years, only 21 WSCs have converted to SUDs, and there
are currently 900 WSCs operating statewide, many of which were formed after
January 1, 1985.  As Texas continues to grow, there is an increased need
for rural water corporations to keep up with demand for water and
wastewater services. Under current law, a non-profit WSC organized after
January 1, 1985 is not afforded the opportunity to convert to a SUD, and
therefore, not eligible to borrow state funds at taxexempt rates.  H.B.
1069 eliminates the January 1, 1985 date from current law, allowing WSCs to
convert to SUDs.  

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 65.001(10), Water Code, to define "water supply
or sewer service corporation (corporation)," rather than "water supply
corporation." Defines a corporation as any member-owned, member-controlled,
and nonprofit, rather than consumer-owned, water supply or sewer service
corporation created and operating under Chapter 67 (Nonprofit Water Supply
or Sewer Service Corporations).  Provides that the corporation is providing
services of a water supply or sewer service corporation under a certificate
of convenience and necessity issued by the Texas Natural Resource
Conservation Commission or a predecessor agency, rather than the Public
Utility Commission of Texas.  Deletes the requirement that the corporation
must have supplied these services on or before January 1, 1985.  Makes a
conforming change. 

SECTION 2.  Amends Sections 65.014, 65.015, and 65.022, Water Code, to make
conforming and nonsubstantive changes. 

SECTION 3.  Emergency clause.
  Effective date: upon passage.