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


Office of House Bill AnalysisH.B. 1463
By: Clark
Land & Resource Management
3/24/1999
Introduced



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. 

H.B. 1463 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. This bill does not
affect the municipality's obligation to provide water under a certain
certificate and authorizes 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)  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.