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.