HBA-NMO C.S.H.B. 1573 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1573 By: Bailey Natural Resources 4/16/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, water and sewer services may be needed in the unincorporated areas of Harris County. C.S.H.B. 1573 authorizes a county with a population of 2.8 million (currently applying only to Harris County) to implement a water and sewer service plan in the unincorporated areas of the county. 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 Subchapter B, Chapter 412, Local Government Code, by adding Section 412.016, as follows: Sec. 412.016. WATER AND SEWER SERVICE IN POPULOUS COUNTY. (a) Provides that this section applies only to the unincorporated area that is located in a county with a population of more than 2.8 million and in which a building without water or sewer service is located. (b) Authorizes a county to provide water or sewer service to a building by: (1) owning, constructing, and operating a water or sewer system in the same manner that Section 402.017 provides for a home-rule municipality to own, construct, and operate a water system; or (2) contracting for the provision of services with a retail public utility, as that term is defined by Section 13.002, Water Code. (c) Authorizes the term of contract made under Subsection (b)(2) to be for a period to which the county and the retail public utility agree. Authorizes that the contract provide for a renewal and extension of the contract. (d) Authorizes a retail public utility providing water or sewer service under Subsection (b)(2) to issue notes or bonds for the acquisition of facilities necessary or convenient for supplying service under the contract. Authorizes the utility to secure the notes or bonds by a pledge of revenues to be derived under the contract. (e) Authorizes a county to issue general obligation bonds as provided by Chapter 1, Title 22, V.T.C.S., to finance an activity under Subsection (b)(1). (f) Authorizes a county to obtain funding for the provision of water or sewer service under this section from any state or federal source. (g) Prohibits a county from providing water or sewer service under this section in the extraterritorial jurisdiction of a municipality unless the municipality approves the provision of service. SECTION 2. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original in SECTION 1, by deleting "for unincorporated area" from the title of proposed Section 412.016, Local Government Code. The substitute differs from the original in proposed Section 412.016(a), Local Government Code, by providing that this section applies only to the unincorporated area that is located in a county with a population of more than 2.8 million and in which a building, rather than a residential building, without water or sewer service is located. The substitute differs from the original in proposed Section 412.016 by deleting proposed Subsection (b) that requires the commissioners court of the county, by order, to adopt a service plan; and replaces it with a new Subsection (b) which authorizes a county to provide water or sewer service to a building by certain means. The substitute further deletes proposed Subsections (c)-(e) relating to the service plan, implementation requirements, and an administrative penalty for failure to implement; and replaces them with new Subsections (c)-(g) regarding contracts, notes, bonds, funding, and the provision of services in the extraterritorial jurisdiction of a municipality. The substitute differs from the original by deleting SECTION 2 of the original, that requires implementation of a service plan by January 1, 2000. The substitute redesignates SECTION 3 (emergency clause) of the original as SECTION 2.