HBA-TYH S.B. 896 76(R)BILL ANALYSIS Office of House Bill AnalysisS.B. 896 By: Brown Urban Affairs 5/7/1999 Committee Report (Amended) BACKGROUND AND PURPOSE Currently, Texas law limits the level of municipal participation in developer costs to 30 percent of the total contract price. When a developer plans for and constructs water and waste water facilities for an area, the developer usually installs only such facilities necessary to meet the capacity of the area. The municipality often requires the oversizing of these facilities to meet future capacity in anticipation of development in the area. S.B. 896 allows a municipality to reimburse a developer for 30 percent of the total cost for public improvements and 100 percent of the total cost for oversizing any facilities. 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 212.072(b), Local Government Code, to establish that the level of participation for total public improvements, rather than the total contract price, necessitated by a developer in a contract, may not exceed 30 percent of the total by the municipality. Authorizes the contract to allow participation by the municipality at a level not to exceed 100 percent of the total cost for oversizing of improvements required by the municipality, including but not limited to increased capacity of improvements to anticipate other future development in the area. SECTION 2. Emergency clause. Effective date: 90 days after adjournment. EXPLANATION OF AMENDMENTS Committee Amendment #1 reinstates existing statutory language and deletes proposed language, to provide that the contract must establish the limit of participation by the municipality at a level not to exceed 30 percent of the total contract price, rather than the total cost for public improvements necessitated by the developer.