HBA-JLV, BSM H.B. 2588 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2588 By: Counts Natural Resources 7/11/2001 Enrolled BACKGROUND AND PURPOSE Previous law directed that in times of drought water must be distributed on a pro rata basis. Prior to the 77th Legislative session, many felt that if rationing water from a water supply became necessary, water suppliers should be allowed to take into account the degree to which customers have complied with applicable water conservation and drought contingency plans. House Bill 2588 requires water suppliers to distribute water on a pro rata basis or take into account the customer's compliance with applicable water conservation and drought contingency plans when addressing water shortages. 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. ANALYSIS House Bill 2588 amends the Water Code to provide that if a shortage of water in a water supply covered by a water conservation plan prepared in compliance with Texas Natural Resource Conservation Commission or Texas Water Development Board rules results from drought, accident, or other cause, the person, association, or corporation owning or controlling the water shall divide the water to be distributed among all customers pro rata, according to: _the amount of water to which each customer may be entitled; or _the amount of water to which each customer may be entitled less the amount of water the customer would have saved if the customer had operated its water system in compliance with the water conservation plan. EFFECTIVE DATE June 15, 2001.