HBA-KDB H.B. 2768 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2768 By: Wise Land & Resource Management 3/28/2001 Introduced BACKGROUND AND PURPOSE A colonia is an economically distressed area that is located in a county any part of which is within a specified distance of an international border. Currently, there are approximately 1,450 colonias along the Texas-Mexico border with an estimated population of 350,000 residents, half of whom do not have adequate water supplies. In addition, many colonias do not have an adequate sewage drainage system, which has caused several incidents of flooding. In recent years, the legislature has made attempts to improve the living conditions in colonias, including the establishment of self-help centers that educate colonia residents on their rights as homeowners and colonia initiatives that deliver water and wastewater services to colonia residents. However, despite these improvements, there is concern that many colonia residents continue to live in unsanitary conditions. House Bill 2768 requires certain counties or municipalities to provide adequate sewage drainage and water supply services to colonias. 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 2768 amends the Local Government Code to set forth provisions relating to the responsibility for provision of sewage drainage and water supply services to colonias. A colonia that does not have an adequate sewage drainage system (drainage system) or adequate water supply system (water system) must provide notice of that condition to the municipality located nearest to the colonia. The bill requires the municipality, on receiving such a notice, to promptly determine whether to provide the colonia with a drainage or water system. The bill requires a county in which the colonia is primarily located, if the municipality determines not to provide the colonia with a drainage or water system, to provide the necessary system and the necessary service for the six-month period immediately after the date that the municipality makes the determination. The bill requires the municipality to pay the county an amount equal to 50 percent of the cost of implementing the system and providing the service during the six-month period. On the expiration of the six-month period, the municipality is authorized to assume control of the colonia's drainage or water supply. If the municipality assumes control, the municipality is required to reimburse the county for any previous cost incurred by the county in connection with the implementation of a system and the provision of a service. If the municipality does not assume control, the county is solely responsible for the cost of providing service after the six-month period, but the county is authorized to retain the money paid by the municipality for implementing and operating the system during the six-month period. The bill sets forth provisions relating to properties developed within one mile of a municipality. The following provisions apply only to real property consisting of more than seven acres that is located completely or partially within one mile of at least one municipality and a county any part of which is located within 50 miles of an international border. To subdivide real property into more than three parcels, an owner must apply to the nearest municipality for the provision of sewage drainage and water supply services to the real property, must ensure that drainage and water systems are provided for each parcel proposed for subdivision, and must contribute to the municipality 50 percent of the municipality's costs for the installation of the systems and the provision of the services to the parcels. The bill requires the municipality, on application by the owner of real property, to provide drainage and water systems to the specified parcels. The municipality is responsible for the remaining cost of the installation of the systems and the provision of the services to the parcels. The bill sets forth provisions relating to properties beyond one mile of any municipality. The following provisions apply only to real property consisting of more than seven acres that is located completely beyond one mile of any municipality and completely or partially within a county any part of which is within 50 miles of an international border. To subdivide real property into more than three parcels, an owner must apply to the nearest municipality for the provision of sewage drainage and water supply services, must ensure that drainage and water systems are provided for each parcel proposed for the subdivision, and must contribute to the municipality 100 percent of the municipality's costs for the installation of the systems and the provision of the services to the parcels. If the cost to the owner of the real property to install the systems and provide the services exceeds an amount equal to 25 percent of the value of the real property, the owner is exempt from the installation of the systems and the provision of the services. EFFECTIVE DATE September 1, 2001.