HBA-BSM H.B. 924 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 924 By: Walker Land & Resource Management 7/25/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, a water district or water supply corporation (corporation) was not authorized to require an applicant or developer as a condition for service to grant or provide a permanent recorded easement to a district or corporation. Occasionally, a district or corporation is required to move lines in response to road projects, resulting in significant costs that may be passed on to customers through higher rates. House Bill 924 authorizes a water district or corporation to require a service applicant or developer as a condition for service to grant or provide a permanent recorded easement to the district or corporation for specified purposes. 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 924 amends the Water Code to authorize a water district (district) or water supply corporation (corporation) to require an applicant for service to grant as a condition for service a permanent recorded easement that is dedicated to the district or corporation and will provide a reasonable right of access and use to allow the district or corporation to construct, install, maintain, replace, upgrade, inspect, or test any facility necessary to serve that applicant as well as the district's or corporation's purposes in providing system-wide service. The bill prohibits a district or corporation from requiring an applicant to provide an easement for a service line for the sole benefit of another applicant. As a condition of service to a new subdivision, the bill authorizes a district or corporation to require a developer to provide permanent recorded easements to and throughout the subdivision adequate for the construction, installation, maintenance, replacement, upgrade, inspection, or test of any facility necessary to serve anticipated demands. EFFECTIVE DATE September 1, 2001.