BILL ANALYSIS H.B. 1783 By: Yarbrough 5-3-95 Committee Report (Unamended) BACKGROUND Investor owned public utilities are being treated differently than Municipal Utility Districts, cities and gas companies while trying to provide service to residents in the county. Investor owned public utilities are required to pay a fee to use county road easements while Municipal Utility Districts, cities and Gas companies are not required to pay a fee. The TNRCC is actively promoting regionalization through combining utilities or stimulating growth of existing utilities in all areas of Texas. Regionalization will reduce cost to the customers and increase reliability and performance of the utility service. One of the potential barriers to the formation of larger sewer utilities is the fees mandated by Counties. Various investor owned public utilities are proposing to extend sewer service into areas that at present are being served by failing septic tanks. If the fee for installing sewer lines is assessed, the additional cost will be passed on to the new customers. It is possible that some of these customers will choose, because of the price, not to connect. We should be actively encouraging homeowners to connect to a centralized wastewater treatment facility to protect public health and to reduce the potential for groundwater contamination. PURPOSE This measure will provide fair treatment of investor owned public utility when installing or replacing a water or sewer line in the county's right-of-way RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1: Amends Subchapter G, Chapter 13, Water Code, by adding Section 13.256; Sec.13.256 (a), prohibits a county of more than 2.8 million in population from charging a water and sewer utility a fee for the privilege of installing or repairing a water or sewer line in the county's right-of-way. (b) This act does not affect a franchise agreement or other contract entered into prior to September 1, 1995. SECTION 2: Effective date SECTION 3: Emergency clause SUMMARY OF COMMITTEE ACTION HB 1783 was considered by the County Affairs Committee in a public hearing on 3/22/95. Representative Yarbrough opened. The following people testified for HB 1783: Glenn Nitsch, representing himself; and Alex Diaz, representing himself. Representative Yarbrough closed. HB 1783 was left pending. HB 1783 was considered by the County Affairs Committee in a public hearing on 5/3/95. HB 1783 was reported favorably with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by the record vote of: 6 ayes, 0 nays, 0 pnv, 3 absent.