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.