SRC-TNM H.B. 1217 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1217
By: Gutierrez (Lucio)
Intergovernmental Relations
5-1-97
Engrossed


DIGEST 

Currently, there is no state law that allows a municipality to contract
with a water supply corporation for fire hydrant service.  Certification
requirements under the Water Code may limit expansion of city water
systems to outlying areas, and the costs involved in extending water lines
may be prohibitive.  H.B. 1217 would allow a municipality to contract with
a water supply corporation for fire hydrant service. 

PURPOSE

As proposed, H.B. 1217 outlines provisions regarding contracts for fire
hydrant service made with a water supply and sewer service corporation. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2, Article 1434a, V.T.C.S., by adding
Subsections (e) and (f), to authorize a municipality or a volunteer fire
department to contract with a water supply corporation to supply water or
fire hydrants to facilitate fire suppression by the municipal fire
department or volunteer fire department.  Requires a contract made under
this section to be on terms that are beneficial to all parties to the
contract.  Provides that for all purposes, including the application of
Chapter 101, Civil Practice and Remedies Code, an action a municipality or
volunteer fire department takes to provide water or equipment for fire
hydrants through a lease, contract, or other method is an essential
governmental function and is not a proprietary function.  Prohibits a
water supply corporation that supplies water or equipment under a contract
made with a municipality or volunteer fire department under Subsection (e)
of this section from being held liable for damages that arise from those
actions to an extent greater than the municipality or volunteer fire
department  may be held liable if the municipality or volunteer fire
department supplied the water or equipment directly. 

SECTION 2. Emergency clause.
  Effective date: upon passage.