JBM H.B. 1217 75(R)BILL ANALYSIS


NATURAL RESOURCES
H.B. 1217
By: Gutierrez
3-12-97
Committee Report (Unamended)



BACKGROUND 

Due to the certification requirements under current water code and federal
preemption law favoring water supply and sewer service corporations, the
expansion of city water systems has been greatly inhibited in the city's
outlying areas.  Many water corporations now have the capability of
supplying sufficient water pressure to operate hydrant systems. However,
the corporations have been reluctant to allow cities to utilize the
hydrants in light of the potential liability, should water pressure
problems arise. 

PURPOSE

To allow contractual relationships between a city or a volunteer fire
department and a water supply or sewer service corporation to provide
water supply and/or hydrant services.  

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 Section 2, Chapter 76, Acts of the 43rd Legislature,
1st Called Session, 1933 (Article 1434a, Vernon's Texas Civil Statutes),
by adding Subsections (e) and (f) to provide as follows: 

(e) States that a municipality or a volunteer fire department may 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. Further, this subsection states that a contract made
under this section must be on terms that are beneficial to all parties to
the contract. 

(f)  Stipulates that 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.  This section also states that a water supply
corporation that supplies water or equipment under a contract made with a
municipality or volunteer fire department under Subsection (e) may not be
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
they had supplied the water or equipment directly. 

SECTION 2.  Emergency clause.