SRC-JRN S.B. 859 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 859
By: Lucio
Intergovernmental Relations
3-18-97
As Filed


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 to expansion of city water
systems to outlying areas, and the costs involved in extending water lines
may be prohibitive.  This bill allows a municipality to contract with a
water supply corporation for fire hydrant service. 

PURPOSE

As proposed, S.B. 859 allows a municipality to contract with a water
supply corporation for fire hydrant service. 

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 1434a, V.T.C.S., by adding Subsections (e) and
(f), to authorize water and sewer service corporations to enter into a
contract with a municipality or a volunteer fire department and to supply
water to fire hydrants for the purposes of fire suppression by the
municipality's fire department or a volunteer fire department.  Requires
the contract to be under terms and conditions mutually beneficial to the
contracting parties.  Provides that the furnishing of a water supply and
fire hydrant equipment by a municipality or a volunteer fire department
directly or through another entity by a lease, contract or another manner
is an essential governmental function and not a proprietary function for
all purposes.  Provides that a water supply and sewer service corporation
that contracts with a municipality or volunteer fire department provides a
service that is an essential governmental function and limits the
liability of the corporation to the extent the municipality or fire
department would be liable if the municipality or fire department were
performing such functions. 

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