SRC-PNG H.B. 1069 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1069
76R4179 SKT-FBy: Lewis, Ron (Brown)
Natural Resources
4/27/1999
Engrossed


DIGEST 

In 1985, Chapter 65 of the Texas Water Code was recodified to make any
non-profit water supply corporation (WSC) providing services on or before
January 1, 1985 eligible to convert to a Special Utility District (SUD),
provided it met certain legal and administrative requirements.  Converting
to a SUD meant that a WSC was provided an alternative source of state
funding for water projects in rural communities, instead of having to rely
solely on low-interest loans and grants from the United States Department
of Agriculture.  The January 1, 1985 date was set in order to limit the
number of SUDs and the amount of state bonds issued to them.  During the
past 14 years, only 21 WSCs have converted to SUDs, and there are currently
900 WSCs operating statewide, many of which were formed after January 1,
1985.  As Texas continues to grow, there is an increased need for rural
water corporations to keep up with demand for water and wastewater
services.  This bill eliminates the January 1, 1985 deadline from current
law, allowing WSC's to convert to SUD's. 

PURPOSE

As proposed, H.B. 1069 eliminates the January 1, 1985 deadline from current
law, allowing water supply corporations to convert to Special Utility
Districts, so as to be eligible for alternative sources of state funding
for water projects in rural communities. 

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 65.001(10), Water Code, to define "water supply
or sewer service corporation"(corporation), rather than "water supply
corporation."  Defines a corporation as any member-owned, member
controlled, and nonprofit, rather than consumer-owned, water supply or
sewer service corporation created and operating under Chapter 67.  Provides
that the corporation is providing services of a water supply or sewer
service corporation under a certificate of convenience and necessity issued
by the Texas Natural Resource Conservation Commission or a predecessor
agency, rather than the Public Utility Commission of Texas.  Deletes the
requirement that the corporation must have supplied these services on or
before January 1, 1985.  Makes a conforming change. 

SECTION 2. Amends Sections 65.014, 65.015, and 65.022, Water Code, to make
conforming and nonsubstantive changes. 

SECTION 3. Emergency clause.
 Effective date: upon passage.