SRC-PNG H.B. 1362 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1362
76R3883 JJT-FBy: Clark (Ogden)
Intergovernmental Relations
4/26/1999
Engrossed


DIGEST 

Currently, Section 13.255, Water Code, provides a mechanism for
municipalities in Texas to be granted a single certification to provide
water and sewer service for areas within their corporate limits when the
certificate of convenience and necessity for those areas was previously
held by another retail public utility.  This situation generally arises
when a previously rural area is incorporated or is annexed into a
municipality due to urban growth.  The municipality compensates the retail
public utility for the transferred service area and infrastructure.  This
compensation is determined by an appraiser selected solely by the retail
public utility with the cost of the appraiser to be paid by the
municipality.  The appraiser's decision is binding on the Texas Natural
Resource Conservation Commission (TNRCC).  This bill would provide a
statutory due process mechanism whereby disputes over an appraiser's
qualifications may be equitably resolved by the parties or TNRCC. 

PURPOSE

As proposed, H.B. 1362 provides a statutory due process mechanism whereby
disputes over an appraiser's qualifications may be equitably resolved by
the parties or Texas Natural Resource Conservation Commission. 

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 13.255, Water Code, by amending Subsection (l)
and adding Subsection (n), to require the amount of compensation to be paid
to a retail public utility (utility) under this section, rather than the
compensation provided under Subsection (g), to be determined by a qualified
individual or firm to serve as independent appraiser, who shall be selected
by the affected utility, except as provided under Subsection (n).  Requires
the amount of compensation to be paid to the utility to be determined by a
qualified individual or firm serving as independent appraiser to which the
utility and the municipality agree, if the affected retail public utility
is located in an area annexed under Section 43.023, 43.024, 43.025, or
43.028, Local Government Code.  Requires the municipality and the utility
to each appoint an individual or firm to serve as independent appraiser by
a certain date,  if the utility and municipality are unable to agree on a
single individual or firm to serve as independent appraiser.  Requires the
independent appraisers to meet to attempt to reach an agreed determination
of the amount of compensation by a certain date.  Authorizes the utility or
municipality to petition the Texas Natural Resource Conservation Commission
(TNRCC) or a person designated by TNRCC for this purpose to appoint a third
independent appraiser to reconcile the appraisals of the other appraisers,
if the appraisers are unable to agree on a determination of compensation by
a certain date.  Prohibits the determination of the third appraiser from
being less than the lessor or more than the greater of the two appraisals.
Provides that a determination of compensation reached under this subsection
is binding on TNRCC.  Requires the utility and the municipality to share
equally the costs of a third appraiser appointed under this subsection. 

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