SRC-PNG S.B. 300 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 300
76R4306 SMH-DBy: Truan
Border Affairs - Special
2/16/1999
As Filed


DIGEST 

Currently, political subdivisions may divert revenues from a utility that
receives assistance under the Economically Distressed Area Program (EDAP).
With the diversion of revenues from the utility for other purposes, the
utility operator must either overcharge for the utility service or fail to
adequately fund maintenance or operations of the utility, or both. This
bill authorizes political subdivisions that receive state financial
assistance to use the revenue from water supply or sewer projects only for
utility purposes until the financial assistance is repaid.  

PURPOSE

As proposed, S.B. 300 authorizes political subdivisions that receive state
financial assistance to use the revenue from water supply or sewer projects
only for utility purposes until the financial assistance is repaid.  

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 Chapter 16J, Water Code, by adding Section 16.352, as
follows: 

Sec.  16.352.  USE OF REVENUE FROM WATER SUPPLY OR SEWER PROJECTS.
Authorizes a political subdivision that receives financial assistance under
Chapter 17K that is required to be repaid to use the revenue received from
certain water supply or sewer projects only for utility purposes until the
financial assistance is repaid.  Authorizes the attorney general to file
suit to enjoin an actual or threatened violation of this section upon the
request of the Texas Water Development Board or on the attorney general's
initiative.   

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