SRC-MKV H.B. 924 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 924
77R8628 MI-FBy: Walker (Brown)
Natural Resources
4/7/2001
Engrossed


DIGEST AND PURPOSE 

Currently, a water district or water supply corporation (corporation) is
not authorized to require an applicant or developer, as a condition for
service, to grant or provide a permanent recorded easement to a district or
corporation.  Occasionally, a district or corporation is required to move
lines in response to road projects,  resulting in significant costs that
may be passed on to customers through higher rates. H.B. 924 authorizes a
water district or corporation to require a service applicant or developer,
as a condition for service, to grant or provide a permanent recorded
easement to the district or corporation for specified purposes. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 49.218, Water Code, by adding new Subsections
(d), (e), and (f) and relettering existing Subsection (d) as Subsection
(g), as follows: 

(d)  Authorizes a district or water supply corporation to require, as a
condition for service, that an applicant for service grant to the district
or water supply corporation a permanent recorded easement that meets
certain requirements. 
 
(e)  Prohibits a district or water supply corporation, under Subsection
(d), from requiring  an applicant to provide an easement for a service line
for the sole benefit of another applicant. 

(f)  Authorizes a district or water supply corporation, as a condition of
service to a new subdivision, to require a developer to provide permanent
recorded easements to and throughout the subdivision adequate for the
construction, installation, maintenance, replacement, upgrade, inspection,
or test of any facility necessary to serve the subdivision's anticipated
service demands when the subdivision is fully occupied. 

(g)  Authorizes a district or water supply corporation to also lease
property from others for its use on such terms and conditions as the board
of the district or the board of directors of the water supply corporation
may determine to be advantageous. 
 
SECTION 2.  (a) Effective date: September 1, 2001.
 
  (b) Makes application of this Act prospective.