HBA-BSM H.B. 924 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 924
By: Walker
Land & Resource Management
7/25/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, a water district or water supply corporation
(corporation) was 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.
House Bill 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

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 924 amends the Water Code to authorize a water district
(district) or water supply corporation (corporation) to require an
applicant for service to grant as a condition for service a permanent
recorded easement that is dedicated to the district or corporation and will
provide a reasonable right of access and use to allow the district or
corporation to construct, install, maintain, replace, upgrade, inspect, or
test any facility necessary to serve that applicant as well as the
district's or corporation's purposes in providing system-wide service.  The
bill prohibits a district or corporation from requiring an applicant to
provide an easement for a service line for the sole benefit of another
applicant.  As a condition of service to a new subdivision, the bill
authorizes a district or corporation 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 anticipated demands. 

EFFECTIVE DATE

September 1, 2001.