HBA-CBW C.S.H.B. 924 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 924 By: Walker Land & Resource Management 3/8/2001 Committee Report (Substituted) BACKGROUND 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. C.S.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 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 C.S.H.B. 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. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 924 modifies the original bill by providing that the easement granted to a water district or water supply corporation be used to serve the district's or corporation's purposes in providing system-wide service, rather than to serve other customers of the district or corporation. The substitute adds new language to prohibit a district or corporation from requiring an applicant to provide an easement for a service line for the sole benefit of another applicant.