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.