HBA-AMW H.B. 3158 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3158 By: Bonnen Natural Resources 4/22/2001 Introduced BACKGROUND AND PURPOSE Private water system companies operating throughout the state provide water services to small neighborhoods for which no alternative service is available. These companies are permitted through the Texas Natural Resource Conservation Commission (TNRCC). Since these companies are private businesses, the private and real estate property owned by the companies is taxed. Foreclosure against companies that do not pay taxes may be an undesirable option because the liability for operating a private water system is high and taxing units may not have the expertise to operate the system. House Bill 3158 requires a private water system company to provide TNRCC with a tax certificate verifying that no delinquent taxes, interest, or penalties on the property are due to the taxing unit before a company is granted a certificate of public convenience and necessity for water utility services. 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 3158 amends the Water Code to prohibit the Texas Natural Resource Conservation Commission (TNRCC) from granting a certificate of public convenience and necessity for water utility service to an applicant unless the applicant provides TNRCC with a tax certificate for each taxing unit in which the property is located showing that no delinquent taxes, interest, or penalties are due to the taxing unit on the property. EFFECTIVE DATE September 1, 2001.