77R8628 MI-F                           
         By Walker                                              H.B. No. 924
         Substitute the following for H.B. No. 924:
         By Walker                                          C.S.H.B. No. 924
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of a water district or water supply
 1-3     corporation to require the grant of an easement as a precondition
 1-4     of service.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 49.218, Water Code, is amended by adding
 1-7     new Subsections (d), (e), and (f) and relettering existing
 1-8     Subsection (d) as Subsection (g) to read as follows:
 1-9           (d)  A district or water supply corporation may require, as a
1-10     condition for service, that an applicant for service grant to the
1-11     district or water supply corporation a permanent recorded easement
1-12     that:
1-13                 (1)  is dedicated to the district or water supply
1-14     corporation; and
1-15                 (2)  will provide a reasonable right of access and use
1-16     to allow the district or water supply corporation to construct,
1-17     install, maintain, replace, upgrade, inspect, or test any facility
1-18     necessary to serve that applicant as well as the district's or
1-19     water supply corporation's purposes in providing system-wide
1-20     service.
1-21           (e)  A district or water supply corporation may not, under
1-22     Subsection (d), require an applicant to provide an easement for a
1-23     service line for the sole benefit of another applicant.
1-24           (f)  As a condition of service to a new subdivision, a
 2-1     district or water supply corporation may require a developer to
 2-2     provide permanent recorded easements to and throughout the
 2-3     subdivision adequate for the construction, installation,
 2-4     maintenance, replacement, upgrade, inspection, or test of any
 2-5     facility necessary to serve the subdivision's anticipated service
 2-6     demands when the subdivision is fully occupied.
 2-7           (g) [(d)]  A district or water supply corporation may also
 2-8     lease property from others for its use on such terms and conditions
 2-9     as the board of the district or the board of directors of the water
2-10     supply corporation may determine to be advantageous.
2-11           SECTION 2.  (a)  This Act takes effect September 1, 2001.
2-12           (b)  The changes in law made by Sections 49.218(d), (e), and
2-13     (f), Water Code, as added by this Act, apply only to an application
2-14     for service that is made with a district or water supply
2-15     corporation on or after September 1, 2001.