SRC-TJG H.B. 1014 78(R) BILL ANALYSIS Senate Research Center H.B. 1014 78R7896 RCJ-FBy: Cook, Robby (Armbrister) Natural Resources 4/17/2003 Engrossed DIGEST AND PURPOSE A special utility district (district) is created by converting an existing nonprofit water supply or sewer service corporation into a political subdivision. Currently, water supply companies (WSC) apply to the Texas Commission on Environmental Quality (TCEQ) for authorization to convert into districts. TCEQ has determined that a WSC providing only retail water service seeking to convert to a district, which would provide the same retail water service, can be required to go through a contested case hearing under certain conditions. H.B. 1014 authorizes districts to be created for certain purposes and requires the contents of the resolution to specify each purpose for which the district is being established. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 65.012, Water Code, to make conforming and nonsubstantive changes. SECTION 2. Amends Section 65.015, Water Code, to require a resolution to specify each purpose for which the district is being established, in addition to the requirements stated in Section 65.014. Makes nonsubstantive changes. SECTION 3. (a) Effective date: upon passage or September 1, 2003. (b) Makes application of the change in law made by this Act to Section 65.015, Water Code, retroactive to September 1, 2001.