SRC-TJG H.B. 1152 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1152
By: Puente (Estes)
Natural Resources
5/10/2003
Engrossed


DIGEST AND PURPOSE 

Population and water demand projections in the 2002 State Water Plan
indicate that 43 percent of the demand for drinking water in 2050 will not
be met during a drought of record with current supplies. Conservation of
water use is an important strategy in meeting the state's future water
needs, including reducing customer water demand.  Water supply districts
and municipalities, as governmental entities, have the power to enact
mandatory customer water use practices such as lawn watering rotations and
prohibition of wasteful  water use practices.  For example, a water supply
district or municipality can prohibit the practice of watering lawns to
the point the water runs off the property and down the street.  However,
nonprofit water supply corporations do not have such authority.  H.B. 1152
amends the Texas Water Code to provide nonprofit water supply corporations
the statutory authority to enforce reasonable customer water conservation
practices and to prohibit wasteful or excessive water use by allowing the
assessment of reasonable penalties. These penalties could be reviewed by
the Texas Commission on Environmental Quality (TCEQ) to ensure that they
are reasonable.  


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 67.011, Water Code, as follows:

(a) Adds establishing and enforcing reasonable customer water conservation
practices and prohibiting excessive or wasteful uses of potable water to
the list of actions a corporation may take in a county with a population
of less than 3.3 million.  

(b) Authorizes a corporation to enforce customer water conservation
practices under Subsection (a)(5) by assessing reasonable penalties as
provided in the corporation's tariff. Authorizes a penalty to be appealed
in the same manner as provided for appeal of new customer service costs
under Section 13.043(g).  Requires the Texas Commission on Environmental
Quality (TCEQ), in an appeal, to approve a corporation's penalty if TCEQ
determines that the penalty is clearly stated in the tariff, that the
penalty is reasonable, and that the corporation has deposited the penalty
in a separate account dedicated to enhancing water supply for the benefit
of all the corporation's customers. 

SECTION 2.  Effective date: upon passage or September 1, 2003.