H.B. 1152 78(R)    BILL ANALYSIS


H.B. 1152
By: Puente
Natural Resources
Committee Report (Unamended)



BACKGROUND 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 this
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

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1. Subsection (a) provides that nonprofit water supply
corporations may establish and enforce reasonable customer water
conservation practices and may prohibit excessive or wasteful water use.  

Subsection (b) provides that these practices and prohibitions may be
enforced through the assessment of penalties as provided in the
corporation's tariff. The penalties may be reviewed if the customer
appeals to the TCEQ, but the agency must uphold the penalty if the penalty
is clearly stated in the corporation's tariff; the penalty is reasonable;
and provided the corporation shows that when the penalty is collected it
is deposited in an account dedicated to improving water supply for all
customers of the corporation. Procedures provided in current Section
13.043(g), Texas Water Code, would apply in an appeal.  

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.