C.S.H.B. 2036 78(R)    BILL ANALYSIS

          C.S.H.B. 2036
By: Swinford
Government Reform
Committee Report (Substituted)


BACKGROUND AND PURPOSE 
Cities lose significant revenue when customers move to another city and
fail to pay owed utility  bills to their original city.  Revenue losses
are most prevalent in the water and sewer services, although solid waste
services also experience losses. Traditionally, those customers who pay
their bills are forced to cover the debts of those who do not.  To ensure
equity among all customers and to perform due diligence in the management
of public funds, cities and other public entities have expressed interest
in being able to work with each other to collect past due charges. 

C.S.H.B. 2036 will authorize cities and other public entities to work
cooperatively to recover lost revenue by collecting unpaid utility charges
or solid waste services disposal fees. 


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.  Amends Chapter 402, Subchapter Z, Local Government Code, by
adding Section 402.910 which authorizes a municipality that operates a
utility system or provides solid waste disposal services to enter an
agreement for the collection of unpaid utility charges or solid waste
disposal services fees with another municipality, a county or public
agency that operates these services, or another political subdivision
acting on behalf of any of these entities to assist in the collection of
unpaid utility charges or solid waste disposal fees.  Section 402.910
allows a municipality to refuse to provide service to a person who owes
past due utility charges or solid waste disposal services fees to another
party to the agreement.  Section 402.910 also authorizes a municipality
under agreement to collect past due charges or fees owed to another party
to the agreement and a service charge.  Section 402.910 requires that the
agreement provide for the apportionment of any past due charges, fees, and
service charges between the collecting entity and the entity to which the
fees are owed. 

SECTION 2.  Amends Section 364.034(e), Health and Safety Code, by
providing that Section 364.034(e) must not limit the authority of a
municipality to contract with another public agency, private contractor
for the other public agency, or private contractor to provide all or some
solid waste disposal services to persons in its territory.  

SECTION 3.  Amends Chapter 364, Subchapter C, Health and Safety Code, by
adding Section 364.037 which authorizes a county or public agency that
offers solid waste disposal services to enter an agreement for the
collection of unpaid utility charges or solid waste disposal services fees
with another county or public agency, a municipality that operates these
services, or another political subdivision acting on behalf of any of
these entities to assist in the collection of unpaid utility charges or
solid waste disposal fees.  Section 364.037 allows the county or public
agency to refuse to provide solid waste disposal services to a person who
owes past due utility charges or solid waste disposal services fees to
another party to the agreement.  Section 364.037 also allows a county or
public agency under agreement to collect past due charges or fees owed to
another party to the agreement and a service charge.  Section 364.037
requires that the agreement provide for the apportionment of any past due
charges, fees, and service charges between the collecting entity and the
entity to which the fees are owed. 

SECTION 3.  Effective Date.

 EFFECTIVE DATE
This Act takes effect immediately with a vote of two-thirds of all members
elected to each house. If this Act does not receive the necessary votes
for immediate effect, this Act takes effect September 1, 2003. 

COMPARISON OF ORIGINAL TO SUBSTITUTE
The substitute modifies the original by adding provisions to authorize
another political subdivision acting on behalf of a municipality, county,
or public agency to enter an agreement to assist in the collection of
unpaid utility charges or solid waste disposal fees (Section 402.910 and
Section 364.037, Health and Safety Code). 

The substitute adds SECTION 2  and renumbers the remaining sections
accordingly.  The substitute provides that Section 364.034 (e) must not
limit the authority of a municipality to contract with another public
agency, private contractor for the other public agency, or private
contractor to provide all or some solid waste disposal services to person
in its territory (Section 364.034, Health and Safety Code).