SRC-TJG, LBB C.S.H.B. 3034 78(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 3034
78R17686 JJT-FBy: Ellis, Dan(Armbrister)
Business & Commerce
5/23/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

The 77th Texas Legislature incorporated language into S.B. 2 which
prohibited the consolidation of more than one private water system under a
single rate unless certain conditions applied, and set forth provisions
regarding factors and costs to be considered in setting rates and the
proceedings related to complaints of utility rate changes.  In
implementing the legislation, the Texas Commission on Environmental
Quality (TCEQ) requested clarification regarding the applicability clause
of the legislation.  C.S.H.B. 3034 clarifies that the legislative intent
was for the legislation to apply to all private water companies with a
rate proceeding in which TCEQ had not issued a final order. 

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.  (a)  Amends Section 10.08(a), Chapter 966, Acts of the 77th
Legislature, Regular Session, 2001,  as follows: 

(a)  Provides that the changes in law made by this article to Chapter 13,
Water Code, apply to a proceeding in which the Texas Commission on
Environmental Quality has not issued a final order before the effective
date of this article; provided, however, that this article does not apply
to a public utility that provided utility service in only 24 counties on
January 1, 2003.  Provides that the provisions of Chapter 13, Water Code,
that were in effect before September 1, 2001, apply to those public
utilities.  Deletes text relating to the application of this Act to a
retail public utility.  Deletes text requiring this subsection to not be
construed to permit a public utility to increase rates without obtaining
the approval of the Texas Natural Resource Conservation Commission. 

(b)  Provides that the change in law made by this Act is a clarification
of existing law and does not imply that existing law may be construed as
being inconsistent with the law as amended by this Act. 

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