BILL ANALYSIS

C.S.H.B. 722

By: Howard, Donna

Urban Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Several cities around the state purchase property within the boundaries of neighboring cities, often for a public purpose, such as a water supply or landfill.  However, sometimes a city with property in a neighboring city proposes a use for the property that is not compatible with local land use regulations of the neighboring city or the wishes of the city's citizens.  Some large cities in Texas, for example, have formed a regional utility authority and own or are purchasing property within the boundaries of a smaller neighboring city in order to build a deep-water intake facility.  The project would violate the local land use regulations that the neighboring city has in place for the site.  The proposed site is located next to a long-standing residential neighborhood, and the citizens of the neighboring city have expressed their disapproval of using the site for such a project.  State officials have also expressed concern over the process by which the larger cities are implementing this project.  Because the citizens of the neighboring city do not vote for the governing body of the cities that seek to build the deep-water intake facility, they have limited options to express their disapproval of the intended use of the site.  

C.S.H.B. 722 requires a person who seeks to construct a facility to supply drinking water, with a value greater than $100 million, to contract for an independent review of the facility at the request of a municipality or other local government in whose boundaries the facility will be located.  The bill requires the review to examine the scope of the project, the benefits of the facility to the municipality or other local government, and the effect of the facility on the individuals in the municipality or other local government who would be affected by the facility. The bill requires a copy of the review to be provided to the requesting entity and any other local government that may be affected by the facility.

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

C.S.H.B. 722 amends the Local Government Code to require a person, before the person may begin construction of a facility to supply drinking water with a value greater than $100 million, and at the request of a municipality or other local government in whose boundaries the facility will be located, to contract for an independent review of the facility that examines the scope of the project, the benefits of the facility to the municipality or other local government, and the effect of the facility on the individuals in the municipality or other local government who would be affected by the facility, and to provide a copy of the review to the requesting entity and any other local government that may be affected by the facility.

C.S.H.B. 722 defines "facility to supply drinking water" as an intake facility, a pumping facility, a storage facility, a pipeline, and any other facility to withdraw, transport, or otherwise deliver drinking water.

EFFECTIVE DATE

On passage, or, if the act does not receive the necessary vote, the act takes effect September 1, 2009.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 722 requires a person that seeks to construct a drinking water facility with a value greater than $100 million to contract for an independent review of the facility at the request of a municipality or other local government in whose boundaries the facility will be located, whereas the original requires a regional utility authority that seeks to construct a drinking water facility that will be located in a municipality not participating in the authority to receive the consent of the governing body of that municipality and comply with that municipality's zoning and permitting requirements.  The substitute removes provisions in the original prohibiting the governing body from providing consent under specified circumstances.  The substitute removes provisions in the original defining "regional utility authority" and referencing a regional utility authority in the definition of "facility to supply drinking water."