BILL ANALYSIS

Senate Research Center	S.B. 1129
85R5471 AAF-F	By: Hinojosa
	Transportation
	4/6/2017
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 1129 amends Sections 31.164(b) and (d), Water Code. The bill increases the maximum term of a district's franchise from 30 to 50 years to be commensurate with the maximum lease term that a district may grant without bidding.

Current law requires notice of a franchise to be published for three consecutive weeks and also requires that commissioners affirmatively vote to grant a franchise at three separate meetings. This bill clarifies that the third vote of the navigation and canal commission of a district (commission) may not take place before the third publication of notice.

Finally, this bill clarifies that the effective date of a franchise is the date the grantee files written acceptance with the commission.

As proposed, S.B. 1129 amends current law relating to franchises granted by navigation districts.

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 Sections 61.164(b) and (d), Water Code, as follows:

(b) Increases from 30 to 50 the maximum number of years that a franchise is granted, except under certain circumstances. Prohibits the third meeting at which the navigation and canal commission of a navigation district (commission; district) votes to grant a franchise from taking place before the date the notice required by Subsection (c) (relating to requiring that no franchise be granted until a certain notice is published in a certain newspaper once a week for three consecutive weeks at the expense of the applicant) is published for the third time.

(d) Requires the franchise to require the grantee to file a written acceptance within 30 days after the franchise is finally approved by the commission. Provides that, unless the district and the grantee agree on a later date, the effective date of the franchise is the date the grantee files the written acceptance with the commission. Makes a nonsubstantive change.�

SECTION 2. Effective date: September 1, 2017.