BILL ANALYSIS

C.S.H.B. 4217

By: Troxclair

Natural Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The West Travis County Public Utility Agency requires new right-of-way authority in order to pursue projects that are outlined in the district's capital improvement plan. C.S.H.B. 4217 seeks to address this issue by granting the West Travis County Public Utility Agency the power of eminent domain.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 4217 amends the Local Government Code to establish that a public utility agency domiciled in a county with a population of more than 1.2 million has the power of eminent domain and to provide for the agency's authority to acquire by condemnation land, easements, and property inside the service area for its projects or purposes. The bill requires the power of eminent domain to be exercised in the manner provided by the Property Code, except that the agency is not required to do the following:

· give bond for appeal or bond for costs in any condemnation suit or other suit to which it is a party; or

· deposit more than the amount of any award in any suit.

The bill prohibits the power of eminent domain from being used for the condemnation of land for the purpose of acquiring rights to underground water or of water or water rights. The bill's eminent domain provisions take effect only if the bill receives the necessary vote for immediate effect.

C.S.H.B. 4217 requires such a public utility agency to hold a public hearing and provide an opportunity for public comment before extending service to new customers located outside the service area identified in the 10-year capital improvements plan that is in effect when an application for extension of service is received.

EFFECTIVE DATE

Except as otherwise provided, on passage, or, if the bill does not receive the necessary vote, September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 4217 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute omits provisions that appeared in the introduced authorizing a public utility agency, for the provision of water or sewer service, to do the following in a county with fewer than one million utility connections:

· own, hold, lease, or otherwise acquire water;

· build, operate, or maintain pipelines to transport water or wastewater;

· build and operate plants and equipment necessary to distribute water or to treat and dispose of wastewater;

· sell water or provide wastewater services to a political subdivision, a private corporation, or an individual;

· establish and enforce reasonable customer water conservation practices and prohibit excessive or wasteful customer uses of potable water; and

· acquire, for the use and benefit of the agency, land, easements, and property by purchase.

While both the introduced and the substitute establish that a public utility agency has the power of eminent domain, the substitute revises those provisions as follows:

· changes the public utility agency granted the power of eminent domain from a public utility agency in a county with a population of fewer than one million utility connections to a public utility agency domiciled in a county with a population of more than 1.2 million; and

· omits the authorization that appeared in the introduced for the public utility agency to acquire by condemnation, for the use and benefit of the agency, land, easements, and property outside the boundaries of the certificated service area.

The substitute includes a requirement absent from the introduced for a public utility agency to hold a public hearing and provide an opportunity for public comment before extending service to new customers located outside the service area identified in the 10-year capital improvements plan that is in effect when an application for extension of service is received.