BILL ANALYSIS H.B. 1187 By: Pickett (Sponsor) Water 4-28-95 Senate Committee Report (Unamended) BACKGROUND Westway is an unincorporated community located just west of El Paso, Texas. Water and wastewater projects are coordinated by the El Paso County Water and Improvement District--Westway (district). In 1992, the district's only well failed, which created an emergency situation for the citizens of that community. Seeking an affordable solution, the district, the City of El Paso (El Paso), and the El Paso Water Utilities Public Service Board (board) entered into a water supply contract. One of the conditions of the contract required the parties to negotiate another contract allowing the board to completely manage and operate the Westway water and wastewater system, and to transfer this system eventually into the El Paso system. PURPOSE As proposed, H.B. 1187 authorizes the dissolution and transfer of all assets and liabilities of the El Paso County Water Control and Improvement District--Westway to the City of El Paso. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. TRANSFER OF ASSETS AND LIABILITIES; REQUEST FOR DISSOLUTION ORDER. (a) Authorizes the board of directors of the El Paso County Water Control and Improvement District--Westway (district) to transfer to the City of El Paso (city) the district's assets and liabilities on May 16, 1994, in accordance with a management and transfer agreement (agreement) among the district, the city, and the El Paso Water Utilities Public Service Board (board). (b) Requires the board of directors, on meeting the conditions stated in the agreement, to notify the executive director of the Texas Natural Resource Conservation Commission (commission) and request an order of dissolution. (c) Requires the board of directors to provide the executive director of the commission with any information or documentation needed to monitor progress toward meeting the conditions of the agreement. SECTION 2. ORDER OF DISSOLUTION; TRANSFER OF ASSETS AND LIABILITIES. (a) Requires the executive director of the commission, on receipt of the notice and request from the city, to verify whether all the parties to the agreement have met the conditions of the agreement. (b) Requires the executive director of the commission to issue an order of dissolution if the director determines that the district is ready to be dissolved in accordance with the agreement, all the district's assets and liabilities are ready to be transferred to the city for incorporation into the city's water and sewer system, the city and the board are prepared to accept the transfer, and the city council has adopted a resolution accepting the transfer. (c) Requires the executive director of the commission, in issuing an order of dissolution, to direct the board of directors to provide certain parties with all transfer documents and other information necessary for consolidation and transfer, to order the district dissolved, and to order that all assets and liabilities of the district be transferred to the city for incorporation. (d) Provides that the consideration and adoption of a dissolution order under this section is not a contested case under Chapter 2001, Government Code. (e) Makes the order of dissolution wholly sufficient and effective to accomplish the dissolution and transfer of assets and liabilities. (f) Requires the executive director of the commission to file with the secretary of state and in the deed records of El Paso County a certified copy of the dissolution order and a certified copy of the resolution of the El Paso City Council accepting the transfer. SECTION 3. COLLECTION OF MONEY OWED THE DISTRICT. Authorizes the city, on or after the date of issue of the dissolution order, to collect all money owed the district on the date the order is issued. SECTION 4. RATES FOR SERVICE. (a) Authorizes the city to charge residents of the county who live in the former service area of the district water supply or sewer service rates exceeding the rates charged residents of the municipality, if the higher rates are necessary or appropriate to fully cover the cost of service to the area. (b) Authorizes the rates to include amounts necessary to recover certain costs. SECTION 5. VALIDATION. Validates the acts of the body serving as the board of directors of the district before January 1, 1995. Authorizes the invalidation of acts if the body serving as the board of directors acted with knowledge that the action was illegal. Provides that this section does not apply to any matter that, on the effective date of this Act, is judged invalid. SECTION 6. Emergency clause. Effective date: upon passage.