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.