JBM H.B. 3552 75(R)BILL ANALYSIS


NATURAL RESOURCES
H.B. 3552
By: Pickett
4-16-97
Committee Report (Unamended)



BACKGROUND 

The San Elizario Grant Municipal Utility District (SEGMUD) is a small
debt-free water district consisting of 1794 acres and providing water
service to sixty-three connections.  It is entirely surrounded by the
Lower Valley Water District  (LVWD) which covers an area of approximately
210 square miles in southeast El Paso County. 

When on-going water and wastewater projects are completed, the LVWD will
be able to provide both water services and wastewater services to the
SEGMUD residents on a more cost-effective basis if the SEGMUD is dissolved
and its territory absorbed by the LVWD.  The board of directors of both
districts have passed a resolution proposing such a consolidation. 

PURPOSE

To create a mechanism to dissolve the SEGMUD and allow the LVWD to annex
its territory. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Definitions.

SECTION 2.  Findings relating to Dissolution - Describes the relative
sizes of the districts involved and finds that the Lower Valley Water
District will be capable of providing water service within the SEGMUD in
the near future.  Also finds that each districts board had adopted
resolutions directing each district's officials to cooperate with each
other for the purposes of dissolving SEGMUD and adding its territory to
the LVWD. 
 
SECTION 3.  Amendment. - Amends Section 2(a), Chapter 780, Acts of the
69th Legislature, Regular Session 1985 which is the LVWD creation statute,
to include the SEGMUD territory. 

SECTION 4.  Boundary Descriptions. -  Reaffirms that LVWD statutory
boundaries form a closure and that any mistakes made in copying field
notes does not affect the LVWD's organization, existence, validity, or
authority to act. 

SECTION 5. Benefit - Finds that the territory of the LVWD and the property
located within the territory is benefitted and that the LVWD serves a
public use and benefit. 

SECTION 6.  Conditions for dissolution -  Lists the five conditions which
must be met before the dissolution and annexation is effective.  These
conditions include consent by the SEGMUD board of directors; an election
within SEGMUD in which residents of the district vote to assume their
proportionate share of the LVWD's outstanding debts to include voted but
unissued bonds; a transition agreement between the two districts on
transfer of assets and liabilities;  and the completion of facilities by
LVWD necessary to provide water service to SEGMUD.  When all conditions
are met, it is provided that the districts may jointly request TNRCC to
enter an order  dissolving SEGMUD and annexing its territory in LVWD. 

SECTION 7.  Dissolution and territory change order - Directs that upon
receipt of joint request as described in Section 6, TNRCC shall enter
order dissolving SEGMUD and adding its territory to LVWD if TNRCC
determines all conditions have been met. 

SECTION 8.  Dissolution effective date -  Directs that the dissolution and
territory change become effective on date the TNRCC order is filed in the
deed records of El Paso County. 

SECTION 9.  Contested case exception. - Directs that the TNRCC order
issued under Section 7 of this ACT is not a contested case for purposes of
Chapter 2001, Texas Government Code. 

SECTION 10.  Procedural Requirements - Finds that all procedural and
notice requirements of the constitution, laws and rules of the legislature
are fulfilled and accomplished. 

SECTION 11.  Rules of Construction. - Directs that a finding that a
provision of the Act is invalid does no affect remaining provision of the
Act. 

SECTION 12.  Effective date.

SECTION 13.  Emergency clause.