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.