75(R) HB 3554 House committee report

JBM C.S.H.B. 3554 75(R)BILL ANALYSIS


NATURAL RESOURCES
C.S.H.B. 3554
By: Pickett
4-16-97
Committee Report (Substituted)



BACKGROUND 

The Town of Clint in El Paso County is a small town approximately two
square miles in size with a population of a little over 1000.  It is
entirely surrounded by the Lower Valley Water District (LVWD).  Currently,
the town has no water or wastewater system.  The existing water
distribution system, which serves only a portion of the town, is owned by
the Clint Independent School District (CISD).  The CISD buys water from
the City of El Paso's Public Service Board (PSB) under a wholesale water
supply contract and brings it to the town through an 8-inch transmission
line it owns.  The pipe runs from the El Paso city limits, through the
District, to the town.  Under the 1989 wholesale water supply contract
between the City of El Paso and the District, the District agreed to
assume the task of providing water to Clint as soon as possible. 

After on-going water and wastewater projects are completed, the District
will be able to provide water services using the existing distribution
system.  Through the use of this system, the District will also be able to
extend water services to areas of the town not presently served.  The CISD
has passed a resolution agreeing to sell its transmission line and
distribution facilities to the District, and it supports this legislation.
The Town Council of Clint and the Board of Directors of the District have
also passed resolutions supporting this legislation.  Finally, the El Paso
PSB also supports the legislation.   

PURPOSE

To create a mechanism to annex the territory of the Town of Clint by the
LVWD. 

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.  States that the legislature finds that the Town of Clint is
located in El Paso County and does not own or operate a municipal water or
wastewater system.  Also, it finds that the school district operates the
only water distribution system within the boundaries of the town, and the
water distribution system operated by the school district within the town
does not serve all residents of the town. Further, the legislature finds
that the school district wishes to sell its system to the District, and
the District, which surrounds the town, will be capable of providing water
and wastewater services within the Town of Clint.  Finally, it finds that
the Town of Clint Council has adopted a resolution expressing a desire for
the town to be annexed by the District. 

SECTION 3.  Amends Section 2(a), Chapter 780, Acts of the 69th
Legislature, Regular Session 1985, which is the District's creation
statute, to include the territory of the Town of Clint.  This section also
sets the boundaries of the district. 
            
SECTION 4.  Reaffirms that District's statutory boundaries form a closure
and that any mistake made in copying field notes does not affect the
District's organization, operation, existence,  validity, or the ability
to issue and pay bonds (including refunding bonds) and assess, levy and
collect taxes. 

SECTION 5.  Finds that the territory of the District, as amended by this
Act, and the property located within that territory, is benefited by the
works and projects of the district, and the District serves a public use
and benefit. 

SECTION 6. Lists the six conditions which must be met before the board
shall request the commission to enter an annexation order.  These
conditions include (1) consent by the governing body of the town, by
resolution or ordinance, to add the territory of the town to the district;
(2) and (3) an election, under Section 49.106 of the Water Code, within
the town resulting in an affirmative majority vote of the qualified voters
participating in the election to assume the outstanding bonds, including
voted but unissued bonds, notes, taxes, or other obligations;  (4) the
completion of facilities by the District necessary to provide the capacity
and pressures for water services to the town;  (5) the purchase of the
school district's transmission line and any interest in the water service
and distribution facilities by the District; and (6) the termination of
any contracts between the El Paso PSB and the school district, effective
the date on which the commission issues an order under Section 7 of this
Act.  It further provides that the District may make the purchase of the
school  district's facilities contingent on an affirmative vote of town's
residents to assume the District's outstanding bonds and obligations, and
the District may enter into a wholesale water supply contract with the El
Paso PSB in order to provide water service within the territory of the
town added to the district. 

SECTION 7.  Directs that upon receipt of request as described in Section
6, the Texas Natural Resource Conservation Commission (TNRCC) shall enter
order adding the territory of the town to the District if the TNRCC
determines all conditions in Section 6 have been satisfied, and a
certified copy of the order will be filed by the TNRCC with the Secretary
of State and in the deed records of El Paso County. 

SECTION 8.  Directs that the territory change of the District described by
Section 7 of this Act becomes effective on the date the TNRCC order, as
required by Section 7(b) of this Act is filed as required. 

SECTION 9.   Directs that the TNRCC order issued under Section 7(a) of
this Act is not a contested case for purposes of Chapter 2001, Texas
Government Code. 

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

SECTION 11.  Provides that the District is not subject to Section 42.042,
Local Government Code and Section 54.016, Water Code, in adding the
territory of the town to the district in accordance with this Act.  

SECTION 12.  Directs that a finding that a provision of the Act is invalid
does not affect remaining provisions of the Act.  Further, this Act shall
be given a liberal and broad construction to carry out the expressed
provisions of this Act. 

SECTION 13.  Effective date of Section 3.

SECTION 14.  Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 6.  In Section 6 of the original, Subsection (a)(4) stated that a
condition for the territory change was that the district complete
construction of facilities necessary to provide water service within the
town, and Subsection (a)(5) of the original bill also required as a
condition that the district possess adequate water capacity and pressure
to provide water capacity and pressure to provide water service within the
town.  In the substitute, these two Subsections  are combined into
Subsection (a)(4) of the substitute which states that one condition for
changing the territory is that the district complete the construction of
facilities necessary to provide an adequate water capacity and pressure to
serve the town. 
  
SECTION 6.  In the original, Subsection (b)(2) stated that before the
district makes the purchase described by Subsection (a)(6) of this section
that the water distribution system operated by the school district meet
appropriate commission standards.  In the committee substitute, this
Subsection has been deleted, and the conforming changes have been made.