BILL ANALYSIS
Senate Research Center H.B. 3353
80R10920 HLT-F By: Haggerty (Shapleigh)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
S.B. 1811, 79th Legislature, Regular Session, 2005, amended the statutory provisions governing non-profit water supply corporations in order to assist El Paso Water Utilities in taking over a non-profit water supply corporation which was no longer operational. The change to Chapter 67 (Nonprofit Water Supply or Sewer Service Corporations), Water Code was bracketed for El Paso Water Utilities so that it could acquire the assets and customer service accounts of the Ponderosa and Western Village Water Supply Corporation.
At the time the legislation was passed, the Texas Rural Water Association, a trade association whose membership includes the majority of non-profit water supply corporations in Texas, expressed concerns over the Act because of the potential statewide policy implications. However, in the spirit of compromise, the Texas Rural Water Association withdrew its opposition with the understanding that this amendment to the Water Code would be repealed by the 80th Legislature.
H.B. 3353 repeals these changes to Chapter 67 of the Water Code. Although El Paso Water Utilities has not completed the acquisition of the Ponderosa and Western Village Water Supply Corporation, this bill provides continued legal authority for that authorization to continue after the repeal.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Repealer: Subchapter B (regarding the dissolution of a nonprofit water supply or sewer service corporation), Chapter 67, Water Code.
SECTION 2. Provides that the repeal by this Act of Subchapter B, Chapter 67, Water Code, does not affect an order of dissolution issued under that subchapter before the effective date of this Act or to a transfer of assets and liabilities of a nonprofit water supply or sewer service corporation initiated under that subchapter before the effective date of this Act, and provides that the former law is continued in effect until the transfer of assets and liabilities is completed or terminated by the municipality.
SECTION 3. Effective date: September 1, 2007.