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A BILL TO BE ENTITLED
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AN ACT
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relating to procedures for the dissolution of the Hidalgo County |
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Water Improvement District No. 3. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. DEFINITIONS. In this Act: |
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(1) "City" means a municipality described by Section 2 |
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of this Act. |
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(2) "City commission" means the governing body of the |
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city. |
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(3) "District" means the Hidalgo County Water |
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Improvement District No. 3. |
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SECTION 2. DISTRICT AND MUNICIPALITY TO WHICH ACT IS |
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APPLICABLE. This Act applies only to: |
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(1) the district; and |
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(2) a municipality that: |
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(A) has a population greater than 100,000; and |
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(B) contained on April 1, 2021, within its |
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corporate boundaries or extraterritorial jurisdiction more than |
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half of the district's territory. |
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SECTION 3. TRANSFER OF ASSETS AND DISSOLUTION OF DISTRICT. |
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(a) On the date the city commission passes an ordinance accepting |
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the assets, debts, and contractual rights and obligations of the |
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district: |
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(1) all assets, debts, and contractual rights and |
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obligations of the district are property of the city; and |
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(2) the district is dissolved. |
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(b) The ordinance must contain provisions that: |
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(1) eliminate the required payment of any flat tax or |
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assessments paid to the district by landowners in the district; |
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(2) ensure that all water rights are held in trust by |
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the city for the uses previously adjudicated; |
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(3) ensure that all individual water users are |
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entitled to continue to use or have access to the same amount of |
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water they were entitled to before the dissolution of the district; |
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(4) require the city to perform all the functions of |
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the district, including the provision of services; and |
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(5) ensure delivery of water to landowners at or below |
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the lowest comparable delivery charge imposed by any other |
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irrigation district in Hidalgo County. |
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(c) On the date of the dissolution of the district, and |
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notwithstanding Section 51.790, Water Code, ownership of any |
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certificate of adjudication held by the district, including any |
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attachments or amendments to the certificate, transfers to the |
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city. |
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(d) The city shall notify the Texas Commission on |
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Environmental Quality of the dissolution of the district and the |
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transfer of any certificate of adjudication held by the district to |
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the city. |
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(e) On receipt of notice under Subsection (d) of this |
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section, the Texas Commission on Environmental Quality shall note |
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in its records that a certificate of adjudication transferred under |
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Subsection (c) of this section is owned by the city. The Texas |
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Commission on Environmental Quality shall, as a ministerial act, |
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transfer the certificate to the city without further application, |
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notice, or hearing. A person, party, or entity does not have any |
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right of protest, objection, or administrative review of the |
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transfer prescribed by this Act. |
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(f) The transfer of the district's water rights and any |
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certificate of adjudication to the city does not affect or impair |
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the priority, extent, validity, or purpose of the water rights or |
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certificate. |
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SECTION 4. TRANSFER OF ASSETS. On or before the effective |
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date of the dissolution of the district, the district shall: |
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(1) provide the district's management and operational |
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records to the city; |
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(2) transfer to the city the ownership of any water |
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rights and certificates of adjudication; |
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(3) transfer the assets, debts, and contractual rights |
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and obligations of the district to the city; and |
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(4) provide notice and make recordings of the |
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transfers under this section as required by the Water Code and other |
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law. |
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SECTION 5. CITY CONSENT. (a) Without the consent of a |
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majority of the members of a city commission that provides notice |
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under Section 3 of this Act, the district may not: |
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(1) sell, transfer, or encumber any district asset; |
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(2) issue debt or acquire additional obligations; or |
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(3) default on or fail to honor financial, legal, or |
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other obligations of the district. |
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(b) Unless a majority of the members of a city commission |
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that provides notice under Section 3 of this Act agree otherwise, |
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the district shall: |
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(1) maintain assets of the district in an appropriate |
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condition reflective of good stewardship and proper repair; and |
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(2) preserve district records, including information |
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maintained by the district in electronic format. |
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(c) Any action undertaken by the district that does not |
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comply with Subsection (a) of this section is void. |
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(d) This section expires on the date that a city has |
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provided notice under Section 3 of this Act. |
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SECTION 6. EXPIRATION. This Act expires January 1, 2026. |
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SECTION 7. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2021. |