Bill Text: TX SB1848 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the dissolution by election of certain urban area water control and improvement districts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-20 - Referred to Local Government [SB1848 Detail]
Download: Texas-2023-SB1848-Introduced.html
2023S0157-1 02/15/23 | ||
By: Hinojosa | S.B. No. 1848 |
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relating to the dissolution by election of certain urban area water | ||
control and improvement districts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 51, Water Code, is amended by adding | ||
Subchapter S to read as follows: | ||
SUBCHAPTER S. DISSOLUTION OF CERTAIN URBAN AREA DISTRICTS | ||
Sec. 51.901. DEFINITION. In this subchapter, "primary | ||
petitioner" means a person who submits a petition for the | ||
dissolution of a district. | ||
Sec. 51.902. DISSOLUTION BY ELECTION. (a) A board shall | ||
order an election on the question of dissolving the district if: | ||
(1) the board receives a petition for the dissolution | ||
of the district in accordance with Section 51.830; | ||
(2) the board receives an ordinance adopted by the | ||
governing body of the municipality within the district's boundaries | ||
supporting the petition and stating that the municipality is both | ||
capable of performing and willing to perform the services and | ||
functions of the district; and | ||
(3) the district meets the following criteria of an | ||
urban area district: | ||
(A) the district is located entirely in a county | ||
with a population of more than 400,000; | ||
(B) the district has 70 percent or more of its | ||
territory within the corporate limits or extraterritorial | ||
jurisdiction of a municipality, as shown by the most recent tax | ||
rolls of the central appraisal district of the county; | ||
(C) the district performs services and functions | ||
that a municipality within the district's boundaries is both | ||
capable of performing and willing to perform; | ||
(D) the district was created or organized before | ||
1971 under general law enacted in 1904, 1913, 1917, 1918, or 1925 | ||
for the principal purpose of supplying or the delivery of raw, | ||
untreated, or nonpotable water for irrigation or farming purposes; | ||
and | ||
(E) the district either: | ||
(i) generates more than 70 percent of the | ||
district's operating revenue from a municipality for supplying or | ||
the delivery of raw water used for municipal purposes, as shown by | ||
the district's most recent financial audit report; or | ||
(ii) generates less than 15 percent of the | ||
district's operating revenue from raw, untreated, or nonpotable | ||
water sales and a flat rate assessment collected from nonmunicipal | ||
customers, as shown by the district's most recent annual financial | ||
audit report. | ||
(b) After the board receives a petition that meets the | ||
requirements of Section 51.903, the district may not: | ||
(1) sell, transfer, or encumber a district asset; | ||
(2) issue debt or acquire an additional obligation; | ||
(3) default on or fail to honor a financial, legal, or | ||
other obligation of the district; | ||
(4) fail to keep an asset of the district in a | ||
condition of good repair; or | ||
(5) fail to preserve district records, including | ||
information maintained by the district in an electronic format. | ||
(c) A district action that is in violation of Subsection | ||
(b)(1), (2), or (3) is void. | ||
Sec. 51.903. REQUIREMENTS FOR PETITION TO DISSOLVE | ||
DISTRICT. A petition for an election to dissolve a district under | ||
Section 51.902(a)(1) must: | ||
(1) be signed by: | ||
(A) the owners of a majority of the assessed | ||
value of the real property in the district, as shown by the most | ||
recent certified county property tax rolls; or | ||
(B) 20 percent of the qualified voters, as | ||
defined by Section 11.002, Election Code, residing within the | ||
district, without consideration of any exclusion of land from | ||
inside the district; | ||
(2) include with each signature: | ||
(A) the date on which the person signed the | ||
petition; and | ||
(B) the person's place of residence; | ||
(3) be filed with the county clerk of the county in | ||
which the district is located; and | ||
(4) be filed with the municipality within the | ||
district's boundaries or, if the district is located in more than | ||
one municipality, the municipality in which most of the district is | ||
located. | ||
Sec. 51.904. EXAMINATION OF PETITION TO DISSOLVE DISTRICT. | ||
(a) The county clerk, in consultation with the district attorney | ||
and the county tax assessor-collector, shall examine a petition | ||
submitted under Section 51.902(a)(1). | ||
(b) Not more than 30 days after the petition is submitted, | ||
the county clerk shall determine whether the petition conforms to | ||
the petition requirements under Section 51.903. | ||
(c) If the petition meets the petition requirements under | ||
Section 51.903, the county clerk shall certify the petition and | ||
send it electronically to the district secretary and the primary | ||
petitioner. | ||
(d) If the petition does not meet the petition requirements | ||
under Section 51.903, the county clerk shall notify the primary | ||
petitioner of the reasons for the rejection of the petition. The | ||
primary petitioner may amend the petition to correct the | ||
deficiencies for which the petition was rejected and resubmit the | ||
petition to the board and the county clerk. | ||
Sec. 51.905. PROCEDURE FOR HOLDING ELECTION. (a) An | ||
election to determine whether a district will be dissolved must be | ||
held in accordance with this subchapter. The election must be held | ||
within the shared boundaries of the territory of the district and | ||
the municipality described in Section 51.902(a)(2) to determine if | ||
the eligible voters within those boundaries support the district's | ||
dissolution and the transfer of the district's assets, debts, | ||
contractual rights, and other obligations to the municipality. The | ||
boundaries shall not take into consideration any exclusion of land | ||
from inside the district when determining the district's territory. | ||
(b) To be eligible to vote in an election to dissolve the | ||
district, a person must be a qualified voter, as defined by Section | ||
11.002, Election Code, residing within the shared boundaries of | ||
both the district and the municipality described in Section | ||
51.902(a)(2). | ||
(c) The ballots for the election shall be printed to provide | ||
for voting for or against the proposition to dissolve the district | ||
and to transfer all district assets, debts, contractual rights, and | ||
other obligations to the municipality. | ||
(d) Notwithstanding Section 41.001(d), Election Code, on | ||
request of the primary petitioner, the board shall contract with | ||
the county elections administrator as provided by Subchapter D, | ||
Chapter 31, Election Code, to perform all duties and functions of | ||
the district in relation to an election for the dissolution of the | ||
district. | ||
(e) If the primary petitioner requests that the board | ||
contract with the county elections administrator, the primary | ||
petitioner must deposit with the board an amount estimated to cover | ||
expenses in accordance with a cost schedule agreed on by the board | ||
and county elections administrator. The primary petitioner must | ||
make the deposit not later than the 10th day after the date the | ||
primary petitioner receives a copy of the executed contract from | ||
the board. | ||
Sec. 51.906. HEARING; FINDINGS OF FACT. (a) Not later than | ||
the 10th day after the date the board receives a certified petition, | ||
the board shall publish notice of the hearing in accordance with | ||
Section 51.782. The notice must include notice to creditors of the | ||
district to present claims owed by the district to the board before | ||
the date set for the dissolution hearing. | ||
(b) Not later than the 10th day after the date the board | ||
receives a certified petition, the primary petitioner shall deposit | ||
with the board an amount estimated to cover the actual cost of | ||
giving notice and holding the hearing. | ||
(c) Not later than the 40th day after the date the board | ||
receives a certified petition, the board shall conduct a hearing | ||
for the purpose of soliciting oral or written public comment in | ||
accordance with Section 51.783. | ||
(d) The board shall make findings of fact regarding the | ||
dissolution of the district, including: | ||
(1) a description of each parcel of real property | ||
owned by the district and interest in real property owned by the | ||
district and, if the property was acquired for delinquent taxes or | ||
assessments, the amount of such taxes and assessments on each | ||
parcel of property; | ||
(2) the amount of each outstanding bond or other | ||
indebtedness of the district and the contractual obligation of the | ||
district, with the name of the holder and owner of each and a | ||
general description of the bond, other indebtedness, or contractual | ||
obligation; | ||
(3) the amount of uncollected taxes, assessments, and | ||
charges levied by the district and the amount levied on each lot or | ||
tract of land; | ||
(4) a description of the personal property and all | ||
other assets of the district; and | ||
(5) the estimated cost of dissolution. | ||
(e) Not later than 30 days after the dissolution hearing, | ||
the board shall file its findings of fact with the county clerk. | ||
Not later than 48 hours after the filing, the county clerk shall | ||
provide a copy to the governing body of the municipality described | ||
by Section 51.903(4). The board shall make the findings of fact | ||
available for inspection by the public. | ||
Sec. 51.907. MUNICIPAL ORDINANCE REQUIRED. (a) The board | ||
may not adopt an election order to dissolve the district unless, not | ||
later than 60 days after receiving a copy of the filing described by | ||
Section 51.906(e), the governing body of the municipality adopts an | ||
ordinance by a two-thirds vote stating that the municipality will | ||
assume the assets, debts, contractual rights, and any other | ||
obligation of the district upon dissolution of the district. The | ||
municipality must submit a copy of the adopted ordinance to the | ||
district. | ||
(b) The governing body of a municipality that adopts an | ||
ordinance under Subsection (a) shall prepare a plan of succession | ||
as provided by Sections 43.075(c)-(l), Local Government Code, for | ||
the uninterrupted provision of services. | ||
(c) An ordinance adopted under Subsection (a) must contain | ||
provisions that: | ||
(1) eliminate the required payment of any flat tax or | ||
assessments paid to the district by landowners in the district; | ||
(2) ensure that all water rights are held in trust by | ||
the municipality for the uses previously adjudicated; | ||
(3) ensure that all individual water users are | ||
entitled to continue to use or have access to the same amount of | ||
water they were entitled to before the dissolution of the district; | ||
(4) require the municipality to perform all the | ||
functions of the district, including the provision of services; and | ||
(5) ensure delivery of water to landowners at or below | ||
the lowest comparable delivery charge imposed by any irrigation | ||
district in the county in which the district is located. | ||
Sec. 51.908. MUNICIPAL APPROVAL; ELECTION ORDER. (a) Not | ||
later than 10 days after the municipality sends a copy of the | ||
ordinance adopted under Section 51.907(a) to the board, the board | ||
shall order an election on the question of dissolving the district | ||
and, if applicable, of transferring the district's assets and | ||
obligations to the municipality in accordance with the ordinance. | ||
(b) An order calling an election to be held under this | ||
section must: | ||
(1) state the nature of the election and include the | ||
proposition that is to appear on the ballot; | ||
(2) provide the date of the election; | ||
(3) provide the hours during which the polls will be | ||
open; | ||
(4) provide the location of the polling places; | ||
(5) provide a statement of the functions performed by | ||
the district; | ||
(6) provide a summary of the plan for dissolution; | ||
(7) state the district's current water rate and the | ||
date on which the district adopted the rate; and | ||
(8) state the most recent district tax rate. | ||
Sec. 51.909. NOTICE OF DISSOLUTION ELECTION. (a) The board | ||
shall give notice of an election ordered under Section 51.908 by: | ||
(1) publishing a substantial copy of the election | ||
order in a newspaper with general circulation in the district once a | ||
week for two consecutive weeks; and | ||
(2) if the district maintains an Internet website, | ||
posting a substantial copy of the election order on the district's | ||
Internet website. | ||
(b) The first publication under Subsection (a)(1) must | ||
appear not later than the 30th day before the date set for the | ||
election. | ||
Sec. 51.910. ELECTION DATE. An election under this | ||
subchapter shall be held on the next practicable uniform election | ||
date prescribed by Section 41.001, Election Code, but in no event | ||
later than the 365th day after the date on which the board adopted | ||
the election order. | ||
Sec. 51.911. ELECTION RESULTS. (a) The returns of the | ||
election shall be canvassed and the result declared by the county | ||
elections administrator contracted to administer the election held | ||
under Section 51.905. | ||
(b) If a majority of the votes in an election held under | ||
Section 51.905 favor dissolution, the board shall order that the | ||
district be dissolved and shall comply with Section 51.912. The | ||
board shall enter an order in its minutes declaring the result of | ||
the election. | ||
(c) If a majority of the votes in an election held under this | ||
subchapter do not favor dissolution, the board shall continue to | ||
administer the district, and another election on the question of | ||
dissolution may not be held before the first anniversary of the date | ||
of the most recent election held on the question of dissolving the | ||
district. | ||
(d) The order under Subsection (b) shall be filed in the | ||
office of the county clerk of the county in which the district is | ||
situated and recorded in the deed records. | ||
Sec. 51.912. TRANSFER OF ASSETS, OBLIGATIONS, AND PROVISION | ||
OF SERVICES. (a) Following the issuance of an order under Section | ||
51.911, the board shall: | ||
(1) not later than the 10th day after the date the | ||
order was issued, make arrangements for the uninterrupted provision | ||
of services; | ||
(2) not later than the 30th day after the date the | ||
order was issued, notify the commission of the dissolution | ||
election; | ||
(3) not later than the 180th day after the date the | ||
order was issued: | ||
(A) transfer the ownership of any water rights | ||
and certificates of adjudication to the municipality; and | ||
(B) transfer the assets, debts, contractual | ||
rights, and other obligations of the district to the municipality; | ||
(4) provide the district's management and operational | ||
records to the municipality; and | ||
(5) provide notice and make recordings of transfers | ||
under this subsection as required by law. | ||
(b) The municipality shall notify the commission regarding | ||
any transfer of a certificate of adjudication held by the district | ||
to the municipality. | ||
(c) Not later than the 45th day after the date the | ||
commission receives the notification under Subsection (a)(2) and | ||
determines that the requirements of this subchapter have been | ||
fulfilled, the commission shall enter an order dissolving the | ||
district. | ||
(d) The transfer of a district's water rights and any | ||
certificate of adjudication to a municipality does not affect the | ||
priority, extent, validity, or purpose of a water right or | ||
certificate. | ||
Sec. 51.913. RECEIVER. (a) If the district fails to comply | ||
with Section 51.912, the executive director shall request that the | ||
attorney general bring suit for the appointment of a receiver. | ||
(b) If the attorney general brings suit for the appointment | ||
of a receiver under Subsection (a), a district court shall appoint a | ||
receiver if the court finds the appointment is necessary for the | ||
transfer of the assets and obligations of the district. | ||
(c) The receiver shall execute a bond in the amount set by | ||
the court to ensure the proper performance of the receiver's | ||
duties. | ||
(d) After execution of the bond, the receiver shall take | ||
possession of the assets specified by the court. | ||
(e) Until discharged by the court, the receiver shall | ||
perform the duties as directed by the court to preserve the assets | ||
and ensure that district assets and obligations are transferred. | ||
SECTION 2. This Act takes effect September 1, 2023. |