By: Galloway S.B. No. 731 A BILL TO BE ENTITLED AN ACT 1-1 relating to the authority to dissolve the Oak Ridge Municipal 1-2 Utility District and the assumption of its assets and obligations 1-3 by a municipality. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 615, Acts of the 60th Legislature, 1-6 Regular Session, 1967, is amended by adding Section 25 to read as 1-7 follows: 1-8 Sec. 25. (a) The district's board of directors may issue an 1-9 order that dissolves the district after: 1-10 (1) the board calls and conducts an election to 1-11 authorize dissolution of the district in the manner provided by 1-12 Chapter 54, Water Code, for an election to approve issuance of 1-13 bonds; 1-14 (2) a majority of the resident electors who vote in an 1-15 election authorized by Subdivision (1) vote for the proposition: 1-16 "The dissolution of the district"; 1-17 (3) the board creates a special reserve fund 1-18 consisting of a sum certain from money contained in the district's 1-19 bond retirement fund; and 1-20 (4) a qualified municipality issues an ordinance by 1-21 which, on a specified date after the dissolution of the district 1-22 that is not later than the 90th day after the date an election is 1-23 held under Subdivision (1), the municipality agrees to: 1-24 (A) assume the district's debts, liabilities, 2-1 and obligations; 2-2 (B) assume ownership of the district's assets 2-3 and facilities; 2-4 (C) perform the district's functions and provide 2-5 all services previously provided by the district; and 2-6 (D) use the money in the district's special 2-7 reserve fund created under Subdivision (3) only to retire debt 2-8 incurred by the district, unless another purpose is approved by at 2-9 least four members of the municipality's governing body. 2-10 (b) A municipality is qualified to assume the district's 2-11 debts, liabilities, and obligations and assume ownership of the 2-12 district's assets and facilities if: 2-13 (1) the municipality has, at the time of assumption, a 2-14 "bbb" or better investment grade credit rating from Standard & 2-15 Poor's Investor Services, Inc., on its outstanding bonds, if any; 2-16 and 2-17 (2) the combined debt principal of the municipality 2-18 and the district does not exceed 12 percent of the total assessed 2-19 valuation of the municipality's property, as determined by the most 2-20 recent valuation certified by the applicable county appraisal 2-21 district. 2-22 (c) The municipality that assumes the district's debts, 2-23 liabilities, and obligations and assumes ownership of the 2-24 district's assets and facilities shall levy an ad valorem tax for 2-25 bond debt service as authorized by the district at the time of the 2-26 district's dissolution on all property formerly in the district, 2-27 including property outside the municipality's boundaries, but the 3-1 tax on the property outside the municipality's boundaries at the 3-2 time of the district's dissolution may not exceed that area's pro 3-3 rata share of the annual debt service obligations on the district's 3-4 outstanding bonds. 3-5 (d) The municipality may not levy an ad valorem tax to pay 3-6 annual debt service obligations on the district's outstanding bonds 3-7 on property that, at the time the district is dissolved, is not 3-8 within the district. 3-9 (e) The municipality may charge for water and sewer services 3-10 to areas that, at the time the district is dissolved, are within 3-11 the district but not within the municipality's boundaries rates not 3-12 to exceed 125 percent of the rates charged to residents of the 3-13 municipality as necessary to provide services to those areas. 3-14 SECTION 2. The importance of this legislation and the 3-15 crowded condition of the calendars in both houses create an 3-16 emergency and an imperative public necessity that the 3-17 constitutional rule requiring bills to be read on three several 3-18 days in each house be suspended, and this rule is hereby suspended, 3-19 and that this Act take effect and be in force from and after its 3-20 passage, and it is so enacted.