By: Truan S.B. No. 1656
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the authority to dissolve the Sebastian Municipal
1-2 Utility District or transfer certain of its assets and obligations.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. DEFINITIONS. In this Act:
1-5 (1) "Board" means the board of directors of the
1-6 Sebastian Municipal Utility District.
1-7 (2) "District" means the Sebastian Municipal Utility
1-8 District.
1-9 (3) "Corporation" means a qualified water supply
1-10 corporation as described by Section 7 of this Act.
1-11 SECTION 2. AGREEMENT AND ORDER RELATING TO DISSOLUTION OF
1-12 DISTRICT. (a) A corporation may enter into an agreement with the
1-13 district to:
1-14 (1) assume the district's debts, liabilities, and
1-15 obligations;
1-16 (2) assume ownership of the district's assets and
1-17 facilities;
1-18 (3) accept assignment of the district's certificate of
1-19 public convenience and necessity obtained under Section 13.246,
1-20 Water Code, and any right obtained under the certificate after the
1-21 Texas Natural Resource Conservation Commission determines that the
1-22 corporation is capable of rendering adequate and continuous service
1-23 as required by Section 13.251, Water Code; and
2-1 (4) perform the district's functions and provide all
2-2 services previously provided by the district.
2-3 (b) If a corporation enters into an agreement described by
2-4 Subsection (a) of this section with the district, the board shall
2-5 issue an order that dissolves the district.
2-6 (c) The dissolution of the district becomes effective on the
2-7 30th day after the date the board issues the order dissolving the
2-8 district.
2-9 (d) On the effective date of the dissolution:
2-10 (1) all property and other assets of the district are
2-11 transferred to the corporation;
2-12 (2) all debts, liabilities, and other obligations of
2-13 the district are assumed by the corporation; and
2-14 (3) the district's certificate of public convenience
2-15 and necessity and any right obtained under the certificate is
2-16 assigned to the corporation in the manner prescribed by Section
2-17 13.251, Water Code.
2-18 SECTION 3. AGREEMENT AND ORDER RELATING TO WATER AND
2-19 WASTEWATER SERVICE. (a) A corporation may enter into an agreement
2-20 with the district to:
2-21 (1) assume the district's debts, liabilities, and
2-22 obligations relating to water and wastewater service;
2-23 (2) assume ownership of the district's assets and
2-24 facilities relating to water and wastewater service;
2-25 (3) apply to the Texas Natural Resource Conservation
3-1 Commission to obtain a certificate of public convenience and
3-2 necessity, or an amendment of a certificate, under Section 13.244,
3-3 Water Code, to render water and wastewater service to the area
3-4 served by the district; and
3-5 (4) perform the district's functions relating to water
3-6 and wastewater service and provide all services relating to those
3-7 services previously provided by the district.
3-8 (b) If a corporation enters into an agreement described by
3-9 Subsection (a) of this section with the district and the Texas
3-10 Natural Resource Conservation Commission grants to the corporation
3-11 a certificate of public convenience and necessity as described by
3-12 Subdivision (3) of Subsection (a) of this section, the board shall
3-13 issue an order transferring the district's debts, liabilities,
3-14 obligations, assets, and facilities relating to water and
3-15 wastewater service to the corporation.
3-16 (c) On the 30th day after the date the board issues the
3-17 order transferring the district's debts, liabilities, obligations,
3-18 assets, and facilities:
3-19 (1) all property and other assets of the district
3-20 relating to water and wastewater service are transferred to the
3-21 corporation; and
3-22 (2) all debts, liabilities, and other obligations of
3-23 the district relating to water and wastewater service are assumed
3-24 by the corporation.
3-25 SECTION 4. PETITION TO DISSOLVE DISTRICT. (a) A petition
4-1 may be filed with the board requesting an election in the district
4-2 to decide if the board must enter into an agreement as described by
4-3 Subsection (a) of Section 2 of this Act.
4-4 (b) A petition filed under this section shall be printed in
4-5 English and Spanish and read as follows:
4-6 "We, the undersigned, being registered voters in the
4-7 Sebastian Municipal Utility District, request the board of
4-8 directors of the Sebastian Municipal Utility District to hold an
4-9 election to decide if the board must enter into an agreement with a
4-10 qualified water supply corporation in which the district's debts,
4-11 liabilities, obligations, assets, and facilities are transferred to
4-12 the qualified water supply corporation and the district is
4-13 dissolved."
4-14 SECTION 5. ELECTION. (a) The board shall call an election
4-15 as requested by a petition filed under Section 4 of this Act if the
4-16 board determines that the petition is signed by at least 10 percent
4-17 of the registered voters in the district.
4-18 (b) The board shall make the determination under Subsection
4-19 (a) of this section not later than the seventh day after the date
4-20 on which the board receives the petition.
4-21 (c) The board shall hold an election required by Subsection
4-22 (a) of this section on the first authorized uniform election date
4-23 after the date the board determines an election is required that
4-24 allows sufficient time for the board to comply with all applicable
4-25 provisions of the Election Code.
5-1 (d) The board shall publish notice of the election in a
5-2 newspaper of general circulation in the district once each week for
5-3 three weeks before the date the election is scheduled to be held.
5-4 The notice must include:
5-5 (1) the time and place of the election; and
5-6 (2) a description of the issue to be decided by the
5-7 election.
5-8 (e) The ballot for an election ordered in response to a
5-9 petition filed under Section 4 of this Act shall be printed in
5-10 English and Spanish and read as follows:
5-11 "By voting YES on this ballot, you are voting in favor of
5-12 requiring the Sebastian Municipal Utility District to enter into an
5-13 agreement with a qualified water supply corporation in which the
5-14 district's debts, liabilities, obligations, assets, and facilities
5-15 are transferred to the corporation and the district is dissolved.
5-16 By voting NO on this ballot, you are voting against requiring the
5-17 Sebastian Municipal Utility District to enter into such an
5-18 agreement."
5-19 (f) If a majority of the electors vote in favor of the
5-20 ballot proposition stated in Subsection (e) of this section, the
5-21 board shall enter into an agreement as described by Subsection (a)
5-22 of Section 2 of this Act if:
5-23 (1) a corporation agrees to the terms specified by
5-24 Subsection (a) of Section 2 of this Act; and
5-25 (2) the Texas Natural Resource Conservation Commission
6-1 determines that the corporation is capable of rendering adequate
6-2 and continuous service as required by Section 13.251, Water Code.
6-3 (g) If a majority of the electors vote against the ballot
6-4 proposition stated in Subsection (e) of this section, the board may
6-5 not enter into an agreement as described by Subsection (a) of
6-6 Section 2 of this Act before the district conducts the first board
6-7 election held after the date on which the electors voted against
6-8 the ballot proposition.
6-9 SECTION 6. FILING REQUIREMENT. The board shall file a copy
6-10 of the agreement described by Subsection (a) of Section 2 or
6-11 Subsection (a) of Section 3 of this Act, as appropriate, and a copy
6-12 of the board's order dissolving the district issued under
6-13 Subsection (b) of Section 2 of this Act, or a copy of the board's
6-14 order transferring the district's obligations and assets issued
6-15 under Subsection (b) of Section 3 of this Act, as appropriate, not
6-16 later than the 15th day after the date the board issues the
6-17 dissolution or transfer order:
6-18 (1) with the Texas Natural Resource Conservation
6-19 Commission; and
6-20 (2) in the deed records of Willacy and Cameron
6-21 counties.
6-22 SECTION 7. QUALIFIED WATER SUPPLY CORPORATION. A
6-23 corporation is qualified to assume the district's debts,
6-24 liabilities, and obligations and assume ownership of the district's
6-25 assets and facilities if the corporation:
7-1 (1) is member-owned and member-controlled and formed
7-2 under Chapter 76, Acts of the 43rd Legislature, 1st Called Session,
7-3 1933 (Article 1434a, Vernon's Texas Civil Statutes); and
7-4 (2) possesses a valid certificate of public
7-5 convenience and necessity obtained under Section 13.246, Water
7-6 Code.
7-7 SECTION 8. EMERGENCY. The importance of this legislation
7-8 and the crowded condition of the calendars in both houses create an
7-9 emergency and an imperative public necessity that the
7-10 constitutional rule requiring bills to be read on three several
7-11 days in each house be suspended, and this rule is hereby suspended,
7-12 and that this Act take effect and be in force from and after its
7-13 passage, and it is so enacted.