By:  Flores                                                       H.B. No. 3510



A BILL TO BE ENTITLED

AN ACT

relating to the abolition of certain water control and improvement 
districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 43, Local Government Code, 
is amended by adding Section 43.0741 to read as follows:
	Sec. 43.0741.  Abolition of District Municipality Receiving 
80% of District's Diverted Raw Water  (a)  This section applies to:
		(1)  water control and improvement district:                           
			(A)  located partially or wholly a municipality as 
a result of annexation or incorporation;
			(B)  with raw water deliveries to a municipality 
constituting at least eighty percent (80%) of the total water 
diverted by such district in any one twelve month period, if such 
diverted water is designated for municipal use;
			(C)  with no outstanding bonded indebtedness; and                     
			(D)  that diverts raw water from the Rio Grande.                      
		(2)  A municipality:                                                   
			(A)  on whose behalf the raw water is diverted by a 
district described in subsection (a)(1); and
			(B)  the governing body of which adopts, by a vote 
of at least two-third of its entire membership, an ordinance 
abolishing the district, if the governing body finds:
				(i)  that at lease eighty percent (80%) of 
the raw water diverted by the district in any preceding twelve (12) 
calendar month period was for municipal use by the municipality;
				(ii)  that the district has no outstanding 
bonded indebtedness;    
				(iii)  that the services furnished and 
functions performed by the district can be furnished and performed 
by the municipality; and
				(iv)  that the abolition of the district is 
in the best interests of the residents and property of the 
municipality and the district.
	(b)  If before the effective date of the ordinance or if 
within 30 days after the effective date or the date of the 
publication of the ordinance, a petition that is signed and 
verified by a number of qualified voters of the municipality equal 
to at least 10 percent of the total votes cast at the most recent 
election for municipal officers is filed with the secretary of the 
municipality protesting the enactment or enforcement of the 
ordinance, the secretary shall present the petition to the 
governing body at its next scheduled meeting.  Upon verification of 
the signatures by the secretary and presentation of the petition to 
the governing body, the ordinance is suspended and no action shall 
be taken by the municipality under the ordinance.  The governing 
body shall reconsider the ordinance at its next available meeting.  
If the governing body does not repeal the ordinance, the governing 
body shall submit it to a popular vote at the next municipal 
election or at a special election the governing body may order for 
that purpose.  The ordinance does not take effect unless a majority 
of the votes received in the election favor the ordinance.
	(C)  Upon the expiration of thirty (30) days after the 
effective date or thirty (30) days after the publication of the 
ordinance, whichever is later, if no valid petition is received as 
set forth in paragraph (b) above, or upon a majority vote favoring 
the ordinance in the election held for that purpose, the ordinance 
shall immediately take effect, and the district is abolished, the 
property and other assets of the district vest in the municipality, 
and the municipality assumes and becomes responsible for operation 
of the facilities for the benefit of the district's existing 
customers.  The municipality shall perform the services and other 
functions that were performed by the district.
	(D)  A district that is abolished hereunder shall provide its 
management and operational records to the municipality in order to 
ensure the orderly transfer of management and operational 
responsibility to the municipality.
	SECTION 3.  This Act takes effect September 1, 2003.