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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 council" means the governing body of a city. |
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(3) "District" means the Hidalgo County Water |
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Improvement District No. 3. |
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(4) "District board" means the district's board of |
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directors. |
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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) contains within its corporate boundaries or |
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extraterritorial jurisdiction more than half of the district's |
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territory. |
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SECTION 3. FINDINGS PREREQUISITE TO MOTION TO DISSOLVE. At |
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a regularly scheduled meeting of the city council, a city may |
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propose an ordinance to dissolve the district if the city council |
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finds that as of the date of the meeting: |
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(1) at least 80 percent of the raw water diverted by |
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the district in the preceding 12 months was diverted for use by the |
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city; |
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(2) the city is capable of assuming all rights and |
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obligations of the district; |
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(3) the city is capable of assuming responsibility for |
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operating the district's facilities to benefit the district's |
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existing customers and performing the services and functions |
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performed by the district; |
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(4) dissolution of the district will result in an |
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overall cost savings to city residents; and |
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(5) dissolution of the district will result in a more |
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stable water supply for residents of the city and surrounding |
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communities. |
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SECTION 4. HEARING REQUIRED. (a) Before a city may propose |
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an ordinance to dissolve the district, the city must conduct a |
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public hearing on the issue. |
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(b) Notice of the public hearing must be: |
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(1) posted in accordance with the laws that apply to |
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regular meetings of the city council; and |
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(2) provided in writing to each district board member. |
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SECTION 5. DISSOLUTION BY ORDINANCE. (a) After a city |
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council has made the findings required by Section 3 and has |
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conducted a public hearing as required by Section 4, the city |
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council may dissolve the district by ordinance. |
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(b) The ordinance takes effect only if two-thirds of the |
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city council votes in favor of the ordinance. |
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SECTION 6. CITY CONSENT; DISTRICT DUTIES. (a) On or before |
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the effective date of the dissolution ordinance, the district board |
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shall provide the district's management and operational records to |
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the city that passed the ordinance to ensure the orderly transfer of |
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management and operational responsibility to the city. |
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(b) Without the consent of a majority of the members of a |
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city council that publishes notice under Section 4(b), the district |
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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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(c) Unless a majority of the members of a city council that |
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publishes notice under Section 4(b) agree otherwise, the district |
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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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(d) Any action undertaken by the district that does not |
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comply with Subsection (b) of this section is void. |
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(e) This section expires on the date a city that has |
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published notice under Section 4(b) repeals the city's ordinance to |
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dissolve the district. |
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SECTION 7. PETITION BY VOTERS; SUSPENSION OR REPEAL OF |
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ORDINANCE; ELECTION. (a) The voters of a city that enacts a |
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dissolution ordinance under this Act may object to the ordinance by |
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filing a petition with the secretary of the city. The petition must |
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be signed by at least five percent of the city's registered voters. |
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The petition must be filed not later than the 30th day after the |
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date the city enacts the ordinance. |
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(b) The city secretary shall verify the signatures on the |
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petition and shall present the verified petition to the city |
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council at the council's next scheduled meeting. |
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(c) On receipt of the petition, the city council shall |
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suspend the effectiveness of the ordinance, and the city may not |
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take action under the ordinance unless the ordinance is approved by |
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the voters under Subsection (d) of this section. |
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(d) The city council shall reconsider the suspended |
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ordinance at the next scheduled meeting of the council. If the city |
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council does not repeal the ordinance, the city council shall |
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submit a proposition for or against enactment of the ordinance to |
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the voters at the next municipal election. The dissolution |
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ordinance takes effect if a majority of the voters voting in that |
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election vote in favor of dissolution. |
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SECTION 8. EFFECTIVE DATE OF DISSOLUTION. A dissolution |
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ordinance under this Act takes effect on the date: |
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(1) the period for filing a voter petition expires |
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under Section 7(a), if a voter petition is not filed under that |
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section; or |
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(2) the voters approve the dissolution ordinance under |
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Section 7(d). |
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SECTION 9. TRANSFER OF ASSETS. (a) On or before the |
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effective date of a dissolution ordinance under Section 8, the |
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district shall: |
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(1) transfer to the city the ownership of any water |
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rights and certificates of adjudication; |
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(2) transfer the assets, debts, and contractual rights |
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and obligations of the district to the city; and |
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(3) 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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(b) On receipt of notice of the transfer of a district |
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certificate of adjudication, the Texas Commission on Environmental |
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Quality shall note in its records that the certificate of |
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adjudication is owned and held by the city. The Texas Commission on |
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Environmental Quality shall transfer the district's certificate to |
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the city as a ministerial act without further application, notice, |
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or hearing. A person or other legal entity does not have a right to |
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object to or to request an administrative review of a transfer made |
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in accordance with this Act. |
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(c) 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 10. EXPIRATION. This Act expires January 1, 2016. |
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SECTION 11. 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, 2011. |