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A BILL TO BE ENTITLED
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AN ACT
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relating to the dissolution of water districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter K, Chapter 49, Water |
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Code, is amended to read as follows: |
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SUBCHAPTER K. DISSOLUTION BY COMMISSION |
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SECTION 2. Section 49.323, Water Code, is amended to read as |
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follows: |
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Sec. 49.323. INVESTIGATION. (a) The executive director |
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shall investigate the facts and circumstances of the district to be |
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dissolved and the result of the investigation shall be included in a |
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written report. |
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(b) On request of a board, the executive director shall |
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investigate whether the district may be dissolved under this |
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subchapter and issue to the commission the written conclusion of |
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the investigation. |
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SECTION 3. Chapter 49, Water Code, is amended by adding |
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Subchapter P to read as follows: |
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SUBCHAPTER P. DISSOLUTION BY ELECTION |
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Sec. 49.551. DISSOLUTION ELECTION CALLED BY BOARD. The |
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board may order an election on the question of dissolving the |
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district and transferring the district's assets and obligations to |
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another political subdivision of the state, if the board concludes |
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after a public hearing held on the issue that it is in the best |
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interest of the district's residents and of the persons served by |
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the district for the district to dissolve. |
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Sec. 49.552. DISSOLUTION ELECTION CALLED BY COMMISSIONERS |
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COURT. (a) The commissioners court of a county in which the |
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district is located may order an election to be held in the |
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district's territory on the question of dissolving the district and |
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transferring the district's assets and obligations to another |
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political subdivision of the state, if the commissioners court |
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concludes after a public hearing held on the issue that it is in the |
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best interest of the district's residents and of the persons served |
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by the district for the district to dissolve. |
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(b) If the district is located in more than one county, the |
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election order must be in the form of a joint order issued by the |
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commissioners court of each county in which the district is located |
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after a hearing as described by Subsection (a). |
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Sec. 49.553. DISSOLUTION ELECTION CALLED BY PETITION. The |
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board shall order an election on the question of dissolving the |
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district and transferring the district's assets and obligations to |
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another political subdivision of the state if the board receives a |
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petition requesting an election on that question. The petition must |
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be signed by at least 15 percent of the district's registered |
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voters. |
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Sec. 49.554. ELECTION ORDER. An order calling an election |
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held under this subchapter must state: |
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(1) the nature of the election, including the |
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proposition that is to appear on the ballot; |
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(2) the date of the election; |
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(3) the hours during which the polls will be open; and |
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(4) the location of the polling places. |
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Sec. 49.555. NOTICE OF DISSOLUTION ELECTION. (a) The board |
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shall give notice of an election ordered under this subchapter by |
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publishing a substantial copy of the election order in a newspaper |
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with general circulation in the district once a week for two |
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consecutive weeks. |
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(b) The first publication must appear not later than the |
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30th day before the date set for the election. |
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Sec. 49.556. APPLICABILITY OF UNIFORM ELECTION DATES. |
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Section 41.001, Election Code, does not apply to an election held |
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under this subchapter. |
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Sec. 49.557. ELECTION RESULTS. (a) If a majority of the |
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votes in an election held under this subchapter favor dissolution, |
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the board shall order that the district be dissolved. |
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(b) If a majority of the votes in an election held under this |
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subchapter do not favor dissolution, the board shall continue to |
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administer the district, and another election on the question of |
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dissolution may not be held before the first anniversary of the date |
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of the most recent election held on the question of dissolving the |
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district. |
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Sec. 49.558. TRANSFER OF ASSETS, OBLIGATIONS, AND PROVISION |
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OF SERVICES. (a) As soon as practicable following the issuance of an |
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order under Section 49.557(a), the board shall: |
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(1) begin the process of transferring the district's |
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assets and obligations to one or more political subdivisions in a |
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fair and equitable manner; and |
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(2) administer the property, assets, and debts of the |
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district until all money has been disposed of and all district debts |
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have been paid or settled. |
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(b) If the district provides services, the board or a |
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receiver appointed under Section 49.559 shall make arrangements for |
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the uninterrupted provision of services. |
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Sec. 49.559. RECEIVER. If the executive director |
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determines that the board has failed to make substantial progress |
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in transferring the district's assets and obligations to one or |
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more political subdivisions in a fair and equitable manner, the |
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executive director shall appoint a receiver for the district. |
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Sec. 49.560. REPORT; DISSOLUTION ORDER. (a) After the |
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district has transferred all of the district's assets and |
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obligations and has arranged for the continued provision of |
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services provided by the district, if applicable, the board shall |
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file a written report with the commission summarizing the board's |
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actions in dissolving the district. |
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(b) Not later than the 10th day after the date the |
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commission receives the report and determines that the requirements |
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of this subchapter have been fulfilled, the commission shall enter |
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an order dissolving the district. |
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SECTION 4. This Act takes effect September 1, 2017. |