Honorable Charles Perry, Chair, Senate Committee on Agriculture, Water & Rural Affairs
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB248 by Schwertner (Relating to the dissolution of a special utility district after the transfer of all obligations and services.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend the Water Code to establish a process by which a special utility district may legally dissolve, provided that its assets, liabilities, and certificate of convenience and necessity would have previously been transferred to, or assumed by, another political subdivision. In order to dissolve, a two-thirds vote of the members of the board would be required. Based on the analysis of the Water Development Board, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Local Government Impact
Based on the analysis of the Texas Municipal League, the dissolution process may result in a city (as a governmental entity) incurring some liability from the special utility district, but this would be a case by case situation.