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A BILL TO BE ENTITLED
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AN ACT
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relating to the dissolution of certain general law districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 55, Water Code, is amended by adding |
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Subchapter Q to read as follows: |
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SUBCHAPTER Q. DISSOLUTION BY ELECTION |
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Sec. 55.851. 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. 55.852. 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. 55.853. 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 |
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must be signed by at least 15 percent of the district's registered |
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voters. |
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Sec. 55.854. ELECTION ORDER. An order calling an election |
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to be 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. 55.855. NOTICE OF DISSOLUTION ELECTION. (a) The |
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board shall give notice of an election ordered under this |
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subchapter by publishing a substantial copy of the election order |
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in a newspaper with general circulation in the district once a week |
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for two 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. 55.856. 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. 55.857. 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. 55.858. TRANSFER OF ASSETS, OBLIGATIONS, AND PROVISION |
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OF SERVICES. (a) As soon as practicable following the issuance of |
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an order under Section 55.857(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 55.859 shall make arrangements for |
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the uninterrupted provision of services. |
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Sec. 55.859. RECEIVER. (a) If the commission determines |
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that the board has failed to make substantial progress in |
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transferring the district's assets and obligations to one or more |
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political subdivisions in a fair and equitable manner, the |
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commission may, after notice and opportunity for a hearing |
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conducted under Chapter 2001, Government Code, request the attorney |
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general to bring suit for the appointment of a receiver. |
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(b) If the attorney general brings suit for the appointment |
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of a receiver under Subsection (a), a district court shall appoint a |
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receiver if the court finds the appointment is necessary for the |
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transfer of the assets and obligations of the district. |
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(c) The receiver shall execute a bond in the amount set by |
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the court to ensure the proper performance of the receiver's |
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duties. |
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(d) After execution of the bond, the receiver shall take |
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possession of the assets specified by the court. |
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(e) Until discharged by the court, the receiver shall |
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perform the duties as directed by the court to preserve the assets |
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and ensure that district assets and obligations are transferred. |
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Sec. 55.860. REPORT; DISSOLUTION ORDER. (a) Not later |
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than the 60th day after the date the district has transferred all of |
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the district's assets and obligations and has arranged for the |
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continued provision of services provided by the district, if |
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applicable, the board, or the receiver appointed under Section |
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55.859, as applicable, shall file a written report with the |
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commission summarizing the board's or the receiver's actions, as |
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applicable, in dissolving the district. |
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(b) Not later than the 45th 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 2. Chapter 58, 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. 58.901. 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. 58.902. DISSOLUTION ELECTION CALLED BY COMMISSIONERS |
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COURT. (a) If the district is located entirely within one county, |
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the commissioners court may order an election to be held in the |
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|
district's territory on the question of dissolving the district and |
|
|
transferring the district's assets and obligations to another |
|
|
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 |
|
|
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. 58.903. 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 |
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|
must be signed by at least 15 percent of the district's registered |
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voters. |
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Sec. 58.904. ELECTION ORDER. An order calling an election |
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to be 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. 58.905. NOTICE OF DISSOLUTION ELECTION. (a) The |
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board shall give notice of an election ordered under this |
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subchapter by publishing a substantial copy of the election order |
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in a newspaper with general circulation in the district once a week |
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for two 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. 58.906. 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. 58.907. 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. 58.908. TRANSFER OF ASSETS, OBLIGATIONS, AND PROVISION |
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OF SERVICES. (a) As soon as practicable following the issuance of |
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an order under Section 58.907(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 |
|
|
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 58.909 shall make arrangements for |
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the uninterrupted provision of services. |
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Sec. 58.909. RECEIVER. (a) If the commission determines |
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that the board has failed to make substantial progress in |
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transferring the district's assets and obligations to one or more |
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political subdivisions in a fair and equitable manner, the |
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|
commission may, after notice and opportunity for a hearing |
|
|
conducted under Chapter 2001, Government Code, request the attorney |
|
|
general to bring suit for the appointment of a receiver. |
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|
(b) If the attorney general brings suit for the appointment |
|
|
of a receiver under Subsection (a), a district court shall appoint a |
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|
receiver if the court finds the appointment is necessary for the |
|
|
transfer of the assets and obligations of the district. |
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|
(c) The receiver shall execute a bond in the amount set by |
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|
the court to ensure the proper performance of the receiver's |
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|
duties. |
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(d) After execution of the bond, the receiver shall take |
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|
possession of the assets specified by the court. |
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|
(e) Until discharged by the court, the receiver shall |
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|
perform the duties as directed by the court to preserve the assets |
|
|
and ensure that district assets and obligations are transferred. |
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|
Sec. 58.910. REPORT; DISSOLUTION ORDER. (a) Not later |
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than the 60th day after the date the district has transferred all of |
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the district's assets and obligations and has arranged for the |
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continued provision of services provided by the district, if |
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|
applicable, the board, or the receiver appointed under Section |
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|
58.909, as applicable, shall file a written report with the |
|
|
commission summarizing the board's or the receiver's actions, as |
|
|
applicable, in dissolving the district. |
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(b) Not later than the 45th day after the date the |
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commission receives the report and determines that the requirements |
|
|
of this subchapter have been fulfilled, the commission shall enter |
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an order dissolving the district. |
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SECTION 3. Chapter 65, Water Code, is amended by adding |
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|
Subchapter I to read as follows: |
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SUBCHAPTER I. DISSOLUTION BY ELECTION |
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Sec. 65.801. DISSOLUTION ELECTION CALLED BY BOARD. The |
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board may order an election on the question of dissolving the |
|
|
district and transferring the district's assets and obligations to |
|
|
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. 65.802. 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 |
|
|
by the district for the district to dissolve. |
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|
(b) If the district is located in more than one county, the |
|
|
election order must be in the form of a joint order issued by the |
|
|
commissioners court of each county in which the district is located |
|
|
after a hearing as described by Subsection (a). |
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|
Sec. 65.803. 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 |
|
|
petition requesting an election on that question. The petition |
|
|
must be signed by at least 15 percent of the district's registered |
|
|
voters. |
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|
Sec. 65.804. ELECTION ORDER. An order calling an election |
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to be held under this subchapter must state: |
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(1) the nature of the election, including the |
|
|
proposition that is to appear on the ballot; |
|
|
(2) the date of the election; |
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|
(3) the hours during which the polls will be open; and |
|
|
(4) the location of the polling places. |
|
|
Sec. 65.805. NOTICE OF DISSOLUTION ELECTION. (a) The |
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board shall give notice of an election ordered under this |
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subchapter by publishing a substantial copy of the election order |
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|
in a newspaper with general circulation in the district once a week |
|
|
for two consecutive weeks. |
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|
(b) The first publication must appear not later than the |
|
|
30th day before the date set for the election. |
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|
Sec. 65.806. APPLICABILITY OF UNIFORM ELECTION DATES. |
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|
Section 41.001, Election Code, does not apply to an election held |
|
|
under this subchapter. |
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|
Sec. 65.807. 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 |
|
|
subchapter do not favor dissolution, the board shall continue to |
|
|
administer the district and another election on the question of |
|
|
dissolution may not be held before the first anniversary of the date |
|
|
of the most recent election held on the question of dissolving the |
|
|
district. |
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Sec. 65.808. TRANSFER OF ASSETS, OBLIGATIONS, AND PROVISION |
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OF SERVICES. (a) As soon as practicable following the issuance of |
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an order under Section 65.807(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 |
|
|
district until all money has been disposed of and all district debts |
|
|
have been paid or settled. |
|
|
(b) If the district provides services, the board or a |
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|
receiver appointed under Section 65.809 shall make arrangements for |
|
|
the uninterrupted provision of services. |
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|
Sec. 65.809. RECEIVER. (a) If the commission determines |
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|
that the board has failed to make substantial progress in |
|
|
transferring the district's assets and obligations to one or more |
|
|
political subdivisions in a fair and equitable manner, the |
|
|
commission may, after notice and opportunity for a hearing |
|
|
conducted under Chapter 2001, Government Code, request the attorney |
|
|
general to bring suit for the appointment of a receiver. |
|
|
(b) If the attorney general brings suit for the appointment |
|
|
of a receiver under Subsection (a), a district court shall appoint a |
|
|
receiver if the court finds the appointment is necessary for the |
|
|
transfer of the assets and obligations of the district. |
|
|
(c) The receiver shall execute a bond in the amount set by |
|
|
the court to ensure the proper performance of the receiver's |
|
|
duties. |
|
|
(d) After execution of the bond, the receiver shall take |
|
|
possession of the assets specified by the court. |
|
|
(e) Until discharged by the court, the receiver shall |
|
|
perform the duties as directed by the court to preserve the assets |
|
|
and ensure that district assets and obligations are transferred. |
|
|
Sec. 65.810. REPORT; DISSOLUTION ORDER. (a) Not later |
|
|
than the 60th day after the date the district has transferred all of |
|
|
the district's assets and obligations and has arranged for the |
|
|
continued provision of services provided by the district, if |
|
|
applicable, the board, or the receiver appointed under Section |
|
|
65.809, as applicable, shall file a written report with the |
|
|
commission summarizing the board's or the receiver's actions, as |
|
|
applicable, in dissolving the district. |
|
|
(b) Not later than the 45th day after the date the |
|
|
commission receives the report and determines that the requirements |
|
|
of this subchapter have been fulfilled, the commission shall enter |
|
|
an order dissolving the district. |
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|
SECTION 4. This Act takes effect September 1, 2019. |