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A BILL TO BE ENTITLED
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AN ACT
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relating to the division of and assumption of road district |
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authority by fresh water supply districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 53.029, Water Code, is amended to read as |
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follows: |
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Sec. 53.029. [DIVISION OF OR] ASSUMPTION OF ROAD DISTRICT |
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AUTHORITY [BY CERTAIN DISTRICTS]. (a) [This section applies to a |
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district located in a county that: |
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[(1) has a population of 1.3 million or more and in |
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which a municipality with a population of more than one million is |
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primarily located; or |
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[(2) is adjacent to a county having the |
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characteristics described by Subdivision (1). |
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[(b) A district covered by this section may be divided into |
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two new districts if it has no outstanding bonded debt and is not |
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levying ad valorem taxes. The division procedure is prescribed by |
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Sections 53.030 to 53.041 of this code. |
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[(c)] The board of a district [covered by this section] may |
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order an election to be held in the district to determine whether |
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the district should assume the rights, authority, privileges, and |
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functions of a road district under Article III, Section 52(b)(3), |
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of the Texas Constitution. The election shall be ordered, |
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conducted, and the results canvassed in the manner provided by the |
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applicable provisions of this chapter and the Election Code. The |
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ballots for the election shall be printed to provide for voting for |
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or against: The assumption by the __________ Fresh Water Supply |
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District of the rights, authority, privileges, and functions of a |
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road district under Article III, Section 52(b)(3), of the Texas |
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Constitution. If a majority of the persons voting in the election |
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vote in favor of the proposition, the district shall assume the |
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rights, authority, privileges, and functions of a road district |
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operating under Article III, Section 52(b)(3), of the Texas |
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Constitution, Chapter 257, Transportation Code, and other general |
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laws of this state relating to road districts. |
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(b) [(d)] A district operating as a road district may not |
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issue bonds or otherwise lend its credit for road district purposes |
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except on approval of not less than two-thirds of the qualified |
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voters of the district voting at an election called and held for |
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that purpose. The total amount of bonds, notes, and other |
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obligations of the district issued or incurred under this |
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subsection may not exceed one-fourth of the assessed valuation of |
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real property in the district. |
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(c) [(e)] A district that has adopted the rights, |
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authority, privileges, and functions of a road district in the |
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manner provided by Subsection (a) [(c)] may, following approval of |
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a construction contract by the district's governing body, reimburse |
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expenditures as provided by Sections 257.003(a) and (b), |
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Transportation Code, without any additional approval under Section |
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257.003, Transportation Code. |
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SECTION 2. Subchapter B, Chapter 53, Water Code, is amended |
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by adding Section 53.0291 to read as follows: |
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Sec. 53.0291. DIVISION OF DISTRICT. A district may be |
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divided into two new districts as provided by Sections 53.030 |
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through 53.041 if the district: |
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(1) has no outstanding bonded debt; and |
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(2) is not levying ad valorem taxes. |
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SECTION 3. This Act takes effect September 1, 2021. |