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A BILL TO BE ENTITLED
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AN ACT
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relating to the consolidation of municipal utility districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 54, Water Code, is amended |
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by adding Sections 54.7285, 54.7287, 54.7335, and 54.7337 to read |
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as follows: |
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Sec. 54.7285. PETITION TO CONSOLIDATE BY MAJORITY OF |
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VOTERS. (a) For two or more districts, if a majority of the |
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registered voters of each district submit to the board of each |
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district a written petition requesting the consolidation of those |
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districts, the board of each district must negotiate the terms and |
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conditions of consolidation, including the assumption by each |
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district of the bonds, notes, or other obligations and voted but |
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unissued bonds of the other consolidating districts payable wholly |
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or partly from taxation, the levy of taxes to pay for the bonds, and |
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the adoption of a name for the consolidated district. |
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(b) After the boards of each district consolidating under |
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this section have agreed to terms and conditions under Subsection |
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(a), each board shall issue an order consolidating the districts. |
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(c) During a period of 90 days after the date of the order to |
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consolidate, the officers of each district shall continue to act |
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jointly as officers of the original districts to settle the affairs |
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of their respective districts. |
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Sec. 54.7287. PETITION TO CONSOLIDATE BY LESS THAN A |
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MAJORITY OF VOTERS. For two or more districts, if 10 percent of the |
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registered voters in each district submit a written petition to the |
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board of each district requesting the consolidation of those |
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districts, the board of each district must hold an election on the |
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question of consolidation as provided by Section 54.729. |
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Sec. 54.7335. OPERATION OF LAW. A district formed by |
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consolidation under this subchapter operates as a general law |
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district under Chapter 49 and this chapter. A special law |
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applicable to a district before consolidation does not apply to a |
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consolidated district after the consolidation. |
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Sec. 54.7337. REPORT TO COMMISSION. On or before the 30th |
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day after the date of adoption of an order consolidating a number of |
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districts, the consolidated district shall file the order with the |
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commission and record the order in the real property records of each |
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county in which the district is located. |
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SECTION 2. This Act takes effect September 1, 2021. |