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A BILL TO BE ENTITLED
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AN ACT
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relating to procedures for the dissolution of the Hidalgo County |
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Water Improvement District No. 3. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. DEFINITIONS. In this Act: |
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(1) "City" means a municipality described by Section 2 |
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of this Act. |
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(2) "City council" means the governing body of a city. |
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(3) "District" means the Hidalgo County Water |
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Improvement District No. 3. |
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(4) "District board" means the district's board of |
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directors. |
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SECTION 2. DISTRICT AND MUNICIPALITY TO WHICH ACT IS |
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APPLICABLE. This Act applies only to: |
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(1) the district; and |
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(2) a municipality that: |
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(A) has a population greater than 100,000; and |
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(B) contained on April 1, 2013, within its |
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corporate boundaries or extraterritorial jurisdiction more than |
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half of the district's territory. |
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SECTION 3. DISSOLUTION OF DISTRICT; FINDINGS PREREQUISITE |
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TO MOTION TO TRANSFER. (a) The district is dissolved on the date a |
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transfer ordinance adopted pursuant to Section 6 of this Act takes |
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effect under Section 8 of this Act. |
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(b) At a regularly scheduled meeting of the city council, a |
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city may propose an ordinance to allow the city to accept a transfer |
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of the obligations, liabilities, and assets of the district if the |
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city council finds that as of the date of the meeting: |
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(1) at least 80 percent of the raw water diverted by |
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the district in the preceding 12 months was diverted for use by the |
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city or at least 80 percent of the revenue received by the district |
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from diverting raw water during the preceding 12 months was |
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received from the city; |
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(2) the city is capable of assuming all rights and |
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obligations of the district; |
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(3) the city is capable of assuming responsibility for |
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operating the district's facilities to benefit the district's |
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existing customers and performing the services and functions |
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performed by the district; |
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(4) dissolution of the district will result in an |
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overall cost savings to city residents; and |
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(5) dissolution of the district will result in a more |
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stable water supply for residents of the city and surrounding |
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communities. |
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SECTION 4. HEARING REQUIRED. (a) Before a city may hold an |
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election under Section 5 of this Act or propose an ordinance |
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described by Section 6 of this Act, the city must conduct a public |
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hearing on the issue. |
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(b) Notice of the public hearing must be: |
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(1) posted in accordance with the laws that apply to |
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regular meetings of the city council; and |
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(2) mailed to each district board member. |
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SECTION 5. ELECTION REQUIRED. (a) Before a city may |
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propose an ordinance described by Section 6 of this Act, the city |
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must hold an election within the boundaries of the territory of the |
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district to determine if the registered voters within those |
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boundaries support the district's dissolution. For purposes of this |
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section the territory of the district includes all district |
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territory as of April 1, 2013, and any annexations of territory |
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after that date and before the last date for voter registration for |
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the election. Territory that was ever included in the district but |
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was later excluded is considered part of the territory of the |
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district for purposes of this section. Notwithstanding any other |
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law, all registered voters who reside within the boundaries of the |
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territory of the district, including residents of territory that |
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was once included in but was later excluded from the district, are |
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eligible to vote in the election called under this section. |
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(b) The city shall adopt an election order providing for an |
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election to be held in the territory of the district on the next |
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uniform election date after the hearing conducted under Section 4 |
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of this Act. The election ballot must allow voting for or against |
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the proposition to dissolve the district and to transfer all |
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district obligations, liabilities, and assets to the city. The |
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city shall contract with the county elections administrator as |
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provided by Subchapter D, Chapter 31, Election Code, to conduct the |
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election. |
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(c) The district may not be dissolved and its obligations, |
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liabilities, and assets may not be transferred to the city unless a |
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majority of the voters voting at the election held under this |
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section vote in favor of the proposition described by Subsection |
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(b) of this section. |
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SECTION 6. TRANSFER ORDINANCE. (a) After a city council |
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has made the findings required by Section 3(b) of this Act, has |
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conducted a public hearing as required by Section 4 of this Act, and |
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has held an election under Section 5 of this Act at which the |
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district's dissolution was approved by the registered voters within |
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the district, the city council may adopt an ordinance allowing the |
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city to accept a transfer of the district's obligations, |
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liabilities, and assets. |
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(b) The ordinance must contain provisions that: |
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(1) eliminate the required payment of any flat tax or |
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assessments paid to the district by landowners in the district; |
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(2) ensure that all water rights are held in trust by |
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the city for the uses previously adjudicated; |
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(3) ensure that all individual water users are |
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entitled to continue to use or have access to the same amount of |
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water they were entitled to before the dissolution of the district; |
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(4) require the city to perform all the functions of |
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the district, including the provision of services; and |
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(5) ensure delivery of water to landowners at or below |
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the lowest comparable delivery charge imposed by any other |
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irrigation district in Hidalgo County. |
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(c) The ordinance takes effect only if two-thirds of the |
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city council votes in favor of the ordinance. |
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SECTION 7. CITY CONSENT; DISTRICT DUTIES. (a) On or before |
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the effective date of the ordinance described by Section 6 of this |
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Act, the district board shall provide the district's management and |
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operational records to the city that passed the ordinance to ensure |
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the orderly transfer of management and operational responsibility |
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to the city. |
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(b) Without the consent of a majority of the members of a |
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city council that publishes notice under Section 4(b) of this Act, |
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the district may not: |
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(1) sell, transfer, or encumber any district asset; |
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(2) issue debt or acquire additional obligations; or |
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(3) default on or fail to honor financial, legal, or |
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other obligations of the district. |
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(c) Unless a majority of the members of a city council that |
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publishes notice under Section 4(b) of this Act agree otherwise, |
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the district shall: |
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(1) maintain assets of the district in an appropriate |
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condition reflective of good stewardship and proper repair; and |
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(2) preserve district records, including information |
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maintained by the district in electronic format. |
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(d) Any action undertaken by the district that does not |
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comply with Subsection (b) of this section is void. |
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(e) This section expires on the date a city that has |
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published notice under Section 4(b) of this Act repeals the city's |
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ordinance described by Section 6 of this Act. |
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SECTION 8. EFFECTIVE DATE OF TRANSFER. A transfer |
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ordinance under this Act takes effect on the date the city council |
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approves the ordinance under Section 6(c) of this Act. |
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SECTION 9. TRANSFER OF ASSETS. (a) On or before the |
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effective date of a transfer ordinance under Section 8 of this Act, |
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the district shall: |
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(1) transfer to the city the ownership of any water |
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rights and certificates of adjudication; |
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(2) transfer the assets, debts, and contractual rights |
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and obligations of the district to the city; |
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(3) provide notice of the dissolution of the district |
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to the Texas Commission on Environmental Quality; and |
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(4) provide notice and make recordings of the |
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transfers under this section as required by the Water Code and other |
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law. |
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(b) On receipt of notice of the transfer of a district |
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certificate of adjudication, the Texas Commission on Environmental |
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Quality shall note in its records that the certificate of |
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adjudication is owned and held by the city. The Texas Commission on |
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Environmental Quality shall transfer the district's certificate to |
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the city as a ministerial act without further application, notice, |
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or hearing. A person or other legal entity does not have a right to |
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object to or to request an administrative review of a transfer made |
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in accordance with this Act. |
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(c) The transfer of the district's water rights and any |
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certificate of adjudication to the city does not affect or impair |
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the priority, extent, validity, or purpose of the water rights or |
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certificate. |
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SECTION 10. EXPIRATION. This Act expires January 1, 2018. |
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SECTION 11. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2013. |