Bill Text: TX SB1890 | 2013-2014 | 83rd Legislature | Engrossed


Bill Title: Relating to procedures for the dissolution of the Hidalgo County Water Improvement District No. 3.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2013-05-16 - Committee report sent to Calendars [SB1890 Detail]

Download: Texas-2013-SB1890-Engrossed.html
 
 
  By: Hinojosa S.B. No. 1890
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to procedures for the dissolution of the Hidalgo County
  Water Improvement District No. 3.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  DEFINITIONS. In this Act:
               (1)  "City" means a municipality described by Section 2
  of this Act.
               (2)  "City council" means the governing body of a city.
               (3)  "District" means the Hidalgo County Water
  Improvement District No. 3.
               (4)  "District board" means the district's board of
  directors.
         SECTION 2.  DISTRICT AND MUNICIPALITY TO WHICH ACT IS
  APPLICABLE. This Act applies only to:
               (1)  the district; and
               (2)  a municipality that:
                     (A)  has a population greater than 100,000; and
                     (B)  contained on April 1, 2013, within its
  corporate boundaries or extraterritorial jurisdiction more than
  half of the district's territory.
         SECTION 3.  DISSOLUTION OF DISTRICT; FINDINGS PREREQUISITE
  TO MOTION TO TRANSFER. (a)  The district is dissolved on the date a
  transfer ordinance adopted pursuant to Section 6 of this Act takes
  effect under Section 8 of this Act.
         (b)  At a regularly scheduled meeting of the city council, a
  city may propose an ordinance to allow the city to accept a transfer
  of the obligations, liabilities, and assets of the district if the
  city council finds that as of the date of the meeting:
               (1)  at least 80 percent of the raw water diverted by
  the district in the preceding 12 months was diverted for use by the
  city or at least 80 percent of the revenue received by the district
  from diverting raw water during the preceding 12 months was
  received from the city;
               (2)  the city is capable of assuming all rights and
  obligations of the district;
               (3)  the city is capable of assuming responsibility for
  operating the district's facilities to benefit the district's
  existing customers and performing the services and functions
  performed by the district;
               (4)  dissolution of the district will result in an
  overall cost savings to city residents; and
               (5)  dissolution of the district will result in a more
  stable water supply for residents of the city and surrounding
  communities.
         SECTION 4.  HEARING REQUIRED. (a)  Before a city may hold an
  election under Section 5 of this Act or propose an ordinance
  described by Section 6 of this Act, the city must conduct a public
  hearing on the issue.
         (b)  Notice of the public hearing must be:
               (1)  posted in accordance with the laws that apply to
  regular meetings of the city council; and
               (2)  mailed to each district board member.
         SECTION 5.  ELECTION REQUIRED. (a)  Before a city may
  propose an ordinance described by Section 6 of this Act, the city
  must hold an election within the boundaries of the territory of the
  district to determine if the registered voters within those
  boundaries support the district's dissolution.  For purposes of
  this section, the territory of the district includes all district
  territory as of January 1, 2005, and any annexations of territory
  after that date and before the last date for voter registration for
  the election.  Notwithstanding any other law, all registered voters
  who reside within the boundaries of the territory of the district
  are eligible to vote in the election called under this section.
         (b)  The city shall adopt an election order providing for an
  election to be held in the territory of the district on the next
  uniform election date after the hearing conducted under Section 4
  of this Act. The election ballot must allow voting for or against
  the proposition to dissolve the district and to transfer all
  district obligations, liabilities, and assets to the city.  The
  city shall contract with the county elections administrator as
  provided by Subchapter D, Chapter 31, Election Code, to conduct the
  election.
         (c)  The district may not be dissolved and its obligations,
  liabilities, and assets may not be transferred to the city unless a
  majority of the voters voting at the election held under this
  section vote in favor of the proposition described by Subsection
  (b) of this section.
         SECTION 6.  TRANSFER ORDINANCE. (a)  After a city council
  has made the findings required by Subsection (b), Section 3 of this
  Act, has conducted a public hearing as required by Section 4 of this
  Act, and has held an election under Section 5 of this Act at which
  the district's dissolution was approved by the registered voters
  within the district, the city council may adopt an ordinance
  allowing the city to accept a transfer of the district's
  obligations, liabilities, and assets.
         (b)  The ordinance must contain provisions that:
               (1)  eliminate the required payment of any flat tax or
  assessments paid to the district by landowners in the district;
               (2)  ensure that all water rights are held in trust by
  the city for the uses previously adjudicated;
               (3)  ensure that all individual water users are
  entitled to continue to use or have access to the same amount of
  water they were entitled to before the dissolution of the district;
               (4)  require the city to perform all the functions of
  the district, including the provision of services; and
               (5)  ensure delivery of water to landowners at or below
  the lowest comparable delivery charge imposed by any other
  irrigation district in Hidalgo County.
         (c)  The ordinance takes effect only if two-thirds of the
  city council votes in favor of the ordinance.
         SECTION 7.  CITY CONSENT; DISTRICT DUTIES. (a)  On or
  before the effective date of the ordinance described by Section 6 of
  this Act, the district board shall provide the district's
  management and operational records to the city that passed the
  ordinance to ensure the orderly transfer of management and
  operational responsibility to the city.
         (b)  Without the consent of a majority of the members of a
  city council that publishes notice under Subsection (b), Section 4
  of this Act, the district may not:
               (1)  sell, transfer, or encumber any district asset;
               (2)  issue debt or acquire additional obligations; or
               (3)  default on or fail to honor financial, legal, or
  other obligations of the district.
         (c)  Unless a majority of the members of a city council that
  publishes notice under Subsection (b), Section 4 of this Act, agree
  otherwise, the district shall:
               (1)  maintain assets of the district in an appropriate
  condition reflective of good stewardship and proper repair; and
               (2)  preserve district records, including information
  maintained by the district in electronic format.
         (d)  Any action undertaken by the district that does not
  comply with Subsection (b) of this section is void.
         (e)  This section expires on the date a city that has
  published notice under Subsection (b), Section 4 of this Act,
  repeals the city's ordinance described by Section 6 of this Act.
         SECTION 8.  EFFECTIVE DATE OF TRANSFER. A transfer
  ordinance under this Act takes effect on the date the city council
  approves the ordinance under Subsection (c), Section 6 of this Act.
         SECTION 9.  TRANSFER OF ASSETS. (a)  On or before the
  effective date of a transfer ordinance under Section 8 of this Act,
  the district shall:
               (1)  transfer to the city the ownership of any water
  rights and certificates of adjudication;
               (2)  transfer the assets, debts, and contractual rights
  and obligations of the district to the city;
               (3)  provide notice of the dissolution of the district
  to the Texas Commission on Environmental Quality; and
               (4)  provide notice and make recordings of the
  transfers under this section as required by the Water Code and other
  law.
         (b)  On receipt of notice of the transfer of a district
  certificate of adjudication, the Texas Commission on Environmental
  Quality shall note in its records that the certificate of
  adjudication is owned and held by the city. The Texas Commission on
  Environmental Quality shall transfer the district's certificate to
  the city as a ministerial act without further application, notice,
  or hearing. A person or other legal entity does not have a right to
  object to or to request an administrative review of a transfer made
  in accordance with this Act.
         (c)  The transfer of the district's water rights and any
  certificate of adjudication to the city does not affect or impair
  the priority, extent, validity, or purpose of the water rights or
  certificate.
         SECTION 10.  EXPIRATION.  This Act expires January 1, 2018.
         SECTION 11.  EFFECTIVE DATE.  This Act takes effect
  immediately if it receives a vote of two-thirds of all the members
  elected to each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2013.
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