Texas 2009 - 81st Regular

Texas Senate Bill SB2023 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R8875 NC-D
2	2	By: Watson S.B. No. 2023
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the dissolution of certain municipal utility districts
8	8	that are located in more than one municipality.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter D, Chapter 43, Local Government Code,
11	11	is amended by adding Section 43.0741 to read as follows:
12	12	Sec. 43.0741. ABOLITION AND ASSUMPTION OF FUNCTIONS OF
13	13	MUNICIPAL UTILITY DISTRICT LOCATED IN MORE THAN ONE MUNICIPALITY.
14	14	(a) This section applies only to a home-rule municipality with a
15	15	population of less than 20,000:
16	16	(1) in which is located part of a municipal utility
17	17	district organized for the primary purpose of providing municipal
18	18	functions such as supplying fresh water for domestic or commercial
19	19	uses or furnishing sanitary sewer service; and
20	20	(2) the governing body of which adopts, by a majority
21	21	vote of its entire membership, an ordinance under Subsection (e).
22	22	(b) This section applies only if:
23	23	(1) the municipal utility district described by
24	24	Subsection (a)(1) has territory located in more than one
25	25	municipality;
26	26	(2) at least 80 percent of the territory of the
27	27	municipal utility district is located in the corporate limits and
28	28	extraterritorial jurisdiction of a municipality described by
29	29	Subsection (a); and
30	30	(3) no more than 100 retail customers of the municipal
31	31	utility district are located outside the corporate limits of the
32	32	municipality described by Subsection (a).
33	33	(c) The governing body of a municipality may not adopt an
34	34	ordinance described by Subsection (e) until the municipality:
35	35	(1) prepares a report estimating the cost to provide
36	36	water and wastewater service to the municipal utility district's
37	37	customers, including an analysis of:
38	38	(A) the effect the elimination of the municipal
39	39	utility district tax would have on the revenues required to operate
40	40	and maintain the water and wastewater system and services;
41	41	(B) the manner in which the municipal utility
42	42	district's tax revenue would be replaced;
43	43	(C) whether tax revenue is required for the
44	44	provision of service; and
45	45	(D) the effect the elimination of the municipal
46	46	utility district tax would have on the fees and charges paid by the
47	47	water and sewer customers of the district;
48	48	(2) on completion of the report described by
49	49	Subdivision (1), posts the report on the municipality's Internet
50	50	website; and
51	51	(3) on or before the 15th day before the date the
52	52	governing body considers an ordinance described by Subsection (e),
53	53	holds a public hearing regarding the report described by
54	54	Subdivision (1) at which any member of the public is allowed to
55	55	appear to present evidence or comments regarding the report.
56	56	(d) On or before the 10th day before the date of the public
57	57	hearing under Subsection (c)(3), the governing body of the
58	58	municipality must publish notice of the hearing, including the
59	59	date, time, and location of the hearing, in a newspaper of general
60	60	circulation in the municipality and mail notice of the hearing to
61	61	the president or general manager of the municipal utility district.
62	62	(e) The governing body of a municipality may adopt an
63	63	ordinance that provides a date on which the municipality will:
64	64	(1) take over all the property and other assets of the
65	65	municipal utility district described by Subsection (a)(1);
66	66	(2) assume all the debts, liabilities, and obligations
67	67	of the municipal utility district described by Subsection (a)(1);
68	68	and
69	69	(3) perform all the functions of the municipal utility
70	70	district described by Subsection (a)(1), including the provision of
71	71	services.
72	72	(f) After the adoption of an ordinance described by
73	73	Subsection (e) and on the date provided in the ordinance, the
74	74	municipal utility district is abolished and the municipality
75	75	succeeds to the powers, duties, assets, and obligations of the
76	76	municipal utility district as provided by this section.
77	77	(g) Nothing in this section requires a municipality to annex
78	78	any territory of the municipal utility district that is located
79	79	outside the corporate limits of the municipality for the
80	80	municipality to assume the responsibilities, obligations, and
81	81	assets of the municipal utility district as provided by this
82	82	section. If the municipality proposes to annex any of the municipal
83	83	utility district territory outside the corporate limits of the
84	84	municipality:
85	85	(1) the annexation provisions of Subchapter C apply;
86	86	and
87	87	(2) the municipality shall provide notice in the
88	88	manner provided by Section 43.052(f) to each affected customer that
89	89	includes a cost-of-service analysis and discloses any potential
90	90	rate and tax implications that would result from the annexation.
91	91	(h) For the areas in the municipal utility district that are
92	92	located outside the corporate limits or extraterritorial
93	93	jurisdiction of a municipality and in which the district has
94	94	facilities or customers, the municipality, on the date it assumes
95	95	the functions of the municipal utility district, shall continue to
96	96	provide services to those customers at the same level of service
97	97	provided to the customers located inside the corporate limits of
98	98	the municipality. The municipality may enter into an interlocal
99	99	agreement with another political subdivision for the other
100	100	political subdivision to provide services to customers and to
101	101	maintain facilities not located inside the corporate limits or
102	102	extraterritorial jurisdiction of the municipality.
103	103	(i) If the municipal utility district has outstanding
104	104	bonds, warrants, or other obligations, the municipality shall
105	105	assume those liabilities in accordance with this subsection. The
106	106	governing body of the municipality may issue refunding bonds or
107	107	warrants in its own name to refund the municipal utility district's
108	108	outstanding bonds, warrants, or other obligations, including
109	109	unpaid earned interest on the obligation, that are assumed by the
110	110	municipality. The municipality may pledge the net revenues or
111	111	property of the utility system or municipal property taxes to the
112	112	payment of the outstanding bonds, warrants, or other obligations
113	113	and refunding bonds or warrants as the governing body considers
114	114	proper.
115	115	SECTION 2. This Act takes effect immediately if it receives
116	116	a vote of two-thirds of all the members elected to each house, as
117	117	provided by Section 39, Article III, Texas Constitution. If this
118	118	Act does not receive the vote necessary for immediate effect, this
119	119	Act takes effect September 1, 2009.