Texas House Bill HB1045

Texas 2017 - 85th Regular

Caption

Relating to the dissolution of a special utility district after the transfer of all obligations and services.

Impact

The impact of HB 1045 on state laws involves changes to how special utility districts can be dissolved. By legislating clear steps for dissolution and requiring significant board member agreement for such actions, the bill ensures that the residents' interests within the districts are prioritized. It may lead to a more streamlined process for local governance concerning utilities and could have implications for regional water management policies, especially in areas undergoing reorganization of services.

Summary

House Bill 1045 addresses the process of dissolving special utility districts in Texas after the transfer of their obligations and services. The bill amends the Water Code to introduce specific provisions allowing a district's board to propose dissolution if its certificate of convenience has been transferred to another political subdivision and its assets and liabilities have been assumed accordingly. This proposed framework aims to simplify the administrative functions related to the closure of utility districts when their operational responsibilities have been fully handled by another entity.

Contention

While the bill appears to create a more structured approach to the dissolution of utility districts, it may raise questions regarding local control and the flexibility of districts to operate independently. Concerns could arise about the potential implications for communities that may only partially fulfill obligations but wish to retain some degree of autonomy. Additionally, there may be debates regarding the adequacy of 66% board member approval versus a more democratic process involving public input, which could spur discussions on governance and representation in utility management.