By: Schwertner S.B. No. 1067
(In the Senate - Filed February 23, 2017; March 6, 2017,
read first time and referred to Committee on Intergovernmental
Relations; May 2, 2017, reported favorably by the following vote:
Yeas 5, Nays 1; May 2, 2017, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the dissolution of the Chisholm Trail Special Utility
District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 6, Special District Local Laws
Code, is amended by adding Chapter 7219 to read as follows:
CHAPTER 7219. CHISHOLM TRAIL SPECIAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7219.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Georgetown.
(3) "District" means the Chisholm Trail Special
Utility District.
SUBCHAPTER B. DISSOLUTION OF DISTRICT
Sec. 7219.051. PROPOSAL FOR DISSOLUTION; NOTICE. (a) If a
majority of the board votes to propose to dissolve the district, the
board may issue notice of a hearing on a proposal to dissolve the
district.
(b) Not later than the 14th day before the date set for the
hearing, notice of the hearing must:
(1) be posted at the courthouse of each county in which
the district is located and at the district's office; and
(2) be published at least one time in a newspaper of
general circulation in each county in which the district is
located.
Sec. 7219.052. HEARING AND ORDER. (a) At the hearing,
held at the time and place stated in the notice under Section
7219.051, the board shall:
(1) hear all interested persons;
(2) consider whether the best interests of the persons
and property in the district will be served by dissolving the
district; and
(3) vote on whether to dissolve the district.
(b) If two-thirds of the members of the board vote to
dissolve the district, the board shall enter a finding in its
records that the district will be dissolved after completion of the
process to transfer to the city the district's certificate of
convenience and necessity and other assets and liabilities under
Section 7219.053. After the district's certificate of convenience
and necessity and other assets and liabilities are transferred to
the city under Section 7219.053, the board shall enter an order in
its records dissolving the district.
(c) If two-thirds of the members of the board do not vote to
dissolve the district, the board shall enter an order in its records
providing that the district is not to be dissolved.
Sec. 7219.053. ASSUMPTION OF OPERATION, MANAGEMENT, AND
ASSETS AND LIABILITIES OF DISTRICT. (a) On the date the board
enters a finding under Section 7219.052(b) that the district will
be dissolved, the city shall assume:
(1) control of the operation and management of the
affairs of the district, to the extent that the operation and
management was not previously assumed by the city by contractual
agreement;
(2) all rights, duties, and obligations of the
district, including existing contracts, duties, assets, property,
easements, financial obligations, and liabilities of the district,
to the extent that those rights, duties, and obligations were not
previously assumed by the city by contractual agreement;
(3) all files, records, and accounts of the district,
including those that pertain to the control, finances, management,
and operation of the district; and
(4) all permits, approvals, and licenses of the
district.
(b) To the extent that the assumption of an item listed in
Subsection (a) requires the approval of a state agency, the state
agency shall grant approval without additional notice or hearing.
(c) This section does not enhance or harm the position of a
contracting party.
Sec. 7219.054. REVIEW OF BOARD'S ORDER. The board's order
dissolving the district is final and may not be appealed in any
manner to any judicial, administrative, or other tribunal if the
board's order is entered after the completion of the process to
transfer the district's certificate of convenience and necessity,
including any necessary approval of a state agency.
SECTION 2. 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, 2017.
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