85R2198 GRM-D
By: Hinojosa S.B. No. 1175
A BILL TO BE ENTITLED
AN ACT
relating to the dissolution of water districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter K, Chapter 49, Water
Code, is amended to read as follows:
SUBCHAPTER K. DISSOLUTION BY COMMISSION
SECTION 2. Section 49.323, Water Code, is amended to read as
follows:
Sec. 49.323. INVESTIGATION. (a) The executive director
shall investigate the facts and circumstances of the district to be
dissolved and the result of the investigation shall be included in a
written report.
(b) On request of a board, the executive director shall
investigate whether the district may be dissolved under this
subchapter and issue to the commission the written conclusion of
the investigation.
SECTION 3. Chapter 49, Water Code, is amended by adding
Subchapter P to read as follows:
SUBCHAPTER P. DISSOLUTION BY ELECTION
Sec. 49.551. DISSOLUTION ELECTION CALLED BY BOARD. The
board may order an election on the question of dissolving the
district and transferring the district's assets and obligations to
another political subdivision of the state, if the board concludes
after a public hearing held on the issue that it is in the best
interest of the district's residents and of the persons served by
the district for the district to dissolve.
Sec. 49.552. DISSOLUTION ELECTION CALLED BY COMMISSIONERS
COURT. (a) The commissioners court of a county in which the
district is located may order an election to be held in the
district's territory on the question of dissolving the district and
transferring the district's assets and obligations to another
political subdivision of the state, if the commissioners court
concludes after a public hearing held on the issue that it is in the
best interest of the district's residents and of the persons served
by the district for the district to dissolve.
(b) If the district is located in more than one county, the
election order must be in the form of a joint order issued by the
commissioners court of each county in which the district is located
after a hearing as described by Subsection (a).
Sec. 49.553. DISSOLUTION ELECTION CALLED BY PETITION. The
board shall order an election on the question of dissolving the
district and transferring the district's assets and obligations to
another political subdivision of the state if the board receives a
petition requesting an election on that question. The petition must
be signed by at least 15 percent of the district's registered
voters.
Sec. 49.554. ELECTION ORDER. An order calling an election
held under this subchapter must state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
Sec. 49.555. NOTICE OF DISSOLUTION ELECTION. (a) The board
shall give notice of an election ordered under this subchapter by
publishing a substantial copy of the election order in a newspaper
with general circulation in the district once a week for two
consecutive weeks.
(b) The first publication must appear not later than the
30th day before the date set for the election.
Sec. 49.556. APPLICABILITY OF UNIFORM ELECTION DATES.
Section 41.001, Election Code, does not apply to an election held
under this subchapter.
Sec. 49.557. ELECTION RESULTS. (a) If a majority of the
votes in an election held under this subchapter favor dissolution,
the board shall order that the district be dissolved.
(b) If a majority of the votes in an election held under this
subchapter do not favor dissolution, the board shall continue to
administer the district, and another election on the question of
dissolution may not be held before the first anniversary of the date
of the most recent election held on the question of dissolving the
district.
Sec. 49.558. TRANSFER OF ASSETS, OBLIGATIONS, AND PROVISION
OF SERVICES. (a) As soon as practicable following the issuance of an
order under Section 49.557(a), the board shall:
(1) begin the process of transferring the district's
assets and obligations to one or more political subdivisions in a
fair and equitable manner; and
(2) administer the property, assets, and debts of the
district until all money has been disposed of and all district debts
have been paid or settled.
(b) If the district provides services, the board or a
receiver appointed under Section 49.559 shall make arrangements for
the uninterrupted provision of services.
Sec. 49.559. RECEIVER. If the executive director
determines that the board has failed to make substantial progress
in transferring the district's assets and obligations to one or
more political subdivisions in a fair and equitable manner, the
executive director shall appoint a receiver for the district.
Sec. 49.560. REPORT; DISSOLUTION ORDER. (a) After the
district has transferred all of the district's assets and
obligations and has arranged for the continued provision of
services provided by the district, if applicable, the board shall
file a written report with the commission summarizing the board's
actions in dissolving the district.
(b) Not later than the 10th day after the date the
commission receives the report and determines that the requirements
of this subchapter have been fulfilled, the commission shall enter
an order dissolving the district.
SECTION 4. This Act takes effect September 1, 2017.