2019S0254-1 02/22/19
By: Hinojosa S.B. No. 1108
A BILL TO BE ENTITLED
AN ACT
relating to the dissolution of certain general law districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 55, Water Code, is amended by adding
Subchapter Q to read as follows:
SUBCHAPTER Q. DISSOLUTION BY ELECTION
Sec. 55.851. 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. 55.852. 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. 55.853. 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. 55.854. ELECTION ORDER. An order calling an election
to be 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. 55.855. 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. 55.856. APPLICABILITY OF UNIFORM ELECTION DATES.
Section 41.001, Election Code, does not apply to an election held
under this subchapter.
Sec. 55.857. 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. 55.858. TRANSFER OF ASSETS, OBLIGATIONS, AND PROVISION
OF SERVICES. (a) As soon as practicable following the issuance of
an order under Section 55.857(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 55.859 shall make arrangements for
the uninterrupted provision of services.
Sec. 55.859. RECEIVER. (a) If the commission 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
commission may, after notice and opportunity for a hearing
conducted under Chapter 2001, Government Code, request the attorney
general to bring suit for the appointment of a receiver.
(b) If the attorney general brings suit for the appointment
of a receiver under Subsection (a), a district court shall appoint a
receiver if the court finds the appointment is necessary for the
transfer of the assets and obligations of the district.
(c) The receiver shall execute a bond in the amount set by
the court to ensure the proper performance of the receiver's
duties.
(d) After execution of the bond, the receiver shall take
possession of the assets specified by the court.
(e) Until discharged by the court, the receiver shall
perform the duties as directed by the court to preserve the assets
and ensure that district assets and obligations are transferred.
Sec. 55.860. REPORT; DISSOLUTION ORDER. (a) Not later
than the 60th day after the date 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, or the receiver appointed under Section
55.859, as applicable, shall file a written report with the
commission summarizing the board's or the receiver's actions, as
applicable, in dissolving the district.
(b) Not later than the 45th 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 2. Chapter 58, Water Code, is amended by adding
Subchapter P to read as follows:
SUBCHAPTER P. DISSOLUTION BY ELECTION
Sec. 58.901. 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. 58.902. DISSOLUTION ELECTION CALLED BY COMMISSIONERS
COURT. (a) If the district is located entirely within one county,
the commissioners court 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. 58.903. 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. 58.904. ELECTION ORDER. An order calling an election
to be 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. 58.905. 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. 58.906. APPLICABILITY OF UNIFORM ELECTION DATES.
Section 41.001, Election Code, does not apply to an election held
under this subchapter.
Sec. 58.907. 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. 58.908. TRANSFER OF ASSETS, OBLIGATIONS, AND PROVISION
OF SERVICES. (a) As soon as practicable following the issuance of
an order under Section 58.907(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 58.909 shall make arrangements for
the uninterrupted provision of services.
Sec. 58.909. RECEIVER. (a) If the commission 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
commission may, after notice and opportunity for a hearing
conducted under Chapter 2001, Government Code, request the attorney
general to bring suit for the appointment of a receiver.
(b) If the attorney general brings suit for the appointment
of a receiver under Subsection (a), a district court shall appoint a
receiver if the court finds the appointment is necessary for the
transfer of the assets and obligations of the district.
(c) The receiver shall execute a bond in the amount set by
the court to ensure the proper performance of the receiver's
duties.
(d) After execution of the bond, the receiver shall take
possession of the assets specified by the court.
(e) Until discharged by the court, the receiver shall
perform the duties as directed by the court to preserve the assets
and ensure that district assets and obligations are transferred.
Sec. 58.910. REPORT; DISSOLUTION ORDER. (a) Not later
than the 60th day after the date 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, or the receiver appointed under Section
58.909, as applicable, shall file a written report with the
commission summarizing the board's or the receiver's actions, as
applicable, in dissolving the district.
(b) Not later than the 45th 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 3. Chapter 65, Water Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. DISSOLUTION BY ELECTION
Sec. 65.801. 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. 65.802. 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. 65.803. 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. 65.804. ELECTION ORDER. An order calling an election
to be 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. 65.805. 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. 65.806. APPLICABILITY OF UNIFORM ELECTION DATES.
Section 41.001, Election Code, does not apply to an election held
under this subchapter.
Sec. 65.807. 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. 65.808. TRANSFER OF ASSETS, OBLIGATIONS, AND PROVISION
OF SERVICES. (a) As soon as practicable following the issuance of
an order under Section 65.807(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 65.809 shall make arrangements for
the uninterrupted provision of services.
Sec. 65.809. RECEIVER. (a) If the commission 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
commission may, after notice and opportunity for a hearing
conducted under Chapter 2001, Government Code, request the attorney
general to bring suit for the appointment of a receiver.
(b) If the attorney general brings suit for the appointment
of a receiver under Subsection (a), a district court shall appoint a
receiver if the court finds the appointment is necessary for the
transfer of the assets and obligations of the district.
(c) The receiver shall execute a bond in the amount set by
the court to ensure the proper performance of the receiver's
duties.
(d) After execution of the bond, the receiver shall take
possession of the assets specified by the court.
(e) Until discharged by the court, the receiver shall
perform the duties as directed by the court to preserve the assets
and ensure that district assets and obligations are transferred.
Sec. 65.810. REPORT; DISSOLUTION ORDER. (a) Not later
than the 60th day after the date 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, or the receiver appointed under Section
65.809, as applicable, shall file a written report with the
commission summarizing the board's or the receiver's actions, as
applicable, in dissolving the district.
(b) Not later than the 45th 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, 2019.