| 1 | 1 | | 87R3292 ANG-F |
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| 2 | 2 | | By: Harris H.B. No. 1796 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the division of and assumption of road district |
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| 8 | 8 | | authority by fresh water supply districts. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 53.029, Water Code, is amended to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | Sec. 53.029. [DIVISION OF OR] ASSUMPTION OF ROAD DISTRICT |
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| 13 | 13 | | AUTHORITY [BY CERTAIN DISTRICTS]. (a) [This section applies to a |
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| 14 | 14 | | district located in a county that: |
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| 15 | 15 | | [(1) has a population of 1.3 million or more and in |
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| 16 | 16 | | which a municipality with a population of more than one million is |
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| 17 | 17 | | primarily located; or |
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| 18 | 18 | | [(2) is adjacent to a county having the |
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| 19 | 19 | | characteristics described by Subdivision (1). |
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| 20 | 20 | | [(b) A district covered by this section may be divided into |
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| 21 | 21 | | two new districts if it has no outstanding bonded debt and is not |
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| 22 | 22 | | levying ad valorem taxes. The division procedure is prescribed by |
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| 23 | 23 | | Sections 53.030 to 53.041 of this code. |
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| 24 | 24 | | [(c)] The board of a district [covered by this section] may |
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| 25 | 25 | | order an election to be held in the district to determine whether |
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| 26 | 26 | | the district should assume the rights, authority, privileges, and |
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| 27 | 27 | | functions of a road district under Article III, Section 52(b)(3), |
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| 28 | 28 | | of the Texas Constitution. The election shall be ordered, |
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| 29 | 29 | | conducted, and the results canvassed in the manner provided by the |
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| 30 | 30 | | applicable provisions of this chapter and the Election Code. The |
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| 31 | 31 | | ballots for the election shall be printed to provide for voting for |
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| 32 | 32 | | or against: The assumption by the __________ Fresh Water Supply |
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| 33 | 33 | | District of the rights, authority, privileges, and functions of a |
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| 34 | 34 | | road district under Article III, Section 52(b)(3), of the Texas |
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| 35 | 35 | | Constitution. If a majority of the persons voting in the election |
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| 36 | 36 | | vote in favor of the proposition, the district shall assume the |
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| 37 | 37 | | rights, authority, privileges, and functions of a road district |
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| 38 | 38 | | operating under Article III, Section 52(b)(3), of the Texas |
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| 39 | 39 | | Constitution, Chapter 257, Transportation Code, and other general |
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| 40 | 40 | | laws of this state relating to road districts. |
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| 41 | 41 | | (b) [(d)] A district operating as a road district may not |
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| 42 | 42 | | issue bonds or otherwise lend its credit for road district purposes |
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| 43 | 43 | | except on approval of not less than two-thirds of the qualified |
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| 44 | 44 | | voters of the district voting at an election called and held for |
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| 45 | 45 | | that purpose. The total amount of bonds, notes, and other |
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| 46 | 46 | | obligations of the district issued or incurred under this |
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| 47 | 47 | | subsection may not exceed one-fourth of the assessed valuation of |
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| 48 | 48 | | real property in the district. |
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| 49 | 49 | | (c) [(e)] A district that has adopted the rights, |
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| 50 | 50 | | authority, privileges, and functions of a road district in the |
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| 51 | 51 | | manner provided by Subsection (a) [(c)] may, following approval of |
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| 52 | 52 | | a construction contract by the district's governing body, reimburse |
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| 53 | 53 | | expenditures as provided by Sections 257.003(a) and (b), |
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| 54 | 54 | | Transportation Code, without any additional approval under Section |
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| 55 | 55 | | 257.003, Transportation Code. |
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| 56 | 56 | | SECTION 2. Subchapter B, Chapter 53, Water Code, is amended |
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| 57 | 57 | | by adding Section 53.0291 to read as follows: |
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| 58 | 58 | | Sec. 53.0291. DIVISION OF DISTRICT. A district may be |
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| 59 | 59 | | divided into two new districts as provided by Sections 53.030 |
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| 60 | 60 | | through 53.041 if the district: |
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| 61 | 61 | | (1) has no outstanding bonded debt; and |
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| 62 | 62 | | (2) is not levying ad valorem taxes. |
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| 63 | 63 | | SECTION 3. This Act takes effect September 1, 2021. |
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