| 1 | 1 | | 87R11819 SLB-D |
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| 2 | 2 | | By: Gates H.B. No. 4451 |
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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 consolidation of municipal utility districts. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter H, Chapter 54, Water Code, is amended |
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| 10 | 10 | | by adding Sections 54.7285, 54.7287, 54.7335, and 54.7337 to read |
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| 11 | 11 | | as follows: |
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| 12 | 12 | | Sec. 54.7285. PETITION TO CONSOLIDATE BY MAJORITY OF |
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| 13 | 13 | | VOTERS. (a) For two or more districts, if a majority of the |
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| 14 | 14 | | registered voters of each district submit to the board of each |
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| 15 | 15 | | district a written petition requesting the consolidation of those |
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| 16 | 16 | | districts, the board of each district must negotiate the terms and |
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| 17 | 17 | | conditions of consolidation, including the assumption by each |
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| 18 | 18 | | district of the bonds, notes, or other obligations and voted but |
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| 19 | 19 | | unissued bonds of the other consolidating districts payable wholly |
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| 20 | 20 | | or partly from taxation, the levy of taxes to pay for the bonds, and |
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| 21 | 21 | | the adoption of a name for the consolidated district. |
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| 22 | 22 | | (b) After the boards of each district consolidating under |
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| 23 | 23 | | this section have agreed to terms and conditions under Subsection |
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| 24 | 24 | | (a), each board shall issue an order consolidating the districts. |
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| 25 | 25 | | (c) During a period of 90 days after the date of the order to |
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| 26 | 26 | | consolidate, the officers of each district shall continue to act |
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| 27 | 27 | | jointly as officers of the original districts to settle the affairs |
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| 28 | 28 | | of their respective districts. |
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| 29 | 29 | | Sec. 54.7287. PETITION TO CONSOLIDATE BY LESS THAN A |
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| 30 | 30 | | MAJORITY OF VOTERS. For two or more districts, if 10 percent of the |
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| 31 | 31 | | registered voters in each district submit a written petition to the |
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| 32 | 32 | | board of each district requesting the consolidation of those |
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| 33 | 33 | | districts, the board of each district must hold an election on the |
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| 34 | 34 | | question of consolidation as provided by Section 54.729. |
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| 35 | 35 | | Sec. 54.7335. OPERATION OF LAW. A district formed by |
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| 36 | 36 | | consolidation under this subchapter operates as a general law |
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| 37 | 37 | | district under Chapter 49 and this chapter. A special law |
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| 38 | 38 | | applicable to a district before consolidation does not apply to a |
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| 39 | 39 | | consolidated district after the consolidation. |
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| 40 | 40 | | Sec. 54.7337. REPORT TO COMMISSION. On or before the 30th |
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| 41 | 41 | | day after the date of adoption of an order consolidating a number of |
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| 42 | 42 | | districts, the consolidated district shall file the order with the |
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| 43 | 43 | | commission and record the order in the real property records of each |
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| 44 | 44 | | county in which the district is located. |
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| 45 | 45 | | SECTION 2. This Act takes effect September 1, 2021. |
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