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