Texas 2021 - 87th Regular

Texas House Bill HB4620 Compare Versions

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11 87R17176 ANG-F
22 By: Canales H.B. No. 4620
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to procedures for the dissolution of the Hidalgo County
88 Water Improvement District No. 3.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. DEFINITIONS. In this Act:
1111 (1) "City" means a municipality described by Section 2
1212 of this Act.
1313 (2) "City commission" means the governing body of the
1414 city.
1515 (3) "District" means the Hidalgo County Water
1616 Improvement District No. 3.
1717 SECTION 2. DISTRICT AND MUNICIPALITY TO WHICH ACT IS
1818 APPLICABLE. This Act applies only to:
1919 (1) the district; and
2020 (2) a municipality that:
2121 (A) has a population greater than 100,000; and
2222 (B) contained on April 1, 2021, within its
2323 corporate boundaries or extraterritorial jurisdiction more than
2424 half of the district's territory.
2525 SECTION 3. TRANSFER OF ASSETS AND DISSOLUTION OF DISTRICT.
2626 (a) On the date the city commission passes an ordinance accepting
2727 the assets, debts, and contractual rights and obligations of the
2828 district:
2929 (1) all assets, debts, and contractual rights and
3030 obligations of the district are property of the city; and
3131 (2) the district is dissolved.
3232 (b) The ordinance must contain provisions that:
3333 (1) eliminate the required payment of any flat tax or
3434 assessments paid to the district by landowners in the district;
3535 (2) ensure that all water rights are held in trust by
3636 the city for the uses previously adjudicated;
3737 (3) ensure that all individual water users are
3838 entitled to continue to use or have access to the same amount of
3939 water they were entitled to before the dissolution of the district;
4040 (4) require the city to perform all the functions of
4141 the district, including the provision of services; and
4242 (5) ensure delivery of water to landowners at or below
4343 the lowest comparable delivery charge imposed by any other
4444 irrigation district in Hidalgo County.
4545 (c) On the date of the dissolution of the district, and
4646 notwithstanding Section 51.790, Water Code, ownership of any
4747 certificate of adjudication held by the district, including any
4848 attachments or amendments to the certificate, transfers to the
4949 city.
5050 (d) The city shall notify the Texas Commission on
5151 Environmental Quality of the dissolution of the district and the
5252 transfer of any certificate of adjudication held by the district to
5353 the city.
5454 (e) On receipt of notice under Subsection (d) of this
5555 section, the Texas Commission on Environmental Quality shall note
5656 in its records that a certificate of adjudication transferred under
5757 Subsection (c) of this section is owned by the city. The Texas
5858 Commission on Environmental Quality shall, as a ministerial act,
5959 transfer the certificate to the city without further application,
6060 notice, or hearing. A person, party, or entity does not have any
6161 right of protest, objection, or administrative review of the
6262 transfer prescribed by this Act.
6363 (f) The transfer of the district's water rights and any
6464 certificate of adjudication to the city does not affect or impair
6565 the priority, extent, validity, or purpose of the water rights or
6666 certificate.
6767 SECTION 4. TRANSFER OF ASSETS. On or before the effective
6868 date of the dissolution of the district, the district shall:
6969 (1) provide the district's management and operational
7070 records to the city;
7171 (2) transfer to the city the ownership of any water
7272 rights and certificates of adjudication;
7373 (3) transfer the assets, debts, and contractual rights
7474 and obligations of the district to the city; and
7575 (4) provide notice and make recordings of the
7676 transfers under this section as required by the Water Code and other
7777 law.
7878 SECTION 5. CITY CONSENT. (a) Without the consent of a
7979 majority of the members of a city commission that provides notice
8080 under Section 3 of this Act, the district may not:
8181 (1) sell, transfer, or encumber any district asset;
8282 (2) issue debt or acquire additional obligations; or
8383 (3) default on or fail to honor financial, legal, or
8484 other obligations of the district.
8585 (b) Unless a majority of the members of a city commission
8686 that provides notice under Section 3 of this Act agree otherwise,
8787 the district shall:
8888 (1) maintain assets of the district in an appropriate
8989 condition reflective of good stewardship and proper repair; and
9090 (2) preserve district records, including information
9191 maintained by the district in electronic format.
9292 (c) Any action undertaken by the district that does not
9393 comply with Subsection (a) of this section is void.
9494 (d) This section expires on the date that a city has
9595 provided notice under Section 3 of this Act.
9696 SECTION 6. EXPIRATION. This Act expires January 1, 2026.
9797 SECTION 7. EFFECTIVE DATE. This Act takes effect
9898 immediately if it receives a vote of two-thirds of all the members
9999 elected to each house, as provided by Section 39, Article III, Texas
100100 Constitution. If this Act does not receive the vote necessary for
101101 immediate effect, this Act takes effect September 1, 2021.