1 | 1 | | 87R17176 ANG-F |
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2 | 2 | | By: Canales H.B. No. 4620 |
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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 procedures for the dissolution of the Hidalgo County |
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8 | 8 | | Water Improvement District No. 3. |
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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. DEFINITIONS. In this Act: |
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11 | 11 | | (1) "City" means a municipality described by Section 2 |
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12 | 12 | | of this Act. |
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13 | 13 | | (2) "City commission" means the governing body of the |
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14 | 14 | | city. |
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15 | 15 | | (3) "District" means the Hidalgo County Water |
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16 | 16 | | Improvement District No. 3. |
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17 | 17 | | SECTION 2. DISTRICT AND MUNICIPALITY TO WHICH ACT IS |
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18 | 18 | | APPLICABLE. This Act applies only to: |
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19 | 19 | | (1) the district; and |
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20 | 20 | | (2) a municipality that: |
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21 | 21 | | (A) has a population greater than 100,000; and |
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22 | 22 | | (B) contained on April 1, 2021, within its |
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23 | 23 | | corporate boundaries or extraterritorial jurisdiction more than |
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24 | 24 | | half of the district's territory. |
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25 | 25 | | SECTION 3. TRANSFER OF ASSETS AND DISSOLUTION OF DISTRICT. |
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26 | 26 | | (a) On the date the city commission passes an ordinance accepting |
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27 | 27 | | the assets, debts, and contractual rights and obligations of the |
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28 | 28 | | district: |
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29 | 29 | | (1) all assets, debts, and contractual rights and |
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30 | 30 | | obligations of the district are property of the city; and |
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31 | 31 | | (2) the district is dissolved. |
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32 | 32 | | (b) The ordinance must contain provisions that: |
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33 | 33 | | (1) eliminate the required payment of any flat tax or |
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34 | 34 | | assessments paid to the district by landowners in the district; |
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35 | 35 | | (2) ensure that all water rights are held in trust by |
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36 | 36 | | the city for the uses previously adjudicated; |
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37 | 37 | | (3) ensure that all individual water users are |
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38 | 38 | | entitled to continue to use or have access to the same amount of |
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39 | 39 | | water they were entitled to before the dissolution of the district; |
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40 | 40 | | (4) require the city to perform all the functions of |
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41 | 41 | | the district, including the provision of services; and |
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42 | 42 | | (5) ensure delivery of water to landowners at or below |
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43 | 43 | | the lowest comparable delivery charge imposed by any other |
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44 | 44 | | irrigation district in Hidalgo County. |
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45 | 45 | | (c) On the date of the dissolution of the district, and |
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46 | 46 | | notwithstanding Section 51.790, Water Code, ownership of any |
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47 | 47 | | certificate of adjudication held by the district, including any |
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48 | 48 | | attachments or amendments to the certificate, transfers to the |
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49 | 49 | | city. |
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50 | 50 | | (d) The city shall notify the Texas Commission on |
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51 | 51 | | Environmental Quality of the dissolution of the district and the |
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52 | 52 | | transfer of any certificate of adjudication held by the district to |
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53 | 53 | | the city. |
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54 | 54 | | (e) On receipt of notice under Subsection (d) of this |
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55 | 55 | | section, the Texas Commission on Environmental Quality shall note |
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56 | 56 | | in its records that a certificate of adjudication transferred under |
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57 | 57 | | Subsection (c) of this section is owned by the city. The Texas |
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58 | 58 | | Commission on Environmental Quality shall, as a ministerial act, |
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59 | 59 | | transfer the certificate to the city without further application, |
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60 | 60 | | notice, or hearing. A person, party, or entity does not have any |
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61 | 61 | | right of protest, objection, or administrative review of the |
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62 | 62 | | transfer prescribed by this Act. |
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63 | 63 | | (f) The transfer of the district's water rights and any |
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64 | 64 | | certificate of adjudication to the city does not affect or impair |
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65 | 65 | | the priority, extent, validity, or purpose of the water rights or |
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66 | 66 | | certificate. |
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67 | 67 | | SECTION 4. TRANSFER OF ASSETS. On or before the effective |
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68 | 68 | | date of the dissolution of the district, the district shall: |
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69 | 69 | | (1) provide the district's management and operational |
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70 | 70 | | records to the city; |
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71 | 71 | | (2) transfer to the city the ownership of any water |
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72 | 72 | | rights and certificates of adjudication; |
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73 | 73 | | (3) transfer the assets, debts, and contractual rights |
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74 | 74 | | and obligations of the district to the city; and |
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75 | 75 | | (4) provide notice and make recordings of the |
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76 | 76 | | transfers under this section as required by the Water Code and other |
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77 | 77 | | law. |
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78 | 78 | | SECTION 5. CITY CONSENT. (a) Without the consent of a |
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79 | 79 | | majority of the members of a city commission that provides notice |
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80 | 80 | | under Section 3 of this Act, the district may not: |
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81 | 81 | | (1) sell, transfer, or encumber any district asset; |
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82 | 82 | | (2) issue debt or acquire additional obligations; or |
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83 | 83 | | (3) default on or fail to honor financial, legal, or |
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84 | 84 | | other obligations of the district. |
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85 | 85 | | (b) Unless a majority of the members of a city commission |
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86 | 86 | | that provides notice under Section 3 of this Act agree otherwise, |
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87 | 87 | | the district shall: |
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88 | 88 | | (1) maintain assets of the district in an appropriate |
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89 | 89 | | condition reflective of good stewardship and proper repair; and |
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90 | 90 | | (2) preserve district records, including information |
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91 | 91 | | maintained by the district in electronic format. |
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92 | 92 | | (c) Any action undertaken by the district that does not |
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93 | 93 | | comply with Subsection (a) of this section is void. |
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94 | 94 | | (d) This section expires on the date that a city has |
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95 | 95 | | provided notice under Section 3 of this Act. |
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96 | 96 | | SECTION 6. EXPIRATION. This Act expires January 1, 2026. |
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97 | 97 | | SECTION 7. EFFECTIVE DATE. This Act takes effect |
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98 | 98 | | immediately if it receives a vote of two-thirds of all the members |
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99 | 99 | | elected to each house, as provided by Section 39, Article III, Texas |
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100 | 100 | | Constitution. If this Act does not receive the vote necessary for |
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101 | 101 | | immediate effect, this Act takes effect September 1, 2021. |
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