88R3542 ANG-F
By: Hinojosa S.B. No. 1056
A BILL TO BE ENTITLED
AN ACT
relating to the directors and administration of the Hidalgo County
Water Improvement District No. 3; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle I, Title 6, Special District Local Laws
Code, is amended by adding Chapter 9054 to read as follows:
CHAPTER 9054. HIDALGO COUNTY WATER IMPROVEMENT DISTRICT NO. 3
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 9054.0001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Director" means a board member.
(4) "District" means the Hidalgo County Water
Improvement District No. 3.
Sec. 9054.0002. NATURE OF DISTRICT. The district is a
conservation and reclamation district organized to accomplish the
purposes of Section 59, Article XVI, Texas Constitution, and
operating as a water control and improvement district in accordance
with Chapters 49 and 51, Water Code.
SUBCHAPTER B. ELECTIONS
Sec. 9054.0101. ELECTIONS. (a) The district shall hold an
election on the uniform election date in November of each
even-numbered year to elect the appropriate number of directors.
(b) The district shall contract with the county elections
administrator as provided by Subchapter D, Chapter 31, Election
Code, to perform all duties and functions of the district in
relation to an election of directors.
(c) Section 49.110, Water Code, does not apply to the
district.
(d) The exemptions provided by Section 49.111, Water Code,
do not apply to the district.
Sec. 9054.0102. ELIGIBILITY TO VOTE. To be eligible to vote
in an election in the district, a person must be:
(1) a qualified voter as defined by Section 11.002,
Election Code, on the day the person offers to vote; and
(2) a person who resides on land inside the territory
defined by the boundaries of the district as those boundaries
existed on January 1, 2011.
Sec. 9054.0103. PROCEDURES FOR IDENTIFYING VOTERS;
PROVISIONAL VOTING. (a) The district shall submit to the registrar
a description or map of the territory defined by the boundaries of
the district as those boundaries existed on January 1, 2011, that is
in sufficient detail to enable the registrar to produce the
official list of the district's eligible voters.
(b) The district shall submit the information required
under this section not later than the 30th day after the date of the
last day to order a general or special election.
(c) If county election officials are unable to verify
whether a voter is eligible under Section 9054.0102, the voter may
be accepted to vote only provisionally under Section 63.011,
Election Code.
Sec. 9054.0104. BOND AND CONTRACT ELECTIONS; NOVEMBER
DATES. (a) A bond election held by the district must be held in
accordance with Section 49.106, Water Code, except that the
district may not hold the election on a date other than the uniform
election date prescribed by Section 41.001, Election Code, that
occurs in November of the applicable tax year.
(b) A contract election held by the district must be held in
accordance with Section 49.108, Water Code, except that the
district may not hold the election on a date other than the uniform
election date prescribed by Section 41.001, Election Code, that
occurs in November of the applicable tax year.
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 9054.0201. DIRECTORS; TERMS. (a) The district is
governed by a board of five directors.
(b) Directors serve staggered terms of four years and may
not serve more than two consecutive terms.
Sec. 9054.0202. VACANCIES. (a) The district shall fill a
vacancy on the board in accordance with Sections 49.105(a)-(c),
Water Code.
(b) If a position on the board becomes vacant on a date that
is more than two years before the next scheduled date for an
election for the office, the board shall:
(1) appoint a person to fill the vacant office until a
person elected to that office has qualified; and
(2) hold an election to elect a member to fill the
vacant office for the remainder of the unexpired term together with
the next regularly scheduled election for other directors' offices.
(c) Section 49.105(d) does not apply to the board.
Sec. 9054.0203. QUALIFICATIONS FOR DIRECTOR. (a) To be
qualified to serve as a director, a person:
(1) must be eligible to hold office under Section
141.001, Election Code, and Section 9054.0204; and
(2) must:
(A) own land subject to taxation in the district;
(B) be a user of the facilities of the district;
or
(C) be a qualified voter of the district under
Section 9054.0102.
(b) Section 49.052, Water Code, applies to the district.
Sec. 9054.0204. DISQUALIFICATION OF DIRECTORS. (a) A
member of the governing body of another political subdivision is
disqualified from serving as a director.
(b) A director is disqualified from serving as a director
if:
(1) the director is appointed or elected as a member of
the governing body of another political subdivision; or
(2) the board determines a relationship or employment
exists that constitutes a disqualification under Section
49.052(a), Water Code.
(c) A person is disqualified from serving as a director if
the person or a relative of the person within the third degree by
consanguinity or affinity, as determined by Chapter 573, Government
Code:
(1) received 10 percent or more of gross income for the
previous year from a business entity or other organization, other
than a governmental entity, that receives money from the district;
(2) is employed by or participates in the management
of a business entity or other organization, other than a
governmental entity, that receives money from the district;
(3) directly or indirectly owns or controls more than
a 10 percent interest in the fair market value of a business or
other organization that receives money from the district;
(4) serves as a corporate officer or member of the
board of directors of a business entity or other organization that
receives money from the district;
(5) is a creditor, debtor, or guarantor in an amount of
$5,000 or more of a person or business entity that receives money
from the district;
(6) uses or receives a substantial amount of tangible
goods, services, or money from the district other than compensation
or reimbursement authorized by law; or
(7) is required to register as a lobbyist under
Chapter 305, Government Code, because of the person's activities
for compensation on behalf of a profession related to the operation
of the district.
Sec. 9054.0205. DIRECTORS' EDUCATION PROGRAM. (a) The
board shall establish a program of education for the directors that
includes information on:
(1) the history of the district;
(2) the district's statutory authority;
(3) laws applicable to the district, including the
requirements of Chapters 551 and 552, Government Code;
(4) relevant legal developments related to water
district governance;
(5) the duties and responsibilities of the board;
(6) conflict of interest laws and other laws related
to public officials; and
(7) any applicable ethics policies adopted by the
commission or the Texas Ethics Commission.
(b) The district shall pay from district revenue the costs
associated with the development of the education program.
(c) The education program may include training provided by
an organization offering courses that have been approved by the
commission.
(d) The board may adopt bylaws modifying the education
program as necessary to meet district needs.
Sec. 9054.0206. MANDATORY EDUCATION FOR DIRECTORS. (a)
Each director shall complete the education program established
under Section 9054.0205 before the first anniversary of the date on
which the director was appointed or elected.
(b) The district shall reimburse a director for the
reasonable expenses incurred by the director in attending the
education program.
(c) A director who is elected to serve a subsequent term
shall fulfill the education requirements specified by district
bylaws.
Sec. 9054.0207. DIRECTORS' CONFLICTS OF INTEREST. A
director is subject to the provisions of Chapters 171 and 176, Local
Government Code, relating to the regulation of conflicts of
interest of officers of local governments.
Sec. 9054.0208. REMOVAL OF DIRECTOR. (a) A director may be
removed from the board by a majority of the other directors if the
director:
(1) does not have at the time of appointment the
qualifications required to be eligible to hold office under Section
141.001, Election Code;
(2) does not complete the education program as
required by Section 9054.0206;
(3) does not meet the qualifications for serving under
Section 9054.0203 or is disqualified from serving under Section
9054.0204;
(4) violates Section 9054.0301;
(5) misses one-half or more of the regularly scheduled
meetings during the preceding 12 months; or
(6) has been convicted or plead guilty to a civil or
criminal offense of:
(A) bribery;
(B) embezzlement, extortion, or other theft of
public money;
(C) perjury;
(D) coercion of public servant or voter;
(E) tampering with governmental record;
(F) misuse of official information;
(G) abuse of official capacity;
(H) conspiracy to commit or an attempted
commission of an offense described by Paragraphs (A)-(G); or
(I) an offense related to the management or
governance of the district.
(b) The board shall adopt procedures for the removal of a
director under this section that are designed to provide due
process to the director. Procedures adopted under this subsection
must include reasonable notice and public hearing.
(c) The board shall start the process of notice and public
hearing not later than the 30th day after the date the general
manager or a director not subject for removal receives notice of a
violation under Subsection (a). On or before the 60th day after the
date of the public hearing, the remaining board of directors shall
make a determination on whether a violation under Subsection (a)
occurred.
(d) Not later than the 30th day after the date the board
votes to remove a director, the board shall start the process to
fill the vacancy to replace the director with a qualified person.
(e) Reasonable notice and a public hearing are not required
if the director to be removed expressly and in writing waives the
notice and hearing.
Sec. 9054.0209. FILING DIRECTOR'S FINANCIAL STATEMENT. (a)
A director shall file the financial statement required of state
officers under Subchapter B, Chapter 572, Government Code, with the
Texas Ethics Commission.
(b) Subchapter B, Chapter 572, Government Code:
(1) applies to a director as if the director were a
state officer; and
(2) governs the contents, timeliness of filing, and
public inspection of a statement filed under Subsection (a).
(c) A director commits an offense if the director fails to
file the statement required by Subsection (a). An offense under
this subsection is a Class B misdemeanor.
Sec. 9054.0210. SPECIAL DIRECTOR. (a) The governing body
of a municipality that enters into a contract or agreement with a
district located within at least 80 percent of the corporate limits
or extraterritorial jurisdiction of a municipality may appoint a
special director to the board. The governing body may appoint not
more than one special director to serve at a time, irrespective of
the number of contracts or agreements that are in effect.
(b) Notwithstanding Section 51.072, Water Code, a special
director is not required to own land subject to taxation in the
district or be a qualified voter of the district.
(c) A special director serves as a director only during the
period a contract or agreement described by Subsection (a) is in
effect. If a contract or agreement is in effect for a term of more
than four years, a special director serves a four-year term of
office. The governing body of the municipality that appointed a
special director shall fill a vacancy in the office of special
director.
(d) A special director may vote only on a matter before the
board that is directly related to the subject of the contract or
agreement between the municipality and the district.
(e) A matter on which a special director may vote requires
at least four affirmative votes for passage.
SUBCHAPTER D. DISTRICT ADMINISTRATION
Sec. 9054.0301. PROHIBITED CONDUCT FOR DIRECTORS AND
DISTRICT EMPLOYEES. A director or a district employee may not:
(1) accept or solicit a gift, favor, or service that:
(A) might reasonably influence the director or
employee in the discharge of an official duty; or
(B) the director or employee knows or should know
is offered with the intent to influence the director's or employee's
official conduct;
(2) accept other employment or engage in a business or
professional activity that the director or employee might
reasonably expect would require or induce the director or employee
to disclose confidential information acquired in the course of the
director's or employee's duties under this chapter;
(3) accept other employment or compensation that could
reasonably be expected to impair the director's or employee's
independent judgment in the performance of the director's or
employee's duties under this chapter;
(4) make personal investments that could reasonably be
expected to create a substantial conflict between the director's or
employee's private interest and the interest of the district;
(5) intentionally or knowingly solicit, accept, or
agree to accept a benefit for the director's or employee's exercise
of powers under this chapter or performance of duties under this
chapter in favor of a third party;
(6) have a personal interest in an agreement executed
by the district; or
(7) be employed by, participate in the management of,
or have a substantial interest in a business entity or other
organization, other than a governmental entity, which receives
money from the district.
Sec. 9054.0302. PROHIBITED HIRING OR CONTRACTING
PRACTICES. If a director is an employee of another taxing entity or
economic development corporation located in Hidalgo County, the
board may not employ as an employee, as a consultant, or on a
contract basis:
(1) an elected official of the other taxing entity or
economic development corporation that employs the director; or
(2) a person related within the third degree of
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an elected official described by Subdivision
(1).
Sec. 9054.0303. POWERS AND DUTIES OF BOARD MEMBERS. (a)
The president is the chief executive officer of the district and
presides at all meetings of the board. The president may execute
documents on behalf of the district.
(b) The vice president shall act as president in the absence
or disability of the president.
Sec. 9054.0304. GENERAL MANAGER. (a) The district shall
employ a general manager.
(b) The general manager serves at the pleasure of and
reports only to the board.
(c) The general manager may not serve as a director on the
board of directors of the district.
(d) To be eligible to serve as the general manager, a person
must:
(1) have previous administrative experience and
training applicable to special districts as general manager; and
(2) be qualified to perform the duties described by
Section 9054.0305.
(e) The general manager is subject to the standards for
disqualification for serving as a director described by Section
9054.0204. A person applying to serve as general manager of the
district shall disclose any potential violations of Section
9054.0204 before accepting the position of general manager.
(f) The board shall determine the compensation and terms of
employment for the general manager. The board may increase the
compensation of the general manager in an amount not to exceed 10
percent of the amount of the general manager's compensation
immediately before the effective date of the increase. If the board
enters into an employment contract with the general manager, the
term of the contract may not exceed two years.
(g) A failure of the general manager to disclose any
potential violations of Section 9054.0204 is a ground for the
general manager's termination.
Sec. 9054.0305. DUTIES OF GENERAL MANAGER. (a) The board
may delegate duties to the general manager except as provided by
Subsection (c). The board may not assign the general manager's
duties to any other person.
(b) The general manager shall:
(1) manage the overall strategy and operations of the
district's projects, services, budget, finances, and community
relations subject only to orders of the board;
(2) consult with, advise, and support the board to
efficiently accomplish the purposes of the district and to ensure
compliance with all regulatory, financing, and legal requirements;
(3) assist the board in planning, developing, and
implementing policies to accomplish the purposes of the district;
(4) develop and implement policies to improve the
district's communication with the district's service community;
(5) provide leadership and supervision to district
employees;
(6) create and maintain organizational charts to
improve the district's effectiveness;
(7) coordinate and develop short-term and long-term
goals for the district;
(8) monitor current district projects and prioritize
future district projects;
(9) evaluate contracts, grants, and commitments as
authorized by the board;
(10) plan, organize, and direct district programs and
services, evaluate the results of those programs and services, and
recommend policies, procedures, and board actions based on that
evaluation;
(11) employ all persons necessary for the proper
handling of the business and operation of the district and
determine the compensation of those employees; and
(12) perform other general responsibilities as
determined by the board.
(c) The board may not authorize the general manager or other
employee of the district to execute a contract or documents on
behalf of the district that have a value of $10,000 or more.
Sec. 9054.0306. EXCLUSION OF TERRITORY. (a) This section
applies to the exclusion of territory by the district under the
authority of Subchapters J and J-1, Chapter 49, Water Code, and
Subchapter O, Chapter 51, Water Code.
(b) The district may exclude territory on the basis that the
land is in agricultural use only if the land meets the requirements
for agricultural use under Section 23.51, Tax Code.
(c) The district may exclude territory on the basis that the
land is nonirrigated property only if the land meets the
requirements for nonirrigated property under Section 49.309, Water
Code.
(d) The district may exclude territory on the basis of the
property being urban property only if the property meets the
requirements of Section 49.3181, Water Code.
(e) The district may not exclude territory during the period
of time between the first day that a candidate may file an
application under Section 141.040, Election Code, and the day of
the election in which that candidate appears on the ballot.
(f) The board may not initiate an exclusion of territory
unless the board receives an application or petition requesting the
exclusion as provided by Subchapter O, Chapter 51, Water Code.
SUBCHAPTER E. OPERATING PROVISIONS
Sec. 9054.0401. WATER CHARGES. The district may not charge
a rate for the delivery of water to all customers that is greater
than the lowest comparable delivery rate charged by any other
irrigation district in Hidalgo County.
Sec. 9054.0402. ADDITION OF TERRITORY. The district may
not annex or otherwise add territory to the district.
Sec. 9054.0403. CONSTRUCTION OR EXPANSION OF WATER DELIVERY
SYSTEM. The district may not construct or extend any water delivery
system beyond the district boundaries, as those boundaries existed
on April 1, 2022.
Sec. 9054.0404. INFORMATION REQUIRED ON DISTRICT WEBSITE.
(a) The district shall maintain and update an Internet website.
(b) The district shall post regularly for public viewing on
the district's Internet website in a manner that is searchable and
intuitive to users:
(1) the annual financial statement required by Section
140.005, Local Government Code;
(2) the annual audit report required by Section
49.191, Water Code, or the annual financial dormancy affidavit
submitted under Section 49.197, Water Code;
(3) budget information of the district described by
Sections 26.18(4)-(8), Tax Code;
(4) property tax rate information of the district
described by Sections 26.18(9), (10), (12), and (13), Tax Code;
(5) operating information of the district described by
Sections 2051.202(d)(2)-(14), Government Code, if applicable,
including the name of the general manager; and
(6) financial information of the district that
satisfies the requirements of Sections 403.0241(c)(9)-(11),
Government Code.
(c) The district shall update the information under this
section routinely as the information and documents become available
to and are provided by the designated officers or employees of the
district.
(d) Not later than the third day before the date a meeting is
held by the district, the district shall publish on the district's
Internet website the agenda for the meeting.
(e) Not later than the third day after the date the district
adopts the minutes of a meeting held by the district, the district
shall publish on the district's Internet website the minutes
adopted by the district.
Sec. 9054.0405. SEARCHABLE DISTRICT EXPENDITURE DATABASE.
(a) The district shall establish and post on the district's
Internet website a database of district check register reports,
including district expenditures and contracts. The database must
include the amount, date, description, payor, and payee of the
expenditures and, if applicable, parties to the contract.
(b) The district may not include in the database developed
under Subsection (a) a district employee's:
(1) personal identifying information, as defined by
Section 521.002, Business & Commerce Code; or
(2) salary.
(c) The district shall display prominently on the
district's Internet website a link to the database established
under this section.
(d) The information provided in the district check register
reports must be updated monthly.
(e) The district shall maintain in the database information
related to an adopted budget as required by this section until the
third anniversary of the date the budget was adopted.
Sec. 9054.0406. ANNUAL FINANCIAL AUDIT REPORT PROVIDED TO
COMMISSION. (a) The district is subject to the audit requirements
of Section 49.191, Water Code, unless the district meets the
requirements of Section 49.197, Water Code. The district is not
exempt under Section 49.198, Water Code, from the audit report
unless the district has no outstanding debt obligation or has not
issued a public security, as defined by Section 1201.002,
Government Code, during the fiscal year.
(b) The district shall include in the annual audit report
budget-to-actual comparisons in connection with general purpose
external financial reporting to demonstrate compliance with
applicable law. The district shall include a budgetary comparison
schedule of the proprietary fund or enterprise fund to demonstrate
compliance with applicable law and contractual provisions.
(c) The district shall include in the annual audit report a
statistical section that provides a range of trend data covering
key financial indicators from the immediately preceding 10 fiscal
years, including general government revenues and expenditures,
property tax collections, and debt burden.
(d) The district shall prepare and present the commission's
supplementary information schedules in the district's annual audit
report. If the district generated more than 70 percent of its
operating revenue for the delivery of raw water used for municipal
purpose, the district may not claim in its annual audit report the
exemption applicable to a district whose only purpose is to provide
irrigation or navigation facilities or services.
(e) The information required by this section must be
subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, the independent
auditor's opinion of the information.
(f) Not later than the third day after the date the
accountant finalizes the audit required by this section, the
district shall publish the audit on the district's Internet
website.
Sec. 9054.0407. REVIEW AND COMMENT ON BUDGET. The district
shall develop and implement a program that provides the district's
wholesale customers an opportunity to review and comment on the
district's annual budget that applies to the wholesale customers'
services before the board adopts that budget.
Sec. 9054.0408. INTERNET POSTING OF MEETING MATERIALS;
RECORDING OF CERTAIN HEARINGS. The district is subject to the
requirements of Section 551.1283, Government Code.
SUBCHAPTER F. DISSOLUTION OF DISTRICT
Sec. 9054.0501. DISSOLUTION; ELECTION. (a) The district
may be dissolved only on approval of a majority of the voters voting
in an election held for that purpose.
(b) The board shall order an election on the question of
dissolving the district and transferring all of the district's
obligations, liabilities, contractual rights, and assets to the
municipality or county, as authorized by this subchapter, if the
board receives a petition requesting an election that is signed by
at least 15 percent of the district's eligible voters.
(c) The order calling the election must state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open;
(4) the location of the polling places;
(5) the district's most recent ad valorem tax rate for
debt services or operation and maintenance or contract purposes;
(6) the name of each municipality, water supply
corporation, or municipal water supplier with which the district
does business; and
(7) the current rates, fees, and assessments charged
by the district to each municipality, water supply corporation, or
municipal water supplier.
(d) The district shall hold the election on the next uniform
election date in November in accordance with the procedures under
Section 9054.0101.
(e) Not later than the 10th day after the date the board
receives a petition to dissolve the district, the board shall
notify the county and any political subdivision with an existing
contract with the district that the district has received the
petition.
Sec. 9054.0502. NOTICE OF ELECTION. (a) The board shall
give notice of an election under this subchapter by publishing a
substantial copy of the election order:
(1) in a newspaper with general circulation in the
district once a week for two consecutive weeks; and
(2) on the district's Internet website.
(b) The first publication must appear not later than the
30th day before the date set for election.
(c) Not later than the 30th day after the date the election
order was issued, the district shall notify the commission of the
dissolution election. Beginning on the date the commission is
notified of the dissolution election, the executive director of the
commission shall monitor the district's progress in transferring
the district's assets and obligations.
Sec. 9054.0503. BALLOT. The ballot for an election under
this subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the Hidalgo County Water
Improvement District No. 3 and the transfer of the district's
obligations, liabilities, contractual rights, and assets to
(insert applicable municipality or county)."
Sec. 9054.0504. MANAGEMENT OF ASSETS BEFORE DISSOLUTION.
(a) After the board receives a petition for dissolution of the
district, the district shall:
(1) keep assets of the district in a condition
reflective of good stewardship and proper repair; and
(2) preserve district records, including information
maintained by the district, in an electronic format.
(b) The district may not in anticipation of dissolution:
(1) sell, transfer, or encumber any district asset;
(2) issue debt or acquire additional obligations; or
(3) default on or fail to honor financial, legal, or
other obligations of the district.
(c) Any action undertaken by the district that violates
Subsection (b) is void.
Sec. 9054.0505. ELECTION RESULTS. (a) If a majority of the
voters voting in an election under this subchapter favor
dissolution, the board shall order that the district be dissolved.
(b) If a majority of the voters voting in an election under
this subchapter do not favor dissolution, the board shall continue
to administer the district, and another election on the question of
dissolution may not be held before the first anniversary of the date
of the most recent election to dissolve the district.
Sec. 9054.0506. TRANSFER OR ADMINISTRATION OF ASSETS. (a)
Subject to Subsection (b), if a majority of the voters voting in an
election under this subchapter favor dissolution, the board shall
transfer the land, buildings, improvements, equipment,
obligations, liabilities, contractual rights, and assets belonging
to the district to Hidalgo County.
(b) If a municipality or municipal water supplier with an
existing contract with the district presents to the board and the
Hidalgo County Commissioners Court an ordinance adopted by a vote
of at least two-thirds of its entire membership consenting to the
assumption of the district's obligations, liabilities, contractual
rights, and assets not later than the 60th day after the date the
board provides notice of the petition for dissolution, the board
shall transfer the land, buildings, improvements, equipment,
obligations, liabilities, contractual rights, and assets to the
municipality or municipal water supplier that presented the
ordinance. This subsection applies only if the municipality or
municipal water supplier is the source of at least 70 percent of the
total operating revenue received by the district from the diversion
of raw water used for municipal purposes according to the
district's most recent annual financial audit report.
(c) The transfer of the district's water rights and any
certificate of adjudication to the municipal water supplier does
not affect or impair the priority, extent, validity, or purpose of
the water rights or certificate.
Sec. 9054.0507. IMPOSITION OF TAX AND RETURN OF SURPLUS
TAXES. (a) After the district is dissolved under this subchapter,
the board shall:
(1) determine the debt owed by the district; and
(2) impose on the property included in the district's
tax rolls a tax that is proportional to the debt owed by the
district and the value of the property.
(b) On the payment of all outstanding debts and obligations
of the district, the board shall order the secretary to return to
each district taxpayer the taxpayer's pro rata share of all unused
tax money.
(c) A taxpayer may request that the taxpayer's share of
surplus tax money be credited to the taxpayer's county taxes. If a
taxpayer requests the credit, the board shall direct the secretary
to transmit the funds to the tax assessor-collector for Hidalgo
County.
Sec. 9054.0508. REPORT; DISSOLUTION ORDER. (a) Not later
than the 60th day after the date the district has finally
transferred all of the district's assets and obligations, the board
shall file a written report with the Hidalgo County Commissioners
Court and the commission summarizing the board's actions in
dissolving the district.
(b) Not later than the 10th day after the date the Hidalgo
County Commissioners Court receives the report and determines that
the requirements of this subchapter have been fulfilled, the
commissioners court shall enter an order dissolving the district
and releasing the board from any further duty or obligation.
(c) Notwithstanding Section 51.790, Water Code, on the date
a transfer is finalized, ownership of any certificate of
adjudication held by the district, including any attachments or
amendments to the certificate, transfer to the municipal water
supplier. The municipal water supplier shall notify the commission
of the transfer of any certificate of adjudication held by the
district.
(d) On receipt of notice under this subsection, the
commission shall note in its records that a certificate of
adjudication was transferred and, as a ministerial act, transfer
the certificate to the municipal water supplier without further
application, notice, or hearing.
SECTION 2. (a) A person who has served as a director of the
Hidalgo County Water Improvement District No. 3 for more than eight
consecutive years as of the effective date of this Act is
disqualified from serving another term as a director of that
district.
(b) A director described by Subsection (a) of this section
serving on the board of directors of the Hidalgo County Water
Improvement District No. 3 immediately before the effective date of
this Act may continue to serve as director of that district for the
remainder of the director's term.
SECTION 3. Not later than the 30th day after the effective
date of this Act, the board of directors of the Hidalgo County Water
Improvement District No. 3 shall adopt procedures for the removal
of a director of that district under Section 9054.0208, Special
District Local Laws Code, as added by this Act.
SECTION 4. Sections 1 through 7, Chapter 1022 (S.B. 2185),
Acts of the 87th Legislature, Regular Session, 2021, are repealed.
SECTION 5. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act are fulfilled
and accomplished.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.