Text of section effective on April 01, 2021

Sec. 8509.0052. WITHDRAWAL FROM OR DISSOLUTION OF DISTRICT. (a) A county or municipality may withdraw from the district or the district may dissolve according to this section.

(b) To withdraw from the district or to dissolve the district, the governing body of a member entity must issue an order or adopt a resolution declaring the intent to withdraw from or to dissolve the district. The order or resolution must state:

(1) the intention to withdraw from the district or to call for the dissolution of the district; and

(2) the reasons supporting the withdrawal or dissolution.

(c) Not later than the 30th day after the date the district receives an order issued or resolution adopted under Subsection (b), the district shall hold a public hearing on the matter described by the order or resolution.

(d) For a proposed withdrawal of a county or municipality from the district, the member entities must reach a financial agreement that provides for sufficient revenue for maintaining the Palo Duro Reservoir and the dam that impounds the water in the reservoir.

(e) For a proposed dissolution of the district, the member entities must reach a financial agreement that provides for the transfer of:

(1) the ownership rights of the dam that impounds the water in the Palo Duro Reservoir to an entity that assumes responsibility for the maintenance of the dam and liability for actions related to the dam;

(2) all district assets and liabilities to other entities; and

(3) the responsibility for the continued provision of services, if the district provides services.

(f) The board must provide an opportunity for the public to comment on the financial agreement described by Subsection (d) or (e) before the board votes as described by Subsection (g). The period for public comment must last not less than 10 days.

(g) After consideration of the public comments submitted under Subsection (f), the board shall vote on the issue described by the order issued or resolution adopted under Subsection (b). The board may proceed with the withdrawal or dissolution only if two-thirds of all of the members of the board vote in favor of withdrawal or dissolution.

(h) If the board votes in favor of withdrawal or dissolution as provided by Subsection (g), the governing body of each member entity shall vote on the matter of withdrawal or dissolution.

(i) A withdrawal or dissolution authorized under this section does not take effect until:

(1) the governing body of each county and municipality has voted in favor of withdrawal or dissolution;

(2) all conditions specified in the financial agreement described by Subsection (d) or (e) have been met; and

(3) all actions described in the financial agreement described by Subsection (d) or (e) have been completed.

Added by Acts 2019, 86th Leg., R.S., Ch. 468 (H.B. 4172), Sec. 1.03, eff. April 1, 2021.