Relating to the dissolution of a public utility agency.

Contracts

• Counterparty Substitution: Legal departments must identify all active Master Service Agreements (MSAs) with PUAs. While the statute mandates the transfer of obligations, you must verify if your contract contains "Change of Control" or "Notice" provisions that require the PUA to inform you prior to dissolution.
• Bond Indentures: Counsel for bondholders must review trust indentures immediately. The dissolution of the issuer (the PUA) may trigger technical defaults or require legal opinions to confirm the tax-exempt status of the debt under the new obligor.

Hiring/Training

• Accounts Receivable Training: Billing departments must be trained to recognize payments from the *successor entity* (e.g., a specific MUD or Municipality) to clear invoices originally issued to the dissolved PUA. Failure to update this will result in payment application errors.

Reporting & Record-Keeping

• Vendor Master Updates: You must obtain a certified copy of the dissolution ordinance to legally justify changing the tax ID and billing entity in your vendor management system.
• Chain of Title: Real estate and easement managers must ensure the absorbing entity files the ordinance or a deed transfer in county real property records to maintain a clear chain of title for any land or easements your contracts rely upon.

Fees & Costs

• Administrative Costs: Expect internal administrative costs related to updating vendor files, re-issuing certificates of insurance, and legal review of credit risks. There are no new statutory fees imposed by the state.