| 1 | | - | By: Bettencourt, Birdwell S.B. No. 1329 |
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| 1 | + | By: Bettencourt S.B. No. 1329 |
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| 2 | + | (In the Senate - Filed February 28, 2019; March 7, 2019, |
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| 3 | + | read first time and referred to Committee on Property Tax; |
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| 4 | + | April 15, 2019, reported favorably by the following vote: Yeas 5, |
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| 5 | + | Nays 0; April 15, 2019, sent to printer.) |
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| 6 | + | Click here to see the committee vote |
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| 2 | 7 | | |
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| 3 | 8 | | |
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| 4 | 9 | | A BILL TO BE ENTITLED |
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| 5 | 10 | | AN ACT |
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| 6 | 11 | | relating to bonds issued by and the dissolution of municipal |
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| 7 | 12 | | management districts. |
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| 8 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 14 | | SECTION 1. Subchapter M, Chapter 375, Local Government |
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| 10 | 15 | | Code, is amended by adding Section 375.2621 to read as follows: |
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| 11 | 16 | | Sec. 375.2621. PROHIBITION ON ISSUANCE OF BONDS AFTER |
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| 12 | 17 | | PETITION. The district may not issue bonds after the date a |
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| 13 | 18 | | petition for dissolution under Section 375.262 is filed with the |
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| 14 | 19 | | board. |
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| 15 | 20 | | SECTION 2. Section 375.264, Local Government Code, is |
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| 16 | 21 | | amended to read as follows: |
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| 17 | 22 | | Sec. 375.264. LIMITATIONS [LIMITATION] ON DISSOLUTION BY |
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| 18 | 23 | | BOARD OF DISTRICT WITH DEBT. (a) A district may not be dissolved |
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| 19 | 24 | | by its board under Section 375.261 or after a petition is filed |
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| 20 | 25 | | under Section 375.262 if the district has [any] outstanding bonded |
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| 21 | 26 | | indebtedness until that bonded indebtedness has been repaid or |
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| 22 | 27 | | defeased in accordance with the order or resolution authorizing the |
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| 23 | 28 | | issuance of the bonds. |
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| 24 | 29 | | (b) After a petition is filed under Section 375.262 with the |
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| 25 | 30 | | board of a district that has outstanding bonded indebtedness: |
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| 26 | 31 | | (1) the district shall remain in existence solely for |
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| 27 | 32 | | the purpose of discharging its bonded indebtedness; and |
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| 28 | 33 | | (2) the board shall use all district money that is |
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| 29 | 34 | | available for the purpose to repay or defease all bonded |
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| 30 | 35 | | indebtedness as soon as practicable in accordance with the order or |
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| 31 | 36 | | resolution authorizing the issuance of the bonds. |
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| 32 | 37 | | SECTION 3. The changes in law made by this Act apply only to |
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| 33 | 38 | | a municipal management district that is the subject of a petition |
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| 34 | 39 | | described by Section 375.262, Local Government Code, filed with the |
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| 35 | 40 | | board on or after the effective date of this Act. A district that is |
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| 36 | 41 | | the subject of such a petition filed with the board before the |
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| 37 | 42 | | effective date of this Act is governed by the law in effect on the |
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| 38 | 43 | | date the petition was filed, and the former law is continued in |
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| 39 | 44 | | effect for that purpose. |
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| 40 | 45 | | SECTION 4. The changes in law made by this Act may not be |
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| 41 | 46 | | construed to impair an obligation under a contract entered into |
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| 42 | 47 | | before the effective date of this Act. A political subdivision may |
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| 43 | 48 | | fulfill the subdivision's obligations under a contract entered into |
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| 44 | 49 | | before that date but may not extend such a contract beyond the |
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| 45 | 50 | | contract's original term. |
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| 46 | 51 | | SECTION 5. This Act takes effect September 1, 2019. |
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