Texas 2021 - 87th Regular

Texas Senate Bill SB604 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 604
	1	+	By: Bettencourt, et al. S.B. No. 604
	2	+	(Capriglione)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to bonds issued by and the dissolution of municipal
6	8		management districts.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Subchapter M, Chapter 375, Local Government
9	11		Code, is amended by adding Section 375.2621 to read as follows:
10	12		Sec. 375.2621. PROHIBITION ON ISSUANCE OF BONDS AFTER
11	13		PETITION. If a petition for dissolution under Section 375.262 is
12	14		filed with the board, the board must consider the petition not later
13	15		than the 60th day after the date the petition is filed. The
14	16		district may not issue bonds secured by assessments after the date
15	17		the board confirms that the petition is valid and complete under
16	18		Section 375.262.
17	19		SECTION 2. Section 375.264, Local Government Code, is
18	20		amended to read as follows:
19	21		Sec. 375.264. LIMITATIONS [LIMITATION] ON DISSOLUTION BY
20	22		BOARD OF DISTRICT WITH DEBT. (a) A district may not be dissolved by
21	23		its board under Section 375.261 or after a petition is filed under
22	24		Section 375.262 if the district has [any] outstanding bonded
23	25		indebtedness until that bonded indebtedness has been repaid or
24	26		defeased in accordance with the order or resolution authorizing the
25	27		issuance of the bonds.
26	28		(b) If a petition for dissolution is filed under Section
27	29		375.262 with the board of a district and the district has
28	30		outstanding bonded indebtedness secured by assessments:
29	31		(1) the district shall remain in existence solely for
30		-	the purposes of winding up district operations and discharging its
31		-	bonded indebtedness; and
	32	+	the purpose of discharging its bonded indebtedness; and
32	33		(2) the board shall use all district money that is
33		-	available to:
34		-	(A) wind up district operations; and
35		-	(B) repay or defease the bonded indebtedness as
36		-	soon as practicable in accordance with the order or resolution
37		-	authorizing the issuance of the bonds.
	34	+	available for the purpose to repay or defease the bonded
	35	+	indebtedness as soon as practicable in accordance with the order or
	36	+	resolution authorizing the issuance of the bonds.
38	37		(c) Subsection (b) does not apply to a district that has
39	38		outstanding bonded indebtedness secured by a source other than
40	39		assessments on the date the petition is filed with the board.
41	40		SECTION 3. The changes in law made by this Act apply only to
42	41		a municipal management district that is the subject of a petition
43	42		described by Section 375.262, Local Government Code, filed with the
44	43		board on or after the effective date of this Act. A district that is
45	44		the subject of such a petition filed with the board before the
46	45		effective date of this Act is governed by the law in effect on the
47	46		date the petition was filed, and the former law is continued in
48	47		effect for that purpose.
49	48		SECTION 4. The changes in law made by this Act may not be
50	49		construed to impair an obligation under a contract entered into
51	50		before the effective date of this Act. A political subdivision may
52	51		fulfill the subdivision's obligations under a contract entered into
53	52		before that date but may not extend such a contract beyond the
54	53		contract's original term.
55	54		SECTION 5. This Act takes effect September 1, 2021.
56		-	______________________________ ______________________________
57		-	President of the Senate Speaker of the House
58		-	I hereby certify that S.B. No. 604 passed the Senate on
59		-	April 19, 2021, by the following vote: Yeas 31, Nays 0; and that
60		-	the Senate concurred in House amendment on May 29, 2021, by the
61		-	following vote: Yeas 31, Nays 0.
62		-	______________________________
63		-	Secretary of the Senate
64		-	I hereby certify that S.B. No. 604 passed the House, with
65		-	amendment, on May 26, 2021, by the following vote: Yeas 146,
66		-	Nays 1, two present not voting.
67		-	______________________________
68		-	Chief Clerk of the House
69		-	Approved:
70		-	______________________________
71		-	Date
72		-	______________________________
73		-	Governor