Texas 2023 - 88th Regular

Texas Senate Bill SB2434 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Bettencourt S.B. No. 2434
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the dissolution of the SH130 Municipal Management
7	7	District No. 1.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subchapter I, Chapter 3971, Special District
10	10	Local Laws Code, is amended by adding Sections 3971.0902,
11	11	3971.0903, and 3971.0904 to read as follows:
12	12	Sec. 3971.0902. MANDATORY DISSOLUTION. Except as provided
13	13	by Section 3971.0903, not later than January 1, 2024, the board
14	14	shall:
15	15	(1) wind up district operations;
16	16	(2) transfer all remaining district assets to a trust
17	17	created for the purposes of this section, with the commissioners
18	18	court of the most populous county in which the district is located
19	19	acting as trustee; and
20	20	(3) dissolve the district.
21	21	Sec. 3971.0903. DISTRICT OBLIGATIONS AND LIABILITIES. (a)
22	22	If on January 1, 2024, the board finds that the board would not be
23	23	authorized to dissolve the district under Section 3971.0901 because
24	24	of an existing condition described by Section 3971.0901(c):
25	25	(1) the board may not dissolve the district under
26	26	Section 3971.0902;
27	27	(2) the board shall delay the transfer of assets to the
28	28	trust as provided by Section 3971.0902 until the board may dissolve
29	29	the district; and
30	30	(3) the district continues in existence solely for the
31	31	purposes of resolving the condition, winding up district
32	32	operations, and making the transfer of assets to the trust as
33	33	provided by Section 3971.0902.
34	34	(b) The board shall resolve the conditions and continue to
35	35	wind up district operations as quickly as practicable until the
36	36	board would be authorized to dissolve the district under Section
37	37	3971.0901, at which time the board shall make the transfer of assets
38	38	to the trust as provided by Section 3971.0902 and dissolve the
39	39	district.
40	40	Sec. 3971.0904. DISPOSITION OF REMAINING DISTRICT ASSETS.
41	41	(a) Not later than the 30th day before the date of the transfer of
42	42	assets described by Section 3971.0902, the district shall:
43	43	(1) compile a list of each taxing unit, as defined by
44	44	Section 1.04, Tax Code, from which a public facility corporation
45	45	created by the district received a tax exemption under Section
46	46	303.042, Local Government Code, before September 1, 2023; and
47	47	(2) provide the list compiled under Subdivision (1) to
48	48	the trustee of the trust created under Section 3971.0902.
49	49	(b) As soon as practicable after the transfer of assets
50	50	described by Section 3971.0902 or 3971.0903, the trustee of the
51	51	trust created under Section 3971.0902 shall send to each taxing
52	52	unit, as defined by Section 1.04, Tax Code, from which a public
53	53	facility corporation created by the district received a tax
54	54	exemption under Section 303.042, Local Government Code, a payment
55	55	from the trust assets.
56	56	(c) The trustee:
57	57	(1) may apply a reasonable portion of the trust assets
58	58	to the trustee's costs incurred administering this section; and
59	59	(2) shall send any trust assets remaining after making
60	60	the payments required by this section to a special fund of the
61	61	county for use under Subsection (e).
62	62	(d) Each payment must be in an amount equal to the amount of
63	63	tax revenue the receiving taxing unit would have collected from the
64	64	public facility corporation without the exemption provided by
65	65	Section 303.042, Local Government Code. If the total amount of
66	66	remaining assets of the district are less than the amount required
67	67	to make the payments required under this subsection, the trustee
68	68	shall make the payments on a pro-rata basis, based on the payment
69	69	otherwise to be paid to each taxing unit.
70	70	(e) A county that receives assets under Subsection (c)(2)
71	71	may use the assets only for a service or project that benefits the
72	72	former territory of the district.
73	73	SECTION 2. (a) The legal notice of the intention to
74	74	introduce this Act, setting forth the general substance of this
75	75	Act, has been published as provided by law, and the notice and a
76	76	copy of this Act have been furnished to all persons, agencies,
77	77	officials, or entities to which they are required to be furnished
78	78	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
79	79	Government Code.
80	80	(b) The governor, one of the required recipients, has
81	81	submitted the notice and Act to the Texas Commission on
82	82	Environmental Quality.
83	83	(c) The Texas Commission on Environmental Quality has filed
84	84	its recommendations relating to this Act with the governor,
85	85	lieutenant governor, and speaker of the house of representatives
86	86	within the required time.
87	87	(d) All requirements of the constitution and laws of this
88	88	state and the rules and procedures of the legislature with respect
89	89	to the notice, introduction, and passage of this Act have been
90	90	fulfilled and accomplished.
91	91	SECTION 3. This Act takes effect September 1, 2023.