89R8304 MCF-D
By: Bettencourt S.B. No. 1452
A BILL TO BE ENTITLED
AN ACT
relating to continuation elections for municipal management
districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 375.264(a) and (b), Local Government
Code, are amended to read as follows:
(a) A district may not be dissolved by its board under
Section 375.261 or 375.2631 or after a petition is filed under
Section 375.262 if the district has outstanding bonded indebtedness
until that bonded indebtedness has been repaid or defeased in
accordance with the order or resolution authorizing the issuance of
the bonds.
(b) If a petition for dissolution is filed under Section
375.262 with the board of a district or a majority of voters do not
favor the continuation of a district under Section 375.2631 and the
district has outstanding bonded indebtedness secured by
assessments:
(1) the district shall remain in existence solely for
the purposes of winding up district operations and discharging its
bonded indebtedness; and
(2) the board shall use all district money that is
available to:
(A) wind up district operations; and
(B) repay or defease the bonded indebtedness as
soon as practicable in accordance with the order or resolution
authorizing the issuance of the bonds.
SECTION 2. Subchapter M, Chapter 375, Local Government
Code, is amended by adding Section 375.2631 to read as follows:
Sec. 375.2631. CONTINUATION ELECTION; DISSOLUTION. (a)
Each 10th year the board of a district shall call an election in the
district to determine whether the district may continue. In all
areas of conflict this section takes precedence over all prior
statutory enactments.
(b) In an election ordered under Subsection (a), the
following proposition shall be submitted to the voters: "Shall the
(name of district) be continued?"
(c) If the majority of votes cast in the election do not
favor the proposition, the board:
(1) except as limited by Section 375.264, shall
dissolve the district; and
(2) may not incur new debt.
(d) A district created on or before November 1, 2016, shall
hold elections under Subsection (a) beginning on the uniform
election date in November 2026. A district created after November
1, 2016, shall hold elections under Subsection (a) beginning on the
uniform election date in November following the 10th anniversary of
the district's creation.
SECTION 3. This Act takes effect September 1, 2025.