| 1 | 1 | | 89R8304 MCF-D |
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| 2 | 2 | | By: Bettencourt S.B. No. 1452 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to continuation elections for municipal management |
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| 10 | 10 | | districts. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Sections 375.264(a) and (b), Local Government |
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| 13 | 13 | | Code, are amended to read as follows: |
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| 14 | 14 | | (a) A district may not be dissolved by its board under |
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| 15 | 15 | | Section 375.261 or 375.2631 or after a petition is filed under |
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| 16 | 16 | | Section 375.262 if the district has outstanding bonded indebtedness |
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| 17 | 17 | | until that bonded indebtedness has been repaid or defeased in |
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| 18 | 18 | | accordance with the order or resolution authorizing the issuance of |
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| 19 | 19 | | the bonds. |
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| 20 | 20 | | (b) If a petition for dissolution is filed under Section |
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| 21 | 21 | | 375.262 with the board of a district or a majority of voters do not |
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| 22 | 22 | | favor the continuation of a district under Section 375.2631 and the |
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| 23 | 23 | | district has outstanding bonded indebtedness secured by |
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| 24 | 24 | | assessments: |
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| 25 | 25 | | (1) the district shall remain in existence solely for |
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| 26 | 26 | | the purposes of winding up district operations and discharging its |
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| 27 | 27 | | bonded indebtedness; and |
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| 28 | 28 | | (2) the board shall use all district money that is |
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| 29 | 29 | | available to: |
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| 30 | 30 | | (A) wind up district operations; and |
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| 31 | 31 | | (B) repay or defease the bonded indebtedness as |
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| 32 | 32 | | soon as practicable in accordance with the order or resolution |
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| 33 | 33 | | authorizing the issuance of the bonds. |
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| 34 | 34 | | SECTION 2. Subchapter M, Chapter 375, Local Government |
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| 35 | 35 | | Code, is amended by adding Section 375.2631 to read as follows: |
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| 36 | 36 | | Sec. 375.2631. CONTINUATION ELECTION; DISSOLUTION. (a) |
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| 37 | 37 | | Each 10th year the board of a district shall call an election in the |
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| 38 | 38 | | district to determine whether the district may continue. In all |
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| 39 | 39 | | areas of conflict this section takes precedence over all prior |
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| 40 | 40 | | statutory enactments. |
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| 41 | 41 | | (b) In an election ordered under Subsection (a), the |
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| 42 | 42 | | following proposition shall be submitted to the voters: "Shall the |
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| 43 | 43 | | (name of district) be continued?" |
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| 44 | 44 | | (c) If the majority of votes cast in the election do not |
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| 45 | 45 | | favor the proposition, the board: |
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| 46 | 46 | | (1) except as limited by Section 375.264, shall |
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| 47 | 47 | | dissolve the district; and |
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| 48 | 48 | | (2) may not incur new debt. |
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| 49 | 49 | | (d) A district created on or before November 1, 2016, shall |
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| 50 | 50 | | hold elections under Subsection (a) beginning on the uniform |
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| 51 | 51 | | election date in November 2026. A district created after November |
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| 52 | 52 | | 1, 2016, shall hold elections under Subsection (a) beginning on the |
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| 53 | 53 | | uniform election date in November following the 10th anniversary of |
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| 54 | 54 | | the district's creation. |
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| 55 | 55 | | SECTION 3. This Act takes effect September 1, 2025. |
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