Bill Text: TX HB2423 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to federal bankruptcy for home rule municipalities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-22 - Referred to Urban Affairs [HB2423 Detail]
Download: Texas-2017-HB2423-Introduced.html
| By: Schofield | H.B. No. 2423 | |
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| relating to federal bankruptcy for home rule municipalities. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Sec. 140.001., Local Government Code is amended | ||
| by adding subsection (d) to read as follows: | ||
| Sec. 140.001. RELIEF UNDER FEDERAL BANKRUPTCY LAWS FOR | ||
| MUNICIPALITY, TAXING DISTRICT, OR OTHER POLITICAL SUBDIVISION. (a) | ||
| A municipality, taxing district, or other political subdivision | ||
| that is subject to this section may proceed under all federal | ||
| bankruptcy laws intended to relieve municipal indebtedness. | ||
| (b) A municipality is subject to this section if it has the | ||
| power to incur indebtedness through the action of its governing | ||
| body. A taxing district or other political subdivision is subject | ||
| to this section if it has the power to incur indebtedness either | ||
| through the action of its governing body or through that of the | ||
| county or municipality in which it is located. | ||
| (c) The officials and governing body of the municipality, | ||
| taxing district, or other political subdivision may adopt all | ||
| proceedings and take any action necessary or convenient to fully | ||
| avail the entity of the federal bankruptcy laws. | ||
| (d) A home rule municipality that adopts proceedings to | ||
| avail the municipality of federal bankruptcy laws or otherwise | ||
| seeks bankruptcy protection forfeits its home rule charter. | ||
| SECTION 2. This Act takes effect September 1, 2017. | ||
