Bill Text: TX SB604 | 2021-2022 | 87th Legislature | Enrolled

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Bill Title: Relating to bonds issued by and the dissolution of municipal management districts.

Sponsorship: Partisan Bill (Republican 3)

Status: (Passed) 2021-06-14 - Effective on 9/1/21 [SB604 Detail]

Download: Texas-2021-SB604-Enrolled.html

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S.B. No. 604

AN ACT
relating to bonds issued by and the dissolution of municipal
management districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter M, Chapter 375, Local Government
Code, is amended by adding Section 375.2621 to read as follows:
Sec. 375.2621. PROHIBITION ON ISSUANCE OF BONDS AFTER
PETITION. If a petition for dissolution under Section 375.262 is
filed with the board, the board must consider the petition not later
than the 60th day after the date the petition is filed. The
district may not issue bonds secured by assessments after the date
the board confirms that the petition is valid and complete under
Section 375.262.
SECTION 2. Section 375.264, Local Government Code, is
amended to read as follows:
Sec. 375.264. LIMITATIONS [LIMITATION] ON DISSOLUTION BY
BOARD OF DISTRICT WITH DEBT. (a) A district may not be dissolved by
its board under Section 375.261 or after a petition is filed under
Section 375.262 if the district has [any] 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 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.
(c) Subsection (b) does not apply to a district that has
outstanding bonded indebtedness secured by a source other than
assessments on the date the petition is filed with the board.
SECTION 3. The changes in law made by this Act apply only to
a municipal management district that is the subject of a petition
described by Section 375.262, Local Government Code, filed with the
board on or after the effective date of this Act. A district that is
the subject of such a petition filed with the board before the
effective date of this Act is governed by the law in effect on the
date the petition was filed, and the former law is continued in
effect for that purpose.
SECTION 4. The changes in law made by this Act may not be
construed to impair an obligation under a contract entered into
before the effective date of this Act. A political subdivision may
fulfill the subdivision's obligations under a contract entered into
before that date but may not extend such a contract beyond the
contract's original term.
SECTION 5. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 604 passed the Senate on
April 19, 2021, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 29, 2021, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 604 passed the House, with
amendment, on May 26, 2021, by the following vote: Yeas 146,
Nays 1, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor