Bill Text: TX SB604 | 2021-2022 | 87th Legislature | Enrolled
Bill Title: Relating to bonds issued by and the dissolution of municipal management districts.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2021-06-14 - Effective on 9/1/21 [SB604 Detail]
Download: Texas-2021-SB604-Enrolled.html
S.B. No. 604 |
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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 [ |
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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 [ |
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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 |