SB1452 - Relating to continuation elections for municipal management districts.

  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.