Bill Text: TX SB1329 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to bonds issued by and the dissolution of municipal management districts.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2019-05-06 - Referred to Pensions, Investments & Financial Services [SB1329 Detail]
Download: Texas-2019-SB1329-Introduced.html
Bill Title: Relating to bonds issued by and the dissolution of municipal management districts.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2019-05-06 - Referred to Pensions, Investments & Financial Services [SB1329 Detail]
Download: Texas-2019-SB1329-Introduced.html
86R288 SMT-D | ||
By: Bettencourt | S.B. No. 1329 |
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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. The district may not issue bonds after the date a | ||
petition for dissolution under Section 375.262 is filed with the | ||
board. | ||
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) After a petition is filed under Section 375.262 with the | ||
board of a district that has outstanding bonded indebtedness: | ||
(1) the district shall remain in existence solely for | ||
the purpose of discharging its bonded indebtedness; and | ||
(2) the board shall use all district money that is | ||
available for the purpose to repay or defease all bonded | ||
indebtedness as soon as practicable in accordance with the order or | ||
resolution authorizing the issuance of the bonds. | ||
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, 2019. |