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A BILL TO BE ENTITLED
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AN ACT
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relating to bonds issued by and the dissolution of municipal |
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management districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter M, Chapter 375, Local Government |
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Code, is amended by adding Section 375.2621 to read as follows: |
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Sec. 375.2621. PROHIBITION ON ISSUANCE OF BONDS AFTER |
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PETITION. The district may not issue bonds after the date a |
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petition for dissolution under Section 375.262 is filed with the |
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board. |
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SECTION 2. Section 375.264, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.264. LIMITATIONS [LIMITATION] ON DISSOLUTION BY |
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BOARD OF DISTRICT WITH DEBT. (a) A district may not be dissolved by |
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its board under Section 375.261 or after a petition is filed under |
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Section 375.262 if the district has [any] outstanding bonded |
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indebtedness until that bonded indebtedness has been repaid or |
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defeased in accordance with the order or resolution authorizing the |
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issuance of the bonds. |
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(b) After a petition is filed under Section 375.262 with the |
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board of a district that has outstanding bonded indebtedness: |
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(1) the district shall remain in existence solely for |
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the purpose of discharging its bonded indebtedness; and |
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(2) the board shall use all district money that is |
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available for the purpose to repay or defease all bonded |
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indebtedness as soon as practicable in accordance with the order or |
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resolution authorizing the issuance of the bonds. |
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SECTION 3. The changes in law made by this Act apply only to |
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a municipal management district that is the subject of a petition |
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described by Section 375.262, Local Government Code, filed with the |
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board on or after the effective date of this Act. A district that is |
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the subject of such a petition filed with the board before the |
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effective date of this Act is governed by the law in effect on the |
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date the petition was filed, and the former law is continued in |
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effect for that purpose. |
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SECTION 4. The changes in law made by this Act may not be |
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construed to impair an obligation under a contract entered into |
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before the effective date of this Act. A political subdivision may |
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fulfill the subdivision's obligations under a contract entered into |
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before that date but may not extend such a contract beyond the |
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contract's original term. |
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SECTION 5. This Act takes effect September 1, 2019. |