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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 87(R)

Senate Bill 604

Senate Author:  Bettencourt et al.

Effective:  9-1-21

House Sponsor:  Capriglione


            Senate Bill 604 amends the Local Government Code to prohibit a municipal management district, if a petition for the district's dissolution is filed with its board of directors as prescribed by law, from issuing bonds secured by assessments after the date the board confirms that the applicable petition is valid and complete. The bill sets out additional related provisions, including provisions regarding the wind up of district operations, a requirement to repay or defease the bonded indebtedness, and a requirement that the district remain in existence solely for the purpose of discharging its outstanding bonded indebtedness secured by assessments.