BILL ANALYSIS

 

 

Senate Research Center	H.B. 956
86R4865 JCG-D	By: Miller et al. (Miles)
	Intergovernmental Relations
	5/16/2019
	Engrossed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

It has been noted that current law does not provide for the dissolution of a county assistance district, which may result in an outdated administrative burden for the managing entity even if the associated tax rate has been repealed or the applicable area has been reduced by changing the boundaries. H.B. 956 seeks to remedy this issue by providing procedures for the dissolution of such a district.

 

H.B. 956 amends current law relating to the dissolution of county assistance districts.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Chapter 387, Local Government Code, by adding Section 387.013, as follows:

 

Sec. 387.013. DISSOLUTION. (a) Authorizes the governing body of a county assistance districts (district) to petition the commissioners court of the county in which the district was created to dissolve the district if a majority of the governing body finds the performance of the district's functions cannot be accomplished to the benefit of the residents and owners of land in the district.

 

(b) Requires the commissioners court of a county to hold a hearing on the dissolution of a district if:

 

(1) the commissioners court receives a petition under Subsection (a); or

 

(2) in a district in which the commissioners court acts as the governing body of the district, a majority of the commissioners court finds that the performance of the district's functions cannot be accomplished to the benefit of the residents and owners of land in the district.

 

(c) Requires a hearing under Subsection (b) to be held not later than the 61st day after the commissioners court receives the petition under Subsection (b)(1) or makes the finding described by Subsection (b)(2).

 

(d) Requires the commissioners court to give notice of the hearing as required by law and include in the notice information regarding the right of the residents and owners of land in the district to appear and present evidence for or against the district's dissolution.

 

(e) Requires the commissioners court to order the district dissolved and the district's assets transferred to the county if:

 

(1) the commissioners court unanimously votes that dissolution of the district is in the best interests of the district, the county in which the district is located, and the residents and owners of land in the district; and

 

(2) the district has no outstanding bonds payable wholly or partly from district revenue and the dissolution does not impair any outstanding district debt or contractual obligation.

 

SECTION 2. Effective date: September 1, 2019.