S.B. No. 604
 
 
 
 
AN ACT
  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. If a petition for dissolution under Section 375.262 is
  filed with the board, the board must consider the petition not later
  than the 60th day after the date the petition is filed. The
  district may not issue bonds secured by assessments after the date
  the board confirms that the petition is valid and complete under
  Section 375.262.
         SECTION 2.  Section 375.264, Local Government Code, is
  amended to read as follows:
         Sec. 375.264.  LIMITATIONS [LIMITATION] ON DISSOLUTION BY
  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 [any] 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 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.
         (c)  Subsection (b) does not apply to a district that has
  outstanding bonded indebtedness secured by a source other than
  assessments on the date the petition is filed with the board.
         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, 2021.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 604 passed the Senate on
  April 19, 2021, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 29, 2021, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 604 passed the House, with
  amendment, on May 26, 2021, by the following vote: Yeas 146,
  Nays 1, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor