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A BILL TO BE ENTITLED
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AN ACT
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relating to the dissolution of the SH130 Municipal Management |
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District No. 1. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter I, Chapter 3971, Special District |
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Local Laws Code, is amended by adding Sections 3971.0902, |
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3971.0903, and 3971.0904 to read as follows: |
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Sec. 3971.0902. MANDATORY DISSOLUTION. Except as provided |
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by Section 3971.0903, not later than January 1, 2024, the board |
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shall: |
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(1) wind up district operations; |
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(2) transfer all remaining district assets to a trust |
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created for the purposes of this section, with the commissioners |
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court of the most populous county in which the district is located |
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acting as trustee; and |
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(3) dissolve the district. |
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Sec. 3971.0903. DISTRICT OBLIGATIONS AND LIABILITIES. (a) |
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If on January 1, 2024, the board finds that the board would not be |
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authorized to dissolve the district under Section 3971.0901 because |
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of an existing condition described by Section 3971.0901(c): |
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(1) the board may not dissolve the district under |
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Section 3971.0902; |
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(2) the board shall delay the transfer of assets to the |
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trust as provided by Section 3971.0902 until the board may dissolve |
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the district; and |
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(3) the district continues in existence solely for the |
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purposes of resolving the condition, winding up district |
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operations, and making the transfer of assets to the trust as |
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provided by Section 3971.0902. |
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(b) The board shall resolve the conditions and continue to |
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wind up district operations as quickly as practicable until the |
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board would be authorized to dissolve the district under Section |
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3971.0901, at which time the board shall make the transfer of assets |
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to the trust as provided by Section 3971.0902 and dissolve the |
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district. |
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Sec. 3971.0904. DISPOSITION OF REMAINING DISTRICT ASSETS. |
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(a) Not later than the 30th day before the date of the transfer of |
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assets described by Section 3971.0902, the district shall: |
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(1) compile a list of each taxing unit, as defined by |
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Section 1.04, Tax Code, from which a public facility corporation |
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created by the district received a tax exemption under Section |
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303.042, Local Government Code, before September 1, 2023; and |
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(2) provide the list compiled under Subdivision (1) to |
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the trustee of the trust created under Section 3971.0902. |
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(b) As soon as practicable after the transfer of assets |
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described by Section 3971.0902 or 3971.0903, the trustee of the |
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trust created under Section 3971.0902 shall send to each taxing |
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unit, as defined by Section 1.04, Tax Code, from which a public |
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facility corporation created by the district received a tax |
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exemption under Section 303.042, Local Government Code, a payment |
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from the trust assets. |
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(c) The trustee: |
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(1) may apply a reasonable portion of the trust assets |
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to the trustee's costs incurred administering this section; and |
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(2) shall send any trust assets remaining after making |
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the payments required by this section to a special fund of the |
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county for use under Subsection (e). |
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(d) Each payment must be in an amount equal to the amount of |
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tax revenue the receiving taxing unit would have collected from the |
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public facility corporation without the exemption provided by |
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Section 303.042, Local Government Code. If the total amount of |
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remaining assets of the district are less than the amount required |
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to make the payments required under this subsection, the trustee |
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shall make the payments on a pro-rata basis, based on the payment |
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otherwise to be paid to each taxing unit. |
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(e) A county that receives assets under Subsection (c)(2) |
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may use the assets only for a service or project that benefits the |
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former territory of the district. |
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SECTION 2. (a) The legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor, one of the required recipients, has |
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submitted the notice and Act to the Texas Commission on |
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Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, |
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lieutenant governor, and speaker of the house of representatives |
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within the required time. |
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(d) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act have been |
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fulfilled and accomplished. |
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SECTION 3. This Act takes effect September 1, 2023. |
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* * * * * |