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A BILL TO BE ENTITLED
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AN ACT
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relating to continuation elections for municipal management |
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districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 375.264(a) and (b), Local Government |
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Code, are amended to read as follows: |
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(a) A district may not be dissolved by its board under |
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Section 375.261 or 375.2631 or after a petition is filed under |
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Section 375.262 if the district has outstanding bonded indebtedness |
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until that bonded indebtedness has been repaid or defeased in |
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accordance with the order or resolution authorizing the issuance of |
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the bonds. |
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(b) If a petition for dissolution is filed under Section |
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375.262 with the board of a district or a majority of voters do not |
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favor the continuation of a district under Section 375.2631 and the |
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district has outstanding bonded indebtedness secured by |
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assessments: |
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(1) the district shall remain in existence solely for |
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the purposes of winding up district operations and discharging its |
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bonded indebtedness; and |
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(2) the board shall use all district money that is |
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available to: |
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(A) wind up district operations; and |
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(B) repay or defease the bonded indebtedness as |
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soon as practicable in accordance with the order or resolution |
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authorizing the issuance of the bonds. |
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SECTION 2. Subchapter M, Chapter 375, Local Government |
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Code, is amended by adding Section 375.2631 to read as follows: |
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Sec. 375.2631. CONTINUATION ELECTION; DISSOLUTION. (a) |
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Each 10th year the board of a district shall call an election in the |
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district to determine whether the district may continue. In all |
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areas of conflict this section takes precedence over all prior |
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statutory enactments. |
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(b) In an election ordered under Subsection (a), the |
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following proposition shall be submitted to the voters: "Shall the |
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(name of district) be continued?" |
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(c) If the majority of votes cast in the election do not |
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favor the proposition, the board: |
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(1) except as limited by Section 375.264, shall |
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dissolve the district; and |
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(2) may not incur new debt. |
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(d) A district created on or before November 1, 2016, shall |
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hold elections under Subsection (a) beginning on the uniform |
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election date in November 2026. A district created after November |
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1, 2016, shall hold elections under Subsection (a) beginning on the |
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uniform election date in November following the 10th anniversary of |
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the district's creation. |
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SECTION 3. This Act takes effect September 1, 2025. |