The bill, S.B. No. 1452, amends the Local Government Code to establish a framework for continuation elections for municipal management districts. It introduces a new section, 375.2631, which mandates that every ten years, the board of a district must call an election to determine whether the district should continue to operate. If the majority of voters do not favor the continuation, the board is required to dissolve the district, with certain limitations on incurring new debt. Additionally, the bill specifies that districts created on or before November 1, 2016, must hold their first continuation election in November 2026, while those created after this date will hold elections in November following their tenth anniversary.

The bill also amends existing sections 375.264(a) and (b) to clarify that a district cannot be dissolved if it has outstanding bonded indebtedness until that debt is repaid or defeased. It further stipulates that if a petition for dissolution is filed or if voters do not favor continuation, the district will remain in existence solely to wind up operations and discharge its bonded indebtedness. This ensures that financial obligations are met before any dissolution can occur. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Local Government Code 375.264 (Local Government Code 375)