The bill, S.B. No. 1452, amends the Local Government Code to establish new regulations regarding the continuation elections for municipal management districts. It introduces 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 a majority of voters do not favor the continuation, the board is required to dissolve the district, with certain limitations on incurring new debt, and the district will remain in existence solely to wind up operations and discharge any outstanding bonded indebtedness.

Additionally, the bill clarifies that a district cannot be dissolved if it has outstanding bonded indebtedness until that debt is repaid or defeased. The new provisions take precedence over any conflicting prior statutory enactments. 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 is set to take effect on September 1, 2025.

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