Tex. Local Gov't Code Section 363.302
Dissolution of District


(a)

On the date that the district is dissolved, the district shall convey or transfer, as provided by Subsection (h):

(1)

title to land, buildings, real and tangible improvements, and equipment owned by the district;

(2)

operating funds and reserves for operating expenses and funds that have been budgeted by the district for the remainder of the fiscal year in which the district is dissolved to support crime control activities and programs for residents of the political subdivision that created the district;

(3)

taxes levied by the district during the current year for crime control purposes;

(4)

funds established for payment of indebtedness assumed by the district; and

(5)

any accumulated employee retirement funds.

(b)

After the date the district is dissolved, the district may not impose taxes for district purposes or for providing crime control activities and programs for the residents of the district.

(c)

If on the date that the district is dissolved the district has outstanding short-term or long-term liabilities, the board shall, not later than the 30th day after the date of the dissolution, adopt a resolution certifying each outstanding short-term and long-term liability. The political subdivision that created the district shall assume the outstanding short-term and long-term liabilities. The political subdivision shall collect the sales and use tax under Section 321.108 (Municipal Crime Control and Prevention District Tax) or 323.105 (Crime Control District Tax), Tax Code, for the remainder of the calendar year and may by resolution of its governing body continue to collect the tax for an additional calendar year if the revenue from the tax is needed to retire liabilities of the district that were assumed by the political subdivision. The governing body shall notify the comptroller of this continuation not later than the 60th day before the date the tax would otherwise expire. Any tax collected after the liabilities have been retired shall be transferred or conveyed as provided by Subsection (a).

(d)

The district and the board may continue to operate for a period not to exceed two months after carrying out the responsibilities required by Subsections (a) and (c). The board and the district are continued in effect for the purpose of satisfying these responsibilities.

(e)

If the board and the district are continued in effect under Subsection (d), the board and district are dissolved entirely on the first day of the month following the month in which the board issues an order certifying to the secretary of state that no responsibilities of Subsections (a) and (c) are left unsatisfied.

(f)

A district or board that continues to operate under Subsection (d) may not incur any new liabilities without the approval of the governing body of the political subdivision that created the district. Not later than the 60th day after the date of the dissolution referendum, the governing body shall review the outstanding liabilities of the district and set a specific date by which the political subdivision must retire the district’s outstanding liabilities.

(g)

On the date that the district is dissolved, district-funded programs, including additional courts, shall immediately terminate and district-funded personnel, except personnel required to retire the responsibilities of the district, are terminated.

(h)

In a district created by a county, the board shall convey or transfer the value of the items described by Subsection (a) following the apportionment formula described by Section 363.154 (Use of Revenue)(a). In a district created by a municipality, the board shall convey or transfer the value of the items described by Subsection (a) to the municipality.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 23.03(a), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1101 (H.B. 3417), Sec. 4, eff. June 15, 2007.

Source: Section 363.302 — Dissolution of District, https://statutes.­capitol.­texas.­gov/Docs/LG/htm/LG.­363.­htm#363.­302 (accessed Jun. 5, 2024).

363.001
Short Title
363.002
Definitions
363.003
Liability of State
363.051
Political Subdivisions Authorized to Create District
363.052
Temporary Board
363.053
Election Required
363.054
Election Order
363.055
Sales Tax: Rate
363.056
Notice of Election
363.057
Election Date
363.058
Ballot Proposition
363.059
Canvassing Returns
363.060
Dissolution of Temporary Board
363.061
Crime Control Plan and Budget Plan
363.062
Financing Creation of District
363.063
Donations, Gifts, and Endowments
363.101
Board of Directors
363.102
Filing of Officer’s Bond
363.103
Officers
363.104
Compensation
363.105
Voting Requirement
363.106
Contract for Administrative Assistance
363.151
District Responsibilities
363.152
Coordination
363.153
General Board Power over Funds
363.154
Use of Revenue
363.155
Rules and Procedures
363.156
Purchasing
363.157
Property to Be Used in Administration
363.158
Reimbursement for Services
363.159
Service Contracts
363.160
Donations, Gifts, and Endowments
363.161
Authority to Sue and Be Sued
363.181
Election Required
363.182
Election Order
363.183
Notice of Election
363.184
Ballot Proposition
363.185
Election Results
363.201
Fiscal Year
363.202
Audits and District Records
363.203
Annual Budget Proposal
363.204
Adoption of Budget by Board
363.205
Approval of Budget by Governing Body of Creating Political Subdivision
363.206
Limitations on Expenditures and Investments
363.207
Account of Disbursements of District
363.208
Deposit of Funds
363.209
Applications for Program Funding
363.210
Bonds Prohibited
363.251
Referendum Authorized
363.252
Application for Petition
363.253
Petition
363.254
Copies of Application and Petition
363.255
Filing of Petition
363.256
Review by Clerk
363.257
Certification
363.258
Election Order
363.259
Applicability of Election Code
363.260
Results of Referendum
363.261
Election Contest
363.262
Effective Date of Tax Change
363.301
Time for Dissolution of District
363.302
Dissolution of District
363.1015
Alternate Forms of Appointment: Board of Directors
363.1541
Reduction of Tax Rate for Certain Districts
363.2515
Continuation of District: Certain Political Subdivisions

Accessed:
Jun. 5, 2024

§ 363.302’s source at texas​.gov