Special districts Texas are made for a specific purpose and when they serve that purpose, they can be dissolved. There are a few steps involved when it comes to dissolving special districts. Questions concerning dissolving special districts should be directed to the special district’s legal counsel. Here are some steps involved in dissolving special districts that you need to know.
Filing requirements
Before a special district is dissolved, it is important to file the requirements. It is important to file a copy of the special district dissolution document with the accountability program of the special district within thirty days of the dissolution effective date. The submission can be done electronically or manually but the electrical method is most preferred.
Dissolution of dependent special districts
A municipality or a county may dissolve a dependent district by ordinance. A county may not be able to dissolve a special district that depends on a municipality and vice versa. A municipality or a county may not be able to dissolve a dependent special district that is created by the special act. Unless provided by the law, the legislature can dissolve a dependent district created by a special act. A referendum isn’t required to dissolve a special district that was created by the special act if the district meets any criteria for being inactive.
Dissolution of an independent district created pursuant to a special act
The governing body of special districts in America, by a 50 plus one majority vote may elect to dissolve the special district, unless otherwise provided by the law. When dissolving a special district, the special act dissolving the district should be approved by most of the voters who own land in the area in a similar manner by which a special district governing board is elected. The special district must also be approved by most of the resident electors of the district. If a local government (general-purpose) passes a resolution or ordinance in support of the dissolution of the special district, the local general-purpose government should pay any expenses associated with the referendum required.
Dissolving independent districts created by a municipality or county by a referendum
The municipality or county that created the district can dissolve the district under a referendum or other procedures by which the district was created. However, if the special district has ad valorem taxation powers, then the same procedure required to grant independent districts ad valorem taxation powers will be required to dissolve the district.
Dissolution of inactive independent special districts
If independent special districts meet any criteria for being inactive, the special districts may be dissolved without a referendum. In case an inactive independent district was created by a municipality or county through a referendum, the county that created the district may dissolve the special district.
Assets and debts of a dissolved district
Once special districts Texas have been dissolved, the assets and debts of the special district will be transferred to the local general-purpose government unless otherwise provided by ordinance or law.