The bill lowers the bar for property owners to dissolve a municipal management district, from owners of two-thirds of the assessed property value down to owners of a majority of that value. It touches property owners inside these special districts and the district boards that must act on a valid petition, while ship channel security districts keep the old two-thirds requirement. Starting September 1, 2025, it becomes easier for owners to shut down a management district and end its assessments, and petitions filed earlier stay under the old rule.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R HB 183 (Did not pass) and this bill (Did not pass). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 183 (Did not pass). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.STALLED AFTER COMMITTEE. Voted out of the House Intergovernmental Affairs committee 10-0 on May 6, 2025. Placed on the General State Calendar on May 13, 2025. The bill died.
relating to the dissolution by petition of a municipal management
district; making conforming changes related to ship channel
security districts.
WHAT IT DOES
Two-thirds of assessed value drops to a majority.
The bill lowers the bar for property owners to dissolve a municipal management district, from owners of two-thirds of the assessed property value down to owners of a majority of that value. It touches property owners inside these special districts and the district boards that must act on a valid petition, while ship channel security districts keep the old two-thirds requirement. Starting September 1, 2025, it becomes easier for owners to shut down a management district and end its assessments, and petitions filed earlier stay under the old rule.
CHARGES
[ ] NONE FOUND
TOTAL
No fiscal implication to the State is anticipated.
Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.
House committee · Intergovernmental Affairs · Committee vote 10 aye, 0 nay, 1 absent · Out of committee
Subjects
Special Districts & Authorities--Miscellaneous
Taxation--Property-Assessment & Collection
Text
The text as introduced · 285 words
89R3371 JTZ-D
By: Gates
H.B. No. 1226
A BILL TO BE ENTITLED
AN ACT
relating to the dissolution by petition of a municipal management
district; making conforming changes related to ship channel
security districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 375.262, Local Government Code, is
amended to read as follows:
Sec. 375.262. DISSOLUTION BY PETITION BY OWNERS. (a)
Except as limited by Section 375.264, the board shall dissolve the
district on written petition filed with the board by the owners of
the majority [ at least two-thirds ] of the assessed value of the
property subject to assessment or taxation by the district based on
the most recent certified county property tax rolls.
(b) In all areas of conflict the provisions of this section
take precedence over a special law governing a district.
SECTION 2. Section 68.352(b), Water Code, is amended to
read as follows:
(b) A district may be dissolved as provided by Section
375.262, Local Government Code , except that the written petition
must be filed by the owners of at least two-thirds of the assessed
value of the property subject to assessment or taxation by the
district based on the most recent certified county property tax
rolls .
SECTION 3. The changes in law made by this Act apply only to
a petition described by Section 375.262, Local Government Code,
filed on or after the effective date of this Act. A petition filed
before the effective date of this Act is governed by the law in
effect on the date the petition was filed, and the former law is
continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2025.