2009 Texas Code
LOCAL GOVERNMENT CODE
TITLE 2. ORGANIZATION OF MUNICIPAL GOVERNMENT
CHAPTER 62. ABOLITION OF MUNICIPALITIES  

LOCAL GOVERNMENT CODE

TITLE 2. ORGANIZATION OF MUNICIPAL GOVERNMENT

SUBTITLE E. CONSOLIDATION AND ABOLITION OF MUNICIPALITIES

CHAPTER 62. ABOLITION OF MUNICIPALITIES

SUBCHAPTER A. AUTHORITY AND PROCEDURE

Sec. 62.001. ABOLITION OF CORPORATE EXISTENCE. A special-law

municipality with 10,000 or fewer inhabitants or a general-law

municipality may abolish its corporate existence as provided by

this subchapter.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.002. PETITION AND ELECTION. (a) The mayor of the

municipality shall order an election on the question of

abolishing the municipality's corporate existence if a petition

requesting that the election be held is submitted to the mayor

and is signed by at least 400 qualified voters of the

municipality. However, if a majority of the qualified voters of

the municipality is less than 400, the petition must be signed by

at least two-thirds of the qualified voters of the municipality.

If the municipality has less than 400 qualified voters and has no

municipal debt and does not provide services that would be

otherwise provided by the county, the petition must be signed by

at least one-fourth of the qualified voters in the municipality.

(b) The mayor shall order the election to be held on the same

date as the next general election at which the office of mayor is

to be filled.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 2001, 77th Leg., ch. 402, Sec. 8, eff. Sept. 1,

2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

329, Sec. 1, eff. June 15, 2007.

Sec. 62.003. ELECTION ORDER; CONDUCT OF ELECTION. The election

shall be ordered, conducted, and canvassed in the same manner as

is required for an election to incorporate the municipality,

except that the mayor of the municipality shall perform all acts

that would be performed by the county judge.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.004. DECLARATION OF ABOLITION; CERTIFICATION. If a

majority of the votes received in an abolition election are for

abolition, the mayor of the municipality shall declare the

municipality abolished and certify the abolition to the

commissioners court of the county in which the municipality is

located. The commissioners court shall enter the abolition order

in its minutes, at which time the municipality ceases to exist.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

SUBCHAPTER B. RECEIVERSHIPS

Sec. 62.041. APPLICATION FOR AND APPOINTMENT OF RECEIVER. (a)

Any creditor of a validly incorporated municipality that

abolishes its corporate existence may apply to a district judge

in the district in which the municipality is located to appoint a

receiver for the municipality.

(b) After an application is filed and proper notice of the

application is posted, the judge hearing the application in term

time or vacation may appoint a suitable person as receiver.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.042. NOTICE OF APPLICATION. Before a judge may appoint

a receiver, written notice stating the substance of the

application for the appointment of the receiver and when and

before whom the application will be heard must be posted at three

or more public places in the county in which the municipality is

located, one of which must be in the municipality itself.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.043. BOND. (a) A judge appointing a receiver shall set

the receiver's bond at an amount that is at least twice the

probable amount of the indebtedness or the value of the property

of the municipality.

(b) The bond must be conditioned that the receiver will

faithfully perform the duties of receiver and that the receiver

will pay and deliver all money and property acquired as receiver

to the parties entitled to the money or property.

(c) The bond must be approved by the judge who appoints the

receiver.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.044. FILING AND RECORDING ORDER AND BOND. The district

clerk of the county in which the abolished municipality is

located shall file the receiver's bond and the order appointing

the receiver with the minutes of the court, and the clerk shall

record the order and the bond in the minutes.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.045. DUTIES AND AUTHORITY. (a) After the receiver

gives the required bond, and after the bond is filed and

recorded, the receiver shall:

(1) take control of all real and personal property of the

abolished municipality, including money, minute books,

ordinances, and similar property, but not including property that

pertains to the public schools or that is devoted exclusively to

public use; and

(2) in the next term of the court in which the receivership is

pending, return to the court an inventory of the property taken

by the receiver.

(b) Under a court order, or an order of the judge if the court

is in vacation, the receiver may bring suit against any person in

possession of the property of an abolished municipality or who is

indebted to it in the same manner as the municipality could if it

were still incorporated.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.046. COMPENSATION. A court appointing a receiver under

this subchapter may authorize compensation for the receiver.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

SUBCHAPTER C. PAYMENT OF INDEBTEDNESS AND DISPOSITION OF ASSETS

UNDER RECEIVERSHIP

Sec. 62.081. PRESENTATION OF CLAIMS. A person who has a claim

against an abolished municipality must present a verified

statement of the amount of the claim to the receiver within six

months after the date the receiver is appointed.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.082. NOTICE OF CLAIMS. (a) A receiver may not allow or

approve a claim or account against an abolished municipality

until notice of presentment of the claim or account is given by

publication in a newspaper in the municipality in which the claim

is filed or presented for four consecutive weeks or, if a

newspaper is not published in the municipality, by posting the

notice for four consecutive weeks at the door of the courthouse

of the county in which the municipality is located.

(b) The published or posted notice must state:

(1) the name and residence address of the creditor;

(2) the amount and date of the claim and account; and

(3) the purpose for which the claim or account was incurred.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.083. APPROVAL OF CLAIMS. If the receiver of an

abolished municipality determines a claim is correct, the

receiver shall mark it as allowed and file it in the district

court. The court shall also approve the claim at its next regular

term if no protest is filed. On approval by the court, the claim

is a valid debt of the municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.084. COMPLETE OR PARTIAL DISALLOWANCE OF CLAIM. (a) If

a receiver of an abolished municipality determines that a claim

is partially or completely unjust, the receiver shall endorse his

finding on the claim and return it to the claimant.

(b) A claimant who accepts the findings of the receiver may file

the claim with the district court. The court shall act on the

part of the claim allowed in the same manner as other claims.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.085. TAXPAYER PROTEST. (a) A district court may not

approve a claim against an abolished municipality until the full

amount of the claim is established by the judgment of a court of

competent jurisdiction if a taxpayer of the municipality:

(1) files a protest against the claim in the district court; and

(2) files a bond that is conditioned that the taxpayer will pay

all costs of suit if the claimant fully establishes his claim by

the judgment of a state court with jurisdiction of the claim.

(b) The taxpayer's bond must be approved by the court in which

it is filed.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.086. SUITS TO ESTABLISH CLAIMS. (a) A claimant may

bring a suit against the receiver of an abolished municipality to

establish a claim the receiver completely or partially disallowed

or to establish a claim protested by a taxpayer.

(b) The receiver shall assert all applicable legal defenses

against a suit under this section.

(c) The court trying a suit under this section may hear and

consider any material defense against the claim except

limitation, even if the claim previously has been reduced to

judgment. However, the court shall consider a prior judgment

establishing the claim as prima facie evidence of the justness of

the claim.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.087. ALLOWANCE AND APPROVAL OF ESTABLISHED CLAIMS. A

receiver of an abolished municipality shall allow, and a district

court shall approve, a claim that is established by a judgment

against the receiver.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.088. LIABILITY FOR COSTS. (a) A claimant in a suit

against the receiver of an abolished municipality who rejects

part of the claimant's claim is liable for the costs of the suit

unless the claimant establishes the claim in an amount greater

than the amount allowed by the receiver.

(b) A claimant in a suit to establish his claim because of a

taxpayer protest under Section 62.085 is liable for the costs of

the suit unless the claimant obtains a judgment for the full

amount he asked the district court to approve.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.089. LIMITATIONS. (a) Limitations do not begin to run,

do not expire, and may not be pled to bar a claim against an

abolished municipality until six months after the date a receiver

is appointed for the municipality.

(b) A claimant may not bring a suit against the receiver of an

abolished municipality on a claim that is partially or completely

disallowed under Section 62.084 or against which a taxpayer files

a protest under Section 62.085 after six months after the date

the claim is disallowed or the protest is filed.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.090. PAYMENT OF CLAIMS. The court in which the

receivership of an abolished municipality is pending shall:

(1) provide for the payment of the claims legally established

against the municipality;

(2) determine the priority of the claims;

(3) order the sale of all property held by the receiver that is

subject to sale for the satisfaction of the municipality's

indebtedness; and

(4) direct the receiver to pay the claims legally established

against the municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.091. ADDITIONAL TAX. (a) If the money of an abolished

municipality and the proceeds from the sale of its property are

insufficient to pay its indebtedness, at the request of any

creditor the court in which the receivership is pending at its

first regular term each year shall levy a tax on all real and

personal property that is not exempt from taxation and that on

the first day of January of the preceding year is located within

the corporate limits of the municipality as those limits

previously existed.

(b) The court shall levy a tax sufficient to discharge the

municipality's indebtedness, except that the court may not set

the tax at a rate that is greater than the rate allowed by law

for such purposes in municipalities.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.092. ASSESSMENT AND COLLECTION OF TAX. (a) The tax

assessor-collector for the county in which an abolished

municipality is located shall assess and collect a tax ordered

under Section 62.091.

(b) The tax assessor-collector shall pay the taxes collected to

the receiver for the municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.093. DELINQUENT TAXES. A receiver for an abolished

municipality may bring suit against a delinquent taxpayer and

enforce a lien against the taxpayer's property in the same manner

as if the corporate existence of the municipality had not been

abolished and the levy and assessment had been made by the

municipality's governing body and assessor.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.094. DISTRIBUTION OF ASSETS. (a) The compensation of

the receiver, court costs, and expenses have priority over other

claims against an abolished municipality and shall be paid first

out of money on hand or collected.

(b) Money collected each year from taxes shall be paid pro rata

on claims according to their priorities until all claims

established against the municipality and all costs and expenses

are paid in full.

(c) After the final settlement of the receivership, the receiver

shall deliver money or other property remaining to the trustees

or other officers in charge of any public school district located

completely within the boundaries of the abolished municipality,

and the money or property shall be used for the benefit of the

school district. If there is no such public school district, the

receiver shall deliver the remaining money or property to the

county in which the municipality is located. The money shall be

deposited in the general fund of the county, and the property

shall be used for the benefit of the county.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

SUBCHAPTER D. SCHOOLS AND PUBLIC PROPERTY

Sec. 62.121. ADMINISTRATION OF PUBLIC SCHOOLS. If at the time a

municipality is abolished under this chapter the public schools

of the municipality are managed by trustees appointed or elected

by the voters of the municipality or by its governing body, the

trustees shall continue to manage the schools for the remainder

of their appointive or elective term.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.122. TAXES. A receiver for an abolished municipality

shall collect all unpaid taxes levied before the date of

abolition for municipal or school purposes, together with any

penalties or interest that is due. The receiver shall pay the

part of the taxes levied for maintaining the public schools to

the trustees of the school district, who shall use the taxes for

the purpose for which they were levied.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.123. PUBLIC PROPERTY. If a municipality abolished under

this chapter owns public buildings, public parks, public works,

or other public property on the date of abolition and the

property is not sold or disposed of under this chapter, the

commissioners court shall manage and control the property for the

purposes for which the property was originally used and intended.

In managing and controlling the property, the commissioners court

may exercise the powers originally given by charter to the

governing body of the municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

SUBCHAPTER E. PAYMENT OF INDEBTEDNESS AND DISPOSITION OF ASSETS

BY CORPORATE OFFICERS OR TRUSTEES

Sec. 62.161. SETTLEMENT BY CORPORATE OFFICERS. (a) If a

municipality or de facto municipality that has indebtedness

outstanding is abolished, declared void by a court of competent

jurisdiction, or ceases to operate and exercise municipal

functions, the municipality's officers at the time the

municipality is dissolved or ceases to function shall:

(1) take control of the municipality's property;

(2) sell and dispose of the municipality's property; and

(3) settle the debts owed by the municipality.

(b) For the purpose of settling the debts of the municipality,

the former municipal officers may levy and collect a tax on the

residents of the municipality in the same manner as the

municipality could have done.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.162. SETTLEMENT BY TRUSTEES. (a) If a municipality's

officers fail or refuse to settle its affairs under Section

62.161, on the petition of any resident taxpayer of the

municipality or any holder of an evidence of its indebtedness, a

court with jurisdiction and located in the county in which the

municipality is located shall appoint three trustees to take

control of the municipality's property, dispose of the property,

and settle its debts.

(b) The trustees have the same powers that municipal officers

have under this subchapter.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 62.163. ACTION FOR DEBT. (a) The holder of an

indebtedness against a municipality to which Section 62.161

applies may bring a suit to establish the indebtedness in any

court in this state with jurisdiction in the county in which the

municipality is located. The court may render judgment in the

suit against the municipality as fully as if the municipality had

not been abolished or its organization declared void. The status

of the municipality remains the same insofar as it affects the

holders of its indebtedness until the indebtedness is paid.

(b) The municipality may be served with process in the suit by

serving the citation on a person who was or who acted as the

mayor, the secretary, or the treasurer of the municipality at the

time of the municipality's abolition.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

SUBCHAPTER F. ABOLITION OF MUNICIPALITY CEASING TO HAVE RESIDENTS

Sec. 62.201. PETITION FOR ABOLITION. After the 120th day after

the date a municipality ceases to have any persons residing

within its boundaries, the owners of a majority of the land

within the municipality may file a petition with a district court

of the county in which all or a majority of the land in the

municipality is located requesting the court to abolish the

municipality.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 8(a), eff. Aug. 28,

1989.

Sec. 62.202. HEARING. (a) Before the 60th day after the date

the petition is filed, the district judge of the court shall hold

a hearing on the petition. Members of the public who wish to give

testimony on the matter of abolishing the municipality must be

given the opportunity to do so at the hearing.

(b) The district judge must publish notice of the hearing in a

newspaper of general circulation in the county in which all or a

majority of the land in the municipality is located. The notice

must be published before the 10th day before the date of the

hearing. The notice must state:

(1) the date, time, and place of the hearing;

(2) the purpose of the hearing; and

(3) the name of the municipality that is the subject of the

hearing.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 8(a), eff. Aug. 28,

1989.

Sec. 62.203. ABOLITION ORDER. At the conclusion of the hearing

or within 10 days after the date the hearing is concluded, the

district judge shall issue an order declaring the municipality to

be abolished if the judge finds that a valid petition was filed

and no persons reside within the municipality. The municipality

ceases to exist on the date the order is issued.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 8(a), eff. Aug. 28,

1989.

Sec. 62.204. NOTICE TO COMMISSIONERS COURT. On the issuance of

the order abolishing the municipality, the district judge shall

certify the abolition to the commissioners court of the county in

which all or a majority of the land in the abolished municipality

is located.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 8(a), eff. Aug. 28,

1989.