By: Zaffirini S.B. No. 488
73R1563 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of children's resource districts;
1-4 authorizing a tax.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle B, Title 3, Human Resources Code, is
1-7 amended by adding Chapter 71 to read as follows:
1-8 CHAPTER 71. CHILDREN'S RESOURCE DISTRICTS
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 71.001. DEFINITIONS. In this chapter:
1-11 (1) "Board" means the board of directors of the
1-12 district.
1-13 (2) "District" means a children's resource district
1-14 created or to be created under this chapter.
1-15 (3) "Director" means a member of the board.
1-16 Sec. 71.002. DISTRICT AUTHORIZATION. A children's resource
1-17 district may be created and, if created, must be maintained,
1-18 operated, and financed in the manner provided by Article III,
1-19 Section 48-f, of the Texas Constitution and by this chapter.
1-20 (Sections 71.003-71.020 reserved for expansion
1-21 SUBCHAPTER B. CREATION OF DISTRICT
1-22 Sec. 71.021. PETITION FOR CREATION OF DISTRICT. (a) Before
1-23 a district that contains territory located only in one county may
1-24 be created, the county judge of that county must receive a petition
2-1 signed by at least 100 registered voters of the territory of the
2-2 proposed district.
2-3 (b) Before a district that contains territory located in
2-4 more than one county may be created, the county judge of each
2-5 county in which the proposed district will be located must receive
2-6 a petition signed by at least 100 registered voters of the
2-7 territory of the county in which the judge presides and of the
2-8 proposed district.
2-9 (c) If there are fewer than 100 registered voters in any
2-10 area for which a separate petition must be filed, the petition must
2-11 be signed by a majority of the registered voters in the area.
2-12 Sec. 71.022. CONTENTS OF PETITION. (a) The petition
2-13 prescribed by Section 71.021 must show:
2-14 (1) that the district is to be created and is to
2-15 operate under Article III, Section 48-f, of the Texas Constitution;
2-16 (2) the name of the proposed district;
2-17 (3) the district's boundaries as designated by metes
2-18 and bounds or other sufficient legal description;
2-19 (4) that none of the territory in the district is
2-20 included in another children's resource district;
2-21 (5) whether the permanent directors will be appointed
2-22 or elected and:
2-23 (A) if the directors are to be appointed, who
2-24 will appoint the directors and how the directors will be appointed;
2-25 or
2-26 (B) if the directors are to be elected, the
2-27 method by which the permanent directors will be elected, whether at
3-1 large, from single-member subdistricts, or both, so that a specific
3-2 number of directors are elected from each subdistrict and a
3-3 specific number are elected at large;
3-4 (6) the names of the temporary directors the
3-5 commissioners court must appoint under Section 71.030 or a request
3-6 that the commissioners court appoint temporary directors, if the
3-7 permanent directors are to be elected;
3-8 (7) the maximum tax rate to be voted on at the
3-9 creation election, which may not exceed 10 cents on the $100
3-10 valuation of all taxable property in the district; and
3-11 (8) the mailing address of each petitioner.
3-12 (b) If the directors are to be elected, the petition must
3-13 provide for the appointment of the same number of temporary
3-14 directors as there will be permanent directors.
3-15 (c) The petition may provide the number of directors for the
3-16 district, which number must be an odd number.
3-17 Sec. 71.023. FILING OF PETITION; HEARING; ORDERING ELECTION.
3-18 (a) If the petition is in proper form, the county judge shall
3-19 receive the petition and shall file the petition with the county
3-20 clerk.
3-21 (b) At the next regular or special session of the
3-22 commissioners court held after the petition is filed with the
3-23 county clerk, the commissioners court shall set a place, date, and
3-24 time for the hearing to consider the petition.
3-25 (c) The county clerk shall issue a notice of the hearing in
3-26 accordance with the open meetings law, Chapter 271, Acts of the
3-27 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's
4-1 Texas Civil Statutes).
4-2 (d) At the time and place set for the hearing, the
4-3 commissioners court shall consider the petition. The commissioners
4-4 court shall grant the petition if the court finds that the petition
4-5 is in proper form and contains the information required by Section
4-6 71.022.
4-7 (e) If a petition is granted, the commissioners court shall
4-8 order an election to confirm the district's creation and to
4-9 authorize the levy of a tax not to exceed the amount prescribed by
4-10 the petition on each $100 of the taxable value of all taxable
4-11 property in the district.
4-12 (f) If the petition indicates that the proposed district
4-13 will contain territory in more than one county, the commissioners
4-14 courts may not order an election until the commissioners court of
4-15 each county in which the district will be located has granted the
4-16 petition. The elections must be held on the same day.
4-17 (g) The election shall be held after the 45th day and on or
4-18 before the 60th day after the date the election is ordered.
4-19 (h) Section 41.001(a), Election Code, does not apply to an
4-20 election ordered under this section.
4-21 Sec. 71.024. ELECTION ORDER. The order calling the election
4-22 must state:
4-23 (1) the nature of the election, including the
4-24 proposition that is to appear on the ballot;
4-25 (2) the date of the election;
4-26 (3) the hours during which the polls will be open; and
4-27 (4) the location of the polling places.
5-1 Sec. 71.025. NOTICE. (a) The commissioners court shall
5-2 give notice of the election by publishing a substantial copy of the
5-3 election order in a newspaper with general circulation in the
5-4 proposed district once a week for two consecutive weeks.
5-5 (b) The first publication must appear before the 35th day
5-6 before the date set for the election.
5-7 Sec. 71.026. BALLOT PROPOSITION. The ballot for the
5-8 election shall be printed to permit voting for or against the
5-9 proposition: "The creation of the ____________ (name of district)
5-10 Children's Resource District and the levy of annual taxes at a rate
5-11 not to exceed __________ (insert the amount prescribed by the
5-12 petition, not to exceed 10 cents) cents on each $100 valuation of
5-13 all taxable property in the district."
5-14 Sec. 71.027. ELECTION RESULT. (a) Except as provided by
5-15 Subsections (b) and (c), a district is created and organized under
5-16 this chapter if a majority of the votes cast in the election favor
5-17 creation of the district.
5-18 (b) If the proposed district contains territory in more than
5-19 one county, a majority of the votes cast in each county must also
5-20 favor creation of the district.
5-21 (c) If a majority of the votes cast in a county within the
5-22 proposed district are against the creation of the district and a
5-23 majority of the votes cast in the remaining county or counties
5-24 favor creation of the district, the district may be created only in
5-25 the counties voting in favor of the proposed district.
5-26 (d) If the creation of the district is defeated, another
5-27 election on the question of creating the district may not be held
6-1 before the first anniversary of the most recent election concerning
6-2 the creation of the district.
6-3 Sec. 71.028. COMMISSIONERS COURT ORDER. When a district is
6-4 created, the commissioners court of each county in which the
6-5 district is located shall enter an order in its minutes that reads
6-6 substantially as follows:
6-7 "Whereas, at an election held on the ________ day of
6-8 __________, ____ (year), in that part of __________ County, State
6-9 of Texas, described as (insert description unless the district is
6-10 countywide), there was submitted to the qualified voters the
6-11 question of whether that territory should be formed into a
6-12 children's resource district under state law; and
6-13 "Whereas, at the election _______ votes were cast in favor of
6-14 formation of the district and _______ votes were cast against
6-15 formation; and
6-16 "Whereas, the formation of the children's resource district
6-17 received the affirmative vote of the majority of the votes cast at
6-18 the election as provided by law;
6-19 "Now, therefore, the Commissioners Court of __________
6-20 County, State of Texas, finds and orders that the tract described
6-21 in this order has been duly and legally formed into a children's
6-22 resource district (or a portion thereof) under the name of
6-23 __________, under Article III, Section 48-f, of the Texas
6-24 Constitution, and has the powers vested by law in the district."
6-25 Sec. 71.029. OVERLAPPING DISTRICTS. (a) If the territory
6-26 in one or more districts overlaps, the commissioners court of the
6-27 county in which the most recently created district is located by
7-1 order shall exclude the overlapping territory from that district.
7-2 (b) For purposes of this section, a district is created on
7-3 the date the election approving its creation is held. If the
7-4 elections approving the creation of two or more districts are held
7-5 on the same date, the most recently created district is the
7-6 district for which the hearing required by Section 71.023 was most
7-7 recently held.
7-8 (c) The fact that a district is created with boundaries that
7-9 overlap the boundaries of another district does not affect the
7-10 validity of either district.
7-11 Sec. 71.030. TEMPORARY DIRECTORS. (a) If the permanent
7-12 directors are to be elected, the commissioners court shall appoint
7-13 the temporary directors of the district on the date a commissioners
7-14 court enters the order required by Section 71.028.
7-15 (b) If the petition prescribed by Section 71.021
7-16 specifically names temporary directors, the commissioners court
7-17 shall name those persons to serve as temporary directors of the
7-18 district. If the petition requests that the commissioners court
7-19 appoint the temporary directors, the court shall appoint the
7-20 appropriate number of persons to serve as temporary directors of
7-21 the district. If the petition fails to name or state the number of
7-22 directors, there are five directors.
7-23 (c) If the district is located in more than one county, the
7-24 commissioners courts shall each appoint a percentage of temporary
7-25 directors equal to the ratio that the number of district residents
7-26 in the county bears to the total number of district residents.
7-27 (d) The temporary directors serve as directors of the
8-1 district from the time the district is created under Section 71.027
8-2 until a majority of the elected directors take office.
8-3 (e) The commissioners court shall fill a vacancy in the
8-4 office of temporary director by appointment.
8-5 (Sections 71.031-71.040 reserved for expansion
8-6 SUBCHAPTER C. DISTRICT ADMINISTRATION
8-7 Sec. 71.041. BOARD OF DIRECTORS. The directors shall be
8-8 appointed or elected in accordance with the petition prescribed by
8-9 Section 71.021.
8-10 Sec. 71.042. INITIAL DIRECTORS' APPOINTMENT. (a) If the
8-11 directors are to be appointed, the initial directors shall be
8-12 appointed on or before the date a commissioners court enters the
8-13 order required by Section 71.028. If the petition fails to state
8-14 the number of directors, there are five directors.
8-15 (b) The initial directors shall draw lots to determine which
8-16 directors shall serve four-year terms and which directors shall
8-17 serve two-year terms. The directors shall draw lots so that the
8-18 number of directors equal to half of the directors plus one serve
8-19 four-year terms and the remaining directors serve two-year terms.
8-20 (c) Successor directors are appointed in the same manner as
8-21 the original appointment and serve four-year terms.
8-22 Sec. 71.043. INITIAL DIRECTORS' ELECTION. (a) If the
8-23 directors are to be elected, the initial directors shall be elected
8-24 at an election to be held on the first Saturday in May in the first
8-25 even-numbered year following the creation of the district.
8-26 (b) If the directors are to be elected at large, the
8-27 appropriate number of candidates receiving the highest number of
9-1 votes at the initial election of directors are directors for the
9-2 district.
9-3 (c) If the directors are to be elected from single-member
9-4 subdistricts, the candidate for a subdistrict receiving the highest
9-5 number of votes for election to that subdistrict is a director for
9-6 that subdistrict.
9-7 (d) If the directors are to be elected from subdistricts and
9-8 at large:
9-9 (1) the candidate for a subdistrict who receives the
9-10 highest number of votes from a subdistrict is a director for that
9-11 subdistrict; and
9-12 (2) the number of candidates equal to the number of
9-13 directors to be elected at large who receive the highest number of
9-14 votes from the district at large are directors for the district at
9-15 large.
9-16 (e) The initial directors shall draw lots to determine which
9-17 directors shall serve four-year terms and which directors shall
9-18 serve two-year terms. The directors shall draw lots so that the
9-19 number of directors equal to half of the directors plus one serve
9-20 four-year terms and the remaining directors serve two-year terms.
9-21 (f) An election shall be held on the first Saturday in May
9-22 in each even-numbered year to elect the appropriate number of
9-23 successor directors for four-year terms.
9-24 Sec. 71.044. ELECTION BY SUBDISTRICTS. (a) If some or all
9-25 of the directors are to be elected from subdistricts, the temporary
9-26 directors shall establish the subdistricts from which the directors
9-27 are elected. The subdistricts must be contiguous and substantially
10-1 equal in population, according to the most recent federal decennial
10-2 census.
10-3 (b) One director shall be elected from each subdistrict.
10-4 (c) Except as provided by Section 71.043(e) and Subsection
10-5 (d), each director is elected for a four-year term.
10-6 (d) The board shall revise each subdistrict after the
10-7 publication of each federal decennial census to reflect population
10-8 changes. At the first election after the subdistricts are revised,
10-9 a new directors' election shall be held. The directors shall draw
10-10 lots to determine which directors shall serve two-year terms and
10-11 which directors shall serve four-year terms in accordance with
10-12 Section 71.043(e).
10-13 Sec. 71.045. CHANGE FROM APPOINTING TO ELECTING DIRECTORS.
10-14 (a) If the directors are appointed, the board may, on its own
10-15 motion, order that the district change to a system of electing the
10-16 directors.
10-17 (b) The board shall order that the district change to a
10-18 system of electing the directors if:
10-19 (1) each appointing authority passes a resolution
10-20 calling for the election of the directors; or
10-21 (2) the board receives a petition signed by at least
10-22 30 percent of the registered voters of the district calling for the
10-23 election of the directors.
10-24 (c) If the district is to change to a system of electing the
10-25 directors, the initial elected directors shall be elected at an
10-26 election to be held on the first Saturday in May in the first
10-27 even-numbered year following the date the order is made, the
11-1 resolution is passed, or the petition is received. The board by
11-2 order may postpone the election date until the second even-numbered
11-3 year if:
11-4 (1) the election will occur within 60 days after the
11-5 date the order is made, the resolution is passed, or the petition
11-6 is received; or
11-7 (2) the board determines that there is not sufficient
11-8 time to comply with the requirements of law and to order the
11-9 election.
11-10 (d) The directors must be elected from single-member
11-11 subdistricts in accordance with the provisions of this subchapter
11-12 relating to the initial and subsequent election of directors from
11-13 single-member subdistricts.
11-14 Sec. 71.046. NOTICE OF ELECTION. Before the 35th day before
11-15 the date of an election of directors, notice of the election shall
11-16 be published one time in a newspaper with general circulation in
11-17 the district.
11-18 Sec. 71.047. APPLICATION. (a) A person who wishes to have
11-19 the person's name printed on the ballot as a candidate for director
11-20 must file an application with the secretary of the board.
11-21 (b) If directors are elected from single-member
11-22 subdistricts, the application must specify the subdistrict for
11-23 which the applicant is to be a candidate.
11-24 (c) If the directors are elected from single-member
11-25 subdistricts and at large, the application must specify:
11-26 (1) the single-member subdistrict the candidate wishes
11-27 to represent; or
12-1 (2) that the candidate wishes to represent the
12-2 district at large.
12-3 Sec. 71.048. QUALIFICATIONS FOR OFFICE. (a) To be eligible
12-4 to be a candidate for or to serve as an elected or appointed
12-5 director, a person must be:
12-6 (1) a resident of the district; and
12-7 (2) a qualified voter.
12-8 (b) In addition to the qualifications required by Subsection
12-9 (a), if directors are elected from single-member subdistricts, a
12-10 person who is elected from a subdistrict or who is appointed to
12-11 fill a vacancy for a subdistrict must be a resident of that
12-12 subdistrict.
12-13 (c) An employee of the district may not serve as a director.
12-14 Sec. 71.049. BOND. (a) Before assuming the duties of the
12-15 office, each director must execute a bond for $5,000 payable to the
12-16 district, conditioned on the faithful performance of the person's
12-17 duties as director.
12-18 (b) The bond shall be kept in the permanent records of the
12-19 district.
12-20 (c) The board may pay for directors' bonds with district
12-21 funds.
12-22 Sec. 71.050. BOARD VACANCY. (a) A vacancy in the office of
12-23 an elected director shall be filled for the unexpired term by
12-24 appointment by the remaining directors.
12-25 (b) A vacancy in the office of an appointed director shall
12-26 be filled in the same manner as the original appointment for the
12-27 unexpired term.
13-1 Sec. 71.051. OFFICERS. (a) The board shall elect from
13-2 among its members a president and a vice-president.
13-3 (b) The board shall appoint a secretary who need not be a
13-4 director.
13-5 Sec. 71.052. OFFICERS' TERMS; VACANCY. (a) Each officer of
13-6 the board serves for a term of one year.
13-7 (b) The board shall fill a vacancy in a board office for the
13-8 unexpired term.
13-9 Sec. 71.053. COMPENSATION. (a) Directors and officers
13-10 serve without compensation but may be reimbursed for actual
13-11 expenses incurred in the performance of official duties.
13-12 (b) Expenses reimbursed under this section must be:
13-13 (1) reported in the district's minute book or other
13-14 district records; and
13-15 (2) approved by the board.
13-16 Sec. 71.054. VOTING REQUIREMENT. A majority of the members
13-17 of the board voting must concur in a matter relating to the
13-18 business of the district.
13-19 Sec. 71.055. GENERAL MANAGER; PERSONNEL. (a) The board may
13-20 employ a general manager for a term and salary set by the board.
13-21 (b) The general manager is the chief executive officer of
13-22 the district. Under policies established by the board, the general
13-23 manager is responsible to the board for:
13-24 (1) administering the directives of the board;
13-25 (2) keeping the district's records, including minutes
13-26 of the board's meetings;
13-27 (3) coordinating with state, federal, and local
14-1 agencies;
14-2 (4) developing plans and programs for the board's
14-3 approval;
14-4 (5) hiring, supervising, training, and discharging
14-5 district employees;
14-6 (6) contracting for or retaining technical, legal,
14-7 fiscal, and other professional services; and
14-8 (7) performing any other duty assigned to the general
14-9 manager by the board.
14-10 (c) The board may discharge the general manager on a
14-11 majority vote of all of the voting directors.
14-12 Sec. 71.056. DIRECTOR'S AND EMPLOYEE'S BONDS. (a) The
14-13 general manager and each employee of the district charged with the
14-14 collection, custody, or payment of any money of the district shall
14-15 execute a fidelity bond. The board shall approve the form, amount,
14-16 and surety of the bond.
14-17 (b) The district shall pay the premiums on the employees'
14-18 bonds under this section.
14-19 Sec. 71.057. PRINCIPAL OFFICE. The district shall maintain
14-20 its principal office inside the district's boundaries.
14-21 Sec. 71.058. RECORDS. (a) The district shall keep complete
14-22 and accurate accounts of its business transactions in accordance
14-23 with generally accepted methods of accounting.
14-24 (b) The district shall keep complete and accurate minutes of
14-25 its meetings.
14-26 (c) The district shall maintain its accounts, contracts,
14-27 documents, minutes, and other records at its principal office.
15-1 Sec. 71.059. CONTRACTS. The board may enter into contracts
15-2 for administration or services as provided by this chapter, and
15-3 those contracts shall be executed by the board in the name of the
15-4 district.
15-5 Sec. 71.060. SUITS; PAYMENT OF JUDGMENTS. (a) The district
15-6 may, through its board, sue and be sued in any court of this state
15-7 in the name of the district. Service of process in a suit may be
15-8 had by serving the general manager or other officers appointed by
15-9 the board.
15-10 (b) The courts of this state shall take judicial notice of
15-11 the creation of the district.
15-12 (c) A court of this state that renders a money judgment
15-13 against the district may require the board to pay the judgment from
15-14 money in the district depository that is not dedicated to the
15-15 payment of any indebtedness of the district.
15-16 Sec. 71.061. SEAL. The board shall adopt a seal for the
15-17 district and may alter the form of the seal from time to time.
15-18 (Sections 71.062-71.080 reserved for expansion
15-19 SUBCHAPTER D. POWERS AND DUTIES
15-20 Sec. 71.081. DUTIES. The district shall:
15-21 (1) provide, by contract or grant, funds for services
15-22 and activities for children;
15-23 (2) promote sound public policy regarding the problems
15-24 of children and the need for services and activities for children;
15-25 (3) promote and facilitate the identification,
15-26 development, coordination, and delivery of services and activities
15-27 for children;
16-1 (4) monitor and assess the effectiveness of programs
16-2 providing services or activities for children;
16-3 (5) recommend the role that each public and private
16-4 entity in the district should have in providing children's services
16-5 and activities;
16-6 (6) facilitate coordination of local services and
16-7 activities for children; and
16-8 (7) encourage cooperative, comprehensive, and
16-9 complementary planning among public, private, and volunteer
16-10 individuals and organizations engaged in providing services and
16-11 activities for children.
16-12 Sec. 71.082. LIMITATION ON POWERS. The district may not
16-13 directly provide services or activities for children.
16-14 Sec. 71.083. ANNUAL PLAN. (a) The district shall prepare
16-15 and approve an annual plan for expending funds for children's
16-16 services and activities.
16-17 (b) The plan must establish funding priorities for programs
16-18 and activities for children.
16-19 Sec. 71.084. GRANTS. (a) The district may award grants to
16-20 fund services and activities for children in the district.
16-21 (b) Any person, including a person who receives funds from
16-22 other governmental entities, may apply for a grant under this
16-23 section. The district may award grants that continue for one year.
16-24 The district may renew a grant.
16-25 (c) The district shall develop:
16-26 (1) eligibility criteria for applicants;
16-27 (2) grant application procedures;
17-1 (3) guidelines relating to grant amounts; and
17-2 (4) procedures for evaluating grant applications.
17-3 (d) The district may require a grant applicant to match a
17-4 grant in a ratio determined by the district. A person may not use
17-5 funds received from the district to meet a match requirement.
17-6 (e) The district shall develop criteria for disqualifying a
17-7 director from participating in a decision relating to an
17-8 application for a grant if the director is an employee, board
17-9 member, or officer of the applicant.
17-10 Sec. 71.085. FUNDING BY OTHER GOVERNMENTAL ENTITY. The
17-11 state or a political subdivision of the state may not reduce
17-12 funding for a program as a result of the program receiving a grant
17-13 under this subchapter.
17-14 Sec. 71.086. GIFTS, GRANTS, LOANS, AND OTHER FUNDS. To
17-15 carry out any purposes or powers under this chapter, the district
17-16 may apply for, accept, receive, and administer gifts, grants,
17-17 loans, and other funds available from any source.
17-18 Sec. 71.087. CONSULTATION, CONTRACTS, AND COOPERATION WITH
17-19 OTHER GOVERNMENTAL AGENCIES AND ENTITIES. To carry out any
17-20 purposes or powers under this chapter, the district may advise,
17-21 consult, contract, and cooperate with the federal government and
17-22 its agencies, the state and its agencies, local governments, and
17-23 private entities.
17-24 Sec. 71.088. CONTRACTS FOR PURCHASE OF VEHICLES, EQUIPMENT,
17-25 AND SUPPLIES OVER $10,000. (a) If the estimated amount of a
17-26 proposed contract for the purchase of vehicles, equipment, or
17-27 supplies is more than $10,000, the board shall ask for competitive
18-1 bids as provided by Subchapter B, Chapter 271, Local Government
18-2 Code.
18-3 (b) This section does not apply to purchases of property
18-4 from public agencies or to contracts for personal or professional
18-5 services.
18-6 Sec. 71.089. METHODS AND PROCEDURES. The board may
18-7 prescribe:
18-8 (1) the method of making purchases and expenditures by
18-9 and for the district; and
18-10 (2) accounting and control procedures for the
18-11 district.
18-12 (Sections 71.090-71.100 reserved for expansion
18-13 SUBCHAPTER E. CHANGE IN BOUNDARIES OR
18-14 DISSOLUTION OF DISTRICT
18-15 Sec. 71.101. EXPANSION OF DISTRICT TERRITORY. (a)
18-16 Registered voters of a defined territory that is not included in a
18-17 district may file a petition with the secretary of the board
18-18 requesting the inclusion of the territory in the district. The
18-19 petition must be signed by at least 50 registered voters of the
18-20 territory or a majority of those voters, whichever is less.
18-21 (b) The board by order shall set a time and place to hold a
18-22 hearing on the petition to include the territory in the district.
18-23 The board shall set a date for the hearing that is after the 30th
18-24 day after the date the board issues the order.
18-25 (c) If after the hearing the board finds that annexation of
18-26 the territory into the district would be feasible and would benefit
18-27 the district, the board may approve the annexation by a resolution
19-1 entered in its minutes. The board is not required to include all
19-2 of the territory described in the petition if the board finds that
19-3 a modification or change is necessary or desirable.
19-4 (d) Annexation of territory is final when approved by a
19-5 majority of the voters at an election held in the district and by a
19-6 majority of the voters at a separate election held in the territory
19-7 to be annexed. If the district has outstanding debts or taxes, the
19-8 voters in the election to approve the annexation must also
19-9 determine if the annexed territory will assume its proportion of
19-10 the debts or taxes if added to the district.
19-11 (e) The election ballots shall be printed to provide for
19-12 voting for or against the following, as applicable:
19-13 (1) "Adding (description of territory to be added) to
19-14 the __________ Children's Resource District."
19-15 (2) "(Description of territory to be added) assuming
19-16 its proportionate share of the outstanding debts and taxes of the
19-17 __________ Children's Resource District, if it is added to the
19-18 district."
19-19 (f) The election shall be held after the 45th day and on or
19-20 before the 60th day after the date the election is ordered. The
19-21 election shall be ordered and notice of the election shall be given
19-22 in the same manner as provided by Sections 71.024 and 71.025 for
19-23 ordering and giving notice of an election authorizing creation of
19-24 the district. Section 41.001(a), Election Code, does not apply to
19-25 an election held under this section.
19-26 Sec. 71.102. DISSOLUTION. (a) A district may be dissolved
19-27 as provided by this section.
20-1 (b) The board may order an election on the question of
20-2 dissolving the district and disposing of the district's assets and
20-3 obligations. The board shall order an election if the board
20-4 receives a petition requesting an election that is signed by a
20-5 number of residents of the district equal to at least 15 percent of
20-6 the registered voters in the district.
20-7 (c) The election shall be held not later than the 60th day
20-8 after the date the election is ordered. Section 41.001(a),
20-9 Election Code, does not apply to an election ordered under this
20-10 section.
20-11 (d) The ballot for the election shall be printed to permit
20-12 voting for or against the proposition: "The dissolution of the
20-13 _________ Children's Resource District." The election shall be
20-14 held in accordance with the applicable provisions of the Election
20-15 Code.
20-16 (e) If a majority of the votes in the election favor
20-17 dissolution, the board shall find that the district is dissolved.
20-18 If a majority of the votes in the election do not favor
20-19 dissolution, the board shall continue to administer the district,
20-20 and another election on the question of dissolution may not be held
20-21 before the first anniversary of the most recent election to
20-22 dissolve the district.
20-23 Sec. 71.103. TRANSFER OF ASSETS AFTER DISSOLUTION. (a) If
20-24 a majority of the votes in the election favor dissolution, the
20-25 board shall:
20-26 (1) transfer the land, buildings, improvements,
20-27 equipment, and other assets that belong to the district to a county
21-1 or another governmental entity in the district; or
21-2 (2) administer the property, assets, and debts in
21-3 accordance with Section 71.104.
21-4 (b) If the district transfers the land, buildings,
21-5 improvements, equipment, and other assets to a county or other
21-6 governmental entity, the county or entity assumes all debts and
21-7 obligations of the district at the time of the transfer, and the
21-8 district is dissolved.
21-9 Sec. 71.104. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS
21-10 AFTER DISSOLUTION. (a) If the district does not transfer the
21-11 land, buildings, improvements, equipment, and other assets to a
21-12 county or another governmental entity in the district, the board
21-13 shall continue to control and administer the property, debts, and
21-14 assets of the district until all funds have been disposed of and
21-15 all district debts have been paid or settled.
21-16 (b) After the board finds that the district is dissolved,
21-17 the board shall:
21-18 (1) determine the debt owed by the district; and
21-19 (2) impose on the property included in the district's
21-20 tax rolls a tax that is in proportion of the debt to the property
21-21 value.
21-22 (c) The board may institute a suit to enforce payment of
21-23 taxes and to foreclose liens to secure the payment of taxes due the
21-24 district.
21-25 Sec. 71.105. RETURN OF SURPLUS TAX MONEY. (a) When all
21-26 outstanding debts and obligations of the district are paid, the
21-27 board shall order the secretary to return the pro rata share of all
22-1 unused tax money to each district taxpayer.
22-2 (b) A taxpayer may request that the taxpayer's share of
22-3 surplus tax money be credited to the taxpayer's county taxes. If a
22-4 taxpayer requests the credit, the board shall direct the secretary
22-5 to transmit the funds to the county tax assessor-collector.
22-6 Sec. 71.106. REPORT; DISSOLUTION ORDER. (a) After the
22-7 district has paid all its debts and has disposed of all its assets
22-8 and funds as prescribed by Sections 71.104 and 71.105, the board
22-9 shall file a written report with the commissioners court of each
22-10 county in which the district is located setting forth a summary of
22-11 the board's actions in dissolving the district.
22-12 (b) Not later than the 10th day after the date it receives
22-13 the report and determines that the requirements of this section
22-14 have been fulfilled, the commissioners court of each county shall
22-15 enter an order dissolving the district.
22-16 (Sections 71.107-71.120 reserved for expansion
22-17 SUBCHAPTER F. DISTRICT FINANCES
22-18 Sec. 71.121. FISCAL YEAR. (a) The district operates on the
22-19 fiscal year established by the board.
22-20 (b) The fiscal year may not be changed if revenue bonds of
22-21 the district are outstanding or more than once in a 24-month
22-22 period.
22-23 Sec. 71.122. ANNUAL AUDIT. The board annually shall have an
22-24 audit made of the financial condition of the district.
22-25 Sec. 71.123. DISTRICT AUDIT AND RECORDS. The annual audit
22-26 and other district records are open to inspection during regular
22-27 business hours at the principal office of the district.
23-1 Sec. 71.124. ANNUAL BUDGET. (a) The administrator of the
23-2 district shall prepare a proposed annual budget for the district.
23-3 (b) The proposed budget must contain a complete financial
23-4 statement, including a statement of:
23-5 (1) the outstanding obligations of the district;
23-6 (2) the amount of cash on hand to the credit of each
23-7 fund of the district;
23-8 (3) the amount of money received by the district from
23-9 all sources during the previous year;
23-10 (4) the amount of money available to the district from
23-11 all sources during the ensuing year;
23-12 (5) the amount of the balances expected at the end of
23-13 the year in which the budget is being prepared;
23-14 (6) the estimated amount of revenues and balances
23-15 available to cover the proposed budget; and
23-16 (7) the estimated tax rate that will be required.
23-17 Sec. 71.125. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
23-18 board shall hold a public hearing on the proposed annual budget.
23-19 (b) The board shall publish notice of the hearing in a
23-20 newspaper of general circulation in the district not later than the
23-21 10th day before the date of the hearing.
23-22 (c) Any resident of the district is entitled to be present
23-23 and participate at the hearing.
23-24 (d) At the conclusion of the hearing, the board shall adopt
23-25 a budget by acting on the budget proposed by the administrator.
23-26 The board may make any changes in the proposed budget that in its
23-27 judgment the interests of the taxpayers demand.
24-1 (e) The budget is effective only after adoption by the
24-2 board.
24-3 Sec. 71.126. AMENDING BUDGET. After adoption, the annual
24-4 budget may be amended on the board's approval.
24-5 Sec. 71.127. LIMITATION OF EXPENDITURES. Money may not be
24-6 spent for an expense not included in the annual budget or an
24-7 amendment to it.
24-8 Sec. 71.128. SWORN STATEMENT. As soon as practicable after
24-9 the close of the fiscal year, the administrator shall prepare for
24-10 the board a sworn statement of the amount of money that belongs to
24-11 the district and an account of the disbursements of that money.
24-12 Sec. 71.129. SPENDING AND INVESTMENT LIMITATIONS. (a) The
24-13 district may not incur a debt payable from revenues of the district
24-14 other than the revenues on hand or to be on hand in the current and
24-15 immediately following fiscal year of the district.
24-16 (b) The board may invest operating reserves only in funds or
24-17 securities specified by Article 836 or 837, Revised Statutes.
24-18 Sec. 71.130. DEPOSITORY. (a) The board shall name at least
24-19 one bank to serve as depository for district funds.
24-20 (b) District funds, other than those invested as provided by
24-21 Section 71.129(b) and those transmitted to a bank of payment for
24-22 obligations issued or assumed by the district, shall be deposited
24-23 as received with the depository bank and must remain on deposit.
24-24 This subsection does not limit the power of the board to place a
24-25 portion of district funds on time deposit or to purchase
24-26 certificates of deposit.
24-27 (c) Before the district deposits funds in a bank in an
25-1 amount that exceeds the maximum amount secured by the Federal
25-2 Deposit Insurance Corporation, the bank must execute a bond or
25-3 other security in an amount sufficient to secure from loss the
25-4 district funds that exceed the amount secured by the Federal
25-5 Deposit Insurance Corporation.
25-6 (Sections 71.131-71.140 reserved for expansion
25-7 SUBCHAPTER G. TAXES
25-8 Sec. 71.141. LEVY OF TAXES. (a) The board annually may
25-9 impose property taxes in an amount not to exceed the limit approved
25-10 by the voters at the election authorizing the levy of taxes.
25-11 (b) The tax rate for all purposes may not exceed 10 cents on
25-12 each $100 valuation of all taxable property in the district.
25-13 (c) The taxes may be used to pay:
25-14 (1) the indebtedness issued or assumed by the
25-15 district; and
25-16 (2) the maintenance and operating expenses of the
25-17 district.
25-18 Sec. 71.142. BOARD AUTHORITY. The board may impose taxes
25-19 for the entire year in which the district is created.
25-20 Sec. 71.143. ADOPTING TAX RATE. In adopting the tax rate,
25-21 the board shall consider the income of the district from sources
25-22 other than taxation.
25-23 Sec. 71.144. TAX ASSESSMENT AND COLLECTION. (a) The Tax
25-24 Code governs the appraisal, assessment, and collection of district
25-25 taxes.
25-26 (b) The board may provide for the appointment of a tax
25-27 assessor-collector for the district or may contract for the
26-1 assessment and collection of taxes as provided by the Tax Code.
26-2 SECTION 2. This Act takes effect on the date on which the
26-3 constitutional amendment proposed by __J.R. No. ___, 73rd
26-4 Legislature, Regular Session, takes effect. If that amendment is
26-5 not approved by the voters, this Act has no effect.
26-6 SECTION 3. The importance of this legislation and the
26-7 crowded condition of the calendars in both houses create an
26-8 emergency and an imperative public necessity that the
26-9 constitutional rule requiring bills to be read on three several
26-10 days in each house be suspended, and this rule is hereby suspended.