1-1 By: Zaffirini S.B. No. 488 1-2 (In the Senate - Filed February 25, 1993; March 1, 1993, read 1-3 first time and referred to Committee on Health and Human Services; 1-4 March 24, 1993, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 5, Nays 3; March 24, 1993, 1-6 sent to printer.) 1-7 COMMITTEE VOTE 1-8 Yea Nay PNV Absent 1-9 Zaffirini x 1-10 Ellis x 1-11 Madla x 1-12 Moncrief x 1-13 Nelson x 1-14 Patterson x 1-15 Shelley x 1-16 Truan x 1-17 Wentworth x 1-18 COMMITTEE SUBSTITUTE FOR S.B. No. 488 By: Zaffirini 1-19 A BILL TO BE ENTITLED 1-20 AN ACT 1-21 relating to the creation, administration, powers, duties, 1-22 operation, and financing of children's resource districts; 1-23 authorizing a tax. 1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-25 SECTION 1. Subtitle B, Title 3, Human Resources Code, is 1-26 amended by adding Chapter 71 to read as follows: 1-27 CHAPTER 71. CHILDREN'S RESOURCE DISTRICTS 1-28 SUBCHAPTER A. GENERAL PROVISIONS 1-29 Sec. 71.001. DEFINITIONS. In this chapter: 1-30 (1) "Board" means the board of directors of the 1-31 district. 1-32 (2) "District" means a children's resource district 1-33 created or to be created under this chapter. 1-34 (3) "Director" means a member of the board. 1-35 Sec. 71.002. DISTRICT AUTHORIZATION. A children's resource 1-36 district may be created and, if created, must be maintained, 1-37 operated, and financed in the manner provided by Article III, 1-38 Section 48-f, of the Texas Constitution and by this chapter. 1-39 (Sections 71.003 to 71.020 reserved for expansion 1-40 SUBCHAPTER B. CREATION OF DISTRICT 1-41 Sec. 71.021. PETITION FOR CREATION OF DISTRICT. (a) Before 1-42 a district that contains territory located only in one county may 1-43 be created, the county judge of that county must receive a petition 1-44 signed by at least 100 registered voters of the territory of the 1-45 proposed district. 1-46 (b) Before a district that contains territory located in 1-47 more than one county may be created, the county judge of each 1-48 county in which the proposed district will be located must receive 1-49 a petition signed by at least 100 registered voters of the 1-50 territory of the county in which the judge presides and of the 1-51 proposed district. 1-52 (c) If there are fewer than 100 registered voters in any 1-53 area for which a separate petition must be filed, the petition must 1-54 be signed by a majority of the registered voters in the area. 1-55 Sec. 71.022. CONTENTS OF PETITION. (a) The petition 1-56 prescribed by Section 71.021 must show: 1-57 (1) that the district is to be created and is to 1-58 operate under Article III, Section 48-f, of the Texas Constitution; 1-59 (2) the name of the proposed district; 1-60 (3) the district's boundaries as designated by metes 1-61 and bounds or other sufficient legal description; 1-62 (4) that none of the territory in the district is 1-63 included in another children's resource district; 1-64 (5) whether the permanent directors will be appointed 1-65 or elected and: 1-66 (A) if the directors are to be appointed, who 1-67 will appoint the directors and how the directors will be appointed; 1-68 or 2-1 (B) if the directors are to be elected, the 2-2 method by which the permanent directors will be elected, whether at 2-3 large, from single-member subdistricts, or both, so that a specific 2-4 number of directors are elected from each subdistrict and a 2-5 specific number are elected at large; 2-6 (6) the names of the temporary directors the 2-7 commissioners court must appoint under Section 71.030 or a request 2-8 that the commissioners court appoint temporary directors, if the 2-9 permanent directors are to be elected; 2-10 (7) the maximum tax rate to be voted on at the 2-11 creation election, which may not exceed 10 cents on the $100 2-12 valuation of all taxable property in the district; and 2-13 (8) the mailing address of each petitioner. 2-14 (b) If the directors are to be elected, the petition must 2-15 provide for the appointment of the same number of temporary 2-16 directors as there will be permanent directors. 2-17 (c) The petition may provide the number of directors for the 2-18 district, which number must be an odd number. 2-19 Sec. 71.023. FILING OF PETITION; HEARING; ORDERING ELECTION. 2-20 (a) If the petition is in proper form, the county judge shall 2-21 receive the petition and shall file the petition with the county 2-22 clerk. 2-23 (b) At the next regular or special session of the 2-24 commissioners court held after the petition is filed with the 2-25 county clerk, the commissioners court shall set a place, date, and 2-26 time for the hearing to consider the petition. 2-27 (c) The county clerk shall issue a notice of the hearing in 2-28 accordance with the open meetings law, Chapter 271, Acts of the 2-29 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's 2-30 Texas Civil Statutes). 2-31 (d) At the time and place set for the hearing, the 2-32 commissioners court shall consider the petition. The commissioners 2-33 court shall grant the petition if the court finds that the petition 2-34 is in proper form and contains the information required by Section 2-35 71.022. 2-36 (e) If a petition is granted, the commissioners court shall 2-37 order an election to confirm the district's creation and to 2-38 authorize the levy of a tax not to exceed the amount prescribed by 2-39 the petition on each $100 of the taxable value of all taxable 2-40 property in the district. 2-41 (f) If the petition indicates that the proposed district 2-42 will contain territory in more than one county, the commissioners 2-43 courts may not order an election until the commissioners court of 2-44 each county in which the district will be located has granted the 2-45 petition. The elections must be held on the same day. 2-46 (g) The election shall be held after the 45th day and on or 2-47 before the 60th day after the date the election is ordered. 2-48 (h) Section 41.001(a), Election Code, does not apply to an 2-49 election ordered under this section. 2-50 Sec. 71.024. ELECTION ORDER. The order calling the election 2-51 must state: 2-52 (1) the nature of the election, including the 2-53 proposition that is to appear on the ballot; 2-54 (2) the date of the election; 2-55 (3) the hours during which the polls will be open; and 2-56 (4) the location of the polling places. 2-57 Sec. 71.025. NOTICE. (a) The commissioners court shall 2-58 give notice of the election by publishing a substantial copy of the 2-59 election order in a newspaper with general circulation in the 2-60 proposed district once a week for two consecutive weeks. 2-61 (b) The first publication must appear before the 35th day 2-62 before the date set for the election. 2-63 Sec. 71.026. BALLOT PROPOSITION. The ballot for the 2-64 election shall be printed to permit voting for or against the 2-65 proposition: "The creation of the ____________ (name of district) 2-66 Children's Resource District and the levy of annual taxes at a rate 2-67 not to exceed __________ (insert the amount prescribed by the 2-68 petition, not to exceed 10 cents) cents on each $100 valuation of 2-69 all taxable property in the district." 2-70 Sec. 71.027. ELECTION RESULT. (a) Except as provided by 3-1 Subsections (b) and (c), a district is created and organized under 3-2 this chapter if a majority of the votes cast in the election favor 3-3 creation of the district. 3-4 (b) If the proposed district contains territory in more than 3-5 one county, a majority of the votes cast in each county must also 3-6 favor creation of the district. 3-7 (c) If a majority of the votes cast in a county within the 3-8 proposed district are against the creation of the district and a 3-9 majority of the votes cast in the remaining county or counties 3-10 favor creation of the district, the district may be created only in 3-11 the counties voting in favor of the proposed district. 3-12 (d) If the creation of the district is defeated, another 3-13 election on the question of creating the district may not be held 3-14 before the first anniversary of the most recent election concerning 3-15 the creation of the district. 3-16 Sec. 71.028. COMMISSIONERS COURT ORDER. When a district is 3-17 created, the commissioners court of each county in which the 3-18 district is located shall enter an order in its minutes that reads 3-19 substantially as follows: 3-20 "Whereas, at an election held on the ________ day of 3-21 __________, ____ (year), in that part of __________ County, State 3-22 of Texas, described as (insert description unless the district is 3-23 countywide), there was submitted to the qualified voters the 3-24 question of whether that territory should be formed into a 3-25 children's resource district under state law; and 3-26 "Whereas, at the election _______ votes were cast in favor of 3-27 formation of the district and _______ votes were cast against 3-28 formation; and 3-29 "Whereas, the formation of the children's resource district 3-30 received the affirmative vote of the majority of the votes cast at 3-31 the election as provided by law; 3-32 "Now, therefore, the Commissioners Court of __________ 3-33 County, State of Texas, finds and orders that the tract described 3-34 in this order has been duly and legally formed into a children's 3-35 resource district (or a portion thereof) under the name of 3-36 __________, under Article III, Section 48-f, of the Texas 3-37 Constitution, and has the powers vested by law in the district." 3-38 Sec. 71.029. OVERLAPPING DISTRICTS. (a) If the territory 3-39 in one or more districts overlaps, the commissioners court of the 3-40 county in which the most recently created district is located by 3-41 order shall exclude the overlapping territory from that district. 3-42 (b) For purposes of this section, a district is created on 3-43 the date the election approving its creation is held. If the 3-44 elections approving the creation of two or more districts are held 3-45 on the same date, the most recently created district is the 3-46 district for which the hearing required by Section 71.023 was most 3-47 recently held. 3-48 (c) The fact that a district is created with boundaries that 3-49 overlap the boundaries of another district does not affect the 3-50 validity of either district. 3-51 Sec. 71.030. TEMPORARY DIRECTORS. (a) If the permanent 3-52 directors are to be elected, the commissioners court shall appoint 3-53 the temporary directors of the district on the date a commissioners 3-54 court enters the order required by Section 71.028. 3-55 (b) If the petition prescribed by Section 71.021 3-56 specifically names temporary directors, the commissioners court 3-57 shall name those persons to serve as temporary directors of the 3-58 district. If the petition requests that the commissioners court 3-59 appoint the temporary directors, the court shall appoint the 3-60 appropriate number of persons to serve as temporary directors of 3-61 the district. If the petition fails to name or state the number of 3-62 directors, there are five directors. 3-63 (c) If the district is located in more than one county, the 3-64 commissioners courts shall each appoint a percentage of temporary 3-65 directors equal to the ratio that the number of district residents 3-66 in the county bears to the total number of district residents. 3-67 (d) The temporary directors serve as directors of the 3-68 district from the time the district is created under Section 71.027 3-69 until a majority of the elected directors take office. 3-70 (e) The commissioners court shall fill a vacancy in the 4-1 office of temporary director by appointment. 4-2 (Sections 71.031 to 71.040 reserved for expansion 4-3 SUBCHAPTER C. DISTRICT ADMINISTRATION 4-4 Sec. 71.041. BOARD OF DIRECTORS. The directors shall be 4-5 appointed or elected in accordance with the petition prescribed by 4-6 Section 71.021. 4-7 Sec. 71.042. INITIAL DIRECTORS' APPOINTMENT. (a) If the 4-8 directors are to be appointed, the initial directors shall be 4-9 appointed on or before the date a commissioners court enters the 4-10 order required by Section 71.028. If the petition fails to state 4-11 the number of directors, there are five directors. 4-12 (b) The initial directors shall draw lots to determine which 4-13 directors shall serve four-year terms and which directors shall 4-14 serve two-year terms. The directors shall draw lots so that the 4-15 number of directors equal to half of the directors plus one serve 4-16 four-year terms and the remaining directors serve two-year terms. 4-17 (c) Successor directors are appointed in the same manner as 4-18 the original appointment and serve four-year terms. 4-19 Sec. 71.043. INITIAL DIRECTORS' ELECTION. (a) If the 4-20 directors are to be elected, the initial directors shall be elected 4-21 at an election to be held on the first Saturday in May in the first 4-22 even-numbered year following the creation of the district. 4-23 (b) If the directors are to be elected at large, the 4-24 appropriate number of candidates receiving the highest number of 4-25 votes at the initial election of directors are directors for the 4-26 district. 4-27 (c) If the directors are to be elected from single-member 4-28 subdistricts, the candidate for a subdistrict receiving the highest 4-29 number of votes for election to that subdistrict is a director for 4-30 that subdistrict. 4-31 (d) If the directors are to be elected from subdistricts and 4-32 at large: 4-33 (1) the candidate for a subdistrict who receives the 4-34 highest number of votes from a subdistrict is a director for that 4-35 subdistrict; and 4-36 (2) the number of candidates equal to the number of 4-37 directors to be elected at large who receive the highest number of 4-38 votes from the district at large are directors for the district at 4-39 large. 4-40 (e) The initial directors shall draw lots to determine which 4-41 directors shall serve four-year terms and which directors shall 4-42 serve two-year terms. The directors shall draw lots so that the 4-43 number of directors equal to half of the directors plus one serve 4-44 four-year terms and the remaining directors serve two-year terms. 4-45 (f) An election shall be held on the first Saturday in May 4-46 in each even-numbered year to elect the appropriate number of 4-47 successor directors for four-year terms. 4-48 Sec. 71.044. ELECTION BY SUBDISTRICTS. (a) If some or all 4-49 of the directors are to be elected from subdistricts, the temporary 4-50 directors shall establish the subdistricts from which the directors 4-51 are elected. The subdistricts must be contiguous and substantially 4-52 equal in population, according to the most recent federal decennial 4-53 census. 4-54 (b) One director shall be elected from each subdistrict. 4-55 (c) Except as provided by Section 71.043(e) and Subsection 4-56 (d), each director is elected for a four-year term. 4-57 (d) The board shall revise each subdistrict after the 4-58 publication of each federal decennial census to reflect population 4-59 changes. At the first election after the subdistricts are revised, 4-60 a new directors' election shall be held. The directors shall draw 4-61 lots to determine which directors shall serve two-year terms and 4-62 which directors shall serve four-year terms in accordance with 4-63 Section 71.043(e). 4-64 Sec. 71.045. CHANGE FROM APPOINTING TO ELECTING DIRECTORS. 4-65 (a) If the directors are appointed, the board may, on its own 4-66 motion, order that the district change to a system of electing the 4-67 directors. 4-68 (b) The board shall order that the district change to a 4-69 system of electing the directors if: 4-70 (1) each appointing authority passes a resolution 5-1 calling for the election of the directors; or 5-2 (2) the board receives a petition signed by at least 5-3 30 percent of the registered voters of the district calling for the 5-4 election of the directors. 5-5 (c) If the district is to change to a system of electing the 5-6 directors, the initial elected directors shall be elected at an 5-7 election to be held on the first Saturday in May in the first 5-8 even-numbered year following the date the order is made, the 5-9 resolution is passed, or the petition is received. The board by 5-10 order may postpone the election date until the second even-numbered 5-11 year if: 5-12 (1) the election will occur within 60 days after the 5-13 date the order is made, the resolution is passed, or the petition 5-14 is received; or 5-15 (2) the board determines that there is not sufficient 5-16 time to comply with the requirements of law and to order the 5-17 election. 5-18 (d) The directors must be elected from single-member 5-19 subdistricts in accordance with the provisions of this subchapter 5-20 relating to the initial and subsequent election of directors from 5-21 single-member subdistricts. 5-22 Sec. 71.046. NOTICE OF ELECTION. Before the 35th day before 5-23 the date of an election of directors, notice of the election shall 5-24 be published one time in a newspaper with general circulation in 5-25 the district. 5-26 Sec. 71.047. APPLICATION. (a) A person who wishes to have 5-27 the person's name printed on the ballot as a candidate for director 5-28 must file an application with the secretary of the board. 5-29 (b) If directors are elected from single-member 5-30 subdistricts, the application must specify the subdistrict for 5-31 which the applicant is to be a candidate. 5-32 (c) If the directors are elected from single-member 5-33 subdistricts and at large, the application must specify: 5-34 (1) the single-member subdistrict the candidate wishes 5-35 to represent; or 5-36 (2) that the candidate wishes to represent the 5-37 district at large. 5-38 Sec. 71.048. QUALIFICATIONS FOR OFFICE. (a) To be eligible 5-39 to be a candidate for or to serve as an elected or appointed 5-40 director, a person must be: 5-41 (1) a resident of the district; and 5-42 (2) a qualified voter. 5-43 (b) In addition to the qualifications required by Subsection 5-44 (a), if directors are elected from single-member subdistricts, a 5-45 person who is elected from a subdistrict or who is appointed to 5-46 fill a vacancy for a subdistrict must be a resident of that 5-47 subdistrict. 5-48 (c) An employee of the district may not serve as a director. 5-49 Sec. 71.049. BOND. (a) Before assuming the duties of the 5-50 office, each director must execute a bond for $5,000 payable to the 5-51 district, conditioned on the faithful performance of the person's 5-52 duties as director. 5-53 (b) The bond shall be kept in the permanent records of the 5-54 district. 5-55 (c) The board may pay for directors' bonds with district 5-56 funds. 5-57 Sec. 71.050. BOARD VACANCY. (a) A vacancy in the office of 5-58 an elected director shall be filled for the unexpired term by 5-59 appointment by the remaining directors. 5-60 (b) A vacancy in the office of an appointed director shall 5-61 be filled in the same manner as the original appointment for the 5-62 unexpired term. 5-63 Sec. 71.051. OFFICERS. (a) The board shall elect from 5-64 among its members a president and a vice-president. 5-65 (b) The board shall appoint a secretary who need not be a 5-66 director. 5-67 Sec. 71.052. OFFICERS' TERMS; VACANCY. (a) Each officer of 5-68 the board serves for a term of one year. 5-69 (b) The board shall fill a vacancy in a board office for the 5-70 unexpired term. 6-1 Sec. 71.053. COMPENSATION. (a) Directors and officers 6-2 serve without compensation but may be reimbursed for actual 6-3 expenses incurred in the performance of official duties. 6-4 (b) Expenses reimbursed under this section must be: 6-5 (1) reported in the district's minute book or other 6-6 district records; and 6-7 (2) approved by the board. 6-8 Sec. 71.054. VOTING REQUIREMENT. A majority of the members 6-9 of the board voting must concur in a matter relating to the 6-10 business of the district. 6-11 Sec. 71.055. GENERAL MANAGER; PERSONNEL. (a) The board may 6-12 employ a general manager for a term and salary set by the board. 6-13 (b) The general manager is the chief executive officer of 6-14 the district. Under policies established by the board, the general 6-15 manager is responsible to the board for: 6-16 (1) administering the directives of the board; 6-17 (2) keeping the district's records, including minutes 6-18 of the board's meetings; 6-19 (3) coordinating with state, federal, and local 6-20 agencies; 6-21 (4) developing plans and programs for the board's 6-22 approval; 6-23 (5) hiring, supervising, training, and discharging 6-24 district employees; 6-25 (6) contracting for or retaining technical, legal, 6-26 fiscal, and other professional services; and 6-27 (7) performing any other duty assigned to the general 6-28 manager by the board. 6-29 (c) The board may discharge the general manager on a 6-30 majority vote of all of the voting directors. 6-31 Sec. 71.056. DIRECTOR'S AND EMPLOYEE'S BONDS. (a) The 6-32 general manager and each employee of the district charged with the 6-33 collection, custody, or payment of any money of the district shall 6-34 execute a fidelity bond by a corporate surety duly authorized in 6-35 this state. The board shall approve the form, amount, and surety 6-36 of the bond. 6-37 (b) The district shall pay the premiums on the employees' 6-38 bonds under this section. 6-39 Sec. 71.057. PRINCIPAL OFFICE. The district shall maintain 6-40 its principal office inside the district's boundaries. 6-41 Sec. 71.058. RECORDS. (a) The district shall keep complete 6-42 and accurate accounts of its business transactions in accordance 6-43 with generally accepted methods of accounting. 6-44 (b) The district shall keep complete and accurate minutes of 6-45 its meetings. 6-46 (c) The district shall maintain its accounts, contracts, 6-47 documents, minutes, and other records at its principal office. 6-48 Sec. 71.059. CONTRACTS. The board may enter into contracts 6-49 for administration or services as provided by this chapter, and 6-50 those contracts shall be executed by the board in the name of the 6-51 district. 6-52 Sec. 71.060. SUITS; PAYMENT OF JUDGMENTS. (a) The district 6-53 may, through its board, sue and be sued in any court of this state 6-54 in the name of the district. Service of process in a suit may be 6-55 had by serving the general manager or other officers appointed by 6-56 the board. 6-57 (b) The courts of this state shall take judicial notice of 6-58 the creation of the district. 6-59 (c) A court of this state that renders a money judgment 6-60 against the district may require the board to pay the judgment from 6-61 money in the district depository that is not dedicated to the 6-62 payment of any indebtedness of the district. 6-63 Sec. 71.061. SEAL. The board shall adopt a seal for the 6-64 district and may alter the form of the seal from time to time. 6-65 (Sections 71.062 to 71.080 reserved for expansion 6-66 SUBCHAPTER D. POWERS AND DUTIES 6-67 Sec. 71.081. DUTIES. The district shall: 6-68 (1) provide, by contract or grant, funds for services 6-69 and activities for children; 6-70 (2) promote sound public policy regarding the problems 7-1 of children and the need for services and activities for children; 7-2 (3) promote and facilitate the identification, 7-3 development, coordination, and delivery of services and activities 7-4 for children; 7-5 (4) monitor and assess the effectiveness of programs 7-6 providing services or activities for children; 7-7 (5) recommend the role that each public and private 7-8 entity in the district should have in providing children's services 7-9 and activities; 7-10 (6) facilitate coordination of local services and 7-11 activities for children; and 7-12 (7) encourage cooperative, comprehensive, and 7-13 complementary planning among public, private, and volunteer 7-14 individuals and organizations engaged in providing services and 7-15 activities for children. 7-16 Sec. 71.082. LIMITATION ON POWERS. The district may not 7-17 directly provide services or activities for children. 7-18 Sec. 71.083. ANNUAL PLAN. (a) The district shall prepare 7-19 and approve an annual plan for expending funds for children's 7-20 services and activities. 7-21 (b) The plan must establish funding priorities for programs 7-22 and activities for children. 7-23 Sec. 71.084. GRANTS. (a) The district may award grants to 7-24 fund services and activities for children in the district. 7-25 (b) Any person, including a person who receives funds from 7-26 other governmental entities, may apply for a grant under this 7-27 section. The district may award grants that continue for one year. 7-28 The district may renew a grant. 7-29 (c) The district shall develop: 7-30 (1) eligibility criteria for applicants; 7-31 (2) grant application procedures; 7-32 (3) guidelines relating to grant amounts; and 7-33 (4) procedures for evaluating grant applications. 7-34 (d) The district may require a grant applicant to match a 7-35 grant in a ratio determined by the district. A person may not use 7-36 funds received from the district to meet a match requirement. 7-37 (e) The district shall develop criteria for disqualifying a 7-38 director from participating in a decision relating to an 7-39 application for a grant if the director is an employee, board 7-40 member, or officer of the applicant. 7-41 Sec. 71.085. FUNDING BY OTHER GOVERNMENTAL ENTITY. The 7-42 state or a political subdivision of the state may not reduce 7-43 funding for a program as a result of the program receiving a grant 7-44 under this subchapter. 7-45 Sec. 71.086. GIFTS, GRANTS, LOANS, AND OTHER FUNDS. To 7-46 carry out any purposes or powers under this chapter, the district 7-47 may apply for, accept, receive, and administer gifts, grants, 7-48 loans, and other funds available from any source. 7-49 Sec. 71.087. CONSULTATION, CONTRACTS, AND COOPERATION WITH 7-50 OTHER GOVERNMENTAL AGENCIES AND ENTITIES. To carry out any 7-51 purposes or powers under this chapter, the district may advise, 7-52 consult, contract, and cooperate with the federal government and 7-53 its agencies, the state and its agencies, local governments, and 7-54 private entities. 7-55 Sec. 71.088. CONTRACTS FOR PURCHASE OF VEHICLES, EQUIPMENT, 7-56 AND SUPPLIES OVER $10,000. (a) If the estimated amount of a 7-57 proposed contract for the purchase of vehicles, equipment, or 7-58 supplies is more than $10,000, the board shall ask for competitive 7-59 bids as provided by Subchapter B, Chapter 271, Local Government 7-60 Code. 7-61 (b) This section does not apply to purchases of property 7-62 from public agencies or to contracts for personal or professional 7-63 services. 7-64 Sec. 71.089. METHODS AND PROCEDURES. The board may 7-65 prescribe: 7-66 (1) the method of making purchases and expenditures by 7-67 and for the district; and 7-68 (2) accounting and control procedures for the 7-69 district. 7-70 (Sections 71.090 to 71.100 reserved for expansion 8-1 SUBCHAPTER E. CHANGE IN BOUNDARIES OR 8-2 DISSOLUTION OF DISTRICT 8-3 Sec. 71.101. EXPANSION OF DISTRICT TERRITORY. 8-4 (a) Registered voters of a defined territory that is not included 8-5 in a district may file a petition with the secretary of the board 8-6 requesting the inclusion of the territory in the district. The 8-7 petition must be signed by at least 50 registered voters of the 8-8 territory or a majority of those voters, whichever is less. 8-9 (b) The board by order shall set a time and place to hold a 8-10 hearing on the petition to include the territory in the district. 8-11 The board shall set a date for the hearing that is after the 30th 8-12 day after the date the board issues the order. 8-13 (c) If after the hearing the board finds that annexation of 8-14 the territory into the district would be feasible and would benefit 8-15 the district, the board may approve the annexation by a resolution 8-16 entered in its minutes. The board is not required to include all 8-17 of the territory described in the petition if the board finds that 8-18 a modification or change is necessary or desirable. 8-19 (d) Annexation of territory is final when approved by a 8-20 majority of the voters at an election held in the district and by a 8-21 majority of the voters at a separate election held in the territory 8-22 to be annexed. If the district has outstanding debts or taxes, the 8-23 voters in the election to approve the annexation must also 8-24 determine if the annexed territory will assume its proportion of 8-25 the debts or taxes if added to the district. 8-26 (e) The election ballots shall be printed to provide for 8-27 voting for or against the following, as applicable: 8-28 (1) "Adding (description of territory to be added) to 8-29 the __________ Children's Resource District." 8-30 (2) "(Description of territory to be added) assuming 8-31 its proportionate share of the outstanding debts and taxes of the 8-32 __________ Children's Resource District, if it is added to the 8-33 district." 8-34 (f) The election shall be held after the 45th day and on or 8-35 before the 60th day after the date the election is ordered. The 8-36 election shall be ordered and notice of the election shall be given 8-37 in the same manner as provided by Sections 71.024 and 71.025 for 8-38 ordering and giving notice of an election authorizing creation of 8-39 the district. Section 41.001(a), Election Code, does not apply to 8-40 an election held under this section. 8-41 Sec. 71.102. DISSOLUTION. (a) A district may be dissolved 8-42 as provided by this section. 8-43 (b) The board may order an election on the question of 8-44 dissolving the district and disposing of the district's assets and 8-45 obligations. The board shall order an election if the board 8-46 receives a petition requesting an election that is signed by a 8-47 number of residents of the district equal to at least 15 percent of 8-48 the registered voters in the district. 8-49 (c) The election shall be held not later than the 60th day 8-50 after the date the election is ordered. Section 41.001(a), 8-51 Election Code, does not apply to an election ordered under this 8-52 section. 8-53 (d) The ballot for the election shall be printed to permit 8-54 voting for or against the proposition: "The dissolution of the 8-55 _________ Children's Resource District." The election shall be 8-56 held in accordance with the applicable provisions of the Election 8-57 Code. 8-58 (e) If a majority of the votes in the election favor 8-59 dissolution, the board shall find that the district is dissolved. 8-60 If a majority of the votes in the election do not favor 8-61 dissolution, the board shall continue to administer the district, 8-62 and another election on the question of dissolution may not be held 8-63 before the first anniversary of the most recent election to 8-64 dissolve the district. 8-65 Sec. 71.103. TRANSFER OF ASSETS AFTER DISSOLUTION. (a) If 8-66 a majority of the votes in the election favor dissolution, the 8-67 board shall: 8-68 (1) transfer the land, buildings, improvements, 8-69 equipment, and other assets that belong to the district to a county 8-70 or another governmental entity in the district; or 9-1 (2) administer the property, assets, and debts in 9-2 accordance with Section 71.104. 9-3 (b) If the district transfers the land, buildings, 9-4 improvements, equipment, and other assets to a county or other 9-5 governmental entity, the county or entity assumes all debts and 9-6 obligations of the district at the time of the transfer, and the 9-7 district is dissolved. 9-8 Sec. 71.104. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS 9-9 AFTER DISSOLUTION. (a) If the district does not transfer the 9-10 land, buildings, improvements, equipment, and other assets to a 9-11 county or another governmental entity in the district, the board 9-12 shall continue to control and administer the property, debts, and 9-13 assets of the district until all funds have been disposed of and 9-14 all district debts have been paid or settled. 9-15 (b) After the board finds that the district is dissolved, 9-16 the board shall: 9-17 (1) determine the debt owed by the district; and 9-18 (2) impose on the property included in the district's 9-19 tax rolls a tax that is in proportion of the debt to the property 9-20 value. 9-21 (c) The board may institute a suit to enforce payment of 9-22 taxes and to foreclose liens to secure the payment of taxes due the 9-23 district. 9-24 Sec. 71.105. RETURN OF SURPLUS TAX MONEY. (a) When all 9-25 outstanding debts and obligations of the district are paid, the 9-26 board shall order the secretary to return the pro rata share of all 9-27 unused tax money to each district taxpayer. 9-28 (b) A taxpayer may request that the taxpayer's share of 9-29 surplus tax money be credited to the taxpayer's county taxes. If a 9-30 taxpayer requests the credit, the board shall direct the secretary 9-31 to transmit the funds to the county tax assessor-collector. 9-32 Sec. 71.106. REPORT; DISSOLUTION ORDER. (a) After the 9-33 district has paid all its debts and has disposed of all its assets 9-34 and funds as prescribed by Sections 71.104 and 71.105, the board 9-35 shall file a written report with the commissioners court of each 9-36 county in which the district is located setting forth a summary of 9-37 the board's actions in dissolving the district. 9-38 (b) Not later than the 10th day after the date it receives 9-39 the report and determines that the requirements of this section 9-40 have been fulfilled, the commissioners court of each county shall 9-41 enter an order dissolving the district. 9-42 (Sections 71.107 to 71.120 reserved for expansion 9-43 SUBCHAPTER F. DISTRICT FINANCES 9-44 Sec. 71.121. FISCAL YEAR. (a) The district operates on the 9-45 fiscal year established by the board. 9-46 (b) The fiscal year may not be changed if revenue bonds of 9-47 the district are outstanding or more than once in a 24-month 9-48 period. 9-49 Sec. 71.122. ANNUAL AUDIT. The board annually shall have an 9-50 audit made of the financial condition of the district. 9-51 Sec. 71.123. DISTRICT AUDIT AND RECORDS. The annual audit 9-52 and other district records are open to inspection during regular 9-53 business hours at the principal office of the district. 9-54 Sec. 71.124. ANNUAL BUDGET. (a) The administrator of the 9-55 district shall prepare a proposed annual budget for the district. 9-56 (b) The proposed budget must contain a complete financial 9-57 statement, including a statement of: 9-58 (1) the outstanding obligations of the district; 9-59 (2) the amount of cash on hand to the credit of each 9-60 fund of the district; 9-61 (3) the amount of money received by the district from 9-62 all sources during the previous year; 9-63 (4) the amount of money available to the district from 9-64 all sources during the ensuing year; 9-65 (5) the amount of the balances expected at the end of 9-66 the year in which the budget is being prepared; 9-67 (6) the estimated amount of revenues and balances 9-68 available to cover the proposed budget; and 9-69 (7) the estimated tax rate that will be required. 9-70 Sec. 71.125. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The 10-1 board shall hold a public hearing on the proposed annual budget. 10-2 (b) The board shall publish notice of the hearing in a 10-3 newspaper of general circulation in the district not later than the 10-4 10th day before the date of the hearing. 10-5 (c) Any resident of the district is entitled to be present 10-6 and participate at the hearing. 10-7 (d) At the conclusion of the hearing, the board shall adopt 10-8 a budget by acting on the budget proposed by the administrator. 10-9 The board may make any changes in the proposed budget that in its 10-10 judgment the interests of the taxpayers demand. 10-11 (e) The budget is effective only after adoption by the 10-12 board. 10-13 Sec. 71.126. AMENDING BUDGET. After adoption, the annual 10-14 budget may be amended on the board's approval. 10-15 Sec. 71.127. LIMITATION OF EXPENDITURES. Money may not be 10-16 spent for an expense not included in the annual budget or an 10-17 amendment to it. 10-18 Sec. 71.128. SWORN STATEMENT. As soon as practicable after 10-19 the close of the fiscal year, the administrator shall prepare for 10-20 the board a sworn statement of the amount of money that belongs to 10-21 the district and an account of the disbursements of that money. 10-22 Sec. 71.129. SPENDING AND INVESTMENT LIMITATIONS. (a) The 10-23 district may not incur a debt payable from revenues of the district 10-24 other than the revenues on hand or to be on hand in the current and 10-25 immediately following fiscal year of the district. 10-26 (b) The board may invest operating reserves only in funds or 10-27 securities specified by Article 836 or 837, Revised Statutes. 10-28 Sec. 71.130. DEPOSITORY. (a) The board shall name at least 10-29 one bank to serve as depository for district funds. 10-30 (b) District funds, other than those invested as provided by 10-31 Section 71.129(b) and those transmitted to a bank of payment for 10-32 obligations issued or assumed by the district, shall be deposited 10-33 as received with the depository bank and must remain on deposit. 10-34 This subsection does not limit the power of the board to place a 10-35 portion of district funds on time deposit or to purchase 10-36 certificates of deposit. 10-37 (c) Before the district deposits funds in a bank in an 10-38 amount that exceeds the maximum amount secured by the Federal 10-39 Deposit Insurance Corporation, the bank must execute a bond or 10-40 other security in an amount sufficient to secure from loss the 10-41 district funds that exceed the amount secured by the Federal 10-42 Deposit Insurance Corporation. 10-43 (Sections 71.131 to 71.140 reserved for expansion 10-44 SUBCHAPTER G. TAXES 10-45 Sec. 71.141. LEVY OF TAXES. (a) The board annually may 10-46 impose property taxes in an amount not to exceed the limit approved 10-47 by the voters at the election authorizing the levy of taxes. 10-48 (b) The tax rate for all purposes may not exceed 10 cents on 10-49 each $100 valuation of all taxable property in the district. 10-50 (c) The taxes may be used to pay: 10-51 (1) the indebtedness issued or assumed by the 10-52 district; and 10-53 (2) the maintenance and operating expenses of the 10-54 district. 10-55 Sec. 71.142. BOARD AUTHORITY. The board may impose taxes 10-56 for the entire year in which the district is created. 10-57 Sec. 71.143. ADOPTING TAX RATE. In adopting the tax rate, 10-58 the board shall consider the income of the district from sources 10-59 other than taxation. 10-60 Sec. 71.144. TAX ASSESSMENT AND COLLECTION. (a) Title 1 of 10-61 the Tax Code governs the appraisal, assessment, and collection of 10-62 district taxes. 10-63 (b) The board may provide for the appointment of a tax 10-64 assessor-collector for the district or may contract for the 10-65 assessment and collection of taxes as provided by the Tax Code. 10-66 SECTION 2. This Act takes effect on the date on which the 10-67 constitutional amendment proposed by S.J.R. No. 21, 73rd 10-68 Legislature, Regular Session, takes effect. If that amendment is 10-69 not approved by the voters, this Act has no effect. 10-70 SECTION 3. The importance of this legislation and the 11-1 crowded condition of the calendars in both houses create an 11-2 emergency and an imperative public necessity that the 11-3 constitutional rule requiring bills to be read on three several 11-4 days in each house be suspended, and this rule is hereby suspended. 11-5 * * * * * 11-6 Austin, 11-7 Texas 11-8 March 24, 1993 11-9 Hon. Bob Bullock 11-10 President of the Senate 11-11 Sir: 11-12 We, your Committee on Health and Human Services to which was 11-13 referred S.B. No. 488, have had the same under consideration, and I 11-14 am instructed to report it back to the Senate with the 11-15 recommendation that it do not pass, but that the Committee 11-16 Substitute adopted in lieu thereof do pass and be printed. 11-17 Moncrief, 11-18 Acting Chair 11-19 * * * * * 11-20 WITNESSES 11-21 FOR AGAINST ON 11-22 ___________________________________________________________________ 11-23 Name: Lacey Sloan x 11-24 Representing: Tx Assn Against Sex Assault 11-25 City: Austin 11-26 ------------------------------------------------------------------- 11-27 Name: Shannon Noble x 11-28 Representing: Tx Network of Youth Services 11-29 City: Austin 11-30 ------------------------------------------------------------------- 11-31 Name: Leticia Van de Putte x x 11-32 Representing: Self 11-33 City: Austin 11-34 ------------------------------------------------------------------- 11-35 Name: Leslie Lanham x 11-36 Representing: Children's Defense Fund of Tx 11-37 City: Austin 11-38 -------------------------------------------------------------------