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  -------------------------------------------------------------------