BILL ANALYSIS
C.S.H.B. 3054
By: Junell
5-4-95
Committee Report (Substituted)
BACKGROUND
In 1989, the Legislature passed Senate Bill 1694 establishing the
County Crime Control and Prevention District Act. This act was
written to apply only to Tarrant County and allowed for the
creation of a "crime control district". If approved by the voters
in the county, the "district" could levy a sales and use tax of up
to one half cent and use the revenues from this tax to fund law
enforcement and crime prevention programs with aim of reducing
crime. In 1993 House Bill 22, which amended the County Crime
Control and Prevention District Act to apply to all counties with
a population of 130,000 or more and allowed cities in counties of
over 1,000,000 to also establish "crime control districts" within
their jurisdictions upon approval of the voters within the
appropriate jurisdiction.
On March 4, 1995, the City of Fort Worth became the first
municipality to hold an election on the question of the creation of
a crime control district pursuant to the Crime Control and
Prevention District Act (Article 2370c-4, Vernon's Texas Civil
Statutes) as amended in 1993. The election was successful with 59%
of the voters voting in favor of the creation of the district. In
the course of the election, it became evident that while state law
(Article 2370c-4) clearly provided the authority for a municipality
to hold an election and impose a sales tax, the Crime Control and
Prevention District Act as amended in 1993 failed to provide
clarity as to those sections that were applicable to counties and
those sections applicable to cities. It was felt by city officials
in Fort Worth, that the Crime Control and Prevention Act needed
further amending to provide clarity as well as address certain
aspects of the law relating to the selection of board members. In
addition, since the election in Fort Worth, other cities, including
some ineligible under current state law, have expressed an interest
in exploring the possibility of calling an election to create crime
control districts within their jurisdictions.
PURPOSE
This bill amends Title 44, Revised Statutes, by adding Article
2370c-5 which establishes a "Municipal Crime Control and Prevention
District Act" and amends Chapter 321 of the Tax Code by adding
Section 321.106 relating to a "Municipal Crime Control District
Tax". This new act is modeled after current law with minor changes
making the legislation applicable to any municipality as well as
providing for minor changes relating to board membership. The bill
also amends the Article 2370c-4, the Crime Control and Prevention
District Act, as amended in 1993, to apply only to counties.
RULEMAKING AUTHORITY
It is the opinion of the committee that this bill does grant
additional rulemaking authority to the board of directors of a
municipal crime control district in: SECTION 1. (PART 5, Sec.
5.05); SECTION 1 (PART 6, Sec. 6.05 (f)); SECTION 1 (PART 6, Sec.
6.10(c); and to the State Comptroller in SECTION 2, Sec.
321.106(d).
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Title 44, Revised Statutes, by adding a new
Article 2370c-5, "Municipal Crime Control and Prevention
Districts."
PART 1. GENERAL PROVISIONS
Sec. 1.01 Establishes the title of the Act.
Sec. 1.02 Defines "board", "director", "district", "municipal
secretary", and "municipal treasurer."
Sec. 1.03 Authorizes municipalities to create a crime control
district within their jurisdiction subject to an election.
PART 2. TEMPORARY DIRECTORS
Sec. 2.01 Requires a municipality creating a district to name
a temporary board within 60 days. The governing body shall
appoint a number of temporary directors equal to the number of
persons serving on the municipalities governing body. These
persons must reside in the proposed district. The temporary
board shall organize and elect a chairperson from the
membership. The temporary directors are subject to removal of
office by the governing body under certain conditions.
Sec. 2.02 Provides for provisions to fill vacancies.
PART 3. CREATION OF DISTRICTS
Sec. 3.01 Restates that a district may be created and a sales
and use tax may be levied only if an election is called and
held for the purpose of creating the district.
Sec. 3.02 Provides that an election may be ordered by the
temporary board only after a budget plan and crime control
plan is approved in accordance with Section 3.09 is reviewed
and supported by the municipality's governing body.
Sec. 3.03 Requires that an election order must state the
proposition to be voted on, the date of the election, the poll
hours, the poll location, a summary budget plan and crime
control plan, and the proposed rate of sales and use tax. The
proposed sales tax rate may be only one-eighth, one-fourth,
three-eighths, or one-half of one percent. The combined local
sales and use tax may not exceed two percent in any location
within the district.
Sec. 3.04 Requires that proper notice of an election must be
met by the publication of a copy of election order once a week
for two consecutive weeks appearing at least 35 days prior to
election.
Sec. 3.05 States that an election can be held not less than 35
days nor more than 35 days after the election is ordered.
Section 41.001(a) of the Election Code relating to uniform
election dates does not apply.
Sec. 3.06 Provides for ballot proposition to be voted for or
against.
Sec. 3.07 Requires that temporary board meet no earlier than
the second day or later than 13th day after the election to
canvass the returns. If results are favorable, the temporary
board shall issue an order declaring the district created. If
results are not favorable, an another election can not be
called until one year has elapsed.
Sec. 3.08 States that if a favorable election does not occur
before the 5th year after the district is proposed by a
municipality, the municipality can not create a district under
this Act.
Sec. 3.09 Requires that a temporary board formulate a two-year
crime control plan and budget plan that includes a detailed
list of crime control and prevention strategies, a method of
annual evaluation, the amount of money budgeted for each
strategy, the amount budgeted for administration, the
estimated funds available to the district, the estimated
ending balances, and the estimated tax rate required. The
crime control plan and budget plan must be adopted through a
public hearing format in the same manner as provided in
Section 6.05 of the Act. The temporary board shall coordinate
with local law enforcement officials.
Sec. 3.10 Requires that the municipality shall pay the costs
of election but shall be reimbursed if the district is
confirmed.
Sec. 3.11 States that the temporary board can, on behalf of
the district, accept donations, gifts, and endowments to be
held in trust.
PART 4. DISTRICT ADMINISTRATION
Sec. 4.01 States that a district is governed by a board of
directors with the number of directors as provided for the
selection of temporary directors as provided for in Section
2.01(b) and composed of a number of directors equal to the
number of persons serving on the municipality's governing
body. One director is appointed by each member of the
governing body subject to the approval of the governing body.
The terms of the directors shall are staggered two year terms
and the term expires if the appointing member's term expires
on the governing body. Members of the board of directors are
subject to removal of office by the governing body under
certain conditions.
Sec. 4.02 Provides that each director must execute a bond for
$5,000 payable to the district. The expense associated with
the bond may be paid from district funds.
Sec. 4.03 Provides for provisions to fill vacancies on board.
Sec. 4.04 Requires that board elect a president and vice
president from its membership. The City Secretary and City
Treasurer shall serve as secretary and treasurer respectively
for the district.
Sec. 4.05 States that officers of the board shall serve for a
term of one year and that vacancies shall be filled for an
unexpired term by the board.
Sec. 4.06 States that directors and officers serve without
compensation but may be reimbursed for actual expenses which
must be reported and approved by the board.
Sec. 4.07 Requires a majority vote on business of the board
and a two-thirds majority vote of the board to reject an
application submitted by the municipality for funding.
Sec. 4.08 Provides that the board may contract with a public
agency or private vendor to assist in the administration of
the district.
PART 5. POWERS AND DUTIES
Sec. 5.01 Provides that a district may finance costs of a
crime control and prevention program including costs for
personnel, administration, expansion, enhancement, and capital
expenditures. A program may include police and law
enforcement related programs, community-related crime
prevention strategies, specific treatment and prevention
programs, court and prosecution services, and additional
jails, jailers, guards, and other staff. The district is
required to coordinate its efforts with the local community
justice council in developing its program. The district shall
also fund an annual evaluation program. The district may seek
the assistance of the Office of State-Federal Relations in
identifying grants and may apply and receive grants from the
criminal justice division in the governor's office.
Sec. 5.02 States that the board, except as it relates to the
budget approval process outlined in Section 6.06, shall
manage, control, and administer the district funds.
Sec. 5.03 States that the board is subject to the open
meetings provisions and administrative procedures outlined in
the Government Code.
Sec. 5.04 Provides that a director is not liable for civil
damages or criminal prosecution for acts performed in good
faith in the execution of duties.
Sec. 5.05 Provides that a board may adopt rules relating to
funded programs and duties, functions, and responsibilities of
district employees as long the rules relating to district
employees does not conflict with any rules established for
employees of the municipality in which the district is
located.
Sec. 5.06 Provides that a board may enter into purchasing
contracts that involve the expenditure of more than $15,000
only after competitive bidding as provided by state law. The
board may prescribe accounting and control procedures and the
purchasing agent for the district shall be the municipal
purchasing agent.
Sec. 5.07 Provides that the board may acquire or lease
property and equipment for the purpose of administering the
district.
Sec. 5.08 States that the district may require and contract
for reimbursement from a municipality and a county located
entirely outside of the district and from the state, and
federal governments for the costs associated with including a
person in a district program that is not a resident of the
district.
Sec. 5.09 Provides that the board may contract subject to the
approval of the governing body with other entities to furnish
staff, facilities, equipment, programs, and services necessary
for the operation of the district.
Sec. 5.10 States that the board can, on behalf of the
district, accept donations, gifts, and endowments to be held
in trust.
Sec. 5.11 Provides that a board may sue and be sued in the
name of the district.
PART 6. DISTRICT FINANCES
Sec. 6.01 Provides that the district is operated on a fiscal
year established by the board which may not be changed more
than once in a 24-month period.
Sec. 6.02 Requires that the board shall have an annual audit
made of the financial condition of the district by an
independent auditor.
Sec. 6.03 Requires that the annual audit and other district
records are open to inspection during business hours.
Sec. 6.04 Requires that the board shall prepare an annual
budget subject to the provisions of Section 6.05 of this Act.
The board shall consider for program funding those
applications submitted by the chief administrative officer of
the municipality which are submitted with the consent of the
governing body. program funding. The proposed budget must
contain a financial statement of the outstanding obligations
of the district; the amount of cash on hand; the amount of
money received by the district from all sources during the
previous year; the estimated amount of money available to the
district from all sources during the current fiscal year; the
amount of money needed to fund programs approved for funding
by the board; the amount of money requested for programs that
were not approved for funding by the board; the tax rate for
the next fiscal year; the amount of the estimated year end
balances; and the estimated amount of revenues and balances
available to cover the proposed budget.
Sec. 6.05 Requires the board to hold a public hearing not
later than 100 days before the fiscal year prior to the
adoption of the budget. Notice of the public hearing must be
published 10 days prior to hearing. The board shall adopt a
budget not later than 80 days prior to the start of the fiscal
year. The board shall submit the budget to the governing body
not later than the 10th day after the budget is adopted. The
board may adopt different rules and procedures for adopting a
budget so long as those rules and procedures include public
hearings.
Sec. 6.06 Requires the governing body of the municipality to
hold a public hearing not later than 45 days before the fiscal
year prior to adoption of the budget. Notice of the public
hearing must be published 10 days prior to hearing. The
governing body shall adopt or reject the budget without
amendments not later than 30 days prior to the start of the
fiscal year. If the governing body rejects the budget, the
governing body and board shall meet to jointly amend and
approve the budget. An approved budget may be amended after
the start of the fiscal year on approval by the board and the
governing body.
Sec. 6.07 States that funds may be spent only for an expense
included in an annual budget or an amendment to it.
Sec. 6.08 Requires that not later than the 60th day after end
of the fiscal year, the municipal treasurer shall prepare a
sworn statement of the amount of money that belongs to the
district and an account of all expenditures.
Sec. 6.09 States that a district may not incur a debt payable
from revenues of the district other than the revenues on hand
or to be on hand in the current or immediately following
fiscal year of the district. The board may not invest district
funds in funds or securities other than those specified by
Article 836 or 837, Revised Statutes, or by Chapter 2256,
Government Code.
Sec. 6.10 Requires that district funds be deposited in a
special account in the treasury of the municipality. District
funds, other than those invested, shall be deposited as
received in the municipal treasury and must remain on deposit.
The board shall reimburse the municipality for any costs
incurred, other than personnel costs.
Sec. 6.11 States that a chief administrative officer of the
municipality in which a district is located may, with the
consent of the governing body, apply to the board for funding
of a program as described by Section 5.01 of this Act.
Applications must be submitted not later than the 140th day
before the beginning of the fiscal year. The board by rule may
develop and adopt application procedures. Only applications
received from the chief administrative officer may be
considered for funding by the board.
PART 7. BONDS
Sec. 7.01 States that a board may not issue or sell bonds
PART 8. DISTRICT CONTINUATION
Sec. 8.01 Provides that the board may hold a referendum on
the question of whether to continue the district but no
earlier than five years after the date on which the district
was first created or three years after the last continuation
or dissolution referendum. A continuation referendum shall
be called by the board if a valid petition is presented or
if a majority of the governing body passes a resolution
requesting continuation after notice and public hearing.
Sec. 8.02 Provides that a board may order a continuation
referendum by a motion and majority vote of its members upon
presentation of a valid petition or request of the governing
body.
Sec. 8.03 Requires the municipal secretary to issue a
petition if a written application is submitted signed by 10
or more registered voters.
Sec. 8.04 Outlines the requirements for the contents of an
application for a continuation petition.
Sec. 8.05 Outlines the requirements for the contents of a
valid continuation petition.
Sec. 8.06 Requires municipal secretary to keep the
application and a copy of the petition in the files of the
secretary's office and to issue to the applicants as many
copies of the petition as the applicants request.
Sec. 8.07 Requires that a valid petition must be filed not
later than 60 days after date of issuance and must contain a
number of signatures of registered voters of the
municipality equal to five percent of the number of votes
cast in the municipality for all candidates for mayor in the
most recent city council election.
Sec. 8.08 Outlines the petition review procedures by
municipal secretary.
Sec. 8.09 States that municipal secretary shall certify
signatures on petition to the board within 40 days after
petition is filed excluding weekends and holidays.
Sec. 8.10 Requires recording procedures by the board
relating to petitions and requires the board to order an
election on the next uniform election date if the board is
presented with a proper petition containing the required
signatures.
Sec. 8.11 States that the continuation referendum shall be
held in conformity with the Election Code.
Sec. 8.12 Requires that in the case where the majority of
votes cast are not for the continuation referendum, the
board shall notify the secretary of state within 10 days and
the district is dissolved and ceases to operate except as
provided by Section 10.02 of the Act. If the majority of
votes cast are for the continuation, another referendum may
not be held except as authorized by Section 8.01 of this
Act.
Sec. 8.13 Provides any qualified voter to contest results of
referendum.
PART 9. DISTRICT DISSOLUTION
Sec. 9.01 Provides that the board may hold a referendum on
the question of whether to dissolve the district but no
earlier than five years after the date on which the district
was first created or three years after the last continuation
or dissolution referendum. A dissolution referendum shall
be called by the board if a valid petition is presented or
if a majority of the governing body passes a resolution
requesting dissolution after notice and public hearing.
Sec. 9.02 Provides that a board may order a dissolution
referendum by a motion and majority vote of its members upon
presentation of a valid petition or request of the governing
body.
Sec. 9.03 Requires the municipal secretary to issue a
petition if a written application is submitted signed by 10
or more registered voters.
Sec. 9.04 Outlines the requirements for the contents of an
application for a dissolution petition.
Sec. 9.05 Outlines the requirements for the contents of a
valid dissolution petition.
Sec. 9.06 Requires municipal secretary to keep the
application and a copy of the petition in the files of the
secretary's office and to issue to the applicants as many
copies of the petition as the applicants request.
Sec. 9.07 Requires that a valid petition must be filed not
later than 60 days after date of issuance and must contain a
number of signatures of registered voters of the
municipality equal to five percent of the number of votes
cast in the municipality for all candidates for mayor in the
most recent city council election.
Sec. 9.08 Outlines the petition review procedures by
municipal secretary.
Sec. 9.09 States that municipal secretary shall certify
signatures on petition to the board within 40 days after
petition is filed excluding weekends and holidays.
Sec. 9.10 Requires recording procedures by the board
relating to petitions and requires the board to order an
election on the next uniform election date if the board is
presented with a proper petition containing the required
signatures.
Sec. 9.11 States that the dissolution referendum shall be
held in conformity with the Election Code.
Sec. 9.12 Requires that in the case where the majority of
votes cast are for the dissolution referendum, the board
shall notify the secretary of state within 10 days and the
district is dissolved and ceases to operate except as
provided by Section 10.02 of the Act. If less than a
majority of votes cast are for the dissolution, another
dissolution referendum may not be held except as authorized
by Section 9.01 of this Act.
Sec. 9.13 Provides any qualified voter to contest results of
referendum.
PART 10. DISSOLUTION
Sec. 10.01 States that unless the district is continued as
provided by Article 8 of the Act, the district is dissolved
the later of the fifth anniversary of the date the district
began collection of the tax authorized under this act or the
fifth anniversary of the most recent continuation or
dissolution referendum.
Sec. 10.02 Provides provisions for dissolution of district
with the conveyance or transfer to the municipality all
title to land, buildings, equipment, operating funds and
reserves, taxes levied, funds established for payment of
debt, and any accumulated employee retirement funds. After
the date the district is dissolved, the district may not
levy taxes for district purposes or for providing crime
control activities and programs for the residents of the
district. This section also provides provisions for
conveyance of any outstanding liabilities to the
municipality and provides the continuation of the collection
of the sales tax for the remainder of the calendar year and
for an additional calendar year if the revenue is needed to
retire liabilities of the district. The board and the
district may continue to operate during the period that
liabilities are retired but the district may not incur any
new liabilities without approval of the governing body. The
governing body is required to set a specific date to retire
the district's outstanding liabilities. Once the district
is dissolved, all district funded programs are terminated.
PART 11. STATE LIABILITY
Sec. 11.01 States that the state is not obligated for the
support, maintenance, or dissolution of a crime control
district created under this Act.
SECTION 2. Subchapter B, Chapter 321, Tax Code, is amended by
adding Section 321.106 Sec. 321.106 Provides for new
section in the tax code to govern
the administration of the municipal
crime control tax. Subject to an
election held in accordance with
the Municipal Crime Control and
Prevention District Act, a
municipality may adopt a sales a
use tax for the purpose of
financing the operation of a
municipal crime control and
prevention district. A board may
decrease in increments of one-eighth of one percent by order.
Any increases in the sales and use
tax require that an election be
held. The comptroller shall remit
to the municipality amounts
collected at the rate imposed under
this section as part o the regular
allocation to the municipality.
The comptroller may adopt rules and
the governing body of the
municipality may adopt orders to
administer this section. A tax
authorized under this section
created before the effective date
of this Act under Article 2370c-4,
Vernon's Texas Civil Statutes,
shall take effect no earlier than
October 1, 1995. A tax imposed
under this section takes effect on
the first day of the first quarter
after the date that the comptroller
receives notice as required by Sec.
321.405(b).
SECTION 3. Section 323.105, Tax Code, is amended to conform this
section of the tax code to apply only to County Crime Control
Districts.
SECTION 4. Section 1.01, Crime Control and Prevention District
Act (Article 2370c-4, Vernon's Texas Civil Statutes), is amended
to rename the title of this act as the County Crime Control and
Prevention District Act.
SECTION 5. Section 1.04(1), Crime Control and Prevention
District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is
amended to conform the definition of "district" as referring to a
county crime control and prevention district.
SECTION 6. Repeals Section 1.05A, Crime Control and Prevention
District Act (Article 2370c-4, Vernon's Texas Civil Statutes).
Section 1.05A allowed municipalities in counties of 1 million
population to create a crime control district.
SECTION 7. This section contains an applicability clause that
allows a municipality which held an election under the Crime
Control and Prevention District Act (Article 2370c-4, Vernon's
Texas Civil Statutes) and established a crime control district
prior to the effective date of this Act to adopt the provision of
this Act as the as the statutes governing the operation of the
crime control and prevention district.
SECTION 8. Effective Date: September 1, 1995.
SECTION 9. Emergency clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The original bill limited applicability of this bill to cities
with population of over 75,000; whereas the substitute allows any
city to create a crime control district. The substitute strikes
out a provision in the original allowing each member of the
governing body to appoint one person and adds provision that
allows the governing body to appoint a number of temporary board
members equal to the number of persons serving on the
municipality's governing body and that those persons must live in
the proposed district, and adds language relating to the
temporary board members.
The substitute strikes the provision requiring a governing body
to review and support the plan and budget prior to calling an
election. The substitute also limits to 1/4 of one percent the
amount of sales tax that a city with a population of more than
80,000 located in a county of less than 100,000 can adopt for a
crime district.
The substitute establishes a seven member board of directors with
staggered two-year terms, and establishes provisions for removing
members from the board. Also deletes some of the programs from
the list of specific treatment and prevention programs that are
normally conducted by other governmental entities and also allows
the board to contract with other entities subject to the approval
of the governing body.
The original stated that the district dissolved the later of six
years from creation or the fifth year after the most recent
continuation or dissolution referendum. The substitute provides
that the district is dissolved the later of five years from the
date the district began collecting the sales tax or the fifth
year after the most recent continuation or dissolution
referendum.
The substitute also states that a tax authorized under this
section for a district created prior to the effective date of
this act shall take effect no earlier than October 1, 1995.
SUMMARY OF COMMITTEE ACTION
Pursuant to posting of public notice, HB 3054 was considered by
the Committee on State Affairs in a public hearing on April 3,
1995. The Chair laid out HB 3054 and recognized Rep. Junell to
explain the bill. The committee considered a complete substitute
for the bill. The following persons testified for the bill:
Russell Smith representing the San Angelo Police Department; and
Joe Paniagua representing the Fort Worth City Council. The
complete committee substitute was withdrawn. The Chair left HB
3054 pending. HB 3054 was considered by the committee in a
public hearing on April 19, 1995. The Chair laid out HB 3054.
The committee considered a complete committee substitute for the
bill. One amendment was offered to the substitute which was
adopted without objection. The Chair directed the staff to
incorporate the amendment into the substitute. The bill was
reported favorably as substituted with the recommendation that it
do pass and be printed, by a record vote of 15 ayes, 0 nays, 0
pnv, 0 absent.