74(R) HB 3054 Senate Committee Report

BILL ANALYSIS

H.B. 3054
By: Junell (Montford)
Finance
05-25-95
Senate Committee Report (Unamended)
BACKGROUND

In 1989, the legislature passed S.B. 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." This 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 the aim of
reducing crime. In 1993, the Act was amended to apply to all
counties with a population of 130,000 or more and allowed cities in
counties with a population of over 1,000,000 to also establish
"crime control districts" within their jurisdictions upon voter
approval within the appropriate jurisdiction. However, certain
ambiguities exist regarding the selection of board members and also
other ineligible counties have expressed an interest in exploring
the possibility of calling an election to create crime control
districts within their jurisdictions.

PURPOSE

As proposed, H.B. 3054 amends Article 2370c-5, V.T.C.S., which
establishes the Municipal Crime Control and Prevention District Act
and amends the Tax Code by adding Section 321.106 relating the a
Municipal Crime Control District Tax. Makes this legislation apply
to any municipality as well as providing changes for district board
membership.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
under SECTIONS 1 (Sections 5.05, 6.05(f), 6.11(c), Article 2370c-5,
V.T.C.S.), 2 (Sec. 321.106(d), Tax Code) and 3 (Sec. 323.105(f),
Tax Code).

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 44, V.T.C.S., by adding Article 2370c-5,
as follows:

Art. 2370c-5. MUNICIPAL CRIME CONTROL AND PREVENTION
DISTRICTS

PART 1. GENERAL PROVISIONS

Sec. 1.01. SHORT TITLE: Municipal Crime Control and
Prevention District Act.

Sec. 1.02. DEFINITIONS. Defines "board," "director,"
"district," "municipal secretary" and "municipal treasurer."

Sec. 1.03. CERTAIN MUNICIPALITIES AUTHORIZED TO CREATE
DISTRICTS. (a) Authorizes the governing body of a
municipality, by ordinance, to create a crime control district
(district), subject to a confirmation election held as
provided by Part 3 of this article, with boundaries
coextensive with the territorial boundaries of the
municipality.

(b) Prohibits a district from containing more than one
municipality.

PART 2. TEMPORARY DIRECTORS.

Sec. 2.01. TEMPORARY DIRECTORS; PRESIDING OFFICER. (a)
Authorizes the governing body of a municipality that creates
a district to serve ex officio as the temporary board of
directors of the district.

(b) Requires the governing body to appoint a number of
temporary directors equal to the number of persons serving
on the municipality's governing body by the 60th day after
the date a district is created by the municipality's
governing body if the governing body does not serve as the
temporary board of directors.

(c) Requires the temporary board to organize by the 75th
day after the date a district is created by the
municipality's governing body and elect a presiding officer
from the membership if the temporary directors are
appointed.

(d) Requires a person to reside in the district to be
eligible to serve as an appointed temporary director.

(e) Authorizes the governing body to remove an appointed
temporary director under certain conditions.

Sec. 2.02. VACANCY IN OFFICE. Requires a vacancy in the
office of temporary director to be filled in the same manner
that the vacant position was originally filled.

PART 3. CREATION OF DISTRICTS

Sec. 3.01. CONFIRMATION ELECTION. Authorizes a district to
be created and a sales and use tax to be authorized only if
the creation of the district is confirmed and the tax is
approved by a majority of the qualified voters of the district
voting at an election called and held for that purpose.

Sec. 3.02. ORDERING ELECTION. Authorizes a majority of the
temporary directors to order that a confirmation election be
held after a majority of the temporary directors of a district
have approved a budget plan and a crime control plan in
accordance with Section 3.09 of this article.

Sec. 3.03. ELECTION ORDER. (a) Requires an order calling
an election under Section 3.02 of this article to state
certain information.

(b) Authorizes the proposed rate for the district sales and
use tax imposed under Chapter 321B, Tax Code, to be a
certain percentage.

(c) Prohibits the proposed rate of district sales and use
tax imposed under Chapter 321B, Tax Code, by a district
located in a municipality with a population of 80,000 or
more that is located in a county with a population of 80,000
or more that is located in a county with a population of
less than 100,000 from exceeding one-fourth of one percent.

(d) Prohibits a district from adopting a sales and use tax
if adoption at the rate proposed would result in a combined
local sales and use tax rate of more than two percent in any
location in the district.

Sec. 3.04. NOTICE. Requires the temporary directors of a
district to give notice of a confirmation election by
publishing a substantial copy of the election order in a
newspaper with general circulation in the district once a week
for two consecutive weeks. Requires the first publication to
appear at least 35 days before the date set for the election.

Sec. 3.05. ELECTION DATE. (a) Requires a confirmation
election to be held not less than 35 days nor more than 60
days after the date on which the election is ordered.

(b) Provides that Section 41.001(a), Election Code, does
not apply to a confirmation election ordered under this
article.

Sec. 3.06. BALLOT PROPOSITION. Requires the ballot for a
confirmation election to be printed with certain information
to permit voting for or against the proposition.

Sec. 3.07. CANVASSING RETURNS. (a) Requires the temporary
board of a district to meet and canvass the returns of the
election by the second day or later than the 13th day after
the date of a confirmation election.
(b) Requires the temporary board to issue an order
declaring the district created if the temporary board finds
that the election results are favorable to the proposition
to confirm the creation of the district.

(c) Prohibits the temporary board from ordering another
election on the matter before the first anniversary of the
date of the preceding election if the temporary board finds
that the election results are not favorable to the
proposition to confirm the creation of the district.

Sec. 3.08. DISSOLUTION OF TEMPORARY BOARD. Provides that
the board is dissolved on the fifth anniversary of the date a
district is created by the municipality's governing body and
prohibits the creation of the district from being confirmed if
the creation of the district has not been confirmed under this
article.

Sec. 3.09. CRIME CONTROL PLAN AND BUDGET PLAN. (a)
Requires the temporary board of a district to formulate and
approve a two-year crime control plan and a two-year budget
plan. Requires the crime control plan to include certain
information.

(b) Requires the budget plan to include certain
information.

(c) Requires the crime control plan and budget plan to be
adopted in the same manner as provided for adoption of a
proposed annual budget under Section 6.05 of this article.

(d) Requires the temporary board to coordinate its efforts
with local law enforcement officials in developing its crime
control plan and budget plan.

Sec. 3.10. FINANCING CREATION OF DISTRICT. (a) Requires a
municipality creating a district under this article to pay the
entire cost of creating the district.

(b) Requires the district to reimburse the municipality for
actual expenses incurred in the creation and confirmation of
the district if the creation of the district is confirmed.
Sec. 3.11. DONATIONS, GIFTS, AND ENDOWMENTS. Authorizes the
temporary board to accept donations, gifts, and endowments to
be held in trust for any purpose and under any direction,
limitation, or provision prescribed in writing by the donor
that is consistent with this article and the proper management
of the district.

PART 4. DISTRICT ADMINISTRATION

Sec. 4.01. BOARD OF DIRECTORS. (a) Authorizes the
governing body of the municipality that creates a district by
a confirmation election held after September 1, 1995, to serve
ex officio as the board of directors of the district.

(b) Provides that the district is governed by a board of
directors selected in the same manner as provided for the
selection of temporary directors under Section 2.01(b) of
this article and composed of a number of directors equal to
the number of persons serving on the municipality's
governing body if the governing body of the municipality
does not serve as the board of directors.

(d) Requires a person to reside in the district to be
eligible to serve as a director.

(e) Authorizes the governing body to remove an appointed
director of the board under certain conditions.

Sec. 4.02. BOND. (a) Requires each director to execute a
bond for $5000 payable to the district, conditioned on the
faithful performance of the person's duties as director before
assuming the duties of the office.

(b) Requires the bond to be kept in the permanent records
of the district.

Sec. 4.03. BOARD VACANCY. Requires a vacancy in the office
of director to be filled for the unexpired term in the same
manner that the vacant position was originally filled.

Sec. 4.04. OFFICERS. Requires a board to elect from among
its members a president and vice president. Requires the
board to also appoint a secretary. Requires the municipal
secretary to serve ex officio as secretary for the district.
Requires the municipal treasurer to serve ex officio as
treasurer for the district.

Sec. 4.05. OFFICERS' TERMS; VACANCY. (a) Provides that
each officer of a board serves for a term of one year.

(b) Requires a vacancy in a board office to be filled for
the unexpired term by the board.

Sec. 4.06. COMPENSATION. Sets forth terms of compensation.

Sec. 4.07. VOTING REQUIREMENT. Sets forth voting
requirements in matters relating to the business of the
district.

Sec. 4.08. ADMINISTRATION. Authorizes the board to contract
with a public agency or private vendor to assist in the
administration or management of the district or to assist in
the review of applications for funding available under this
article.

PART 5. POWERS AND DUTIES

Sec. 5.01. DISTRICT RESPONSIBILITIES; LIMITATIONS ON
EXPENDITURES. (a) Authorizes a district to finance all the
costs of a crime control and crime prevention program,
including the costs for personnel, administration, expansion,
enhancement, and capital expenditures. Authorizes a program
to include certain information.

(b) Requires a district to coordinate its efforts with the
local community justice council in developing its crime
control and crime prevention program.

(c) Requires the district to fund an annual evaluation
program to study the effect, efficiency, and effectiveness
of new or expanded crime control and crime prevention
programs.

(d) Authorizes the board to seek the assistance of the
Office of State-Federal Relations in identifying and
applying for federal grants for criminal justice programs.
Requires the board to notify the appropriate council of
government of any intent to submit an application for
federal funds for inclusion in the regional criminal justice
planning process.

(e) Authorizes the district to apply for and receive grants
for criminal and juvenile justice programs from the criminal
justice division in the governor's office.

Sec. 5.02. MANAGEMENT, CONTROL, AND ADMINISTRATION.
Requires a board to manage, control, and administer the
district funds, except as provided by Section 6.06 of this
article.

Sec. 5.03. OPEN MEETINGS; ADMINISTRATIVE PROCEDURE.
Provides that a board is subject to Chapters 551 and 2001,
Government Code.

Sec. 5.04. LIABILITY. Provides that a director is not
liable for civil damages or criminal prosecution for any act
performed in good faith in the execution of duties as a
director or for an action taken by the board.

Sec. 5.05. DISTRICT RULES. Authorizes a board to adopt
rules governing district-funded programs and the duties,
functions, and responsibilities of district staff and
employees. Prohibits rules adopted under this section from
conflicting with the rules relating to employees of the
municipality in which the district is located.

Sec. 5.06. METHODS AND PROCEDURES. (a) Authorizes a board
to prescribe the method of making purchases and expenditures
by and for the district. Authorizes the board to enter
purchasing contracts that involve spending more than $15,000
only after competitive bidding as provided by Chapter 252B,
Local Government Code, to the extent those provisions can be
made applicable to the board.

(b) Authorizes the board to prescribe accounting and
control procedures for the district.

Sec. 5.07. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.
Authorizes the board to acquire or lease property, facilities,
or equipment for the sole purpose of administering the
district.

Sec. 5.08. REIMBURSEMENT FOR SERVICES. (a) Requires a
county or municipality located entirely outside the boundaries
of the district, on request, to reimburse a district for the
district's cost of including in a district program a resident
of that county or municipality.

(b) Authorizes the board to require reimbursement from the
state for the district's cost of including in a district
program or facility a person who is a resident of the state
but who is not a resident of the district.

(c) Authorizes the board to contract with a municipal or
county government or with the state or federal government
for the municipal, county, state, or federal government to
reimburse the district for including a person in a district
program.

Sec. 5.09. SERVICE CONTRACTS. Authorizes the board to
contract on behalf of the district with a municipality,
county, special district, or other political subdivision of
the state, with a state or federal agency, with individuals,
and with private entities to furnish the staff, facilities,
equipment, programs, and services the board considers
necessary for the effective operation of the district.

Sec. 5.10. DONATIONS, GRANTS, AND ENDOWMENTS. Authorizes
the board to accept on behalf of the district donations,
grants, and endowments to be held in trust for any purpose and
under any direction, limitation, or provision prescribed in
writing by the donor that is consistent with this article and
the proper management of the district.

Sec. 5.11. AUTHORITY TO SUE AND BE SUED. Authorizes a board
to sue and be sued in the name of the district.

PART 6. DISTRICT FINANCES

Sec. 6.01. FISCAL YEAR. Provides that a district is
operated on a fiscal year established by the board.

(b) Prohibits a fiscal year from being changed more than
once in a 24-month period.

Sec. 6.02. ANNUAL AUDIT. Requires a board to annually have
an audit made of the financial condition of the district by an
independent auditor.

Sec. 6.03. DISTRICT AUDIT AND RECORDS. Provides that an
annual audit and other district records are open to inspection
during regular business hours at the principal office of the
district.

Sec. 6.04. ANNUAL BUDGET. (a) Requires the board to
prepare a proposed annual budget subject to the provisions of
Section 6.05 of this article. Requires the board to consider
the applications submitted by the chief administrative officer
of the municipality in which the district is created, with the
consent of the municipality's governing body, for program
funding.

(b) Requires the proposed budget to contain a complete
financial statement, including a statement containing
certain information.

Sec. 6.05. NOTICE; BOARD HEARING; ADOPTION OF BUDGET. (a)
Requires a board to hold a public hearing on the proposed
annual budget by the 100th day before the beginning of each
fiscal year.

(b) Requires the board to publish notice of the hearing in
a newspaper with general circulation in the district by the
10th day before the date of the hearing.

(d) Requires the board to adopt a budget by the 80th day
before the beginning of each fiscal year. Authorizes the
board to make any changes in the proposed budget that in its
judgment the interests of the taxpayers demand.

(e) Requires the board to submit the budget to the
governing body of the municipality in which the district is
located by the 10th day after the date the budget is
adopted.

(f) Authorizes the board, by rule, to develop and adopt
procedures for adopting a budget different from the
procedures outlined in this article, but requires the board
to hold public hearings relating to the budget.
Sec. 6.06. NOTICE; HEARING; APPROVAL OR REJECTION OF BUDGET.
(a) Requires the governing body of the municipality in which
a district is located to hold a public hearing on the proposed
annual budget by the 45th day before the beginning of each
fiscal year.

(b) Requires the governing body to publish notice of the
hearing in a newspaper with general circulation in the
district by the 10th day before the date of the hearing.

(d) Requires the governing body to approve or reject the
budget submitted by the board by the 30th day before the
beginning of the fiscal year. Prohibits the governing body
from amending the budget.

(e) Requires the governing body and the board to meet and
together amend and approve the budget before the beginning
of the fiscal year if the governing body rejects the budget
submitted by the board.

(f) Authorizes the budget to be amended after the beginning
of the fiscal year on approval by the board and the
governing body.

Sec. 6.07. LIMITATION ON EXPENDITURES. Authorizes money to
be spent only for an expense included in an annual budget or
an amendment to it.

Sec. 6.08. SWORN STATEMENT. Requires the municipal
treasurer to prepare for the board a sworn statement of the
amount of money that belongs to the district and an account of
the disbursements of that money.

Sec. 6.09. SPENDING AND INVESTMENT LIMITATIONS. (a)
Prohibits a district from incurring 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.

(b) Prohibits the board from investing district funds in
funds or securities other than those specified by Article
836 or 837, V.T.C.S., or by Chapter 2256, Government Code.

Sec. 6.10. DEPOSIT OF FUNDS. (a) Requires the board to
deposit district funds in a special account in the treasury of
the municipality in which the district is located.

(b) Requires district funds, other than those invested as
provided by Section 6.09(b) of this article, to be deposited
as received in the municipal treasury and to remain on
deposit.

(c) Requires the board to reimburse the municipality for
any costs the municipality incurs for performing the duties
imposed under this section, other than costs of municipal
personnel.

Sec. 6.11. APPLICATIONS FOR PROGRAM FUNDING. (a)
Authorizes the board to consider an application for district
funding of a program described by Section 5.01 of this article
only if the application is made by a chief administrative
officer of the municipality in which the district is located
and with the consent of the governing body of the
municipality.

(b) Requires applications under this section to be
submitted by the 140th day before the beginning of the
fiscal year, unless an exception has been adopted by rule.

PART 7. BONDS

Sec. 7.01. BONDS. Prohibits a board from issuing or selling
general obligation bonds, revenue bonds, or refunding bonds.

PART 8. DISTRICT CONTINUATION

Sec. 8.01. CONTINUATION REFERENDUM. (a) Authorizes the
board to hold a referendum on the question of whether to
continue the district.

(b) Requires the board to order a continuation referendum
if a petition that requests continuation of the district is
presented in accordance with this part or if a majority of
the governing body of the municipality in which the district
is located by resolution requests continuation after notice
and a public hearing on the matter. Prohibits the board
from holding a continuation referendum before the fifth
anniversary of the date on which the district is created or
before the third anniversary of the date of the last
preceding continuation or dissolution referendum.

Sec. 8.02. METHODS FOR INITIATING ELECTION. Authorizes a
board to order a continuation referendum on its own motion by
a majority vote of its members. Requires the board to order
a certain continuation referendum.

Sec. 8.03. APPLICATION FOR PETITION; ISSUANCE. Requires the
secretary to issue to the applicants a petition to be
circulated among registered voters for their signatures if the
municipal secretary receives a written application signed by
10 or more registered voters.

Sec. 8.04. CONTENTS OF APPLICATION. Requires an application
to contain certain information to be valid.

Sec. 8.05. CONTENTS OF PETITION. Requires the petition to
contain certain information to be valid.

Sec. 8.06. COPIES. Requires the municipal secretary to keep
the application and a copy of the petition in the files of the
secretary's office. Requires the secretary to issue to the
applicants as many copies as the applicants request.

Sec. 8.07. FILING OF PETITION; NUMBER OF SIGNATURES.
Requires the petition to be filed with the municipal secretary
by the 60th day after the date of its issuance to form the
basis for the ordering of a referendum and requires it to
contain a number of signatures of registered voters of the
municipality for all candidates for mayor in the most recent
city council election.

Sec. 8.08. REVIEW BY MUNICIPAL SECRETARY. (a) Requires the
municipal secretary, on request of any district resident, to
check each name on a petition to determine whether the signer
is a registered voter of the district. Requires a person
requesting verification by the secretary to pay the secretary
a sum equal to 20 cents per name before the commencement of
the verification.

(b) Prohibits the secretary from counting a signature under
certain conditions.
Sec. 8.09. CERTIFICATION. Requires the municipal secretary
to certify to the board the number of registered voters
signing the petition by a certain date a petition is filed.

Sec. 8.10. ORDER OF ELECTION. (a) Requires a board to
record in its minutes the date the petition is filed and the
date it is certified by the municipal secretary.

(b) Requires the board to order a referendum to be held at
the regular polling place in each county election precinct
in the municipality on the next uniform election date
authorized by Section 41.001(a), Election Code, that occurs
at least 45 days after the date of the order. Requires the
board to state in the order the proposition to be voted on
in the referendum. Provides that the order is prima facie
evidence of compliance with all provisions necessary to give
it validity.

Sec. 8.11. APPLICATION OF ELECTION CODE. Requires a
continuation referendum to be held and the returns to be
prepared and canvassed in conformity with the Election Code.

Sec. 8.12. RESULTS OF REFERENDUM. (a) Requires the board
to certify a fact to the secretary of state by a certain date
of the canvass of the returns and to provide that the district
is dissolved and ceases to operate except as provided by
Subsection (d) of this section if a majority of the votes cast
in a referendum under this section are not for the
continuation of a district.

(b) Authorizes a district that is dissolved and that owns
property or has outstanding short-term or long-term
liabilities to continue to operate temporarily as provided
by Section 10.02 of this article.

(c) Prohibits another continuation referendum from being
held except as authorized by Section 8.01 of this article if
a majority of the votes cast in the referendum under this
section are for the continuation of the district.

Sec. 8.13. CONTEST OF ELECTION. Authorizes any qualified
voter of the district to contest the election by filing a
petition in a district court located in the district.

PART 9. DISTRICT DISSOLUTION

Sec. 9.01. DISSOLUTION REFERENDUM. (a) Authorizes a board
to hold a referendum on the question of whether to dissolve
the district.

(b) Requires the board to order a dissolution referendum if
a petition requesting dissolution of the district is
presented in accordance with this part or if a majority of
the governing body of the municipality in which the district
is located by resolution requests dissolution after notice
and a public hearing on the matter. Prohibits the board
from holding a dissolution referendum before the fifth
anniversary of the date on which the district is created or
before the third anniversary of the date of the last
preceding continuation or dissolution referendum.

(c) Requires the ballot to be printed with certain
information to permit voting for or against the proposition
for a dissolution referendum.

Sec. 9.02. METHODS FOR INITIATING ELECTION. Authorizes a
board to order a dissolution referendum on its own motion by
a majority vote of its members. Requires the board to order
a certain dissolution referendum.

Sec. 9.03. APPLICATION FOR PETITION; ISSUANCE. Requires the
secretary to issue to the applicants a petition to be
circulated among registered voters for their signatures if the
municipal secretary receives a written application signed by
10 or more registered voters of a district.

Sec. 9.04. CONTENTS OF APPLICATION. Requires an application
for petition to contain certain information to be valid.

Sec. 9.05. CONTENTS OF PETITION. Requires a petition to
contain certain information to be valid.

Sec. 9.06. COPIES. Requires the municipal secretary to keep
the application and a copy of the petition in the files of the
secretary's office. Requires the secretary to issue to the
applicants as many copies as the applicant's request.

Sec. 9.07. FILING OF PETITION; NUMBER OF SIGNATURES.
Requires the petition to be filed with the municipal secretary
by the 60th day after the date of its issuance, and requires
it to contain certain information.

Sec. 9.08. REVIEW BY MUNICIPAL SECRETARY. (a) Requires the
municipal secretary to check each name on a petition to
determine whether the signer is a registered voter of the
district. Requires a person requesting verification by the
secretary to pay the secretary a certain sum before
commencement of the verification.

(b) Prohibits the secretary from counting a signature under
certain conditions.

Sections 9.09 and 9.10. Make conforming changes.

Sec. 9.11. APPLICATION OF ELECTION CODE. Requires a
dissolution referendum to be held and the returns to be
prepared and canvassed in conformity with the Election Code.

Sec. 9.12. RESULTS OF REFERENDUM. Provides that a majority
of the votes cast in a referendum under this section are for
the dissolution of a district, the board shall certify that
fact to the secretary of state by a certain date after the
canvass of the returns and the district is dissolved and
ceases to operate except as provided by Subsection (b) of this
section.

(b) Authorizes a district that is dissolved and that has
outstanding short-term and long-term liabilities to continue
to operate temporarily as provided by Section 10.02 of this
article.

Sec. 9.13. CONTEST OF ELECTION. Authorizes any qualified
voter of the district to contest the election by filing a
petition in a district court located in the district by a
certain date.

PART 10. DISSOLUTION

Sec. 10.01. SUNSET PROVISION. Provides that the district is
dissolved on a certain date unless the district is continued
as provided by Part 8 of this article.

Sec. 10.02. DISSOLUTION OF DISTRICT. (a) Requires the
district to convey or transfer to the municipality in the
district certain information.

(b) Prohibits the district from levying taxes for district
purposes or for providing crime control activities and
programs for the residents of the district.

(c) Requires the board, by a certain date, to adopt a
resolution certifying each outstanding short-term and long-term liability. Requires the municipality in which the
district is located to assume the outstanding short-term and
long-term liability. Requires the municipality to collect
the sales and use tax for the district for the remainder of
the calendar year and may continue to collect the tax if the
revenue is needed to retire liabilities of the district that
were assumed by the municipality. Requires the
municipality's governing body to notify the comptroller of
this continuation by a certain date. Requires any tax
collected after the liabilities have been retired to be
transferred or conveyed as prescribed by Subsection (a) of
this section.

(d) Authorizes the district and the board to continue to
operate for a period not to exceed two months after carrying
out the responsibilities required by Subsections (a) and (c)
of this section. Provides that the board and the district
are continued in effect for the purpose of satisfying these
responsibilities.

(e) Dissolves the board and district entirely by a certain
date if the board and the district are continued in effect
under Subsection (d) of this section.

(f) Prohibits a district or board that continues to operate
under Subsection (d) of this section from incurring any new
liabilities without the approval of the governing body of
the municipality in which the district is located. Requires
the governing board to review the outstanding liabilities of
the district and set a specific date by which the
municipality must retire the district's outstanding
liabilities by a certain date.

(g) Requires district-funded programs, including additional
courts, to immediately terminate and district-funded
personnel, except personnel required to retire the
responsibilities of the district, are terminated.

(h) Requires the board to convey or transfer to the
municipality the value of the items described in Subsection
(a) of this section.

PART 11. STATE LIABILITY

Sec. 11.01. STATE LIABILITY. Provides that the state is
not obligated for the support, maintenance, or dissolution
of a crime control district created under this article.

SECTION 2. Amends Chapter 321B, Tax Code, by adding Section
321.106, as follows:

Sec. 321.106. MUNICIPALITY CRIME CONTROL DISTRICT TAX. (a)
Requires a municipality in which a crime control and
prevention district is established to adopt a sales and use
tax for the benefit of the district in the area of the
district for the purpose of financing the operation of the
municipal crime control and prevention district. Authorizes
the revenue from the tax to used only for the purpose of
financing the operation of the municipal crime control and
prevention district. Requires the proposition for adopting a
tax under this section and the proposition for creation of a
crime control and prevention district to be submitted at the
same election. Provides that a tax under this section is not
an additional sales and use tax.

(b) Authorizes a tax adopted for a district under this
section for financing the operation of the district to be
decreased in certain increments. Authorizes the rate of tax
adopted for a district under this section to be increased in
certain increments, not to exceed a certain total tax rate.
Requires the ballot to be printed to provide for voting for
or against a certain proposition. Provides that the new
rate takes effect as prescribed by Sections 321.102(b) and
(d).

(c) Requires the comptroller to remit to the municipality
in which the municipal crime control and prevention district
is created amounts collected at the rate imposed under this
section as part of the regular allocation of municipal tax
revenue collected by the comptroller. Requires the
municipality to deposit the amounts it receives for the
comptroller under this subsection in a special account in
the treasury of the municipality as required under Article
2370c-5, V.T.C.S. (Municipal Crime Control and Prevention
District Act). Prohibits retailers from being required to
use an allocation or reporting procedure in the collection
of taxes under this section that is different from the
procedures that retailers use in the collection of other
sales and use taxes under this chapter. Provides that an
item, transaction, or service that is taxable in a
municipality under a sales or use tax authorized by another
section of this chapter is taxable under this section.
Provides that an item, transaction, or service that is not
taxable in a municipality under a sales and use tax
authorized by another section of this chapter is not taxable
under this section.

(d) Authorizes the comptroller to adopt rules and
authorizes the governing body of the municipality to adopt
orders to administer this section.

(e) Provides that a tax imposed under this section takes
effect on the first day of the first calendar quarter after
the expiration of the first complete calendar quarter
occurring after the date on which the comptroller receives
a notice of the action as required by Section 321.405(b).

SECTION 3. Amends Section 323.105, Tax Code, to make conforming
changes.

SECTION 4. Amends Section 1.01, Article 2370c-4, V.T.C.S., to make
a conforming change.

SECTION 5. Amends Section 1.04(1), Article 2379c-4, V.T.C.S., to
make a conforming change.

SECTION 6. Repealer: Section 1.05A, Article 2370c-4, V.T.C.S.
(Counties authorized to create districts).

SECTION 7. Provides that the provisions of Article 2370c-5,
V.T.C.S., as added by this Act, govern the operation of a crime
control and prevention district that was created in a municipality
through a confirmation election under Article 2370c-4, V.T.C.S.
(Crime Control and Prevention District Act), that was held before
September 1, 1995.

SECTION 8. Authorizes the tax authorized under Section 321.106, Tax
Code, as added by this Act, for a municipality in which a crime
control and prevention district was created through a confirmation
election under Article 2370c-4, V.T.C.S., that was held before the
effective date of this Act to take effect not earlier than October
1, 1995.

SECTION 9. Effective date: September 1, 1995.

SECTION 10. Emergency clause.