By Van de Putte H.B. No. 345
74R1285 CLG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of children's resource districts;
1-4 authorizing a tax.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The Human Resources Code is amended by adding
1-7 Title 11 to read as follows:
1-8 TITLE 11. HUMAN SERVICES DISTRICTS
1-9 SUBTITLE A. DISTRICTS RELATING TO SERVICES FOR CHILDREN
1-10 CHAPTER 160. CHILDREN'S RESOURCE DISTRICTS
1-11 SUBCHAPTER A. GENERAL PROVISIONS
1-12 Sec. 160.001. DEFINITIONS. In this chapter:
1-13 (1) "Board" means the board of directors of the
1-14 district.
1-15 (2) "Director" means a member of the board.
1-16 (3) "District" means a children's resource district
1-17 created or to be created under this chapter.
1-18 Sec. 160.002. DISTRICT AUTHORIZATION. A children's resource
1-19 district may be created and, if created, must be maintained,
1-20 operated, and financed in the manner provided by Article III,
1-21 Section 48-f, of the Texas Constitution and by this chapter.
1-22 (Sections 160.003-160.020 reserved for expansion
1-23 SUBCHAPTER B. CREATION OF DISTRICT
1-24 Sec. 160.021. PETITION FOR CREATION OF DISTRICT. (a)
2-1 Before a district that contains territory located in only one
2-2 county may be created, the county judge of that county must receive
2-3 a petition signed by at least 100 registered voters of the
2-4 territory of the proposed district.
2-5 (b) Before a district that contains territory located in
2-6 more than one county may be created, the county judge of each
2-7 county in which the proposed district will be located must receive
2-8 a petition signed by at least 100 registered voters of the
2-9 territory of the county in which the judge presides and of the
2-10 proposed district.
2-11 (c) If there are fewer than 100 registered voters in any
2-12 area for which a separate petition must be filed, the petition must
2-13 be signed by a majority of the registered voters in the area.
2-14 Sec. 160.022. CONTENTS OF PETITION. (a) The petition
2-15 prescribed by Section 160.021 must show:
2-16 (1) that the district is to be created and is to
2-17 operate under Article III, Section 48-f, of the Texas Constitution;
2-18 (2) the name of the proposed district;
2-19 (3) the district's boundaries as designated by metes
2-20 and bounds or other sufficient legal description;
2-21 (4) that none of the territory in the district is
2-22 included in another children's resource district;
2-23 (5) whether the permanent directors will be appointed
2-24 or elected and:
2-25 (A) if the directors are to be appointed, who
2-26 will appoint the directors and how the directors will be appointed;
2-27 or
3-1 (B) if the directors are to be elected, the
3-2 method by which the directors will be elected, whether at large,
3-3 from single-member subdistricts, or both, so that a specific number
3-4 of directors are elected from each subdistrict and a specific
3-5 number are elected at large;
3-6 (6) the names of the temporary directors the
3-7 commissioners court must appoint under Section 160.030 or a request
3-8 that the commissioners court appoint temporary directors, if the
3-9 permanent directors are to be elected;
3-10 (7) the maximum tax rate to be voted on at the
3-11 creation election, which may not exceed 10 cents on each $100
3-12 valuation of all taxable property in the district; and
3-13 (8) the mailing address of each petitioner.
3-14 (b) If the directors are to be elected, the petition must
3-15 provide for the appointment of the same number of temporary
3-16 directors as there will be of permanent directors.
3-17 (c) The petition may provide the number of directors for the
3-18 district, which number must be an odd number.
3-19 Sec. 160.023. FILING OF PETITION; HEARING; ORDERING
3-20 ELECTION. (a) If the petition is in proper form, the county judge
3-21 shall receive the petition and shall file the petition with the
3-22 county clerk.
3-23 (b) At the next regular or special session of the
3-24 commissioners court held after the petition is filed with the
3-25 county clerk, the commissioners court shall set a place, date, and
3-26 time for the hearing to consider the petition.
3-27 (c) The county clerk shall issue a notice of the hearing in
4-1 accordance with Chapter 551, Government Code.
4-2 (d) At the time and place set for the hearing, the
4-3 commissioners court shall consider the petition. The commissioners
4-4 court shall grant the petition if the court finds that the petition
4-5 is in proper form and contains the information required by Section
4-6 160.022.
4-7 (e) If a petition is granted, the commissioners court shall
4-8 order an election to confirm the district's creation and to
4-9 authorize the levy of a tax not to exceed the amount prescribed by
4-10 the petition on each $100 valuation of all taxable property in the
4-11 district.
4-12 (f) If the petition indicates that the proposed district
4-13 will contain territory in more than one county, the commissioners
4-14 courts may not order an election until the commissioners court of
4-15 each county in which the district will be located has granted the
4-16 petition. The elections must be held on the same day.
4-17 (g) The election shall be held after the 45th day and on or
4-18 before the 60th day after the date the election is ordered.
4-19 (h) Section 41.001(a), Election Code, does not apply to an
4-20 election ordered under this section.
4-21 Sec. 160.024. ELECTION ORDER. The order calling the
4-22 election must state:
4-23 (1) the nature of the election, including the
4-24 proposition that is to appear on the ballot;
4-25 (2) the date of the election;
4-26 (3) the hours during which the polls will be open; and
4-27 (4) the locations of the polling places.
5-1 Sec. 160.025. NOTICE. (a) The commissioners court shall
5-2 give notice of the election by publishing a substantial copy of the
5-3 election order in a newspaper with general circulation in the
5-4 proposed district once a week for two consecutive weeks.
5-5 (b) The first publication must appear before the 35th day
5-6 before the date set for the election.
5-7 Sec. 160.026. BALLOT PROPOSITION. The ballot for the
5-8 election shall be printed to permit voting for or against the
5-9 proposition: "The creation of the ____________ (name of district)
5-10 Children's Resource District and the levy of annual taxes at a rate
5-11 not to exceed __________ (insert the amount prescribed by the
5-12 petition, not to exceed 10 cents) cents on each $100 valuation of
5-13 all taxable property in the district."
5-14 Sec. 160.027. ELECTION RESULT. (a) Except as provided by
5-15 Subsections (b) and (c), a district is created and organized under
5-16 this chapter if a majority of the votes cast in the election favor
5-17 creation of the district.
5-18 (b) If the proposed district contains territory in more than
5-19 one county, a majority of the votes cast in each county must favor
5-20 creation of the district.
5-21 (c) If a majority of the votes cast in a county within the
5-22 proposed district are against the creation of the district and a
5-23 majority of the votes cast in the remaining county or counties
5-24 favor creation of the district, the district may be created only in
5-25 the counties voting in favor of the proposed district.
5-26 (d) If the creation of the proposed district is defeated,
5-27 another election on the question of creating a district in the area
6-1 proposed for the defeated district may not be held before the first
6-2 anniversary of the most recent election concerning the creation of
6-3 the district.
6-4 Sec. 160.028. COMMISSIONERS COURT ORDER. When a district is
6-5 created, the commissioners court of each county in which the
6-6 district is located shall enter an order in its minutes that reads
6-7 substantially as follows:
6-8 "Whereas, at an election held on the ________ day of
6-9 __________ (month), ____ (year), in that part of __________ County,
6-10 State of Texas, described as (insert description unless the
6-11 district is countywide), there was submitted to the qualified
6-12 voters the question of whether that territory should be formed into
6-13 a children's resource district under state law; and
6-14 "Whereas, at the election _______ votes were cast in favor of
6-15 formation of the district and _______ votes were cast against
6-16 formation; and
6-17 "Whereas, the formation of the children's resource district
6-18 received the affirmative vote of the majority of the votes cast at
6-19 the election as provided by law;
6-20 "Now, therefore, the Commissioners Court of __________
6-21 County, State of Texas, finds and orders that the tract described
6-22 in this order has been duly and legally formed into a children's
6-23 resource district (or a part of a district) under the name of
6-24 __________, under Article III, Section 48-f, of the Texas
6-25 Constitution, and has the powers vested by law in the district."
6-26 Sec. 160.029. OVERLAPPING DISTRICTS. (a) If the territory
6-27 in one or more districts overlaps, the commissioners court of the
7-1 county in which the most recently created district is located by
7-2 order shall exclude the overlapping territory from that district.
7-3 (b) For purposes of this section, a district is created on
7-4 the date the election approving its creation is held. If the
7-5 elections approving the creation of two or more districts are held
7-6 on the same date, the most recently created district is the
7-7 district for which the hearing required by Section 160.023 was most
7-8 recently held.
7-9 (c) The fact that a district is created with boundaries that
7-10 overlap the boundaries of another district does not affect the
7-11 validity of either district.
7-12 Sec. 160.030. TEMPORARY DIRECTORS. (a) If the permanent
7-13 directors are to be elected, the commissioners court shall appoint
7-14 the temporary directors of the district on the date the
7-15 commissioners court enters the order required by Section 160.028.
7-16 (b) If the petition prescribed by Section 160.021
7-17 specifically names temporary directors, the commissioners court
7-18 shall appoint those persons to serve as temporary directors of the
7-19 district. If the petition requests that the commissioners court
7-20 appoint the temporary directors, the court shall appoint the
7-21 appropriate number of persons to serve as temporary directors of
7-22 the district. If the petition fails to name or state the number of
7-23 temporary directors, the board is composed of five directors.
7-24 (c) If the district is located in more than one county, the
7-25 commissioners courts shall each appoint a percentage of temporary
7-26 directors equal to the ratio that the number of district residents
7-27 in the county bears to the total number of district residents.
8-1 (d) The temporary directors serve as directors of the
8-2 district from the time the district is created under Section
8-3 160.027 until a majority of the initial directors take office.
8-4 (e) The commissioners court shall fill a vacancy in the
8-5 office of temporary director by appointment.
8-6 (Sections 160.031-160.040 reserved for expansion
8-7 SUBCHAPTER C. DISTRICT ADMINISTRATION
8-8 Sec. 160.041. BOARD OF DIRECTORS. The directors shall be
8-9 appointed or elected in accordance with the petition prescribed by
8-10 Section 160.021.
8-11 Sec. 160.042. DIRECTORS' APPOINTMENT. (a) If the directors
8-12 are to be appointed, the initial directors shall be appointed on or
8-13 before the date a commissioners court enters the creation order
8-14 required by Section 160.028. If the petition fails to state the
8-15 number of directors, the board is composed of five directors.
8-16 (b) The initial directors shall draw lots to determine who
8-17 will serve four-year terms and who will serve two-year terms. The
8-18 number of directors computed by dividing the total number of
8-19 directors of the district by two and rounding to the next larger
8-20 whole number serve four-year terms and the remaining directors
8-21 serve two-year terms.
8-22 (c) Successor directors are appointed in the same manner as
8-23 the original appointment and serve four-year terms.
8-24 Sec. 160.043. INITIAL DIRECTORS' ELECTION. (a) If the
8-25 directors are to be elected, the initial directors shall be elected
8-26 at an election held on the next first Saturday in May of an
8-27 even-numbered year following the creation of the district.
9-1 (b) If the directors are to be elected at large, the
9-2 appropriate number of candidates who receive the highest number of
9-3 votes at the initial election of directors are directors for the
9-4 district.
9-5 (c) If the directors are to be elected only from
9-6 subdistricts, the candidate for a subdistrict who receives the
9-7 highest number of votes from that subdistrict is a director for
9-8 that subdistrict.
9-9 (d) If the directors are to be elected from subdistricts and
9-10 at large:
9-11 (1) the candidate for a subdistrict who receives the
9-12 highest number of votes from that subdistrict is a director for
9-13 that subdistrict; and
9-14 (2) the number of candidates equal to the number of
9-15 directors to be elected at large who receive the highest number of
9-16 votes from the district at large are directors for the district at
9-17 large.
9-18 (e) The initial directors shall draw lots to determine who
9-19 will serve four-year terms and who will serve two-year terms. The
9-20 number of directors computed by dividing the total number of
9-21 directors of the district by two and rounding to the next larger
9-22 whole number serve four-year terms and the remaining directors
9-23 serve two-year terms.
9-24 (f) An election shall be held on the first Saturday in May
9-25 in each even-numbered year to elect the appropriate number of
9-26 successor directors for four-year terms.
9-27 Sec. 160.044. ELECTION FROM SUBDISTRICTS. (a) If some or
10-1 all of the directors are to be elected from subdistricts, the
10-2 temporary directors shall establish the subdistricts from which the
10-3 directors are elected. The subdistricts must be contiguous and
10-4 substantially equal in population.
10-5 (b) One director shall be elected from each subdistrict.
10-6 (c) Except as provided by Section 160.043(e) and Subsection
10-7 (d), each director is elected for a four-year term.
10-8 (d) The board shall revise each subdistrict after the
10-9 publication of each federal decennial census to reflect population
10-10 changes. At the first election after the subdistricts are revised,
10-11 each director of the district shall be elected. The directors
10-12 shall draw lots to determine who will serve two-year terms and who
10-13 will serve four-year terms in accordance with Section 160.043(e).
10-14 Sec. 160.045. CHANGE FROM APPOINTING TO ELECTING DIRECTORS.
10-15 (a) If the directors are appointed, the board may, on its own
10-16 motion, order that the district change to a system of electing the
10-17 directors from subdistricts.
10-18 (b) The board shall order that the district change to a
10-19 system of electing the directors from subdistricts if:
10-20 (1) each appointing authority passes a resolution
10-21 calling for the election of the directors; or
10-22 (2) the board receives a petition signed by at least
10-23 30 percent of the registered voters of the district calling for the
10-24 election of the directors.
10-25 (c) If the district changes to a system of electing the
10-26 directors, the initial elected directors shall be elected at an
10-27 election held on the next first Saturday in May of an even-numbered
11-1 year following the date the order is made, the resolution is
11-2 passed, or the petition is received. The board by order may
11-3 postpone the election date until the first Saturday in May of the
11-4 first even-numbered year following the year in which the order is
11-5 made, the resolution is passed, or the petition is received if:
11-6 (1) the election will occur within 60 days after the
11-7 date the order is made, the resolution is passed, or the petition
11-8 is received; or
11-9 (2) the board determines that there is not sufficient
11-10 time to comply with the requirements of law and to order the
11-11 election.
11-12 (d) Each director shall be elected from a subdistrict in
11-13 accordance with the provisions of this subchapter relating to the
11-14 initial and subsequent election of directors from subdistricts.
11-15 Sec. 160.046. NOTICE OF ELECTION. Before the 35th day
11-16 before the date of an election of directors, notice of the election
11-17 shall be published one time in a newspaper with general circulation
11-18 in the district.
11-19 Sec. 160.047. APPLICATION. (a) A person who wishes to have
11-20 the person's name printed on the ballot as a candidate for director
11-21 must file an application with the secretary of the board.
11-22 (b) If directors are elected only from subdistricts, the
11-23 application must specify the subdistrict for which the applicant is
11-24 to be a candidate.
11-25 (c) If the directors are elected from subdistricts and at
11-26 large, the application must specify:
11-27 (1) the subdistrict the candidate wishes to represent;
12-1 or
12-2 (2) that the candidate wishes to represent the
12-3 district at large.
12-4 Sec. 160.048. QUALIFICATIONS FOR OFFICE. (a) To be
12-5 eligible to be a candidate for or to serve as an elected or
12-6 appointed director, a person must be:
12-7 (1) a resident of the district; and
12-8 (2) a qualified voter.
12-9 (b) In addition to the qualifications required by Subsection
12-10 (a), a person who is elected from a subdistrict or who is appointed
12-11 to fill a vacancy for a subdistrict must be a resident of that
12-12 subdistrict.
12-13 (c) An employee of a district may not serve as a director of
12-14 the district.
12-15 Sec. 160.049. DIRECTORS' BOND. (a) Before assuming the
12-16 duties of the office, a director must execute a bond for $5,000
12-17 payable to the district, conditioned on the faithful performance of
12-18 the person's duties as director.
12-19 (b) The bond shall be kept in the permanent records of the
12-20 district.
12-21 (c) The board may pay for directors' bonds with district
12-22 funds.
12-23 Sec. 160.050. BOARD VACANCY. (a) A vacancy in the office
12-24 of an elected director shall be filled for the unexpired term by
12-25 appointment by the remaining directors.
12-26 (b) A vacancy in the office of an appointed director shall
12-27 be filled for the unexpired term in the same manner as the original
13-1 appointment.
13-2 Sec. 160.051. OFFICERS. (a) The board shall elect from
13-3 among the directors a president and a vice-president.
13-4 (b) The board shall appoint a secretary who need not be a
13-5 director.
13-6 Sec. 160.052. OFFICERS' TERMS; VACANCY. (a) Each officer
13-7 of the board serves for a term of one year.
13-8 (b) The board shall fill a vacancy in a board office for the
13-9 unexpired term.
13-10 Sec. 160.053. COMPENSATION. (a) Directors and officers
13-11 serve without compensation but may be reimbursed for actual
13-12 expenses incurred in the performance of official duties.
13-13 (b) Expenses reimbursed under this section must be:
13-14 (1) reported in the district's minutes book or other
13-15 district records; and
13-16 (2) approved by the board.
13-17 Sec. 160.054. VOTING REQUIREMENT. A majority of the members
13-18 of the board voting must concur in a matter relating to the
13-19 business of the district.
13-20 Sec. 160.055. GENERAL MANAGER; PERSONNEL. (a) The board
13-21 shall employ a general manager for a term and salary set by the
13-22 board.
13-23 (b) The general manager is the chief executive officer of
13-24 the district. Under policies established by the board, the general
13-25 manager is responsible to the board for:
13-26 (1) administering the directives of the board;
13-27 (2) keeping the district's records, including minutes
14-1 of the board's meetings;
14-2 (3) coordinating with state, federal, and local
14-3 agencies;
14-4 (4) developing plans and programs for the board's
14-5 approval;
14-6 (5) hiring, supervising, training, and discharging
14-7 district employees;
14-8 (6) contracting for or retaining technical, legal,
14-9 fiscal, and other professional services; and
14-10 (7) performing any other duty assigned to the general
14-11 manager by the board.
14-12 (c) The board may discharge the general manager on a
14-13 majority vote of all of the voting directors.
14-14 Sec. 160.056. GENERAL MANAGER'S AND EMPLOYEES' BONDS. (a)
14-15 The general manager and each employee of the district charged with
14-16 the collection, custody, or payment of any money of the district
14-17 shall execute a fidelity bond. The board shall approve the form,
14-18 amount, and surety of the bond.
14-19 (b) The district shall pay the premiums on the employees'
14-20 bonds under this section.
14-21 Sec. 160.057. PRINCIPAL OFFICE. The district shall maintain
14-22 its principal office inside the district's boundaries.
14-23 Sec. 160.058. RECORDS. (a) The district shall keep
14-24 complete and accurate accounts of its business transactions in
14-25 accordance with generally accepted methods of accounting.
14-26 (b) The district shall keep complete and accurate minutes of
14-27 its meetings.
15-1 (c) The district shall maintain its accounts, contracts,
15-2 documents, minutes, and other records at its principal office.
15-3 Sec. 160.059. CONTRACTS. The board may enter into contracts
15-4 for administration or services as provided by this chapter and
15-5 shall execute those contracts in the name of the district.
15-6 Sec. 160.060. SUITS; PAYMENT OF JUDGMENTS. (a) The
15-7 district may, through its board, sue and be sued in any court of
15-8 this state in the name of the district. Service of process in a
15-9 suit may be made by serving the general manager or an officer of
15-10 the board.
15-11 (b) The courts of this state shall take judicial notice of
15-12 the creation of the district.
15-13 (c) A court of this state that renders a money judgment
15-14 against the district may require the board to pay the judgment from
15-15 money in the district depository that is not dedicated to the
15-16 payment of an indebtedness of the district.
15-17 Sec. 160.061. SEAL. The board shall adopt a seal for the
15-18 district and may alter the form of the seal from time to time.
15-19 (Sections 160.062-160.080 reserved for expansion
15-20 SUBCHAPTER D. POWERS AND DUTIES
15-21 Sec. 160.081. DUTIES. The district shall:
15-22 (1) provide, by contract or grant, funds for services
15-23 and activities for children;
15-24 (2) promote sound public policy regarding the problems
15-25 of children and the need for services and activities for children;
15-26 (3) promote and facilitate the identification,
15-27 development, coordination, and delivery of services and activities
16-1 for children;
16-2 (4) monitor and assess the effectiveness of programs
16-3 providing services or activities for children;
16-4 (5) recommend the role that each public and private
16-5 entity in the district should have in providing children's services
16-6 and activities;
16-7 (6) facilitate coordination of local services and
16-8 activities for children; and
16-9 (7) encourage cooperative, comprehensive, and
16-10 complementary planning among public, private, and volunteer
16-11 individuals and organizations engaged in providing services and
16-12 activities for children.
16-13 Sec. 160.082. LIMITATION ON POWERS. The district may not
16-14 directly provide services or activities for children.
16-15 Sec. 160.083. ANNUAL PLAN. (a) The district shall prepare
16-16 and approve an annual plan for expending funds for children's
16-17 services and activities.
16-18 (b) The plan must establish funding priorities for programs
16-19 and activities for children.
16-20 Sec. 160.084. GRANTS. (a) The district may award grants to
16-21 fund services and activities for children in the district.
16-22 (b) Any person, including a person who receives funds from
16-23 other governmental entities, may apply for a grant under this
16-24 section. The district may award grants that continue for one year.
16-25 The district may renew a grant.
16-26 (c) The district shall develop:
16-27 (1) eligibility criteria for applicants;
17-1 (2) grant application procedures;
17-2 (3) guidelines relating to grant amounts; and
17-3 (4) procedures for evaluating grant applications.
17-4 (d) The district may require a grant applicant to match a
17-5 grant in a ratio determined by the district. A person may not use
17-6 funds received from the district to meet a match requirement.
17-7 (e) The district shall develop criteria for disqualifying a
17-8 director from participating in a decision relating to an
17-9 application for a grant if the director is an employee, board
17-10 member, or officer of the applicant.
17-11 Sec. 160.085. FUNDING BY OTHER GOVERNMENTAL ENTITY. The
17-12 state or a political subdivision of the state may not reduce
17-13 funding for a program as a result of the program's receiving a
17-14 grant under this subchapter.
17-15 Sec. 160.086. GIFTS, GRANTS, LOANS, AND OTHER FUNDS. To
17-16 carry out any purpose or power under this chapter, the district may
17-17 apply for, accept, receive, or administer gifts, grants, loans, or
17-18 other funds available from any source.
17-19 Sec. 160.087. CONSULTATION, CONTRACTS, AND COOPERATION WITH
17-20 OTHER GOVERNMENTAL AGENCIES AND ENTITIES. To carry out any purpose
17-21 or power under this chapter, the district may advise, consult,
17-22 contract, or cooperate with the federal government or its agencies,
17-23 the state or its agencies, local governments, or private entities.
17-24 Sec. 160.088. CONTRACTS FOR PURCHASE OF VEHICLES, EQUIPMENT,
17-25 AND SUPPLIES OVER $10,000. (a) If the estimated amount of a
17-26 proposed contract for the purchase of vehicles, equipment, or
17-27 supplies is more than $10,000, the board shall ask for competitive
18-1 bids as provided by Subchapter B, Chapter 271, Local Government
18-2 Code.
18-3 (b) This section does not apply to purchases of property
18-4 from public agencies or to contracts for personal or professional
18-5 services.
18-6 Sec. 160.089. METHODS AND PROCEDURES. The board may
18-7 prescribe:
18-8 (1) the method of making purchases and expenditures by
18-9 and for the district; and
18-10 (2) accounting and control procedures for the
18-11 district.
18-12 (Sections 160.090-160.100 reserved for expansion
18-13 SUBCHAPTER E. CHANGE IN BOUNDARIES OR
18-14 DISSOLUTION OF DISTRICT
18-15 Sec. 160.101. EXPANSION OF DISTRICT TERRITORY. (a)
18-16 Registered voters of a defined territory that is not included in a
18-17 district may file a petition with the secretary of the board
18-18 requesting the inclusion of the territory in the district. The
18-19 petition must be signed by at least 50 registered voters of the
18-20 territory or a majority of the registered voters of the territory,
18-21 whichever is less.
18-22 (b) The board by order shall set a time and place to hold a
18-23 hearing on the petition. The date for the hearing must be after
18-24 the 30th day after the date the board issues the order.
18-25 (c) If after the hearing the board finds that annexation of
18-26 the territory into the district is feasible and would benefit the
18-27 district, the board may approve the annexation by a resolution
19-1 entered in its minutes. The board is not required to include all
19-2 of the territory described by the petition if the board finds that
19-3 a change of the boundary of the territory is necessary or
19-4 desirable.
19-5 (d) Annexation of territory is final when approved both by a
19-6 majority of the voters at an election held in the district and by a
19-7 majority of the voters at a separate election held in the territory
19-8 to be annexed. If the district has outstanding debts or taxes, the
19-9 voters in the election to approve the annexation must also
19-10 determine whether the annexed territory will assume its proportion
19-11 of the debts or taxes if added to the district.
19-12 (e) The election ballots shall be printed to permit voting
19-13 for or against the following, as applicable:
19-14 (1) "Adding (description of territory to be added) to
19-15 the __________ Children's Resource District."
19-16 (2) "(Description of territory to be added) assuming
19-17 its proportionate share of the outstanding debts and taxes of the
19-18 __________ Children's Resource District, if it is added to the
19-19 district."
19-20 (f) The election shall be held after the 45th day and on or
19-21 before the 60th day after the date the election is ordered. The
19-22 election shall be ordered and notice of the election shall be given
19-23 in the same manner as provided by Sections 160.024 and 160.025 for
19-24 ordering and giving notice of an election authorizing creation of
19-25 the district. Section 41.001(a), Election Code, does not apply to
19-26 an election held under this section.
19-27 Sec. 160.102. DISSOLUTION. (a) A district may be dissolved
20-1 as provided by this section.
20-2 (b) The board may order an election on the question of
20-3 dissolving the district and disposing of the district's assets and
20-4 obligations. The board shall order an election if the board
20-5 receives a petition requesting an election that is signed by a
20-6 number of residents of the district equal to at least 15 percent of
20-7 the registered voters in the district.
20-8 (c) The election shall be held not later than the 60th day
20-9 after the date the election is ordered. Section 41.001(a),
20-10 Election Code, does not apply to an election ordered under this
20-11 section.
20-12 (d) The ballot for the election shall be printed to permit
20-13 voting for or against the proposition: "The dissolution of the
20-14 _________ Children's Resource District." The election shall be
20-15 held in accordance with the applicable provisions of the Election
20-16 Code.
20-17 (e) If a majority of the votes in the election do not favor
20-18 dissolution, the board shall continue to administer the district,
20-19 and another election on the question of dissolution may not be held
20-20 before the first anniversary of the most recent election to
20-21 dissolve the district.
20-22 Sec. 160.103. TRANSFER OF ASSETS AFTER DISSOLUTION. (a) If
20-23 a majority of the votes in an election under Section 160.102 favor
20-24 dissolution, the board shall find that the district is dissolved
20-25 and:
20-26 (1) transfer the land, buildings, improvements,
20-27 equipment, and other assets that belong to the district to a county
21-1 or another governmental entity in the district; or
21-2 (2) administer the property, assets, and debts in
21-3 accordance with Section 160.104.
21-4 (b) If the district transfers its property and other assets
21-5 under this section, the county or entity assumes all debts and
21-6 obligations of the district at the time of the transfer, and the
21-7 district is dissolved.
21-8 Sec. 160.104. ADMINISTRATION OF PROPERTY, ASSETS, AND DEBTS
21-9 AFTER DISSOLUTION. (a) If the district does not transfer its
21-10 property and other assets to a county or another governmental
21-11 entity in the district, the board shall continue to control and
21-12 administer the property, assets, and debts of the district until
21-13 all funds have been disposed of and all district debts have been
21-14 paid or settled.
21-15 (b) After the board finds that the district is dissolved,
21-16 the board shall:
21-17 (1) determine the debt owed by the district; and
21-18 (2) impose a tax on property that was included in the
21-19 district when the district was dissolved in an amount sufficient to
21-20 pay the debt when due.
21-21 (c) The board may institute a suit to enforce payment of
21-22 taxes and to foreclose liens to secure the payment of taxes due the
21-23 district.
21-24 Sec. 160.105. RETURN OF SURPLUS TAX MONEY. (a) When all
21-25 outstanding debts of the district are paid, the board shall order
21-26 the secretary to return the pro rata share of all unused tax money
21-27 to each district taxpayer.
22-1 (b) A taxpayer may request that the taxpayer's share of
22-2 surplus tax money be credited to the taxpayer's county taxes. The
22-3 board shall direct its secretary to transmit that amount to the
22-4 county tax assessor-collector.
22-5 Sec. 160.106. REPORT; DISSOLUTION ORDER. (a) After the
22-6 district has paid all debts and disposed of all assets as
22-7 prescribed by Sections 160.104 and 160.105, the board shall file
22-8 with the commissioners court of each county in which the district
22-9 is located a written report setting forth a summary of the board's
22-10 actions in dissolving the district.
22-11 (b) Not later than the 10th day after the date it receives
22-12 the report and determines that the requirements of this section
22-13 have been fulfilled, the commissioners court of each county shall
22-14 enter an order dissolving the district.
22-15 (Sections 160.107-160.120 reserved for expansion
22-16 SUBCHAPTER F. DISTRICT FINANCES
22-17 Sec. 160.121. FISCAL YEAR. (a) The district operates on
22-18 the fiscal year established by the board.
22-19 (b) The fiscal year may not be changed if revenue bonds of
22-20 the district are outstanding or more than once in a 24-month
22-21 period.
22-22 Sec. 160.122. ANNUAL AUDIT. The board annually shall have
22-23 an audit made of the financial condition of the district.
22-24 Sec. 160.123. AUDIT AND RECORDS. The annual audit and other
22-25 district records are open to inspection during regular business
22-26 hours at the principal office of the district.
22-27 Sec. 160.124. ANNUAL BUDGET. (a) The general manager of
23-1 the district shall prepare a proposed annual budget for the
23-2 district.
23-3 (b) The proposed budget must contain a complete financial
23-4 statement, including a statement of:
23-5 (1) the outstanding obligations of the district;
23-6 (2) the amount of cash on hand to the credit of each
23-7 fund of the district;
23-8 (3) the amount of money received by the district from
23-9 all sources during the previous year;
23-10 (4) the amount of money available to the district from
23-11 all sources during the ensuing year;
23-12 (5) the amount of the balances expected at the end of
23-13 the year in which the budget is being prepared;
23-14 (6) the estimated amount of revenue and balances
23-15 available to cover the proposed budget; and
23-16 (7) the estimated tax rate that will be required.
23-17 Sec. 160.125. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
23-18 board shall hold a public hearing on the proposed annual budget.
23-19 (b) The board shall publish notice of the hearing in a
23-20 newspaper of general circulation in the district not later than the
23-21 10th day before the date of the hearing.
23-22 (c) Any resident of the district is entitled to be present
23-23 at and participate in the hearing.
23-24 (d) At the conclusion of the hearing, the board shall adopt
23-25 a budget by acting on the budget proposed by the general manager.
23-26 The board may make any changes in the proposed budget that in its
23-27 judgment the interests of the taxpayers demand.
24-1 (e) The budget is effective only after adoption by the
24-2 board.
24-3 Sec. 160.126. AMENDING BUDGET. After adoption, the annual
24-4 budget may be amended on the board's approval.
24-5 Sec. 160.127. LIMITATION OF EXPENDITURES. Money may not be
24-6 spent for an expense not included in the annual budget or an
24-7 amendment to it.
24-8 Sec. 160.128. SWORN STATEMENT. As soon as practicable after
24-9 the close of the fiscal year, the general manager shall prepare for
24-10 the board a sworn statement of the amount of money that belongs to
24-11 the district and an account of the disbursements of that money.
24-12 Sec. 160.129. SPENDING AND INVESTMENT LIMITATIONS. (a) The
24-13 district may not incur a debt payable from revenue of the district
24-14 other than the revenue on hand or to be on hand in the current and
24-15 immediately following fiscal year of the district.
24-16 (b) The board may invest operating reserves only in funds or
24-17 securities specified by Article 836 or 837, Revised Statutes.
24-18 Sec. 160.130. DEPOSITORY. (a) The board shall name at
24-19 least one bank to serve as depository for district funds.
24-20 (b) The district shall deposit with the depository funds,
24-21 other than those invested as provided by Section 160.129(b) and
24-22 those transmitted to a bank of payment for obligations issued or
24-23 assumed by the district, as they are received and shall keep the
24-24 funds on deposit. This subsection does not limit the power of the
24-25 board to place a portion of district funds on time deposit or to
24-26 purchase certificates of deposit.
24-27 (c) Before the district deposits funds in a bank in an
25-1 amount that exceeds the maximum amount secured by the Federal
25-2 Deposit Insurance Corporation, the bank must execute a bond or
25-3 other security in an amount sufficient to secure from loss the
25-4 district funds that exceed the amount secured by the Federal
25-5 Deposit Insurance Corporation.
25-6 (Sections 160.131-160.140 reserved for expansion
25-7 SUBCHAPTER G. TAXES
25-8 Sec. 160.141. LEVY OF TAXES. (a) The board annually may
25-9 impose property taxes in an amount not to exceed the limit approved
25-10 by the voters at the election authorizing the levy of taxes.
25-11 (b) The tax rate for all purposes may not exceed 10 cents on
25-12 each $100 valuation of all taxable property in the district.
25-13 (c) The taxes may be used to pay:
25-14 (1) the indebtedness issued or assumed by the
25-15 district; and
25-16 (2) the maintenance and operating expenses of the
25-17 district.
25-18 Sec. 160.142. BOARD AUTHORITY. The board may impose taxes
25-19 for the entire year in which the district is created.
25-20 Sec. 160.143. ADOPTING TAX RATE. In adopting the tax rate,
25-21 the board shall consider the income of the district from sources
25-22 other than taxation.
25-23 Sec. 160.144. TAX ASSESSMENT AND COLLECTION. (a) The Tax
25-24 Code governs the appraisal, assessment, and collection of district
25-25 taxes.
25-26 (b) The board may provide for the appointment of a tax
25-27 assessor-collector for the district or may contract for the
26-1 assessment and collection of taxes as provided by the Tax Code.
26-2 SECTION 2. This Act takes effect on the date the
26-3 constitutional amendment proposed by the 74th Legislature, Regular
26-4 Session, relating to the creation, operation, and financing of
26-5 children's resource districts takes effect. If that amendment is
26-6 not approved by the voters, this Act has no effect.
26-7 SECTION 3. The importance of this legislation and the
26-8 crowded condition of the calendars in both houses create an
26-9 emergency and an imperative public necessity that the
26-10 constitutional rule requiring bills to be read on three several
26-11 days in each house be suspended, and this rule is hereby suspended.