By Junell                                             H.B. No. 3054
       74R6825 CLG-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the creation of crime control and prevention districts
    1-3  in certain municipalities; authorizing certain taxes.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Title 44, Revised Statutes, is amended by adding
    1-6  Article 2370c-5 to read as follows:
    1-7        Art. 2370c-5.  MUNICIPAL CRIME CONTROL AND PREVENTION
    1-8  DISTRICTS
    1-9                    ARTICLE 1.  GENERAL PROVISIONS
   1-10        Sec. 1.01.  SHORT TITLE.  This Act may be cited as the
   1-11  Municipal Crime Control and Prevention District Act.
   1-12        Sec. 1.02.  DEFINITIONS.  In this Act:
   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 municipal crime control and
   1-17  prevention district created under this Act.
   1-18              (4)  "Municipal secretary" means the secretary of the
   1-19  municipality in which a district is created under this Act, or if
   1-20  there is no secretary, the person who performs the functions of the
   1-21  secretary.
   1-22              (5)  "Municipal treasurer" means the treasurer of the
   1-23  municipality in which a district is created under this Act, or if
   1-24  there is no treasurer, the person who performs the functions of the
    2-1  treasurer.
    2-2        Sec. 1.03.  CERTAIN MUNICIPALITIES AUTHORIZED TO CREATE
    2-3  DISTRICTS.  (a)  The governing body of a municipality with a
    2-4  population of more than 75,000, by ordinance may create a crime
    2-5  control district, subject to a confirmation election held as
    2-6  provided by Article 3 of this Act, with boundaries coextensive with
    2-7  the territorial boundaries of the municipality.
    2-8        (b)  A district may not contain more than one municipality.
    2-9                    ARTICLE 2. TEMPORARY DIRECTORS
   2-10        Sec. 2.01.  TEMPORARY DIRECTORS; PRESIDING OFFICER.  (a)  Not
   2-11  later than the 60th day after the date a district is created by the
   2-12  municipality's governing body, each member of the governing body
   2-13  shall appoint one person to serve as a temporary director of the
   2-14  district.
   2-15        (b)  Not later than the 75th day after the date a district is
   2-16  created by the municipality's governing body, the temporary board
   2-17  shall organize and elect a presiding officer from the membership.
   2-18        Sec. 2.02.  VACANCY IN OFFICE.  A vacancy in the office of
   2-19  temporary director shall be filled in the same manner that the
   2-20  vacant position was originally filled.
   2-21                   ARTICLE 3.  CREATION OF DISTRICTS
   2-22        Sec. 3.01.  CONFIRMATION ELECTION.  A district may be created
   2-23  and a sales and use tax may be authorized only if the creation is
   2-24  confirmed and the tax is approved by a majority of the qualified
   2-25  voters of the district voting at an election called and held for
   2-26  that purpose.
   2-27        Sec. 3.02.  ORDERING ELECTION.  After a majority of the
    3-1  temporary directors of a district have approved a budget plan and a
    3-2  crime control plan in accordance with Section 3.09 of this Act, and
    3-3  after the municipality's governing body has reviewed and voted by
    3-4  resolution to support the budget plan and crime control plan, a
    3-5  majority of the temporary directors may order that a confirmation
    3-6  election be held.
    3-7        Sec. 3.03.  ELECTION ORDER.  (a)  An order calling an
    3-8  election under Section 3.02 of this Act must state:
    3-9              (1)  the nature of the election, including the
   3-10  proposition that is to appear on the ballot;
   3-11              (2)  the date of the election;
   3-12              (3)  the hours during which the polls will be open;
   3-13              (4)  the location of the polling places;
   3-14              (5)  in summary form, the approved budget plan and
   3-15  crime control plan of the district; and
   3-16              (6)  the proposed rate of the sales and use tax for the
   3-17  district.
   3-18        (b)  The proposed rate for the district sales and use tax
   3-19  imposed under Subchapter B, Chapter 321, Tax Code, may be only:
   3-20              (1)  one-eighth of one percent;
   3-21              (2)  one-fourth of one percent;
   3-22              (3)  three-eighths of one percent; or
   3-23              (4)  one-half of one percent.
   3-24        (c)  A district may not adopt a sales and use tax if adoption
   3-25  at the rate proposed would result in a combined local sales and use
   3-26  tax rate of more than two percent in any location in the district.
   3-27        Sec. 3.04.  NOTICE.  The temporary directors of a district
    4-1  shall give notice of a confirmation election by publishing a
    4-2  substantial copy of the election order in a newspaper with general
    4-3  circulation in the district once a week for two consecutive weeks.
    4-4  The first publication must appear at least 35 days before the date
    4-5  set for the election.
    4-6        Sec. 3.05.  ELECTION DATE.  (a)  A confirmation election
    4-7  shall be held not less than 35 days nor more than 60 days after the
    4-8  date on which the election is ordered.
    4-9        (b)  Section 41.001(a), Election Code, does not apply to a
   4-10  confirmation election ordered under this Act.
   4-11        Sec. 3.06.  BALLOT PROPOSITION.  The ballot for a
   4-12  confirmation election shall be printed to permit voting for or
   4-13  against the proposition:  "The creation of the        (insert the
   4-14  name of the municipality) Crime Control and Prevention District
   4-15  dedicated to crime reduction programs and the adoption of a
   4-16  proposed local sales and use tax at a rate of        (the rate
   4-17  specified in the election order)."
   4-18        Sec. 3.07.  CANVASSING RETURNS.  (a)  Not earlier than the
   4-19  second day or later than the 13th day after the date of a
   4-20  confirmation election, the temporary board of a district shall meet
   4-21  and canvass the returns of the election.
   4-22        (b)  If the temporary board finds that the election results
   4-23  are favorable to the proposition to confirm the creation of the
   4-24  district, the temporary board shall issue an order declaring the
   4-25  district created.
   4-26        (c)  If the temporary board finds that the election results
   4-27  are not favorable to the proposition to confirm the creation of the
    5-1  district, the temporary board may not order another election on the
    5-2  matter before the first anniversary of the date of the preceding
    5-3  election on that question.
    5-4        Sec. 3.08.  DISSOLUTION OF TEMPORARY BOARD.  If the creation
    5-5  of the district has not been confirmed under this Act before the
    5-6  fifth anniversary of the date a district is created by the
    5-7  municipality's governing body, the temporary board is dissolved on
    5-8  that date and the creation of the district may not be confirmed
    5-9  under this Act.
   5-10        Sec. 3.09.  CRIME CONTROL PLAN AND BUDGET PLAN.  (a)  The
   5-11  temporary board of a district shall formulate and approve a
   5-12  two-year crime control plan and a two-year budget plan.  The crime
   5-13  control plan must include:
   5-14              (1)  a detailed list of the crime control and crime
   5-15  prevention strategies to be supported by the district; and
   5-16              (2)  the method of annually evaluating the
   5-17  effectiveness and efficiency of individual crime control and crime
   5-18  prevention strategies.
   5-19        (b)  The budget plan must include:
   5-20              (1)  the amount of money budgeted by the district for
   5-21  each crime control and crime prevention strategy;
   5-22              (2)  the amount of money budgeted by the district and
   5-23  the percentage of the total budget of the district for
   5-24  administration, with individual amounts on how much of the
   5-25  administration would be conducted by the district and how much
   5-26  would be conducted by private or public entities;
   5-27              (3)  the estimated amount of money available to the
    6-1  district from all sources during the ensuing year;
    6-2              (4)  the amount of balances expected at the end of the
    6-3  years for which the budget is prepared; and
    6-4              (5)  the estimated tax rate that will be required.
    6-5        (c)  The crime control plan and budget plan must be adopted
    6-6  in the same manner as provided for adoption of a proposed annual
    6-7  budget under Section 6.05 of this Act.
    6-8        (d)  The temporary board shall coordinate its efforts with
    6-9  local law enforcement officials in developing its crime control
   6-10  plan and budget plan.
   6-11        Sec. 3.10.  FINANCING CREATION OF DISTRICT.  (a)  A
   6-12  municipality creating a district under this Act shall pay the
   6-13  entire cost of creating the district.
   6-14        (b)  If the creation of the district is confirmed, the
   6-15  district shall reimburse the municipality for actual expenses
   6-16  incurred in the creation and confirmation of the district.
   6-17        Sec. 3.11.  DONATIONS, GIFTS, AND ENDOWMENTS.  On behalf of a
   6-18  district, the temporary board may accept donations, gifts, and
   6-19  endowments to be held in trust for any purpose and under any
   6-20  direction, limitation, or provision prescribed in writing by the
   6-21  donor that is consistent with this Act and the proper management of
   6-22  the district.
   6-23                  ARTICLE 4. DISTRICT ADMINISTRATION
   6-24        Sec. 4.01.  BOARD OF DIRECTORS.  (a)  A district is governed
   6-25  by a board of directors.  The number of members of the board of
   6-26  directors coincides with the number of members of the governing
   6-27  body of the municipality in which the district is located.
    7-1        (b)  One director is appointed by each member of the
    7-2  governing body of the municipality for a term that coincides with
    7-3  the term of the member that appointed the director, unless the
    7-4  member serves for a term that is longer than two years.
    7-5        (c)  If a member of the governing body serves for a term that
    7-6  is longer than two years, a director appointed by the member serves
    7-7  for a two-year term.
    7-8        (d)  If the office of the member that appointed a director
    7-9  becomes vacant, the term of the director appointed by that member
   7-10  expires on the date the member's service on the governing body
   7-11  ends.
   7-12        Sec. 4.02.  BOND.  (a)  Before assuming the duties of the
   7-13  office, each director must execute a bond for $5,000 payable to the
   7-14  district, conditioned on the faithful performance of the person's
   7-15  duties as director.
   7-16        (b)  The bond shall be kept in the permanent records of the
   7-17  district.
   7-18        (c)  A board may pay for the bonds of the directors with
   7-19  district funds.
   7-20        Sec. 4.03.  BOARD VACANCY.  A vacancy in the office of
   7-21  director shall be filled for the unexpired term in the same manner
   7-22  that the vacant position was originally filled.
   7-23        Sec. 4.04.  OFFICERS.  A board shall elect from among its
   7-24  members a president and vice president.  The board shall also
   7-25  appoint a secretary.  The municipal secretary shall serve as
   7-26  secretary for the district.  The municipal treasurer shall serve as
   7-27  treasurer for the district.
    8-1        Sec. 4.05.  OFFICERS' TERMS; VACANCY.  (a)  Each officer of a
    8-2  board serves for a term of one year.
    8-3        (b)  A vacancy in a board office shall be filled for the
    8-4  unexpired term by the board.
    8-5        Sec. 4.06.  COMPENSATION.  Directors and officers serve
    8-6  without compensation, but all directors and officers may be
    8-7  reimbursed for actual expenses incurred in the performance of
    8-8  official duties.  Those expenses must be reported in the district's
    8-9  minute book or other district records and must be approved by the
   8-10  board.
   8-11        Sec. 4.07.  VOTING REQUIREMENT.  A concurrence of a majority
   8-12  of the members of a board is necessary in matters relating to the
   8-13  business of a district.  A two-thirds majority vote of the board is
   8-14  required to reject any application submitted by the governing body
   8-15  of the municipality in which the district is located for funding
   8-16  available under this Act.
   8-17        Sec. 4.08.  ADMINISTRATION.  The board may contract with a
   8-18  public agency or private vendor to assist in the administration or
   8-19  management of the district or to assist in the review of
   8-20  applications for funding available under this Act.
   8-21                     ARTICLE 5.  POWERS AND DUTIES
   8-22        Sec. 5.01.  DISTRICT RESPONSIBILITIES; LIMITATIONS ON
   8-23  EXPENDITURES.  (a)  A district may finance all the costs of a crime
   8-24  control and crime prevention program, including the costs for
   8-25  personnel, administration, expansion, enhancement, and capital
   8-26  expenditures.  A program may include:
   8-27              (1)  police and law enforcement related programs,
    9-1  including:
    9-2                    (A)  a multijurisdictional crime analysis center;
    9-3                    (B)  mobile crime analysis units;
    9-4                    (C)  crime stoppers telephone lines;
    9-5                    (D)  united property-marking programs;
    9-6                    (E)  home security inspection programs;
    9-7                    (F)  an automated fingerprint analysis center;
    9-8                    (G)  an enhanced radio dispatch center;
    9-9                    (H)  a computerized criminal history system;
   9-10                    (I)  enhanced information systems programs;
   9-11                    (J)  a drug and chemical disposal center;
   9-12                    (K)  a crime lab or medical examiner's lab; and
   9-13                    (L)  a regional law enforcement training center;
   9-14              (2)  community-related crime prevention strategies,
   9-15  including:
   9-16                    (A)  block watch programs;
   9-17                    (B)  a community crime resistance program;
   9-18                    (C)  school-police programs;
   9-19                    (D)  senior citizen community safety programs;
   9-20                    (E)  senior citizen anti-crime networks;
   9-21                    (F)  citizen crime-reporting projects;
   9-22                    (G)  home alert programs;
   9-23                    (H)  a police-community cooperation program;
   9-24                    (I)  a radio alert program; and
   9-25                    (J)  ride along programs;
   9-26              (3)  specific treatment and prevention programs,
   9-27  including:
   10-1                    (A)  positive peer group interaction programs;
   10-2                    (B)  drug and alcohol awareness programs;
   10-3                    (C)  family violence centers in the municipality;
   10-4                    (D)  work incentive programs;
   10-5                    (E)  social learning centers;
   10-6                    (F)  transitional aid centers and preparole
   10-7  centers;
   10-8                    (G)  guided group interaction programs;
   10-9                    (H)  social development centers;
  10-10                    (I)  street gang intervention centers;
  10-11                    (J)  predelinquency intervention centers;
  10-12                    (K)  school relations bureaus;
  10-13                    (L)  integrated community education systems;
  10-14                    (M)  steered straight programs;
  10-15                    (N)  probation subsidy programs;
  10-16                    (O)  Juvenile Offenders Learn Truth (JOLT)
  10-17  programs;
  10-18                    (P)  reformatory visitation programs;
  10-19                    (Q)  juvenile awareness programs;
  10-20                    (R)  shock incarceration;
  10-21                    (S)  shock probation;
  10-22                    (T)  community restitution programs;
  10-23                    (U)  team probation;
  10-24                    (V)  electronic monitoring programs;
  10-25                    (W)  community improvement programs;
  10-26                    (X)  at home arrest;
  10-27                    (Y)  victim restitution programs; and
   11-1                    (Z)  additional probation or parole officers;
   11-2              (4)  court and prosecution services, including:
   11-3                    (A)  court watch programs;
   11-4                    (B)  community arbitration and mediation centers;
   11-5                    (C)  night prosecutors programs;
   11-6                    (D)  automated legal research systems;
   11-7                    (E)  an automated court management system;
   11-8                    (F)  a criminal court administrator;
   11-9                    (G)  an automated court reporting system;
  11-10                    (H)  additional municipal courts; and
  11-11                    (I)  additional prosecutors and staff; and
  11-12              (5)  additional jails, jailers, guards, and other
  11-13  necessary staff.
  11-14        (b)  The district shall coordinate its efforts with the local
  11-15  community justice council in developing its crime control and crime
  11-16  prevention program.
  11-17        (c)  The district shall fund an annual evaluation program to
  11-18  study the effect, efficiency, and effectiveness of new or expanded
  11-19  crime control and crime prevention programs.
  11-20        (d)  The board may seek the assistance of the Office of
  11-21  State-Federal Relations in identifying and applying for federal
  11-22  grants for criminal justice programs.  The board shall notify the
  11-23  appropriate council of government of any intent to submit an
  11-24  application for federal funds for inclusion in the regional
  11-25  criminal justice planning process.
  11-26        (e)  The district may apply for and receive grants for
  11-27  criminal and juvenile justice programs from the criminal justice
   12-1  division in the governor's office.
   12-2        Sec. 5.02.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  Except
   12-3  as provided by Section 6.06 of this Act, a board shall manage,
   12-4  control, and administer the district funds.
   12-5        Sec. 5.03.  OPEN MEETINGS; ADMINISTRATIVE PROCEDURE.  A board
   12-6  is subject to Chapters 551 and 2001, Government Code.
   12-7        Sec. 5.04.  LIABILITY.  A director is not liable for civil
   12-8  damages or criminal prosecution for any act performed in good faith
   12-9  in the execution of duties as a director or for an action taken by
  12-10  the board.
  12-11        Sec. 5.05.  DISTRICT RULES.  A board may adopt rules
  12-12  governing district-funded programs and the duties, functions, and
  12-13  responsibilities of district staff and employees.  Rules adopted
  12-14  under this section may not conflict with the rules relating to
  12-15  employees of the municipality in which the district is located.
  12-16        Sec. 5.06.  METHODS AND PROCEDURES.  (a)  A board may
  12-17  prescribe the method of making purchases and expenditures by and
  12-18  for the district; however, the board may enter purchasing contracts
  12-19  that involve spending more than $15,000 only after competitive
  12-20  bidding as provided by Subchapter B, Chapter 252, Local Government
  12-21  Code, to the extent those provisions can be made applicable to the
  12-22  board.
  12-23        (b)  The board may prescribe accounting and control
  12-24  procedures for the district.
  12-25        (c)  The municipal purchasing agent shall serve as purchasing
  12-26  agent for the district.
  12-27        Sec. 5.07.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.
   13-1  The board may acquire or lease property, facilities, or equipment
   13-2  for the sole purpose of administering the district.
   13-3        Sec. 5.08.  REIMBURSEMENT FOR SERVICES.  (a)  A county or
   13-4  municipality located entirely outside the boundaries of the
   13-5  district shall, on request, reimburse a district for the district's
   13-6  cost of including in a district program a resident of that county
   13-7  or municipality.
   13-8        (b)  The board may require reimbursement from the state for
   13-9  the district's cost of including in a district program or facility
  13-10  a person who is a resident of the state but who is not a resident
  13-11  of the district.
  13-12        (c)  On behalf of the district, the board may contract with a
  13-13  municipal or county government or with the state or federal
  13-14  government for the municipal, county, state, or federal government
  13-15  to reimburse the district for including a person in a district
  13-16  program.
  13-17        Sec. 5.09.  SERVICE CONTRACTS.  When acting on behalf of a
  13-18  district, the board may contract with a municipality, county,
  13-19  special district, or other political subdivision of the state, with
  13-20  a state or federal agency, with individuals, and with private
  13-21  entities to furnish the staff, facilities, equipment, programs, and
  13-22  services the board considers necessary for the effective operation
  13-23  of the district.
  13-24        Sec. 5.10.  Donations, grants, and endowments.  On behalf of
  13-25  the district, the board may accept donations, grants, and
  13-26  endowments to be held in trust for any purpose and under any
  13-27  direction, limitation, or provision prescribed in writing by the
   14-1  donor that is consistent with this Act and the proper management of
   14-2  the district.
   14-3        Sec. 5.11.  Authority to sue and be sued.  A board may sue
   14-4  and be sued in the name of the district.
   14-5                     ARTICLE 6.  DISTRICT FINANCES
   14-6        Sec. 6.01.  Fiscal year.  (a)  A district is operated on a
   14-7  fiscal year established by the board.
   14-8        (b)  A fiscal year may not be changed more than once in a
   14-9  24-month period.
  14-10        Sec. 6.02.  Annual audit.  Annually, a board shall have an
  14-11  audit made of the financial condition of the district by an
  14-12  independent auditor.
  14-13        Sec. 6.03.  District audit and records.  An annual audit and
  14-14  other district records are open to inspection during regular
  14-15  business hours at the principal office of the district.
  14-16        Sec. 6.04.  Annual budget.  (a)  The board shall prepare a
  14-17  proposed annual budget subject to the provisions of Section 6.05 of
  14-18  this Act.  In preparing the budget, the board shall consider the
  14-19  applications submitted by the chief administrative officer of the
  14-20  municipality in which the district is created, with the consent of
  14-21  the municipality's governing body, for program funding.
  14-22        (b)  The proposed budget must contain a complete financial
  14-23  statement, including a statement of:
  14-24              (1)  the outstanding obligations of the district;
  14-25              (2)  the amount of cash on hand to the credit of each
  14-26  fund of the district;
  14-27              (3)  the amount of money received by the district from
   15-1  all sources during the previous year;
   15-2              (4)  the estimated amount of money available to the
   15-3  district from all sources during the current fiscal year;
   15-4              (5)  the amount of money needed to fund programs
   15-5  approved for funding by the board;
   15-6              (6)  the amount of money requested for programs that
   15-7  were not approved for funding by the board;
   15-8              (7)  the tax rate for the next fiscal year;
   15-9              (8)  the amount of the balances expected at the end of
  15-10  the year in which the budget is being prepared; and
  15-11              (9)  the estimated amount of revenues and balances
  15-12  available to cover the proposed budget.
  15-13        Sec. 6.05.  Notice; board hearing; adoption of budget.  (a)
  15-14  Not later than the 100th day before the beginning of each fiscal
  15-15  year, a board shall hold a public hearing on the proposed annual
  15-16  budget.
  15-17        (b)  The board shall publish notice of the hearing in a
  15-18  newspaper with general circulation in the district not later than
  15-19  the 10th day before the date of the hearing.
  15-20        (c)  Any resident of the district is entitled to be present
  15-21  and participate at the hearing.
  15-22        (d)  Not later than the 80th day before the beginning of each
  15-23  fiscal year, the board shall adopt a budget.  The board may make
  15-24  any changes in the proposed budget that in its judgment the
  15-25  interests of the taxpayers demand.
  15-26        (e)  The board shall submit the budget to the governing body
  15-27  of the municipality in which the district is located not later than
   16-1  the 10th day after the date the budget is adopted.
   16-2        (f)  The board by rule may develop and adopt procedures for
   16-3  adopting a budget different from the procedures outlined in this
   16-4  article, but the board must hold public hearings relating to the
   16-5  budget.
   16-6        Sec. 6.06.  Notice; hearing; approval or rejection of budget.
   16-7  (a)  Not later than the 45th day before the beginning of each
   16-8  fiscal year, the governing body of the municipality in which a
   16-9  district is located shall hold a public hearing on the proposed
  16-10  annual budget.
  16-11        (b)  The governing body shall publish notice of the hearing
  16-12  in a newspaper with general circulation in the district not later
  16-13  than the 10th day before the date of the hearing.
  16-14        (c)  Any resident of the district is entitled to be present
  16-15  and to participate at the hearing.
  16-16        (d)  The governing body shall approve or reject the budget
  16-17  submitted by the board not later than the 30th day before the
  16-18  beginning of the fiscal year.  The governing body may not amend the
  16-19  budget.
  16-20        (e)  If the governing body rejects the budget submitted by
  16-21  the board, the governing body and the board shall meet and together
  16-22  amend and approve the budget before the beginning of the fiscal
  16-23  year.
  16-24        (f)  The budget may be amended after the beginning of the
  16-25  fiscal year on approval by the board and the governing body.
  16-26        Sec. 6.07.  Limitation on expenditures.  Money may be spent
  16-27  only for an expense included in an annual budget or an amendment to
   17-1  it.
   17-2        Sec. 6.08.  Sworn statement.  Not later than the 60th day
   17-3  after the last day of each fiscal year, the municipal treasurer
   17-4  shall prepare for the board a sworn statement of the amount of
   17-5  money that belongs to the district and an account of the
   17-6  disbursements of that money.
   17-7        Sec. 6.09.  Spending and investment limitations.  (a)  A
   17-8  district may not incur a debt payable from revenues of the district
   17-9  other than the revenues on hand or to be on hand in the current or
  17-10  immediately following fiscal year of the district.
  17-11        (b)  The board may not invest district funds in funds or
  17-12  securities other than those specified by Article 836 or 837,
  17-13  Revised Statutes, or by Chapter 2256, Government Code.
  17-14        Sec. 6.10.  Deposit of funds.  (a)  A board shall deposit
  17-15  district funds in a special account in the treasury of the
  17-16  municipality in which the district is located.
  17-17        (b)  District funds, other than those invested as provided by
  17-18  Section 6.09(b) of this Act, shall be deposited as received in the
  17-19  municipal treasury and must remain on deposit.
  17-20        (c)  A board shall reimburse the municipality for any costs
  17-21  the municipality incurs for performing the duties imposed under
  17-22  this section, other than costs of municipal personnel.
  17-23        Sec. 6.11.  Applications for program funding.  (a)  A chief
  17-24  administrative officer of the municipality in which a district is
  17-25  located may, with the consent of the governing body of the
  17-26  municipality, apply to the board for funding of a program as
  17-27  described by Section 5.01 of this Act.
   18-1        (b)  Applications under this section must be submitted not
   18-2  later than the 140th day before the beginning of the fiscal year,
   18-3  unless an exception has been adopted by rule.
   18-4        (c)  The board by rule may develop and adopt application
   18-5  procedures.
   18-6                           ARTICLE 7.  BONDS
   18-7        Sec. 7.01.  Bonds.  A board may not issue or sell general
   18-8  obligation bonds, revenue bonds, or refunding bonds.
   18-9                   ARTICLE 8.  DISTRICT CONTINUATION
  18-10        Sec. 8.01.  Continuation referendum.  (a)  A board may hold a
  18-11  referendum on the question of whether to continue the district.
  18-12        (b)  The board shall order a continuation referendum if a
  18-13  petition that requests continuation of the district is presented in
  18-14  accordance with this article or if a majority of the governing body
  18-15  of the municipality in which the district is located by resolution
  18-16  requests continuation after notice and a public hearing on the
  18-17  matter.  The board, however, may not hold a continuation referendum
  18-18  before the fifth anniversary of the date on which the district is
  18-19  created or before the third anniversary of the date of the last
  18-20  preceding continuation or dissolution referendum.
  18-21        (c)  For a continuation referendum, the ballot shall be
  18-22  printed to permit voting for or against the proposition:  "Whether
  18-23  the ____________ (insert the name of the municipality) Crime
  18-24  Control and Prevention District should be continued and the crime
  18-25  control and prevention district sales and use tax should be
  18-26  continued."
  18-27        Sec. 8.02.  Methods for initiating election.  A board may
   19-1  order a continuation referendum on its own motion by a majority
   19-2  vote of its members.  The board shall order a continuation
   19-3  referendum:
   19-4              (1)  on the presentation of a petition meeting the
   19-5  requirements of Sections 8.03 through 8.08 of this Act; or
   19-6              (2)  on the request of the governing body under Section
   19-7  8.01(b) of this Act.
   19-8        Sec. 8.03.  Application for petition; issuance.  If the
   19-9  municipal secretary receives a written application signed by 10 or
  19-10  more registered voters of the district, the secretary shall issue
  19-11  to the applicants a petition to be circulated among registered
  19-12  voters for their signatures.
  19-13        Sec. 8.04.  Contents of application.  To be valid, an
  19-14  application for a petition must contain:
  19-15              (1)  a heading in the following words:  "Application
  19-16  for a Petition for a Local Option Referendum to Continue the Crime
  19-17  Control and Prevention District and to Continue the Crime Control
  19-18  and Prevention District Sales and Use Tax";
  19-19              (2)  a statement of the issue to be voted on in the
  19-20  following words:  "Whether the ____________ (insert the name of the
  19-21  municipality) Crime Control and Prevention District should be
  19-22  continued and the crime control and prevention district sales and
  19-23  use tax should be continued";
  19-24              (3)  a statement immediately above the signatures of
  19-25  the applicants, reading as follows:  "It is the purpose and intent
  19-26  of the applicants whose signatures appear below that the crime
  19-27  control and prevention district be continued and the crime control
   20-1  and prevention district sales and use tax in ____________ (insert
   20-2  the name of the municipality) be continued"; and
   20-3              (4)  the printed name, signature, residence address,
   20-4  and voter registration certificate number of each applicant.
   20-5        Sec. 8.05.  Contents of petition.  To be valid, a petition
   20-6  must contain:
   20-7              (1)  a heading in the following words:  "Petition for a
   20-8  Local Option Referendum to Continue the ____________ (insert the
   20-9  name of the municipality) Crime Control and Prevention District and
  20-10  to Continue the Crime Control and Prevention District Sales and Use
  20-11  Tax";
  20-12              (2)  a statement of the issue to be voted on in the
  20-13  same words used in the application;
  20-14              (3)  a statement immediately above the signatures of
  20-15  the petitioners, reading as follows:  "It is the purpose and intent
  20-16  of the petitioners whose signatures appear below that the crime
  20-17  control and prevention district be continued and the crime control
  20-18  and prevention district sales and use tax in ____________ (insert
  20-19  the name of the municipality) be continued";
  20-20              (4)  lines and spaces for the names, signatures,
  20-21  residence addresses, and voter registration certificate numbers of
  20-22  the petitioners; and
  20-23              (5)  the date of issuance, the serial number, and the
  20-24  seal of the municipal secretary on each page.
  20-25        Sec. 8.06.  Copies.  The municipal secretary shall keep the
  20-26  application and a copy of the petition in the files of the
  20-27  secretary's office.  The secretary shall issue to the applicants as
   21-1  many copies as the applicants request.
   21-2        Sec. 8.07.  Filing of petition; number of signatures.  To
   21-3  form the basis for the ordering of a referendum, the petition must
   21-4  be filed with the municipal secretary not later than the 60th day
   21-5  after the date of its issuance, and it must contain a number of
   21-6  signatures of registered voters of the municipality equal to five
   21-7  percent of the number of votes cast in the municipality for all
   21-8  candidates for mayor in the most recent city council election.
   21-9        Sec. 8.08.  Review by municipal secretary.  (a)  The
  21-10  municipal secretary shall, on request of any district resident,
  21-11  check each name on a petition to determine whether the signer is a
  21-12  registered voter of the district.  A person requesting verification
  21-13  by the secretary shall pay the secretary a sum equal to 20 cents
  21-14  per name before commencement of the verification.
  21-15        (b)  The secretary may not count a signature if there is
  21-16  reason to believe that:
  21-17              (1)  it is not the actual signature of the purported
  21-18  signer;
  21-19              (2)  the voter registration certificate number is not
  21-20  correct;
  21-21              (3)  it is a duplication either of a name or of
  21-22  handwriting used in any other signature on the petition;
  21-23              (4)  the residence address of the signer is not
  21-24  correct; or
  21-25              (5)  the name of the voter is not signed exactly as it
  21-26  appears on the official copy of the current list of registered
  21-27  voters for the voting year in which the petition is issued.
   22-1        Sec. 8.09.  CERTIFICATION.  Not later than the 40th day after
   22-2  the date a petition is filed, excluding Saturdays, Sundays, and
   22-3  legal holidays, the municipal secretary shall certify to the board
   22-4  the number of registered voters signing the petition.
   22-5        Sec. 8.10.  ORDER OF ELECTION.  (a)  A board shall record in
   22-6  its minutes the date the petition is filed and  the date it is
   22-7  certified by the municipal secretary.
   22-8        (b)  If the petition contains the required number of
   22-9  signatures and is in proper order, the board shall, at its next
  22-10  regular session after the certification by the secretary, order a
  22-11  referendum to be held at the regular polling place in each county
  22-12  election precinct in the municipality on the next uniform election
  22-13  date authorized by Section 41.001(a), Election Code, that occurs at
  22-14  least 45 days after the date of the order.  The board  shall state
  22-15  in the order the proposition to be voted on in the referendum.  The
  22-16  order is prima facie evidence of compliance with all provisions
  22-17  necessary to give it validity.
  22-18        Sec. 8.11.  APPLICATION OF ELECTION CODE.  A continuation
  22-19  referendum shall be held and the returns shall be prepared and
  22-20  canvassed in conformity with the Election Code.
  22-21        Sec. 8.12.  RESULTS OF REFERENDUM.  (a)  If a majority of the
  22-22  votes cast in a referendum under this section are not for the
  22-23  continuation of a district:
  22-24              (1)  the board shall certify that fact to the secretary
  22-25  of state not later than the 10th day after the date of the canvass
  22-26  of the returns; and
  22-27              (2)  the district is dissolved and ceases to operate
   23-1  except as provided by Subsection (b) of this section.
   23-2        (b)  A district that is dissolved and that owns property or
   23-3  has outstanding short-term or long-term liabilities may continue to
   23-4  operate temporarily as provided by Section 10.02 of this Act.
   23-5        (c)  If a majority of the votes cast in the referendum under
   23-6  this section are for the continuation of the district, another
   23-7  continuation referendum may not be held except as authorized by
   23-8  Section 8.01 of this Act.
   23-9        Sec. 8.13.  CONTEST OF ELECTION.  Not later than the 30th day
  23-10  after the date the result of a continuation  referendum is
  23-11  declared, any qualified voter of the district may contest the
  23-12  election by filing a petition in a district court located in the
  23-13  district.
  23-14                   ARTICLE 9.  DISTRICT DISSOLUTION
  23-15        Sec. 9.01.  DISSOLUTION REFERENDUM.  (a)  A board may hold a
  23-16  referendum on the question of whether to dissolve the district.
  23-17        (b)  The board shall order a dissolution referendum if a
  23-18  petition that requests dissolution of the district is presented in
  23-19  accordance with this article or if a majority of the governing body
  23-20  of the municipality in which the district is located by resolution
  23-21  requests dissolution after notice and a public hearing on the
  23-22  matter.  The board, however, may not hold a dissolution referendum
  23-23  before the fifth anniversary of the date on which the district is
  23-24  created or before the third anniversary of the date of the last
  23-25  preceding continuation or dissolution referendum.
  23-26        (c)  For a dissolution referendum, the ballot shall be
  23-27  printed to permit voting for or against the proposition:  "Whether
   24-1  the ________ (insert the name of the municipality) Crime Control
   24-2  and Prevention District should be dissolved and  the crime control
   24-3  and prevention district sales and use tax should be abolished."
   24-4        Sec. 9.02.  METHODS FOR INITIATING ELECTION.  A board may
   24-5  order a dissolution referendum on its own motion by a majority vote
   24-6  of its members.  The board shall order a dissolution referendum:
   24-7              (1)  on the presentation of a petition meeting the
   24-8  requirements of Sections 9.03 through 9.08 of this Act; or
   24-9              (2)  on the request of the governing body under Section
  24-10  9.01(b) of this Act.
  24-11        Sec. 9.03.  APPLICATION FOR PETITION; ISSUANCE.  If the
  24-12  municipal secretary receives a written application signed by 10 or
  24-13  more registered voters of a district, the secretary shall issue to
  24-14  the applicants a petition to be circulated among registered voters
  24-15  for their signatures.
  24-16        Sec. 9.04.  CONTENTS OF APPLICATION.  To be valid, an
  24-17  application for a petition must contain:
  24-18              (1)  a heading in the following words:  "Application
  24-19  for a Petition for a Local Option Referendum to Dissolve the Crime
  24-20  Control and Prevention District and to Abolish the Crime Control
  24-21  and Prevention District Sales and Use Tax";
  24-22              (2)  a statement of the issue to be voted on in the
  24-23  following words:  "Whether the ________ (insert the name of the
  24-24  municipality) Crime Control and Prevention District should be
  24-25  dissolved and the crime control and prevention district sales and
  24-26  use tax should be abolished";
  24-27              (3)  a statement immediately above the signatures of
   25-1  the applicants, reading as follows:  "It is the purpose and intent
   25-2  of the applicants whose signatures appear below that the crime
   25-3  control and prevention district be dissolved and the crime control
   25-4  and prevention district sales and use tax in ________ (insert the
   25-5  name of the municipality) be abolished"; and
   25-6              (4)  the printed name, signature, residence address,
   25-7  and voter registration certificate number of each applicant.
   25-8        Sec. 9.05.  CONTENTS OF PETITION.  To be valid, a petition
   25-9  must contain:
  25-10              (1)  a heading in the following words:  "Petition for a
  25-11  Local Option Referendum to Dissolve the ________ (insert the name
  25-12  of the municipality) Crime Control and Prevention District and to
  25-13  Abolish the Crime Control and Prevention District Sales and Use
  25-14  Tax";
  25-15              (2)  a statement of the issue to be voted on in the
  25-16  same words used in the application;
  25-17              (3)  a statement immediately above the signatures of
  25-18  the petitioners, reading as follows:  "It is the purpose and intent
  25-19  of the petitioners whose signatures appear below that the crime
  25-20  control and prevention district be dissolved and the crime  control
  25-21  and prevention district sales and use tax in ________ (insert the
  25-22  name of the municipality) be abolished";
  25-23              (4)  lines and spaces for the names, signatures,
  25-24  residence addresses, and voter registration certificate numbers of
  25-25  the petitioners; and
  25-26              (5)  the date of issuance, the serial number, and the
  25-27  seal of the municipal secretary on each page.
   26-1        Sec. 9.06.  COPIES.  The municipal secretary shall keep the
   26-2  application and a copy of the petition in the files of the
   26-3  secretary's office.  The secretary shall issue to the applicants as
   26-4  many copies as the applicants request.
   26-5        Sec. 9.07.  FILING OF PETITION; NUMBER OF SIGNATURES.  To
   26-6  form the basis for the ordering of a referendum, the petition must
   26-7  be filed with the municipal secretary not later than the 60th day
   26-8  after the date of its issuance, and it must contain a number of
   26-9  signatures of registered voters of the municipality equal to five
  26-10  percent of the number of votes cast in the municipality for all
  26-11  candidates for mayor in the most recent city council election.
  26-12        Sec. 9.08.  REVIEW BY MUNICIPAL SECRETARY.  (a)  The
  26-13  municipal secretary shall, on request of any district resident,
  26-14  check each name on a petition to determine whether the signer is a
  26-15  registered voter of the district.  A person requesting verification
  26-16  by the secretary shall pay the secretary a sum equal to 20 cents
  26-17  per name before commencement of the verification.
  26-18        (b)  The secretary may not count a signature if there is
  26-19  reason to believe that:
  26-20              (1)  it is not the actual signature of the purported
  26-21  signer;
  26-22              (2)  the voter registration certificate number is not
  26-23  correct;
  26-24              (3)  it is a duplication either of a name or of
  26-25  handwriting used in any other signature on the petition;
  26-26              (4)  the residence address of the signer is not
  26-27  correct; or
   27-1              (5)  the name of the voter is not signed exactly as it
   27-2  appears on the official copy of the current list of registered
   27-3  voters for the voting year in which the petition is issued.
   27-4        Sec. 9.09.  CERTIFICATION.  Not later than the 40th day after
   27-5  the date a petition is filed, excluding Saturdays, Sundays, and
   27-6  legal holidays, the municipal secretary shall certify to the board
   27-7  the number of registered voters signing the petition.
   27-8        Sec. 9.10.  ORDER OF ELECTION.  (a)  A board shall record in
   27-9  its minutes the date the petition is filed and the date it is
  27-10  certified by the municipal secretary.
  27-11        (b)  If the petition contains the required number of
  27-12  signatures and is in proper order, the board shall, at its next
  27-13  regular session after the certification by the secretary, order a
  27-14  referendum to be held at the regular polling place in each election
  27-15  precinct in the municipality on the next uniform election date
  27-16  authorized by Section 41.001(a), Election Code, that occurs at
  27-17  least 45 days after the date of the order.  The board shall state
  27-18  in the order the proposition to be voted on in the referendum.  The
  27-19  order is prima facie evidence of compliance with all provisions
  27-20  necessary to give it validity.
  27-21        Sec. 9.11.  APPLICATION OF ELECTION CODE.  A dissolution
  27-22  referendum shall be held and the returns shall be prepared and
  27-23  canvassed in conformity with the Election Code.
  27-24        Sec. 9.12.  RESULTS OF REFERENDUM.  (a)  If a majority of the
  27-25  votes cast in a referendum under this section are for the
  27-26  dissolution of a district:
  27-27              (1)  the board shall certify that fact to the secretary
   28-1  of state not later than the 10th day after the date of the canvass
   28-2  of the returns; and
   28-3              (2)  the district is dissolved and ceases to operate
   28-4  except as provided by Subsection (b) of this section.
   28-5        (b)  A district that is dissolved and that has outstanding
   28-6  short-term or long-term liabilities may continue to operate
   28-7  temporarily as provided by Section 10.02 of this Act.
   28-8        (c)  If less than a majority of the votes cast in the
   28-9  referendum under this section are for the dissolution of the
  28-10  district, another dissolution referendum may not be held except as
  28-11  authorized by Section 9.01 of this Act.
  28-12        Sec. 9.13.  CONTEST OF ELECTION.  Not later than the 30th day
  28-13  after the date the result of a dissolution referendum is declared,
  28-14  any qualified voter of the district may contest the election by
  28-15  filing a petition in a district court located in the district.
  28-16                       ARTICLE 10.  DISSOLUTION
  28-17        Sec. 10.01.  SUNSET PROVISION.  Unless the district is
  28-18  continued as provided by Article  8, the district is dissolved on
  28-19  the later of:
  28-20              (1)  the sixth anniversary of the date the district is
  28-21  created; or
  28-22              (2)  the fifth anniversary of the date of the most
  28-23  recent continuation or dissolution referendum.
  28-24        Sec. 10.02.  DISSOLUTION OF DISTRICT.  (a)  On the date that
  28-25  the district is dissolved, the district shall, as prescribed by
  28-26  Subsection (h) of this section, convey or transfer to the
  28-27  municipality in the district the following:
   29-1              (1)  title to land, buildings, real and tangible
   29-2  improvements, and equipment owned by the district;
   29-3              (2)  operating funds and reserves for operating
   29-4  expenses and funds that have been budgeted by the district for the
   29-5  remainder of the fiscal year in which the district is dissolved to
   29-6  support crime control activities and programs for residents of the
   29-7  municipality;
   29-8              (3)  taxes levied by the district during the current
   29-9  year for crime control purposes;
  29-10              (4)  funds established for payment of indebtedness
  29-11  assumed by the district; and
  29-12              (5)  any accumulated employee retirement funds.
  29-13        (b)  After the date the district is dissolved, the district
  29-14  may not levy taxes for district purposes or for providing crime
  29-15  control activities and programs for the residents of the district.
  29-16        (c)  If on the date that the district is dissolved the
  29-17  district has outstanding short-term or long-term liabilities, the
  29-18  board shall, not later than the 30th day after the dissolution,
  29-19  adopt a resolution certifying each outstanding short-term and
  29-20  long-term liability.  The municipality in which the district is
  29-21  located shall assume the outstanding short-term and long-term
  29-22  liabilities.  The municipality shall collect the sales and use tax
  29-23  for the district for the remainder of the calendar year and may by
  29-24  resolution of the municipality's governing body continue to collect
  29-25  the tax for an  additional calendar year if the revenue from the
  29-26  tax is needed to retire liabilities of the district that were
  29-27  assumed by the municipality.  The municipality's governing body
   30-1  shall notify the comptroller of this continuation not later than
   30-2  the 60th day before the date on which the tax would otherwise
   30-3  expire.  Any tax collected after the liabilities have been retired
   30-4  shall be transferred or conveyed as prescribed by Subsection (a) of
   30-5  this section.
   30-6        (d)  The district and the board may continue to operate for a
   30-7  period not to exceed two months after carrying out the
   30-8  responsibilities required by Subsections (a) and (c) of this
   30-9  section.  The board and the district are continued in effect for
  30-10  the purpose of satisfying these responsibilities.
  30-11        (e)  If the board and the district are continued in effect
  30-12  under Subsection (d) of this section, the board and district are
  30-13  dissolved entirely on the first day of the month following the
  30-14  month in which the  board issues an order certifying to the
  30-15  secretary of state that no responsibilities of Subsections (a) and
  30-16  (c) of this section are left unsatisfied.
  30-17        (f)  A district or board that continues to operate under
  30-18  Subsection (d) of this section may not incur any new liabilities
  30-19  without the approval of the governing body of the municipality in
  30-20  which the district is located.  Not later than the 60th day after
  30-21  the date of the dissolution referendum, the governing body shall
  30-22  review the outstanding liabilities of the district and set a
  30-23  specific date by which the municipality must retire the district's
  30-24  outstanding liabilities.
  30-25        (g)  On the date that the district is dissolved,
  30-26  district-funded programs, including additional courts, shall
  30-27  immediately terminate and district-funded personnel, except
   31-1  personnel required to retire the responsibilities of the district,
   31-2  are terminated.
   31-3        (h)  The board shall convey or transfer to the municipality
   31-4  the value of the items described in Subsection (a) of this section.
   31-5                     ARTICLE 11.  STATE LIABILITY
   31-6        Sec. 11.01.  STATE LIABILITY.  The state is not obligated for
   31-7  the support, maintenance, or dissolution of a crime control
   31-8  district created under this Act.
   31-9        SECTION 2.  Subchapter B, Chapter 321, Tax Code, is amended
  31-10  by adding Section 321.106 to read as follows:
  31-11        Sec. 321.106.  MUNICIPALITY CRIME CONTROL DISTRICT TAX.  (a)
  31-12  Subject to an election held in accordance with the Municipal Crime
  31-13  Control and Prevention District Act, a municipality in which a
  31-14  crime control and prevention district is established shall adopt a
  31-15  sales and use tax for the benefit of the district in the area of
  31-16  the district for the purpose of financing the operation of the
  31-17  municipal crime control and prevention district.   The revenue from
  31-18  the tax may be used only for the purpose of financing the operation
  31-19  of the municipal crime control and prevention district.  The
  31-20  proposition for adopting a tax under this section and the
  31-21  proposition for creation of a crime control and prevention district
  31-22  shall be submitted at the same election.  For purposes of Section
  31-23  321.101(e), a tax under this section is not an additional sales and
  31-24  use tax.
  31-25        (b)  A tax adopted for a district under this section for
  31-26  financing the operation of the district may be decreased in
  31-27  increments of one-eighth of one percent by order of the board of
   32-1  directors of the district.  The rate of a tax adopted for a
   32-2  district under this section may be increased in increments of
   32-3  one-eighth of one percent, not to exceed a total tax rate of
   32-4  one-half percent for financing the operation of the municipal crime
   32-5  control and prevention district, by order of the board of directors
   32-6  of the municipal crime control and prevention district if approved
   32-7  by a majority of the qualified voters voting at an election called
   32-8  by the board and held in the district on the question of increasing
   32-9  the tax rate.  At the election, the ballot shall be printed to
  32-10  provide for voting for or against the following proposition:  "The
  32-11  increase of the ________ (insert the name of the municipality)
  32-12  Crime Control and Prevention District sales and use tax rate to ___
  32-13  percent."  If there is an increase or decrease under this
  32-14  subsection in the rate of a tax imposed under this section, the new
  32-15  rate takes effect as prescribed by Sections 321.102(b) and (d).
  32-16        (c)  The comptroller shall remit to the municipality in which
  32-17  the municipal crime control and prevention district is created
  32-18  amounts collected at the rate imposed under this section as part of
  32-19  the regular allocation of municipal tax revenue collected by the
  32-20  comptroller.  The municipality shall deposit the amounts it
  32-21  receives from the comptroller under this subsection in a special
  32-22  account in the treasury of the municipality as required under
  32-23  Section 6.10, Article 2370c-5, Revised Statutes.  Retailers may not
  32-24  be required to use an allocation or reporting procedure in the
  32-25  collection of taxes under this section that is different from the
  32-26  procedures that retailers use in the collection of other sales and
  32-27  use taxes under this chapter.  An item, transaction, or service
   33-1  that is taxable in a municipality under a sales or use tax
   33-2  authorized by another section of this chapter is taxable under this
   33-3  section.  An item, transaction, or service that is not taxable in a
   33-4  municipality under a sales or use tax authorized by another section
   33-5  of this chapter is not taxable under this section.
   33-6        (d)  The comptroller may adopt rules and the governing body
   33-7  of the municipality may adopt orders to administer this section.
   33-8        SECTION 3.  Section 323.105, Tax Code, is amended to read as
   33-9  follows:
  33-10        Sec. 323.105.  County CRIME CONTROL DISTRICT TAX.
  33-11  (a)  Subject to an election held in accordance with the County
  33-12  Crime Control and Prevention District Act, a county in which a
  33-13  county crime control and prevention district is established shall
  33-14  adopt a sales and use tax in the area of the district for the
  33-15  purpose of financing the operation of the county crime control and
  33-16  prevention district.  The revenue from the tax may be used only for
  33-17  the purpose of financing the operation of the county crime control
  33-18  and prevention district.  The proposition for adopting a tax under
  33-19  this section and the proposition for creation of a county crime
  33-20  control and prevention district shall be submitted at the same
  33-21  election.  For purposes of Subsection (c) of Section 323.101 of
  33-22  this code, a tax under this section is not a county sales and use
  33-23  tax.
  33-24        (b)  A tax adopted for a district under this section for
  33-25  financing the operation of the district may be decreased in
  33-26  increments of one-fourth of one percent by order of the board of
  33-27  directors of the district.  The rate of a tax adopted for a
   34-1  district under this section may be increased in increments of
   34-2  one-fourth of one percent, not to exceed a total tax rate of
   34-3  one-half percent for financing the operation of the county crime
   34-4  control and prevention district, by order of the board of directors
   34-5  of the county crime control and prevention district if approved by
   34-6  a majority of the qualified voters voting at an election called by
   34-7  the board and held in the district on the question of increasing
   34-8  the tax rate.  At the election, the ballot shall be printed to
   34-9  provide for voting for or against the following proposition:  "The
  34-10  increase of the ____________ County Crime Control and Prevention
  34-11  District sales and use tax rate to ____________ percent."  If there
  34-12  is an increase or decrease under this subsection in the rate of a
  34-13  tax imposed under this section, the new rate takes effect on the
  34-14  first day of the next calendar year after the expiration of one
  34-15  calendar quarter after the comptroller receives notice of the
  34-16  increase or decrease.  However, if the comptroller notifies the
  34-17  president of the board of directors of the district in writing
  34-18  within 10 days after receipt of the notification that the
  34-19  comptroller requires more time to implement reporting and
  34-20  collection procedures, the comptroller may delay implementation of
  34-21  the rate change for one whole calendar quarter.  In that event, the
  34-22  new rate takes effect on the first day of the next calendar quarter
  34-23  following the elapsed quarter.
  34-24        (c)  The comptroller shall remit to the county amounts
  34-25  collected at the rate imposed under this section as part of the
  34-26  regular allocation of county tax revenue collected by the
  34-27  comptroller.  The county shall, if the district is composed of an
   35-1  area less than the entire county, remit that amount to the
   35-2  district.  Retailers may not be required to use the allocation and
   35-3  reporting procedures in the collection of taxes under this section
   35-4  different from the procedures that retailers use in the collection
   35-5  of other sales and use taxes under this chapter.  An item,
   35-6  transaction, or service that is taxable in a county under a sales
   35-7  or use tax authorized by another section of this chapter is taxable
   35-8  under this section.  An item, transaction, or service that is not
   35-9  taxable in a county under a sales or use tax authorized by another
  35-10  section of this chapter is not taxable under this section.
  35-11        (d)  If, in a county where a county crime control and
  35-12  prevention district is composed of the whole county, a county sales
  35-13  and use tax or a county sales and use tax rate increase for the
  35-14  purpose of financing a county crime control and prevention district
  35-15  is approved, the county is responsible for distributing to the
  35-16  district that portion of the county sales and use tax revenue
  35-17  received from the comptroller that is to be used for the purposes
  35-18  of financing the county crime control and prevention district.  Not
  35-19  later than the 10th day after the date the county receives funds
  35-20  under this section from the comptroller, the county shall make the
  35-21  distribution in the proportion that the county crime control and
  35-22  prevention portion of the tax rate bears to the total sales and use
  35-23  tax rate of the county.  The amounts distributed to a county crime
  35-24  control and prevention district are not considered to be sales and
  35-25  use tax revenue for the purpose of property tax reduction and
  35-26  computation of the county tax rate under Section 26.041, Tax Code.
  35-27        (e)  For purposes of the tax imposed under this section, a
   36-1  reference in this chapter to the county as the territory in which
   36-2  the tax or an incident of the tax applies means only the territory
   36-3  located in the county crime control and prevention district, if
   36-4  that district is composed of an area less than an entire county.
   36-5        (f)  The comptroller may adopt rules and the county
   36-6  commissioners court may adopt orders to administer this section.
   36-7        SECTION 4.  Section 1.01, Crime Control and Prevention
   36-8  District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is
   36-9  amended to read as follows:
  36-10        Sec. 1.01.  SHORT TITLE.  This Act may be cited as the County
  36-11  Crime Control and Prevention District Act.
  36-12        SECTION 5.  Section 1.04(1), Crime Control and Prevention
  36-13  District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is
  36-14  amended to read as follows:
  36-15              (1)  "District" means a county crime control and
  36-16  prevention district created under this Act.
  36-17        SECTION 6.  Section 1.05A, Crime Control and Prevention
  36-18  District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is
  36-19  repealed.
  36-20        SECTION 7.  The governing body of a municipality in which a
  36-21  crime control and prevention district is established before the
  36-22  effective date of this Act under the Crime Control and Prevention
  36-23  District Act (Article 2370c-4, Vernon's Texas Civil Statutes),
  36-24  shall by resolution adopt the provisions of this Act as the
  36-25  statutes governing the operation of the crime control and
  36-26  prevention district.
  36-27        SECTION 8.  This Act takes effect September 1, 1995.
   37-1        SECTION 9.  The importance of this legislation and the
   37-2  crowded condition of the calendars in both houses create an
   37-3  emergency and an imperative public necessity that the
   37-4  constitutional rule requiring bills to be read on three several
   37-5  days in each house be suspended, and this rule is hereby suspended.