SRC-HRD S.B. 1674 75(R) BILL ANALYSIS
Senate Research Center S.B. 1674
By: Barrientos
Finance
4-2-97
As Filed
DIGEST
Currently, there is no provision in Texas law that allows residents of a
community to vote to tax themselves to support a library through a library
district, even though many Texans live in suburban or rural areas and do
not enjoy a city- or county-supported library system. This bill would
provide a mechanism for residents of communities without a municipal
public library to create a library district to support the educational,
informational, and literary needs of citizens in such areas.
PURPOSE
As proposed, S.B. 1674 provides for the creation of library districts and
sets forth the requirements for creating such districts.
RULEMAKING AUTHORITY
Rulemaking authority is granted to the board of trustees of a library
district under SECTION 1 (Sections 326.062, 326.064 and 362.094, Local
Government Code) of this bill
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Title 10B, Local Government Code, by adding Chapter 326,
as follows:
CHAPTER 326. LIBRARY DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 326.001. FINDINGS. Sets forth findings of the legislature.
Sec. 326.002. PURPOSE. Sets forth the purpose of a library district.
Sec. 326.003. DEFINITIONS. Defines "board," "district," and "municipal
public library."
Sec. 326.004. DISTRICT AUTHORIZATION. Authorizes the creation of a
library district. Requires a library district, if created, to be
maintained, operated, and financed as provided by this chapter. Provides
that a district created under this chapter is a governmental agency, body
politic and corporate, and political subdivision of the state.
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 326.021. CONFIRMATION ELECTION. Authorizes the creation of a
district and authorizes a sales and use tax only if the creation is
confirmed and the tax is approved by a majority of the qualified voters of
the district voting at an election held for that purpose.
Sec. 326.021. TERRITORY INCLUDED IN A DISTRICT. Authorizes a district to
include any contiguous territory that, on the date on which an election is
ordered on the question of creating the district, is not a municipality
that operates a municipal public library. Authorizes the district to
include incorporated and unincorporated territory. Prohibits a district
from including territory in more than one county.
Sec. 326.023. PETITION FOR CREATION OF DISTRICT. Requires the
commissioners court of the county in which the proposed district is
located, before a district may be created, to receive a petition signed by
at least 100 registered voters who reside in the territory of the proposed
district. Sets forth requirements regarding the petition.
Sec. 326.024. PAYMENT OF ELECTION COSTS. Prohibits the commissioners
court from ordering the creation of the district or a confirmation
election until certain conditions are met.
Sec. 326.025. FILING OF PETITION; HEARING; ORDERING ELECTION. Sets forth
requirements for the commissioners court at the next regular or special
session of the commissioners court held after the petition is filed with
the commissioners court.
Sec. 326.026. ELECTION ORDER. Sets forth requirements regarding the
election order.
Sec. 326.027. NOTICE. Requires the commissioners court to give notice of
the election by publishing a substantial copy of the election order once a
week for two consecutive weeks in a newspaper with general circulation in
the county in which the proposed district is located. Sets forth
additional requirements regarding the notice.
Sec. 326.028. BALLOT PROPOSITION. Sets forth the required language for
the ballot for the election. Sets forth additional requirements regarding
the ballot. Prohibits a voter from voting for more than five persons for
trustee.
Sec. 326.029. RESULTS OF ELECTION. Sets forth requirements for the
commissioners court if a majority of the votes received in the election
favor the creation of the district and the adoption of the sales and use
tax. Sets forth provisions applicable if a majority of the votes received
in the election are against the creation of the district. Sets forth
requirements regarding the order canvassing the results of the election.
Sec. 326.030. INITIAL TRUSTEES. Requires the commissioners court to
declare the five persons receiving the highest number of votes to be
elected as trustees. Sets forth provisions regarding the two trustees
elected who received the fewest number of votes and the three trustees who
received the highest number of votes.
SUBCHAPTER C. DISTRICT ADMINISTRATION
Sec. 326.041. BOARD OF TRUSTEES. Requires a district to be governed by a
board of five trustees.
Sec. 326.042. REGISTERED VOTER REQUIREMENT. Prohibits a person from
being elected to the board of trustees unless the person is a registered
voter of the county in which the district is located.
Sec. 326.043. ELECTION OF TRUSTEES; TERM OF OFFICE. Requires trustees to
serve two-year terms. Requires the general election for trustees to be
held annually on an authorized uniform election date under Chapter 41,
Election Code. Requires a candidate for a candidate for the office of
trustee, except for the initial members of the board of trustees, to file
an application for a place on the ballot in accordance with Chapter 144,
Election Code, and other applicable provisions of that code.
Sec. 326.044. BOARD VACANCY. Requires a vacancy in the office of a
trustee to be filled by appointment by the remaining trustees.
Sec. 326.045. OFFICERS. Requires the trustees, after the trustees have
assumed office, to elect from among the trustees a president, a vice
president, a secretary, and any other officers the board considers
necessary.
Sec. 326.046. QUORUM; OFFICERS' DUTIES. Provides that three trustees
constitute a quorum and a concurrence of three is sufficient in any matter
relating to the business of the district. Sets forth provisions regarding
the duties of officers. Authorizes the board to appoint the library
director or an employee as assistant or deputy secretary to assist the
secretary. Authorizes the assistant or deputy secretary to certify the
authenticity of any record of the district.
Sec. 326.047. BYLAWS. Authorizes the board to adopt certain bylaws.
Sec. 326.048. MEETINGS AND NOTICE. Authorizes the board to establish
regular meetings to conduct district businesses and to hold special
meetings at other times as the business of the district requires.
Requires the board to hold its meetings at a designated meeting place.
Sec. 326.049. MANAGEMENT OF DISTRICT. Provides that the board has
control over and shall control the affairs of the district. Sets forth
provisions regarding the employment of any person, firm, partnership, or
corporation.
Sec. 326.050. LIBRARY DIRECTOR. Authorizes the board to employ a library
director to administer the affairs of the district under policies
established by the board. Authorizes the board to set the compensation of
the library director.
Sec. 326.051. BOND. Authorizes the board to require an officer or
employee to execute a bond payable to the district and conditioned on the
faithful performance of the person's duties.
Sec. 326.052. TRUSTEE INTERESTED IN CONTRACT. Sets forth provisions
regarding a trustee who is financially interested in a contract with the
district, or a trustee who is an employee of a person that is financially
interested in a contract with the district.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 326.061. GENERAL POWERS OF DISTRICT. Provides that a district has
all of the powers, authority, rights, and duties that will permit the
accomplishment of the purposes for which the district was created,
including the power to purchase, construct, acquire, own, operate,
maintain, repair, or improve any works, materials, supplies, improvements,
facilities, equipment, vehicles, machinery, or appliances as necessary for
the district. Sets forth provisions applicable if a district acquires
existing improvements, facilities, equipment, or appliances.
Sec. 326.062. EMPLOYEE PLANS. Authorizes the board to provide for and
administer a workers' compensation, health benefit, retirement,
disability, or death compensation plan for employees of the district.
Authorizes the board to adopt a plan to accomplish the purpose of this
section. Authorizes the board, after notice and a hearing, to change any
plan or rule adopted under this section.
Sec. 326.063. SUITS. Authorizes a district to sue and be sued in any
court of this state in the name of the district. Requires all courts of
this state to take judicial notice of the establishment of a district.
Sec. 326.064. RULES. Authorizes the board to adopt reasonable rules to
accomplish the purposes of the district. Authorizes the board to set
monetary charges in reasonable amounts for the violation of a district
rule. Authorizes the board to exclude from the use of the library a
person who wilfully violates a rule adopted by the board.
Sec. 326.065. FEES. Authorizes a district to impose any necessary
changes or fees for providing a district service. Authorizes a district
to discontinue a service to enforce payment of an unpaid charge or fee
that is owed to the district.
Sec. 326.066. DEPOSITORY. Requires the board to designate one or more
banks inside or outside of the district to serve as the depository for
district money. Requires the tax revenue of the district to be deposited
in a depository bank.
Sec. 326.067. INVESTMENTS. Authorizes tax revenue of the district to be
invested in an obligation that is an authorized investment for the state.
Authorizes district money other than tax revenue to be invested in
accordance with policies adopted by the board.
Sec. 326.068. EXPENDITURES. Authorizes a district's money to be
disbursed only by check, draft, order, or another instrument that must be
signed by one or more officers or employees of the district as designated
by the board of trustees.
Sec. 326.069. ACCOUNTS AND RECORDS; AUDITS. Requires the district to
keep a complete system of accounts. Sets forth provisions regarding
audits.
Sec. 326.070. FISCAL YEAR. Provides that the fiscal year of the district
is from January 1 to December 31, unless the board adopts another fiscal
year.
Sec. 326.071. REPAYMENT OF ORGANIZATIONAL EXPENSES. Authorizes the
district to pay all costs and expenses necessarily incurred in the
creation and organization of the district and to reimburse any entity or
person for money advanced for the costs and expenses described by
Subdivision (1) of this section. Authorizes payments under this section
to be made from money obtained from taxes or other revenue of the
district.
SUBCHAPTER E. SALES AND USE TAX
Sec. 326.091. SALES AND USE TAX. Provides that the sales and use tax, if
adopted, does not count toward the limitation imposed by Chapter 323, Tax
Code, on any sales and the use tax that has been levied by the county.
Sets forth provisions applicable if a district adopts the tax. Defines
"taxable items" for the purposes of this section.
Sec. 326.092. IMPOSITION, COMPUTATION, ADMINISTRATION, AND GOVERNANCE OF
TAX. Sets forth provisions regarding applicable law. Requires the
district's name, in applying the procedures of Chapter 323, Tax Code, to
be substituted for "the county" and "board of trustees" to be substituted
for "commissioners court."
Sec. 326.093. TAX RATES. Sets forth the permissible rates for a local
sales and use tax levied under this chapter.
Sec. 326.094. ABOLITION OF OR CHANGE IN TAX RATE. Authorizes the board,
by order, to decrease or abolish the local sales and use tax rate or to
call an election to increase, decrease, or abolish the local sales and use
tax rate. Sets forth provisions regarding the ballots at the election.
Provides that the increase or decrease in the tax rate is effective if it
is approved by a majority of votes cast. Requires the board, in calling
and holding the election, to use the procedure for the confirmation and
tax election set forth in this chapter.
Sec. 326.095. USE OF TAX. Authorizes taxes collected under this
subchapter to be used only for the purposes for which the district was
created.
Sec. 326.096. LIMITATION ON ADOPTION OF TAX. Authorizes a district to
adopt a tax under this subchapter only if as a result of adoption of the
tax the combined rate of all local sales and use taxes imposed by
political subdivisions having territory in the district will not exceed
two percent. Sets forth provisions applicable if, as a result of the
imposition or increase in a sales and use tax by a municipality in which
there is located a district with an existing sales and use tax or as a
result of the annexation by a municipality of the territory in a district
with an existing sales and use tax, the overlapping local sales and use
taxes in the area in the district will exceed two percent. Sets forth
provisions applicable if a district's tax rate is reduced in accordance
with Subsection (b).
SECTION 2. Effective date: September 1, 1997.
SECTION 3. Emergency clause.