By Junell                                        H.B. No. 992

      75R4221 CLG-D                           

                                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 following 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, except as provided by Subsection (d).

 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 money.

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 of a board

 8-6     serve without compensation, but a director or officer may be

 8-7     reimbursed for actual expenses incurred in the performance of an

 8-8     official duty.  The expenses must be reported in the district's

 8-9     minute book or other district records.  Payment for the expenses

8-10     must be approved by the 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.

8-14           Sec. 4.08.  REJECTION OF MUNICIPAL FUNDING.  A two-thirds

8-15     majority vote of the board is required to reject any application

8-16     submitted by the governing body of the municipality in which the

8-17     district is located for funding available under this Act.

8-18           Sec. 4.09.  ADMINISTRATION.  The board may contract with a

8-19     public agency or private vendor to assist in the administration or

8-20     management of the district or to assist in the review of

8-21     applications for funding available under this Act.

8-22                        ARTICLE 5.  POWERS AND DUTIES

8-23           Sec. 5.01.  DISTRICT RESPONSIBILITIES; LIMITATIONS ON

8-24     EXPENDITURES.  (a)  A district may finance all the costs of a crime

8-25     control and crime prevention program, including the costs for

8-26     personnel, administration, expansion, enhancement, and capital

8-27     expenditures.  A program may include:

 9-1                 (1)  police and law enforcement related programs,

 9-2     including:

 9-3                       (A)  a multijurisdictional crime analysis center;

 9-4                       (B)  mobile crime analysis units;

 9-5                       (C)  crime stoppers telephone lines;

 9-6                       (D)  united property-marking programs;

 9-7                       (E)  home security inspection programs;

 9-8                       (F)  an automated fingerprint analysis center;

 9-9                       (G)  an enhanced radio dispatch center;

9-10                       (H)  a computerized criminal history system;

9-11                       (I)  enhanced information systems programs;

9-12                       (J)  a drug and chemical disposal center;

9-13                       (K)  a crime lab or medical examiner's lab; and

9-14                       (L)  a regional law enforcement training center;

9-15                 (2)  community-related crime prevention strategies,

9-16     including:

9-17                       (A)  block watch programs;

9-18                       (B)  a community crime resistance program;

9-19                       (C)  school-police programs;

9-20                       (D)  senior citizen community safety programs;

9-21                       (E)  senior citizen anti-crime networks;

9-22                       (F)  citizen crime-reporting projects;

9-23                       (G)  home alert programs;

9-24                       (H)  a police-community cooperation program;

9-25                       (I)  a radio alert program; and

9-26                       (J)  ride along programs;

9-27                 (3)  specific treatment and prevention programs,

 10-1    including:

 10-2                      (A)  positive peer group interaction programs;

 10-3                      (B)  drug and alcohol awareness programs;

 10-4                      (C)  family violence centers in the municipality;

 10-5                      (D)  work incentive programs;

 10-6                      (E)  social learning centers;

 10-7                      (F)  transitional aid centers and preparole

 10-8    centers;

 10-9                      (G)  guided group interaction programs;

10-10                      (H)  social development centers;

10-11                      (I)  street gang intervention centers;

10-12                      (J)  predelinquency intervention centers;

10-13                      (K)  school relations bureaus;

10-14                      (L)  integrated community education systems;

10-15                      (M)  steered straight programs;

10-16                      (N)  probation subsidy programs;

10-17                      (O)  Juvenile Offenders Learn Truth (JOLT) or

10-18    similar programs;

10-19                      (P)  reformatory visitation programs;

10-20                      (Q)  juvenile awareness programs;

10-21                      (R)  shock incarceration;

10-22                      (S)  shock probation;

10-23                      (T)  community restitution programs;

10-24                      (U)  team probation;

10-25                      (V)  electronic monitoring programs;

10-26                      (W)  community improvement programs;

10-27                      (X)  at home arrest;

 11-1                      (Y)  victim restitution programs; and

 11-2                      (Z)  additional probation or parole officers;

 11-3                (4)  court and prosecution services, including:

 11-4                      (A)  court watch programs;

 11-5                      (B)  community arbitration and mediation centers;

 11-6                      (C)  night prosecutors programs;

 11-7                      (D)  automated legal research systems;

 11-8                      (E)  an automated court management system;

 11-9                      (F)  a criminal court administrator;

11-10                      (G)  an automated court reporting system;

11-11                      (H)  additional municipal courts; and

11-12                      (I)  additional prosecutors and staff; and

11-13                (5)  additional jails, jailers, guards, and other

11-14    necessary staff.

11-15          (b)  The district shall coordinate its efforts with the local

11-16    community justice council in developing its crime control and crime

11-17    prevention program.

11-18          (c)  The district shall fund an annual evaluation program to

11-19    study the effect, efficiency, and effectiveness of new or expanded

11-20    crime control and crime prevention programs.

11-21          (d)  The board may seek the assistance of the Office of

11-22    State-Federal Relations in identifying and applying for federal

11-23    grants for criminal justice programs.  The board shall notify the

11-24    appropriate council of government of any intent to submit an

11-25    application for federal funds for inclusion in the regional

11-26    criminal justice planning process.

11-27          (e)  The district may apply for and receive grants for

 12-1    criminal and juvenile justice programs from the criminal justice

 12-2    division in the governor's office.

 12-3          Sec. 5.02.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  Except

 12-4    as provided by Section 6.06 of this Act, a board shall manage,

 12-5    control, and administer the district's money.

 12-6          Sec. 5.03.  OPEN MEETINGS; ADMINISTRATIVE PROCEDURE.  A board

 12-7    is subject to Chapters 551 and 2001, Government Code.

 12-8          Sec. 5.04.  LIABILITY.  A director is not liable for civil

 12-9    damages or criminal prosecution for an:

12-10                (1)  act performed in good faith in the execution of

12-11    duties as a director; or

12-12                (2)  action taken by the board.

12-13          Sec. 5.05.  DISTRICT RULES.  A board may adopt rules

12-14    governing district-funded programs and the duties, functions, and

12-15    responsibilities of district staff and employees.  A rule adopted

12-16    under this section may not conflict with a rule relating to

12-17    employees of the municipality in which the district is located.

12-18          Sec. 5.06.  METHODS AND PROCEDURES.  (a)  A board may

12-19    prescribe the method of making purchases and expenditures by and

12-20    for the district; however, the board may enter purchasing contracts

12-21    that involve spending more than $15,000 only after competitive

12-22    bidding as provided by Subchapter B, Chapter 252, Local Government

12-23    Code, to the extent those provisions can be made applicable to the

12-24    board.

12-25          (b)  The board may prescribe accounting and control

12-26    procedures for the district.

12-27          (c)  The municipal purchasing agent shall serve as purchasing

 13-1    agent for the district.

 13-2          Sec. 5.07.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.

 13-3    The board may acquire or lease property, facilities, or equipment

 13-4    for the sole purpose of administering the district.

 13-5          Sec. 5.08.  REIMBURSEMENT FOR SERVICES.  (a)  A county or

 13-6    municipality located entirely outside the boundaries of the

 13-7    district on request shall reimburse a district for the district's

 13-8    cost of including in a district program a resident of that county

 13-9    or municipality.

13-10          (b)  The board may require reimbursement from the state for

13-11    the district's cost of including in a district program or facility

13-12    a person who is a resident of the state but who is not a resident

13-13    of the district.

13-14          (c)  On behalf of the district, the board may contract with a

13-15    municipal or county government or with the state or federal

13-16    government for the municipal, county, state, or federal government

13-17    to reimburse the district for including a person in a district

13-18    program.

13-19          Sec. 5.09.  SERVICE CONTRACTS.  When acting on behalf of a

13-20    district, the board may contract with the following persons or

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                (1)  a municipality, county, special district, or other

13-25    political subdivision of the state;

13-26                (2)  a state or federal agency;

13-27                (3)  an individual; or

 14-1                (4)  a private entity.

 14-2          Sec. 5.10.  Donations, grants, and endowments.  On behalf of

 14-3    the district, the board may accept donations, grants, and

 14-4    endowments to be held in trust for any purpose and under any

 14-5    direction, limitation, or provision prescribed in writing by the

 14-6    donor that is consistent with this Act and the proper management of

 14-7    the district.

 14-8          Sec. 5.11.  Authority to sue and be sued.  A board may sue

 14-9    and be sued in the name of the district.

14-10                       ARTICLE 6.  DISTRICT FINANCES

14-11          Sec. 6.01.  Fiscal year.  (a)  A district is operated on a

14-12    fiscal year established by the board.

14-13          (b)  A fiscal year may not be changed more than once in a

14-14    24-month period.

14-15          Sec. 6.02.  Annual audit.  Annually, a board shall have an

14-16    independent auditor audit the financial condition of the district.

14-17          Sec. 6.03.  District audit and records.  The district shall

14-18    maintain the annual audits and other district records and make them

14-19    available for public inspection at the principal office of the

14-20    district during regular business hours.

14-21          Sec. 6.04.  Annual budget.  (a)  The board shall prepare a

14-22    proposed annual budget.

14-23          (b)  In preparing the proposed budget, the board shall

14-24    consider the applications submitted by the chief administrative

14-25    officer of the municipality in which the district is created, with

14-26    the consent of the municipality's governing body, for program

14-27    funding.

 15-1          (c)  The proposed budget must contain a complete financial

 15-2    statement, including a statement of:

 15-3                (1)  the outstanding obligations of the district;

 15-4                (2)  the amount of cash on hand to the credit of each

 15-5    district fund;

 15-6                (3)  the amount of money received by the district from

 15-7    all sources during the previous year;

 15-8                (4)  the estimated amount of money available to the

 15-9    district from all sources during the current fiscal year;

15-10                (5)  the amount of money needed to fund programs

15-11    approved for funding by the board;

15-12                (6)  the amount of money requested for programs that

15-13    were not approved for funding by the board;

15-14                (7)  the tax rate for the next fiscal year;

15-15                (8)  the amount of the balances expected at the end of

15-16    the year in which the budget is being prepared; and

15-17                (9)  the estimated amount of revenues and balances

15-18    available to cover the proposed budget.

15-19          Sec. 6.05.  Notice; board hearing; adoption of budget.

15-20    (a)  Not later than the 100th day before the beginning of each

15-21    fiscal year, a board shall hold a public hearing on the proposed

15-22    annual budget.

15-23          (b)  Not later than the 10th day before the date of the

15-24    hearing, the board shall publish notice of the hearing in a

15-25    newspaper with general circulation in the district.

15-26          (c)  Any resident of the district is entitled to be present

15-27    and participate at the hearing.

 16-1          (d)  Not later than the 80th day before the beginning of each

 16-2    fiscal year, the board shall adopt a budget.  The board may make

 16-3    any changes in the proposed budget that the board determines the

 16-4    interests of the taxpayers demand.

 16-5          (e)  The board shall submit the budget to the governing body

 16-6    of the municipality in which the district is located not later than

 16-7    the 10th day after the date the budget is adopted.

 16-8          (f)  The board by rule may develop and adopt procedures for

 16-9    adopting a budget different from the procedures outlined in this

16-10    article, but the board must hold public hearings relating to the

16-11    budget.

16-12          Sec. 6.06.  Notice; hearing; approval or rejection of budget.

16-13    (a)  Not later than the 45th day before the beginning of each

16-14    fiscal year, the governing body of the municipality in which a

16-15    district is located shall hold a public hearing on the proposed

16-16    annual budget.

16-17          (b)  Not later than the 10th day before the date of the

16-18    hearing, the governing body shall publish notice of the hearing in

16-19    a newspaper with general circulation in the district.

16-20          (c)  Any resident of the district is entitled to be present

16-21    and to participate at the hearing.

16-22          (d)  The governing body shall approve or reject the budget

16-23    submitted by the board not later than the 30th day before the

16-24    beginning of the fiscal year.  The governing body may not amend the

16-25    budget.

16-26          (e)  If the governing body rejects the budget submitted by

16-27    the board, the governing body and the board shall meet and jointly

 17-1    amend and approve the budget before the beginning of the fiscal

 17-2    year.

 17-3          (f)  The budget may be amended after the beginning of the

 17-4    fiscal year on approval by the board and the governing body.

 17-5          Sec. 6.07.  Limitation on expenditures.  Money may be spent

 17-6    only for an expense included in an annual budget or an amendment to

 17-7    the budget.

 17-8          Sec. 6.08.  SWORN STATEMENT.  Not later than the 60th day

 17-9    after the last day of each fiscal year, the municipal treasurer

17-10    shall prepare for the board a sworn statement of the amount of

17-11    money that belongs to the district and an account of the

17-12    disbursements of that money.

17-13          Sec. 6.09.  Spending and investment limitations.  (a)  A

17-14    district may not incur a debt payable from revenues of the district

17-15    other than the revenues on hand or to be on hand in the current or

17-16    immediately following fiscal year of the district.

17-17          (b)  The board may not invest district money in funds or

17-18    securities other than those specified by Article 836 or 837,

17-19    Revised Statutes, or by Chapter 2256, Government Code.

17-20          Sec. 6.10.  DEPOSIT OF MONEY.  (a)  A board shall deposit

17-21    district money in a special account in the treasury of the

17-22    municipality in which the district is located.

17-23          (b)  District money, other than money invested as provided by

17-24    Section 6.09(b) of this Act, shall be deposited as received in the

17-25    municipal treasury and must remain on deposit.

17-26          (c)  A board shall reimburse the municipality for any costs

17-27    the municipality incurs for performing the duties imposed under

 18-1    this section, other than costs of municipal personnel.

 18-2          Sec. 6.11.  APPLICATIONS FOR PROGRAM FUNDING.  (a)  A chief

 18-3    administrative officer of the municipality in which a district is

 18-4    located, with the consent of the governing body of the

 18-5    municipality, may apply to the board for funding of a program as

 18-6    described by Section 5.01 of this Act.

 18-7          (b)  Applications under this section must be submitted not

 18-8    later than the 140th day before the beginning of the fiscal year,

 18-9    unless an exception has been adopted by rule.

18-10          (c)  The board by rule may develop and adopt application

18-11    procedures.

18-12                             ARTICLE 7.  BONDS

18-13          Sec. 7.01.  Bonds.  A board may not issue or sell general

18-14    obligation bonds, revenue bonds, or refunding bonds.

18-15                     ARTICLE 8.  DISTRICT CONTINUATION

18-16          Sec. 8.01.  Continuation referendum.  (a)  A board may hold a

18-17    referendum on the question of whether to continue the district.

18-18          (b)  The board shall order a continuation referendum if a

18-19    petition that requests continuation of the district is presented in

18-20    accordance with this article or if a majority of the governing body

18-21    of the municipality in which the district is located by resolution

18-22    requests continuation after notice and a public hearing on the

18-23    matter.  The board, however, may not hold a continuation referendum

18-24    before the fifth anniversary of the date on which the district is

18-25    created or before the third anniversary of the date of the last

18-26    preceding continuation or dissolution referendum.

18-27          (c)  For a continuation referendum, the ballot shall be

 19-1    printed to permit voting for or against the proposition:  "Whether

 19-2    the ____________ (insert the name of the municipality) Crime

 19-3    Control and Prevention District should be continued and the crime

 19-4    control and prevention district sales and use tax should be

 19-5    continued."

 19-6          Sec. 8.02.  Methods for initiating election.  A board may

 19-7    order a continuation referendum on its own motion by a majority

 19-8    vote of its members.  The board shall order a continuation

 19-9    referendum:

19-10                (1)  on the presentation of a petition meeting the

19-11    requirements of Sections 8.03 through 8.08 of this Act; or

19-12                (2)  on the request of the governing body under Section

19-13    8.01(b) of this Act.

19-14          Sec. 8.03.  Application for petition; issuance.  If the

19-15    municipal secretary receives a written application signed by 10 or

19-16    more registered voters of the district, the secretary shall issue

19-17    to the applicants a petition to be circulated among registered

19-18    voters for their signatures.

19-19          Sec. 8.04.  Contents of application.  To be valid, an

19-20    application for a petition must contain:

19-21                (1)  a heading in the following words:  "Application

19-22    for a Petition for a Local Option Referendum to Continue the Crime

19-23    Control and Prevention District and to Continue the Crime Control

19-24    and Prevention District Sales and Use Tax";

19-25                (2)  a statement of the issue to be voted on in the

19-26    following words:  "Whether the ____________ (insert the name of the

19-27    municipality) Crime Control and Prevention District should be

 20-1    continued and the crime control and prevention district sales and

 20-2    use tax should be continued";

 20-3                (3)  a statement immediately above the signatures of

 20-4    the applicants, reading as follows:  "It is the purpose and intent

 20-5    of the applicants whose signatures appear below that the crime

 20-6    control and prevention district be continued and the crime control

 20-7    and prevention district sales and use tax in ____________ (insert

 20-8    the name of the municipality) be continued"; and

 20-9                (4)  the printed name, signature, residence address,

20-10    and voter registration certificate number of each applicant.

20-11          Sec. 8.05.  Contents of petition.  To be valid, a petition

20-12    must contain:

20-13                (1)  a heading in the following words:  "Petition for a

20-14    Local Option Referendum to Continue the ____________ (insert the

20-15    name of the municipality) Crime Control and Prevention District and

20-16    to Continue the Crime Control and Prevention District Sales and Use

20-17    Tax";

20-18                (2)  a statement of the issue to be voted on in the

20-19    same words used in the application;

20-20                (3)  a statement immediately above the signatures of

20-21    the petitioners, reading as follows:  "It is the purpose and intent

20-22    of the petitioners whose signatures appear below that the crime

20-23    control and prevention district be continued and the crime control

20-24    and prevention district sales and use tax in ____________ (insert

20-25    the name of the municipality) be continued";

20-26                (4)  lines and spaces for the names, signatures,

20-27    residence addresses, and voter registration certificate numbers of

 21-1    the petitioners; and

 21-2                (5)  the date of issuance, the serial number, and the

 21-3    seal of the municipal secretary on each page.

 21-4          Sec. 8.06.  Copies.  The municipal secretary shall keep the

 21-5    application and a copy of the petition in the files of the

 21-6    secretary's office.  The secretary shall issue to the applicants as

 21-7    many copies as the applicants request.

 21-8          Sec. 8.07.  Filing of petition; number of signatures.  To

 21-9    form the basis for the ordering of a referendum, the petition must

21-10    be filed with the municipal secretary not later than the 60th day

21-11    after the date of its issuance, and it must contain a number of

21-12    signatures of registered voters of the municipality equal to five

21-13    percent of the number of votes cast in the municipality for all

21-14    candidates for mayor in the most recent city council election.

21-15          Sec. 8.08.  Review by municipal secretary.  (a)  The

21-16    municipal secretary, on request of any district resident, shall

21-17    verify each name on a petition to determine whether the signer is a

21-18    registered voter of the district.  A person requesting the

21-19    secretary to verify the names must pay the secretary an amount

21-20    equal to 20 cents per name before verification begins.

21-21          (b)  The secretary may not count a signature if there is

21-22    reason to believe that:

21-23                (1)  it is not the actual signature of the purported

21-24    signer;

21-25                (2)  the voter registration certificate number is not

21-26    correct;

21-27                (3)  it is a duplicate of a name used in, or it is in

 22-1    the same handwriting as, another signature on the petition;

 22-2                (4)  the residence address of the signer is not

 22-3    correct; or

 22-4                (5)  the name of the voter is not signed exactly as it

 22-5    appears on the official copy of the current list of registered

 22-6    voters for the voting year in which the petition is issued.

 22-7          Sec. 8.09.  CERTIFICATION.  Not later than the 40th day after

 22-8    the date a petition is filed, excluding Saturdays, Sundays, and

 22-9    legal holidays, the municipal secretary shall certify to the board

22-10    the number of registered voters signing the petition.

22-11          Sec. 8.10.  ORDER OF ELECTION.  (a)  A board shall record in

22-12    its minutes the date the petition is filed and  the date it is

22-13    certified by the municipal secretary.

22-14          (b)  If the petition contains the required number of

22-15    signatures and is in proper order, the board, at its next regular

22-16    session after the certification by the secretary, shall order a

22-17    referendum to be held at the regular polling place in each county

22-18    election precinct in the municipality on the next uniform election

22-19    date authorized by Section 41.001(a), Election Code, that occurs at

22-20    least 45 days after the date of the order.  The board  shall state

22-21    in the order the proposition to be voted on in the referendum.  The

22-22    order is prima facie evidence of compliance with all provisions

22-23    necessary to give it validity.

22-24          Sec. 8.11.  APPLICATION OF ELECTION CODE.  A continuation

22-25    referendum shall be held and the returns shall be prepared and

22-26    canvassed in accordance with the Election Code.

22-27          Sec. 8.12.  RESULTS OF REFERENDUM.  (a)  If a majority of the

 23-1    votes cast in a referendum under this section are not for the

 23-2    continuation of a district:

 23-3                (1)  the board shall certify that fact to the secretary

 23-4    of state not later than the 10th day after the date of the canvass

 23-5    of the returns; and

 23-6                (2)  the district is dissolved and ceases to operate

 23-7    except as provided by Subsection (b) of this section.

 23-8          (b)  A district that is dissolved and that owns property or

 23-9    has outstanding short-term or long-term liabilities may continue to

23-10    operate temporarily as provided by Section 10.02 of this Act.

23-11          (c)  If a majority of the votes cast in the referendum under

23-12    this section are for the continuation of the district, another

23-13    continuation referendum may not be held except as authorized by

23-14    Section 8.01 of this Act.

23-15          Sec. 8.13.  CONTEST OF ELECTION.  Not later than the 30th day

23-16    after the date the result of a continuation  referendum is

23-17    declared, any qualified voter of the district may contest the

23-18    election by filing a petition in a district court located in the

23-19    district.

23-20                     ARTICLE 9.  DISTRICT DISSOLUTION

23-21          Sec. 9.01.  DISSOLUTION REFERENDUM.  (a)  A board may hold a

23-22    referendum on the question of whether to dissolve the district.

23-23          (b)  The board shall order a dissolution referendum if a

23-24    petition that requests dissolution of the district is presented in

23-25    accordance with this article or if a majority of the governing body

23-26    of the municipality in which the district is located by resolution

23-27    requests dissolution after notice and a public hearing on the

 24-1    matter.  The board, however, may not hold a dissolution referendum

 24-2    before the fifth anniversary of the date on which the district is

 24-3    created or the third anniversary of the date of the last preceding

 24-4    continuation or dissolution referendum.

 24-5          (c)  For a dissolution referendum, the ballot shall be

 24-6    printed to permit voting for or against the proposition:  "Whether

 24-7    the ________ (insert the name of the municipality) Crime Control

 24-8    and Prevention District should be dissolved and  the crime control

 24-9    and prevention district sales and use tax should be abolished."

24-10          Sec. 9.02.  METHODS FOR INITIATING ELECTION.  A board may

24-11    order a dissolution referendum on its own motion by a majority vote

24-12    of its members.  The board shall order a dissolution referendum:

24-13                (1)  on the presentation of a petition meeting the

24-14    requirements of Sections 9.03 through 9.08 of this Act; or

24-15                (2)  on the request of the governing body under Section

24-16    9.01(b) of this Act.

24-17          Sec. 9.03.  APPLICATION FOR PETITION; ISSUANCE.  If the

24-18    municipal secretary receives a written application signed by 10 or

24-19    more registered voters of a district, the secretary shall issue to

24-20    the applicants a petition to be circulated among registered voters

24-21    for their signatures.

24-22          Sec. 9.04.  CONTENTS OF APPLICATION.  To be valid, an

24-23    application for a petition must contain:

24-24                (1)  a heading in the following words:  "Application

24-25    for a Petition for a Local Option Referendum to Dissolve the Crime

24-26    Control and Prevention District and to Abolish the Crime Control

24-27    and Prevention District Sales and Use Tax";

 25-1                (2)  a statement of the issue to be voted on in the

 25-2    following words:  "Whether the ________ (insert the name of the

 25-3    municipality) Crime Control and Prevention District should be

 25-4    dissolved and the crime control and prevention district sales and

 25-5    use tax should be abolished";

 25-6                (3)  a statement immediately above the signatures of

 25-7    the applicants, reading as follows:  "It is the purpose and intent

 25-8    of the applicants whose signatures appear below that the crime

 25-9    control and prevention district be dissolved and the crime control

25-10    and prevention district sales and use tax in ________ (insert the

25-11    name of the municipality) be abolished"; and

25-12                (4)  the printed name, signature, residence address,

25-13    and voter registration certificate number of each applicant.

25-14          Sec. 9.05.  CONTENTS OF PETITION.  To be valid, a petition

25-15    must contain:

25-16                (1)  a heading in the following words:  "Petition for a

25-17    Local Option Referendum to Dissolve the ________ (insert the name

25-18    of the municipality) Crime Control and Prevention District and to

25-19    Abolish the Crime Control and Prevention District Sales and Use

25-20    Tax";

25-21                (2)  a statement of the issue to be voted on in the

25-22    same words used in the application;

25-23                (3)  a statement immediately above the signatures of

25-24    the petitioners, reading as follows:  "It is the purpose and intent

25-25    of the petitioners whose signatures appear below that the crime

25-26    control and prevention district be dissolved and the crime  control

25-27    and prevention district sales and use tax in ________ (insert the

 26-1    name of the municipality) be abolished";

 26-2                (4)  lines and spaces for the names, signatures,

 26-3    residence addresses, and voter registration certificate numbers of

 26-4    the petitioners; and

 26-5                (5)  the date of issuance, the serial number, and the

 26-6    seal of the municipal secretary on each page.

 26-7          Sec. 9.06.  COPIES.  The municipal secretary shall keep the

 26-8    application and a copy of the petition in the files of the

 26-9    secretary's office.  The secretary shall issue to the applicants as

26-10    many copies as the applicants request.

26-11          Sec. 9.07.  FILING OF PETITION; NUMBER OF SIGNATURES.  To

26-12    form the basis for the ordering of a referendum, the petition must

26-13    be filed with the municipal secretary not later than the 60th day

26-14    after the date of its issuance, and it must contain a number of

26-15    signatures of registered voters of the municipality equal to five

26-16    percent of the number of votes cast in the municipality for all

26-17    candidates for mayor in the most recent city council election.

26-18          Sec. 9.08.  REVIEW BY MUNICIPAL SECRETARY.  (a)  The

26-19    municipal secretary, on request of any district resident,  shall

26-20    verify each name on a petition to determine whether the signer is a

26-21    registered voter of the district.  A person requesting the

26-22    secretary to verify the names must pay the secretary an amount

26-23    equal to 20 cents per name before the verification begins.

26-24          (b)  The secretary may not count a signature if there is

26-25    reason to believe that:

26-26                (1)  it is not the actual signature of the purported

26-27    signer;

 27-1                (2)  the voter registration certificate number is not

 27-2    correct;

 27-3                (3)  it is a duplicate of a name used in, or it is in

 27-4    the same handwriting as, another signature on the petition;

 27-5                (4)  the residence address of the signer is not

 27-6    correct; or

 27-7                (5)  the name of the voter is not signed exactly as it

 27-8    appears on the official copy of the current list of registered

 27-9    voters for the voting year in which the petition is issued.

27-10          Sec. 9.09.  CERTIFICATION.  Not later than the 40th day after

27-11    the date a petition is filed, excluding Saturdays, Sundays, and

27-12    legal holidays, the municipal secretary shall certify to the board

27-13    the number of registered voters signing the petition.

27-14          Sec. 9.10.  ORDER OF ELECTION.  (a)  A board shall record in

27-15    its minutes the date the petition is filed and the date it is

27-16    certified by the municipal secretary.

27-17          (b)  If the petition contains the required number of

27-18    signatures and is in proper order, at the board's next regular

27-19    session after the certification by the secretary, the board shall

27-20    order a referendum to be held at the regular polling place in each

27-21    election precinct in the municipality on the next uniform election

27-22    date authorized by Section 41.001(a), Election Code, that occurs at

27-23    least 45 days after the date of the order.  The board shall state

27-24    in the order the proposition to be voted on in the referendum.  The

27-25    order is prima facie evidence of compliance with all provisions

27-26    necessary to give it validity.

27-27          Sec. 9.11.  APPLICATION OF ELECTION CODE.  A dissolution

 28-1    referendum shall be held and the returns shall be prepared and

 28-2    canvassed in conformity with the Election Code.

 28-3          Sec. 9.12.  RESULTS OF REFERENDUM.  (a)  If a majority of the

 28-4    votes cast in a referendum under this section are for the

 28-5    dissolution of a district:

 28-6                (1)  the board shall certify that fact to the secretary

 28-7    of state not later than the 10th day after the date of the canvass

 28-8    of the returns; and

 28-9                (2)  the district is dissolved and ceases to operate

28-10    except as provided by Subsection (b) of this section.

28-11          (b)  A district that is dissolved and that has outstanding

28-12    short-term or long-term liabilities may continue to operate

28-13    temporarily as provided by Section 10.02 of this Act.

28-14          (c)  If less than a majority of the votes cast in the

28-15    referendum under this section are for the dissolution of the

28-16    district, another dissolution referendum may not be held except as

28-17    authorized by Section 9.01 of this Act.

28-18          Sec. 9.13.  CONTEST OF ELECTION.  Not later than the 30th day

28-19    after the date the result of a dissolution referendum is declared,

28-20    any qualified voter of the district may contest the election by

28-21    filing a petition in a district court located in the district.

28-22                         ARTICLE 10.  DISSOLUTION

28-23          Sec. 10.01.  SUNSET PROVISION.  Unless the district is

28-24    continued as provided by Article  8, the district is dissolved on

28-25    the later of:

28-26                (1)  the sixth anniversary of the date the district is

28-27    created; or

 29-1                (2)  the fifth anniversary of the date of the most

 29-2    recent continuation or dissolution referendum.

 29-3          Sec. 10.02.  DISSOLUTION OF DISTRICT.  (a)  On the date that

 29-4    the district is dissolved, the district, as prescribed by

 29-5    Subsection (h) of this section, shall convey or transfer to the

 29-6    municipality in the district:

 29-7                (1)  title to land, buildings, real and tangible

 29-8    improvements, and equipment owned by the district;

 29-9                (2)  money for the operation of the district and

29-10    reserves for operating expenses and money that has been budgeted by

29-11    the district for the remainder of the fiscal year in which the

29-12    district is dissolved to support crime control activities and

29-13    programs for residents of the municipality;

29-14                (3)  taxes imposed by the district during the current

29-15    year for crime control purposes;

29-16                (4)  funds established for payment of indebtedness

29-17    assumed by the district; and

29-18                (5)  any accumulated employee retirement funds.

29-19          (b)  After the date the district is dissolved, the district

29-20    may not impose taxes for district purposes or for providing crime

29-21    control activities and programs for the residents of the district.

29-22          (c)  If on the date the district is dissolved the district

29-23    has outstanding short-term or long-term liabilities, the board, not

29-24    later than the 30th day after the dissolution, shall adopt a

29-25    resolution certifying each outstanding short-term and long-term

29-26    liability.  The municipality in which the district is located shall

29-27    assume the outstanding short-term and long-term liabilities.  The

 30-1    municipality shall collect the sales and use tax for the district

 30-2    for the remainder of the calendar year and by resolution of the

 30-3    municipality's governing body may continue to collect the tax for

 30-4    an  additional calendar year if the revenue from the tax is needed

 30-5    to retire liabilities of the district that were assumed by the

 30-6    municipality.  The municipality's governing body shall notify the

 30-7    comptroller of this continuation not later than  the 60th day

 30-8    before the date on which the tax would otherwise expire.  Any tax

 30-9    collected after the liabilities have been retired shall be

30-10    transferred or conveyed as prescribed by Subsection (a) of this

30-11    section.

30-12          (d)  The district and the board may continue to operate for a

30-13    period not to exceed two months after carrying out the

30-14    responsibilities required by Subsections (a) and (c) of this

30-15    section.  The board and the district are continued in effect for

30-16    the purpose of satisfying these responsibilities.

30-17          (e)  If the board and the district are continued in effect

30-18    under Subsection (d) of this section, the board and district are

30-19    dissolved entirely on the first day of the month following the

30-20    month in which the  board issues an order certifying to the

30-21    secretary of state that no responsibilities prescribed by

30-22    Subsections (a) and (c) of this section are left unsatisfied.

30-23          (f)  A district or board that continues to operate under

30-24    Subsection (d) of this section may not incur any new liabilities

30-25    without the approval of the governing body of the municipality in

30-26    which the district is located.  Not later than the 60th day after

30-27    the date of the dissolution referendum, the governing body shall

 31-1    review the outstanding liabilities of the district and set a

 31-2    specific date by which the municipality must retire the district's

 31-3    outstanding liabilities.

 31-4          (g)  On the date that the district is dissolved,

 31-5    district-funded programs, including additional courts, shall

 31-6    immediately terminate and district-funded personnel, except

 31-7    personnel required to retire the responsibilities of the district,

 31-8    are terminated.

 31-9          (h)  The board shall convey or transfer to the municipality

31-10    the value of the items described by Subsection (a) of this section.

31-11                       ARTICLE 11.  STATE LIABILITY

31-12          Sec. 11.01.  STATE LIABILITY.  The state is not obligated for

31-13    the support, maintenance, or dissolution of a crime control

31-14    district created under this Act.

31-15          SECTION 2.  Subchapter B, Chapter 321, Tax Code, is amended

31-16    by adding Section 321.106 to read as follows:

31-17          Sec. 321.106.  MUNICIPAL CRIME CONTROL DISTRICT TAX.  (a)

31-18    Subject to an election held in accordance with the Municipal Crime

31-19    Control and Prevention District Act (Article 2370c-5, Revised

31-20    Statutes), a municipality in which a crime control and prevention

31-21    district is established shall adopt a sales and use tax for the

31-22    benefit of the district in the area of the district for the purpose

31-23    of financing the operation of the municipal crime control and

31-24    prevention district.   The revenue from the tax may be used only

31-25    for the purpose of financing the operation of the municipal crime

31-26    control and prevention district.  The proposition for adopting a

31-27    tax under this section and the proposition for creation of a crime

 32-1    control and prevention district shall be submitted at the same

 32-2    election.  For purposes of Section 321.101(e), a tax under this

 32-3    section is not an additional sales and use tax.

 32-4          (b)  A tax adopted for a district under this section for

 32-5    financing the operation of the district may be decreased in

 32-6    increments of one-eighth of one percent by order of the board of

 32-7    directors of the district.  The rate of a tax adopted for a

 32-8    district under this section may be increased in increments of

 32-9    one-eighth of one percent, not to exceed a total tax rate of

32-10    one-half percent for financing the operation of the municipal crime

32-11    control and prevention district, by order of the board of directors

32-12    of the municipal crime control and prevention district if approved

32-13    by a majority of the qualified voters voting at an election called

32-14    by the board and held in the district on the question of increasing

32-15    the tax rate.  At the election, the ballot shall be printed to

32-16    provide for voting for or against the following proposition:  "The

32-17    increase of the ________ (insert the name of the municipality)

32-18    Crime Control and Prevention District sales and use tax rate to ___

32-19    percent."  If there is an increase or decrease under this

32-20    subsection in the rate of a tax imposed under this section, the new

32-21    rate takes effect as prescribed by Sections 321.102(b) and (d).

32-22          (c)  The comptroller shall remit to the municipality in which

32-23    the municipal crime control and prevention district is created

32-24    amounts collected at the rate imposed under this section as part of

32-25    the regular allocation of municipal tax revenue collected by the

32-26    comptroller.  The municipality shall deposit the amounts it

32-27    receives from the comptroller under this subsection in a special

 33-1    account in the treasury of the municipality as required under

 33-2    Section 6.10, Municipal Crime Control and Prevention District Act

 33-3    (Article 2370c-5, Revised Statutes).  A retailer may not be

 33-4    required to use an allocation or reporting procedure in the

 33-5    collection of taxes under this section that is different from the

 33-6    procedures that retailers use in the collection of other sales and

 33-7    use taxes under this chapter.  An item, transaction, or service

 33-8    that is taxable in a municipality under a sales or use tax

 33-9    authorized by another section of this chapter is taxable under this

33-10    section.  An item, transaction, or service that is not taxable in a

33-11    municipality under a sales or use tax authorized by another section

33-12    of this chapter is not taxable under this section.

33-13          (d)  The comptroller may adopt rules and the governing body

33-14    of the municipality may adopt orders to administer this section.

33-15          SECTION 3.  Section 323.105, Tax Code, is amended to read as

33-16    follows:

33-17          Sec. 323.105.  County CRIME CONTROL DISTRICT TAX.

33-18    (a)  Subject to an election held in accordance with the County

33-19    Crime Control and Prevention District Act, a county in which a

33-20    county crime control and prevention district is established shall

33-21    adopt a sales and use tax in the area of the district for the

33-22    purpose of financing the operation of the county crime control and

33-23    prevention district.  The revenue from the tax may be used only for

33-24    the purpose of financing the operation of the county crime control

33-25    and prevention district.  The proposition for adopting a tax under

33-26    this section and the proposition for creation of a county crime

33-27    control and prevention district shall be submitted at the same

 34-1    election.  For purposes of Subsection (c) of Section 323.101 of

 34-2    this code, a tax under this section is not a county sales and use

 34-3    tax.

 34-4          (b)  A tax adopted for a district under this section for

 34-5    financing the operation of the district may be decreased in

 34-6    increments of one-fourth of one percent by order of the board of

 34-7    directors of the district.  The rate of a tax adopted for a

 34-8    district under this section may be increased in increments of

 34-9    one-fourth of one percent, not to exceed a total tax rate of

34-10    one-half percent for financing the operation of the county crime

34-11    control and prevention district, by order of the board of directors

34-12    of the county crime control and prevention district if approved by

34-13    a majority of the qualified voters voting at an election called by

34-14    the board and held in the district on the question of increasing

34-15    the tax rate.  At the election, the ballot shall be printed to

34-16    provide for voting for or against the following proposition:  "The

34-17    increase of the ____________ County Crime Control and Prevention

34-18    District sales and use tax rate to ____________ percent."  If there

34-19    is an increase or decrease under this subsection in the rate of a

34-20    tax imposed under this section, the new rate takes effect on the

34-21    first day of the next calendar year after the expiration of one

34-22    calendar quarter after the comptroller receives notice of the

34-23    increase or decrease.  However, if the comptroller notifies the

34-24    president of the board of directors of the district in writing

34-25    within 10 days after receipt of the notification that the

34-26    comptroller requires more time to implement reporting and

34-27    collection procedures, the comptroller may delay implementation of

 35-1    the rate change for one whole calendar quarter.  In that event, the

 35-2    new rate takes effect on the first day of the next calendar quarter

 35-3    following the elapsed quarter.

 35-4          (c)  The comptroller shall remit to the county amounts

 35-5    collected at the rate imposed under this section as part of the

 35-6    regular allocation of county tax revenue collected by the

 35-7    comptroller.  The county shall, if the district is composed of an

 35-8    area less than the entire county, remit that amount to the

 35-9    district.  Retailers may not be required to use the allocation and

35-10    reporting procedures in the collection of taxes under this section

35-11    different from the procedures that retailers use in the collection

35-12    of other sales and use taxes under this chapter.  An item,

35-13    transaction, or service that is taxable in a county under a sales

35-14    or use tax authorized by another section of this chapter is taxable

35-15    under this section.  An item, transaction, or service that is not

35-16    taxable in a county under a sales or use tax authorized by another

35-17    section of this chapter is not taxable under this section.

35-18          (d)  If, in a county where a county crime control and

35-19    prevention district is composed of the whole county, a county sales

35-20    and use tax or a county sales and use tax rate increase for the

35-21    purpose of financing a county crime control and prevention district

35-22    is approved, the county is responsible for distributing to the

35-23    district that portion of the county sales and use tax revenue

35-24    received from the comptroller that is to be used for the purposes

35-25    of financing the county crime control and prevention district.  Not

35-26    later than the 10th day after the date the county receives funds

35-27    under this section from the comptroller, the county shall make the

 36-1    distribution in the proportion that the county crime control and

 36-2    prevention portion of the tax rate bears to the total sales and use

 36-3    tax rate of the county.  The amounts distributed to a county crime

 36-4    control and prevention district are not considered to be sales and

 36-5    use tax revenue for the purpose of property tax reduction and

 36-6    computation of the county tax rate under Section 26.041, Tax Code.

 36-7          (e)  For purposes of the tax imposed under this section, a

 36-8    reference in this chapter to the county as the territory in which

 36-9    the tax or an incident of the tax applies means only the territory

36-10    located in the county crime control and prevention district, if

36-11    that district is composed of an area less than an entire county.

36-12          (f)  The comptroller may adopt rules and the county

36-13    commissioners court may adopt orders to administer this section.

36-14          SECTION 4.  Section 1.01, Crime Control and Prevention

36-15    District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is

36-16    amended to read as follows:

36-17          Sec. 1.01.  SHORT TITLE.  This Act may be cited as the County

36-18    Crime Control and Prevention District Act.

36-19          SECTION 5.  Section 1.04(1), Crime Control and Prevention

36-20    District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is

36-21    amended to read as follows:

36-22                (1)  "District" means a county crime control and

36-23    prevention district created under this Act.

36-24          SECTION 6.  Section 1.05A, Crime Control and Prevention

36-25    District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is

36-26    repealed.

36-27          SECTION 7.  The governing body of a municipality in which a

 37-1    crime control and prevention district is established before the

 37-2    effective date of this Act under the Crime Control and Prevention

 37-3    District Act (Article 2370c-4, Vernon's Texas Civil Statutes),

 37-4    shall by resolution adopt the provisions of this Act as the

 37-5    statutes governing the operation of the crime control and

 37-6    prevention district.

 37-7          SECTION 8.  This Act takes effect September 1, 1997.

 37-8          SECTION 9.  The importance of this legislation and the

 37-9    crowded condition of the calendars in both houses create an

37-10    emergency and an imperative public necessity that the

37-11    constitutional rule requiring bills to be read on three several

37-12    days in each house be suspended, and this rule is hereby suspended.