1-1 AN ACT
1-2 relating to certain crime control and prevention districts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1.05A, Crime Control and Prevention
1-5 District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is
1-6 amended to read as follows:
1-7 Sec. 1.05A. CREATION OF DISTRICT BY CERTAIN MUNICIPALITIES.
1-8 A municipality that is partially or wholly located in a county with
1-9 a population of more than 5,000 [1 million] may create a crime
1-10 control district in its jurisdiction in the same manner as a county
1-11 under this Act. A crime control district created by a municipality
1-12 under this section has the same relationship with the municipality
1-13 as a crime control district created by a [the] county under this
1-14 Act has with the county. A municipality creating a district under
1-15 this section shall pay the entire cost of creating the district but
1-16 may be reimbursed for its costs under Section 3.10(d) of this Act.
1-17 SECTION 2. Section 3.03(b), Crime Control and Prevention
1-18 District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is
1-19 amended to read as follows:
1-20 (b) The proposed rate for the district sales and use tax
1-21 imposed under Subchapter B, Chapter 323, Tax Code, may be only:
1-22 (1) one-eighth of one percent;
1-23 (2) one-fourth of one percent;
1-24 (3) three-eighths of one percent; or
2-1 (4) [(2)] one-half of one percent.
2-2 SECTION 3. Section 4.01, Crime Control and Prevention
2-3 District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is
2-4 amended by adding Subsections (c) and (d) to read as follows:
2-5 (c) The governing body of a municipality or county by
2-6 resolution may appoint the governing body's membership as the board
2-7 of directors of the district, if the appointment is approved by the
2-8 voters in a creation election or continuation referendum under this
2-9 Act. A member of a governing body appointed under this section as
2-10 a member of the district's board of directors serves a term
2-11 concurrent with the member's term as a member of the governing
2-12 body.
2-13 (d) In a district for which the governing body of the
2-14 municipality or county does not serve as the district's board of
2-15 directors, the governing body may create a board of directors for
2-16 which one director is appointed by each member of the governing
2-17 body to serve at the pleasure of that member for a term that is
2-18 concurrent with the term of the member of the governing body that
2-19 appointed the director.
2-20 SECTION 4. Section 8.01, Crime Control and Prevention
2-21 District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is
2-22 amended by adding Subsection (d) to read as follows:
2-23 (d) In a county with a population of one million or more,
2-24 the board or commissioners court may specify the number of years
2-25 for which the district should be continued. The governing body of
2-26 a municipality with a population of 75,000 or less that creates a
2-27 district under Section 1.05A of this Act may specify the number of
3-1 years for which the district should be continued. The board,
3-2 commissioners court, or governing body of a municipality may
3-3 continue a district only for 5, 10, 15, or 20 years. For a
3-4 continuation referendum under this subsection, the ballot shall be
3-5 printed to permit voting for or against the proposition: "Whether
3-6 the ______ Crime Control and Prevention District should be
3-7 continued for _____ years and the crime control and prevention
3-8 district sales and use tax should be continued for _____ years."
3-9 SECTION 5. Section 10.01, Crime Control and Prevention
3-10 District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is
3-11 amended by amending Subsection (a) and adding Subsection (c) to
3-12 read as follows:
3-13 (a) A district is dissolved five years after the date the
3-14 district began to levy taxes for district purposes [was created] if
3-15 the district has not held a continuation or dissolution referendum.
3-16 (c) Subsection (b) of this section does not apply to a
3-17 district that is continued under Section 8.01(d) of this Act, and
3-18 that district is dissolved on the expiration of the period for
3-19 which it was continued.
3-20 SECTION 6. Section 323.105, Tax Code, is amended to read as
3-21 follows:
3-22 Sec. 323.105. Crime Control District Tax. (a) Subject to
3-23 an election held in accordance with the Crime Control and
3-24 Prevention District Act, a county in which a crime control and
3-25 prevention district is established shall adopt a sales and use tax
3-26 in the area of the district for the purpose of financing the
3-27 operation of the crime control and prevention district. The
4-1 revenue from the tax may be used only for the purpose of financing
4-2 the operation of the crime control and prevention district. The
4-3 proposition for adopting a tax under this section and the
4-4 proposition for creation of a crime control and prevention district
4-5 shall be submitted at the same election. For purposes of
4-6 Subsection (c) of Section 323.101 of this code, a tax under this
4-7 section is not a county sales and use tax.
4-8 (b) A tax adopted for a district under this section for
4-9 financing the operation of the district may be decreased in
4-10 increments of one-eighth [one-fourth] of one percent by order of
4-11 the board of directors of the district.
4-12 (c) The board of directors or the governing body of the
4-13 governmental entity that proposed the creation of the crime control
4-14 and prevention district may call an election on the question of
4-15 decreasing the tax rate in increments of one-eighth of one percent
4-16 in the district if the district was created before January 1, 1996.
4-17 The board of directors or governing body may dedicate a portion of
4-18 the tax for the payment of bonds used in conjunction with the
4-19 renovation or extension of a county-owned or municipally owned
4-20 convention center facility, as defined in Section 351.001, that was
4-21 constructed before 1969 if the dedication is approved by a majority
4-22 of the qualified voters in an election held in the district on the
4-23 question of decreasing the tax rate. At the election, the ballot
4-24 shall be printed to provide for voting for or against the following
4-25 proposition: "The decrease of the _______ Crime Control and
4-26 Prevention District sales and use tax to _____ percent and
4-27 authorizing the use of ______ of one percent for the payment of
5-1 bonds issued for the renovation or extension of certain
5-2 county-owned or municipally owned convention center facilities as
5-3 that term is defined under Section 351.001, Tax Code, and
5-4 authorizing that the tax expire on payment of the bonds."
5-5 (d) The rate of a tax adopted for a district under this
5-6 section may be increased in increments of one-eighth [one-fourth]
5-7 of one percent, not to exceed a total tax rate of one-half percent
5-8 for financing the operation of the crime control and prevention
5-9 district, by order of the board of directors of the crime control
5-10 and prevention district if approved by a majority of the qualified
5-11 voters voting at an election called by the board and held in the
5-12 district on the question of increasing the tax rate. At the
5-13 election, the ballot shall be printed to provide for voting for or
5-14 against the following proposition: "The increase of the
5-15 ____________ [County] Crime Control and Prevention District sales
5-16 and use tax rate to ____________ percent." If there is an increase
5-17 or decrease under this subsection in the rate of a tax imposed
5-18 under this section, the new rate takes effect on the first day of
5-19 the next calendar quarter [year] after the expiration of one
5-20 calendar quarter after the comptroller receives notice of the
5-21 increase or decrease. However, if the comptroller notifies the
5-22 president of the board of directors of the district in writing
5-23 within 10 days after receipt of the notification that the
5-24 comptroller requires more time to implement reporting and
5-25 collection procedures, the comptroller may delay implementation of
5-26 the rate change for one whole calendar quarter. In that event, the
5-27 new rate takes effect on the first day of the next calendar quarter
6-1 following the elapsed quarter.
6-2 (e) [(c)] The comptroller shall remit to the county amounts
6-3 collected at the rate imposed under this section as part of the
6-4 regular allocation of county tax revenue collected by the
6-5 comptroller. The county shall, if the district is composed of an
6-6 area less than the entire county, remit that amount to the
6-7 district. Retailers may not be required to use the allocation and
6-8 reporting procedures in the collection of taxes under this section
6-9 different from the procedures that retailers use in the collection
6-10 of other sales and use taxes under this chapter. An item,
6-11 transaction, or service that is taxable in a county under a sales
6-12 or use tax authorized by another section of this chapter is taxable
6-13 under this section. An item, transaction, or service that is not
6-14 taxable in a county under a sales or use tax authorized by another
6-15 section of this chapter is not taxable under this section.
6-16 (f) [(d)] If, in a county where a crime control and
6-17 prevention district is composed of the whole county, a county sales
6-18 and use tax or a county sales and use tax rate increase for the
6-19 purpose of financing a crime control and prevention district is
6-20 approved, the county is responsible for distributing to the
6-21 district that portion of the county sales and use tax revenue
6-22 received from the comptroller that is to be used for the purposes
6-23 of financing the crime control and prevention district. Not later
6-24 than the 10th day after the date the county receives funds under
6-25 this section from the comptroller, the county shall make the
6-26 distribution in the proportion that the crime control and
6-27 prevention portion of the tax rate bears to the total sales and use
7-1 tax rate of the county. The amounts distributed to a crime control
7-2 and prevention district are not considered to be sales and use tax
7-3 revenue for the purpose of property tax reduction and computation
7-4 of the county tax rate under Section 26.041, Tax Code.
7-5 (g) [(e)] For purposes of the tax imposed under this
7-6 section, a reference in this chapter to the county as the territory
7-7 in which the tax or an incident of the tax applies means only the
7-8 territory located in the crime control and prevention district, if
7-9 that district is composed of an area less than an entire county.
7-10 (h) [(f)] The comptroller may adopt rules and the county
7-11 commissioners court may adopt orders to administer this section.
7-12 SECTION 7. The importance of this legislation and the
7-13 crowded condition of the calendars in both houses create an
7-14 emergency and an imperative public necessity that the
7-15 constitutional rule requiring bills to be read on three several
7-16 days in each house be suspended, and this rule is hereby suspended,
7-17 and that this Act take effect and be in force from and after its
7-18 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2335 was passed by the House on May
2, 1997, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 2335 on May 21, 1997, by the
following vote: Yeas 144, Nays 1, 1 present, not voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2335 was passed by the Senate, with
amendments, on May 17, 1997, by the following vote: Yeas 26, Nays
4.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor