1-1     By:  Smith (Senate Sponsor - Harris)                  H.B. No. 2335

 1-2           (In the Senate - Received from the House May 5, 1997;

 1-3     May 6, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 13, 1997, reported adversely, with

 1-5     favorable Committee Substitute by the following vote:  Yeas 9, Nays

 1-6     0; May 13, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 2335                 By:  Lindsay

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to certain crime control and prevention districts.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 1.05A, Crime Control and Prevention

1-13     District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is

1-14     amended to read as follows:

1-15           Sec. 1.05A.  CREATION OF DISTRICT BY CERTAIN MUNICIPALITIES.

1-16     A municipality that is partially or wholly located in a county with

1-17     a population of more than 5,000 [1 million] may create a crime

1-18     control district in its jurisdiction in the same manner as a county

1-19     under this Act.  A crime control district created by a municipality

1-20     under this section has the same relationship with the municipality

1-21     as a crime control district created by a [the] county under this

1-22     Act has with the county.  A municipality creating a district under

1-23     this section shall pay the entire cost of creating the district but

1-24     may be reimbursed for its costs under Section 3.10(d) of this Act.

1-25           SECTION 2.  Section 3.03(b), Crime Control and Prevention

1-26     District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is

1-27     amended to read as follows:

1-28           (b)  The proposed rate for the district sales and use tax

1-29     imposed under Subchapter B, Chapter 323, Tax Code, may be only:

1-30                 (1)  one-eighth of one percent;

1-31                 (2)  one-fourth of one percent;

1-32                 (3)  three-eighths of one percent; or

1-33                 (4) [(2)]  one-half of one percent.

1-34           SECTION 3.  Section 4.01, Crime Control and Prevention

1-35     District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is

1-36     amended by adding Subsections (c) and (d) to read as follows:

1-37           (c)  The governing body of a municipality or county by

1-38     resolution may appoint the governing body's membership as the board

1-39     of directors of the district, if the appointment is approved by the

1-40     voters in a creation election or continuation referendum under this

1-41     Act.  A member of a governing body appointed under this section as

1-42     a member of the district's board of directors serves a term

1-43     concurrent with the member's term as a member of the governing

1-44     body.

1-45           (d)  In a district for which the governing body of the

1-46     municipality or county does not serve as the district's board of

1-47     directors, the governing body may create a board of directors for

1-48     which one director is appointed by each member of the governing

1-49     body to serve at the pleasure of that member for a term that is

1-50     concurrent with the term of the member of the governing body that

1-51     appointed the director.

1-52           SECTION 4.  Section 8.01, Crime Control and Prevention

1-53     District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is

1-54     amended by amending Subsections (b) and (c) and adding Subsection

1-55     (d) to read as follows:

1-56           (b)  The board shall order a continuation referendum if a

1-57     petition that requests continuation of the district is presented in

1-58     accordance with this article or if a majority of the commissioners

1-59     court of the county in which the district is located by resolution

1-60     requests continuation after notice and a public hearing on the

1-61     matter.  However, the board may not hold a continuation referendum

1-62     under this subsection earlier than five years after the date the

1-63     district was created or earlier than three years after the date of

1-64     the last preceding continuation or dissolution referendum.

 2-1           (c)  The board may hold a referendum on the question of

 2-2     whether to continue the district until all liabilities of the

 2-3     district and all liabilities associated with the district have been

 2-4     retired.  The board shall order a continuation referendum on the

 2-5     question if a petition that requests continuation of the district

 2-6     for those purposes is presented in accordance with this article or

 2-7     if a majority of the commissioners court of the county in which the

 2-8     district is located by resolution requests continuation of the

 2-9     district for those purposes after notice and a public hearing on

2-10     the matter. The board may not hold a continuation referendum under

2-11     this subsection earlier than one year after the date of the

2-12     creation of the district.

2-13           (d)  For a continuation referendum under Subsection (b) of

2-14     this section, the ballot shall be printed to permit voting for or

2-15     against the proposition: "Whether the ________ County Crime Control

2-16     and Prevention District should be continued and the crime control

2-17     and prevention district sales and use tax should be continued."

2-18     For a continuation referendum under Subsection (c) of this section,

2-19     the ballot shall be printed to permit voting for or against the

2-20     proposition: "Whether the ________ County Crime Control and

2-21     Prevention District should be continued and the crime control and

2-22     prevention district sales and use tax should be continued until all

2-23     liabilities of the district and all liabilities associated with the

2-24     district have been retired."

2-25           SECTION 5.  Section 10.01, Crime Control and Prevention

2-26     District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is

2-27     amended by amending Subsection (a) and adding Subsection (c) to

2-28     read as follows:

2-29           (a)  A district is dissolved five years after the date the

2-30     district began to levy taxes for district purposes [was created] if

2-31     the district has not held a continuation or dissolution referendum.

2-32           (c)  Subsection (b) of this section does not apply to a

2-33     district continued by a referendum held under Section 8.01(c) of

2-34     this Act.  A district continued under Section 8.01(c) of this Act

2-35     is dissolved on the date all liabilities of the district and all

2-36     liabilities associated with the district are retired.

2-37           SECTION 6.  The importance of this legislation and the

2-38     crowded condition of the calendars in both houses create an

2-39     emergency and an imperative public necessity that the

2-40     constitutional rule requiring bills to be read on three several

2-41     days in each house be suspended, and this rule is hereby suspended,

2-42     and that this Act take effect and be in force from and after its

2-43     passage, and it is so enacted.

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