Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Lewis of Tarrant                             H.B. No. 2659

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     to allow creation of a Fire Protection and Crime Prevention

 1-3     District in municipalities partially or wholly located in counties

 1-4     with a population between 1 million and 1.5 million.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Title 44, Revised Statutes, is amended by adding

 1-7     Article 2370c-5 to read as follows:

 1-8           Art. 2370c-5.  Fire Protection and Crime Prevention Districts

 1-9     in municipalities located in counties between one and 1.5 million

1-10     population.

1-11                       ARTICLE I.  GENERAL PROVISIONS

1-12           Sec. 1.01.  SHORT TITLE.  This Act may be cited as the Fire

1-13     Protection and Crime Prevention Act.

1-14           Sec. 1.02.  APPLICABILITY.  This Act applies only to

1-15     municipalities partially or wholly located in counties with a

1-16     population between 1 million and 1.5 million.

1-17           Sec. 1.03.  RELATIONSHIP WITH ARTICLE 2370C-4, REVISED

1-18     STATUTES.  A municipality to which this Act applies may create in

1-19     its jurisdiction a crime control district as authorized by Article

1-20     2370c-4 or a fire protection and crime prevention district as

1-21     provided in this Act, but not both.

1-22                       ARTICLE 2.  TEMPORARY DIRECTORS

1-23           Sec. 2.01.  APPOINTMENT OF TEMPORARY DIRECTORS.  (a)  The

1-24     governing body of a municipality which proposes the creation of a

 2-1     fire protection and crime prevention district shall appoint seven

 2-2     persons that reside in the municipality to serve as temporary

 2-3     directors of the proposed district.  The temporary directors must

 2-4     be appointed by the municipality's governing body no later than the

 2-5     60th day after the date the district is proposed.

 2-6           (b)  If the governing body of a municipality proposes the

 2-7     creation of a fire protection and crime prevention district in a

 2-8     municipality which previously has established a crime control and

 2-9     prevention district under Article 2370c-4, Revised Statutes, the

2-10     board of directors appointed to administer the crime control and

2-11     prevention district shall act as temporary directors of the

2-12     proposed fire protection and crime prevention district, and shall

2-13     fulfill all obligations required of temporary directors by this

2-14     Act.

2-15           Sec. 2.02.  BOARD ORGANIZATION; ELECTION OF TEMPORARY CHAIR.

2-16     Within 15 days after the date on which the temporary directors are

2-17     appointed by the municipality's governing body, the temporary board

2-18     shall organize and elect a chair from among its membership.

2-19           Sec. 2.03.  DESIGNATED ALTERNATE.  A temporary director who

2-20     is not the temporary chair may designate another person to serve in

2-21     the director's place.

2-22           Sec. 2.04.  VACANCY IN OFFICE.  A vacancy in the office of

2-23     temporary director shall be filled in the same manner that the

2-24     vacant position was originally filled.

2-25                      ARTICLE 3.  CREATION OF DISTRICTS

2-26           Sec. 3.01.  CREATION ELECTION.  A district proposed by the

2-27     municipality's governing body may be created and a tax may be

2-28     authorized only if the creation and the tax are approved by a

2-29     majority of the qualified voters of the municipality voting at an

2-30     election called and held for that purpose.

 3-1           Sec. 3.02.  ORDERING ELECTION.  After a majority of the

 3-2     temporary directors of a proposed district have approved a budget

 3-3     plan and a fire protection and crime prevention plan in accordance

 3-4     with Section 3.09 of this Act, a majority of the temporary

 3-5     directors may order that a creation election be held.

 3-6           Sec. 3.03.  ELECTION ORDER.  (a)  An order calling an

 3-7     election under Section 3.02 of this Act must state:

 3-8                 (1)  The nature of the election, including the

 3-9     proposition that is to appear on the ballot;

3-10                 (2)  The date of the election;

3-11                 (3)  The hours during which the polls will be open;

3-12                 (4)  The location of the polling places;

3-13                 (5)  In summary form, the approved budget plan and fire

3-14     protection and crime prevention plan of the proposed district; and

3-15                 (6)  The proposed rate of the sales and use tax for the

3-16     district.

3-17           (b)  The proposed rate for the district sales and use tax

3-18     imposed under Subchapter B, Chapter 323, Tax Code, may be only:

3-19                 (1)  One-fourth of one percent; or

3-20                 (2)  One-half of one percent.

3-21           (c)  A sales and use tax approved under this Act may be

3-22     charged in addition to any other sales and use tax authorized by

3-23     law and is included in computing a combined sales and use tax rate

3-24     for purposes of any limitation provided by law on the maximum

3-25     combined sales and use tax rate of political subdivisions.

3-26           Sec. 3.04.  NOTICE.  The temporary directors of a proposed

3-27     district shall give notice of a creation election by publishing a

3-28     substantial copy of the election order in a newspaper with general

3-29     circulation in the proposed district once a week for two

3-30     consecutive weeks.  The first publication must appear at least 35

 4-1     days before the date set for the election.

 4-2           Sec. 3.05.  ELECTION DATE.  (a)  A creation election shall be

 4-3     held not less than 35 days nor more than 60 days after the date on

 4-4     which the election is ordered.

 4-5           (b)  Subsection (a), Section 41.001, Election Code, does not

 4-6     apply to a creation election ordered under this Act.

 4-7           Sec. 3.06.  BALLOT PROPOSITION.  The ballot for a creation

 4-8     election shall be printed to permit voting for or against the

 4-9     proposition:  "the creation of the _________ Municipal fire

4-10     Protection and Crime Prevention District dedicated to fire

4-11     protection and crime reduction programs and the adoption of a

4-12     proposed local sales and use tax at a rate of _______ (the rate

4-13     specified in the election order)."

4-14           Sec. 3.07.  CANVASSING RETURNS.  (a)  Not earlier than the

4-15     second day or later than the 13th day after the date of a creation

4-16     election, the temporary board of a proposed district shall meet and

4-17     canvass the returns of the election.

4-18           (b)  If the temporary board finds that the election results

4-19     are favorable to the proposition to create the district, the

4-20     temporary board shall issue an order declaring the district

4-21     created.

4-22           (c)  If the temporary board finds that the election results

4-23     are not favorable to the proposition to create the district, the

4-24     temporary board may order another election on the matter not

4-25     earlier than one year after the date of the preceeding election.

4-26           Sec. 3.08.  DISSOLUTION OF TEMPORARY BOARD.  If a district

4-27     has not been created under this Act before the fifth anniversary of

4-28     the date a district is proposed by the municipality's governing

4-29     body, the temporary board is dissolved on that date and a district

4-30     may not be created under this Act.

 5-1           Sec. 3.09.  FIRE PROTECTION AND CRIME PREVENTION PLAN; BUDGET

 5-2     PLAN.  (a)  The temporary board of a proposed district shall

 5-3     formulate and approve a two-year fire protection and crime

 5-4     prevention plan, which must include:

 5-5                 (1)  A detailed list of the crime control and crime

 5-6     prevention strategies to be supported by the district;

 5-7                 (2)  A detailed list of the fire protection strategies

 5-8     to be supported by the district; and

 5-9                 (3)  The method of annually evaluating the

5-10     effectiveness and efficiency of individual fire protection and

5-11     crime prevention strategies.

5-12           (b)  The temporary board of a proposed district shall

5-13     formulate and approve a two-year budget plan, which must include:

5-14                 (1)  The amount of money budgeted by the district for

5-15     each fire protection and crime prevention strategy;

5-16                 (2)  The amount of money budgeted by the district and

5-17     the percentage of the total budget of the district for

5-18     administration, with individual amounts on how much of the

5-19     administration would be conducted by the district and how much

5-20     would be conducted by a private or public entities;

5-21                 (3)  The estimated amount of money available to the

5-22     district from all sources during the ensuing year;

5-23                 (4)  The amount of balances expected at the end of the

5-24     years for which the budget is prepared; and

5-25                 (5)  The estimated tax rate that will be required.

5-26           (c)  The fire protection and crime prevention plan and budget

5-27     plan must be adopted in the same manner as provided for adoption of

5-28     a proposed annual budget under Section 6.05 of this Act.

5-29           (d)  The temporary board shall coordinate its efforts with

5-30     local law enforcement officials, the local community supervision

 6-1     and corrections department, the local juvenile probation

 6-2     department, and the local fire department in developing its fire

 6-3     protection and crime prevention plan and its budget plan.

 6-4           Sec. 3.10.  FINANCING CREATION OF DISTRICT.  A municipality

 6-5     creating a fire protection and crime prevention district under this

 6-6     Act shall pay the entire cost of creating the district.  If a

 6-7     district is created, the district shall reimburse the municipality

 6-8     for actual expenses incurred in the creation of the district.

 6-9           Sec. 3.11.  DONATIONS, GIFTS AND ENDOWMENTS.  On behalf of a

6-10     district, the temporary board may accept donations, gifts and

6-11     endowments to be held in trust for any purpose and under any

6-12     direction, limitation, or provision prescribed in writing by the

6-13     donor that is consistent with this Act and the proper management of

6-14     the district.

6-15           Sec. 3.12.  ALTERNATE CREATION ELECTION.  (a)  If a crime

6-16     control and prevention district organized under Article 2370c-4,

6-17     Revised Statutes, previously has been created or proposed by the

6-18     municipality, a creation election for a fire protection and crime

6-19     prevention district under this Act must be held in conjunction with

6-20     a creation election, continuation referendum, or dissolution

6-21     referendum under Article 2370c-4, Revised Statutes.

6-22           (b)  In the combined election, the ballot proposition will be

6-23     worded in such a way as to allow voters three options:

6-24                 (1)  to create or continue the crime control and

6-25     prevention district, whichever is appropriate;

6-26                 (2)  to create a fire protection and crime prevention

6-27     district; or

6-28                 (3)  to reject both alternatives (1) and (2).

6-29           (c)  In a joint election held under this Section, the

6-30     temporary directors may propose that the district sales and use tax

 7-1     be at the same rate regardless of which type district the voters

 7-2     approve, or may specify a different rate dependent upon which type

 7-3     of district the voters approve.  If different rates for the

 7-4     district sales and use tax are proposed, both the election order

 7-5     and the ballot proposition shall clearly state the rate of sales

 7-6     and use tax to be imposed if a crime control and prevention

 7-7     district is created, and the different rate to be imposed if a fire

 7-8     protection and crime prevention district is created.

 7-9                     ARTICLE 4.  DISTRICT ADMINISTRATION

7-10           Sec. 4.01.  BOARD OF DIRECTORS.  (a)  A district is governed

7-11     by a board of seven directors appointed in the same manner as

7-12     provided for the selection of temporary directors under Section

7-13     2.01 of this Act.

7-14           (b)  Board members serve staggered two-year terms that expire

7-15     September 1.  The initial appointees under this section shall draw

7-16     lots to determine:

7-17                 (1)  the three directors to serve terms that expire on

7-18     September 1 of the first year following creation of the district;

7-19     and

7-20                 (2)  the four directors to serve terms that expire on

7-21     September 1 of the second year following creation of the district.

7-22           Sec. 4.02.  DESIGNATED ALTERNATE.  A director, other than the

7-23     president or vice-president, may designate a person to serve in the

7-24     director's absence.

7-25           Sec. 4.03.  BOND.  (a)  Before assuming the duties of the

7-26     office, each director or officer, including a person designated

7-27     under Section 4.02 of this Act, must execute a bond for $5,000

7-28     payable to the district, conditioned on the faithful performance of

7-29     the person's duties as director or officer.

7-30           (b)  The bond shall be kept in the permanent records of the

 8-1     district.

 8-2           (c)  A board may pay for the bonds of the directors or

 8-3     officers with district funds.

 8-4           Sec. 4.04.  BOARD VACANCY.  A vacancy in the office of

 8-5     director shall be filled for the unexpired terms in the same manner

 8-6     that the vacant position was originally filed.

 8-7           Sec. 4.05.  OFFICERS.  A board shall elect from among its

 8-8     members a president and vice-president.  The board shall also

 8-9     appoint a secretary.  The secretary need not be a director.  The

8-10     person who performs the duties of city auditor shall serve as

8-11     treasurer for the district.

8-12           Sec. 4.06.  OFFICERS' TERMS; VACANCY.  (a)  Each officer of a

8-13     board serves for a term of one year.

8-14           (b)  A vacancy in a board office shall be filled for the

8-15     unexpired term by the board.

8-16           Sec. 4.07.  COMPENSATION.  Directors and officers serve

8-17     without compensation, but all directors and officers may be

8-18     reimbursed for actual expenses incurred in the performance of

8-19     official duties.  Those expenses must be reported in the district's

8-20     minute book or other district records and must be approved by the

8-21     board.

8-22           Sec. 4.08.  VOTING REQUIREMENT.  A concurrence of a majority

8-23     of the members of a board is necessary in matters relating to the

8-24     business of a district.  A two-thirds majority vote of the board is

8-25     required to reject any application for funding available under this

8-26     Act.

8-27           Sec. 4.09.  ADMINISTRATION.  A board may contract with a

8-28     public agency or private vendor to assist in the administration or

8-29     management of a district or to assist in the review of applications

8-30     for funding available under this Act.

 9-1                        ARTICLE 5.  POWERS AND DUTIES

 9-2           Sec. 5.01.  LIMITATIONS ON EXPENDITURES.  A district may

 9-3     finance all the costs of a fire protection and crime prevention

 9-4     program, including the costs for personnel, administration,

 9-5     expansion, enhancement, and capital expenditures.  A program may

 9-6     include all programs and functions listed in Section 5.01(a) of

 9-7     Article 2370c-4, and in addition, may include the following fire

 9-8     protection and prevention related programs and equipment:

 9-9                 (1)  Fire apparatus and equipment;

9-10                 (2)  Bomb disposal unit and equipment;

9-11                 (3)  Compensation of fire protection and prevention

9-12     personnel for specialized training, including but not limited to

9-13     arson, bomb disposal, hazardous materials, technical rescue, and

9-14     paramedic certification;

9-15                 (4)  Funding for fire fighter safety equipment,

9-16     including but not limited to turn out gear, self-contained

9-17     breathing apparatus, and protective uniforms;

9-18                 (5)  Fire safety education programs for the public;

9-19                 (6)  Additional compensation for municipal fire

9-20     personnel, including overtime compensation for unforeseen staffing

9-21     needs;

9-22                 (7)  Funding for the construction and maintenance of

9-23     additional fire stations, training facilities, and the equipment

9-24     needed for those facilities; and

9-25                 (8)  Fire communications units and equipment.

9-26           Sec. 5.02.  DISTRICT RESPONSIBILITIES.  (a)  The district

9-27     shall coordinate its efforts with the local community justice

9-28     council in developing its fire protection and crime prevention

9-29     program.

9-30           (b)  The district shall fund an annual evaluation program to

 10-1    study the impact, efficiency, and effectiveness of new or expanded

 10-2    fire protection and crime prevention programs.

 10-3          (c)  The board of directors of the district may seek the

 10-4    assistance of the Office of State-Federal Relations in identifying

 10-5    and applying for federal grants for fire protection and criminal

 10-6    justice programs.  The board of directors shall notify the

 10-7    appropriate council of governments of any intent to submit

 10-8    applications for federal funds and for inclusion in the regional

 10-9    criminal justice planning process.

10-10          (d)  The district may apply for and receive grants for

10-11    criminal and juvenile justice programs from the criminal justice

10-12    division in the Governor's office.

10-13          Sec. 5.03.  MANAGEMENT, CONTROL AND ADMINISTRATION.  The

10-14    board of directors shall manage, control and administer the

10-15    district funds, except as provided by Section 6.06 of this Act.

10-16          Sec. 5.04.  OPEN MEETINGS; ADMINISTRATIVE PROCEDURE.  A board

10-17    is subject to the Open Meetings Law, Chapter 551, Government Code,

10-18    and the Administrative Procedure Act, Chapter 2001, Government

10-19    Code.

10-20          Sec. 5.05.  LIABILITY.  A member of a board is not liable for

10-21    civil damages or criminal prosecution for any act performed in good

10-22    faith in the execution of duties as a board member or for an action

10-23    taken by the board.

10-24          Sec. 5.06.  DISTRICT RULES.  A board may adopt rules

10-25    governing district funded programs and the duties, functions, and

10-26    responsibilities of district staff and employees.

10-27          Sec. 5.07.  METHODS AND PROCEDURES.  (a)  A board may

10-28    prescribe the method of making purchases and expenditures by and

10-29    for the district; however, the board may enter purchasing contracts

10-30    that involve spending more than $15,000 only after competitive

 11-1    bidding as provided by Subchapter C, Chapter 262, Local Government

 11-2    Code, to the extent those provisions can be made applicable to the

 11-3    board.

 11-4          (b)  The board may prescribe accounting and control

 11-5    procedures for the district.

 11-6          (c)  If the municipality in which the district is located has

 11-7    a purchasing agent authorized by law, that agent shall serve as

 11-8    purchasing agent for the district.

 11-9          Sec. 5.08.  DISTRICT PROPERTY, FACILITIES AND EQUIPMENT.  The

11-10    board may acquire or lease property, facilities, or equipment for

11-11    the sole purpose of administering the district.

11-12          Sec. 5.09.  REIMBURSEMENT FOR SERVICES.  (a)  A municipality

11-13    located entirely outside the boundaries of the district shall, on

11-14    request, reimburse a district for the district's cost of including

11-15    in a district program a resident of that municipality.

11-16          (b)  The board may require reimbursement from the state or

11-17    county for the district's cost of including in a district program

11-18    or facility a person who is a resident of the state or county but

11-19    who is not a resident of the district.

11-20          (c)  On behalf of the district, the board may contract with a

11-21    municipal or county government or with the state or federal

11-22    government for the municipality, county, state, or federal

11-23    government to reimburse the district for including a person in a

11-24    district program.

11-25          Sec. 5.10.  SERVICE CONTRACTS.  When acting on behalf of a

11-26    district, the board may contract with a municipality, county,

11-27    special district, or other political subdivision of the state, with

11-28    a state or federal agency, with individuals, and with the private

11-29    sector to furnish the staff, facilities, equipment, programs, and

11-30    services the board considers necessary for the effective operation

 12-1    of the district.

 12-2          Sec. 5.11.  DONATIONS, GIFTS AND ENDOWMENTS.  On behalf of a

 12-3    district, the board may accept donations, gifts, and endowments to

 12-4    be held in trust for any purpose and under any direction,

 12-5    limitation, or provision prescribed in writing by the donor that is

 12-6    consistent with this Act and the proper management of the district.

 12-7          Sec. 5.12.  AUTHORITY TO SUE AND BE SUED.  A board may sue

 12-8    and be sued in the name of a district.

 12-9                       ARTICLE 6.  DISTRICT FINANCES

12-10          Sec. 6.01.  FISCAL YEAR.  (a)  A district is operated on the

12-11    basis of a fiscal year established by the board.

12-12          (b)  A fiscal year may not be changed more than once in a

12-13    24-month period.

12-14          Sec. 6.02.  ANNUAL AUDIT.  Annually, a board shall have an

12-15    audit made of the financial condition of the district by an

12-16    independent auditor.

12-17          Sec. 6.03.  DISTRICT AUDIT AND RECORDS.  An annual audit and

12-18    other district records shall be open to inspection during regular

12-19    business hours at the principal office of the district.

12-20          Sec. 6.04.  ANNUAL BUDGET.  (a)  The board shall prepare a

12-21    proposed annual budget which considers all applications for program

12-22    funding received by the board.

12-23          (b)  The proposed budget must contain a complete financial

12-24    statement, including a statement of:

12-25                (1)  the outstanding obligations of the district;

12-26                (2)  the amount of cash on hand to the credit of each

12-27    fund of the district;

12-28                (3)  the amount of money received by the district from

12-29    all sources during the previous year;

12-30                (4)  the estimated amount of money available to the

 13-1    district from all sources during the current fiscal year;

 13-2                (5)  the amount of money needed to fund programs

 13-3    approved for funding by the board;

 13-4                (6)  the amount of money requested for programs that

 13-5    were not approved for funding by the board;

 13-6                (7)  the tax rate for the next fiscal year;

 13-7                (8)  the amount of the balances expected at the end of

 13-8    the year in which the budget is being prepared; and

 13-9                (9)  the estimated amount of revenues and balances

13-10    available to cover the proposed budget.

13-11          Sec. 6.05.  NOTICE; BOARD MEETING; ADOPTION OF BUDGET.  (a)

13-12    Not later than the 100th day before the beginning of each fiscal

13-13    year, a board shall hold a public hearing on the proposed annual

13-14    budget.

13-15          (b)  The board shall publish notice of the hearing in a

13-16    newspaper with general circulation in the district not later than

13-17    the 10th day before the date of the hearing.

13-18          (c)  Any resident of the district is entitled to be present

13-19    and participate at the hearing.

13-20          (d)  Not later than the 80th day before the beginning of each

13-21    fiscal year, the board shall adopt a budget.  The board may make

13-22    any changes in the proposed budget that in its judgment the

13-23    interests of the taxpayers demand.

13-24          (e)  The board shall submit the budget to the governing body

13-25    of the municipality in which the district is located not later than

13-26    the 10th day after the date the budget was adopted.

13-27          (f)  The board by rule may develop and adopt procedures for

13-28    adopting a budget different from the procedures outlined in this

13-29    Act, but the board must hold public hearings relating to the

13-30    budget.

 14-1          Sec. 6.06.  NOTICE; MUNICIPAL HEARING; APPROVAL OR REJECTION

 14-2    OF BUDGET.  (a)  Not later that the 45th day before the beginning

 14-3    of each fiscal year, the governing body of the municipality in

 14-4    which a district is located shall hold a public hearing on the

 14-5    proposed annual budget.

 14-6          (b)  The governing body of the municipality shall publish

 14-7    notice of the hearing in a newspaper with general circulation in

 14-8    the district not later than the 10th day before the date of the

 14-9    hearing.

14-10          (c)  Any resident of the district is entitled to be present

14-11    and to participate at the hearing.

14-12          (d)  The governing body of the municipality shall approve or

14-13    reject the budget submitted by the board not later than the 30th

14-14    day before the beginning of the fiscal year.  The governing body of

14-15    the municipality may not amend the budget.

14-16          (e)  If the governing body of the municipality rejects the

14-17    budget submitted by the board, the municipality's governing body

14-18    and the board shall meet and together amend and approve the budget

14-19    before the beginning of the fiscal year.

14-20          (f)  The budget may be amended after the beginning of the

14-21    fiscal year on approval by the board and the governing body of the

14-22    municipality.

14-23          Sec. 6.07.  LIMITATION ON EXPENDITURES.  Money may be spent

14-24    only for an expense included in an annual budget or an amendment to

14-25    it.

14-26          Sec. 6.08.  SWORN STATEMENT.  Not later than the 60th day

14-27    after the last day of each fiscal year, an administrator shall

14-28    prepare for the board a sworn statement of the amount of money that

14-29    belongs to the district and an account of the disbursements of that

14-30    money.

 15-1          Sec. 6.09.  SPENDING AND INVESTMENT LIMITATIONS.  (a)  A

 15-2    district may not incur a debt payable from revenues of the district

 15-3    other than the revenues on hand or to be on hand in the current or

 15-4    immediately following fiscal year of the district.

 15-5          (b)  The board may not invest district funds in funds or

 15-6    securities other than those specified by Article 836 or 837,

 15-7    Revised Statutes, or by the Public Funds Investment Act of 1987

 15-8    (Article 842-a, Vernon's Texas Civil Statutes).

 15-9          Sec. 6.10.  DEPOSIT OF FUNDS.  (a)  A board shall deposit

15-10    district funds in a special account in the treasury of the

15-11    municipality in which the district is located.

15-12          (b)  District funds, other than those invested as provided by

15-13    Section 6.09(b) of this Act, shall be deposited as received in the

15-14    municipal treasury and must remain on deposit.

15-15          (c)  A board shall reimburse the municipality for any costs

15-16    the municipality incurs in performing the duties imposed under this

15-17    Section, other than personnel.

15-18          Sec. 6.11.  APPLICATIONS FOR PROGRAM FUNDING.  (a)  The chief

15-19    administrative officer or the head of a department of the

15-20    municipality in which a district is created may, with the consent

15-21    of the municipality's governing body, apply to the board for

15-22    funding of a program as described by Section 5.01 of this Act.

15-23          (b)  Applications under this Section must be submitted not

15-24    later than the 140th day before the beginning of the fiscal year,

15-25    unless an exception has been adopted by rule.

15-26          (c)  The board by rule may develop and adopt application

15-27    procedures.

15-28                             ARTICLE 7.  BONDS

15-29          Sec. 7.01 A board may not issue or sell general obligation

15-30    bonds, revenue bonds, or refunding bonds.  The board and the

 16-1    district may issue or sell bonds conditioned on the faithful

 16-2    performance of a person's duties as director as provided by Section

 16-3    4.03 of this Act.

 16-4                     ARTICLE 8.  DISTRICT CONTINUATION

 16-5          Sec. 8.01.  CONTINUATION REFERENDUM.  (a)  A board may hold a

 16-6    referendum on the question of whether to continue the district.

 16-7          (b)  The board shall order a continuation referendum if a

 16-8    petition that requests continuation of the district is presented in

 16-9    accordance with this Act or if a majority of the governing body of

16-10    the municipality in which the district is located by resolution

16-11    requests continuation after notice and a public hearing on the

16-12    matter.  However, the board may not hold a continuation referendum

16-13    earlier than five years after the date the district was created or

16-14    earlier than three years after the date of the last preceding

16-15    continuation or dissolution referendum.

16-16          (c)  For a continuation referendum, the ballot shall be

16-17    printed to permit voting for or against the proposition:  "Whether

16-18    the ________ Municipal Fire Protection and Crime Prevention

16-19    District should be continued and the fire protection and crime

16-20    prevention district sales and use tax should be continued."

16-21          Sec. 8.02.  METHODS FOR INITIATING ELECTION.  A board may

16-22    order a continuation referendum on its own motion by a majority

16-23    vote of its members.  The board shall order a continuation

16-24    referendum:

16-25                (1)  on the presentation of a petition meeting the

16-26    requirements of Sections 8.03 through 8.08 of this Act; or

16-27                (2)  on the request of the governing body of the

16-28    municipality under Subsection (b) of Section 8.01 of this Act.

16-29          Sec. 8.03.  APPLICATION FOR PETITION; ISSUANCE.  If

16-30    petitioned to do so by written application of 10 or more registered

 17-1    voters of a district, the city clerk of the municipality in which

 17-2    the district is located shall issue to the applicants a petition to

 17-3    be circulated among registered voters for their signatures.

 17-4          Sec. 8.04.  CONTENTS OF APPLICATION.  To be valid, an

 17-5    application for a petition must contain:

 17-6                (1)  a heading in the following words:  "Application

 17-7    for a Petition for a Local Option Referendum to Continue the Fire

 17-8    Protection and Crime Prevention District and to Continue the Fire

 17-9    Protection and Crime Prevention District Sales and Use Tax";

17-10                (2)  a statement of the issue to be voted on in the

17-11    following words:  "Whether the ________ Municipal Fire Protection

17-12    and Crime Prevention District should be continued and the fire

17-13    protection and crime prevention district sales and use tax should

17-14    be continued";

17-15                (3)  a statement immediately above the signatures of

17-16    the applicants, reading as follows:  "It is the purpose and intent

17-17    of the applicants whose signatures appear below that the fire

17-18    protection and crime prevention district be continued and the fire

17-19    protection and crime prevention district sales and use tax in ____

17-20    be continued"; and

17-21                (4)  the printed name, signature, residence address,

17-22    and voter registration certificate number of each applicant.

17-23          Sec. 8.05.  CONTENTS OF PETITION.  To be valid, a petition

17-24    must contain:

17-25                (1)  a heading in the following words:  "Petition for a

17-26    Local Option Referendum to Continue the _____ Municipal Fire

17-27    Protection and Crime Prevention District and to Continue the Fire

17-28    Protection and Crime Prevention District Sales and Use Tax";

17-29                (2)  a statement of the issue to be voted on in the

17-30    same words used in the application;

 18-1                (3)  a statement immediately above the signatures of

 18-2    the petitioners, reading as follows:  "It is the purpose and intent

 18-3    of the petitioners whose signatures appear below that the fire

 18-4    protection and crime prevention district be continued and the fire

 18-5    protection and crime prevention district sales and use tax in

 18-6    ______ be continued";

 18-7                (4)  lines and spaces for the names, signatures,

 18-8    residence addresses, and voter registration certificate numbers of

 18-9    the petitioners; and

18-10                (5)  the date of issuance, the serial number, and the

18-11    seal of the city clerk on each page.

18-12          Sec. 8.06.  COPIES.  A city clerk shall keep an application

18-13    and a copy of the petition in the files of the city clerk's office.

18-14    The clerk shall issue to the applicants as many copies as they

18-15    request.

18-16          Sec. 8.07.  FILING OF PETITION; NUMBER OF SIGNATURES.  To

18-17    form the basis for the ordering of a referendum, the petition must

18-18    be filed with the city clerk not later than the 60th day after the

18-19    date of its issuance, and it must contain a number of signatures of

18-20    registered voters of the municipality equal to five percent of the

18-21    number of votes cast in the municipality for all candidates for

18-22    governor in the most recent gubernatorial general election.

18-23          Sec. 8.08.  REVIEW BY CITY CLERK.  (a)  A city clerk shall,

18-24    on request of any person, check each name on a petition to

18-25    determine whether the signer is a registered voter of the district.

18-26     A person requesting verification by the city clerk shall pay the

18-27    city clerk a sum equal to 20 cents per name before commencement of

18-28    the verification.

18-29          (b)  The city clerk may not count a signature if there is

18-30    reason to believe that:

 19-1                (1)  it is not the actual signature of the purported

 19-2    signer;

 19-3                (2)  the voter registration certificate number is not

 19-4    correct;

 19-5                (3)  it is a duplication either of a name or of

 19-6    handwriting used in any other signature on the petition;

 19-7                (4)  the residence address of the signer is not

 19-8    correct; or

 19-9                (5)  the name of the voter is not signed exactly as it

19-10    appears on the official copy of the current list of registered

19-11    voters for the voting year in which the petition is issued.

19-12          Sec. 8.09.  CERTIFICATION.  Not later than the 40th day after

19-13    the date a petition is filed, excluding Saturdays, Sundays, and

19-14    legal holidays, a city clerk shall certify to the board the number

19-15    of registered voters signing the petition.

19-16          Sec. 8.10.  ORDER OF ELECTION.  (a)  A board shall record on

19-17    its minutes the date the petition if filed and the date it is

19-18    certified by the city clerk.

19-19          (b)  If the petition contains the required number of

19-20    signatures and is in proper order, the board shall, at its next

19-21    regular session after the certification by the city clerk, order a

19-22    referendum to be held at the regular polling place in each

19-23    municipal election precinct in the city on the next uniform

19-24    election date authorized by Subsection (a), Section 41.001,

19-25    Election Code, that occurs at least 20 days after the date of the

19-26    order.  The board shall state in the order the proposition to be

19-27    voted on in the referendum.  The order is prima facie evidence of

19-28    compliance with all provisions necessary to give it validity.

19-29          Sec. 8.11.  APPLICATION OF ELECTION CODE.  A continuation

19-30    referendum shall be held and the returns shall be prepared and

 20-1    canvassed in conformity with the Election Code.

 20-2          Sec. 8.12.  RESULTS OF REFERENDUM.  (a)  If a majority of the

 20-3    votes cast in a referendum under this section are not for the

 20-4    continuation of a district:

 20-5                (1)  the board shall certify that fact to the secretary

 20-6    of state not later than the 10th day after the date of the canvass

 20-7    of the returns; and

 20-8                (2)  the district is dissolved and ceases to operate

 20-9    except as provided by Subsection (b) of this section.

20-10          (b)  A district that is dissolved and that owns property or

20-11    has outstanding short-term or long-term liabilities may continue to

20-12    operate on a temporary basis as provided by Section 10.02 of this

20-13    Act.

20-14          (c)  If a majority of the votes cast in the referendum under

20-15    this section are for the continuation of the district, another

20-16    continuation referendum may not be held except as authorized by

20-17    Section 8.01 of this Act.

20-18          Sec. 8.13.  CONTEST OF ELECTION.  Not later than the 30th day

20-19    after the date of the result of a continuation referendum is

20-20    declared, any qualified voter of the district may contest the

20-21    election by filing a petition in a district court located in the

20-22    district.

20-23                     ARTICLE 9.  DISTRICT DISSOLUTION

20-24          Sec. 9.01.  DISSOLUTION REFERENDUM.  (a)  A board may hold a

20-25    referendum on the question of whether to dissolve the district.

20-26          (b)  The board shall order a dissolution referendum if a

20-27    petition that requests dissolution of the district is presented in

20-28    accordance with this article or if a majority of the governing body

20-29    of the municipality in which the district is located by resolution

20-30    requests dissolution after notice and a public hearing on the

 21-1    matter.  However, the board may not hold a dissolution referendum

 21-2    earlier than five years after the date the district was created or

 21-3    earlier than three years after the date of the last preceding

 21-4    continuation or dissolution referendum.

 21-5          (c)  For a dissolution referendum, the ballot shall be

 21-6    printed to permit voting for or against the proposition:  "Whether

 21-7    the ______ Municipal Fire Protection and Crime Prevention District

 21-8    should be dissolved and the fire protection and crime prevention

 21-9    district sales and use tax should be abolished."

21-10          Sec. 9.02.  METHODS FOR INITIATING ELECTION.  A board may

21-11    order a dissolution referendum on its own motion by a majority vote

21-12    of its members.  The board shall order a dissolution referendum:

21-13                (1)  on the presentation of a petition meeting the

21-14    requirements of Sections 9.03 through 9.08 of this Act; or

21-15                (2)  on the request of the municipality's governing

21-16    body under Subsection (b) of Section 9.01 of this Act.

21-17          Sec. 9.03.  APPLICATION FOR PETITION; ISSUANCE.  If

21-18    petitioned to do so by written application of 10 or more registered

21-19    voters of a district, the city clerk of the city in which the

21-20    district is located shall issue to the applicants a petition to be

21-21    circulated among registered voters for their signatures.

21-22          Sec. 9.04.  CONTENTS OF APPLICATION.  To be valid, an

21-23    application for a petition must contain:

21-24                (1)  a heading in the following words:  "Application

21-25    for a Petition for a Local Option Referendum to Dissolve the

21-26    Municipal Fire Protection and Crime Prevention District and to

21-27    Abolish the Municipal Fire Protection and Crime Prevention District

21-28    Sales and Use Tax";

21-29                (2)  a statement of the issue to be voted on in the

21-30    following words:  "Whether the ______ Municipal Fire Protection and

 22-1    Crime Prevention District should be dissolved and the municipal

 22-2    fire protection and crime prevention district sales and use tax

 22-3    should be abolished";

 22-4                (3)  a statement immediately above the signatures of

 22-5    the applicants, reading as follows:  "It is the purpose and intent

 22-6    of the applicants whose signatures appear below that the municipal

 22-7    fire protection and crime prevention district be dissolved and the

 22-8    municipal fire protection and crime prevention district sales and

 22-9    use tax in ______ be abolished"; and

22-10                (4)  the printed name, signature, residence address,

22-11    and voter registration certificate number of each applicant.

22-12          Sec. 9.05.  CONTENTS OF PETITION.  To be valid, a petition

22-13    must contain:

22-14                (1)  a heading in the following words:  "Petition for a

22-15    Local Option Referendum to Dissolve the ______ Municipal Fire

22-16    Protection and Crime Prevention District and to Abolish the

22-17    Municipal Fire Protection and Crime Prevention District Sales and

22-18    Use Tax";

22-19                (2)  a statement of the issue to be voted on in the

22-20    same words used in the application;

22-21                (3)  a statement immediately above the signatures of

22-22    the petitioners, reading as follows:  "It is the purpose and intent

22-23    of the petitioners whose signatures appear below that the municipal

22-24    fire protection and crime prevention district be dissolved and the

22-25    municipal fire protection and crime prevention district sales and

22-26    use tax in ______ be abolished";

22-27                (4)  lines and spaces for the names, signatures,

22-28    residence addresses, and voter registration certificate numbers of

22-29    the petitioners; and

22-30                (5)  the date of issuance, the serial number, and the

 23-1    seal of the city clerk on each page.

 23-2          Sec. 9.06.  COPIES.  A city clerk shall keep an application

 23-3    and a copy of the petition in the files of the city clerk's office.

 23-4    The clerk shall issue to the applicants as many copies as they

 23-5    request.

 23-6          Sec. 9.07.  FILING OF PETITIONS; NUMBER OF SIGNATURES.  To

 23-7    form the basis for the ordering of a referendum, the petition must

 23-8    be filed with the city clerk not later than the 60th day after the

 23-9    date of its issuance, and it must contain a number of signatures of

23-10    registered voters of the municipality equal to five percent of the

23-11    number of votes cast in the municipality for all candidates for

23-12    governor in the most recent gubernatorial general election.

23-13          Sec. 9.08.  REVIEW BY CITY CLERK.  (a)  A city clerk shall,

23-14    on request of any person, check each name on a petition to

23-15    determine whether the signer is a registered voter of the district.

23-16    A person requesting verification by the city clerk shall pay the

23-17    city clerk a sum equal to 20 cents per name before commencement of

23-18    the verification.

23-19          (b)  The city clerk may not count a signature if there is

23-20    reason to believe that:

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

23-22    signer;

23-23                (2)  the voter registration certificate number is not

23-24    correct;

23-25                (3)  it is a duplication either of a name or

23-26    handwriting used in any other signature on the petition;

23-27                (4)  the residence address of the signer is not

23-28    correct; or

23-29                (5)  the name of the voter is not signed exactly as it

23-30    appears on the official copy of the current list of registered

 24-1    voters for the voting year in which the petition is used.

 24-2          Sec. 9.09.  CERTIFICATION.  Not later than the 40th day after

 24-3    the date a petition is filed, excluding Saturdays, Sundays, and

 24-4    legal holidays, a city clerk shall certify to the board the number

 24-5    of registered voters signing the petition.

 24-6          Sec. 9.10.  ORDER OF ELECTION.  (a)  A board shall record on

 24-7    its minutes the date the petition is filed and the date it is

 24-8    certified by the city clerk.

 24-9          (b)  If the petition contains the required number of

24-10    signatures and is in proper order, the board shall, at its next

24-11    regular session after the certification by the city clerk, order a

24-12    referendum to be held at the regular polling place in each

24-13    municipal election precinct in the city on the next uniform

24-14    election date authorized by Subsection (a), Section 41.001,

24-15    Election code, that occurs at least 20 days after the date of the

24-16    order.  The board shall state in the order the proposition to be

24-17    voted on in the referendum.  The order is prima facie evidence of

24-18    compliance with all provisions necessary to give it validity.

24-19          Sec. 9.11.  APPLICATION OF ELECTION CODE.  A dissolution

24-20    referendum shall be held and the returns shall be prepared and

24-21    canvassed in conformity with the Election Code.

24-22          Sec. 9.12.  RESULTS OF REFERENDUM.  (a)  If a majority of the

24-23    votes cast in a referendum under this section are for the

24-24    dissolution of a district:

24-25                (1)  the board shall certify that fact to the secretary

24-26    of state not later than the 10th day after the date of the canvass

24-27    of the returns; and

24-28                (2)  the district is dissolved and ceases to operate

24-29    except as provided by Subsection (b) of this section.

24-30          (b)  A district that is dissolved and that has outstanding

 25-1    short-term or long-term liabilities may continue to operate on a

 25-2    temporary basis as provided by Section 10.02 of this Act.

 25-3          (c)  If less than a majority of the votes cast in the

 25-4    referendum under this section are for the dissolution of the

 25-5    district, another dissolution referendum may not be held except as

 25-6    authorized by Section 9.01 of this Act.

 25-7          Sec. 9.13.  CONTEST OF ELECTION.  Not later than the 30th day

 25-8    after the date the result of a dissolution referendum is declared,

 25-9    any qualified voter of the district may contest the election by

25-10    filing a petition in a district court located in the district.

25-11                         ARTICLE 10.  DISSOLUTION

25-12          Sec. 10.01.  SUNSET PROVISION.  (a)  A district is dissolved

25-13    five years after the date the district was created if the district

25-14    has not held a continuation or dissolution referendum.

25-15          (b)  A district is dissolved five years after the date of the

25-16    most recent continuation or dissolution referendum.

25-17          Sec. 10.02.  DISSOLUTION OF DISTRICT.  (a)  On the date that

25-18    the district is dissolved, the district shall, as prescribed by

25-19    Subsection (h) of this section, convey or transfer to the

25-20    municipality in which the district is located the following:

25-21                (1)  title to land, buildings, real and tangible

25-22    improvements, and equipment owned by the district;

25-23                (2)  operating funds and reserves for operating

25-24    expenses and funds that have been budgeted by the district for the

25-25    remainder of the fiscal year in which the district is dissolved to

25-26    support crime control activities and fire protection programs for

25-27    residents of the municipality;

25-28                (3)  taxes levied by the district during the current

25-29    year for fire protection and prevention and crime control purposes;

25-30                (4)  funds established for payment of indebtedness

 26-1    assumed by the district; and

 26-2                (5)  any accumulated employee retirement funds.

 26-3          (b)  After the date the district is dissolved, the district

 26-4    may not levy taxes for district purposes or for providing crime

 26-5    control activities and fire protection and prevention programs for

 26-6    the residents of the district.

 26-7          (c)  If on the date that the district is dissolved the

 26-8    district has outstanding short-term or long-term liability, the

 26-9    board shall, not later than the 30th day after the dissolution,

26-10    adopt a resolution certifying each outstanding short-term and

26-11    long-term liability.  The municipality in which the district is

26-12    located shall assume the outstanding short-term and long-term

26-13    liabilities.  The municipality shall collect the sales and use tax

26-14    authorized by Section 323.105, Tax Code, for the remainder of the

26-15    calendar year and may by resolution of the municipality's governing

26-16    body continue to collect the tax for an additional calendar year if

26-17    the revenue from the tax is needed to retire liabilities of the

26-18    district that were assumed by the municipality.  The municipality's

26-19    governing body shall notify the comptroller of this continuation

26-20    not later than the 60th day before the date on which the tax would

26-21    otherwise expire.  Any tax collected after the liabilities have

26-22    been retired shall be transferred or conveyed as prescribed by

26-23    Subsection (a) of this section.

26-24          (d)  The district and the board may continue to operate for a

26-25    period not to exceed two months after carrying out the

26-26    responsibilities required by Subsections (a) and (c) of this

26-27    Section.  The board and the district are continued in effect for

26-28    the purpose of satisfying these responsibilities.

26-29          (e)  If the board and the district are continued in effect

26-30    under Subsection (d) of this section, the board and district are

 27-1    dissolved entirely on the first day of the month following the

 27-2    month in which the board issues an order certifying to the

 27-3    secretary of state that no responsibilities of Subsections (a) and

 27-4    (c) of this section are left unsatisfied.

 27-5          (f)  A district or board that continues to operate under

 27-6    Subsection (d) of this section may not incur any new liabilities

 27-7    without the approval of the governing body of the municipality in

 27-8    which the district is located.  Not later than the 60th day after

 27-9    the date of the dissolution referendum, the municipality's

27-10    governing body shall review the outstanding liabilities of the

27-11    district and set a specific date by which the municipality must

27-12    retire the district's outstanding liabilities.

27-13          (g)  On the date that the district is dissolved,

27-14    district-funded programs, including additional courts, shall

27-15    immediately terminate and district-funded personnel, except

27-16    personnel required to retire the responsibilities of the district,

27-17    are terminated.

27-18                       ARTICLE 11.  STATE LIABILITY

27-19          Sec. 11.01.  The state is not obligated for the support,

27-20    maintenance, or dissolution of a fire protection and crime

27-21    prevention district created under this Act.

27-22          SECTION 2.  This act takes effect June 3, 1997.

27-23          SECTION 3.  The importance of this legislation and the

27-24    crowded condition of the calendars in both houses create an

27-25    emergency and an imperative public necessity that the

27-26    constitutional rule requiring bills to be read on three several

27-27    days in each house be suspended, and this rule is hereby suspended,

27-28    and that this Act take effect and be in force according to its

27-29    terms, and it is so enacted.