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.