By Keel H.B. No. 3237
75R8353 CLG-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of library districts; authorizing a tax
1-4 and providing a penalty.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle B, Title 10, Local Government Code, is
1-7 amended by adding Chapter 326 to read as follows:
1-8 CHAPTER 326. LIBRARY DISTRICTS
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 326.001. FINDINGS. The legislature finds that:
1-11 (1) children and other residents of many rural and
1-12 suburban areas of the state do not have convenient access to a
1-13 public library; and
1-14 (2) the creation of library districts in underserved
1-15 areas would make valuable information resources more readily
1-16 available to public school students and other residents of the
1-17 state.
1-18 Sec. 326.002. PURPOSE. The purpose of a library district is
1-19 to establish, equip, and maintain one or more public libraries for
1-20 the dissemination of general information relating to the arts,
1-21 sciences, and literature.
1-22 Sec. 326.003. DEFINITIONS. In this chapter:
1-23 (1) "Board" means the board of trustees of a district.
1-24 (2) "District" means a library district created under
2-1 this chapter.
2-2 (3) "Municipal public library" means a library that
2-3 is:
2-4 (A) financed and operated by a municipality; and
2-5 (B) open free of charge to all members of the
2-6 public under identical conditions.
2-7 Sec. 326.004. DISTRICT AUTHORIZATION. (a) A library
2-8 district may be created and if created, must be maintained,
2-9 operated, and financed as provided by this chapter.
2-10 (b) A district created under this chapter is a governmental
2-11 agency, body politic and corporate, and political subdivision of
2-12 the state.
2-13 (Sections 326.005-326.020 reserved for expansion
2-14 SUBCHAPTER B. CREATION OF DISTRICT
2-15 Sec. 326.021. CONFIRMATION ELECTION. A district may be
2-16 created and a sales and use tax may be authorized only if the
2-17 creation is confirmed and the tax is approved by a majority of the
2-18 qualified voters of the district voting at an election held for
2-19 that purpose.
2-20 Sec. 326.022. TERRITORY INCLUDED IN A DISTRICT. (a) A
2-21 district may include any contiguous territory that, on the date on
2-22 which an election is ordered on the question of creating the
2-23 district, is not in a municipality that operates a municipal public
2-24 library.
2-25 (b) The district may include incorporated or unincorporated
2-26 territory.
2-27 (c) A district may not include territory in more than one
3-1 county.
3-2 Sec. 326.023. PETITION FOR CREATION OF DISTRICT.
3-3 (a) Before a district may be created, the commissioners court of
3-4 the county in which the proposed district is located must receive a
3-5 petition signed by at least 100 registered voters who reside in the
3-6 territory of the proposed district.
3-7 (b) The petition must:
3-8 (1) include a name for the proposed district that
3-9 describes the location of the district followed by the words
3-10 "Library District";
3-11 (2) describe the boundaries of the proposed district
3-12 by:
3-13 (A) metes and bounds;
3-14 (B) lot and block number, if there is a recorded
3-15 map or plat and survey of the area; or
3-16 (C) other sufficient legal description;
3-17 (3) include the names of five persons who are willing
3-18 and qualified to serve as the initial board of trustees of the
3-19 district if elected at the election to create the district; and
3-20 (4) include the rate of the sales tax that would be
3-21 imposed by the board of the proposed district on approval of the
3-22 district.
3-23 Sec. 326.024. PAYMENT OF ELECTION COSTS. The commissioners
3-24 court may not order the creation of the district or a confirmation
3-25 election until the petitioners deposit with the county clerk an
3-26 amount of money equal to the cost of conducting the creation
3-27 election of the proposed district, as computed by the county.
4-1 Sec. 326.025. FILING OF PETITION; HEARING; ORDERING
4-2 ELECTION. (a) At the next regular or special session of the
4-3 commissioners court held after the petition is filed with the
4-4 commissioners court, the commissioners court shall consider the
4-5 petition.
4-6 (b) The commissioners court shall grant the petition and
4-7 enter an order creating the district if the court finds that the
4-8 petition is in proper form and conforms to the requirements of
4-9 Section 326.023 and that the requirement of Section 326.024 is met.
4-10 (c) If a petition is granted, the commissioners court shall
4-11 order an election to confirm the district's creation and to
4-12 authorize the imposition of a sales and use tax.
4-13 (d) The election shall be held on the first authorized
4-14 uniform election date under Chapter 41, Election Code, that occurs
4-15 on or after the 45th day after the date the election is ordered.
4-16 Sec. 326.026. ELECTION ORDER. In addition to the elements
4-17 required to be included by the Election Code, the election order
4-18 must state:
4-19 (1) the ballot proposition stating the measure to be
4-20 voted on;
4-21 (2) the hours that the polls will be open; and
4-22 (3) the location of each polling place.
4-23 Sec. 326.027. NOTICE. (a) The commissioners court shall
4-24 give notice of the election by publishing a substantial copy of the
4-25 election order once a week for two consecutive weeks in a newspaper
4-26 with general circulation in the county in which the proposed
4-27 district is located.
5-1 (b) The notice must be published not earlier than the 30th
5-2 day or later than the 10th day before election day.
5-3 (c) In addition to the elements required to be included by
5-4 the Election Code, the notice of the election must state the names
5-5 of the five board of trustee candidates.
5-6 Sec. 326.028. BALLOT PROPOSITION. (a) The ballot for the
5-7 election shall be printed to permit voting for or against the
5-8 proposition: "The creation of the __________ (name of district)
5-9 and adoption of a local sales and use tax in the (name of district)
5-10 at the rate of _______ (rate) percent to provide revenue for the
5-11 district."
5-12 (b) The ballot shall be printed to permit voting for or
5-13 against each of the five initial trustees listed in the petition
5-14 submitted to the commissioners court under Section 326.023. A
5-15 blank space must be printed after the name of each candidate, in
5-16 each of which a voter may write in the name of another person for
5-17 trustee.
5-18 (c) A voter may not vote for more than five persons for
5-19 trustee.
5-20 Sec. 326.029. RESULTS OF ELECTION. (a) If a majority of
5-21 the votes received in the election favor the creation of the
5-22 district and the adoption of the sales and use tax, the
5-23 commissioners court shall declare that the district is created and
5-24 shall declare the amount of the local sales and use tax adopted,
5-25 and enter the result in its minutes.
5-26 (b) If a majority of the votes received in the election are
5-27 against the creation of the district, the commissioners court shall
6-1 declare the measure defeated and enter the result in its minutes.
6-2 (c) The order canvassing the results of the election must:
6-3 (1) contain a description of the district's
6-4 boundaries; and
6-5 (2) be filed in the deed records of the county in
6-6 which the district is located.
6-7 Sec. 326.030. INITIAL TRUSTEES. (a) The commissioners
6-8 court shall declare the five persons receiving the highest number
6-9 of votes for trustee to be elected as trustees.
6-10 (b) The two trustees elected who received the fewest number
6-11 of votes shall serve until the next board of trustees election
6-12 following the confirmation election, and the three trustees who
6-13 received the highest number of votes shall serve until the second
6-14 succeeding trustee election after the confirmation election.
6-15 (Sections 326.031-326.040 reserved for expansion
6-16 SUBCHAPTER C. DISTRICT ADMINISTRATION
6-17 Sec. 326.041. BOARD OF TRUSTEES. A district shall be
6-18 governed by a board of five trustees.
6-19 Sec. 326.042. REGISTERED VOTER REQUIREMENT. A person may
6-20 not be elected to the board of trustees unless the person is a
6-21 registered voter of the county in which the district is located.
6-22 Sec. 326.043. ELECTION OF TRUSTEES; TERM OF OFFICE. (a)
6-23 Trustees shall serve two-year terms.
6-24 (b) The general election for trustees shall be held annually
6-25 on an authorized uniform election date under Chapter 41, Election
6-26 Code.
6-27 (c) Except for the initial members of the board of trustees,
7-1 a candidate for the office of trustee must file an application for
7-2 a place on the ballot in accordance with Chapter 144, Election
7-3 Code, and other applicable provisions of that code.
7-4 Sec. 326.044. BOARD VACANCY. A vacancy in the office of a
7-5 trustee shall be filled by appointment by the remaining trustees.
7-6 Sec. 326.045. OFFICERS. After the trustees have assumed
7-7 office, the trustees shall elect from among the trustees a
7-8 president, a vice president, a secretary, and any other officers
7-9 the board considers necessary.
7-10 Sec. 326.046. QUORUM; OFFICERS' DUTIES. (a) Three trustees
7-11 constitute a quorum and a concurrence of three is sufficient in any
7-12 matter relating to the business of the district.
7-13 (b) The president presides at all board meetings and is the
7-14 chief executive officer of the district.
7-15 (c) The vice president acts as the president if the
7-16 president is incapacitated or absent from a meeting.
7-17 (d) The secretary acts as the president if both the
7-18 president and vice president are incapacitated or absent from a
7-19 meeting.
7-20 (e) The secretary is responsible for ensuring that all the
7-21 records and books of the district are properly kept.
7-22 (f) The board may appoint the library director or an
7-23 employee as assistant or deputy secretary to assist the secretary.
7-24 The assistant or deputy secretary may certify the authenticity of
7-25 any record of the district.
7-26 Sec. 326.047. BYLAWS. The board may adopt bylaws to govern:
7-27 (1) the time, place, and manner of conducting board
8-1 meetings;
8-2 (2) the powers, duties, and responsibilities of the
8-3 board's officers and employees;
8-4 (3) the disbursement of money by a check, draft, or
8-5 warrant;
8-6 (4) the appointment and authority of board committees;
8-7 (5) the keeping of accounts and other records; and
8-8 (6) any other matter the board considers appropriate.
8-9 Sec. 326.048. MEETINGS AND NOTICE. (a) The board may
8-10 establish regular meetings to conduct district business and may
8-11 hold special meetings at other times as the business of the
8-12 district requires.
8-13 (b) The board shall hold its meetings at a designated
8-14 meeting place.
8-15 Sec. 326.049. MANAGEMENT OF DISTRICT. (a) The board has
8-16 control over and shall manage the affairs of the district.
8-17 (b) The board shall employ any person, firm, partnership, or
8-18 corporation the board considers necessary for conducting the
8-19 affairs of the district.
8-20 (c) The board of trustees shall determine the term of office
8-21 and compensation of any employee and consultant by contract or by
8-22 resolution of the board.
8-23 (d) The board may remove any employee.
8-24 Sec. 326.050. LIBRARY DIRECTOR. The board may employ a
8-25 library director to administer the affairs of the district under
8-26 policies established by the board. The board shall set the
8-27 compensation of the library director.
9-1 Sec. 326.051. BOND. The board may require an officer or
9-2 employee to execute a bond payable to the district and conditioned
9-3 on the faithful performance of the person's duties.
9-4 Sec. 326.052. TRUSTEE INTERESTED IN CONTRACT. (a) A
9-5 trustee who is financially interested in a contract with the
9-6 district, or a trustee who is an employee of a person that is
9-7 financially interested in a contract with the district, shall
9-8 disclose that fact to the other trustees. The disclosure shall be
9-9 entered into the minutes of the meeting.
9-10 (b) A trustee who is financially interested in a contract
9-11 may not vote on the acceptance of the contract or participate in
9-12 the discussion on the contract.
9-13 (c) The failure of a trustee to disclose the trustee's
9-14 financial interest in a contract and to have the disclosure entered
9-15 in the minutes invalidates the contract.
9-16 (Sections 326.053-326.060 reserved for expansion
9-17 SUBCHAPTER D. POWERS AND DUTIES
9-18 Sec. 326.061. GENERAL POWERS OF DISTRICT. (a) A district
9-19 has all of the powers, authority, rights, and duties that will
9-20 permit the accomplishment of the purposes for which the district
9-21 was created, including the power to purchase, construct, acquire,
9-22 own, operate, maintain, repair, or improve any works, materials,
9-23 supplies, improvements, facilities, equipment, vehicles, machinery,
9-24 or appliances as necessary for the district.
9-25 (b) If a district acquires existing improvements,
9-26 facilities, plants, equipment, or appliances, the district may
9-27 assume the contracts and obligations of the previous owner.
10-1 Sec. 326.062. EMPLOYEE PLANS. (a) The board may provide
10-2 for and administer a workers' compensation, health benefit,
10-3 retirement, disability, or death compensation plan for the
10-4 employees of the district.
10-5 (b) The board may adopt a plan to accomplish the purpose of
10-6 this section.
10-7 (c) The board, after notice and a hearing, may change any
10-8 plan or rule adopted under this section.
10-9 Sec. 326.063. SUITS. (a) A district may sue and be sued in
10-10 any court of this state in the name of the district.
10-11 (b) All courts of this state shall take judicial notice of
10-12 the establishment of a district.
10-13 Sec. 326.064. RULES. (a) The board may adopt reasonable
10-14 rules to accomplish the purposes of the district.
10-15 (b) The board may set monetary charges in reasonable amounts
10-16 for the violation of a district rule.
10-17 (c) The board may exclude from the use of the library a
10-18 person who wilfully violates a rule adopted by the board under this
10-19 section.
10-20 Sec. 326.065. FEES. (a) A district may impose any
10-21 necessary charges or fees for providing a district service.
10-22 (b) A district may discontinue a service to enforce payment
10-23 of an unpaid charge or fee that is owed to the district.
10-24 Sec. 326.066. DEPOSITORY. (a) The board shall designate
10-25 one or more banks inside or outside of the district to serve as the
10-26 depository for district money.
10-27 (b) Tax revenue of the district shall be deposited in a
11-1 depository bank.
11-2 Sec. 326.067. INVESTMENTS. (a) Tax revenue of the district
11-3 may be invested in an obligation that is an authorized investment
11-4 for the state.
11-5 (b) District money other than tax revenue may be invested in
11-6 accordance with policies adopted by the board.
11-7 Sec. 326.068. EXPENDITURES. A district's money may be
11-8 disbursed only by check, draft, order, or another instrument that
11-9 must be signed by one or more officers or employees of the district
11-10 as designated by the board of trustees.
11-11 Sec. 326.069. ACCOUNTS AND RECORDS; AUDITS. (a) The
11-12 district shall keep a complete system of accounts.
11-13 (b) The district shall have an annual audit of the affairs
11-14 of the district performed by an independent certified public
11-15 accountant.
11-16 (c) A signed copy of the audit report shall be delivered to
11-17 each trustee not later than the 120th day after the closing date of
11-18 each fiscal year.
11-19 (d) A copy of the audit report shall be kept on file at the
11-20 district office and shall be made available for inspection by any
11-21 interested person during regular business hours.
11-22 Sec. 326.070. FISCAL YEAR. The fiscal year of the district
11-23 is from January 1 to December 31, unless the board adopts another
11-24 fiscal year.
11-25 Sec. 326.071. REPAYMENT OF ORGANIZATIONAL EXPENSES.
11-26 (a) The district may:
11-27 (1) pay all costs and expenses necessarily incurred in
12-1 the creation and organization of the district; and
12-2 (2) reimburse any entity or person for money advanced
12-3 for the costs and expenses described by Subdivision (1) of this
12-4 section.
12-5 (b) Payments under this section may be made from money
12-6 obtained from taxes or other revenue of the district.
12-7 (Sections 326.072-326.090 reserved for expansion
12-8 SUBCHAPTER E. SALES AND USE TAX
12-9 Sec. 326.091. SALES AND USE TAX. (a) The sales and use tax,
12-10 if adopted, does not count toward the limitation imposed by Chapter
12-11 323, Tax Code, on any sales and use tax that has been levied by the
12-12 county.
12-13 (b) If a district adopts the tax, there is imposed a tax on
12-14 the receipts from the sale at retail of taxable items in the
12-15 district at a rate of up to one-half of one percent. There is also
12-16 imposed an excise tax on the use, storage, or other consumption in
12-17 the district of taxable items purchased, leased, or rented from a
12-18 retailer during the period that the tax is effective in the
12-19 district. The rate of the excise tax is the same as the rate of
12-20 the sales tax portion of the tax applied to the sales price of the
12-21 taxable items and is included in the sales tax.
12-22 (c) For purposes of this section, "taxable items" includes
12-23 all items subject to any sales and use tax that is imposed by the
12-24 county if the county has imposed a sales and use tax.
12-25 Sec. 326.092. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
12-26 GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not
12-27 inconsistent with this chapter, governs the imposition,
13-1 computation, administration, and governance of the tax under this
13-2 subchapter, except that Sections 323.101, 323.105, and 323.404
13-3 through 323.408, Tax Code, do not apply.
13-4 (b) Chapter 323, Tax Code, does not apply to the use and
13-5 allocation of revenue under this chapter.
13-6 (c) In applying the procedures under Chapter 323, Tax Code,
13-7 the district's name shall be substituted for "the county" and
13-8 "board of trustees" is substituted for "commissioners court."
13-9 Sec. 326.093. TAX RATES. The permissible rates for a local
13-10 sales and use tax levied under this chapter are one-eighth of one
13-11 percent, one-fourth of one percent, three-eighths of one percent,
13-12 and one-half of one percent.
13-13 Sec. 326.094. ABOLITION OF OR CHANGE IN TAX RATE. (a) The
13-14 board by order may decrease or abolish the local sales and use tax
13-15 rate or may call an election to increase, decrease, or abolish the
13-16 local sales and use tax rate.
13-17 (b) At the election, the ballots shall be printed to permit
13-18 voting for or against the proposition: "The increase (decrease) in
13-19 the local sales and use tax rate of (name of district) to
13-20 (percentage) to be used for the purposes of the district" or "The
13-21 abolition of the district sales and use tax." The increase or
13-22 decrease in the tax rate is effective if it is approved by a
13-23 majority of the votes cast. In calling and holding the election,
13-24 the board shall use the procedure for the confirmation and tax
13-25 election set forth in this chapter.
13-26 Sec. 326.095. USE OF TAX. Taxes collected under this
13-27 subchapter may be used only for the purposes for which the district
14-1 was created.
14-2 Sec. 326.096. LIMITATION ON ADOPTION OF TAX. (a) A
14-3 district may adopt a tax under this subchapter only if as a result
14-4 of adoption of the tax the combined rate of all local sales and use
14-5 taxes imposed by political subdivisions having territory in the
14-6 district will not exceed two percent.
14-7 (b) If, as a result of the imposition or increase in a sales
14-8 and use tax by a municipality in which there is located a district
14-9 with an existing sales and use tax or as a result of the annexation
14-10 by a municipality of the territory in a district with an existing
14-11 sales and use tax, the overlapping local sales and use taxes in the
14-12 area in the district will exceed two percent, the district's sales
14-13 and use tax rate is automatically reduced to a rate that when added
14-14 to the combined rate of local sales and use taxes will equal two
14-15 percent.
14-16 (c) If a district's tax rate is reduced in accordance with
14-17 Subsection (b), the municipality shall make payments to the
14-18 district equal to the amounts that would have been collected by the
14-19 district had the municipality not imposed or increased its sales
14-20 and use tax or annexed the area in the district, less amounts that
14-21 the district collects following the municipality's levy of or
14-22 increase in its sales and use tax or annexation of the area in the
14-23 district. The payment shall be made by the municipality to the
14-24 district within 10 days after the date of receipt of the money from
14-25 the comptroller's office and shall continue only for so long as any
14-26 bonds of the district are outstanding.
14-27 SECTION 2. This Act takes effect September 1, 1997.
15-1 SECTION 3. The importance of this legislation and the
15-2 crowded condition of the calendars in both houses create an
15-3 emergency and an imperative public necessity that the
15-4 constitutional rule requiring bills to be read on three several
15-5 days in each house be suspended, and this rule is hereby suspended.