By: Moncrief S.B. No. 1401 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED AN ACT 1-1 to allow creation of a Fire Protection and Crime Prevention 1-2 District in municipalities partially or wholly located in counties 1-3 with a population between 1 million and 1.5 million. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 44, Revised Statutes, is amended by adding 1-6 Article 2370c-5 to read as follows: 1-7 Art. 2370c-5. Fire Protection and Crime Prevention Districts 1-8 in municipalities located in counties between one and 1.5 million 1-9 population. 1-10 ARTICLE I. GENERAL PROVISIONS 1-11 Sec. 1.01. SHORT TITLE. This Act may be cited as the Fire 1-12 Protection and Crime Prevention Act. 1-13 Sec. 1.02. APPLICABILITY. This Act applies only to 1-14 municipalities partially or wholly located in counties with a 1-15 population between 1 million and 1.5 million. 1-16 Sec. 1.03. RELATIONSHIP WITH ARTICLE 2370c-4, REVISED 1-17 STATUTES. A municipality to which this Act applies may create in 1-18 its jurisdiction a crime control district as authorized by Article 1-19 2370c-4 or a fire protection and crime prevention district as 1-20 provided in this Act, but not both. 2-1 ARTICLE 2. TEMPORARY DIRECTORS 2-2 Sec. 2.01. APPOINTMENT OF TEMPORARY DIRECTORS. 2-3 (a) The governing body of a municipality which proposes the 2-4 creation of a fire protection and crime prevention district shall 2-5 appoint seven persons that reside in the municipality to serve as 2-6 temporary directors of the proposed district. The temporary 2-7 directors must be appointed by the municipality's governing body no 2-8 later than the 60th day after the date the district is proposed. 2-9 (b) If the governing body of a municipality proposes the 2-10 creation of a fire protection and crime prevention district in a 2-11 municipality which previously has established a crime control and 2-12 prevention district under Article 2370c-4, Revised Statutes, the 2-13 board of directors appointed to administer the crime control and 2-14 prevention district shall act as temporary directors of the 2-15 proposed fire protection and crime prevention district, and shall 2-16 fulfill all obligations required of temporary directors by this 2-17 Act. 2-18 Sec. 2.02. BOARD ORGANIZATION; ELECTION OF TEMPORARY CHAIR. 2-19 Within 15 days after the date on which the temporary directors are 2-20 appointed by the municipality's governing body, the temporary board 2-21 shall organize and elect a chair from among its membership. 2-22 Sec. 2.03. DESIGNATED ALTERNATE. A temporary director who 2-23 is not the temporary chair may designate another person to serve in 2-24 the director's place. 2-25 Sec. 2.04. VACANCY IN OFFICE. A vacancy in the office of 3-1 temporary director shall be filled in the same manner that the 3-2 vacant position was originally filled. 3-3 ARTICLE 3. CREATION OF DISTRICTS 3-4 Sec. 3.01. CREATION ELECTION. A district proposed by the 3-5 municipality's governing body may be created and a tax may be 3-6 authorized only if the creation and the tax are approved by a 3-7 majority of the qualified voters of the municipality voting at an 3-8 election called and held for that purpose. 3-9 Sec. 3.02. ORDERING ELECTION. After a majority of the 3-10 temporary directors of a proposed district have approved a budget 3-11 plan and a fire protection and crime prevention plan in accordance 3-12 with Section 3.09 of this Act, a majority of the temporary 3-13 directors may order that a creation election be held. 3-14 Sec. 3.03. ELECTION ORDER. 3-15 (a) An order calling an election under Section 3.02 of this 3-16 Act must state: 3-17 (1) The nature of the election, including the 3-18 proposition that is to appear on the ballot; 3-19 (2) The date of the election; 3-20 (3) The hours during which the polls will be open; 3-21 (4) The location of the polling places; 3-22 (5) In summary form, the approved budget plan and fire 3-23 protection and crime prevention plan of the proposed district; and 3-24 (6) The proposed rate of the sales and use tax for the 3-25 district. 4-1 (b) The proposed rate for the district sales and use tax 4-2 imposed under Subchapter B, Chapter 323, Tax Code, may be only: 4-3 (1) One-fourth of one percent; or 4-4 (2) One-half of one percent. 4-5 (c) A sales and use tax approved under this Act may be 4-6 charged in addition to any other sales and use tax authorized by 4-7 law and is included in computing a combined sales and use tax rate 4-8 for purposes of any limitation provided by law on the maximum 4-9 combined sales and use tax rate of political subdivisions. 4-10 Sec. 3.04. NOTICE. The temporary directors of a proposed 4-11 district shall give notice of a creation election by publishing a 4-12 substantial copy of the election order in a newspaper with general 4-13 circulation in the proposed district once a week for two 4-14 consecutive weeks. The first publication must appear at least 35 4-15 days before the date set for the election. 4-16 Sec. 3.05. ELECTION DATE. (a) A creation election shall be 4-17 held not less than 35 days nor more than 60 days after the date on 4-18 which the election is ordered. 4-19 (b) Subsection (a), Section 41.001, Election Code, does not 4-20 apply to a creation election ordered under this Act. 4-21 Sec. 3.06. BALLOT PROPOSITION. The ballot for a creation 4-22 election shall be printed to permit voting for or against the 4-23 proposition: "The creation of the _________ Municipal Fire 4-24 Protection and Crime Prevention District dedicated to fire 4-25 protection and crime reduction programs and the adoption of a 5-1 proposed local sales and use tax at a rate of _______ (the rate 5-2 specified in the election order)." 5-3 Sec. 3.07. CANVASSING RETURNS. 5-4 (a) Not earlier than the second day or later than the 13th 5-5 day after the date of a creation election, the temporary board of a 5-6 proposed district shall meet and canvass the returns of the 5-7 election. 5-8 (b) If the temporary board finds that the election results 5-9 are favorable to the proposition to create the district, the 5-10 temporary board shall issue an order declaring the district 5-11 created. 5-12 (c) If the temporary board finds that the election results 5-13 are not favorable to the proposition to create the district, the 5-14 temporary board may order another election on the matter not 5-15 earlier than one year after the date of the preceding election. 5-16 Sec. 3.08. DISSOLUTION OF TEMPORARY BOARD. If a district 5-17 has not been created under this Act before the fifth anniversary of 5-18 the date a district is proposed by the municipality's governing 5-19 body, the temporary board is dissolved on that date and a district 5-20 may not be created under this Act. 5-21 Sec. 3.09. FIRE PROTECTION AND CRIME PREVENTION PLAN; BUDGET 5-22 PLAN. 5-23 (a) The temporary board of a proposed district shall 5-24 formulate and approve a two-year fire protection and crime 5-25 prevention plan, which must include: 6-1 (1) A detailed list of the crime control and crime 6-2 prevention strategies to be supported by the district; 6-3 (2) A detailed list of the fire protection strategies 6-4 to be supported by the district; and 6-5 (3) The method of annually evaluating the 6-6 effectiveness and efficiency of individual fire protection and 6-7 crime prevention strategies. 6-8 (b) The temporary board of a proposed district shall 6-9 formulate and approve a two-year budget plan, which must include: 6-10 (1) The amount of money budgeted by the district for 6-11 each fire protection and crime prevention strategy; 6-12 (2) The amount of money budgeted by the district and 6-13 the percentage of the total budget of the district for 6-14 administration, with individual amounts on how much of the 6-15 administration would be conducted by the district and how much 6-16 would be conducted by a private or public entities; 6-17 (3) The estimated amount of money available to the 6-18 district from all sources during the ensuing year; 6-19 (4) The amount of balances expected at the end of the 6-20 years for which the budget is prepared; and 6-21 (5) The estimated tax rate that will be required. 6-22 (c) The fire protection and crime prevention plan and budget 6-23 plan must be adopted in the same manner as provided for adoption of 6-24 a proposed annual budget under Section 6.05 of this Act. 6-25 (d) The temporary board shall coordinate its efforts with 7-1 local law enforcement officials, the local community supervision 7-2 and corrections department, the local juvenile probation 7-3 department, and the local fire department in developing its fire 7-4 protection and crime prevention plan and its budget plan. 7-5 Sec. 3.10. FINANCING CREATION OF DISTRICT. A municipality 7-6 creating a fire protection and crime prevention district under this 7-7 Act shall pay the entire cost of creating the district. If a 7-8 district is created, the district shall reimburse the municipality 7-9 for actual expenses incurred in the creation of the district. 7-10 Sec. 3.11. DONATIONS, GIFTS AND ENDOWMENTS. On behalf of a 7-11 district, the temporary board may accept donations, gifts and 7-12 endowments to be held in trust for any purpose and under any 7-13 direction, limitation, or provision prescribed in writing by the 7-14 donor that is consistent with this Act and the proper management of 7-15 the district. 7-16 Sec. 3.12. ALTERNATE CREATION ELECTION. 7-17 (a) If a crime control and prevention district organized 7-18 under Article 2370c-4, Revised Statutes, previously has been 7-19 created or proposed by the municipality, a creation election for a 7-20 fire protection and crime prevention district under this Act must 7-21 be held in conjunction with a creation election, continuation 7-22 referendum, or dissolution referendum under Article 2370c-4, 7-23 Revised Statutes. 7-24 (b) In the combined election, the ballot proposition will be 7-25 worded in such a way as to allow voters three options: 8-1 (1) to create or continue the crime control and 8-2 prevention district, whichever is appropriate; 8-3 (2) to create a fire protection and crime prevention 8-4 district; or 8-5 (3) to reject both alternatives (1) and (2). 8-6 (c) In a joint election held under this Section, the 8-7 temporary directors may propose that the district sales and use tax 8-8 be at the same rate regardless of which type district the voters 8-9 approve, or may specify a different rate dependent upon which type 8-10 of district the voters approve. If different rates for the 8-11 district sales and use tax are proposed, both the election order 8-12 and the ballot proposition shall clearly state the rate of sales 8-13 and use tax to be imposed if a crime control and prevention 8-14 district is created, and the different rate to be imposed if a fire 8-15 protection and crime prevention district is created. 8-16 ARTICLE 4. DISTRICT ADMINISTRATION 8-17 Sec. 4.01. BOARD OF DIRECTORS. 8-18 (a) A district is governed by a board of seven directors 8-19 appointed in the same manner as provided for the selection of 8-20 temporary directors under Section 2.01 of this Act. 8-21 (b) Board members serve staggered two-year terms that expire 8-22 September 1. The initial appointees under this section shall draw 8-23 lots to determine: 8-24 (1) the three directors to serve terms that expire on 8-25 September 1 of the first year following creation of the district; 9-1 and 9-2 (2) the four directors to serve terms that expire on 9-3 September 1 of the second year following creation of the district. 9-4 Sec. 4.02. DESIGNATED ALTERNATE. A director, other than the 9-5 president or vice-president, may designate a person to serve in the 9-6 director's absence. 9-7 Sec. 4.03. BOND. 9-8 (a) Before assuming the duties of the office, each director 9-9 or officer, including a person designated under Section 4.02 of 9-10 this Act, must execute a bond for $5,000 payable to the district, 9-11 conditioned on the faithful performance of the person's duties as 9-12 director or officer. 9-13 (b) The bond shall be kept in the permanent records of the 9-14 district. 9-15 (c) A board may pay for the bonds of the directors or 9-16 officers with district funds. 9-17 Sec. 4.04. BOARD VACANCY. A vacancy in the office of 9-18 director shall be filled for the unexpired terms in the same manner 9-19 that the vacant position was originally filed. 9-20 Sec. 4.05. OFFICERS. A board shall elect from among its 9-21 members a president and vice-president. The board shall also 9-22 appoint a secretary. The secretary need not be a director. The 9-23 person who performs the duties of city auditor shall serve as 9-24 treasurer for the district. 9-25 Sec. 4.06. OFFICERS' TERMS; VACANCY. 10-1 (a) Each officer of a board serves for a term of one year. 10-2 (b) A vacancy in a board office shall be filled for the 10-3 unexpired term by the board. 10-4 Sec. 4.07. COMPENSATION. Directors and officers serve 10-5 without compensation, but all directors and officers may be 10-6 reimbursed for actual expenses incurred in the performance of 10-7 official duties. Those expenses must be reported in the district's 10-8 minute book or other district records and must be approved by the 10-9 board. 10-10 Sec. 4.08. VOTING REQUIREMENT. A concurrence of a majority 10-11 of the members of a board is necessary in matters relating to the 10-12 business of a district. A two-thirds majority vote of the board is 10-13 required to reject any application for funding available under this 10-14 Act. 10-15 Sec. 4.09. ADMINISTRATION. A board may contract with a 10-16 public agency or private vendor to assist in the administration or 10-17 management of a district or to assist in the review of applications 10-18 for funding available under this Act. 10-19 ARTICLE 5. POWERS AND DUTIES 10-20 Sec. 5.01. LIMITATIONS ON EXPENDITURES. A district may 10-21 finance all the costs of a fire protection and crime prevention 10-22 program, including the costs for personnel, administration, 10-23 expansion, enhancement, and capital expenditures. A program may 10-24 include all programs and functions listed in Section 5.01(a) of 10-25 Article 2370c-4, and in addition, may include the following fire 11-1 protection and prevention related programs and equipment: 11-2 (1) Fire apparatus and equipment; 11-3 (2) Bomb disposal unit and equipment; 11-4 (3) Compensation of fire protection and prevention 11-5 personnel for specialized training, including but not limited to 11-6 arson, bomb disposal, hazardous materials, technical rescue, and 11-7 paramedic certification; 11-8 (4) Funding for fire fighter safety equipment, 11-9 including but not limited to turn out gear, self-contained 11-10 breathing apparatus, and protective uniforms; 11-11 (5) Fire safety education programs for the public; 11-12 (6) Additional compensation for municipal fire 11-13 personnel, including overtime compensation for unforeseen staffing 11-14 needs; 11-15 (7) Funding for the construction and maintenance of 11-16 additional fire stations, training facilities, and the equipment 11-17 needed for those facilities; and 11-18 (8) Fire communications units and equipment. 11-19 Sec. 5.02. DISTRICT RESPONSIBILITIES. 11-20 (a) The district shall coordinate its efforts with the local 11-21 community justice council in developing its fire protection and 11-22 crime prevention program. 11-23 (b) The district shall fund an annual evaluation program to 11-24 study the impact, efficiency, and effectiveness of new or expanded 11-25 fire protection and crime prevention programs. 12-1 (c) The board of directors of the district may seek the 12-2 assistance of the Office of State-Federal Relations in identifying 12-3 and applying for federal grants for fire protection and criminal 12-4 justice programs. The board of directors shall notify the 12-5 appropriate council of governments of any intent to submit 12-6 applications for federal funds and for inclusion in the regional 12-7 criminal justice planning process. 12-8 (d) The district may apply for and receive grants for 12-9 criminal and juvenile justice programs from the criminal justice 12-10 division in the Governor's office. 12-11 Sec. 5.03. MANAGEMENT, CONTROL AND ADMINISTRATION. The 12-12 board of directors shall manage, control and administer the 12-13 district funds, except as provided by Section 6.06 of this Act. 12-14 Sec. 5.04. OPEN MEETINGS; ADMINISTRATIVE PROCEDURE. A board 12-15 is subject to the Open Meetings Law, Chapter 551, Government Code, 12-16 and the Administrative Procedure Act, Chapter 2001, Government 12-17 Code. 12-18 Sec. 5.05. LIABILITY. A member of a board is not liable for 12-19 civil damages or criminal prosecution for any act performed in good 12-20 faith in the execution of duties as a board member or for an action 12-21 taken by the board. 12-22 Sec. 5.06. DISTRICT RULES. A board may adopt rules 12-23 governing district funded programs and the duties, functions, and 12-24 responsibilities of district staff and employees. 12-25 Sec. 5.07. METHODS AND PROCEDURES. 13-1 (a) A board may prescribe the method of making purchases and 13-2 expenditures by and for the district; however, the board may enter 13-3 purchasing contracts that involve spending more than $15,000 only 13-4 after competitive bidding as provided by Subchapter C, Chapter 262, 13-5 Local Government Code, to the extent those provisions can be made 13-6 applicable to the board. 13-7 (b) The board may prescribe accounting and control 13-8 procedures for the district. 13-9 (c) If the municipality in which the district is located has 13-10 a purchasing agent authorized by law, that agent shall serve as 13-11 purchasing agent for the district. 13-12 Sec. 5.08. DISTRICT PROPERTY, FACILITIES AND EQUIPMENT. The 13-13 board may acquire or lease property, facilities, or equipment for 13-14 the sole purpose of administering the district. 13-15 Sec. 5.09. REIMBURSEMENT FOR SERVICES. 13-16 (a) A municipality located entirely outside the boundaries 13-17 of the district shall, on request, reimburse a district for the 13-18 district's cost of including in a district program a resident of 13-19 that municipality. 13-20 (b) The board may require reimbursement from the state or 13-21 county for the district's cost of including in a district program 13-22 or facility a person who is a resident of the state or county but 13-23 who is not a resident of the district. 13-24 (c) On behalf of the district, the board may contract with a 13-25 municipal or county government or with the state or federal 14-1 government for the municipality, county, state, or federal 14-2 government to reimburse the district for including a person in a 14-3 district program. 14-4 Sec. 5.10. SERVICE CONTRACTS. When acting on behalf of a 14-5 district, the board may contract with a municipality, county, 14-6 special district, or other political subdivision of the state, with 14-7 a state or federal agency, with individuals, and with the private 14-8 sector to furnish the staff, facilities, equipment, programs, and 14-9 services the board considers necessary for the effective operation 14-10 of the district. 14-11 Sec. 5.11. DONATIONS, GIFTS AND ENDOWMENTS. On behalf of a 14-12 district, the board may accept donations, gifts, and endowments to 14-13 be held in trust for any purpose and under any direction, 14-14 limitation, or provision prescribed in writing by the donor that is 14-15 consistent with this Act and the proper management of the district. 14-16 Sec. 5.12. AUTHORITY TO SUE AND BE SUED. A board may sue 14-17 and be sued in the name of a district. 14-18 ARTICLE 6. DISTRICT FINANCES 14-19 Sec. 6.01. FISCAL YEAR. 14-20 (a) A district is operated on the basis of a fiscal year 14-21 established by the board. 14-22 (b) A fiscal year may not be changed more than once in a 14-23 24-month period. 14-24 Sec. 6.02. ANNUAL AUDIT. Annually, a board shall have an 14-25 audit made of the financial condition of the district by an 15-1 independent auditor. 15-2 Sec. 6.03. DISTRICT AUDIT AND RECORDS. An annual audit and 15-3 other district records shall be open to inspection during regular 15-4 business hours at the principal office of the district. 15-5 Sec. 6.04. ANNUAL BUDGET. 15-6 (a) The board shall prepare a proposed annual budget which 15-7 considers all applications for program funding received by the 15-8 board. 15-9 (b) The proposed budget must contain a complete financial 15-10 statement, including a statement of: 15-11 (1) the outstanding obligations of the district; 15-12 (2) the amount of cash on hand to the credit of each 15-13 fund of the district; 15-14 (3) the amount of money received by the district from 15-15 all sources during the previous year; 15-16 (4) the estimated amount of money available to the 15-17 district from all sources during the current fiscal year; 15-18 (5) the amount of money needed to fund programs 15-19 approved for funding by the board; 15-20 (6) the amount of money requested for programs that 15-21 were not approved for funding by the board; 15-22 (7) the tax rate for the next fiscal year; 15-23 (8) the amount of the balances expected at the end of 15-24 the year in which the budget is being prepared; and 15-25 (9) the estimated amount of revenues and balances 16-1 available to cover the proposed budget. 16-2 Sec. 6.05. NOTICE; BOARD MEETING; ADOPTION OF BUDGET. 16-3 (a) Not later than the 100th day before the beginning of 16-4 each fiscal year, a board shall hold a public hearing on the 16-5 proposed annual budget. 16-6 (b) The board shall publish notice of the hearing in a 16-7 newspaper with general circulation in the district not later than 16-8 the 10th day before the date of the hearing. 16-9 (c) Any resident of the district is entitled to be present 16-10 and participate at the hearing. 16-11 (d) Not later than the 80th day before the beginning of each 16-12 fiscal year, the board shall adopt a budget. The board may make 16-13 any changes in the proposed budget that in its judgment the 16-14 interests of the taxpayers demand. 16-15 (e) The board shall submit the budget to the governing body 16-16 of the municipality in which the district is located not later than 16-17 the 10th day after the date the budget was adopted. 16-18 (f) The board by rule may develop and adopt procedures for 16-19 adopting a budget different from the procedures outlined in this 16-20 Act, but the board must hold public hearings relating to the 16-21 budget. 16-22 Sec. 6.06. NOTICE; MUNICIPAL HEARING; APPROVAL OR REJECTION 16-23 OF BUDGET. 16-24 (a) Not later that the 45th day before the beginning of 16-25 each fiscal year, the governing body of the municipality in which a 17-1 district is located shall hold a public hearing on the proposed 17-2 annual budget. 17-3 (b) The governing body of the municipality shall publish 17-4 notice of the hearing in a newspaper with general circulation in 17-5 the district not later than the 10th day before the date of the 17-6 hearing. 17-7 (c) Any resident of the district is entitled to be present 17-8 and to participate at the hearing. 17-9 (d) The governing body of the municipality shall approve or 17-10 reject the budget submitted by the board not later than the 30th 17-11 day before the beginning of the fiscal year. The governing body of 17-12 the municipality may not amend the budget. 17-13 (e) If the governing body of the municipality rejects the 17-14 budget submitted by the board, the municipality's governing body 17-15 and the board shall meet and together amend and approve the budget 17-16 before the beginning of the fiscal year. 17-17 (f) The budget may be amended after the beginning of the 17-18 fiscal year on approval by the board and the governing body of the 17-19 municipality. 17-20 Sec. 6.07. LIMITATION ON EXPENDITURES. Money may be spent 17-21 only for an expense included in an annual budget or an amendment to 17-22 it. 17-23 Sec. 6.08. SWORN STATEMENT. Not later than the 60th day 17-24 after the last day of each fiscal year, an administrator shall 17-25 prepare for the board a sworn statement of the amount of money that 18-1 belongs to the district and an account of the disbursements of that 18-2 money. 18-3 Sec. 6.09. SPENDING AND INVESTMENT LIMITATIONS. 18-4 (a) A district may not incur a debt payable from revenues 18-5 of the district other than the revenues on hand or to be on hand in 18-6 the current or immediately following fiscal year of the district. 18-7 (b) The board may not invest district funds in funds or 18-8 securities other than those specified by Article 836 or 837, 18-9 Revised Statutes, or by the Public Funds Investment Act of 1987 18-10 (Article 842-a, Vernon's Texas Civil Statutes). 18-11 Sec. 6.10. DEPOSIT OF FUNDS. 18-12 (a) A board shall deposit district funds in a special 18-13 account in the treasury of the municipality in which the district 18-14 is located. 18-15 (b) District funds, other than those invested as provided by 18-16 Section 6.09(b) of this Act, shall be deposited as received in the 18-17 municipal treasury and must remain on deposit. 18-18 (c) A board shall reimburse the municipality for any costs 18-19 the municipality incurs in performing the duties imposed under this 18-20 Section, other than personnel. 18-21 Sec. 6.11. APPLICATIONS FOR PROGRAM FUNDING. 18-22 (a) The chief administrative officer or the head of a 18-23 department of the municipality in which a district is created may, 18-24 with the consent of the municipality's governing body, apply to the 18-25 board for funding of a program as described by Section 5.01 of this 19-1 Act. 19-2 (b) Applications under this Section must be submitted not 19-3 later than the 140th day before the beginning of the fiscal year, 19-4 unless an exception has been adopted by rule. 19-5 (c) The board by rule may develop and adopt application 19-6 procedures. 19-7 ARTICLE 7. BONDS 19-8 Sec. 7.01. A board may not issue or sell general obligation 19-9 bonds, revenue bonds, or refunding bonds. The board and the 19-10 district may issue or sell bonds conditioned on the faithful 19-11 performance of a person's duties as director as provided by Section 19-12 4.03 of this Act. 19-13 ARTICLE 8. DISTRICT CONTINUATION 19-14 Sec. 8.01. CONTINUATION REFERENDUM. 19-15 (a) A board may hold a referendum on the question of whether 19-16 to continue the district. 19-17 (b) The board shall order a continuation referendum if a 19-18 petition that requests continuation of the district is presented in 19-19 accordance with this Act or if a majority of the governing body of 19-20 the municipality in which the district is located by resolution 19-21 requests continuation after notice and a public hearing on the 19-22 matter. However, the board may not hold a continuation referendum 19-23 earlier than five years after the date the district was created or 19-24 earlier than three years after the date of the last preceding 19-25 continuation or dissolution referendum. 20-1 (c) For a continuation referendum, the ballot shall be 20-2 printed to permit voting for or against the proposition: "Whether 20-3 the ________ Municipal Fire Protection and Crime Prevention 20-4 District should be continued and the fire protection and crime 20-5 prevention district sales and use tax should be continued." 20-6 Sec. 8.02. METHODS FOR INITIATING ELECTION. A board may 20-7 order a continuation referendum on its own motion by a majority 20-8 vote of its members. The board shall order a continuation 20-9 referendum: 20-10 (1) on the presentation of a petition meeting the 20-11 requirements of Sections 8.03 through 8.08 of this Act; or 20-12 (2) on the request of the governing body of the 20-13 municipality under Subsection (b) of Section 8.01 of this Act. 20-14 Sec. 8.03. APPLICATION FOR PETITION; ISSUANCE. If 20-15 petitioned to do so by written application of 10 or more registered 20-16 voters of a district, the city clerk of the municipality in which 20-17 the district is located shall issue to the applicants a petition to 20-18 be circulated among registered voters for their signatures. 20-19 Sec. 8.04. CONTENTS OF APPLICATION. To be valid, an 20-20 application for a petition must contain: 20-21 (1) a heading in the following words: "Application 20-22 for a Petition for a Local Option Referendum to Continue the Fire 20-23 Protection and Crime Prevention District and to Continue the Fire 20-24 Protection and Crime Prevention District Sales and Use Tax"; 20-25 (2) a statement of the issue to be voted on in the 21-1 following words: "Whether the ________ Municipal Fire Protection 21-2 and Crime Prevention District should be continued and the fire 21-3 protection and crime prevention district sales and use tax should 21-4 be continued"; 21-5 (3) a statement immediately above the signatures of 21-6 the applicants, reading as follows: "It is the purpose and intent 21-7 of the applicants whose signatures appear below that the fire 21-8 protection and crime prevention district be continued and the fire 21-9 protection and crime prevention district sales and use tax in ____ 21-10 be continued"; and 21-11 (4) the printed name, signature, residence address, 21-12 and voter registration certificate number of each applicant. 21-13 Sec. 8.05. CONTENTS OF PETITION. To be valid, a petition 21-14 must contain: 21-15 (1) a heading in the following words: "Petition for a 21-16 Local Option Referendum to Continue the _____ Municipal Fire 21-17 Protection and Crime Prevention District and to Continue the Fire 21-18 Protection and Crime Prevention District Sales and Use Tax"; 21-19 (2) a statement of the issue to be voted on in the 21-20 same words used in the application; 21-21 (3) a statement immediately above the signatures of 21-22 the petitioners, reading as follows: "It is the purpose and intent 21-23 of the petitioners whose signatures appear below that the fire 21-24 protection and crime prevention district be continued and the fire 21-25 protection and crime prevention district sales and use tax in 22-1 ______ be continued"; 22-2 (4) lines and spaces for the names, signatures, 22-3 residence addresses, and voter registration certificate numbers of 22-4 the petitioners; and 22-5 (5) the date of issuance, the serial number, and the 22-6 seal of the city clerk on each page. 22-7 Sec. 8.06. COPIES. A city clerk shall keep an application 22-8 and a copy of the petition in the files of the city clerk's office. 22-9 The clerk shall issue to the applicants as many copies as they 22-10 request. 22-11 Sec. 8.07. FILING OF PETITION; NUMBER OF SIGNATURES. To 22-12 form the basis for the ordering of a referendum, the petition must 22-13 be filed with the city clerk not later than the 60th day after the 22-14 date of its issuance, and it must contain a number of signatures of 22-15 registered voters of the municipality equal to five percent of the 22-16 number of votes cast in the municipality for all candidates for 22-17 governor in the most recent gubernatorial general election. 22-18 Sec. 8.08. REVIEW BY CITY CLERK. 22-19 (a) A city clerk shall, on request of any person, check each 22-20 name on a petition to determine whether the signer is a registered 22-21 voter of the district. A person requesting verification by the 22-22 city clerk shall pay the city clerk a sum equal to 20 cents per 22-23 name before commencement of the verification. 22-24 (b) The city clerk may not count a signature if there is 22-25 reason to believe that: 23-1 (1) it is not the actual signature of the purported 23-2 signer; 23-3 (2) the voter registration certificate number is not 23-4 correct; 23-5 (3) it is a duplication either of a name or of 23-6 handwriting used in any other signature on the petition; 23-7 (4) the residence address of the signer is not 23-8 correct; or 23-9 (5) the name of the voter is not signed exactly as it 23-10 appears on the official copy of the current list of registered 23-11 voters for the voting year in which the petition is issued. 23-12 Sec. 8.09. CERTIFICATION. Not later than the 40th day after 23-13 the date a petition is filed, excluding Saturdays, Sundays, and 23-14 legal holidays, a city clerk shall certify to the board the number 23-15 of registered voters signing the petition. 23-16 Sec. 8.10. ORDER OF ELECTION. 23-17 (a) A board shall record on its minutes the date the 23-18 petition if filed and the date it is certified by the city clerk. 23-19 (b) If the petition contains the required number of 23-20 signatures and is in proper order, the board shall, at its next 23-21 regular session after the certification by the city clerk, order a 23-22 referendum to be held at the regular polling place in each 23-23 municipal election precinct in the city on the next uniform 23-24 election date authorized by Subsection (a), Section 41.001, 23-25 Election Code, that occurs at least 20 days after the date of the 24-1 order. The board shall state in the order the proposition to be 24-2 voted on in the referendum. The order is prima facie evidence of 24-3 compliance with all provisions necessary to give it validity. 24-4 Sec. 8.11. APPLICATION OF ELECTION CODE. A continuation 24-5 referendum shall be held and the returns shall be prepared and 24-6 canvassed in conformity with the Election Code. 24-7 Sec. 8.12. RESULTS OF REFERENDUM. 24-8 (a) If a majority of the votes cast in a referendum under 24-9 this section are not for the continuation of a district: 24-10 (1) the board shall certify that fact to the secretary 24-11 of state not later than the 10th day after the date of the canvass 24-12 of the returns; and 24-13 (2) the district is dissolved and ceases to operate 24-14 except as provided by Subsection (b) of this section. 24-15 (b) A district that is dissolved and that owns property or 24-16 has outstanding short-term or long-term liabilities may continue to 24-17 operate on a temporary basis as provided by Section 10.02 of this 24-18 Act. 24-19 (c) If a majority of the votes cast in the referendum under 24-20 this section are for the continuation of the district, another 24-21 continuation referendum may not be held except as authorized by 24-22 Section 8.01 of this Act. 24-23 Sec. 8.13. CONTEST OF ELECTION. Not later than the 30th day 24-24 after the date of the result of a continuation referendum is 24-25 declared, any qualified voter of the district may contest the 25-1 election by filing a petition in a district court located in the 25-2 district. 25-3 ARTICLE 9. DISTRICT DISSOLUTION 25-4 Sec. 9.01. DISSOLUTION REFERENDUM. 25-5 (a) A board may hold a referendum on the question of whether 25-6 to dissolve the district. 25-7 (b) The board shall order a dissolution referendum if a 25-8 petition that requests dissolution of the district is presented in 25-9 accordance with this article or if a majority of the governing body 25-10 of the municipality in which the district is located by resolution 25-11 requests dissolution after notice and a public hearing on the 25-12 matter. However, the board may not hold a dissolution referendum 25-13 earlier than five years after the date the district was created or 25-14 earlier than three years after the date of the last preceding 25-15 continuation or dissolution referendum. 25-16 (c) For a dissolution referendum, the ballot shall be 25-17 printed to permit voting for or against the proposition: "Whether 25-18 the ______ Municipal Fire Protection and Crime Prevention District 25-19 should be dissolved and the fire protection and crime prevention 25-20 district sales and use tax should be abolished." 25-21 Sec. 9.02. METHODS FOR INITIATING ELECTION. A board may 25-22 order a dissolution referendum on its own motion by a majority vote 25-23 of its members. The board shall order a dissolution referendum: 25-24 (1) on the presentation of a petition meeting the 25-25 requirements of Sections 9.03 through 9.08 of this Act; or 26-1 (2) on the request of the municipality's governing 26-2 body under Subsection (b) of Section 9.01 of this Act. 26-3 Sec. 9.03. APPLICATION FOR PETITION; ISSUANCE. If 26-4 petitioned to do so by written application of 10 or more registered 26-5 voters of a district, the city clerk of the city in which the 26-6 district is located shall issue to the applicants a petition to be 26-7 circulated among registered voters for their signatures. 26-8 Sec. 9.04. CONTENTS OF APPLICATION. To be valid, an 26-9 application for a petition must contain: 26-10 (1) a heading in the following words: "Application 26-11 for a Petition for a Local Option Referendum to Dissolve the 26-12 Municipal Fire Protection and Crime Prevention District and to 26-13 Abolish the Municipal Fire Protection and Crime Prevention District 26-14 Sales and Use Tax"; 26-15 (2) a statement of the issue to be voted on in the 26-16 following words: "Whether the ______ Municipal Fire Protection and 26-17 Crime Prevention District should be dissolved and the municipal 26-18 fire protection and crime prevention district sales and use tax 26-19 should be abolished"; 26-20 (3) a statement immediately above the signatures of 26-21 the applicants, reading as follows: "It is the purpose and intent 26-22 of the applicants whose signatures appear below that the municipal 26-23 fire protection and crime prevention district be dissolved and the 26-24 municipal fire protection and crime prevention district sales and 26-25 use tax in ______ be abolished"; and 27-1 (4) the printed name, signature, residence address, 27-2 and voter registration certificate number of each applicant. 27-3 Sec. 9.05. CONTENTS OF PETITION. To be valid, a petition 27-4 must contain: 27-5 (1) a heading in the following words: "Petition for a 27-6 Local Option Referendum to Dissolve the ______ Municipal Fire 27-7 Protection and Crime Prevention District and to Abolish the 27-8 Municipal Fire Protection and Crime Prevention District Sales and 27-9 Use Tax"; 27-10 (2) a statement of the issue to be voted on in the 27-11 same words used in the application; 27-12 (3) a statement immediately above the signatures of 27-13 the petitioners, reading as follows: "It is the purpose and intent 27-14 of the petitioners whose signatures appear below that the municipal 27-15 fire protection and crime prevention district be dissolved and the 27-16 municipal fire protection and crime prevention district sales and 27-17 use tax in ______ be abolished"; 27-18 (4) lines and spaces for the names, signatures, 27-19 residence addresses, and voter registration certificate numbers of 27-20 the petitioners; and 27-21 (5) the date of issuance, the serial number, and the 27-22 seal of the city clerk on each page. 27-23 Sec. 9.06. COPIES. A city clerk shall keep an application 27-24 and a copy of the petition in the files of the city clerk's office. 27-25 The clerk shall issue to the applicants as many copies as they 28-1 request. 28-2 Sec. 9.07. FILING OF PETITIONS; NUMBER OF SIGNATURES. To 28-3 form the basis for the ordering of a referendum, the petition must 28-4 be filed with the city clerk not later than the 60th day after the 28-5 date of its issuance, and it must contain a number of signatures of 28-6 registered voters of the municipality equal to five percent of the 28-7 number of votes cast in the municipality for all candidates for 28-8 governor in the most recent gubernatorial general election. 28-9 Sec. 9.08. REVIEW BY CITY CLERK. 28-10 (a) A city clerk shall, on request of any person, check each 28-11 name on a petition to determine whether the signer is a registered 28-12 voter of the district. A person requesting verification by the 28-13 city clerk shall pay the city clerk a sum equal to 20 cents per 28-14 name before commencement of the verification. 28-15 (b) The city clerk may not count a signature if there is 28-16 reason to believe that: 28-17 (1) it is not the actual signature of the purported 28-18 signer; 28-19 (2) the voter registration certificate number is not 28-20 correct; 28-21 (3) it is a duplication either of a name or 28-22 handwriting used in any other signature on the petition; 28-23 (4) the residence address of the signer is not 28-24 correct; or 28-25 (5) the name of the voter is not signed exactly as it 29-1 appears on the official copy of the current list of registered 29-2 voters for the voting year in which the petition is used. 29-3 Sec. 9.09. CERTIFICATION. Not later than the 40th day after 29-4 the date a petition is filed, excluding Saturdays, Sundays, and 29-5 legal holidays, a city clerk shall certify to the board the number 29-6 of registered voters signing the petition. 29-7 Sec. 9.10. ORDER OF ELECTION. 29-8 (a) A board shall record on its minutes the date the 29-9 petition is filed and the date it is certified by the city clerk. 29-10 (b) If the petition contains the required number of 29-11 signatures and is in proper order, the board shall, at its next 29-12 regular session after the certification by the city clerk, order a 29-13 referendum to be held at the regular polling place in each 29-14 municipal election precinct in the city on the next uniform 29-15 election date authorized by Subsection (a), Section 41.001, 29-16 Election Code, that occurs at least 20 days after the date of the 29-17 order. The board shall state in the order the proposition to be 29-18 voted on in the referendum. The order is prima facie evidence of 29-19 compliance with all provisions necessary to give it validity. 29-20 Sec. 9.11. APPLICATION OF ELECTION CODE. A dissolution 29-21 referendum shall be held and the returns shall be prepared and 29-22 canvassed in conformity with the Election Code. 29-23 Sec. 9.12. RESULTS OF REFERENDUM. 29-24 (a) If a majority of the votes cast in a referendum under 29-25 this section are for the dissolution of a district: 30-1 (1) the board shall certify that fact to the secretary 30-2 of state not later than the 10th day after the date of the canvass 30-3 of the returns; and 30-4 (2) the district is dissolved and ceases to operate 30-5 except as provided by Subsection (b) of this section. 30-6 (b) A district that is dissolved and that has outstanding 30-7 short-term or long-term liabilities may continue to operate on a 30-8 temporary basis as provided by Section 10.02 of this Act. 30-9 (c) If less than a majority of the votes cast in the 30-10 referendum under this section are for the dissolution of the 30-11 district, another dissolution referendum may not be held except as 30-12 authorized by Section 9.01 of this Act. 30-13 Sec. 9.13. CONTEST OF ELECTION. Not later than the 30th day 30-14 after the date the result of a dissolution referendum is declared, 30-15 any qualified voter of the district may contest the election by 30-16 filing a petition in a district court located in the district. 30-17 ARTICLE 10. DISSOLUTION 30-18 Sec. 10.01. SUNSET PROVISION. 30-19 (a) A district is dissolved five years after the date the 30-20 district was created if the district has not held a continuation or 30-21 dissolution referendum. 30-22 (b) A district is dissolved five years after the date of the 30-23 most recent continuation or dissolution referendum. 30-24 Sec. 10.02. DISSOLUTION OF DISTRICT. 30-25 (a) On the date that the district is dissolved, the district 31-1 shall, as prescribed by Subsection (h) of this section, convey or 31-2 transfer to the municipality in which the district is located the 31-3 following: 31-4 (1) title to land, buildings, real and tangible 31-5 improvements, and equipment owned by the district; 31-6 (2) operating funds and reserves for operating 31-7 expenses and funds that have been budgeted by the district for the 31-8 remainder of the fiscal year in which the district is dissolved to 31-9 support crime control activities and fire protection programs for 31-10 residents of the municipality; 31-11 (3) taxes levied by the district during the current 31-12 year for fire protection and prevention and crime control purposes; 31-13 (4) funds established for payment of indebtedness 31-14 assumed by the district; and 31-15 (5) any accumulated employee retirement funds. 31-16 (b) After the date the district is dissolved, the district 31-17 may not levy taxes for district purposes or for providing crime 31-18 control activities and fire protection and prevention programs for 31-19 the residents of the district. 31-20 (c) If on the date that the district is dissolved the 31-21 district has outstanding short-term or long-term liabilities, the 31-22 board shall, not later than the 30th day after the dissolution, 31-23 adopt a resolution certifying each outstanding short-term and 31-24 long-term liability. The municipality in which the district is 31-25 located shall assume the outstanding short-term and long-term 32-1 liabilities. The municipality shall collect the sales and use tax 32-2 authorized by Section 323.105, Tax Code, for the remainder of the 32-3 calendar year and may by resolution of the municipality's governing 32-4 body continue to collect the tax for an additional calendar year if 32-5 the revenue from the tax is needed to retire liabilities of the 32-6 district that were assumed by the municipality. The municipality's 32-7 governing body shall notify the comptroller of this continuation 32-8 not later than the 60th day before the date on which the tax would 32-9 otherwise expire. Any tax collected after the liabilities have 32-10 been retired shall be transferred or conveyed as prescribed by 32-11 Subsection (a) of this section. 32-12 (d) The district and the board may continue to operate for a 32-13 period not to exceed two months after carrying out the 32-14 responsibilities required by Subsections (a) and (c) of this 32-15 Section. The board and the district are continued in effect for 32-16 the purpose of satisfying these responsibilities. 32-17 (e) If the board and the district are continued in effect 32-18 under Subsection (d) of this section, the board and district are 32-19 dissolved entirely on the first day of the month following the 32-20 month in which the board issues an order certifying to the 32-21 secretary of state that no responsibilities of Subsections (a) and 32-22 (c) of this section are left unsatisfied. 32-23 (f) A district or board that continues to operate under 32-24 Subsection (d) of this section may not incur any new liabilities 32-25 without the approval of the governing body of the municipality in 33-1 which the district is located. Not later than the 60th day after 33-2 the date of the dissolution referendum, the municipality's 33-3 governing body shall review the outstanding liabilities of the 33-4 district and set a specific date by which the municipality must 33-5 retire the district's outstanding liabilities. 33-6 (g) On the date that the district is dissolved, 33-7 district-funded programs, including additional courts, shall 33-8 immediately terminate and district-funded personnel, except 33-9 personnel required to retire the responsibilities of the district, 33-10 are terminated. 33-11 ARTICLE 11. STATE LIABILITY 33-12 Sec. 11.01. The state is not obligated for the support, 33-13 maintenance, or dissolution of a fire protection and crime 33-14 prevention district created under this Act. 33-15 SECTION 2. This act takes effect June 3, 1997. 33-16 SECTION 3. The importance of this legislation and the 33-17 crowded condition of the calendars in both houses create an 33-18 emergency and an imperative public necessity that the 33-19 constitutional rule requiring bills to be read on three several 33-20 days in each house be suspended, and this rule is hereby suspended, 33-21 and that this Act take effect and be in force according to its 33-22 terms, and it is so enacted.