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.