AN ACT
1-1 relating to the creation, administration, powers, duties,
1-2 operation, and financing of library districts; authorizing a tax
1-3 and providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle B, Title 10, Local Government Code, is
1-6 amended by adding Chapter 326 to read as follows:
1-7 CHAPTER 326. LIBRARY DISTRICTS
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 326.001. FINDINGS. The legislature finds that:
1-10 (1) children and other residents of many rural and
1-11 suburban areas of the state do not have convenient access to a
1-12 public library; and
1-13 (2) the creation of library districts in underserved
1-14 areas would make valuable information resources more readily
1-15 available to public school students and other residents of the
1-16 state.
1-17 Sec. 326.002. PURPOSE. The purpose of a library district is
1-18 to establish, equip, and maintain one or more public libraries for
1-19 the dissemination of general information relating to the arts,
1-20 sciences, and literature.
1-21 Sec. 326.003. DEFINITIONS. In this chapter:
1-22 (1) "Board" means the board of trustees of a district.
1-23 (2) "District" means a library district created under
2-1 this chapter.
2-2 (3) "Municipal public library" means a library that
2-3 is:
2-4 (A) financed and operated by a municipality; and
2-5 (B) open free of charge to all members of the
2-6 public under identical conditions.
2-7 Sec. 326.004. DISTRICT AUTHORIZATION. (a) A library
2-8 district may be created in a county with a population of more than
2-9 100,000 and, if created, must be maintained, operated, and financed
2-10 as provided by this chapter.
2-11 (b) A district created under this chapter is a governmental
2-12 agency, body politic and corporate, and political subdivision of
2-13 the state.
2-14 (Sections 326.005-326.020 reserved for expansion
2-15 SUBCHAPTER B. CREATION OF DISTRICT
2-16 Sec. 326.021. CONFIRMATION ELECTION. A district may be
2-17 created and a sales and use tax may be authorized only if the
2-18 creation is confirmed and the tax is approved by a majority of the
2-19 qualified voters of the district voting at an election held for
2-20 that purpose.
2-21 Sec. 326.022. TERRITORY INCLUDED IN A DISTRICT. (a) A
2-22 district may include any contiguous territory that, on the date on
2-23 which an election is ordered on the question of creating the
2-24 district, is not in a municipality that operates a municipal public
2-25 library.
3-1 (b) The district may include incorporated or unincorporated
3-2 territory.
3-3 (c) A district may not include territory in more than one
3-4 county.
3-5 (d) After a district is created, the district may not be
3-6 expanded to include additional territory unless the commissioners
3-7 court of the county in which the district is located calls and
3-8 holds an election for that purpose in the territory to be added to
3-9 the district. The commissioners court may not expand the district
3-10 unless a majority of the voters voting at the expansion election
3-11 approve the expansion of the district.
3-12 Sec. 326.023. PETITION FOR CREATION OF DISTRICT.
3-13 (a) Before a district may be created, the commissioners court of
3-14 the county in which the proposed district is located must receive a
3-15 petition signed by at least five percent of the number of voters in
3-16 the territory of the proposed district who voted in the most recent
3-17 gubernatorial election.
3-18 (b) The petition must:
3-19 (1) include a name for the proposed district that
3-20 describes the location of the district followed by the words
3-21 "Library District";
3-22 (2) describe the boundaries of the proposed district
3-23 by:
3-24 (A) metes and bounds;
3-25 (B) lot and block number, if there is a recorded
4-1 map or plat and survey of the area; or
4-2 (C) other sufficient legal description;
4-3 (3) include the names of five persons who are willing
4-4 and qualified to serve as the initial board of trustees of the
4-5 district if elected at the election to create the district; and
4-6 (4) include the rate of the sales tax that would be
4-7 imposed by the board of the proposed district on approval of the
4-8 district.
4-9 Sec. 326.024. PAYMENT OF ELECTION COSTS. The commissioners
4-10 court may not order the creation of the district or a confirmation
4-11 election until the petitioners deposit with the county clerk an
4-12 amount of money equal to the cost of conducting the creation
4-13 election of the proposed district, as computed by the county.
4-14 Sec. 326.025. FILING OF PETITION; HEARING; ORDERING
4-15 ELECTION. (a) At the next regular or special session of the
4-16 commissioners court held after the petition is filed with the
4-17 commissioners court, the commissioners court shall consider the
4-18 petition.
4-19 (b) The commissioners court shall grant the petition if the
4-20 court finds that the petition is in proper form and conforms to the
4-21 requirements of Section 326.023 and that the requirement of Section
4-22 326.024 is met.
4-23 (c) If a petition is granted, the commissioners court shall
4-24 order an election to confirm the district's creation and to
4-25 authorize the imposition of a sales and use tax.
5-1 (d) The election shall be held on the first authorized
5-2 uniform election date under Chapter 41, Election Code, that occurs
5-3 on or after the 45th day after the date the election is ordered.
5-4 Sec. 326.026. ELECTION ORDER. In addition to the elements
5-5 required to be included by the Election Code, the election order
5-6 must state:
5-7 (1) the ballot proposition stating the measure to be
5-8 voted on;
5-9 (2) the hours that the polls will be open; and
5-10 (3) the location of each polling place.
5-11 Sec. 326.027. NOTICE. (a) The commissioners court shall
5-12 give notice of the election by publishing a substantial copy of the
5-13 election order once a week for two consecutive weeks in a newspaper
5-14 with general circulation in the county in which the proposed
5-15 district is located.
5-16 (b) The notice must be published not earlier than the 30th
5-17 day or later than the 10th day before election day.
5-18 (c) In addition to the elements required to be included by
5-19 the Election Code, the notice of the election must state the names
5-20 of the five board of trustee candidates.
5-21 Sec. 326.028. BALLOT PROPOSITION. (a) The ballot for the
5-22 election shall be printed to permit voting for or against the
5-23 proposition: "The creation of the __________ (name of district)
5-24 and adoption of a local sales and use tax in the (name of district)
5-25 at the rate of _______ (rate) percent to provide revenue for the
6-1 district."
6-2 (b) The ballot shall be printed to permit voting for or
6-3 against each of the five initial trustees listed in the petition
6-4 submitted to the commissioners court under Section 326.023. A
6-5 blank space must be printed after the name of each candidate, in
6-6 each of which a voter may write in the name of another person for
6-7 trustee.
6-8 (c) A voter may not vote for more than five persons for
6-9 trustee.
6-10 Sec. 326.029. RESULTS OF ELECTION. (a) If a majority of
6-11 the votes received in the election favor the creation of the
6-12 district and the adoption of the sales and use tax, the
6-13 commissioners court shall declare that the district is created and
6-14 shall declare the amount of the local sales and use tax adopted and
6-15 enter the result in its minutes.
6-16 (b) If a majority of the votes received in the election are
6-17 against the creation of the district, the commissioners court shall
6-18 declare the measure defeated and enter the result in its minutes.
6-19 (c) The order canvassing the results of the election must:
6-20 (1) contain a description of the district's
6-21 boundaries; and
6-22 (2) be filed in the deed records of the county in
6-23 which the district is located.
6-24 Sec. 326.030. INITIAL TRUSTEES. (a) The commissioners
6-25 court shall declare the five persons receiving the highest number
7-1 of votes for trustee to be elected as trustees.
7-2 (b) The two trustees elected who received the fewest number
7-3 of votes shall serve until the next board of trustees election
7-4 following the confirmation election, and the three trustees who
7-5 received the highest number of votes shall serve until the second
7-6 succeeding trustee election after the confirmation election.
7-7 (Sections 326.031-326.040 reserved for expansion
7-8 SUBCHAPTER C. DISTRICT ADMINISTRATION
7-9 Sec. 326.041. BOARD OF TRUSTEES. A district shall be
7-10 governed by a board of five trustees.
7-11 Sec. 326.042. REGISTERED VOTER REQUIREMENT. A person may
7-12 not be elected to the board of trustees unless the person is a
7-13 resident of the district and a registered voter of the county in
7-14 which the district is located.
7-15 Sec. 326.043. ELECTION OF TRUSTEES; TERM OF OFFICE.
7-16 (a) Trustees shall serve two-year terms.
7-17 (b) The general election for trustees shall be held annually
7-18 on an authorized uniform election date under Chapter 41, Election
7-19 Code.
7-20 (c) Except for the initial members of the board of trustees,
7-21 a candidate for the office of trustee must file an application for
7-22 a place on the ballot in accordance with Chapter 144, Election
7-23 Code, and other applicable provisions of that code.
7-24 Sec. 326.044. BOARD VACANCY. A vacancy in the office of a
7-25 trustee shall be filled by appointment by the remaining trustees.
8-1 Sec. 326.045. OFFICERS. After the trustees have assumed
8-2 office, the trustees shall elect from among the trustees a
8-3 president, a vice president, a secretary, and any other officers
8-4 the board considers necessary.
8-5 Sec. 326.046. QUORUM; OFFICERS' DUTIES. (a) Three trustees
8-6 constitute a quorum and a concurrence of three is sufficient in any
8-7 matter relating to the business of the district.
8-8 (b) The president presides at all board meetings and is the
8-9 chief executive officer of the district.
8-10 (c) The vice president acts as the president if the
8-11 president is incapacitated or absent from a meeting.
8-12 (d) The secretary acts as the president if both the
8-13 president and vice president are incapacitated or absent from a
8-14 meeting.
8-15 (e) The secretary is responsible for ensuring that all the
8-16 records and books of the district are properly kept.
8-17 (f) The board may appoint the library director or an
8-18 employee as assistant or deputy secretary to assist the secretary.
8-19 The assistant or deputy secretary may certify the authenticity of
8-20 any record of the district.
8-21 Sec. 326.047. BYLAWS. The board may adopt bylaws to govern:
8-22 (1) the time, place, and manner of conducting board
8-23 meetings;
8-24 (2) the powers, duties, and responsibilities of the
8-25 board's officers and employees;
9-1 (3) the disbursement of money by a check, draft, or
9-2 warrant;
9-3 (4) the appointment and authority of board committees;
9-4 (5) the keeping of accounts and other records; and
9-5 (6) any other matter the board considers appropriate.
9-6 Sec. 326.048. MEETINGS AND NOTICE. (a) The board may
9-7 establish regular meetings to conduct district business and may
9-8 hold special meetings at other times as the business of the
9-9 district requires.
9-10 (b) The board shall hold its meetings at a designated
9-11 meeting place.
9-12 Sec. 326.049. MANAGEMENT OF DISTRICT. (a) The board has
9-13 control over and shall manage the affairs of the district.
9-14 (b) The board shall employ any person, firm, partnership, or
9-15 corporation the board considers necessary for conducting the
9-16 affairs of the district.
9-17 (c) The board shall determine the term of office and
9-18 compensation of any employee and consultant by contract or by
9-19 resolution of the board.
9-20 (d) The board may remove any employee.
9-21 Sec. 326.050. LIBRARY DIRECTOR. The board may employ a
9-22 library director to administer the affairs of the district under
9-23 policies established by the board. The board shall set the
9-24 compensation of the library director.
9-25 Sec. 326.051. BOND. The board may require an officer or
10-1 employee to execute a bond payable to the district and conditioned
10-2 on the faithful performance of the person's duties.
10-3 Sec. 326.052. TRUSTEE INTERESTED IN CONTRACT. (a) A
10-4 trustee who is financially interested in a contract with the
10-5 district, or a trustee who is an employee of a person that is
10-6 financially interested in a contract with the district, shall
10-7 disclose that fact to the other trustees. The disclosure shall be
10-8 entered into the minutes of the meeting.
10-9 (b) A trustee who is financially interested in a contract
10-10 may not vote on the acceptance of the contract or participate in
10-11 the discussion on the contract.
10-12 (c) The failure of a trustee to disclose the trustee's
10-13 financial interest in a contract and to have the disclosure entered
10-14 in the minutes invalidates the contract.
10-15 (Sections 326.053-326.060 reserved for expansion
10-16 SUBCHAPTER D. POWERS AND DUTIES
10-17 Sec. 326.061. GENERAL POWERS OF DISTRICT. (a) A district
10-18 has all of the powers, authority, rights, and duties that will
10-19 permit the accomplishment of the purposes for which the district
10-20 was created, including the power to borrow money, purchase,
10-21 construct, acquire, own, operate, maintain, repair, or improve any
10-22 works, materials, supplies, improvements, facilities, equipment,
10-23 vehicles, machinery, or appliances as necessary for the district.
10-24 (b) If a district acquires existing improvements,
10-25 facilities, plants, equipment, or appliances, the district may
11-1 assume the contracts and obligations of the previous owner.
11-2 Sec. 326.062. EMPLOYEE PLANS. (a) The board may provide
11-3 for and administer a workers' compensation, health benefit,
11-4 retirement, disability, or death compensation plan for the
11-5 employees of the district.
11-6 (b) The board may adopt a plan to accomplish the purpose of
11-7 this section.
11-8 (c) The board, after notice and a hearing, may change any
11-9 plan or rule adopted under this section.
11-10 Sec. 326.063. SUITS. (a) A district may sue and be sued in
11-11 any court of this state in the name of the district.
11-12 (b) All courts of this state shall take judicial notice of
11-13 the establishment of a district.
11-14 Sec. 326.064. RULES. (a) The board may adopt reasonable
11-15 rules to accomplish the purposes of the district.
11-16 (b) The board may set monetary charges in reasonable amounts
11-17 for the violation of a district rule.
11-18 (c) The board may exclude from the use of the library a
11-19 person who wilfully violates a rule adopted by the board under this
11-20 section.
11-21 Sec. 326.065. FEES. (a) A district may impose any
11-22 necessary charges or fees for providing a district service.
11-23 (b) A district may discontinue a service to enforce payment
11-24 of an unpaid charge or fee that is owed to the district.
11-25 Sec. 326.066. DEPOSITORY. (a) The board shall designate
12-1 one or more banks inside or outside of the district to serve as the
12-2 depository for district money.
12-3 (b) Tax revenue of the district shall be deposited in a
12-4 depository bank.
12-5 Sec. 326.067. INVESTMENTS. (a) Tax revenue of the district
12-6 may be invested in an obligation that is an authorized investment
12-7 for the state.
12-8 (b) District money other than tax revenue may be invested in
12-9 accordance with policies adopted by the board.
12-10 Sec. 326.068. EXPENDITURES. A district's money may be
12-11 disbursed only by check, draft, order, or another instrument that
12-12 must be signed by one or more officers or employees of the district
12-13 as designated by the board of trustees.
12-14 Sec. 326.069. ACCOUNTS AND RECORDS; AUDITS. (a) The
12-15 district shall keep a complete system of accounts.
12-16 (b) The district shall have an annual audit of the affairs
12-17 of the district performed by an independent certified public
12-18 accountant.
12-19 (c) A signed copy of the audit report shall be delivered to
12-20 each trustee not later than the 120th day after the closing date of
12-21 each fiscal year.
12-22 (d) A copy of the audit report shall be kept on file at the
12-23 district office and shall be made available for inspection by any
12-24 interested person during regular business hours.
12-25 Sec. 326.070. FISCAL YEAR. The fiscal year of the district
13-1 is from January 1 to December 31, unless the board adopts another
13-2 fiscal year.
13-3 Sec. 326.071. REPAYMENT OF ORGANIZATIONAL EXPENSES.
13-4 (a) The district may:
13-5 (1) pay all costs and expenses necessarily incurred in
13-6 the creation and organization of the district; and
13-7 (2) reimburse any entity or person for money advanced
13-8 for the costs and expenses described by Subdivision (1).
13-9 (b) Payments under this section may be made from money
13-10 obtained from taxes or other revenue of the district.
13-11 (Sections 326.072-326.090 reserved for expansion
13-12 SUBCHAPTER E. SALES AND USE TAX
13-13 Sec. 326.091. SALES AND USE TAX. (a) If a district adopts
13-14 the tax, there is imposed a tax on the receipts from the sale at
13-15 retail of taxable items in the district at a rate of up to one-half
13-16 of one percent. There is also imposed an excise tax on the use,
13-17 storage, or other consumption in the district of taxable items
13-18 purchased, leased, or rented from a retailer during the period that
13-19 the tax is effective in the district.
13-20 (b) For purposes of this section, "taxable items" includes
13-21 all items subject to any sales and use tax that is imposed by the
13-22 county if the county has imposed a sales and use tax.
13-23 Sec. 326.092. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
13-24 GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not
13-25 inconsistent with this chapter, governs the imposition,
14-1 computation, administration, and governance of the tax under this
14-2 subchapter, except that Sections 323.101, 323.105, and 323.404
14-3 through 323.408, Tax Code, do not apply.
14-4 (b) Chapter 323, Tax Code, does not apply to the use and
14-5 allocation of revenue under this chapter.
14-6 (c) In applying the procedures under Chapter 323, Tax Code,
14-7 to the district, the district's name shall be substituted for "the
14-8 county" and "board of trustees" is substituted for "commissioners
14-9 court."
14-10 Sec. 326.093. TAX RATES. The permissible rates for a local
14-11 sales and use tax levied under this chapter are one-eighth of one
14-12 percent, one-fourth of one percent, three-eighths of one percent,
14-13 and one-half of one percent.
14-14 Sec. 326.094. ABOLITION OF OR CHANGE IN TAX RATE. (a) The
14-15 board by order may decrease or abolish the local sales and use tax
14-16 rate or may call an election to increase, decrease, or abolish the
14-17 local sales and use tax rate.
14-18 (b) At the election, the ballots shall be printed to permit
14-19 voting for or against the proposition: "The increase (decrease) in
14-20 the local sales and use tax rate of (name of district) to
14-21 (percentage) to be used for the purposes of the district" or "The
14-22 abolition of the district sales and use tax." The increase or
14-23 decrease in the tax rate is effective if it is approved by a
14-24 majority of the votes cast. In calling and holding the election,
14-25 the board shall use the procedure for the confirmation and tax
15-1 election set forth in this chapter.
15-2 Sec. 326.095. USE OF TAX. Taxes collected under this
15-3 subchapter may be used only for the purposes for which the district
15-4 was created.
15-5 Sec. 326.096. LIMITATION ON ADOPTION OF TAX. A district may
15-6 adopt a tax under this subchapter only if as a result of adoption
15-7 of the tax the combined rate of all local sales and use taxes
15-8 imposed by political subdivisions having territory in the district
15-9 will not exceed two percent.
15-10 SECTION 2. This Act takes effect September 1, 1997.
15-11 SECTION 3. The importance of this legislation and the
15-12 crowded condition of the calendars in both houses create an
15-13 emergency and an imperative public necessity that the
15-14 constitutional rule requiring bills to be read on three several
15-15 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1674 passed the Senate on
April 24, 1997, by a viva-voce vote; and that the Senate concurred
in House amendments on May 30, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1674 passed the House, with
amendments, on May 28, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor