By: Barrientos, Wentworth S.B. No. 1674
A BILL TO BE ENTITLED
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 and, if created, must be maintained,
2-9 operated, and financed as provided by this chapter.
2-10 (b) A district created under this chapter is a governmental
2-11 agency, body politic and corporate, and political subdivision of
2-12 the state.
2-13 (Sections 326.005-326.020 reserved for expansion
2-14 SUBCHAPTER B. CREATION OF DISTRICT
2-15 Sec. 326.021. CONFIRMATION ELECTION. A district may be
2-16 created and a sales and use tax may be authorized only if the
2-17 creation is confirmed and the tax is approved by a majority of the
2-18 qualified voters of the district voting at an election held for
2-19 that purpose.
2-20 Sec. 326.022. TERRITORY INCLUDED IN A DISTRICT. (a) A
2-21 district may include any contiguous territory that, on the date on
2-22 which an election is ordered on the question of creating the
2-23 district, is not in a municipality that operates a municipal public
2-24 library.
2-25 (b) The district may include incorporated or unincorporated
3-1 territory.
3-2 (c) A district may not include territory in more than one
3-3 county.
3-4 Sec. 326.023. PETITION FOR CREATION OF DISTRICT.
3-5 (a) Before a district may be created, the commissioners court of
3-6 the county in which the proposed district is located must receive a
3-7 petition signed by at least 100 registered voters who reside in the
3-8 territory of the proposed district.
3-9 (b) The petition must:
3-10 (1) include a name for the proposed district that
3-11 describes the location of the district followed by the words
3-12 "Library District";
3-13 (2) describe the boundaries of the proposed district
3-14 by:
3-15 (A) metes and bounds;
3-16 (B) lot and block number, if there is a recorded
3-17 map or plat and survey of the area; or
3-18 (C) other sufficient legal description;
3-19 (3) include the names of five persons who are willing
3-20 and qualified to serve as the initial board of trustees of the
3-21 district if elected at the election to create the district; and
3-22 (4) include the rate of the sales tax that would be
3-23 imposed by the board of the proposed district on approval of the
3-24 district.
3-25 Sec. 326.024. PAYMENT OF ELECTION COSTS. The commissioners
4-1 court may not order the creation of the district or a confirmation
4-2 election until the petitioners deposit with the county clerk an
4-3 amount of money equal to the cost of conducting the creation
4-4 election of the proposed district, as computed by the county.
4-5 Sec. 326.025. FILING OF PETITION; HEARING; ORDERING
4-6 ELECTION. (a) At the next regular or special session of the
4-7 commissioners court held after the petition is filed with the
4-8 commissioners court, the commissioners court shall consider the
4-9 petition.
4-10 (b) The commissioners court shall grant the petition if the
4-11 court finds that the petition is in proper form and conforms to the
4-12 requirements of Section 326.023 and that the requirement of Section
4-13 326.024 is met.
4-14 (c) If a petition is granted, the commissioners court shall
4-15 order an election to confirm the district's creation and to
4-16 authorize the imposition of a sales and use tax.
4-17 (d) The election shall be held on the first authorized
4-18 uniform election date under Chapter 41, Election Code, that occurs
4-19 on or after the 45th day after the date the election is ordered.
4-20 Sec. 326.026. ELECTION ORDER. In addition to the elements
4-21 required to be included by the Election Code, the election order
4-22 must state:
4-23 (1) the ballot proposition stating the measure to be
4-24 voted on;
4-25 (2) the hours that the polls will be open; and
5-1 (3) the location of each polling place.
5-2 Sec. 326.027. NOTICE. (a) The commissioners court shall
5-3 give notice of the election by publishing a substantial copy of the
5-4 election order once a week for two consecutive weeks in a newspaper
5-5 with general circulation in the county in which the proposed
5-6 district is located.
5-7 (b) The notice must be published not earlier than the 30th
5-8 day or later than the 10th day before election day.
5-9 (c) In addition to the elements required to be included by
5-10 the Election Code, the notice of the election must state the names
5-11 of the five board of trustee candidates.
5-12 Sec. 326.028. BALLOT PROPOSITION. (a) The ballot for the
5-13 election shall be printed to permit voting for or against the
5-14 proposition: "The creation of the __________ (name of district)
5-15 and adoption of a local sales and use tax in the (name of district)
5-16 at the rate of _______ (rate) percent to provide revenue for the
5-17 district."
5-18 (b) The ballot shall be printed to permit voting for or
5-19 against each of the five initial trustees listed in the petition
5-20 submitted to the commissioners court under Section 326.023. A
5-21 blank space must be printed after the name of each candidate, in
5-22 each of which a voter may write in the name of another person for
5-23 trustee.
5-24 (c) A voter may not vote for more than five persons for
5-25 trustee.
6-1 Sec. 326.029. RESULTS OF ELECTION. (a) If a majority of
6-2 the votes received in the election favor the creation of the
6-3 district and the adoption of the sales and use tax, the
6-4 commissioners court shall declare that the district is created and
6-5 shall declare the amount of the local sales and use tax adopted and
6-6 enter the result in its minutes.
6-7 (b) If a majority of the votes received in the election are
6-8 against the creation of the district, the commissioners court shall
6-9 declare the measure defeated and enter the result in its minutes.
6-10 (c) The order canvassing the results of the election must:
6-11 (1) contain a description of the district's
6-12 boundaries; and
6-13 (2) be filed in the deed records of the county in
6-14 which the district is located.
6-15 Sec. 326.030. INITIAL TRUSTEES. (a) The commissioners
6-16 court shall declare the five persons receiving the highest number
6-17 of votes for trustee to be elected as trustees.
6-18 (b) The two trustees elected who received the fewest number
6-19 of votes shall serve until the next board of trustees election
6-20 following the confirmation election, and the three trustees who
6-21 received the highest number of votes shall serve until the second
6-22 succeeding trustee election after the confirmation election.
6-23 (Sections 326.031-326.040 reserved for expansion
6-24 SUBCHAPTER C. DISTRICT ADMINISTRATION
6-25 Sec. 326.041. BOARD OF TRUSTEES. A district shall be
7-1 governed by a board of five trustees.
7-2 Sec. 326.042. REGISTERED VOTER REQUIREMENT. A person may
7-3 not be elected to the board of trustees unless the person is a
7-4 registered voter of the county in which the district is located.
7-5 Sec. 326.043. ELECTION OF TRUSTEES; TERM OF OFFICE.
7-6 (a) Trustees shall serve two-year terms.
7-7 (b) The general election for trustees shall be held annually
7-8 on an authorized uniform election date under Chapter 41, Election
7-9 Code.
7-10 (c) Except for the initial members of the board of trustees,
7-11 a candidate for the office of trustee must file an application for
7-12 a place on the ballot in accordance with Chapter 144, Election
7-13 Code, and other applicable provisions of that code.
7-14 Sec. 326.044. BOARD VACANCY. A vacancy in the office of a
7-15 trustee shall be filled by appointment by the remaining trustees.
7-16 Sec. 326.045. OFFICERS. After the trustees have assumed
7-17 office, the trustees shall elect from among the trustees a
7-18 president, a vice president, a secretary, and any other officers
7-19 the board considers necessary.
7-20 Sec. 326.046. QUORUM; OFFICERS' DUTIES. (a) Three trustees
7-21 constitute a quorum and a concurrence of three is sufficient in any
7-22 matter relating to the business of the district.
7-23 (b) The president presides at all board meetings and is the
7-24 chief executive officer of the district.
7-25 (c) The vice president acts as the president if the
8-1 president is incapacitated or absent from a meeting.
8-2 (d) The secretary acts as the president if both the
8-3 president and vice president are incapacitated or absent from a
8-4 meeting.
8-5 (e) The secretary is responsible for ensuring that all the
8-6 records and books of the district are properly kept.
8-7 (f) The board may appoint the library director or an
8-8 employee as assistant or deputy secretary to assist the secretary.
8-9 The assistant or deputy secretary may certify the authenticity of
8-10 any record of the district.
8-11 Sec. 326.047. BYLAWS. The board may adopt bylaws to govern:
8-12 (1) the time, place, and manner of conducting board
8-13 meetings;
8-14 (2) the powers, duties, and responsibilities of the
8-15 board's officers and employees;
8-16 (3) the disbursement of money by a check, draft, or
8-17 warrant;
8-18 (4) the appointment and authority of board committees;
8-19 (5) the keeping of accounts and other records; and
8-20 (6) any other matter the board considers appropriate.
8-21 Sec. 326.048. MEETINGS AND NOTICE. (a) The board may
8-22 establish regular meetings to conduct district business and may
8-23 hold special meetings at other times as the business of the
8-24 district requires.
8-25 (b) The board shall hold its meetings at a designated
9-1 meeting place.
9-2 Sec. 326.049. MANAGEMENT OF DISTRICT. (a) The board has
9-3 control over and shall manage the affairs of the district.
9-4 (b) The board shall employ any person, firm, partnership, or
9-5 corporation the board considers necessary for conducting the
9-6 affairs of the district.
9-7 (c) The board shall determine the term of office and
9-8 compensation of any employee and consultant by contract or by
9-9 resolution of the board.
9-10 (d) The board may remove any employee.
9-11 Sec. 326.050. LIBRARY DIRECTOR. The board may employ a
9-12 library director to administer the affairs of the district under
9-13 policies established by the board. The board shall set the
9-14 compensation of the library director.
9-15 Sec. 326.051. BOND. The board may require an officer or
9-16 employee to execute a bond payable to the district and conditioned
9-17 on the faithful performance of the person's duties.
9-18 Sec. 326.052. TRUSTEE INTERESTED IN CONTRACT. (a) A
9-19 trustee who is financially interested in a contract with the
9-20 district, or a trustee who is an employee of a person that is
9-21 financially interested in a contract with the district, shall
9-22 disclose that fact to the other trustees. The disclosure shall be
9-23 entered into the minutes of the meeting.
9-24 (b) A trustee who is financially interested in a contract
9-25 may not vote on the acceptance of the contract or participate in
10-1 the discussion on the contract.
10-2 (c) The failure of a trustee to disclose the trustee's
10-3 financial interest in a contract and to have the disclosure entered
10-4 in the minutes invalidates the contract.
10-5 (Sections 326.053-326.060 reserved for expansion
10-6 SUBCHAPTER D. POWERS AND DUTIES
10-7 Sec. 326.061. GENERAL POWERS OF DISTRICT. (a) A district
10-8 has all of the powers, authority, rights, and duties that will
10-9 permit the accomplishment of the purposes for which the district
10-10 was created, including the power to borrow money, purchase,
10-11 construct, acquire, own, operate, maintain, repair, or improve any
10-12 works, materials, supplies, improvements, facilities, equipment,
10-13 vehicles, machinery, or appliances as necessary for the district.
10-14 (b) If a district acquires existing improvements,
10-15 facilities, plants, equipment, or appliances, the district may
10-16 assume the contracts and obligations of the previous owner.
10-17 Sec. 326.062. EMPLOYEE PLANS. (a) The board may provide
10-18 for and administer a workers' compensation, health benefit,
10-19 retirement, disability, or death compensation plan for the
10-20 employees of the district.
10-21 (b) The board may adopt a plan to accomplish the purpose of
10-22 this section.
10-23 (c) The board, after notice and a hearing, may change any
10-24 plan or rule adopted under this section.
10-25 Sec. 326.063. SUITS. (a) A district may sue and be sued in
11-1 any court of this state in the name of the district.
11-2 (b) All courts of this state shall take judicial notice of
11-3 the establishment of a district.
11-4 Sec. 326.064. RULES. (a) The board may adopt reasonable
11-5 rules to accomplish the purposes of the district.
11-6 (b) The board may set monetary charges in reasonable amounts
11-7 for the violation of a district rule.
11-8 (c) The board may exclude from the use of the library a
11-9 person who wilfully violates a rule adopted by the board under this
11-10 section.
11-11 Sec. 326.065. FEES. (a) A district may impose any
11-12 necessary charges or fees for providing a district service.
11-13 (b) A district may discontinue a service to enforce payment
11-14 of an unpaid charge or fee that is owed to the district.
11-15 Sec. 326.066. DEPOSITORY. (a) The board shall designate
11-16 one or more banks inside or outside of the district to serve as the
11-17 depository for district money.
11-18 (b) Tax revenue of the district shall be deposited in a
11-19 depository bank.
11-20 Sec. 326.067. INVESTMENTS. (a) Tax revenue of the district
11-21 may be invested in an obligation that is an authorized investment
11-22 for the state.
11-23 (b) District money other than tax revenue may be invested in
11-24 accordance with policies adopted by the board.
11-25 Sec. 326.068. EXPENDITURES. A district's money may be
12-1 disbursed only by check, draft, order, or another instrument that
12-2 must be signed by one or more officers or employees of the district
12-3 as designated by the board of trustees.
12-4 Sec. 326.069. ACCOUNTS AND RECORDS; AUDITS. (a) The
12-5 district shall keep a complete system of accounts.
12-6 (b) The district shall have an annual audit of the affairs
12-7 of the district performed by an independent certified public
12-8 accountant.
12-9 (c) A signed copy of the audit report shall be delivered to
12-10 each trustee not later than the 120th day after the closing date of
12-11 each fiscal year.
12-12 (d) A copy of the audit report shall be kept on file at the
12-13 district office and shall be made available for inspection by any
12-14 interested person during regular business hours.
12-15 Sec. 326.070. FISCAL YEAR. The fiscal year of the district
12-16 is from January 1 to December 31, unless the board adopts another
12-17 fiscal year.
12-18 Sec. 326.071. REPAYMENT OF ORGANIZATIONAL EXPENSES.
12-19 (a) The district may:
12-20 (1) pay all costs and expenses necessarily incurred in
12-21 the creation and organization of the district; and
12-22 (2) reimburse any entity or person for money advanced
12-23 for the costs and expenses described by Subdivision (1).
12-24 (b) Payments under this section may be made from money
12-25 obtained from taxes or other revenue of the district.
13-1 (Sections 326.072-326.090 reserved for expansion
13-2 SUBCHAPTER E. SALES AND USE TAX
13-3 Sec. 326.091. SALES AND USE TAX. (a) If a district adopts
13-4 the tax, there is imposed a tax on the receipts from the sale at
13-5 retail of taxable items in the district at a rate of up to one-half
13-6 of one percent. There is also imposed an excise tax on the use,
13-7 storage, or other consumption in the district of taxable items
13-8 purchased, leased, or rented from a retailer during the period that
13-9 the tax is effective in the district.
13-10 (b) For purposes of this section, "taxable items" includes
13-11 all items subject to any sales and use tax that is imposed by the
13-12 county if the county has imposed a sales and use tax.
13-13 Sec. 326.092. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
13-14 GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not
13-15 inconsistent with this chapter, governs the imposition,
13-16 computation, administration, and governance of the tax under this
13-17 subchapter, except that Sections 323.101, 323.105, and 323.404
13-18 through 323.408, Tax Code, do not apply.
13-19 (b) Chapter 323, Tax Code, does not apply to the use and
13-20 allocation of revenue under this chapter.
13-21 (c) In applying the procedures under Chapter 323, Tax Code,
13-22 to the district, the district's name shall be substituted for "the
13-23 county" and "board of trustees" is substituted for "commissioners
13-24 court."
13-25 Sec. 326.093. TAX RATES. The permissible rates for a local
14-1 sales and use tax levied under this chapter are one-eighth of one
14-2 percent, one-fourth of one percent, three-eighths of one percent,
14-3 and one-half of one percent.
14-4 Sec. 326.094. ABOLITION OF OR CHANGE IN TAX RATE. (a) The
14-5 board by order may decrease or abolish the local sales and use tax
14-6 rate or may call an election to increase, decrease, or abolish the
14-7 local sales and use tax rate.
14-8 (b) At the election, the ballots shall be printed to permit
14-9 voting for or against the proposition: "The increase (decrease) in
14-10 the local sales and use tax rate of (name of district) to
14-11 (percentage) to be used for the purposes of the district" or "The
14-12 abolition of the district sales and use tax." The increase or
14-13 decrease in the tax rate is effective if it is approved by a
14-14 majority of the votes cast. In calling and holding the election,
14-15 the board shall use the procedure for the confirmation and tax
14-16 election set forth in this chapter.
14-17 Sec. 326.095. USE OF TAX. Taxes collected under this
14-18 subchapter may be used only for the purposes for which the district
14-19 was created.
14-20 Sec. 326.096. LIMITATION ON ADOPTION OF TAX. A district may
14-21 adopt a tax under this subchapter only if as a result of adoption
14-22 of the tax the combined rate of all local sales and use taxes
14-23 imposed by political subdivisions having territory in the district
14-24 will not exceed two percent.
14-25 SECTION 2. This Act takes effect September 1, 1997.
15-1 SECTION 3. The importance of this legislation and the
15-2 crowded condition of the calendars in both houses create an
15-3 emergency and an imperative public necessity that the
15-4 constitutional rule requiring bills to be read on three several
15-5 days in each house be suspended, and this rule is hereby suspended.
15-6 COMMITTEE AMENDMENT NO. 1
15-7 Amend SB 1674 as follows:
15-8 (1) On page 2, line 8, add the following phrase between
15-9 "created" and "and:" in a county with a population or more than
15-10 500,000
15-11 (2) On page 3, lines 7 and 8, strike "100 registered voters
15-12 who reside in the territory of the proposed district" and
15-13 substitute "5 percent of the number of voters in the territory of
15-14 the proposed district who voted in the most recent gubernatorial
15-15 election".
15-16 (3) On page 7, line 4, add the following phrase before the
15-17 word "registered:" resident of the district and a.
15-18 Hunter