By Carter                                              H.B. No. 501
         77R3054 ATP-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the board of managers and the budget of certain 9-1-1
 1-3     service districts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Sections 772.206(a), (c), and (d), Health and
 1-6     Safety Code, are amended to read as follows:
 1-7           (a)  A district is governed by a board of managers consisting
 1-8     of:
 1-9                 (1)  one member appointed by the commissioners court of
1-10     the county for which the district is established;
1-11                 (2)  two members appointed by the governing body of the
1-12     most populous municipality located wholly or partly [entirely] in
1-13     the county for which the district is established, if that
1-14     municipality has a population of more than 150,000, or, if that
1-15     municipality has a population of 150,000 or less, one member
1-16     appointed by the governing body;
1-17                 (3)  one member appointed by the governing body of the
1-18     second most populous municipality located wholly or partly
1-19     [entirely] in the county for which the district is established;
1-20                 (4)  one member appointed by the governing body of the
1-21     third most populous municipality located wholly or partly in the
1-22     county for which the district is established [as provided by this
1-23     section to represent the other municipalities located in whole or
1-24     part in the district]; [and]
 2-1                 (5)  one member appointed by the principal service
 2-2     supplier;
 2-3                 (6)  one member appointed by the governing body of the
 2-4     most populous municipality that is a member of the district and is
 2-5     located wholly outside the county for which the district is
 2-6     established; and
 2-7                 (7)  one member appointed as provided by this section
 2-8     to represent the other municipalities located wholly or partly in
 2-9     the district.
2-10           (c)  The board member appointed under Subsection (a)(7)
2-11     [(a)(4)] is appointed by the mayor's council established to
2-12     administer urban development block grant funds, if one exists in
2-13     the district.  Otherwise, the member is appointed by the other
2-14     members of the board on the advice and recommendation of the
2-15     governing bodies of all the municipalities represented by the
2-16     member.  The governing bodies of those municipalities, by agreement
2-17     of their presiding officers, shall set the time and place to meet
2-18     and the procedures for selecting the board member.
2-19           (d)  Board members are appointed for staggered terms of two
2-20     years, with as near as possible to one-half of the [three] members'
2-21     terms expiring each year.
2-22           SECTION 2.  Section 772.209, Health and Safety Code, is
2-23     amended to read as follows:
2-24           Sec. 772.209.  BUDGET; ANNUAL REPORT; AUDIT. (a)  The
2-25     director shall prepare under the direction of the board an annual
2-26     budget for the district.  To be effective, the budget must:
2-27                 (1)  be approved by the board;
 3-1                 (2)  be presented to [and approved by] the
 3-2     commissioners court of the county in which the majority of the
 3-3     district is located;
 3-4                 (3)  be presented to [and approved by] the governing
 3-5     body of each [the most populous] municipality eligible to appoint a
 3-6     member of the board of managers under Section 772.206(a)(2)-(4) and
 3-7     (6) [located entirely in the county for which the district is
 3-8     established, if that municipality has a population of more than
 3-9     150,000];
3-10                 (4)  be presented to [and approved by] the governing
3-11     body of [the second most populous municipality located entirely
3-12     within the county for which the district is established; and]
3-13                 [(5)  be presented to the governing body of] each other
3-14     participating jurisdiction [and approved by those jurisdictions] as
3-15     provided by Subsection (b); and
3-16                 (5)  subject to Subsection (d), be approved by a
3-17     majority of the entities to which the budget must be presented
3-18     under Subdivisions (2) through (4).
3-19           (b)  For purposes of Subsection (a)(4) [(a)(5)], the proposed
3-20     budget must be presented to:
3-21                 (1)  [approved by] the mayor's council established to
3-22     administer urban development block grant funds, if one exists in
3-23     the district; or
3-24                 (2)  if a mayor's council does not exist in the
3-25     district, [.  Otherwise, the proposed budget must be approved by a
3-26     majority of] the governing bodies of the other participating
3-27     jurisdictions.
 4-1           (c)  For the purpose of determining approval by a majority
 4-2     under Subsection (a)(5) if the budget is required to be presented
 4-3     under Subsection (b)(2), the other participating jurisdictions are
 4-4     considered to be acting jointly as one entity.
 4-5           (d) [(c)]  A revision of the budget must be approved in the
 4-6     same manner as the budget.
 4-7           (e) [(d)]  As soon as practicable after the end of each
 4-8     district fiscal year, the director shall prepare and present to the
 4-9     board and to each participating jurisdiction in writing a sworn
4-10     statement of all money received by the district and how the money
4-11     was used during the preceding fiscal year.  The report must state
4-12     in detail the operations of the district for the fiscal year
4-13     covered by the report.
4-14           (f) [(e)]  The board shall have an independent financial
4-15     audit of the district performed annually.
4-16           SECTION 3.  Notwithstanding Section 772.206(d) as amended by
4-17     this Act, the first board member appointed under Section
4-18     772.206(a)(4), Health and Safety Code, as amended by this Act,
4-19     shall be appointed to a one-year term and the first board member
4-20     appointed under Section 772.206(a)(6) shall be appointed to a
4-21     two-year term.  Thereafter, each board member appointed under
4-22     Section 772.206, Health and Safety Code, serves a two-year term.
4-23           SECTION 4.  This Act takes effect September 1, 2001.