1-1     By:  Carter (Senate Sponsor - Moncrief)                H.B. No. 501
 1-2           (In the Senate - Received from the House April 9, 2001;
 1-3     April 9, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 9, 2001, reported favorably by the
 1-5     following vote:  Yeas 6, Nays 0; May 9, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the board of managers and the budget of certain 9-1-1
 1-9     service districts.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Sections 772.206(a), (c), and (d), Health and
1-12     Safety Code, are amended to read as follows:
1-13           (a)  A district is governed by a board of managers consisting
1-14     of:
1-15                 (1)  one member appointed by the commissioners court of
1-16     the county for which the district is established;
1-17                 (2)  two members appointed by the governing body of the
1-18     most populous municipality located wholly or partly [entirely] in
1-19     the county for which the district is established, if that
1-20     municipality has a population of more than 150,000, or, if that
1-21     municipality has a population of 150,000 or less, one member
1-22     appointed by the governing body;
1-23                 (3)  one member appointed by the governing body of the
1-24     second most populous municipality located wholly or partly
1-25     [entirely] in the county for which the district is established;
1-26                 (4)  one member appointed by the governing body of the
1-27     third most populous municipality located wholly or partly in the
1-28     county for which the district is established [as provided by this
1-29     section to represent the other municipalities located in whole or
1-30     part in the district]; [and]
1-31                 (5)  one member appointed by the principal service
1-32     supplier;
1-33                 (6)  one member appointed by the governing body of the
1-34     most populous municipality that is a member of the district and is
1-35     located wholly outside the county for which the district is
1-36     established; and
1-37                 (7)  one member appointed as provided by this section
1-38     to represent the other municipalities located wholly or partly in
1-39     the district.
1-40           (c)  The board member appointed under Subsection (a)(7)
1-41     [(a)(4)] is appointed by the mayor's council established to
1-42     administer urban development block grant funds, if one exists in
1-43     the district.  Otherwise, the member is appointed by the other
1-44     members of the board on the advice and recommendation of the
1-45     governing bodies of all the municipalities represented by the
1-46     member.  The governing bodies of those municipalities, by agreement
1-47     of their presiding officers, shall set the time and place to meet
1-48     and the procedures for selecting the board member.
1-49           (d)  Board members are appointed for staggered terms of two
1-50     years, with as near as possible to one-half of the [three] members'
1-51     terms expiring each year.
1-52           SECTION 2.  Section 772.209, Health and Safety Code, is
1-53     amended to read as follows:
1-54           Sec. 772.209.  BUDGET; ANNUAL REPORT; AUDIT.  (a)  The
1-55     director shall prepare under the direction of the board an annual
1-56     budget for the district.  To be effective, the budget must:
1-57                 (1)  be approved by the board;
1-58                 (2)  be presented to [and approved by] the
1-59     commissioners court of the county in which the majority of the
1-60     district is located;
1-61                 (3)  be presented to [and approved by] the governing
1-62     body of each [the most populous] municipality eligible to appoint a
1-63     member of the board of managers under Sections 772.206(a)(2)-(4)
1-64     and (6) [located entirely in the county for which the district is
 2-1     established, if that municipality has a population of more than
 2-2     150,000];
 2-3                 (4)  be presented to [and approved by] the governing
 2-4     body of [the second most populous municipality located entirely
 2-5     within the county for which the district is established; and]
 2-6                 [(5)  be presented to the governing body of] each other
 2-7     participating jurisdiction [and approved by those jurisdictions] as
 2-8     provided by Subsection (b); and
 2-9                 (5)  subject to Subsection (c), be approved by a
2-10     majority of the entities to which the budget must be presented
2-11     under Subdivisions (2) through (4).
2-12           (b)  For purposes of Subsection (a)(4) [(a)(5)], the proposed
2-13     budget must be presented to:
2-14                 (1)  [approved by] the mayor's council established to
2-15     administer urban development block grant funds, if one exists in
2-16     the district; or
2-17                 (2)  if a mayor's council does not exist in the
2-18     district, [.  Otherwise, the proposed budget must be approved by a
2-19     majority of] the governing bodies of the other participating
2-20     jurisdictions.
2-21           (c)  For the purpose of determining approval by a majority
2-22     under Subsection (a)(5) if the budget is required to be presented
2-23     under Subsection (b)(2), the other participating jurisdictions are
2-24     considered to be acting jointly as one entity.
2-25           (d)  A revision of the budget must be approved in the same
2-26     manner as the budget.
2-27           (e) [(d)]  As soon as practicable after the end of each
2-28     district fiscal year, the director shall prepare and present to the
2-29     board and to each participating jurisdiction in writing a sworn
2-30     statement of all money received by the district and how the money
2-31     was used during the preceding fiscal year.  The report must state
2-32     in detail the operations of the district for the fiscal year
2-33     covered by the report.
2-34           (f) [(e)]  The board shall have an independent financial
2-35     audit of the district performed annually.
2-36           SECTION 3.  Notwithstanding Section 772.206(d), Health and
2-37     Safety Code, as amended by this Act, the first board member
2-38     appointed under Section 772.206(a)(4), Health and Safety Code, as
2-39     amended by this Act, shall be appointed to a one-year term, and the
2-40     first board member appointed under Section 772.206(a)(6), Health
2-41     and Safety Code, as added by this Act, shall be appointed to a
2-42     two-year term.  Thereafter, each board member appointed under
2-43     Section 772.206, Health and Safety Code, serves a two-year term.
2-44           SECTION 4.  This Act takes effect September 1, 2001.
2-45                                  * * * * *