S.B. No. 1205
relating to allowing the creation of multi-jurisdictional library
districts; authorizing taxes and bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. FINDINGS. The legislature finds that:
(1) the quality of life and general literacy of
children and other residents of this state are enhanced by
convenient access to a public library and the valuable resources a
public library provides; and
(2) the creation of library districts in this state
would allow for the efficient operation and most equitable use of
available public money and therefore make valuable educational,
information, and literacy resources more readily available to the
entire region of the district.
SECTION 2. MULTI-JURISDICTIONAL LIBRARY DISTRICTS.
Subtitle C, Title 10, Local Government Code, is amended by adding
Chapter 336 to read as follows:
CHAPTER 336. MULTI-JURISDICTIONAL LIBRARY DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 336.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of trustees.
(2) "District" means a multi-jurisdictional library
district created under this chapter.
(3) "Executive director" means an executive director
employed under Section 336.103.
(4) "Lead governmental entity" means the county or
municipality that proposes to create a district under this chapter.
Sec. 336.002. NATURE OF DISTRICT. A district created under
this chapter is a special district and a political subdivision of
Sec. 336.003. MULTI-JURISDICTIONAL PUBLIC LIBRARY. (a) A
district created under this chapter shall establish, equip,
support, operate, and maintain one or more public libraries for the
dissemination of educational programs and general information
relating to the arts, sciences, literature, and other subject areas
of interest to the public.
(b) Each public library created under this chapter must be
accredited by and meet the standards for basic public library
services established by the Texas State Library and Archives
(c) A library created under this chapter must be open to all
members of the public under identical conditions.
[Sections 336.004-336.020 reserved for expansion]
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 336.021. ROLE OF LEAD GOVERNMENTAL ENTITY. (a) A
district may be created by a county or municipality that, by
resolution, assumes the role of a lead governmental entity under
this chapter and proposes the creation of a district for specific
contiguous counties and municipalities that by resolution agree to
have their territory in the district.
(b) The governing body of a county or municipality may adopt
a resolution under Subsection (a) on its own motion or after a
hearing held on a petition requesting the creation of a district.
(c) The lead governmental entity shall provide over 50
percent of the initial assets to the district.
Sec. 336.022. TERRITORY INCLUDED IN DISTRICT. (a) The
lead governmental entity shall describe the initial district
territory, which must include all territory of each municipality or
county that agrees to have its territory in the district under
(b) The district may include incorporated or unincorporated
territory and may include any contiguous territory in one or more
counties that agree to have the counties' territory in the district
under Section 336.021.
(c) If the boundaries of the proposed district include any
territory that, on the date on which an election is ordered on the
question of creating the district, is part of a municipality that
operates a municipal public library, the governing body of that
municipality must consent by resolution to allow the inclusion of
that municipal territory in the proposed district.
Sec. 336.023. CONFIRMATION ELECTION. A district created
under this chapter may call an election for the purpose of approving
a sales tax or an ad valorem tax, or both, on property in the
Sec. 336.024. PAYMENT OF CONFIRMATION ELECTION COSTS. The
lead governmental entity may not order the confirmation election
until the entity deposits with the county clerk an amount of money
equal to the cost of conducting the confirmation election, as
computed by the county clerk.
Sec. 336.025. ORDERING CONFIRMATION ELECTION. (a) At a
regular or special meeting of the governing body of the lead
governmental entity held to discuss the creation of a district, the
governing body shall determine whether the district will be
supported by a sales tax or by an ad valorem tax, or both, on
property located in the proposed district.
(b) The governing body may order a confirmation election to
confirm the imposition of a sales tax or of an ad valorem tax on
property located in the proposed district.
(c) The election ordered shall be held on an authorized
uniform election date under Chapter 41, Election Code, that occurs
on or after the 45th day after the date the election is ordered.
(d) In addition to the elements required to be included by
the Election Code, the election order must state:
(1) the ballot proposition stating the measure to be
(2) the hours that the polls will be open; and
(3) the location of each polling place.
Sec. 336.026. NOTICE OF CONFIRMATION ELECTION. (a) The
lead governmental entity shall give notice of the election by
publishing a substantial copy of the election order once a week for
two consecutive weeks in a newspaper with general circulation in
the county in which the proposed district is located.
(b) The notice must be published not earlier than the 30th
day and not later than the 10th day before election day.
Sec. 336.027. BALLOT PROPOSITION. (a) If the governing
body of the lead governmental entity determines under Section
336.025 that the district should be supported by a sales tax, the
ballot for the election shall be printed to permit voting for or
against the proposition: "The creation of a multi-jurisdictional
library district to be known as the __________ (name of district)
and adoption of a sales tax in the __________ (name of district) at
the rate of _______ (rate of tax) percent."
(b) If the governing body of the lead governmental entity
determines under Section 336.025 that the district should be
supported by an ad valorem tax, the ballot for the election shall be
printed to permit voting for or against the proposition: "The
creation of a multi-jurisdictional library district to be known as
the __________ (name of district) and adoption of an ad valorem tax
in the __________ (name of district) at a rate up to _______ (rate
of tax) cents per $100 valuation of property to provide revenue for
Sec. 336.028. RESULTS OF CONFIRMATION ELECTION. (a) If a
majority of the voters voting in the election favor the creation of
the district and the adoption of a sales tax or of an ad valorem tax,
the lead governmental entity shall by resolution or order declare
that the district is created and shall declare the rate of the sales
tax or the amount of the ad valorem tax adopted and enter the result
in its minutes.
(b) If a majority of the voters voting in the election are
against the creation of the district, the lead governmental entity
shall declare the measure defeated and enter the result in its
(c) An order under Subsection (a) must:
(1) contain a description of the district's boundaries
and a map of the district;
(2) state the election date; and
(3) state the total number of votes cast for and
against the ballot proposition.
(d) The lead governmental entity must file in the deed
records of the county in which the district is located a resolution
or order issued under Subsection (a).
Sec. 336.029. INITIAL BOARD AND PRESIDING OFFICER.
(a) Appointments to the initial board are made as provided by
Subchapter C, except that the initial trustees shall agree to
stagger their terms, with four members' terms expiring in two years
and three members' terms expiring in one year. If the trustees
cannot agree on the initial staggering, the trustees shall draw
lots to determine the staggering.
(b) The lead governmental entity shall appoint the board's
initial presiding officer to serve a two-year term in that
capacity. The requirement of Section 336.056 that the board of
trustees elect the presiding officer does not apply to the
presiding officer appointed under this subsection.
Sec. 336.030. REPAYMENT OF ORGANIZATIONAL EXPENSES.
(a) The district may:
(1) pay all costs and expenses necessarily incurred in
the creation and organization of the district; and
(2) reimburse any person for money advanced for the
costs and expenses described by Subdivision (1).
(b) Payments under this section may be made from money
obtained from taxes or other district revenue.
[Sections 336.031-336.050 reserved for expansion]
SUBCHAPTER C. BOARD OF TRUSTEES
Sec. 336.051. GOVERNING BODY. A district is governed by a
seven-member board of trustees. The board has control over and
shall manage the affairs of the district.
Sec. 336.052. APPOINTMENT. (a) The lead governmental
entity shall appoint four trustees to the board.
(b) The most populous county in which the district is
located shall appoint three trustees to the board, unless the
county is the lead governmental entity. If the county is the lead
governmental entity, the most populous municipality in the county
shall appoint three trustees.
Sec. 336.053. ELIGIBILITY FOR APPOINTMENT. A person is
eligible for appointment to the board if the person:
(1) resides in the district;
(2) is registered to vote in a county in which the
district is located; and
(3) has recognized expertise in:
(A) library services;
(C) information technology;
(D) local or Texas history; or
(E) business management.
Sec. 336.054. TERMS. (a) Trustees serve staggered
(b) A trustee may not serve more than two consecutive terms
or more than four terms.
(c) A trustee who has served two consecutive terms but fewer
than four terms is eligible for appointment to a new term on the
date one year after the date on which the trustee's former term
Sec. 336.055. VACANCY. A vacancy on the board shall be
filled by appointment for the remainder of the unexpired term by the
governmental entity that appointed the vacating member.
Sec. 336.056. OFFICERS. (a) The board shall elect a
trustee to serve as the board's presiding officer. The presiding
officer presides at all board meetings and is the chief executive
officer of the district.
(b) The board shall elect from among its members a vice
presiding officer, a secretary, and any other officers the board
(c) The vice presiding officer acts as the presiding officer
if the presiding officer is incapacitated or absent from a meeting.
(d) The secretary acts as the presiding officer if both the
presiding officer and vice presiding officer are incapacitated or
absent from a meeting.
Sec. 336.057. MEETINGS AND NOTICE. (a) The board may
establish regular meetings to conduct district business and may
hold special meetings at other times as the business of the district
(b) The board shall hold its meetings at a designated
Sec. 336.058. CONFLICT OF INTEREST IN CONTRACT. (a) For
purposes of this section, a trustee who is an employee of, or a
trustee related within the second degree by affinity or
consanguinity as determined under Subchapter B, Chapter 573,
Government Code, to a person who is financially interested in a
contract is considered to be financially interested in the
(b) A trustee who is financially interested in a contract
may not vote on the acceptance of the contract or participate in the
discussion on the contract.
(c) A trustee who is financially interested in a contract
with the district shall disclose that fact to the other trustees.
The disclosure shall be entered into the minutes of the meeting.
(d) The failure of a trustee to disclose the trustee's
financial interest in a contract and to have the disclosure entered
in the minutes invalidates the contract.
[Sections 336.059-336.100 reserved for expansion]
SUBCHAPTER D. OTHER ADMINISTRATIVE PROVISIONS
Sec. 336.101. BYLAWS. The board may adopt bylaws to govern:
(1) the time, place, and manner of conducting board
(2) the powers, duties, and responsibilities of the
board's officers and employees;
(3) the disbursement of money by a check, draft, or
(4) the appointment and authority of board committees;
(5) the keeping of accounts and other records; and
(6) any other matter the board considers appropriate.
Sec. 336.102. EMPLOYEES. (a) The board may employ any
person the board considers necessary for conducting the district's
(b) The board may remove any employee.
Sec. 336.103. EXECUTIVE DIRECTOR. (a) The board may
employ an executive director to administer the affairs of the
district under policies and requirements established by the board.
(b) The board shall set the compensation of the executive
(c) The board may delegate to the executive director the
board's authority to hire, establish the compensation of, review
the performance of, discipline, or remove a district employee.
Sec. 336.104. QUALIFICATIONS OF EXECUTIVE DIRECTOR OR
LIBRARY DIRECTOR. The board shall ensure that the executive
director or a subordinate library director has all necessary
qualifications to oversee library services in the district. The
board shall require the executive director or a subordinate library
director to meet the qualification requirements for a county
librarian under Section 441.007, Government Code, and under any
rules adopted by the Texas State Library and Archives Commission
under that section.
Sec. 336.105. BOND. The board may require an officer or
employee to execute a bond payable to the district and conditioned
on the faithful performance of the person's duties.
Sec. 336.106. EMPLOYEE PLANS. (a) The board may provide
for and administer a workers' compensation, health benefit,
retirement, disability, or death compensation plan for district
(b) The board may adopt a plan to accomplish the purpose of
(c) The board, after notice and a hearing, may change any
plan or rule adopted under this section.
Sec. 336.107. RECORDS; SECRETARY. (a) The secretary is
responsible for ensuring that all district books and other records
are properly maintained.
(b) The board may appoint the executive director or an
employee as assistant or deputy secretary to assist the secretary
in performing the secretary's duties under this section. The
assistant or deputy secretary may certify the authenticity of any
[Sections 336.108-336.150 reserved for expansion]
SUBCHAPTER E. POWERS AND DUTIES
Sec. 336.151. GENERAL POWERS OF DISTRICT. A district has
all authority necessary to accomplish district purposes.
Sec. 336.152. RULES; VIOLATION OF RULES. (a) The board
may adopt reasonable rules to accomplish district purposes.
(b) The board may set monetary charges in reasonable amounts
for the violation of a district rule.
(c) The board may exclude from the use of a public library a
person who intentionally violates a rule adopted by the board under
Sec. 336.153. LOCATION OF PUBLIC LIBRARY FACILITIES. A
district may locate a public library facility at any place in the
district, including the territory of a political subdivision within
Sec. 336.154. CONTRACTS. A district may contract with any
person for any district purpose.
Sec. 336.155. AGREEMENTS WITH OTHER POLITICAL
SUBDIVISIONS. (a) A district may contract with a municipality,
county, or other political subdivision for the district to provide
public library services outside the district.
(b) A district may enter into one or more agreements with
any municipality included in the area of the district for the
acquisition or operation of the municipality's library facilities.
Sec. 336.156. PROPERTY AND EQUIPMENT. (a) A district may
construct, acquire, own, lease, operate, maintain, repair, or
improve any land, works, materials, supplies, improvements,
facilities, equipment, vehicles, machinery, appliances, or other
property as necessary.
(b) If a district acquires property of any kind related to
the operation of a public library, the district may assume the
contracts and obligations of the previous owner.
(c) A district may hold, use, sell, lease, dispose of, and
acquire, by any means, property and licenses, patents, rights, and
other interests necessary, convenient, or useful to the exercise of
any district power.
Sec. 336.157. SURPLUS PROPERTY. A district may sell,
lease, or dispose of in any other manner and at any time:
(1) any right, interest, or property of the district
that is not needed for, or, if a lease, is inconsistent with, the
efficient operation and maintenance of a public library; or
(2) surplus materials or other property that is not
needed for a district purpose.
Sec. 336.158. SUITS. (a) A district may sue and be sued in
any court of this state in the name of the district.
(b) A court of this state shall take judicial notice of the
establishment of a district.
(c) A district is not required to give security for costs in
a suit or to give a supersedeas or cost bond in an appeal of a
Sec. 336.159. EXPANSION OF DISTRICT. (a) The district may
expand to include additional territory if the commissioners court
of the county in which the district is located holds an election for
that purpose in the territory to be added to the district.
(b) If a majority of the voters voting at the expansion
election approve the expansion of the district, the territory of
the district is expanded.
[Sections 336.160-336.200 reserved for expansion]
SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS
Sec. 336.201. BORROWING. A district may borrow money.
Sec. 336.202. FEES; GENERAL. (a) A district may impose
any necessary charges or fee for providing a district service.
(b) A district may discontinue a service to enforce payment
of an unpaid charge or fee that is owed to the district.
Sec. 336.203. LIBRARY FEES. A library created under this
chapter may charge reasonable fees to remove certain materials from
the library or for other services provided by the library.
Sec. 336.204. DEPOSITORY. (a) The board shall designate
one or more banks inside or outside of the district to serve as the
depository for district money.
(b) The district shall deposit district tax revenue in a
Sec. 336.205. EXPENDITURES. A district may disburse
district money only by check, draft, money order, or another
instrument that must be signed by one or more officers or employees
of the district as designated by the board.
Sec. 336.206. ACCOUNTS AND RECORDS; AUDITS. (a) A
district shall keep a complete system of accounts.
(b) The district shall have an annual audit of the district
affairs performed by an independent certified public accountant.
(c) A signed copy of the audit report shall be delivered to
each trustee not later than the 120th day after the closing date of
each fiscal year.
(d) A copy of the audit report shall be kept on file at the
district office and shall be made available for inspection by any
interested person during regular business hours.
Sec. 336.207. FISCAL YEAR. The fiscal year of the district
is from October 1 to September 30, unless the board adopts another
Sec. 336.208. GRANTS AND DONATIONS. A district may accept
and administer a grant or donation from any source for any district
[Sections 336.209-336.250 reserved for expansion]
SUBCHAPTER G. TAXES
Sec. 336.251. AD VALOREM TAX ASSESSMENT AND COLLECTION.
(a) A district may impose an ad valorem tax.
(b) If the district imposes an ad valorem tax, the board
shall have the taxable property in its district assessed for ad
valorem taxation and the ad valorem taxes in the district
collected, in accordance with any one of the methods set forth in
this section, and any method adopted remains in effect until
changed by the board.
(c) The board may have the taxable property in its district
assessed or its taxes collected, wholly or partly, by the tax
assessors or tax collectors of any county, municipality, taxing
district, or other governmental entity in which all or any part of
the district is located. The tax assessors or tax collectors of a
governmental entity, on the request of the board, shall assess and
collect the taxes of the district in the manner prescribed in the
Property Tax Code. Tax assessors and tax collectors shall receive
compensation in an amount agreed on between the appropriate
parties, but not to exceed two percent of the ad valorem taxes
Sec. 336.252. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
GOVERNANCE OF SALES TAX. (a) A district may impose a sales and use
(b) Chapter 323, Tax Code, to the extent not inconsistent
with this chapter, governs the imposition, computation,
administration, and governance of the sales and use tax under this
subchapter, except that Sections 323.101, 323.105, 323.404, and
323.406-323.408, Tax Code, do not apply.
(c) Chapter 323, Tax Code, does not apply to the use and
allocation of revenue under this chapter.
(d) In applying the procedures under Chapter 323, Tax Code,
to the district, the district's name shall be substituted for "the
county," and "board of trustees" is substituted for "commissioners
Sec. 336.253. SALES AND USE TAX RATES. The permissible
rates for a sales and use tax imposed under this chapter are
one-eighth of one percent, one-fourth of one percent, three-eighths
of one percent, and one-half of one percent.
Sec. 336.254. ABOLITION OF OR CHANGE IN AD VALOREM TAX RATE.
(a) The board by order may decrease or abolish the ad valorem tax
rate or may call an election to increase, decrease, or abolish the
ad valorem tax rate.
(b) At the election, the ballot shall be printed to permit
voting for or against the proposition: "The increase (decrease) in
the ad valorem tax rate of _________ (name of district) to a rate up
to ___________ (rate of tax) cents per $100 valuation of taxable
property to be used for district purposes" or "The abolition of the
district ad valorem tax." The increase or decrease in the tax rate,
or the abolition of the tax, is effective if it is approved by a
majority of the votes cast.
(c) In calling and holding the election, the board shall use
the procedure for the confirmation and tax election in Subchapter
Sec. 336.255. USE OF TAX. A tax collected under this
subchapter may be used only for a district purpose and may be
pledged as collateral for borrowing money to further those
[Sections 336.256-336.300 reserved for expansion]
SUBCHAPTER H. BONDS
Sec. 336.301. DEFINITION. In this subchapter, "bond"
includes a note.
Sec. 336.302. GENERAL POWER TO ISSUE BONDS. (a) A
district may issue bonds at any time and for any amount it considers
necessary or appropriate to acquire, construct, equip, or improve
(b) The board by resolution may authorize the issuance of
bonds payable solely from revenue.
Sec. 336.303. LEAD GOVERNMENTAL ENTITY'S CONSENT REQUIRED.
The district may not issue bonds under this subchapter unless the
lead governmental entity's governing body by resolution consents to
Sec. 336.304. SHORT-TERM BONDS. (a) The board by
resolution may issue bonds that are secured by revenue or taxes of
the district if the bonds:
(1) have a term of not more than 12 months; and
(2) are payable only from revenue or taxes received on
or after the date of their issuance and before the end of the fiscal
year following the fiscal year in which the bonds are issued.
(b) Approval by the attorney general or registration with
the comptroller is not required for a bond issued under this
(c) An election is not required to issue bonds under this
Sec. 336.305. ELECTION REQUIRED FOR CERTAIN BONDS SECURED
BY TAXES. Except for short-term bonds issued under Section
336.304, bonds payable wholly or partly from taxes may not be issued
unless authorized by a majority of the votes received in an election
held for that purpose.
Sec. 336.306. SECURITY PLEDGED. (a) To secure the payment
of a district's bonds, the district may:
(1) pledge all or part of revenue realized from any tax
that the district may impose;
(2) pledge all or part of revenue from library
(3) mortgage all or part of the district's facilities,
including any part of the facilities subsequently acquired.
(b) A district may, subject to the terms of the bond
indenture or the resolution authorizing the issuance of the bonds,
secure payment of district bonds by encumbering a separate item of
the district facilities and may acquire, use, hold, or contract for
the property by lease, chattel mortgage, or other conditional sale.
(c) This subchapter does not prohibit a district from
encumbering one or more library facilities to purchase, construct,
or improve one or more other district facilities.
Sec. 336.307. LIEN ON REVENUE. The expense of operation and
maintenance of library facilities, including salaries, labor,
materials, and repairs necessary to provide efficient service, and
every other proper item of expense are a first lien and charge
against the revenue of a district encumbered under this chapter.
Sec. 336.308. EXCHANGE OF BONDS FOR EXISTING LIBRARY
FACILITIES. A district's revenue bonds may be exchanged, in lieu of
cash, for the property of all or part of existing library facilities
to be acquired by the district.
Sec. 336.309. GOVERNMENTAL ENTITIES NOT RESPONSIBLE FOR
DISTRICT OBLIGATIONS. A governmental entity, other than the
district, is not required to pay a bond or other district
[Sections 336.310-336.350 reserved for expansion]
SUBCHAPTER I. DISSOLUTION
Sec. 336.351. NO DISSOLUTION. A district created under
this chapter may not be dissolved.
SECTION 3. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2005.
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1205 passed the Senate on
April 26, 2005, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 26, 2005, by the
following vote: Yeas 31, Nays 0.
Secretary of the Senate
I hereby certify that S.B. No. 1205 passed the House, with
amendment, on May 20, 2005, by the following vote: Yeas 139,
Nays 0, two present not voting.
Chief Clerk of the House