This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.


                                                                                
79R17349 E


By:  Madla                                                        S.B. No. 1205

Substitute the following for S.B. No. 1205:                                   

By:  Puente                                                   C.S.S.B. No. 1205


A BILL TO BE ENTITLED
AN ACT
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 this state. 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 Commission. (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 Section 336.021. (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 district. 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 voted on; (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 the district." 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 minutes. (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; (B) education; (C) information technology; (D) local or Texas history; or (E) business management. Sec. 336.054. TERMS. (a) Trustees serve staggered two–year terms. (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 ended. 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 considers necessary. (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 requires. (b) The board shall hold its meetings at a designated meeting place. 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 contract. (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 meetings; (2) the powers, duties, and responsibilities of the board's officers and employees; (3) the disbursement of money by a check, draft, or warrant; (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 affairs. (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 director. (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 employees. (b) The board may adopt a plan to accomplish the purpose of this section. (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 district record.
[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 this section. 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 the district. 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 judgment. 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 depository bank. 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 fiscal year. Sec. 336.208. GRANTS AND DONATIONS. A district may accept and administer a grant or donation from any source for any district purpose.
[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 assessed. Sec. 336.252. IMPOSITION, COMPUTATION, ADMINISTRATION, AND GOVERNANCE OF SALES TAX. (a) A district may impose a sales and use tax. (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 court." 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 B. 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 purposes.
[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 district facilities. (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 the issuance. 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 section. (c) An election is not required to issue bonds under this section. 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 facilities; or (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 obligation.
[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.