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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of municipal management districts to |
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consolidate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 375, Local Government Code, is amended |
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by adding Subchapter P to read as follows: |
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SUBCHAPTER P. CONSOLIDATION OF DISTRICTS |
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Sec. 375.351. CONSOLIDATION OF MUNICIPAL MANAGEMENT |
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DISTRICTS. (a) Two or more districts may consolidate into one |
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district. To initiate consolidation, the board of a district shall |
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adopt a resolution proposing a consolidation and deliver a copy of |
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the resolution to the board of each district with which |
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consolidation is proposed. |
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(b) A consolidation under this subchapter occurs if the |
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board of each involved district adopts a resolution containing the |
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terms and conditions for the consolidation. |
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(c) If none of the districts to be consolidated has issued |
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bonds or notes secured by assessments or ad valorem taxes, or has |
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levied taxes, the board of directors of each district may vote to |
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consolidate with one or more other districts. |
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Sec. 375.352. TERMS AND CONDITIONS FOR CONSOLIDATION. (a) |
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The terms and conditions for consolidation shall include: |
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(1) adoption of a name for the consolidated district; |
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(2) the number and apportionment of directors to serve |
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on the board of the consolidated district; |
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(3) the effective date of the consolidation; |
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(4) an agreement on finances for the consolidated |
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district, including disposition of funds, property, and other |
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assets of each district; and |
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(5) an agreement on governing the districts during the |
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transition period, including selection of officers. |
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(b) The terms and conditions for consolidation may include |
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any other terms or conditions to which the board of each district |
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agrees. |
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Sec. 375.353. NOTICE AND HEARING ON CONSOLIDATION. (a) Each |
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district's board shall publish notice and hold a public hearing in |
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its district regarding the terms and conditions for consolidation |
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of the districts. Such notice shall be published at least once in a |
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newspaper with general circulation in the affected districts at |
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least seven (7) days prior to the hearing. |
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(b) After the hearing, each board by resolution must approve |
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the terms and conditions for consolidation by majority vote and |
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enter an order consolidating the districts. |
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Sec. 375.354. GOVERNING CONSOLIDATED DISTRICTS. (a) After |
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two or more districts are consolidated, they become one district |
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and are governed as one district. |
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(b) During the transition period, the officers of each |
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district shall continue to act jointly as officers of the original |
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districts to settle the affairs of their respective districts. |
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Sec. 375.355. DEBTS OF ORIGINAL DISTRICTS. After two or |
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more districts are consolidated, the consolidated district shall |
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protect the debts and obligations of the original districts and |
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shall ensure that the debts and obligations are not impaired. If |
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the consolidated district has taxing authority, the debts may be |
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paid by taxes levied on the land in the original districts as if |
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they had not consolidated or from contributions from the |
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consolidated district on terms stated in the consolidation |
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agreement. |
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Sec. 375.356. ASSESSMENT AND COLLECTION OF TAXES. If the |
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consolidated district has taxing authority, the district shall |
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assess and collect taxes on all property in the district uniformly, |
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for maintenance and operation of the district. |
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Sec. 375.357. FILING OF ORDER WITH COUNTY CLERK AND |
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EXECUTIVE DIRECTOR. A consolidation order issued by the board |
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shall be kept in the records of the consolidated district, recorded |
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in the office of the county clerk in each of the counties in the |
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consolidated district, and filed with the executive director of the |
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commission. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |