81R13861 T
 
  By: Coleman H.B. No. 3009
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of municipal management districts to
  consolidate.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 375, Local Government Code, is amended
  by adding Subchapter P to read as follows:
  SUBCHAPTER P. CONSOLIDATION OF DISTRICTS
         Sec. 375.351.  CONSOLIDATION OF MUNICIPAL MANAGEMENT
  DISTRICTS. (a) Two or more districts may consolidate into one
  district. To initiate consolidation, the board of a district shall
  adopt a resolution proposing a consolidation and deliver a copy of
  the resolution to the board of each district with which
  consolidation is proposed.
         (b)  A consolidation under this subchapter occurs if the
  board of each involved district adopts a resolution containing the
  terms and conditions for the consolidation.
         (c)  If none of the districts to be consolidated has issued
  bonds or notes secured by assessments or ad valorem taxes, or has
  levied taxes, the board of directors of each district may vote to
  consolidate with one or more other districts.
         Sec. 375.352.  TERMS AND CONDITIONS FOR CONSOLIDATION. (a)
  The terms and conditions for consolidation shall include:
               (1)  adoption of a name for the consolidated district;
               (2)  the number and apportionment of directors to serve
  on the board of the consolidated district;
               (3)  the effective date of the consolidation;
               (4)  an agreement on finances for the consolidated
  district, including disposition of funds, property, and other
  assets of each district; and
               (5)  an agreement on governing the districts during the
  transition period, including selection of officers.
         (b)  The terms and conditions for consolidation may include
  any other terms or conditions to which the board of each district
  agrees.
         Sec. 375.353.  NOTICE AND HEARING ON CONSOLIDATION. (a) Each
  district's board shall publish notice and hold a public hearing in
  its district regarding the terms and conditions for consolidation
  of the districts. Such notice shall be published at least once in a
  newspaper with general circulation in the affected districts at
  least seven (7) days prior to the hearing.
         (b)  After the hearing, each board by resolution must approve
  the terms and conditions for consolidation by majority vote and
  enter an order consolidating the districts.
         Sec. 375.354.  GOVERNING CONSOLIDATED DISTRICTS. (a) After
  two or more districts are consolidated, they become one district
  and are governed as one district.
         (b)  During the transition period, the officers of each
  district shall continue to act jointly as officers of the original
  districts to settle the affairs of their respective districts.
         Sec. 375.355.  DEBTS OF ORIGINAL DISTRICTS. After two or
  more districts are consolidated, the consolidated district shall
  protect the debts and obligations of the original districts and
  shall ensure that the debts and obligations are not impaired. If
  the consolidated district has taxing authority, the debts may be
  paid by taxes levied on the land in the original districts as if
  they had not consolidated or from contributions from the
  consolidated district on terms stated in the consolidation
  agreement.
         Sec. 375.356.  ASSESSMENT AND COLLECTION OF TAXES. If the
  consolidated district has taxing authority, the district shall
  assess and collect taxes on all property in the district uniformly,
  for maintenance and operation of the district.
         Sec. 375.357.  FILING OF ORDER WITH COUNTY CLERK AND
  EXECUTIVE DIRECTOR. A consolidation order issued by the board
  shall be kept in the records of the consolidated district, recorded
  in the office of the county clerk in each of the counties in the
  consolidated district, and filed with the executive director of the
  commission.
         SECTION 2.  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, 2009.