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A BILL TO BE ENTITLED
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AN ACT
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relating to the supervision and administration of municipal |
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management districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 321.013(a), Government Code, is amended |
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to read as follows: |
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(a) The State Auditor shall conduct audits of all |
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departments, including institutions of higher education, and of |
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municipal management districts, as specified in the audit plan. At |
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the direction of the committee, the State Auditor shall conduct an |
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audit or investigation of any entity receiving funds from the |
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state. |
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SECTION 2. Chapter 321, Government Code, is amended by |
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adding Section 321.01335 to read as follows: |
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Sec. 321.01335. ECONOMY AND EFFICIENCY AUDIT OF MUNICIPAL |
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MANAGEMENT DISTRICTS. At a reasonable time in advance of an economy |
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and efficiency audit of a municipal management district requested |
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under Section 375.0961, Local Government Code, the state auditor |
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shall provide the board of directors of the district with written |
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information relating to the procedures for and scope of the audit. |
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The state auditor shall include in the materials information |
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describing: |
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(1) how the appropriate representatives of the |
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district may participate in the audit planning process; and |
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(2) how the district may request information or |
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assistance in preparing for the audit from the state auditor. |
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SECTION 3. Section 375.061, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.061. NUMBER OF DIRECTORS; TERMS. (a) A district |
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is governed by a board of at least five but not more than 30 |
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directors who serve staggered four-year terms. |
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(b) Directors may serve successive terms. |
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SECTION 4. Subchapter D, Chapter 375, Local Government |
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Code, is amended by adding Section 375.0641 to read as follows: |
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Sec. 375.0641. ELECTIONS FOR SUCCEEDING BOARD. (a) In all |
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areas of conflict, the provisions of this section take precedence |
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over all prior statutory enactments. |
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(b) An election shall be held on the uniform election date, |
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provided by Section 41.001, Election Code, in May to elect the |
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appropriate number of directors. |
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(c) Except as provided by Subsections (d) and (e), directors |
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are elected at large. |
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(d) The directors may assign a position number to each |
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director's office so that the directors may be elected by position. |
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(e) The directors may provide for the election of all |
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directors, or a majority of directors, from single-member |
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districts, which must be geographically described inside the |
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boundaries of the district in a manner that is equitable for both |
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the voters of the single-member districts and the voters of the |
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district generally. |
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(f) If authorized by the board in the proceedings calling a |
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director election, the secretary of the board or the secretary's |
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designee, on receipt of the certification required by Section |
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2.052(b), Election Code, shall post notice that the election is not |
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to be held. The notice must be posted, on or before the |
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commencement of early voting, at each polling place that would have |
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been used in the election. If the notice is timely posted: |
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(1) the secretary or designee is not required to: |
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(A) post or publish notice of the election; |
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(B) prepare or print ballots and election |
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materials; or |
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(C) hold early and regular voting; and |
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(2) the board shall meet at the earliest practicable |
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time to declare each unopposed candidate elected to office. |
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(g) In the event of a failure to elect one or more directors |
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resulting from the absence of, or failure to vote by, the qualified |
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voters in an election held by the district, the members of the board |
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holding the positions not filled at the election, including initial |
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directors, shall be considered to have been elected and shall serve |
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an additional term of office. |
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(h) Sections 49.1045, 49.109, 49.110, 49.111, 49.112, and |
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49.113, Water Code, apply to an election held under this section. |
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(i) This section does not apply to the selection of initial |
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directors. |
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SECTION 5. Section 375.065, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.065. REMOVAL OF DIRECTOR; RECALL ELECTION. (a) The |
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governing body of the municipality after notice and hearing may |
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remove a director for misconduct or failure to carry out the |
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director's duties on petition by a majority of the remaining |
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directors. |
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(b) A director may be removed from office through a recall |
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election initiated by a petition: |
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(1) signed by the owners of 10 percent or more of the |
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assessed value of the property in the district based on the most |
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recent certified county property tax rolls; and |
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(2) filed with the municipal clerk. |
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(c) Not later than the 10th day after the date a petition is |
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filed, the municipal clerk shall review the petition and determine |
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whether the petition is valid. |
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(d) If the municipal clerk determines the petition is valid, |
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the clerk shall attach a certificate to the petition stating that |
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the petition is valid and submit the petition and certificate to the |
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board as soon as practicable. If the clerk determines that the |
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petition is not valid: |
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(1) the clerk shall attach a certificate to the |
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petition stating the facts supporting the determination that the |
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petition is not valid; |
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(2) the clerk shall notify the person who filed the |
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petition of the clerk's determination; |
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(3) the petition may be amended or supplemented and |
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filed again not later than the 10th day after the date of the |
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certification under Subdivision (1); and |
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(4) the clerk shall return the petition to the person |
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who filed it. |
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(e) The municipal clerk shall determine the validity of a |
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petition filed under Subsection (d)(3) in the same manner as the |
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original filing except that if the clerk determines the petition is |
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not valid the petition may not be further amended or supplemented |
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and the recall election is not held. |
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(f) Unless the director who is the target of the petition |
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resigns before the sixth day after the date a petition and |
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certificate are delivered to the board, the board shall order that a |
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recall election be held on the first uniform election date that |
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occurs after the date of the order. |
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(g) The ballot for a recall election shall be printed to |
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permit voting for or against the proposition: "The removal of (name |
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of the member of the board) from the board of the (name of |
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district)." |
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(h) If less than a majority of the votes received at the |
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recall election are in favor of removal of the director named on the |
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ballot, the director remains in office. If a majority of the votes |
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received are in favor of the removal of the director, the board |
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shall immediately declare the director's office vacant and the |
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vacancy shall be filled in the manner provided by Section 375.066. A |
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director removed by recall may not be appointed to fill the vacancy |
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and may not be a candidate in any election called to fill the |
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vacancy. |
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SECTION 6. Section 375.067(a), Local Government Code, is |
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amended to read as follows: |
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(a) As soon as practicable after a director is appointed or |
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elected, the director shall execute a $10,000 bond payable to the |
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district and conditioned on the faithful performance of the |
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director's duties. |
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SECTION 7. Section 375.068, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.068. OFFICERS. After directors are appointed or |
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elected and have qualified by executing a bond and taking the oath, |
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they shall organize by electing a president, a vice-president, a |
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secretary, and any other officers the board considers necessary. |
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SECTION 8. Subchapter E, Chapter 375, Local Government |
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Code, is amended by adding Section 375.0961 to read as follows: |
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Sec. 375.0961. AUDIT REVIEW. (a) The executive director of |
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the commission shall review using the standards and procedures |
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established under Section 49.195, Water Code, an audit prepared |
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under Section 375.096(a) if the commission receives a petition |
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requesting the review signed by the owners of 10 percent or more of |
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the assessed value of the property in the district based on the most |
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recent certified county property tax rolls. |
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(b) Based on the review, the executive director may request |
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that the state auditor conduct an economy and efficiency audit of a |
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district under Section 321.01335, Government Code. The state |
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auditor's participation under this section is subject to approval |
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by the legislative audit committee for inclusion in the audit plan |
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under Section 321.013(c), Government Code. |
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SECTION 9. Section 375.208, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.208. COMMISSION APPROVAL. A district must obtain |
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approval of the commission as provided by Chapter 54, Water Code, if |
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it issues bonds to provide water, sewage, or drainage facilities. |
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Except as expressly provided by this section and Section [Sections] |
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375.062 [and 375.064], a district is not subject to the |
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jurisdiction of the commission. |
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SECTION 10. Subchapter L, Chapter 375, Local Government |
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Code, is amended by adding Sections 375.245 and 375.246 to read as |
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follows: |
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Sec. 375.245. BALLOT LANGUAGE. The ballot for a bond |
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election, maintenance tax election, and any other district election |
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held in a district must be written in plain language designed to be |
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easily understood by the average person. |
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Sec. 375.246. ELECTION TO REPEAL INCREASE OF OPERATION AND |
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MAINTENANCE TAX. (a) Instead of the notice text required by |
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Section 49.236(a)(3), Water Code, as added by Chapter 335 (S.B. |
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392), Acts of the 78th Legislature, Regular Session, 2003, a notice |
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given by the board under Section 49.236(a), Water Code, as added by |
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Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular |
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Session, 2003, must contain a statement in substantially the |
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following form: |
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"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION |
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"If taxes on the average residence homestead increase, |
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the qualified voters of the district by petition may |
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require that an election be held to determine whether |
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to reduce the operation and maintenance tax rate to the |
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rollback tax rate under Section 375.246, Local |
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Government Code." |
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(b) Section 49.236(d), Water Code, as added by Chapter 335 |
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(S.B. 392), Acts of the 78th Legislature, Regular Session, 2003, |
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does not apply to the district. |
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(c) If the governing body of a district adopts a combined |
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debt service, operation and maintenance, and contract tax rate that |
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exceeds the rollback tax rate, the qualified voters of the district |
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by petition may require that an election be held to determine |
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whether or not to reduce the tax rate adopted for the current year |
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to the rollback tax rate in accordance with the procedures provided |
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by Sections 26.07(b)-(g) and 26.081, Tax Code. For purposes of |
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Sections 26.07(b)-(g), Tax Code, and this section, the rollback tax |
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rate is the sum of the following tax rates: |
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(1) the current year's debt service tax rate; |
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(2) the current year's contract tax rate; and |
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(3) the operation and maintenance tax rate that would |
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impose the same amount as the operation and maintenance tax imposed |
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by the district in the preceding year on a residence homestead |
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appraised at the average appraised value of a residence homestead |
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in the district in that year, disregarding any homestead exemption |
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available only to disabled persons or persons 65 years of age or |
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older. |
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SECTION 11. Section 49.052(h), Water Code, is amended to |
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read as follows: |
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(h) This subsection applies only to a district that is |
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located wholly within the boundaries of a municipality with a |
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population of more than 1.5 million, that is governed by Chapter |
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375, Local Government Code, and that is governed by a [an appointed] |
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board consisting of nine or more members. Notwithstanding |
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Subsection (f) or (g), a person is considered to have resigned from |
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serving as a member of the board if the person fails to attend three |
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consecutive meetings of the board. The remaining board members by |
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majority vote may waive the resignation under this subsection if |
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fairness requires that the absences be excused on the basis of |
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illness or other good cause. |
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SECTION 12. Section 375.064, Local Government Code, is |
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repealed. |
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SECTION 13. (a) This section applies only to: |
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(1) a municipal management district created by |
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petition under Chapter 375, Local Government Code, before the |
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effective date of this Act; or |
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(2) a special district that has the powers and duties |
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granted to a municipal management district under Chapter 375, Local |
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Government Code, created by special law of the legislature before |
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the effective date of this Act. |
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(b) In all areas of conflict the provisions of this section |
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take precedence over all prior statutory enactments. |
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(c) This Act does not prohibit a person who is an appointed |
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director of a district serving on the effective date of this Act |
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from running for election to the board of directors of the district |
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if the person has the qualifications required for a director. |
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(d) The terms of appointed directors serving on the |
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effective date of this Act expire on the date a majority of the |
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members of the first board of directors elected under Subsection |
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(e) of this section qualify to serve. |
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(e) The board of directors of a district for which appointed |
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directors are serving on the effective date of this Act shall call |
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an election to elect directors for the district in the manner |
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required by Section 375.0641, Local Government Code, as added by |
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this Act, not later than the uniform election date in May of 2021. |
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SECTION 14. This Act takes effect September 1, 2019. |