| 1 | 1 | | 81R10558 SJM-D |
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| 2 | 2 | | By: Davis of Dallas H.B. No. 2679 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the creation, powers, and duties of municipal |
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| 8 | 8 | | management districts. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 375, Local Government Code, is amended |
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| 11 | 11 | | by adding Subchapter P to read as follows: |
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| 12 | 12 | | SUBCHAPTER P. CONSOLIDATION OF DISTRICTS |
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| 13 | 13 | | Sec. 375.351. CONSOLIDATION OF DISTRICTS. (a) Two or more |
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| 14 | 14 | | districts may consolidate into one district. To initiate a |
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| 15 | 15 | | consolidation, the board of a district shall adopt a resolution |
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| 16 | 16 | | proposing a consolidation and deliver a copy of the resolution to |
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| 17 | 17 | | the board of each district with which consolidation is proposed. |
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| 18 | 18 | | (b) A consolidation under this subchapter occurs if the |
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| 19 | 19 | | board of each involved district adopts a resolution containing the |
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| 20 | 20 | | terms and conditions for the consolidation. |
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| 21 | 21 | | Sec. 375.352. CONFIRMATION ELECTION. (a) A consolidation |
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| 22 | 22 | | of districts under this subchapter is contingent on the results of |
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| 23 | 23 | | an election to confirm the consolidation. A confirmation election |
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| 24 | 24 | | must be held in each district to be consolidated. |
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| 25 | 25 | | (b) The board of each district to be consolidated shall |
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| 26 | 26 | | order an election in the district after the board of each district |
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| 27 | 27 | | to be consolidated has agreed on the terms and conditions for |
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| 28 | 28 | | consolidation. The directors of each district conducting an |
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| 29 | 29 | | election shall order the election in each district to be held on the |
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| 30 | 30 | | same day. The election shall be held and notice given in the manner |
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| 31 | 31 | | provided by the Election Code. |
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| 32 | 32 | | (c) The ballots for the election shall be printed to provide |
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| 33 | 33 | | for voting for or against the proposition: "The consolidation of |
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| 34 | 34 | | (names of the districts to be consolidated) into the ______ |
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| 35 | 35 | | Management District." If the consolidated district will have |
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| 36 | 36 | | authority to levy a property tax for payment of its bonded |
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| 37 | 37 | | indebtedness, the proposition shall include the following |
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| 38 | 38 | | language: "and the levy of a tax on property at a rate not to exceed |
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| 39 | 39 | | _____ cents on each $100 of assessed valuation for payment of |
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| 40 | 40 | | bonds." If the consolidated district will have authority to levy a |
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| 41 | 41 | | property tax for payment of its maintenance and operating expenses, |
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| 42 | 42 | | the proposition shall include the following language: "and the |
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| 43 | 43 | | levy of a tax on property at a rate not to exceed _____ cents on each |
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| 44 | 44 | | $100 of assessed valuation for payment of maintenance and operating |
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| 45 | 45 | | expenses of the district." |
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| 46 | 46 | | (d) Districts may be consolidated only if a majority of the |
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| 47 | 47 | | voters voting in each district vote in favor of the consolidation. |
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| 48 | 48 | | If more than two districts are consolidating, the failure of any one |
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| 49 | 49 | | district to ratify the consolidation does not prevent the |
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| 50 | 50 | | consolidation of the other districts. |
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| 51 | 51 | | Sec. 375.353. GOVERNING CONSOLIDATED DISTRICTS. (a) After |
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| 52 | 52 | | two or more districts are consolidated, they become one district |
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| 53 | 53 | | and are governed as one district. |
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| 54 | 54 | | (b) During the transition period, the officers of each |
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| 55 | 55 | | district shall continue to act jointly as officers of the original |
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| 56 | 56 | | districts to settle the affairs of their respective districts. |
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| 57 | 57 | | (c) If the consolidated district elects directors, |
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| 58 | 58 | | directors for the consolidated district shall be elected in the |
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| 59 | 59 | | same manner and for the same term as directors elected at a |
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| 60 | 60 | | confirmation election. The directors' election shall be set for |
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| 61 | 61 | | the next regular election. |
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| 62 | 62 | | Sec. 375.354. DEBTS OF ORIGINAL DISTRICTS. (a) After two |
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| 63 | 63 | | or more districts are consolidated, the consolidated district shall |
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| 64 | 64 | | protect the debts of the original districts and shall assure that |
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| 65 | 65 | | the debts are not impaired. If the consolidated district has taxing |
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| 66 | 66 | | authority, the debts may be paid by taxes levied on the land in the |
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| 67 | 67 | | original districts as if they had not consolidated or from |
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| 68 | 68 | | contributions from the consolidated district on terms stated in the |
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| 69 | 69 | | consolidation agreement. |
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| 70 | 70 | | (b) If the consolidated district has taxing authority and |
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| 71 | 71 | | assumes the bonds, notes, and other obligations of the original |
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| 72 | 72 | | districts, taxes may be levied uniformly on all taxable property |
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| 73 | 73 | | within the consolidated district to pay the debts. |
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| 74 | 74 | | SECTION 2. This Act takes effect immediately if it receives |
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| 75 | 75 | | a vote of two-thirds of all the members elected to each house, as |
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| 76 | 76 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 77 | 77 | | Act does not receive the vote necessary for immediate effect, this |
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| 78 | 78 | | Act takes effect September 1, 2009. |
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