81R10558 SJM-D
By: Davis of Dallas H.B. No. 2679
A BILL TO BE ENTITLED
AN ACT
relating to the creation, powers, and duties of municipal
management districts.
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 DISTRICTS. (a) Two or more
districts may consolidate into one district. To initiate a
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.
Sec. 375.352. CONFIRMATION ELECTION. (a) A consolidation
of districts under this subchapter is contingent on the results of
an election to confirm the consolidation. A confirmation election
must be held in each district to be consolidated.
(b) The board of each district to be consolidated shall
order an election in the district after the board of each district
to be consolidated has agreed on the terms and conditions for
consolidation. The directors of each district conducting an
election shall order the election in each district to be held on the
same day. The election shall be held and notice given in the manner
provided by the Election Code.
(c) The ballots for the election shall be printed to provide
for voting for or against the proposition: "The consolidation of
(names of the districts to be consolidated) into the ______
Management District." If the consolidated district will have
authority to levy a property tax for payment of its bonded
indebtedness, the proposition shall include the following
language: "and the levy of a tax on property at a rate not to exceed
_____ cents on each $100 of assessed valuation for payment of
bonds." If the consolidated district will have authority to levy a
property tax for payment of its maintenance and operating expenses,
the proposition shall include the following language: "and the
levy of a tax on property at a rate not to exceed _____ cents on each
$100 of assessed valuation for payment of maintenance and operating
expenses of the district."
(d) Districts may be consolidated only if a majority of the
voters voting in each district vote in favor of the consolidation.
If more than two districts are consolidating, the failure of any one
district to ratify the consolidation does not prevent the
consolidation of the other districts.
Sec. 375.353. 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.
(c) If the consolidated district elects directors,
directors for the consolidated district shall be elected in the
same manner and for the same term as directors elected at a
confirmation election. The directors' election shall be set for
the next regular election.
Sec. 375.354. DEBTS OF ORIGINAL DISTRICTS. (a) After two
or more districts are consolidated, the consolidated district shall
protect the debts of the original districts and shall assure that
the debts 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.
(b) If the consolidated district has taxing authority and
assumes the bonds, notes, and other obligations of the original
districts, taxes may be levied uniformly on all taxable property
within the consolidated district to pay the debts.
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.