H.B. No. 3009
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 DISTRICTS. (a) Two or more
districts may consolidate into one district under this subchapter
if none of the districts to be consolidated has issued bonds or
notes secured by assessments or ad valorem taxes, or has levied
taxes.
(b) 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.
(c) 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. TERMS AND CONDITIONS FOR CONSOLIDATION. (a)
The terms and conditions for consolidation must 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 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.
(b) Notice of the hearing must be published one time in a
newspaper of general circulation in the area of each district at
least seven days before the date of the hearing.
(c) After the hearing, the board by resolution may approve
the terms and conditions for consolidation 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.
(c) The consolidated district may exercise the powers of the
districts being consolidate within the respective boundaries of the
original districts. For land annexed into the consolidated
district, the consolidated district may exercise any of the powers
of the original districts.
Sec. 375.355. 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.
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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3009 was passed by the House on May 5,
2009, by the following vote: Yeas 144, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3009 on May 29, 2009, by the following vote: Yeas 142, Nays 0,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3009 was passed by the Senate, with
amendments, on May 27, 2009, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor