By: Ellis S.B. No. 2040
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.