| 1 | 1 | | By: Ellis S.B. No. 2040 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the authority of municipal management districts to |
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| 7 | 7 | | consolidate. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter 375, Local Government Code, is amended |
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| 10 | 10 | | by adding Subchapter P to read as follows: |
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| 11 | 11 | | SUBCHAPTER P. CONSOLIDATION OF DISTRICTS |
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| 12 | 12 | | Sec. 375.351. CONSOLIDATION OF MUNICIPAL MANAGEMENT |
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| 13 | 13 | | DISTRICTS. (a) Two or more districts may consolidate into one |
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| 14 | 14 | | district. To initiate consolidation, the board of a district shall |
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| 15 | 15 | | adopt a resolution proposing a consolidation and deliver a copy of |
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| 16 | 16 | | the resolution to the board of each district with which |
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| 17 | 17 | | 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 | | (c) If none of the districts to be consolidated has issued |
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| 22 | 22 | | bonds or notes secured by assessments or ad valorem taxes, or has |
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| 23 | 23 | | levied taxes, the board of directors of each district may vote to |
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| 24 | 24 | | consolidate with one or more other districts. |
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| 25 | 25 | | Sec. 375.352. TERMS AND CONDITIONS FOR CONSOLIDATION. |
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| 26 | 26 | | (a) The terms and conditions for consolidation shall include: |
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| 27 | 27 | | (1) adoption of a name for the consolidated district; |
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| 28 | 28 | | (2) the number and apportionment of directors to serve |
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| 29 | 29 | | on the board of the consolidated district; |
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| 30 | 30 | | (3) the effective date of the consolidation; |
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| 31 | 31 | | (4) an agreement on finances for the consolidated |
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| 32 | 32 | | district, including disposition of funds, property, and other |
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| 33 | 33 | | assets of each district; and |
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| 34 | 34 | | (5) an agreement on governing the districts during the |
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| 35 | 35 | | transition period, including selection of officers. |
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| 36 | 36 | | (b) The terms and conditions for consolidation may include |
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| 37 | 37 | | any other terms or conditions to which the board of each district |
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| 38 | 38 | | agrees. |
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| 39 | 39 | | Sec. 375.353. NOTICE AND HEARING ON CONSOLIDATION. |
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| 40 | 40 | | (a) Each district's board shall publish notice and hold a public |
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| 41 | 41 | | hearing in its district regarding the terms and conditions for |
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| 42 | 42 | | consolidation of the districts. Such notice shall be published at |
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| 43 | 43 | | least once in a newspaper with general circulation in the affected |
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| 44 | 44 | | districts at least seven (7) days prior to the hearing. |
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| 45 | 45 | | (b) After the hearing, each board by resolution must approve |
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| 46 | 46 | | the terms and conditions for consolidation by majority vote and |
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| 47 | 47 | | enter an order consolidating the districts. |
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| 48 | 48 | | Sec. 375.354. GOVERNING CONSOLIDATED DISTRICTS. |
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| 49 | 49 | | (a) After two or more districts are consolidated, they become one |
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| 50 | 50 | | district and are governed as one district. |
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| 51 | 51 | | (b) During the transition period, the officers of each |
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| 52 | 52 | | district shall continue to act jointly as officers of the original |
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| 53 | 53 | | districts to settle the affairs of their respective districts. |
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| 54 | 54 | | Sec. 375.355. DEBTS OF ORIGINAL DISTRICTS. After two or |
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| 55 | 55 | | more districts are consolidated, the consolidated district shall |
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| 56 | 56 | | protect the debts and obligations of the original districts and |
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| 57 | 57 | | shall ensure that the debts and obligations are not impaired. If |
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| 58 | 58 | | the consolidated district has taxing authority, the debts may be |
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| 59 | 59 | | paid by taxes levied on the land in the original districts as if |
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| 60 | 60 | | they had not consolidated or from contributions from the |
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| 61 | 61 | | consolidated district on terms stated in the consolidation |
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| 62 | 62 | | agreement. |
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| 63 | 63 | | Sec. 375.356. ASSESSMENT AND COLLECTION OF TAXES. If the |
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| 64 | 64 | | consolidated district has taxing authority, the district shall |
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| 65 | 65 | | assess and collect taxes on all property in the district uniformly, |
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| 66 | 66 | | for maintenance and operation of the district. |
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| 67 | 67 | | Sec. 375.357. FILING OF ORDER WITH COUNTY CLERK AND |
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| 68 | 68 | | EXECUTIVE DIRECTOR. A consolidation order issued by the board |
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| 69 | 69 | | shall be kept in the records of the consolidated district, recorded |
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| 70 | 70 | | in the office of the county clerk in each of the counties in the |
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| 71 | 71 | | consolidated district, and filed with the executive director of the |
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| 72 | 72 | | commission. |
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| 73 | 73 | | SECTION 2. This Act takes effect immediately if it receives |
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| 74 | 74 | | a vote of two-thirds of all the members elected to each house, as |
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| 75 | 75 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 76 | 76 | | Act does not receive the vote necessary for immediate effect, this |
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| 77 | 77 | | Act takes effect September 1, 2009. |
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