Texas 2015 - 84th Regular

Texas Senate Bill SB710 Latest Draft

Bill / Introduced Version Filed 02/24/2015

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                            84R5037 TJB-F
 By: Burton S.B. No. 710


 A BILL TO BE ENTITLED
 AN ACT
 relating to the organization of a municipal government as a Liberty
 City general-law municipality.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 1.005, Local Government Code, is amended
 by amending Subdivision (1) and adding Subdivision (2-a) to read as
 follows:
 (1)  "General-law municipality" means a municipality
 designated by Chapter 5 as a Type A general-law municipality, Type B
 general-law municipality, [or] Type C general-law municipality, or
 Liberty City.
 (2-a) "Liberty City" means a municipality designated by
 Chapter 5 as a Liberty City general-law municipality.
 SECTION 2.  Subchapter A, Chapter 5, Local Government Code,
 is amended by adding Section 5.006 to read as follows:
 Sec. 5.006.  LIBERTY CITY. A municipality is a Liberty City
 general-law municipality if the municipality:
 (1)  has incorporated as or converted to a Liberty City
 under Chapter 10; and
 (2)  has not converted to another type of municipality.
 SECTION 3.  Subtitle A, Title 2, Local Government Code, is
 amended by adding Chapter 10 to read as follows:
 CHAPTER 10.  LIBERTY CITY
 SUBCHAPTER A.  INCORPORATION OF LIBERTY CITY
 Sec. 10.001.  AUTHORITY TO INCORPORATE AS LIBERTY CITY. (a)
 A community may incorporate as a Liberty City if the community:
 (1)  constitutes an unincorporated city or town;
 (2)  contains 200 or more inhabitants; and
 (3)  meets the territorial requirements prescribed by
 Section 5.901.
 (b)  Notwithstanding Section 42.041, a community located
 wholly or partly in the extraterritorial jurisdiction of a
 municipality may incorporate as a Liberty City in that
 extraterritorial jurisdiction if:
 (1)  the residents of the community submit with the
 application for incorporation a petition consenting to the
 incorporation signed by a number of registered voters of the
 municipality equal to or greater than 25 percent of the number of
 voters who voted in the most recent municipal election; and
 (2)  the procedural requirements prescribed by
 Subchapter A, Chapter 8, and Section 10.002 are satisfied.
 Sec. 10.002.  INCORPORATION PROCEDURES. (a)  Except as
 provided by this section, the procedures for incorporating as a
 Liberty City are the same as those prescribed for incorporating as a
 Type C general-law municipality.
 (b)  In addition to the requirements prescribed by
 Subchapter A, Chapter 8, a petition to incorporate as a Liberty City
 must:
 (1)  state whether the municipality will operate under
 an aldermanic or commission form of government;
 (2)  state the number of members, including the mayor,
 who will comprise the governing body of the municipality; and
 (3)  include the petition consenting to incorporation
 described by Section 10.001(b)(1) if the community is incorporating
 in the extraterritorial jurisdiction of a municipality.
 SUBCHAPTER B.  CONVERSION FROM ANOTHER MUNICIPAL TYPE TO LIBERTY
 CITY
 Sec. 10.021.  AUTHORITY TO CONVERT TO LIBERTY CITY. A Type
 A, Type B, or Type C general-law municipality containing 200 or more
 residents may convert to a Liberty City.
 Sec. 10.022.  RESOLUTION OR PETITION REQUESTING CONVERSION.
 (a)  The majority of the governing body of a municipality by
 resolution may request the mayor to order an election to determine
 whether the municipality will convert to a Liberty City.
 (b)  The residents of a municipality may request the mayor to
 order an election to determine whether the municipality will
 convert to a Liberty City by filing with the mayor a written
 petition requesting the election signed by a number of registered
 voters of the municipality equal to or greater than 25 percent of
 the number of voters who voted in the most recent municipal
 election.
 (c)  A resolution or petition described by this section must
 state:
 (1)  whether the municipality, if converted, will
 operate under an aldermanic or commission form of government; and
 (2)  the number of members, including the mayor, who
 will comprise the governing body of the municipality, if converted.
 (d)  On receipt of a petition under this section, the mayor
 shall determine whether the petition meets the requirements of
 Subsections (b) and (c).
 Sec. 10.023.  ELECTION TO CONVERT. The mayor of a
 municipality shall order an election to determine whether the
 municipality will convert to a Liberty City if:
 (1)  a resolution is adopted that meets the
 requirements of Sections 10.022(a) and (c); or
 (2)  a petition is filed with and determined valid by
 the mayor under Sections 10.022(b) and (d).
 Sec. 10.024.  ORDER OF CONVERSION. If the conversion is
 approved by a vote of a majority of the qualified voters of the
 municipality voting at an election ordered under this subchapter,
 the mayor shall enter an order in the minutes of the governing body
 of the municipality that the municipality is converted to a Liberty
 City.  The conversion is effective on the date the order is entered.
 SUBCHAPTER C.  BILL OF RIGHTS
 Sec. 10.041.  BILL OF RIGHTS. A Liberty City is bound by the
 following bill of rights on the date the municipality is
 incorporated as or converted to a Liberty City:
 BILL OF RIGHTS OF A LIBERTY CITY
 Article 1. The residents and governing body of a Liberty City
 recognize the fundamental natural rights of the people as protected
 and preserved by the United States Constitution and the Texas
 Constitution. The governing body of this Liberty City shall not
 enact an ordinance, resolution, or similar measure, or take any
 action, that infringes on the basic absolute and essential rights
 of the people.
 Article 2. The right of the people to bear arms shall not be
 infringed.
 Article 3. The right of the people to freedom of speech,
 including political and nonpolitical expression, and of assembly
 shall not be infringed.
 Article 4. The right of the people to practice the faith of
 their choosing and to worship in both public and private places
 shall not be infringed.
 Article 5. The right of the people to be secure in their
 persons and their property from unreasonable searches, including
 the collection of data, surveillance, and forceful search methods,
 conducted by an officer of the municipality without warrant, shall
 not be infringed.
 Article 6. The rule of lenity is to be enforced in all
 applicable municipal proceedings.
 SECTION 4.  Subtitle B, Title 2, Local Government Code, is
 amended by adding Chapter 27 to read as follows:
 CHAPTER 27.  FORM OF GOVERNMENT IN LIBERTY CITY
 SUBCHAPTER A.  GENERAL PROVISIONS
 Sec. 27.001.  CHAPTER APPLICABLE TO LIBERTY CITY. This
 chapter applies only to a Liberty City.
 SUBCHAPTER B.  FORM OF GOVERNMENT
 Sec. 27.011.  FORM OF GOVERNMENT. The municipality operates
 under the aldermanic or commission form of government, as
 determined by the voters when the municipality is incorporated as
 or converted to a Liberty City.
 SUBCHAPTER C.  GOVERNING BODY
 Sec. 27.021.  GOVERNING BODY. The governing body of the
 municipality is comprised of the mayor and the number of
 commissioners or aldermen, as applicable, established at the
 election to incorporate as or convert to a Liberty City.
 Sec. 27.022.  INITIAL ELECTION OF GOVERNING BODY. The
 initial governing body of the municipality, including the mayor,
 must be elected at the election to incorporate as or convert to a
 Liberty City.
 Sec. 27.023.  TERM OF OFFICE. The mayor and members of the
 governing body of the municipality serve for a term of two years
 unless a longer term is established as authorized under Article XI,
 Section 11, of the Texas Constitution.
 Sec. 27.024.  BOND. The mayor and members of the governing
 body of the municipality must each execute a bond payable to the
 municipality and conditioned that the officer will faithfully
 perform the duties of the office.
 SUBCHAPTER D.  MUNICIPAL OFFICERS
 Sec. 27.041.  CREATION OF MUNICIPAL OFFICES. The governing
 body of the municipality may:
 (1)  create additional offices of the municipality;
 (2)  determine the method for selecting officers; and
 (3)  prescribe the qualifications, duties, and tenure
 of office for officers.
 Sec. 27.042.  BOND. The governing body of the municipality
 may require a municipal officer to execute a bond payable to the
 municipality and conditioned that the officer will faithfully
 perform the duties of the office.
 SECTION 5.  Subchapter B, Chapter 43, Local Government Code,
 is amended by adding Section 43.037 to read as follows:
 Sec. 43.037.  AUTHORITY OF LIBERTY CITY TO ANNEX AREA.  (a)
 Notwithstanding any other law, a Liberty City may annex an area
 under this chapter only if:
 (1)  the municipality holds an election in the
 municipality, at which the qualified voters of the municipality may
 vote on the question of the annexation, and a majority of the votes
 received at the election approve the annexation; and
 (2)  one of the following conditions is met:
 (A)  the municipality holds an election in the
 area proposed to be annexed, at which the qualified voters of the
 area may vote on the question of the annexation, and a majority of
 the votes received at the election approve the annexation;
 (B)  a majority of the registered voters of the
 area proposed to be annexed petition the governing body of the
 municipality, in writing, to annex the area; or
 (C)  no qualified voters reside in the area
 proposed to be annexed.
 (b)  On the effective date of an annexation ordinance, the
 area becomes a part of the municipality and a resident of the area
 is entitled to the rights and privileges of a resident of the
 municipality and is bound by the acts and ordinances adopted by the
 municipality.
 SECTION 6.  Chapter 51, Local Government Code, is amended by
 adding Subchapter F to read as follows:
 SUBCHAPTER F.  PROVISIONS APPLICABLE TO LIBERTY CITY
 Sec. 51.091.  SUBCHAPTER APPLICABLE TO LIBERTY CITY. This
 subchapter applies only to a Liberty City.
 Sec. 51.092.  AUTHORITY, DUTIES, AND PRIVILEGES.  The
 municipality has the same authority, duties, and privileges as a
 Type A general-law municipality that are not inconsistent with this
 subchapter or another provision of law specifically governing a
 Liberty City.
 Sec. 51.093.  AUTHORITY TO IMPOSE PROPERTY TAX. The
 municipality may not impose a tax on real or personal property or
 increase the rate of an adopted tax on real or personal property
 unless the imposition or increase is approved by at least 60 percent
 of the qualified voters of the municipality voting at an election
 held for that purpose.
 Sec. 51.094.  AUTHORITY TO ISSUE PUBLIC DEBT; ELECTION.  (a)
 In this section, "debt obligation" means a public security, as
 defined by Section 1201.002, Government Code.
 (b)  The municipality may not issue bonds, certificates of
 obligation, or other debt obligations unless the issuance is
 approved by a vote of a majority of the qualified voters of the
 municipality voting at an election held for that purpose.
 Sec. 51.095.  PROHIBITION ON ADOPTION AND ENFORCEMENT OF
 ZONING ORDINANCE OR COMPREHENSIVE PLAN. The municipality may not
 adopt or enforce:
 (1)  a zoning ordinance or regulation; or
 (2)  a comprehensive plan that provides for the
 long-range development of the municipality.
 SECTION 7.  Section 102.002, Local Government Code, is
 amended to read as follows:
 Sec. 102.002.  ANNUAL BUDGET REQUIRED. The budget officer
 shall prepare each year a municipal budget to cover the proposed
 expenditures of the municipal government for the succeeding year.
 A municipal budget prepared by the budget officer for a Liberty City
 must be a zero-based budget.
 SECTION 8.  Section 102.003, Local Government Code, is
 amended by amending Subsection (a) and adding Subsection (c) to
 read as follows:
 (a)  The budget officer shall itemize the budget to allow as
 clear a comparison as practicable between expenditures included in
 the proposed budget and actual expenditures for the same or similar
 purposes made for the preceding year. The budget of a municipality
 other than a Liberty City must show as definitely as possible each
 of the projects for which expenditures are set up in the budget and
 the estimated amount of money carried in the budget for each
 project.
 (c)  The budget officer of a Liberty City shall prepare a
 zero-based budget that contains:
 (1)  a description of the discrete activities the
 municipality conducts or performs with:
 (A)  a justification for each activity by
 reference to a statute, ordinance, or other legal authority; and
 (B)  an evaluation of the effectiveness and
 efficiency of the municipality's policies, management, fiscal
 affairs, and operations in relation to each activity;
 (2)  for each activity identified under Subdivision
 (1), an itemized account of expenditures required to maintain the
 activity at any minimum level of service required by statute,
 ordinance, or other legal authority;
 (3)  for each activity identified under Subdivision
 (1), an itemized account of expenditures required to maintain the
 activity at the current level of service or performance; and
 (4)  recommendations to the governing body of the
 municipality regarding whether the municipality should continue
 funding each activity identified under Subdivision (1) and, if so,
 at what level.
 SECTION 9.  Subtitle A, Title 4, Local Government Code, is
 amended by adding Chapter 110 to read as follows:
 CHAPTER 110.  MISCELLANEOUS FINANCIAL PROVISIONS AFFECTING
 MUNICIPALITIES
 Sec. 110.001.  LIBERTY CITY ANNUAL FINANCIAL REPORT; DEBT
 INFORMATION.  (a)  In this section, "debt obligation" means an
 issued public security, as defined by Section 1201.002, Government
 Code.
 (b)  The governing body of a Liberty City shall prepare a
 comprehensive annual financial report that includes:
 (1)  financial information for each fund subject to the
 authority of the governing body of the municipality during the
 fiscal year, including:
 (A)  the total receipts of the fund, itemized by
 source of revenue, including taxes, assessments, service charges,
 grants of state money, gifts, or other general sources from which
 funds are derived;
 (B)  the total disbursements of the fund, itemized
 by the nature of the expenditure;
 (C)  the balance in the fund as of the last day of
 the fiscal year; and
 (D)  any other information required by law to be
 included by the municipality in an annual financial report or
 comparable annual financial statement, exhibit, or report; and
 (2)  then-current debt obligation information for the
 municipality that must state:
 (A)  the principal of all outstanding debt
 obligations;
 (B)  the principal of each outstanding debt
 obligation;
 (C)  the combined principal and interest required
 to pay all outstanding debt obligations on time and in full; and
 (D)  the combined principal and interest required
 to pay each outstanding debt obligation on time and in full.
 Sec. 110.002.  LIBERTY CITY WEBSITE; TRANSPARENCY WEB PAGE.
 (a)  This section applies only to a Liberty City.
 (b)  The municipality shall maintain an Internet website.
 (c)  The municipality shall maintain on the municipality's
 Internet website a web page dedicated to providing transparency to
 the residents of the municipality of the activities of the
 municipality. The municipality shall post the following municipal
 information and documents on the web page as soon as the information
 or document is available:
 (1)  the current contact information for each elected
 municipal official;
 (2)  a link to another web page maintained by the
 municipality allowing a person to submit an electronic request for
 information under Chapter 552, Government Code;
 (3)  the notice, agenda, and minutes for each meeting
 of the governing body of the municipality;
 (4)  the approved municipal budget and the information
 required to be posted online by Section 102.008(a)(2);
 (5)  the comprehensive municipal annual financial
 report;
 (6)  the annual audit of municipal records and
 accounts;
 (7)  a statement of the budget and expenses for each
 municipal department;
 (8)  the current municipal tax rates for all taxes
 imposed by the municipality; and
 (9)  any other document or information that the
 governing body of the municipality considers appropriate to be
 posted on the web page.
 (d)  The municipality may not remove a document required to
 be posted under Subsection (c) from the transparency web page until
 the third anniversary of the date the document is posted.
 (e)  The requirements prescribed by this section are in
 addition to any other requirement prescribed by law.
 SECTION 10.  Section 271.043(7), Local Government Code, is
 amended to read as follows:
 (7)  "Issuer" means a municipality, county, or hospital
 district established under Chapter 281, Health and Safety Code. The
 term does not include a Liberty City.
 SECTION 11.  Chapter 1251, Government Code, is amended by
 designating Sections 1251.001, 1251.002, 1251.003, 1251.004,
 1251.005, and 1251.006 as Subchapter A and adding a subchapter
 heading to read as follows:
 SUBCHAPTER A.  BOND ELECTION REQUIREMENTS FOR COUNTIES AND
 MUNICIPALITIES
 SECTION 12.   Chapter 1251, Government Code, is amended by
 adding Subchapter B to read as follows:
 SUBCHAPTER B.  DEBT ELECTION BALLOTS FOR LIBERTY CITIES
 Sec. 1251.051.  DEFINITIONS. In this subchapter:
 (1)  "Liberty City" has the meaning assigned by Section
 1.005, Local Government Code.
 (2)  "Public security" has the meaning assigned by
 Section 1201.002.
 Sec. 1251.052.  CONTENTS OF BALLOT PROPOSITION. (a)  The
 proposition submitted for an election to authorize a Liberty City
 to issue a public security must distinctly state:
 (1)  as a total amount and as a per capita amount:
 (A)  the then-current combined principal and
 interest required to pay all outstanding public securities of the
 municipality on time and in full; and
 (B)  the estimated combined principal and
 interest required to pay the public security to be authorized on
 time and in full; and
 (2)  if the public security is supported by property
 taxes, the annual increase in property taxes attributable to the
 public security to be issued that each homeowner of an
 average-priced home within the municipality may be required to pay.
 (b)  The requirements for a proposition prescribed by this
 section are in addition to any other requirements prescribed by
 law.  To the extent of a conflict between this section and Section
 52.072, Election Code, this section controls.
 SECTION 13.  This Act takes effect September 1, 2015.