S.B. No. 940
 
 
 
 
AN ACT
  relating to multi-jurisdictional library districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Subchapter B, Chapter 336, Local
  Government Code, is amended to read as follows:
  SUBCHAPTER B.  CREATION OF DISTRICT; ELECTIONS
         SECTION 2.  Section 336.021, Local Government Code, is
  amended to read as follows:
         Sec. 336.021.  [ROLE OF] LEAD GOVERNMENTAL ENTITY;
  PARTICIPATION BY OTHER COUNTIES AND MUNICIPALITIES. (a)  A
  district may be created by a lead governmental entity [county or
  municipality] that, by resolution, [assumes the role of a lead
  governmental entity under this chapter and] proposes the creation
  of a district for specific [contiguous] counties and municipalities
  that by resolution agree to have their territory in the district.
         (b)  The governing body of a county or municipality may adopt
  a resolution under Subsection (a) on its own motion [or after a
  hearing held on a petition requesting the creation of a district].
         (c)  As soon as feasible and prudent, the [The] lead
  governmental entity shall provide over 50 percent of the initial
  assets to the district.
         SECTION 3.  Section 336.022, Local Government Code, is
  amended to read as follows:
         Sec. 336.022.  TERRITORY INCLUDED IN DISTRICT. (a)  The
  lead governmental entity shall describe the initial district
  territory in the resolution creating the district under Section
  336.021. The initial district territory[, which] must include all
  territory of each municipality or county that agrees to have its
  territory in the district under Section 336.021, except as provided
  by Subsections (c) and (d).
         (b)  The district may include incorporated or unincorporated
  territory and may include any [contiguous] territory in one or more
  counties that agree by resolution to have the counties' territory
  in the district under Section 336.021.
         (c)  If the boundaries of the proposed district include any
  territory that[, on the date on which an election is ordered on the
  question of creating the district,] is part of a municipality that
  operates a municipal public library, the governing body of that
  municipality must consent by resolution to allow the inclusion of
  that municipal territory in the proposed district. This subsection
  applies only to a municipality whose municipal public library is:
               (1)  financed and operated by that municipality;
               (2)  accredited for membership in the state library
  system; and
               (3)  open and free of charge to all members of the
  public under identical conditions.
         (d)  Except as provided by this subsection and Subsection
  (c), the district includes all incorporated and unincorporated
  areas of a county that agrees by resolution to have its territory in
  the district under Section 336.021. In its resolution, the county
  may exclude any incorporated area of the county where the local
  sales and use tax exceeds one and one-half percent.
         SECTION 4.  Section 336.023, Local Government Code, is
  amended to read as follows:
         Sec. 336.023.  [CONFIRMATION] ELECTION. (a)  A district
  [created under this chapter] may call an election to approve one or
  both of the following:
               (1)  [for the purpose of approving] a sales tax; or
               (2)  an ad valorem tax[, or both,] on property in the
  district.
         (b)  A sales tax and an ad valorem tax may be approved at the
  same election.
         (c)  Before a district may call the first election under this
  section, the lead governmental entity by resolution must set:
               (1)  the date of the election; and
               (2)  the type and rate of each tax that will appear on
  the ballot proposition under Section 336.027.
         SECTION 5.  Section 336.027, Local Government Code, is
  amended to read as follows:
         Sec. 336.027.  BALLOT PROPOSITION. (a)  If the board calls
  an election to approve [governing body of the lead governmental
  entity determines under Section 336.025 that the district should be
  supported by] a sales tax, the ballot for the election shall be
  printed to permit voting for or against the proposition: "The
  [creation of a multi-jurisdictional library district to be known as
  the __________ (name of district) and] adoption of a sales tax in
  the __________ (name of district) at a [the] rate up to [of]
  __________ (rate of tax) percent to be used for district purposes."
         (b)  If the board calls an election to approve [governing
  body of the lead governmental entity determines under Section
  336.025 that the district should be supported by] an ad valorem tax,
  the ballot for the election shall be printed to permit voting for or
  against the proposition: "The [creation of a multi-jurisdictional
  library district to be known as the __________ (name of district)
  and] adoption of an ad valorem tax in the __________ (name of
  district) at a rate up to __________ (rate of tax) cents per $100
  valuation of property to be used for district purposes [provide
  revenue for the district]."
         SECTION 6.  Section 336.028, Local Government Code, is
  amended to read as follows:
         Sec. 336.028.  RESULTS OF [CONFIRMATION] ELECTION. (a)  If
  a majority of the voters voting in the election favor the [creation
  of the district and the] adoption of a sales tax or of an ad valorem
  tax, the board [lead governmental entity] shall by resolution [or
  order declare that the district is created and shall] declare the
  rate of the sales tax or the amount of the ad valorem tax adopted and
  enter the result in its minutes.
         (b)  If a majority of the voters voting in the election are
  not in favor of a tax under Subsection (a) [against the creation of
  the district], the board [lead governmental entity] shall declare
  the measure defeated and enter the result in its minutes.
         (c)  An order under Subsection (a) must:
               (1)  contain a description of the district's boundaries
  and a map of the district;
               (2)  state the election date; and
               (3)  state the total number of votes cast for and
  against the ballot proposition.
         (d)  The board [lead governmental entity] must file in the
  deed records of the county in which the district is located a
  resolution [or order] issued under Subsection (a).
         SECTION 7.  Section 336.155, Local Government Code, is
  amended by adding Subsection (c) to read as follows:
         (c)  A district and a political subdivision may enter into an
  agreement for any district purpose.
         SECTION 8.  Subchapter E, Chapter 336, Local Government
  Code, is amended by adding Section 336.160 to read as follows:
         Sec. 336.160.  DONATION OF LIBRARY ASSETS BY COUNTY OR
  MUNICIPALITY. A county or municipality, including the lead
  governmental entity, that creates or joins the district may donate
  library assets to the district without compensation from the
  district.
         SECTION 9.  Subsection (a), Section 336.254, Local
  Government Code, is amended to read as follows:
         (a)  The board by order may decrease or abolish the ad
  valorem tax rate or may call an election to increase, decrease, or
  abolish the ad valorem tax rate. In an election under this
  subsection and except as provided by Subsection (b), the board
  shall use the procedures for a tax election under Subchapter B.
         SECTION 10.  Section 336.351, Local Government Code, is
  amended to read as follows:
         Sec. 336.351.  PROCEDURE FOR [NO] DISSOLUTION.  (a)  The
  board by resolution may dissolve a district if the governing body of
  the lead governmental entity by resolution consents to the
  dissolution.
         (b)  If the district has debt, including any outstanding
  bonds, the district shall remain in existence for the sole purpose
  of paying its debt and transferring any remaining assets. The board
  shall transfer to the lead governmental entity any assets that
  remain after satisfaction of all debt.
         (c)  After the debt is paid and the assets are transferred,
  the district is [A district created under this chapter may not be]
  dissolved.
         SECTION 11.  The following are repealed:
               (1)  Section 336.024, Local Government Code;
               (2)  Section 336.025, Local Government Code;
               (3)  Section 336.026, Local Government Code; and
               (4)  Subsection (c), Section 336.254, Local Government
  Code.
         SECTION 12.  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, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 940 passed the Senate on
  March 28, 2007, by the following vote:  Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 940 passed the House on
  May 16, 2007, by the following vote:  Yeas 149, Nays 0, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor