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