HomeMy WebLinkAboutIR 7189 4NFO(tMAL REPORT TO CITY COUNCIL MEMBERS No. 7189
Four To the Mayor and Members of the City Council May 7, 1987
Subject: PROPOSED LEGISLATION FOR ESTABLISHMENT OF
A CRIME CONTROL DISTRICT
State Senator Hugh Parmer has introduced Senate Bill No. 1541 that provides
for the establishment of a Crime Control District. The District would have
the power of eminent domain and would be authorized to levy a sales tax of up
to $.Ol to fund its programs and activities. This is a bracketed bill that
applies to Tarrant County only. Attached is a summary of the legislation,
and information sheet and a copy of the legislation that has been provided by
Senator Parmer's office.
During the Pre-Council meeting on April 27, 1987, the City Council directed
the staff to identify the potential impact that this legislation would have
on the City of Fort Worth. Outlined below is a summary of staff comments.
BOARD COMPOSITION
The District would be governed by a nine member Board of Directors. The
Board would have the following representation:
Two from Fort Worth
Two from Arlington
One from Commissioner's Court
One criminal district judge
One from the District Attorney's Office
Two from municipalities other than Fort Worth and Arlington
It is estimated that Fort Worth makes up about 40% of the county's
population. Also, according to the Tarrant Appraisal District's information
for the 1986 tax year, Fort Worth taxpayers paid 36.8% of all ad valorem
taxes paid to Tarrant County. Arlington taxpayers paid 22.4% and the next
largest city, `Bedford, paid 3.7%.
According to the information sheet, a $.Ol countywide sales tax in Tarrant
County would generate about $80 million annually. *The City's Finance
Director estimates that a $.Ol sales tax for Fort Worth alone would generate
about $35 million.
In light of the above information, it appears that Fort Worth does not have a
level of representation on the Board that reflects its size and potential
financial contribution to the District.
By way of comparison, the Emergency Communications District Board consists of
five voting members - 2 appointed by Fort Worth, I appointed by Arlington, 1
appointed by the Commissioner's Court and 1 by the Mayor's Council .
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No._Ll 81 p.2
To the Mayor and Members of the City Council May 7, 1987
Subject:
PROPOSED LEGISLATION FOR ESTABLISHMENT OF
A CRIME CONTROL DISTRICT
Board members would serve three year terms and there is no limit to how long
they can serve. This is contrary to the position the Council has taken on
its appointed boards and commissions.
The Board would be an independent body not answerable to anyone. Although
the members will not have been elected by the citizenry, it would have the
power of eminent domain. In addition, neither the budget nor programs and
activities require the approval of the cities. In contrast, the Emergency
Communications District Budget must be presented to the City, Arlington,
Commissioner's Court and Mayor's Council for approval. The D/FW Airport and
the Fort Worth Transit Authority budgets are also presented to the City
Council .
FINANCING CREATION OF THE DISTRICT
The cost of creating the District would be shared by Fort Worth (40%),
Tarrant County (40%) and Arlington (20%). If the District is created, the
cities and county would be reimbursed for actual expenses incurred in the
creation of the District.
There does not seem to be a correlation between representation on the Board
and the costs to be incurred for financing the creation of the District. In
addition, in the absence of a specific reference in the legislation, it is
assumed that if the District is not created the expenses would be absorbed by
the cities and the County.
DISTRICT BOUNDARIES
The proposed district will have boundaries corresponding to those of Tarrant
County. The legislation states that "a district cannot be composed of more
than one county." This clause causes some problems since a portion of the
City's corporate limits currently extend into Johnson County and future
annexations will likely result in an extension into Denton County.
Since crime does not stop at county lines, a case could be made for a
"regional" concept that involves several counties.
SALES TAX
The District would be authorized to levy a sales tax in one-eighth cent
intervals up to one cent. The decision regarding the amount of the tax will
be that of the Board.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No, 7189 P.3
...........
To the Mayor and Members of the City Council May 7, 1987
Subject: PROPOSED LEGISLATION FOR ESTABLISHMENT OF
A CRIME CONTROL DISTRICT
Several concerns were identified regarding the levying of a $.Ol sales tax:
1 . Sales taxes are considered regressive and result in a heavier burden
being placed on lower income individuals;
2. Although a decision has not been made by the state legislature, there
is speculation that there will be an increase in the state sales tax,
perhaps as much as $.02, in order to generate additional revenue.
The impact of adding a potential $.03, $.02 of which would be beyond
the City's control, could result in Fort Worth having one of the
highest sales tax rates in the State. This could hamper future
economic development efforts; and
3. Although there are no specific plans at this time, the approval of an
additional sales tax effectively reduces the City's potential use of
this financing mechanism for future projects.
DISTRICT RESPONSIBILITIES AND LIMITATIONS ON EXPENDITURES
The legislation provides an extensive list of programs and activities
eligible for funding. Since the City is currently funding some of
the programs mentioned and the legislation does not allow funding that
"significantly duplicates existing programs...", the City would not be able
to realize any financial relief.
The District also would not "fund a facility or equipment if sufficient state
or local funds are available to fund the facility or equipment". It is
assumed that the decision on the availability of state and local funds would
be made by the Board.
The legislation also states that a "police" department cannot be funded
directly. If that is the case, sheriffs' departments and other law
enforcement agencies should be included in this category.
Several of the programs mentioned - e.g. crime lab, additional courts, abused
children facility - were approved by the voters in the recent Tarrant County
bond program. That program, coupled with previously approved City public
safety bond programs, represents a significant investment on the part of Fort
Worth citizens.
DISSOLUTION OF THE DISTRICT
If the district is abolished, the District would convey to the County:
1 . Title to land, buildings, improvements and equipment;
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
JNFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7189 p.4
h'.V TS
DoE coal To the Mayor and Members of the City Council May 7, 1987
Subject:
PROPOSED LEGISLATION FOR ESTABLISMENT OF
A CRIME CONTROL DISTRICT
2. Operating funds and reserves for operating expenses and funds that
have been budgeted for the remainder of the fiscal year;
3. Taxes levied by the district during the current year;
4. Funds established for payment of indebtedness assumed by the
District; and
5. Accumulated employee retirement funds, if applicable.
This provision does not appear equitable in light of the financial
contributions that would be made by the citizens of Fort Worth.
STATE FUNCTION
This would be a local option bill. However, if it is approved, the taxpayers
in Tarrant County would end up supporting a portion of the criminal justice
system that is largely the responsibility of the State.
The Governor is currently proposing the construction of regional prison
facilities. In addition, there are other bills pending that could result in
programs such as shock probation. The potential exists for an overlap in
criminal justice legislation.
There is a general belief that even if the District constructed long-term
detention facilities, when that is combined with the hiring of additional
district attorneys, more courts, judges and probation officers, prison
overcrowding will continue to be a problem.
SUMMARY
The comments above are not considered to be all-inclusive. There are several
other sections of the proposed bill that could be of concern to the City
Council. There is a general consensus that something must be done to more
effectively address the crime problem in Fort Worth and Tarrant County.
However, there is a delicate balance between what should be local and State
responsibility. Although the State is currently experiencing some financial
difficulties, local governments and counties must be careful not to assume
long-term obligations which are not historically their responsibility. The
citizens of Fort Worth and Tarrant County and their duly elected officials
have continuously demonstrated their willingness to support local criminal
justice efforts through the approval of bond programs and the payment and use
of ad valorem taxes. Should the State identify appropriate funding vehicles
to meet their criminal justice system responsibilities, doubtless these would
also be supported by local constituents.
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7189 p.5
May 7, 1987
To the Mayor and Members of the City Council
00 to 0
Subject: PROPOSED LEGISLATION FOR ESTABLISHMENT OF
A CRIME CONTROL DISTRICT
If the City Council is in need of any additional information or a more
detailed analysis, it will be supplied upon request.
Douglas Harman
City Manager
DH/sf
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Attachment
[ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
SUMMARY OF THE CRIME CONTROL DISTRICT LEGISLATION
The Crime Control District Legislation is divided into two main
sections: (1) the Crime Control District Act (p. 1) that author-
izes the creation of the district and provides its responsibil-
ities and restrictions, and (2) the Crime Control District Sales
and Use Tax Act (p. 38) that provides the sales tax to fund the
activities and programs authorized in the Crime Control District
Act.
Crime Control District Act
The Crime Control District Act is divided into 10 articles: Art.
1 contains the general provisions; Art. 2 sets up the temporary
board of directors to develop the proposal for creating the
district; Art. 3 creates an advisory committee to make recommen-
dations to the temporary board and to the regular board once the
district is created; Art. 4 provides the method for holding the
election to create the district; 'Art. 5 provides the general
provisions for district administration; Art. 6 provides specific
powers and duties of the permanent board of directors of the
district; Art. 7 provides the responsibilities regarding the
district' s finances; Art. 8 prohibits the board from issuing
bonds and other obligations; Art. 9 provides the method for hold-
ing elections for eliminating the district; and Art. 10 prohibits
the State from financially assisting the district. The remaining
discussion of the Crime Control District Act focuses on the most
important sections of the Act.
Article 1 . The bill as drafted applies only to Tarrant County
(Sec. 1. 05) . The district boundaries would be the same as the
boundaries of the county (Sec. 1 .06) . a
Article 2 . Immediately after the effective date of the Act the
nine temporary members of the board of directors would take
office. The board members would include a criminal district
judge, the district attorney, the mayor or city council member of
Fort Worth and Arlington, the mayor or city council member of
another city in the county, the county judge or a county commis-
sioner, a resident from each of Fort Worth and Arlington, and a
resident from another city in the county (Sec. 2.01) .
Article 3. This article authorizes the temporary board to adopt
0P of a resolution creating a 19 member advisory committee consisting
of the county sheriff, the police chiefs of Fort Worth and
Arlington, the police chiefs of two other cities in the county,
Summary
Page 2
two professors with specialties in criminal justice, two people
who have been victims of crime, two members of the business
community, two members under 21 , a parole officer, a probation
officer, and four members of the general public (Sec. 3.02) . The
board members would appoint the advisory committee except for the
police chiefs of Fort Worth and Arlington (Sec. 3.02) . The advi-
sory committee would be directed to investigate crime control and
crime prevention strategies, make recommendations to the board,
and conduct studies of the criminal justice system (Sec. 3.08) .
The advisory committee would continue to exist after the creation
of the district (Sec. 3.08) .
Article 4 . The district could be created only after an election'
at which the voters approved the creation of the crime control
district and authorized a one cent sales tax (Sec. 4 .01) . The
board could not call the election until they adopted a two year
budget and two year operating plan (Sec 4 . 02) that provided
specific details on the future operations of the proposed
district (Sec. 4 .09) . The costs of the creation of the district
would be divided as follows: 40 percent Tarrant County, 40
percent Fort Worth, and 20 percent Arlington (Sec. 4 .10) . These
expenses would be reimbursed if the district is created (Sec.
4.10) .
Article 5. This article provides that the appointment of the
permanent board of directors would be done in the same manner as
the appointment of the temporary board members (Sec. 5.01; Sec.
2.01) . The district may hire employees or pay for the employment
of all necessary employees (Sec. 5.10) .
Article 6 . The district is authorized to finance a multitude of
different programs and facilities, including a crime analysis
center, an automated fingerprint analysis center, additional
probation and parole officers, additional criminal courts ,
judges, and prosecutors, police/law enforcement related programs,
community-related crime prevention programs, treatment and
prevention programs, and court/prosecution services (Sec 6 .01 ) .
The district is prohibited from (1) funding any program or facil-
ity that significantly or unnecessarily duplicates existing
programs or facilities, (2) spending more than 5 percent of the
budget on administration, and (3) continuing to fund a program or
facility if the city or county fails to maintain its support of
the program or facility (Sec. 6.01) . It is the expressed intent
of the legislature that the district should contract for staff,
facilities, equipment, and programs to the maximum extent possi-
ble (Sec. 6.11) .
Summary
Page 3
Article 7 . The board is required to have an annual audit of the
financial condition of the district (Sec. 7 .02) . The board is
required to hold a public hearing before adopting an annual budg-
et (Sec. 7.05) .
Article 8 . The board is prohibited from issuing or selling
revenue and general obligation bonds (Sec. 8.01) .
Article 9. Five years after the district is created, a petition
of registered voters can require an election terminating the
district (Sec. 9.01) ; the petition must have a number of signa-
tures equal to or greater than 5 percent of the number of votes
cast in the county for all candidates for governor in the last
election (Sec. 9.07) . If a termination election is not required
by petition or the board within eight years of the creation of
the district, then a termination election is required (Sec.
9.01) . An election to terminate the district must be held at
least every eight years (Sec 9. 01) . If the district is termi-
-nated by election, then the district is required to convey to the
county all buildings, funds, levied taxes, and liabilities (Sec.
9.15) . The county is authorized to continue the sales tax until
the liabilities of the district are paid off (Sec. 9. 15) .
Article 10 . The State is prohibited from becoming obligated for
the support, maintenance, or abolishment of the district, and the
legislature may not make a direct appropriation for the
construction, maintenance or improvement of a district facility
(Sec. 10.01) .
Crime Control District Sales and Use Tax Act
The language in this part of the bill is fairly standardized
language for creating a sales tax. The important provisions of
this part of the legislation include:
(1) the sales tax can be set from 0 cents to 1 cent in incre-
ments of 1/8 cent (Sec 4) ; and
(2) the rate is automatically rolled back if the adopted
budget is less than the estimated amount of available revenues
and balances by certain amounts (Sec. 5) . This provision is
intended to avoid the accumulation of significant surpluses as
has allegedly happened with some transit authorities.
I j-QRKA ION SL=: CRIME CONTROL DISTRICT LEG I SLAT I ON
Senator Hugh Farmer is proposing legislation which would
create a Crime Control District (District) in Tarrant County.
The legislation is bracketed and therefore would not affect other
Texas counties . The purpose(s ) of the District are to:
1 . Increase the deterrents against committing crimes by
accelerating the speed and improving the abilities of
the local criminal justice system;
2. Increase the deterrents against committing crimes by
facilitating the coordination among the many components
of the criminal justice system in counties with
numerous municipalities; and
3. Assist criminals to rehabilitate by expanding existing
programs and providing new programs that help make them
constructive and responsible citizens .
In order to finance these activities , the District would
have the power to impose a countywide sales tax of up to SO . 01 .
The District would not have to levy the entire 5O . 01 tax, but
rather , could levy a partial sales tax in increments of
$0.00125. According to the Texas Comptroller , a $0 . 01 countywide
sales tax in Tarrant County would generate approximately $80
million annually. Additionally, the District would have the
power of imminent domain.
The District would be governed by a nine member Board of
Directors . These nine members would include:
1. A criminal district judge;
2. The District Attorney;
3 . 'fie mayor or city council member of Fort Worth;
4 . The mayor or city council member of Arlington;
S . The mayor or city council member from another Tarrant
County municipality;
6 . The County Judge or a County Commissioner ;
7 . A private sector resident from Fort Worth;
8. A private sector resident from Arlington; and
9 . A private sector resident from another Tarrant County
municipality.
The Hoard of Directors would be empowered to create an
Page 2
Advisory Committee to provide consultation concerning the
creation, administration, powers , duties , operation, and
financing of the district . The Advisory Committee shall be
comprised of the following :
1 . The police chiefs of Fort Worth and Arlington;
2 . Two police chiefs from other warrant County
municipalities ;
3 . Two criminal justice professors of Texas colleges ;
4 . Two people who have been crime victims;
S . Two representatives from the business community;
6. Two persons under the age of 21 years ;
7. A parole officer ;
S. A probation officer ; and
S. Four members of the general public .
The Board of Directors shall create the District and
authorize a tax only if approved by a majority of the qualified
voters of the County voting at an election called and held for
that purpose . If the voters approve the District , the Board
*hall employ an Administrator , an Assistant Administrator , and an
attorney. The Administrator is responsible for administrating
the District and is authorized to employ other individuals if
necessary.
The bill ' s intent is to limit the actual number of District
employees. It authorizes administrative expenditures to not
exceed S% of the total budget . It 'also encourages the District
to contract with other public and private entities for
administrative support . At the time of the election creating the
District , the Board must have developed a two year operating
budget . This would allow for the establishment of the tax rate
and also indicate the amount to be expended for administrative
services .
After the District is created, the Board will develop a
budget annually. In order that the District not stockpile funds ,
all funds which were not expended during the previous fiscal year
must be utilized during the following year and this amount
e01*1 subtracted from the total necessary funds needed when calculating
the tax rate.
Page 3
Once the District is created by the voters , it cannot be
dissolved by the electorate until 5 years have past . If there is
not a recall after 5 years , a sunset vote must be taken after 8
years of District operation.
Upon creation of the District , the District may finance and
operate district facilities and crime control /crime prevention
programs including, but not limited to, the following :
1 . Police/law enforcement related programs;
2. Community-related crime prevention strategies;
3. Specific treatment/prevention programs ; and
4. Court/prosecution services;
The District may not finance the following :
1 . Any program that significantly duplicates existing
programs or programs scheduled to begin;
r., 2. Any facility that unnecessarily duplicates existing
facilities or facilities scheduled to begin operation
or construction;
3. Any equipment that unnecessarily duplicates existing
equipment or equipment scheduled to begin operation;
4. Directly fund a police department ;
S . Spend more than 5% of its budget on administration;
6. A program if sufficient state or local funds are
available to fund the program;
7. A facility or equipment if sufficient state or local
funds are available to fund the facility or equipment ;
and
8. Continue to fund a program, facility or equipment in a
city or county if the city or county fails to maintain,
the same level of effort in the program, facility, or
equipment as it did the year before the district was
created, or in any following year , which ever is
greater .
The District would operate in a fashion in which criminal
justice agencies would develop strategies for new and innovative
programs . This collaboration could occur within one agency;
r
t F
i .
,
Page 4
between, two or more agencies; within the Advisory Committee, or
within the Board itself. Once a program was developed, a grant
application would be submitted to the Board, via staff and
Advisory Committee , for approval . If the program was approved by
the Board,, its costs would be incorporated into the Annual
Budget. Staff would be responsible for monitoring the project
and reporting its progress and successes for failures) to the
Board. Additionally, the Staff would develop a central
repository of countywide statistical data to analyze the impact
of the District' s total operations on the crime rate .
EMITIVAS AND NATIVES
Undoubtedly the greatest negative of the legislation is that
it would create another special taxing district in Tarrant
County. It would also allow for the first time, the levying of a
sales tax in the non-incorporated areas of the County. The
Commissioners Court has been seeking that authority from the
Legislature for a long time and it has consistently been denied .
The greatest positive from the program is that it would
provide the necessary funds to implement innovative programs that
could positively impact crime in Fort Worth/Tarrant County. Both
the city and county governments continually state that there are
not sufficient tax dollars available to fully fund all law
enforcement/criminal justice needs . This legislation would
provide those funds and would allow our local criminal justice
agencies the opportunity, and the resources , to implement those
programs which they believe are critical to effect crime control .
4/21 /87
CC0487LE
TABLE OF CONTENTS
SECTION 1. The Crime Control District Act is enacted to
read as follows:
ARTICLE 1. GENERAL PROVISIONS
SECTION 1.01. SHORT TITLE.
SECTION 1.02. PURPOSES.
SECTION 1.03. LEGISLATIVE FINDINGS.
SECTION 1.04. DEFINITIONS.
SECTION 1.05. COUNTIES AUTHORIZED TO CREATE DISTRICTS.
SECTION 1.06. BOUNDARIES.
ARTICLE 2. TEMPORARY DIRECTORS
SECTION 2.01. APPOINTMENT OF TEMPORARY DIRECTORS;
RESTRICTIONS.
SECTION 2.02. TEMPORARY CHAIRMAN
SECTION 2.03. TIME RESTRICTION FOR APPOINTING BOARD
MEMBERS.
SECTION 2.04. DESIGNATED ALTERNATE.
SECTION 2.05. VACANCY IN OFFICE.
ARTICLE 3. ADVISORY COMMITTEE
SECTION 3.01. CREATION OF THE CRIME CONTROL DISTRICT
ADVISORY COMMITTEE.
SECTION 3.02. APPOINTMENT OF MEMBERS.
SECTION 3.03. TERMS OF OFFICE; VACANCY.
SECTION 3.04. DESIGNATED ALTERNATES.
SECTION 3.05. COMPENSATION.
SECTION 3.06. OPEN MEETINGS AND OPEN RECORDS.
SECTION 3.07. LIABILITY.
SECTION 3.08. POWERS AND DUTIES OF THE ADVISORY
COMMITTEE.
ARTICLE 4. CREATION OF DISTRICT
SECTION 4.01. CREATION ELECTION.
SECTION 4.02. ORDERING ELECTION.
SECTION 4.03. ELECTION ORDER.
SECTION 4.04. NOTICE.
SECTION 4.05. ELECTION DATE.
SECTION 4.06. BALLOT PROPOSITION.
SECTION 4.07. CANVASSING RETURNS.
SECTION 4.08. EXPIRATION OF ACT.
SECTION 4.09. OPERATING PLAN AND BUDGET.
SECTION 4.10. FINANCING THE CREATION OF THE DISTRICT.
ARTICLE 5. DISTRICT ADMINISTRATION
SECTION 5.01. BOARD OF DIRECTORS.
SECTION 5.02. DESIGNATED ALTERNATE.
1
SECTION 5.03. BOND.
SECTION 5.04. BOARD VACANCY.
SECTION 5.05. OFFICERS.
SECTION 5.06. OFFICERS' TERMS; VACANCY.
SECTION 5.07. COMPENSATION.
SECTION 5.09. VOTING REQUIREMENT.
SECTION 5.09. ADMINISTRATOR, ASSISTANT ADMINISTRATOR, AND
ATTORNEY.
SECTION 5.10. DISTRICT EMPLOYEES.
SECTION 5.11. GENERAL DUTIES OF ADMINISTRATOR.
SECTION 5.12. RETIREMENT BENEFITS.
ARTICLE 6. POWERS AND DUTIES
SECTION 6.01. DISTRICT RESPONSIBILITIES, LIMITATIONS ON
EXPENDITURES.
SECTION 6.02. MANAGEMENT, CONTROL, AND ADMINISTRATION.
SECTION 6.03. DISTRICT RULES.
SECTION 6.04. METHODS AND PROCEDURES.
SECTION 6.05. DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT.
SECTION 6.06. CONSTRUCTION CONTRACTS.
SECTION 6.07. DISTRICT OPERATING AND MANAGEMENT
CONTRACTS.
SECTION 6.08. EMINENT DOMAIN.
SECTION 6.09. EXPENSES FOR MOVING FACILITIES OF RAILROADS
AND UTILITIES.
SECTION 6.10. REIMBURSEMENT FOR SERVICES.
SECTION 6.11. SERVICE CONTRACTS.
SECTION 6.12. DONATIONS, GIFTS, AND ENDOWMENTS.
SECTION 6.13. AUTHORITY TO SUE AND BE SUED.
ARTICLE 7. DISTRICT FINANCES
SECTION 7.01. FISCAL YEAR.
SECTION 7.02. ANNUAL AUDIT.
SECTION 7.03. DISTRICT AUDIT AND RECORDS.
SECTION 7.04. ANNUAL BUDGET.
SECTION 7.05. NOTICE; HEARING; ADOPTION OF BUDGET.
SECTION 7.06. AMENDING BUDGET.
SECTION 7.07. LIMITATION ON EXPENDITURES.
SECTION 7.08. SWORN STATEMENT.
SECTION 7.09. SPENDING AND INVESTMENT LIMITATIONS.
SECTION 7.10. DEPOSITORY.
ARTICLE 8. BONDS
SECTION 8.01. PROHIBITION AGAINST BONDS.
ARTICLE 9. RESCISSION ELECTION; SUNSET.
SECTION 9.01. RESCISSION ELECTION.
SECTION 9.02. METHODS FOR INITIATING ELECTION.
SECTION 9.03. APPLICATION FOR PETITION; ISSUANCE.
SECTION 9.04. CONTENTS OF APPLICATION.
SECTION 9.05. CONTENTS OF PETITION.
2
SECTION 9.06. COPIES.
SECTION 9.07. FILING OF PETITION; NUMBER OF SIGNATURES.
SECTION 9.08. REVIEW BY COUNTY CLERK.
SECTION 9.09. CERTIFICATION.
SECTION 9.10. ORDER OF ELECTION.
SECTION 9.11. APPLICATION OF ELECTION CODE.
SECTION 9.12. RESULTS OF ELECTION.
SECTION 9.13. CONTEST OF ELECTION.
SECTION 9.14. CONTESTEE.
SECTION 9.15. EFFECTS OF RESCISSION ELECTION.
ARTICLE 10. PROHIBITION OF STATE ASSISTANCE
SECTION 10.01. PROHIBITION OF STATE ASSISTANCE.
SECTION 2. The Crime Control District Sales and Use Tax
Act is enacted to read as follows:
SECTION 1. SHORT TITLE.
SECTION 2. DEFINITIONS.
SECTION 3. AUTHORITY TO ADOPT TAX.
SECTION 4. AUTHORIZED RATES.
SECTION 5. SETTING RATES.
SECTION 6. EFFECTIVE DATES OF ADOPTION OF AND CHANGES IN
THE TAX.
SECTION 7. TEMPORARY CONTINUATION OF THE TAX.
SECTION S. NOTIFICATION OF THE COMPTROLLER.
SECTION 9. COMBINATION OF TAXES; EXCLUSION.
SECTION 10. EXCISE TAX IMPOSED; PROPERTY SUBJECT TO USE
TAX.
SECTION 11. EXEMPTION FOR TELECOMMUNICATIONS SERVICES.
SECTION 12. DUTIES OF COMPTROLLER.
SECTION 13. PROVISIONS GOVERNING COLLECTION BY
COMPTROLLER.
SECTION 14. FUNDS DEPOSITED WITH STATE TREASURER;
SURETY BONDS FOR COMPTROLLER AND EMPLOYEES.
SECTION 15. TRANSMITTAL OF TAX COLLECTED TO DISTRICT
TREASURER; DEDUCTION FOR STATE SERVICES.
SECTION 16. USE OF FUNDS.
SECTION 17. RULES.
SECTION 18. SUIT FOR DELINQUENCY; SATISFACTION FROM
SEIZED PROPERTY.
SECTION 19. ELECTION CONTEST.
SECTION 3. EMERGENCY; EFFECTIVE DATE.
3
By —B. No.
A BILL TO BE ENTITLED
1 AN ACT
2 relating to the creation, administration, powers, duties, opera-
3 tion, financing, evaluation, and termination of crime control
4 districts in certain counties; authorizing a tax; prohibiting the
5 issuance of bonds; and granting the power of eminent domain.
6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7 SECTION 1 . The Crime Control District Act is enacted to
8 read as follows:
9 ARTICLE 1. GENERAL PROVISIONS
10 SECTION 1.01 . SHORT TITLE. This Act may be cited as the
11 Crime Control District Act.
12 SECTION 1 .02. PURPOSES. The intent of the legislature is
13 to address the widespread and growing problem of crime in the
14 medium-sized urban counties of Texas with numerous munici-
15 palities. It is the further intent to decrease per capita crime
16 rates by attacking the problem in three ways:
17 (1) increasing the deterrents against committing crimes by
18 accelerating the speed and improving the abilities of the local
19 criminal justice system;
20 (2) increasing the deterrents against committing crimes by
21 facilitating the coordination among the many components of the
22 criminal justice system in counties with numerous municipalities;
23 and
1
i
1 (3) assisting criminals to rehabilitate by expanding A .
2 existing programs and providing new programs that help make them +
3 constructive and responsible citizens.
1
4 SECTION 1.03. LEGISLATIVE FINDINGS. The legislature
5 finds that:
6 (1) Unacceptable levels of crime threaten the lives and
7 property of citizens in medium-sized urban counties with numerous
8 municipalities;
9 (2) Medium-sized urban counties have greater needs than
10 the smaller-sized urban counties and do not enjoy the cost saving
11 benefits that economies-of-scale provide the larger-sized urban
12 counties;
13 (3) Urban counties with numerous municipalities need to
14 spend more funds coordinating the information and components of
15 the criminal justice system than do urban counties with fewer
16 municipalities;
17 (4) The revenue currently available to the state and to
18 local governments is not sufficient to effectively reduce the
19 levels& of crime in medium-sized urban counties with numerous
20 municipalities;
21 (5) Ultimate responsibility for decreasing crime rests
22 with local governments unless the criminal justice system is so
23 overloaded that local governments are unable to affect the levels
24 of crime;
25 (6) To the extent local governments can work together to
26 create additional funds to overcome the overloaded criminal
2
1 justice system, the responsibility for decreasing crime remains
2 with local governments; •
3 (7) Additional revenue for these local governments can be
t
4 spent on a variety of new and existing programs to help provide
5 swift and effective administration of our criminal justice
6 system; and
7 (8) The programs would provide a deterrent against crimi-
8 nal activity and would assist in the rehabilitation of criminals.
9 SECTION 1 .04. DEFINITIONS. In this Act:
10 (1) "District" means a crime control district created
11 pursuant to this Act.
12 (2) "Board" means the board of directors of the district.
13 (3) "Director" means a member of the board.
14 (4) "Advisory Committee" means the County
15 Crime Control District Advisory Committee.
16 *SECTION 1.05. COUNTIES AUTHORIZED TO CREATE DISTRICTS.
17 (a) A crime control district may be created and established in a
18 county:
19 (1) with a population of more than 750 ,000 but less than
20 1,250,000 according to the most recent federal decennial census;
21 and
22 (2) with more than 30 incorporated cities according to
23 the most recent federal decennial. census.
24 (b) If created, the district must be maintained, oper-
25 ated, and financed in the manner provided by this Act.
26 SECTION 1 . 06. BOUNDARIES. The boundaries of the district
27 are coextensive with the boundaries of a county authorized to
3
1 create a district under Section 1 .45 . A district cannot be
2 composed of more than one county.
3 ARTICLE 2. TEMPORARY DIRECTORS
4 SECTION 2.01 . APPOINTMENT OF TEMPORARY DIRECTORS;
5 RESTRICTIONS: (a) On or immediately after the effective date of
6 this Act, the following shall serve as the nine temporary direc-
7 tors of the district:
8 (1) a criminal district judge of the county, as appointed
9 by a majority of the judges of district courts and criminal
10 district courts, where the judicial district is completely or
11 partially within the boundaries of the county;
12 (2) the district attorney of the county;
13 - (3) the mayor or city council member of the city in the
14 county with the largest population, as appointed by a majority of
15 the city council;
16 (4) the mayor or city council member of the city in the
17 county with the second largest population, as appointed by a
18 majority of the city council;
19 (5) the mayor or city council member of a municipality in
20 the county other than the two cities of the county with the larg-
21 est populations; the members shall be appointed by a majority of
22 the mayors of municipalities in the county other than the two
23 cities with the largest populations.
24 (6) the county judge or a county commissioner, as
25 appointed by a majority of the commissioners court;
26 (7) a resident of the city in the county with the largest
27 population, as appointed by a majority of the city council;
4
1 (8) a resident of the city in the county with the second
2 largest population, as appointed by a majority of the city coun-
3 cil; and
4 (9) a resident of a municipality in the county, other
5 than the two cities of the county with the largest populations,
6 as appointed by a majority vote of the governing bodies of the
7 municipalities in the county other than the two cities with the
8 largest populations.
9 (b) The board members appointed under Subsections
10 2.01 (a) (7 through 9) :
11 (1) may not currently be an elected official or employee
12 of the county, of a municipality, or of a political subdivision
13 of the state in the county; and
14 (2) may not be related within the second degree by affin-
15 ity or the third degree by consanguinity to a person who is
16 currently an elected official or employee of the county, of a
17 municipality, or of a political subdivision of the state in the
18 county.
19 (c) In making the appointments to the board, the appoint-
20 ing bodies shall strive to achieve representation by all the
21 population groups of the district with regard to sex, race, and
22 ethnicity.
23 SECTION 1.02. TEMPORARY CHAIRMAN. The chairman of the
24 board shall be elected by the members of the board from one of
25 their membership.
26 SECTION 2 .03. TIME RESTRICTION FOR APPOINTING BOARD
27 MEMBERS. (a) Within sixty days of the effective date of this
5
1
1 Act, a majority of the following groups shall each make their
2 appointments of people to serve on the temporary board, as
3 provided by Subsections 2.01 (a) (1 through 9) :
i
4 (1) the judges of district courts and criminal courts
5 where the judicial district is completely or partially within the
6 boundaries of the county;
7 (2) the city council of the city in the county with the
8 largest population;
9 (3) the city council of the city in the county with the
10 second largest population;
11 (4) the governing bodies of municipalities in the county,
12 other than the two cities with the largest populations; and _
13 ' (5) the commissioners court.
14' (b) Within 15 days of the effective date of this Act, the
15 board shall elect the chairman as provided by Section 2.02 .
16 •SECTION 2.04 . DESIGNATED ALTERNATE. A member of the
17 board, who is appointed under Subsections 2.01 (x) (1 through 6) ,
i8 may designate an alternate to act as an official board member.
19 The chairman is not authorized to designate an alternate.
20 SECTION 2.05 . VACANCY IN OFFICE. A vacancy in the office
21 of temporary director shall be filled by an appointment in the
22 same manner that the vacant position was originally filled.
23 ARTICLE 3. ADVISORY COMMITTEE
24 SECTION 3.01 . CREATION OF THE CRIME CONTROL DISTRICT ADVI-
25 SORY COMKITTEE. Upon adoption of a resolution by a majority of
26 the members of the temporary board of the district, the
27 County Crime Control District Advisory Committee
6
i
1 is created. The temporary board and, if the district is created,
2 the permanent board shall consult with the advisory committee on
3 the creation, administration, powers, duties, operation, and
4 financing of the district.
5 SECTION 3.02. APPOINTMENT OF MEMBERS. (a) On or imme-
6 diately after the adoption of the resolution creating the advi-
7 sory committee, the following shall serve as committee members:
8 (1) the police chiefs of the two cities of the county
9 with the largest populations;
10 (2) two police chiefs of municipalities in the county
11 other than the two cities with the largest populations, as
12 appointed by a majority of the board;
' 13 (3) two professors of Texas colleges with specialties in
14 criminal justice as appointed by a majority of the board;
15 (4) two people who have been victims of crimes, as
16 approved by a majority of the board;
17 (5) two members of the business community as appointed by
is a majority of the board;
19 (6) two members under the age of 21 when appointed, as
20 appointed by a majority of the board;
21 (7) a parole officer as appointed by a majority of the
22 board;
23 (8) a probation officer as appointed by a majority of the
24 board;
25 (9) four members of the general public as appointed by a
26 majority of the board.
7
1 (b) Of the two members of the advisory committee
2 appointed under Subsections 3.02 (a) (4 through 6) , one member must
3 be a resident of either of the two cities in the county with the
4 largest populations and one member must be a resident of a
5 municipality in the county other than the two cities with the
6 largest populations.
7 (c) Of the three members of the advisory committee who
8 are required under Subsection (b) to be a resident of either of
9 the two cities in the county with the largest populations, two
10 must be residents of the city in the county with the largest
11 population, and one must be a resident of the city in the county
12 with the second largest population.
13 (d) Of the four members of the advisory committee
14 appointed under Subsection 3.02 (x) (9) , one member must be a resi- 'fit
15 dent of the city in the county with the largest population, one
16 member must be a resident of the city in the county with the
17 second largest population, and two members must be residents of a
18 municipality in the county other than the two cities with the
19 largest populations.
20 (e) The members of the advisory committee .appointed under
21 Subsections 3.02 (a) (7 through 9) must be residents of the
22 district.
23 M The board shall appoint the chairman of the advisory
24 committee from among the members of the committee.
25 (g) In making the appointments to the advisory committee,
26 the board shall strive to achieve representation by all the popu-
8
1 lation groups of the district with regard to sex, race, and E
2 ethnicity.
3 SECTION 3 .03 . TERMS OF OFFICE; VACANCY. (a) Members of
■
4 the advisory committee serve staggered terms of three years. Six
5 members' terms expire September 1 of each year. The initial
6 appointees under this section shall draw lots to determine the
7 six members who shall serve until September 1, 1988 , the six
8 members who shall serve until September 1 , 1989, and the six
9 members who shall serve until 1990 .
10 (b) In the event of a vacancy of a committee member
11 appointed under Subsections 3.02 (a) (3 through 9) , the position
12 shall be filled by appointment in the same manner that the vacant
13 position was originally filled.
14 SECTION 3.04 . DESIGNATED ALTERNATE. A member of the
15 advisory committee, who is appointed under Subsections 3 .02 (a) (1
16 and 2)►, may designate an alternate to act as an official commit-
17 tee member. The chairman is not authorized to designate an
18 alternate.
19 SECTION 3.05. COMPENSATION. A member of the advisory
20 committee serves without compensation, but if not a resident of
21 the county, may be reimbursed for actual expenses incurred in the
22 performance of official. duties.
23 SECTION 3.06. OPEN MEETINGS AND OPEN RECORDS. The advi-
24 sory committee is subject to the open meetings law, Chapter 271 ,
25 Acts of the 60th Legislature, Regular Session, 1967 (Article
26 6252-17, Vernon's Texas Civil Statutes) , and the Administrative
9
1
1 Procedure and Texas Register Act (Article 6252-13a, Vernon' s
2 Texas Civil Statutes) .
3 SECTION 3.07 LIABILITY. A member of the advisory commit-
4 tee is not liable in civil damages or for criminal prosecution
5 for any act performed in good faith in the execution of duties as
6 a committee member or for an action taken by the board.
7 SECTION 3.08 . POWERS AND DUTIES OF THE ADVISORY COMMIT-
S TEE. (a) In addition to the duties imposed on the advisory
9 committee by the temporary board and the board, the advisory
10 committee may:
11 , (1) investigate crime control and crime prevention strate-
12 gies and make recommendations to the board regarding changes
13 = needed in the administration of the criminal justice system that
14 will result in the optimum use of funds for providing the best
15 criminal justice system; and
16 (2) conduct studies of the criminal justice system for the
17 purpose of advising the board on any procedures that may improve
18 the coordination of criminal justice services and that may
19 increase the effectiveness of the criminal justice system
20 throughout the county.
21 (b) The advisory committee shall meet at least four times
22 a year. Additional meetings may be held at the call of the
23 presiding officer or on the written request of any six members of
24 the committee.
25 (c) The intent of the legislature is that the advisory
26 committee assist in the planning and formation of the district
27 before the creation election is held and, if the district is
10
r
1 created, in the planning and operation of the district after the
2 election.
3 ARTICLE 4 . CREATION OF DISTRICT
4 SECTION 4.01 . CREATION ELECTION. The district may be
5 created and a tax may be authorized only if the creation and the
6 tax are approved by a majority of the qualified voters of the
7 territory of the proposed district voting at an election called
8 and held for that purpose.
g SECTION 4.02. ORDERING ELECTION. A majority of the
10 temporary directors of the district may order a creation election
11 to be held after a majority of the temporary directors have
12 approved a two year budget and a two year operating plan.
13 SECTION 4 .03 . ELECTION ORDER. The order calling the
14 election must state:
15 (1) the nature of the election, including the proposition
16 that is to appear on the ballot,
17 (2) the date of the election;
18 • (3) the hours during which the polls will be open;
19 (4) the location of the polling places; and
20 {5} in summary form, the approved budget and operating
21 plan of the district.
22 SECTION 4 .04 . NOTICE. The temporary directors shall give
23 notice of the election by publishing a substantial copy of the
24 election order in a newspaper with general circulation in the
25 proposed district once a week for two consecutive weeks. The
26 first publication must appear at least 35 days before the date
27 set for the election.
11
r
1 SECTION 4 .05. ELECTION DATE. (a) The election shall be
2 held not less than 35 days nor more than 60 days after the date
3 on which the election is ordered.
4 (b) Subsection 41 .001 (a) , Election Code, does not apply
5 to an election ordered under this article.
6 SECTION 4 .06. BALLOT PROPOSITION. The ballot for an
7 election shall be printed to permit voting for or against the
8 proposition: "The creation of the County Crime
9 Control District and the levy of a proposed local sales and use
10 tax at a rate not to exceed one percent. "
11 SECTION 4.07. CANVASSING RETURNS. (a) Not earlier than
12 the second day or later than the 13th day after the date of the
13 election, the temporary directors of the district shall meet and
14 canvass the returns of the election.
15 (b) If the temporary directors find that the election
16 results are favorable to the proposition to create the district,
17 they shall issue an order declaring the district created.
18 (c) If the temporary directors find that the election
19 results are not favorable to the proposition to create the
20 district, another creation election may not be held within 12
21 months after the date of the election at which voters disapproved
22 the preposition.
23 SECTION 4 .08. EXPIRATION OF ACT. If the creation of the
24 district is not approved at an election held within 60 months
25 after the effective date of this. Act, this Act expires.
12
I SECTION 4 .09. OPERATING PLAN AND BUDGET. (a) The two
2 year operating plan to be adopted under Section 4.02 of this Act
3 must include the following:
4 (1) a detailed list of the crime control and crime
5 prevention strategies to be supported and their ranking of impor-
6 tance;
7 (2) the number of employees to be hired by the district;
8 (3) the percentage amounts of administration to be
y
9 conducted by the district and by private or public entities;
10 (4) the types of equipment to be purchased or leased by
11 the district;
12 (5) the types of land, buildings, and improvements to be
r. 13 purchased or leased by the district;
14 (6) the expected impact that the creation of a district
15 would have on per capita rates of crime in the county and the
16 amount of crime related costs that would be avoided;
17 (7) the method of evaluating the effectiveness and effi-
18 ciency of individual crime control and crime prevention strate-
19 gies; and
20 (8) the requirement under Section 5 of the Crime Control
21 District Sales and Use Tax Act that the sales and use tax rate be
22 reduced if the estimated balance required under Subsection
23 7.04 (x) (5) of this Act exceeds specified amounts.
24 (b) The two year budget to be adopted under .Section 4.02
25 of this Act must include the following:
26 (1) the amount of money budgeted by the district for the
27 individual crime control and crime prevention strategies;
13
1 (2) the total amount of money budgeted by the district to
2 be paid to employees of the district;
3 (3) the amount of money budgeted by the district, and the
4 percentage of the total budget of the district to be spent on
5 administration, with individual amounts on how much of the admin-
6 istration would be conducted by the district and how much would
Z be conducted by private or public entities;
8 (4) the individual amounts of money budgeted by the
9 district for purchasing or leasing equipment and for expenditures
10 over $100, and a group amount budgeted by the district for
11 purchasing or leasing equipment for expenditures of $100 or less;
12 (5) the individual amounts of money budgeted by the
13 district for purchasing or leasing land, buildings, and improve-
14 ments;
15 (6) the estimated cost per client for each program offered
16 by the district;
17 (7) a five year capital expenditure plan that includes the
18 initial budget year;
19 w(8) the amount of money available to the district from all
20 sources during the ensuing year;
21 (9) the amount of balances expected at the end of the
22 years for which the budget is being prepared;,
23 (10) the estimated amount of revenues and balances avail-
24 able to cover the proposed budget; and
25 (11) the estimated tax rate that will be required.
26 (c) The operating plan and budget required by Section
27 4.02 must be adopted under the same procedures and restriction as
AWN
14
f f
1 adopting a proposed annual budget and capital expenditure plan as
2 provided by Subsections 7.05 (a through d) , 7.06, and 7.07.
3 SECTION 4.10 . FINANCING THE CREATION OF THE DISTRICT.
■
4 (a) in this section "county" means the county in which the
5 district would be located.
6 (b) The costs of creating the district shall be divided
7 as follows:
8 (1) the county would pay 40 percent;
9 (2) the city with the largest population in the county
10 would pay 40 percent; and
11 (3) the city with the second largest population in the
12 county would pay 20 percent.
13 (c) If the district is created, the district shall reim-
14 burse the county and cities for actual expenses incurred in the
15 creation of the district.
16 ARTICLE 5 . DISTRICT ADMINISTRATION
17 SECTION 5.01 . BOARD OF DIRECTORS. (a) The district is
1$ governed by a board of nine directors appointed in the same
19 manner as specified in Subsection 2 (a) of this Act and with the
20 same restrictions as specified in Subsections 2 (b) and 2 (c) of
21 this Act.
22 (b) Board members serve staggered terms of three years.
23 Three members terms expire September 1 of each year. The initial
24 appointees under this section shall draw lots to determine:
25 (1) the three directors to serve terms that expire the
26 first September 1 after having been appointed for a year;
15
1 (2) the three directors to serve terms that expire the
2 first September 1 after having been appointed for two years; and
3 (3) the three directors to serve terms that expire the
4 first September 1 after having been appointed for three years.
5 (c) From the time the creation of the district is
5 approved until the directors are appointed under this section and
7 take office, the temporary directors serve as directors of the
8 district.
9 SECTION 5.02. DESIGNATED ALTERNATE. A member of the
10 board, who is appointed as provided by Subsections 2.01 (a) (1
11 through 6) , may designate an alternate to act as an official
12 board member. The president and vice-president are not author_
13 ized to designate an alternate.
14 SECTION 5.03. BOND. (a) Before assuming the duties of
15 the office, each director must execute a bond for $5,000 payable
16 to the district, conditioned on the faithful performance of the
17 person' s duties as director.
18 (b) If a director exercises the right to designate an
19 alternate, the designated alternate must execute a bond for
20 $5,000 payable to the district, conditioned on the faithful
21 performance of the person' s duties as director.
22 (c) The bond shall be kept in the permanent records of
23 the district.
24 (d) The board may pay for directors' bonds with district
25 funds.
16
1 SECTION 5.04 . BOARD VACANCY. A vacancy in the office of
2 director shall be filled for the unexpired term by appointment in
3 the same manner that the vacant position was originally filled.
4 SECTION 5.05. OFFICERS. The board shall elect from among
5 its members a president and vice-president. The board shall also
6 appoint a secretary. The secretary need not be a director.
7 SECTION 5.06 . OFFICERS' TERMS; VACANCY. (a) Each officer
s of the board serves for a term of one year.
9 (b) A vacancy in a board office shall be filled for the
10 unexpired term by the board.
11 SECTION 5 .07. COMPENSATION. Directors and officers serve
12 without compensation but may be reimbursed ,.for actual expenses
' 13 incurred in the performance of official duties. ' Those expenses
14 must be reported in the district's minute book or other district
15 records and must be approved by the board.
16 SECTION 5.08 . VOTING REQUIREMENT. A concurrence of a
17 majority of the members of the board is necessary in matters
1s relating to the business of the district.
19 SECTION 5.09. ADMINISTRATOR, ASSISTANT ADMINISTRATOR, AND
20 ATTORNEY. (a) The board may appoint qualified persons as admin-
21 istrator of the district, assistant to the administrator, and
22 attorney for the district.
23 (b) The administrator, assistant administrator, and
24 attorney serve at the will of the board.
25 (c) The administrator, assistant administrator, and
,,.., 26 attorney are entitled to compensation as determined by the board.
17
a a
1 (d) Before assuming his duties, the administrator shall
2 execute a bond payable to the hospital district in the amount of
3 not less than $5,000 as determined by the board, conditioned on
4 the faithful performance of his duties under this Act. The board
5 may pay for the bond with district funds.
6 SECTION 5.10 . DISTRICT EMPLOYEES. (a) The district may
7 employ or pay for the employment of fiscal agents, accountants,
8 architects, additional attorneys, parole officers, judges, court
9 related personnel, assistant district attorneys, technicians,
10 computer operators, and other necessary employees.
11 (b) The board may delegate to the administrator the
12 authority to employ persons for the district.
13 SECTION 5 .11 . GENERAL° DUTIES OF ADMINISTRATOR. The
14 administrator shall supervise the work and activities of the
15 district and shall direct the general affairs of the district,
16 subject to the limitations prescribed by the board.
17 SECTION 5.12. RETIREMENT BENEFITS. The board may provide
18 retirement benefits for employees of the district by establishing
19 or administering a retirement program or by electing to partic-
20 ipate in the Texas County and District Retirement System or in
21 any other statewide retirement system in which the district is
22 eligible to participate.
23 ARTICLE 6. POWERS AND DUTIES
24 SECTION 6.01 . DISTRICT RESPONSIBILITIES, LIMITATIONS ON
25 EXPENDITURES. (a) On creation of the district, the district may
26 finance and operate district facilities and crime control/crime
27 prevention programs including, but not limited to, the following: AWN
18
w
1 (1) police/law enforcement related programs:
2 (i) multi-jurisdiction crime analysis center;
3 (ii) mobilized crime analysis units;
4 (iii) county-wide crime stop lines (telephone) ;
5 (iv) united property marking programs;
6 (v) home security inspection programs;
7 (vi) automated fingerprint analysis center;
g (vii) enhanced radio dispatch center;
9 (viii) computerized criminal history system;
10 (ix) enhanced information systems programs;
11 (x) drug and chemical disposal center;
12 (xi) county crime lab; and
13 (xii) regional training center.
14 (2) community-related crime prevention strategies:
15 (i) block watch programs;
16 (ii) community crime resistance program;
17 (iii) school-police programs;
16 (iv) senior citizen community safety programs;
19 (v) senior citizen anti-crime networks;
20 (vi) citizen crime reporting projects;
21 (vii) home alert programs;
22 (viii) police community cooperation program;
23 (ix) radio alert program; and
24 (x) ride along programs.
25 (3) specific treatment/prevention programs:
26 (i) positive-peer group interaction programs;
27 (ii) drug and alcohol awareness programs;
19
e a
I (iii) countywide family violence centers;
2 (iv) work incentive programs;
3 (v) social learning centers;
■
4 (vi) transitional aid centers (pre-parole center) ;
5 (vii) guided group interaction programs;
6 (viii) social development centers;
7 (ix) street gang intervention centers;
8 (x) pre-delinquency intervention centers;
9 (xi) school relations bureaus;
10 (xii) integrated community education systems;
11 (xiii) steered straight programs;
12 (xiv) probation subsidy programs;
13 ' (xv) juvenile offenders learn truth (jolt)
14 programs;
15 (xvi) reformatory visitation programs;
16 (xvii) juvenile awareness programs;
17 (xviii) shock incarceration;
18 (xix) shock probation;
19 (xx) community restitution programs;
20 (xxi) team probation;
21 (xxii) electronic monitoring programs;
22 (xxiii) community improvement programs;
23 (xxiv) at home arrest;
24 (xxv) victim restitution programs;
25 (xxvi) additional probation officers; and
26 (xxvii) additional parole officers.
27 (4) court/prosecution services:
20
r
I (i) court watch programs;
2 (ii) community arbitration/mediation centers;
3 (iii) night prosecutor' s programs;
4 (iv) automated legal research systems;
5 (v) automated court management system;
6 (vi) criminal court administrator;
7 (vii) automated court reporting system;
8 (viii) additional criminal courts, judges, and
9 staff; and
10 (ix) additional prosecutors and staff.
11 (b) The district may not:
12 (1) fund any program that significantly duplicates exist-
13 ing programs or programs scheduled to begin;
14 (2) fund any facility that unnecessarily duplicates
15 existing facilities or facilities scheduled to begin operation or
16 construction;
17 (3) fund any equipment that unnecessarily duplicates
18 existing equipment or equipment scheduled to begin operation;
19 (4) directly fund a police department;
20 (5) spend more than 5 percent of its budget on adminis-
21 tration;
22 (6) fund a program if sufficient state or local funds are
23 available to fund the program;
24 (7) fund a facility or equipment if sufficient state or
25 local funds are available to fund the facility or equipment; and
26 (8) continue to fund a program, facility or equipment in
27 a city or county if the city or county fails to maintain the same
21
i
1 level of effort in the program, facility, or equipment as it did
2 the year before the district was created, or in any following '
3 year, which ever is greater.
4 (c) On creation of the district, the district shall fund:
5 (1) on going research in crime control/crime prevention
6 strategies; and
7 (2) a significant evaluation program to study the impact,
8 efficiency and effectiveness of additional courts, judges and
9 prosecutors and of the new or expanded crime control/crime
10 prevention programs.
11 SECTION 6.02. MANAGEMENT, CONTROL, AND ADMINISTRATION.
12 The board shall manage, control, and administer the district
13 system and the funds and resources of the district.
14 SECTION 6. 03. DISTRICT RULES. The board may adopt rules
15 governing the operation of the district facilities system and the
15 duties, functions, and responsibilities of district staff and
17 employees.
18 SECTION 6 .04. METHODS AND PROCEDURES. (a) The board may
19 prescribe the method of making purchases and expenditures by and
20 for the district; however, the board may enter purchasing
21 contracts that involve spending more than $5000 only after
22 competitive bidding as provided by Chapter 641, Acts of the 69th
23 Legislature, Regular Session, 1985 (Article 2368x.5, Vernon' s
24 Texas Civil Statutes) .
25 (b) The board may prescribe accounting and control proce-
26 dures for the district.
22
1 SECTION 6 .05 . DISTRICT PROPERTY, FACILITIES, AND EQUIP-
2 MENT. (a) The board shall determine the type, number, and
3 location of buildings required to establish and maintain an
4 adequate district system and the type of equipment necessary for
5 carrying out its duties.
6 (b) The board may acquire property, facilities, and
7 equipment for the district for use in the district system and may
8 mortgage or pledge the property, facilities, or equipment
9 acquired as security for the payment of the purchase price.
10 (c) The board may lease district facilities on behalf of
11 the district.
12 (d) The board may sell or otherwise dispose of property,
13 facilities, or equipment on behalf of the district.
14 SECTION 6 .06 . CONSTRUCTION CONTRACTS. (a) The board may
15 enter into construction contracts on behalf of the district;
16 however, the board may enter into construction contracts that
17 involve spending more than $10,000 only after competitive bidding
18 as provided by Chapter 770, Acts of the 66th Legislature, Regular
19 Sessiop, 1979 (Article 2368a.3 , Vernon' s Texas Civil Statutes) .
20 (b) Article 5160 , Revised Statutes , as it relates to
21 performance and payment bonds, applies to construction contracts
22 let by the district.
23 SECTION 6 .07. DISTRICT OPERATING AND MANAGEMENT
24 CONTRACTS . The board may enter into operating or management
25 contracts relating to district facilities on behalf of the
26 district.
23
1
1
SECTION 6 .08 . EMINENT DOMAIN. (a) The district may
2 exercise the power of eminent domain to acquire by condemnation a '
3 fee simple or other interest in property located in the territory
{
4 of the district if the property interest is necessary to the
5 exercise of the rights or authority conferred by this Act.
6 (b) The district must exercise the power of eminent
7 domain in the manner provided by Chapter 21, Property Code, but
8 the district is not required to deposit in the trial court money
9 or a bond as provided by Section 21 .021 (x) , Property Code.
10 (c) In a condemnation proceeding brought by the district,
11 the district is not required to pay in advance or give bond or
12 other security for costs in the trail court, to give bond for the
13 issuance of a temporary restraining order or a temporary injunc-
14 tion, or to give bond for costs or supersedeas on an appeal or
i5 writ of error.
16 .SECTION 6.09. EXPENSES FOR MOVING FACILITIES OF RAILROADS
17 AND UTILITIES. In exercising the power of eminent domain, if the
18 board requires relocating, raising, lowering, rerouting, changing
19 the grade, or altering the construction of any railroad, highway,
20 pipeline, or electric transmission and electric distribution,
21 telegraph, or telephone lines, conduits, poles, or facilities,
22 the district must bear the actual cost of relocating, raising,
23 lowering, rerouting, changing the grade, or altering the
24 construction to provide comparable replacement without enhance-
25 ment of facilities, after deducting the net salvage value derived
26 from the old facility.
24
SECTION 6 .10 . REIMBURSEMENT FOR SERVICES. (a) The board
2 may require reimbursement from a county or city located entirely
3 outside the boundaries of the district for the district' s cost of
4 including in a district program or facility, a resident of that
5 county or city.
6 (b) The board may require reimbursement from the state
7 for the district's cost of including in a district program or
8 facility a person who is a resident of the state but who is not a
9 resident of the district.
10 (c) On behalf of the district, the board may contract
11 with a city or county government or with the state or federal
12 government for the city, county, state or federal government to
13 reimburse the district for including a person in a district
14 program or facility.
is SECTION 6 .11 . SERVICE CONTRACTS. (a) When acting on
16 behalf of the district, the board may contract with a city, coun-
17 ty, special district, or other political subdivision of the
18 state, with a state or federal agency, with individuals, and with
19 the private sector to furnish the staff, facilities, equipment,
20 programs, and services the board considers necessary for the
21 effective operation of the district.
22 (b) The intent of the legislature is that the district
23 contract for staff, facilities, equipment, programs, and services
24 to the maximum extent possible.
25 SECTION 6.12. DONATIONS, GIFTS, AND ENDOWMENTS. On
26 behalf of the district, the board may accept -donations, gifts,
27 and endowments to be held in trust for any purpose and under any
25
1
I direction, limitation, or provision prescribed in writing by the
2 donor that is consistent with the proper management of the
3 district.
I
4 SECTION 6.13. AUTHORITY TO SUE AND BE SUED. The board
5 may sue and be sued on behalf of the district.
6 ARTICLE 7 . DISTRICT FINANCES
7 SECTION 7 .01. FISCAL YEAR. (a) The district is operated
8 on the basis of a fiscal year established by the board.
9 (b) The fiscal year may not be changed more than once in
10 a 24-month period.
11 SECTION 7.02. ANNUAL AUDIT. Annually, the board shall
12 have an audit made of the financial condition of the district.
13 SECTION 7.03. DISTRICT AUDIT AND RECORDS. The annual
14 audit and other district records shall be open to inspection
15 during regular business hours at the principal office of the
16 district.
17 SECTION 7.04. ANNUAL BUDGET. (a) The administrator of
18 the district shall prepare for the district a proposed annual
19 budgetwand a five year capital expenditure plan that includes the
20 current budget year.
21 (b) The proposed budget must contain a complete financial
22 statement, including a statement of:
23 (1) the outstanding obligations of the district;
24 (2) the amount of cash on hand to the credit of each fund
25 of the district;
26 (3) the amount of money received by the district from all
27 sources during the previous year; ,.
26
1 (4) the amount of money available to the district from
2 all sources during the ensuing year;
3 (5) the amount of the balances expected at the end of the
4 year in which the budget is being prepared; ■
5 (6) the estimated amount of revenues and balances avail-
6 able to cover the proposed budget; and
7 (7) the estimated tax rate that will be required.
8 SECTION 7. 05 . NOTICE; HEARING; ADOPTION OF BUDGET. (a)
9 The board shall hold a public hearing on the proposed annual
10 budget.
11 (b) The board shall publish notice of the hearing in a
12 newspaper of general circulation in the district not later than
t""` 13 the 10th day before the date of the hearing.
14 (c) Any resident of the district is entitled to be pres-
15 ent and participate at the hearing.
16 '(d) At the conclusion of the hearing, the board shall
17 adopt a budget by acting on the budget proposed by the adminis-
18 trator. The board may make any changes in the proposed budget
19 that in its judgment the interests of the taxpayers demand.
20 (e) The budget is effective only after adoption by the
21 board.
22 SECTION 7.06. AMENDING BUDGET. After adoption, the annu-
23 al budget may be amended on the board' s approval.
24 SECTION 7 .07 . LIMITATION ON EXPENDITURES. Money may not
25 be spent for an expense not included in the annual budget or an
26 amendment to it.
27
1
SECTION 7 .08 . SWORN STATEMENT. As soon as practicable `
2 after the close of the fiscal year, the administrator shall
3 Prepare for the board a sworn statement of the amount of money
4 that belongs to the district and an account of the disbursements
5 of that money.
6 SECTION 7. 09 . SPENDING AND INVESTMENT LIMITATIONS. (a)
7 Except as provided by Section 6.06 (a) of this Act, the district
8 may not incur a debt payable from revenues of the district other
9 than the revenues on hand or to be on hand in the current and
10 immediately following fiscal year of the district. -
11 (b) The board may not invest operating, depreciation, or
12 building reserves in funds or securities other than those speci-
13 fied by Article 836 or 837, Revised Statutes.
14 SECTION 7 .10. DEPOSITORY. (a) The board shall name at
15 least one bank to serve as depository for district funds.
16 (b) The board shall solicit bids from local financial
17 institutions to determine which institutions are to serve as
18 depositories for district funds.
19 (c) District funds, other than those invested as provided
20 by Section 7.09 (b) of this Act, shall be deposited as received
21 with the depository bank and must remain on deposit. This
22 subsection does not limit the power of the board to place a
23 portion of district funds on time deposit or to purchase certif-
24 icates of deposit.
25 (d) Before the district deposits funds in a bank in an
26 amount that exceeds the maximum amount secured by the Federal
27 Deposit Insurance Corporation, the bank must execute a bond or
28
1 other security in an amount sufficient to secure from loss the
2 district funds that exceed the amount secured by the Federal
3 Deposit Insurance Corporation.
4 ARTICLE 8 . BONDS
5 SECTION 8. 01 . PROHIBITION AGAINST BONDS. The board and
6 the district are prohibited from issuing or selling any bonds or
7 obligations, including general obligation bonds, revenue bonds,
8 and refunding bonds, but excluding performance and payment bonds
9 authorized by Section 6. 06 (b) of this Act and bonds conditioned
10 on the faithful performance of a person' s duties as director or
11 administrator as provided by Sections 5 . 03 and 5. 09 of this Act.
12 ARTICLE 9. RESCISSION ELECTION; SUNSET.
13 SECTION 9.01 . RESCISSION ELECTION. - (a) The board may
14 hold an election on the question of rescinding the creation of
is the district.
16 (b) The board shall order an election rescinding the
17 creation of the district on the presentation of a petition that
is requests such a rescission. The election may not be held earlier
19 than five years after the date:
20 (1) of the election conducted under Article 4 of this Act
21 at which the creation of the district was approved, and
22 (2) of an election conducted under this Article.
23 (c) If an election rescinding the creation of the district
24 is not held earlier than eight years after the date of the
25 election conducted under Article 4 of this Act at which the
26 creation of the district was approved, then the board shall order
27 an election rescinding the creation of the district.
29
t
I (d) The board shall order an election rescinding the
2 creation of the district if it has been eight years since an
3 election conducted under this Article to rescind the creation of
1
4 the district.
5 (e) For an election rescinding the creation of a district,
6 the ballots shall be printed to permit voting for or against the
7 proposition: "Rescinding the creation of the
8 County Crime Control District and the Crime Control District
9 Sales and Use Tax."
10 SECTION 9.02. .METHODS FOR INITIATING ELECTION. The board
11 on its own motion by a majority vote of its members may order an
12 election to rescind the creation of the district, it shall order
13 an election on presentation of a petition meeting the require-
14 ments of this article, and it shall order an election after the
15 time period required by Section 9.01 of this Act.
16 *SECTION 9.03 . APPLICATION FOR PETITION; ISSUANCE. if
17 petitioned to do so by written application of 10 or more regis-
18 tered voters of the county, the county clerk shall issue to the
19 applicants a petition to be circulated among registered voters
20 for their signatures.
21 SECTION 9 .04 . CONTENTS OF APPLICATION. To be valid, an
22 application must contain:
23 (1) a heading, in the following words: "Application for a
24 Petition for a Local Option Election to Rescind the Creation of
25 the Crime Control District and the Crime Control District Sales
26 and Use Tax."
30
1 (2) a statement of the issue to be voted on, in the
2 following words: "Rescinding the creation of the
3 County Crime Control District and the Crime Control District
4 Sales and Use Tax. "
5 (3) a statement immediately above the signatures of the
6 applicants, reading as follows: "It is the hope, purpose, and
7 intent of the applicants whose signatures appear below that the
8 creation of the Crime Control District and the Crime Control
9 District Sales and Use Tax in County be
10 rescinded"; and
11 (4) the printed name, signature, residence address, and
12 voter registration certificate number of each applicant.
13 -SECTION 9.05 . CONTENTS OF PETITION. To be valid, a peti-
14 tion must contain:
15 (1) a heading, in the following words: "Petition for a
16 Local Option Election to Rescind the Creation of the Crime
17 Control District and the Crime Control District Sales and Use
18 Tax";
19 (2) a statement of the issue to be voted on, in the same
20 words used in the application;
21 (3) a statement immediately above the signatures of the
22 petitioners, reading as follows: "It is the hope, purpose, and
23 intent of the petitioners whose signatures appear below that the
24 creation of the Crime Control District and the Crime Control
25 District Sales and Use Tax in County be
26 rescinded" ;
31
1
1 (4) lines and spaces for the names, signatures, addresses,
2 and voter registration certificate numbers of the petitioners;
3 and
4 (5) the date of issuance, the serial number, and the seal
5 of the county clerk on each page.
6 SECTION 9.06 . COPIES. The county clerk shall keep the
7 application and a copy of the petition in the files of that
8 office. The clerk shall issue to the applicants as many copies
9 as they request.
10 SECTION 9.07. FILING OF PETITION; NUMBER OF SIGNATURES.
11 To form the basis for the ordering of an election, the petition
12 must be filed with the county clerk not later than the 60th day
• 13 after the date of its issuance, and it must contain a number of
14 signatures of registered voters of the county equal to five
15 percent of the number of votes cast in the county for all candi-
16 dates for governor in the most recent gubernatorial general
17 election.
18 SECTION 9.08 . REVIEW BY COUNTY CLERK. (a) The county
19 clerk shall, on request of any person., check each name on the
20 petition to determine whether the signer is a registered voter of
21 the county. The person requesting this verification by the coun-
22 ty clerk shall pay the county clerk a sum equal to 20 cents per
23 name before commencement of the verification.
24 (b) The county clerk may not count a signature if there is
25 reason to believe that:
26 (1) it is not the actual signature of the purported sign-
27 er; ,
32
A
1 (2) the voter registration certificate number is not
2 correct; a
3 (3) it is a duplication either of a name or of handwriting
4 used in an other i on the
y signature g petition;
5 (4) the residence address of the signer is not correct; or
6 (5) the name of the voter is not signed exactly as it
7 appears on the official copy of the current list of registered
8 voters for the voting year in which the petition is issued.
9 SECTION 9.09. CERTIFICATION. Not later than the 40th day
10 after the date the petition is filed, excluding Saturdays,
11 Sundays, and legal holidays, the county clerk shall certify to
12 the board the number of registered voters signing the petition.
13 SECTION 9 . 10. ORDER OF ELECTION. (a) The board shall
14 record on its minutes the date the petition is filed and the date
15 it is certified by the county clerk.
16 .(b) If the petition contains the required number of signa-
17 tures and is in proper order, the board shall, at its next regu-
18 lar session after the certification by the county clerk, order an
19 election to be held at the regular polling place in each county
20 election precinct in the county on the next uniform election date
21 authorized by Section 41.001, Election Code, that occurs at least
22 20 days after the date of the order. The board shall state in
23 the order the issue to be voted on in the election. The order is
24 prima facie evidence of compliance with all provisions necessary
25 to give it validity.
33
1 SECTION 9.11 . APPLICATION OF ELECTION CODE. (a) The
2 election shall be held and the returns shall be prepared and
3 canvassed in conformity with the Election Code.
4 SECTION 4.12. RESULTS OF ELECTION. (a) If a majority of
5 the votes cast in the election under this section are for the
6 rescission of the creation of the district, then:
7 (1) the board shall certify that fact to the secretary of
8 state not later than the 10th day after the date of the canvass
9 of the returns; and
10 (2) the district will cease to operate except as provided
11 by Subsection (b) of this section.
12 (b) A district that elects to rescind the creation of the
13 district and that owns property or has outstanding short-term or
14 long-term liabilities may continue to operate on a temporary
15 basis as provided by Section 9.15 of this Act.
16 (c) If a majority of the votes cast in the election under
17 this section are against the rescission of the creation of the
18 district, - no other election to rescind the creation of the
19 district may be held except as authorized by Section 9.01 .
20 SECTION 9.13 . CONTEST OF ELECTION. (a) Not later than
21 the 30th day after the date the result of the election is
22 declared, any qualified voter of the district may contest the
23 election by filing a petition in the district court in the
24 district. Any director may become a named party to the
25 proceedings by pleading to the petition on or before the time set
26 for hearing and trial as provided by Subsection (c) of this
27 section or thereafter by intervention on leave of court.
34
i
1 (b) The proceedings in the suit shall be conducted in the
2 manner prescribed by Title 14, Election Code, for contesting an
3 election held for a purpose other than the election of an officer
4 or officers. Unless otherwise provided by this Act, the applica-
5 ble Texas Rules of Civil Procedure and all applicable statutes
6 govern the proceedings and appeals held and conducted under this
7 Act.
8 (c) At or after the time for hearing and trial, the judge
9 shall hear and determine all questions of law and fact in the
10 proceedings and may enter orders as to the proceedings that will
11 enable the judge to try and determine the questions and to render
12 a final judgment with the least possible delay.
13 SECTION 9.14 . CONTESTEE. (a) The district attorney is
14 the contestee of a suit brought under Section 9. 13 of this Act.
15 If there is no district attorney of the county, then the criminal
16 district attorney or county attorney is the contestee.
17 (b) Costs of the election contest may not be adjudged
18 against the contestee or against the county, and neither may be
19 required to give bond on appeal.
20 SECTION 9.15. EFFECTS OF RESCISSION ELECTION. (a) If a
21 district created under Article 4 of this Act elects to rescind
22 the creation of the district, then, except as provided by
23 Subsections (b) , (d) , (e) , and (f) of this section, the district
24 is abolished, and this Act expires with respect to the abolished
25 district.
35
1
1 (b) At the time that the district would be abolished under '
2 Subsection (a) of this section, the district shall convev or
3 transfer to the county:
4 (1) title to land, buildings, improvements, and equipment
5 owned by the Countv Crime Control District;
6 (2) operating funds and reserves for operating expenses
7 and funds that have been budgeted by the district for the remain-
8 der of the fiscal year in which the district is abolished to
9 support crime control activities and programs for residents of
10 the county;
11 (3) taxes levied by the district during the current year
12 for crime control purposes;
13 (4) funds established for payment of indebtedness assumed
14 by the district; and
is (5) accumulated employee retirement funds, if applicable.
16 (c) At the time the district would be abolished under
17 Subsection (a) of this section, the district may not levy taxes
18 for district purposes or for providing crime control activities
19 and programs for the residents of the district.
20 (d) If at the time that the district would be abolished
21 under Subsection (a) of this section, the district created under
22 this Act has outstanding short-term or long-term liabilities, the
23 board shall within 30 days adopt a resolution certifying the
24 individual outstanding short-term and long-term liabilities, if
25 any. The county in which the district is located shall assume
26 the outstanding, short-term and long-term liabilities, if any.
27 The county may assume the right to collect the sales and use tax
36
1 authorized by Section 3 of the Crime Control District Sales and
2 Use Tax Act, but only as provided by Section 7 of that Act.
3 (e) The district and the board may continue to operate for
4 a period not to exceed two months after the responsibilities of
5 Subsections (b) and (d) are satisfied. The board, the district,
6 and this Act, are continued in effect for the purpose of satisfy-
7 ing these responsibilities.
8 (f) If the board, the district, and this Act are continued
9 in effect under Subsections (b) or (d) of this section, the board
10 and district are abolished and this Act expires on the first day
11 of the month following the month in which the board issues an
12 order certifying to the secretary of state that no responsibil-
13 ities of Subsections (b) and (d) of this section are left unsat-
t1� 14 isfied.
15 (g) A district or board that continues to operate under
16 Subsection (b) or (d) of this section may not incur any new
17 liabilities without the approval of the commissioners court of
18 the county in which the district is located. Before the end of
19 the 60 day period after the rescission election, the commission-
20 ers court shall review the outstanding liabilities of the
21 district and shall by resolution entered in the minutes set a
22 specific date by which the county must retire the district' s
23 outstanding liabilities.
24 (h) At the time that the district would be abolished under
25 Subsection (a) of this section, district funded programs, includ-
26 ing additional courts, shall immediately terminate and district
37
1 funded personnel, including additional prosecutors, shall be
2 immediately fired.
3 ARTICLE 10 . PROHIBITION OF STATE ASSISTANCE
4 SECTION 10.01 . PROHIBITION OF STATE ASSISTANCE. The
5 state may not become obligated for the support, maintenance, or
6 abolishment of a crime control district created under this Act,
7 nor may the legislature make a direct appropriation for the
8 construction, maintenance, or improvement of a facility of the
9 district, nor may the legislature make a direct appropriation to
10 assist in the abolishment of the district.
11 SECTION 2. The Crime Control District Sales and Use Tax
12 Act is enacted to read as follows:
13 SECTION 1. SHORT TITLE. This Act may be cited as the
14 Crime Control District Sales and Use Tax Act.
15 SECTION 2. DEFINITIONS. In this Act.
16 (1) "District" means a crime control district created
17 pursuant to the Crime Control District Act.
18 (2) "Board" means the board of directors of the district.
19 (3) "Director" means a member of the board.
20 (4) "Comptroller" means the comptroller of public
21 accounts of the State of Texas.
22 (5) 'City" means any incorporated city, town, or village
23 in the State of Texas.
24 SECTION 3. AUTHORITY TO ADOPT TAX. Any crime control
25 district created under the Crime Control District Act may adopt
26 and impose a crime control district sales and use tax after the
27 election creating the district and authorizing the tax as ,.
38
1 provided by Article 4 of the Crime Control District Act. The tax
2 is imposed on the receipts from the sale at retail of all taxable
3 items within any district adopting the tax which items are
4 subject to taxation by the State of Texas under the provisions of
5 the Limited Sales, Excise, and Use Tax Act, as enacted, and as
6 amended.
7 SECTION 4. AUTHORIZED RATES. (a) The permissible rates
@ for a crime control district sales and use tax levied under this
9 Act are as follows:
10 (1) zero percent;
11 (2) one-eighth of one percent;
12 (3) one-fourth of one percent;
13 (44 three-eighths of one percent;
14 (5) one-half of one percent;
15 (S) five-eighths of one percent;
16 (7) three-fourths of one percent;
17 (8) seven-eighths of one percent; and
1s (9) one percent.
19 (b) After the crime control district sales and use tax is
20 authorized as provided under Article 4 of the Crime Control
21 District Act and before the creation of the district is rescinded
22 as provided under Article 9 of the Crime Control District Act,
23 the board shall select one of the rates authorized by Subsection
24 (a) of this section in an amount as provided by Subsection 5 (a)
25 of this Act.
26 SECTION 5. SETTING RATES. (a) During the public hearing
27 in which the board adopts the annual budget as provided by
39
t
I Section 7 .05 of the Crime Control District Act, except as
2 provided by Subsections (b) and (c) of this section, the board
3 after adopting the budget shall adopt a resolution to be entered
4 in the minutes specifying the rate of the crime control district
5 sales and use tax. The rate shall be determined in the following
6 manner:
7 (1) if the amount of the adopted budget is greater than
8 the estimated amount of available revenues and balances, then the
9 board shall adopt the lowest authorized rate that will provide an
10 amount of revenue and balances greater than the amount of the
11 adopted budget;
12 (2) if the amount of the adopted budget is less than or
• 13 equal to the estimated amount of available revenues and balances.
14 but greater than 85 percent of the estimated amount of available
15 revenues and balances, then the board shall adopt the authorized
16 rate one-eighth of one percent less than the rate of the prior
17 budget year;
18 (3) if the amount of the adopted budget is less than or
19 equal to 85 percent of the estimated amount of available revenues
20 and balances but greater than 70 percent of the estimated amount
21 of available revenues and balances, then the board shall adopt
22 the authorized rate one-fourth of one percent less than the rate
23 of the prior budget year;
24 (4) if the amount of the adopted budget is less than or
25 equal to 70 percent of the estimated amount of available revenues
25 and balances but greater than 55 percent of the estimated amount
27 of available revenues and balances, then the board shall adopt
40
1 the authorized rate three-eighths of one percent less than the
2 rate of the prior budget year;
3 (5) if the amount of the adopted budget is less than or
4 equal to 55 percent of the estimated amount of available revenues
5 and balances but greater than 40 percent of the estimated amount
6 of available revenues and balances, then the board shall adopt
9 the authorized rate one-half of one percent less than the rate of
8 the prior budget year;
9 (6) if the amount of the adopted budget is less than or
10 equal to 40 percent of the estimated amount of available revenues
11 and balances but greater than 25 percent of the estimated amount
12 of available revenues and balances, then the board shall adopt
13 the authorized rate five-eighths of one percent less than the
14 rate of the prior budget year; and
15 (7) if the amount of the adopted budget is less than or
16 equal to 25 percent of the estimated amount of available revenues
17 and balances but greater than zero percent of the estimated
18 amount of available revenues and balances, then the board shall
19 adopt the authorized rate three-fourths of one percent less than
20 the rate of the prior budget year.
21 (b) If approved by a majority vote of its members, the
22 board may adopt a rate lower than the rate provided under
23 Subsection (a) of this section.
24 (c) Subsections (a) and (b) of this section do not author-
25 ize the board to set a rate other than those rates authorized by
26 Subsection 4 (a) of this Act.
41
1 SECTION 6. EFFECTIVE DATES OF ADOPTION OF AND CHANGES ICJ
2 THE TAX. (a) In order to allow time for the comptroller' s admin-
3 istrative duties under this Act, there shall elapse one whole
4 calendar quarter after the comptroller receives notice of
5 adoption of or change in such tax provided for in this Act, after
6 which such adoption of or change in the crime control district
7 sales and use tax shall be effective in the district beginning on
8 the first day of the calendar year next succeeding such elapsed
9 quarter.
10 (b) if a majority of the qualified voters voting at an
11 election authorized by Article 9 of the Crime Control District
12 Act to rescind the creation of the district are in favor of the
13 rescission of the district, the crime control district sales and
14 use tax shall be thereby abolished in the district, except as ..r
15 provided by Section 7 of this Act, on the first day of the first
i6 calendar year that begins on or after the first day of the first
17 district fiscal year that begins at least 30 days after the comp-
18 troller receives the notice of abolition of such tax.
19 SECTION 7 . TEMPORARY CONTINUATION OF THE TAX. (a) If a
20 majority of the votes cast at an election authorized by Article 9
21 of the Crime Control District Act to rescind the creation of the
22 district are in favor of the rescission of the district, the
23 commissioners court of the county in which the district is
24 located may, by a majority vote of its members within 30 days of
25 the rescission election, assume authority to and impose the sales
26 and use tax authorized by this Act.
42
(b) The provisions of this Act relating to the adminis-
2 tration, collection, and rates of the crime control district
3 sales and use tax are applicable to the collection of the tax
4 imposed by this section; provided that in this Act the name of
5 the county where the crime control district sales and use tax had
6 been adopted shall be substituted for that of the district where
7 the words "the district" are used to designate the taxing author-
8 ity or to delimit the tax imposed.
9 (c) The county commissioners shall mail the comptroller by
10 United States Registered Mail or Certified Mail a certified copy
11 of the resolution of the commissioners court provided by
12 Subsection 9. 15 (g) of the Crime Control District Act *that speci-
13 fies the date by which the county must retire the district' s
14 outstanding liabilities.
15 (d) The crime control district sales and use tax imposed
16 by the county shall be abolished on the later of:
17 (1) the end of the calendar quarter after the date speci-
18 fled in the commissioners court resolution provided by Subsection
19 9.15 (g) of the Crime Control District Act; or
20 (2) the end of the calendar quarter after one whole quar-
21 ter has elapsed since the comptroller receives the resolution
22 provided by Subsection 9. 15 (g) of the Crime Control District Act.
23 SECTION 8 . NOTIFICATION OF THE COMPTROLLER. (a) Within
24 10 days of the canvassing of an election under Article 4 of the
25 Crime Control District Act at which a majority of the qualified
26 voters voting at such election shall vote in favor of the
27 adoption of a crime control district sales and use tax, the pres-
43
1 ident of the board shall forward to the comptroller by United
2 States Registered Mail or Certified Mail a certified copy of the
3 board' s order declaring the district created to serve as notice
4 of adoption of the tax.
5 (b) Within 10 days of the adoption of a resolution under
6 Subsection 5 (a) of this Act changing the rate of the crime
7 control district sales and use tax from the rate of the prior
8 year, the president of the board shall forward to the comptroller
9 by United States Registered Mail or Certified Mail a certified
10 copy of the board's resolution to serve as notice of the change
11 in the tax.
12 (c) If a majority of the qualified voters voting at an
13 election under Article 9 of the Crime Control District Act shall
14 vote in favor of rescinding the creation of a crime control
15 district, and if the board shall certify that under Subsection
16 9.15 (d) of that Act that the district does not have any outstand-
17 ing short-term or long-term liabilities, then the president shall
18 forward to the comptroller by United States Registered Mail or
19 Certified Mail a certified copy of the board' s resolution
20 provided by Subsection 9.15 (g) of the Crime Control District Act
21 certifying that there are not any outstanding short-term or long-
22 term liabilities.
23 (d) If a majority of the qualified voters voting at an
24 election under Article 9 of the Crime Control District Act shall
25 vote in favor of rescinding the creation of a crime control
26 district, and if the board shall certify that under Subsection
27 9 .15 (d) of that Act that the district does have outstanding
44
1 short-term or long-term liabilities, then the county judge shall
2 forward to the comptroller by United States Registered Mail or
3 Certified Mail a certified copy of the commissioners court' s
4 resolution provided by Subsection 9.15 (g) of the Crime Control
5 District Act.
6 (e) The certified copy of the order or resolution to be
7 sent to the comptroller as provided by Subsections (a) , (b) , (c) ,
S and (d) of this section shall reflect the date of the election in
9 the district, the proposition voted on, the total number of votes
10 cast for and against the proposition, and the number of votes by
11 which the proposition was approved.
12 SECTION 9. • COMBINATION OF TAXES, EXCLUSION. (a) In each
13 district in which a crime control district sales and use tax has
14 been adopted as provided in this Act, every retailer shall add
15 the tax imposed by the Limited Sales, Excise, and Use Tax Act,
16 plus any other local sales and use taxes applicable within the
17 boundaries of the district, and the tax imposed by this Act to
18 his sales price, and when added, the combined tax shall consti-
19 tute a part of the price, shall be a debt of the purchaser to the
20 retailer until paid, and shall be recoverable at law in the same
21 manner as the purchase price.
22 (b) The combined taxes on a transaction shall be deter-
23 mined by multiplying the amount of the sale by the total of the
24 combined applicable tax rates. Any fraction of one cent which is
25 less than one-half of one cent shall not be collected. Any frac-
26 tion of one cent equal to one-half of one cent or more shall be
27 collected as one whole cent.
45
1 (c) Any retailer who can establish to the satisfaction of '"%k
2 the comptroller that 50 percent or more of his receipts from the
3 sale of tangible personal property and taxable services arise
4 from individual transactions where the total sales price is less
5 than the minimum amount on which the tax is collectable may
6 exclude the receipts from such sales when reporting and paying
7 the tax imposed under this Act and the Limited Sales, Excise, and
g Use Tax imposed by the State of Texas. No retailer shall avail
9 himself of this provision without prior written approval of the
.10 comptroller. The comptroller shall grant such approval when he
•11 is satisfied that the retailer qualifies on the basis set forth
12 in this section and when the retailer has submitted satisfactory
13 evidence that he can and will maintain records adequate to
14 substantiate the authorized exclusion. Any attempt on the part
15 of any retailer to exercise this provision without prior written
16 approval of the comptroller shall be deemed to be a failure and
17 refusal to pay the taxes imposed by this Act and the Limited
18 Sales, Excise, and Use Tax Act, and the retailer shall be subject
19 to assessment for both taxes, penalties, and interest as provided
20 for in this Act and the Limited Sales, Excise, and Use Tax Act.
21 SECTION 10. EXCISE TAX IMPOSED; PROPERTY SUBJECT TO USE
22 TAX. (a) In every district where the crime control district
23 sales and use tax has been adopted pursuant to the provisions of
24 this Act, there is hereby imposed an excise tax on the storage,
25 use, or other consumption within such district of tangible
26 personal property purchased, leased, or rented from any retailer
27 on or after the effective date for collection of the sales tax
46
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1 portion of the crime control district sales and use tax for stor-
2 age, use, or other consumption in such district at the same rate
3 as the sales tax portion and applied to the sales price of the ,
4 property or, in the case of leases or rentals, of said lease or 1
5 rental price. Except as provided in Subsection (d) of this
6 section, the crime control district use tax is not owed to and
7 may not be collected by, for, or in behalf of a district if no
8 excise tax on the storage, use, or other consumption of an item
9 of tangible personal property is owed to or collected by the
10 state under the Limited Sales, Excise, and Use Tax Act or if the
11 tangible personal property is first stored, used, or consumed
12 within a district or area that has not adopted the crime control
13 district sales or use tax.
14 (b) In each district where the crime control district
15 sales and use tax has been imposed as provided by this Act, the
16 excise taxes imposed under the state Limited Sales, Excise, and
17 Use Tax Act and under other applicable sales and use taxes on the
18 storage, use, or other consumption of tangible personal property
19 and the excise tax imposed by this section shall be added togeth-
20 er to form a combined rate of excise tax which is equal to the
21 sum of the applicable taxes. The tax imposed by this section
22 shall be collected by the comptroller on behalf of and for the
23 benefit of the district.
2; (c) The provisions of the Limited Sales, Excise, and Use
25 Tax Act relating to the administration and collection of the
26 storage and use tax portion of the state tax is applicable to the
27 collection of the tax imposed by this section; provided that in
47
1 Subchapter D, Chapter 151, Tax Code, the name of the district
2 where the crime control district sales and use tax has been
3 adopted shall be substituted for that of the state where the
4 words "this state" are used to designate the taxing authority or
5 to delimit the tax imposed.
6 (d) If a sale of tangible personal property is consummated
7 within the state but not within a district that has adopted the
8 taxes imposed by this Act and the tangible personal property is
9 shipped directly into or brought by the purchaser or lessee
10 directly into a district that has adopted the taxes imposed by
11 this Act, the tangible personal property is subject to the crime
12 control district use tax imposed by the district under Subsection
13 (a) of this section. The use is considered consummated at the
14 location where the item is first stored, used, or otherwise
A"N
is consumed after the intrastate transit has ceased.
16 (e) If the tangible personal property is shipped from
17 outside this state to a customer within this state, the tangible
18 personal property is subject to the use tax imposed by Subsection
19 (a) of this section and not the sales tax imposed by this Act.
20 The use is consummated at the first point in this state where the
21 property is stored, used, or otherwise consumed after interstate
22 transit has ceased. Tangible personal property delivered to a
23 point in this state is presumed to be for storage, use, or other
24 consumption at that point until the contrary is established.
25 SECTION 11 . EXEMPTION FOR TELECOMMUNICATIONS SERVICES.
26 (a) There are exempted from the taxes imposed under the authority
27 of this Act the receipts from the sale within the district of
A10N
48
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1 telecommunications services except as provided by Subsection (b)
2 of this section.
3 (b) The board of a district that has adopted the tax
4 authorized by this Act may by a majority vote repeal the applica- ■
5 tion of the exemption provided by this section for telecommuni-
6 cations services sold within the district. A district that has
7 voted to repeal the application of the exemption may in the same
8 manner exempt from the tax the receipts from the sale within the
9 district of telecommunications services. A vote of the board
10 repealing the application of the exemption or exempting the
11 receipts from the sale of telecommunications services must be
12 entered in the minutes of the board. If the application of the
13 - exemption ,is repealed or the exemption of the receipts from the
14 sale of telecommunications services is adopted, the president of
15 the district shall forward to the comptroller by United States
16 Registered Mail or Certified Mail a copy of the order. Or.
17 receipt of the notification by the comptroller, one whole calen-
18 dar quarter shall elapse before the repeal of the application of
19 the exemption or the exemption becomes effective. The imposition.
20 of the tax or the exemption then takes effect on the first day of
21 the calendar quarter next succeeding the elapsed quarter.
22 (c) Notwithstanding Subsection W of this section, no
23 order repealing the application of the exemption provided by
24 Subsection (a) of this section may take effect or be effective
25 before October 1, 1988.
26 SECTION 12 . DUTIES OF COMPTROLLER. (a) On and after the
ro" 27 effective date of any tax imposed under the provisions of this
49
1 Act, the comptroller shall perform all functions incident to the
2 administration, collection, enforcement, and operation of the
3 tax, and the comptroller shall collect, in addition to the Limit-
4 ed Sales, Excise, and Use Tax for the State of Texas, the tax
5 imposed under the authority of this Act at the rate authorized by
6 this Act applied to the receipts from the sale at retail or on
7 the sale price or lease or rental price on the storage, use, or
8 other consumption of all taxable items within the district which
9 property is subject to the state Limited Sales, Excise, and Use
10 Tax Act. The tax imposed hereunder and the tax imposed under the
11 Limited Sales, Excise, and Use Tax shall be collected together,
12 if both are imposed, and reported on such forms and under such
13 administrative rules as may be prescribed by the comptroller not
14 inconsistent with the provisions of this Act. On and after the
15 effective date of any proposition to rescind a crime control
16 district sales and use tax in any district the comptroller shall
17 comply therewith as provided in this Act.
18 (b) The comptroller shall make quarterly reports to a
19 district that has adopted this Act and is imposing the tax if the
20 district requests the reports. The report must contain the name,
21 address, and account number of each person, firm, or corporation
22 doing business in the district and which has remitted a payment
23 of the tax during the quarter covered by the report.
24 {c} The comptroller shall make an additional quarterly
25 report to a district that has adopted this Act and is imposing
26 the tax if the district requests the additional report. The
27 additional report must include the name, address, and account
50
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1 number, if any, of and the amount of the tax due by each person,
2 firm, or corporation doing business in the district and which has
3 failed to pay the tax imposed by the district or imposed under
4 the Limited Sales, Excise, and Use Tax Act. The report by the
s comptroller shall also state whether there has been a partial
6 payment of tax by the delinquent taxpayer, whether the taxpayer
7 is delinquent in payment of sales and use taxes to the state, and
8 what steps, if any, have been taken by the comptroller in order
g to collect the delinquent taxes.
10 (d) If a district determines that any person, firm, or
11 corporation doing business in the district is not included in a
12 report from the comptroller, the district shall report the name
13 and address of the person, firm, or corporation, to the comp-
14 troller. On receiving a report from a district the comptroller
1s shall send, before the expiration of a 40-day period following
16 the day the comptroller received a report from the district, an
17 explan;tion as to why the person, firm, or corporation is not
is obligated for the tax imposed by the district, a statement that
19 the person, firm, or corporation is obligated to pay the tax and
20 that the tax is delinquent, or a certification that the person,
21 firm, or corporation is obligated to pay the tax and that the
22 full amount due under the tax has been credited to the account of
23 the district.
24 SECTION 13. PROVISIONS GOVERNING COLLECTION BY COMP-
25 TROLLER. The following provisions shall govern the collection by
26 the comptroller of the tax imposed by this Act:
51
1
1 (a) All applicable provisions contained in Subtitles A and
2 B and Chapter 151, Title 2, Tax Code, shall apply to the
3 collection of the tax imposed by this Act, except as modified in
4 this Act. y
5 (b) (1) For the purposes of the crime control district and
6 use tax, "place of business of the retailer" means an established
7 outlet, office, or location operated by the retailer, his agent,
g or employee for the purpose of receiving orders for taxable
g items. The term "place of business of the retailer" includes any
10 location at which three or more orders are received by the
11 retailer in a calendar year. A warehouse, storage yard, or manu-
12 facturing plant may not be considered a "place of business of the
13 retailer" unless three or more orders are received by the retail-
14 er in a calendar year at such warehouse, storage yard, or manu-
15 facturing plant. Each "place of business of the retailer" must
16 have a permit issued by the comptroller in accordance with
17 Subchapter F, Chapter 151 , Tax Code. For the purpose of deter-
is mining the proper crime control district sales tax imposed by
19 this Act, a retail sale, lease, or rental is consummated as
20 provided in Paragraphs (i) , (ii) , (iii) , and (iv) of this subdi-
21 vision, regardless of where transfer of title or possession of
22 the taxable item occurs unless the tangible personal property
23 sold, leased, or rented is delivered by the retailer or his agent
24 to an out-of-state destination or to a common carrier for deliv-
25 ery to an out-of=state destination.
26 (i) If a retailer has only one place of business within
27 this state, all retail sales, leases, and rentals of the retailer
52
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1 are consummated at that place of business, except as provided in
2 Paragraph (iv) of this subdivision.
r
3 (ii) If a retailer has more than one place of business in
4 this state, the retailer's place of business where the purchaser
5 or lessee takes possession of and removes an item of tangible
6 personal property is the place of business where the sale, lease,
7 or rental of that item is consummated. If, however, the retailer
8 ships or delivers the tangible personal property to a point
9 designated by the purchaser or lessee, then the retailer' s place
10 of business from which the tangible personal property is shipped
11 or delivered to the purchaser or lessee is the place of business
12 where the sale, lease, or rental is consummated.
13 (iii) If neither possession of tangible personal property
14 is taken at nor shipment or delivery of the tangible personal
15 property is made from the retailer's place of business within
16 this state, the sale, lease, or rental is consummated at the
17 retailer' s place of business within the state where the order is
18 received or if the order is not received at a place of business
19 of the retailer, at the place of business from which the retail-
20 er' s salesman who took the order operates.
21 (iv) When transfer of possession of tangible personal prop-
22 erty occurs at or shipment or delivery originates from a location
23 within the state other than a place of business of the retailer,
24 the sale, lease, or rental is consummated at the location within
25 this state to which the tangible personal property is shipped or
26 delivered or at which possession is taken by the customer when:
53
4 '
1 -- the retailer is an itinerant vendor and has no place of '"WA
2 business;
3 -- the retailer's place of business where the purchase
4 order is initially received or from which the retailer' s salesman
5 who took the order the order operates is outside the state; or
6 -- the purchaser places the order directly with the
7 retailer' s supplier and the property is shipped or delivered
s directly to the purchaser by the supplier.
9 (v) The sale of natural gas or electricity is consummated
10 at the point of delivery to the consumer.
11 (vi) Tax due on the sale of an amusement service is -a llo-
12 cated to the district in which the performance or other delivery
13 of the service takes place.
14 (vii) For the purpose of determining the proper crime ..,,
15 control district sales and use tax, the sale of telecommuni-
1.6 cations services is consummated at the location of the telephone
17 or other telecommunications device from which the call or other
is transmission originates. If the point of origin cannot be deter-
19 mined, the sale is consummated at the address to which the call
20 is billed.
21 (2) if a purchaser who gives a resale certificate makes
22 any use of tangible personal property which subjects the property
23 to sales tax pursuant to the provisions of Section 151.154 , Tax
24 Code, the use or other consumption of the property subjecting the
25 property to tax is consummated at the place where the property is
26 stored or kept at the time of or just prior to its use or
27 consumption, unless the tangible personal property is delivered
54
1 by the retailer or his agent to an out-of-state destination or to
2 a common carrier for delivery to an out-of-state destination.
3 (3) For the purpose of determining the proper crime
4 control district use tax imposed by this Act, a holder of a
5 direct payment permit issued by the comptroller under the Limited
6 Sales, Excise, and Use Tax Act who becomes liable for the crime
7 control district use tax by reason of storage, use, or other
8 consumption of taxable items purchased in this state under a
9 direct payment exemption certificate, shall allocate the tax to
10 the district in which the taxable item was first removed from the
11 permit holder's storage, or if not stored,"-the place at which the
12 items are first used or consumed by the permit holder after
13 transportation. As used in this subdiv%sion, storage, use, or
14 other consumption may not include a temporary delay or inter-
15 ruption necessary and incident to the transportation or further
16 fabrication, processing, or assembling of taxable items within
17 this state for delivery to the permit holder. A charge for proc-
is essing, fabrication, or further assembly in a district that has
19 adopted the crime control district use tax shall be subject to
20 the crime control district use tax. If a taxable item is first
21 stored, used, or consumed within an area that has not adopted the
22 tax imposed by this Act or outside of a district, no crime
23 control district use tax is due.
24 (c) All exemptions granted to agencies of government,
25 organizations, persons, and to the sale, storage, use, and other
26 consumption of certain articles and items taxable under the
opw 27 provisions of Subchapter H, Chapter 151, Tax Code, are hereby
55
1 made applicable to the imposition and collection of the tax
2 imposed by this Act.
3 (d) The same sales tax permit, exemption certificate, and
4 resale certificate required by the Limited Sales, Excise, and Use
5 Tax Act for the administration and collection of the state Limit-
6 ed Sales, Excise, and Use Tax shall satisfy the requirements of
7 this Act, and no additional permit or exemption certificate or
8 resale certificate shall be required; except that the comptroller
9 may prescribe a farm of exemption certificate for an exemption
la from the tax imposed by this Act as a result of a prior contract
11 under Subsection (c) of this section.
12 (e) All discounts allowed the retailer under the
1,3 provisions of the Limited Sales, Excise, and Use Tax Act for the
r
14 collection of and for prepayment of taxes under that Act are
15 hereby allowed and made applicable to any taxes collected under
16 the provisions of this Act.
17 (f) The penalties provided in the Limited Sales, Excise,
is and Use Tax Act for violations of that Act are hereby made appli-
19 cable to violations of this Act.
20 SECTION 14. FUNDS DEPOSITED WITH STATE TREASURER; SURETY
21 HANDS FOR COMPTROLLER AND EMPLOYEES. (a) Each crime control
22 district sales and use tax collected by the comptroller under
23 this Act shall be deposited with the state treasurer in trust and
24 shall be kept in a separate suspense account for the district.
25 (b) The comptroller, and any of the comptroller' s depu-
26 ties, assistants, and employees who shall have any duties or
27 responsibilities in connection with the collection, deposit,
AWA
56
1 transfer, transmittal, disbursement, safekeeping, accounting, or
2 recording of funds which come into the hands of the comptroller
3 under the provisions of this Act, shall enter into a surety bond
4 or bonds payable to any and all districts in whose behalf such
5 funds have been collected under this Act in the amount of
6 $100,000; provided that 'the comptroller may enter into a blanket
7 bond or bonds covering himself and all such deputies, assistants,
8 and employees. The cost of the premium or premiums for such
9 surety bond or bonds shall be paid by the comptroller from the
10 share of such collections retained by the comptroller for the
11 benefit-- of the state. At any time when any premium or premiums
12 on such bond or bonds are due and payable, the comptroller shall
13 pay the cost of same out of the state' s share of such collection
14 in his hands and deposit the balance of the state's share as
15 provided in Section 15 of this Act. Separate bonds are not
16 required for compliance with this subsection, with Subsection B,
17 Section 27 , County Sales and Use Tax Act (Article 2353e, Vernon' s
1s Texas Civil Statutes) , and with Subsection B, Section 7 , Local
19 Sales and Use Tax Act (Article 1066c, Vernon' s Texas Civil Stat-
20 utes) , if cities, counties, and districts are protected in a
21 single bond.
22 SECTION 15. TRANSMITTAL OF TAX COLLECTED TO DISTRICT
23 TREASURER; DEDUCTION FOR STATE SERVICES. (a) Each district' s
24 share of all district sales and use tax collected under this Act
25 by the comptroller shall be transmitted to the district treasurer
26 by the comptroller payable to the district periodically as
57
z
I promptly as feasible. Transmittals required under this Act shall
2 be made at least twice in each state fiscal year.
3 (b) Before transmitting any funds collected under this Act
4 to a district, the comptroller shall deduct two percent of the
5 total amount collected from each district as a charge by the
6 State of Texas for its services specified in this Act, and the
7 amounts so deducted, subject to the provisions for expenditures
8 for bond premiums, shall be deposited by the comptroller in the
9 state treasury to the credit of the general revenue fund of the
10 state.
11 (c) The comptroller is authorized to retain in the
12 suspense account of any district a portion of the tax collected
13 under this Act. Such balance so retained in the suspense account
14 shall not exceed five percent of the amount remitted to the
15 district. The comptroller is authorized to make refunds from the
16 suspense account of any district for overpayments made to such
17 accounts and to redeem dishonored checks and drafts deposited to
18 the credit of the proper suspense accounts.
19 (d) When any district shall adopt the crime control
20 district sales and use tax and shall thereafter finally abolish
21 such tax, the comptroller may retain in the suspense account of
22 such district fora period of one year five percent of the final
23 remittance to each such district at the time of termination of
24 collection of such tax in the district to cover possible refunds
25 for overpayment of the tax and to redeem dishonored checks and
26 drafts deposited to the credit of such accounts. After one year
27 has elapsed after the effective date of abolition of such tax in
AOWA
58
♦ Y
1 the district, the comptroller shall remit the balance in such
2 account to the district and close the account.
i
3 SECTION 16. USE OF FUNDS. Money collected under this Act
4 is for the use and benefit of the district to which the funds are !
5 distributed and shall be used for purposes authorized in the
6 Crime Control District Act.
7 SECTION 17. RULES. The comptroller may promulgate
8 reasonable rules, not inconsistent with the provisions of this
9 Act, to implement the enforcement, administration, and collection
10 of the taxes authorized herein.
11 SECTION 18. SUIT FOR DELINQUENCY; SATISFACTION FROM
12 SEIZED PROPERTY. (a) In any district where the crime control
13 district sales and use tax has been imposed, if any person is
14 delinquent in the payment of the amount required to be paid by
I5 him under this Act, or in the event a determination has been made
16 against him for taxes and penalty under this Act, the limitation
17 for bringing suit for the collection of such delinquent tax and
18 penalty shall be the same as that provided by the Limited Sales,
19 Excise, and Use Tax Act. Where any person is delinquent in
20 payment of taxes under this Act, the comptroller shall notify the
21 treasurer of the district to which delinquent taxes are due under
22 this Act by United States Registered Mail or Certified Mail and
23 shall send a copy of the notice to the attorney general. The
24 district, acting through its attorney, may join in any suit
25 brought by the attorney general as a party plaintiff to seek a
26 judgement for the delinquent taxes and penalty due the district.
27 The notice sent by the comptroller to the district treasurer
59
1 showing the delinquency of a taxpayer for the crime control Aq4
2 district sales and use tax constitutes a certification of the
3 amount owed and is prima facie evidence of the determination of
4 the tax and of the delinquency of the amounts of the crime
5 control district sales and use tax set forth in the notice.
6 (b) Where property is seized by the comptroller under the
7 provisions of any law authorizing seizure of the property of a
8 taxpayer who is delinquent in payment of the tax imposed by the
9 state Limited Sales, Excise, and Use Tax Act, and where such
10 taxpayer is also delinquent in payment of any tax imposed by this
11 Act, the comptroller shall sell sufficient property to pay the
12 delinquent taxes and penalty due any district under this Act in
13 addition to that required to pay any amount due the state under
14 the Limited Sales, Excise, and Use Tax Act. The proceeds from
15 such sale shall first be applied to all sums due the state; and
16 the remainder, if any, shall be applied to all sums due a city
17 under the Local Sales and Use Tax Act (Article 1066c, Vernon's
18 Texas Civil Statutes) ; and then the remainder, if any, shall be
19 applied to all sums due a county under the County Sales and Use
20 Tax Act (Article 2353e, Vernon' s Texas Civil Statutes) ; and then
21 the remainder, if any, shall be applied to all sums due the
22 district.
23 (c) (1) A district that has adopted the tax authorized by
24 this Act may bring suit for the collection of sales, excise, or
25 use taxes imposed by this Act which have been certified as
26 provided in Subsection (a) of this section and are owed to the
27 district under this Act if at least 60 days before the filing of
AON
60
the suit, written notice by certified mail of the tax delinquency
2 and of the intention to file suit is given to the taxpayer, the
3 comptroller, and the attorney general and if neither the comp-
4 troller nor the attorney general disapproves the suit by written
5 notice to the district.
6 (2) The comptroller or attorney general may disapprove the
7 institution of a tax suit by a district if:
8 (i) negotiations between the state and the taxpayer are
9 being conducted for the purpose of the collection of delinquent
10 taxes owed to the state and the district seeking to bring suit;
11 (ii) the taxpayer owes substantial taxes to the state and
12 there is a reasonable possibility that the taxpayer may be unable
13 to pay the total amount owed in full;
14 (iii) the state will bring suit against the taxpayer for
15 the collection of all sales, excise, and use taxes due under the
16 Limited Sales, Excise, and Use Tax Act and this Act; or
17 (iv) the suit involves a critical legal question relating
is to the interpretation of state law or a provision of the Texas or
19 United States Constitution in which the state has an overriding
20 interest.
21 (3) A notice of disapproval to a district must give the
22 reason for the determination of the comptroller or attorney
23 general. A disapproval is final and not subject to review. A
24 district, after one year from the date of the disapproval, may
25 proceed again as provided in Subdivision (1) of Subsection (c) of
26 this section, even though the liability of the taxpayer includes
27 taxes for which the district has previously given notice and the
61
1 comptroller or attorney general has previously disapproved the
2 suit.
3 (4) In any suit under this subsection for the collection
4 of the district tax, a judgement for or against the taxpayer does
5 not affect any claim against the taxpayer by another district, a
6 county, a city, or the state unless the state is a party to the
7 action.
8 (5) A copy of the final judgment in favor of a district in
9 a case in which the state is not a party shall be abstracted by
10 the district and a copy of the judgment together with a copy of
11 the abstract shall be sent to the comptroller. The district
12 shall collect the taxes awarded to it under the judgment as
13 provided by Section 151.608 (e) , Tax Code, and is responsible for
14 the renewal of the judgment before the expiration of the 10-year '1�
15 period. If a collection is made by a district on a judgment, the
16 amount collected shall be sent to the comptroller for deposit in
17 the suspense account of the district,
18 SECTION 19. ELECTION CONTEST, (a) If the validity of any
19 election held under authority of Article 4 or Article 9 of the
20 Crime Control District Act or the result of such election based
21 on the returns thereof shall be contested, such election contest
22 shall be filed and tried as provided in the Crime Control
23 District Act and in the Election Code of the State of Texas;
24 provided that the contestant shall notify the comptroller by
25 United States Registered Mail or Certified Mail within 10 days
26 after filing such contest by mailing a copy of such notice of
27 contest to the comptroller showing the style of the contest, the A**A
62
date filed, the case number, and the court in which the same is
2 pending; and provided further that no such contest shall be heard
3 unless the comptroller is timely notified as provided herein.
4 (b) On receipt of a notice of contest, the date on which
5 such tax shall become effective in any district, or abolished in
6 any district, as a result of such election shall be suspended.
7 When a final judgment shall be entered in such election contest,
8 the district president shall notify the comptroller by United
9 States Registered Mail or Certified Mail and shall enclose a
10 certified copy of such final judgment. if the judgment sustains
11 the validity of such election or the result of such election so
12 that the tax status under this Act of such district is changed,
13 the comptroller shall place in effect such tax or abolish the
14 same, as the case may be, in the district substituting the notice
is of final judgment and the date on which it is received for the
16 notice of the result of such election elsewhere provided for in
17 this Act.
is SECTION 3. EMERGENCY; EFFECTIVE DATE. The importance of
19 this legislation and the crowded condition of the calendars in
20 both houses create an emergency and an imperative public necessi-
21 ty that the constitutional rule requiring bills to be read on
22 three several days in each house be suspended, and this rule is
23 hereby suspended, and that this Act take effect and be in force
24 from and after its passage, and it is so enacted.
63