BILL ANALYSIS

Senate Research Center	H.B. 2730
88R23133 MCF-D	By: Rosenthal; Orr (Bettencourt)
	Local Government
	5/5/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Current law regarding budget preparation and budget amendments for emergency services districts in a county with a population of three million or more lacks clarity. Current law does not contemplate approval of such a district's budget or an amendment to that budget through public input.  These districts are funded with local ad valorem tax revenues and local taxpayers should have input in how the districts are spending public funds. 

H.B. 2730 seeks to provide transparency in the adoption of the annual budget for an emergency services district in a county with a population of more than three million by requiring the board of emergency services commissioners of such a district to hold an open meeting to consider the proposed budget for the following fiscal year before voting on the adoption of the budget and to hold another open meeting to consider any proposed amendment to that budget after its initial adoption.

H.B. 2730 amends current law relating to the adoption and amendment of an annual budget by certain emergency services districts.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter E, Chapter 775, Health and Safety Code, by adding Section 775.079, as follows:

Sec. 775.079. ADOPTION AND AMENDMENT OF ANNUAL BUDGET IN CERTAIN DISTRICTS. (a) Provides that this section applies only to a district located wholly in a county with a population of more than three million.

(b) Requires the board of emergency services commissioners (board) to prepare and adopt the district's annual budget in the manner provided by this section.

(c) Requires the board, after notice, to hold an open meeting to consider the proposed budget for the following fiscal year. Authorizes the adoption of the budget to occur at the same meeting at which the board takes final action to set the tax rate if the board complies with Section 775.074(d-1) (relating to prohibiting the board from setting the tax rate for a fiscal year before the date the board adopts a budget for that fiscal year).

(d) Requires the board, at least 72 hours before holding a meeting to adopt a proposed budget for the following fiscal year, to post the proposed budget on the district's Internet website in the same location on the website that a proposed tax rate to be adopted is posted.

(e) Prohibits the board, after the board adopts the budget, from amending the budget except as provided by Subsections (f) and (g).

(f) Authorizes the board, after notice, to amend the budget after its initial adoption only at an open meeting. Requires the board to:

(1) not later than 72 hours before the meeting, post the proposed amendment on the district's Internet website in the same location on the website that a proposed tax rate to be adopted is posted; and

(2) include certain language in the notice of the meeting. Sets forth the required language of the notice.

(g) Authorizes the board, after allowing comments from the public regarding the proposed amendment, to amend the budget only if three or more members of the board vote in favor of adopting the proposed amendment.

(h) Requires the board to give notice of a meeting held under this section in the manner provided by Chapter 551 (Open Meetings), Government Code, and this section.

SECTION 2. Effective date: September 1, 2023.