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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing an emergency services district to impose an |
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ad valorem tax for the acquisition of land, equipment, or apparatus |
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or the construction of capital improvements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 775.018(a), Health and Safety Code, is |
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amended to read as follows: |
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(a) On the granting of a petition, the commissioners court |
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shall order an election to confirm the district's creation and |
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authorize the imposition of the taxes provided and [a tax] not to |
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exceed the rates [rate] allowed by Section 48-e, Article III, Texas |
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Constitution. Any conditions negotiated under Section 775.014(h) |
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must be included on the ballot. |
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SECTION 2. The heading to Section 775.074, Health and |
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Safety Code, is amended to read as follows: |
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Sec. 775.074. AD VALOREM TAXES [TAX]. |
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SECTION 3. Section 775.074, Health and Safety Code, is |
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amended by amending Subsection (a) and adding Subsections (a-1), |
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(a-2), and (a-3) to read as follows: |
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(a) The board shall annually impose an ad valorem tax on all |
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real and personal property located in the district and subject to |
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district taxation for the operating and capital [district's] |
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support of the district [and the purposes authorized by this |
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chapter]. |
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(a-1) In addition to the ad valorem tax authorized under |
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Subsection (a), the board, after its establishment following an |
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election held under Section 775.018 and subject to Section |
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775.0745(a-1), shall annually impose an additional ad valorem tax |
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on all real and personal property in the district that is subject to |
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district taxation for the exclusive purposes of the acquisition of |
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land, equipment, or apparatus or the construction of capital |
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improvements, as described in the capital improvements plan filed |
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under Subsection (a-2). The board may use the tax for any related |
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purpose or pledge the revenue from the tax to pay the principal of |
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and interest on any bonds or notes issued or other indebtedness, |
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including loans and other financial arrangements described by |
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Section 775.085, to acquire land, equipment, or apparatus or to |
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construct capital improvements under this section, as the interest |
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and principal come due and to provide reserve funds if prescribed in |
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the resolution authorizing or the trust indenture securing the |
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bonds, notes, or other indebtedness. The revenue from the tax |
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authorized under this subsection shall be maintained in an account |
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separate from the maintenance and operations funds of the district. |
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A tax authorized by an election held under Section 775.0745(a-1) |
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may not be imposed on or after the date that: |
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(1) the purchase price of the capital assets as |
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provided by the capital improvements plan is paid in full; and |
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(2) the bonds, notes, or other indebtedness, including |
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loans and other financial arrangements described by Section |
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775.085, as authorized by the capital improvements plan, are paid |
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in full. |
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(a-2) The district may impose the tax under Subsection (a-1) |
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only if imposition of the tax is approved by the district voters |
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voting in an election held under Section 775.0745. At least 30 days |
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before the date the board orders an election to authorize the |
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additional tax described by Subsection (a-1), the district shall |
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file in the administrative office of the district a capital |
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improvements plan that is open to public inspection and that |
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describes the planned acquisition of land, equipment, or apparatus |
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or the planned construction of the capital improvements and their |
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estimated cost and incidental expenses. The capital improvements |
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plan is not: |
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(1) part of a proposition to be voted on; or |
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(2) a contract with the voters. |
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(a-3) In addition to any other information required by law, |
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notice of an election to authorize the additional tax described by |
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Subsection (a-1) must contain a copy of each proposition that will |
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be voted on at the election. The notice must include an estimate of |
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the probable cost of land, equipment, or apparatus or the |
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construction of capital improvements contained in the capital |
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improvements plan filed under Subsection (a-2) and any incidental |
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expenses connected with the issuance of bonds, notes, or other |
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indebtedness. |
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SECTION 4. The heading to Section 775.0745, Health and |
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Safety Code, is amended to read as follows: |
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Sec. 775.0745. ELECTION TO INCREASE TAX RATE OR IMPOSE TAX. |
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SECTION 5. Section 775.0745, Health and Safety Code, is |
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amended by adding Subsection (a-1) to read as follows: |
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(a-1) If the board decides to increase a tax imposed under |
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Section 775.074(a-1) to any rate above the rate approved by the |
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voters under Section 775.074(a-2), the board must order an election |
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to authorize the tax rate increase. Notwithstanding Subsection |
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(c), the board must hold the election on the uniform election date |
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in November. The proposition on the ballot must state the proposed |
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tax rate to be authorized at the election and the notice for the |
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election must conform to the requirements prescribed by Subsection |
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(b) and Section 775.074(a-3). |
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SECTION 6. This Act takes effect January 1, 2024, but only |
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if the constitutional amendment proposed by the 88th Legislature, |
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Regular Session, 2023, to authorize an emergency services district |
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to impose an ad valorem tax on property situated in the district not |
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to exceed five cents for the acquisition of land, equipment, or |
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apparatus or the construction of capital improvements is approved |
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by the voters. If the proposed amendment is not approved by the |
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voters, this Act has no effect. |