S.B. No. 2370
 
 
 
 
AN ACT
  relating to the division of certain emergency services districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 8489, Special District Local Laws Code,
  is amended by adding Subchapter F to read as follows:
  SUBCHAPTER F.  DIVISION OF EMERGENCY SERVICES DISTRICT THAT
  OVERLAPS WITH THE DISTRICT
         Sec. 8489.251.  DEFINITION. In this subchapter,
  "improvement district" means the Comal County Water Improvement
  District No. 3.
         Sec. 8489.252.  AUTHORITY TO DIVIDE DISTRICT. A county in
  which the improvement district is located may by order divide an
  emergency services district located in whole or in part in the
  improvement district and wholly in the county in the manner
  provided by this subchapter.
         Sec. 8489.253.  PETITION FOR DIVISION; NOTICE OF HEARING.
  (a)  Before an emergency services district may be divided under this
  subchapter, the county judge must receive a petition for division
  signed by at least 60 percent of the qualified voters of the
  improvement district.
         (b)  A petition for division must include:
               (1)  the name of the new emergency services district to
  be created; and
               (2)  a description of the proposed territory of the new
  emergency services district.
         (c)  The petition may include an agreement with a neighboring
  municipality to allow the municipality to provide fire and
  emergency medical services through the new emergency services
  district.
         (d)  Not later than the 30th day after the date the county
  judge receives a petition under this section, the commissioners
  court of the county shall set a place, date, and time for a hearing
  to consider the petition. The commissioners court shall issue a
  notice of the hearing that includes:
               (1)  the name of the proposed emergency services
  district;
               (2)  a description of the proposed emergency services
  district's boundaries; and
               (3)  the place, date, and time of the hearing on the
  petition.
         (e)  A commissioners court of a county that issues notice of
  a hearing under Subsection (d) shall publish the notice in a
  newspaper of general circulation in the improvement district once a
  week for two consecutive weeks. The first publication must occur
  not later than the 21st day before the date on which the hearing
  will be held.
         Sec. 8489.254.  HEARING ON DIVISION OF EMERGENCY SERVICES
  DISTRICT. (a) At a hearing on a petition for the division of an
  emergency services district under this subchapter, the
  commissioners court shall consider the petition and each issue
  relating to the division of the emergency services district.
         (b)  Any interested person may appear before the
  commissioners court to support or oppose the division.
         (c)  The commissioners court shall approve the petition not
  later than the 10th day after the date of the hearing if the
  commissioners court finds that:
               (1)  the petition contains the number of signatures
  required under Section 8489.253; and
               (2)  the proposed division is feasible.
         (d)  The commissioners court shall consider any agreement
  described by Section 8489.253(c) submitted with the petition as
  evidence that the division of the emergency services district is
  feasible under Subsection (c) of this section.
         Sec. 8489.255.  ELECTION TO CONFIRM DIVISION. (a) If a
  commissioners court of a county approves a petition under Section
  8489.254 to divide an emergency services district, the
  commissioners court shall order an election to be held in the
  territory of the proposed new emergency services district to:
               (1)  confirm the division of the existing emergency
  services district; and
               (2)  authorize the imposition of a tax in the territory
  of the new emergency services district not to exceed the rate
  allowed by Section 48-e, Article III, Texas Constitution.
         (b)  Notice of the election shall be given in the same manner
  as the notice of a hearing under Section 8489.253.
         (c)  The election shall be held on the first authorized
  uniform election date prescribed by the Election Code that allows
  sufficient time to comply with the requirements of law.
         (d)  The ballot shall be printed to provide for voting for or
  against the proposition: "Dividing the (insert name of emergency
  services district) to create a new emergency services district and
  authorizing the imposition of a tax."
         (e)  If a majority of the voters voting at the election vote
  to divide the emergency services district, the commissioners court
  by order shall divide the emergency services district.
         (f)  The existing emergency services district and new
  emergency services district each shall pay a pro rata share of the
  cost of an election held under this section, based on the assessed
  value of real property in each emergency services district subject
  to ad valorem taxation.
         Sec. 8489.256.  DIVISION ORDER. (a)  A county order dividing
  an emergency services district under this subchapter must:
               (1)  require the existing emergency services district
  to disannex the land of the new emergency services district;
               (2)  create the new emergency services district in
  accordance with Chapter 775, Health and Safety Code;
               (3)  name the new emergency services district;
               (4)  include the metes and bounds description of the
  territories of the new emergency services district and the existing
  emergency services district after disannexation; and
               (5)  appoint the board of the new emergency services
  district in the manner described by Section 775.034, Health and
  Safety Code.
         (b)  The county judge shall send to the comptroller by
  certified or registered United States Mail a certified copy of a
  county order dividing an emergency services district under this
  subchapter.  The certified copy must:
               (1)  include the effective date of the division of the
  emergency services district; and
               (2)  be accompanied by a map clearly showing the
  boundaries of the new emergency services district.
         Sec. 8489.257.  TERMINATION OF AUTHORITY TO IMPOSE SALES AND
  USE TAXES. The authority of the existing emergency services
  district to impose sales and use taxes in the territory of the new
  emergency services district ends on the first day of the first
  calendar quarter after the comptroller receives a copy of the
  division order and map required by Section 8489.256.
         Sec. 8489.258.  ADMINISTRATION OF EMERGENCY SERVICES
  DISTRICT AFTER DIVISION. The board of the existing emergency
  services district continues in existence to govern the territory of
  the existing emergency services district after disannexation of the
  land of the new emergency services district.
         Sec. 8489.259.  TAXATION FOR OUTSTANDING BONDED DEBT. (a)
  The disannexation of territory from an emergency services district
  under this subchapter does not diminish or impair the rights of
  holders of any outstanding and unpaid bonds of the existing
  emergency services district.
         (b)  Property disannexed under this subchapter is not
  released from its pro rata share of any of the existing emergency
  services district's bonded indebtedness on the date of the
  disannexation and the existing emergency services district may
  continue to tax property in the disannexed territory until that
  debt is paid as if the territory had not been disannexed.
         (c)  After the date a petition is filed under Section
  8489.253 to divide an emergency services district, the emergency
  services district may not pledge ad valorem tax revenue or sales tax
  revenue from the territory that is proposed in the petition to be
  disannexed from the emergency services district unless the division
  of the emergency services district fails to be approved at an
  election under this subchapter.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2370 passed the Senate on
  May 9, 2023, by the following vote: Yeas 30, Nays 0,
  one present not voting; and that the Senate concurred in House
  amendment on May 26, 2023, by the following vote: Yeas 30, Nays 0,
  one present not voting.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2370 passed the House, with
  amendment, on May 24, 2023, by the following vote: Yeas 119,
  Nays 19, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor