74(R) HB 1832 House Committee Report

                          BILL ANALYSIS



H.B. 1832
By: Turner, Bob
4-19-95
Committee Report (Unamended)


BACKGROUND

     Volunteer fire departments (VFD's) serve rural and some
suburban areas of Texas.  Since few programs exist to help them,
most are under-funded.  They survive only on what revenue they can
raise through local fundraisers such as bake sales and charity
barbecues.  This shortage of financial resources makes it difficult
for them to get new equipment and maintain what equipment they
have.  It also deters potential members from joining VFD's because
of the time and effort necessary to raise money to support the
department.
     VFD's pay for more than just fire trucks, hoses, and helmets. 
They must also buy liability insurance, at the very minimum for
their vehicles, since Texas law requires it of all cars and trucks. 
VFD liability insurance, however, is very expensive.  A survey of
519 VFD's in Texas found that they had paid close to $4.5 million
in premiums over a three year period in the early 1990's
(approximately $600 per truck per year) but had claims for only
$264,000.  
     Fire trucks are driven infrequently - they rarely leave the
station unless they are on their way to a fire - so they have few
opportunities to get into accidents.   A nearby state has found, in
fact, that most of the claims against VFD's come from their own
volunteers whose cars get bumped by fire trucks at the scene of the
fire.

PURPOSE

     The purpose of this Legislation is to assist Volunteer Fire
Departments by allowing them, through the local citizenry, to
petition their commissioner's court to be designated as an
Emergency Services District without taxing authority.  This would
allow them to be considered units of local governments for the
purposes of liability.  This would also limit their liability to
$100,000 per person, $300,000 for total personal injury, and
$100,000 for property damage per accident.  This legislation also
sets forth the process to convert a direct without taxing authority
to a district with taxing authority.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

     SECTION 1.  Amends Subchapter B, Chapter 775, Health and
Safety Code, by adding Sections 775.0111 and 775.0121.  Section
775.0111 sets up the procedure to petition for the creation of an
Emergency Services District without taxing authority located wholly
in one county.  This would require a petition signed by 100
qualified voters who own taxable property in the proposed district
or, if there are fewer than 100 qualified voters who own taxable
real property, a petition signed by a majority of those voters. 
This section also specifies the name of the proposed district to be
the "         County Emergency Services District No.   ," with the
name of the county and the proper number inserted.
           Section 775.0121 sets up the procedure for creating an
Emergency Services District without taxing authority that is
located in more than one county.  This procedure requires that the
county judge of each county in which the district is proposed is to
receive a petition with at least 100 qualified voters who own
taxable real property in the proposed district.  If there are fewer
than 100 qualified voters who own taxable real property, then a
petition signed by a majority of those voters is necessary.  This
section also specifies the name of the district as being the "    
          Emergency Services District No.    ," with the name of
the county and the proper consecutive number inserted.

     SECTION 2.  Amends Section 775.013(a), Health and Safety Code,
by adding Sections 775.0111 and 775.0121, Health and Safety Code. 
These are similar to the provisions found in 775.011 and 775.012
which deal with the required information on the petitions to create
a district with taxing authority.  These new sections also add the
requirement to those petitions that they show whether or not the
proposed district will have taxing authority.

     SECTION 3.  Amends Section 775.015(c), Health and Safety Code,
which deals with the hearing associated with the creation of an
Emergency Services District.  Requires the county clerk to state in
the notice of the hearing whether or not the proposed district is
to have taxing authority.

     SECTION 4.  Amends Section 775.017, Health and Safety Code, by
adding new Subsections (c) and (d) and relettering existing (c).  
           New Subsection (c) requires that, after the hearing on
a petition to create a district without taxing authority, the
commissioner's court finds that the proposed district meets the
requirement that is feasible and that it will promote the public
safety, welfare, health, and convenience as prescribed by
Subsection (a), the commissioner's court shall order the creation
of the district.  The district is created on the date specified on
the order, except as provided by Subsection (d).  A district
without taxing authority is not required to have a confirmation
election.
           New Subsection (d) requires that, if the proposed
district is located in more than one county, the commissioners
court order creating the proposed district is not effective until
the commissioners court of each county has ordered the district's
creation.
           Old Subsection (c) is relettered to new Subsection (e). 

     SECTION 5.  Amends Section 775.018(a), Health and Safety Code,
to add language which excludes proposed districts without taxing
authority from this subsection which requires a confirmation
election to be held to confirm a district's boundaries and to
authorize a tax.

     SECTION 6.  Amends Section 775.031(a), Health and Safety Code,
by adding language to (5) that would allow only those districts
with taxing authority to impose and collect taxes.

     SECTION 7.  Amends the heading to Subchapter D, Chapter 775,
Health and Safety Code, to read "EXPANSION, CONVERSION, OR
DISSOLUTION OF DISTRICT".

     SECTION 8.  Amends Subchapter D, Chapter 775, Health and
Safety Code, by adding Section 775.056.  This section deals with
the procedure necessary to convert a district without taxing
authority into a district with taxing authority.  
           (a) Qualified voters who own taxable real property may
petition, in the same 
manner as was used for the creation of the district without taxing
authority, to have the district
converted to a district with taxing authority.  
           (b) On receipt of such petition for conversion on the
proper form, the commissioner's court shall set and hold a hearing
on the petition as provided by Sections 775.015 and 775.016.  The
commissioners court shall grant or deny the petition as provided by
Section 775.017.  If the petition is granted, the commissioner's
court shall order a confirmation election as provided by Section
775.018.  
           (c) The conversion of a district from a district with
taxing authority to a district without taxing authority does not
affect the district's obligations or outstanding indebtedness.

     SECTION 9.  Amends Section 775.071, Health and Safety Code, by
excluding a district without taxing authority from the requirement
of imposing an ad valorem tax; provisions for the reduction in the
ad valorem tax rate; the adoption of a sales and use rate;
provisions for the election concerning a sales and use tax;
provisions concerning the change in boundary or effective date of
a sales and use tax; the requirement in the section dealing with
the authorization of bonds and notes for the imposition of a tax;
and the section dealing with the election to approve bonds and
notes.

     SECTION 10.  Amends Section 775.076(b), Health and Safety
Code, allowing the board of a district without taxing authority to
issue bonds and notes in one or more issues or series that are
payable from and secured by liens on and pledges of all or part of
the district's revenues, income, or receipts.

     SECTION 11.  Amends Section 775.078, Health and Safety Code,
by adding a Subsection (e) which would prohibit a district that
does not have taxing authority from issue bond anticipation notes
secured by taxes.

     SECTION 12.  Emergency Clause.
 

SUMMARY OF COMMITTEE ACTION

HB 1832 was considered by the County Affairs Committee in a public
hearing on 4/19/95. Representative B. Turner opened. The following
people testified for HB 1832: Mike Fisher, representing himself;
and Charlie Hester, representing himself; and John Lee Cook,
representing himself and the North Central Texas Fire Chief's
Association; and Tony Korioth, representing himself and the TML
Intergovernmental Risk Pool. The chair recognized the following
people to testify neutrally on HB 1832: Bobby Young, representing
himself; and A.R. "Babe" Schwartz, representing Regnier and
Associates Insurance Agency. Representative B.Turner closed. HB
1832 was left pending. HB 1832 was laid out as pending business and
reported favorably with the recommendation that it do pass and be
printed, by the record vote of 6 ayes, 0 nays, 0 pnv, 3 absent.