BILL ANALYSIS
H.B. 1832
By: Turner, B. (Armbrister)
Intergovernmental Relations
5-26-95
Senate Committee Report (Unamended)
BACKGROUND
Volunteer fire departments (VFDs) serve rural and some suburban
areas of Texas. Since few programs exist to help them, most are
underfunded and subsist on local charity fundraisers. This
shortage of financial resources makes it difficult for VFDs to get
new equipment and maintain equipment on-hand. Potential members
are also deterred from joining VFDs because of the time and effort
necessary to raise money to support the department.
VFDs 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 is very expensive. A survey of 519 VFDs in
Texas found that they had paid close to $4.5 million in premiums
over a three-year period but had claims for only $264,000. Fire
trucks are driven infrequently, so they have few opportunities to
get into accidents.
PURPOSE
As proposed, H.B. 1832 sets forth provisions relating to the
creation of emergency services districts without taxing authority
and the conversion of such districts to emergency services
districts 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 Chapter 775B, Health and Safety Code, by adding
Sections 775.0111 and 775.0121, as follows:
Sec. 775.0111. PETITION FOR CREATION OF DISTRICT WITHOUT
TAXING AUTHORITY LOCATED WHOLLY IN ONE COUNTY. (a) Requires
the county judge of a county to receive a petition signed by
at least 100 qualified voters who own taxable real property in
the proposed district or, if there are fewer than 100 of those
voters, a petition signed by a majority of those voters,
before an emergency services district (district) without
taxing authority that contains territory located wholly in one
county may be created.
(b) Sets forth the format of the name of the district
proposed by the petition.
Sec. 775.0121. PETITION FOR CREATION OF DISTRICT WITHOUT
TAXING AUTHORITY LOCATED IN MORE THAN ONE COUNTY. (a)
Requires the county judge of a county in which the district is
proposed to be created to receive a petition signed by at
least 100 qualified voters who own taxable real property that
is located in the county in which the judge presides and in
the proposed district or, if there are fewer than 100 of those
voters, a petition signed by a majority of those voters.
(b) Sets forth the format of the name of the district
proposed by the petition.
SECTION 2. Amends Section 775.013(a), Health and Safety Code, as
follows:
(a) Requires the petition prescribed by Section 775.011,
775.0111, 775.012, or 775.0121 to show, among certain
information, whether the proposed district is to have taxing
authority.
SECTION 3. Amends Section 775.015(c), Health and Safety Code, to
require a notice of a hearing to state, among certain information,
whether 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 Subsection (c),
as follows:
(c) Requires the commissioners court to order the creation of
the district, if after the hearing on a petition to create a
district without taxing authority under Section 775.0111 or
775.0121 the commissioners court finds that the proposed
district meets the requirements prescribed by Subsection (a).
Provides that the creation of the district is effected on the
date specified in the order, except as provided by Subsection
(d). Provides that a confirmation election for the creation
of a district without taxing authority is not necessary.
(d) Provides that the commissioners court order creating the
district is not effective until the commissioners court of
each county in which the district is proposed to be created
has ordered the district's creation, if the petition indicates
that the proposed district will be created without taxing
authority and contain territory in more than one county.
(e) Created from existing text.
SECTION 5. Amends Section 775.018(a), Health and Safety Code, to
make a conforming change.
SECTION 6. Amends Section 775.031(a), Health and Safety Code, to
make a conforming change.
SECTION 7. Amends the heading of Chapter 775, Health and Safety
Code, as follows:
SUBCHAPTER D. EXPANSION, CONVERSION, OR DISSOLUTION OF DISTRICT
SECTION 8. Amends Chapter 775D, Health and Safety Code, by adding
Section 775.056, as follows:
Sec. 775.056. CONVERSION OF DISTRICT WITHOUT TAXING AUTHORITY
TO DISTRICT WITH TAXING AUTHORITY. (a) Authorizes qualified
voters who own taxable real property in a district without
taxing authority to petition to have the district converted to
a district with taxing authority in the same manner as that
provided for the creation of a district by Section 775.011 or
Section 775.012.
(b) Requires the commissioners court to set and hold a
hearing on the petition as provided by Sections 775.015 and
775.016, on receipt of a petition for conversion in the
proper form. Requires the commissioners court to grant or
deny the petition as provided by Section 775.017. Requires
the commissioners court to order a confirmation election as
provided by Section 775.018, if the petition is granted.
(c) Provides that the conversion of a district from a
district without taxing authority to a district with taxing
authority does not affect the district's obligations or
outstanding indebtedness.
SECTION 9. Amends Section 775.071, Health and Safety Code, as
follows:
Sec. 775.071. New heading: LIMITATION: ON INDEBTEDNESS AND
TAXING. (a) Provides that Sections 775.074-775.0753,
775.076(k), and 775.077, do not apply to a district that does
not have taxing authority.
SECTION 10. Amends Section 775.076(b), Health and Safety Code,
to authorize the board of a district that does not have 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. Makes a
conforming change.
SECTION 11. Amends Section 775.078, Health and Safety Code, by
adding Subsection (e) to prohibit a district that does not have
taxing authority from issuing bond anticipation notes secured by
taxes.
SECTION 12. Emergency clause.
Effective date: upon passage.