1-1  By:  Turner of Coleman, et al.                        H.B. No. 1832
    1-2       (Senate Sponsor - Armbrister)
    1-3        (In the Senate - Received from the House May 15, 1995;
    1-4  May 17, 1995, read first time and referred to Committee on
    1-5  Intergovernmental Relations; May 26, 1995, reported favorably by
    1-6  the following vote:  Yeas 8, Nays 0; May 26, 1995, sent to
    1-7  printer.)
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the creation of emergency services districts without
   1-11  taxing authority and the conversion of such districts to emergency
   1-12  services districts with taxing authority.
   1-13        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-14        SECTION 1.  Subchapter B, Chapter 775, Health and Safety
   1-15  Code, is amended by adding Sections 775.0111 and 775.0121 to read
   1-16  as follows:
   1-17        Sec. 775.0111.  PETITION FOR CREATION OF DISTRICT WITHOUT
   1-18  TAXING AUTHORITY LOCATED WHOLLY IN ONE COUNTY.  (a)  Before a
   1-19  district without taxing authority that contains territory located
   1-20  wholly in one county may be created, the county judge of the county
   1-21  must receive a petition signed by at least 100 qualified voters who
   1-22  own taxable real property in the proposed district or, if there are
   1-23  fewer than 100 of those voters, a petition signed by a majority of
   1-24  those voters.
   1-25        (b)  The name of the district proposed by the petition must
   1-26  be "____________ County Emergency Services District No.
   1-27  __________," with the name of the county and the proper consecutive
   1-28  number inserted.
   1-29        Sec. 775.0121.  PETITION FOR CREATION OF DISTRICT WITHOUT
   1-30  TAXING AUTHORITY LOCATED IN MORE THAN ONE COUNTY.  (a)  Before a
   1-31  district without taxing authority that contains territory located
   1-32  in more than one county may be created, the county judge of each
   1-33  county in which the district is proposed to be created must receive
   1-34  a petition signed by at least 100 qualified voters who own taxable
   1-35  real property that is located in the county in which the judge
   1-36  presides and in the proposed district or, if there are fewer than
   1-37  100 of those voters, a petition signed by a majority of those
   1-38  voters.
   1-39        (b)  The name of the district proposed by the petition must
   1-40  be "____________ Emergency Services District," with the proposed
   1-41  name of the district inserted.
   1-42        SECTION 2.  Section 775.013(a), Health and Safety Code, is
   1-43  amended to read as follows:
   1-44        (a)  The petition prescribed by Section 775.011, 775.0111,
   1-45  <or> 775.012, or 775.0121 must show:
   1-46              (1)  that the district is to be created and is to
   1-47  operate under Article III, Section 48-e, of the Texas Constitution,
   1-48  as proposed by S.J.R. No. 27, Acts of the 70th Legislature, Regular
   1-49  Session, 1987, and adopted by the voters at an election held
   1-50  November 3, 1987;
   1-51              (2)  the name of the proposed district;
   1-52              (3)  the district's boundaries as designated by metes
   1-53  and bounds or other sufficient legal description;
   1-54              (4)  that none of the territory in the district is
   1-55  included in another emergency services district; <and>
   1-56              (5)  the mailing address of each petitioner; and
   1-57              (6)  whether the proposed district is to have taxing
   1-58  authority.
   1-59        SECTION 3.  Section 775.015(c), Health and Safety Code, is
   1-60  amended to read as follows:
   1-61        (c)  The county clerk shall give notice of the hearing.  The
   1-62  notice must state:
   1-63              (1)  that creation of a district is proposed and
   1-64  whether the proposed district is to have taxing authority;
   1-65              (2)  that the district is to be created and is to
   1-66  operate under Article III, Section 48-e, of the Texas Constitution,
   1-67  as proposed by S.J.R. No. 27, Acts of the 70th Legislature, Regular
   1-68  Session, 1987, and adopted by the voters at an election held
    2-1  November 3, 1987;
    2-2              (3)  the name of the proposed district;
    2-3              (4)  the district's boundaries as stated in the
    2-4  petition;
    2-5              (5)  the place, date, and time of the hearing;  and
    2-6              (6)  that each person who has an interest in the
    2-7  creation of the district may attend the hearing and present grounds
    2-8  for or against creation of the district.
    2-9        SECTION 4.  Section 775.017, Health and Safety Code, is
   2-10  amended by adding new Subsections (c) and (d) and relettering
   2-11  existing Subsection (c) to read as follows:
   2-12        (c)  If after the hearing on a petition to create a district
   2-13  without taxing authority under Section 775.0111 or 775.0121 the
   2-14  commissioners court finds that the proposed district meets the
   2-15  requirements prescribed by Subsection (a), the commissioners court
   2-16  shall order the creation of the district.  Except as provided by
   2-17  Subsection (d), the creation of the district is effected on the
   2-18  date specified in the order.  A confirmation election for the
   2-19  creation of a district without taxing authority is not necessary.
   2-20        (d)  If the petition indicates that the proposed district
   2-21  will be created without taxing authority and contain territory in
   2-22  more than one county, the commissioners court order creating the
   2-23  district is not effective until the commissioners court of each
   2-24  county in which the district is proposed to be created has ordered
   2-25  the district's creation.
   2-26        (e)  If the commissioners court finds that the proposed
   2-27  district does not meet the requirements prescribed by Subsection
   2-28  (a), the commissioners court shall deny the petition.
   2-29        SECTION 5.  Section 775.018(a), Health and Safety Code, is
   2-30  amended to read as follows:
   2-31        (a)  Except as provided by Subsection (b), on the granting of
   2-32  a petition to create a district with taxing authority, the
   2-33  commissioners court shall order an election to confirm the
   2-34  district's creation and authorize the imposition of a tax not to
   2-35  exceed 10 cents on each $100 of the taxable value of property
   2-36  taxable by the district or three cents on each $100 of the taxable
   2-37  value of property taxable by the district if any area in the
   2-38  district is also included in a rural fire prevention district.
   2-39        SECTION 6.  Section 775.031(a), Health and Safety Code, is
   2-40  amended to read as follows:
   2-41        (a)  A district is a political subdivision of the state.  To
   2-42  perform the functions of the district, a district may:
   2-43              (1)  acquire, purchase, hold, lease, manage, occupy,
   2-44  and sell real and personal property or an interest in property;
   2-45              (2)  enter into and perform necessary contracts;
   2-46              (3)  appoint and employ necessary officers, agents, and
   2-47  employees;
   2-48              (4)  sue and be sued;
   2-49              (5)  if the district was created under a petition
   2-50  submitted as authorized by Section 775.011 or 775.012, impose and
   2-51  collect taxes as prescribed by this chapter;
   2-52              (6)  accept and receive donations;
   2-53              (7)  lease, own, maintain, operate, and provide
   2-54  emergency services vehicles and other necessary or proper
   2-55  apparatus, instrumentalities, equipment, and machinery to provide
   2-56  emergency services;
   2-57              (8)  lease, own, and maintain real property,
   2-58  improvements, and fixtures necessary to house, repair, and maintain
   2-59  emergency services vehicles and equipment;
   2-60              (9)  contract with other entities, including other
   2-61  districts or municipalities, to make emergency services facilities
   2-62  and emergency services available to the district;
   2-63              (10)  contract with other entities, including other
   2-64  districts or municipalities, for reciprocal operation of services
   2-65  and facilities if the contracting parties find that reciprocal
   2-66  operation would be mutually beneficial and not detrimental to the
   2-67  district; and
   2-68              (11)  perform other acts necessary to carry out the
   2-69  intent of this chapter.
   2-70        SECTION 7.  The heading to Subchapter D, Chapter 775, Health
    3-1  and Safety Code, is amended to read as follows:
    3-2   SUBCHAPTER D.  EXPANSION, CONVERSION, OR DISSOLUTION OF DISTRICT
    3-3        SECTION 8.  Subchapter D, Chapter 775, Health and Safety
    3-4  Code, is amended by adding Section 775.056 to read as follows:
    3-5        Sec. 775.056.  CONVERSION OF DISTRICT WITHOUT TAXING
    3-6  AUTHORITY TO DISTRICT WITH TAXING AUTHORITY.  (a)  Qualified voters
    3-7  who own taxable real property in a district without taxing
    3-8  authority may petition to have the district converted to a district
    3-9  with taxing authority in the same manner as that provided for the
   3-10  creation of a district by:
   3-11              (1)  Section 775.011, if the district to be converted
   3-12  is located wholly in one county; or
   3-13              (2)  Section 775.012, if the district to be converted
   3-14  is located in more than one county.
   3-15        (b)  On receipt of a petition for conversion in the proper
   3-16  form, the commissioners court shall set and hold a hearing on the
   3-17  petition as provided by Sections 775.015 and 775.016.  The
   3-18  commissioners court shall grant or deny the petition as provided by
   3-19  Section 775.017.  If the petition is granted, the commissioners
   3-20  court shall order a confirmation election as provided by Section
   3-21  775.018.
   3-22        (c)  The conversion of a district from a district without
   3-23  taxing authority to a district with taxing authority does not
   3-24  affect the district's obligations or outstanding indebtedness.
   3-25        SECTION 9.  Section 775.071, Health and Safety Code, is
   3-26  amended to read as follows:
   3-27        Sec. 775.071.  LIMITATION:  ON INDEBTEDNESS AND TAXING.  (a)
   3-28  Except as provided by Section 775.051, Section 775.072, and
   3-29  Sections 775.077-775.081, a district may not contract for an amount
   3-30  of indebtedness in any one year that is in excess of the funds then
   3-31  on hand or that may be paid from current revenues for the year.
   3-32        (b)  The following do not apply to a district that does not
   3-33  have taxing authority:
   3-34              (1)  Sections 775.074-775.0753;
   3-35              (2)  Section 775.076(k); and
   3-36              (3)  Section 775.077.
   3-37        SECTION 10.  Section 775.076(b), Health and Safety Code, is
   3-38  amended to read as follows:
   3-39        (b)  The board of a district that does not have taxing
   3-40  authority may issue bonds and notes in one or more issues or series
   3-41  that are payable from and secured by liens on and pledges of all or
   3-42  part of the district's revenues, income, or receipts.  The board of
   3-43  a district with taxing authority may issue bonds and notes in one
   3-44  or more issues or series that are payable from and secured by liens
   3-45  on and pledges of:
   3-46              (1)  ad valorem taxes;
   3-47              (2)  all or part of the district's revenues, income, or
   3-48  receipts; or
   3-49              (3)  a combination of those taxes, revenues, income,
   3-50  and receipts.
   3-51        SECTION 11.  Section 775.078, Health and Safety Code, is
   3-52  amended by adding Subsection (e) to read as follows:
   3-53        (e)  A district that does not have taxing authority may not
   3-54  issue bond anticipation notes secured by taxes.
   3-55        SECTION 12.  The importance of this legislation and the
   3-56  crowded condition of the calendars in both houses create an
   3-57  emergency and an imperative public necessity that the
   3-58  constitutional rule requiring bills to be read on three several
   3-59  days in each house be suspended, and this rule is hereby suspended,
   3-60  and that this Act take effect and be in force from and after its
   3-61  passage, and it is so enacted.
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