SRC-TNM H.B. 2649 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2649
By: Hamric (Lindsay)
Intergovernmental Relations
5-7-97
Engrossed


DIGEST 

Currently, Section 794.018(a), Health and Safety Code, allows a rural fire
prevention district (RFPD) to levy a tax not to exceed three cents on each
$100 of the taxable value of property taxable by the district.  There is
concern that some RFPDs may have difficulty maintaining services at this
funding level.  H.B. 2649 would increase the maximum tax rate levied by an
RFPD in Harris County from three cents per $100 valuation to five cents
per $100 valuation.  Approval by a majority of the voters in the district
would be required before any tax increase becomes effective. 

PURPOSE

As proposed, H.B. 2649 outlines provisions regarding the maximum ad
valorem tax rate for certain rural fire prevention districts. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 794.018(a), Health and Safety Code, to require
the commissioners court to order an election to confirm the rural fire
prevention district's (district) creation and authorize the levy of a tax
not to exceed three cents on each $100 of the taxable value of property
taxable by the district, if no part of the district is located in Harris
County or five cents on each $100 of the taxable value of property taxable
by the district, if any part of the district is located in Harris County,
on the granting of a petition. 

 SECTION 2. Amends Chapter 794B, Health and Safety Code, by adding Section
794.0181, as follows: 

Sec. 794.0181. ELECTION TO INCREASE TAX RATE IN HARRIS COUNTY. Authorizes
the board of fire commissioners of a district any part of which is located
in Harris County and the creation of which was confirmed when the maximum
tax rate authorized by Section 48-d, Article III, Texas Constitution, was
less than the rate specified by Section 794.018(a)(2), to order an
election to increase the maximum tax rate of the district to the rate
specified by Section 794.018(a)(2).  Requires the proposition on the
ballot to set out the proposed maximum tax rate to be authorized at the
election.  Sets forth requirements and provisions regarding an election to
increase the tax rate for a district in Harris County.   

SECTION 3. Provides that this Act takes effect on the date on which the
constitutional amendment proposed by H.J.R. 96 of the 75th Legislature,
Regular Session, 1997, takes effect.  Provides that this Act has no effect
if that amendment is not approved by the voters. 

SECTION 4. Emergency clause.