JWB H.B. 2649 75(R)BILL ANALYSIS WAYS & MEANS H.B. 2649 By: Hamric 3-25-97 Committee Report (Unamended) BACKGROUND Section 794.018 (a), Health and Safety Code (Election), 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. Some RFPD's may have difficulty maintaining services at this funding level. PURPOSE This bill 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 voters in the district is required before any tax increase becomes effective. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 794.018(a) Health and Safety Code, to allow Rural Fire Prevention Districts in Harris County to have a maximum ad valorem tax rate of five cents per $100 valuation. SECTION 2. Amends Subchapter B, Chapter 794, Health and Safety Code, by adding Section 794.0181. ELECTION TO INCREASE TAX RATE IN HARRIS COUNTY. (a) Allows a fire district in which any part of the district is located in Harris County to order an election to increase the tax rate up to the maximum amount authorized in Section 794.018(a)(2) of the Health and Safety Code. (b) and (c) Require the election to comply with the proper notice and timing provisions provided in the Election Code. (d) States that if a majority of the votes cast in the election favor the increase in the maximum tax rate, the maximum tax rate must be increased to the rate authorized by the election. Any tax increase approved by the voters may only take effect in the following tax years. SECTION 3. This Act takes effect upon the effective date of the companion constitutional amendment (H.J.R. 96). If the amendment is not approved by the voters, this Act has no effect. SECTION 4. Emergency clause.