BWH C.S.H.B. 2850 75(R)BILL ANALYSIS COUNTY AFFAIRS C.S.H.B. 2850 By: Williams 4-25-97 Committee Report (Substituted) BACKGROUND In the case of a very limited number of large-scale, planned community developments, such as The Woodlands, fire protection and emergency services are provided by a non-profit corporation funded by assessments on real property which are imposed on an ad valorem basis. Meanwhile, rural fire prevention and emergency services districts impose taxes on the same area for the same services, resulting in double taxation. Chapters 775 and 794 of the Health and Safety Code presently contain provisions which allow for the exclusion of territory from a rural fire prevention district and emergency services district, respectively, which is overlapped by another "taxing authority" or by a municipality. However, the statute is unclear as to whether a "taxing authority" includes a non-profit corporation. PURPOSE HB 2850 would establish a procedure for the exclusion of land overlapped by a non-profit corporation with ad valorem based assessments for fire protection and emergency services in planned communities of 15,000 acres or more. 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 Chapter 775, relating to rural fire prevention districts, Health and Safety Code, by adding Section 775.025 requiring the board of the district, upon petition of five percent or more qualified voters of the area to be excluded, to conduct a hearing on whether or not to exclude the area. The board may exclude the territory on it's own motion or, if written protest is received by at least three percent of the persons affected, the board must order an election on the question of the exclusion of the territory. If the board refuses to exclude the property as requested in the petition, and at least ten percent of the qualified voters within the area so request, the board must also call an election on the question of exclusion of property. The election must carry by a majority of the qualified voters in the area proposed to be excluded, and if the election fails, no similar election may be held for a period of at least one year. SECTION 2. Amends Chapter 794, relating to emergency services districts, Health and Safety Code, by adding Section 794.0526 relating to the exclusion of certain territory subject to ad valorem assessments. The procedure for exclusion is identical to that described in Section 1 above. SECTION 3. Validates previous exclusions of territory and related elections to eliminate any question as to the validity of such proceedings. A savings clause is included for any governmental act or proceeding which was the subject of litigation pending in any court of competent jurisdiction at the effective date of this Act. SECTION 4. General severability clause. SECTION 5. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute is a Legislative Council draft of the original, and it makes no substantive changes.