1-1 AN ACT
1-2 relating to the exclusion from emergency service districts and
1-3 rural fire prevention districts of certain territory subject to ad
1-4 valorem assessments.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter B, Chapter 775, Health and Safety
1-7 Code, is amended by adding Section 775.025 to read as follows:
1-8 Sec. 775.025. EXCLUSION OF CERTAIN TERRITORY SUBJECT TO AD
1-9 VALOREM ASSESSMENTS. (a) The board shall hold a hearing to
1-10 consider the exclusion from the district of territory in a planned
1-11 community if the board receives a petition requesting a hearing on
1-12 the issue that is signed by at least five percent of the qualified
1-13 voters residing in the territory proposed to be excluded from the
1-14 district. A petition submitted under this subsection must describe
1-15 the boundaries of the territory to be excluded from the district.
1-16 (b) The board shall give notice of a hearing under this
1-17 section. The procedure under Section 775.015 for issuing notice of
1-18 a hearing to create the district applies to the notice under this
1-19 section. The notice must state:
1-20 (1) the boundaries of the territory proposed to be
1-21 excluded;
1-22 (2) the time and place of the hearing; and
1-23 (3) that each person who has an interest in the
1-24 exclusion or nonexclusion of the territory may attend the hearing
2-1 and present the person's opinion for or against the exclusion of
2-2 the territory.
2-3 (c) After the hearing, if the board finds that the entity
2-4 responsible for administering and collecting the ad valorem based
2-5 assessments in the territory to be excluded provides or contracts
2-6 for the provision of substantially the same services as provided by
2-7 the district, the board shall:
2-8 (1) order an election on the question of exclusion; or
2-9 (2) declare by resolution the territory excluded from
2-10 the district.
2-11 (d) The board may not exclude territory by resolution if at
2-12 least three percent of the qualified voters residing in the
2-13 territory to be excluded from the district protest the exclusion in
2-14 writing at the hearing.
2-15 (e) In a resolution excluding territory, the board shall
2-16 describe the new boundaries of the district.
2-17 (f) The board shall order an election in the territory
2-18 proposed to be excluded on the question of exclusion if:
2-19 (1) at least three percent of the qualified voters
2-20 residing in the territory to be excluded protest the exclusion in
2-21 writing at the hearing; or
2-22 (2) the board:
2-23 (A) despite the lack of a sufficient protest,
2-24 refuses to exclude the territory; and
2-25 (B) not later than the 90th day after refusing
2-26 to exclude the territory, receives a petition requesting an
2-27 election that is signed by at least 10 percent of the qualified
3-1 voters residing in the territory proposed to be excluded.
3-2 (g) Except as otherwise provided by the Election Code, the
3-3 provisions of this chapter relating to the election creating the
3-4 district apply to the election notice, the manner and time of
3-5 giving the notice, and the manner of holding the election under
3-6 this section.
3-7 (h) For purposes of the election, the order calling the
3-8 election shall divide the territory proposed to be excluded from
3-9 the district into one or more precincts.
3-10 (i) If a majority of the votes in an election favor
3-11 excluding the territory from the district, the board shall enter an
3-12 order declaring the territory excluded from the district and
3-13 describing the new boundaries of the district.
3-14 (j) The board shall file a copy of a resolution or order
3-15 with the county clerk of each county in which the district is
3-16 located. Each county clerk shall record the resolution or order.
3-17 After the resolution or order is recorded, the excluded territory
3-18 is no longer part of the district.
3-19 (k) If a majority of the votes in the election are against
3-20 excluding the territory, the board may not act on a petition to
3-21 exclude all or any part of the territory before the first
3-22 anniversary of the date of the most recent election to exclude the
3-23 territory.
3-24 (l) The exclusion of territory under this section does not
3-25 diminish or impair the rights of the holders of any outstanding and
3-26 unpaid bonds, warrants, or other district obligations. The
3-27 district shall continue to impose taxes each year on the excluded
4-1 territory at the same rate imposed on other territory in the
4-2 district until the total amount of taxes collected from the
4-3 excluded territory equals its pro rata share of the indebtedness of
4-4 the district at the time the territory was excluded. The taxes
4-5 collected under this subsection shall be applied only to the
4-6 payment of the excluded territory's pro rata share of indebtedness.
4-7 The owner of all or part of the excluded territory at any time may
4-8 pay in full the owner's share of the excluded territory's pro rata
4-9 share of the district's indebtedness at the time the territory was
4-10 excluded.
4-11 (m) On or after the date on which the appropriate county
4-12 clerk records the resolution or order excluding the territory from
4-13 the district, the district or a fire department or ambulance
4-14 service that contracts with the district is not required to provide
4-15 to the excluded territory emergency service facilities, emergency
4-16 services, or other services to protect the life and health of
4-17 residents in the territory.
4-18 (n) For purposes of Subsection (o)(1), land ownership that
4-19 is separated only by the claim of title by the state to the beds
4-20 and banks of rivers or streams is considered contiguous. Land
4-21 ownership that is separated by a farm-to-market road right-of-way,
4-22 whether fee simple ownership or an easement, is not considered
4-23 contiguous.
4-24 (o) In this section:
4-25 (1) "Planned community" means a planned community of
4-26 15,000 or more acres of land originally established under the Urban
4-27 Growth and New Community Development Act of 1970 (42 U.S.C. Section
5-1 4501 et seq.) that is:
5-2 (A) located in a county adjacent to a county
5-3 with a population of 2,800,000 or more according to the most recent
5-4 federal census; and
5-5 (B) subject to restrictive covenants containing
5-6 ad valorem based assessments on real property for use in part to
5-7 finance services of the same general type provided by the district.
5-8 (2) "Territory in a planned community" means territory
5-9 that:
5-10 (A) on the effective date of this section
5-11 comprises all or part of a planned community; or
5-12 (B) on the effective date of this section is
5-13 contiguous to a planned community and later becomes part of that
5-14 planned community.
5-15 SECTION 2. Subchapter D, Chapter 794, Health and Safety
5-16 Code, is amended by adding Section 794.0526 to read as follows:
5-17 Sec. 794.0526. EXCLUSION OF CERTAIN TERRITORY SUBJECT TO AD
5-18 VALOREM ASSESSMENTS. (a) The board shall hold a hearing to
5-19 consider the exclusion from the district of territory in a planned
5-20 community if the board receives a petition requesting a hearing on
5-21 the issue that is signed by at least five percent of the qualified
5-22 voters residing in the territory proposed to be excluded from the
5-23 district. A petition submitted under this subsection must describe
5-24 the boundaries of the territory to be excluded from the district.
5-25 (b) The board shall give notice of a hearing under this
5-26 section. The procedure under Section 794.015 for issuing notice of
5-27 a hearing to create the district applies to the notice under this
6-1 section. The notice must state:
6-2 (1) the boundaries of the territory proposed to be
6-3 excluded;
6-4 (2) the time and place of the hearing; and
6-5 (3) that each person who has an interest in the
6-6 exclusion or nonexclusion of the territory may attend the hearing
6-7 and present the person's opinion for or against the exclusion of
6-8 the territory.
6-9 (c) After the hearing, if the board finds that the entity
6-10 responsible for administering and collecting the ad valorem based
6-11 assessments in the territory to be excluded provides or contracts
6-12 for the provision of substantially the same services as provided by
6-13 the district, the board shall:
6-14 (1) order an election on the question of exclusion; or
6-15 (2) declare by resolution the territory excluded from
6-16 the district.
6-17 (d) The board may not exclude territory by resolution if at
6-18 least three percent of the qualified voters residing in the
6-19 territory to be excluded from the district protest the exclusion in
6-20 writing at the hearing.
6-21 (e) In a resolution excluding territory, the board shall
6-22 describe the new boundaries of the district.
6-23 (f) The board shall order an election in the territory
6-24 proposed to be excluded on the question of exclusion if:
6-25 (1) at least three percent of the qualified voters
6-26 residing in the territory to be excluded protest the exclusion in
6-27 writing at the hearing; or
7-1 (2) the board:
7-2 (A) despite the lack of a sufficient protest,
7-3 refuses to exclude the territory; and
7-4 (B) not later than the 90th day after refusing
7-5 to exclude the territory, receives a petition requesting an
7-6 election that is signed by at least 10 percent of the qualified
7-7 voters residing in the territory proposed to be excluded.
7-8 (g) Except as otherwise provided by the Election Code, the
7-9 provisions of this chapter relating to the election creating the
7-10 district apply to the election notice, the manner and time of
7-11 giving the notice, and the manner of holding the election under
7-12 this section.
7-13 (h) For purposes of the election, the order calling the
7-14 election shall divide the territory proposed to be excluded from
7-15 the district into one or more precincts.
7-16 (i) If a majority of the votes in an election favor
7-17 excluding the territory from the district, the board shall enter an
7-18 order declaring the territory excluded from the district and
7-19 describing the new boundaries of the district.
7-20 (j) The board shall file a copy of a resolution or order
7-21 with the county clerk of each county in which the district is
7-22 located. Each county clerk shall record the resolution or order.
7-23 After the resolution or order is recorded, the excluded territory
7-24 is no longer part of the district.
7-25 (k) If a majority of the votes in the election are against
7-26 excluding the territory, the board may not act on a petition to
7-27 exclude all or any part of the territory before the first
8-1 anniversary of the date of the most recent election to exclude the
8-2 territory.
8-3 (l) The exclusion of territory under this section does not
8-4 diminish or impair the rights of the holders of any outstanding and
8-5 unpaid bonds, warrants, or other district obligations. The
8-6 district shall continue to impose taxes each year on the excluded
8-7 territory at the same rate imposed on other territory in the
8-8 district until the total amount of taxes collected from the
8-9 excluded territory equals its pro rata share of the indebtedness of
8-10 the district at the time the territory was excluded. The taxes
8-11 collected under this subsection shall be applied only to the
8-12 payment of the excluded territory's pro rata share of indebtedness.
8-13 The owner of all or part of the excluded territory at any time may
8-14 pay in full the owner's share of the excluded territory's pro rata
8-15 share of the district's indebtedness at the time the territory was
8-16 excluded.
8-17 (m) On or after the date on which the appropriate county
8-18 clerk records the resolution or order excluding the territory from
8-19 the district, the district or a fire department or ambulance
8-20 service that contracts with the district is not required to provide
8-21 to the excluded territory fire fighting facilities, fire
8-22 extinguishment services, emergency rescue services, ambulance
8-23 services, or other services to protect the life and property of
8-24 residents in the territory from fire and to conserve natural and
8-25 human resources.
8-26 (n) For purposes of Subsection (o)(1), land ownership that
8-27 is separated only by the claim of title by the state to the beds
9-1 and banks of rivers or streams is considered contiguous. Land
9-2 ownership that is separated by a farm-to-market road right-of-way,
9-3 whether fee simple ownership or an easement, is not considered
9-4 contiguous.
9-5 (o) In this section:
9-6 (1) "Planned community" means a planned community of
9-7 15,000 or more acres of land originally established under the Urban
9-8 Growth and New Community Development Act of 1970 (42 U.S.C. Section
9-9 4501 et seq.) that is:
9-10 (A) located in a county adjacent to a county
9-11 with a population of 2,800,000 or more according to the most recent
9-12 federal census; and
9-13 (B) subject to restrictive covenants containing
9-14 ad valorem based assessments on real property for use in part to
9-15 finance services of the same general type provided by the district.
9-16 (2) "Territory in a planned community" means territory
9-17 that:
9-18 (A) on the effective date of this section
9-19 comprises all or part of a planned community; or
9-20 (B) on the effective date of this section is
9-21 contiguous to a planned community and later becomes part of that
9-22 planned community.
9-23 SECTION 3. (a) The governmental proceedings and acts of the
9-24 governing body of a rural fire prevention district relating to the
9-25 exclusion of territory from the boundaries of the district
9-26 subsequent to the ordering of an election for the conversion of the
9-27 district to an emergency services district are validated as of the
10-1 dates on which the proceedings and acts occurred. The validation
10-2 includes any governmental proceeding or act relating to the calling
10-3 and holding and the canvassing of the returns of the conversion
10-4 election, including the results of the election.
10-5 (b) This section does not apply to any matter that on the
10-6 effective date of this Act:
10-7 (1) is involved in litigation if the litigation
10-8 ultimately results in the matter being held invalid by a court of
10-9 competent jurisdiction; or
10-10 (2) has been held invalid by a final judgment of a
10-11 court of competent jurisdiction.
10-12 SECTION 4. The importance of this legislation and the
10-13 crowded condition of the calendars in both houses create an
10-14 emergency and an imperative public necessity that the
10-15 constitutional rule requiring bills to be read on three several
10-16 days in each house be suspended, and this rule is hereby suspended,
10-17 and that this Act take effect and be in force from and after its
10-18 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2850 was passed by the House on May
7, 1997, by the following vote: Yeas 139, Nays 0, 2 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 2850 on May 29, 1997, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 2850 on June 1, 1997, by the following vote: Yeas 145,
Nays 0, 1 present, not voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2850 was passed by the Senate, with
amendments, on May 26, 1997, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
2850 on May 31, 1997, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor