75R12929 CLG-F                           

         By Williams                                           H.B. No. 2850

         Substitute the following for H.B. No. 2850:

         By Kamel                                          C.S.H.B. No. 2850

                                A BILL TO BE ENTITLED

 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.