Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Williams H.B. No. 2850
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 amending Chapters 775 and 794, Health and Safety Code, by adding
1-3 Sections 775.025 and 794.0526 relating to the exclusion from rural
1-4 fire prevention districts and emergency services districts of
1-5 certain territory subject to ad valorem assessments; ratifying the
1-6 exclusion of land from certain districts and related election
1-7 proceedings; providing a severability clause; and declaring an
1-8 emergency.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. That Chapter 775, Health and Safety Code, is
1-11 amended by adding Section 775.025 as follows:
1-12 Sec. 775.025 EXCLUSION OF CERTAIN TERRITORY SUBJECT TO AD
1-13 VALOREM ASSESSMENTS. (a) The board shall hold a hearing to
1-14 consider the exclusion of territory comprising on the effective
1-15 date of this Act or hereafter comprising (but only if such added
1-16 territory is on the effective date of this Act contiguous to such
1-17 planned community and is subsequently added thereto) all or a
1-18 portion of a planned community of 15,000 acres or more originally
1-19 established pursuant to the Urban Growth and New Community
1-20 Development Act of 1970, and subject to restrictive covenants
1-21 containing ad valorem based assessments on real property used or to
1-22 be used, in part, to fund services of the same general type
1-23 provided by the district, if the board receives a petition
1-24 requesting a hearing on the issue that is signed by at least five
2-1 percent of the qualified voters residing within the territory
2-2 proposed to be excluded from the district. A petition submitted
2-3 under this subsection must describe the boundaries of the territory
2-4 to be excluded from the district.
2-5 (b) The board shall issue a notice of a hearing to be held
2-6 under Subsection (a) in the manner required of a county clerk by
2-7 the provisions of Section 775.015 relating to the procedure for
2-8 issuing notice of a hearing to create a district. The notice must
2-9 state:
2-10 (1) the boundaries of the territory to be excluded;
2-11 (2) the time and place of the hearing; and
2-12 (3) that each person who has an interest in the
2-13 exclusion or nonexclusion of the territory may attend the hearing
2-14 and present the person's opinion for or against the exclusion of
2-15 the territory.
2-16 (c) After the hearing, if the board finds that the
2-17 organization responsible for administering and collecting the ad
2-18 valorem based assessments in the territory to be excluded provides
2-19 or contracts for the provision of substantially the same services
2-20 as provided by the district, the board shall either order an
2-21 election on the question of the exclusion of the territory or
2-22 declare by resolution the territory excluded from the district.
2-23 However, the board may not by resolution declare the territory as
2-24 excluded if at least three percent of the qualified voters residing
2-25 within the territory to be excluded protest the exclusion in
2-26 writing at the hearing.
2-27 (d) If the board excludes the territory by resolution, the
2-28 board shall state in the resolution the new boundaries of the
2-29 district. The board shall file a copy of the resolution in the
2-30 office of the county clerk of each county in which the district is
3-1 located. The county clerk of each affected county shall record the
3-2 resolution in the county records. After the resolution is
3-3 recorded, the excluded territory is no longer a part of the
3-4 district.
3-5 (e) The board shall order an election in the territory
3-6 proposed to be excluded on the question of exclusion if:
3-7 (1) at least three percent of the qualified voters
3-8 residing within the territory to be excluded protest the exclusion
3-9 in writing at the hearing; or
3-10 (2) the board:
3-11 (A) despite the lack of a sufficient protest,
3-12 refuses to exclude the territory; and
3-13 (B) within 90 days after refusing to exclude the
3-14 territory, receives a petition requesting an election that is
3-15 signed by ten percent of the qualified voters residing within the
3-16 territory proposed to be excluded.
3-17 (f) Except as otherwise required by the Election Code, the
3-18 election notice, the manner and time of giving the notice, and the
3-19 manner of holding an election ordered under Subsections (c) or (e)
3-20 are governed by the applicable provisions of this chapter relating
3-21 to the original election to create a district. The election shall
3-22 be held within the territory proposed to be excluded, which shall
3-23 be divided into one or more precincts in the order calling the
3-24 election. Only qualified voters residing within the territory to
3-25 be excluded shall be eligible to vote in the election.
3-26 (g) If a majority of the voters voting in the election favor
3-27 excluding the territory from the district, the board shall enter an
3-28 order declaring the territory excluded from the district and
3-29 stating the new boundaries of the district. The board shall file a
3-30 copy of the order in the office of the county clerk of each county
4-1 in which the district is located. The county clerk of each
4-2 affected county shall record the order in the county records.
4-3 After the order is recorded, the excluded territory is no longer a
4-4 part of the district.
4-5 (h) If a majority of the voters voting in the election do
4-6 not favor excluding the territory, the board may not act on a
4-7 petition to exclude all or part of the same territory until the
4-8 first anniversary of the date of the most recent election to
4-9 exclude the territory from the district.
4-10 (i) The exclusion of territory under this section does not
4-11 diminish or impair the rights of the holders of any outstanding and
4-12 unpaid bonds, warrants, or other obligations of the district.
4-13 (j) Territory excluded under this section is not released
4-14 from the payment of its pro rata share of the district's
4-15 indebtedness. The district shall continue to levy taxes each year
4-16 on the excluded territory at the same rate levied on territory in
4-17 the district until the taxes collected from the excluded territory
4-18 equal its pro rata share of the indebtedness of the district at the
4-19 time the territory was excluded. The taxes collected under this
4-20 subsection shall be applied exclusively to the payment of the
4-21 excluded territory's pro rata share of indebtedness. The owner of
4-22 all or part of the excluded territory may pay in full, at any time,
4-23 the owner's share of the pro rata share of the district's
4-24 indebtedness.
4-25 SECTION 2. That Chapter 794, Health and Safety Code, is
4-26 amended by adding Section 794.0526 as follows:
4-27 Sec. 794.0526 EXCLUSION OF CERTAIN TERRITORY SUBJECT TO AD
4-28 VALOREM ASSESSMENTS. (a) The board shall hold a hearing to
4-29 consider the exclusion of territory comprising on the effective
4-30 date of this Act or hereafter comprising (but only if such added
5-1 territory is on the effective date of this Act contiguous to such
5-2 planned community and is subsequently added thereto) all or a
5-3 portion of a planned community of 15,000 acres or more originally
5-4 established pursuant to the Urban Growth and New Community
5-5 Development Act of 1970, and subject to restrictive covenants
5-6 containing ad valorem based assessments on real property used or to
5-7 be used, in part, to fund services of the same general type
5-8 provided by the district, if the board receives a petition
5-9 requesting a hearing on the issue that is signed by at least five
5-10 percent of the qualified voters residing within the territory
5-11 proposed to be excluded from the district. A petition submitted
5-12 under this subsection must describe the boundaries of the territory
5-13 to be excluded from the district.
5-14 (b) The board shall issue a notice of a hearing to be held
5-15 under Subsection (a) in the manner required of a county clerk by
5-16 the provisions of Section 794.015 relating to the procedure for
5-17 issuing notice of a hearing to create a district. The notice must
5-18 state:
5-19 (1) the boundaries of the territory to be excluded;
5-20 (2) the time and place of the hearing; and
5-21 (3) that each person who has an interest in the
5-22 exclusion or nonexclusion of the territory may attend the hearing
5-23 and present the person's opinion for or against the exclusion of
5-24 the territory.
5-25 (c) After the hearing, if the board finds that the
5-26 organization responsible for administering and collecting the ad
5-27 valorem based assessments in the territory to be excluded provides
5-28 or contracts for the provision of substantially the same services
5-29 as provided by the district, the board shall either order an
5-30 election on the question of the exclusion of the territory or
6-1 declare by resolution the territory excluded from the district.
6-2 However, the board may not by resolution declare the territory as
6-3 excluded if at least three percent of the qualified voters residing
6-4 within the territory to be excluded protest the exclusion in
6-5 writing at the hearing.
6-6 (d) If the board excludes the territory by resolution, the
6-7 board shall state in the resolution the new boundaries of the
6-8 district. The board shall file a copy of the resolution in the
6-9 office of the county clerk of each county in which the district is
6-10 located. The county clerk of each affected county shall record the
6-11 resolution in the county records. After the resolution is
6-12 recorded, the excluded territory is no longer a part of the
6-13 district.
6-14 (e) The board shall order an election in the territory
6-15 proposed to be excluded on the question of exclusion if:
6-16 (1) at least three percent of the qualified voters
6-17 residing within the territory to be excluded protest the exclusion
6-18 in writing at the hearing; or
6-19 (2) the board:
6-20 (A) despite the lack of a sufficient protest,
6-21 refuses to exclude the territory; and
6-22 (B) within 90 days after refusing to exclude the
6-23 territory, receives a petition requesting an election that is
6-24 signed by ten percent of the qualified voters residing within the
6-25 territory proposed to be excluded.
6-26 (f) Except as otherwise required by the Election Code, the
6-27 election notice, the manner and time of giving the notice, and the
6-28 manner of holding an election ordered under Subsections (c) or (e)
6-29 are governed by the applicable provisions of this chapter relating
6-30 to the original election to create a district. The election shall
7-1 be held within the territory proposed to be excluded, which shall
7-2 be divided into one or more precincts in the order calling the
7-3 election. Only qualified voters residing within the territory to
7-4 be excluded shall be eligible to vote in the election.
7-5 (g) If a majority of the voters voting in the election favor
7-6 excluding the territory from the district, the board shall enter an
7-7 order declaring the territory excluded from the district and
7-8 stating the new boundaries of the district. The board shall file a
7-9 copy of the order in the office of the county clerk of each county
7-10 in which the district is located. The county clerk of each
7-11 affected county shall record the order in the county records.
7-12 After the order is recorded, the excluded territory is no longer a
7-13 part of the district.
7-14 (h) If a majority of the voters voting in the election do
7-15 not favor excluding the same territory, the board may not act on a
7-16 petition to exclude all or part of the territory until the first
7-17 anniversary of the date of the most recent election to exclude the
7-18 territory from the district.
7-19 (i) The exclusion of territory under this section does not
7-20 diminish or impair the rights of the holders of any outstanding and
7-21 unpaid bonds, warrants, or other obligations of the district.
7-22 (j) Territory excluded under this section is not released
7-23 from the payment of its pro rata share of the district's
7-24 indebtedness. The district shall continue to levy taxes each year
7-25 on the excluded territory at the same rate levied on territory in
7-26 the district until the taxes collected from the excluded territory
7-27 equal its pro rata share of the indebtedness of the district at the
7-28 time the territory was excluded. The taxes collected under this
7-29 subsection shall be applied exclusively to the payment of the
7-30 excluded territory's pro rata share of indebtedness. The owner of
8-1 all or part of the excluded territory may pay in full, at any time,
8-2 the owner's share of the pro rata share of the district's
8-3 indebtedness.
8-4 SECTION 3. All previous governmental proceedings and acts
8-5 performed by the governing body of a rural fire prevention district
8-6 and all officials thereof in connection with the exclusion of
8-7 territory from the boundaries of such district subsequent to the
8-8 ordering of an election for the conversion of such district to an
8-9 emergency services district and all previous governmental
8-10 proceedings and acts relating to the calling, holding and
8-11 canvassing of the returns of such conversion election, including
8-12 the results of such election, are hereby in all things validated as
8-13 of the respective dates of such proceedings and acts. This
8-14 provision shall not be construed as validating any governmental act
8-15 or proceedings if, at the time this Act becomes effective, said
8-16 governmental act or proceedings were the subject of litigation
8-17 pending in any court of competent jurisdiction, if such litigation
8-18 is ultimately determined against the legality thereof.
8-19 SECTION 4. The provisions of this Act are severable. If any
8-20 word, phrase, clause, sentence, paragraph, section or other part of
8-21 this Act or the application thereto to any person or circumstance
8-22 shall ever be held to be invalid or unconstitutional, the remainder
8-23 of the Act and the application of such word, phrase, clause,
8-24 sentence, paragraph, section or other part of this Act to other
8-25 persons or circumstances shall not be affected thereby. It is
8-26 declared to be the legislative intent that this Act would have been
8-27 passed as to the remaining portions regardless of the invalidity of
8-28 any part.
8-29 SECTION 5. The importance of this legislation and the
8-30 crowded condition of the calendars in both houses create an
9-1 emergency and an imperative public necessity that the
9-2 constitutional rule requiring bills to be read on three several
9-3 days in each house be suspended, and this rule is hereby suspended,
9-4 and that this Act take effect and be in force from and after its
9-5 passage, and it is so enacted.