1-1     By:  Williams (Senate Sponsor - Galloway)             H.B. No. 2850

 1-2           (In the Senate - Received from the House May 8, 1997;

 1-3     May 9, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 16, 1997, reported favorably by

 1-5     the following vote:  Yeas 11, Nays 0; May 16, 1997, sent to

 1-6     printer.)

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the exclusion from emergency service districts and

1-10     rural fire prevention districts of certain territory subject to ad

1-11     valorem assessments.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Subchapter B, Chapter 775, Health and Safety

1-14     Code, is amended by adding Section 775.025 to read as follows:

1-15           Sec. 775.025.  EXCLUSION OF CERTAIN TERRITORY SUBJECT TO AD

1-16     VALOREM ASSESSMENTS.  (a)  The board shall hold a hearing to

1-17     consider the exclusion from the district of territory in a planned

1-18     community if the board receives a petition requesting a hearing on

1-19     the issue that is signed by at least five percent of the qualified

1-20     voters residing in the territory proposed to be excluded from the

1-21     district.  A petition submitted under this subsection must describe

1-22     the boundaries of the territory to be excluded from the district.

1-23           (b)  The board shall give notice of a hearing under this

1-24     section.  The procedure under Section 775.015 for issuing notice of

1-25     a hearing to create the district applies to the notice under this

1-26     section.  The notice must state:

1-27                 (1)  the boundaries of the territory proposed to be

1-28     excluded;

1-29                 (2)  the time and place of the hearing; and

1-30                 (3)  that each person who has an interest in the

1-31     exclusion or nonexclusion of the territory may attend the hearing

1-32     and present the person's opinion for or against the exclusion of

1-33     the territory.

1-34           (c)  After the hearing, if the board finds that the entity

1-35     responsible for administering and collecting the ad valorem based

1-36     assessments in the territory to be excluded provides or contracts

1-37     for the provision of substantially the same services as provided by

1-38     the district, the board shall:

1-39                 (1)  order an election on the question of exclusion; or

1-40                 (2)  declare by resolution the territory excluded from

1-41     the district.

1-42           (d)  The board may not exclude territory by resolution if at

1-43     least three percent of the qualified voters residing in the

1-44     territory to be excluded from the district protest the exclusion in

1-45     writing at the hearing.

1-46           (e)  In a resolution excluding territory, the board shall

1-47     describe the new boundaries of the district.

1-48           (f)  The board shall order an election in the territory

1-49     proposed to be excluded on the question of exclusion if:

1-50                 (1)  at least three percent of the qualified voters

1-51     residing in the territory to be excluded protest the exclusion in

1-52     writing at the hearing; or

1-53                 (2)  the board:

1-54                       (A)  despite the lack of a sufficient protest,

1-55     refuses to exclude the territory; and

1-56                       (B)  not later than the 90th day after refusing

1-57     to exclude the territory, receives a petition requesting an

1-58     election that is signed by at least 10 percent of the qualified

1-59     voters residing in the territory proposed to be excluded.

1-60           (g)  Except as otherwise provided by the Election Code, the

1-61     provisions of this chapter relating to the election creating the

1-62     district apply to the election notice, the manner and time of

1-63     giving the notice, and the manner of holding the election under

1-64     this section.

 2-1           (h)  For purposes of the election, the order calling the

 2-2     election shall divide the territory proposed to be excluded from

 2-3     the district into one or more precincts.

 2-4           (i)  If a majority of the votes in an election favor

 2-5     excluding the territory from the district, the board shall enter an

 2-6     order declaring the territory excluded from the district and

 2-7     describing the new boundaries of the district.

 2-8           (j)  The board shall file a copy of a resolution or order

 2-9     with the county clerk of each county in which the district is

2-10     located.  Each county clerk shall record the resolution or order.

2-11     After the resolution or order is recorded, the excluded territory

2-12     is no longer part of the district.

2-13           (k)  If a majority of the votes in the election are against

2-14     excluding the territory, the board may not act on a petition to

2-15     exclude all or any part of the territory before the first

2-16     anniversary of the date of the most recent election to exclude the

2-17     territory.

2-18           (l)  The exclusion of territory under this section does not

2-19     diminish or impair the rights of the holders of any outstanding and

2-20     unpaid bonds, warrants, or other district obligations.  The

2-21     district shall continue to impose taxes each year on the excluded

2-22     territory at the same rate imposed on other territory in the

2-23     district until the total amount of taxes collected from the

2-24     excluded territory equals its pro rata share of the indebtedness of

2-25     the district at the time the territory was excluded.  The taxes

2-26     collected under this subsection shall be applied only to the

2-27     payment of the excluded territory's pro rata share of indebtedness.

2-28     The owner of all or part of the excluded territory at any time may

2-29     pay in full the owner's share of the excluded territory's pro rata

2-30     share of the district's indebtedness at the time the territory was

2-31     excluded.

2-32           (m)  On or after the date on which the appropriate county

2-33     clerk records the resolution or order excluding the territory from

2-34     the district, the district or a fire department or ambulance

2-35     service that contracts with the district is not required to provide

2-36     to the excluded territory emergency service facilities, emergency

2-37     services, or other services to protect the life and health of

2-38     residents in the territory.

2-39           (n)  For purposes of Subsection (o)(1), land ownership that

2-40     is separated only by the claim of title by the state to the beds

2-41     and banks of rivers or streams is considered contiguous.  Land

2-42     ownership that is separated by a farm-to-market road right-of-way,

2-43     whether fee simple ownership or an easement, is not considered

2-44     contiguous.

2-45           (o)  In this section:

2-46                 (1)  "Planned community" means a planned community of

2-47     15,000 or more acres of land originally established under the Urban

2-48     Growth and New Community Development Act of 1970 (42 U.S.C. Section

2-49     4501 et seq.) that is:

2-50                       (A)  located in a county adjacent to a county

2-51     with a population of 2,800,000 or more according to the most recent

2-52     federal census; and

2-53                       (B)  subject to restrictive covenants containing

2-54     ad valorem based assessments on real property for use in part to

2-55     finance services of the same general type provided by the district.

2-56                 (2)  "Territory in a planned community" means territory

2-57     that:

2-58                       (A)  on the effective date of this section

2-59     comprises all or part of a planned community; or

2-60                       (B)  on the effective date of this section is

2-61     contiguous to a planned community and later becomes part of that

2-62     planned community.

2-63           SECTION 2.  Subchapter D, Chapter 794, Health and Safety

2-64     Code, is amended by adding Section 794.0526 to read as follows:

2-65           Sec. 794.0526.  EXCLUSION OF CERTAIN TERRITORY SUBJECT TO AD

2-66     VALOREM ASSESSMENTS.  (a)  The board shall hold a hearing to

2-67     consider the exclusion from the district of territory in a planned

2-68     community if the board receives a petition requesting a hearing on

2-69     the issue that is signed by at least five percent of the qualified

 3-1     voters residing in the territory proposed to be excluded from the

 3-2     district.  A petition submitted under this subsection must describe

 3-3     the boundaries of the territory to be excluded from the district.

 3-4           (b)  The board shall give notice of a hearing under this

 3-5     section.  The procedure under Section 794.015 for issuing notice of

 3-6     a hearing to create the district applies to the notice under this

 3-7     section.  The notice must state:

 3-8                 (1)  the boundaries of the territory proposed to be

 3-9     excluded;

3-10                 (2)  the time and place of the hearing; and

3-11                 (3)  that each person who has an interest in the

3-12     exclusion or nonexclusion of the territory may attend the hearing

3-13     and present the person's opinion for or against the exclusion of

3-14     the territory.

3-15           (c)  After the hearing, if the board finds that the entity

3-16     responsible for administering and collecting the ad valorem based

3-17     assessments in the territory to be excluded provides or contracts

3-18     for the provision of substantially the same services as provided by

3-19     the district, the board shall:

3-20                 (1)  order an election on the question of exclusion; or

3-21                 (2)  declare by resolution the territory excluded from

3-22     the district.

3-23           (d)  The board may not exclude territory by resolution if at

3-24     least three percent of the qualified voters residing in the

3-25     territory to be excluded from the district protest the exclusion in

3-26     writing at the hearing.

3-27           (e)  In a resolution excluding territory, the board shall

3-28     describe the new boundaries of the district.

3-29           (f)  The board shall order an election in the territory

3-30     proposed to be excluded on the question of exclusion if:

3-31                 (1)  at least three percent of the qualified voters

3-32     residing in the territory to be excluded protest the exclusion in

3-33     writing at the hearing; or

3-34                 (2)  the board:

3-35                       (A)  despite the lack of a sufficient protest,

3-36     refuses to exclude the territory; and

3-37                       (B)  not later than the 90th day after refusing

3-38     to exclude the territory, receives a petition requesting an

3-39     election that is signed by at least 10 percent of the qualified

3-40     voters residing in the territory proposed to be excluded.

3-41           (g)  Except as otherwise provided by the Election Code, the

3-42     provisions of this chapter relating to the election creating the

3-43     district apply to the election  notice, the manner and time of

3-44     giving the notice, and the manner of holding the election under

3-45     this section.

3-46           (h)  For purposes of the election, the order calling the

3-47     election shall divide the territory proposed to be excluded from

3-48     the district into one or more precincts.

3-49           (i)  If a majority of the votes in an election favor

3-50     excluding the territory from the district, the board shall enter an

3-51     order declaring the territory excluded from the district and

3-52     describing the new boundaries of the district.

3-53           (j)  The board shall file a copy of a resolution or order

3-54     with the county clerk of each county in which the district is

3-55     located.  Each county clerk shall record the resolution or order.

3-56     After the resolution or order is recorded, the excluded territory

3-57     is no longer part of the district.

3-58           (k)  If a majority of the votes in the election are against

3-59     excluding the territory, the board may not act on a petition to

3-60     exclude all or any part of the territory before the first

3-61     anniversary of the date of the most recent election to exclude the

3-62     territory.

3-63           (l)  The exclusion of territory under this section does not

3-64     diminish or impair the rights of the holders of any outstanding and

3-65     unpaid bonds, warrants, or other district obligations.  The

3-66     district shall continue to impose taxes each year on the excluded

3-67     territory at the same rate imposed on other territory in the

3-68     district until the total amount of taxes collected from the

3-69     excluded territory equals its pro rata share of the indebtedness of

 4-1     the district at the time the territory was excluded.  The taxes

 4-2     collected under this subsection shall be applied only to the

 4-3     payment of the excluded territory's pro rata share of indebtedness.

 4-4     The owner of all or part of the excluded territory at any time may

 4-5     pay in full the owner's share of the excluded territory's pro rata

 4-6     share of the district's indebtedness at the time the territory was

 4-7     excluded.

 4-8           (m)  On or after the date on which the appropriate county

 4-9     clerk records the resolution or order excluding the territory from

4-10     the district, the district or a fire department or ambulance

4-11     service that contracts with the district is not required to provide

4-12     to the excluded territory fire fighting facilities, fire

4-13     extinguishment services, emergency rescue services, ambulance

4-14     services, or other services to protect the life and property of

4-15     residents in the territory from fire and to conserve natural and

4-16     human resources.

4-17           (n)  For purposes of Subsection (o)(1), land ownership that

4-18     is separated only by the claim of title by the state to the beds

4-19     and banks of rivers or streams is considered contiguous.  Land

4-20     ownership that is separated by a farm-to-market road right-of-way,

4-21     whether fee simple ownership or an easement, is not considered

4-22     contiguous.

4-23           (o)  In this section:

4-24                 (1)  "Planned community" means a planned community of

4-25     15,000 or more acres of land originally established under the Urban

4-26     Growth and New Community Development Act of 1970 (42 U.S.C. Section

4-27     4501 et seq.) that is:

4-28                       (A)  located in a county adjacent to a county

4-29     with a population of 2,800,000 or more according to the most recent

4-30     federal census; and

4-31                       (B)  subject to restrictive covenants containing

4-32     ad valorem based assessments on real property for use in part to

4-33     finance services of the same general type provided by the district.

4-34                 (2)  "Territory in a planned community" means territory

4-35     that:

4-36                       (A)  on the effective date of this section

4-37     comprises all or part of a planned community; or

4-38                       (B)  on the effective date of this section is

4-39     contiguous to a planned community and later becomes part of that

4-40     planned community.

4-41           SECTION 3.  (a)  The governmental proceedings and acts of the

4-42     governing body of a rural fire prevention district relating to the

4-43     exclusion of territory from the boundaries of the district

4-44     subsequent to the ordering of an election for the conversion of the

4-45     district to an emergency services district are validated as of the

4-46     dates on which the proceedings and acts occurred.  The validation

4-47     includes any governmental proceeding or act relating to the calling

4-48     and holding and the canvassing of the returns of the conversion

4-49     election, including the results of the election.

4-50           (b)  This section does not apply to any matter that on the

4-51     effective date of this Act:

4-52                 (1)  is involved in litigation if the litigation

4-53     ultimately results in the matter being held invalid by a court of

4-54     competent jurisdiction; or

4-55                 (2)  has been held invalid by a final judgment of a

4-56     court of competent jurisdiction.

4-57           SECTION 4.  The importance of this legislation and the

4-58     crowded condition of the calendars in both houses create an

4-59     emergency and an imperative public necessity that the

4-60     constitutional rule requiring bills to be read on three several

4-61     days in each house be suspended, and this rule is hereby suspended,

4-62     and that this Act take effect and be in force from and after its

4-63     passage, and it is so enacted.

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