By:  Lucio                                            S.B. No. 1277

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to powers and duties of emergency services districts.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 775.022, Health and Safety Code, is

 1-4     amended by amending Subsection (c) and adding Subsection (d) to

 1-5     read as follows:

 1-6           (c)  If a municipality annexes a portion of a district, the

 1-7     municipality shall compensate the district in an amount equal to

 1-8     the annexed territory's pro rata share of the district's

 1-9     indebtedness at the time the territory is annexed.  The district

1-10     shall apply compensation received from a municipality [Territory

1-11     disannexed under this section is not released from the payment of

1-12     its pro rata share of the district's indebtedness.  The district

1-13     shall continue to levy taxes each year on the disannexed territory

1-14     at the same rate levied on territory in the district until the

1-15     amount of taxes collected from the disannexed territory equals its

1-16     pro rata share of the indebtedness of the district at the time the

1-17     territory was disannexed.  The taxes collected] under this

1-18     subsection [shall be applied] exclusively to the payment of the

1-19     annexed [disannexed] territory's pro rata share of the district's

1-20     indebtedness.  [The owner of all or part of the disannexed

1-21     territory may pay in full, at any time, the owner's share of the

1-22     pro rata share of the district's indebtedness for which taxes are

1-23     to be collected.]

 2-1           (d)  On the district's request, a municipality shall purchase

 2-2     from the district at fair market value any real or personal

 2-3     property used to provide emergency services in territory disannexed

 2-4     under this section.

 2-5           SECTION 2.  Subsection (a), Section 775.031, Health and

 2-6     Safety Code, is amended to read as follows:

 2-7           (a)  A district is a political subdivision of the state.  To

 2-8     perform the functions of the district and to provide emergency

 2-9     services, a district may:

2-10                 (1)  acquire, purchase, hold, lease, manage, occupy,

2-11     and sell real and personal property or an interest in property;

2-12                 (2)  enter into and perform necessary contracts;

2-13                 (3)  appoint and employ necessary officers, agents, and

2-14     employees;

2-15                 (4)  sue and be sued;

2-16                 (5)  impose and collect taxes as prescribed by this

2-17     chapter;

2-18                 (6)  accept and receive donations;

2-19                 (7)  lease, own, maintain, operate, and provide

2-20     emergency services vehicles and other necessary or proper

2-21     apparatus, instrumentalities, equipment, and machinery to provide

2-22     emergency services;

2-23                 (8)  construct, lease, own, and maintain real property,

2-24     improvements, and fixtures necessary to house, repair, and maintain

2-25     emergency services vehicles and equipment;

 3-1                 (9)  contract with other entities, including other

 3-2     districts or municipalities, to make emergency services facilities

 3-3     and emergency services available to the district;

 3-4                 (10)  contract with other entities, including other

 3-5     districts or municipalities, for reciprocal operation of services

 3-6     and facilities if the contracting parties find that reciprocal

 3-7     operation would be mutually beneficial and not detrimental to the

 3-8     district; and

 3-9                 (11)  perform other acts necessary to carry out the

3-10     intent of this chapter.

3-11           SECTION 3.  Section 775.038, Health and Safety Code, is

3-12     amended to read as follows:

3-13           Sec. 775.038.  COMPENSATION; CONFLICT OF INTEREST.

3-14     (a)  Except as provided by Subsection (b), an emergency [Emergency]

3-15     services commissioner is entitled to receive compensation of not

3-16     more than $50 per day for each day the commissioner actually spends

3-17     performing the duties of a commissioner.  Compensation may not

3-18     exceed $3,000 per year.  Commissioners [commissioners serve without

3-19     compensation but] may be reimbursed for reasonable and necessary

3-20     expenses incurred in performing official duties.

3-21           (b)  Instead of compensation under Subsection (a), a

3-22     commissioner may elect to receive per diem compensation of $50 for

3-23     each day the commissioner actually spends performing the duties of

3-24     a commissioner.  A commissioner who receives per diem compensation

3-25     may not be reimbursed for reasonable and necessary expenses.  Per

 4-1     diem payments may not exceed $3,000 per year [Except as a resident

 4-2     or property owner in the district, an emergency services

 4-3     commissioner may not have an interest in a contract or transaction

 4-4     to which the district is a party and under which the commissioner

 4-5     may receive money or other things of value as consideration].

 4-6           (c)  To receive compensation, per diem compensation, or

 4-7     reimbursement for expenses, a commissioner must file with the

 4-8     district a verified statement showing the number of days actually

 4-9     spent performing the duties of a commissioner and a general

4-10     description of the duties performed for each day of service.

4-11           (d)  Commissioners are subject to Chapter 171, Local

4-12     Government Code.

4-13           SECTION 4.  Subchapter C, Chapter 775, Health and Safety

4-14     Code, is amended by adding Section 775.040 to read as follows:

4-15           Sec. 775.040.  FEES FOR PROVIDING SERVICES.  A district may

4-16     charge a reasonable fee for emergency services performed for or on

4-17     behalf of a person or entity.

4-18           SECTION 5.  Subsection (b), Section 775.082, Health and

4-19     Safety Code, is amended to read as follows:

4-20           (b)  A district located wholly in one county shall prepare

4-21     and file with the commissioners court of the county on or before

4-22     June 1 of each [the 120th day after the last day of the district's

4-23     fiscal] year an audit report of the district's fiscal accounts and

4-24     records.  The audit shall be performed and the report shall be

4-25     prepared at the expense of the district.  The county auditor, with

 5-1     the approval of the commissioners court, shall adopt rules relating

 5-2     to the format of the audit and report.

 5-3           SECTION 6.  Subchapter E, Chapter 775, Health and Safety

 5-4     Code, is amended by adding Section 775.083 to read as follows:

 5-5           Sec. 775.083.  ANNUAL REPORT.  (a)  On or before January 1 of

 5-6     each year, a district shall file with the secretary of state an

 5-7     annual report that includes the following:

 5-8                 (1)  the district's name;

 5-9                 (2)  the name of each county in which the district is

5-10     located;

5-11                 (3)  the district's business address;

5-12                 (4)  the name, mailing address, and term of office of

5-13     each commissioner;

5-14                 (5)  the name, mailing address, and term of office of

5-15     the district's general manager, executive director, and fire chief;

5-16                 (6)  the name of each legal counsel or other consultant

5-17     for the district; and

5-18                 (7)  the district's annual budget and tax rate for the

5-19     preceding fiscal year.

5-20           (b)  The secretary of state may not charge a fee for filing

5-21     the report.

5-22           SECTION 7.  Subchapter E, Chapter 775, Health and Safety

5-23     Code, is amended by adding Section 775.084 to read as follows:

5-24           Sec. 775.084.  COMPETITIVE BIDS.  (a)  Except as provided by

5-25     Subsection (i), the board must submit to competitive bids an

 6-1     expenditure of more than $25,000 for:

 6-2                 (1)  one item or service; or

 6-3                 (2)  more than one of the same or a similar type of

 6-4     item or service in a fiscal year.

 6-5           (b)  The board shall request bids on items to be purchased or

 6-6     leased or services to be performed as provided by this subsection.

 6-7     The board shall notify suppliers, vendors, or providers by

 6-8     advertising for bids or by providing at least three suppliers,

 6-9     vendors, or purchasers with written notice by mail of the intended

6-10     purchase.  If the board decides to advertise for bids, the

6-11     advertisement must be published in accordance with Section

6-12     262.025(a), Local Government Code.  If the board receives fewer

6-13     than three bids in response to the advertisement, the board shall

6-14     give written notice directly to at least three suppliers, vendors,

6-15     or providers of the intended purchase.  If three suppliers,

6-16     vendors, or providers are not available or known to the board, the

6-17     board shall give written notice by mail directly to each supplier,

6-18     vendor, or provider known to the board.

6-19           (c)  The advertisement or notice for competitive bidding

6-20     must:

6-21                 (1)  describe the work to be performed or the item to

6-22     be purchased or leased;

6-23                 (2)  state the location at which the bidding documents,

6-24     plans, specifications, or other data may be examined; and

6-25                 (3)  state the time and place for submitting bids and

 7-1     the time and place that bids will be opened.

 7-2           (d)  The board may not prepare restrictive bid

 7-3     specifications.

 7-4           (e)  Bids may be opened only by the board at a public meeting

 7-5     or by a district officer or employee at or in a district office.

 7-6           (f)  The board may reject any bid.  The board may not award a

 7-7     contract to a bidder who is not the lowest bidder unless, before

 7-8     the bid is awarded, the lowest bidder is given notice of the

 7-9     proposed award and an opportunity to appear before the board or its

7-10     designated representative and present evidence concerning the

7-11     bidder's responsibility.

7-12           (g)  A contract awarded in violation of this section is void.

7-13           (h)  This section applies to an expenditure of district tax

7-14     revenues by any party or entity for the purchase of services,

7-15     vehicles, equipment, or goods.

7-16           (i)  This section does not apply to:

7-17                 (1)  the purchase or lease of real property;

7-18                 (2)  an item or service that the board determines can

7-19     be obtained from only one source;

7-20                 (3)  a contract for fire extinguishment and suppression

7-21     services, emergency rescue services, or ambulance services; or

7-22                 (4)  an emergency expenditure.

7-23           (j)  Subsection (i) does not prohibit the board from

7-24     soliciting competitive bids for any item, service, or contract

7-25     listed in Subsection (i).

 8-1           (k)  A contract for a public works project must be

 8-2     administered in accordance with Subchapter B, Chapter 271, Local

 8-3     Government Code, except as provided by this section.

 8-4           SECTION 8.  This Act takes effect September 1, 1997.

 8-5           SECTION 9.  The importance of this legislation and the

 8-6     crowded condition of the calendars in both houses create an

 8-7     emergency and an imperative public necessity that the

 8-8     constitutional rule requiring bills to be read on three several

 8-9     days in each house be suspended, and this rule is hereby suspended.