AN ACT

 1-1     relating to powers and duties of emergency services and rural fire

 1-2     prevention districts.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 775.022, Health and Safety Code, is

 1-5     amended by amending Subsection (c) and adding Subsection (d) to

 1-6     read as follows:

 1-7           (c)  If a municipality annexes a portion of a district, the

 1-8     municipality shall compensate the district in an amount equal to

 1-9     the annexed territory's pro rata share of the district's

1-10     indebtedness at the time the territory is annexed.  The district

1-11     shall apply compensation received from a municipality [Territory

1-12     disannexed under this section is not released from the payment of

1-13     its pro rata share of the district's indebtedness.  The district

1-14     shall continue to levy taxes each year on the disannexed territory

1-15     at the same rate levied on territory in the district until the

1-16     amount of taxes collected from the disannexed territory equals its

1-17     pro rata share of the indebtedness of the district at the time the

1-18     territory was disannexed.  The taxes collected] under this

1-19     subsection [shall be applied] exclusively to the payment of the

1-20     annexed [disannexed] territory's pro rata share of the district's

1-21     indebtedness.  [The owner of all or part of the disannexed

1-22     territory may pay in full, at any time, the owner's share of the

1-23     pro rata share of the district's indebtedness for which taxes are

 2-1     to be collected.]

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

 2-3     from the district at fair market value any real or personal

 2-4     property used to provide emergency services in territory disannexed

 2-5     under this section.

 2-6           SECTION 2.  Subsection (a), Section 775.031, Health and

 2-7     Safety Code, is amended to read as follows:

 2-8           (a)  A district is a political subdivision of the state.  To

 2-9     perform the functions of the district and to provide emergency

2-10     services, a district may:

2-11                 (1)  acquire, purchase, hold, lease, manage, occupy,

2-12     and sell real and personal property or an interest in property;

2-13                 (2)  enter into and perform necessary contracts;

2-14                 (3)  appoint and employ necessary officers, agents, and

2-15     employees;

2-16                 (4)  sue and be sued;

2-17                 (5)  impose and collect taxes as prescribed by this

2-18     chapter;

2-19                 (6)  accept and receive donations;

2-20                 (7)  lease, own, maintain, operate, and provide

2-21     emergency services vehicles and other necessary or proper

2-22     apparatus, instrumentalities, equipment, and machinery to provide

2-23     emergency services;

2-24                 (8)  construct, lease, own, and maintain real property,

2-25     improvements, and fixtures necessary to house, repair, and maintain

 3-1     emergency services vehicles and equipment;

 3-2                 (9)  contract with other entities, including other

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

 3-4     and emergency services available to the district;

 3-5                 (10)  contract with other entities, including other

 3-6     districts or municipalities, for reciprocal operation of services

 3-7     and facilities if the contracting parties find that reciprocal

 3-8     operation would be mutually beneficial and not detrimental to the

 3-9     district; and

3-10                 (11)  perform other acts necessary to carry out the

3-11     intent of this chapter.

3-12           SECTION 3.  Section 775.038, Health and Safety Code, is

3-13     amended to read as follows:

3-14           Sec. 775.038.  COMPENSATION; CONFLICT OF INTEREST.

3-15     (a)  Except as provided by Subsection (b), an emergency [Emergency]

3-16     services commissioner is entitled to receive compensation of not

3-17     more than $50 per day for each day the commissioner actually spends

3-18     performing the duties of a commissioner.  Compensation may not

3-19     exceed $3,000 per year.  Commissioners [commissioners serve without

3-20     compensation but] may be reimbursed for reasonable and necessary

3-21     expenses incurred in performing official duties.

3-22           (b)  Instead of compensation under Subsection (a), a

3-23     commissioner may elect to receive per diem compensation of $50 for

3-24     each day the commissioner actually spends performing the duties of

3-25     a commissioner.  A commissioner who receives per diem compensation

 4-1     may not be reimbursed for reasonable and necessary expenses.  Per

 4-2     diem payments may not exceed $3,000 per year [Except as a resident

 4-3     or property owner in the district, an emergency services

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

 4-5     to which the district is a party and under which the commissioner

 4-6     may receive money or other things of value as consideration].

 4-7           (c)  To receive compensation, per diem compensation, or

 4-8     reimbursement for expenses, a commissioner must file with the

 4-9     district a verified statement showing the number of days actually

4-10     spent performing the duties of a commissioner and a general

4-11     description of the duties performed for each day of service.

4-12           (d)  Commissioners are subject to Chapter 171, Local

4-13     Government Code.

4-14           SECTION 4.  Subchapter C, Chapter 775, Health and Safety

4-15     Code, is amended by adding Section 775.040 to read as follows:

4-16           Sec. 775.040.  FEES FOR PROVIDING SERVICES.  A district may

4-17     charge a reasonable fee for emergency services performed for or on

4-18     behalf of a person or entity.

4-19           SECTION 5.  Subsection (b), Section 775.082, Health and

4-20     Safety Code, is amended to read as follows:

4-21           (b)  A district located wholly in one county shall prepare

4-22     and file with the commissioners court of the county on or before

4-23     June 1 of each [the 120th day after the last day of the district's

4-24     fiscal] year an audit report of the district's fiscal accounts and

4-25     records.  The audit shall be performed and the report shall be

 5-1     prepared at the expense of the district.  The county auditor, with

 5-2     the approval of the commissioners court, shall adopt rules relating

 5-3     to the format of the audit and report.

 5-4           SECTION 6.  Subchapter E, Chapter 775, Health and Safety

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

 5-6           Sec. 775.083.  ANNUAL REPORT.  (a)  On or before January 1 of

 5-7     each year, a district shall file with the secretary of state an

 5-8     annual report that includes the following:

 5-9                 (1)  the district's name;

5-10                 (2)  the name of each county in which the district is

5-11     located;

5-12                 (3)  the district's business address;

5-13                 (4)  the name, mailing address, and term of office of

5-14     each commissioner;

5-15                 (5)  the name, mailing address, and term of office of

5-16     the district's general manager, executive director, and fire chief;

5-17                 (6)  the name of each legal counsel or other consultant

5-18     for the district; and

5-19                 (7)  the district's annual budget and tax rate for the

5-20     preceding fiscal year.

5-21           (b)  The secretary of state may not charge a fee for filing

5-22     the report.

5-23           SECTION 7.  Subchapter E, Chapter 775, Health and Safety

5-24     Code, is amended by adding Section 775.084 to read as follows:

5-25           Sec. 775.084.  COMPETITIVE BIDS.  (a)  Except as provided by

 6-1     Subsection (i), the board must submit to competitive bids an

 6-2     expenditure of more than $25,000 for:

 6-3                 (1)  one item or service; or

 6-4                 (2)  more than one of the same or a similar type of

 6-5     item or service in a fiscal year.

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

 6-7     leased or services to be performed as provided by this subsection.

 6-8     The board shall notify suppliers, vendors, or providers by

 6-9     advertising for bids or by providing at least three suppliers,

6-10     vendors, or purchasers with written notice by mail of the intended

6-11     purchase.  If the board decides to advertise for bids, the

6-12     advertisement must be published in accordance with Section

6-13     262.025(a), Local Government Code.  If the board receives fewer

6-14     than three bids in response to the advertisement, the board shall

6-15     give written notice directly to at least three suppliers, vendors,

6-16     or providers of the intended purchase.  If three suppliers,

6-17     vendors, or providers are not available or known to the board, the

6-18     board shall give written notice by mail directly to each supplier,

6-19     vendor, or provider known to the board.

6-20           (c)  The advertisement or notice for competitive bidding

6-21     must:

6-22                 (1)  describe the work to be performed or the item to

6-23     be purchased or leased;

6-24                 (2)  state the location at which the bidding documents,

6-25     plans, specifications, or other data may be examined; and

 7-1                 (3)  state the time and place for submitting bids and

 7-2     the time and place that bids will be opened.

 7-3           (d)  The board may not prepare restrictive bid

 7-4     specifications.

 7-5           (e)  Bids may be opened only by the board at a public meeting

 7-6     or by a district officer or employee at or in a district office.

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

 7-8     contract to a bidder who is not the lowest bidder unless, before

 7-9     the bid is awarded, the lowest bidder is given notice of the

7-10     proposed award and an opportunity to appear before the board or its

7-11     designated representative and present evidence concerning the

7-12     bidder's responsibility.

7-13           (g)  A contract awarded in violation of this section is void.

7-14           (h)  This section applies to an expenditure of district tax

7-15     revenues by any party or entity for the purchase of services,

7-16     vehicles, equipment, or goods.

7-17           (i)  This section does not apply to:

7-18                 (1)  the purchase or lease of real property;

7-19                 (2)  an item or service that the board determines can

7-20     be obtained from only one source;

7-21                 (3)  a contract for fire extinguishment and suppression

7-22     services, emergency rescue services, or ambulance services; or

7-23                 (4)  an emergency expenditure.

7-24           (j)  Subsection (i) does not prohibit the board from

7-25     soliciting competitive bids for any item, service, or contract

 8-1     listed in Subsection (i).

 8-2           (k)  A contract for a public works project must be

 8-3     administered in accordance with Subchapter B, Chapter 271, Local

 8-4     Government Code, except as provided by this section.

 8-5           SECTION 8.  Subsection (b), Section 794.082, Health and

 8-6     Safety Code, is amended to read as follows:

 8-7           (b)  A district located wholly in one county shall prepare

 8-8     and file with the commissioners court of the county on or before

 8-9     June 1 of each year [the 120th day after the last day of the

8-10     district's fiscal  year] an audit report of the district's fiscal

8-11     accounts and records.  The audit shall be performed and prepared at

8-12     the expense of the district.  The county auditor, with the approval

8-13     of the commissioners court, shall adopt rules relating to the

8-14     format of the audit and report.

8-15           SECTION 9.  This Act takes effect September 1, 1997.

8-16           SECTION 10.  The importance of this legislation and the

8-17     crowded condition of the calendars in both houses create an

8-18     emergency and an imperative public necessity that the

8-19     constitutional rule requiring bills to be read on three several

8-20     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1277 passed the Senate on

         April 23, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendment on May 15, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1277 passed the House, with

         amendment, on May 13, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor