1-1     By:  Lucio                                            S.B. No. 1277

 1-2           (In the Senate - Filed March 12, 1997; March 17, 1997, read

 1-3     first time and referred to Committee on Intergovernmental

 1-4     Relations; April 4, 1997, reported favorably, as amended;

 1-5     April 14, 1997, recommitted to Committee on Intergovernmental

 1-6     Relations; April 18, 1997, reported adversely, with favorable

 1-7     Committee Substitute by the following vote:  Yeas 9, Nays 0;

 1-8     April 18, 1997, sent to printer.)

 1-9     COMMITTEE SUBSTITUTE FOR S.B. No. 1277                By:  Gallegos

1-10                            A BILL TO BE ENTITLED

1-11                                   AN ACT

1-12     relating to powers and duties of emergency services districts.

1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-14           SECTION 1.  Section 775.022, Health and Safety Code, is

1-15     amended by amending Subsection (c) and adding Subsection (d) to

1-16     read as follows:

1-17           (c)  If a municipality annexes a portion of a district, the

1-18     municipality shall compensate the district in an amount equal to

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

1-20     indebtedness at the time the territory is annexed.  The district

1-21     shall apply compensation received from a municipality [Territory

1-22     disannexed under this section is not released from the payment of

1-23     its pro rata share of the district's indebtedness.  The district

1-24     shall continue to levy taxes each year on the disannexed territory

1-25     at the same rate levied on territory in the district until the

1-26     amount of taxes collected from the disannexed territory equals its

1-27     pro rata share of the indebtedness of the district at the time the

1-28     territory was disannexed.  The taxes collected] under this

1-29     subsection [shall be applied] exclusively to the payment of the

1-30     annexed [disannexed] territory's pro rata share of the district's

1-31     indebtedness.  [The owner of all or part of the disannexed

1-32     territory may pay in full, at any time, the owner's share of the

1-33     pro rata share of the district's indebtedness for which taxes are

1-34     to be collected.]

1-35           (d)  On the district's request, a municipality shall purchase

1-36     from the district at fair market value any real or personal

1-37     property used to provide emergency services in territory disannexed

1-38     under this section.

1-39           SECTION 2.  Subsection (a), Section 775.031, Health and

1-40     Safety Code, is amended to read as follows:

1-41           (a)  A district is a political subdivision of the state.  To

1-42     perform the functions of the district and to provide emergency

1-43     services, a district may:

1-44                 (1)  acquire, purchase, hold, lease, manage, occupy,

1-45     and sell real and personal property or an interest in property;

1-46                 (2)  enter into and perform necessary contracts;

1-47                 (3)  appoint and employ necessary officers, agents, and

1-48     employees;

1-49                 (4)  sue and be sued;

1-50                 (5)  impose and collect taxes as prescribed by this

1-51     chapter;

1-52                 (6)  accept and receive donations;

1-53                 (7)  lease, own, maintain, operate, and provide

1-54     emergency services vehicles and other necessary or proper

1-55     apparatus, instrumentalities, equipment, and machinery to provide

1-56     emergency services;

1-57                 (8)  construct, lease, own, and maintain real property,

1-58     improvements, and fixtures necessary to house, repair, and maintain

1-59     emergency services vehicles and equipment;

1-60                 (9)  contract with other entities, including other

1-61     districts or municipalities, to make emergency services facilities

1-62     and emergency services available to the district;

1-63                 (10)  contract with other entities, including other

1-64     districts or municipalities, for reciprocal operation of services

 2-1     and facilities if the contracting parties find that reciprocal

 2-2     operation would be mutually beneficial and not detrimental to the

 2-3     district; and

 2-4                 (11)  perform other acts necessary to carry out the

 2-5     intent of this chapter.

 2-6           SECTION 3.  Section 775.038, Health and Safety Code, is

 2-7     amended to read as follows:

 2-8           Sec. 775.038.  COMPENSATION; CONFLICT OF INTEREST.

 2-9     (a)  Except as provided by Subsection (b), an emergency [Emergency]

2-10     services commissioner is entitled to receive compensation of not

2-11     more than $50 per day for each day the commissioner actually spends

2-12     performing the duties of a commissioner.  Compensation may not

2-13     exceed $3,000 per year.  Commissioners [commissioners serve without

2-14     compensation but] may be reimbursed for reasonable and necessary

2-15     expenses incurred in performing official duties.

2-16           (b)  Instead of compensation under Subsection (a), a

2-17     commissioner may elect to receive per diem compensation of $50 for

2-18     each day the commissioner actually spends performing the duties of

2-19     a commissioner.  A commissioner who receives per diem compensation

2-20     may not be reimbursed for reasonable and necessary expenses.  Per

2-21     diem payments may not exceed $3,000 per year [Except as a resident

2-22     or property owner in the district, an emergency services

2-23     commissioner may not have an interest in a contract or transaction

2-24     to which the district is a party and under which the commissioner

2-25     may receive money or other things of value as consideration].

2-26           (c)  To receive compensation, per diem compensation, or

2-27     reimbursement for expenses, a commissioner must file with the

2-28     district a verified statement showing the number of days actually

2-29     spent performing the duties of a commissioner and a general

2-30     description of the duties performed for each day of service.

2-31           (d)  Commissioners are subject to Chapter 171, Local

2-32     Government Code.

2-33           SECTION 4.  Subchapter C, Chapter 775, Health and Safety

2-34     Code, is amended by adding Section 775.039 to read as follows:

2-35           Sec. 775.039.  EMINENT DOMAIN.  (a)  A district has eminent

2-36     domain authority to acquire land, easements, or other property

2-37     inside the district boundaries necessary to carry out the purposes

2-38     of the district.  The district may elect to condemn a fee simple

2-39     title or a lesser property interest.

2-40           (b)  The exercise of the power of eminent domain by the

2-41     district is governed by Chapter 21, Property Code, except that a

2-42     district may not be required to:

2-43                 (1)  post bond for appeal or for costs in any

2-44     condemnation suit or other suit to which it is a party; or

2-45                 (2)  deposit more than the amount of any award.

2-46           SECTION 5.  Subchapter C, Chapter 775, Health and Safety

2-47     Code, is amended by adding Section 775.040 to read as follows:

2-48           Sec. 775.040.  FEES FOR PROVIDING SERVICES.  A district may

2-49     charge a reasonable fee for emergency services performed for or on

2-50     behalf of a person or entity.

2-51           SECTION 6.  Subsection (b), Section 775.082, Health and

2-52     Safety Code, is amended to read as follows:

2-53           (b)  A district located wholly in one county shall prepare

2-54     and file with the commissioners court of the county on or before

2-55     June 1 of each [the 120th day after the last day of the district's

2-56     fiscal] year an audit report of the district's fiscal accounts and

2-57     records.  The audit shall be performed and the report shall be

2-58     prepared at the expense of the district.  The county auditor, with

2-59     the approval of the commissioners court, shall adopt rules relating

2-60     to the format of the audit and report.

2-61           SECTION 7.  Subchapter E, Chapter 775, Health and Safety

2-62     Code, is amended by adding Section 775.083 to read as follows:

2-63           Sec. 775.083.  ANNUAL REPORT.  (a)  On or before January 1 of

2-64     each year, a district shall file with the secretary of state an

2-65     annual report that includes the following:

2-66                 (1)  the district's name;

2-67                 (2)  the name of each county in which the district is

2-68     located;

2-69                 (3)  the district's business address;

 3-1                 (4)  the name, mailing address, and term of office of

 3-2     each commissioner;

 3-3                 (5)  the name, mailing address, and term of office of

 3-4     the district's general manager, executive director, and fire chief;

 3-5                 (6)  the name of each legal counsel or other consultant

 3-6     for the district; and

 3-7                 (7)  the district's annual budget and tax rate for the

 3-8     preceding fiscal year.

 3-9           (b)  The secretary of state may not charge a fee for filing

3-10     the report.

3-11           SECTION 8.  Subchapter E, Chapter 775, Health and Safety

3-12     Code, is amended by adding Section 775.084 to read as follows:

3-13           Sec. 775.084.  COMPETITIVE BIDS.  (a)  Except as provided by

3-14     Subsection (i), the board must submit to competitive bids an

3-15     expenditure of more than $25,000 for:

3-16                 (1)  one item or service; or

3-17                 (2)  more than one of the same or a similar type of

3-18     item or service in a fiscal year.

3-19           (b)  The board shall request bids on items to be purchased or

3-20     leased or services to be performed as provided by this subsection.

3-21     The board shall notify suppliers, vendors, or providers by

3-22     advertising for bids or by providing at least three suppliers,

3-23     vendors, or purchasers with written notice by mail of the intended

3-24     purchase.  If the board decides to advertise for bids, the

3-25     advertisement must be published in accordance with Section

3-26     262.025(a), Local Government Code.  If the board receives fewer

3-27     than three bids in response to the advertisement, the board shall

3-28     give written notice directly to at least three suppliers, vendors,

3-29     or providers of the intended purchase.  If three suppliers,

3-30     vendors, or providers are not available or known to the board, the

3-31     board shall give written notice by mail directly to each supplier,

3-32     vendor, or provider known to the board.

3-33           (c)  The advertisement or notice for competitive bidding

3-34     must:

3-35                 (1)  describe the work to be performed or the item to

3-36     be purchased or leased;

3-37                 (2)  state the location at which the bidding documents,

3-38     plans, specifications, or other data may be examined; and

3-39                 (3)  state the time and place for submitting bids and

3-40     the time and place that bids will be opened.

3-41           (d)  The board may not prepare restrictive bid

3-42     specifications.

3-43           (e)  Bids may be opened only by the board at a public meeting

3-44     or by a district officer or employee at or in a district office.

3-45           (f)  The board may reject any bid.  The board may not award a

3-46     contract to a bidder who is not the lowest bidder unless, before

3-47     the bid is awarded, the lowest bidder is given notice of the

3-48     proposed award and an opportunity to appear before the board or its

3-49     designated representative and present evidence concerning the

3-50     bidder's responsibility.

3-51           (g)  A contract awarded in violation of this section is void.

3-52           (h)  This section applies to an expenditure of district tax

3-53     revenues by any party or entity for the purchase of services,

3-54     vehicles, equipment, or goods.

3-55           (i)  This section does not apply to:

3-56                 (1)  the purchase or lease of real property;

3-57                 (2)  an item or service that the board determines can

3-58     be obtained from only one source;

3-59                 (3)  a contract for fire extinguishment and suppression

3-60     services, emergency rescue services, or ambulance services; or

3-61                 (4)  an emergency expenditure.

3-62           (j)  Subsection (i) does not prohibit the board from

3-63     soliciting competitive bids for any item, service, or contract

3-64     listed in Subsection (i).

3-65           (k)  A contract for a public works project must be

3-66     administered in accordance with Subchapter B, Chapter 271, Local

3-67     Government Code, except as provided by this section.

3-68           SECTION 9.  This Act takes effect September 1, 1997.

3-69           SECTION 10.  The importance of this legislation and the

 4-1     crowded condition of the calendars in both houses create an

 4-2     emergency and an imperative public necessity that the

 4-3     constitutional rule requiring bills to be read on three several

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

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