By:  Barrientos                                       S.B. No. 1675

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the creation, administration, and financing of a

 1-2     regional communications district.

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

 1-4           SECTION 1.  Subtitle B, Title 9, Health and Safety Code is

 1-5     amended by adding Chapter 777 to read as follows:

 1-6     CHAPTER 777.  LOCAL ADMINISTRATION OF REGIONAL COMMUNICATIONS SYSTEMS

 1-7     777.001.  Definitions

 1-8           In this chapter:

 1-9           (1)  "9-1-1 service" means a telecommunications service

1-10     through which the user of a public telephone system has the ability

1-11     to reach a public safety answering point by dialing the digits

1-12     9-1-1.

1-13           (2)  "9-1-1 system" means a system of processing emergency

1-14     9-1-1 calls.

1-15           (3)  "Participating jurisdiction" means a public agency or

1-16     private safety entity that by vote consents to participate in a

1-17     regional communication district.

1-18           (4)  "Private safety entity" means a private entity that

1-19     provides emergency fire-fighting, ambulance, or medical services.

1-20           (5)  "Public agency" means a municipality or county in this

1-21     state, a state agency of this state, a special district, or other

 2-1     political subdivision of this state;

 2-2           (6)  "Public safety agency" means the division of a public

 2-3     agency that provides fire-fighting, law enforcement, medical, or

 2-4     other emergency services, or a private entity that provides

 2-5     emergency fire-fighting, medical or ambulance services.

 2-6           (7)  "Computer aided dispatch" means a computerized system

 2-7     for managing resources which assists public agencies or private

 2-8     safety entities in determining and managing the response to

 2-9     requests for service.

2-10           (8)  "Mobile Data communications" means a wireless system by

2-11     which information other than voice may be transmitted to or from

2-12     vehicles or personnel.

2-13           (9)  "Voice radio communications" means a wireless system by

2-14     which voice information may be transmitted to or from vehicles or

2-15     personnel.

2-16           (10)  "Geographic Information System" means a system

2-17     necessary to map service boundaries, reflect annexations and other

2-18     feature changes, maintain master street address information,

2-19     validate and resolve database discrepancies, to project new

2-20     addresses and block ranges as an initial assignment or correction,

2-21     for ongoing issuance of new addresses, and for locator maps for

2-22     public agencies or private safety entities.

2-23           (11)  "Addressing" means the assignment of a unique numerical

2-24     identifier on a specific roadway, whether public or private, to a

2-25     lot or structure or the assignment of block ranges to roadways for

 3-1     the purpose of provision an easy and logical means of providing

 3-2     services to those locations.

 3-3           (12)  "Intelligent Transportation System" means a system

 3-4     whose purpose is to monitor traffic conditions, provide for the

 3-5     efficient and effective management of public and private

 3-6     transportation, and to assist in providing an effective response to

 3-7     traffic or transportation incidents.

 3-8           (13)  "Communications system" means an integrated system

 3-9     which may include, but is not limited to, a 9-1-1 system, Computer

3-10     Aided Dispatch, Voice Radio Communications, Mobile Data

3-11     Communications, Geographic Information System, and Intelligent

3-12     Transportation System whose purpose is to relay necessary

3-13     information to units or personnel responding to a citizen's request

3-14     for service.

3-15           (14)  "Data processing services" means the provision of

3-16     computer hardware and software necessary for the operation of a

3-17     communications system or any other system maintained and operated

3-18     by a district and includes the analysis of any data stored or

3-19     generated by those systems and the compilation of reports as a

3-20     result of any such analysis.

3-21             (Section 777.002 - 777.100 reserved for expansion)

3-22     777.101.  Short Title

3-23           This chapter may be cited as the Regional Communications

3-24     District Act.

3-25     777.102.  Purpose

 4-1           It is the purpose of this chapter to encourage units of local

 4-2     government and other public agencies to develop and improve

 4-3     emergency communication procedures and facilities in a manner that

 4-4     makes possible the quick and coordinated response to citizens

 4-5     seeking services.  To this purpose the legislature finds that:

 4-6           (1)  it is in the public interest to provide a communications

 4-7     system that allows for the coordination of public agency

 4-8     operations;

 4-9           (2)  it is in the public interest for public agencies to

4-10     share and combine resources to develop and implement regional

4-11     solutions for common issues;

4-12           (3)  there exist thousands of separate communications systems

4-13     in the state that inhibit the ability of public agencies to

4-14     communicate with one another;

4-15           (4)  a dominant part of the state's population is located in

4-16     rapidly expanding metropolitan areas that generally cross the

4-17     boundary lines of local jurisdictions and often extend into two or

4-18     more counties;

4-19           (5)  response to citizens calls for service often involve a

4-20     response by units or personnel from multiple agencies, frequently

4-21     from multiple jurisdictions; and

4-22           (6)  the ability of public agencies to effectively and

4-23     efficiently respond to a citizen's request for service relies, in

4-24     large part, upon the ability of those public agencies to

4-25     communicate with one another

 5-1     777.103.  Definitions

 5-2           In this chapter:

 5-3           (1)  "Board" means the board of managers of a district.

 5-4           (2)  "District" means a regional communication district

 5-5     created under this chapter.

 5-6           (3)  "Principal municipality" means the municipality with the

 5-7     largest population in a regional communications district created

 5-8     under this chapter

 5-9           (4)  "Director" means the director of communications for

5-10     district

5-11     777.104.  Application of Chapter

5-12           (a)  This chapter applies to a county and the adjacent

5-13     territory described by Section 777.106 which has not created an

5-14     emergency communications district under Subchapter B, C or D,

5-15     Chapter 772, Health and Safety Code.

5-16           (b)  This chapter does not affect the authority of a public

5-17     agency to operate under another law authorizing the creation of a

5-18     district in which 9-1-1 service or communications services are

5-19     provided.

5-20     777.105.  Creation of District

5-21           (a)  A regional communications district may be created under

5-22     this chapter by joint resolution of the county in which the

5-23     district is to be located and the principal municipality of the

5-24     county in which the district is to be located.

5-25           (b)  If more than one county will be involved in the creation

 6-1     of the district, then a regional communications district may be

 6-2     created under this chapter by joint resolution of the counties in

 6-3     which the district is to be created and the principal municipality

 6-4     which will be within the district to be created.

 6-5     777.106.  Territory of District

 6-6           (a)  The territory of a district consists of:

 6-7                 (1)  the territory of the county for which the district

 6-8     is established; and

 6-9                 (2)  for each municipality partially located in the

6-10     county for which the district is established, the territory of that

6-11     municipality located in another county.

6-12                 (3)  If a municipality that is part of a district

6-13     annexes territory that is not part of the district, the annexed

6-14     territory becomes part of the district.

6-15           (b)  A public agency located in the county for which the

6-16     district is created or a public agency located in whole or part in

6-17     a county adjoining the county for which the district is created, by

6-18     resolution adopted by its governing body and approved by the board

6-19     of the district, may become part of the district and subject to its

6-20     benefits and requirements.

6-21           (c)  A private safety entity located in the county for which

6-22     the district is created, or a private safety agency located in

6-23     whole or part in a county adjoining the count for which the

6-24     district is created, and which provides services in a county within

6-25     the territory of the district, by resolution adopted by its

 7-1     governing body and approved by the board of the district, may

 7-2     become part of the district and subject to its benefits and

 7-3     requirements.

 7-4           777.107.  Board of Managers

 7-5           (a)  A district is governed by a board of managers.

 7-6           (b)  If a district is created under this chapter and contains

 7-7     only one county and the principal municipality has a population

 7-8     over 140,000, the board of managers shall consist of:

 7-9                 (1)  two members appointed by the commissioners court

7-10     of the county in which the district is created;

7-11                 (2)  one member appointed by the commissioners court of

7-12     each other county in the district which becomes a participating

7-13     jurisdiction after the district was originally formed;

7-14                 (3)  two members appointed by the governing body of the

7-15     principal municipality;

7-16                 (4)  one member appointed by the governing body of the

7-17     second most populous municipality in the district which is a

7-18     participating jurisdiction;

7-19                 (5)  one member appointed jointly by all of the

7-20     municipalities other than the principal municipality and the second

7-21     most populous municipality that are participating jurisdictions;

7-22                 (6)  one member appointed jointly by the volunteer fire

7-23     departments and emergency services districts which are

7-24     participating jurisdictions, with the selection process coordinated

7-25     by the county fire marshal;

 8-1                 (7)  one member appointed by the governing body of a

 8-2     transit authority which is a participating jurisdiction;

 8-3                 (8)  one member from a public agency not otherwise

 8-4     represented on the board, if they are a participating jurisdiction

 8-5     for purposes of providing all, or a portion of, an intelligent

 8-6     transportation system;

 8-7                 (9)  one member from a school district which is a

 8-8     participating jurisdiction;

 8-9                       (a)  if more than one school district is a

8-10     participating jurisdiction, then one member from the largest school

8-11     district and one member appointed jointly by the school districts

8-12     other than the largest school district;

8-13                 (10)  one or two member appointed by each participating

8-14     jurisdiction or by each group of participating jurisdictions as

8-15     provided under Subsection (n) of this section.

8-16           (c)  If a district is created under this chapter and contains

8-17     only one county and the principal municipality does not have a

8-18     population over 140,000, the board of managers shall consist of:

8-19                 (1)  two members appointed by the commissioners court

8-20     of the county in which the district is created;

8-21                 (2)  one member appointed by the commissioners court of

8-22     each other county in the district which becomes a participating

8-23     jurisdiction after the district was originally formed;

8-24                 (3)  two members appointed jointly by all of the

8-25     municipalities in the district that are participating

 9-1     jurisdictions;

 9-2                 (4)  one member appointed jointly by the volunteer fire

 9-3     departments and emergency services districts which are

 9-4     participating jurisdictions, with the selection process coordinated

 9-5     by the county fire marshal;

 9-6                 (5)  one member appointed by the governing body of a

 9-7     transit authority which is a participating jurisdiction;

 9-8                 (6)  one member from a public agency not otherwise

 9-9     represented on the board, if they are a participating jurisdiction

9-10     for purposes of providing all, or a portion of, an intelligent

9-11     transportation system;

9-12                 (7)  one member from a school district which is a

9-13     participating jurisdiction;

9-14                       (a)  if more than one school district is a

9-15     participating jurisdiction, then one member from the largest school

9-16     district and one member appointed jointly by the school districts

9-17     other than the largest school district;

9-18                 (8)  one member appointed by each participating

9-19     jurisdiction or by each group of participating jurisdictions as

9-20     provided under Subsection (n) of this section.

9-21           (d)  If a district is created under this chapter and contains

9-22     more than one county when originally created and the principal

9-23     municipality has a population over 140,000, the board of managers

9-24     shall consist of:

9-25                 (1)  one member appointed by the commissioners court

 10-1    each county in the district which is a participating jurisdiction;

 10-2                (2)  two members appointed by the governing body of the

 10-3    principal municipality which is a participating jurisdiction;

 10-4                (3)  one member appointed by the governing body of the

 10-5    second most populous municipality in the district which is a

 10-6    participating jurisdiction;

 10-7                (4)  two members appointed jointly by all of the

 10-8    municipalities other than the principal municipality and the second

 10-9    most populous municipality that are participating jurisdictions;

10-10                (5)  two members appointed jointly by the volunteer

10-11    fire departments and emergency services districts which are

10-12    participating jurisdictions, with the selection process coordinated

10-13    by the county fire marshal;

10-14                (6)  one member appointed by the governing body of a

10-15    transit authority which is a participating jurisdiction;

10-16                (7)  one member from a public agency not otherwise

10-17    represented on the board, if they are a participating jurisdiction

10-18    for purposes of providing all, or a portion of, an intelligent

10-19    transportation system;

10-20                (8)  one member from a school district which is a

10-21    participating jurisdiction;

10-22                      (a)  if more than one school district is a

10-23    participating jurisdiction, then one member from the largest school

10-24    district and one member appointed jointly by the school districts

10-25    other than the largest school district;

 11-1                (9)  one member appointed by each participating

 11-2    jurisdiction or by each group of participating jurisdictions as

 11-3    provided under Subsection (n) of this section.

 11-4          (e)  If a district is created under this chapter and contains

 11-5    more than one county when originally created and the principal

 11-6    municipality does not have a population over 140,000, the board of

 11-7    managers shall consist of:

 11-8                (1)  one member appointed by the commissioners court of

 11-9    each county in the district which is a participating jurisdiction;

11-10                (2)  two members appointed jointly by all of the

11-11    municipalities in the district that are participating

11-12    jurisdictions;

11-13                (3)  two members appointed jointly by the volunteer

11-14    fire departments and emergency services districts which are

11-15    participating jurisdictions, with the selection process coordinated

11-16    by the county fire marshal;

11-17                (4)  one member appointed by the governing body of a

11-18    transit authority which is a participating jurisdiction;

11-19                (5)  one member from a public agency not otherwise

11-20    represented on the board, if they are a participating jurisdiction

11-21    for purposes of providing all, or a portion of, an intelligent

11-22    transportation system;

11-23                (6)  one member from a school district which is a

11-24    participating jurisdiction;

11-25                      (a)  if more than one school district is a

 12-1    participating jurisdiction, then one member from the largest school

 12-2    district and one member appointed jointly by the school districts

 12-3    other than the largest school district;

 12-4                (7)  one member appointed by each participating

 12-5    jurisdiction or by each group of participating jurisdictions as

 12-6    provided under Subsection (n) of this section.

 12-7          (f)  Board members are appointed for staggered terms of two

 12-8    years, with one-half of the members' terms expiring each year.

 12-9          (g)  A board member may be removed from office at will by the

12-10    entity that appointed the member.

12-11          (h)  A vacancy on the board shall be filled for the remainder

12-12    of the term in the manner provided for the original appointment to

12-13    that position.

12-14          (i)  Board members serve without compensation.  The district

12-15    shall pay all expenses necessarily incurred by the board in

12-16    performing its functions under this chapter.

12-17          (j)  The board may appoint from among its membership a

12-18    presiding officer and any other officers it considers necessary.

12-19          (k)  The director of the district or a board member may be

12-20    appointed as secretary of the board.  The board shall require the

12-21    secretary to keep suitable records of all proceedings of each board

12-22    meeting.  After each meeting the presiding officer or other member

12-23    presiding at the meeting shall read and sign the record and the

12-24    secretary shall attest the record.

12-25          (l)  A majority of the voting members of the board

 13-1    constitutes a quorum.

 13-2          (m)  Voting members of the board may meet in executive

 13-3    session in accordance with Chapter 551, Government Code.

 13-4          (n)  The representation and number of members of the

 13-5    governing board for each participating jurisdiction may be amended

 13-6    or altered upon approval of the board and after presentation and

 13-7    approval by:

 13-8          (1)  commissioners court of the county or counties in which

 13-9    the district is located;

13-10          (2)  the governing body of the primary municipality located

13-11    in the county in which the district was created; and

13-12          (3)  a majority of the governing bodies of each participating

13-13    public agency.

13-14          (o)  If the representation and number of members of the

13-15    governing board is amended or altered as provided by subsection

13-16    (1), then it is expressly provided that no one public agency may

13-17    have a representation on the governing board greater than

13-18    twenty-five percent of the total number of members of the board,

13-19    unless the number of participating jurisdictions is fewer then

13-20    four, in which case the members of the governing board shall be

13-21    equally distributed among the participating jurisdictions.

13-22    777.108.  Powers and Duties of Board

13-23          (a)  The board shall name, control, and manage the district.

13-24          (b)  The board may adopt rules for the operation of the

13-25    district.

 14-1          (c)  The board may contract with any public or private entity

 14-2    to carry out the purposes of this chapter.

 14-3    777.109.  Director of District

 14-4          (a)  The board shall appoint a director of communications for

 14-5    the district and shall establish the director's compensation.  The

 14-6    director must be qualified by training and experience for the

 14-7    position.

 14-8          (b)  The board may remove the director at any time.

 14-9          (c)  With the board's approval, the director may employ any

14-10    experts, employees, or consultants that the board considers

14-11    necessary to carry out the purposes of this chapter.

14-12          (d)  The director shall perform all duties that the board

14-13    requires and shall supervise as general manager the operations of

14-14    the district subject to any limitations prescribed by the board.

14-15    777.110.  Budget; Annual Report; Audit

14-16          (a)  The director shall prepare under the direction of the

14-17    board an annual budget for the district.  To be effective, the

14-18    budget must:

14-19          (1)  be approved by the board;

14-20          (2)  be presented to and approved by the commissioners court

14-21    of each county in the district which is a participating

14-22    jurisdiction;

14-23          (3)  be presented to and approved by the governing body of

14-24    the most populous municipality in the district; and

14-25          (4)  be presented to the governing body of each other

 15-1    participating jurisdiction and approved by a majority of those

 15-2    jurisdictions.

 15-3          (b)  A revision of the budget must be approved in the same

 15-4    manner as the budget.

 15-5          (c)  As soon as practicable after the end of each district

 15-6    fiscal year, the director shall prepare and present to the board

 15-7    and to each participating jurisdiction in writing a sworn statement

 15-8    of all money received by the district and how the money was used

 15-9    during the preceding fiscal year.  The report must show in detail

15-10    the operations of the district for the fiscal year covered by the

15-11    report.

15-12          (d)  The board shall have an independent financial audit of

15-13    the district performed annually.

15-14    777.111.  Powers of District

15-15          (a)  The district is a body corporate and politic, exercising

15-16    public and essential governmental functions and having all the

15-17    powers necessary or convenient to carry out the purposes and

15-18    provisions of this chapter, including the capacity to sue or be

15-19    sued.

15-20          (b)  To fund the district, the district may apply for,

15-21    accept, and receive federal, state, county, or municipal funds and

15-22    private funds and may spend those funds for the purposes of this

15-23    chapter.  The board shall determine the method and sources of

15-24    funding for the district.

15-25          (c)  The district may provide, by contract, communications

 16-1    system service, data processing services, or other services to

 16-2    participating jurisdictions upon approval of the board.

 16-3          (d)  The district may provide, by contract, communications

 16-4    services, data processing services, or other services to

 16-5    non-participating agencies or entities, upon approval of the board,

 16-6    but only if such provision of contractual services does not have an

 16-7    adverse impact upon the operations of participating jurisdictions.

 16-8    777.112.  Transfer of Assets or Real Property to a District

 16-9          (a)  Upon becoming a participating jurisdiction in a district

16-10    created under this chapter, a participating jurisdiction may

16-11    transfer any real property or other assets to the district which

16-12    are owned by the participating jurisdiction.  Any such properties

16-13    transferred shall become the property of the district upon

16-14    acceptance by the board.

16-15          (b)  The board may consider the value of any assets or real

16-16    property transferred to the district in determining any usage,

16-17    service, or maintenance fees applicable the participating

16-18    jurisdiction which transferred the assets or real property for its

16-19    use of the services, facilities, or equipment of the district.

16-20    777.113.  Participation in Regional Plan for the Provision of 9-1-1

16-21    Services

16-22          (a)  If the district provides communications system services

16-23    for public safety agencies, then the district shall participate in

16-24    a regional plan developed by the regional planning commission in

16-25    which the district is located for the provision of 9-1-1 services

 17-1    as provided in Chapter 37, Subchapter B, Section 771.

 17-2    777.114.  District Depository

 17-3          (a)  The board shall select a depository for the district in

 17-4    the manner provided by law for the selection of a county

 17-5    depository.

 17-6          (b)  A depository selected by the board is the district's

 17-7    depository for two years after the date of its selection and until

 17-8    a successor depository is selected and qualified.

 17-9    777.115.  Allowable Expenses

17-10          Allowable operating expenses of a district include all costs

17-11    attributable to designing, constructing, implementing, and

17-12    maintaining an integrated communications system which includes, but

17-13    is not limited to 9-1-1 systems, voice communications, mobile data

17-14    communications, geographic information systems, intelligent

17-15    transportation systems, and data processing service, and to all

17-16    equipment and personnel necessary to establish and operate such a

17-17    communications system and any other related systems or subsystems

17-18    that the board considers necessary.

17-19    777.116.  Public Review

17-20          (a)  Periodically, the board shall solicit public comments

17-21    and hold a public review hearing on the continuation of the

17-22    district.  The first hearing shall be held three years after the

17-23    date the order certifying the creation of the district is filed

17-24    with the county clerk.  Subsequent hearings shall be held three

17-25    years after the date each order required by Subsection (c) is

 18-1    adopted.

 18-2          (b)  The board shall publish notice of the time and place of

 18-3    the hearing once a week for two consecutive weeks in a daily

 18-4    newspaper of general circulation published in the district.  The

 18-5    first notice must be published not later than the 16th day before

 18-6    the date set for the hearing.

 18-7          (c)  After the hearing, the board shall adopt an order on the

 18-8    continuation or dissolution of the district.

 18-9    777.117.  Dissolution Procedures

18-10          (a)  If a district is dissolved, the communications system

18-11    may be continued beyond the date of the dissolution as provided in

18-12    subsection (d).

18-13          (b)  The commissioners court of the county in which principal

18-14    municipality is located and the principal municipality of the

18-15    district shall jointly assume the assets of the district and pay

18-16    the district's debts.  If the district's assets are insufficient to

18-17    retire all existing debts of the district on the date of

18-18    dissolution, the commissioners court and the principal municipality

18-19    of the district shall jointly devise a plan for retiring the

18-20    remaining debts of the district.  Any funding mechanism determined

18-21    for retiring the debts of the district may be used only to retire

18-22    the outstanding debts of the district.

18-23          (c)  The commissioners court and the principal municipality

18-24    shall retire the district's debts to the extent practicable

18-25    according to the terms of the instruments creating the debts and

 19-1    the terms of the orders and resolutions authorizing creation of the

 19-2    debts.

 19-3          (d)  The commissioners court and the principal municipality

 19-4    shall jointly assume management responsibility for the district and

 19-5    shall continue the operation of the communications system until

 19-6    such time as they are able to jointly determine another acceptable

 19-7    solution for the provision of communications system services for

 19-8    public safety agencies who were being provided such services by the

 19-9    district.

19-10          (e)  The commissioners court and the principal municipality

19-11    by joint order may adopt the rules necessary to administer this

19-12    section.

19-13    777.118.  Issuance of Bonds

19-14          The board may issue and sell bonds in the name of the

19-15    district to finance:

19-16                (1)  the acquisition by any method of facilities,

19-17    equipment, or supplies necessary for the district to begin,

19-18    maintain, or improve communications system services and data

19-19    processing services; or

19-20                (2)  the installation of equipment necessary for the

19-21    district to begin providing, continue provision, or improve

19-22    provision of communications system services and data processing

19-23    services to all participating jurisdictions.

19-24    777.119.  Repayment of Bonds

19-25          The board may provide for the payment of principal of and

 20-1    interest on the bonds by pledging all or any part of the district's

 20-2    revenues from any sources.

 20-3    777.120.  Additional Security for Bonds

 20-4          (a)  The bonds may be additionally secured by a deed of trust

 20-5    or mortgage lien on part or all of the physical properties of the

 20-6    district and rights appurtenant to those properties, vesting in the

 20-7    trustee power to sell the properties for payment of the

 20-8    indebtedness, power to operate the properties, and all other powers

 20-9    necessary for the further security of the bonds.

20-10          (b)  The trust indenture, regardless of the existence of the

20-11    deed of trust or mortgage lien on the properties, may contain

20-12    provisions prescribed by the board for the security of the bonds

20-13    and the preservation of the trust estate, may make provisions for

20-14    amendment or modification, and may make provisions for investment

20-15    of funds of the district.  (c) A purchaser under a sale under may

20-16    maintain and operate them.

20-17    777.121.  Form of Bonds

20-18          (a)  A district may issue its bonds in various series or

20-19    issues.

20-20          (b)  Bonds may mature serially or otherwise not more than 25

20-21    years after their date of issue and shall bear interest at any rate

20-22    permitted by state law.

20-23          (c)  A district's bonds and interest coupons, if any, are

20-24    investment securities under the terms of Chapter 8, Business &

20-25    Commerce Code, may be issued registrable as to principal or as to

 21-1    both principal and interest, and may be made redeemable before

 21-2    maturity, at the option of the district, or contain a mandatory

 21-3    redemption provision.

 21-4          (d)  A district may issue its bonds in the form,

 21-5    denominations, and manner and under the terms, and the bonds shall

 21-6    be signed and executed, as provided by the board in the resolution

 21-7    or order authorizing their issuance.

 21-8    777.122.  Provisions of Bonds

 21-9          (a)  In the orders or resolutions authorizing the issuance of

21-10    bonds, including refunding bonds, the board may provide for the

21-11    flow of funds and the establishment and maintenance of the interest

21-12    and sinking fund, the reserve fund, and other funds, and may make

21-13    additional covenants with respect to the bonds, the pledged

21-14    revenues, and the operation and maintenance of any facilities the

21-15    revenue of which is pledged.

21-16          (b)  The orders or resolutions of the board authorizing the

21-17    issuance of bonds may also prohibit the further issuance of bonds

21-18    or other obligations payable from the pledged revenue or may

21-19    reserve the right to issue additional bonds to be secured by a

21-20    pledge of and payable from the revenue on a parity with or

21-21    subordinate to the lien and pledge in support of the bonds being

21-22    issued.

21-23          (c)  The orders or resolutions of the board issuing bonds may

21-24    contain other provisions and covenants as the board may determine.

21-25          (d)  The board may adopt and have executed any other

 22-1    proceedings or instruments

 22-2     777.123.  Approval and Registration of Bonds

 22-3          (a)  Bonds issued by a district must be submitted to the

 22-4    attorney general for examination.

 22-5          (b)  If the attorney general finds that the bonds have been

 22-6    authorized in accordance with law, the attorney general shall

 22-7    approve them.  On approval by the attorney general, the comptroller

 22-8    shall register the bonds.

 22-9          (c)  After the approval and registration of bonds, the bonds

22-10    are incontestable in any court or other forum for any reason and

22-11    are valid and binding obligations in accordance with their terms

22-12    for all purposes.

22-13    777.124.  Refunding Bonds

22-14          (a)  A district may issue bonds to refund all or any part of

22-15    its outstanding bonds, including matured but unpaid interest

22-16    coupons.

22-17          (b)  Refunding bonds shall mature serially or otherwise not

22-18    more than 25 years after their date of issue and shall bear

22-19    interest at any rate or rates permitted by state  law.

22-20          (c)  Refunding bonds may be payable from the same source as

22-21    the bonds being refunded or from other sources.

22-22          (d)  The refunding bonds must be approved by the attorney

22-23    general in the same manner as the district's other bonds and shall

22-24    be registered by the comptroller on the surrender and cancellation

22-25    of the bonds being refunded.

 23-1          (e)  The orders or resolutions authorizing the issuance of

 23-2    the refunding bonds may provide that they be sold and the proceeds

 23-3    deposited in the place or places at which the bonds being refunded

 23-4    are payable, in which case the refunding bonds may be issued before

 23-5    the cancellation of the bonds being refunded.  If refunding bonds

 23-6    are issued before cancellation of the other bonds, an amount

 23-7    sufficient to pay the principal of the bonds being refunded and

 23-8    interest on those bonds accruing to their maturity dates or to

 23-9    their option dates if the bonds have been duly called for payment

23-10    before maturity according to their terms shall be deposited in the

23-11    place or places at which the bonds being refunded are payable.  The

23-12    comptroller shall register the refunding bonds without the

23-13    surrender and cancellation of bonds being refunded.

23-14          (f)  A refunding may be accomplished in one or in several

23-15    installment deliveries.

23-16          Refunding bonds and their interest coupons are investment

23-17    securities under Chapter 8, Business & Commerce Code.

23-18          (g)  In lieu of the method set forth in Subsections (a)-(f),

23-19    a district may refund bonds, notes, or other obligations as

23-20    provided by the general laws of the state.

23-21    777.125.  BONDS AS INVESTMENTS AND SECURITY FOR DEPOSITS

23-22                (a)  District bonds are legal and authorized

23-23    investments for:

23-24                (1)  a bank;

23-25                (2)  a savings bank;

 24-1                (3)  a trust company;

 24-2                (4)  a savings and loan association;

 24-3                (5)  an insurance company;

 24-4                (6)  a fiduciary;

 24-5                (7)  a trustee;

 24-6                (8)  a guardian; and

 24-7                (9)  a sinking fund of a municipality, county, school

 24-8    district, and other political subdivision of the state and other

 24-9    public funds of the state and its agencies, including the permanent

24-10    school fund.

24-11          (b)  District bonds are eligible to secure deposits of public

24-12    funds of the state and municipalities, counties, school districts,

24-13    and other political subdivisions of the state.  The bonds are

24-14    lawful and sufficient security for deposits to the extent of their

24-15    value when accompanied by all unmatured coupons.

24-16    777.126.  Tax Status of Bonds

24-17          Because a district created under this chapter is a public

24-18    entity performing an essential public function, bonds issued by the

24-19    district, any transaction relating to the bonds, and profits made

24-20    in the sale of the bonds are exempt from taxation by the state or

24-21    by any municipality, county, special district, or other political

24-22    subdivision of the state.

24-23          SECTION 2.  Section 771.001, Health and Safety Code is

24-24    amended by adding subsection (10) to read as follows:

24-25                (10)  "Regional communications district" means a

 25-1    district created under Chapter 777, Health and Safety Code

 25-2          SECTION 3.  Section 771.054, Health and Safety Code is

 25-3    amended to read as follows:

 25-4          Sec. 771.054.  EFFECT OF CHAPTER ON EMERGENCY COMMUNICATIONS

 25-5    DISTRICTS AND REGIONAL COMMUNICATIONS DISTRICTS.  Except as

 25-6    expressly provided by this chapter, this chapter does not affect

 25-7    the existence or operation of an emergency communications district

 25-8    or a regional communications district or prevent the addition of

 25-9    territory to the area served by an emergency communications

25-10    district or regional communications district as provided by law.

25-11          SECTION 4.  Section 771.055, Health and Safety Code is

25-12    amended to read as follows:

25-13          (b)  The plan must include a description of how the service

25-14    is to be administered.  The service may be administered by an

25-15    emergency communications district, regional communications

25-16    district, municipality, or county, by a combination formed by

25-17    interlocal contract, or by other appropriate means as determined by

25-18    the regional planning commission.  In a region in which one or more

25-19    emergency communications districts or regional communications

25-20    districts exist, a preference shall be given to administration by

25-21    those districts and expansion of the area served by those

25-22    districts.

25-23          (d)  In a region in which one or more emergency

25-24    communications districts or regional communications districts

25-25    exist, if a district chooses to participate in the plan, the

 26-1    district shall assist in the development of the plan.

 26-2          SECTION 5.  This Act takes effect on September 1, 1997.

 26-3          SECTION 6.  The importance of this legislation and the

 26-4    crowded condition of the calendars in both houses create an

 26-5    emergency and an imperative public necessity that the

 26-6    constitutional rule requiring bills to be read on three several

 26-7    days in each house be suspended, and this rule is hereby suspended.