1-1                                   AN ACT
 1-2     relating to the consolidation of emergency communication districts
 1-3     and to the approval of proposed budgets of certain emergency
 1-4     communication districts.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 771.001(3), Health and Safety Code, is
 1-7     amended to read as follows:
 1-8                 (3)  "Emergency communication district" means:
 1-9                       (A)  a public agency or group of public agencies
1-10     acting jointly that provided 9-1-1 service before September 1,
1-11     1987, or that had voted or contracted before that date to provide
1-12     that service; or
1-13                       (B)  a district created under Subchapter B, C,
1-14     [or] D, or F, Chapter 772.
1-15           SECTION 2.  Sections 772.309(b), (c), and (d), Health and
1-16     Safety Code, are amended to read as follows:
1-17           (b)  The board shall submit a draft of the proposed budget to
1-18     the governing bodies of the participating jurisdictions not later
1-19     than the 45th day before the date the board adopts the budget.  The
1-20     participating jurisdictions shall review the proposed budget and
1-21     submit any comments regarding the budget to the board.
1-22           (c)  If the governing body of a county, municipality, or
1-23     other participating jurisdiction does not approve or disapprove the
1-24     budget before the 61st day after the date the body received the
 2-1     proposed budget for review, the budget is approved by operation of
 2-2     law.
 2-3           (d)  A revision of the budget must be approved in the same
 2-4     manner as the budget.
 2-5           (e) [(c)]  As soon as practicable after the end of each
 2-6     district fiscal year, the director shall prepare and present to the
 2-7     board and to each participating jurisdiction in writing a sworn
 2-8     statement of all money received by the district and how the money
 2-9     was used during the preceding fiscal year.  The report must show in
2-10     detail the operations of the district for the fiscal year covered
2-11     by the report.
2-12           (f) [(d)]  The board shall have an independent financial
2-13     audit of the district performed annually.
2-14           SECTION 3.  Chapter 772, Health and Safety Code, is amended
2-15     by adding Subchapter F to read as follows:
2-16                    SUBCHAPTER F.  CONSOLIDATED DISTRICTS
2-17           Sec. 772.451.  CONSOLIDATION PROCEDURE.  (a)  Two or more
2-18     districts governed by this chapter may consolidate into a single
2-19     district as provided by this section.
2-20           (b)  If the board of managers of each district to be
2-21     consolidated finds that the consolidation of the districts would
2-22     benefit the participating jurisdictions of the district, the board
2-23     may call and hold an election in the district's participating
2-24     jurisdictions to approve the consolidation.
2-25           (c)  The election in each district must be held on the same
2-26     uniform election date provided by Chapter 41, Election Code.
2-27           (d)  Each district shall pay the election expenses for its
 3-1     participating jurisdictions.
 3-2           (e)  The ballot for the election to approve the consolidation
 3-3     must be printed to permit voting for or against the proposition
 3-4     that the district may consolidate with other named districts.
 3-5           Sec. 772.452.  CONSOLIDATION PLANNING.  (a)  If a majority of
 3-6     the voters voting at the election approve the consolidation, the
 3-7     board of managers of the district shall conduct a planning meeting
 3-8     with the boards of managers of the other districts whose voters
 3-9     have approved the consolidation.
3-10           (b)  The meeting must be a public meeting. At the meeting,
3-11     the boards of managers shall devise a consolidation plan to:
3-12                 (1)  combine the debts and assets of the districts;
3-13                 (2)  pay outstanding bonds of the districts and issue
3-14     refunding bonds as necessary to pay the bonds;
3-15                 (3)  impose a uniform 9-1-1 emergency service fee; and
3-16                 (4)  adjust the membership and qualifications of the
3-17     board of managers of the consolidated district.
3-18           (c)  If a consolidated district is not created under Section
3-19     772.453 before the first anniversary of the date of the election
3-20     held under Section 772.451, a consolidated district may not be
3-21     created until:
3-22                 (1)  the districts make another finding that the
3-23     consolidation would benefit the participating jurisdictions; and
3-24                 (2)  the consolidation is approved at another election
3-25     held under Section 772.451.
3-26           Sec. 772.453.  CREATION OF CONSOLIDATED DISTRICT.  (a)  When
3-27     the board of managers of each district has adopted the same
 4-1     consolidation plan, the combined boards of managers shall declare
 4-2     the consolidated district created.
 4-3           (b)  If the board of managers of a district does not agree to
 4-4     a consolidation plan, the remaining districts may consolidate on
 4-5     the terms of a mutually agreeable consolidation plan.
 4-6           Sec. 772.454.  BOARD OF MANAGERS.  (a)  The consolidated
 4-7     district is governed by a board of managers appointed in accordance
 4-8     with the order issued by the temporary board of managers under
 4-9     Subsection (b).  The  members of the boards of managers of all the
4-10     districts consolidated serve as a temporary board until all members
4-11     of the initial board of managers are appointed and qualify.  The
4-12     temporary board has all authority necessary to operate and
4-13     administer the district.
4-14           (b)  Before the 45th day after the date the district is
4-15     created, the temporary board of managers by order shall adjust the
4-16     membership of the board.  The order must be substantially in
4-17     accordance with the consolidation plan and must specify:
4-18                 (1)  the number of members of the board;
4-19                 (2)  the entity or combination of entities that
4-20     appoints each member;
4-21                 (3)  whether each member may or may not vote; and
4-22                 (4)  the term of each member of the initial board so
4-23     that as near to one-half of the members as is practical serve terms
4-24     that expire in even-numbered years and the remaining members serve
4-25     terms that expire in odd-numbered years.
4-26           (c)  The order issued under Subsection (b) must preserve as
4-27     nearly as possible the proportional representation of interests
 5-1     exhibited by the memberships of the boards of managers of the
 5-2     several districts before consolidation.
 5-3           Sec. 772.455.  GOVERNANCE OF CONSOLIDATED DISTRICT.  The
 5-4     consolidated district and its board of managers are governed by the
 5-5     provisions of this chapter that governed the most populous of the
 5-6     districts before the consolidation, except as provided by this
 5-7     subchapter.
 5-8           SECTION 4.  The importance of this legislation and the
 5-9     crowded condition of the calendars in both houses create an
5-10     emergency and an imperative public necessity that the
5-11     constitutional rule requiring bills to be read on three several
5-12     days in each house be suspended, and this rule is hereby suspended,
5-13     and that this Act take effect and be in force from and after its
5-14     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1984 was passed by the House on April
         28, 1999, by the following vote:  Yeas 147, Nays 0, 1 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 1984 on May 29, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1984 was passed by the Senate, with
         amendments, on May 24, 1999, by the following vote:  Yeas 30, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor