76R11185 CAG-F                           
         By Hamric                                             H.B. No. 2981
         Substitute the following for H.B. No. 2981:
         By Krusee                                         C.S.H.B. No. 2981
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to emergency services districts.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 775.012(b), Health and Safety Code, is
 1-5     amended to read as follows:
 1-6           (b)  The name of the district proposed by the petition must
 1-7     be "____________ Emergency Services District No. _______."  The
 1-8     name of each county must be inserted in the first blank, and the
 1-9     next available district number must be inserted into the second
1-10     blank.
1-11           SECTION 2.  Section 775.014(g), Health and Safety Code, is
1-12     amended to read as follows:
1-13           (g)  This section does not apply if the proposed district
1-14     contains territory in [is wholly within] the unincorporated area of
1-15     a county with [that has] a population of 2.4 million or more
1-16     [according to the most recent federal decennial census].
1-17           SECTION 3.  Section 775.018(b), Health and Safety Code, is
1-18     amended to read as follows:
1-19           (b)  If a proposed district is located wholly in a county
1-20     with a population of more than 2.4 million, the commissioners court
1-21     shall order an election to confirm the district's creation and
1-22     authorize the imposition of an ad valorem tax not to exceed three
1-23     cents on each $100 of the taxable value of property taxable by the
1-24     district[, except that if the petition seeks conversion of a rural
 2-1     fire prevention district into an emergency services district, the
 2-2     election must be to authorize the imposition of an ad valorem tax
 2-3     not to exceed six cents on each $100 of the taxable value of
 2-4     property taxable by the district].  For the purposes of this
 2-5     subsection, the population of the county is determined according to
 2-6     the most recent federal decennial census available at the time the
 2-7     petition is filed.
 2-8           SECTION 4.  Sections 775.022(a) and (c), Health and Safety
 2-9     Code, are amended to read as follows:
2-10           (a)  If a municipality annexes territory in a district, the
2-11     board shall, on receipt of a written request of the municipality,
2-12     immediately disannex the territory from the district and shall
2-13     cease to provide further services to the residents of that
2-14     territory.
2-15           (c)  If a municipality annexes a portion of a district, the
2-16     municipality shall  compensate the district in an amount equal to
2-17     the annexed territory's pro rata share of the district's bonded and
2-18     other indebtedness based on the unpaid principal balances and the
2-19     property values at the time the territory is annexed.  The district
2-20     shall apply compensation received from a municipality under this
2-21     subsection exclusively to the payment of the annexed territory's
2-22     pro rata share of the district's bonded and other indebtedness.
2-23           SECTION 5.  Sections 775.031(a) and (b), Health and Safety
2-24     Code, are amended to read as follows:
2-25           (a)  A district is a political subdivision of the state.  To
2-26     perform the functions of the district and to provide emergency
2-27     services, a district may:
 3-1                 (1)  acquire, purchase, hold, lease, manage, occupy,
 3-2     and sell real and personal property or an interest in property;
 3-3                 (2)  enter into and perform necessary contracts;
 3-4                 (3)  appoint and employ necessary officers, agents, and
 3-5     employees;
 3-6                 (4)  sue and be sued;
 3-7                 (5)  impose and collect taxes as prescribed by this
 3-8     chapter;
 3-9                 (6)  accept and receive donations;
3-10                 (7)  lease, own, maintain, operate, and provide
3-11     emergency services vehicles and other necessary or proper
3-12     apparatus, instrumentalities, equipment, and machinery to provide
3-13     emergency services;
3-14                 (8)  construct, lease, own, and maintain real property,
3-15     improvements, and fixtures necessary to house, repair, and maintain
3-16     emergency services vehicles and equipment;
3-17                 (9)  contract with other entities, including other
3-18     districts or municipalities, to make emergency services facilities
3-19     and emergency services available to the district;
3-20                 (10)  contract with other entities, including other
3-21     districts or municipalities, for reciprocal operation of services
3-22     and facilities if the contracting parties find that reciprocal
3-23     operation would be mutually beneficial and not detrimental to the
3-24     district;
3-25                 (11)  borrow money; and
3-26                 (12) [(11)]  perform other acts necessary to carry out
3-27     the intent of this chapter.
 4-1           (b)  A district located wholly within a county with a
 4-2     population of more than 2.4 million may not provide fire prevention
 4-3     or fire-fighting services unless the district was originally a
 4-4     rural fire prevention district and was converted under Section
 4-5     794.100 [775.056].
 4-6           SECTION 6.  Section 775.034(a), Health and Safety Code, is
 4-7     amended to read as follows:
 4-8           (a)  The commissioners court of a county in which a
 4-9     single-county district is located shall appoint a five-member board
4-10     of emergency services commissioners to serve as the district's
4-11     governing body.  To be qualified to serve as a member of the board
4-12     a person must be at least 18 years of age, a resident citizen of
4-13     the state, and a qualified voter within areas served by the
4-14     district or the owner of land subject to taxation in the district.
4-15     Except as prescribed by Subsection (b), commissioners serve
4-16     two-year terms.
4-17           SECTION 7.  Sections 775.035(b) and (h), Health and Safety
4-18     Code, are amended to read as  follows:
4-19           (b)  After a district located in more than one county is
4-20     created, the county judges of each county in the district shall
4-21     mutually establish a convenient day provided by Section 41.001,
4-22     Election Code [in November, other than the date of the general
4-23     election for state and county officers], to conduct an election to
4-24     elect the initial emergency services commissioners.
4-25           (h)  The general election for commissioner shall be held
4-26     annually on an authorized uniform election date as provided by
4-27     Chapter 41, Election Code.  The board may change the election date
 5-1     from one authorized election date to another authorized election
 5-2     date and shall adjust the terms of office to conform to the new
 5-3     election date.
 5-4           SECTION 8.  Section 775.036, Health and Safety Code, is
 5-5     amended by amending Subsection (b) and by adding Subsections (e)
 5-6     and (f) to read as follows:
 5-7           (b)  The board may adopt and enforce a fire code, including
 5-8     fines for any violations, that does not conflict with a fire code
 5-9     adopted by another political subdivision that also contains within
5-10     its boundaries any portion of the land contained in the district
5-11     and may require inspections in the district relating to the causes
5-12     and prevention of fires and medical emergencies, except as provided
5-13     by Section 775.031(b).  The board may not enforce the district's
5-14     fire code within the boundaries of a municipality that has adopted
5-15     a fire code.  The board of a district located wholly within a
5-16     county with a population of 2.4 million or more may not adopt a
5-17     fire code or a fine for a violation of the district's fire code
5-18     unless the commissioners court of the county consents to the
5-19     adoption of the code or fine.
5-20           (e)  Chapter 551, Government Code, does not apply to a
5-21     meeting of a committee:
5-22                 (1)  of the board if less than a board quorum attends;
5-23     or
5-24                 (2)  composed of representatives of more than one
5-25     board, if less than a quorum of any of the boards attends.
5-26           (f)  Each January, the board shall publish the street address
5-27     of the district's administrative office in eight-point type in the
 6-1     legal notices section of a newspaper of general circulation in the
 6-2     district.  In a district's first year of operation, the board shall
 6-3     publish the notice not later than the 60th day after the date the
 6-4     initial board is appointed.
 6-5           SECTION 9.  Section 775.040, Health and Safety Code, is
 6-6     amended to read as follows:
 6-7           Sec. 775.040.  FEES FOR PROVIDING SERVICES.  A district, or a
 6-8     person authorized by contract on the district's behalf, may charge
 6-9     a reasonable fee for emergency services performed for or on behalf
6-10     of a person or entity, including a fee for responding to a false
6-11     alarm or for a fire code inspection.
6-12           SECTION 10.  Subchapter C, Chapter 775, Health and Safety
6-13     Code, is amended by adding Sections 775.041 and 775.042 to read as
6-14     follows:
6-15           Sec. 775.041.  FEE PAYMENT AND COLLECTION.  (a)  A fee
6-16     imposed by a district under Section 775.040 must be paid within a
6-17     reasonable amount of time as established by the district.
6-18           (b)  If the fee has not been paid in the amount of time
6-19     established by the district, the district may collect the fee by
6-20     filing a complaint in the appropriate court of jurisdiction in the
6-21     county in which the district's principal office or meeting place is
6-22     located.
6-23           (c)  If the district prevails in any suit to collect the fee,
6-24     it may, in the same action, recover reasonable fees for attorneys,
6-25     expert witnesses, and other costs incurred by the district in the
6-26     suit.  The court shall determine the amount of the attorney's fees.
6-27           Sec. 775.042.  REMOVAL OF BOARD MEMBER.  (a)   A board may
 7-1     remove a member if:
 7-2                 (1)  the member is absent from more than half of the
 7-3     regularly scheduled board meetings that the member is eligible to
 7-4     attend during a calendar year without an excuse approved by a
 7-5     majority vote of the board; and
 7-6                 (2)  the other members of the board unanimously vote to
 7-7     remove that member.
 7-8           (b)  Not later than the 30th day after the date of a vote to
 7-9     remove a member under Subsection (a), that member may file a
7-10     written appeal for reinstatement to the commissioners court of the
7-11     county in which a single-county district is located or, if the
7-12     district is located in more than one county, the commissioners
7-13     court of the county where the member resides.  The court may
7-14     reinstate the member if it finds the removal unwarranted after
7-15     considering:
7-16                 (1)  a reason for an absence;
7-17                 (2)  the time and place of a missed meeting;
7-18                 (3)  the business conducted at a missed meeting; and
7-19                 (4)  any other factors or circumstances the court
7-20     considers relevant.
7-21           (c)  The validity of a board action is not affected because
7-22     it is taken when a ground for removal of a board member exists.
7-23           SECTION 11.  Section 775.071, Health and Safety Code, is
7-24     amended to read as follows:
7-25           Sec. 775.071.  LIMITATION ON INDEBTEDNESS.  Except as
7-26     provided by Section 775.051, Section 775.072, [and] Sections
7-27     775.077-775.081, and Section 775.085, a district may not contract
 8-1     for an amount of indebtedness in any one year that is in excess of
 8-2     the funds then on hand and anticipated [or that may be paid from
 8-3     current] revenues for the year.
 8-4           SECTION 12.  Section 775.0741, Health and Safety Code, is
 8-5     amended to read as follows:
 8-6           Sec. 775.0741.  AD VALOREM TAX IN DISTRICT LOCATED WHOLLY IN
 8-7     POPULOUS COUNTY.  (a)  This section applies only to [The board of]
 8-8     a district located wholly in a county with a population of more
 8-9     than 2.4 million [shall prepare annually a budget for the district
8-10     and shall submit the budget to the commissioners court of the
8-11     county for approval.  The budget shall be treated in the same
8-12     manner as a budget submitted by a county agency or department].
8-13           (b)  The board [commissioners court] shall annually impose an
8-14     ad valorem tax on all real and personal property located in the
8-15     district and subject to district taxation for the district's
8-16     support and the purposes authorized by this chapter.
8-17           (c)  The tax may not exceed three cents on each $100 of the
8-18     taxable value of property taxable by the district.  If the district
8-19     was originally a rural fire prevention district and was converted
8-20     under Section 794.100 [775.056], the tax may not exceed six cents
8-21     on each $100 of the taxable value of property taxable by the
8-22     district.
8-23           (d)  In setting and certifying the tax rate, the board
8-24     [commissioners court] is subject to [the same duties that are
8-25     imposed on a board by] Sections 775.074(b) through (e).
8-26           [(e)  The funds collected under this section shall be
8-27     deposited in a county depository except as provided by Section
 9-1     775.072(b).]
 9-2           SECTION 13.  Subchapter E, Chapter 775, Health and Safety
 9-3     Code, is amended by adding Section 775.085 to read as follows:
 9-4           Sec. 775.085.  LOAN FOR EMERGENCY SERVICES EQUIPMENT.  (a)
 9-5     The board, on the behalf of the district, may borrow money and make
 9-6     other financial arrangements to purchase emergency services
 9-7     equipment in the amount and subject to a rate of interest or other
 9-8     conditions the board considers advisable.
 9-9           (b)  To secure a loan under this section, the board may
9-10     pledge:
9-11                 (1)  tax revenues or funds on hand that are not
9-12     otherwise pledged to pay a debt of the district; or
9-13                 (2)  the equipment acquired with the borrowed money.
9-14           (c)  If tax revenues are pledged to pay a loan, the loan must
9-15     mature not later than the fifth anniversary of the date the loan is
9-16     made.
9-17           SECTION 14.  Section 775.074(f), Health and Safety Code, is
9-18     repealed.
9-19           SECTION 15.  (a)  This Act takes effect September 1, 1999.
9-20           (b)  The changes in law made by Section 6 of this Act in the
9-21     qualifications of, and the prohibitions applying to, members of the
9-22     emergency services commissioners board do not affect the
9-23     entitlement of a member serving on the board immediately before the
9-24     effective date of this Act to continue to carry out the board's
9-25     functions for the remainder of the member's term.  The changes in
9-26     law apply only to a member appointed on or after the effective date
9-27     of this Act.  This Act does not prohibit a person who is a member
 10-1    of the board on the effective date of this Act from being
 10-2    reappointed to the board if the person has the qualifications
 10-3    required for a member under Section 775.034, Health and Safety
 10-4    Code, as amended by this Act.
 10-5          SECTION 16.  The importance of this legislation and the
 10-6    crowded condition of the calendars in both houses create an
 10-7    emergency and an imperative public necessity that the
 10-8    constitutional rule requiring bills to be read on three several
 10-9    days in each house be suspended, and this rule is hereby suspended.