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The House Committee on Urban Affairs
76th Legislature
October 9, 2000
10:00 a.m.
Capitol Extension
Pursuant to a notice posted on September 25, 2000, the House
Committee on Urban Affairs met in a public hearing and was
called to order by the chair, Representative Carter, at 10:07
a.m.
The roll was answered as follows:
Present: Representatives Carter; Burnam; Clark; Edwards; Hill
(5).
Absent: Representatives Bailey; Ehrhardt; Hodge; Najera (4).
A quorum was present.
Chairman Carter laid out the House Committee on Urban Affairs
Texas House of Representatives Interim Report 2000.
Discussion followed on the Interim Charge: Study the needs of
volunteer departments and evaluate their capacity to fulfill
their mission of protecting the public.
The Committee agreed by consensus on the following "Clean-Up
Legislation" Recommendations:
1. Expand Long Term Financing Ability of RFPDs/ESDs:
Currently RFPDs and ESDs have limited ability to finance
the purchase of capital items and the construction of new
facilities and equipment under the Health and Safety Code
775.085. This statute authorizes an RFPD/ESD board to
secure a loan guaranteed with tax revenues, with
unencumbered funds on-hand or with the equipment acquired
with the borrowed money. If tax revenues are pledged, the
law requires that the loan mature no later than five years
from its execution.
The Committee recommends extending the maximum repayment
period to ten years for capital items and twenty years for
real property acquisition and facility construction.
2. Authorize "Validation Clause" to Ensure Ability of ESD to
Incur Bond Debt: Currently, ESDs have difficulties with
gaining approval from the Attorney General on a bond
issuance due to an inability to meet administrative
requirements to provide documents authenticating the
creation of the ESD. This has proven a cumbersome and
detrimental process for ESDs that wish to incur debt
through bonds.
The Committee recommends approval of a "savings" or
"validation" clause which will eliminate the need for ESDs
to provide creation documentation.
3. Revise ESD Statute to Ensure Conformity with State Statute
on Bond Indebtedness: The Committee recommends including
in Health and Safety Code Chapters 794, 775, and 776
references to Government Code Chapter 1201 and 1207 to
ensure the ESD statute conforms with other state bond
statutes.
4. Allow RFPDs and ESDs to Merge/Exchange Territory through
Interlocal Agreements: The Committee recommends that the
Health and Safety Code requirements for RFPDs and ESDs
should be amended to streamline the transfer of territory
between districts and to allow districts to enter into
Interlocal agreements to exchange territory.
5. Revise RFPD and ESD Statutes to Ensure Uniformity: The
Committee recommends that statutes authorizing RFPDs and
ESDs should be amended to make them more uniform.
Discussion followed. The "Clean-Up Legislative recommendations
#1-#5 were agreed upon by a consensus.
Chairman Carter laid out the recommendations for the
"Legislative Changes".
1. Provide Tort Protection for Volunteer Firefighters in their
Official Capacity: The Committee recommends that the Texas
Tort Claims Act (Texas Civil Practices & Remedies Code
101.001(2)) be amended to change the definition of
"employee" to include a volunteer for an emergency
services organization or governmental unit so that
volunteers have the same immunities and defenses as paid
staff of the entities that provide fire and other services.
Discussion followed.
Representative Clark offered an amendment to the measure to read
as follows:
"The Committee recommends that the Texas Civil Practice and
Remedies Code Section 78.001 be amended to ensure non-liability
for volunteer fire fighters in their official duties. The
amendment will be modeled after provision in the Texas Civil
Practices and Remedies Code Section 78.0532 pertaining to marine
firefighters."
The amendment was adopted by the following record vote:
Ayes: Representatives Carter; Burnam; Clark;
Edwards; Hill (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Bailey; Ehrhardt; Hodge; Najera
(4).
The Chair laid out the following recommendations for
"Legislative Changes":
2 Raise the Cap on RFPDs/ESDs: The Committee recommends
legislation to raise the cap on the tax levy for RFPDs and
ESDs. This would require a Constitutional Amendment
authorizing an increase in the cap for ESDs to $.15 per
$100 valuation and for RFPDs to $.10 per $100 valuation.
3. Allow ESDs and RFPDs to Levy Full Tax in Overlapping Areas:
The Committee recommends amending the Health and Safety
Code 775.018(a-b) to allow an ESD to levy the full $.10
regardless of whether any area of the district is also
included within an RFPD. This would mean that an area with
an overlapping RFPD and ESD could have a maximum combined
tax rate of $.13 per $100 valuation, except Harris County
which would have a combined tax rate of $.15 per $100
valuation.
4. Allow ESDs to Overlap and Authorize Each to Levy Maximum
Tax Rate: The Committee recommends amending the Health and
Safety Code 775.020 which expressly prohibits overlapping
ESDs. This would mean that in the overlapping territory
the maximum tax levy could be $.20 per $100 valuation ($.10
going to each ESD).
Representative Clark offered an amendment to the measure to read
as follows:
"The above recommendations (Legislative Change Recommendations
#2-4) be limited in the following way: That the Health and
Safety Code be amended to ensure that a property owner's total
tax paid to his/her local RFPD(s) and/or ESD(s) may not exceed
$.20 per $100 valuation."
The amendment was adopted by the following record vote:
Ayes: Representatives Carter; Burnam; Clark;
Edwards; Hill (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Bailey; Ehrhardt; Hodge; Najera
(4).
Chairman Carter laid out the fifth recommendation for
Legislative Change that read as follows:
5. Provide a Dedicated Funding Source to the TCFP Through
Optional Fee on Vehicle Registration: The Committee
recommends legislation to authorize a voluntary assessment
on all vehicle registration dedicated for all fire
departments. The Texas Commission on Fire Protection
(TCFP) will receive the monies and distribute them through
its Emergency Services Grant Program. The Committee
recommends that the money be split equally between paid and
volunteer departments.
Discussion followed.
Representative Hill made a motion to exclude the fifth
Legislative Change from the Interim Committee Report.
The motion prevailed by the following record vote:
Ayes: Representatives Carter; Burnam; Clark;
Edwards; Hill (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Bailey; Ehrhardt; Hodge; Najera
(4).
Chairman Carter laid out the following "Additional Funding
Requests":
Additional Funding Requests
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1.Provide Additional Funds to Local Services Division at TDHCA to
Coordinate and Provide Technical Support for RFPDs/ESDs:
The Committee recommends that additional funds be
appropriated to the Local Services Division at TDHCA for 2
FTEs to assist with outreach to RFPDs and ESDs.
Discussion followed. The Additional Funding Request number one
(1) was agreed upon by consensus.
2.Provide Additional Funds to TEEX to Fund Satellite Training for
Volunteer Firefighters: The Committee recommends that
additional funds be appropriated to TEEX to provide
satellite dishes for volunteer departments. With an
estimated 1,600 volunteer departments, the total cost of
this program should be $320,000.
Discussion followed. The Additional Funding Request number two
(2) was agreed upon by consensus.
3.Provide Additional Funds for the Legislative Council to Fund a
Study to Accurately Count and Assess the Needs of Texas'
Volunteer Firefighters: The Committee recommends that
additional funds be appropriated to the Legislative Council
to fund a study which counts all volunteer firefighters and
departments in the State and assesses the needs of these
departments.
Discussion followed.
Representative Hill offered an amendment to the measure to read
as follows:
"Request the State Firemens' and Firemarshals' Association,
inconjunction with the Texas Commission on Fire Protection, to
provide the Urban Affairs Committee a recommendation for a
reporting system for the volunteer fire fighters of Texas, along
with enforcement provisions. Also request the State Firemens'
and Firemarshals' Association and the Texas Commission on Fire
Protection to assess the needs of the volunteer fire fighters of
Texas and report back to the Committee."
The motion prevailed by the following record vote:
Ayes: Representatives Carter; Burnam; Clark;
Edwards; Hill (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Bailey; Ehrhardt; Hodge; Najera
(4).
Representative Clark offered the following Additional Funding
Request:
"Provide funding for eight (8) additional instructors and mobile
training aids in order to train volunteers locally through the
Texas Training Extension Service."
The motion prevailed by the following record vote:
Ayes: Representatives Carter; Burnam; Clark; Edwards;
Hill (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Bailey; Ehrhardt; Hodge; Najera
(4).
Chairman Carter laid out the "General Recommendations":
General Recommendations
1. Encourage Departments to Use Design/Build Concept in
Capital Projects: The Committee encourages counties
involved in the building of fire stations to utilize the
Design-Build concept. This method ensures that the
facilities will be erected within a few months, thereby
eliminating the expensive "overruns" which often occur when
the building of a facility takes years to accomplish.
Discussion followed. The General Recommendation number one (1)
was agreed upon by consensus.
2. Encourage TDH to Develop a Rule to Allow Volunteers to
Transport Victims if Ambulatory Care is Unavailable: The
Committee encourages the Texas Department of Health (TDH)
to develop a rule which allows an EMS-certified volunteer
firefighter, under the guidance of an MD, to transport a
victim to a hospital in the event that ambulatory care is
unavailable or the injury is life-threatening. The rule
should include liability protections for the volunteer
firefighters.
Discussion followed. The General Recommendation number two (2)
was agreed upon by consensus.
Chairman Carter laid out General Recommendation number three
(3).
3. Explore Creative Funding Opportunities Through Grant
Anticipation Bonds: The Committee encourages the use of
flexible funding sources for capital projects for volunteer
fire departments and recommends that appropriate state
agencies explore opportunities to use grant anticipation
bonds (similar to the Garvee bond program) to assist
volunteer departments with debt financing.
Discussion followed. The Committee reached a consensus to
exclude number (3) General Recommendation from the Interim
Committee Report.
Chairman Carter laid out the Interim Charge: "Review the data
used by the Texas Department of Housing and Community Affairs to
make decisions affecting affordable housing. Determine the
adequacy of the data as it relates to the scope, timeliness, and
accuracy of information."
Chairman Carter laid out the Interim Report Committee
Recommendations for the Charge:
1. In order to meet the vast ever-increasing affordable
housing demand for the State of Texas, TDHCA needs to
broaden its scope and work intimately with the Entitlement
Cities, Participating Jurisdictions, USDA, Community
Development Corporations, Public Housing Authorities, Local
Banks, etc., in order to leverage funds in a more
comprehensive manner. The Committee recommends that a new
position be created entitled Regional Development
Coordinator. This new position was developed through a
working group of TDHCA, USDA, Council of Governments, Texas
Community Development Corporations, Texas Low Income
Housing Information Service and Texas Rural Communities
Foundation.
One Regional Development Coordinator would office in each
of the 11 State Planning Regions. The Coordinator will be
responsible for working with local stakeholders (local
governments, nonprofits, lending institutions, private
sector, etc.) to develop strategies to address housing and
community development needs in each region.
TDHCA has submitted seven (7) additional Full Time
Employees (FTEs) in their exception item request.
Alternative funding can also be sought through the Council
of Governments, local funding sources, etc.
2. Request TDHCA to report back to the Committee in April,
2001 on the implementation of the TDHCA/Texas Low Income
Housing Information Service Joint Recommendations as
reported to the Committee at the July 11, 2000 Public
Hearing.
Discussion followed. Recommendations number one (1) and two (2)
were agreed upon by consensus by the Committee.
Chairman Carter laid out the Interim Charge "Assess the
advantages and disadvantages of manufactured housing as one
means to alleviate affordable housing deficits."
Chairman Carter laid out the Interim Committee Report
recommendations for the Charge:
1. Appraisals - Request the State Comptroller's Office to
include in their annual study a separate sample of
manufactured housing in school districts, in both urban and
rural areas, to assure that adequate appraisal of
manufactured housing is being conducted. Report results of
study back to the Committee.
2. The Texas Department of Housing and Community Affairs
(TDHCA) currently regulates the manufactured housing
retailers that extend credit or arrange for the extension
of credit under Chapter 357, Texas Finance Code.
Excerpts from the Texas Manufactured Housing Standards Act,
Texas Civil Statutes, Article 5221f, Section 6e, details
some of the areas TDHCA currently regulates:
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It is unlawful for a retailer or broker to fail to comply
with the requirements and provisions of the Texas
Credit Code or the federal Truth-in-Lending Act or to
advertise any interest rate or finance charge which is
not expressed as an annual percentage rate.
It is unlawful for a retailer to set forth in any retail
installment sales contract or other credit document
any down payment unless all of the down payment has
actually been received by the retailer at the time of
execution of the contract or document.
It is unlawful for a retailer or a salesperson to aid or
assist a consumer in preparing or providing false or
misleading information on a document related to the
purchase of financing of a manufactured homes or for a
salesperson to submit information known to be a false
or misleading to a credit underwriter or lending
institution.
Encourage TDHCA to continue to work closely with the
manufactured housing retailers as "creditors", as defined
under Section 347.002 in the Texas Finance code, to
encourage more in-depth self-regulation.
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3. Request TDHCA to more actively provide education
information regarding the use of federal funds that are
applicable to the development of manufactured housing
communities, along with the purchase and repair of
manufactured homes. Some of the information to include the
following:
In order to receive federal dollars for manufactured
housing and to be eligible for a 30 year mortgage from the
Federal National Mortgage Association, the following
requirements need to be met:
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A HUD-Code manufactured home has the meaning defined in
Section 3, Article 5221f, Vernon's Texas Civil
Statute.
The new HUD-Code manufactured home will be securely affixed
to a permanent foundation, classified as real property
under Section 2.001 Property Code
The plans and specifications for the permanent foundation
and other on-site construction are approved by the
municipal building official or bear the seal of
registered professional engineer.
Depending on the type of federal funds, there may be
additional requirements.
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Direct TDHCA to report back to the House Committee on Urban
Affairs on their educational outreach programs and its
results.
Discussion followed on the above three recommendations. The
Committee adopted the above three (3) recommendations by
consensus.
Chairman Carter laid out the Interim Charge: "Conduct active
oversight of the agencies under the committee's jurisdictions."
Chairman Carter laid out the oversight activities report in the
Interim Report as it related to the Texas Department of Housing
and Community Affairs and the Texas State Affordable Housing
Corporation as both agencies are currently under Sunset review.
At 11:54 p.m., on the motion of the chair and without objection,
the meeting was adjourned subject to the call of the chair.
________________________
Rep. Carter, Chair
________________________
Donna Chatham, Clerk