SRC-JBJ H.B. 2744 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2744
By: Carter (Madla)
Intergovernmental Relations
5/11/2001
Engrossed


DIGEST AND PURPOSE 

During the most recent interim, the House Committee on Urban Affairs
(committee) researched whether emergency services districts (ESD) and rural
fire prevention districts (RFPD) are able to provide the highest quality
services under current statutory requirements.  Testimony indicated that
ESDs and RFPDs need greater flexibility in structuring districts to provide
fire protection and emergency services.  After studying the procedural,
geographical, and economic problems faced by ESDs and RFPDs, the committee
recommended authorizing ESDs and RFPDs to exchange territory and expand
their power to borrow money.  H.B. 2744 enacts these recommendations. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 775.018(a), Health and Safety Code, to amend
provisions regarding the application of a tax rate. 

SECTION 2.  Amends Sections 775.024(a) and (b), Health and Safety Code, to
amend provisions regarding the application of a tax rate. 

SECTION 3.  Amends Chapter 775E, Health and Safety Code, by adding Section
775.0745, as follows: 

Sec. 775.0745.  ELECTION TO INCREASE TAX RATE.  Sets forth provisions
regarding an election to increase the tax rate within certain emergency
services districts. 
 
SECTION 4.  Amends the heading to Chapter 775D, Health and Safety Code, to
read as follows: 

SUBCHAPTER D.  CHANGE IN BOUNDARIES OR DISSOLUTION OF DISTRICT
 
SECTION 5.  Amends Chapter 775D, Health and Safety Code, by adding Section
775.056, as follows: 

Sec. 775.056.  TRANSFER OF TERRITORY BETWEEN DISTRICTS.  Sets forth
provisions regarding the procedure for a change in district boundaries
under certain conditions. 

SECTION 6.  Amends Section 775.071, Health and Safety Code, to amend
provisions regarding the limitations on certain districts' contracts for
indebtedness. 

SECTION 7.  Amends Section 775.076(c), Health and Safety Code, to delete
existing text regarding the maturation of certain bonds and notes. 

 SECTION 8.  Amends Section 775.085, Health and Safety Code, as follows:

Sec. 775.085.  New heading: LOAN FOR REAL PROPERTY OR EMERGENCY SERVICES
EQUIPMENT.  Amends provisions regarding certain borrowing by a board of
emergency services commissioners (board). 

SECTION 9.  Amends Section 776.019(a), Health and Safety Code, to amend
provisions regarding the application of a tax rate.  

SECTION 10.  Amends Chapter 776D, Health and Safety Code, by adding Section
776.058, as follows: 

Sec. 776.058.  TRANSFER OF TERRITORY BETWEEN DISTRICTS.  Sets forth
provisions regarding the procedure for a change in district boundaries
under certain conditions. 

SECTION 11.  Amends Section 776.071, Health and Safety Code, to amend
provisions regarding the limitations on certain district's contracts for
indebtedness. 
 
SECTION 12.  Amends Chapter 776E, Health and Safety Code, by adding Section
776.0755, as follows: 

Sec. 776.0755.  ELECTION TO INCREASE TAX RATE.  Sets forth provisions
regarding an election to increase the tax rate within certain emergency
services districts. 

SECTION 13.  Amends Section 776.076(c), Health and Safety Code, to delete
existing text regarding the maturation of certain bonds and notes. 
 
SECTION 14.  Amends Chapter 776E, Health and Safety Code, by adding Section
776.082, as follows: 

Sec. 776.082.  LOAN FOR REAL PROPERTY OR EMERGENCY SERVICES EQUIPMENT.
Sets forth provisions regarding the borrowing of funds, by a board, on
behalf of a district, for certain purposes. 

SECTION 15.  Amends Section 794.018(a), Health and Safety Code, to amend
provisions regarding the application of a tax rate. 
 
SECTION 16.  Amends Section 794.0181, Health and Safety Code, to amend
provisions regarding an election to increase the tax rate within certain
emergency services districts 

SECTION 17.  Amends Chapter 794D, Health and Safety Code, by adding Section
794.061, as follows: 

Sec. 794.061.  TRANSFER OF TERRITORY BETWEEN DISTRICTS.  Sets forth
provisions regarding the procedure for a change in district boundaries
under certain conditions. 

SECTION 18.  Amends Section 794.071, Health and Safety Code, to amend
provisions regarding the limitations on certain districts' contracts for
indebtedness. 
 
SECTION 19.  Amends Section 794.074(i), Health and Safety Code, to provide
that this section does not apply to the purchase or lease of real property;
an item or service that the board of fire commissioners determines can be
obtained from only one source; a contract for fire extinguishment and
suppression service, emergency rescue service, or ambulance service; or an
emergency expenditure. 
 
SECTION 20.  Amends Section 794.074, Health and Safety Code, by adding
Subsection (j), to  provide that Subsection (i) does not prohibit the board
of fire commissioners from soliciting competitive bids for any item,
service, or contract listed in Subsection (i). 
 
SECTION 21. Amends Section 794.076(c), Health and Safety Code, to delete
existing text regarding the maturation of certain bonds and notes. 
 
SECTION 22.  Amends Section 794.083, Health and Safety Code, as follows:

Sec. 794.083.  New heading: LOAN FOR REAL PROPERTY OR FIRE-FIGHTING
EQUIPMENT.  Amends provisions regarding certain borrowing by the board of
fire commissioners.  

SECTION 23.  Repealer:  (1)  Section 775.0742, Health and Safety Code;

  (2)  Sections 775.076(e), (f), and (g), Health and Safety Code;

  (3)  Section 775.079, Health and Safety Code;

  (4)  Section 775.080, Health and Safety Code;

  (5)  Section 775.081, Health and Safety Code;

  (6)  Sections 776.076(e), (f), and (g), Health and Safety Code;

  (7)  Section 776.079, Health and Safety Code;

  (8)  Section 776.080, Health and Safety Code;

  (9)  Section 776.081, Health and Safety Code;

  (10)  Sections 794.076(e), (f), and (g), Health and Safety Code;

  (11)  Section 794.079, Health and Safety Code;

  (12)  Section 794.080, Health and Safety Code; and

  (13)  Section 794.081, Health and Safety Code.
 
SECTION 24.  Provides that this Act does not impair any obligation created
by the issuance of bonds, notes, or other obligations in accordance with
prior law, and all bonds, notes, or other obligations validly issued under
provisions revised or repealed remain valid, enforceable, and binding
according to their terms and requires them to be paid from the sources
pledged to their payment.  Authorizes bonds, notes, or other obligations
authorized but unissued on the effective date of this Act to be issued in
compliance with and subject to the provisions of the prior law. 
 
SECTION 25.  (a)  Provides that all acts and proceedings taken under
Chapter 775 or Chapter 776, Health and Safety Code, to create an emergency
services district that is performing the functions of a district on the
effective date of this Act are validated, and creation of the district is
confirmed. 

(b)  Provides that this section does not apply to a matter that on the
effective date of this Act is involved in litigation if the litigation
ultimately results in the creation of the district being held invalid by a
final judgment of a court or has been held invalid by a final judgment of a
court. 
 
SECTION 26.  Effective date: upon passage or September 1, 2001.