By Luna H.B. No. 1096 77R4208 ATP-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of fire control, prevention, and emergency 1-3 medical services districts by certain municipalities. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle A, Title 11, Local Government Code, is 1-6 amended by adding Chapter 344 to read as follows: 1-7 CHAPTER 344. FIRE CONTROL, PREVENTION, AND EMERGENCY MEDICAL 1-8 SERVICES DISTRICTS 1-9 SUBCHAPTER A. GENERAL PROVISIONS 1-10 Sec. 344.001. SHORT TITLE. This chapter may be cited as the 1-11 Fire Control, Prevention, and Emergency Medical Services District 1-12 Act. 1-13 Sec. 344.002. DEFINITIONS. In this chapter: 1-14 (1) "Board" means the board of directors of a 1-15 district. 1-16 (2) "Director" means a member of a board. 1-17 (3) "District" means a fire control, prevention, and 1-18 emergency medical services district created under this chapter. 1-19 Sec. 344.003. LIABILITY OF STATE. The state is not 1-20 obligated for the support, maintenance, or dissolution of a 1-21 district created under this chapter. 1-22 (Sections 344.004-344.050 reserved for expansion 1-23 SUBCHAPTER B. CREATION OF DISTRICT AND TEMPORARY BOARD 1-24 Sec. 344.051. AUTHORITY OF MUNICIPALITY TO PROPOSE DISTRICT. 2-1 (a) The governing body of a municipality with a population of more 2-2 than 100,000 may propose the creation of a fire control, 2-3 prevention, and emergency medical services district under this 2-4 chapter. 2-5 (b) The proposed district may include all or any part of the 2-6 municipality. 2-7 Sec. 344.052. TEMPORARY BOARD. (a) Not later than the 60th 2-8 day after the date the governing body proposes to create a district 2-9 under this chapter, the governing body shall appoint seven persons 2-10 to serve as temporary directors of the district. The temporary 2-11 directors must reside in the proposed district. 2-12 (b) Not later than the 75th day after the date the governing 2-13 body proposes to create the district, the temporary board shall 2-14 conduct a meeting to organize the board. The temporary directors 2-15 shall elect one of its members as presiding officer of the board at 2-16 that meeting. 2-17 (c) A temporary director other than the presiding officer 2-18 may designate another person to serve in the director's place. 2-19 (d) The governing body shall fill a vacancy in the office of 2-20 a temporary director in the same manner that it originally filled 2-21 the vacant position. 2-22 Sec. 344.053. ELECTION REQUIRED. A proposed district may be 2-23 created and a district tax may be authorized only if the creation 2-24 and the tax are approved by a majority of the qualified voters of 2-25 the proposed district voting at an election called and held for 2-26 that purpose. 2-27 Sec. 344.054. CONFIRMATION ELECTION ORDER. (a) The 3-1 temporary board may call and hold a confirmation election only 3-2 after the board adopts plans under Section 344.061. 3-3 (b) An order calling an election under Subsection (a) must 3-4 state: 3-5 (1) the nature of the election, including the 3-6 proposition that is to appear on the ballot; 3-7 (2) the date of the election; 3-8 (3) the hours during which the polls will be open; 3-9 (4) the location of the polling places; 3-10 (5) a summary of the proposed district's budget plan 3-11 and fire control, prevention, and emergency medical services plan; 3-12 and 3-13 (6) the proposed rate of the sales and use tax for the 3-14 district. 3-15 Sec. 344.055. SALES AND USE TAX. (a) A municipality that 3-16 creates a district shall adopt a sales and use tax under Section 3-17 321.106, Tax Code, for financing the operation of the district. 3-18 The proposed rate for the district sales and use tax imposed under 3-19 Subchapter B, Chapter 321, Tax Code, may be only: 3-20 (1) one-eighth of one percent; 3-21 (2) one-fourth of one percent; 3-22 (3) three-eighths of one percent; or 3-23 (4) one-half of one percent. 3-24 (b) A sales and use tax adopted under this chapter may be 3-25 charged in addition to any other sales and use tax authorized by 3-26 law and is not included in computing a combined sales and use tax 3-27 rate for purposes of any limitation provided by law on the maximum 4-1 combined sales and use tax rate of political subdivisions. 4-2 Sec. 344.056. NOTICE OF ELECTION. In addition to the notice 4-3 required by Section 4.003(c), Election Code, the temporary 4-4 directors of a proposed district shall give notice of an election 4-5 to create a district by publishing a substantial copy of the 4-6 election order in a newspaper with general circulation in the 4-7 proposed district once a week for two consecutive weeks. The first 4-8 publication must appear before the 35th day before the date set for 4-9 the election. 4-10 Sec. 344.057. ELECTION DATE. (a) The election shall be 4-11 held after the 34th day and before the 61st day after the date on 4-12 which the election is ordered. 4-13 (b) Section 41.001(a), Election Code, does not apply to a 4-14 confirmation election under this chapter. 4-15 Sec. 344.058. BALLOT PROPOSITION. The ballot for an 4-16 election to create a district shall be printed to permit voting for 4-17 or against the proposition: "The creation of the ______ (name of 4-18 the municipality proposing to create the district) Fire Control, 4-19 Prevention, and Emergency Medical Services District dedicated to 4-20 fire safety and emergency medical services programs and the 4-21 adoption of a proposed local sales and use tax at a rate of _______ 4-22 (rate specified in the election order)." 4-23 Sec. 344.059. CANVASSING RETURNS. (a) Not earlier than the 4-24 second day and not later than the 13th day after the date of the 4-25 election, the temporary board shall meet and canvass the returns of 4-26 the election. 4-27 (b) If a majority of the votes cast in the election favor 5-1 the creation of the district, the temporary board shall issue an 5-2 order declaring the district created. 5-3 (c) If less than a majority of the votes cast in the 5-4 election favor the creation of the district, the temporary board 5-5 may order another election on the matter not earlier than the first 5-6 anniversary of the date of the preceding election. 5-7 Sec. 344.060. DISSOLUTION OF TEMPORARY BOARD. If a district 5-8 has not been created under this chapter before the fifth 5-9 anniversary of the date a district is first proposed by the 5-10 governing body under Section 344.051: 5-11 (1) the temporary board is dissolved on that date; and 5-12 (2) the proposed district may not be created under 5-13 this chapter. 5-14 Sec. 344.061. FIRE CONTROL, PREVENTION, AND EMERGENCY 5-15 MEDICAL SERVICES PLAN AND BUDGET PLAN. (a) The temporary board 5-16 shall develop and adopt a two-year fire control, prevention, and 5-17 emergency medical services plan and a two-year budget plan. The 5-18 fire control, prevention, and emergency medical services plan must 5-19 include: 5-20 (1) a detailed list of the fire control, prevention, 5-21 and emergency medical services strategies to be supported by the 5-22 district; and 5-23 (2) the method of evaluating each year the 5-24 effectiveness and efficiency of individual fire control, 5-25 prevention, and emergency medical services strategies. 5-26 (b) The budget plan must include: 5-27 (1) the amount of money budgeted by the district for 6-1 each fire control, prevention, and emergency medical services 6-2 strategy; 6-3 (2) the amount of money budgeted by the district and 6-4 the percentage of the total budget of the district for 6-5 administration, with individual amounts showing the cost of the 6-6 administration that would be conducted by the district and the cost 6-7 of administration that would be conducted by private or public 6-8 entities; 6-9 (3) the estimated amount of money available to the 6-10 district from all sources during the subsequent year; 6-11 (4) the account balances expected at the end of the 6-12 years for which the budget is prepared; and 6-13 (5) the estimated tax rate that will be required to 6-14 support the budget. 6-15 (c) Plans under this section must be adopted in the same 6-16 manner as provided for adoption of a proposed annual budget under 6-17 Section 344.204. 6-18 (d) The temporary board shall coordinate its efforts in 6-19 developing its plans under this section with appropriate local 6-20 officials and entities. 6-21 Sec. 344.062. FINANCING CREATION OF DISTRICT. (a) A 6-22 municipality creating a district shall pay the entire cost of 6-23 creating the district. 6-24 (b) If a district is created, the district shall reimburse 6-25 the municipality for the actual expenses the municipality incurred 6-26 in the creation of the district. 6-27 (Sections 344.063-344.100 reserved for expansion 7-1 SUBCHAPTER C. ADMINISTRATION 7-2 Sec. 344.101. BOARD OF DIRECTORS. (a) Except as provided 7-3 by Subsections (f) and (g), a district is governed by a board of 7-4 seven directors appointed in the same manner as provided by Section 7-5 344.052(a) for the appointment of temporary directors. 7-6 (b) Initial appointees under this section shall draw lots to 7-7 determine their terms so that: 7-8 (1) three directors serve terms that expire on 7-9 September 1 of the first year following creation of the district; 7-10 and 7-11 (2) four directors serve terms that expire on 7-12 September 1 of the second year following creation of the district. 7-13 (c) Directors serve staggered two-year terms. 7-14 (d) A vacancy in the office of director shall be filled for 7-15 the unexpired term in the same manner that the vacant position was 7-16 originally filled. 7-17 (e) A member of the board is not liable for civil damages or 7-18 criminal prosecution for any act performed in good faith in the 7-19 execution of the member's duties as a director or for an action 7-20 taken by the board. 7-21 (f) The governing body of a municipality by resolution may 7-22 appoint the governing body's membership as the board of directors 7-23 of the district, if the appointment is approved by the voters in a 7-24 creation election or continuation referendum under this chapter. A 7-25 member of a governing body appointed under this section as an ex 7-26 officio director serves a term concurrent with the member's term as 7-27 a member of the governing body. 8-1 (g) In a district for which the governing body of the 8-2 municipality does not serve as the district's board of directors, 8-3 the governing body may create a board of directors for which one 8-4 director is appointed by each member of the governing body to serve 8-5 at the pleasure of that member for a term not to exceed two years 8-6 and that expires when the member of the governing body that 8-7 appointed the director leaves office. 8-8 Sec. 344.102. PERFORMANCE BOND. (a) Before assuming the 8-9 duties of the office, each director or officer must execute a bond 8-10 for $5,000 payable to the district, conditioned on the faithful 8-11 performance of the person's duties as director or officer. 8-12 (b) The bond shall be kept in the permanent records of the 8-13 district. 8-14 (c) The board may pay for the bonds of directors or officers 8-15 with district funds. 8-16 (d) The board and the district may issue and sell bonds 8-17 conditioned on the faithful performance of a person's duties as a 8-18 director as provided by this section. 8-19 Sec. 344.103. OFFICERS. (a) The board shall elect from 8-20 among its members a president and vice president. 8-21 (b) The board shall appoint a secretary. The secretary may 8-22 be a director. 8-23 (c) The person who performs the duties of auditor for the 8-24 municipality shall serve as treasurer of the district. 8-25 (d) Each officer of the board serves for a term of one year. 8-26 (e) A vacancy in a board office shall be filled by the board 8-27 for the unexpired term. 9-1 Sec. 344.104. COMPENSATION. A director or officer serves 9-2 without compensation, but a director or officer may be reimbursed 9-3 for actual expenses incurred in the performance of official duties. 9-4 Those expenses must be reported in the district's minute book or 9-5 other district record and must be approved by the board. 9-6 Sec. 344.105. VOTING REQUIREMENT. A concurrence of a 9-7 majority of the members of the board is necessary in matters 9-8 relating to the business of a district. A two-thirds majority vote 9-9 of the board is required to reject any application for funding 9-10 available under this chapter. 9-11 Sec. 344.106. CONTRACT FOR ADMINISTRATIVE ASSISTANCE. The 9-12 board may contract with a public agency or private vendor to assist 9-13 the board in the administration or management of the district or to 9-14 assist the board in the review of applications for funding 9-15 available under this chapter. 9-16 (Sections 344.107-344.150 reserved for expansion 9-17 SUBCHAPTER D. POWERS AND DUTIES 9-18 Sec. 344.151. FINANCING DISTRICT PROGRAMS. (a) The 9-19 district may finance all costs of a fire control, prevention, and 9-20 emergency medical services district program, including costs for 9-21 personnel, administration, expansion, enhancement, and capital 9-22 expenditures. 9-23 (b) The program may include: 9-24 (1) fire apparatus and equipment; 9-25 (2) a bomb disposal unit and related equipment; 9-26 (3) compensation of fire protection and prevention 9-27 personnel for specialized training regarding: 10-1 (A) arson; 10-2 (B) bomb disposal; 10-3 (C) hazardous materials; 10-4 (D) technical rescue; 10-5 (E) paramedic certification; and 10-6 (F) any other specialized training under the 10-7 program; 10-8 (4) funding for turn-out gear, self-contained 10-9 breathing apparatus, and protective uniforms or other firefighter 10-10 safety equipment; 10-11 (5) additional compensation for municipal 10-12 fire-fighting personnel, including overtime compensation for 10-13 unforeseen staffing needs; and 10-14 (6) funding for the construction and maintenance of 10-15 fire stations, training facilities, or the equipment needed for 10-16 those stations or facilities. 10-17 (c) The program may include an enhanced emergency 10-18 communications center or other emergency communications programs 10-19 and equipment, including: 10-20 (1) emergency medical dispatch training; 10-21 (2) additional fire and emergency medical service 10-22 dispatchers; 10-23 (3) uniformed fire deployment and communications 10-24 officers; 10-25 (4) real-time weather information; and 10-26 (5) computer databases and systems maintenance 10-27 personnel for hazardous materials responses. 11-1 (d) The program may include a public training program, 11-2 including: 11-3 (1) a juvenile fire starter program; 11-4 (2) an urban survival program, including school 11-5 programs for fire safety, gun safety, and safety with strangers; 11-6 (3) a fire prevention program; 11-7 (4) a fire education program; 11-8 (5) a hazardous materials education program; 11-9 (6) a psychological intervention program; and 11-10 (7) a citizen's ride-along program or home inspection 11-11 program. 11-12 (e) The program may include public preventive health 11-13 programs, including: 11-14 (1) juvenile inoculations; 11-15 (2) weekend health days; 11-16 (3) first aid and cardiopulmonary resuscitation 11-17 training; 11-18 (4) injury prevention; and 11-19 (5) drug and alcohol awareness. 11-20 (f) The program may include response training programs, 11-21 equipment, facilities, and instructors, including: 11-22 (1) a regional training center for fire, rescue, 11-23 hazardous materials, and emergency medical service; 11-24 (2) staff personnel to support the center; 11-25 (3) equipment and apparatus to support the center; 11-26 (4) computer-aided continuing education training 11-27 conducted in-station; and 12-1 (5) training regarding hazardous material storage and 12-2 response. 12-3 (g) The program may include computers and other systems to 12-4 support information management systems to: 12-5 (1) maintain occupancy information; 12-6 (2) track incident analyses; 12-7 (3) track incident reports; 12-8 (4) track internal communications and reporting; 12-9 (5) maintain inventory; and 12-10 (6) serve other information management needs. 12-11 (h) The program may include capital items needed to improve 12-12 emergency response and increase service efficiency, including 12-13 equipment, apparatus, vehicles, and training material or equipment. 12-14 Sec. 344.152. COORDINATION; EVALUATION; GRANTS. (a) The 12-15 district shall coordinate its efforts with local agencies in 12-16 developing its fire control, prevention, and emergency medical 12-17 services program. 12-18 (b) The district shall conduct an annual evaluation program 12-19 to study the impact, efficiency, and effectiveness of new or 12-20 expanded fire control, prevention, and emergency medical services 12-21 programs. 12-22 (c) The board may seek the assistance of the Office of 12-23 State-Federal Relations in identifying and applying for federal 12-24 grants for fire control, prevention, and emergency medical services 12-25 programs. 12-26 (d) The district may apply for and receive grants for fire 12-27 control, prevention, and emergency medical services programs from a 13-1 state or federal agency. 13-2 Sec. 344.153. GENERAL BOARD POWER OVER FUNDS. The board 13-3 shall manage, control, and administer the district finances except 13-4 as provided by Section 344.205. 13-5 Sec. 344.154. USE OF REVENUE. The board may spend revenue 13-6 derived from the sales and use tax distributed under Section 13-7 321.106, Tax Code, only for a purpose authorized by Section 13-8 344.151. 13-9 Sec. 344.155. RULES AND PROCEDURES. (a) A board may adopt 13-10 rules governing programs financed by the district and the functions 13-11 of district staff. 13-12 (b) The board may prescribe accounting and control 13-13 procedures for the district. 13-14 (c) The board is subject to Chapter 2001, Government Code. 13-15 Sec. 344.156. PURCHASING. (a) Except as provided by 13-16 Subsection (b), the board may prescribe the method of making 13-17 purchases and expenditures by and for the district. 13-18 (b) To the extent competitive bidding procedures in Title 8 13-19 apply, the board may not enter into a purchasing contract for more 13-20 than $15,000 unless the board complies with Chapter 252. 13-21 (c) If the municipality that created the district has a 13-22 purchasing agent authorized by law, that agent shall serve as 13-23 purchasing agent for the district. 13-24 Sec. 344.157. PROPERTY TO BE USED IN ADMINISTRATION. The 13-25 board may lease or acquire in another manner facilities, equipment, 13-26 or other property for the sole purpose of administering the 13-27 district. 14-1 Sec. 344.158. REIMBURSEMENT FOR SERVICES. (a) A county or 14-2 municipality located outside the boundaries of a district on the 14-3 district's request shall reimburse the district for the district's 14-4 cost of including a resident of that county or municipality who is 14-5 not a resident of that district in a district program. 14-6 (b) On behalf of the district, the board may contract with a 14-7 municipal or county government or with the state or federal 14-8 government for the municipal, county, state, or federal government 14-9 to reimburse the district for including a person in a district 14-10 program. 14-11 Sec. 344.159. SERVICE CONTRACTS. The board may contract 14-12 with the following entities to furnish the staff, facilities, 14-13 equipment, programs, or services the board considers necessary for 14-14 the effective operation of the district: 14-15 (1) a municipality, county, special district, or other 14-16 political subdivision of the state; 14-17 (2) a state or federal agency; 14-18 (3) an individual; or 14-19 (4) a private person. 14-20 Sec. 344.160. DONATIONS, GIFTS, AND ENDOWMENTS. On behalf 14-21 of the district, the board or the temporary board may accept a 14-22 donation, gift, or endowment. The district may hold a donation, 14-23 gift, or endowment in trust for any purpose and under any 14-24 direction, limitation, or other provision prescribed in writing by 14-25 the donor that is consistent with this chapter and the proper 14-26 management of the district. 14-27 Sec. 344.161. AUTHORITY TO SUE AND BE SUED. The board may 15-1 sue and be sued in the name of the district. 15-2 (Sections 344.162-344.200 reserved for expansion 15-3 SUBCHAPTER E. DISTRICT FINANCES 15-4 Sec. 344.201. FISCAL YEAR. (a) The board shall establish 15-5 the fiscal year for the district, and the district shall operate on 15-6 the basis of that year. 15-7 (b) The fiscal year may not be changed more than once in a 15-8 24-month period. 15-9 Sec. 344.202. AUDITS AND DISTRICT RECORDS. (a) The board 15-10 shall have an annual audit made of the financial condition of the 15-11 district by an independent auditor. 15-12 (b) The annual audit and other district records shall be 15-13 open to inspection during regular business hours at the principal 15-14 office of the district. 15-15 Sec. 344.203. ANNUAL BUDGET PROPOSAL. (a) The board shall 15-16 propose an annual budget. The board shall consider the 15-17 applications for program funding in preparing the proposed budget. 15-18 (b) The proposed budget must contain a complete financial 15-19 statement, including a statement of: 15-20 (1) the outstanding obligations of the district; 15-21 (2) the amount of cash on hand to the credit of each 15-22 fund of the district; 15-23 (3) the amount of money received by the district from 15-24 all sources during the previous year; 15-25 (4) the estimated amount of money available to the 15-26 district from all sources during the current fiscal year; 15-27 (5) the amount of money needed to fund programs 16-1 approved for funding by the board; 16-2 (6) the amount of money requested for programs that 16-3 were not approved for funding by the board; 16-4 (7) the tax rate for the next fiscal year; 16-5 (8) the amount of the balances expected at the end of 16-6 the year in which the budget is being prepared; and 16-7 (9) the estimated amount of revenues and balances 16-8 available to cover the proposed budget. 16-9 Sec. 344.204. ADOPTION OF BUDGET. (a) Not later than the 16-10 100th day before the date each fiscal year begins, the board shall 16-11 hold a public hearing to consider the proposed annual budget. 16-12 (b) The board shall publish notice of the hearing in a 16-13 newspaper with general circulation in the district not later than 16-14 the 10th day before the date of the hearing. 16-15 (c) A resident of the district is entitled to participate in 16-16 the hearing. 16-17 (d) Not later than the 80th day before the date each fiscal 16-18 year begins, the board shall adopt a budget. The board may make 16-19 any changes in the proposed budget that the interests of the 16-20 taxpayers demand. 16-21 (e) Not later than the 10th day after the date the budget is 16-22 adopted, the board shall submit the budget to the governing body of 16-23 the municipality that created the district. 16-24 (f) The board by rule may adopt alternative procedures for 16-25 adopting a budget that differ from the procedures outlined in this 16-26 subchapter. The board must hold at least one public hearing 16-27 related to the alternative procedures before their adoption. 17-1 Sec. 344.205. APPROVAL OF BUDGET. (a) Not later than the 17-2 45th day before the date each fiscal year begins, the governing 17-3 body of the municipality that created the district shall hold a 17-4 public hearing to consider the budget adopted by the board and 17-5 submitted to the governing body. 17-6 (b) The governing body must publish notice of the hearing in 17-7 a newspaper with general circulation in the district not later than 17-8 the 10th day before the date of the hearing. 17-9 (c) A resident of the district is entitled to participate in 17-10 the hearing. 17-11 (d) Not later than the 30th day before the date the fiscal 17-12 year begins, the governing body shall approve or reject the budget 17-13 submitted by the board. The governing body may not amend the 17-14 budget. 17-15 (e) If the governing body rejects the budget submitted by 17-16 the board, the governing body and the board shall meet and together 17-17 amend and approve the budget before the beginning of the fiscal 17-18 year. 17-19 (f) The budget may be amended after the beginning of the 17-20 fiscal year on approval by the board and the governing body. 17-21 Sec. 344.206. LIMITATIONS ON EXPENDITURES AND INVESTMENTS. 17-22 (a) The district may spend money only for an expense included in 17-23 the annual budget or an amendment to the budget. 17-24 (b) A district may not incur a debt payable from revenues of 17-25 the district other than the revenues on hand or to be on hand in 17-26 the current or immediately following fiscal year of the district. 17-27 (c) The board may not invest district money in funds or 18-1 securities other than those specified by Chapter 2256, Government 18-2 Code. 18-3 Sec. 344.207. ACCOUNT OF DISBURSEMENTS OF DISTRICT. Not 18-4 later than the 60th day after the last day of each fiscal year, an 18-5 administrator shall prepare for the board a sworn statement of the 18-6 amount of money that belongs to the district and an account of the 18-7 disbursements of that money. 18-8 Sec. 344.208. DEPOSIT OF MONEY. (a) The board shall 18-9 deposit district money in a special account in the treasury of the 18-10 municipality that created the district. 18-11 (b) District money, other than that invested as provided by 18-12 Section 344.206(c), shall be deposited as received in the treasury 18-13 of the municipality and must remain on deposit. 18-14 (c) The board shall reimburse the municipality for any 18-15 costs, other than personnel costs, the municipality incurs for 18-16 performing the duties under this section. 18-17 Sec. 344.209. APPLICATIONS FOR PROGRAM FUNDING. (a) An 18-18 officer of the municipality that created the district or the head 18-19 of a department of that municipality may, with the consent of the 18-20 governing body of the municipality, apply to the board for funding 18-21 of a program described by Section 344.151. 18-22 (b) The officer must apply under this section not later than 18-23 the 140th day before the date the fiscal year begins, unless the 18-24 board by rule has adopted an exception. 18-25 (c) The board by rule may adopt application procedures. 18-26 Sec. 344.210. BONDS PROHIBITED. The board may not issue or 18-27 sell general obligation bonds, revenue bonds, or refunding bonds. 19-1 (Sections 344.211-344.250 reserved for expansion 19-2 SUBCHAPTER F. REFERENDUM ON CONTINUATION OR DISSOLUTION OF DISTRICT 19-3 Sec. 344.251. REFERENDUM AUTHORIZED. (a) The board may 19-4 call and hold a referendum election on the question of whether to: 19-5 (1) continue the district; or 19-6 (2) dissolve the district. 19-7 (b) A board may order a referendum election on its own 19-8 motion. 19-9 (c) The board shall order a referendum election: 19-10 (1) on receipt of a petition that requests 19-11 continuation or dissolution of the district and complies with the 19-12 requirements of Sections 344.252-344.256; or 19-13 (2) if the governing body of the municipality that 19-14 created the district, after notice and a public hearing on the 19-15 matter, by resolution requests a referendum on continuation or 19-16 dissolution. 19-17 (d) The board may not hold a referendum election under this 19-18 subchapter before the fifth anniversary of the date the district 19-19 was created or before the third anniversary of the date of the last 19-20 continuation or dissolution referendum election. 19-21 (e) For a continuation referendum election, the ballot shall 19-22 be printed to permit voting for or against the proposition: 19-23 "Whether the ____________ (name of the municipality that created 19-24 the district) Fire Control, Prevention, and Emergency Medical 19-25 Services District should be continued and whether the fire control, 19-26 prevention, and emergency medical services district sales and use 19-27 tax should be continued." 20-1 (f) For a dissolution referendum, the ballot shall be 20-2 printed to permit voting for or against the proposition: "Whether 20-3 the ____________ (name of the municipality that created the 20-4 district) Fire Control, Prevention, and Emergency Medical Services 20-5 District should be dissolved and whether the fire control, 20-6 prevention, and emergency medical services district sales and use 20-7 tax should be abolished." 20-8 (g) The governing body of a municipality that creates a 20-9 district under this chapter may specify the number of years for 20-10 which the district should be continued. The board or the governing 20-11 body of a municipality may continue a district for 5, 10, 15, or 20 20-12 years. For a continuation referendum election under this 20-13 subsection, the ballot shall be printed to permit voting for or 20-14 against the proposition: "Whether the ______ (name of the 20-15 municipality that created the district) Fire Control, Prevention, 20-16 and Emergency Medical Services District should be continued for 20-17 ______ years and whether the fire control, prevention, and 20-18 emergency medical services district sales and use tax should be 20-19 continued for _____ years." 20-20 Sec. 344.252. APPLICATION FOR PETITION. (a) On written 20-21 application of 10 or more registered voters of the district, the 20-22 clerk of the municipality that created the district shall issue to 20-23 the applicants a petition to be circulated among registered voters 20-24 for their signatures. 20-25 (b) An application for a petition to continue the district 20-26 must contain: 20-27 (1) the heading: "Application for a Petition for a 21-1 Local Option Referendum to Continue the Fire Control, Prevention, 21-2 and Emergency Medical Services District and to Continue the Fire 21-3 Control, Prevention, and Emergency Medical Services District Sales 21-4 and Use Tax"; 21-5 (2) the statement: "Whether the ______ (name of the 21-6 municipality that created the district) Fire Control, Prevention, 21-7 and Emergency Medical Services District should be continued and 21-8 whether the fire control, prevention, and emergency medical 21-9 services district sales and use tax should be continued"; 21-10 (3) immediately above the signatures of the 21-11 applicants, the statement: "It is the purpose and intent of the 21-12 applicants whose signatures appear below that the fire control, 21-13 prevention, and emergency medical services district be continued 21-14 and that the fire control, prevention, and emergency medical 21-15 services district sales and use tax in ___________ (name of the 21-16 municipality that created the district) be continued"; and 21-17 (4) the printed name, signature, residence address, 21-18 and voter registration certificate number of each applicant. 21-19 (c) An application for a petition to dissolve the district 21-20 must contain: 21-21 (1) the heading: "Application for a Petition for a 21-22 Local Option Referendum to Dissolve the Fire Control, Prevention, 21-23 and Emergency Medical Services District and to Abolish the Fire 21-24 Control, Prevention, and Emergency Medical Services District Sales 21-25 and Use Tax"; 21-26 (2) the statement: "Whether the ___________ (name of 21-27 the municipality that created the district) Fire Control, 22-1 Prevention, and Emergency Medical Services District should be 22-2 dissolved and whether the fire control, prevention, and emergency 22-3 medical services district sales and use tax should be abolished"; 22-4 (3) immediately above the signatures of the 22-5 applicants, the statement: "It is the purpose and intent of the 22-6 applicants whose signatures appear below that the fire control, 22-7 prevention, and emergency medical services district be dissolved 22-8 and that the fire control, prevention, and emergency medical 22-9 services district sales and use tax in ___________ (name of the 22-10 municipality that created the district) be abolished"; and 22-11 (4) the printed name, signature, residence address, 22-12 and voter registration certificate number of each applicant. 22-13 Sec. 344.253. PETITION. (a) A petition for a referendum to 22-14 continue a district must contain: 22-15 (1) the heading: "Petition for a Local Option 22-16 Referendum to Continue the ____________ (name of the municipality 22-17 that created the district) Fire Control, Prevention, and Emergency 22-18 Medical Services District and to Continue the Fire Control, 22-19 Prevention, and Emergency Medical Services District Sales and Use 22-20 Tax"; 22-21 (2) a statement of the issue to be voted on in the 22-22 same words used in the application; 22-23 (3) immediately above the signatures of the 22-24 petitioners, the statement: "It is the purpose and intent of the 22-25 petitioners whose signatures appear below that the fire control, 22-26 prevention, and emergency medical services district be continued 22-27 and that the fire control, prevention, and emergency medical 23-1 services district sales and use tax in ___________ (name of the 23-2 municipality that created the district) be continued"; 23-3 (4) lines and spaces for the names, signatures, 23-4 residence addresses, and voter registration certificate numbers of 23-5 the petitioners; and 23-6 (5) the date of issuance, the serial number, and the 23-7 seal of the clerk of the municipality on each page. 23-8 (b) A petition for a referendum to dissolve a district must 23-9 contain: 23-10 (1) the heading: "Petition for a Local Option 23-11 Referendum to Dissolve the __________ (name of the municipality 23-12 that created the district) Fire Control, Prevention, and Emergency 23-13 Medical Services District and to Abolish the Fire Control, 23-14 Prevention, and Emergency Medical Services District Sales and Use 23-15 Tax"; 23-16 (2) a statement of the issue to be voted on in the 23-17 same words used in the application; 23-18 (3) immediately above the signatures of the 23-19 petitioners, the statement: "It is the purpose and intent of the 23-20 petitioners whose signatures appear below that the fire control, 23-21 prevention, and emergency medical services district be dissolved 23-22 and that the fire control, prevention, and emergency medical 23-23 services district sales and use tax in ___________ (name of the 23-24 municipality that created the district) be abolished"; 23-25 (4) lines and spaces for the names, signatures, 23-26 residence addresses, and voter registration certificate numbers of 23-27 the petitioners; and 24-1 (5) the date of issuance, the serial number, and the 24-2 seal of the clerk of the municipality on each page. 24-3 Sec. 344.254. COPIES OF APPLICATION AND PETITION. The clerk 24-4 or secretary of the municipality shall keep an application and a 24-5 copy of the petition in the files of the clerk's or secretary's 24-6 office. The clerk shall issue to the applicants as many copies as 24-7 they request. 24-8 Sec. 344.255. FILING OF PETITION. To form the basis for the 24-9 ordering of a referendum, the petition must: 24-10 (1) be filed with the clerk or secretary of the 24-11 municipality not later than the 60th day after the date of its 24-12 issuance; and 24-13 (2) contain at least a number of signatures of 24-14 registered voters of the municipality equal to five percent of the 24-15 number of votes cast in the municipality for all candidates for 24-16 governor in the most recent gubernatorial general election. 24-17 Sec. 344.256. REVIEW BY CLERK OR SECRETARY. (a) The clerk 24-18 or secretary of the municipality shall, on the request of any 24-19 person, check each name on a petition to determine whether the 24-20 signer is a registered voter of the district. A person requesting 24-21 verification by the clerk or secretary of the municipality shall 24-22 pay the clerk or secretary a sum equal to 20 cents for each name on 24-23 the petition before the verification begins. 24-24 (b) The clerk or secretary of the municipality may not count 24-25 a signature if the clerk or secretary has a reason to believe that: 24-26 (1) it is not the actual signature of the purported 24-27 signer; 25-1 (2) the voter registration certificate number is not 25-2 correct; 25-3 (3) it is a duplication either of a name or of 25-4 handwriting used in any other signature on the petition; 25-5 (4) the residence address of the signer is not 25-6 correct; or 25-7 (5) the name of the voter is not signed exactly as it 25-8 appears on the official copy of the current list of registered 25-9 voters for the voting year in which the petition is issued. 25-10 Sec. 344.257. CERTIFICATION. Not later than the 40th day 25-11 after the date a petition is filed, excluding Saturdays, Sundays, 25-12 and legal holidays, the clerk or secretary of the municipality 25-13 shall certify to the board the number of registered voters signing 25-14 the petition. 25-15 Sec. 344.258. ELECTION ORDER. (a) The board shall record 25-16 on its minutes the date the petition is filed and the date it is 25-17 certified by the clerk or secretary of the municipality. 25-18 (b) If the petition contains the required number of 25-19 signatures and is in proper order, the board shall, at its next 25-20 regular session after the certification by the clerk or secretary 25-21 of the municipality, order a referendum election to be held at the 25-22 regular polling place in each election precinct in the municipality 25-23 on the next uniform election date authorized by Section 41.001(a), 25-24 Election Code, that occurs at least 20 days after the date of the 25-25 order. 25-26 (c) The board shall state in the order the proposition to be 25-27 voted on in the referendum election. The order is prima facie 26-1 evidence of compliance with all provisions necessary to give it 26-2 validity. 26-3 Sec. 344.259. APPLICABILITY OF ELECTION CODE. A referendum 26-4 election authorized by this subchapter shall be held and the 26-5 returns shall be prepared and canvassed in conformity with the 26-6 Election Code. 26-7 Sec. 344.260. RESULTS OF REFERENDUM. (a) If less than a 26-8 majority of the votes cast in a continuation referendum election 26-9 are for the continuation of a district or if a majority of the 26-10 votes cast in a dissolution referendum are for dissolution of the 26-11 district: 26-12 (1) the board shall certify that fact to the secretary 26-13 of state not later than the 10th day after the date of the canvass 26-14 of the returns; and 26-15 (2) the district is dissolved and ceases to operate. 26-16 (b) If a majority of the votes cast in a continuation 26-17 referendum election are for the continuation of the district or if 26-18 less than a majority of the votes cast in a dissolution referendum 26-19 election are for dissolution of the district, another referendum 26-20 may not be held except as authorized by Section 344.251. 26-21 Sec. 344.261. ELECTION CONTEST. Not later than the 30th day 26-22 after the date the result of a referendum is declared, any 26-23 qualified voter of the district may contest the election by filing 26-24 a petition in a district court located in the district. 26-25 (Sections 344.262-344.300 reserved for expansion 26-26 SUBCHAPTER G. DISTRICT DISSOLUTION 26-27 Sec. 344.301. TIME FOR DISSOLUTION OF DISTRICT. (a) A 27-1 district is dissolved five years after the date the municipality 27-2 began to impose taxes for district purposes if the district has not 27-3 held a continuation or dissolution referendum. 27-4 (b) The district is dissolved on the fifth anniversary of 27-5 the date of the most recent continuation or dissolution referendum. 27-6 (c) Subsection (b) does not apply to a district that is 27-7 continued under Section 344.251(g) of this chapter, and that 27-8 district is dissolved on the expiration of the period for which it 27-9 was continued. 27-10 Sec. 344.302. DISSOLUTION OF DISTRICT. (a) On the date 27-11 that the district is dissolved, the district shall convey or 27-12 transfer, as provided by Subsection (h): 27-13 (1) title to land, buildings, real and tangible 27-14 improvements, and equipment owned by the district; 27-15 (2) operating money and reserves for operating 27-16 expenses and money that has been budgeted by the district for the 27-17 remainder of the fiscal year in which the district is dissolved to 27-18 support fire control, prevention and emergency medical services 27-19 activities and programs for residents of the municipality that 27-20 created the district; 27-21 (3) taxes imposed for the district during the current 27-22 year for fire control, prevention, and emergency medical services 27-23 purposes; 27-24 (4) each fund established for payment of indebtedness 27-25 assumed by the district; and 27-26 (5) any money accumulated in an employee retirement 27-27 fund. 28-1 (b) After the date the district is dissolved, taxes may not 28-2 be imposed for district purposes or for providing fire control, 28-3 prevention, and emergency medical services activities and programs 28-4 for the residents of the district. 28-5 (c) If on the date that the district is dissolved the 28-6 district has outstanding short-term or long-term liabilities, the 28-7 board shall, not later than the 30th day after the date of the 28-8 dissolution, adopt a resolution certifying each outstanding 28-9 short-term and long-term liability. The municipality that created 28-10 the district shall assume the outstanding short-term and long-term 28-11 liabilities. The municipality shall collect the sales and use tax 28-12 under Chapter 321, Tax Code, for the remainder of the calendar year 28-13 and may by resolution of its governing body continue to collect the 28-14 tax for an additional calendar year if the revenue from the tax is 28-15 needed to retire liabilities of the district that were assumed by 28-16 the municipality. The governing body shall notify the comptroller 28-17 of this continuation not later than the 60th day before the date 28-18 the tax would otherwise expire. A tax collected after the 28-19 liabilities have been retired shall be transferred or conveyed as 28-20 provided by Subsection (a). 28-21 (d) The district and the board may continue to operate for a 28-22 period not to exceed two months after carrying out the 28-23 responsibilities required by Subsections (a) and (c). The board 28-24 and the district are continued for the purpose of satisfying these 28-25 responsibilities. 28-26 (e) If the board and the district are continued under 28-27 Subsection (d), the board and district are dissolved entirely on 29-1 the first day of the month following the month in which the board 29-2 issues an order certifying to the secretary of state that the 29-3 responsibilities of Subsections (a) and (c) are satisfied. 29-4 (f) A district or board that continues to operate under 29-5 Subsection (d) may not incur any new liabilities without the 29-6 approval of the governing body of the municipality that created the 29-7 district. Not later than the 60th day after the date of the 29-8 dissolution referendum, the governing body shall review the 29-9 outstanding liabilities of the district and set a specific date by 29-10 which the municipality must retire the district's outstanding 29-11 liabilities. 29-12 (g) On the date that the district is dissolved, programs 29-13 funded by the district shall immediately terminate and personnel 29-14 paid from district funds, except personnel required to retire the 29-15 responsibilities of the district, are terminated. 29-16 (h) The board shall convey or transfer the value of the 29-17 items described by Subsection (a) to the municipality that created 29-18 the district. 29-19 SECTION 2. Subchapter B, Chapter 321, Tax Code, is amended 29-20 by adding Section 321.106 to read as follows: 29-21 Sec. 321.106. FIRE CONTROL DISTRICT TAX. (a) Subject to an 29-22 election held in accordance with Chapter 344, Local Government 29-23 Code, a municipality in which a fire control, prevention, and 29-24 emergency medical services district is established shall adopt a 29-25 sales and use tax in the area of the district for the purpose of 29-26 financing the operation of the fire control, prevention, and 29-27 emergency medical services district. The revenue from the tax may 30-1 be used only for the purpose of financing the operation of the fire 30-2 control, prevention, and emergency medical services district. The 30-3 proposition for adopting a tax under this section and the 30-4 proposition for creation of a fire control, prevention, and 30-5 emergency medical services district shall be submitted at the same 30-6 election. For purposes of Section 321.101, a tax under this 30-7 section is not an additional sales and use tax. 30-8 (b) A tax adopted for a district under this section for 30-9 financing the operation of the district may be decreased in 30-10 increments of one-eighth of one percent by order of the board of 30-11 directors of the district. 30-12 (c) The rate of a tax adopted for a district under this 30-13 section may be increased in increments of one-eighth of one 30-14 percent, not to exceed a total tax rate of one-half percent, for 30-15 financing the operation of the fire control, prevention, and 30-16 emergency medical services district by order of the board of 30-17 directors of the fire control, prevention, and emergency medical 30-18 services district if approved by a majority of the qualified voters 30-19 voting at an election called by the board and held in the district 30-20 on the question of increasing the tax rate. At the election, the 30-21 ballot shall be printed to provide for voting for or against the 30-22 proposition: "The increase of the __________ (name of the 30-23 municipality that created the district) Fire Control, Prevention, 30-24 and Emergency Medical Services District sales and use tax rate to 30-25 ______ percent." If there is an increase or decrease under this 30-26 section in the rate of a tax imposed under this section, the new 30-27 rate takes effect on the first day of the next calendar quarter 31-1 after the expiration of one calendar quarter after the comptroller 31-2 receives notice of the increase or decrease. However, if the 31-3 comptroller notifies the president of the board of directors of the 31-4 district in writing within 10 days after receipt of the 31-5 notification that the comptroller requires more time to implement 31-6 reporting and collection procedures, the comptroller may delay 31-7 implementation of the rate change for one calendar quarter, and the 31-8 new rate takes effect on the first day of the calendar quarter that 31-9 follows the elapsed quarter. 31-10 (d) The comptroller shall remit to the municipality amounts 31-11 collected at the rate imposed under this section as part of the 31-12 regular allocation of other municipal tax revenue collected by the 31-13 comptroller. The municipality shall remit that amount to the 31-14 district. A retailer may not be required to use allocation and 31-15 reporting procedures in the collection of taxes under this section 31-16 that are different from the procedures that retailers use in the 31-17 collection of other sales and use taxes under this chapter. An 31-18 item, transaction, or service that is taxable in a municipality 31-19 under a sales or use tax authorized by another section of this 31-20 chapter is taxable under this section. An item, transaction, or 31-21 service that is not taxable in a municipality under a sales or use 31-22 tax authorized by another section of this chapter is not taxable 31-23 under this section. 31-24 (e) If, in a municipality where a fire control, prevention, 31-25 and emergency medical services district is composed of the whole 31-26 municipality, a municipal sales and use tax or a municipal sales 31-27 and use tax rate increase for the purpose of financing a fire 32-1 control, prevention, and emergency medical services district is 32-2 approved, the municipality is responsible for distributing to the 32-3 district that portion of the municipal sales and use tax revenue 32-4 received from the comptroller that is to be used for the purposes 32-5 of financing the fire control, prevention, and emergency medical 32-6 services district. Not later than the 10th day after the date the 32-7 municipality receives money under this section from the 32-8 comptroller, the municipality shall make the distribution in the 32-9 proportion that the fire control, prevention, and emergency medical 32-10 services portion of the tax rate bears to the total sales and use 32-11 tax rate of the municipality. The amounts distributed to a fire 32-12 control, prevention, and emergency medical services district are 32-13 not considered to be sales and use tax revenue for the purpose of 32-14 property tax reduction and computation of the municipal tax rate 32-15 under Section 26.041, Tax Code. 32-16 (f) For purposes of the tax imposed under this section, a 32-17 reference in this chapter to the municipality as the territory in 32-18 which the tax or an incident of the tax applies means only the 32-19 territory located in the fire control, prevention, and emergency 32-20 medical services district, if that district is composed of an area 32-21 less than an entire municipality. 32-22 (g) The comptroller may adopt rules and the municipality's 32-23 governing body may adopt orders to administer this section. 32-24 SECTION 3. This Act takes effect June 1, 2001.