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.