1-1 By: Luna, Seaman (Senate Sponsor - Gallegos) H.B. No. 1096 1-2 (In the Senate - Received from the House May 4, 2001; 1-3 May 7, 2001, read first time and referred to Committee on 1-4 Intergovernmental Relations; May 11, 2001, reported favorably by 1-5 the following vote: Yeas 5, Nays 0; May 11, 2001, sent to 1-6 printer.) 1-7 A BILL TO BE ENTITLED 1-8 AN ACT 1-9 relating to the creation of fire control, prevention, and emergency 1-10 medical services districts by certain municipalities. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subtitle A, Title 11, Local Government Code, is 1-13 amended by adding Chapter 344 to read as follows: 1-14 CHAPTER 344. FIRE CONTROL, PREVENTION, AND EMERGENCY MEDICAL 1-15 SERVICES DISTRICTS 1-16 SUBCHAPTER A. GENERAL PROVISIONS 1-17 Sec. 344.001. SHORT TITLE. This chapter may be cited as the 1-18 Fire Control, Prevention, and Emergency Medical Services District 1-19 Act. 1-20 Sec. 344.002. DEFINITIONS. In this chapter: 1-21 (1) "Board" means the board of directors of a 1-22 district. 1-23 (2) "Director" means a member of a board. 1-24 (3) "District" means a fire control, prevention, and 1-25 emergency medical services district created under this chapter. 1-26 Sec. 344.003. LIABILITY OF STATE. The state is not 1-27 obligated for the support, maintenance, or dissolution of a 1-28 district created under this chapter. 1-29 (Sections 344.004-344.050 reserved for expansion 1-30 SUBCHAPTER B. CREATION OF DISTRICT AND TEMPORARY BOARD 1-31 Sec. 344.051. AUTHORITY OF MUNICIPALITY TO PROPOSE DISTRICT. 1-32 (a) The governing body of a municipality with a population of not 1-33 less than 25,000 nor more than 550,000 may propose the creation of 1-34 a fire control, prevention, and emergency medical services district 1-35 under this chapter. 1-36 (b) The proposed district may include all or any part of the 1-37 municipality. 1-38 (c) Except as provided by Subsection (f), a district may be 1-39 created inside the boundaries of a rural fire prevention district 1-40 operating under Chapter 794, Health and Safety Code, or an 1-41 emergency services district operating under Chapter 775 or 776, 1-42 Health and Safety Code, only if the governing body of the rural 1-43 fire prevention district or the emergency services district gives 1-44 its written consent by order or resolution not later than the 60th 1-45 day after the date the governing body receives a request for its 1-46 consent. 1-47 (d) If the governing body of the rural fire prevention 1-48 district or emergency services district consents to the inclusion 1-49 of territory inside its geographic boundaries, the territory may be 1-50 included in the district in the same manner as other territory is 1-51 included under this chapter. 1-52 (e) The consent of the governing body of the rural fire 1-53 prevention district or emergency services district to include 1-54 territory in the district and to initiate proceedings to create a 1-55 district as prescribed by this chapter expires six months after the 1-56 date on which the consent is given. 1-57 (f) Subsection (c) does not apply if: 1-58 (1) on the effective date of this chapter, the 1-59 municipality is providing fire suppression and prevention services 1-60 and emergency medical services; or 1-61 (2) the fire control, prevention, and emergency 1-62 medical services plan of the proposed district proposes emergency 1-63 services that, on the effective date of this chapter, are not 1-64 provided by any rural fire prevention district or emergency 2-1 services district inside the boundaries of the municipality. 2-2 Sec. 344.052. TEMPORARY BOARD. (a) Not later than the 60th 2-3 day after the date the governing body proposes to create a district 2-4 under this chapter, the governing body shall appoint seven persons 2-5 to serve as temporary directors of the district. The temporary 2-6 directors must reside in the proposed district. 2-7 (b) Not later than the 75th day after the date the governing 2-8 body proposes to create the district, the temporary board shall 2-9 conduct a meeting to organize the board. The temporary directors 2-10 shall elect one of its members as presiding officer of the board at 2-11 that meeting. 2-12 (c) A temporary director other than the presiding officer 2-13 may designate another person to serve in the director's place. 2-14 (d) The governing body shall fill a vacancy in the office of 2-15 a temporary director in the same manner that it originally filled 2-16 the vacant position. 2-17 Sec. 344.053. ELECTION REQUIRED. A proposed district may be 2-18 created and a district tax may be authorized only if the creation 2-19 and the tax are approved by a majority of the qualified voters of 2-20 the proposed district voting at an election called and held for 2-21 that purpose. 2-22 Sec. 344.054. CONFIRMATION ELECTION ORDER. (a) The 2-23 temporary board may call and hold a confirmation election only 2-24 after the board adopts plans under Section 344.061. 2-25 (b) An order calling an election under Subsection (a) must 2-26 state: 2-27 (1) the nature of the election, including the 2-28 proposition that is to appear on the ballot; 2-29 (2) the date of the election; 2-30 (3) the hours during which the polls will be open; 2-31 (4) the location of the polling places; 2-32 (5) a summary of the proposed district's budget plan 2-33 and fire control, prevention, and emergency medical services plan; 2-34 and 2-35 (6) the proposed rate of the sales and use tax for the 2-36 district. 2-37 Sec. 344.055. SALES AND USE TAX. (a) A municipality that 2-38 creates a district shall adopt a sales and use tax under Section 2-39 321.106, Tax Code, for financing the operation of the district. 2-40 The proposed rate for the district sales and use tax imposed under 2-41 Subchapter B, Chapter 321, Tax Code, may be only: 2-42 (1) one-eighth of one percent; 2-43 (2) one-fourth of one percent; 2-44 (3) three-eighths of one percent; or 2-45 (4) one-half of one percent. 2-46 (b) A sales and use tax adopted under this chapter may be 2-47 charged in addition to any other sales and use tax authorized by 2-48 law, and one-eighth of one percent or less of a sales and use tax 2-49 adopted under this chapter is not included in computing a combined 2-50 sales and use tax rate for purposes of any limitation provided by 2-51 law on the maximum combined sales and use tax rate of political 2-52 subdivisions. 2-53 Sec. 344.056. NOTICE OF ELECTION. In addition to the notice 2-54 required by Section 4.003(c), Election Code, the temporary 2-55 directors of a proposed district shall give notice of an election 2-56 to create a district by publishing a substantial copy of the 2-57 election order in a newspaper with general circulation in the 2-58 proposed district once a week for two consecutive weeks. The first 2-59 publication must appear before the 35th day before the date set for 2-60 the election. 2-61 Sec. 344.057. ELECTION DATE. The election shall be held on 2-62 the next uniform election date authorized by Section 41.001(a), 2-63 Election Code, after the date on which the election is ordered that 2-64 affords sufficient time for election procedures to be carried out. 2-65 Sec. 344.058. BALLOT PROPOSITION. The ballot for an 2-66 election to create a district shall be printed to permit voting for 2-67 or against the proposition: "The creation of the ______ (name of 2-68 the municipality proposing to create the district) Fire Control, 2-69 Prevention, and Emergency Medical Services District dedicated to 3-1 fire safety and emergency medical services programs and the 3-2 adoption of a proposed local sales and use tax at a rate of _______ 3-3 (rate specified in the election order)." 3-4 Sec. 344.059. CANVASSING RETURNS. (a) Not earlier than the 3-5 second day and not later than the 13th day after the date of the 3-6 election, the temporary board shall meet and canvass the returns of 3-7 the election. 3-8 (b) If a majority of the votes cast in the election favor 3-9 the creation of the district, the temporary board shall issue an 3-10 order declaring the district created. 3-11 (c) If less than a majority of the votes cast in the 3-12 election favor the creation of the district, the temporary board 3-13 may order another election on the matter not earlier than the first 3-14 anniversary of the date of the preceding election. 3-15 Sec. 344.060. DISSOLUTION OF TEMPORARY BOARD. If a district 3-16 has not been created under this chapter before the fifth 3-17 anniversary of the date a district is first proposed by the 3-18 governing body under Section 344.051: 3-19 (1) the temporary board is dissolved on that date; and 3-20 (2) the proposed district may not be created under 3-21 this chapter. 3-22 Sec. 344.061. FIRE CONTROL, PREVENTION, AND EMERGENCY 3-23 MEDICAL SERVICES PLAN AND BUDGET PLAN. (a) The temporary board 3-24 shall develop and adopt a two-year fire control, prevention, and 3-25 emergency medical services plan and a two-year budget plan. The 3-26 fire control, prevention, and emergency medical services plan must 3-27 include: 3-28 (1) a detailed list of the fire control, prevention, 3-29 and emergency medical services strategies to be supported by the 3-30 district; and 3-31 (2) the method of evaluating each year the 3-32 effectiveness and efficiency of individual fire control, 3-33 prevention, and emergency medical services strategies. 3-34 (b) The budget plan must include: 3-35 (1) the amount of money budgeted by the district for 3-36 each fire control, prevention, and emergency medical services 3-37 strategy; 3-38 (2) the amount of money budgeted by the district and 3-39 the percentage of the total budget of the district for 3-40 administration, with individual amounts showing the cost of the 3-41 administration that would be conducted by the district and the cost 3-42 of administration that would be conducted by private or public 3-43 entities; 3-44 (3) the estimated amount of money available to the 3-45 district from all sources during the subsequent year; 3-46 (4) the account balances expected at the end of the 3-47 years for which the budget is prepared; and 3-48 (5) the estimated tax rate that will be required to 3-49 support the budget. 3-50 (c) Plans under this section must be adopted in the same 3-51 manner as provided for adoption of a proposed annual budget under 3-52 Section 344.204. 3-53 (d) The temporary board shall coordinate its efforts in 3-54 developing its plans under this section with appropriate local 3-55 officials and entities. 3-56 Sec. 344.062. FINANCING CREATION OF DISTRICT. (a) A 3-57 municipality creating a district shall pay the entire cost of 3-58 creating the district. 3-59 (b) If a district is created, the district shall reimburse 3-60 the municipality for the actual expenses the municipality incurred 3-61 in the creation of the district. 3-62 (Sections 344.063-344.100 reserved for expansion 3-63 SUBCHAPTER C. ADMINISTRATION 3-64 Sec. 344.101. BOARD OF DIRECTORS. (a) Except as provided 3-65 by Subsections (e) and (f), a district is governed by a board of 3-66 seven directors appointed in the same manner as provided by Section 3-67 344.052(a) for the appointment of temporary directors. 3-68 (b) Initial appointees under this section shall draw lots to 3-69 determine their terms so that: 4-1 (1) three directors serve terms that expire on 4-2 September 1 of the first year following creation of the district; 4-3 and 4-4 (2) four directors serve terms that expire on 4-5 September 1 of the second year following creation of the district. 4-6 (c) Directors serve staggered two-year terms. 4-7 (d) A vacancy in the office of director shall be filled for 4-8 the unexpired term in the same manner that the vacant position was 4-9 originally filled. 4-10 (e) The governing body of a municipality by resolution may 4-11 appoint the governing body's membership as the board of directors 4-12 of the district, if the appointment is approved by the voters in a 4-13 creation election or continuation referendum under this chapter. A 4-14 member of a governing body appointed under this section as an ex 4-15 officio director serves a term concurrent with the member's term as 4-16 a member of the governing body. 4-17 (f) In a district for which the governing body of the 4-18 municipality does not serve as the district's board of directors, 4-19 the governing body may create a board of directors for which one 4-20 director is appointed by each member of the governing body to serve 4-21 at the pleasure of that member for a term not to exceed two years 4-22 and that expires when the member of the governing body that 4-23 appointed the director leaves office. 4-24 Sec. 344.102. PERFORMANCE BOND. (a) Before assuming the 4-25 duties of the office, each director or officer must execute a bond 4-26 for $5,000 payable to the district, conditioned on the faithful 4-27 performance of the person's duties as director or officer. 4-28 (b) The bond shall be kept in the permanent records of the 4-29 district. 4-30 (c) The board may pay for the bonds of directors or officers 4-31 with district funds. 4-32 (d) The board and the district may issue and sell bonds 4-33 conditioned on the faithful performance of a person's duties as a 4-34 director as provided by this section. 4-35 Sec. 344.103. OFFICERS. (a) The board shall elect from 4-36 among its members a president and vice president. 4-37 (b) The board shall appoint a secretary. The secretary may 4-38 be a director. 4-39 (c) The person who performs the duties of auditor for the 4-40 municipality shall serve as treasurer of the district. 4-41 (d) Each officer of the board serves for a term of one year. 4-42 (e) A vacancy in a board office shall be filled by the board 4-43 for the unexpired term. 4-44 Sec. 344.104. COMPENSATION. A director or officer serves 4-45 without compensation, but a director or officer may be reimbursed 4-46 for actual expenses incurred in the performance of official duties. 4-47 Those expenses must be reported in the district's minute book or 4-48 other district record and must be approved by the board. 4-49 Sec. 344.105. VOTING REQUIREMENT. A concurrence of a 4-50 majority of the members of the board is necessary in matters 4-51 relating to the business of a district. A two-thirds majority vote 4-52 of the board is required to reject any application for funding 4-53 available under this chapter. 4-54 Sec. 344.106. CONTRACT FOR ADMINISTRATIVE ASSISTANCE. The 4-55 board may contract with a public agency or private vendor to assist 4-56 the board in the administration or management of the district or to 4-57 assist the board in the review of applications for funding 4-58 available under this chapter. 4-59 (Sections 344.107-344.150 reserved for expansion 4-60 SUBCHAPTER D. POWERS AND DUTIES 4-61 Sec. 344.151. FINANCING DISTRICT PROGRAMS. (a) The 4-62 district may finance all costs of a fire control, prevention, and 4-63 emergency medical services district program, including costs for 4-64 personnel, administration, expansion, enhancement, and capital 4-65 expenditures. 4-66 (b) The program may include: 4-67 (1) fire apparatus and equipment; 4-68 (2) a bomb disposal unit and related equipment; 4-69 (3) compensation of fire protection and prevention 5-1 personnel for specialized training regarding: 5-2 (A) arson; 5-3 (B) bomb disposal; 5-4 (C) hazardous materials; 5-5 (D) technical rescue; 5-6 (E) paramedic certification; and 5-7 (F) any other specialized training under the 5-8 program; 5-9 (4) funding for turn-out gear, self-contained 5-10 breathing apparatus, and protective uniforms or other firefighter 5-11 safety equipment; 5-12 (5) additional compensation for municipal 5-13 fire-fighting personnel, including overtime compensation for 5-14 unforeseen staffing needs; and 5-15 (6) funding for the construction and maintenance of 5-16 fire stations, training facilities, or the equipment needed for 5-17 those stations or facilities. 5-18 (c) The program may include an enhanced emergency 5-19 communications center or other emergency communications programs 5-20 and equipment, including: 5-21 (1) emergency medical dispatch training; 5-22 (2) additional fire and emergency medical service 5-23 dispatchers; 5-24 (3) uniformed fire deployment and communications 5-25 officers; 5-26 (4) real-time weather information; and 5-27 (5) computer databases and systems maintenance 5-28 personnel for hazardous materials responses. 5-29 (d) The program may include a public training program, 5-30 including: 5-31 (1) a juvenile fire starter program; 5-32 (2) an urban survival program, including school 5-33 programs for fire safety, gun safety, and safety with strangers; 5-34 (3) a fire prevention program; 5-35 (4) a fire education program; 5-36 (5) a hazardous materials education program; 5-37 (6) a psychological intervention program; and 5-38 (7) a citizen's ride-along program or home inspection 5-39 program. 5-40 (e) The program may include public preventive health 5-41 programs, including: 5-42 (1) juvenile inoculations; 5-43 (2) weekend health days; 5-44 (3) first aid and cardiopulmonary resuscitation 5-45 training; 5-46 (4) injury prevention; and 5-47 (5) drug and alcohol awareness. 5-48 (f) The program may include response training programs, 5-49 equipment, facilities, and instructors, including: 5-50 (1) a regional training center for fire, rescue, 5-51 hazardous materials, and emergency medical services; 5-52 (2) staff personnel to support the center; 5-53 (3) equipment and apparatus to support the center; 5-54 (4) computer-aided continuing education training 5-55 conducted in-station; and 5-56 (5) training regarding hazardous material storage and 5-57 response. 5-58 (g) The program may include computers and other systems to 5-59 support information management systems to: 5-60 (1) maintain occupancy information; 5-61 (2) track incident analyses; 5-62 (3) track incident reports; 5-63 (4) track internal communications and reporting; 5-64 (5) maintain inventory; and 5-65 (6) serve other information management needs. 5-66 (h) The program may include capital items needed to improve 5-67 emergency response and increase service efficiency, including 5-68 equipment, apparatus, vehicles, and training material or equipment. 5-69 Sec. 344.152. COORDINATION; EVALUATION; GRANTS. (a) The 6-1 district shall coordinate its efforts with local agencies in 6-2 developing its fire control, prevention, and emergency medical 6-3 services program. 6-4 (b) The district shall conduct an annual evaluation program 6-5 to study the impact, efficiency, and effectiveness of new or 6-6 expanded fire control, prevention, and emergency medical services 6-7 programs. 6-8 (c) The board may seek the assistance of the Office of 6-9 State-Federal Relations in identifying and applying for federal 6-10 grants for fire control, prevention, and emergency medical services 6-11 programs. 6-12 (d) The district may apply for and receive grants for fire 6-13 control, prevention, and emergency medical services programs from a 6-14 state or federal agency. 6-15 Sec. 344.153. GENERAL BOARD POWER OVER FUNDS. The board 6-16 shall manage, control, and administer the district finances except 6-17 as provided by Section 344.205. 6-18 Sec. 344.154. USE OF REVENUE. The board may spend revenue 6-19 derived from the sales and use tax distributed under Section 6-20 321.106, Tax Code, only for a purpose authorized by Section 6-21 344.151. 6-22 Sec. 344.155. RULES AND PROCEDURES. (a) A board may adopt 6-23 rules governing programs financed by the district and the functions 6-24 of district staff. 6-25 (b) The board may prescribe accounting and control 6-26 procedures for the district. 6-27 (c) The board is subject to Chapter 2001, Government Code. 6-28 Sec. 344.156. PURCHASING. (a) Except as provided by 6-29 Subsection (b), the board may prescribe the method of making 6-30 purchases and expenditures by and for the district. 6-31 (b) To the extent competitive bidding procedures in Title 8 6-32 apply, the board may not enter into a purchasing contract for more 6-33 than $15,000 unless the board complies with Chapter 252. 6-34 (c) If the municipality that created the district has a 6-35 purchasing agent authorized by law, that agent shall serve as 6-36 purchasing agent for the district. 6-37 Sec. 344.157. PROPERTY TO BE USED IN ADMINISTRATION. The 6-38 board may lease or acquire in another manner facilities, equipment, 6-39 or other property for the sole purpose of administering the 6-40 district. 6-41 Sec. 344.158. REIMBURSEMENT FOR SERVICES. (a) A county or 6-42 municipality located outside the boundaries of a district on the 6-43 district's request shall reimburse the district for the district's 6-44 cost of including a resident of that county or municipality who is 6-45 not a resident of that district in a district program. 6-46 (b) On behalf of the district, the board may contract with a 6-47 municipal or county government or with the state or federal 6-48 government for the municipal, county, state, or federal government 6-49 to reimburse the district for including a person in a district 6-50 program. 6-51 Sec. 344.159. SERVICE CONTRACTS. The board may contract 6-52 with the following entities to furnish the staff, facilities, 6-53 equipment, programs, or services the board considers necessary for 6-54 the effective operation of the district: 6-55 (1) a municipality, county, special district, or other 6-56 political subdivision of the state; 6-57 (2) a state or federal agency; 6-58 (3) an individual; or 6-59 (4) a private person. 6-60 Sec. 344.160. DONATIONS, GIFTS, AND ENDOWMENTS. On behalf 6-61 of the district, the board or the temporary board may accept a 6-62 donation, gift, or endowment. The district may hold a donation, 6-63 gift, or endowment in trust for any purpose and under any 6-64 direction, limitation, or other provision prescribed in writing by 6-65 the donor that is consistent with this chapter and the proper 6-66 management of the district. 6-67 Sec. 344.161. AUTHORITY TO SUE AND BE SUED. The board may 6-68 sue and be sued in the name of the district. 6-69 (Sections 344.162-344.200 reserved for expansion 7-1 SUBCHAPTER E. DISTRICT FINANCES 7-2 Sec. 344.201. FISCAL YEAR. (a) The board shall establish 7-3 the fiscal year for the district, and the district shall operate on 7-4 the basis of that year. 7-5 (b) The fiscal year may not be changed more than once in a 7-6 24-month period. 7-7 Sec. 344.202. AUDITS AND DISTRICT RECORDS. (a) The board 7-8 shall have an annual audit made of the financial condition of the 7-9 district by an independent auditor. 7-10 (b) The annual audit and other district records shall be 7-11 open to inspection during regular business hours at the principal 7-12 office of the district. 7-13 Sec. 344.203. ANNUAL BUDGET PROPOSAL. (a) The board shall 7-14 propose an annual budget. The board shall consider the 7-15 applications for program funding in preparing the proposed budget. 7-16 (b) The proposed budget must contain a complete financial 7-17 statement, including a statement of: 7-18 (1) the outstanding obligations of the district; 7-19 (2) the amount of cash on hand to the credit of each 7-20 fund of the district; 7-21 (3) the amount of money received by the district from 7-22 all sources during the previous year; 7-23 (4) the estimated amount of money available to the 7-24 district from all sources during the current fiscal year; 7-25 (5) the amount of money needed to fund programs 7-26 approved for funding by the board; 7-27 (6) the amount of money requested for programs that 7-28 were not approved for funding by the board; 7-29 (7) the tax rate for the next fiscal year; 7-30 (8) the amount of the balances expected at the end of 7-31 the year in which the budget is being prepared; and 7-32 (9) the estimated amount of revenues and balances 7-33 available to cover the proposed budget. 7-34 Sec. 344.204. ADOPTION OF BUDGET. (a) Not later than the 7-35 100th day before the date each fiscal year begins, the board shall 7-36 hold a public hearing to consider the proposed annual budget. 7-37 (b) The board shall publish notice of the hearing in a 7-38 newspaper with general circulation in the district not later than 7-39 the 10th day before the date of the hearing. 7-40 (c) A resident of the district is entitled to participate in 7-41 the hearing. 7-42 (d) Not later than the 80th day before the date each fiscal 7-43 year begins, the board shall adopt a budget. The board may make 7-44 any changes in the proposed budget that the interests of the 7-45 taxpayers demand. 7-46 (e) Not later than the 10th day after the date the budget is 7-47 adopted, the board shall submit the budget to the governing body of 7-48 the municipality that created the district. 7-49 (f) The board by rule may adopt alternative procedures for 7-50 adopting a budget that differ from the procedures outlined in this 7-51 subchapter. The board must hold at least one public hearing 7-52 related to the alternative procedures before their adoption. 7-53 Sec. 344.205. APPROVAL OF BUDGET. (a) Not later than the 7-54 45th day before the date each fiscal year begins, the governing 7-55 body of the municipality that created the district shall hold a 7-56 public hearing to consider the budget adopted by the board and 7-57 submitted to the governing body. 7-58 (b) The governing body must publish notice of the hearing in 7-59 a newspaper with general circulation in the district not later than 7-60 the 10th day before the date of the hearing. 7-61 (c) A resident of the district is entitled to participate in 7-62 the hearing. 7-63 (d) Not later than the 30th day before the date the fiscal 7-64 year begins, the governing body shall approve or reject the budget 7-65 submitted by the board. The governing body may not amend the 7-66 budget. 7-67 (e) If the governing body rejects the budget submitted by 7-68 the board, the governing body and the board shall meet and together 7-69 amend and approve the budget before the beginning of the fiscal 8-1 year. 8-2 (f) The budget may be amended after the beginning of the 8-3 fiscal year on approval by the board and the governing body. 8-4 Sec. 344.206. LIMITATIONS ON EXPENDITURES AND INVESTMENTS. 8-5 (a) The district may spend money only for an expense included in 8-6 the annual budget or an amendment to the budget. 8-7 (b) A district may not incur a debt payable from revenues of 8-8 the district other than the revenues on hand or to be on hand in 8-9 the current or immediately following fiscal year of the district. 8-10 (c) The board may not invest district money in funds or 8-11 securities other than those specified by Chapter 2256, Government 8-12 Code. 8-13 Sec. 344.207. ACCOUNT OF DISBURSEMENTS OF DISTRICT. Not 8-14 later than the 60th day after the last day of each fiscal year, an 8-15 administrator shall prepare for the board a sworn statement of the 8-16 amount of money that belongs to the district and an account of the 8-17 disbursements of that money. 8-18 Sec. 344.208. DEPOSIT OF MONEY. (a) The board shall 8-19 deposit district money in a special account in the treasury of the 8-20 municipality that created the district. 8-21 (b) District money, other than that invested as provided by 8-22 Section 344.206(c), shall be deposited as received in the treasury 8-23 of the municipality and must remain on deposit. 8-24 (c) The board shall reimburse the municipality for any 8-25 costs, other than personnel costs, the municipality incurs for 8-26 performing the duties under this section. 8-27 Sec. 344.209. APPLICATIONS FOR PROGRAM FUNDING. (a) An 8-28 officer of the municipality that created the district or the head 8-29 of a department of that municipality may, with the consent of the 8-30 governing body of the municipality, apply to the board for funding 8-31 of a program described by Section 344.151. 8-32 (b) The officer must apply under this section not later than 8-33 the 140th day before the date the fiscal year begins, unless the 8-34 board by rule has adopted an exception. 8-35 (c) The board by rule may adopt application procedures. 8-36 Sec. 344.210. BONDS PROHIBITED. The board may not issue or 8-37 sell general obligation bonds, revenue bonds, or refunding bonds. 8-38 (Sections 344.211-344.250 reserved for expansion 8-39 SUBCHAPTER F. REFERENDUM ON CONTINUATION OR DISSOLUTION OF DISTRICT 8-40 Sec. 344.251. REFERENDUM AUTHORIZED. (a) The board may 8-41 call and hold a referendum election on the question of whether to: 8-42 (1) continue the district; or 8-43 (2) dissolve the district. 8-44 (b) A board may order a referendum election on its own 8-45 motion. 8-46 (c) The board shall order a referendum election: 8-47 (1) on receipt of a petition that requests 8-48 continuation or dissolution of the district and complies with the 8-49 requirements of Sections 344.252-344.256; or 8-50 (2) if the governing body of the municipality that 8-51 created the district, after notice and a public hearing on the 8-52 matter, by resolution requests a referendum on continuation or 8-53 dissolution. 8-54 (d) The board may not hold a referendum election under this 8-55 subchapter before the fifth anniversary of the date the district 8-56 was created or before the third anniversary of the date of the last 8-57 continuation or dissolution referendum election. 8-58 (e) For a continuation referendum election, the ballot shall 8-59 be printed to permit voting for or against the proposition: 8-60 "Whether the ____________ (name of the municipality that created 8-61 the district) Fire Control, Prevention, and Emergency Medical 8-62 Services District should be continued and whether the fire control, 8-63 prevention, and emergency medical services district sales and use 8-64 tax should be continued." 8-65 (f) For a dissolution referendum, the ballot shall be 8-66 printed to permit voting for or against the proposition: "Whether 8-67 the ____________ (name of the municipality that created the 8-68 district) Fire Control, Prevention, and Emergency Medical Services 8-69 District should be dissolved and whether the fire control, 9-1 prevention, and emergency medical services district sales and use 9-2 tax should be abolished." 9-3 (g) The governing body of a municipality that creates a 9-4 district under this chapter may specify the number of years for 9-5 which the district should be continued. The board or the governing 9-6 body of a municipality may continue a district for 5, 10, 15, or 20 9-7 years. For a continuation referendum election under this 9-8 subsection, the ballot shall be printed to permit voting for or 9-9 against the proposition: "Whether the ______ (name of the 9-10 municipality that created the district) Fire Control, Prevention, 9-11 and Emergency Medical Services District should be continued for 9-12 ______ years and whether the fire control, prevention, and 9-13 emergency medical services district sales and use tax should be 9-14 continued for _____ years." 9-15 Sec. 344.252. APPLICATION FOR PETITION. (a) On written 9-16 application of 10 or more registered voters of the district, the 9-17 clerk of the municipality that created the district shall issue to 9-18 the applicants a petition to be circulated among registered voters 9-19 for their signatures. 9-20 (b) An application for a petition to continue the district 9-21 must contain: 9-22 (1) the heading: "Application for a Petition for a 9-23 Local Option Referendum to Continue the Fire Control, Prevention, 9-24 and Emergency Medical Services District and to Continue the Fire 9-25 Control, Prevention, and Emergency Medical Services District Sales 9-26 and Use Tax"; 9-27 (2) the statement: "Whether the ______ (name of the 9-28 municipality that created the district) Fire Control, Prevention, 9-29 and Emergency Medical Services District should be continued and 9-30 whether the fire control, prevention, and emergency medical 9-31 services district sales and use tax should be continued"; 9-32 (3) immediately above the signatures of the 9-33 applicants, the statement: "It is the purpose and intent of the 9-34 applicants whose signatures appear below that the fire control, 9-35 prevention, and emergency medical services district be continued 9-36 and that the fire control, prevention, and emergency medical 9-37 services district sales and use tax in ___________ (name of the 9-38 municipality that created the district) be continued"; and 9-39 (4) the printed name, signature, residence address, 9-40 and voter registration certificate number of each applicant. 9-41 (c) An application for a petition to dissolve the district 9-42 must contain: 9-43 (1) the heading: "Application for a Petition for a 9-44 Local Option Referendum to Dissolve the Fire Control, Prevention, 9-45 and Emergency Medical Services District and to Abolish the Fire 9-46 Control, Prevention, and Emergency Medical Services District Sales 9-47 and Use Tax"; 9-48 (2) the statement: "Whether the ___________ (name of 9-49 the municipality that created the district) Fire Control, 9-50 Prevention, and Emergency Medical Services District should be 9-51 dissolved and whether the fire control, prevention, and emergency 9-52 medical services district sales and use tax should be abolished"; 9-53 (3) immediately above the signatures of the 9-54 applicants, the statement: "It is the purpose and intent of the 9-55 applicants whose signatures appear below that the fire control, 9-56 prevention, and emergency medical services district be dissolved 9-57 and that the fire control, prevention, and emergency medical 9-58 services district sales and use tax in ___________ (name of the 9-59 municipality that created the district) be abolished"; and 9-60 (4) the printed name, signature, residence address, 9-61 and voter registration certificate number of each applicant. 9-62 Sec. 344.253. PETITION. (a) A petition for a referendum to 9-63 continue a district must contain: 9-64 (1) the heading: "Petition for a Local Option 9-65 Referendum to Continue the ____________ (name of the municipality 9-66 that created the district) Fire Control, Prevention, and Emergency 9-67 Medical Services District and to Continue the Fire Control, 9-68 Prevention, and Emergency Medical Services District Sales and Use 9-69 Tax"; 10-1 (2) a statement of the issue to be voted on in the 10-2 same words used in the application; 10-3 (3) immediately above the signatures of the 10-4 petitioners, the statement: "It is the purpose and intent of the 10-5 petitioners whose signatures appear below that the fire control, 10-6 prevention, and emergency medical services district be continued 10-7 and that the fire control, prevention, and emergency medical 10-8 services district sales and use tax in ___________ (name of the 10-9 municipality that created the district) be continued"; 10-10 (4) lines and spaces for the names, signatures, 10-11 residence addresses, and voter registration certificate numbers of 10-12 the petitioners; and 10-13 (5) the date of issuance, the serial number, and the 10-14 seal of the clerk of the municipality on each page. 10-15 (b) A petition for a referendum to dissolve a district must 10-16 contain: 10-17 (1) the heading: "Petition for a Local Option 10-18 Referendum to Dissolve the __________ (name of the municipality 10-19 that created the district) Fire Control, Prevention, and Emergency 10-20 Medical Services District and to Abolish the Fire Control, 10-21 Prevention, and Emergency Medical Services District Sales and Use 10-22 Tax"; 10-23 (2) a statement of the issue to be voted on in the 10-24 same words used in the application; 10-25 (3) immediately above the signatures of the 10-26 petitioners, the statement: "It is the purpose and intent of the 10-27 petitioners whose signatures appear below that the fire control, 10-28 prevention, and emergency medical services district be dissolved 10-29 and that the fire control, prevention, and emergency medical 10-30 services district sales and use tax in ___________ (name of the 10-31 municipality that created the district) be abolished"; 10-32 (4) lines and spaces for the names, signatures, 10-33 residence addresses, and voter registration certificate numbers of 10-34 the petitioners; and 10-35 (5) the date of issuance, the serial number, and the 10-36 seal of the clerk of the municipality on each page. 10-37 Sec. 344.254. COPIES OF APPLICATION AND PETITION. The clerk 10-38 or secretary of the municipality shall keep an application and a 10-39 copy of the petition in the files of the clerk's or secretary's 10-40 office. The clerk shall issue to the applicants as many copies as 10-41 they request. 10-42 Sec. 344.255. FILING OF PETITION. To form the basis for the 10-43 ordering of a referendum, the petition must: 10-44 (1) be filed with the clerk or secretary of the 10-45 municipality not later than the 60th day after the date of its 10-46 issuance; and 10-47 (2) contain at least a number of signatures of 10-48 registered voters of the municipality equal to five percent of the 10-49 number of votes cast in the municipality for all candidates for 10-50 governor in the most recent gubernatorial general election. 10-51 Sec. 344.256. REVIEW BY CLERK OR SECRETARY. (a) The clerk 10-52 or secretary of the municipality shall, on the request of any 10-53 person, check each name on a petition to determine whether the 10-54 signer is a registered voter of the district. A person requesting 10-55 verification by the clerk or secretary of the municipality shall 10-56 pay the clerk or secretary a sum equal to 20 cents for each name on 10-57 the petition before the verification begins. 10-58 (b) The clerk or secretary of the municipality may not count 10-59 a signature if the clerk or secretary has a reason to believe that: 10-60 (1) it is not the actual signature of the purported 10-61 signer; 10-62 (2) the voter registration certificate number is not 10-63 correct; 10-64 (3) it is a duplication either of a name or of 10-65 handwriting used in any other signature on the petition; 10-66 (4) the residence address of the signer is not 10-67 correct; or 10-68 (5) the name of the voter is not signed exactly as it 10-69 appears on the official copy of the current list of registered 11-1 voters for the voting year in which the petition is issued. 11-2 Sec. 344.257. CERTIFICATION. Not later than the 40th day 11-3 after the date a petition is filed, excluding Saturdays, Sundays, 11-4 and legal holidays, the clerk or secretary of the municipality 11-5 shall certify to the board the number of registered voters signing 11-6 the petition. 11-7 Sec. 344.258. ELECTION ORDER. (a) The board shall record 11-8 on its minutes the date the petition is filed and the date it is 11-9 certified by the clerk or secretary of the municipality. 11-10 (b) If the petition contains the required number of 11-11 signatures and is in proper order, the board shall, at its next 11-12 regular session after the certification by the clerk or secretary 11-13 of the municipality, order a referendum election to be held at the 11-14 regular polling place in each election precinct in the municipality 11-15 on the next uniform election date authorized by Section 41.001(a), 11-16 Election Code, that occurs at least 20 days after the date of the 11-17 order. 11-18 (c) The board shall state in the order the proposition to be 11-19 voted on in the referendum election. The order is prima facie 11-20 evidence of compliance with all provisions necessary to give it 11-21 validity. 11-22 Sec. 344.259. APPLICABILITY OF ELECTION CODE. A referendum 11-23 election authorized by this subchapter shall be held and the 11-24 returns shall be prepared and canvassed in conformity with the 11-25 Election Code. 11-26 Sec. 344.260. RESULTS OF REFERENDUM. (a) If less than a 11-27 majority of the votes cast in a continuation referendum election 11-28 are for the continuation of a district or if a majority of the 11-29 votes cast in a dissolution referendum are for dissolution of the 11-30 district: 11-31 (1) the board shall certify that fact to the secretary 11-32 of state not later than the 10th day after the date of the canvass 11-33 of the returns; and 11-34 (2) the district is dissolved and ceases to operate. 11-35 (b) If a majority of the votes cast in a continuation 11-36 referendum election are for the continuation of the district or if 11-37 less than a majority of the votes cast in a dissolution referendum 11-38 election are for dissolution of the district, another referendum 11-39 may not be held except as authorized by Section 344.251. 11-40 Sec. 344.261. ELECTION CONTEST. Not later than the 30th day 11-41 after the date the result of a referendum is declared, any 11-42 qualified voter of the district may contest the election by filing 11-43 a petition in a district court located in the district. 11-44 (Sections 344.262-344.300 reserved for expansion 11-45 SUBCHAPTER G. DISTRICT DISSOLUTION 11-46 Sec. 344.301. TIME FOR DISSOLUTION OF DISTRICT. (a) A 11-47 district is dissolved five years after the date the municipality 11-48 began to impose taxes for district purposes if the district has not 11-49 held a continuation or dissolution referendum. 11-50 (b) The district is dissolved on the fifth anniversary of 11-51 the date of the most recent continuation or dissolution referendum. 11-52 (c) Subsection (b) does not apply to a district that is 11-53 continued under Section 344.251(g), and that district is dissolved 11-54 on the expiration of the period for which it was continued. 11-55 Sec. 344.302. DISSOLUTION OF DISTRICT. (a) On the date 11-56 that the district is dissolved, the district shall convey or 11-57 transfer, as provided by Subsection (h): 11-58 (1) title to land, buildings, real and tangible 11-59 improvements, and equipment owned by the district; 11-60 (2) operating money and reserves for operating 11-61 expenses and money that has been budgeted by the district for the 11-62 remainder of the fiscal year in which the district is dissolved to 11-63 support fire control, prevention, and emergency medical services 11-64 activities and programs for residents of the municipality that 11-65 created the district; 11-66 (3) taxes imposed for the district during the current 11-67 year for fire control, prevention, and emergency medical services 11-68 purposes; 11-69 (4) each fund established for payment of indebtedness 12-1 assumed by the district; and 12-2 (5) any money accumulated in an employee retirement 12-3 fund. 12-4 (b) After the date the district is dissolved, taxes may not 12-5 be imposed for district purposes or for providing fire control, 12-6 prevention, and emergency medical services activities and programs 12-7 for the residents of the district. 12-8 (c) If on the date that the district is dissolved the 12-9 district has outstanding short-term or long-term liabilities, the 12-10 board shall, not later than the 30th day after the date of the 12-11 dissolution, adopt a resolution certifying each outstanding 12-12 short-term and long-term liability. The municipality that created 12-13 the district shall assume the outstanding short-term and long-term 12-14 liabilities. The municipality shall collect the sales and use tax 12-15 under Chapter 321, Tax Code, for the remainder of the calendar year 12-16 and may by resolution of its governing body continue to collect the 12-17 tax for an additional calendar year if the revenue from the tax is 12-18 needed to retire liabilities of the district that were assumed by 12-19 the municipality. The governing body shall notify the comptroller 12-20 of this continuation not later than the 60th day before the date 12-21 the tax would otherwise expire. A tax collected after the 12-22 liabilities have been retired shall be transferred or conveyed as 12-23 provided by Subsection (a). 12-24 (d) The district and the board may continue to operate for a 12-25 period not to exceed two months after carrying out the 12-26 responsibilities required by Subsections (a) and (c). The board 12-27 and the district are continued for the purpose of satisfying these 12-28 responsibilities. 12-29 (e) If the board and the district are continued under 12-30 Subsection (d), the board and district are dissolved entirely on 12-31 the first day of the month following the month in which the board 12-32 issues an order certifying to the secretary of state that the 12-33 responsibilities of Subsections (a) and (c) are satisfied. 12-34 (f) A district or board that continues to operate under 12-35 Subsection (d) may not incur any new liabilities without the 12-36 approval of the governing body of the municipality that created the 12-37 district. Not later than the 60th day after the date of the 12-38 dissolution referendum, the governing body shall review the 12-39 outstanding liabilities of the district and set a specific date by 12-40 which the municipality must retire the district's outstanding 12-41 liabilities. 12-42 (g) On the date that the district is dissolved, programs 12-43 funded by the district shall immediately terminate and personnel 12-44 paid from district funds, except personnel required to retire the 12-45 responsibilities of the district, are terminated. 12-46 (h) The board shall convey or transfer the value of the 12-47 items described by Subsection (a) to the municipality that created 12-48 the district. 12-49 SECTION 2. Subchapter B, Chapter 321, Tax Code, is amended 12-50 by adding Section 321.106 to read as follows: 12-51 Sec. 321.106. FIRE CONTROL DISTRICT TAX. (a) Subject to an 12-52 election held in accordance with Chapter 344, Local Government 12-53 Code, a municipality in which a fire control, prevention, and 12-54 emergency medical services district is established shall adopt a 12-55 sales and use tax in the area of the district for the purpose of 12-56 financing the operation of the fire control, prevention, and 12-57 emergency medical services district. The revenue from the tax may 12-58 be used only for the purpose of financing the operation of the fire 12-59 control, prevention, and emergency medical services district. The 12-60 proposition for adopting a tax under this section and the 12-61 proposition for creation of a fire control, prevention, and 12-62 emergency medical services district shall be submitted at the same 12-63 election. For purposes of Section 321.101, a tax under this 12-64 section is not an additional sales and use tax. 12-65 (b) A tax adopted for a district under this section for 12-66 financing the operation of the district may be decreased in 12-67 increments of one-eighth of one percent by order of the board of 12-68 directors of the district. 12-69 (c) The rate of a tax adopted for a district under this 13-1 section may be increased in increments of one-eighth of one 13-2 percent, not to exceed a total tax rate of one-half percent, for 13-3 financing the operation of the fire control, prevention, and 13-4 emergency medical services district by order of the board of 13-5 directors of the fire control, prevention, and emergency medical 13-6 services district if approved by a majority of the qualified voters 13-7 voting at an election called by the board and held in the district 13-8 on the question of increasing the tax rate. At the election, the 13-9 ballot shall be printed to provide for voting for or against the 13-10 proposition: "The increase of the __________ (name of the 13-11 municipality that created the district) Fire Control, Prevention, 13-12 and Emergency Medical Services District sales and use tax rate to 13-13 ______ percent." If there is an increase or decrease under this 13-14 section in the rate of a tax imposed under this section, the new 13-15 rate takes effect on the first day of the next calendar quarter 13-16 after the expiration of one calendar quarter after the comptroller 13-17 receives notice of the increase or decrease. However, if the 13-18 comptroller notifies the president of the board of directors of the 13-19 district in writing within 10 days after receipt of the 13-20 notification that the comptroller requires more time to implement 13-21 reporting and collection procedures, the comptroller may delay 13-22 implementation of the rate change for one calendar quarter, and the 13-23 new rate takes effect on the first day of the calendar quarter that 13-24 follows the elapsed quarter. 13-25 (d) The comptroller shall remit to the municipality amounts 13-26 collected at the rate imposed under this section as part of the 13-27 regular allocation of other municipal tax revenue collected by the 13-28 comptroller. The municipality shall remit that amount to the 13-29 district. A retailer may not be required to use allocation and 13-30 reporting procedures in the collection of taxes under this section 13-31 that are different from the procedures that retailers use in the 13-32 collection of other sales and use taxes under this chapter. An 13-33 item, transaction, or service that is taxable in a municipality 13-34 under a sales or use tax authorized by another section of this 13-35 chapter is taxable under this section. An item, transaction, or 13-36 service that is not taxable in a municipality under a sales or use 13-37 tax authorized by another section of this chapter is not taxable 13-38 under this section. 13-39 (e) If, in a municipality where a fire control, prevention, 13-40 and emergency medical services district is composed of the whole 13-41 municipality, a municipal sales and use tax or a municipal sales 13-42 and use tax rate increase for the purpose of financing a fire 13-43 control, prevention, and emergency medical services district is 13-44 approved, the municipality is responsible for distributing to the 13-45 district that portion of the municipal sales and use tax revenue 13-46 received from the comptroller that is to be used for the purposes 13-47 of financing the fire control, prevention, and emergency medical 13-48 services district. Not later than the 10th day after the date the 13-49 municipality receives money under this section from the 13-50 comptroller, the municipality shall make the distribution in the 13-51 proportion that the fire control, prevention, and emergency medical 13-52 services portion of the tax rate bears to the total sales and use 13-53 tax rate of the municipality. The amounts distributed to a fire 13-54 control, prevention, and emergency medical services district are 13-55 not considered to be sales and use tax revenue for the purpose of 13-56 property tax reduction and computation of the municipal tax rate 13-57 under Section 26.041. 13-58 (f) For purposes of the tax imposed under this section, a 13-59 reference in this chapter to the municipality as the territory in 13-60 which the tax or an incident of the tax applies means only the 13-61 territory located in the fire control, prevention, and emergency 13-62 medical services district, if that district is composed of an area 13-63 less than an entire municipality. 13-64 (g) The comptroller may adopt rules and the municipality's 13-65 governing body may adopt orders to administer this section. 13-66 SECTION 3. This Act takes effect June 1, 2001. 13-67 * * * * *