By Carter                                             H.B. No. 2743
         77R6037 MXM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the maximum tax rate allowed on property in emergency
 1-3     service and rural fire prevention districts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 775.018(a), Health and Safety Code, is
 1-6     amended to read as follows:
 1-7           (a)  Except as provided by Subsection (b), on the granting of
 1-8     a petition, the commissioners court shall order an election to
 1-9     confirm the district's creation and authorize the imposition of a
1-10     tax not to exceed 15 [10] cents on each $100 of the taxable value
1-11     of property taxable by the district [or three cents on each $100 of
1-12     the taxable value of property taxable by the district if any area
1-13     in the district is also included in a rural fire prevention
1-14     district].
1-15           SECTION 2. Sections 775.024(a) and (b), Health and Safety
1-16     Code, are amended to read as follows:
1-17           (a)  On the granting of a petition under Section 775.023, the
1-18     commissioners court shall order an election to confirm the creation
1-19     of the emergency services district, authorize the imposition of a
1-20     tax not to exceed 15 [10] cents on each $100 of the taxable value
1-21     of property taxable by the district, and assume the assets and
1-22     liabilities of each rural fire prevention district that is proposed
1-23     to be dissolved.  At the same time, the commissioners court shall
1-24     order an election in each rural fire prevention district on the
 2-1     question of whether to dissolve the rural fire prevention district
 2-2     effective on the date that the emergency services district is
 2-3     created.  Sections 775.018 and 775.019 apply to the election to
 2-4     confirm the creation of the emergency services district.  Section
 2-5     794.059 applies to the election to dissolve the rural fire
 2-6     prevention district, except that the commissioners court shall
 2-7     perform a duty of the board of fire commissioners under that
 2-8     section.
 2-9           (b)  The ballot in the election to confirm creation of the
2-10     emergency services district must be printed to permit voting for or
2-11     against the proposition:  "The creation of the __________ Emergency
2-12     Services District;  the transfer to the __________ Emergency
2-13     Services District of the assets and liabilities of __________ Rural
2-14     Fire Prevention District if that district is dissolved; and the
2-15     levy of an ad valorem tax at a rate not to exceed 15 [10] cents on
2-16     each $100 valuation of property."
2-17           SECTION 3. Subchapter E, Chapter 775, Health and Safety Code,
2-18     is amended by adding Section 775.0745 to read as follows:
2-19           Sec. 775.0745.  ELECTION TO INCREASE TAX RATE. (a)  A board
2-20     may order an election to increase the maximum tax rate of the
2-21     district to any rate at or below the rate allowed by Section 48-e,
2-22     Article III, Texas Constitution.  The proposition on the ballot
2-23     must state the proposed maximum tax rate to be authorized at the
2-24     election.
2-25           (b)  The board shall give notice of the election as provided
2-26     by  Section 4.003, Election Code.  The notice shall contain the
2-27     information required by Section 4.004, Election Code.
 3-1           (c)  The election shall be held on the first uniform election
 3-2     date provided by the Election Code after the date of the board's
 3-3     order that allows sufficient time to comply with any requirements
 3-4     of law.
 3-5           (d)  If a majority of the votes cast in the election favor
 3-6     the increase in the maximum tax rate, the maximum tax rate for the
 3-7     district is increased to the rate authorized by the election.  The
 3-8     increase in the maximum tax rate applies only to a tax year for
 3-9     which the board adopts a tax rate after the date of the election.
3-10     A board that adopts a tax rate for a tax year on or before the date
3-11     of the election may not adopt a new tax rate for that tax year
3-12     after the date of the election that would exceed the maximum tax
3-13     rate in effect on the date the tax rate was initially adopted for
3-14     that year.
3-15           SECTION 4. Section 776.019(a), Health and Safety Code, is
3-16     amended to read as follows:
3-17           (a)  On the granting of a petition, the commissioners court
3-18     shall order an election to confirm the district's creation and
3-19     authorize the levy of a tax not to exceed 15[:]
3-20                 [(1)  10] cents on each $100 of the taxable value of
3-21     property taxable by the district[; or]
3-22                 [(2)  two cents on each $100 of the taxable value of
3-23     property taxable by the district if any area in the district is
3-24     also included in a rural fire prevention district].
3-25           SECTION 5. Subchapter E, Chapter 776, Health and Safety Code,
3-26     is amended by adding Section 776.0755 to read as follows:
3-27           Sec. 776.0755.  ELECTION TO INCREASE TAX RATE. (a)  A board
 4-1     may order an election to increase the maximum tax rate of the
 4-2     district to any rate at or below the rate allowed by Section 48-e,
 4-3     Article III, Texas Constitution.  The proposition on the ballot
 4-4     must state the proposed maximum tax rate to be authorized at the
 4-5     election.
 4-6           (b)  The board shall give notice of the election as provided
 4-7     by Section 4.003, Election Code.  The notice shall contain the
 4-8     information required by Section 4.004, Election Code.
 4-9           (c)  The election shall be held on the first uniform election
4-10     date provided by the Election Code after the date of the board's
4-11     order that allows sufficient time to comply with any requirements
4-12     of law.
4-13           (d)  If a majority of the votes cast in the election favor
4-14     the increase in the maximum tax rate, the maximum tax rate for the
4-15     district is increased to the rate authorized by the election.  The
4-16     increase in the maximum tax rate applies only to a tax year for
4-17     which the board adopts a tax rate after the date of the election.
4-18     A board that adopts a tax rate for a tax year on or before the date
4-19     of the election may not adopt a new tax rate for that tax year
4-20     after the date of the election that would exceed the maximum tax
4-21     rate in effect on the date the tax rate was initially adopted for
4-22     that year.
4-23           SECTION 6. Section 794.018(a), Health and Safety Code, is
4-24     amended to read as follows:
4-25           (a)  On the granting of a petition, the commissioners court
4-26     shall order an election to confirm the district's creation and
4-27     authorize the levy of a tax not to exceed 10[:]
 5-1                 [(1)  three] cents on each $100 of the taxable value of
 5-2     property taxable by the district[, if no part of the district is
 5-3     located in Harris County; or]
 5-4                 [(2)  five cents on each $100 of the taxable value of
 5-5     property taxable by the district, if any part of the district is
 5-6     located in Harris County].
 5-7           SECTION 7. Section 794.0181, Health and Safety Code, is
 5-8     amended to read as follows:
 5-9           Sec. 794.0181.  ELECTION TO INCREASE TAX RATE [IN HARRIS
5-10     COUNTY]. (a)  A [The] board [of fire commissioners of a district
5-11     any part of which is located in Harris County and the creation of
5-12     which was confirmed when the maximum tax rate authorized by Section
5-13     48-d, Article III, Texas Constitution, was less than the rate
5-14     specified by Section 794.018(a)(2),] may order an election to
5-15     increase the maximum tax rate of the district to any rate at or
5-16     below the rate allowed by Section 48-d, Article III, Texas
5-17     Constitution [specified by Section 794.018(a)(2)].  The proposition
5-18     on the ballot must set out the proposed maximum tax rate to be
5-19     authorized at the election.
5-20           (b)  The board shall give notice of the election as provided
5-21     by Section 4.003, Election Code.  The notice shall contain the
5-22     information required by Section 4.004, Election Code.
5-23           (c)  The election shall be held on the first uniform election
5-24     date provided by the Election Code after the date of the board's
5-25     order that allows sufficient time to comply with any requirements
5-26     of law.
5-27           (d)  If a majority of the votes cast in the election favor
 6-1     the increase in the maximum tax rate, the maximum tax rate shall be
 6-2     increased to the rate authorized by the election.  The increase in
 6-3     the maximum tax rate applies only to a tax year for which the board
 6-4     [of fire commissioners] adopts a tax rate after the date of the
 6-5     election.  A board that adopts a tax rate for a tax year on or
 6-6     before the date of the election may not adopt a new tax rate for
 6-7     that tax year after the date of the election that would exceed the
 6-8     maximum tax rate in effect on the date the tax rate was initially
 6-9     adopted for that year.
6-10           SECTION 8. Sections 775.018(b), 775.0741, and 775.0742,
6-11     Health and Safety Code, are repealed.
6-12           SECTION 9. This Act takes effect January 1, 2002, but only if
6-13     the constitutional amendment proposed by the 77th Legislature,
6-14     Regular Session, 2001, increasing the maximum tax rate allowed on
6-15     property in emergency service and rural fire prevention districts
6-16     is approved by the voters.  If that amendment is not approved by
6-17     the voters, this Act has no effect.