By Carter, Hawley, Clark, Chisum H.B. No. 2744
Substitute the following for H.B. No. 2744:
By Ramsay C.S.H.B. No. 2744
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to emergency services and rural fire prevention districts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 775.018(a), Health and Safety Code, is
1-5 amended to read as follows:
1-6 (a) Except as provided by Subsection (b), on the granting of
1-7 a petition, the commissioners court shall order an election to
1-8 confirm the district's creation and authorize the imposition of a
1-9 tax not to exceed the rate allowed by Section 48-e, Article III,
1-10 Texas Constitution [10 cents on each $100 of the taxable value of
1-11 property taxable by the district or three cents on each $100 of the
1-12 taxable value of property taxable by the district if any area in
1-13 the district is also included in a rural fire prevention district].
1-14 SECTION 2. Sections 775.024(a) and (b), Health and Safety
1-15 Code, are amended to read as follows:
1-16 (a) On the granting of a petition under Section 775.023, the
1-17 commissioners court shall order an election to confirm the creation
1-18 of the emergency services district, authorize the imposition of a
1-19 tax not to exceed the rate allowed by Section 48-e, Article III,
1-20 Texas Constitution [10 cents on each $100 of the taxable value of
1-21 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 ____ [10] cents
2-16 on each $100 valuation of property."
2-17 SECTION 3. Subchapter E, Chapter 775, Health and Safety
2-18 Code, 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 does not apply to a tax year for
3-9 which the board adopts a tax rate before the date of the election.
3-10 (e) This section does not apply to a district created under
3-11 Section 775.018(b).
3-12 SECTION 4. The heading to Subchapter D, Chapter 775, Health
3-13 and Safety Code, is amended to read as follows:
3-14 SUBCHAPTER D. CHANGE IN BOUNDARIES [EXPANSION]
3-15 OR DISSOLUTION OF DISTRICT
3-16 SECTION 5. Subchapter D, Chapter 775, Health and Safety
3-17 Code, is amended by adding Section 775.056 to read as follows:
3-18 Sec. 775.056. TRANSFER OF TERRITORY BETWEEN DISTRICTS. (a)
3-19 After a hearing, a district may make mutually agreeable changes in
3-20 boundaries with another district, or a district created under
3-21 Chapter 776, provided that the maximum tax rate authorized for such
3-22 a district does not exceed the maximum tax rate previously
3-23 authorized for any territory added to that district. The districts
3-24 shall agree on an effective date for the changes in boundaries.
3-25 (b) The changes in boundaries under this section do not
3-26 diminish or impair the rights of the holders of any outstanding and
3-27 unpaid bonds, warrants, or other district obligations.
4-1 (c) A district shall compensate the district that loses
4-2 territory in an amount equal to that territory's pro rata share of
4-3 the losing district's bonded and other indebtedness based on the
4-4 unpaid principal balances and the actual property values at the
4-5 time the changes in boundaries are made. The district that loses
4-6 territory shall apply compensation received from the annexing
4-7 district under this subsection exclusively to the payment of the
4-8 annexed territory's pro rata share of the losing district's bonds
4-9 or other debt.
4-10 SECTION 6. Section 775.071, Health and Safety Code, is
4-11 amended to read as follows:
4-12 Sec. 775.071. LIMITATION ON INDEBTEDNESS. (a) Except as
4-13 provided by Subsection (b) [Section 775.051, Section 775.072,
4-14 Sections 775.077-775.081, and Section 775.085], a district may not
4-15 contract for an amount of indebtedness in any one year that is in
4-16 excess of the funds then on hand and anticipated revenues for the
4-17 year.
4-18 (b) This section does not apply to Sections 775.051,
4-19 775.072, 775.076, 775.077, 775.078, 775.079 and 775.085.
4-20 SECTION 7. Section 775.076(c), Health and Safety Code, is
4-21 amended to read as follows:
4-22 (c) The bonds and notes may be issued to mature [serially or
4-23 otherwise] in not more than 40 years from the date of their
4-24 issuance.
4-25 SECTION 8. Section 775.085, Health and Safety Code, is
4-26 amended to read as follows:
4-27 Sec. 775.085. LOAN FOR REAL PROPERTY OR EMERGENCY SERVICES
5-1 EQUIPMENT. (a) The board, on the behalf of the district, may
5-2 borrow money and make other financial arrangements to purchase real
5-3 property or emergency services equipment in the amount and subject
5-4 to a rate of interest or other conditions the board considers
5-5 advisable.
5-6 (b) To secure a loan under this section, the board may
5-7 pledge:
5-8 (1) tax revenues or funds on hand that are not
5-9 otherwise pledged to pay a debt of the district; or
5-10 (2) the real property or equipment acquired with the
5-11 borrowed money.
5-12 (c) If tax revenues are pledged to pay a loan, the loan must
5-13 mature not later than the:
5-14 (1) 10th [fifth] anniversary of the date the loan is
5-15 made, if the loan is for equipment; or
5-16 (2) 20th anniversary of the date the loan is made, if
5-17 the loan is for real property.
5-18 SECTION 9. Section 776.019(a), Health and Safety Code, is
5-19 amended to read as follows:
5-20 (a) On the granting of a petition, the commissioners court
5-21 shall order an election to confirm the district's creation and
5-22 authorize the levy of a tax not to exceed the rate allowed by
5-23 Section 48-e, Article III, Texas Constitution[:]
5-24 [(1) 10 cents on each $100 of the taxable value of
5-25 property taxable by the district; or]
5-26 [(2) two cents on each $100 of the taxable value of
5-27 property taxable by the district if any area in the district is
6-1 also included in a rural fire prevention district].
6-2 SECTION 10. Subchapter D, Chapter 776, Health and Safety
6-3 Code, is amended by adding Section 776.058 to read as follows:
6-4 Sec. 776.058. TRANSFER OF TERRITORY BETWEEN DISTRICTS. (a)
6-5 After a hearing, a district may make mutually agreeable changes in
6-6 boundaries with another district, or a district created under
6-7 Chapter 775, provided that the maximum tax rate authorized for such
6-8 a district does not exceed the maximum tax rate previously
6-9 authorized for any territory added to that district. The districts
6-10 shall agree on an effective date for the changes in boundaries.
6-11 (b) The changes in boundaries under this section do not
6-12 diminish or impair the rights of the holders of any outstanding and
6-13 unpaid bonds, warrants, or other district obligations.
6-14 (c) A district shall compensate the district that loses
6-15 territory in an amount equal to that territory's pro rata share of
6-16 the losing district's bonded and other indebtedness based on the
6-17 unpaid principal balances and the actual property values at the
6-18 time the changes in boundaries are made. The district that loses
6-19 territory shall apply compensation received from the annexing
6-20 district under this subsection exclusively to the payment of the
6-21 annexed territory's pro rata share of the losing district's bonds
6-22 or other debt.
6-23 SECTION 11. Section 776.071, Health and Safety Code, is
6-24 amended to read as follows:
6-25 Sec. 776.071. LIMITATION ON INDEBTEDNESS. (a) Except as
6-26 provided by Subsection (b) [Section 776.072 and Sections
6-27 776.076-776.081], a district may not contract for an amount of
7-1 indebtedness in any one year that is in excess of the funds then on
7-2 hand or that may be paid from current revenues for the year.
7-3 (b) This section does not apply to Sections 776.072,
7-4 776.076, 776.077, 776.078, 776.079 and 776.082.
7-5 SECTION 12. Subchapter E, Chapter 776, Health and Safety
7-6 Code, is amended by adding Section 776.0755 to read as follows:
7-7 Sec. 776.0755. ELECTION TO INCREASE TAX RATE. (a) A board
7-8 may order an election to increase the maximum tax rate of the
7-9 district to any rate at or below the rate allowed by Section 48-e,
7-10 Article III, Texas Constitution. The proposition on the ballot
7-11 must state the proposed maximum tax rate to be authorized at the
7-12 election.
7-13 (b) The board shall give notice of the election as provided
7-14 by Section 4.003, Election Code. The notice shall contain the
7-15 information required by Section 4.004, Election Code.
7-16 (c) The election shall be held on the first uniform election
7-17 date provided by the Election Code after the date of the board's
7-18 order that allows sufficient time to comply with any requirements
7-19 of law.
7-20 (d) If a majority of the votes cast in the election favor
7-21 the increase in the maximum tax rate, the maximum tax rate for the
7-22 district is increased to the rate authorized by the election. The
7-23 increase in the maximum tax rate does not apply to a tax year for
7-24 which the board adopts a tax rate before the date of the election.
7-25 SECTION 13. Section 776.076(c), Health and Safety Code, is
7-26 amended to read as follows:
7-27 (c) The bonds and notes may be issued to mature [serially or
8-1 otherwise] in not more than 40 years from the date of their
8-2 issuance.
8-3 SECTION 14. Subchapter E, Chapter 776, Health and Safety
8-4 Code, is amended by adding Section 776.082 to read as follows:
8-5 Sec. 776.082. LOAN FOR REAL PROPERTY OR EMERGENCY SERVICES
8-6 EQUIPMENT. (a) The board, on the behalf of the district, may
8-7 borrow money and make other financial arrangements to purchase real
8-8 property or emergency services equipment in the amount and subject
8-9 to a rate of interest or other conditions the board considers
8-10 advisable.
8-11 (b) To secure a loan under this section, the board may
8-12 pledge:
8-13 (1) tax revenues or funds on hand that are not
8-14 otherwise pledged to pay a debt of the district; or
8-15 (2) the real property or equipment acquired with the
8-16 borrowed money.
8-17 (c) If tax revenues are pledged to pay a loan, the loan must
8-18 mature not later than the:
8-19 (1) 10th anniversary of the date the loan is made, if
8-20 the loan is for equipment; or
8-21 (2) 20th anniversary of the date the loan is made, if
8-22 the loan is for real property.
8-23 SECTION 15. Section 794.018(a), Health and Safety Code, is
8-24 amended to read as follows:
8-25 (a) On the granting of a petition, the commissioners court
8-26 shall order an election to confirm the district's creation and
8-27 authorize the levy of a tax not to exceed the rate allowed by
9-1 Section 48-d, Article III, Texas Constitution[:]
9-2 [(1) three cents on each $100 of the taxable value of
9-3 property taxable by the district, if no part of the district is
9-4 located in Harris County; or]
9-5 [(2) five cents on each $100 of the taxable value of
9-6 property taxable by the district, if any part of the district is
9-7 located in Harris County].
9-8 SECTION 16. Section 794.0181, Health and Safety Code, is
9-9 amended to read as follows:
9-10 Sec. 794.0181. ELECTION TO INCREASE TAX RATE [IN HARRIS
9-11 COUNTY]. (a) A [The] board [of fire commissioners of a district
9-12 any part of which is located in Harris County and the creation of
9-13 which was confirmed when the maximum tax rate authorized by Section
9-14 48-d, Article III, Texas Constitution, was less than the rate
9-15 specified by Section 794.018(a)(2),] may order an election to
9-16 increase the maximum tax rate of the district to any rate at or
9-17 below the rate allowed by Section 48-d, Article III, Texas
9-18 Constitution [specified by Section 794.018(a)(2)]. The proposition
9-19 on the ballot must set out the proposed maximum tax rate to be
9-20 authorized at the election.
9-21 (b) The board shall give notice of the election as provided
9-22 by Section 4.003, Election Code. The notice shall contain the
9-23 information required by Section 4.004, Election Code.
9-24 (c) The election shall be held on the first uniform election
9-25 date provided by the Election Code after the date of the board's
9-26 order that allows sufficient time to comply with any requirements
9-27 of law.
10-1 (d) If a majority of the votes cast in the election favor
10-2 the increase in the maximum tax rate, the maximum tax rate shall be
10-3 increased to the rate authorized by the election. The increase in
10-4 the maximum tax rate applies only to a tax year for which the board
10-5 [of fire commissioners] adopts a tax rate after the date of the
10-6 election. A board that adopts a tax rate for a tax year on or
10-7 before the date of the election may not adopt a new tax rate for
10-8 that tax year after the date of the election that would exceed the
10-9 maximum tax rate in effect on the date the tax rate was initially
10-10 adopted for that year.
10-11 SECTION 17. Subchapter D, Chapter 794, Health and Safety
10-12 Code, is amended by adding Section 794.061 to read as follows:
10-13 Sec. 794.061. TRANSFER OF TERRITORY BETWEEN DISTRICTS. (a)
10-14 After a hearing, a district may make mutually agreeable changes in
10-15 boundaries with another district, provided that the maximum tax
10-16 rate authorized for such a district does not exceed the maximum tax
10-17 rate previously authorized for any territory added to that
10-18 district. The districts shall agree on an effective date for the
10-19 changes in boundaries.
10-20 (b) The changes in boundaries under this section do not
10-21 diminish or impair the rights of the holders of any outstanding and
10-22 unpaid bonds, warrants, or other district obligations.
10-23 (c) A district shall compensate the district that loses
10-24 territory in an amount equal to that territory's pro rata share of
10-25 the losing district's bonded and other indebtedness based on the
10-26 unpaid principal balances and the actual property values at the
10-27 time the changes in boundaries are made. The district that loses
11-1 territory shall apply compensation received from the annexing
11-2 district under this subsection exclusively to the payment of the
11-3 annexed territory's pro rata share of the losing district's bonds
11-4 or other debt.
11-5 SECTION 18. Section 794.071, Health and Safety Code, is
11-6 amended to read as follows:
11-7 Sec. 794.071. LIMITATION ON INDEBTEDNESS. (a) Except as
11-8 provided by Subsection (b) [Sections 794.072, 794.076-794.081, and
11-9 794.083], a district may not contract for an amount of indebtedness
11-10 in any one year that is in excess of the funds then on hand or that
11-11 may be paid from current revenues for the year.
11-12 (b) This section does not apply to Sections 794.072,
11-13 794.076, 794.077, 794.078, 794.079 and 794.083.
11-14 SECTION 19. Section 794.074(i), Health and Safety Code, is
11-15 amended to read as follows:
11-16 (i) This section does not apply to:
11-17 (1) [to] the purchase or lease of real property;
11-18 (2) [to] an item or service that the board determines
11-19 can be obtained from only one source; [or]
11-20 (3) a contract for fire extinguishment and suppression
11-21 service, emergency rescue service, or ambulance service; or
11-22 (4) an emergency expenditure.
11-23 SECTION 20. Subchapter E, Chapter 794, Health and Safety
11-24 Code, is amended by adding Section 794.074(j) to read as follows:
11-25 (j) Subsection (i) does not prohibit the board from
11-26 soliciting competitive bids for any item, service, or contract
11-27 listed in Subsection (i).
12-1 SECTION 21. Section 794.076(c), Health and Safety Code, is
12-2 amended to read as follows:
12-3 (c) The bonds and notes may be issued to mature [serially or
12-4 otherwise] in not more than 40 years from the date of their
12-5 issuance.
12-6 SECTION 22. Section 794.083, Health and Safety Code, is
12-7 amended to read as follows:
12-8 Sec. 794.083. LOAN FOR REAL PROPERTY OR FIRE-FIGHTING
12-9 EQUIPMENT. (a) The board, on the behalf of the district, may
12-10 borrow money and make other financial arrangements to purchase real
12-11 property or a fire engine or similar heavy fire-fighting equipment
12-12 in the amount and subject to a rate of interest or other conditions
12-13 the board considers advisable.
12-14 (b) To secure a loan under this section, the board may
12-15 pledge:
12-16 (1) tax revenues or funds on hand that are not
12-17 otherwise pledged to pay a debt of the district; or
12-18 (2) the real property or equipment acquired with the
12-19 borrowed money.
12-20 (c) If tax revenues are pledged to pay a loan, the loan must
12-21 mature not later than the:
12-22 (1) 10th [fifth] anniversary of the date the loan is
12-23 made, if the loan is for equipment; or
12-24 (2) 20th anniversary of the date the loan is made, if
12-25 the loan is for real property.
12-26 SECTION 23. The following laws are repealed:
12-27 (1) Section 775.0742;
13-1 (2) Sections 775.076(e), (f), and (g), Health and
13-2 Safety Code;
13-3 (3) Section 775.079, Health and Safety Code;
13-4 (4) Section 775.080, Health and Safety Code;
13-5 (5) Section 775.081, Health and Safety Code;
13-6 (6) Sections 776.076(e), (f), and (g), Health and
13-7 Safety Code;
13-8 (7) Section 776.079, Health and Safety Code;
13-9 (8) Section 776.080, Health and Safety Code;
13-10 (9) Section 776.081, Health and Safety Code;
13-11 (10) Sections 794.076(e), (f), and (g), Health and
13-12 Safety Code;
13-13 (11) Section 794.079, Health and Safety Code;
13-14 (12) Section 794.080, Health and Safety Code; and
13-15 (13) Section 794.081, Health and Safety Code.
13-16 SECTION 24. This Act does not impair any obligation created
13-17 by the issuance of bonds, notes, or other obligations in accordance
13-18 with prior law, and all bonds, notes, or other obligations validly
13-19 issued under provisions revised or repealed remain valid,
13-20 enforceable, and binding according to their terms and shall be paid
13-21 from the sources pledged to their payment. Bonds, notes, or other
13-22 obligations authorized but unissued on the effective date of this
13-23 Act may be issued in compliance with and subject to the provisions
13-24 of the prior law.
13-25 SECTION 25. (a) All acts and proceedings taken under
13-26 Chapter 775 or Chapter 776, Health and Safety Code, to create an
13-27 emergency services district that is performing the functions of a
14-1 district on the effective date of this Act are validated, and
14-2 creation of the district is confirmed.
14-3 (b) This section does not apply to a matter that on the
14-4 effective date of this Act:
14-5 (1) is involved in litigation if the litigation
14-6 ultimately results in the creation of the district being held
14-7 invalid by a final judgment of a court; or
14-8 (2) has been held invalid by a final judgment of a
14-9 court.
14-10 SECTION 26. This Act takes effect immediately if it receives
14-11 a vote of two-thirds of all the members elected to each house, as
14-12 provided by Section 39, Article III, Texas Constitution. If this
14-13 Act does not receive the vote necessary for immediate effect, this
14-14 Act takes effect September 1, 2001.