By Carter H.B. No. 2744
77R2780 MXM-D
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. The heading to Subchapter D, Chapter 775, Health
1-5 and Safety Code, is amended to read as follows:
1-6 SUBCHAPTER D. CHANGE IN BOUNDARIES [EXPANSION] OR DISSOLUTION OF
1-7 DISTRICT
1-8 SECTION 2. Subchapter D, Chapter 775, Health and Safety Code,
1-9 is amended by adding Section 775.056 to read as follows:
1-10 Sec. 775.056. TRANSFER OF TERRITORY BETWEEN DISTRICTS.
1-11 (a) After a hearing, a district may agree with another district, a
1-12 district created under Chapter 776, or a rural fire prevention
1-13 district created under Chapter 794 to transfer territory between
1-14 the two districts. The districts shall agree on an effective date
1-15 for the transfer.
1-16 (b) If a district loses territory to another district under
1-17 this section, the district that loses territory shall immediately
1-18 disannex the territory from the district and shall cease to provide
1-19 further services to the residents of that territory.
1-20 (c) The disannexation of territory under this section does
1-21 not diminish or impair the rights of the holders of any outstanding
1-22 and unpaid bonds, warrants, or other district obligations.
1-23 (d) The annexing district shall compensate the district that
1-24 loses territory in an amount equal to the annexed territory's pro
2-1 rata share of the losing district's bonded and other indebtedness
2-2 based on the unpaid principal balances and the actual property
2-3 values at the time the territory is annexed. The district that
2-4 loses territory shall apply compensation received from the annexing
2-5 district under this subsection exclusively to the payment of the
2-6 annexed territory's pro rata share of the losing district's bonds
2-7 or other debt.
2-8 (e) At the request of a district that has lost territory,
2-9 the annexing district shall purchase from the losing district at
2-10 fair market value any property used to provide emergency services
2-11 in territory disannexed under this section.
2-12 SECTION 3. Section 775.071, Health and Safety Code, is
2-13 amended to read as follows:
2-14 Sec. 775.071. LIMITATION ON INDEBTEDNESS. (a) Except as
2-15 provided by Subsection (b) [Section 775.051, Section 775.072,
2-16 Sections 775.077-775.081, and Section 775.085], a district may not
2-17 contract for an amount of indebtedness in any one year that is in
2-18 excess of the funds then on hand and anticipated revenues for the
2-19 year.
2-20 (b) This section does not apply to Sections 775.051,
2-21 775.072, 775.077, 775.078, and 775.085.
2-22 SECTION 4. Section 775.076(c), Health and Safety Code, is
2-23 amended to read as follows:
2-24 (c) The bonds and notes may be issued to mature [serially or
2-25 otherwise] in not more than 40 years from the date of their
2-26 issuance.
2-27 SECTION 5. Section 775.085, Health and Safety Code, is
3-1 amended to read as follows:
3-2 Sec. 775.085. LOAN FOR REAL PROPERTY OR EMERGENCY SERVICES
3-3 EQUIPMENT. (a) The board, on the behalf of the district, may
3-4 borrow money and make other financial arrangements to purchase real
3-5 property or emergency services equipment in the amount and subject
3-6 to a rate of interest or other conditions the board considers
3-7 advisable.
3-8 (b) To secure a loan under this section, the board may
3-9 pledge:
3-10 (1) tax revenues or funds on hand that are not
3-11 otherwise pledged to pay a debt of the district; or
3-12 (2) the real property or equipment acquired with the
3-13 borrowed money.
3-14 (c) If tax revenues are pledged to pay a loan, the loan must
3-15 mature not later than the:
3-16 (1) 10th [fifth] anniversary of the date the loan is
3-17 made, if the loan is for equipment; or
3-18 (2) 20th anniversary of the date the loan is made, if
3-19 the loan is for real property.
3-20 SECTION 6. Subchapter D, Chapter 776, Health and Safety Code,
3-21 is amended by adding Section 776.058 to read as follows:
3-22 Sec. 776.058. TRANSFER OF TERRITORY BETWEEN DISTRICTS.
3-23 (a) After a hearing, a district may agree with another district, a
3-24 district created under Chapter 775, or a rural fire prevention
3-25 district created under Chapter 794 to transfer territory between
3-26 the two districts. The districts shall agree on an effective date
3-27 for the transfer.
4-1 (b) If a district loses territory to another district under
4-2 this section, the district that loses territory shall immediately
4-3 disannex the territory from the district and shall cease to provide
4-4 further services to the residents of that territory.
4-5 (c) The disannexation of territory under this section does
4-6 not diminish or impair the rights of the holders of any outstanding
4-7 and unpaid bonds, warrants, or other district obligations.
4-8 (d) The annexing district shall compensate the district that
4-9 loses territory in an amount equal to the annexed territory's pro
4-10 rata share of the losing district's bonded and other indebtedness
4-11 based on the unpaid principal balances and the actual property
4-12 values at the time the territory is annexed. The district that
4-13 loses territory shall apply compensation received from the annexing
4-14 district under this subsection exclusively to the payment of the
4-15 annexed territory's pro rata share of the losing district's bonds
4-16 or other debt.
4-17 (e) At the request of a district that has lost territory,
4-18 the annexing district shall purchase from the losing district at
4-19 fair market value any property used to provide emergency services
4-20 in territory disannexed under this section.
4-21 SECTION 7. Section 776.071, Health and Safety Code, is
4-22 amended to read as follows:
4-23 Sec. 776.071. LIMITATION ON INDEBTEDNESS. (a) Except as
4-24 provided by Subsection (b) [Section 776.072 and Sections
4-25 776.076-776.081], a district may not contract for an amount of
4-26 indebtedness in any one year that is in excess of the funds then on
4-27 hand or that may be paid from current revenues for the year.
5-1 (b) This section does not apply to Sections 776.072,
5-2 776.076, 776.077, 776.078, and 776.082.
5-3 SECTION 8. Section 776.076(c), Health and Safety Code, is
5-4 amended to read as follows:
5-5 (c) The bonds and notes may be issued to mature [serially or
5-6 otherwise] in not more than 40 years from the date of their
5-7 issuance.
5-8 SECTION 9. Subchapter E, Chapter 776, Health and Safety Code,
5-9 is amended by adding Section 776.082 to read as follows:
5-10 Sec. 776.082. LOAN FOR REAL PROPERTY OR EMERGENCY SERVICES
5-11 EQUIPMENT. (a) The board, on the behalf of the district, may
5-12 borrow money and make other financial arrangements to purchase real
5-13 property or emergency services equipment in the amount and subject
5-14 to a rate of interest or other conditions the board considers
5-15 advisable.
5-16 (b) To secure a loan under this section, the board may
5-17 pledge:
5-18 (1) tax revenues or funds on hand that are not
5-19 otherwise pledged to pay a debt of the district; or
5-20 (2) the real property or equipment acquired with the
5-21 borrowed money.
5-22 (c) If tax revenues are pledged to pay a loan, the loan must
5-23 mature not later than the:
5-24 (1) 10th anniversary of the date the loan is made, if
5-25 the loan is for equipment; or
5-26 (2) 20th anniversary of the date the loan is made, if
5-27 the loan is for real property.
6-1 SECTION 10. Subchapter D, Chapter 794, Health and Safety
6-2 Code, is amended by adding Section 794.061 to read as follows:
6-3 Sec. 794.061. TRANSFER OF TERRITORY BETWEEN DISTRICTS.
6-4 (a) After a hearing, a district may agree with another district or
6-5 an emergency services district created under Chapter 775 or Chapter
6-6 776 to transfer territory between the two districts. The districts
6-7 shall agree on an effective date for the transfer.
6-8 (b) If a district loses territory to another district under
6-9 this section, the district that loses territory shall immediately
6-10 disannex the territory from the district and shall cease to provide
6-11 further services to the residents of that territory.
6-12 (c) The disannexation of territory under this section does
6-13 not diminish or impair the rights of the holders of any outstanding
6-14 and unpaid bonds, warrants, or other district obligations.
6-15 (d) The annexing district shall compensate the district that
6-16 loses territory in an amount equal to the annexed territory's pro
6-17 rata share of the losing district's bonded and other indebtedness
6-18 based on the unpaid principal balances and the actual property
6-19 values at the time the territory is annexed. The district that
6-20 loses territory shall apply compensation received from the annexing
6-21 district under this subsection exclusively to the payment of the
6-22 annexed territory's pro rata share of the losing district's bonds
6-23 or other debt.
6-24 (e) At the request of a district that has lost territory,
6-25 the annexing district shall purchase from the losing district at
6-26 fair market value any property used to provide emergency services
6-27 in territory disannexed under this section.
7-1 SECTION 11. Section 794.071, Health and Safety Code, is
7-2 amended to read as follows:
7-3 Sec. 794.071. LIMITATION ON INDEBTEDNESS. (a) Except as
7-4 provided by Subsection (b) [Sections 794.072, 794.076-794.081, and
7-5 794.083], a district may not contract for an amount of indebtedness
7-6 in any one year that is in excess of the funds then on hand or that
7-7 may be paid from current revenues for the year.
7-8 (b) This section does not apply to Sections 794.072,
7-9 794.076, 794.077, 794.078, and 794.083.
7-10 SECTION 12. Section 794.076(c), Health and Safety Code, is
7-11 amended to read as follows:
7-12 (c) The bonds and notes may be issued to mature [serially or
7-13 otherwise] in not more than 40 years from the date of their
7-14 issuance.
7-15 SECTION 13. Section 794.083, Health and Safety Code, is
7-16 amended to read as follows:
7-17 Sec. 794.083. LOAN FOR REAL PROPERTY OR FIRE-FIGHTING
7-18 EQUIPMENT. (a) The board, on the behalf of the district, may
7-19 borrow money and make other financial arrangements to purchase real
7-20 property or a fire engine or similar heavy fire-fighting equipment
7-21 in the amount and subject to a rate of interest or other conditions
7-22 the board considers advisable.
7-23 (b) To secure a loan under this section, the board may
7-24 pledge:
7-25 (1) tax revenues or funds on hand that are not
7-26 otherwise pledged to pay a debt of the district; or
7-27 (2) the real property or equipment acquired with the
8-1 borrowed money.
8-2 (c) If tax revenues are pledged to pay a loan, the loan must
8-3 mature not later than the:
8-4 (1) 10th [fifth] anniversary of the date the loan is
8-5 made, if the loan is for equipment; or
8-6 (2) 20th anniversary of the date the loan is made, if
8-7 the loan is for real property.
8-8 SECTION 14. The following laws are repealed:
8-9 (1) Sections 775.076(e), (f), and (g), Health and
8-10 Safety Code;
8-11 (2) Section 775.079, Health and Safety Code;
8-12 (3) Section 775.080, Health and Safety Code;
8-13 (4) Section 775.081, Health and Safety Code;
8-14 (5) Sections 776.076(e), (f), and (g), Health and
8-15 Safety Code;
8-16 (6) Section 776.079, Health and Safety Code;
8-17 (7) Section 776.080, Health and Safety Code;
8-18 (8) Section 776.081, Health and Safety Code;
8-19 (9) Sections 794.076(e), (f), and (g), Health and
8-20 Safety Code;
8-21 (10) Section 794.079, Health and Safety Code;
8-22 (11) Section 794.080, Health and Safety Code; and
8-23 (12) Section 794.081, Health and Safety Code.
8-24 SECTION 15. This Act does not impair any obligation created
8-25 by the issuance of bonds, notes, or other obligations in accordance
8-26 with prior law, and all bonds, notes, or other obligations validly
8-27 issued under provisions revised or repealed remain valid,
9-1 enforceable, and binding according to their terms and shall be paid
9-2 from the sources pledged to their payment. Bonds, notes, or other
9-3 obligations authorized but unissued on the effective date of this
9-4 Act may be issued in compliance with and subject to the provisions
9-5 of the prior law.
9-6 SECTION 16. (a) All acts and proceedings taken under Chapter
9-7 775 or Chapter 776, Health and Safety Code, to create an emergency
9-8 services district that is performing the functions of a district on
9-9 the effective date of this Act are validated, and creation of the
9-10 district is confirmed.
9-11 (b) This section does not apply to a matter that on the
9-12 effective date of this Act:
9-13 (1) is involved in litigation if the litigation
9-14 ultimately results in the creation of the district being held
9-15 invalid by a final judgment of a court; or
9-16 (2) has been held invalid by a final judgment of a
9-17 court.
9-18 SECTION 17. This Act takes effect September 1, 2001.