1-1 By: Carter, et al. (Senate Sponsor - Madla) H.B. No. 2744
1-2 (In the Senate - Received from the House May 11, 2001;
1-3 May 11, 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 4, 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 emergency services and rural fire prevention districts.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 775.018(a), Health and Safety Code, is
1-12 amended to read as follows:
1-13 (a) Except as provided by Subsection (b), on the granting of
1-14 a petition, the commissioners court shall order an election to
1-15 confirm the district's creation and authorize the imposition of a
1-16 tax not to exceed the rate allowed by Section 48-e, Article III,
1-17 Texas Constitution [10 cents on each $100 of the taxable value of
1-18 property taxable by the district or three cents on each $100 of the
1-19 taxable value of property taxable by the district if any area in
1-20 the district is also included in a rural fire prevention district].
1-21 SECTION 2. Sections 775.024(a) and (b), Health and Safety
1-22 Code, are amended to read as follows:
1-23 (a) On the granting of a petition under Section 775.023, the
1-24 commissioners court shall order an election to confirm the creation
1-25 of the emergency services district, authorize the imposition of a
1-26 tax not to exceed the rate allowed by Section 48-e, Article III,
1-27 Texas Constitution [10 cents on each $100 of the taxable value of
1-28 property taxable by the district], and assume the assets and
1-29 liabilities of each rural fire prevention district that is proposed
1-30 to be dissolved. At the same time, the commissioners court shall
1-31 order an election in each rural fire prevention district on the
1-32 question of whether to dissolve the rural fire prevention district
1-33 effective on the date that the emergency services district is
1-34 created. Sections 775.018 and 775.019 apply to the election to
1-35 confirm the creation of the emergency services district. Section
1-36 794.059 applies to the election to dissolve the rural fire
1-37 prevention district, except that the commissioners court shall
1-38 perform a duty of the board of fire commissioners under that
1-39 section.
1-40 (b) The ballot in the election to confirm creation of the
1-41 emergency services district must be printed to permit voting for or
1-42 against the proposition: "The creation of the __________ Emergency
1-43 Services District; the transfer to the __________ Emergency
1-44 Services District of the assets and liabilities of __________ Rural
1-45 Fire Prevention District if that district is dissolved; and the
1-46 levy of an ad valorem tax at a rate not to exceed ____ [10] cents
1-47 on each $100 valuation of property."
1-48 SECTION 3. Subchapter E, Chapter 775, Health and Safety
1-49 Code, is amended by adding Section 775.0745 to read as follows:
1-50 Sec. 775.0745. ELECTION TO INCREASE TAX RATE. (a) A board
1-51 may order an election to increase the maximum tax rate of the
1-52 district to any rate at or below the rate allowed by Section 48-e,
1-53 Article III, Texas Constitution. The proposition on the ballot
1-54 must state the proposed maximum tax rate to be authorized at the
1-55 election.
1-56 (b) The board shall give notice of the election as provided
1-57 by Section 4.003, Election Code. The notice shall contain the
1-58 information required by Section 4.004, Election Code.
1-59 (c) The election shall be held on the first uniform election
1-60 date provided by the Election Code after the date of the board's
1-61 order that allows sufficient time to comply with any requirements
1-62 of law.
1-63 (d) If a majority of the votes cast in the election favor
1-64 the increase in the maximum tax rate, the maximum tax rate for the
2-1 district is increased to the rate authorized by the election. The
2-2 increase in the maximum tax rate does not apply to a tax year for
2-3 which the board adopts a tax rate before the date of the election.
2-4 (e) This section does not apply to a district created under
2-5 Section 775.018(b).
2-6 SECTION 4. The heading to Subchapter D, Chapter 775, Health
2-7 and Safety Code, is amended to read as follows:
2-8 SUBCHAPTER D. CHANGE IN BOUNDARIES [EXPANSION]
2-9 OR DISSOLUTION OF DISTRICT
2-10 SECTION 5. Subchapter D, Chapter 775, Health and Safety
2-11 Code, is amended by adding Section 775.056 to read as follows:
2-12 Sec. 775.056. TRANSFER OF TERRITORY BETWEEN DISTRICTS. (a)
2-13 After a hearing, a district may make mutually agreeable changes in
2-14 boundaries with another district, or a district created under
2-15 Chapter 776, provided that the maximum tax rate authorized for such
2-16 a district does not exceed the maximum tax rate previously
2-17 authorized for any territory added to that district. The districts
2-18 shall agree on an effective date for the changes in boundaries.
2-19 (b) The changes in boundaries under this section do not
2-20 diminish or impair the rights of the holders of any outstanding and
2-21 unpaid bonds, warrants, or other district obligations.
2-22 (c) A district shall compensate the district that loses
2-23 territory in an amount equal to that territory's pro rata share of
2-24 the losing district's bonded and other indebtedness based on the
2-25 unpaid principal balances and the actual property values at the
2-26 time the changes in boundaries are made. The district that loses
2-27 territory shall apply compensation received from the annexing
2-28 district under this subsection exclusively to the payment of the
2-29 annexed territory's pro rata share of the losing district's bonds
2-30 or other debt.
2-31 SECTION 6. Section 775.071, Health and Safety Code, is
2-32 amended to read as follows:
2-33 Sec. 775.071. LIMITATION ON INDEBTEDNESS. (a) Except as
2-34 provided by Subsection (b) [Section 775.051, Section 775.072,
2-35 Sections 775.077-775.081, and Section 775.085], a district may not
2-36 contract for an amount of indebtedness in any one year that is in
2-37 excess of the funds then on hand and anticipated revenues for the
2-38 year.
2-39 (b) This section does not apply to Sections 775.051,
2-40 775.072, 775.076, 775.077, 775.078, 775.079, and 775.085.
2-41 SECTION 7. Section 775.076(c), Health and Safety Code, is
2-42 amended to read as follows:
2-43 (c) The bonds and notes may be issued to mature [serially or
2-44 otherwise] in not more than 40 years from the date of their
2-45 issuance.
2-46 SECTION 8. Section 775.085, Health and Safety Code, is
2-47 amended to read as follows:
2-48 Sec. 775.085. LOAN FOR REAL PROPERTY OR EMERGENCY SERVICES
2-49 EQUIPMENT. (a) The board, on the behalf of the district, may
2-50 borrow money and make other financial arrangements to purchase real
2-51 property or emergency services equipment in the amount and subject
2-52 to a rate of interest or other conditions the board considers
2-53 advisable.
2-54 (b) To secure a loan under this section, the board may
2-55 pledge:
2-56 (1) tax revenues or funds on hand that are not
2-57 otherwise pledged to pay a debt of the district; or
2-58 (2) the real property or equipment acquired with the
2-59 borrowed money.
2-60 (c) If tax revenues are pledged to pay a loan, the loan must
2-61 mature not later than the:
2-62 (1) 10th [fifth] anniversary of the date the loan is
2-63 made, if the loan is for equipment; or
2-64 (2) 20th anniversary of the date the loan is made, if
2-65 the loan is for real property.
2-66 SECTION 9. Section 776.019(a), Health and Safety Code, is
2-67 amended to read as follows:
2-68 (a) On the granting of a petition, the commissioners court
2-69 shall order an election to confirm the district's creation and
3-1 authorize the levy of a tax not to exceed the rate allowed by
3-2 Section 48-e, Article III, Texas Constitution[:]
3-3 [(1) 10 cents on each $100 of the taxable value of
3-4 property taxable by the district; or]
3-5 [(2) two cents on each $100 of the taxable value of
3-6 property taxable by the district if any area in the district is
3-7 also included in a rural fire prevention district].
3-8 SECTION 10. Subchapter D, Chapter 776, Health and Safety
3-9 Code, is amended by adding Section 776.058 to read as follows:
3-10 Sec. 776.058. TRANSFER OF TERRITORY BETWEEN DISTRICTS. (a)
3-11 After a hearing, a district may make mutually agreeable changes in
3-12 boundaries with another district, or a district created under
3-13 Chapter 775, provided that the maximum tax rate authorized for such
3-14 a district does not exceed the maximum tax rate previously
3-15 authorized for any territory added to that district. The districts
3-16 shall agree on an effective date for the changes in boundaries.
3-17 (b) The changes in boundaries under this section do not
3-18 diminish or impair the rights of the holders of any outstanding and
3-19 unpaid bonds, warrants, or other district obligations.
3-20 (c) A district shall compensate the district that loses
3-21 territory in an amount equal to that territory's pro rata share of
3-22 the losing district's bonded and other indebtedness based on the
3-23 unpaid principal balances and the actual property values at the
3-24 time the changes in boundaries are made. The district that loses
3-25 territory shall apply compensation received from the annexing
3-26 district under this subsection exclusively to the payment of the
3-27 annexed territory's pro rata share of the losing district's bonds
3-28 or other debt.
3-29 SECTION 11. Section 776.071, Health and Safety Code, is
3-30 amended to read as follows:
3-31 Sec. 776.071. LIMITATION ON INDEBTEDNESS. (a) Except as
3-32 provided by Subsection (b) [Section 776.072 and Sections
3-33 776.076-776.081], a district may not contract for an amount of
3-34 indebtedness in any one year that is in excess of the funds then on
3-35 hand or that may be paid from current revenues for the year.
3-36 (b) This section does not apply to Sections 776.072,
3-37 776.076, 776.077, 776.078, 776.079, and 776.082.
3-38 SECTION 12. Subchapter E, Chapter 776, Health and Safety
3-39 Code, is amended by adding Section 776.0755 to read as follows:
3-40 Sec. 776.0755. ELECTION TO INCREASE TAX RATE. (a) A board
3-41 may order an election to increase the maximum tax rate of the
3-42 district to any rate at or below the rate allowed by Section 48-e,
3-43 Article III, Texas Constitution. The proposition on the ballot
3-44 must state the proposed maximum tax rate to be authorized at the
3-45 election.
3-46 (b) The board shall give notice of the election as provided
3-47 by Section 4.003, Election Code. The notice shall contain the
3-48 information required by Section 4.004, Election Code.
3-49 (c) The election shall be held on the first uniform election
3-50 date provided by the Election Code after the date of the board's
3-51 order that allows sufficient time to comply with any requirements
3-52 of law.
3-53 (d) If a majority of the votes cast in the election favor
3-54 the increase in the maximum tax rate, the maximum tax rate for the
3-55 district is increased to the rate authorized by the election. The
3-56 increase in the maximum tax rate does not apply to a tax year for
3-57 which the board adopts a tax rate before the date of the election.
3-58 SECTION 13. Section 776.076(c), Health and Safety Code, is
3-59 amended to read as follows:
3-60 (c) The bonds and notes may be issued to mature [serially or
3-61 otherwise] in not more than 40 years from the date of their
3-62 issuance.
3-63 SECTION 14. Subchapter E, Chapter 776, Health and Safety
3-64 Code, is amended by adding Section 776.082 to read as follows:
3-65 Sec. 776.082. LOAN FOR REAL PROPERTY OR EMERGENCY SERVICES
3-66 EQUIPMENT. (a) The board, on the behalf of the district, may
3-67 borrow money and make other financial arrangements to purchase real
3-68 property or emergency services equipment in the amount and subject
3-69 to a rate of interest or other conditions the board considers
4-1 advisable.
4-2 (b) To secure a loan under this section, the board may
4-3 pledge:
4-4 (1) tax revenues or funds on hand that are not
4-5 otherwise pledged to pay a debt of the district; or
4-6 (2) the real property or equipment acquired with the
4-7 borrowed money.
4-8 (c) If tax revenues are pledged to pay a loan, the loan must
4-9 mature not later than the:
4-10 (1) 10th anniversary of the date the loan is made, if
4-11 the loan is for equipment; or
4-12 (2) 20th anniversary of the date the loan is made, if
4-13 the loan is for real property.
4-14 SECTION 15. Section 794.018(a), Health and Safety Code, is
4-15 amended to read as follows:
4-16 (a) On the granting of a petition, the commissioners court
4-17 shall order an election to confirm the district's creation and
4-18 authorize the levy of a tax not to exceed the rate allowed by
4-19 Section 48-d, Article III, Texas Constitution[:]
4-20 [(1) three cents on each $100 of the taxable value of
4-21 property taxable by the district, if no part of the district is
4-22 located in Harris County; or]
4-23 [(2) five cents on each $100 of the taxable value of
4-24 property taxable by the district, if any part of the district is
4-25 located in Harris County].
4-26 SECTION 16. Section 794.0181, Health and Safety Code, is
4-27 amended to read as follows:
4-28 Sec. 794.0181. ELECTION TO INCREASE TAX RATE [IN HARRIS
4-29 COUNTY]. (a) A [The] board [of fire commissioners of a district
4-30 any part of which is located in Harris County and the creation of
4-31 which was confirmed when the maximum tax rate authorized by Section
4-32 48-d, Article III, Texas Constitution, was less than the rate
4-33 specified by Section 794.018(a)(2),] may order an election to
4-34 increase the maximum tax rate of the district to any rate at or
4-35 below the rate allowed by Section 48-d, Article III, Texas
4-36 Constitution [specified by Section 794.018(a)(2)]. The proposition
4-37 on the ballot must set out the proposed maximum tax rate to be
4-38 authorized at the election.
4-39 (b) The board shall give notice of the election as provided
4-40 by Section 4.003, Election Code. The notice shall contain the
4-41 information required by Section 4.004, Election Code.
4-42 (c) The election shall be held on the first uniform election
4-43 date provided by the Election Code after the date of the board's
4-44 order that allows sufficient time to comply with any requirements
4-45 of law.
4-46 (d) If a majority of the votes cast in the election favor
4-47 the increase in the maximum tax rate, the maximum tax rate shall be
4-48 increased to the rate authorized by the election. The increase in
4-49 the maximum tax rate applies only to a tax year for which the board
4-50 [of fire commissioners] adopts a tax rate after the date of the
4-51 election. A board that adopts a tax rate for a tax year on or
4-52 before the date of the election may not adopt a new tax rate for
4-53 that tax year after the date of the election that would exceed the
4-54 maximum tax rate in effect on the date the tax rate was initially
4-55 adopted for that year.
4-56 SECTION 17. Subchapter D, Chapter 794, Health and Safety
4-57 Code, is amended by adding Section 794.061 to read as follows:
4-58 Sec. 794.061. TRANSFER OF TERRITORY BETWEEN DISTRICTS. (a)
4-59 After a hearing, a district may make mutually agreeable changes in
4-60 boundaries with another district, provided that the maximum tax
4-61 rate authorized for such a district does not exceed the maximum tax
4-62 rate previously authorized for any territory added to that
4-63 district. The districts shall agree on an effective date for the
4-64 changes in boundaries.
4-65 (b) The changes in boundaries under this section do not
4-66 diminish or impair the rights of the holders of any outstanding and
4-67 unpaid bonds, warrants, or other district obligations.
4-68 (c) A district shall compensate the district that loses
4-69 territory in an amount equal to that territory's pro rata share of
5-1 the losing district's bonded and other indebtedness based on the
5-2 unpaid principal balances and the actual property values at the
5-3 time the changes in boundaries are made. The district that loses
5-4 territory shall apply compensation received from the annexing
5-5 district under this subsection exclusively to the payment of the
5-6 annexed territory's pro rata share of the losing district's bonds
5-7 or other debt.
5-8 SECTION 18. Section 794.071, Health and Safety Code, is
5-9 amended to read as follows:
5-10 Sec. 794.071. LIMITATION ON INDEBTEDNESS. (a) Except as
5-11 provided by Subsection (b) [Sections 794.072, 794.076-794.081, and
5-12 794.083], a district may not contract for an amount of indebtedness
5-13 in any one year that is in excess of the funds then on hand or that
5-14 may be paid from current revenues for the year.
5-15 (b) This section does not apply to Sections 794.072,
5-16 794.076, 794.077, 794.078, 794.079, and 794.083.
5-17 SECTION 19. Section 794.074(i), Health and Safety Code, is
5-18 amended to read as follows:
5-19 (i) This section does not apply to:
5-20 (1) [to] the purchase or lease of real property;
5-21 (2) [to] an item or service that the board determines
5-22 can be obtained from only one source; [or]
5-23 (3) a contract for fire extinguishment and suppression
5-24 service, emergency rescue service, or ambulance service; or
5-25 (4) an emergency expenditure.
5-26 SECTION 20. Section 794.074, Health and Safety Code, is
5-27 amended by adding Subsection (j) to read as follows:
5-28 (j) Subsection (i) does not prohibit the board from
5-29 soliciting competitive bids for any item, service, or contract
5-30 listed in Subsection (i).
5-31 SECTION 21. Section 794.076(c), Health and Safety Code, is
5-32 amended to read as follows:
5-33 (c) The bonds and notes may be issued to mature [serially or
5-34 otherwise] in not more than 40 years from the date of their
5-35 issuance.
5-36 SECTION 22. Section 794.083, Health and Safety Code, is
5-37 amended to read as follows:
5-38 Sec. 794.083. LOAN FOR REAL PROPERTY OR FIRE-FIGHTING
5-39 EQUIPMENT. (a) The board, on the behalf of the district, may
5-40 borrow money and make other financial arrangements to purchase real
5-41 property or a fire engine or similar heavy fire-fighting equipment
5-42 in the amount and subject to a rate of interest or other conditions
5-43 the board considers advisable.
5-44 (b) To secure a loan under this section, the board may
5-45 pledge:
5-46 (1) tax revenues or funds on hand that are not
5-47 otherwise pledged to pay a debt of the district; or
5-48 (2) the real property or equipment acquired with the
5-49 borrowed money.
5-50 (c) If tax revenues are pledged to pay a loan, the loan must
5-51 mature not later than the:
5-52 (1) 10th [fifth] anniversary of the date the loan is
5-53 made, if the loan is for equipment; or
5-54 (2) 20th anniversary of the date the loan is made, if
5-55 the loan is for real property.
5-56 SECTION 23. The following laws are repealed:
5-57 (1) Section 775.0742, Health and Safety Code;
5-58 (2) Sections 775.076(e), (f), and (g), Health and
5-59 Safety Code;
5-60 (3) Section 775.079, Health and Safety Code;
5-61 (4) Section 775.080, Health and Safety Code;
5-62 (5) Section 775.081, Health and Safety Code;
5-63 (6) Sections 776.076(e), (f), and (g), Health and
5-64 Safety Code;
5-65 (7) Section 776.079, Health and Safety Code;
5-66 (8) Section 776.080, Health and Safety Code;
5-67 (9) Section 776.081, Health and Safety Code;
5-68 (10) Sections 794.076(e), (f), and (g), Health and
5-69 Safety Code;
6-1 (11) Section 794.079, Health and Safety Code;
6-2 (12) Section 794.080, Health and Safety Code; and
6-3 (13) Section 794.081, Health and Safety Code.
6-4 SECTION 24. This Act does not impair any obligation created
6-5 by the issuance of bonds, notes, or other obligations in accordance
6-6 with prior law, and all bonds, notes, or other obligations validly
6-7 issued under provisions revised or repealed remain valid,
6-8 enforceable, and binding according to their terms and shall be paid
6-9 from the sources pledged to their payment. Bonds, notes, or other
6-10 obligations authorized but unissued on the effective date of this
6-11 Act may be issued in compliance with and subject to the provisions
6-12 of the prior law.
6-13 SECTION 25. (a) All acts and proceedings taken under
6-14 Chapter 775 or Chapter 776, Health and Safety Code, to create an
6-15 emergency services district that is performing the functions of a
6-16 district on the effective date of this Act are validated, and
6-17 creation of the district is confirmed.
6-18 (b) This section does not apply to a matter that on the
6-19 effective date of this Act:
6-20 (1) is involved in litigation if the litigation
6-21 ultimately results in the creation of the district being held
6-22 invalid by a final judgment of a court; or
6-23 (2) has been held invalid by a final judgment of a
6-24 court.
6-25 SECTION 26. This Act takes effect immediately if it receives
6-26 a vote of two-thirds of all the members elected to each house, as
6-27 provided by Section 39, Article III, Texas Constitution. If this
6-28 Act does not receive the vote necessary for immediate effect, this
6-29 Act takes effect September 1, 2001.
6-30 * * * * *