By Carter                                             H.B. No. 2745
         77R8349 MXM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the property tax rate in overlapping emergency services
 1-3     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)  On [Except as provided by Subsection (b), on] the
 1-8     granting of a petition, the commissioners court shall order an
 1-9     election to confirm the district's creation and authorize the
1-10     imposition of a tax not to exceed 10 cents on each $100 of the
1-11     taxable value of property taxable by the district [or three cents
1-12     on each $100 of the taxable value of property taxable by the
1-13     district if any area in the district is also included in a rural
1-14     fire prevention district].
1-15           SECTION 2. Subchapter E, Chapter 775, Health and Safety Code,
1-16     is amended by adding Section 775.0745 to read as follows:
1-17           Sec. 775.0745.  ELECTION TO INCREASE TAX RATE. (a)  A board
1-18     may order an election to increase the maximum tax rate of the
1-19     district to any rate at or below the rate allowed by Section 48-e,
1-20     Article III, Texas Constitution.  The proposition on the ballot
1-21     must state the proposed maximum tax rate to be authorized at the
1-22     election.
1-23           (b)  The board shall give notice of the election as provided
1-24     by  Section 4.003, Election Code.  The notice shall contain the
 2-1     information required by Section 4.004, Election Code.
 2-2           (c)  The election shall be held on the first uniform election
 2-3     date provided by the Election Code after the date of the board's
 2-4     order that allows sufficient time to comply with any requirements
 2-5     of law.
 2-6           (d)  If a majority of the votes cast in the election favor
 2-7     the increase in the maximum tax rate, the maximum tax rate for the
 2-8     district is increased to the rate authorized by the election.  The
 2-9     increase in the maximum tax rate does not apply to a tax year for
2-10     which the board adopts a tax rate before the date of the election.
2-11           SECTION 3. Section 776.019(a), Health and Safety Code, is
2-12     amended to read as follows:
2-13           (a)  On the granting of a petition, the commissioners court
2-14     shall order an election to confirm the district's creation and
2-15     authorize the levy of a tax not to exceed[:]
2-16                 [(1)]  10 cents on each $100 of the taxable value of
2-17     property taxable by the district[; or]
2-18                 [(2)  two cents on each $100 of the taxable value of
2-19     property taxable by the district if any area in the district is
2-20     also included in a rural fire prevention district].
2-21           SECTION 4. Subchapter E, Chapter 776, Health and Safety Code,
2-22     is amended by adding Section 776.0755 to read as follows:
2-23           Sec. 776.0755.  ELECTION TO INCREASE TAX RATE. (a)  A board
2-24     may order an election to increase the maximum tax rate of the
2-25     district to any rate at or below the rate allowed by Section 48-e,
2-26     Article III, Texas Constitution.  The proposition on the ballot
2-27     must state the proposed maximum tax rate to be authorized at the
 3-1     election.
 3-2           (b)  The board shall give notice of the election as provided
 3-3     by  Section 4.003, Election Code.  The notice shall contain the
 3-4     information required by Section 4.004, Election Code.
 3-5           (c)  The election shall be held on the first uniform election
 3-6     date provided by the Election Code after the date of the board's
 3-7     order that allows sufficient time to comply with any requirements
 3-8     of law.
 3-9           (d)  If a majority of the votes cast in the election favor
3-10     the increase in the maximum tax rate, the maximum tax rate for the
3-11     district is increased to the rate authorized by the election.  The
3-12     increase in the maximum tax rate does not apply to a tax year for
3-13     which the board adopts a tax rate before the date of the election.
3-14           SECTION 5. Sections 775.018(b), 775.0741, and 775.0742,
3-15     Health and Safety Code, are repealed.
3-16           SECTION 6.  This Act takes effect immediately if it receives
3-17     a vote of two-thirds of all the members elected to each house, as
3-18     provided by Section 39, Article III, Texas Constitution.  If this
3-19     Act does not receive the vote necessary for immediate effect, this
3-20     Act takes effect September 1, 2001.