By Carter                                             H.B. No. 2746
         77R8761 MXM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to emergency services and rural fire prevention districts;
 1-3     providing for a tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 775.013(a), Health and Safety Code, is
 1-6     amended to read as follows:
 1-7           (a)  The petition prescribed by Section 775.011 or 775.012
 1-8     must show:
 1-9                 (1)  that the district is to be created and is to
1-10     operate under  Article III, Section 48-e, [of the] Texas
1-11     Constitution[, as proposed by S.J.R. No. 27, Acts of the 70th
1-12     Legislature, Regular Session, 1987, and adopted by the voters at an
1-13     election held November 3, 1987];
1-14                 (2)  the name of the proposed district;
1-15                 (3)  the proposed district's boundaries as designated
1-16     by metes and bounds or other sufficient legal description;
1-17                 (4)  the services that the proposed district will
1-18     provide;
1-19                 (5)  that the creation of [none of the territory in]
1-20     the proposed district complies with Sections 775.020 and 775.0205
1-21     [is included in another emergency services district]; and
1-22                 (6) [(5)]  the mailing address of each petitioner.
1-23           SECTION 2. Section 775.020, Health and Safety Code, is
1-24     amended to read as follows:
 2-1           Sec. 775.020.  OVERLAPPING DISTRICTS LOCATED WHOLLY IN
 2-2     POPULOUS COUNTY. (a)  This section applies only to a district
 2-3     located wholly in a county with a population of more than three
 2-4     million.
 2-5           (b)  If the territory in one or more districts overlaps, the
 2-6     commissioners court of the county in which the most recently
 2-7     created district is located by order shall exclude the overlapping
 2-8     territory from that district.
 2-9           (c) [(b)]  For purposes of this section, a district is
2-10     created on the date on which the election approving its creation
2-11     was held. If the elections approving the creation of two or more
2-12     districts are held on the same date, the most recently created
2-13     district is the district for which the hearing regarding approval
2-14     of the petition for creation of the district [required by Section
2-15     775.016] was most recently held.
2-16           (d) [(c)]  The creation of a district with boundaries that
2-17     overlap the boundaries of another district does not affect the
2-18     validity of either district.
2-19           SECTION 3. Subchapter B, Chapter 775, Health and Safety Code,
2-20     is amended by adding Section 775.0205 to read as follows:
2-21           Sec. 775.0205.  OVERLAPPING DISTRICTS. (a)  If the territory
2-22     in a district created under this chapter overlaps with the
2-23     boundaries of another district created under this chapter, a
2-24     district created under Chapter 776, or a rural fire prevention
2-25     district created under Chapter 794, the most recently created
2-26     district may not provide services in the overlapping territory that
2-27     duplicate the services provided by the other district.
 3-1           (b)  If the territory in more than two districts overlaps,
 3-2     the commissioners court of the county in which the most recently
 3-3     created district is located by order shall exclude the overlapping
 3-4     territory from that district.
 3-5           (c)  For purposes of this section, a district is created on
 3-6     the date on which the election approving its creation was held.  If
 3-7     the elections approving the creation of two or more districts are
 3-8     held on the same date, the most recently created district is the
 3-9     district for which the hearing regarding approval of the petition
3-10     for creation of the district was most recently held.
3-11           (d)  The creation of a district with boundaries that overlap
3-12     the boundaries of another district does not affect the validity of
3-13     either district.
3-14           (e)  This section does not apply to a district located wholly
3-15     in a county with a population of more than three million.
3-16           SECTION 4. Section 775.023(b), Health and Safety Code, is
3-17     amended to read as follows:
3-18           (b)  The petition must show:
3-19                 (1)  that the district is to be created and is to
3-20     operate under Section 48-e, Article III, Texas Constitution[, as
3-21     proposed by S.J.R. No. 27, Acts of the 70th Legislature, Regular
3-22     Session, 1987, and adopted by the voters at an election held
3-23     November 3, 1987];
3-24                 (2)  the name of the proposed [emergency services]
3-25     district;
3-26                 (3)  the proposed [emergency services] district's
3-27     boundaries as designated by metes and bounds or other sufficient
 4-1     legal description;
 4-2                 (4)  the name of each rural fire prevention district
 4-3     that exists in the territory encompassed by the boundaries of the
 4-4     proposed [emergency services] district and that is proposed to be
 4-5     dissolved;
 4-6                 (5)  the services that the proposed district will
 4-7     provide;
 4-8                 (6)  that the creation of the proposed [none of the
 4-9     territory in the emergency services] district complies with Section
4-10     775.0205 [is included in another emergency services district]; and
4-11                 (7) [(6)]  the mailing address of each petitioner.
4-12           SECTION 5. Sections 775.024(a) and (b), Health and Safety
4-13     Code, are amended to read as follows:
4-14           (a)  On the granting of a petition under Section 775.023, the
4-15     commissioners court shall order an election to confirm the creation
4-16     of the emergency services district, authorize the imposition of a
4-17     tax not to exceed 15 [10] cents on each $100 of the taxable value
4-18     of property taxable by the district, and assume the assets and
4-19     liabilities of each rural fire prevention district that is proposed
4-20     to be dissolved.  At the same time, the commissioners court shall
4-21     order an election in each rural fire prevention district on the
4-22     question of whether to dissolve the rural fire prevention district
4-23     effective on the date that the emergency services district is
4-24     created.  Sections 775.018 and 775.019 apply to the election to
4-25     confirm the creation of the emergency services district.  Section
4-26     794.059 applies to the election to dissolve the rural fire
4-27     prevention district, except that the commissioners court shall
 5-1     perform a duty of the board of fire commissioners under that
 5-2     section.
 5-3           (b)  The ballot in the election to confirm creation of the
 5-4     emergency services district must be printed to permit voting for or
 5-5     against the proposition:  "The creation of the __________ Emergency
 5-6     Services District;  the transfer to the __________ Emergency
 5-7     Services District of the assets and liabilities of __________ Rural
 5-8     Fire Prevention District if that district is dissolved; and the
 5-9     levy of an ad valorem tax at a rate not to exceed 15 [10] cents on
5-10     each $100 valuation of property."
5-11           SECTION 6. Subchapter E, Chapter 775, Health and Safety Code,
5-12     is amended by adding Section 775.0745 to read as follows:
5-13           Sec. 775.0745.  ELECTION TO INCREASE TAX RATE. (a)  A board
5-14     may order an election to increase the maximum tax rate of the
5-15     district to any rate at or below the rate allowed by Section 48-e,
5-16     Article III, Texas Constitution.  The proposition on the ballot
5-17     must state the proposed maximum tax rate to be authorized at the
5-18     election.
5-19           (b)  The board shall give notice of the election as provided
5-20     by  Section 4.003, Election Code.  The notice shall contain the
5-21     information required by Section 4.004, Election Code.
5-22           (c)  The election shall be held on the first uniform election
5-23     date provided by the Election Code after the date of the board's
5-24     order that allows sufficient time to comply with any requirements
5-25     of law.
5-26           (d)  If a majority of the votes cast in the election favor
5-27     the increase in the maximum tax rate, the maximum tax rate for the
 6-1     district is increased to the rate authorized by the election.  The
 6-2     increase in the maximum tax rate does not apply to a tax year for
 6-3     which the board adopts a tax rate before the date of the election.
 6-4           SECTION 7. Section 776.013, Health and Safety Code, is
 6-5     amended to read as follows:
 6-6           Sec. 776.013.  CONTENTS OF PETITION. The petition for the
 6-7     creation of a district must show [contain]:
 6-8                 (1)  [a statement] that the district is to be created
 6-9     and is to operate under Article III, Section 48-e, [of the] Texas
6-10     Constitution[, as proposed by S.J.R. No. 27, Acts of the 70th
6-11     Legislature, Regular Session, 1987, and adopted by the voters at an
6-12     election held November 3, 1987];
6-13                 (2)  the name of the proposed district;
6-14                 (3)  the proposed district's boundaries as designated
6-15     by metes and bounds or other sufficient legal description;
6-16                 (4)  the services that the proposed district will
6-17     provide;
6-18                 (5)  [a statement] that the creation of [none of the
6-19     territory in] the proposed district complies with Section 776.021
6-20     [is included in another emergency services district];
6-21                 (6) [(5)]  the mailing address of each petitioner; and
6-22                 (7) [(6)]  an agreement signed by at least two
6-23     petitioners that obligates them to pay not more than $150 of the
6-24     costs incident to the formation of the district, including the
6-25     costs of publishing notices, election costs, and other necessary
6-26     and incidental expenses.
6-27           SECTION 8. Section 776.019(a), Health and Safety Code, is
 7-1     amended to read as follows:
 7-2           (a)  On the granting of a petition, the commissioners court
 7-3     shall order an election to confirm the district's creation and
 7-4     authorize the levy of a tax not to exceed 15[:]
 7-5                 [(1)  10] cents on each $100 of the taxable value of
 7-6     property taxable by the district[; or]
 7-7                 [(2)  two cents on each $100 of the taxable value of
 7-8     property taxable by the district if any area in the district is
 7-9     also included in a rural fire prevention district].
7-10           SECTION 9. Section 776.021, Health and Safety Code, is
7-11     amended to read as follows:
7-12           Sec. 776.021.  OVERLAPPING DISTRICTS. (a)  If the territory
7-13     in a district created under this chapter overlaps with the
7-14     boundaries of another district created under this chapter, a
7-15     district created under Chapter 775, or a rural fire prevention
7-16     district created under Chapter 794, the most recently created
7-17     district may not provide services in the overlapping territory that
7-18     duplicate the services provided by the other district.
7-19           (b)  If the territory in [one or] more than two districts
7-20     overlaps, the commissioners court of the county in which the most
7-21     recently created district is located by order shall exclude the
7-22     overlapping territory from that district.
7-23           (c) [(b)]  For purposes of this section, a district is
7-24     created on the date on which the election confirming its creation
7-25     was held. If the elections confirming the creation of two or more
7-26     districts are held on the same date, the most recently created
7-27     district is the district for which the hearing required by Section
 8-1     776.016 was most recently held.
 8-2           (d) [(c)]  The creation of [fact that] a district [is
 8-3     created] with boundaries that overlap the boundaries of another
 8-4     district does not affect the validity of either district.
 8-5           SECTION 10. Subchapter E, Chapter 776, Health and Safety
 8-6     Code, is amended by adding Section 776.0755 to read as follows:
 8-7           Sec. 776.0755.  ELECTION TO INCREASE TAX RATE. (a)  A board
 8-8     may order an election to increase the maximum tax rate of the
 8-9     district to any rate at or below the rate allowed by Section 48-e,
8-10     Article III, Texas Constitution.  The proposition on the ballot
8-11     must state the proposed maximum tax rate to be authorized at the
8-12     election.
8-13           (b)  The board shall give notice of the election as provided
8-14     by  Section 4.003, Election Code.  The notice shall contain the
8-15     information required by Section 4.004, Election Code.
8-16           (c)  The election shall be held on the first uniform election
8-17     date provided by the Election Code after the date of the board's
8-18     order that allows sufficient time to comply with any requirements
8-19     of law.
8-20           (d)  If a majority of the votes cast in the election favor
8-21     the increase in the maximum tax rate, the maximum tax rate for the
8-22     district is increased to the rate authorized by the election.  The
8-23     increase in the maximum tax rate does not apply to a tax year for
8-24     which the board adopts a tax rate before the date of the election.
8-25           SECTION 11. Section 794.013(a), Health and Safety Code, is
8-26     amended to read as follows:
8-27           (a)  The petition prescribed by Section 794.011 or 794.012
 9-1     must show:
 9-2                 (1)  that the district is to be created and is to
 9-3     operate under Article III, Section 48-d, [of the] Texas
 9-4     Constitution;
 9-5                 (2)  the name of the proposed district;
 9-6                 (3)  the district's boundaries as designated by metes
 9-7     and bounds or other sufficient legal description;
 9-8                 (4)  that the creation of [none of the territory in]
 9-9     the proposed district complies with Sections 794.020 and 794.0205
9-10     [is included in another rural fire prevention district]; and
9-11                 (5)  the mailing address of each petitioner.
9-12           SECTION 12. Section 794.018(a), Health and Safety Code, is
9-13     amended to read as follows:
9-14           (a)  On the granting of a petition, the commissioners court
9-15     shall order an election to confirm the district's creation and
9-16     authorize the levy of a tax not to exceed 10[:]
9-17                 [(1)  three] cents on each $100 of the taxable value of
9-18     property taxable by the district[, if no part of the district is
9-19     located in Harris County; or]
9-20                 [(2)  five cents on each $100 of the taxable value of
9-21     property taxable by the district, if any part of the district is
9-22     located in Harris County].
9-23           SECTION 13. Section 794.0181, Health and Safety Code, is
9-24     amended to read as follows:
9-25           Sec. 794.0181.  ELECTION TO INCREASE TAX RATE [IN HARRIS
9-26     COUNTY]. (a)  A [The] board [of fire commissioners of a district
9-27     any part of which is located in Harris County and the creation of
 10-1    which was confirmed when the maximum tax rate authorized by Section
 10-2    48-d, Article III, Texas Constitution, was less than the rate
 10-3    specified by Section 794.018(a)(2),] may order an election to
 10-4    increase the maximum tax rate of the district to any rate at or
 10-5    below the rate allowed by Section 48-d, Article III, Texas
 10-6    Constitution [specified by Section 794.018(a)(2)].  The proposition
 10-7    on the ballot must set out the proposed maximum tax rate to be
 10-8    authorized at the election.
 10-9          (b)  The board shall give notice of the election as provided
10-10    by Section 4.003, Election Code.  The notice shall contain the
10-11    information required by Section 4.004, Election Code.
10-12          (c)  The election shall be held on the first uniform election
10-13    date provided by the Election Code after the date of the board's
10-14    order that allows sufficient time to comply with any requirements
10-15    of law.
10-16          (d)  If a majority of the votes cast in the election favor
10-17    the increase in the maximum tax rate, the maximum tax rate shall be
10-18    increased to the rate authorized by the election.  The increase in
10-19    the maximum tax rate does not apply to a tax year for which the
10-20    board adopts a tax rate before the date of the election [applies
10-21    only to a tax year for which the board of fire commissioners adopts
10-22    a tax rate after the date of the election.  A board that adopts a
10-23    tax rate for a tax year on or before the date of the election may
10-24    not adopt a new tax rate for that tax year after the date of the
10-25    election that would exceed the maximum tax rate in effect on the
10-26    date the tax rate was initially adopted for that year].
10-27          SECTION 14. Section 794.020, Health and Safety Code, is
 11-1    amended to read as follows:
 11-2          Sec. 794.020.  OVERLAPPING DISTRICTS LOCATED WHOLLY IN
 11-3    POPULOUS COUNTY. (a)  This section applies only to a district
 11-4    located wholly in a county with a population of more than three
 11-5    million.
 11-6          (b)  If the territory in one or more districts overlaps, the
 11-7    commissioners court of the county in which the most recently
 11-8    created district is located by order shall exclude the overlapping
 11-9    territory from that district.
11-10          (c) [(b)]  For purposes of this section, a district is
11-11    created on the date on which the election approving its creation
11-12    was held.  If the elections approving the creation of two or more
11-13    districts are held on the same date, the most recently created
11-14    district is the district for which the hearing required by Section
11-15    794.016 was most recently held.
11-16          (d) [(c)]  The creation of [fact that] a district [is
11-17    created] with boundaries that overlap the boundaries of another
11-18    district does not affect the validity of either district.
11-19          SECTION 15. Subchapter B, Chapter 794, Health and Safety
11-20    Code, is amended by adding Section 794.0205 to read as follows:
11-21          Sec. 794.0205.  OVERLAPPING DISTRICTS. (a)  If the territory
11-22    in a district created under this chapter overlaps with the
11-23    boundaries of another district created under this chapter or an
11-24    emergency services district created under Chapter 775 or 776, the
11-25    most recently created district may not provide services in the
11-26    overlapping territory that duplicate the services provided by the
11-27    other district.
 12-1          (b)  If the territory in more than two districts overlaps,
 12-2    the commissioners court of the county in which the most recently
 12-3    created district is located by order shall exclude the overlapping
 12-4    territory from that district.
 12-5          (c)  For purposes of this section, a district is created on
 12-6    the date on which the election approving its creation was held.  If
 12-7    the elections approving the creation of two or more districts are
 12-8    held on the same date, the most recently created district is the
 12-9    district for which the hearing regarding approval of the petition
12-10    for creation of the district was most recently held.
12-11          (d)  The creation of a district with boundaries that overlap
12-12    the boundaries of another district does not affect the validity of
12-13    either district.
12-14          (e)  This section does not apply to a district located wholly
12-15    in a county with a population of more than three million.
12-16          SECTION 16. Sections 775.018(b), 775.0741, and 775.0742,
12-17    Health and Safety Code, are repealed.
12-18          SECTION 17. (a) Except as provided by Subsection (b) of this
12-19    section, this Act takes effect January 1, 2002.
12-20          (b)  Sections 5, 6, 8, 10, 12, and 13 of this Act take effect
12-21    January 1, 2002, but only if the constitutional amendment proposed
12-22    by the 77th Legislature, Regular Session, 2001, increasing the
12-23    maximum tax rate allowed on property in emergency service and rural
12-24    fire prevention districts is approved by the voters.  If that
12-25    amendment is not approved by the voters, those sections have no
12-26    effect.