BILL ANALYSIS
By: Baxter
Committee Report (Substituted)
BACKGROUND AND PURPOSE
In order to maintain quality and efficient emergency services in rural areas outside of city limits, citizens in these rural areas can create, through a public vote, an emergency service district (ESD). The created ESD is then charged with providing timely and effective emergency services in return for compensation raised through an increase in the residents' property taxes. Each ESD, however, shares the same detrimental problem.
As municipalities annex land for growth purposes, ESDs are forced to relinquish such lands from its tax roles, and forced to find a way to maintain operations with a significantly lower tax base. CSHB 2235 addresses this issue by setting guidelines in place to be followed in the event that multiple ESDs wish to merge into one, more efficient ESD.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
SECTION 1. Subchapter B, Chapter 775, Health and Safety Code, by adding Section 775.024 which provides multiple ESDs the opportunity to merge into one large ESD for the purpose of streamlining procedures for more efficient operations. The steps to be followed for ESD mergers are as follows:
1. Majority approval from each Board of Commissioners representing the ESDs in the proposed merge.
2. Residents from each district must then approve the merger in the form of a public vote. Should one district's voters not approve the measure, then the merger is terminated.
The Boards of Directors involved are required to agree on a name for the new district and choose five commissioners to serve staggering terms on the initial board. The ballot for the election must be printed to permit voting for or against the proposition. The maximum tax rate that may be imposed by the merged district may not exceed the maximum tax rate authorized for any of the previous districts. If approved through the public vote, the created district then assumes all powers, rights, duties, assets, and liabilities of the former districts without a change in status. A merger does not diminish the rights of debt holders to collect obligations from the recently merged districts.
SECTION 2. Effective Date
EFFECTIVE DATE
Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2005.
COMPARISON OF ORIGINAL TO SUBSTITUTE
CSHB 2235 changes the merger of multiple ESD language to state that a simple majority approval is needed by the individual board of commissioners and not a unanimous decision.
CSHB 2235 also removes all provisions regarding areas annexed into municipality control, and focuses strictly on the guidelines for multiple ESDs to merge into one.