By: Lucio  S.B. No. 2212
         (In the Senate - Filed March 13, 2009; March 31, 2009, read
  first time and referred to Committee on Finance; April 30, 2009,
  reported adversely, with favorable Committee Substitute by the
  following vote:  Yeas 9, Nays 0; April 30, 2009, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 2212 By:  Lucio
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to authorizing an emergency services district to impose an
  ad valorem tax for the acquisition of land, equipment, or apparatus
  or the construction of capital improvements.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (a), Section 775.018, Health and
  Safety Code, is amended to read as follows:
         (a)  On the granting of a petition, the commissioners court
  shall order an election to confirm the district's creation and
  authorize the imposition of the taxes provided, [a tax] not to
  exceed the rates [rate] allowed by Section 48-e, Article III, Texas
  Constitution.  Any conditions negotiated under Section 775.014(h)
  must be included on the ballot.
         SECTION 2.  The heading to Section 775.074, Health and
  Safety Code, is amended to read as follows:
         Sec. 775.074.  AD VALOREM TAXES [TAX].
         SECTION 3.  Section 775.074, Health and Safety Code, is
  amended by amending Subsection (a) and adding Subsections (a-1),
  (a-2), and (a-3) to read as follows:
         (a)  The board shall annually impose an ad valorem tax on all
  real and personal property located in the district and subject to
  district taxation for the operating and capital [district's]
  support of the district [and the purposes authorized by this
  chapter].
         (a-1)  In addition to the ad valorem tax authorized under
  Subsection (a), the board, after its establishment following an
  election held under Section 775.018 and subject to Section
  775.0745(a-1), shall annually impose an additional ad valorem tax
  on all real and personal property in the district that is subject to
  district taxation for the exclusive purposes of the acquisition of
  land, equipment, or apparatus or the construction of capital
  improvements, as described in the capital improvements plan filed
  under Subsection (a-2). The board may use the tax for any related
  purpose or pledge the revenue from the tax to pay the principal of
  and interest on any bonds or notes issued or other indebtedness,
  including loans and other financial arrangements described by
  Section 775.085, to acquire land, equipment, or apparatus or to
  construct capital improvements under this section, as the interest
  and principal come due and to provide reserve funds if prescribed in
  the resolution authorizing or the trust indenture securing the
  bonds, notes, or other indebtedness. The revenue from the tax
  authorized under this subsection shall be maintained in an account
  separate from the maintenance and operations funds of the district.  
  A tax authorized by an election held under Section 775.0745(a-1)
  may not be imposed on or after the date that:
               (1)  the purchase price of the capital assets as
  provided by the capital improvements plan is paid in full; and
               (2)  the bonds, notes, or other indebtedness, including
  loans and other financial arrangements described by Section
  775.085, as authorized by the capital improvements plan, are paid
  in full.
         (a-2)  The district may impose the tax under Subsection (a-1)
  only if imposition of the tax is approved by the district voters
  voting in an election held under Section 775.0745.  At least 30 days
  before the date the board orders an election to authorize the
  additional tax described by Subsection (a-1), the district shall
  file in the administrative office of the district a capital
  improvements plan that is open to public inspection and that
  describes the planned acquisition of land, equipment, or apparatus
  or the planned construction of the capital improvements and their
  estimated cost and incidental expenses.  The capital improvements
  plan is not:
               (1)  part of a proposition to be voted on; or
               (2)  a contract with the voters.
         (a-3)  In addition to any other information required by law,
  notice of an election to authorize the additional tax described by
  Subsection (a-1) must contain a copy of each proposition that will
  be voted on at the election. The notice must include an estimate of
  the probable cost of land, equipment, or apparatus or the
  construction of capital improvements contained in the capital
  improvements plan filed under Subsection (a-2) and any incidental
  expenses connected with the issuance of bonds, notes, or other
  indebtedness.
         SECTION 4.  The heading to Section 775.0745, Health and
  Safety Code, is amended to read as follows:
         Sec. 775.0745.  ELECTION TO INCREASE TAX RATE OR IMPOSE TAX.
         SECTION 5.  Section 775.0745, Health and Safety Code, is
  amended by adding Subsection (a-1) to read as follows:
         (a-1)  If the board decides to increase a tax imposed under
  Section 775.074(a-1) to any rate above the rate approved by the
  voters under Section 775.074(a-2), the board must order an election
  to authorize the tax rate increase. The proposition on the ballot
  must state the proposed tax rate to be authorized at the election
  and the notice for the election must conform to the requirements
  prescribed by Subsection (b) and Section 775.074(a-3).
         SECTION 6.  This Act takes effect January 1, 2010, but only
  if the constitutional amendment proposed by the 81st Legislature,
  Regular Session, 2009, to authorize an emergency services district
  to impose an ad valorem tax on property situated in the district not
  to exceed five cents for the acquisition of land, equipment, or
  apparatus or the construction of capital improvements, is approved
  by the voters. If the proposed amendment is not approved by the
  voters, this Act has no effect.
 
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