By: Wentworth S.B. No. 917

(In the Senate - Filed February 24, 2011; March 8, 2011, read first time and referred to Committee on Intergovernmental Relations; April 4, 2011, reported favorably by the following vote: Yeas 4, Nays 0; April 4, 2011, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to emergency service districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 775.018, Health and Safety Code, is amended by adding Subsections (f) and (g) to read as follows:

(f) If the territory of a district proposed under this chapter overlaps with the boundaries of another district created under this chapter or Chapter 776, the commissioners court of each county in which the proposed district is located shall send to the board of the existing district a copy of the petition for creation of the proposed district. This subsection does not apply to a proposed district located wholly in a county with a population of more than three million.

(g) The board of the existing district shall adopt a statement before the date of the election required by this section that specifies the types of emergency services the existing district will provide or continue to provide in the overlapping territory if the proposed district is created. This subsection does not apply to a proposed district located wholly in a county with a population of more than three million.

SECTION 2. Section 775.0205, Health and Safety Code, is amended by amending Subsection (a) and adding Subsections (d-1), (d-2), and (d-3) to read as follows:

(a) If the territory in a district created under this chapter overlaps with the boundaries of another district created under this chapter or a district created under Chapter 776, the most recently created district may not provide services in the overlapping territory that duplicate the services described in the statement required by Section 775.018(g) [provided by the other district at the time the overlapping district was created].

(d-1) The legislature finds that the performance of non-duplicative emergency services in the overlapping territory of emergency service districts is complementary to and not in conflict with the powers and duties of the respective districts.

(d-2) A person may serve as an emergency services commissioner of a district created under this chapter at the same time that the person serves as an emergency services commissioner of another district with overlapping territory created under this chapter or Chapter 776.

(d-3) A person serving as a commissioner of more than one district under this section:

(1) may receive compensation for serving on only one board; and

(2) is entitled to reimbursement for reasonable and necessary expenses incurred in performing official duties for both boards.

SECTION 3. Section 775.024, Health and Safety Code, is amended to read as follows:

Sec. 775.024. CONSOLIDATION [MERGER] OF EMERGENCY SERVICES DISTRICTS. (a) Two or more emergency services districts may consolidate [merge] into a single emergency services district [as provided by this section] if[:

[(1)] the board of each district:

(1) determines that consolidation would allow the districts to provide services more economically and efficiently [of the districts votes in favor of the merger]; and

(2) adopts a joint order of consolidation that includes:

(A) the name and territory of the consolidated district;

(B) the proposed date on which the former districts dissolve and the consolidated district is created and will start offering services; and

(C) if the maximum ad valorem tax rates in the districts are different, a statement that the districts will consolidate only if voters approve an ad valorem tax rate at the election required by Section 775.0241 [the residents of each district approve the merger in an election held for that purpose].

(b) The boards shall agree on a name for the proposed consolidated [merged] district and choose five commissioners from among the membership of the boards to serve on the initial board for the proposed district. The boards shall agree to stagger the terms appropriately.

(c) If the boards do not make the appointments before the 31st day after the date the boards adopted the joint order, the commissioners courts shall jointly appoint commissioners to the board of the consolidated district. [The ballot for the election to approve a merger shall be printed to permit voting for or against the proposition: "The merger of the _________ (insert district names) to create the _______________ (insert name of proposed district), which assumes all outstanding debts of the merged districts."]

(d) The consolidated district is created on the latest of:

(1) the date stated in the joint order;

(2) the date the initial board of the consolidated district is appointed; or

(3) the date the maximum ad valorem tax rates the consolidated district may impose under Section 775.0241 are established, if necessary [If a majority of the voters voting in each district favor the merger, the merged district is created. If less than a majority of the voters voting in any of the districts are in favor of the merger, the vote fails and the districts are not merged].

(e) [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.

[(f)] The consolidated [merged] district assumes all powers, rights, duties, assets, and liabilities of the former districts without a change in status. The consolidation [merger] does not diminish or impair the rights of the holders of any outstanding and unpaid bonds, warrants, or obligations of the district.

SECTION 4. Subchapter B, Chapter 775, Health and Safety Code, is amended by adding Section 775.0241 to read as follows:

Sec. 775.0241. TAXES FOR CONSOLIDATED DISTRICT. (a) If two districts that want to consolidate under Section 775.024 have different maximum ad valorem tax rates, the board of the district with the lower maximum ad valorem tax rate shall order an election in its district under Section 775.0745 to authorize the imposition of taxes in the territory of that district at a maximum rate that equals the maximum rate authorized in the district with the higher maximum rate.

(b) If a majority of the voters do not favor the increase in the maximum ad valorem tax rate under Subsection (a), the districts may not proceed with the consolidation.

(c) If the districts have different sales and use tax rates, the board of the consolidated district shall designate the territory of the former districts as subdistricts and shall continue to impose the sales and use tax in each subdistrict at the rate the tax was imposed by the former district.

(d) Subsection (c) does not limit the authority of the board of the consolidated district to order an election under Section 775.0752 in a subdistrict or in the entire district.

SECTION 5. Subchapter C, Chapter 775, Health and Safety Code, is amended by adding Sections 775.0365 and 775.0366 to read as follows:

Sec. 775.0365. BOARD TRAINING. (a) In this section, "department" means the Texas Department of Rural Affairs.

(b) Each emergency services commissioner shall complete a training course:

(1) for the commissioner's initial term, not later than the earlier of:

(A) the 180th day after the date the commissioner takes the oath of office; or

(B) the 180th day after the date the commissioner assumes responsibilities as an emergency services commissioner; and

(2) not later than the second anniversary of each date the commissioner completes a training course.

(c) The department shall:

(1) determine the minimum course requirements; and

(2) make the course available.

(d) The department may provide the training course. The department must approve any training course provided by an entity other than the department.

(e) The training course must provide instruction in:

(1) district responsibilities;

(2) board responsibilities;

(3) government administration;

(4) ethics laws relating to public officers; and

(5) the governance and management of emergency services.

(f) The entity providing the training course shall provide a certificate of course completion to each person who completes the course.

(g) An emergency services commissioner who completes the training course shall file a copy of the certificate of course completion with the commissioners court of each county in which the district is located not later than the 10th day after the date the commissioner is required to complete the course under Subsection (b).

Sec. 775.0366. SERVICE CONTRACTS. (a) In this section:

(1) "Local government" has the meaning assigned by Section 791.003, Government Code.

(2) "Volunteer fire department" means an association that:

(A) operates firefighting equipment;

(B) is organized primarily to provide and actively provides firefighting services;

(C) does not pay its members compensation other than nominal compensation; and

(D) does not distribute any of its income to its members, officers, or governing body, other than for reimbursement of expenses.

(b) The board may contract with a volunteer fire department or a local government, including another district, to provide staff, facilities, equipment, programs, or services the board considers necessary to provide or obtain emergency services.

(c) A person acting under a contract under this section, including an emergency services commissioner, does not, because of that action, hold more than one civil office of emolument or more than one office of honor, trust, or profit.

(d) Except as provided by Subsection (e), if a district contracts with a local government under this section to provide or obtain emergency services, the district is responsible for any civil liability that arises from furnishing those services if the district would have been responsible for furnishing the services in the absence of the contract.

(e) The parties to a contract between governmental entities under this section may agree to assign responsibility for civil liability that arises from services provided under the contract in any manner agreed to by the parties. The parties must assign that responsibility in a written provision of the contract that specifically references this subsection and states that the assignment of liability is intended to be different from liability otherwise assigned under Subsection (d).

(f) This section does not change the liability limits and immunities for a governmental unit under Chapter 101, Civil Practice and Remedies Code, or other law.

(g) A contract under this section is not a joint enterprise for liability purposes.

SECTION 6. The heading to Section 775.0422, Health and Safety Code, is amended to read as follows:

Sec. 775.0422. REMOVAL OF APPOINTED BOARD MEMBER BY COMMISSIONERS COURT [FOR FAILURE TO GIVE REPORT].

SECTION 7. Section 775.0422, Health and Safety Code, is amended by amending Subsections (b) and (c) and adding Subsection (b-1) to read as follows:

(b) The commissioners court of the county in which a district is located, by an order adopted by a majority vote after a hearing, may remove one or more board members if the board failed to give a [the] report required by Section 775.036 [775.036(a)(4)] to the commissioners court before the 91st day after the date on which the report is [was] due under that section.

(b-1) The commissioners court of the county in which a district is located, by an order adopted by a majority vote after a hearing, may remove a board member if the board member does not complete a training course and file a copy of the certificate of course completion as required by Section 775.0365. If the district is located in more than one county, the commissioners court of each county must adopt the order before the board member may be removed.

(c) Before the 60th day after the date on which the report or certificate of course completion is [was] due, each commissioners court seeking removal under this section must notify the board members that it is considering that action.

SECTION 8. Section 775.074, Health and Safety Code, is amended by adding Subsection (d-1) to read as follows:

(d-1) The board may not set the tax rate for a fiscal year before the date the board adopts a budget for that fiscal year.

SECTION 9. Section 775.082, Health and Safety Code, is amended by adding Subsection (e-1) to read as follows:

(e-1) When a district located wholly in one county fails to complete and file the audit report by September 1 of each year and a county auditor is not ordered to prepare the report, the board is abolished and the commissioners court shall appoint a new board as provided by Section 775.034.

SECTION 10. Section 776.019, Health and Safety Code, is amended by adding Subsections (e) and (f) to read as follows:

(e) If the territory of a district proposed under this chapter overlaps with the boundaries of another district created under this chapter or Chapter 775, the commissioners court of each county in which the proposed district is located shall send to the board of the existing district a copy of the petition for creation of the proposed district.

(f) The board of the existing district shall adopt a statement before the date of the election required by this section that specifies the types of emergency services the existing district will provide or continue to provide in the overlapping territory if the proposed district is created.

SECTION 11. Section 776.021, Health and Safety Code, is amended by amending Subsection (a) and adding Subsections (e), (f), and (g) to read as follows:

(a) If the territory in a district created under this chapter overlaps with the boundaries of another district created under this chapter or a district operating under Chapter 775, the most recently created district may not provide services in the overlapping territory that duplicate the services described in the statement required by Section 776.019(f) [provided by the other district].

(e) The legislature finds that the performance of non-duplicative emergency services in the overlapping territory of emergency service districts is complementary to and not in conflict with the powers and duties of the respective districts.

(f) A person may serve as an emergency commissioner of a district created under this chapter at the same time that the person serves as an emergency commissioner of another district with overlapping territory created under this chapter or Chapter 775.

(g) A person serving as a commissioner of more than one district under this section:

(1) may receive compensation for serving on only one board; and

(2) is entitled to reimbursement for reasonable and necessary expenses incurred in performing official duties for both boards.

SECTION 12. Subchapter C, Chapter 776, Health and Safety Code, is amended by adding Sections 776.0355, 776.0356, and 776.038 to read as follows:

Sec. 776.0355. BOARD TRAINING. (a) In this section, "department" means the Texas Department of Rural Affairs.

(b) Each emergency commissioner shall complete a training course:

(1) for the commissioner's initial term, not later than the earlier of:

(A) the 180th day after the date the commissioner takes the oath of office; or

(B) the 180th day after the date the commissioner assumes responsibilities as an emergency commissioner; and

(2) not later than the second anniversary of each date the commissioner completes a training course.

(c) The department shall:

(1) determine the minimum course requirements; and

(2) make the course available.

(d) The department may provide the training course. The department must approve any training course provided by an entity other than the department.

(e) The training course must provide instruction in:

(1) district responsibilities;

(2) board responsibilities;

(3) government administration;

(4) ethics laws relating to public officers; and

(5) the governance and management of emergency services.

(f) The entity providing the training course shall provide a certificate of course completion to each person who completes the course.

(g) An emergency commissioner who completes the training course shall file a copy of the certificate of course completion with the commissioners court of each county in which the district is located not later than the 10th day after the date the commissioner is required to complete the course under Subsection (b).

Sec. 776.0356. REMOVAL OF APPOINTED BOARD MEMBER BY COMMISSIONERS COURT. (a) The commissioners court of each county in which a district is located, by an order adopted by a majority vote after a hearing, may remove an appointed board member if the board member fails to complete a training course and file a copy of the certificate of course completion as required by Section 776.0355.

(b) Before the 60th day after the date the certificate of completion is due, each commissioners court seeking removal under this section must notify the board members that it is considering that action.

Sec. 776.038. SERVICE CONTRACTS. (a) In this section:

(1) "Local government" has the meaning assigned by Section 791.003, Government Code.

(2) "Volunteer fire department" means an association that:

(A) operates firefighting equipment;

(B) is organized primarily to provide and actively provides firefighting services;

(C) does not pay its members compensation other than nominal compensation; and

(D) does not distribute any of its income to its members, officers, or governing body, other than for reimbursement of expenses.

(b) The board may contract with a volunteer fire department or a local government, including another district, to provide staff, facilities, equipment, programs, or services the board considers necessary to provide or obtain emergency services.

(c) A person acting under a contract under this section, including an emergency commissioner, does not, because of that action, hold more than one civil office of emolument or more than one office of honor, trust, or profit.

(d) Except as provided by Subsection (e), if a district contracts with a local government under this section to provide or obtain emergency services, the district is responsible for any civil liability that arises from furnishing those services if the district would have been responsible for furnishing the services in the absence of the contract.

(e) The parties to a contract between governmental entities under this section may agree to assign responsibility for civil liability that arises from services provided under the contract in any manner agreed to by the parties. The parties must assign that responsibility in a written provision of the contract that specifically references this subsection and states that the assignment of liability is intended to be different from liability otherwise assigned under Subsection (d).

(f) This section does not change the liability limits and immunities for a governmental unit under Chapter 101, Civil Practice and Remedies Code, or other law.

(g) A contract under this section is not a joint enterprise for liability purposes.

SECTION 13. Section 776.075, Health and Safety Code, is amended by adding Subsection (d-1) to read as follows:

(d-1) The board may not set the tax rate for a fiscal year before the date the board adopts a budget for that fiscal year.

SECTION 14. (a) In this section, "department" means the Texas Department of Rural Affairs.

(b) Not later than June 1, 2012, the department shall make available a training course as required by Sections 775.0365 and 776.0355, Health and Safety Code, as added by this Act.

(c) The deadlines to take the course under Subsection (b), Section 775.0365, and Subsection (b), Section 776.0355, Health and Safety Code, as added by this Act, do not apply to an emergency services commissioner or emergency commissioner appointed or elected to a board of emergency services commissioners or a board of emergency commissioners for a term that starts before June 1, 2012. Not later than the 90th day after the date the department makes available a training course under Subsection (b) of this section, an emergency services commissioner or emergency commissioner described by this subsection must complete the course.

SECTION 15. The changes in law made by this Act to Chapter 776, Health and Safety Code, take effect only if Senate Bill No. 359 or another similar bill of the Regular Session of the 82nd Legislature relating to repealing Chapter 776, Health and Safety Code, is not enacted. If Senate Bill No. 359 or another similar bill of the Regular Session of the 82nd Legislature relating to repealing Chapter 776, Health and Safety Code, is enacted and becomes law, the changes in law made by this Act to Chapter 776, Health and Safety Code, do not take effect.

SECTION 16. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.

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