By: Watson S.B. No. 1573

A BILL TO BE ENTITLED

AN ACT

relating to emergency services districts.

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

SECTION 1. Subchapter B, Chapter 775, Health and Safety Code, is amended by adding Section 775.0201 to read as follows:

Sec. 775.0201. OVERLAPPING DISTRICTS IN CERTAIN COUNTIES. (a) This section applies only to a district located wholly or partly in a county to which Subchapter K applies.

(b) 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 filed under this subchapter for creation of the proposed district.

(c) The board of the existing district shall adopt a statement before the date of the election required by Section 775.018 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.

(d) If the territory in a district created under this chapter overlaps with the boundaries of another district created under this chapter or 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 Subsection (c).

SECTION 2. The heading to Section 775.0205, Health and Safety Code, is amended to read as follows:

Sec. 775.0205. OVERLAPPING DISTRICTS IN OTHER COUNTIES.

SECTION 3. Section 775.0205(e), Health and Safety Code, is amended to read as follows:

(e) This section does not apply to a district:

(1) located wholly in a county with a population of more than three million; or

(2) located wholly or partly in a county to which Subchapter K applies.

SECTION 4. 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 of the districts votes in favor of the consolidation [merger]; and

(2) the residents of each district approve the consolidation [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) The ballot for the election to approve a consolidation [merger] shall be printed to permit voting for or against the proposition: "The consolidation [merger] of the ___________ (insert district names) to create the _______________ (insert name of proposed district), which assumes all outstanding debts of the consolidated [merged] districts."

(d) If a majority of the voters voting in each district favor the consolidation [merger], the consolidated [merged] district is created. If less than a majority of the voters voting in any of the districts are in favor of the consolidation [merger], the vote fails and the districts are not consolidated [merged].

(e) The maximum tax rate that may be imposed by the consolidated [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.

(g) This section does not apply to a district located wholly or partly in a county to which Subchapter K applies.

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

SUBCHAPTER K. CONSOLIDATION OF EMERGENCY SERVICES DISTRICTS IN

CERTAIN COUNTIES

Sec. 775.301. APPLICABILITY. This subchapter applies only to a county:

(1) with a population of less than 1.1 million;

(2) that has in its boundaries the majority of the territory of at least one municipality that has a population of 750,000 or more; and

(3) that, according to the most recent federal decennial census, had population growth of more than 20 percent during the decade preceding the most recent federal decennial census.

Sec. 775.302. CONSOLIDATION OF EMERGENCY SERVICES DISTRICTS AUTHORIZED; JOINT ORDER. (a) Two or more districts located wholly or partly in a county to which this subchapter applies may consolidate into a single district if the board of each district:

(1) determines that consolidation would allow the districts to provide services more economically and efficiently; 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) the results of any election required by Section 775.304(a).

(b) The boards shall send a copy of the joint order of consolidation to the commissioners court of each county in which the consolidated district is wholly or partly located for approval or rejection.

(c) If a commissioners court rejects the joint order, the districts may not proceed with the consolidation. If all commissioners courts approve the joint order, the districts may proceed with the consolidation. If a commissioners court does not take action on the joint order before the 91st day after the date the court receives written notice of the adoption of the joint order, the order is considered approved.

Sec. 775.303. INITIAL BOARD. (a) The boards that adopt a joint order under Section 775.302 shall appoint five commissioners from among the membership of the boards to serve on the initial board for the proposed consolidated district. The boards must agree to stagger the terms appropriately.

(b) The commissioners courts shall jointly appoint commissioners to the initial board of the consolidated district if the boards do not make the appointments before the 31st day after the later of the date the:

(1) boards adopted the joint order under Section 775.302; or

(2) commissioners court of each county in which the consolidated district is wholly or partly located approves the joint order or the order is considered approved under Section 775.302(c).

Sec. 775.304. TAXES FOR CONSOLIDATED DISTRICT. (a) If two districts that want to consolidate under Section 775.302 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. If the boards conduct an election under Section 775.0752, Section 775.0753 governs the effective date of the resulting tax rate.

Sec. 775.305. EFFECTIVE DATE OF CONSOLIDATION. (a) The consolidated district is created and may begin offering services on the latest of:

(1) the date stated in the joint order;

(2) the date all commissioners courts approve the joint order and the results of an election held under Section 775.304(a), if any; or

(3) the date the initial board of the consolidated district is appointed.

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

SECTION 6. 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.