HBA-NLM C.S.H.B. 2981 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2981
By: Hamric
County Affairs
4/11/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

An emergency services district is a special district established to provide
health and safety related services to persons and property within its
boundaries.  Such a district may be a single county district, whose board
is appointed  by the commissioners court, or a multi-county district, whose
board is elected by the voters within the district's boundaries.  The
purpose of this bill is to set forth certain provisions relating to
emergency services districts and to clarify provisions of the current
statutes.   

C.S.H.B. 2981 authorizes the district to levy and collect taxes on property
in territory annexed by a municipality and provide services to the
residents until the district's receipt of such municipality's written
request to disannex the territory.  This bill also authorizes the board of
emergency services commissioners (board), on the behalf of the district, to
borrow money and make other financial arrangements to purchase emergency
services equipment in the amount and subject to a rate of interest or other
conditions the board considers advisable.  In addition, this bill sets
forth the board's authority  to remove a commissioner if that commissioner
has missed one-half or more of the regular meetings scheduled during the 12
months prior to the vote for removal. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 775.012(b), Health and Safety Code, to provide
the format for the name of the district on a petition.  Specifies that the
name of each county  and the next available district number must be
inserted in the manner described. 

SECTION 2.  Amends Section 775.014(g), Health and Safety Code, to provide
that this section does not apply if any part of the proposed district is
located within the unincorporated area of a ceratin county.  Makes
nonsubstantive changes. 

SECTION 3.  Amends Section 775.018(b), Health and Safety Code, to delete
the exception in regard to whether the petition seeks conversion of a rural
fire prevention district into an emergency services district. 

SECTION 4.  Amends Sections 775.022(a) and (c), Health and Safety Code, to
require the board of emergency services commissioners (board) to disannex
the specified territory on receipt of a written request of the
municipality.  Requires the municipality to compensate the district in an
amount equal to the annexed territory's pro rata share of the district's
bonded and other indebtedness based on the unpaid principal balances and
the property values at the time the territory is annexed.  Requires the
district to apply compensation received from a municipality to the annexed
territory's pro rata share of the district's bonded and other indebtedness. 

SECTION 5.  Amends Sections 775.031(a) and (b), Health and Safety Code, to
authorize a district to borrow money to perform the functions of the
district and to provide emergency services. Prohibits a certain district
from providing fire prevention or fire-fighting services unless the
district  was originally a rural fire prevention district and was converted
under Section 794.100 (Conversion Authorized), rather than Section 775.056
(repealed). 

SECTION 6.  Amends Section 775.034(a), Health and Safety Code, to provide
that to be qualified to serve as a member of the board a person must meet
the specified qualifications. 

SECTION 7.  Amends Sections 775.035(b) and (c), Health and Safety Code, as
follows: 

(b)  Requires the district to establish a convenient day provided by
Section 41.001, Election Code, to conduct an election to elect the initial
emergency services commissioners.  

(h) Authorizes the board to change the election date from one authorized
election date to another authorized election date and requires the board to
adjust the terms of office to conform to the new election date. 

SECTION 8.  Amends Section 775.036, Health and Safety Code, by amending
Subsection (b) and by adding Subsections (e) and (f), as follows: 

(b)  Authorizes the board to adopt and enforce a fire code, including fines
for any violations, that does not conflict with a fire code adopted by
another political subdivision that also contains within its boundaries any
portion of the land contained in the district. Authorizes the district to
enforce the district's fire code within the boundaries of a municipality
that has adopted a fire code. Prohibits the board of a district located
wholly within a county with a population of 2.4 million or more from
adopting a fire code or a fine for a violation of the district's fire code
unless the commissioners court of the county consents to the adoption of
the code or fine. 
 
(e) Provides that a meeting of a committee of the board attended by less
than a quorum as described by this subdivision, is not subject to the
provisions of the open meetings law, Chapter 551 (Open Meetings),
Government Code. 

(f)  Requires the district to publish notice, in the manner and at such
time provided, setting forth the street address of the district's
administrative office. 

SECTION 9.  Amends Section 775.040, Health and Safety Code, to authorize a
district or a person authorized by contract on the district's behalf, to
charge a reasonable fee for emergency services performed for or on behalf
of a person or entity, including a fee for responding to a false alarm or
for a fire code inspection. 

SECTION 10.  Amends Subchapter C, Chapter 775, Health and Safety Code, by
adding Section 775.041 and 775.042, as follows: 

Sec. 775.041.  FEE PAYMENT AND COLLECTION.  (a)  Provides that a fee
imposed by a district under Section 775.040 must be paid within a
reasonable amount of time as established by the district. 

(b)  Authorizes the district to collect the fee by filing a complaint in
the appropriate court of jurisdiction, if the fee has not been paid in the
amount of time established by the district. 

(c)  Authorizes the district, if the district prevails in any suit to
collect the fee, in the same action, to recover reasonable fees for
attorneys, expert witnesses, and other cost incurred by the district in the
suit.  Requires the court to determine the amount of the attorney's fees. 

Sec. 775.042.  REMOVAL OF BOARD MEMBER.  Sets forth conditions under which
the board is authorized to remove a member.  Authorizes a member removed
from the board to file a written appeal for reinstatement to the specified
commissioners court of the county. Sets forth conditions under which the
court is authorized to reinstate the member.  Provides  that the validity
of a board action is not affected because it is taken when a ground for
removal of a board member exists. 

SECTION 11.  Amends Section 775.071, Health and Safety Code, to prohibit a
district from contracting for an amount of indebtedness in any one year
that is in excess of the anticipated revenues for the year. Includes an
exception under Section 775.085.   

SECTION 12.  Amends Section 775.0741, Health and Safety Code, to provide
that this section applies only to a district located wholly in a county
with a population of more than 2.4 million. Requires the board, rather than
the commissioners court, to annually impose an ad valorem tax on certain
properties. Deletes existing Subsection (e) relating to the requirement
that the funds collected be deposited in a county depository.  Makes
conforming changes. 

SECTION 13.  Amends Subchapter E, Chapter 775, Health and Safety Code, by
adding Section 775.085, as follows: 

Sec. 775.085.  LOAN FOR EMERGENCY SERVICE EQUIPMENT.  Authorizes the board,
on the behalf of the district, to borrow money and make other financial
arrangements to purchase emergency services equipment in the amount and
subject to a rate of interest or other conditions the board considers
advisable.  Authorizes the board to pledge certain tax revenue or equipment
to secure a loan under this section. Provides that the loan must mature not
later than the fifth anniversary of the date the loan is made, if tax
revenues are pledged to pay a loan.  

SECTION 14.  Repealer: Section 775.074(f), Health and Safety Code.

SECTION 15.  Effective date:  September 1, 1999.
                         Makes application of Section 6 of this Act
prospective. 

SECTION 16.  Emergency clause.  

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2981 modifies the original in the caption to delete text regarding
the administration, powers, duties, and operations of Emergency Services
Districts. 

C.S.H.B. 2981 modifies the original in SECTION 1 to specify the manner in
which a petition proposing a district must be filled out. 

C.S.H.B. 2981 modifies the original in SECTION 4 (Section 775.022(a),
Health and Safety Code) by deleting the proposed authority of the district
to levy and collect taxes on property in the territory and provide services
to the residents until the district's receipt of such municipality's
written request to disannex the territory.  

C.S.H.B. 2981 modifies the original in SECTION 5, by clarifying that
Section 775.031(b), Health and Safety Code, is also amended to make a
conforming change. 

C.S.H.B. 2981 modifies the original in SECTION 6 (Section 775.034, Health
and Safety Code) by amending Subsection (a), to provide that to be
qualified to serve as a member of the board a person must meet specified
qualifications.  Deletes the proposed amendments to Subsection (c),
requiring the commissioners court to appoint a successor, or reappoint the
incumbent emergency services commissioner, on January 1 of each year.
Deletes proposed (e) relating to the authority of a board by unanimous vote
of all its remaining members to remove a commissioner. 

C.S.H.B. 2981 modifies the original in SECTION 7 (Section 775.035, Health
and Safety Code), by amending Subsections (b) and (h), rather than
Subsections (a)-(h). Subsection (b) of the substitute requires the district
to establish a convenient day provided by Section 41.001, Election Code, to
conduct an election to elect the initial emergency services commissioners.
Subsection (h) of the substitute authorizes the board to change the
election date from one authorized election date to  another authorized
election date and requires the board to adjust the terms of office to
conform to the new election date. Deletes proposed Subsection (e) relating
to the authority of a board by unanimous vote of all its remaining members
to remove a commissioner. Deletes proposed language relating to eligibility
requirements to be a candidate for emergency services commissioner of a
district located in more than one county, and the election of the initial
emergency services commissioner. 

C.S.H.B. 2981 modifies the original in SECTION 8 (Section 775.036, Health
and Safety Code), by amending Subsection (b) and adding Subsections (e) and
(f), as follows: 

(b)  Authorizes the board to adopt and enforce a fire code, including fines
for any violations, that does not conflict with a fire code adopted by
another political subdivision that also contains within its boundaries any
portion of the land contained in the district. Authorizes the district to
enforce the district's fire code within the boundaries of a municipality
that has adopted a fire code. Prohibits the board of a district located
wholly within a county with a population of 2.4 million or more from
adopting a fire code or a fine for a violation of the district's fire code
unless the commissioners court of the county consents to the adoption of
the code or fine. 

C.S.H.B. 2981 modifies the original in SECTION 8 (Section 775.036, Health
and Safety Code), by redesignating text from proposed Subdivision (a)(6) to
new Subsections (e). Redesignates text from SECTION 12 (proposed Section
775.083(c), Health and Safety Code), as new Subsection (f) in this section,
as follows: 

(f)  Requires the district to publish notice, in the manner and at such
time provided, setting forth the street address of the district's
administrative office. 

C.S.H.B. 2981 clarifies the language in the original SECTION 9 (Section
775.040, Health and Safety Code), to authorize a district or a person
authorized by contract on the district's behalf, to charge a reasonable fee
for emergency services performed for or on behalf of a person or entity,
including a fee for responding to a false alarm or for a fire code
inspection. 

C.S.H.B. 2981 modifies the original by adding a new SECTION 10 (Subchapter
C, Chapter 775, Health and Safety Code), to add Sections 775.041 and
775.042, as follows: 

Sec. 775.041.  FEE PAYMENT AND COLLECTION.  (a)  Provides that a fee
imposed by a district under Section 775.040 must be paid within a
reasonable amount of time as established by the district. 

(b)  Authorizes the district to collect the fee by filing a complaint in
the appropriate court of jurisdiction, if the fee has not been paid in the
amount of time established by the district. 

(c)  Authorizes the district, if the district prevails in any suit to
collect the fee, in the same action, to recover reasonable fees for
attorneys, expert witnesses, and other cost incurred by the district in the
suit.  Requires the court to determine the amount of the attorney's fees. 

Sec. 775.042.  REMOVAL OF BOARD MEMBER.  (Text redesignated from proposed
Section 775.035(e), Chapter 775, Health and Safety Code.) 

Redesignates SECTION 10 (Section 775.071 (a) ) of the original as SECTION
11 in the substitute.  
Redesignates text from the original SECTION 10 (proposed Sections
775.071(b)-(d), Health and Safety Code), as new SECTION 13,  Section
775.085 (Loan For Emergency Services Equipment), Subchapter E, Chapter 775,
Health and Safety Code.  

Redesignates SECTION 11 of the original as SECTION 12 in the substitute.
The substitute amends Section 775.0741 (Ad Valorem Tax in District Located
Wholly in Populous Count)  by providing that this section applies only to a
district located wholly in a county with a population of more than  2.4
million. 

Redesignates SECTION 13 (emergency clause) in the original as SECTION 16 of
the substitute.  The substitute deletes the proposed language providing
that this Act is effective upon passage.