HBA-TBM H.B. 2744 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2744
By: Carter
County Affairs
7/25/2001
Enrolled



BACKGROUND AND PURPOSE 

During the interim immediately prior to the 77th Legislature, the House
Committee on Urban Affairs (committee) researched whether emergency
services districts (ESD) and rural fire prevention districts (RFPD) are
able to provide the highest quality services under current statutory
requirements.  Testimony indicated that ESDs and RFPDs need greater
flexibility in structuring districts to provide fire protection and
emergency services.  After studying the procedural, geographical, and
economic problems faced by ESDs and RFPDs, the committee recommended
authorizing ESDs and RFPDs to exchange territory and expanding their power
to borrow money.  House Bill 2744 enacts these recommendations.   

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. 

ANALYSIS

House Bill 2744 amends the Health and Safety Code to provide that the tax
rate of an emergency services district (ESD) or a rural fire prevention
district (RFPD) is any rate allowed by the Texas Constitution (Secs.
775.018, 775.024, 776.019, and 794.018).  The bill authorizes the board of
commissioners (board) of an ESD or RFPD to order an election to increase
the maximum tax rate of the ESD or RFPD to any rate at or below the rate
allowed by the Texas Constitution and sets forth provisions regarding
ballots, notice of the election, election date, and majority favor (Secs.
775.0745, 776.0755, and 794.0181).    

The bill authorizes a district to make a mutually agreeable change in
boundaries with another district if the maximum tax rate for the annexed
territory is not lower than that of the annexing district.  The bill sets
forth provisions regarding the effective date of change, provisions of
services, the rights of the holders of any outstanding district
obligations, and compensation by the annexing district (Secs. 775.056,
776.058, and 794.061).   

The bill provides that the limitation on the amount of debt an ESD or RFPD
is allowed to undertake in a year does not apply to the issuance of bond
anticipation notes or the borrowing of money to purchase real property or
emergency services equipment (Secs. 775.071, 776.071, and 794.071).   

The bill modifies the authority of the board of an ESD or RFPD and
authorizes the board of an ESD in a county with a population of 125,000 or
less to make financial arrangements to purchase real property or emergency
services equipment.  The bill provides that the board may pledge unattached
tax revenues or funds on hand or the property acquired with the borrowed
money to secure a loan.  If tax revenues are pledged to pay a loan, the
loan must mature not later than the 10th or 20th anniversary of the date
the loan is made for equipment or real property respectively (Secs.
775.085, 776.082, and 794.083).   

The bill provides that competitive bidding requirements are authorized but
not required of the board of an RFPD when contracting for fire
extinguishment and suppression service, emergency rescue service, or
ambulance service (Sec. 794.074).   
 
The bill repeals provisions relating to an election to increase the tax
rate of an ESD and certain provisions relating to bonds and notes issued by
an ESD or RFPD (SECTION 23).   

EFFECTIVE DATE

September 1, 2001.