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.