HBA-EVB S.B. 1442 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1442 By: Barrientos Land & Resource Management 5/13/1999 Engrossed BACKGROUND AND PURPOSE Currently, the process to be undertaken by a municipality to remove certain territory from an emergency services district may be unclear. S.B. 1442 requires the board of emergency services commissioners (board), on request of a municipality, to remove territory from a district, if the territory was included in the corporate limits of the municipality at the time the territory was first included in the district; is included in any part of a district that is composed of two or more territories that are not contiguous to each other; and is surrounded on at least three sides by territory inside the municipal boundaries of a municipality with a population of 400,000 or more. S.B. 1442 also sets forth requirements for the board, municipality, and district relating to such disannexation; requires a municipality, on the district's request, to purchase at fair market value real or personal property used to provide emergency services in disannexed territory; and provides that the disannexation of territory under this section does not diminish or impair the rights of the holders of any outstanding and unpaid bonds, warrants, or other obligations of the district 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 Subchapter B, Chapter 775, Health and Safety Code, by adding Section 775.0235, as follows: Sec. 775.0235. REMOVAL OF CERTAIN TERRITORY ON REQUEST OF MUNICIPALITY. (a) Requires the board of emergency services commissioners (board) to remove territory from a district as provided by this section, on request of a municipality, if the territory: was included in the corporate limits of the municipality at the time the territory was first included in the district; is included in any part of a district that is composed of two or more territories that are not contiguous to each other; and is surrounded on at least three sides by territory inside the municipal boundaries of a municipality with a population of 400,000 or more. (b) Requires the board, on request of the municipality, to immediately disannex the territory from the district and requires the board to cease to provide further services to the residents of that territory. (c) Requires the board, on request by the municipality, in connection with a disannexation under Subsection (b), to immediately disannex all territory in the district that is included in the municipality's extraterritorial jurisdiction and requires the board to cease to provide further services to the residents of such additional territory. (d) Provides that the disannexation of territory under this section does not diminish or impair the rights of the holders of any outstanding and unpaid bonds, warrants, or other obligations of the district. (e) Requires the municipality, if territory is disannexed under this section, to compensate the district in an amount equal to the disannexed territory's pro rata share of the district's indebtedness at the time the territory is disannexed. Requires the district to apply compensation received from a municipality under this subsection exclusively to the payment of the disannexed territory's pro rata share of the district's indebtedness. (f) Requires a municipality, on the district's request, to purchase from the district at fair market value any real or personal property used to provide emergency services in territory disannexed under this section. Provides that the fair market value of that property for the purpose of this subsection is reduced by a percentage equal to the disannexed territory's pro rata share under Subsection (e), if any part of the indebtedness for which the district receives compensation under Subsection (e) was for the purchase of the real or personal property that the municipality purchases under this subsection. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.