Health and Safety Code
CHAPTER 775. EMERGENCY SERVICES DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 775.001. Definitions.
In this chapter:
(1) "Board" means the board of emergency services
commissioners.
(2) "District" means an emergency services district created
under this chapter.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.002. Liberal Construction.
This chapter and a proceeding under this chapter shall be
liberally construed to achieve the purposes of this chapter.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.003. Authorization.
An emergency services district may be organized as provided by
Article III, Section 48-e, of the Texas Constitution, as proposed
by S.J.R. No. 27, Acts of the 70th Legislature, Regular Session,
1987, and adopted by the voters at an election held November 3,
1987, and by this chapter to protect life and health.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 775.011. Petition For Creation of District Located Wholly in One
County.
(a) Before a district located wholly in one county may be
created, the county judge of that county must receive a petition
signed by at least 100 qualified voters who own taxable real
property in the proposed district. If there are fewer than 100
of those voters, the petition must be signed by a majority of
those voters.
(b) The name of the district proposed by the petition must be
"____________ County Emergency Services District No. __________,"
with the name of the county and the proper consecutive number
inserted.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.012. Petition for Creation of District Located in More Than One
County.
(a) Before a district that contains territory located in more
than one county may be created, the county judge of each county
in which the proposed district will be located must receive a
petition signed by at least 100 qualified voters who own taxable
real property that is located in the county in which that judge
presides and in the proposed district. If there are fewer than
100 of those voters, the petition must be signed by a majority of
those voters.
(b) The name of the district proposed by the petition must be
"____________ Emergency Services District."
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.013. Contents of Petition.
(a) The petition prescribed by Section 775.011 or 775.012 must
show:
(1) that the district is to be created and is to operate
under Article III, Section 48-e, of the Texas Constitution, as
proposed by S.J.R. No. 27, Acts of the 70th Legislature,
Regular Session, 1987, and adopted by the voters at an election
held November 3, 1987;
(2) the name of the proposed district;
(3) the district's boundaries as designated by metes and
bounds or other sufficient legal description;
(4) that none of the territory in the district is included
in another emergency services district; and
(5) the mailing address of each petitioner.
(b) The petition must contain an agreement signed by at least
two petitioners that obligates them to pay not more than $150 of
the costs incident to the formation of the district, including
the costs of publishing notices, election costs, and other
necessary and incidental expenses.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.014. Creation of District That Includes Municipal Territory.
(a) Before a district may be created that contains territory in
a municipality's limits or extraterritorial jurisdiction, a
written request to be included in the district must be presented
to the municipality's governing body. Except as provided by
Subsection (c), that territory may not be included in the
district unless the municipality's governing body gives its
written consent on or before the 60th day after the date on which
the municipality receives the request.
(b) If the municipality's governing body does not consent to
inclusion within the 60-day period prescribed by Subsection (a),
a majority of the qualified voters and the owners of at least 50
percent of the territory in the municipality's limits or
extraterritorial jurisdiction that would have been included in
the district may petition the governing body to make fire control
and emergency medical and ambulance services available. The
petition must be submitted to the governing body not later than
the 90th day after the date on which the municipality receives
the request under Subsection (a).
(c) If the municipality's governing body refuses or fails to
act on the petition requesting fire protection and emergency
medical and ambulance services within six months after the date
on which the petition submitted under Subsection (b) is received,
the governing body's refusal or failure to act constitutes
consent for the territory that is the subject of the petition to
be included in the proposed district.
(d) If the proposed district will include territory designated
by a municipality as an industrial district under Section 42.044,
Local Government Code, consent to include the industrial district
must be obtained from the municipality's governing body in the
same manner provided by this section for obtaining consent to
include territory within the limits or extraterritorial
jurisdiction of a municipality.
(e) If the municipality's governing body consents to inclusion
of territory within its limits or extraterritorial jurisdiction,
or in an industrial district, the territory may be included in
the district in the same manner as other territory is included
under this chapter.
(f) A governing body's consent to include territory in the
district and to initiate proceedings to create a district as
prescribed by this chapter expires six months after the date on
which the consent is given.
(g) This section does not apply if the proposed district is
wholly within the unincorporated area of a county that has a
population of 2.4 million or more according to the most recent
federal decennial census.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 5, Sec. 1, eff. Feb. 28,
1991.
Sec. 775.015. Filing of Petition and Notice of Hearing.
(a) If the petition is in proper form, the county judge may
receive the petition and shall file the petition with the county
clerk.
(b) At the next regular or special session of the commissioners
court held after the petition is filed with the county clerk, the
commissioners court shall set a place, date, and time for the
hearing to consider the petition.
(c) The county clerk shall give notice of the hearing. The
notice must state:
(1) that creation of a district is proposed;
(2) that the district is to be created and is to operate
under Article III, Section 48-e, of the Texas Constitution, as
proposed by S.J.R. No. 27, Acts of the 70th Legislature,
Regular Session, 1987, and adopted by the voters at an election
held November 3, 1987;
(3) the name of the proposed district;
(4) the district's boundaries as stated in the petition;
(5) the place, date, and time of the hearing; and
(6) that each person who has an interest in the creation of
the district may attend the hearing and present grounds for or
against creation of the district.
(d) The county clerk shall retain a copy of the notice and
shall deliver sufficient copies of the notice to the sheriff for
posting and publication as prescribed by Subsection (e).
(e) Not later than the 21st day before the date on which the
hearing will be held, the sheriff shall post one copy of the
notice at the courthouse door. The sheriff shall also have the
notice published in a newspaper of general circulation in the
proposed district once a week for two consecutive weeks. The
first publication must occur not later than the 21st day before
the date on which the hearing will be held.
(f) The return of each officer executing notice must:
(1) be endorsed or attached to a copy of the notice;
(2) show the execution of the notice;
(3) specify each date on which the notice was posted or
published; and
(4) include a printed copy of the published notice.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.016. Hearing.
(a) At the time and place set for the hearing or at a later
date then set, the commissioners court shall consider the
petition and each issue relating to creation of the district.
(b) Any interested person may appear before the commissioners
court in person or by attorney to support or oppose the creation
of the district and may offer pertinent testimony.
(c) The commissioners court has exclusive jurisdiction to
determine each issue relating to the creation of the district and
may issue incidental orders it considers proper in relation to
the issues before the commissioners court. The commissioners
court may adjourn the hearing as necessary.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.017. Petition Approval.
(a) If after the hearing the commissioners court finds that
creation of the district is feasible and will promote the public
safety, welfare, health, and convenience of persons residing in
the proposed district, the commissioners court shall grant the
petition and fix the district's boundaries. If the proposed
district, according to its boundaries stated in the petition, is
located wholly in a county with a population of more than 2.4
million, the commissioners court may amend the petition to change
the boundaries of the proposed district if the commissioners
court finds the change is necessary or desirable. For the
purposes of this provision, the population of the county is
determined according to the most recent federal decennial census
available at the time the petition is filed.
(b) If the proposed district will include territory in the
municipal limits or extraterritorial jurisdiction of one or more
municipalities, the commissioners court of the county in which
the municipality is located must determine if the district would
still meet the requirements prescribed by Subsection (a) if the
territory in the municipality's limits or extraterritorial
jurisdiction is excluded from the district. The commissioners
court must make this finding for each municipality the territory
of which will be included in the district.
(c) If the commissioners court finds that the proposed district
does not meet the requirements prescribed by Subsection (a), the
commissioners court shall deny the petition.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 269, eff. Sept. 1,
1991.
Sec. 775.018. Election.
(a) Except as provided by Subsection (b), on the granting of a
petition, the commissioners court shall order an election to
confirm the district's creation and authorize the imposition of a
tax not to exceed 10 cents on each $100 of the taxable value of
property taxable by the district or three cents on each $100 of
the taxable value of property taxable by the district if any area
in the district is also included in a rural fire prevention
district.
(b) If a proposed district is located wholly in a county with a
population of more than 2.4 million, the commissioners court
shall order an election to confirm the district's creation and
authorize the imposition of an ad valorem tax not to exceed three
cents on each $100 of the taxable value of property taxable by
the district, except that if the petition seeks conversion of a
rural fire prevention district into an emergency services
district, the election must be to authorize the imposition of an
ad valorem tax not to exceed six cents on each $100 of the
taxable value of property taxable by the district. For the
purposes of this subsection, the population of the county is
determined according to the most recent federal decennial census
available at the time the petition is filed.
(c) If the petition indicates that the proposed district will
contain territory in more than one county, the commissioners
court may not order an election until the commissioners court of
each county in which the district will be located has granted the
petition.
(d) Subject to Section 4.003, Election Code, the notice of the
election shall be given in the same manner as the notice of the
petition hearing.
(e) The election shall be held on the first authorized uniform
election date prescribed by the Election Code that allows
sufficient time to comply with other requirements of law.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 270, eff. Sept. 1,
1991.
Amended by Acts 1993, 73rd Leg., ch. 294, Sec. 1, eff. Aug. 30,
1993.
Sec. 775.019. Election Result and Commissioners Court Order.
(a) A district is created and organized under this chapter if a
majority of the votes cast in the election favor creation of the
district.
(b) A district may not include territory in a municipality's
limits or extraterritorial jurisdiction unless a majority of the
voters residing in that territory who vote at the election vote
in favor of creating the district and imposing a tax. The
exclusion of that territory does not affect the creation of a
district that includes the remainder of the proposed territory if
the commissioners court's findings under Section 775.017 are
favorable to the district's creation.
(c) Repealed by Acts 1991, 72nd Leg., ch. 620, Sec. 2, eff.
June 16, 1991.
(d) If a majority of those voting at the election vote against
creation of the district, the commissioners court may not order
another election for at least one year after the date of the
official canvass of the most recent election concerning creation
of the district. A subsequent election must be held in the same
manner provided by this chapter for the original creation
election.
(e) When a district is created, the commissioners court of each
county in which the district is located shall enter in its
minutes an order that reads substantially as follows:
Whereas, at an election held on the ______ day of ____________,
19___, in that part of ____________ County, State of Texas,
described as (insert description unless the district is
countywide), there was submitted to the qualified voters the
question of whether that territory should be formed into an
emergency services district under state law; and
Whereas, at the election ______ votes were cast in favor of
formation of the district and ______ votes were cast against
formation; and
Whereas, the formation of the emergency services district
received the affirmative vote of the majority of the votes cast
at the election as provided by law;
Now, therefore, the Commissioners Court of ____________ County,
State of Texas, finds and orders that the tract described in this
order has been duly and legally formed into an emergency services
district (or a portion thereof) under the name of ____________,
under Article III, Section 48-e, of the Texas Constitution, as
proposed by S.J.R. No. 27, Acts of the 70th Legislature, Regular
Session, 1987, and adopted by the voters at an election held
November 3, 1987, and has the powers vested by law in the
district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 620, Sec. 2, eff. June 16,
1991.
Sec. 775.020. Overlapping Districts.
(a) If the territory in one or more districts overlaps, the
commissioners court of the county in which the most recently
created district is located by order shall exclude the
overlapping territory from that district.
(b) For purposes of this section, a district is created on the
date on which the election approving its creation was held. If
the elections approving the creation of two or more districts are
held on the same date, the most recently created district is the
district for which the hearing required by Section 775.016 was
most recently held.
(c) The creation of a district with boundaries that overlap the
boundaries of another district does not affect the validity of
either district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.021. Exclusion of Territory Located Within Other Taxing
Authority.
(a) This section applies only to a district located in whole or
in part in a county that:
(1) borders the Gulf of Mexico; and
(2) has a population of less than 1.5 million.
(b) The board of a district may exclude from the district the
territory located within the boundaries of another taxing
authority if the other taxing authority provides the same
services to the territory as those provided by the district.
(c) The board, at its discretion, may hold a hearing to
consider the exclusion of the territory.
(d) The board shall hold a hearing to consider the exclusion of
the territory if the board receives a petition requesting a
hearing on the issue that is signed by at least five percent of
the qualified voters who own taxable real property in the
district. A petition submitted under this subsection must
describe the proposed new boundaries of the district or describe
the boundaries of the territory to be excluded from the district.
(e) The board shall issue a notice of a hearing to be held
under Subsection (c) or (d). The provisions of Section 775.015
relating to the procedure for issuing notice of a hearing to
create the district apply to the notice for the hearing under
this section. The notice must state:
(1) the proposed new boundaries of the district or of the
territory to be excluded;
(2) the time and place of the hearing; and
(3) that each person who has an interest in the exclusion or
nonexclusion of the territory may attend the hearing and
present the person's opinion for or against the exclusion of
the territory.
(f) After the hearing the board either may order an election on
the question of the exclusion of the territory or may declare by
resolution the territory excluded from the district. However,
the board may not declare the territory as excluded if the owners
of at least three percent of the property located in the district
protest the exclusion.
(g) If the board excludes the territory by resolution, the
board shall state in the resolution the new boundaries of the
district. The board shall file a copy of the resolution in the
office of the county clerk of each county in which the district
is located. The county clerk of each affected county shall
record the resolution in the county records. After the
resolution is recorded, the excluded territory is no longer a
part of the district.
(h) The board shall order an election on the question of
exclusion if:
(1) the owners of at least three percent of the property
located in the district protest the exclusion; or
(2) the board:
(A) despite the lack of a protest, refuses to exclude
the territory; and
(B) after refusing to exclude the territory, receives a
petition requesting an election that is signed by a majority
of the qualified voters who own taxable real property in the
territory proposed to be excluded.
(i) Except as otherwise required by the Election Code, the
election notice, the manner and time of giving the notice, and
the manner of holding the election are governed by the applicable
provisions of this chapter relating to the original election to
create the district.
(j) If a majority of the voters voting in the election favor
excluding the territory from the district, the board shall enter
an order declaring the territory excluded from the district and
stating the new boundaries of the district. The board shall file
a copy of the order in the office of the county clerk of each
county in which the district is located. The county clerk of
each affected county shall record the order in the county
records. After the order is recorded, the excluded territory is
no longer a part of the district.
(k) If a majority of the voters voting in the election do not
favor excluding the territory, the board may not act on a
petition to exclude all or part of the territory until the first
anniversary of the date of the most recent election to exclude
the territory from the district.
(l) The exclusion 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.
(m) Territory excluded under this section is not released from
the payment of its pro rata share of the district's indebtedness.
The district shall continue to levy taxes each year on the
excluded territory at the same rate levied on territory in the
district until the taxes collected from the excluded territory
equal its pro rata share of the indebtedness of the district at
the time the territory was excluded. The taxes collected under
this subsection shall be applied exclusively to the payment of
the excluded territory's pro rata share of the indebtedness. The
owner of all or part of the excluded territory may pay in full,
at any time, the owner's share of the pro rata share of the
district's indebtedness.
Added by Acts 1991, 72nd Leg., ch. 14, Sec. 271, eff. Sept. 1,
1991.
Sec. 775.022. Removal of Territory by Municipality.
(a) If a municipality annexes territory in a district, the
board shall, on request of the municipality, immediately disannex
the territory from the district and shall cease to provide
further services to the residents of that territory.
(b) 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.
(c) If a municipality annexes a portion of a district, the
municipality shall compensate the district in an amount equal to
the annexed territory's pro rata share of the district's
indebtedness at the time the territory is annexed. The district
shall apply compensation received from a municipality under this
subsection exclusively to the payment of the annexed territory's
pro rata share of the district's indebtedness.
(d) On the district's request, a municipality shall purchase
from the district at fair market value any real or personal
property used to provide emergency services in territory
disannexed under this section.
Added by Acts 1991, 72nd Leg., ch. 620, Sec. 1, eff. June 16,
1991.
Amended by Acts 1997, 75th Leg., ch. 392, Sec. 1, eff. Sept. 1,
1997.
Sec. 775.023. Petition for Creation of Emergency Services District and
Dissolution of Rural Fire Prevention Districts: Certain Counties.
(a) This section and Section 775.024 apply only to a petition
filed in a county that:
(1) is located on an international border;
(2) has a population of more than 375,000; and
(3) contains at least seven municipalities, each with a
population of more than 12,000. A petition calling for the
creation of an emergency services district that includes
territory of one or more rural fire prevention districts and
for the simultaneous dissolution of those rural fire prevention
districts may be filed with the county judge of the county in
which the proposed emergency services district will be located.
The petition must be signed by at least 100 qualified voters
who own taxable real property that is located in the county and
in the proposed emergency services district. If there are
fewer than 100 of those voters, the petition must be signed by
a majority of those voters. The name of the district proposed
by the petition must be "__________ Emergency Services
District."
(b) The petition must show:
(1) that the district is to be created and is to operate
under Section 48-e, Article III, Texas Constitution, as
proposed by S.J.R. No. 27, Acts of the 70th Legislature,
Regular Session, 1987, and adopted by the voters at an election
held November 3, 1987;
(2) the name of the proposed emergency services district;
(3) the emergency services district's boundaries as
designated by metes and bounds or other sufficient legal
description;
(4) the name of each rural fire prevention district that
exists in the territory encompassed by the boundaries of the
proposed emergency services district and that is proposed to be
dissolved;
(5) that none of the territory in the emergency services
district is included in another emergency services district;
and
(6) the mailing address of each petitioner.
(c) The petition must contain an agreement signed by at least
two petitioners that obligates them to pay not more than $150 of
the costs incident to the formation of the emergency services
district, including the costs of publishing notices, election
costs, and other necessary and incidental expenses.
(d) If the petition is in proper form, the county judge may
receive the petition and shall file the petition with the county
clerk.
(e) At the next regular or special session of the commissioners
court held after the petition is filed with the county clerk, the
commissioners court shall set a place, date, and time for
hearings to consider the petition. At least one hearing must be
conducted in each rural fire prevention district that is proposed
to be dissolved. The notice and the conduct of the hearings must
be in accordance with Sections 775.015 and 775.016. After the
conclusion of the hearings, the commissioners court may grant the
petition as provided by Section 775.017.
Added by Acts 1995, 74th Leg., ch. 795, Sec. 1, eff. Aug. 28,
1995.
Sec. 775.024. Election to Create Emergency Services District and
Dissolution of Rural Fire Prevention District: Certain Counties.
(a) On the granting of a petition under Section 775.023, the
commissioners court shall order an election to confirm the
creation of the emergency services district, authorize the
imposition of a tax not to exceed 10 cents on each $100 of the
taxable value of property taxable by the district, and assume the
assets and liabilities of each rural fire prevention district
that is proposed to be dissolved. At the same time, the
commissioners court shall order an election in each rural fire
prevention district on the question of whether to dissolve the
rural fire prevention district effective on the date that the
emergency services district is created. Sections 775.018 and
775.019 apply to the election to confirm the creation of the
emergency services district. Section 794.059 applies to the
election to dissolve the rural fire prevention district, except
that the commissioners court shall perform a duty of the board of
fire commissioners under that section.
(b) The ballot in the election to confirm creation of the
emergency services district must be printed to permit voting for
or against the proposition: "The creation of the __________
Emergency Services District; the transfer to the __________
Emergency Services District of the assets and liabilities of
__________ Rural Fire Prevention District if that district is
dissolved; and the levy of an ad valorem tax at a rate not to
exceed 10 cents on each $100 valuation of property."
(c) An emergency services district is created and organized
under this chapter if a majority of those voting in the election
vote to confirm the creation of the emergency services district.
If a majority of those voting at the election vote against
confirming the creation of the emergency services district, a
rural fire prevention district as to which the commissioners
court orders an election under Subsection (a) is not dissolved,
without regard to the results of the dissolution election.
(d) If a majority of those voting at the election vote to
dissolve a rural fire prevention district, the territory of the
rural fire prevention district is included in the emergency
services district. If a majority of those voting at the election
vote against dissolving a rural fire prevention district, the
territory of the rural fire prevention district may not be
included in the emergency services district.
(e) On the effective date of creation of an emergency services
district as provided by an order under Section 775.019(e), the
board of fire commissioners of a rural fire prevention district
dissolved as a result of an election under this section shall
transfer the assets and liabilities of the rural fire prevention
district to the emergency services district. If the rural fire
prevention district has outstanding bonds to which ad valorem
taxes are pledged, the board of emergency services commissioners
of the emergency services district shall fully pay the debt or
shall annually impose an ad valorem tax on all property located
in the district and subject to district taxation at a rate
sufficient to pay the principal and interest on the bonds. The
dissolution of the rural fire prevention district does not
diminish or impair the rights of the holders of any outstanding
bonds or notes of the district at the time of dissolution.
Added by Acts 1995, 74th Leg., ch. 795, Sec. 1, eff. Aug. 28,
1995.
Sec. 775.025. Exclusion of Certain Territory Subject to Ad Valorem
Assessments.
(a) The board shall hold a hearing to consider the exclusion
from the district of territory in a planned community if the
board receives a petition requesting a hearing on the issue that
is signed by at least five percent of the qualified voters
residing in the territory proposed to be excluded from the
district. A petition submitted under this subsection must
describe the boundaries of the territory to be excluded from the
district.
(b) The board shall give notice of a hearing under this
section. The procedure under Section 775.015 for issuing notice
of a hearing to create the district applies to the notice under
this section. The notice must state:
(1) the boundaries of the territory proposed to be excluded;
(2) the time and place of the hearing; and
(3) that each person who has an interest in the exclusion or
nonexclusion of the territory may attend the hearing and
present the person's opinion for or against the exclusion of
the territory.
(c) After the hearing, if the board finds that the entity
responsible for administering and collecting the ad valorem based
assessments in the territory to be excluded provides or contracts
for the provision of substantially the same services as provided
by the district, the board shall:
(1) order an election on the question of exclusion; or
(2) declare by resolution the territory excluded from the
district.
(d) The board may not exclude territory by resolution if at
least three percent of the qualified voters residing in the
territory to be excluded from the district protest the exclusion
in writing at the hearing.
(e) In a resolution excluding territory, the board shall
describe the new boundaries of the district.
(f) The board shall order an election in the territory proposed
to be excluded on the question of exclusion if:
(1) at least three percent of the qualified voters residing
in the territory to be excluded protest the exclusion in
writing at the hearing; or
(2) the board:
(A) despite the lack of a sufficient protest, refuses to
exclude the territory; and
(B) not later than the 90th day after refusing to
exclude the territory, receives a petition requesting an
election that is signed by at least 10 percent of the
qualified voters residing in the territory proposed to be
excluded.
(g) Except as otherwise provided by the Election Code, the
provisions of this chapter relating to the election creating the
district apply to the election notice, the manner and time of
giving the notice, and the manner of holding the election under
this section.
(h) For purposes of the election, the order calling the
election shall divide the territory proposed to be excluded from
the district into one or more precincts.
(i) If a majority of the votes in an election favor excluding
the territory from the district, the board shall enter an order
declaring the territory excluded from the district and describing
the new boundaries of the district.
(j) The board shall file a copy of a resolution or order with
the county clerk of each county in which the district is located.
Each county clerk shall record the resolution or order. After
the resolution or order is recorded, the excluded territory is no
longer part of the district.
(k) If a majority of the votes in the election are against
excluding the territory, the board may not act on a petition to
exclude all or any part of the territory before the first
anniversary of the date of the most recent election to exclude
the territory.
(l) The exclusion of territory under this section does not
diminish or impair the rights of the holders of any outstanding
and unpaid bonds, warrants, or other district obligations. The
district shall continue to impose taxes each year on the excluded
territory at the same rate imposed on other territory in the
district until the total amount of taxes collected from the
excluded territory equals its pro rata share of the indebtedness
of the district at the time the territory was excluded. The
taxes collected under this subsection shall be applied only to
the payment of the excluded territory's pro rata share of
indebtedness. The owner of all or part of the excluded territory
at any time may pay in full the owner's share of the excluded
territory's pro rata share of the district's indebtedness at the
time the territory was excluded.
(m) On or after the date on which the appropriate county clerk
records the resolution or order excluding the territory from the
district, the district or a fire department or ambulance service
that contracts with the district is not required to provide to
the excluded territory emergency service facilities, emergency
services, or other services to protect the life and health of
residents in the territory.
(n) For purposes of Subsection (o)(1), land ownership that is
separated only by the claim of title by the state to the beds and
banks of rivers or streams is considered contiguous. Land
ownership that is separated by a farm-to-market road
right-of-way, whether fee simple ownership or an easement, is not
considered contiguous.
(o) In this section:
(1) "Planned community" means a planned community of 15,000
or more acres of land originally established under the Urban
Growth and New Community Development Act of 1970 (42 U.S.C.
Section 4501 et seq.) that is:
(A) located in a county adjacent to a county with a
population of 2,800,000 or more according to the most recent
federal census; and
(B) subject to restrictive covenants containing ad
valorem based assessments on real property for use in part
to finance services of the same general type provided by the
district.
(2) "Territory in a planned community" means territory that:
(A) on the effective date of this section comprises all
or part of a planned community; or
(B) on the effective date of this section is contiguous
to a planned community and later becomes part of that
planned community.
Added by Acts 1997, 75th Leg., ch. 1424, Sec. 1, eff. June 20,
1997.
SUBCHAPTER C. ORGANIZATION, POWERS, AND DUTIES
Sec. 775.031. District Powers.
(a) A district is a political subdivision of the state. To
perform the functions of the district and to provide emergency
services, a district may:
(1) acquire, purchase, hold, lease, manage, occupy, and sell real
and personal property or an interest in property;
(2) enter into and perform necessary contracts;
(3) appoint and employ necessary officers, agents, and employees;
(4) sue and be sued;
(5) impose and collect taxes as prescribed by this chapter;
(6) accept and receive donations;
(7) lease, own, maintain, operate, and provide emergency services
vehicles and other necessary or proper apparatus,
instrumentalities, equipment, and machinery to provide emergency
services;
(8) construct, lease, own, and maintain real property,
improvements, and fixtures necessary to house, repair, and
maintain emergency services vehicles and equipment;
(9) contract with other entities, including other districts or
municipalities, to make emergency services facilities and
emergency services available to the district;
(10) contract with other entities, including other districts or
municipalities, for reciprocal operation of services and
facilities if the contracting parties find that reciprocal
operation would be mutually beneficial and not detrimental to the
district; and
(11) perform other acts necessary to carry out the intent of this
chapter.
(b) A district located wholly within a county with a population
of more than 2.4 million may not provide fire prevention or
fire-fighting services unless the district was originally a rural
fire prevention district and was converted under Section 775.056.
(c) A district may contract with the state or a political
subdivision for law enforcement services. A district may not
commission a peace officer or employ a person as a peace officer.
(d) A district is not required to perform all the functions
authorized by this chapter. A district may be created to provide
limited services.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 272, eff. Sept. 1,
1991.
Amended by Acts 1997, 75th Leg., ch. 392, Sec. 2, eff. Sept. 1,
1997.
Sec. 775.032. Certain Businesses Not Subject to Ad Valorem Tax or District
Powers.
(a) A business entity is not subject to the ad valorem tax
authorized by this chapter or subject to the district's powers if
the business entity:
(1) provides its own fire prevention and fire control
services and owns or operates fire-fighting equipment or
systems equivalent to or better than those of a Class I rural
fire prevention district, metropolitan county fire protection
system, as defined by the State Board of Insurance, for which
the business entity receives the appropriate approval from the
Texas Industrial Fire Training Board of the State Firemen's and
Fire Marshals' Association of Texas;
(2) provides and operates its own equipped industrial
ambulance with a licensed driver and provides industrial victim
care by an emergency care attendant trained to provide the
equivalent of ordinary basic life support, as defined by
Section 773.003; and
(3) provides ordinary emergency services for the business
entity, such as emergency response, as defined by 29 C.F.R.
Sec. 1910.120, rescue, disaster planning, or security services,
as recognized by the Texas Industrial Fire Training Board of
the State Firemen's and Fire Marshals' Association of Texas,
and provides the equipment, training, and facilities necessary
to safely handle emergencies and protect the business entity
and its neighbors in the community.
(b) This section shall not be construed to exempt a business
from a sales and use tax authorized by Section 775.0751.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 2, eff.
Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 14, Sec. 273, eff. Sept.
1, 1991.
Sec. 775.033. Liability of District.
(a) A district is not liable for a claim arising from the act
or omission of an employee or volunteer under an oral or written
contract with the district if the act or omission:
(1) is in the course and scope of the employee's or
volunteer's duties for the district;
(2) takes place during the provision of emergency services;
(3) is not in violation of a statute or ordinance applicable
to emergency action; and
(4) is not wilful or wantonly negligent.
(b) This section does not expand the liability of a district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.034. Appointment of Board in District Located Wholly in One
County.
(a) The commissioners court of a county in which a
single-county district is located shall appoint a five-member
board of emergency services commissioners to serve as the
district's governing body. Except as prescribed by Subsection
(b), commissioners serve two-year terms.
(b) After the votes are canvassed and the commissioners court
enters the order creating the district, the commissioners court
shall appoint the initial emergency services commissioners to
serve until January 1 of the year following the district
election. On January 1, the court shall designate three of those
emergency services commissioners to serve a two-year term and two
of those emergency services commissioners to serve a one-year
term.
(c) On January 1 of each year, the commissioners court shall
appoint a successor for each emergency services commissioner
whose term has expired.
(d) The commissioners court shall fill a vacancy on the board
for the remainder of the unexpired term.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.035. Election of Board in District Located in More Than One
County.
(a) The governing body of a district located in more than one
county consists of a five-person board of emergency services
commissioners elected as prescribed by this section. Except as
provided by Subsection (g), emergency services commissioners
serve two-year terms.
(b) After a district located in more than one county is
created, the county judges of each county in the district shall
mutually establish a convenient day in November, other than the
date of the general election for state and county officers, to
conduct an election to elect the initial emergency services
commissioners.
(c) To be eligible to be a candidate for emergency services
commissioner of a district located in more than one county, a
person must be at least 18 years of age and a resident of the
district.
(d) A candidate for emergency services commissioner must give
the county clerk of each county in the district a sworn notice of
the candidate's intention to run for office. The notice must
state the person's name, age, and address and state that the
person is serving notice of intent to run for emergency services
commissioner. On receipt of the notice, the county clerk shall
have the candidate's name placed on the ballot.
(e) The county clerks of each county in the district shall
jointly appoint an election judge to certify the results of the
election.
(f) After the election is held, the county clerk of each county
or the clerk's deputy shall prepare a sworn statement of the
election costs incurred by the county. The statement shall be
given to the newly elected board, which shall order the
appropriate official to reimburse each county for the county's
election costs.
(g) The initial emergency services commissioners' terms of
office begin on January 1 of the year following the election.
The two commissioners who received the fewest votes serve
one-year terms. The other emergency services commissioners serve
two-year terms.
(h) The general election for commissioner shall be held
annually on an authorized uniform election date as provided by
Chapter 41, Election Code.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.036. Powers and Duties of Board.
(a) The board shall:
(1) hold regular monthly meetings and other meetings as
necessary;
(2) keep minutes and records of its acts and proceedings;
(3) give reports required by the state fire marshal,
commissioner of health, and other authorized persons;
(4) give a written report not later than February 1 of each
year to the commissioners court regarding the district's
administration for the preceding calendar year and the
district's financial condition; and
(5) administer the district in accordance with this chapter.
(b) The board may require inspections in the district relating
to the causes and prevention of fires and medical emergencies,
except as provided by Section 775.031(b).
(c) The board may promote educational programs it considers
proper to help carry out the purposes of this chapter.
(d) The board of a district located wholly in one county shall
include in the report required under Subsection (a)(4):
(1) the number and type of emergency responses made within
and outside the district;
(2) a listing of all debt incurred by the district; and
(3) any other financial matter required by order of the
commissioners court.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 274, eff. Sept. 1,
1991.
Amended by Acts 1993, 73rd Leg., ch. 195, Sec. 1, eff. Sept. 1,
1993.
Sec. 775.037. Officers of Board.
(a) The emergency services commissioners shall elect from among
their members a president, vice-president, secretary, treasurer,
and assistant treasurer to perform the duties usually required of
the respective offices. The office of secretary and treasurer
may be combined.
(b) The treasurer must execute and file with the county clerk a
bond conditioned on the faithful execution of the treasurer's
duties. The treasurer of a district located in more than one
county shall file the bond with the county clerk of the county
with the largest population in the district. The county judge of
the county in which the bond is to be filed must determine the
amount and sufficiency of the bond before it is filed.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.038. Compensation; Conflict of Interest.
(a) Except as provided by Subsection (b), an emergency services
commissioner is entitled to receive compensation of not more than
$50 per day for each day the commissioner actually spends
performing the duties of a commissioner. Compensation may not
exceed $3,000 per year. Commissioners may be reimbursed for
reasonable and necessary expenses incurred in performing official
duties.
(b) Instead of compensation under Subsection (a), a
commissioner may elect to receive per diem compensation of $50
for each day the commissioner actually spends performing the
duties of a commissioner. A commissioner who receives per diem
compensation may not be reimbursed for reasonable and necessary
expenses. Per diem payments may not exceed $3,000 per year.
(c) To receive compensation, per diem compensation, or
reimbursement for expenses, a commissioner must file with the
district a verified statement showing the number of days actually
spent performing the duties of a commissioner and a general
description of the duties performed for each day of service.
(d) Commissioners are subject to Chapter 171, Local Government
Code.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1997, 75th Leg., ch. 392, Sec. 3, eff. Sept. 1,
1997.
Sec. 775.040. Fees for Providing Services.
A district may charge a reasonable fee for emergency services
performed for or on behalf of a person or entity.
Added by Acts 1997, 75th Leg., ch. 392, Sec. 4, eff. Sept. 1,
1997.
SUBCHAPTER D. EXPANSION OR DISSOLUTION OF DISTRICT
Sec. 775.051. Expansion of District Territory.
(a) Qualified voters who own taxable real property in a defined
territory that is not included in a district may file a petition
with the secretary of the board requesting the inclusion of the
territory in the district. The petition must be signed by at
least 50 qualified voters who own taxable real property in the
territory or a majority of those voters, whichever is less.
(b) The board by order shall set a time and place to hold a
hearing on the petition to include the territory in the district.
The hearing may be held not earlier than the 31st day after the
date on which the board issues the order.
(c) The secretary of the board shall give notice of the hearing.
The notice must contain the time and place for the hearing and a
description of the territory proposed to be annexed into the
district.
(d) The secretary shall:
(1) post copies of the notice in three public places in the
district and one public place in the territory proposed to be
annexed into the district for at least 15 days before the date of
the hearing; and
(2) not later than the 16th day before the date on which the
hearing will be held, publish the notice once in a newspaper of
general circulation in the county.
(e) If after the hearing the board finds that annexation of the
territory into the district would be feasible and would benefit
the district, the board may approve the annexation by a
resolution entered in its minutes. The board is not required to
include all of the territory described in the petition if the
board finds that a change is necessary or desirable.
(f) Annexation of territory is final when approved by a majority
of the voters at an election held in the district and by a
majority of the voters at a separate election held in the
territory to be annexed. If the district has outstanding debts
or taxes, the voters in the election to approve the annexation
must also determine if the annexed territory will assume its
proportion of the debts or taxes if added to the district.
(g) The election ballots shall be printed to provide for voting
for or against the following, as applicable:
(1) "Adding (description of territory to be added) to the
____________ Emergency Services District."
(2) "(Description of territory to be added) assuming its
proportionate share of the outstanding debts and taxes of the
____________ Emergency Services District, if it is added to the
district."
(h) The election notice, the manner and time of giving the
notice, and the manner of holding the election are governed by
the other provisions of this chapter relating to those matters to
the extent that those provisions can be made applicable.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.052. Petition for Dissolution; Notice of Hearing.
(a) Before a district may be dissolved, the district's board
must receive a petition signed by at least 10 percent of the
registered voters in the district.
(b) If the petition is in proper form, the board shall set a
place, date, and time for a hearing to consider the petition.
(c) The board shall give notice of the hearing. The notice
must include:
(1) the name of the district;
(2) a description of the district's boundaries;
(3) the proposal that the district be dissolved; and
(4) the place, date, and time of the hearing on the
petition.
(d) The notice shall be published in a newspaper of general
circulation in the district once a week for two consecutive
weeks. The first publication must occur not later than the 21st
day before the date on which the hearing will be held.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.053. Hearing.
(a) At the hearing on the petition to dissolve the district,
the board shall consider the petition and each issue relating to
the dissolution of the district.
(b) Any interested person may appear before the board to
support or oppose the dissolution.
(c) The board shall grant or deny the petition.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.054. Election to Confirm Dissolution.
(a) On the granting of a petition to dissolve the district, the
board shall order an election to confirm the district's
dissolution.
(b) Notice of the election shall be given in the same manner as
the notice of the petition hearing.
(c) The election shall be held on the first authorized uniform
election date prescribed by the Election Code that allows
sufficient time to comply with the requirements of law and that
occurs after the date on which the board grants the petition.
(d) The ballot shall be printed to provide for voting for or
against the following: "Dissolving the ____________ Emergency
Services District."
(e) A copy of the tabulation of results shall be filed with the
county clerk of each county in which the district is located.
(f) If a majority of those voting at the election vote to
dissolve the district, the board shall proceed with dissolution.
An election to create a new district in the boundaries of the old
district may not be held for at least one year after dissolution.
(g) If a majority of those voting at the election vote against
dissolving the district, the board may not order another election
on the issue before the first anniversary of the date of the
canvass of the election.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.055. Administration of Property, Debts, and Assets After
Dissolution.
(a) After a vote to dissolve a district, the board shall
continue to control and administer the property, debts, and
assets of the district until all funds are disposed of and all
district debts are paid or settled.
(b) The board may not dispose of the district's assets except
for due compensation unless the debts are transferred to another
governmental entity or agency within or embracing the district
and the transfer will benefit the district's residents.
(c) After the board issues the dissolution order, the board
shall:
(1) determine the debt owed by the district; and
(2) impose on the property included in the district's tax
rolls a tax that is in proportion of the debt to the property
value.
(d) Each taxpayer may pay the tax imposed by the district under
this section at once.
(e) The board may institute a suit to enforce payment of taxes
and to foreclose liens to secure the payment of taxes due the
district.
(f) When all outstanding debts and obligations of the district
are paid, the board shall order the secretary to return the pro
rata share of all unused tax money to each district taxpayer. A
taxpayer may request that the taxpayer's share of surplus tax
money be credited to the taxpayer's county taxes. If a taxpayer
requests the credit, the board shall direct the secretary to
transmit the funds to the county tax assessor-collector.
(g) After the district pays all its debts and disposes of all
its assets and funds as prescribed by this section, the board
shall file a written report with the commissioners court of each
county in which the district is located setting forth a summary
of the board's actions in dissolving the district. Not later
than the 10th day after the date it receives the report and
determines that the requirements of this section have been
fulfilled, the commissioners court of each county shall enter an
order dissolving the district.
(h) Each emergency services commissioner is discharged from
liability under the emergency services commissioner's bond on
entry of the order prescribed by Subsection (g).
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER E. FINANCES AND BONDS
Sec. 775.071. Limitation on Indebtedness.
Except as provided by Section 775.051, Section 775.072, and
Sections 775.077-775.081, a district may not contract for an
amount of indebtedness in any one year that is in excess of the
funds then on hand or that may be paid from current revenues for
the year.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.072. Depositories.
(a) The board shall designate one or more banks to serve as
depositories for district funds.
(b) The board shall deposit all district funds in a depository
bank, except that the board:
(1) may deposit funds pledged to pay bonds or notes with
banks named in the trust indenture or in the bond or note
resolution; and
(2) shall remit funds for the payment of the principal of
and interest on bonds and notes to the bank of payment.
(c) The district may not deposit funds in a depository or
trustee bank in an amount that exceeds the maximum amount secured
by the Federal Deposit Insurance Corporation unless the excess
funds are secured in the manner provided by law for the security
of county funds.
(d) The resolution or trust indenture securing the bonds or
notes may require that any or all of the funds must be secured by
obligations of or unconditionally guaranteed by the federal
government.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.073. Method of Payment.
(a) District funds may be disbursed only by check signed by the
treasurer and countersigned by the president. If the treasurer
is absent or unavailable, the assistant treasurer may sign for
the treasurer. If the president is absent or unavailable, the
vice president may sign for the president.
(b) An expenditure of more than $2,000 may not be paid from tax
money unless a sworn itemized account covering the expenditure is
presented to the board and the board approves the expenditure.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1995, 74th Leg., ch. 816, Sec. 1, eff. Aug. 28,
1995.
Sec. 775.074. Ad Valorem Tax.
(a) The board shall annually impose an ad valorem tax on all
real and personal property located in the district and subject to
district taxation for the district's support and the purposes
authorized by this chapter.
(b) If a district issues bonds or notes that are payable wholly
from ad valorem taxes, the board shall, when bonds or notes are
authorized, set a tax rate that is sufficient to pay the
principal of and interest on the bonds or notes as the interest
and principal come due and to provide reserve funds if prescribed
in the resolution authorizing, or the trust indenture securing,
the bonds or notes.
(c) If a district issues bonds or notes that are payable from
ad valorem taxes and from revenues, income, or receipts of the
district, the board shall, when the bonds or notes are
authorized, set a tax rate that is sufficient to pay the
principal of and interest on the bonds and notes and to create
and maintain any reserve funds.
(d) In establishing the rate of the ad valorem tax to be
collected for a year, the board shall consider the money that
will be available to pay the principal of and interest on any
bonds or notes issued and to create any reserve funds to the
extent and in the manner permitted by the resolution authorizing,
or the trust indenture securing, the bonds or notes.
(e) The board shall certify the ad valorem tax rate to the
county tax assessor-collector, who is the assessor-collector for
the district.
(f) The duties imposed by this section on a board do not apply
in a district subject to Section 775.0741.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 2, eff.
Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 14, Sec. 275, eff. Sept.
1, 1991.
Sec. 775.0741. Ad Valorem Tax in District Located Wholly in Populous
County.
(a) The board of a district located wholly in a county with a
population of more than 2.4 million shall prepare annually a
budget for the district and shall submit the budget to the
commissioners court of the county for approval. The budget shall
be treated in the same manner as a budget submitted by a county
agency or department.
(b) The commissioners court shall annually impose an ad valorem
tax on all real and personal property located in the district and
subject to district taxation for the district's support and the
purposes authorized by this chapter.
(c) The tax may not exceed three cents on each $100 of the
taxable value of property taxable by the district. If the
district was originally a rural fire prevention district and was
converted under Section 775.056, the tax may not exceed six cents
on each $100 of the taxable value of property taxable by the
district.
(d) In setting and certifying the tax rate, the commissioners
court is subject to the same duties that are imposed on a board
by Sections 775.074(b) through (e).
(e) The funds collected under this section shall be deposited
in a county depository except as provided by Section 775.072(b).
Added by Acts 1991, 72nd Leg., ch. 14, Sec. 276, eff. Sept. 1,
1991.
Sec. 775.0742. Increase of Maximum Tax Rate.
(a) This section applies only to a district:
(1) in which some area of the district is included in a
rural fire prevention district or was included at the time the
district was created; and
(2) that had previously authorized the levy of a tax not to
exceed two cents on each $100 of the taxable value of the
property taxable by the district.
(b) The board may order an election on the question of
increasing the district's tax rate to three cents on each $100 of
the taxable value of the property taxable by the district.
(c) The election shall be held on the first authorized uniform
election date that allows sufficient time to comply with other
requirements of law.
(d) The ballot for the election shall be printed to permit
voting for or against the proposition: "The levy of annual taxes
by the district at a rate not to exceed three cents on each $100
of the taxable value of property taxable by the district." The
election shall be held in accordance with the applicable
provisions of the Election Code.
(e) The board shall meet and canvass the election returns. If
the board finds that the election results are favorable to the
proposition, the board may levy taxes as authorized by the
proposition. If the board finds that the election results are
not favorable to the proposition, another election on the
question of raising the district's maximum tax rate may not be
held before the first anniversary of the date of the election at
which voters disapproved the proposition.
Added Acts 1993, 73rd Leg., ch. 294, Sec. 2, eff. Aug. 30, 1993.
Sec. 775.075. Reduction of Ad Valorem Tax Rate.
(a) The qualified voters of a district may petition in the
manner provided by Sections 775.052 through 775.054 for
dissolution of a district to reduce the ad valorem tax rate of
the district.
(b) The petition must state the new tax rate desired by the
voters.
(c) The tax rate may not be reduced below the rate needed to
pay any outstanding bonded indebtedness.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 2, eff.
Sept. 1, 1989.
Sec. 775.0751. Sales and Use Tax.
(a) A district may adopt a sales and use tax, change the rate
of its sales and use tax, or abolish its sales and use tax at an
election held as provided by Section 775.0752. The district may
impose the tax at a rate of one-half percent, one percent, one
and one-half percent, or two percent. Revenue from the tax may
be used for any purpose for which ad valorem tax revenue of the
district may be used.
(b) Chapter 323, Tax Code, applies to the application,
collection, and administration of the tax imposed under this
section. The comptroller may make rules for the collection and
administration of this tax in the same manner as for a tax
imposed under Chapter 323, Tax Code. Where a county and a
hospital district both impose a sales and use tax, the
comptroller may by rule provide for proportionate allocation of
sales and use tax collections between a county and a hospital
district on the basis of the period of time each tax is imposed
and the relative tax rates.
(c) A district may not adopt a tax under this section or
increase the rate of the tax if as a result of the adoption of
the tax or the tax increase the combined rate of all sales and
use taxes imposed by the district and other political
subdivisions of this state having territory in the district would
exceed two percent at any location in the district.
(d) If the voters of a district approve the adoption of the tax
or an increase in the tax rate at an election held on the same
election date on which another political subdivision of this
state adopts a sales and use tax or approves the increase in the
rate of its sales and use tax and as a result the combined rate
of all sales and use taxes imposed by the district and other
political subdivisions of this state having territory in the
district would exceed two percent at any location in the
district, the election to adopt a sales and use tax or to
increase the rate of the sales and use tax in the district under
this subchapter has no effect.
(e) to (h) Expired.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 3, eff.
Sept. 1, 1989.
Sec. 775.0752. Sales and Use Tax Election Procedures.
(a) Except as otherwise provided by this subchapter, an
election to adopt or abolish a district's sales and use tax or to
change the rate of the tax is governed by the provisions of
Subchapter E, Chapter 323, Tax Code, applicable to an election to
adopt or abolish a county sales and use tax.
(b) An election is called by the adoption of a resolution by
the board. The board shall call an election if a number of
qualified voters of the district equal to at least five percent
of the number of registered voters in the district petitions the
board to call the election.
(c) At an election to adopt the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
adoption of a local sales and use tax in (name of district) at
the rate of (proposed tax rate) percent."
(d) At an election to abolish the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
abolition of the local sales and use tax in (name of district)."
(e) At an election to change the rate of the tax, the ballot
shall be prepared to permit voting for or against the
proposition: "The (increase or decrease, as applicable) in the
rate of the local sales and use tax imposed by (name of district)
from (tax rate on election date) percent to (proposed tax rate)
percent."
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 3, eff.
Sept. 1, 1989.
Sec. 775.0753. Sales and Use Tax Effective Date; Boundary Change.
(a) The adoption or abolition of the tax or change in the tax
rate takes effect on the first day of the first calendar quarter
occurring after the expiration of the first complete calendar
quarter occurring after the date on which the comptroller
receives a notice of the results of the election.
(b) If the comptroller determines that an effective date
provided by Subsection (a) will occur before the comptroller can
reasonably take the action required to begin collecting the tax
or to implement the abolition of the tax or the tax rate change,
the effective date may be extended by the comptroller until the
first day of the next succeeding calendar quarter.
(c) The provisions of Section 321.102, Tax Code, governing the
application of a municipal sales and use tax in the event of a
change in the boundaries of a municipality apply to the
application of a tax imposed under this chapter in the event of a
change in the district's boundaries.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 3, eff.
Sept. 1, 1989.
Sec. 775.076. Bonds and Notes Authorized.
(a) The board may issue bonds and notes as prescribed by this
chapter to perform any of its powers. Before the board may issue
bonds or notes, the commissioners court of each county in which
the district is located must approve the issuance of the bonds or
notes by a majority vote.
(b) The board may issue bonds and notes in one or more issues
or series that are payable from and secured by liens on and
pledges of:
(1) ad valorem taxes;
(2) all or part of the district's revenues, income, or
receipts; or
(3) a combination of those taxes, revenues, income, and
receipts.
(c) The bonds and notes may be issued to mature serially or
otherwise in not more than 40 years from the date of their
issuance.
(d) Provision may be made for the subsequent issuance of
additional parity bonds or notes or subordinate lien bonds or
notes under terms and conditions stated in the resolution
authorizing the issuance of the bonds or notes.
(e) The bonds, notes, and any interest coupons are investment
securities under Chapter 8, Business & Commerce Code.
(f) The bonds and notes may be:
(1) issued registrable as to principal alone or as to
principal and interest;
(2) made redeemable before maturity;
(3) issued in the form, denominations, and manner and under
the terms, conditions, and details provided by the resolution;
and
(4) sold in the manner, at the price, and under the terms,
conditions, and details provided by the resolution.
(g) The bonds and notes bear interest at rates not to exceed
the maximum rate allowed by Chapter 3, Acts of the 61st
Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
Texas Civil Statutes).
(h) If provided by the resolution, the proceeds from the sale
of the bonds or notes may be used for:
(1) paying interest on the bonds or notes during the period
of the acquisition or construction of a facility to be provided
through the issuance of the bonds or notes;
(2) paying expenses of operation and maintenance of the
facility;
(3) creating a reserve fund to pay the principal of and
interest on the bonds or notes; and
(4) creating other funds.
(i) As provided in the resolution, proceeds from the sale of
the bonds and notes may be placed on time deposit or invested
until needed.
(j) If the bonds or notes are issued payable by a pledge of
revenues, income, or receipts, the district may pledge all or any
part of its revenues, income, or receipts from fees, rentals,
rates, charges, and proceeds and payments from contracts to the
payment of the bonds or notes, including the payment of
principal, interest, and any other amounts required or permitted
in connection with the bonds or notes. The pledged fees,
rentals, rates, charges, proceeds, and payments must be
established and collected in amounts that will be at least
sufficient, together with any other pledged resources, to provide
for:
(1) all payments of principal, interest, and any other
amounts required in connection with the bonds or notes; and
(2) the payment of expenses in connection with the bonds or
notes and the operation, maintenance, and other expenses in
connection with the facilities to the extent required by the
resolution authorizing, or the trust indenture securing, the
issuance of the bonds or notes.
(k) The district shall impose a tax as prescribed by Section
775.074 if the bonds or notes are payable wholly or partly from
ad valorem taxes.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.077. Election to Approve Bonds and Notes.
(a) A district may not authorize bonds and notes secured in
whole or in part by taxes unless a majority of the district's
qualified voters who vote at an election ordered for that purpose
approve the issuance of the bonds and notes.
(b) The board may order an election on the bonds and notes.
The order must contain the same information contained in the
notice of the election.
(c) The board shall publish notice of the election at least
once in a newspaper of general circulation in the district. The
notice must be published not later than the 31st day before
election day.
(d) In addition to the contents of the notice required by the
Election Code, the notice must state:
(1) the amount of bonds or notes to be authorized; and
(2) the maximum maturity of the bonds or notes.
(e) At an election to approve bonds or notes payable wholly
from ad valorem taxes, the ballots must be printed to provide for
voting for or against the following: "The issuance of (bonds or
notes) and the levy of taxes for payment of the (bonds or
notes)."
(f) At an election to approve bonds or notes payable from both
ad valorem taxes and revenues, the ballots must be printed to
provide for voting for or against the following: "The issuance
of (bonds or notes) and the pledge of net revenues and the levy
of ad valorem taxes adequate to provide for the payment of the
(bonds or notes)."
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.078. Bond Anticipation Notes.
(a) A district may issue bond anticipation notes from time to
time to carry out one or more of its powers.
(b) The bond anticipation notes may be secured by a pledge of
all or part of the district's ad valorem taxes and revenues,
income, or receipts.
(c) A district may from time to time authorize the issuance of
bonds to provide proceeds to pay the principal of and interest on
bond anticipation notes. The bonds must be secured by a pledge
of all or part of the district's ad valorem taxes or revenues,
income, or receipts and may be issued on a parity with or
subordinate to outstanding district bonds.
(d) If the resolution authorizing the issuance of, or the trust
indenture securing, the bond anticipation notes includes a
covenant that the notes are payable from the proceeds of the
subsequently issued bonds, it is not necessary for the district
to demonstrate, in order to receive the approval of the attorney
general or registration by the comptroller, that the ad valorem
taxes or revenues, income, or receipts that may be pledged to
payment of the notes will be sufficient to pay the principal of
and interest on the notes.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.079. Refunding Bonds.
(a) A district may refund or refinance bonds or notes issued
under this chapter by issuing refunding bonds for the purpose and
under the terms, conditions, and details determined by the board.
(b) Each relevant and appropriate provision of this chapter is
applicable to the refunding bonds, and the refunding bonds shall
be issued in the manner provided by this chapter for issuing
other bonds.
(c) Refunding bonds may be sold and delivered in amounts
necessary to pay the principal of, interest on, and redemption
premium, if any, on bonds to be refunded at maturity or on a
redemption date.
(d) The refunding bonds may be issued in exchange for the bonds
being refunded, and the comptroller shall register the refunding
bonds and deliver them to each holder of the bonds being refunded
as provided by the resolution authorizing the refunding bonds.
The exchange may be made in one delivery or in several
installment deliveries.
(e) The bonds and notes issued by the district may be refunded
in the manner provided by other applicable state law.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.080. Approval and Registration of Bonds.
(a) The district shall submit the bonds, notes, and bond
anticipation notes issued under this chapter, and the appropriate
proceedings authorizing their issuance, to the attorney general
for examination.
(b) If the bonds, notes, or bond anticipation notes state that
they are secured by a pledge of contract revenues, the district
may submit a copy of the contract and the proceedings relating to
the contract to the attorney general.
(c) The attorney general shall approve the bonds, notes, or
bond anticipation notes and any submitted contract if the
attorney general finds that the bonds, notes, or bond
anticipation notes are authorized as provided by law, and that
the contract, if submitted, is made as provided by law.
(d) On approval by the attorney general, the comptroller shall
register the bonds, notes, or bond anticipation notes.
(e) After approval and registration, the bonds, notes, or bond
anticipation notes and the contract are incontestable in a court
or other forum for any reason and are valid and binding
obligations in accordance with their terms for all purposes.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.081. Bonds as Investments and Security for Deposits.
(a) District bonds and notes are legal and authorized
investments for:
(1) a bank;
(2) a savings bank;
(3) a trust company;
(4) a savings and loan association;
(5) an insurance company;
(6) a fiduciary;
(7) a trustee;
(8) a guardian; and
(9) a sinking fund of a municipality, county, school
district, or other political corporation or subdivision of the
state.
(b) District bonds and notes are eligible to secure the deposit
of public funds of the state and of a municipality, county,
school district, or other political corporation or subdivision of
the state. The bonds and notes are legal and sufficient security
for deposits to the extent of their value, and if in coupon form,
when accompanied by all unmatured coupons.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 775.082. Audit of District Located Wholly in One County.
(a) In a district located wholly in one county, the county
auditor shall have access to the books, records, officials, and
assets of the district.
(b) A district located wholly in one county shall prepare and
file with the commissioners court of the county on or before June
1 of each year an audit report of the district's fiscal accounts
and records. The audit shall be performed and the report shall
be prepared at the expense of the district. The county auditor,
with the approval of the commissioners court, shall adopt rules
relating to the format of the audit and report.
(c) The person who performs the audit and issues the report
must be an independent certified public accountant or firm of
certified public accountants licensed in this state, unless the
commissioners court by order requires the audit to be performed
by the county auditor at least 120 days before the end of the
district's fiscal year.
(d) The commissioners court, on application made to the
commissioners court by the district, may extend up to an
additional 30 days the deadline for filing the audit report.
(e) If the district fails to complete and file the audit report
within the time provided by Subsection (b) or (d), the
commissioners court may order the county auditor to perform the
audit and issue the report.
(f) The district shall pay all costs incurred by the county
auditor to perform an audit and issue the report required by this
section, unless otherwise ordered by the commissioners court.
Added by Acts 1993, 73rd Leg., ch. 195, Sec. 2, eff. Sept. 1,
1993. Amended by Acts 1997, 75th Leg., ch. 392, Sec. 5, eff.
Sept. 1, 1997.
Sec. 775.083. Annual Report.
(a) On or before January 1 of each year, a district shall file
with the secretary of state an annual report that includes the
following:
(1) the district's name;
(2) the name of each county in which the district is
located;
(3) the district's business address;
(4) the name, mailing address, and term of office of each
commissioner;
(5) the name, mailing address, and term of office of the
district's general manager, executive director, and fire chief;
(6) the name of each legal counsel or other consultant for
the district; and
(7) the district's annual budget and tax rate for the
preceding fiscal year.
(b) The secretary of state may not charge a fee for filing the
report.
Added by Acts 1997, 75th Leg., ch. 392, Sec. 6, eff. Sept. 1,
1997.
Sec. 775.084. Competitive Bids.
(a) Except as provided by Subsection (i), the board must submit
to competitive bids an expenditure of more than $25,000 for:
(1) one item or service; or
(2) more than one of the same or a similar type of item or
service in a fiscal year.
(b) The board shall request bids on items to be purchased or
leased or services to be performed as provided by this
subsection. The board shall notify suppliers, vendors, or
providers by advertising for bids or by providing at least three
suppliers, vendors, or purchasers with written notice by mail of
the intended purchase. If the board decides to advertise for
bids, the advertisement must be published in accordance with
Section 262.025(a), Local Government Code. If the board receives
fewer than three bids in response to the advertisement, the board
shall give written notice directly to at least three suppliers,
vendors, or providers of the intended purchase. If three
suppliers, vendors, or providers are not available or known to
the board, the board shall give written notice by mail directly
to each supplier, vendor, or provider known to the board.
(c) The advertisement or notice for competitive bidding must:
(1) describe the work to be performed or the item to be
purchased or leased;
(2) state the location at which the bidding documents,
plans, specifications, or other data may be examined; and
(3) state the time and place for submitting bids and the
time and place that bids will be opened.
(d) The board may not prepare restrictive bid specifications.
(e) Bids may be opened only by the board at a public meeting or
by a district officer or employee at or in a district office.
(f) The board may reject any bid. The board may not award a
contract to a bidder who is not the lowest bidder unless, before
the bid is awarded, the lowest bidder is given notice of the
proposed award and an opportunity to appear before the board or
its designated representative and present evidence concerning the
bidder's responsibility.
(g) A contract awarded in violation of this section is void.
(h) This section applies to an expenditure of district tax
revenues by any party or entity for the purchase of services,
vehicles, equipment, or goods.
(i) This section does not apply to:
(1) the purchase or lease of real property;
(2) an item or service that the board determines can be
obtained from only one source;
(3) a contract for fire extinguishment and suppression
services, emergency rescue services, or ambulance services; or
(4) an emergency expenditure.
(j) Subsection (i) does not prohibit the board from soliciting
competitive bids for any item, service, or contract listed in
Subsection (i).
(k) A contract for a public works project must be administered
in accordance with Subchapter B, Chapter 271, Local Government
Code, except as provided by this section.
Added by Acts 1997, 75th Leg., ch. 392, Sec. 7, eff. Sept. 1,
1997