Health and Safety Code
CHAPTER 794. RURAL FIRE PREVENTION DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 794.001. Definitions.
In this chapter:
(1) "Board" means the board of fire commissioners.
(2) "District" means a rural fire prevention district
created under this chapter.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.002. 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. 794.003. Authorization.
A rural fire prevention district may be organized as provided
by Article III, Section 48-d, of the Texas Constitution and by
this chapter to protect life and property from fire and to
conserve natural and human resources.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 794.011. 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 Rural Fire Prevention 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. 794.012. 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
"____________ Rural Fire Prevention District."
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.013. Contents of Petition.
(a) The petition prescribed by Section 794.011 or 794.012 must
show:
(1) that the district is to be created and is to operate
under Article III, Section 48-d, of the Texas Constitution;
(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 rural fire prevention 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. 794.014. 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
protection 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.
(c) If the municipality's governing body refuses or fails to
act on the petition requesting fire protection 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.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.015. 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 issue a 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-d, of the Texas Constitution;
(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 is invited to attend the hearing and to present
the person's opinion 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. 794.016. 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. 794.017. Petition Approval.
(a) If after the hearing the commissioners court finds that
creation of the district is feasible, will benefit the territory
in the district, will secure the public safety, welfare, and
convenience, and will aid in conserving the real property or
natural resources in the proposed district, the commissioners
court shall grant the petition and fix the district's boundaries.
(b) If the proposed district will include territory in the
municipal limits or extraterritorial jurisdiction of one or more
municipalities in the district, the commissioners court of the
county in which the municipality is located must determine if the
district would still meet the qualifications 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.
Sec. 794.018. Election.
Text of subsec. (a) effective upon approval of the constitutional
amendment proposed by Acts 1997, 75th Leg., H.J.R. No. 96
(a) On the granting of a petition, the commissioners court
shall order an election to confirm the district's creation and
authorize the levy of a tax not to exceed:
(1) three cents on each $100 of the taxable value of
property taxable by the district, if no part of the district is
located in Harris County; or
(2) five cents on each $100 of the taxable value of property
taxable by the district, if any part of the district is located
in Harris County.
(b) 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.
(c) 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.
(d) 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 1997, 75th Leg., ch. 1417, Sec. 1.
Sec. 794.0181. Election to Increase Tax Rate in Harris County.
Text of section effective upon approval of the constitutional
amendment proposed by Acts 1997, 75th Leg., H.J.R. No. 96
(a) The board of fire commissioners of a district any part of
which is located in Harris County and the creation of which was
confirmed when the maximum tax rate authorized by Section 48-d,
Article III, Texas Constitution, was less than the rate specified
by Section 794.018(a)(2), may order an election to increase the
maximum tax rate of the district to the rate specified by Section
794.018(a)(2). The proposition on the ballot must set out the
proposed maximum tax rate to be authorized at the election.
(b) The board shall give notice of the election as provided by
Section 4.003, Election Code. The notice shall contain the
information required by Section 4.004, Election Code.
(c) The election shall be held on the first uniform election
date provided by the Election Code after the date of the board's
order that allows sufficient time to comply with any requirements
of law.
(d) If a majority of the votes cast in the election favor the
increase in the maximum tax rate, the maximum tax rate shall be
increased to the rate authorized by the election. The increase
in the maximum tax rate applies only to a tax year for which the
board of fire commissioners adopts a tax rate after the date of
the election. A board that adopts a tax rate for a tax year on
or before the date of the election may not adopt a new tax rate
for that tax year after the date of the election that would
exceed the maximum tax rate in effect on the date the tax rate
was initially adopted for that year.
Amended by Acts 1997, 75th Leg., ch. 1417, Sec. 2.
Sec. 794.019. 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 levying 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 794.017 were
favorable to the district's creation.
(c) 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 most
recent election concerning creation of the district.
(d) When a district is created, the commissioners court of each
county in which the district is located shall enter an order in
its minutes 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 a rural
fire prevention 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 rural fire prevention 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 a rural fire
prevention district (or a portion thereof) under the name of
____________, under Article III, Section 48-d, of the Texas
Constitution, and has the powers vested by law in the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.020. 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 794.016 was
most recently held.
(c) The fact that a district is created 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.
SUBCHAPTER C. ORGANIZATION, POWERS, AND DUTIES
Sec. 794.031. District Powers.
A district is a political subdivision of the state. To perform
the functions of the district, 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) levy and enforce the collection of taxes as prescribed by
this chapter;
(6) accept and receive donations;
(7) lease, own, maintain, operate, and provide fire engines and
other necessary or proper fire protection equipment and machinery
to prevent and extinguish fires in the district;
(8) lease, own, and maintain real property, improvements, and
fixtures necessary to house, repair, and maintain fire protection
equipment;
(9) contract with other entities, including other districts or
municipalities, to make fire-fighting facilities, fire
extinguishment services, and emergency rescue and ambulance
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;
(11) lease, own, maintain, operate, and provide emergency rescue
equipment, and emergency ambulance service, and other necessary
and proper equipment to prevent loss of life or serious personal
injury from fire or other hazards; and
(12) perform other acts necessary to carry out the intent of this
chapter.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.032. Certain Businesses Not Subject to Tax or District Powers.
A business entity located in a district is not subject to the
tax authorized by this chapter or subject to the district's
powers if the business entity:
(1) provides its own fire protection;
(2) receives the appropriate certification from the Texas
Industrial Fire Training Board; and
(3) owns or operates fire-fighting equipment equivalent to
or better than a Class I Rural Fire Prevention District or
Metropolitan County Fire Protection System, as defined by the
State Board of Insurance on September 1, 1985.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.033. 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 fire commissioners to serve as the district's governing
body. Except as prescribed by Subsection (b), commissioners
serve two-year terms.
(b) After the votes have been canvassed and the commissioners
court enters the order creating the district, the commissioners
court shall appoint the initial fire commissioners to serve until
January 1 of the year following the district election. On
January 1, the court shall designate three of those fire
commissioners to serve a two-year term and two of those fire
commissioners to serve a one-year term.
(c) On January 1 of each year, the commissioners court shall
appoint a successor for each fire commissioner whose term has
expired.
(d) The commissioners court shall fill a vacancy on the board
for the remainder of the unexpired term.
(e) To be eligible for appointment to the board of a district
in a county with a population of 450,000 or more that has not
established a public health district under Chapter 121, a person
must be a resident of or owner of real property in the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1993, 73rd Leg., ch. 834, Sec. 1, eff. Sept. 1,
1993; Acts 1997, 75th Leg., ch. 48, Sec. 1, eff. May 7, 1997.
Sec. 794.034. 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 fire commissioners
elected as prescribed by this section. Except as provided by
Subsection (g), fire 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 fire commissioners.
(c) To be eligible to be a candidate for fire 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 fire 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 fire 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 fire 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 fire commissioners serve two-year terms.
(h) The general election for commissioner shall be held
annually on an authorized election date as provided by Chapter
41, Election Code.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.035. 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 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 cause inspections to be made in the district
relating to the causes and prevention of fires.
(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 1993, 73rd Leg., ch. 195, Sec. 3, eff. Sept. 1,
1993.
Sec. 794.036. Officers of Board.
(a) The fire 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.
(c) The commissioners court of the county in which a
single-county district is located or, if the district is located
in more than one county, the commissioners court of the county
with the largest population in the district may require that the
assistant treasurer execute and file with the county clerk of
that county a bond conditioned on the faithful execution of the
assistant treasurer's duties. 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.
Amended by Acts 1993, 73rd Leg., ch. 499, Sec. 1, eff. Aug. 30,
1993.
Sec. 794.037. Compensation; Conflict of Interest.
(a) Fire commissioners serve without compensation but may be
reimbursed for reasonable and necessary expenses incurred in
performing official duties.
(b) Except as a resident or property owner in the district, a
fire commissioner may not have an interest in a contract or
transaction to which the district is a party and under which the
fire commissioner may receive money or other things of value as
consideration.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER D. CHANGE IN BOUNDARIES OR DISSOLUTION OF DISTRICT
Sec. 794.051. 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 board shall set a date for the hearing that is not less than
30 days after the date on which the board issues the order.
(c) The secretary of the board shall issue a 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) Not later than the 16th day before the date on which the
hearing will be held, 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; and
(2) 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 modification or 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
____________ Rural Fire Prevention District."
(2) "(Description of territory to be added) assuming its
proportionate share of the outstanding debts and taxes of the
____________ Rural Fire Prevention 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 applicable provisions of this chapter, except that the board
president shall conduct the election and certify the results to
the county judge of each county in the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.052. Exclusion of Territory Located in Other Taxing Authority.
(a) The board may exclude from the district territory that is
in another taxing authority if the other taxing authority
provides the same services to the territory as the district
provides.
(b) The board may hold a hearing to consider the exclusion of
territory.
(c) The board shall hold a hearing to consider the exclusion of
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.
(d) The board shall give notice of a hearing under this
section. The procedure under Section 794.015 for issuing notice
of a hearing to create the district applies to the notice under
this section. The notice must state:
(1) the proposed new boundaries of the district or 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 is invited to attend the hearing
and to present the person's opinion for or against the
exclusion of the territory.
(e) After the hearing, the board may order an election on the
question of exclusion or declare by resolution the territory
excluded from the district, except that the board may not exclude
territory by resolution if the owners of at least three percent
of the property located in the district protest the exclusion.
(f) In a resolution excluding territory, the board shall
describe the new boundaries of the district.
(g) 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 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.
(h) 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.
(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.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.0525. Exclusion of Taxing Authority Providing its Own Fire
Service.
(a) The voters of a taxing authority located within the
boundaries of a district may exclude the taxing authority from
the district under this section if the taxing authority provided
services to fight fires throughout the taxing authority's
territory before the date of the election to confirm the
organization of the district under this chapter.
(b) The governing body of the taxing authority shall order an
election on the exclusion of the taxing authority from the
district on receipt of a petition signed by at least three
percent of the registered voters of the taxing authority or, on
its own motion, may call an election on the exclusion of the
taxing authority from the district. The provisions of the
Election Code relating to a petition authorized to be filed in
connection with an election apply to a petition submitted under
this section.
(c) The provisions of this chapter relating to the election to
create a district apply to the election notice, the manner and
time of giving the notice, and the manner of holding the election
under this section.
(d) If a majority of the voters voting in the election favor
excluding the taxing authority from the district, the board shall
enter an order declaring the territory of the taxing authority
excluded from the district and describing the new boundaries of
the district.
(e) 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.
(f) If a majority of the voters voting in the election do not
favor excluding the taxing authority from the district, a
subsequent election to exclude the same taxing authority from the
district under this section may not be held before the first
anniversary of the most recent election to exclude the territory.
(g) 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.
(h) 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 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 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 for which taxes are to be
collected.
Added by Acts 1991, 72nd Leg., ch. 14, Sec. 278, eff. Sept. 1,
1991.
Sec. 794.0526. 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 794.015 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 fire fighting facilities, fire
extinguishment services, emergency rescue services, ambulance
services, or other services to protect the life and property of
residents in the territory from fire and to conserve natural and
human resources.
(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. 2, eff. June 20,
1997.
Sec. 794.053. Removal of Certain Territory by Governing Body of
Municipality.
(a) This section applies only to a district that does not have
bonded indebtedness.
(b) If territory in a municipality's limits or extraterritorial
jurisdiction is included in a district, the municipality's
governing body may remove that territory from the district as
prescribed by this section if:
(1) the municipality agrees to provide fire protection to
the territory as prescribed by Section 794.014; or
(2) the territory is designated an industrial district under
Section 42.044, Local Government Code.
(c) To remove territory under Subsection (b), the governing
body of the municipality must notify the secretary of the board
in writing that the territory is excluded from the district's
territory.
(d) If a municipality annexes territory that is included in a
district, the governing body of the municipality shall notify the
secretary of the board in writing that the annexed territory is
excluded from the district's territory.
(e) A district may collect taxes on property in territory
excluded under this section for the calendar year in which the
municipality excludes the territory. However, if the district
collects the taxes, the district must provide services to the
territory for the entire calendar year. Not later than the last
day of the calendar year in which the board receives the notice
under Subsection (c) or (d) or is otherwise informed of the
municipality's actions, the board shall stop providing service to
the territory, exclude the territory from the district by order,
and redefine the district's boundaries.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.054. Payment of Debt by Excluded Territory.
(a) The exclusion of territory under Section 794.052 or 794.053
does not diminish or impair the rights of the holders of any
outstanding and unpaid bonds, warrants, or other obligations of
the district.
(b) Except as provided by Section 794.055, territory excluded
under Section 794.052 or 794.053 is not released from the payment
of its 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 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 exclusively to the payment of the excluded territory's
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.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.055. Annexation by Adjacent District.
(a) If under Section 794.053 a municipality annexes or agrees
to provide services to the majority of the territory previously
included in a district, an adjacent district may annex the
remaining district territory if:
(1) the tax rate in each district is identical;
(2) neither district has any bonded indebtedness; and
(3) the board in each district agrees to the annexation by a
majority vote.
(b) A district annexed by another district under this section
is dissolved on the date on which the annexation takes effect.
The annexing district assumes all rights and responsibilities of
the annexed district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.056. 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 100 qualified voters
who own taxable real property in the district or a majority of
those voters, whichever is less.
(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 issue a notice of the hearing that
includes:
(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. 794.057. 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. 794.058. Appeal.
A person or an owner of real or personal property located in
the district may appeal the board's decision relating to
dissolution of the district. The person or owner must file the
appeal in a district court in a county in which the district is
located.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.059. 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.
(d) The ballot shall be printed to provide for voting for or
against the following: "Dissolving the ____________ Rural Fire
Prevention 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. 794.060. 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 have been disposed of and
all district debts have been 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 citizens.
(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 has paid all its debts and has disposed
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 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 fire commissioner is discharged from liability under
the fire 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. 794.071. Limitation on Indebtedness.
Except as provided by Sections 794.072, 794.076-794.081, and
794.083, 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.
Amended by Acts 1995, 74th Leg., ch. 730, Sec. 1, eff. Aug. 28,
1995.
Sec. 794.072. 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. 794.073. 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.
Sec. 794.074. Competitive Bids Requirement.
(a) Except as provided by Subsection (i), the board must submit
to competitive bids an expenditure of more than $15,000 for:
(1) one item or service; or
(2) more than one of the same or a similar type of items or
services 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 five
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 five bids in response to the advertisement, the board
shall give written notice directly to at least five suppliers,
vendors, or providers of the intended purchase. If five
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, including a volunteer fire
department, for the purchase of services, vehicles, equipment, or
goods.
(i) This section does not apply:
(1) to the purchase or lease of real property;
(2) to an item or service that the board determines can be
obtained from only one source; or
(3) an emergency expenditure.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1993, 73rd Leg., ch. 757, Sec. 5, eff. Sept. 1,
1993.
Sec. 794.075. Taxes.
(a) The board shall annually impose a 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 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 tax rate to the county tax
assessor-collector, who is the assessor-collector for the
district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 794.076. 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 levy a tax as prescribed by Section
794.075 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. 794.077. 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 called 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. 794.078. 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. 794.079. 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. 794.080. 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. 794.081. 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, a county, a 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 municipalities, counties,
school districts, or other political corporations or subdivisions
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. 794.082. 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 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. 4, eff. Sept. 1,
1993. Amended by Acts 1997, 75th Leg., ch. 392, Sec. 8, eff.
Sept. 1, 1997.
Sec. 794.083. Loan for Fire-Fighting Equipment.
(a) The board, on the behalf of the district, may borrow money
and make other financial arrangements to purchase a fire engine
or similar heavy fire-fighting equipment in the amount and
subject to a rate of interest or other conditions the board
considers advisable.
(b) To secure a loan under this section, the board may pledge:
(1) tax revenues or funds on hand that are not otherwise
pledged to pay a debt of the district; or
(2) the equipment acquired with the borrowed money.
(c) If tax revenues are pledged to pay a loan, the loan must
mature not later than the fifth anniversary of the date the loan
is made.
Added by Acts 1995, 74th Leg., ch. 730, Sec. 2, eff. Aug. 28,
1995.
SUBCHAPTER F. CONVERSION TO EMERGENCY SERVICES DISTRICT
Sec. 794.100. Conversion Authorized.
A district may be converted to an emergency services district if:
(1) the board receives a petition for conversion from the
qualified voters in the district; and
(2) the conversion is approved by a majority of the qualified
voters of the district who vote at an election called and held
for that purpose.
Added by Acts 1993, 73rd Leg., ch. 195, Sec. 5, eff. Sept. 1,
1993; Acts 1993, 73rd Leg., ch. 223, Sec. 1, eff. Aug. 30, 1993.
Sec. 794.101. Contents of Petition.
(a) The petition prescribed by Section 794.100 must:
(1) state the name of the proposed emergency services
district;
(2) describe the existing district's boundaries by metes and
bounds or other sufficient legal description; and
(3) be signed by at least 100 qualified voters in the
existing district or, if there are fewer than 100 of those
voters, 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.
Added by Acts 1993, 73rd Leg., ch. 195, Sec. 5, eff. Sept. 1,
1993; Acts 1993, 73rd Leg., ch. 223, Sec. 1, eff. Aug. 30, 1993.
Sec. 794.102. Order of Election.
(a) Not later than the 30th day after the date the petition is
presented to the board, the board shall order an election on the
question of converting the district.
(b) The election shall be held not later than the 60th day
after the date on which the election is ordered.
(c) Section 41.001(a), Election Code, does not apply to an
election ordered under this section.
Added by Acts 1993, 73rd Leg., ch. 195, Sec. 5, eff. Sept. 1,
1993; Acts 1993, 73rd Leg., ch. 223, Sec. 1, eff. Aug. 30, 1993.
Sec. 794.103. Ballot Proposition.
The ballot for an election ordered under Section 794.102 shall
be printed to permit voting for or against the proposition: "The
conversion of the __________ Rural Fire Prevention District from
a district operating under Chapter 794, Health and Safety Code,
to a district operating under Chapter 775, Health and Safety
Code."
Added by Acts 1993, 73rd Leg., ch. 195, Sec. 5, eff. Sept. 1,
1993; Acts 1993, 73rd Leg., ch. 223, Sec. 1, eff. Aug. 30, 1993.
Sec. 794.104. Effective Date of Conversion.
If a majority of the qualified voters participating in the
election vote in favor of the proposition, the conversion becomes
effective on the 30th day after the date on which the election
results are declared.
Added by Acts 1993, 73rd Leg., ch. 195, Sec. 5, eff. Sept. 1,
1993; Acts 1993, 73rd Leg., ch. 223, Sec. 1, eff. Aug. 30, 1993.
Sec. 794.105. District Responsibilities.
If a district is converted to an emergency services district,
the emergency services district assumes all obligations and
outstanding indebtedness of the district.
Added by Acts 1993, 73rd Leg., ch. 195, Sec. 5, eff. Sept. 1,
1993; Acts 1993, 73rd Leg., ch. 223, Sec. 1, eff. Aug. 30, 1993