77(R) HB 1096 Introduced version - Bill Text.html

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By Luna H.B. No. 1096

77R4208 ATP-F

A BILL TO BE ENTITLED

1-1 AN ACT

1-2 relating to the creation of fire control, prevention, and emergency

1-3 medical services districts by certain municipalities.

1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-5 SECTION 1. Subtitle A, Title 11, Local Government Code, is

1-6 amended by adding Chapter 344 to read as follows:

1-7 CHAPTER 344. FIRE CONTROL, PREVENTION, AND EMERGENCY MEDICAL

1-8 SERVICES DISTRICTS

1-9 SUBCHAPTER A. GENERAL PROVISIONS

1-10 Sec. 344.001. SHORT TITLE. This chapter may be cited as the

1-11 Fire Control, Prevention, and Emergency Medical Services District

1-12 Act.

1-13 Sec. 344.002. DEFINITIONS. In this chapter:

1-14 (1) " Board " means the board of directors of a

1-15 district.

1-16 (2) " Director " means a member of a board.

1-17 (3) " District " means a fire control, prevention, and

1-18 emergency medical services district created under this chapter.

1-19 Sec. 344.003. LIABILITY OF STATE. The state is not

1-20 obligated for the support, maintenance, or dissolution of a

1-21 district created under this chapter.

1-22 (Sections 344.004-344.050 reserved for expansion

1-23 SUBCHAPTER B. CREATION OF DISTRICT AND TEMPORARY BOARD

1-24 Sec. 344.051. AUTHORITY OF MUNICIPALITY TO PROPOSE DISTRICT.

2-1 (a) The governing body of a municipality with a population of more

2-2 than 100,000 may propose the creation of a fire control,

2-3 prevention, and emergency medical services district under this

2-4 chapter.

2-5 ( The proposed district may include all or any part of the

2-6 municipality.

2-7 Sec. 344.052. TEMPORARY BOARD. (a) Not later than the 60th

2-8 day after the date the governing body proposes to create a district

2-9 under this chapter, the governing body shall appoint seven persons

2-10 to serve as temporary directors of the district. The temporary

2-11 directors must reside in the proposed district.

2-12 ( Not later than the 75th day after the date the governing

2-13 body proposes to create the district, the temporary board shall

2-14 conduct a meeting to organize the board. The temporary directors

2-15 shall elect one of its members as presiding officer of the board at

2-16 that meeting.

2-17 © A temporary director other than the presiding officer

2-18 may designate another person to serve in the director's place.

2-19 (d) The governing body shall fill a vacancy in the office of

2-20 a temporary director in the same manner that it originally filled

2-21 the vacant position.

2-22 Sec. 344.053. ELECTION REQUIRED. A proposed district may be

2-23 created and a district tax may be authorized only if the creation

2-24 and the tax are approved by a majority of the qualified voters of

2-25 the proposed district voting at an election called and held for

2-26 that purpose.

2-27 Sec. 344.054. CONFIRMATION ELECTION ORDER. (a) The

3-1 temporary board may call and hold a confirmation election only

3-2 after the board adopts plans under Section 344.061.

3-3 ( An order calling an election under Subsection (a) must

3-4 state:

3-5 (1) the nature of the election, including the

3-6 proposition that is to appear on the ballot;

3-7 (2) the date of the election;

3-8 (3) the hours during which the polls will be open;

3-9 (4) the location of the polling places;

3-10 (5) a summary of the proposed district's budget plan

3-11 and fire control, prevention, and emergency medical services plan;

3-12 and

3-13 (6) the proposed rate of the sales and use tax for the

3-14 district.

3-15 Sec. 344.055. SALES AND USE TAX. (a) A municipality that

3-16 creates a district shall adopt a sales and use tax under Section

3-17 321.106, Tax Code, for financing the operation of the district.

3-18 The proposed rate for the district sales and use tax imposed under

3-19 Subchapter B, Chapter 321, Tax Code, may be only:

3-20 (1) one-eighth of one percent;

3-21 (2) one-fourth of one percent;

3-22 (3) three-eighths of one percent; or

3-23 (4) one-half of one percent.

3-24 ( A sales and use tax adopted under this chapter may be

3-25 charged in addition to any other sales and use tax authorized by

3-26 law and is not included in computing a combined sales and use tax

3-27 rate for purposes of any limitation provided by law on the maximum

4-1 combined sales and use tax rate of political subdivisions.

4-2 Sec. 344.056. NOTICE OF ELECTION. In addition to the notice

4-3 required by Section 4.003©, Election Code, the temporary

4-4 directors of a proposed district shall give notice of an election

4-5 to create a district by publishing a substantial copy of the

4-6 election order in a newspaper with general circulation in the

4-7 proposed district once a week for two consecutive weeks. The first

4-8 publication must appear before the 35th day before the date set for

4-9 the election.

4-10 Sec. 344.057. ELECTION DATE. (a) The election shall be

4-11 held after the 34th day and before the 61st day after the date on

4-12 which the election is ordered.

4-13 ( Section 41.001(a), Election Code, does not apply to a

4-14 confirmation election under this chapter.

4-15 Sec. 344.058. BALLOT PROPOSITION. The ballot for an

4-16 election to create a district shall be printed to permit voting for

4-17 or against the proposition: " The creation of the ______ (name of

4-18 the municipality proposing to create the district) Fire Control,

4-19 Prevention, and Emergency Medical Services District dedicated to

4-20 fire safety and emergency medical services programs and the

4-21 adoption of a proposed local sales and use tax at a rate of _______

4-22 (rate specified in the election order). "

4-23 Sec. 344.059. CANVASSING RETURNS. (a) Not earlier than the

4-24 second day and not later than the 13th day after the date of the

4-25 election, the temporary board shall meet and canvass the returns of

4-26 the election.

4-27 ( If a majority of the votes cast in the election favor

5-1 the creation of the district, the temporary board shall issue an

5-2 order declaring the district created.

5-3 © If less than a majority of the votes cast in the

5-4 election favor the creation of the district, the temporary board

5-5 may order another election on the matter not earlier than the first

5-6 anniversary of the date of the preceding election.

5-7 Sec. 344.060. DISSOLUTION OF TEMPORARY BOARD. If a district

5-8 has not been created under this chapter before the fifth

5-9 anniversary of the date a district is first proposed by the

5-10 governing body under Section 344.051:

5-11 (1) the temporary board is dissolved on that date; and

5-12 (2) the proposed district may not be created under

5-13 this chapter.

5-14 Sec. 344.061. FIRE CONTROL, PREVENTION, AND EMERGENCY

5-15 MEDICAL SERVICES PLAN AND BUDGET PLAN. (a) The temporary board

5-16 shall develop and adopt a two-year fire control, prevention, and

5-17 emergency medical services plan and a two-year budget plan. The

5-18 fire control, prevention, and emergency medical services plan must

5-19 include:

5-20 (1) a detailed list of the fire control, prevention,

5-21 and emergency medical services strategies to be supported by the

5-22 district; and

5-23 (2) the method of evaluating each year the

5-24 effectiveness and efficiency of individual fire control,

5-25 prevention, and emergency medical services strategies.

5-26 ( The budget plan must include:

5-27 (1) the amount of money budgeted by the district for

6-1 each fire control, prevention, and emergency medical services

6-2 strategy;

6-3 (2) the amount of money budgeted by the district and

6-4 the percentage of the total budget of the district for

6-5 administration, with individual amounts showing the cost of the

6-6 administration that would be conducted by the district and the cost

6-7 of administration that would be conducted by private or public

6-8 entities;

6-9 (3) the estimated amount of money available to the

6-10 district from all sources during the subsequent year;

6-11 (4) the account balances expected at the end of the

6-12 years for which the budget is prepared; and

6-13 (5) the estimated tax rate that will be required to

6-14 support the budget.

6-15 © Plans under this section must be adopted in the same

6-16 manner as provided for adoption of a proposed annual budget under

6-17 Section 344.204.

6-18 (d) The temporary board shall coordinate its efforts in

6-19 developing its plans under this section with appropriate local

6-20 officials and entities.

6-21 Sec. 344.062. FINANCING CREATION OF DISTRICT. (a) A

6-22 municipality creating a district shall pay the entire cost of

6-23 creating the district.

6-24 ( If a district is created, the district shall reimburse

6-25 the municipality for the actual expenses the municipality incurred

6-26 in the creation of the district.

6-27 (Sections 344.063-344.100 reserved for expansion

7-1 SUBCHAPTER C. ADMINISTRATION

7-2 Sec. 344.101. BOARD OF DIRECTORS. (a) Except as provided

7-3 by Subsections (f) and (g), a district is governed by a board of

7-4 seven directors appointed in the same manner as provided by Section

7-5 344.052(a) for the appointment of temporary directors.

7-6 ( Initial appointees under this section shall draw lots to

7-7 determine their terms so that:

7-8 (1) three directors serve terms that expire on

7-9 September 1 of the first year following creation of the district;

7-10 and

7-11 (2) four directors serve terms that expire on

7-12 September 1 of the second year following creation of the district.

7-13 © Directors serve staggered two-year terms.

7-14 (d) A vacancy in the office of director shall be filled for

7-15 the unexpired term in the same manner that the vacant position was

7-16 originally filled.

7-17 (e) A member of the board is not liable for civil damages or

7-18 criminal prosecution for any act performed in good faith in the

7-19 execution of the member's duties as a director or for an action

7-20 taken by the board.

7-21 (f) The governing body of a municipality by resolution may

7-22 appoint the governing body's membership as the board of directors

7-23 of the district, if the appointment is approved by the voters in a

7-24 creation election or continuation referendum under this chapter. A

7-25 member of a governing body appointed under this section as an ex

7-26 officio director serves a term concurrent with the member's term as

7-27 a member of the governing body.

8-1 (g) In a district for which the governing body of the

8-2 municipality does not serve as the district's board of directors,

8-3 the governing body may create a board of directors for which one

8-4 director is appointed by each member of the governing body to serve

8-5 at the pleasure of that member for a term not to exceed two years

8-6 and that expires when the member of the governing body that

8-7 appointed the director leaves office.

8-8 Sec. 344.102. PERFORMANCE BOND. (a) Before assuming the

8-9 duties of the office, each director or officer must execute a bond

8-10 for $5,000 payable to the district, conditioned on the faithful

8-11 performance of the person's duties as director or officer.

8-12 ( The bond shall be kept in the permanent records of the

8-13 district.

8-14 © The board may pay for the bonds of directors or officers

8-15 with district funds.

8-16 (d) The board and the district may issue and sell bonds

8-17 conditioned on the faithful performance of a person's duties as a

8-18 director as provided by this section.

8-19 Sec. 344.103. OFFICERS. (a) The board shall elect from

8-20 among its members a president and vice president.

8-21 ( The board shall appoint a secretary. The secretary may

8-22 be a director.

8-23 © The person who performs the duties of auditor for the

8-24 municipality shall serve as treasurer of the district.

8-25 (d) Each officer of the board serves for a term of one year.

8-26 (e) A vacancy in a board office shall be filled by the board

8-27 for the unexpired term.

9-1 Sec. 344.104. COMPENSATION. A director or officer serves

9-2 without compensation, but a director or officer may be reimbursed

9-3 for actual expenses incurred in the performance of official duties.

9-4 Those expenses must be reported in the district's minute book or

9-5 other district record and must be approved by the board.

9-6 Sec. 344.105. VOTING REQUIREMENT. A concurrence of a

9-7 majority of the members of the board is necessary in matters

9-8 relating to the business of a district. A two-thirds majority vote

9-9 of the board is required to reject any application for funding

9-10 available under this chapter.

9-11 Sec. 344.106. CONTRACT FOR ADMINISTRATIVE ASSISTANCE. The

9-12 board may contract with a public agency or private vendor to assist

9-13 the board in the administration or management of the district or to

9-14 assist the board in the review of applications for funding

9-15 available under this chapter.

9-16 (Sections 344.107-344.150 reserved for expansion

9-17 SUBCHAPTER D. POWERS AND DUTIES

9-18 Sec. 344.151. FINANCING DISTRICT PROGRAMS. (a) The

9-19 district may finance all costs of a fire control, prevention, and

9-20 emergency medical services district program, including costs for

9-21 personnel, administration, expansion, enhancement, and capital

9-22 expenditures.

9-23 ( The program may include:

9-24 (1) fire apparatus and equipment;

9-25 (2) a bomb disposal unit and related equipment;

9-26 (3) compensation of fire protection and prevention

9-27 personnel for specialized training regarding:

10-1 (A) arson;

10-2 ( bomb disposal;

10-3 © hazardous materials;

10-4 (D) technical rescue;

10-5 (E) paramedic certification; and

10-6 (F) any other specialized training under the

10-7 program;

10-8 (4) funding for turn-out gear, self-contained

10-9 breathing apparatus, and protective uniforms or other firefighter

10-10 safety equipment;

10-11 (5) additional compensation for municipal

10-12 fire-fighting personnel, including overtime compensation for

10-13 unforeseen staffing needs; and

10-14 (6) funding for the construction and maintenance of

10-15 fire stations, training facilities, or the equipment needed for

10-16 those stations or facilities.

10-17 © The program may include an enhanced emergency

10-18 communications center or other emergency communications programs

10-19 and equipment, including:

10-20 (1) emergency medical dispatch training;

10-21 (2) additional fire and emergency medical service

10-22 dispatchers;

10-23 (3) uniformed fire deployment and communications

10-24 officers;

10-25 (4) real-time weather information; and

10-26 (5) computer databases and systems maintenance

10-27 personnel for hazardous materials responses.

11-1 (d) The program may include a public training program,

11-2 including:

11-3 (1) a juvenile fire starter program;

11-4 (2) an urban survival program, including school

11-5 programs for fire safety, gun safety, and safety with strangers;

11-6 (3) a fire prevention program;

11-7 (4) a fire education program;

11-8 (5) a hazardous materials education program;

11-9 (6) a psychological intervention program; and

11-10 (7) a citizen's ride-along program or home inspection

11-11 program.

11-12 (e) The program may include public preventive health

11-13 programs, including:

11-14 (1) juvenile inoculations;

11-15 (2) weekend health days;

11-16 (3) first aid and cardiopulmonary resuscitation

11-17 training;

11-18 (4) injury prevention; and

11-19 (5) drug and alcohol awareness.

11-20 (f) The program may include response training programs,

11-21 equipment, facilities, and instructors, including:

11-22 (1) a regional training center for fire, rescue,

11-23 hazardous materials, and emergency medical service;

11-24 (2) staff personnel to support the center;

11-25 (3) equipment and apparatus to support the center;

11-26 (4) computer-aided continuing education training

11-27 conducted in-station; and

12-1 (5) training regarding hazardous material storage and

12-2 response.

12-3 (g) The program may include computers and other systems to

12-4 support information management systems to:

12-5 (1) maintain occupancy information;

12-6 (2) track incident analyses;

12-7 (3) track incident reports;

12-8 (4) track internal communications and reporting;

12-9 (5) maintain inventory; and

12-10 (6) serve other information management needs.

12-11 (h) The program may include capital items needed to improve

12-12 emergency response and increase service efficiency, including

12-13 equipment, apparatus, vehicles, and training material or equipment.

12-14 Sec. 344.152. COORDINATION; EVALUATION; GRANTS. (a) The

12-15 district shall coordinate its efforts with local agencies in

12-16 developing its fire control, prevention, and emergency medical

12-17 services program.

12-18 ( The district shall conduct an annual evaluation program

12-19 to study the impact, efficiency, and effectiveness of new or

12-20 expanded fire control, prevention, and emergency medical services

12-21 programs.

12-22 © The board may seek the assistance of the Office of

12-23 State-Federal Relations in identifying and applying for federal

12-24 grants for fire control, prevention, and emergency medical services

12-25 programs.

12-26 (d) The district may apply for and receive grants for fire

12-27 control, prevention, and emergency medical services programs from a

13-1 state or federal agency.

13-2 Sec. 344.153. GENERAL BOARD POWER OVER FUNDS. The board

13-3 shall manage, control, and administer the district finances except

13-4 as provided by Section 344.205.

13-5 Sec. 344.154. USE OF REVENUE. The board may spend revenue

13-6 derived from the sales and use tax distributed under Section

13-7 321.106, Tax Code, only for a purpose authorized by Section

13-8 344.151.

13-9 Sec. 344.155. RULES AND PROCEDURES. (a) A board may adopt

13-10 rules governing programs financed by the district and the functions

13-11 of district staff.

13-12 ( The board may prescribe accounting and control

13-13 procedures for the district.

13-14 © The board is subject to Chapter 2001, Government Code.

13-15 Sec. 344.156. PURCHASING. (a) Except as provided by

13-16 Subsection (, the board may prescribe the method of making

13-17 purchases and expenditures by and for the district.

13-18 ( To the extent competitive bidding procedures in Title 8

13-19 apply, the board may not enter into a purchasing contract for more

13-20 than $15,000 unless the board complies with Chapter 252.

13-21 © If the municipality that created the district has a

13-22 purchasing agent authorized by law, that agent shall serve as

13-23 purchasing agent for the district.

13-24 Sec. 344.157. PROPERTY TO BE USED IN ADMINISTRATION. The

13-25 board may lease or acquire in another manner facilities, equipment,

13-26 or other property for the sole purpose of administering the

13-27 district.

14-1 Sec. 344.158. REIMBURSEMENT FOR SERVICES. (a) A county or

14-2 municipality located outside the boundaries of a district on the

14-3 district's request shall reimburse the district for the district's

14-4 cost of including a resident of that county or municipality who is

14-5 not a resident of that district in a district program.

14-6 ( On behalf of the district, the board may contract with a

14-7 municipal or county government or with the state or federal

14-8 government for the municipal, county, state, or federal government

14-9 to reimburse the district for including a person in a district

14-10 program.

14-11 Sec. 344.159. SERVICE CONTRACTS. The board may contract

14-12 with the following entities to furnish the staff, facilities,

14-13 equipment, programs, or services the board considers necessary for

14-14 the effective operation of the district:

14-15 (1) a municipality, county, special district, or other

14-16 political subdivision of the state;

14-17 (2) a state or federal agency;

14-18 (3) an individual; or

14-19 (4) a private person.

14-20 Sec. 344.160. DONATIONS, GIFTS, AND ENDOWMENTS. On behalf

14-21 of the district, the board or the temporary board may accept a

14-22 donation, gift, or endowment. The district may hold a donation,

14-23 gift, or endowment in trust for any purpose and under any

14-24 direction, limitation, or other provision prescribed in writing by

14-25 the donor that is consistent with this chapter and the proper

14-26 management of the district.

14-27 Sec. 344.161. AUTHORITY TO SUE AND BE SUED. The board may

15-1 sue and be sued in the name of the district.

15-2 (Sections 344.162-344.200 reserved for expansion

15-3 SUBCHAPTER E. DISTRICT FINANCES

15-4 Sec. 344.201. FISCAL YEAR. (a) The board shall establish

15-5 the fiscal year for the district, and the district shall operate on

15-6 the basis of that year.

15-7 ( The fiscal year may not be changed more than once in a

15-8 24-month period.

15-9 Sec. 344.202. AUDITS AND DISTRICT RECORDS. (a) The board

15-10 shall have an annual audit made of the financial condition of the

15-11 district by an independent auditor.

15-12 ( The annual audit and other district records shall be

15-13 open to inspection during regular business hours at the principal

15-14 office of the district.

15-15 Sec. 344.203. ANNUAL BUDGET PROPOSAL. (a) The board shall

15-16 propose an annual budget. The board shall consider the

15-17 applications for program funding in preparing the proposed budget.

15-18 ( The proposed budget must contain a complete financial

15-19 statement, including a statement of:

15-20 (1) the outstanding obligations of the district;

15-21 (2) the amount of cash on hand to the credit of each

15-22 fund of the district;

15-23 (3) the amount of money received by the district from

15-24 all sources during the previous year;

15-25 (4) the estimated amount of money available to the

15-26 district from all sources during the current fiscal year;

15-27 (5) the amount of money needed to fund programs

16-1 approved for funding by the board;

16-2 (6) the amount of money requested for programs that

16-3 were not approved for funding by the board;

16-4 (7) the tax rate for the next fiscal year;

16-5 (8) the amount of the balances expected at the end of

16-6 the year in which the budget is being prepared; and

16-7 (9) the estimated amount of revenues and balances

16-8 available to cover the proposed budget.

16-9 Sec. 344.204. ADOPTION OF BUDGET. (a) Not later than the

16-10 100th day before the date each fiscal year begins, the board shall

16-11 hold a public hearing to consider the proposed annual budget.

16-12 ( The board shall publish notice of the hearing in a

16-13 newspaper with general circulation in the district not later than

16-14 the 10th day before the date of the hearing.

16-15 © A resident of the district is entitled to participate in

16-16 the hearing.

16-17 (d) Not later than the 80th day before the date each fiscal

16-18 year begins, the board shall adopt a budget. The board may make

16-19 any changes in the proposed budget that the interests of the

16-20 taxpayers demand.

16-21 (e) Not later than the 10th day after the date the budget is

16-22 adopted, the board shall submit the budget to the governing body of

16-23 the municipality that created the district.

16-24 (f) The board by rule may adopt alternative procedures for

16-25 adopting a budget that differ from the procedures outlined in this

16-26 subchapter. The board must hold at least one public hearing

16-27 related to the alternative procedures before their adoption.

17-1 Sec. 344.205. APPROVAL OF BUDGET. (a) Not later than the

17-2 45th day before the date each fiscal year begins, the governing

17-3 body of the municipality that created the district shall hold a

17-4 public hearing to consider the budget adopted by the board and

17-5 submitted to the governing body.

17-6 ( The governing body must publish notice of the hearing in

17-7 a newspaper with general circulation in the district not later than

17-8 the 10th day before the date of the hearing.

17-9 © A resident of the district is entitled to participate in

17-10 the hearing.

17-11 (d) Not later than the 30th day before the date the fiscal

17-12 year begins, the governing body shall approve or reject the budget

17-13 submitted by the board. The governing body may not amend the

17-14 budget.

17-15 (e) If the governing body rejects the budget submitted by

17-16 the board, the governing body and the board shall meet and together

17-17 amend and approve the budget before the beginning of the fiscal

17-18 year.

17-19 (f) The budget may be amended after the beginning of the

17-20 fiscal year on approval by the board and the governing body.

17-21 Sec. 344.206. LIMITATIONS ON EXPENDITURES AND INVESTMENTS.

17-22 (a) The district may spend money only for an expense included in

17-23 the annual budget or an amendment to the budget.

17-24 ( A district may not incur a debt payable from revenues of

17-25 the district other than the revenues on hand or to be on hand in

17-26 the current or immediately following fiscal year of the district.

17-27 © The board may not invest district money in funds or

18-1 securities other than those specified by Chapter 2256, Government

18-2 Code.

18-3 Sec. 344.207. ACCOUNT OF DISBURSEMENTS OF DISTRICT. Not

18-4 later than the 60th day after the last day of each fiscal year, an

18-5 administrator shall prepare for the board a sworn statement of the

18-6 amount of money that belongs to the district and an account of the

18-7 disbursements of that money.

18-8 Sec. 344.208. DEPOSIT OF MONEY. (a) The board shall

18-9 deposit district money in a special account in the treasury of the

18-10 municipality that created the district.

18-11 ( District money, other than that invested as provided by

18-12 Section 344.206©, shall be deposited as received in the treasury

18-13 of the municipality and must remain on deposit.

18-14 © The board shall reimburse the municipality for any

18-15 costs, other than personnel costs, the municipality incurs for

18-16 performing the duties under this section.

18-17 Sec. 344.209. APPLICATIONS FOR PROGRAM FUNDING. (a) An

18-18 officer of the municipality that created the district or the head

18-19 of a department of that municipality may, with the consent of the

18-20 governing body of the municipality, apply to the board for funding

18-21 of a program described by Section 344.151.

18-22 ( The officer must apply under this section not later than

18-23 the 140th day before the date the fiscal year begins, unless the

18-24 board by rule has adopted an exception.

18-25 © The board by rule may adopt application procedures.

18-26 Sec. 344.210. BONDS PROHIBITED. The board may not issue or

18-27 sell general obligation bonds, revenue bonds, or refunding bonds.

19-1 (Sections 344.211-344.250 reserved for expansion

19-2 SUBCHAPTER F. REFERENDUM ON CONTINUATION OR DISSOLUTION OF DISTRICT

19-3 Sec. 344.251. REFERENDUM AUTHORIZED. (a) The board may

19-4 call and hold a referendum election on the question of whether to:

19-5 (1) continue the district; or

19-6 (2) dissolve the district.

19-7 ( A board may order a referendum election on its own

19-8 motion.

19-9 © The board shall order a referendum election:

19-10 (1) on receipt of a petition that requests

19-11 continuation or dissolution of the district and complies with the

19-12 requirements of Sections 344.252-344.256; or

19-13 (2) if the governing body of the municipality that

19-14 created the district, after notice and a public hearing on the

19-15 matter, by resolution requests a referendum on continuation or

19-16 dissolution.

19-17 (d) The board may not hold a referendum election under this

19-18 subchapter before the fifth anniversary of the date the district

19-19 was created or before the third anniversary of the date of the last

19-20 continuation or dissolution referendum election.

19-21 (e) For a continuation referendum election, the ballot shall

19-22 be printed to permit voting for or against the proposition:

19-23 " Whether the ____________ (name of the municipality that created

19-24 the district) Fire Control, Prevention, and Emergency Medical

19-25 Services District should be continued and whether the fire control,

19-26 prevention, and emergency medical services district sales and use

19-27 tax should be continued. "

20-1 (f) For a dissolution referendum, the ballot shall be

20-2 printed to permit voting for or against the proposition: " Whether

20-3 the ____________ (name of the municipality that created the

20-4 district) Fire Control, Prevention, and Emergency Medical Services

20-5 District should be dissolved and whether the fire control,

20-6 prevention, and emergency medical services district sales and use

20-7 tax should be abolished. "

20-8 (g) The governing body of a municipality that creates a

20-9 district under this chapter may specify the number of years for

20-10 which the district should be continued. The board or the governing

20-11 body of a municipality may continue a district for 5, 10, 15, or 20

20-12 years. For a continuation referendum election under this

20-13 subsection, the ballot shall be printed to permit voting for or

20-14 against the proposition: " Whether the ______ (name of the

20-15 municipality that created the district) Fire Control, Prevention,

20-16 and Emergency Medical Services District should be continued for

20-17 ______ years and whether the fire control, prevention, and

20-18 emergency medical services district sales and use tax should be

20-19 continued for _____ years. "

20-20 Sec. 344.252. APPLICATION FOR PETITION. (a) On written

20-21 application of 10 or more registered voters of the district, the

20-22 clerk of the municipality that created the district shall issue to

20-23 the applicants a petition to be circulated among registered voters

20-24 for their signatures.

20-25 ( An application for a petition to continue the district

20-26 must contain:

20-27 (1) the heading: " Application for a Petition for a

21-1 Local Option Referendum to Continue the Fire Control, Prevention,

21-2 and Emergency Medical Services District and to Continue the Fire

21-3 Control, Prevention, and Emergency Medical Services District Sales

21-4 and Use Tax " ;

21-5 (2) the statement: " Whether the ______ (name of the

21-6 municipality that created the district) Fire Control, Prevention,

21-7 and Emergency Medical Services District should be continued and

21-8 whether the fire control, prevention, and emergency medical

21-9 services district sales and use tax should be continued " ;

21-10 (3) immediately above the signatures of the

21-11 applicants, the statement: " It is the purpose and intent of the

21-12 applicants whose signatures appear below that the fire control,

21-13 prevention, and emergency medical services district be continued

21-14 and that the fire control, prevention, and emergency medical

21-15 services district sales and use tax in ___________ (name of the

21-16 municipality that created the district) be continued " ; and

21-17 (4) the printed name, signature, residence address,

21-18 and voter registration certificate number of each applicant.

21-19 © An application for a petition to dissolve the district

21-20 must contain:

21-21 (1) the heading: " Application for a Petition for a

21-22 Local Option Referendum to Dissolve the Fire Control, Prevention,

21-23 and Emergency Medical Services District and to Abolish the Fire

21-24 Control, Prevention, and Emergency Medical Services District Sales

21-25 and Use Tax " ;

21-26 (2) the statement: " Whether the ___________ (name of

21-27 the municipality that created the district) Fire Control,

22-1 Prevention, and Emergency Medical Services District should be

22-2 dissolved and whether the fire control, prevention, and emergency

22-3 medical services district sales and use tax should be abolished " ;

22-4 (3) immediately above the signatures of the

22-5 applicants, the statement: " It is the purpose and intent of the

22-6 applicants whose signatures appear below that the fire control,

22-7 prevention, and emergency medical services district be dissolved

22-8 and that the fire control, prevention, and emergency medical

22-9 services district sales and use tax in ___________ (name of the

22-10 municipality that created the district) be abolished " ; and

22-11 (4) the printed name, signature, residence address,

22-12 and voter registration certificate number of each applicant.

22-13 Sec. 344.253. PETITION. (a) A petition for a referendum to

22-14 continue a district must contain:

22-15 (1) the heading: " Petition for a Local Option

22-16 Referendum to Continue the ____________ (name of the municipality

22-17 that created the district) Fire Control, Prevention, and Emergency

22-18 Medical Services District and to Continue the Fire Control,

22-19 Prevention, and Emergency Medical Services District Sales and Use

22-20 Tax " ;

22-21 (2) a statement of the issue to be voted on in the

22-22 same words used in the application;

22-23 (3) immediately above the signatures of the

22-24 petitioners, the statement: " It is the purpose and intent of the

22-25 petitioners whose signatures appear below that the fire control,

22-26 prevention, and emergency medical services district be continued

22-27 and that the fire control, prevention, and emergency medical

23-1 services district sales and use tax in ___________ (name of the

23-2 municipality that created the district) be continued " ;

23-3 (4) lines and spaces for the names, signatures,

23-4 residence addresses, and voter registration certificate numbers of

23-5 the petitioners; and

23-6 (5) the date of issuance, the serial number, and the

23-7 seal of the clerk of the municipality on each page.

23-8 ( A petition for a referendum to dissolve a district must

23-9 contain:

23-10 (1) the heading: " Petition for a Local Option

23-11 Referendum to Dissolve the __________ (name of the municipality

23-12 that created the district) Fire Control, Prevention, and Emergency

23-13 Medical Services District and to Abolish the Fire Control,

23-14 Prevention, and Emergency Medical Services District Sales and Use

23-15 Tax " ;

23-16 (2) a statement of the issue to be voted on in the

23-17 same words used in the application;

23-18 (3) immediately above the signatures of the

23-19 petitioners, the statement: " It is the purpose and intent of the

23-20 petitioners whose signatures appear below that the fire control,

23-21 prevention, and emergency medical services district be dissolved

23-22 and that the fire control, prevention, and emergency medical

23-23 services district sales and use tax in ___________ (name of the

23-24 municipality that created the district) be abolished " ;

23-25 (4) lines and spaces for the names, signatures,

23-26 residence addresses, and voter registration certificate numbers of

23-27 the petitioners; and

24-1 (5) the date of issuance, the serial number, and the

24-2 seal of the clerk of the municipality on each page.

24-3 Sec. 344.254. COPIES OF APPLICATION AND PETITION. The clerk

24-4 or secretary of the municipality shall keep an application and a

24-5 copy of the petition in the files of the clerk's or secretary's

24-6 office. The clerk shall issue to the applicants as many copies as

24-7 they request.

24-8 Sec. 344.255. FILING OF PETITION. To form the basis for the

24-9 ordering of a referendum, the petition must:

24-10 (1) be filed with the clerk or secretary of the

24-11 municipality not later than the 60th day after the date of its

24-12 issuance; and

24-13 (2) contain at least a number of signatures of

24-14 registered voters of the municipality equal to five percent of the

24-15 number of votes cast in the municipality for all candidates for

24-16 governor in the most recent gubernatorial general election.

24-17 Sec. 344.256. REVIEW BY CLERK OR SECRETARY. (a) The clerk

24-18 or secretary of the municipality shall, on the request of any

24-19 person, check each name on a petition to determine whether the

24-20 signer is a registered voter of the district. A person requesting

24-21 verification by the clerk or secretary of the municipality shall

24-22 pay the clerk or secretary a sum equal to 20 cents for each name on

24-23 the petition before the verification begins.

24-24 ( The clerk or secretary of the municipality may not count

24-25 a signature if the clerk or secretary has a reason to believe that:

24-26 (1) it is not the actual signature of the purported

24-27 signer;

25-1 (2) the voter registration certificate number is not

25-2 correct;

25-3 (3) it is a duplication either of a name or of

25-4 handwriting used in any other signature on the petition;

25-5 (4) the residence address of the signer is not

25-6 correct; or

25-7 (5) the name of the voter is not signed exactly as it

25-8 appears on the official copy of the current list of registered

25-9 voters for the voting year in which the petition is issued.

25-10 Sec. 344.257. CERTIFICATION. Not later than the 40th day

25-11 after the date a petition is filed, excluding Saturdays, Sundays,

25-12 and legal holidays, the clerk or secretary of the municipality

25-13 shall certify to the board the number of registered voters signing

25-14 the petition.

25-15 Sec. 344.258. ELECTION ORDER. (a) The board shall record

25-16 on its minutes the date the petition is filed and the date it is

25-17 certified by the clerk or secretary of the municipality.

25-18 ( If the petition contains the required number of

25-19 signatures and is in proper order, the board shall, at its next

25-20 regular session after the certification by the clerk or secretary

25-21 of the municipality, order a referendum election to be held at the

25-22 regular polling place in each election precinct in the municipality

25-23 on the next uniform election date authorized by Section 41.001(a),

25-24 Election Code, that occurs at least 20 days after the date of the

25-25 order.

25-26 © The board shall state in the order the proposition to be

25-27 voted on in the referendum election. The order is prima facie

26-1 evidence of compliance with all provisions necessary to give it

26-2 validity.

26-3 Sec. 344.259. APPLICABILITY OF ELECTION CODE. A referendum

26-4 election authorized by this subchapter shall be held and the

26-5 returns shall be prepared and canvassed in conformity with the

26-6 Election Code.

26-7 Sec. 344.260. RESULTS OF REFERENDUM. (a) If less than a

26-8 majority of the votes cast in a continuation referendum election

26-9 are for the continuation of a district or if a majority of the

26-10 votes cast in a dissolution referendum are for dissolution of the

26-11 district:

26-12 (1) the board shall certify that fact to the secretary

26-13 of state not later than the 10th day after the date of the canvass

26-14 of the returns; and

26-15 (2) the district is dissolved and ceases to operate.

26-16 ( If a majority of the votes cast in a continuation

26-17 referendum election are for the continuation of the district or if

26-18 less than a majority of the votes cast in a dissolution referendum

26-19 election are for dissolution of the district, another referendum

26-20 may not be held except as authorized by Section 344.251.

26-21 Sec. 344.261. ELECTION CONTEST. Not later than the 30th day

26-22 after the date the result of a referendum is declared, any

26-23 qualified voter of the district may contest the election by filing

26-24 a petition in a district court located in the district.

26-25 (Sections 344.262-344.300 reserved for expansion

26-26 SUBCHAPTER G. DISTRICT DISSOLUTION

26-27 Sec. 344.301. TIME FOR DISSOLUTION OF DISTRICT. (a) A

27-1 district is dissolved five years after the date the municipality

27-2 began to impose taxes for district purposes if the district has not

27-3 held a continuation or dissolution referendum.

27-4 ( The district is dissolved on the fifth anniversary of

27-5 the date of the most recent continuation or dissolution referendum.

27-6 © Subsection ( does not apply to a district that is

27-7 continued under Section 344.251(g) of this chapter, and that

27-8 district is dissolved on the expiration of the period for which it

27-9 was continued.

27-10 Sec. 344.302. DISSOLUTION OF DISTRICT. (a) On the date

27-11 that the district is dissolved, the district shall convey or

27-12 transfer, as provided by Subsection (h):

27-13 (1) title to land, buildings, real and tangible

27-14 improvements, and equipment owned by the district;

27-15 (2) operating money and reserves for operating

27-16 expenses and money that has been budgeted by the district for the

27-17 remainder of the fiscal year in which the district is dissolved to

27-18 support fire control, prevention and emergency medical services

27-19 activities and programs for residents of the municipality that

27-20 created the district;

27-21 (3) taxes imposed for the district during the current

27-22 year for fire control, prevention, and emergency medical services

27-23 purposes;

27-24 (4) each fund established for payment of indebtedness

27-25 assumed by the district; and

27-26 (5) any money accumulated in an employee retirement

27-27 fund.

28-1 ( After the date the district is dissolved, taxes may not

28-2 be imposed for district purposes or for providing fire control,

28-3 prevention, and emergency medical services activities and programs

28-4 for the residents of the district.

28-5 © If on the date that the district is dissolved the

28-6 district has outstanding short-term or long-term liabilities, the

28-7 board shall, not later than the 30th day after the date of the

28-8 dissolution, adopt a resolution certifying each outstanding

28-9 short-term and long-term liability. The municipality that created

28-10 the district shall assume the outstanding short-term and long-term

28-11 liabilities. The municipality shall collect the sales and use tax

28-12 under Chapter 321, Tax Code, for the remainder of the calendar year

28-13 and may by resolution of its governing body continue to collect the

28-14 tax for an additional calendar year if the revenue from the tax is

28-15 needed to retire liabilities of the district that were assumed by

28-16 the municipality. The governing body shall notify the comptroller

28-17 of this continuation not later than the 60th day before the date

28-18 the tax would otherwise expire. A tax collected after the

28-19 liabilities have been retired shall be transferred or conveyed as

28-20 provided by Subsection (a).

28-21 (d) The district and the board may continue to operate for a

28-22 period not to exceed two months after carrying out the

28-23 responsibilities required by Subsections (a) and ©. The board

28-24 and the district are continued for the purpose of satisfying these

28-25 responsibilities.

28-26 (e) If the board and the district are continued under

28-27 Subsection (d), the board and district are dissolved entirely on

29-1 the first day of the month following the month in which the board

29-2 issues an order certifying to the secretary of state that the

29-3 responsibilities of Subsections (a) and © are satisfied.

29-4 (f) A district or board that continues to operate under

29-5 Subsection (d) may not incur any new liabilities without the

29-6 approval of the governing body of the municipality that created the

29-7 district. Not later than the 60th day after the date of the

29-8 dissolution referendum, the governing body shall review the

29-9 outstanding liabilities of the district and set a specific date by

29-10 which the municipality must retire the district's outstanding

29-11 liabilities.

29-12 (g) On the date that the district is dissolved, programs

29-13 funded by the district shall immediately terminate and personnel

29-14 paid from district funds, except personnel required to retire the

29-15 responsibilities of the district, are terminated.

29-16 (h) The board shall convey or transfer the value of the

29-17 items described by Subsection (a) to the municipality that created

29-18 the district.

29-19 SECTION 2. Subchapter B, Chapter 321, Tax Code, is amended

29-20 by adding Section 321.106 to read as follows:

29-21 Sec. 321.106. FIRE CONTROL DISTRICT TAX. (a) Subject to an

29-22 election held in accordance with Chapter 344, Local Government

29-23 Code, a municipality in which a fire control, prevention, and

29-24 emergency medical services district is established shall adopt a

29-25 sales and use tax in the area of the district for the purpose of

29-26 financing the operation of the fire control, prevention, and

29-27 emergency medical services district. The revenue from the tax may

30-1 be used only for the purpose of financing the operation of the fire

30-2 control, prevention, and emergency medical services district. The

30-3 proposition for adopting a tax under this section and the

30-4 proposition for creation of a fire control, prevention, and

30-5 emergency medical services district shall be submitted at the same

30-6 election. For purposes of Section 321.101, a tax under this

30-7 section is not an additional sales and use tax.

30-8 ( A tax adopted for a district under this section for

30-9 financing the operation of the district may be decreased in

30-10 increments of one-eighth of one percent by order of the board of

30-11 directors of the district.

30-12 © The rate of a tax adopted for a district under this

30-13 section may be increased in increments of one-eighth of one

30-14 percent, not to exceed a total tax rate of one-half percent, for

30-15 financing the operation of the fire control, prevention, and

30-16 emergency medical services district by order of the board of

30-17 directors of the fire control, prevention, and emergency medical

30-18 services district if approved by a majority of the qualified voters

30-19 voting at an election called by the board and held in the district

30-20 on the question of increasing the tax rate. At the election, the

30-21 ballot shall be printed to provide for voting for or against the

30-22 proposition: " The increase of the __________ (name of the

30-23 municipality that created the district) Fire Control, Prevention,

30-24 and Emergency Medical Services District sales and use tax rate to

30-25 ______ percent. " If there is an increase or decrease under this

30-26 section in the rate of a tax imposed under this section, the new

30-27 rate takes effect on the first day of the next calendar quarter

31-1 after the expiration of one calendar quarter after the comptroller

31-2 receives notice of the increase or decrease. However, if the

31-3 comptroller notifies the president of the board of directors of the

31-4 district in writing within 10 days after receipt of the

31-5 notification that the comptroller requires more time to implement

31-6 reporting and collection procedures, the comptroller may delay

31-7 implementation of the rate change for one calendar quarter, and the

31-8 new rate takes effect on the first day of the calendar quarter that

31-9 follows the elapsed quarter.

31-10 (d) The comptroller shall remit to the municipality amounts

31-11 collected at the rate imposed under this section as part of the

31-12 regular allocation of other municipal tax revenue collected by the

31-13 comptroller. The municipality shall remit that amount to the

31-14 district. A retailer may not be required to use allocation and

31-15 reporting procedures in the collection of taxes under this section

31-16 that are different from the procedures that retailers use in the

31-17 collection of other sales and use taxes under this chapter. An

31-18 item, transaction, or service that is taxable in a municipality

31-19 under a sales or use tax authorized by another section of this

31-20 chapter is taxable under this section. An item, transaction, or

31-21 service that is not taxable in a municipality under a sales or use

31-22 tax authorized by another section of this chapter is not taxable

31-23 under this section.

31-24 (e) If, in a municipality where a fire control, prevention,

31-25 and emergency medical services district is composed of the whole

31-26 municipality, a municipal sales and use tax or a municipal sales

31-27 and use tax rate increase for the purpose of financing a fire

32-1 control, prevention, and emergency medical services district is

32-2 approved, the municipality is responsible for distributing to the

32-3 district that portion of the municipal sales and use tax revenue

32-4 received from the comptroller that is to be used for the purposes

32-5 of financing the fire control, prevention, and emergency medical

32-6 services district. Not later than the 10th day after the date the

32-7 municipality receives money under this section from the

32-8 comptroller, the municipality shall make the distribution in the

32-9 proportion that the fire control, prevention, and emergency medical

32-10 services portion of the tax rate bears to the total sales and use

32-11 tax rate of the municipality. The amounts distributed to a fire

32-12 control, prevention, and emergency medical services district are

32-13 not considered to be sales and use tax revenue for the purpose of

32-14 property tax reduction and computation of the municipal tax rate

32-15 under Section 26.041, Tax Code.

32-16 (f) For purposes of the tax imposed under this section, a

32-17 reference in this chapter to the municipality as the territory in

32-18 which the tax or an incident of the tax applies means only the

32-19 territory located in the fire control, prevention, and emergency

32-20 medical services district, if that district is composed of an area

32-21 less than an entire municipality.

32-22 (g) The comptroller may adopt rules and the municipality's

32-23 governing body may adopt orders to administer this section.

32-24 SECTION 3. This Act takes effect June 1, 2001.