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AN ACT
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relating to the removal, transfer, or exclusion of territory in |
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emergency services districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 775, Health and Safety Code, is amended |
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by adding Subchapter H to read as follows: |
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SUBCHAPTER H. CHANGE IN BOUNDARIES OF DISTRICT WITH PLANNED |
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COMMUNITY |
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Sec. 775.201. DEFINITION. In this subchapter, "planned |
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community" means a planned community of 25,000 or more acres of land |
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originally established under the Urban Growth and New Community |
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Development Act of 1970 (42 U.S.C. Section 4501 et seq.) that is: |
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(1) located wholly or partly in a county with a |
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population of 2.8 million or more; and |
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(2) subject to restrictive covenants containing ad |
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valorem or annual variable budget-based assessments on real |
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property for use in part to finance services of the same general |
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type provided by the district. |
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Sec. 775.202. AGREEMENT ON BOUNDARIES WITH PROPERTY OWNERS |
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IN PLANNED COMMUNITY. (a) After a hearing, a district located |
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wholly in a county with a population of 2.8 million or more may |
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exclude territory by making changes in the district's boundaries in |
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accordance with an agreement among the district and the owners of |
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two-thirds or more in acreage and two-thirds or more in taxable |
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value, according to the most recent certified county property tax |
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rolls, of a defined area of territory of a planned community. |
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(b) The agreement must be in writing and describe: |
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(1) the affected territory by metes and bounds, |
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including the changes in the boundaries to be made; |
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(2) the amount of any compensation to be paid to the |
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district under Section 775.205; |
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(3) the effective date for the changes in boundaries; |
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and |
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(4) any other applicable terms. |
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Sec. 775.203. NOTICE OF HEARING. (a) The board secretary |
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shall give notice of the hearing. |
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(b) The notice must contain the time and place for the |
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hearing and a description of the territory proposed to be excluded. |
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(c) The secretary shall: |
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(1) post copies of the notice for at least 15 days |
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before the date of the hearing in three public places in the |
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district, one of which must be in the territory proposed to be |
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excluded; and |
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(2) not later than the 16th day before the date on |
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which the hearing is held, publish the notice once in a newspaper of |
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general circulation in each county in which the excluded territory |
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is located. |
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Sec. 775.204. ADOPTION OF AGREEMENT AND APPROVAL OF |
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EXCLUSION. After the hearing, if the board finds that the exclusion |
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of the territory would be feasible and would benefit the district, |
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the board shall by a resolution entered in its minutes: |
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(1) adopt the agreement; and |
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(2) approve the exclusion. |
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Sec. 775.205. EFFECT OF ADOPTION OF AGREEMENT AND APPROVAL |
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OF EXCLUSION. (a) After adoption and approval under Section |
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775.204, the district's tax on the property in the excluded |
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territory continues until all agreed compensation has been paid in |
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full. |
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(b) The district shall apply the compensation received |
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under this section toward the payment of the obligations described |
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by Subsection (c). |
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(c) The agreement must provide for the excluded territory to |
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compensate the district in an amount equal to the excluded |
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territory's pro rata share of the outstanding and unpaid bonds, |
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warrants, or other direct and indirect obligations, including loans |
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and lease-purchase agreements and written funding assistance |
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agreements of the district and any not-for-profit fire departments |
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and ambulance agencies or associations, for the financing and |
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payment for firefighting, emergency medical service and emergency |
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rescue equipment, fire and ambulance stations, or similar long-term |
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capital assets to serve the district. |
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(d) The excluded territory's pro rata share is the unpaid |
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principal balances of the outstanding loans and other obligations |
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enumerated by Subsection (c) multiplied by a fraction, the |
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numerator of which is the taxable value of the property in the |
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excluded territory and the denominator of which is the taxable |
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value of the entire district, including the excluded territory. The |
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taxable value calculated under this subsection for property in the |
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excluded territory, including as part of the entire district, does |
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not include any special appraisal or exemptions for the property. |
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(e) The agreement to compensate the district does not |
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include the following expenses incurred by the district after the |
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boundaries change: |
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(1) expenses for district operations and maintenance; |
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and |
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(2) expenses for district services. |
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(f) The agreement to compensate the district is required |
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regardless of whether the loans and other obligations are subject |
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to non-appropriation by the district or termination by either party |
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before payment in full of the unpaid principal balance. |
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Sec. 775.206. NO EFFECT ON OUTSTANDING OBLIGATIONS. A |
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change in boundaries under this subchapter does not diminish or |
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impair the rights of the holders of any outstanding and unpaid |
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bonds, warrants, or other district obligations. |
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SECTION 2. Section 776.052(a), Health and Safety Code, is |
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amended to read as follows: |
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(a) If territory in a municipality's limits [or
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extraterritorial jurisdiction] is included in a district, the |
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municipality's governing body may remove that territory from the |
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district if: |
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(1) the municipality agrees to provide emergency |
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protection to the territory as prescribed by Section 776.014; or |
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(2) the territory is designated an industrial district |
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under Section 42.044, Local Government Code. |
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SECTION 3. The change in law made by this Act applies only |
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to a removal of territory that occurs, or a change in boundaries |
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agreed to, on or after the effective date of this Act. A removal of |
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territory that occurs, or a change in boundaries agreed to, before |
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the effective date of this Act is governed by the law in effect on |
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the date the territory is removed, and that law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 492 was passed by the House on April |
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13, 2007, by the following vote: Yeas 143, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 492 on May 24, 2007, by the following vote: Yeas 143, Nays 0, 2 |
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present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 492 was passed by the Senate, with |
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amendments, on May 22, 2007, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |