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  S.B. No. 917
 
 
 
 
AN ACT
  relating to emergency service districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 775.018, Health and Safety Code, is
  amended by adding Subsections (f) and (g) to read as follows:
         (f)  If the territory of a district proposed under this
  chapter overlaps with the boundaries of another district created
  under this chapter, the commissioners court of each county in which
  the proposed district is located shall send to the board of the
  existing district a copy of the petition for creation of the
  proposed district. This subsection does not apply to a proposed
  district located wholly in a county with a population of more than
  three million.
         (g)  The board of the existing district shall adopt a
  statement before the date of the election required by this section
  that specifies the types of emergency services the existing
  district will provide or continue to provide in the overlapping
  territory if the proposed district is created. This subsection
  does not apply to a proposed district located wholly in a county
  with a population of more than three million.
         SECTION 2.  Section 775.0205, Health and Safety Code, is
  amended by amending Subsection (a) and adding Subsections (d-1),
  (d-2), and (d-3) to read as follows:
         (a)  If the territory in a district created under this
  chapter overlaps with the boundaries of another district created
  under this chapter [or a district created under Chapter 776], the
  most recently created district may not provide services in the
  overlapping territory that duplicate the services described in the
  statement required by Section 775.018(g) [provided by the other
  district at the time the overlapping district was created].
         (d-1)  The legislature finds that the performance of
  non-duplicative emergency services in the overlapping territory of
  emergency service districts is complementary to and not in conflict
  with the powers and duties of the respective districts.
         (d-2)  A person may serve as an emergency services
  commissioner of a district created under this chapter at the same
  time that the person serves as an emergency services commissioner
  of another district with overlapping territory created under this
  chapter.
         (d-3)  A person serving as a commissioner of more than one
  district under this section:
               (1)  may receive compensation for serving on only one
  board; and
               (2)  is entitled to reimbursement for reasonable and
  necessary expenses incurred in performing official duties for both
  boards.
         SECTION 3.  Section 775.024, Health and Safety Code, is
  amended to read as follows:
         Sec. 775.024.  CONSOLIDATION [MERGER] OF EMERGENCY SERVICES
  DISTRICTS. (a)  Two or more emergency services districts may
  consolidate [merge] into a single emergency services district as
  provided by this section. Before consolidating, [if:
               [(1)]  the board of each district must:
               (1)  determine that consolidation would allow the
  districts to provide services more economically and efficiently [of
  the districts votes in favor of the merger]; and
               (2)  adopt a joint order of consolidation that
  includes:
                     (A)  the name and proposed territory of the
  consolidated district;
                     (B)  the proposed date on which the existing
  districts dissolve and the consolidated district is created and
  will start offering services;
                     (C)  if the maximum ad valorem tax rates in the
  districts are different, a statement that the districts will
  consolidate only if voters approve an equalized ad valorem tax rate
  at the election required by Section 775.0241; and
                     (D)  a statement that the district will be
  consolidated only if the residents of the district and the
  residents of at least one other district approve the consolidation
  [the residents of each district approve the merger] in an election
  held for that purpose.
         (b)  The boards shall agree on a name for the proposed
  consolidated [merged] district and choose five commissioners from
  among the membership of the boards to serve on the initial board for
  the proposed district. The boards shall agree to stagger the terms
  appropriately.
         (c)  If the boards do not make the appointments before the
  31st day after the date the boards adopted the joint order:
               (1)  for a consolidated district to which Section
  775.0345 or 775.035 does not apply, the commissioners court shall
  appoint five commissioners to the board of the consolidated
  district; or
               (2)  for a consolidated district to which Section
  775.0345 or 775.035 does apply, the board of the consolidated
  district is initially composed of the two commissioners from each
  existing board who have served the longest terms.
         (c-1)  The number of initial emergency services
  commissioners on a board described by Subsection (c)(2) is not
  required to be five.
         (d)  The ballot for the election to approve a consolidation
  [merger] shall be printed to permit voting for or against the
  proposition: "The consolidation [merger] of the _________ (insert
  district names) to create the _______________ (insert name of
  proposed district), which assumes all outstanding debts of the
  existing [merged] districts." The ballot shall include a
  proposition for an election required under Section 775.0241, if
  applicable.
         (e) [(d)]  If a majority of the voters voting in at least two
  of the districts proposed to be consolidated [each district] favor
  the consolidation [merger], the consolidated [merged] district is
  created and is composed of the districts that favored the
  consolidation. If less than a majority of the voters voting in any
  of the districts are in favor of the consolidation [merger], that
  district is not part of any consolidated district [the vote fails
  and the districts are not merged].
         (f)  The consolidated district is created on the latest of:
               (1)  the date stated in the joint order;
               (2)  the date the consolidation is approved in an
  election described by Subsection (d); or
               (3)  the date the maximum ad valorem tax rate the
  consolidated district may impose under Section 775.0241 is
  established, if necessary.
         (g)  [(e)     The maximum tax rate that may be imposed by the
  merged district may not exceed the maximum tax rate authorized for
  any of the previous districts.
         [(f)]  The consolidated [merged] district assumes all
  powers, rights, duties, assets, and liabilities of the former
  districts without a change in status. The consolidation [merger]
  does not diminish or impair the rights of the holders of any
  outstanding and unpaid bonds, warrants, or obligations of the
  district.
         (h)  For a consolidated district to which Section 775.0345 or
  775.035 applies, the initial commissioners of the consolidated
  district serve until the next available uniform election date after
  the date the joint order is adopted and that allows sufficient time
  to comply with other requirements of law.  After an election is held
  under Section 775.0345 or 775.035:
               (1)  the two commissioners who receive the fewest votes
  of the elected commissioners serve terms ending on December 31 of
  the second year following the year in which the election is held;
  and
               (2)  the remaining elected commissioners serve terms
  ending on December 31 of the fourth year following the year in which
  the election is held.
         SECTION 4.  Subchapter B, Chapter 775, Health and Safety
  Code, is amended by adding Section 775.0241 to read as follows:
         Sec. 775.0241.  TAXES FOR CONSOLIDATED DISTRICT. (a)  If
  two districts that want to consolidate under Section 775.024 have
  different maximum ad valorem tax rates, the board of the district
  with the lower maximum ad valorem tax rate shall order an election
  in its district under Section 775.0745 to authorize the imposition
  of taxes in the territory of that district at a maximum rate that
  equals the maximum rate authorized in the district with the higher
  maximum rate.
         (b)  If a majority of the voters do not favor the increase in
  the maximum ad valorem tax rate under Subsection (a), the districts
  may not proceed with the consolidation.
         (c)  If the districts have different sales and use tax rates,
  the board of the consolidated district shall:
               (1)  designate the territory of the former districts as
  subdistricts;
               (2)  continue to impose the sales and use tax in each
  subdistrict at the rate the tax was imposed by the former district;
  and
               (3)  send to the comptroller by registered or certified
  mail:
                     (A)  a copy of the joint order described by
  Section 775.024(a)(2); and
                     (B)  a map of the consolidated district that
  clearly shows the territory of each subdistrict.
         (d)  Subsection (c) does not limit the authority of the board
  of the consolidated district to order an election under Section
  775.0752 in a subdistrict or in the entire district.
         SECTION 5.  Subchapter C, Chapter 775, Health and Safety
  Code, is amended by adding Sections 775.0362 and 775.0363 to read as
  follows:
         Sec. 775.0362.  LIMIT ON REGULATION OF FIREWORKS.  Except as
  provided by Section 775.0363, the district may not regulate the
  sale, use, or transportation of fireworks.
         Sec. 775.0363.  REGULATION OF FIREWORKS.  The district may
  adopt a rule relating to fireworks that is the same as or less
  stringent than a rule adopted or enforced by the commissioner of
  insurance and the state fire marshal under Chapter 2154,
  Occupations Code, relating to retail fireworks stands, fireworks
  bulk manufacturing and storage facilities, fireworks sales
  buildings, or any other structure used in public pyrotechnic
  displays to which the rules adopted under Chapter 2154, Occupations
  Code, apply.
         SECTION 6.  Subchapter C, Chapter 775, Health and Safety
  Code, is amended by adding Sections 775.0365 and 775.0366 to read as
  follows:
         Sec. 775.0365.  BOARD TRAINING. (a)  An emergency services
  commissioner shall complete at least six hours of continuing
  education relating to the performance of the duties of an emergency
  services commissioner at least once in a two-year period.
         (b)  Continuing education instruction required by Subsection
  (a) must be certified by an institution of higher education as
  defined by Section 61.003, Education Code.
         (c)  For purposes of Subsection (a), an emergency services
  commissioner may carry forward from one two-year period to the next
  two-year period not more than three continuing education hours that
  the commissioner completes in excess of the required six hours.
         (d)  For purposes of removal under Section 775.0422 or
  775.0423, "incompetency" includes the failure of an emergency
  services commissioner to comply with Subsection (a).
         Sec. 775.0366.  SERVICE CONTRACTS. (a)  In this section,
  "local government" has the meaning assigned by Section 791.003,
  Government Code.
         (b)  The board may contract with a local government,
  including another district, to provide staff, facilities,
  equipment, programs, or services the board considers necessary to
  provide or obtain emergency services that the district or the local
  government is authorized to provide.
         (c)  A person acting under a contract under this section,
  including an emergency services commissioner, does not, because of
  that action, hold more than one civil office of emolument or more
  than one office of honor, trust, or profit.
         (d)  Except as provided by Subsection (e), if a district
  contracts with a local government under this section to provide or
  obtain emergency services, the district is responsible for any
  civil liability that arises from furnishing those services if the
  district would have been responsible for furnishing the services in
  the absence of the contract.
         (e)  The parties to a contract between governmental entities
  under this section may agree to assign responsibility for civil
  liability that arises from services provided under the contract in
  any manner agreed to by the parties. The parties must assign that
  responsibility in a written provision of the contract that
  specifically refers to this subsection and states that the
  assignment of liability is intended to be different from liability
  otherwise assigned under Subsection (d).
         (f)  This section does not change the liability limits and
  immunities for a governmental unit under Chapter 101, Civil
  Practice and Remedies Code, or other law.
         (g)  A contract under this section is not a joint enterprise
  for liability purposes.
         SECTION 7.  The heading to Section 775.0422, Health and
  Safety Code, is amended to read as follows:
         Sec. 775.0422.  REMOVAL OF APPOINTED BOARD MEMBER BY
  COMMISSIONERS COURT [FOR FAILURE TO GIVE REPORT].
         SECTION 8.  Section 775.0422, Health and Safety Code, is
  amended by amending Subsections (a), (b), and (c) and adding
  Subsections (a-1) and (b-1) to read as follows:
         (a)  This section does not apply to a district unless the
  commissioners court of the county in which the district is located
  adopts this section by resolution.
         (a-1)  This section applies only to an appointed board
  member.  This section does not apply to a board member who:
               (1)  is elected; or
               (2)  is appointed to fill a vacancy in an elected board
  member position.
         (b)  The commissioners court of the county in which a
  district is located, by an order adopted by a majority vote after a
  hearing, may remove a [one or more] board member for:
               (1)  incompetency, as defined by Section 87.011, Local
  Government Code;
               (2)  official misconduct, as defined by Section 87.011,
  Local Government Code; or
               (3)  misconduct, as defined by Section 178.001, Local
  Government Code [members if the board failed to give the report
  required by Section 775.036(a)(4) to the commissioners court before
  the 91st day after the date on which the report was due under that
  section].
         (b-1)  Section 551.0745, Government Code, applies to a
  deliberation regarding a removal of a board member in the same
  manner as that section applies to a deliberation regarding a
  dismissal of a member of an advisory body.
         (c)  Not later than [Before] the 30th [60th] day before
  [after] the date on which the hearing is held, a [report was due,
  each] commissioners court seeking removal under this section must:
               (1)  notify the board members that it is considering
  that action; and
               (2)  provide the board member with an opportunity to
  show cause why the board member should not be removed.
         SECTION 9.  Subchapter C, Chapter 775, Health and Safety
  Code, is amended by adding Section 775.0423 to read as follows:
         Sec. 775.0423.  REMOVAL OF ELECTED BOARD MEMBER. (a)  This
  section applies only to a board member who:
               (1)  is elected; or
               (2)  is appointed to fill a vacancy in an elected board
  member position.
         (b)  A board member may be removed using the procedures
  provided by Chapter 87, Local Government Code, for:
               (1)  incompetency, as defined by Section 87.011, Local
  Government Code;
               (2)  official misconduct, as defined by Section 87.011,
  Local Government Code;
               (3)  intoxication, as described by Section 87.013,
  Local Government Code; or
               (4)  misconduct, as defined by Section 178.001, Local
  Government Code.
         (c)  The validity of a board action is not affected because
  it is taken when a ground for removal of a board member exists.
         SECTION 10.  Subsection (a), Section 775.056, Health and
  Safety Code, is amended to read as follows:
         (a)  After a hearing, a district may make mutually agreeable
  changes in boundaries with another district, [or a district created
  under Chapter 776,] provided that the maximum tax rate authorized
  for such a district does not exceed the maximum tax rate previously
  authorized for any territory added to that district. The districts
  shall agree on an effective date for the changes in boundaries.
         SECTION 11.  Section 775.074, Health and Safety Code, is
  amended by adding Subsection (d-1) to read as follows:
         (d-1)  The board may not set the tax rate for a fiscal year
  before the date the board adopts a budget for that fiscal year.
         SECTION 12.  Section 775.082, Health and Safety Code, is
  amended by adding Subsection (e-1) to read as follows:
         (e-1)  When a district located wholly in one county fails to
  complete and file the audit report by September 1 of each year and a
  county auditor is not ordered to prepare the report, the president
  and treasurer of the board are removed from the board and the
  commissioners court shall fill the vacancies as provided by Section
  775.034.
         SECTION 13.  Section 775.085, Health and Safety Code, is
  amended by adding Subsection (d) to read as follows:
         (d)  Section 775.077 does not apply to a loan secured under
  this section, including a loan made before the effective date of
  this subsection.
         SECTION 14.  Subsection (c), Section 344.051, Local
  Government Code, is amended to read as follows:
         (c)  Except as provided by Subsection (f), a district may be
  created inside the boundaries of an emergency services district
  operating under Chapter 775 [or 776], Health and Safety Code, only
  if the governing body of the emergency services district gives its
  written consent by order or resolution not later than the 60th day
  after the date the governing body receives a request for its
  consent.
         SECTION 15.  Subsection (f), Section 323.101, Tax Code, is
  amended to read as follows:
         (f)  The provisions of this chapter govern the application,
  collection, and administration of a sales and use tax imposed under
  Chapter 285 or[,] 775, [or 776,] Health and Safety Code, to the
  extent not inconsistent with the provisions of those chapters.
  Provided, however, that Subsection (b) shall not apply to a tax
  authorized under those chapters.
         SECTION 16.  Chapter 776, Health and Safety Code, is
  repealed.
         SECTION 17.  (a)  On the effective date of this Act, a
  district created under Chapter 776, Health and Safety Code, is
  converted into a district operated under Chapter 775, Health and
  Safety Code. A district converted under this section continues in
  existence and is subject to Chapter 775, Health and Safety Code.
         (b)  An emergency commissioner of a district created under
  Chapter 776, Health and Safety Code, is an emergency services
  commissioner of the converted district under Chapter 775, Health
  and Safety Code, and shall serve on the board of the converted
  district as an emergency services commissioner until the term for
  which the commissioner was appointed or elected expires.
         SECTION 18.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2011.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 917 passed the Senate on
  April 14, 2011, by the following vote: Yeas 30, Nays 0; and that
  the Senate concurred in House amendment on May 25, 2011, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 917 passed the House, with
  amendment, on May 23, 2011, by the following vote: Yeas 142,
  Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor