S.B. No. 628
 
 
 
 
AN ACT
  relating to the creation of regional emergency communications
  districts; authorizing the issuance of bonds; authorizing a fee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 772, Health and Safety Code, is amended
  by adding Subchapter G to read as follows:
  SUBCHAPTER G.  REGIONAL EMERGENCY COMMUNICATIONS DISTRICTS:  STATE
  PLANNING REGION WITH POPULATION OVER 1.5 MILLION
         Sec. 772.501.  SHORT TITLE. This subchapter may be cited as
  the Regional Emergency Communications District Act.
         Sec. 772.502.  DEFINITIONS. In this subchapter:
               (1)  "Board" means the board of managers of a district.
               (2)  "District" means a regional emergency
  communications district created under this subchapter.
               (3)  "Participating jurisdiction" means a county or
  principal municipality that adopts a resolution to participate in a
  district created under this subchapter.
               (4)  "Principal municipality" means the municipality
  with the largest population in a region.
               (5)  "Region" means a state planning region established
  under Chapter 391, Local Government Code.
               (6)  "Regional planning commission" means a commission
  or council of governments created under Chapter 391, Local
  Government Code, for a designated region.
         Sec. 772.503.  APPLICATION OF SUBCHAPTER. This subchapter
  applies to a region:
               (1)  with a population of more than 1.5 million;
               (2)  composed of counties and municipalities that
  operate a 9-1-1 system solely through a regional planning
  commission; and
               (3)  in which the governing bodies of each county and
  the principal municipality in the region adopt a resolution under
  Section 772.504 to participate in the district.
         Sec. 772.504.  CREATION OF DISTRICT. (a)  A district is
  created when the governing bodies of each county and the principal
  municipality in a region adopt a resolution approving the
  district's creation and the county's or municipality's
  participation in the district. The district's creation is
  effective on the date the last county or municipal governing body in
  the region adopts the resolution.
         (b)  The district shall file with the county clerk of each
  county in which the district is located a certificate declaring the
  creation of the district.
         Sec. 772.505.  POLITICAL SUBDIVISION; DISTRICT POWERS.
  (a)  A district is a political subdivision of this state created to
  carry out essential governmental functions.
         (b)  A district may exercise all powers necessary or
  convenient to carry out the purposes and provisions of this
  subchapter.
         Sec. 772.506.  TERRITORY OF DISTRICT. (a)  The territory of
  a district consists of:
               (1)  the territory of the region in which the district
  is established; and
               (2)  for each municipality partially located in the
  region, the territory of that municipality located in another
  region.
         (b)  If a municipality in the district annexes territory that
  is outside the boundaries of the district, the annexed territory
  becomes part of the district.
         Sec. 772.507.  BOARD. (a)  A district is governed by a board
  of managers composed of the members of the governing body of the
  regional planning commission for the region in which the district
  is established.  Service on the board by a member of the governing
  body is an additional duty of the member's office or employment.
         (b)  A board member serves without compensation. The
  district shall pay all reasonable expenses necessarily incurred by
  the board member in performing the board's functions under this
  subchapter.
         (c)  A majority of the voting members of the board
  constitutes a quorum.
         Sec. 772.508.  POWERS AND DUTIES OF BOARD. (a)  The board
  shall name, control, and manage the district.
         (b)  The board may adopt orders, rules, and policies
  governing the operations of the board and the district.
         (c)  The board may contract with any person to carry out the
  purposes of this subchapter.
         (d)  The board shall determine the nature and sources of
  funding for the district. The board may accept grants or other
  funding from the federal or state government, a county, a
  municipality, or a private person.
         (e)  The board may sue in the district's name.
         Sec. 772.509.  ADVISORY COMMITTEE. (a)  The board shall
  appoint an advisory committee consisting of representatives of the
  participating jurisdictions.  The advisory committee shall review,
  advise, and provide recommendations to the board on district
  issues, including equipment, training, budget, and general
  operational issues.
         (b)  An advisory committee member must have the training and
  experience necessary to perform the duties assigned by the board.
         (c)  Chapter 2110, Government Code, does not apply to the
  advisory committee.
         Sec. 772.510.  DIRECTOR OF DISTRICT; STAFF. (a)  The
  executive director of the regional planning commission in the
  district's region serves as director of the district.
         (b)  The director shall:
               (1)  perform all duties required by the board;
               (2)  ensure that board policies and procedures are
  implemented for the purposes of this subchapter; and
               (3)  assign employees of the regional planning
  commission to perform duties under this subchapter as necessary to
  carry out the district's operations.
         (c)  The director may use district money to compensate an
  employee assigned duties under this subchapter and the director.
         (d)  The director and an employee assigned duties under this
  subchapter are employees of the regional planning commission for
  all purposes.
         Sec. 772.511.  BUDGET; ANNUAL REPORT; AUDIT.  (a)  The
  director shall prepare, under the direction of the board, an annual
  budget for the district. The budget and any revision of the budget
  must be approved by the board.
         (b)  As soon as practicable after the end of each district
  fiscal year, the director shall prepare and present to the board a
  written report of all money received by the district and how the
  money was spent during the preceding fiscal year. The report must
  show, in detail, the operations of the district for the period
  covered by the report.
         (c)  The board annually shall have an independent financial
  audit made of the district.
         Sec. 772.512.  PROVISION OF 9-1-1 SERVICE. (a)  A district
  shall provide 9-1-1 service to each participating jurisdiction
  through one or a combination of the following methods and features
  or equivalent state-of-the-art technology:
               (1)  the transfer method;
               (2)  the relay method;
               (3)  the dispatch method;
               (4)  automatic number identification;
               (5)  automatic location identification; or
               (6)  selective routing.
         (b)  The district shall recommend minimum standards for a
  9-1-1 system. The 9-1-1 system must be computerized.
         (c)  For each individual telephone subscriber in the
  district, 9-1-1 service is mandatory and is not an optional service
  under any definition of terms relating to telephone service.
         Sec. 772.513.  LIABILITY.  A service supplier involved in
  providing 9-1-1 service, a manufacturer of equipment used in
  providing 9-1-1 service, or an officer or employee of a service
  supplier involved in providing 9-1-1 service may not be held liable
  for any claim, damage, or loss arising from the provision of 9-1-1
  service unless the act or omission proximately causing the claim,
  damage, or loss constitutes gross negligence, recklessness, or
  intentional misconduct.
         Sec. 772.514.  PRIMARY EMERGENCY TELEPHONE NUMBER. The
  digits 9-1-1 are the primary emergency telephone number in a
  district. A public safety agency whose services are available
  through a 9-1-1 system:
               (1)  may maintain a separate number for an emergency
  telephone call; and
               (2)  shall maintain a separate number for a
  nonemergency telephone call.
         Sec. 772.515.  TRANSMITTING REQUESTS FOR EMERGENCY AID.
  (a)  A 9-1-1 system established under this subchapter must be
  capable of transmitting requests for firefighting, law
  enforcement, ambulance, and medical services to a public safety
  agency that provides the requested service at the location from
  which the call originates. A 9-1-1 system may provide for
  transmitting requests for other emergency services, including
  poison control, suicide prevention, and civil defense.
         (b)  A public safety answering point may transmit emergency
  response requests to private safety entities.
         (c)  With the consent of a participating jurisdiction, a
  privately owned automatic intrusion alarm or other privately owned
  automatic alerting device may be installed to cause the number
  9-1-1 to be dialed to gain access to emergency services.
         Sec. 772.516.  9-1-1 EMERGENCY SERVICE FEE. (a)  The board
  may impose a 9-1-1 emergency service fee on service users in the
  district.
         (b)  The fee may be imposed only on the base rate charge or
  the charge's equivalent, excluding charges for coin-operated
  telephone equipment. The fee may not be imposed on:
               (1)  more than 100 local exchange access lines or the
  lines' equivalent for a single business entity at a single
  location, unless the lines are used by residents of the location; or
               (2)  any line that the Commission on State Emergency
  Communications has excluded from the definition of a local exchange
  access line or equivalent local exchange access line under Section
  771.063.
         (c)  If a business service user provides residential
  facilities, each line that terminates at a residential unit and is a
  communication link equivalent to a residential local exchange
  access line shall be charged the 9-1-1 emergency service fee. The
  fee must have uniform application throughout the district and be
  imposed in each participating jurisdiction in the district.
         (d)  The rate of the fee may not exceed six percent of the
  monthly base rate the principal service supplier in the
  participating jurisdiction charges a service user.
         (e)  The board shall set the amount of the fee each year as
  part of the annual budget. The board shall notify each service
  supplier of a change in the amount of the fee not later than the 91st
  day before the date the change takes effect.
         (f)  In imposing the fee, the board shall attempt to match
  the district's revenues to the district's operating expenditures
  and to provide reasonable reserves for contingencies and for the
  purchase and installation of 9-1-1 emergency service equipment. If
  the revenue received from the fee exceeds the amount of money needed
  to fund the district, the board by resolution shall reduce the rate
  of the fee to an amount adequate to fund the district as required by
  this subsection or suspend the imposition of the fee. If the board
  suspends the imposition of the fee, the board by resolution may
  reinstitute the fee if money received by the district is not
  adequate to fund the district.
         (g)  For a county or municipality whose governing body at a
  later date votes to receive 9-1-1 service from the district, the fee
  is imposed beginning on the date specified by the board. The board
  may charge the incoming county or municipality an additional amount
  of money to cover the initial cost of providing 9-1-1 service to
  that county or municipality. The fee authorized to be charged in a
  district applies to new territory added to the district under
  Section 772.506(b) when the territory becomes part of the district.
         Sec. 772.517.  COLLECTION OF FEE. (a)  Each billed service
  user is liable for the fee imposed under Section 772.516 until the
  fee is paid to the service supplier. The fee must be added to and
  stated separately in the service user's bill from the service
  supplier. The service supplier shall collect the fee at the same
  time as the service charge to the service user in accordance with
  the service supplier's regular billing practice. A business
  service user that provides residential facilities and owns or
  leases a publicly or privately owned telephone switch used to
  provide telephone service to facility residents shall collect the
  9-1-1 emergency service fee and transmit the fees monthly to the
  district.
         (b)  The amount collected by a service supplier from the fee
  is due quarterly. The service supplier shall remit the amount
  collected in a calendar quarter to the district not later than the
  60th day after the last day of the calendar quarter. With each
  payment, the service supplier shall file a return in a form
  prescribed by the board.
         (c)  Both a service supplier and a business service user
  under Subsection (a) shall maintain records of the amount of fees
  the service supplier or business service user collects until at
  least the second anniversary of the date of collection. The board
  may require, at the board's expense, an annual audit of the service
  supplier's or business service user's books and records with
  respect to the collection and remittance of the fees.
         (d)  A business service user that does not collect and remit
  the 9-1-1 emergency service fee as required is subject to a civil
  cause of action under Subsection (g). A sworn affidavit by the
  district specifying the unremitted fees is prima facie evidence
  that the fees were not remitted and of the amount of the unremitted
  fees.
         (e)  A service supplier may retain an administrative fee of
  two percent of the amount of fees the service supplier collects
  under this section.
         (f)  A service supplier is not required to take any legal
  action to enforce the collection of the 9-1-1 emergency service
  fee. The service supplier shall provide the district with an annual
  certificate of delinquency that includes the amount of all
  delinquent fees and the name and address of each nonpaying service
  user. The certificate of delinquency is prima facie evidence that a
  fee included in the certificate is delinquent and of the amount of
  the delinquent fee. A service user account is considered
  delinquent if the fee is not paid to the service supplier before the
  31st day after the payment due date stated on the user's bill from
  the service supplier.
         (g)  The district may file legal proceedings against a
  service user to collect fees not paid by the service user and may
  establish internal collection procedures and recover the cost of
  collection from the nonpaying service user. If legal proceedings
  are filed by the district, the court may award costs, attorney's
  fees, and interest to be paid by the nonpaying service user. A
  delinquent fee accrues interest at the legal rate beginning on the
  date the payment becomes due.
         Sec. 772.518.  DISTRICT DEPOSITORY. (a)  The board shall
  select a depository for the district in the manner provided by law
  for the selection of a county depository.
         (b)  A depository selected by the board is the district's
  depository until the second anniversary of the date of selection
  and until a successor depository is selected and qualified.
         Sec. 772.519.  ALLOWABLE EXPENSES. A district's allowable
  operating expenses include all costs attributable to designing a
  9-1-1 system and all equipment and personnel necessary to establish
  and operate a public safety answering point and other related
  operations that the board considers necessary.
         Sec. 772.520.  NUMBER AND LOCATION IDENTIFICATION. (a)  As
  part of computerized 9-1-1 service, a service supplier shall
  furnish, for each call, the telephone number of the subscriber and
  the address associated with the number.
         (b)  A business service user that provides residential
  facilities and owns or leases a publicly or privately owned
  telephone switch used to provide telephone service to facility
  residents shall provide to those residential end users the same
  level of 9-1-1 service that a service supplier is required to
  provide under Subsection (a) to other residential end users in the
  district.
         (c)  Information furnished under this section is
  confidential and is not available for public inspection.
         (d)  A service supplier or business service user under
  Subsection (b) may not be held liable to a person who uses a 9-1-1
  system created under this subchapter for the release to the
  district of the information specified in Subsections (a) and (b).
         Sec. 772.521.  PUBLIC REVIEW. (a)  Periodically, the board
  shall solicit public comments and hold a public review hearing on
  the continuation of the district and the 9-1-1 emergency service
  fee. The first hearing shall be held on or before the third
  anniversary of the date of the district's creation. Subsequent
  hearings shall be held on or before the third anniversary of the
  date each resolution required by Subsection (c) is adopted.
         (b)  The board shall publish notice of the time and place of a
  hearing once a week for two consecutive weeks in a daily newspaper
  of general circulation published in the district. The first notice
  must be published not later than the 16th day before the date set
  for the hearing.
         (c)  After the hearing, the board shall adopt a resolution on
  the continuation or dissolution of the district and the 9-1-1
  emergency service fee.
         Sec. 772.522.  DISSOLUTION PROCEDURES. (a)  If a district
  is dissolved, 9-1-1 service must be discontinued. The regional
  planning commission for the district's region shall assume the
  district's assets, provide 9-1-1 service, and pay the district's
  debts.  If the district's assets are insufficient to retire all
  existing debts of the district on the date of dissolution, the
  regional planning commission shall continue to impose the 9-1-1
  emergency service fee, and each service supplier shall continue to
  collect the fee for the regional planning commission. Proceeds
  from the imposition of the fee by the regional planning commission
  after dissolution of the district may be used only to retire the
  outstanding debts of the district.
         (b)  The regional planning commission shall retire the
  district's debts to the extent practicable according to the terms
  of the instruments creating the debts and the terms of the
  resolutions authorizing creation of the debts.
         (c)  The governing body of the regional planning commission
  for the district's region may adopt rules necessary to administer
  this section.
         Sec. 772.523.  ISSUANCE OF BONDS. The board may issue bonds
  in the name of the district to finance:
               (1)  the acquisition by any method of facilities,
  equipment, or supplies necessary for the district to provide 9-1-1
  service to each participating jurisdiction; or
               (2)  the installation of equipment necessary for the
  district to provide 9-1-1 service to each participating
  jurisdiction.
         Sec. 772.524.  REPAYMENT OF BONDS. The board may provide for
  the payment of principal of and interest on district bonds by
  pledging all or part of the district's revenues from the 9-1-1
  emergency service fee or from other sources.
         Sec. 772.525.  ADDITIONAL SECURITY FOR BONDS. (a)  District
  bonds may be additionally secured by a deed of trust or mortgage
  lien on all or part of the district's physical properties and rights
  appurtenant to the properties, vesting in the trustee power to sell
  the properties for payment of the indebtedness, power to operate
  the properties, and any other power necessary for the further
  security of the bonds.
         (b)  The bond trust indenture, regardless of the existence of
  a deed of trust or mortgage lien on the properties, may:
               (1)  contain provisions prescribed by the board for the
  security of the bonds and the preservation of the trust estate; and
               (2)  make provisions for:
                     (A)  amendment or modification; and
                     (B)  investment of district funds.
         (c)  A purchaser under a sale under the deed of trust or
  mortgage lien is the absolute owner of the properties and rights
  purchased and may maintain and operate the properties.
         Sec. 772.526.  FORM OF BONDS. (a)  A district may issue
  bonds in various series or issues.
         (b)  Bonds may mature serially or otherwise not more than 25
  years after the bonds' date of issuance. Bonds shall bear interest
  at any rate permitted by state law.
         (c)  A district's bonds and interest coupons:
               (1)  are investment securities under Chapter 8,
  Business & Commerce Code;
               (2)  may be issued registrable as to principal or to
  both principal and interest; and
               (3)  may be made redeemable before maturity or contain
  a mandatory redemption provision at the option of the district.
         (d)  A district may issue bonds in the form, denomination,
  and manner and under the terms and conditions provided by the board
  in the resolution authorizing the bonds' issuance. The bonds must
  be signed and executed as provided by the board in the resolution.
         Sec. 772.527.  PROVISIONS OF BONDS. (a)  In this section,
  "resolution" means a board resolution authorizing the issuance of
  bonds, including refunding bonds.
         (b)  In a resolution, the board may:
               (1)  provide for the flow of funds and the
  establishment and maintenance of an interest and sinking fund,
  reserve fund, or other fund; and
               (2)  make additional covenants with respect to the
  bonds, the pledged revenues, and the operation and maintenance of
  any facilities the revenue of which is pledged.
         (c)  A resolution may:
               (1)  prohibit the further issuance of bonds or other
  obligations payable from the pledged revenue; or
               (2)  reserve the right to issue additional bonds to be
  secured by a pledge of and payable from the revenue on a parity with
  or subordinate to the lien and pledge in support of the bonds being
  issued.
         (d)  A resolution may contain other provisions and covenants
  determined by the board.
         (e)  The board may adopt and have executed any other
  proceedings or instruments necessary or convenient for issuance of
  bonds.
         Sec. 772.528.  APPROVAL AND REGISTRATION OF BONDS.
  (a)  Bonds issued by a district must be submitted to the attorney
  general for examination.
         (b)  If the attorney general finds that the bonds have been
  authorized in accordance with law, the attorney general shall
  approve the bonds. On approval by the attorney general, the
  comptroller shall register the bonds.
         (c)  After approval and registration, the bonds are
  incontestable in any court or other forum for any reason and are
  valid and binding obligations in accordance with the bonds' terms
  for all purposes.
         Sec. 772.529.  REFUNDING BONDS. (a)  A district may issue
  bonds to refund all or any part of the district's outstanding bonds,
  including matured and unpaid interest coupons.
         (b)  Refunding bonds shall mature serially or otherwise, as
  determined by the board, not more than 25 years after the bonds'
  date of issuance. Bonds shall bear interest at any rate permitted
  by state law.
         (c)  Refunding bonds may be payable from the same source as
  the bonds being refunded or from other sources.
         (d)  Refunding bonds must be approved by the attorney general
  in the same manner as the district's other bonds. The comptroller
  shall register the refunding bonds on the surrender and
  cancellation of the bonds being refunded.
         (e)  A resolution authorizing the issuance of refunding
  bonds may provide that the bonds be sold and the proceeds deposited
  in a place at which the bonds being refunded are payable, in which
  case the refunding bonds may be issued before the cancellation of
  the bonds being refunded. If refunding bonds are issued before
  cancellation of the other bonds, an amount sufficient to pay the
  principal of the bonds being refunded and interest on those bonds
  accruing to the bonds' maturity dates or option dates, if the bonds
  have been duly called for payment before maturity according to the
  bonds' terms, must be deposited in the place at which the bonds
  being refunded are payable. The comptroller shall register the
  refunding bonds without the surrender and cancellation of the bonds
  being refunded.
         (f)  A refunding may be accomplished in one or more
  installment deliveries. Refunding bonds and the bonds' interest
  coupons are investment securities under Chapter 8, Business &
  Commerce Code.
         (g)  Instead of the method set forth in Subsections (a)-(f),
  a district may refund bonds, notes, or other obligations as
  provided by the general laws of this state.
         Sec. 772.530.  BONDS AS INVESTMENTS AND SECURITY FOR
  DEPOSITS. (a)  District bonds are legal and authorized investments
  for:
               (1)  a bank;
               (2)  a savings bank;
               (3)  a credit union;
               (4)  a trust company;
               (5)  a savings and loan association;
               (6)  an insurance company;
               (7)  a fiduciary;
               (8)  a trustee;
               (9)  a guardian; and
               (10)  a sinking fund of a municipality, county, school
  district, special district, and other political subdivision of this
  state and other public funds of this state and state agencies,
  including the permanent school fund.
         (b)  District bonds may secure deposits of public funds of
  the state or a municipality, county, school district, or other
  political subdivision of this state. The bonds are lawful and
  sufficient security for deposits to the extent of the bonds' value
  if accompanied by all unmatured coupons.
         (c)  District bonds are authorized investments under Chapter
  2256, Government Code.
         Sec. 772.531.  EXEMPTION FROM TAXATION. A bond issued by the
  district under this subchapter, any transaction relating to the
  bond, and profits made in the sale or redemption of the bond are
  exempt from taxation by the state or by any municipality, county,
  special district, or other political subdivision of this state.
         Sec. 772.532.  TRANSFER OF ASSETS. If a regional emergency
  communications district is established under this subchapter, the
  regional planning commission for the region in which the district
  is established may transfer to the district any land, buildings,
  improvements, equipment, and other assets acquired by the regional
  planning commission in relation to the provision of 9-1-1 service.
         SECTION 2.  Subdivision (3), Section 771.001, Health and
  Safety Code, is amended to read as follows:
               (3)  "Emergency communication district" means:
                     (A)  a public agency or group of public agencies
  acting jointly that provided 9-1-1 service before September 1,
  1987, or that had voted or contracted before that date to provide
  that service; or
                     (B)  a district created under Subchapter B, C, D,
  [or] F, or G, Chapter 772.
         SECTION 3.  This Act takes effect September 1, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 628 passed the Senate on
  May 7, 2013, by the following vote:  Yeas 28, Nays 1.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 628 passed the House on
  May 21, 2013, by the following vote:  Yeas 104, Nays 41, three
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor