CHAPTER 776. EMERGENCY SERVICES DISTRICTS IN COUNTIES OF 125,000 OR LESS

State Codes and Statutes

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HEALTH AND SAFETY CODE

TITLE 9. SAFETY

SUBTITLE B. EMERGENCIES

CHAPTER 776. EMERGENCY SERVICES DISTRICTS IN COUNTIES OF 125,000

OR LESS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 776.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of emergency commissioners.

(2) "District" means an emergency services district created

under this chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.002. LIBERAL CONSTRUCTION. This chapter and a

proceeding under this chapter shall be liberally construed to

achieve the purposes of this chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.003. AUTHORIZATION. In a county with a population of

125,000 or less, an emergency services district may be organized

as provided by Article III, Section 48-e, of the Texas

Constitution, as proposed by S.J.R. No. 27, Acts of the 70th

Legislature, Regular Session, 1987, and adopted by the voters at

an election held November 3, 1987, and by this chapter to protect

life and property and to conserve natural and human resources.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER B. CREATION OF DISTRICT

Sec. 776.011. PETITION FOR CREATION OF DISTRICT LOCATED WHOLLY

IN ONE COUNTY. (a) To create a district located wholly in one

county, a petition signed by at least 100 qualified voters who

own taxable real property in the proposed district must be filed

with the county judge of that county. If there are fewer than 100

of those voters, the petition must be signed by a majority of

those voters.

(b) The name of the district proposed by the petition must be

"____________ County Emergency Services District No. __________,"

with the name of the county and the proper consecutive number

inserted.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.012. PETITION FOR CREATION OF DISTRICT LOCATED IN MORE

THAN ONE COUNTY. (a) To create a district that contains

territory located in more than one county, a petition must be

filed with the county judge of each county in which the proposed

district will be located. The petition must be signed by at least

100 qualified voters who own taxable real property that is

located in the county in which that judge presides and in the

proposed district. If there are fewer than 100 of those voters in

a county, the petition must be signed by a majority of those

voters in that county.

(b) The name of the district proposed by the petition must be

"____________ Emergency Services District."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.013. CONTENTS OF PETITION. The petition for the

creation of a district must show:

(1) that the district is to be created and is to operate under

Article III, Section 48-e, Texas Constitution;

(2) the name of the proposed district;

(3) the proposed district's boundaries as designated by metes

and bounds or other sufficient legal description;

(4) the services that the proposed district will provide;

(5) that the creation of the proposed district complies with

Section 776.021;

(6) the mailing address of each petitioner; and

(7) an agreement signed by at least two petitioners that

obligates them to pay not more than $150 of the costs incident to

the formation of the district, including the costs of publishing

notices, election costs, and other necessary and incidental

expenses.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 1333, Sec. 5, eff. June 16,

2001.

Sec. 776.014. CREATION OF DISTRICT THAT INCLUDES MUNICIPAL

TERRITORY. (a) When creation of a district that contains

territory within a municipality's limits or extraterritorial

jurisdiction is proposed, a written request to include that

territory in the district must be presented to the municipality's

governing body. Except as provided by Subsection (c), that

territory may not be included in the district unless the

municipality's governing body in writing approves the request for

inclusion not later than the 60th day after the date on which the

request is received.

(b) If the municipality's governing body does not approve the

request for inclusion within the period prescribed by Subsection

(a), a majority of the qualified voters and the owners of at

least 50 percent of the territory that is in the municipality's

limits or extraterritorial jurisdiction and that is to be

included in the district may petition the governing body to make

emergency services available to their territory. The petition

must be submitted to the governing body not later than the 90th

day after the date on which the municipality receives the

request.

to act on the petition requesting emergency services within six

months after the date on which the petition is received

constitutes consent for the territory that is the subject of the

petition to be included in the proposed district.

(d) If the proposed district will include territory designated

by a municipality as an industrial district under Section 42.044,

Local Government Code, a request for inclusion of that territory

must be presented to the municipality's governing body in the

same manner provided by this section for territory within the

limits or extraterritorial jurisdiction of a municipality.

(e) If the municipality's governing body consents to the

inclusion in the proposed district of territory within the

municipality's limits or extraterritorial jurisdiction, or in an

industrial district, the territory may be included in the

district in the same manner as other territory under this

chapter.

(f) A governing body's consent under this section expires six

months after the date on which the consent is given.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1989, 71st Leg., 1st C.S., ch. 32, Sec. 1, eff.

Sept. 1, 1989.

Sec. 776.015. FILING OF PETITION AND NOTICE OF HEARING. (a)

The county judge may receive a petition for creation of a

district if the petition is in proper form and shall file it with

the county clerk.

(b) At the next regular or special session of the commissioners

court held after the petition is filed with the county clerk, the

commissioners court shall set a place, date, and time for the

hearing to consider the petition.

notice must state:

(1) that creation of a district is proposed;

(2) that the district is to be created and is to operate under

Article III, Section 48-e, of the Texas Constitution, as proposed

by S.J.R. No. 27, Acts of the 70th Legislature, Regular Session,

1987, and adopted by the voters at an election held November 3,

1987;

(3) the name of the proposed district;

(4) the district's boundaries and functions as stated in the

petition;

(5) the place, date, and time of the hearing; and

(6) that each person who has an interest in the creation of the

district may attend the hearing and present the person's opinion

for or against creation of the district.

(d) The county clerk shall retain a copy of the notice and shall

deliver sufficient copies of the notice to the sheriff for

posting and publication.

(e) Not later than the 21st day before the date on which the

hearing will be held, the sheriff shall post one copy of the

notice at the courthouse door. The sheriff shall also have the

notice published in a newspaper of general circulation in the

proposed district once a week for two consecutive weeks. The

first publication must occur not later than the 21st day before

the date on which the hearing will be held.

(f) The return of each officer executing notice must:

(1) be endorsed or attached to a copy of the notice;

(2) show the execution of the notice;

(3) specify each date on which the notice was posted or

published; and

(4) include a printed copy of the published notice.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1989, 71st Leg., 1st C.S., ch. 32, Sec. 2, eff.

Sept. 1, 1989.

Sec. 776.016. HEARING. (a) At the time and place set for the

hearing or at a later date set at that time, the commissioners

court shall consider the petition and each issue relating to

creation of the district.

(b) Any interested person may appear before the commissioners

court in person or by attorney to support or oppose the creation

of the district and may offer pertinent testimony.

determine each issue relating to the creation of the district and

may issue incidental orders it considers proper. The

commissioners court may adjourn the hearing as necessary.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.017. PETITION APPROVAL; DENIAL. (a) If after the

hearing the commissioners court finds that the proposed district

is feasible, will benefit the territory in the district, will

secure the public safety, welfare, and convenience, and will aid

in conserving the real property or natural resources in the

proposed district, the commissioners court shall grant the

petition and fix the district's boundaries.

(b) If the commissioners court finds that the proposed district

does not meet the requirements prescribed by Subsection (a), the

commissioners court shall deny the petition.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.018. CONSIDERATION OF EFFECT OF MUNICIPAL

PARTICIPATION. (a) If the area of the proposed district

encompasses the territory of any municipality, including the area

within the extraterritorial jurisdiction of the municipality, the

commissioners court of the county in which the municipal

territory or jurisdiction is located, in making a determination

under Section 776.017, shall also determine whether those

findings would be the same as to the remaining portion of the

proposed district, excluding any or all of the territory of the

municipalities in the event any one or more of the municipalities

should fail to cast a majority vote in favor of the district and

the tax.

(b) This finding shall be made as to each municipality whose

territory is proposed to be included within the area of the

proposed district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1989, 71st Leg., 1st C.S., ch. 32, Sec. 3, eff.

Sept. 1, 1989.

Sec. 776.019. ELECTION. (a) On the granting of a petition, the

commissioners court shall order an election to confirm the

district's creation and authorize the levy of a tax not to exceed

the rate allowed by Section 48-e, Article III, Texas

Constitution.

(b) If the petition indicates that the proposed district will

contain territory in more than one county, the commissioners

court may not order an election until the commissioners court of

each county in which the district will be located has granted the

petition.

election shall be given in the same manner as the notice of the

petition hearing.

(d) The election shall be held on the first authorized uniform

election date prescribed by the Election Code that allows

sufficient time to comply with other requirements of law.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1989, 71st Leg., 1st C.S., ch. 32, Sec. 4, eff.

Sept. 1, 1989; Acts 2001, 77th Leg., ch. 1140, Sec. 9, eff. Sept.

1, 2001.

Sec. 776.020. ELECTION RESULT AND COMMISSIONERS COURT ORDER.

(a) If a majority of the votes cast in the election favor

confirmation, the district is created.

(b) A district may not include territory in a municipality's

limits or extraterritorial jurisdiction unless a majority of the

voters residing in that territory who vote at the election vote

in favor of confirmation of the creation of the district and

imposing a tax. The exclusion of that territory does not affect

the creation of a district that includes the remainder of the

proposed territory if the commissioners court's findings under

Section 776.017 were favorable to the district's creation.

creation of the district, the commissioners court may not order

another election before the first anniversary of the date of the

official canvass of the most recent election concerning creation

of the district.

(d) When a district is created, the commissioners court of each

county in which the district is located shall enter an order in

its minutes that reads substantially as follows:

Whereas, at an election held on the ______ day of ____________,

___, in that part of ____________ County, State of Texas,

described as (insert description unless the district is

countywide), there was submitted to the qualified voters the

question of whether that territory should be formed into an

emergency services district under state law; and

Whereas, at the election ______ votes were cast in favor of

formation of the district and ______ votes were cast against

formation; and

Whereas, the formation of the emergency services district

received the affirmative vote of the majority of the votes cast

at the election as provided by law;

Now, therefore, the Commissioners Court of ____________ County,

State of Texas, finds and orders that the tract described in this

order has been duly and legally formed into an emergency services

district (or a portion thereof) under the name of ____________,

under Article III, Section 48-e, of the Texas Constitution, as

proposed by S.J.R. No. 27, Acts of the 70th Legislature, Regular

Session, 1987, and adopted by the voters at an election held

November 3, 1987, and has the powers vested by law in the

district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1989, 71st Leg., 1st C.S., ch. 32, Sec. 5, eff.

Sept. 1, 1989.

Sec. 776.021. OVERLAPPING DISTRICTS. (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

operating under Chapter 775, the most recently created district

may not provide services in the overlapping territory that

duplicate the services provided by the other district.

(b) If the territory in more than two districts overlaps, the

commissioners court of the county in which the most recently

created district is located by order shall exclude the

overlapping territory from that district.

date on which the election confirming its creation was held. If

the elections confirming the creation of two or more districts

are held on the same date, the most recently created district is

the district for which the hearing required by Section 776.016

was most recently held.

(d) The creation of a district with boundaries that overlap the

boundaries of another district does not affect the validity of

either district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 1333, Sec. 6, eff. June 16,

2001; Acts 2003, 78th Leg., ch. 1204, Sec. 1.008, eff. Sept. 1,

2003.

SUBCHAPTER C. ORGANIZATION, POWERS, AND DUTIES

Sec. 776.031. DISTRICT POWERS. (a) A district is a political

subdivision of the state. To perform the functions of the

district, a district may carry out this chapter and:

(1) acquire, hold, lease, manage, occupy, and sell real and

personal property or an interest in property including real

property, improvements, and fixtures necessary to house, repair,

and maintain emergency services vehicles and related equipment;

(2) appoint and employ necessary officers, agents, and

employees;

(3) sue and be sued;

(4) impose and collect taxes as prescribed by this chapter;

(5) accept and receive donations;

(6) lease, own, maintain, and operate emergency services

vehicles and other necessary or proper emergency services

equipment and machinery to provide emergency services, including

emergency ambulance service; and

(7) enter into and perform necessary contracts, including a

contract with another district, municipality, or another entity:

(A) to make fire-fighting facilities, fire extinguishment

services, or emergency rescue and ambulance services available to

the district; or

(B) for reciprocal operation of services and facilities if the

contracting parties find that reciprocal operation would be

mutually beneficial and not detrimental to the parties to the

contract.

(b) A district may be created to provide limited services

specified at the time of the district's creation.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1989, 71st Leg., 1st C.S., ch. 32, Sec. 6, eff.

Sept. 1, 1989.

Sec. 776.032. CERTAIN BUSINESSES NOT SUBJECT TO AD VALOREM TAX

OR DISTRICT POWERS. (a) A business entity is not subject to the

ad valorem tax authorized by this chapter or subject to the

district's powers if the business entity:

(1) provides its own fire prevention and fire control services

and owns or operates fire-fighting equipment or systems

equivalent to or better than standards developed by the National

Fire Protection Association or another nationally recognized

association and for which the business entity receives the

appropriate approval from the Texas Industrial Emergency Services

Board of the State Firemen's and Fire Marshals' Association of

Texas;

(2) provides and operates its own equipped industrial ambulance

with a licensed driver and provides industrial victim care by an

emergency care attendant trained to provide the equivalent of

ordinary basic life support, as defined by Section 773.003; and

(3) provides ordinary emergency services for the business

entity, such as emergency response, as defined by 29 C.F.R. Sec.

1910.120, rescue, disaster planning, or security services, as

recognized by the Texas Industrial Emergency Services Board of

the State Firemen's and Fire Marshals' Association of Texas, and

provides the equipment, training, and facilities necessary to

safely handle emergencies and protect the business entity and its

neighbors in the community.

(b) This section shall not be construed to exempt a business

from a sales and use tax authorized by Section 776.0751.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 4, eff.

Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 14, Sec. 277, eff. Sept.

1, 1991; Acts 2003, 78th Leg., ch. 1204, Sec. 1.009, eff. Sept.

1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

558, Sec. 2, eff. September 1, 2005.

Sec. 776.033. APPOINTMENT OF BOARD IN DISTRICT LOCATED WHOLLY IN

ONE COUNTY. (a) The commissioners court of a county in which a

single-county district is located shall appoint a five-member

board of emergency commissioners to serve as the district's

governing body. Except as prescribed by Subsection (b), a

commissioner serves a two-year term.

(b) After the votes have been canvassed and the commissioners

court enters the order creating the district, the commissioners

court shall appoint the initial emergency commissioners to serve

until January 1 of the year following the year of the district

election. On January 1, the court shall designate three of those

commissioners to serve two-year terms and two commissioners to

serve one-year terms.

appoint a successor for each emergency commissioner whose term

has expired.

(d) The commissioners court shall fill a vacancy on the board

for the remainder of the unexpired term.

(e) The commissioners court shall consider relevant factors in

determining the individuals to appoint as emergency services

commissioners, including whether the individuals have knowledge

that relates to fire prevention or emergency medical services and

that is relevant to the common policies and practices of the

board.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2003, 78th Leg., ch. 235, Sec. 12, eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 930, Sec. 10, eff. Sept. 1, 2003.

Sec. 776.034. ELECTION OF BOARD IN DISTRICT LOCATED IN MORE THAN

ONE COUNTY. (a) The governing body of a district located in

more than one county consists of a five-person board of emergency

commissioners elected as prescribed by this section. Except as

provided by Subsection (g), an emergency commissioner serves a

two-year term.

(b) After a district located in more than one county is created,

the county judges of each county in the district shall mutually

establish a convenient day in November, other than the date of

the general election for state and county officers, to conduct an

election to elect the initial emergency commissioners.

a district located in more than one county, a person must be at

least 18 years of age and a resident of the district.

(d) A candidate for emergency commissioner must give the county

clerk of each county in the district a sworn notice of the

candidate's intention to run for office. The notice must state

the person's name, age, and address and state that the person

intends to run for emergency commissioner. On receipt of the

notice, the county clerk shall have the candidate's name placed

on the ballot.

(e) The county clerks of each county in the district shall

jointly appoint an election judge to certify the results of the

election.

(f) After the election is held, the county clerk of each county

or the clerk's deputy shall prepare a sworn statement of the

election costs incurred by the county. The statement shall be

given to the newly elected board, which shall order the

appropriate official to reimburse each county for the county's

election costs.

(g) The initial emergency commissioners' terms of office begin

on January 1 of the year following the year of the election. The

two commissioners who received the fewest votes serve one-year

terms. The other commissioners serve two-year terms.

(h) The general election for commissioner shall be held annually

on an authorized election date as provided by Chapter 41,

Election Code.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.0345. APPOINTMENT OF BOARD IN DISTRICT LOCATED IN MORE

THAN ONE COUNTY. (a) Section 776.034 does not apply to a

district that exists on the effective date of the Act creating

this section and that is located:

(1) in a county with a population of less than 21,000; and

(2) in a county with a population of more than 47,400.

(b) The commissioners court of the largest county in which the

district is located shall appoint a five-member board of

emergency commissioners to serve as the district's governing

body. A commissioner serves a two-year term.

under this section, a person must be at least 18 years of age and

reside in the district. Two commissioners must reside in a

county with a population of less than 21,000 and three

commissioners must reside in a county with a population of more

than 47,400.

(d) On January 1 of each year, the commissioners court shall

appoint a successor for each emergency commissioner whose term

has expired.

(e) The commissioners court shall fill a vacancy on the board

for the remainder of the unexpired term.

Added by Acts 2007, 80th Leg., R.S., Ch.

1100, Sec. 1, eff. June 15, 2007.

Sec. 776.035. POWERS AND DUTIES OF BOARD. (a) The board shall:

(1) hold regular monthly meetings and other meetings as

necessary;

(2) keep minutes and records of its acts and proceedings;

(3) file reports as required by the state fire marshal, the

commissioner of health, and other authorized persons;

(4) file a written report not later than February 1 of each year

with the commissioners court regarding the district's

administration for the preceding calendar year and the district's

financial condition; and

(5) administer the district in accordance with this chapter.

(b) The board may require inspections to be made in the district

relating to the causes and prevention of fires, medical

emergencies, or other disasters affecting human life or property.

necessary to achieve the purposes of this chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1989, 71st Leg., 1st C.S., ch. 32, Sec. 7, eff.

Sept. 1, 1989.

Sec. 776.036. OFFICERS OF BOARD. (a) The emergency

commissioners shall elect from among their members a president,

vice-president, secretary, treasurer, and assistant treasurer to

perform the duties usually required of the respective offices.

The office of secretary and treasurer may be combined.

(b) The treasurer must execute and file with the county clerk a

bond conditioned on the faithful execution of the treasurer's

duties. The treasurer of a district located in more than one

county shall file the bond with the county clerk of the county

with the largest population in the district. The county judge of

the county in which the bond is to be filed shall determine the

amount and sufficiency of the bond before it is filed.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.037. COMPENSATION; CONFLICT OF INTEREST. (a)

Emergency commissioners serve without compensation but may be

reimbursed for reasonable and necessary expenses incurred in

performing official duties.

(b) Except as a resident or property owner in the district, an

emergency commissioner may not have an interest in a contract or

transaction to which the district is a party and under which the

commissioner may receive money or other things of value as

consideration.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER D. CHANGE IN BOUNDARIES OR DISSOLUTION OF DISTRICT

Sec. 776.051. EXPANSION OF DISTRICT TERRITORY. (a) Qualified

voters who own taxable real property in a defined territory that

is not included in a district may file a petition with the

secretary of the board requesting the inclusion of the territory

in the district. The petition must be signed by at least 50

qualified voters who own taxable real property in the territory

or a majority of those voters, whichever is less.

(b) The board by order shall set a time and place for a hearing

on the petition. The hearing must be held not earlier than the

31st day after the date on which the board issues the order.

hearing. The notice must contain the time and place for the

hearing and a description of the territory proposed to be annexed

into the district.

(d) Not later than the 16th day before the date on which the

hearing will be held, the secretary shall:

(1) post copies of the notice in three public places in the

district and one public place in the territory proposed to be

annexed into the district; and

(2) publish the notice once in a newspaper of general

circulation in the county.

(e) If after the hearing the board finds that annexation of the

territory into the district is feasible and would benefit the

district, the board may approve the annexation by a resolution

entered in its minutes. The board is not required to include all

of the territory described in the petition if the board finds

that a modification or change is necessary or desirable.

(f) Annexation of territory is final when approved by a majority

of the voters at an election held in the district and by a

majority of the voters at a separate election held in the

territory to be annexed. If the district has outstanding debts or

taxes, the voters in the election to approve the annexation must

also determine if the annexed territory will assume its

proportion of the debts or taxes if added to the district.

(g) The election ballots shall be printed to provide for voting

for or against the following, as applicable:

(1) "Adding (description of territory to be added) to the

____________ Emergency Services District."

(2) "(Description of territory to be added) assuming its

proportionate share of the outstanding debts and taxes of the

____________ Emergency Services District, if it is added to the

district."

(h) The election notice, the manner and time of giving the

notice, and the manner of holding the election are governed by

the applicable provisions of this chapter, except that the board

president shall conduct the election and certify the results to

the county judge of each county in the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.052. REMOVAL OF CERTAIN TERRITORY BY GOVERNING BODY OF

MUNICIPALITY. (a) If territory in a municipality's limits is

included in a district, the municipality's governing body may

remove that territory from the district if:

(1) the municipality agrees to provide emergency protection to

the territory as prescribed by Section 776.014; or

(2) the territory is designated an industrial district under

Section 42.044, Local Government Code.

(b) To remove territory, the governing body of the municipality

must notify the secretary of the board in writing that the

territory is excluded from the district's territory.

other procedures necessary to annex territory that is included in

a district and if the municipality intends to provide emergency

services to the territory by the use of municipal personnel or by

some method other than by use of the district, the governing body

of the municipality shall send written notice of that fact to the

board. The municipality must send the notice to the secretary of

the board by certified mail, return receipt requested. The

territory remains part of the district and does not become part

of the municipality until the secretary of the board receives the

notice. On receipt of the notice, the board shall immediately

change its records to show that the territory has been removed

from the district and shall cease to provide further services to

the residents of that territory.

(d) If a municipality removes territory from a district under

Subsection (a) or (c), the municipality shall compensate the

district in an amount equal to the removed territory's pro rata

share of the district's bonded and other indebtedness as computed

according to the formula in Subsection (e). The district shall

apply compensation received from a municipality under this

subsection exclusively to the payment of the removed territory's

pro rata share of the district's bonded and other indebtedness.

(e) The amount of compensation under Subsection (d) shall be

determined by multiplying the district's total indebtedness at

the time the territory is removed by a fraction the numerator of

which is the assessed value of the property to be removed based

on the most recent certified county property tax rolls at the

time of removal and the denominator of which is the total

assessed value of the property of the district based on the most

recent certified county property tax rolls at the time of

removal.

(f) On the district's request, a municipality shall purchase

from the district at fair market value any real or personal

property used to provide emergency services in territory

disannexed under this section. If any part of the indebtedness

for which the district receives compensation under Subsection (d)

was for the purchase of the real or personal property that the

municipality purchases under this subsection, the fair market

value of that property for the purpose of this subsection is

reduced by a percentage equal to the disannexed territory's pro

rata share under Subsection (d).

(g) For purposes of this section, total indebtedness includes

loans and lease-purchase agreements but does not include:

(1) a loan or lease-purchase agreement the district enters into

after the district receives notice about the municipality's

intent to remove district territory; or

(2) any indebtedness attributed to any real or personal property

that the district requires a municipality to purchase under

Subsection (f).

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2003, 78th Leg., ch. 235, Sec. 13, eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 907, Sec. 3, eff. Sept. 1, 2003;

Acts 2003, 78th Leg., ch. 930, Sec. 11, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 9.006, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

828, Sec. 2, eff. September 1, 2007.

Sec. 776.0521. ARBITRATION REGARDING REMOVED TERRITORY. (a)

The municipality and the district shall negotiate an agreement on

the amount of compensation required under Section 776.052. If the

municipality and the district cannot reach an agreement, the

municipality and the district shall resolve the dispute using

binding arbitration.

(b) A request for binding arbitration must be in writing and may

not be made before the 60th day after the date the municipality

receives notice from the district regarding the amount of

compensation required under Section 776.052.

arbitrator. If the parties cannot agree on the appointment of an

arbitrator before the 11th business day after the date

arbitration is requested, the mayor of the municipality shall

immediately request a list of seven neutral arbitrators from the

American Arbitration Association or the Federal Mediation and

Conciliation Service or their successors in function. An

arbitrator included in the list must be a resident of this state

and may not be a resident of a county in which any part of the

municipality or any part of the district is located. The

municipality and the district must agree on the appointment of an

arbitrator included in the list. If the municipality and the

district cannot agree on the arbitrator before the 11th business

day after the date the list is provided to the parties, each

party or the party's designee may alternately strike a name from

the list. The remaining person on the list shall be appointed as

the arbitrator. In this subsection, "business day" means a day

other than a Saturday, Sunday, or state or national holiday.

(d) The arbitrator shall:

(1) set a hearing to be held not later than the 10th day after

the date the arbitrator is appointed; and

(2) notify the parties to the arbitration in writing of the time

and place of the hearing not later than the eighth day before the

date of the hearing.

(e) The arbitrator may:

(1) receive in evidence any documentary evidence or other

information the arbitrator considers relevant;

(2) administer oaths; and

(3) issue subpoenas to require:

(A) the attendance and testimony of witnesses; and

(B) the production of books, records, and other evidence

relevant to an issue presented to the arbitrator for

determination.

(f) Unless the parties to the dispute agree otherwise, the

arbitrator shall complete the hearing within two consecutive

days. The arbitrator shall permit each party one day to present

evidence and other information. The arbitrator, for good cause

shown, may schedule an additional hearing to be held not later

than the seventh day after the date of the first hearing. Unless

otherwise agreed to by the parties, the arbitrator must issue a

decision in writing and deliver a copy of the decision to the

parties not later than the 14th day after the date of the final

hearing.

(g) The municipality and the district shall share the cost of

arbitration.

Added by Acts 2003, 78th Leg., ch. 235, Sec. 14, eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 907, Sec. 4, eff. Sept. 1, 2003.

Sec. 776.053. PETITION FOR DISSOLUTION; NOTICE OF HEARING. (a)

Before a district may be dissolved, the district's board must

receive a petition signed by at least 100 qualified voters who

own taxable real property in the district or a majority of those

voters, whichever is less.

(b) If the petition is in proper form, the board shall set a

place, date, and time for a hearing to consider the petition.

(1) the name of the district;

(2) a description of the district's boundaries;

(3) the proposal that the district be dissolved; and

(4) the place, date, and time of the hearing on the petition.

(d) The notice shall be published in a newspaper of general

circulation in the district once a week for two consecutive

weeks. The first publication must occur not later than the 21st

day before the date on which the hearing will be held.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.054. HEARING. (a) At the hearing on the petition to

dissolve the district, the board shall consider the petition and

each issue relating to the dissolution of the district.

(b) Any interested person may appear before the board to support

or oppose the dissolution.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.055. APPEAL. A person in the district or an owner of

real or personal property located in the district may appeal the

board's decision on dissolution of the district. The person or

owner must file the appeal in a district court in a county in

which the district is located.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.056. ELECTION TO CONFIRM DISSOLUTION. (a) On the

granting of a petition to dissolve the district, the board shall

order an election to confirm the district's dissolution.

(b) Notice of the election shall be given in the same manner as

the notice of the petition hearing.

election date prescribed by the Election Code that allows

sufficient time to comply with the requirements of law.

(d) The ballot shall be printed to provide for voting for or

against the following: "Dissolving the ____________ Emergency

Services District."

(e) A copy of the tabulation of results shall be filed with the

county clerk of each county in which the district is located.

(f) If a majority of those voting at the election vote to

dissolve the district, the board shall proceed with dissolution.

An election to create a new district within the boundaries of the

old district may not be held before the first anniversary of the

date of dissolution.

(g) If a majority of those voting at the election vote against

dissolving the district, the board may not order another election

on the issue before the first anniversary of the date of the

canvass of the election.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.057. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS

AFTER DISSOLUTION. (a) After a vote to dissolve a district, the

board shall continue to control and administer the debts,

property, and other assets of the district until all assets have

been disposed of and all district debts have been satisfied.

(b) The board may not dispose of the district's assets except

for appropriate consideration unless the debts are transferred to

another governmental entity or agency within or embracing the

district and the transfer will benefit the district's citizens.

shall:

(1) determine the amount of debt owed by the district in excess

of the district's assets; and

(2) impose on the property included in the district's tax rolls

a tax that is in proportion of the debt to the property value.

(d) Each taxpayer may pay the tax imposed by the district under

this section at once.

(e) The board may institute a suit to enforce payment of taxes

and to foreclose liens to secure the payment of taxes due the

district.

(f) When all outstanding debts of the district are paid, the

board shall order the secretary to return the pro rata share of

all unused tax money to each district taxpayer. A taxpayer may

request that the amount of the taxpayer's share of surplus tax

money be credited to the taxpayer's county taxes. If a taxpayer

requests the credit, the board shall direct the secretary to pay

that amount to the county tax assessor-collector.

(g) After the district has paid all its debts and has disposed

of all its assets as prescribed by this section, the board shall

file with the commissioners court of each county in which the

district is located a written report setting forth a summary of

the board's actions in dissolving the district. Not later than

the 10th day after it receives the report and determines that the

requirements of this section have been fulfilled, the

commissioners court of each county shall enter an order

dissolving the district.

(h) Each emergency commissioner is discharged from liability

under the emergency commissioner's bond on entry of the

dissolution order under Subsection (g).

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.058. TRANSFER OF TERRITORY BETWEEN DISTRICTS. (a)

After a hearing, a district may make mutually agreeable changes

in boundaries with another district, or a district created under

Chapter 775, 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.

(b) The changes in boundaries under this section do not diminish

or impair the rights of the holders of any outstanding and unpaid

bonds, warrants, or other district obligations.

territory in an amount equal to that territory's pro rata share

of the losing district's bonded and other indebtedness based on

the unpaid principal balances and the actual property values at

the time the changes in boundaries are made. The district that

loses territory shall apply compensation received from the

annexing district under this subsection exclusively to the

payment of the annexed territory's pro rata share of the losing

district's bonds or other debt.

Added by Acts 2001, 77th Leg., ch. 1140, Sec. 10, eff. Sept. 1,

2001.

SUBCHAPTER E. FINANCES AND BONDS

Sec. 776.071. LIMITATION ON INDEBTEDNESS. (a) Except as

provided by Subsection (b), a district may not contract for an

amount of indebtedness in any one year that is in excess of the

funds then on hand or that may be paid from current revenues for

the year.

(b) This section does not apply to Sections 776.072, 776.076,

776.077, 776.078, and 776.082.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 1140, Sec. 11, eff. Sept. 1,

2001.

Sec. 776.072. DEPOSITORIES. (a) The board shall designate one

or more banks to serve as depositories for district funds.

(b) The board shall deposit all district funds in its

depository, except that the board:

(1) may deposit funds pledged to pay bonds or notes with a bank

named in the trust indenture or in the bond or note resolution;

and

(2) shall remit funds for the payment of the principal of and

interest on bonds and notes to the bank of payment.

trustee bank in an amount that exceeds the maximum amount secured

by the Federal Deposit Insurance Corporation unless the excess

funds are secured in the manner provided by law for the security

of county funds.

(d) The resolution or trust indenture securing the bonds or

notes may require that some or all of the funds must be secured

by obligations of or unconditionally guaranteed by the federal

government.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.073. METHOD OF PAYMENT. (a) District funds may be

disbursed only by check signed by the treasurer and countersigned

by the president. If the treasurer is unavailable, the assistant

treasurer may sign for the treasurer. If the president is

unavailable, the vice-president may sign for the president.

(b) An expenditure of more than $2,000 may not be paid from tax

money unless a sworn itemized account covering the expenditure is

presented to the board and the board approves the expenditure.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.074. COMPETITIVE BIDS. (a) Except as provided by

Subsection (i), the board must submit to competitive bids an

expenditure of more than $25,000 for:

(1) one item or service; or

(2) more than one of the same or a similar type of items or

services in a fiscal year.

(b) The board shall request bids on items to be purchased or

leased or services to be performed as provided by this

subsection. The board shall notify suppliers, vendors, or

providers by advertising for bids or by providing at least three

suppliers, vendors, or purchasers with written notice by mail of

the intended purchase. If the board decides to advertise for

bids, the advertisement must be published in accordance with

Section 262.025(a), Local Government Code. If the board receives

fewer than three bids in response to the advertisement, the board

shall give written notice directly to at least three suppliers,

vendors, or providers of the intended purchase. If three

suppliers, vendors, or providers are not available or known to

the board, the board shall give written notice by mail directly

to each supplier, vendor, or provider known to the board.

(1) describe the work to be performed or the item to be

purchased or leased;

(2) state the location at which the bidding documents, plans,

specifications, or other data may be examined; and

(3) state the time and place for submitting bids and the time

and place that bids will be opened.

(d) The board may not prepare restrictive bid specifications.

(e) Bids may be opened only by the board at a public meeting or

by a district officer or employee at a district office.

(f) The board may reject any bid. The board may not award a

contract to a bidder who is not the lowest bidder unless, before

the bid is awarded, the lowest bidder is given notice of the

proposed award and an opportunity to appear before the board or

its designated representative and present evidence concerning the

bidder's responsibility.

(g) A contract awarded in violation of this section is void.

(h) This section applies to an expenditure of district tax

revenues by any party or entity for the purchase of services,

vehicles, equipment, or goods.

(i) This section does not apply to:

(1) the purchase or lease of real property;

(2) an item or service that the board determines can be obtained

from only one source;

(3) a contract for fire extinguishment and suppression services,

emergency rescue services, or ambulance services; or

(4) an emergency expenditure.

(j) Subsection (i) does not prohibit the board from soliciting

competitive bids for any item, service, or contract listed in

Subsection (i).

(k) A contract for a public works project must be administered

in accordance with Subchapter B, Chapter 271, Local Government

Code, except as provided by this section.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1993, 73rd Leg., ch. 757, Sec. 4, eff. Sept. 1,

1993; Acts 1999, 76th Leg., ch. 220, Sec. 1, eff. Sept. 1, 1999.

Sec. 776.075. AD VALOREM TAX. (a) The board shall annually

impose an ad valorem tax on all real and personal property

located in the district and subject to district taxation for the

district's support and the purposes authorized by this chapter.

(b) If a district issues bonds or notes that are payable wholly

from ad valorem taxes, the board shall, when bonds or notes are

authorized, set a tax rate that is sufficient to pay the

principal of and interest on the bonds or notes as they come due

and to provide reserve funds if prescribed in the resolution

authorizing, or the trust indenture securing, the bonds or notes.

valorem taxes and from revenues, income, or receipts of the

district, the board shall, when the bonds or notes are

authorized, set a tax rate that is sufficient to pay the

principal of and interest on the bonds and notes and to create

and maintain any reserve funds.

(d) In establishing the rate of the ad valorem tax to be

collected for a year, the board shall consider the money that

will be available to pay the principal of and interest on any

bonds or notes issued and to create any reserve funds to the

extent and in the manner permitted by the resolution authorizing,

or the trust indenture securing, the bonds or notes.

(e) The board shall certify the ad valorem tax rate to the

county tax assessor-collector, who is the assessor-collector for

the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 4, eff.

Sept. 1, 1989.

Sec. 776.0751. SALES AND USE TAX. (a) A district may adopt a

sales and use tax, change the rate of its sales and use tax, or

abolish its sales and use tax at an election held as provided by

Section 776.0752. The district may impose the tax at a rate of

one-half percent, one percent, one and one-half percent, or two

percent. Revenue from the tax may be used for any purpose for

which ad valorem tax revenue of the district may be used.

(b) Chapter 323, Tax Code, applies to the application,

collection, and administration of the tax imposed under this

section. The comptroller may make rules for the collection and

administration of this tax in the same manner as for a tax

imposed under Chapter 323, Tax Code. Where a county and a

hospital district both impose a sales and use tax, the

comptroller may by rule provide for proportionate allocation of

sales and use tax collections between a county and a hospital

district on the basis of the period of time each tax is imposed

and the relative tax rates.

increase the rate of the tax if as a result of the adoption of

the tax or the tax increase the combined rate of all sales and

use taxes imposed by the district and other political

subdivisions of this state having territory in the district would

exceed two percent at any location in the district.

(d) If the voters of a district approve the adoption of the tax

or an increase in the tax rate at an election held on the same

election date on which another political subdivision of this

state adopts a sales and use tax or approves the increase in the

rate of its sales and use tax and as a result the combined rate

of all sales and use taxes imposed by the district and other

political subdivisions of this state having territory in the

district would exceed two percent at any location in the

district, the election to adopt a sales and use tax or to

increase the rate of the sales and use tax in the district under

this subchapter has no effect.

(e) to (h) Expired.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 5, eff.

Sept. 1, 1989.

Sec. 776.0752. SALES AND USE TAX ELECTION PROCEDURES. (a)

Except as otherwise provided by this subchapter, an election to

adopt or abolish a district's sales and use tax or to change the

rate of the tax is governed by the provisions of Subchapter E,

Chapter 323, Tax Code, applicable to an election to adopt or

abolish a county sales and use tax.

(b) An election is called by the adoption of a resolution by the

board. The board shall call an election if a number of qualified

voters of the district equal to at least five percent of the

number of registered voters in the district petitions the board

to call the election.

prepared to permit voting for or against the proposition: "The

adoption of a local sales and use tax in (name of district) at

the rate of (proposed tax rate) percent."

(d) At an election to abolish the tax, the ballot shall be

prepared to permit voting for or against the proposition: "The

abolition of the local sales and use tax in (name of district)."

(e) At an election to change the rate of the tax, the ballot

shall be prepared to permit voting for or against the

proposition: "The (increase or decrease, as applicable) in the

rate of the local sales and use tax imposed by (name of district)

from (tax rate on election date) percent to (proposed tax rate)

percent."

Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 5, eff.

Sept. 1, 1989.

Sec. 776.0753. SALES AND USE TAX EFFECTIVE DATE; BOUNDARY

CHANGE. (a) The adoption or abolition of the tax or change in

the tax rate takes effect on the first day of the first calendar

quarter occurring after the expiration of the first complete

calendar quarter occurring after the date on which the

comptroller receives a notice of the results of the election.

(b) If the comptroller determines that an effective date

provided by Subsection (a) will occur before the comptroller can

reasonably take the action required to begin collecting the tax

or to implement the abolition of the tax or the tax rate change,

the effective date may be extended by the comptroller until the

first day of the next succeeding calendar quarter.

application of a municipal sales and use tax in the event of a

change in the boundaries of a municipality apply to the

application of a tax imposed under this chapter in the event of a

change in the district's boundaries.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 5, eff.

Sept. 1, 1989.

Sec. 776.0755. ELECTION TO INCREASE TAX RATE. (a) A board may

order an election to increase the maximum tax rate of the

district to any rate at or below the rate allowed by Section

48-e, Article III, Texas Constitution. The proposition on the

ballot must state the proposed maximum tax rate to be authorized

at the election.

(b) The board shall give notice of the election as provided by

Section 4.003, Election Code. The notice shall contain the

information required by Section 4.004, Election Code.

date provided by the Election Code after the date of the board's

order that allows sufficient time to comply with any requirements

of law.

(d) If a majority of the votes cast in the election favor the

increase in the maximum tax rate, the maximum tax rate for the

district is increased to the rate authorized by the election. The

increase in the maximum tax rate does not apply to a tax year for

which the board adopts a tax rate before the date of the

election.

Added by Acts 2001, 77th Leg., ch. 1140, Sec. 12, eff. Sept. 1,

2001.

Sec. 776.076. BONDS AND NOTES AUTHORIZED. (a) The board may

issue bonds and notes as prescribed by this chapter to perform

any of its powers. Before the board may issue bonds or notes, the

commissioners court of each county in which the district is

located must approve the issuance of the bonds or notes by a

majority vote.

(b) The board may issue bonds and notes in one or more issues or

series that are payable from and secured by liens on and pledges

of:

(1) ad valorem taxes;

(2) all or part of the district's revenues, income, or receipts;

(3) a combination of those taxes, revenues, income, and

receipts.

40 years from the date of their issuance.

(d) Provision may be made for the subsequent issuance of

additional parity bonds or notes or subordinate lien bonds or

notes under terms and conditions stated in the resolution

authorizing the issuance of the bonds or notes.

(e) to (g) Repealed by Acts 2001, 77th Leg., ch. 1140, Sec.

23(6), eff. Sept. 1, 2001.

(h) If provided by the resolution, the proceeds from the sale of

the bonds or notes may be used for:

(1) paying interest on the bonds or notes during the period of

the acquisition or construction of a facility to be provided

through the issuance of the bonds or notes;

(2) paying expenses of operation and maintenance of the

facility;

(3) creating a reserve fund to pay the principal of and interest

on the bonds or notes; and

(4) creating other funds.

(i) As provided in the resolution, proceeds from the sale of the

bonds and notes may be placed on time deposit or invested until

needed.

(j) If the bonds or notes are issued payable by a pledge of

revenues, income, or receipts, the district may pledge all or

part of its revenues, income, or receipts from fees, rentals,

rates, charges, and proceeds and payments from contracts to the

payment of the bonds or notes, including the payment of principal

of, interest on, and other amounts required or permitted in

connection with the bonds or notes. The pledged fees, rentals,

rates, charges, proceeds, and payments must be established and

collected in amounts that, together with any other pledged

resources, will be at least sufficient to provide for:

(1) all payments of principal of, interest on, and other amounts

required in connection with the bonds or notes; and

(2) the payment of expenses in connection with the bonds or

notes and the operation, maintenance, and other expenses in

connection with the facilities to the extent required by the

resolution authorizing, or the trust indenture securing, the

issuance of the bonds or notes.

(k) The district shall impose a tax as prescribed by Section

776.075 if the bonds or notes are payable wholly or partly from

ad valorem taxes.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 1140, Sec. 13, 23(6), eff.

Sept. 1, 2001.

Sec. 776.077. ELECTION TO APPROVE BONDS AND NOTES. (a) A

district may not authorize bonds and notes secured in whole or in

part by taxes unless a majority of the district's qualified

voters who vote at an election called for that purpose approve

the issuance of the bonds and notes.

(b) The board may order an election on the bonds and notes. The

order must contain the same information contained in the notice

of the election.

in a newspaper of general circulation in the district. The notice

must be published not later than the 31st day before election

day.

(d) In addition to the contents of the notice required by the

Election Code, the notice must state:

(1) the amount of bonds or notes to be authorized; and

(2) the maximum maturity of the bonds or notes.

(e) At an election to approve bonds or notes payable wholly from

ad valorem taxes, the ballots must be printed to provide for

voting for or against the following: "The issuance of (bonds or

notes) and the levy of taxes for payment of the (bonds or

notes)."

(f) At an election to approve bonds or notes payable from both

ad valorem taxes and revenues, the ballots must be printed to

provide for voting for or against the following: "The issuance of

(bonds or notes) and the pledge of net revenues and the levy of

ad valorem taxes adequate to provide for the payment of the

(bonds or notes)."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 776.078. BOND ANTICIPATION NOTES. (a) A district at any

time may issue bond anticipation notes to carry out one or more

of its powers.

(b) The bond anticipation notes ma

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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