1 | 1 | | By: Aycock (Senate Sponsor - Fraser) H.B. No. 737 |
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2 | 2 | | (In the Senate - Received from the House April 29, 2015; |
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3 | 3 | | April 30, 2015, read first time and referred to Committee on |
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4 | 4 | | Intergovernmental Relations; May 22, 2015, reported favorably by |
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5 | 5 | | the following vote: Yeas 5, Nays 1; May 22, 2015, sent to printer.) |
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6 | 6 | | Click here to see the committee vote |
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7 | 7 | | |
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8 | 8 | | |
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9 | 9 | | COMMITTEE VOTE |
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10 | 10 | | YeaNayAbsentPNV |
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11 | 11 | | LucioX |
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12 | 12 | | BettencourtX |
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13 | 13 | | CampbellX |
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14 | 14 | | GarciaX |
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15 | 15 | | MenéndezX |
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16 | 16 | | NicholsX |
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17 | 17 | | TaylorofGalvestonX |
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18 | 18 | | A BILL TO BE ENTITLED |
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19 | 19 | | AN ACT |
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20 | 20 | | relating to the creation of regional emergency communications |
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21 | 21 | | districts; authorizing the issuance of bonds; authorizing a fee. |
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22 | 22 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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23 | 23 | | SECTION 1. Chapter 772, Health and Safety Code, is amended |
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24 | 24 | | by adding Subchapter H to read as follows: |
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25 | 25 | | SUBCHAPTER H. REGIONAL EMERGENCY COMMUNICATIONS DISTRICTS: |
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26 | 26 | | CERTAIN STATE PLANNING REGIONS WITH POPULATIONS OF AT LEAST 425,000 |
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27 | 27 | | Sec. 772.551. DEFINITIONS. In this subchapter: |
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28 | 28 | | (1) "Board" means the board of managers of a district. |
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29 | 29 | | (2) "District" means a regional emergency |
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30 | 30 | | communications district created under this subchapter. |
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31 | 31 | | (3) "Participating jurisdiction" means a county or |
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32 | 32 | | principal municipality that adopts a resolution to participate in a |
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33 | 33 | | district created under this subchapter. |
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34 | 34 | | (4) "Principal municipality" means the municipality |
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35 | 35 | | with the largest population in a region. |
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36 | 36 | | (5) "Region" means a state planning region established |
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37 | 37 | | under Chapter 391, Local Government Code. |
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38 | 38 | | (6) "Regional planning commission" means a commission |
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39 | 39 | | or council of governments created under Chapter 391, Local |
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40 | 40 | | Government Code, for a designated region. |
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41 | 41 | | Sec. 772.552. APPLICATION OF SUBCHAPTER. This subchapter |
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42 | 42 | | applies to a region: |
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43 | 43 | | (1) with a population of at least 425,000; |
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44 | 44 | | (2) composed of counties each with a population of |
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45 | 45 | | 4,500 or more but less than 311,000; |
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46 | 46 | | (3) composed of counties and municipalities that |
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47 | 47 | | operate a 9-1-1 system solely through a regional planning |
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48 | 48 | | commission; and |
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49 | 49 | | (4) in which the governing bodies of each county and |
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50 | 50 | | the principal municipality in the region adopt a resolution under |
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51 | 51 | | Section 772.553 to participate in the district. |
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52 | 52 | | Sec. 772.553. CREATION OF DISTRICT. (a) A district is |
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53 | 53 | | created when the governing bodies of each county and the principal |
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54 | 54 | | municipality in a region adopt a resolution approving the |
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55 | 55 | | district's creation and the county's or municipality's |
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56 | 56 | | participation in the district. The district's creation is |
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57 | 57 | | effective on the date the last governing body of the counties and |
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58 | 58 | | the principal municipality that comprise the region adopts the |
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59 | 59 | | resolution. |
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60 | 60 | | (b) The district shall file with the county clerk of each |
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61 | 61 | | county that comprises the district a certificate declaring the |
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62 | 62 | | creation of the district. |
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63 | 63 | | Sec. 772.554. POLITICAL SUBDIVISION; DISTRICT POWERS. (a) |
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64 | 64 | | A district is a political subdivision of this state created to carry |
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65 | 65 | | out essential governmental functions. |
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66 | 66 | | (b) A district may exercise all powers necessary or |
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67 | 67 | | convenient to carry out the purposes and provisions of this |
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68 | 68 | | subchapter. |
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69 | 69 | | Sec. 772.555. TERRITORY OF DISTRICT. (a) The territory of |
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70 | 70 | | a district consists of: |
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71 | 71 | | (1) the territory of the region in which the district |
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72 | 72 | | is established; and |
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73 | 73 | | (2) for each municipality partially located in the |
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74 | 74 | | region, the territory of that municipality located in another |
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75 | 75 | | region. |
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76 | 76 | | (b) If a municipality in the district annexes territory that |
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77 | 77 | | is outside the boundaries of the district, the annexed territory |
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78 | 78 | | becomes part of the district. |
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79 | 79 | | Sec. 772.556. BOARD. (a) A district is governed by a board |
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80 | 80 | | of managers composed of the members of the governing body of the |
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81 | 81 | | regional planning commission for the region in which the district |
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82 | 82 | | is established. Service on the board by a member of the governing |
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83 | 83 | | body is an additional duty of the member's office or employment. |
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84 | 84 | | (b) A board member serves without compensation. The |
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85 | 85 | | district shall pay all reasonable expenses necessarily incurred by |
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86 | 86 | | the board member in performing the board's functions under this |
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87 | 87 | | subchapter. |
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88 | 88 | | (c) A majority of the voting members of the board |
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89 | 89 | | constitutes a quorum. |
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90 | 90 | | Sec. 772.557. POWERS AND DUTIES OF BOARD. (a) The board |
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91 | 91 | | shall name, control, and manage the district. |
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92 | 92 | | (b) The board may adopt orders, rules, and policies |
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93 | 93 | | governing the operations of the board and the district. |
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94 | 94 | | (c) The board may contract with any person to carry out the |
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95 | 95 | | purposes of this subchapter. |
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96 | 96 | | (d) The board shall determine the nature and sources of |
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97 | 97 | | funding for the district. The board may accept grants or other |
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98 | 98 | | funding from the federal or state government, a county, a |
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99 | 99 | | municipality, or a private person. |
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100 | 100 | | (e) The board may sue in the district's name. |
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101 | 101 | | Sec. 772.558. ADVISORY COMMITTEE. (a) The board shall |
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102 | 102 | | appoint an advisory committee consisting of representatives of the |
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103 | 103 | | participating jurisdictions. The advisory committee shall review, |
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104 | 104 | | advise, and provide recommendations to the board on district |
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105 | 105 | | issues, including equipment, training, budget, and general |
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106 | 106 | | operational issues. |
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107 | 107 | | (b) An advisory committee member must have the training and |
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108 | 108 | | experience necessary to perform the duties assigned by the board. |
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109 | 109 | | (c) Chapter 2110, Government Code, does not apply to the |
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110 | 110 | | advisory committee. |
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111 | 111 | | Sec. 772.559. DIRECTOR OF DISTRICT; STAFF. (a) The |
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112 | 112 | | executive director of the regional planning commission in the |
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113 | 113 | | district's region serves as director of the district. |
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114 | 114 | | (b) The director shall: |
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115 | 115 | | (1) perform all duties required by the board; |
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116 | 116 | | (2) ensure that board policies and procedures are |
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117 | 117 | | implemented for the purposes of this subchapter; and |
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118 | 118 | | (3) assign employees of the regional planning |
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119 | 119 | | commission to perform duties under this subchapter as necessary to |
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120 | 120 | | carry out the district's operations. |
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121 | 121 | | (c) The director may use district money to compensate an |
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122 | 122 | | employee assigned duties under this subchapter and the director. |
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123 | 123 | | (d) The director and an employee assigned duties under this |
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124 | 124 | | subchapter are employees of the regional planning commission for |
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125 | 125 | | all purposes. |
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126 | 126 | | Sec. 772.560. BUDGET; ANNUAL REPORT; AUDIT. (a) The |
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127 | 127 | | director shall prepare, under the direction of the board, an annual |
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128 | 128 | | budget for the district. The budget and any revision of the budget |
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129 | 129 | | must be approved by the board. |
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130 | 130 | | (b) As soon as practicable after the end of each district |
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131 | 131 | | fiscal year, the director shall prepare and present to the board a |
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132 | 132 | | written report of all money received by the district and district |
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133 | 133 | | expenditures for the preceding fiscal year. The report must show, |
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134 | 134 | | in detail, the operations of the district for the period covered by |
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135 | 135 | | the report. |
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136 | 136 | | (c) The board annually shall have an independent financial |
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137 | 137 | | audit made of the district. |
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138 | 138 | | Sec. 772.561. PROVISION OF 9-1-1 SERVICE. (a) A district |
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139 | 139 | | shall provide 9-1-1 service to each participating jurisdiction |
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140 | 140 | | through one or a combination of the following methods and features |
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141 | 141 | | or equivalent state-of-the-art technology: |
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142 | 142 | | (1) the transfer method; |
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143 | 143 | | (2) the relay method; |
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144 | 144 | | (3) the dispatch method; |
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145 | 145 | | (4) automatic number identification; |
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146 | 146 | | (5) automatic location identification; or |
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147 | 147 | | (6) selective routing. |
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148 | 148 | | (b) The district shall recommend minimum standards for a |
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149 | 149 | | 9-1-1 system. The 9-1-1 system must be computerized. |
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150 | 150 | | (c) For each individual telephone subscriber in the |
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151 | 151 | | district, 9-1-1 service is mandatory and is not an optional service |
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152 | 152 | | under any definition of terms relating to telephone service. |
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153 | 153 | | Sec. 772.562. LIABILITY. A service supplier involved in |
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154 | 154 | | providing 9-1-1 service, a manufacturer of equipment used in |
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155 | 155 | | providing 9-1-1 service, or an officer or employee of a service |
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156 | 156 | | supplier involved in providing 9-1-1 service may not be held liable |
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157 | 157 | | for any claim, damage, or loss arising from the provision of 9-1-1 |
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158 | 158 | | service unless the act or omission proximately causing the claim, |
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159 | 159 | | damage, or loss constitutes gross negligence, recklessness, or |
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160 | 160 | | intentional misconduct. |
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161 | 161 | | Sec. 772.563. PRIMARY EMERGENCY TELEPHONE NUMBER. The |
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162 | 162 | | digits 9-1-1 are the primary emergency telephone number in a |
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163 | 163 | | district. A public safety agency whose services are available |
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164 | 164 | | through a 9-1-1 system: |
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165 | 165 | | (1) may maintain a separate number for an emergency |
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166 | 166 | | telephone call; and |
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167 | 167 | | (2) shall maintain a separate number for a |
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168 | 168 | | nonemergency telephone call. |
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169 | 169 | | Sec. 772.564. TRANSMITTING REQUESTS FOR EMERGENCY AID. (a) |
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170 | 170 | | A 9-1-1 system established under this subchapter must be capable of |
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171 | 171 | | transmitting requests for firefighting, law enforcement, |
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172 | 172 | | ambulance, and medical services to a public safety agency that |
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173 | 173 | | provides the requested service at the location from which the call |
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174 | 174 | | originates. A 9-1-1 system may provide for transmitting requests |
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175 | 175 | | for other emergency services, including poison control, suicide |
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176 | 176 | | prevention, and civil defense. |
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177 | 177 | | (b) A public safety answering point may transmit emergency |
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178 | 178 | | response requests to private safety entities. |
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179 | 179 | | (c) With the consent of a participating jurisdiction, a |
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180 | 180 | | privately owned automatic intrusion alarm or other privately owned |
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181 | 181 | | automatic alerting device may be installed to cause the number |
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182 | 182 | | 9-1-1 to be dialed to gain access to emergency services. |
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183 | 183 | | Sec. 772.565. 9-1-1 EMERGENCY SERVICE FEE. (a) The board |
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184 | 184 | | may impose a 9-1-1 emergency service fee on service users in the |
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185 | 185 | | district. |
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186 | 186 | | (b) The 9-1-1 emergency service fee may be imposed only on |
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187 | 187 | | the base rate charge or the charge's equivalent, excluding charges |
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188 | 188 | | for coin-operated telephone equipment. The fee may not be imposed |
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189 | 189 | | on: |
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190 | 190 | | (1) more than 100 local exchange access lines or the |
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191 | 191 | | lines' equivalent for a single business entity at a single |
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192 | 192 | | location, unless the lines are used by residents of the location; or |
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193 | 193 | | (2) any line that the Commission on State Emergency |
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194 | 194 | | Communications has excluded from the definition of a local exchange |
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195 | 195 | | access line or equivalent local exchange access line under Section |
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196 | 196 | | 771.063. |
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197 | 197 | | (c) If a business service user provides residential |
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198 | 198 | | facilities, each line that terminates at a residential unit and is a |
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199 | 199 | | communication link equivalent to a residential local exchange |
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200 | 200 | | access line shall be charged the 9-1-1 emergency service fee. The |
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201 | 201 | | fee must have uniform application throughout the district and be |
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202 | 202 | | imposed in each participating jurisdiction in the district. |
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203 | 203 | | (d) The rate of the 9-1-1 emergency service fee may not |
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204 | 204 | | exceed 50 cents. |
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205 | 205 | | (e) The board shall set the amount of the 9-1-1 emergency |
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206 | 206 | | service fee each year as part of the annual budget. The board shall |
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207 | 207 | | notify each service supplier of a change in the amount of the fee |
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208 | 208 | | not later than the 91st day before the date the change takes effect. |
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209 | 209 | | (f) In imposing the 9-1-1 emergency service fee, the board |
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210 | 210 | | shall attempt to match the district's revenues to the district's |
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211 | 211 | | operating expenditures and to provide reasonable reserves for |
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212 | 212 | | contingencies and for the purchase and installation of 9-1-1 |
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213 | 213 | | emergency service equipment. If the revenue received from the fee |
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214 | 214 | | exceeds the amount of money needed to fund the district, the board |
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215 | 215 | | by resolution shall reduce the rate of the fee to an amount adequate |
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216 | 216 | | to fund the district as required by this subsection or suspend the |
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217 | 217 | | imposition of the fee. If the board suspends the imposition of the |
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218 | 218 | | fee, the board by resolution may reinstitute the fee if money |
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219 | 219 | | received by the district is not adequate to fund the district. |
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220 | 220 | | (g) For a county or municipality whose governing body at a |
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221 | 221 | | later date votes to receive 9-1-1 service from the district, the |
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222 | 222 | | 9-1-1 emergency service fee is imposed beginning on the date |
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223 | 223 | | specified by the board. The board may charge the incoming county or |
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224 | 224 | | municipality an additional amount of money to cover the initial |
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225 | 225 | | cost of providing 9-1-1 service to that county or municipality. The |
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226 | 226 | | fee authorized to be charged in a district applies to new territory |
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227 | 227 | | added to the district under Section 772.555(b) when the territory |
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228 | 228 | | becomes part of the district. |
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229 | 229 | | Sec. 772.566. COLLECTION OF 9-1-1 EMERGENCY SERVICE FEE. |
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230 | 230 | | (a) Each billed service user is liable for the 9-1-1 emergency |
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231 | 231 | | service fee imposed under Section 772.565 until the fee is paid to |
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232 | 232 | | the service supplier. The fee must be added to and stated |
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233 | 233 | | separately in the service user's bill from the service supplier. |
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234 | 234 | | The service supplier shall collect the fee at the same time as the |
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235 | 235 | | service charge to the service user in accordance with the service |
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236 | 236 | | supplier's regular billing practice. A business service user that |
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237 | 237 | | provides residential facilities and owns or leases a publicly or |
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238 | 238 | | privately owned telephone switch used to provide telephone service |
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239 | 239 | | to facility residents shall collect the fee and transmit the |
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240 | 240 | | collected fees monthly to the district. |
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241 | 241 | | (b) The amount collected by a service supplier from the |
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242 | 242 | | 9-1-1 emergency service fee is due quarterly. The service supplier |
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243 | 243 | | shall remit the amount collected in a calendar quarter to the |
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244 | 244 | | district not later than the 60th day after the last day of the |
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245 | 245 | | calendar quarter. With each payment, the service supplier shall |
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246 | 246 | | file a return in a form prescribed by the board. |
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247 | 247 | | (c) Both a service supplier and a business service user |
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248 | 248 | | under Subsection (a) shall maintain records of the amount of 9-1-1 |
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249 | 249 | | emergency service fees the service supplier or business service |
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250 | 250 | | user collects until at least the second anniversary of the date of |
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251 | 251 | | collection. The board may require, at the board's expense, an |
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252 | 252 | | annual audit of the service supplier's or business service user's |
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253 | 253 | | books and records with respect to the collection and remittance of |
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254 | 254 | | the fees. |
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255 | 255 | | (d) A business service user that does not collect and remit |
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256 | 256 | | the 9-1-1 emergency service fee as required is subject to a civil |
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257 | 257 | | cause of action under Subsection (g). A sworn affidavit by the |
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258 | 258 | | district specifying the unremitted fees is prima facie evidence |
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259 | 259 | | that the fees were not remitted and of the amount of the unremitted |
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260 | 260 | | fees. |
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261 | 261 | | (e) A service supplier may retain an administrative fee of |
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262 | 262 | | two percent of the amount of 9-1-1 emergency service fees the |
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263 | 263 | | service supplier collects under this section. |
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264 | 264 | | (f) A service supplier is not required to take any legal |
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265 | 265 | | action to enforce the collection of the 9-1-1 emergency service |
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266 | 266 | | fee. The service supplier shall provide the district with an annual |
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267 | 267 | | certificate of delinquency that includes the amount of all |
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268 | 268 | | delinquent fees and the name and address of each nonpaying service |
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269 | 269 | | user. The certificate of delinquency is prima facie evidence that a |
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270 | 270 | | fee included in the certificate is delinquent and of the amount of |
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271 | 271 | | the delinquent fee. A service user account is considered |
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272 | 272 | | delinquent if the fee is not paid to the service supplier before the |
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273 | 273 | | 31st day after the payment due date stated on the user's bill from |
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274 | 274 | | the service supplier. |
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275 | 275 | | (g) The district may file legal proceedings against a |
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276 | 276 | | service user to collect 9-1-1 emergency service fees not paid by the |
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277 | 277 | | service user and may establish internal collection procedures and |
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278 | 278 | | recover the cost of collection from the nonpaying service user. If |
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279 | 279 | | legal proceedings are filed by the district, the court may award |
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280 | 280 | | costs, attorney's fees, and interest to be paid by the nonpaying |
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281 | 281 | | service user. A delinquent fee accrues interest at the legal rate |
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282 | 282 | | beginning on the date the payment becomes due. |
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283 | 283 | | Sec. 772.567. DISTRICT DEPOSITORY. (a) The board shall |
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284 | 284 | | select a depository for the district in the manner provided by law |
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285 | 285 | | for the selection of a county depository. |
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286 | 286 | | (b) A depository selected by the board is the district's |
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287 | 287 | | depository until the second anniversary of the date of selection |
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288 | 288 | | and until a successor depository is selected and qualified. |
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289 | 289 | | Sec. 772.568. ALLOWABLE EXPENSES. A district's allowable |
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290 | 290 | | operating expenses include all costs attributable to designing a |
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291 | 291 | | 9-1-1 system and all equipment and personnel necessary to establish |
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292 | 292 | | and operate a public safety answering point and other related |
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293 | 293 | | operations that the board considers necessary. |
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294 | 294 | | Sec. 772.569. NUMBER AND LOCATION IDENTIFICATION. (a) As |
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295 | 295 | | part of computerized 9-1-1 service, a service supplier shall |
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296 | 296 | | furnish, for each call, the telephone number of the subscriber and |
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297 | 297 | | the address associated with the number. |
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298 | 298 | | (b) A business service user that provides residential |
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299 | 299 | | facilities and owns or leases a publicly or privately owned |
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300 | 300 | | telephone switch used to provide telephone service to facility |
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301 | 301 | | residents shall provide to those residential end users the same |
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302 | 302 | | level of 9-1-1 service that a service supplier is required to |
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303 | 303 | | provide under Subsection (a) to other residential end users in the |
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304 | 304 | | district. |
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305 | 305 | | (c) Information furnished under this section is |
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306 | 306 | | confidential and is not available for public inspection. |
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307 | 307 | | (d) A service supplier or business service user under |
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308 | 308 | | Subsection (b) may not be held liable to a person who uses a 9-1-1 |
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309 | 309 | | system created under this subchapter for the release to the |
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310 | 310 | | district of the information specified in Subsections (a) and (b). |
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311 | 311 | | Sec. 772.570. PUBLIC REVIEW. (a) Periodically, the board |
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312 | 312 | | shall solicit public comments and hold a public review hearing on |
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313 | 313 | | the continuation of the district and the 9-1-1 emergency service |
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314 | 314 | | fee. The first hearing shall be held on or before the third |
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315 | 315 | | anniversary of the date of the district's creation. Subsequent |
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316 | 316 | | hearings shall be held on or before the third anniversary of the |
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317 | 317 | | date each resolution required by Subsection (c) is adopted. |
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318 | 318 | | (b) The board shall publish notice of the time and place of a |
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319 | 319 | | hearing once a week for two consecutive weeks in a daily newspaper |
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320 | 320 | | of general circulation published in the district. The first notice |
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321 | 321 | | must be published not later than the 16th day before the date set |
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322 | 322 | | for the hearing. |
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323 | 323 | | (c) After the hearing, the board shall adopt a resolution on |
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324 | 324 | | the continuation or dissolution of the district and the 9-1-1 |
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325 | 325 | | emergency service fee. |
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326 | 326 | | Sec. 772.571. DISSOLUTION PROCEDURES. (a) If a district is |
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327 | 327 | | dissolved, 9-1-1 service must be discontinued. The regional |
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328 | 328 | | planning commission for the district's region shall assume the |
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329 | 329 | | district's assets, provide 9-1-1 service, and pay the district's |
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330 | 330 | | debts. If the district's assets are insufficient to retire all |
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331 | 331 | | existing debts of the district on the date of dissolution, the |
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332 | 332 | | regional planning commission shall continue to impose the 9-1-1 |
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333 | 333 | | emergency service fee, and each service supplier shall continue to |
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334 | 334 | | collect the fee for the regional planning commission. Proceeds |
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335 | 335 | | from the imposition of the fee by the regional planning commission |
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336 | 336 | | after dissolution of the district may be used only to retire the |
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337 | 337 | | outstanding debts of the district. |
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338 | 338 | | (b) The regional planning commission shall retire the |
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339 | 339 | | district's debts to the extent practicable according to the terms |
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340 | 340 | | of the instruments creating the debts and the terms of the |
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341 | 341 | | resolutions authorizing creation of the debts. |
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342 | 342 | | (c) The governing body of the regional planning commission |
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343 | 343 | | for the district's region may adopt rules necessary to administer |
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344 | 344 | | this section. |
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345 | 345 | | Sec. 772.572. ISSUANCE OF BONDS. The board may issue bonds |
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346 | 346 | | in the name of the district to finance: |
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347 | 347 | | (1) the acquisition by any method of facilities, |
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348 | 348 | | equipment, or supplies necessary for the district to provide 9-1-1 |
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349 | 349 | | service to each participating jurisdiction; or |
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350 | 350 | | (2) the installation of equipment necessary for the |
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351 | 351 | | district to provide 9-1-1 service to each participating |
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352 | 352 | | jurisdiction. |
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353 | 353 | | Sec. 772.573. REPAYMENT OF BONDS. The board may provide for |
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354 | 354 | | the payment of principal of and interest on district bonds by |
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355 | 355 | | pledging all or part of the district's revenues from the 9-1-1 |
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356 | 356 | | emergency service fee or from other sources. |
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357 | 357 | | Sec. 772.574. ADDITIONAL SECURITY FOR BONDS. (a) District |
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358 | 358 | | bonds may be additionally secured by a deed of trust or mortgage |
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359 | 359 | | lien on all or part of the district's physical properties and rights |
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360 | 360 | | appurtenant to the properties, vesting in the trustee power to sell |
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361 | 361 | | the properties for payment of the indebtedness, power to operate |
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362 | 362 | | the properties, and any other power necessary for the further |
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363 | 363 | | security of the bonds. |
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364 | 364 | | (b) The bond trust indenture, regardless of the existence of |
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365 | 365 | | a deed of trust or mortgage lien on the properties, may: |
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366 | 366 | | (1) contain provisions prescribed by the board for the |
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367 | 367 | | security of the bonds and the preservation of the trust estate; and |
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368 | 368 | | (2) make provisions for: |
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369 | 369 | | (A) amendment or modification; and |
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370 | 370 | | (B) investment of district funds. |
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371 | 371 | | (c) A purchaser under a sale under the deed of trust or |
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372 | 372 | | mortgage lien is the absolute owner of the properties and rights |
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373 | 373 | | purchased and may maintain and operate the properties. |
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374 | 374 | | Sec. 772.575. FORM OF BONDS. (a) A district may issue |
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375 | 375 | | bonds in various series or issues. |
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376 | 376 | | (b) Bonds may mature serially or otherwise not more than 25 |
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377 | 377 | | years after the bonds' date of issuance. Bonds shall bear interest |
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378 | 378 | | at any rate permitted by state law. |
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379 | 379 | | (c) A district's bonds and interest coupons: |
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380 | 380 | | (1) are investment securities under Chapter 8, |
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381 | 381 | | Business & Commerce Code; |
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382 | 382 | | (2) may be issued registrable as to principal or to |
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383 | 383 | | both principal and interest; and |
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384 | 384 | | (3) may be made redeemable before maturity or contain |
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385 | 385 | | a mandatory redemption provision at the option of the district. |
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386 | 386 | | (d) A district may issue bonds in the form, denomination, |
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387 | 387 | | and manner and under the terms and conditions provided by the board |
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388 | 388 | | in the resolution authorizing the bonds' issuance. The bonds must |
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389 | 389 | | be signed and executed as provided by the board in the resolution. |
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390 | 390 | | Sec. 772.576. PROVISIONS OF BONDS. (a) In this section, |
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391 | 391 | | "resolution" means a board resolution authorizing the issuance of |
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392 | 392 | | bonds, including refunding bonds. |
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393 | 393 | | (b) In a resolution, the board may: |
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394 | 394 | | (1) provide for the flow of funds and the |
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395 | 395 | | establishment and maintenance of an interest and sinking fund, |
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396 | 396 | | reserve fund, or other fund; and |
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397 | 397 | | (2) make additional covenants with respect to the |
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398 | 398 | | bonds, the pledged revenues, and the operation and maintenance of |
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399 | 399 | | any facilities the revenue of which is pledged. |
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400 | 400 | | (c) A resolution may: |
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401 | 401 | | (1) prohibit the further issuance of bonds or other |
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402 | 402 | | obligations payable from the pledged revenue; or |
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403 | 403 | | (2) reserve the right to issue additional bonds to be |
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404 | 404 | | secured by a pledge of and payable from the revenue on a parity with |
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405 | 405 | | or subordinate to the lien and pledge in support of the bonds being |
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406 | 406 | | issued. |
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407 | 407 | | (d) A resolution may contain other provisions and covenants |
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408 | 408 | | determined by the board. |
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409 | 409 | | (e) The board may adopt and have executed any other |
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410 | 410 | | proceedings or instruments necessary or convenient for issuance of |
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411 | 411 | | bonds. |
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412 | 412 | | Sec. 772.577. APPROVAL AND REGISTRATION OF BONDS. (a) |
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413 | 413 | | Bonds issued by a district must be submitted to the attorney general |
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414 | 414 | | for examination. |
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415 | 415 | | (b) If the attorney general finds that the bonds have been |
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416 | 416 | | authorized in accordance with law, the attorney general shall |
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417 | 417 | | approve the bonds. On approval by the attorney general, the |
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418 | 418 | | comptroller shall register the bonds. |
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419 | 419 | | (c) After approval and registration, the bonds are |
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420 | 420 | | incontestable in any court or other forum for any reason and are |
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421 | 421 | | valid and binding obligations in accordance with the bonds' terms |
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422 | 422 | | for all purposes. |
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423 | 423 | | Sec. 772.578. REFUNDING BONDS. (a) A district may issue |
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424 | 424 | | bonds to refund all or any part of the district's outstanding bonds, |
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425 | 425 | | including matured and unpaid interest coupons. |
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426 | 426 | | (b) Refunding bonds shall mature serially or otherwise, as |
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427 | 427 | | determined by the board, not more than 25 years after the bonds' |
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428 | 428 | | date of issuance. Bonds shall bear interest at any rate permitted |
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429 | 429 | | by state law. |
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430 | 430 | | (c) Refunding bonds may be payable from the same source as |
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431 | 431 | | the bonds being refunded or from other sources. |
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432 | 432 | | (d) Refunding bonds must be approved by the attorney general |
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433 | 433 | | in the same manner as the district's other bonds. The comptroller |
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434 | 434 | | shall register the refunding bonds on the surrender and |
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435 | 435 | | cancellation of the bonds being refunded. |
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436 | 436 | | (e) A resolution authorizing the issuance of refunding |
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437 | 437 | | bonds may provide that the bonds be sold and the proceeds deposited |
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438 | 438 | | in a place at which the bonds being refunded are payable, in which |
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439 | 439 | | case the refunding bonds may be issued before the cancellation of |
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440 | 440 | | the bonds being refunded. If refunding bonds are issued before |
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441 | 441 | | cancellation of the other bonds, an amount sufficient to pay the |
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442 | 442 | | principal of the bonds being refunded and interest on those bonds |
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443 | 443 | | accruing to the bonds' maturity dates or option dates, if the bonds |
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444 | 444 | | have been duly called for payment before maturity according to the |
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445 | 445 | | bonds' terms, must be deposited in the place at which the bonds |
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446 | 446 | | being refunded are payable. The comptroller shall register the |
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447 | 447 | | refunding bonds without the surrender and cancellation of the bonds |
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448 | 448 | | being refunded. |
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449 | 449 | | (f) A refunding may be accomplished in one or more |
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450 | 450 | | installment deliveries. Refunding bonds and the bonds' interest |
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451 | 451 | | coupons are investment securities under Chapter 8, Business & |
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452 | 452 | | Commerce Code. |
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453 | 453 | | (g) Instead of the method set forth in Subsections (a)-(f), |
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454 | 454 | | a district may refund bonds, notes, or other obligations as |
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455 | 455 | | provided by the general laws of this state. |
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456 | 456 | | Sec. 772.579. BONDS AS INVESTMENTS AND SECURITY FOR |
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457 | 457 | | DEPOSITS. (a) District bonds are legal and authorized investments |
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458 | 458 | | for: |
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459 | 459 | | (1) a bank; |
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460 | 460 | | (2) a savings bank; |
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461 | 461 | | (3) a credit union; |
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462 | 462 | | (4) a trust company; |
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463 | 463 | | (5) a savings and loan association; |
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464 | 464 | | (6) an insurance company; |
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465 | 465 | | (7) a fiduciary; |
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466 | 466 | | (8) a trustee; |
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467 | 467 | | (9) a guardian; and |
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468 | 468 | | (10) a sinking fund of a municipality, county, school |
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469 | 469 | | district, special district, and other political subdivision of this |
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470 | 470 | | state and other public funds of this state and state agencies, |
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471 | 471 | | including the permanent school fund. |
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472 | 472 | | (b) District bonds may secure deposits of public funds of |
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473 | 473 | | the state or a municipality, county, school district, or other |
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474 | 474 | | political subdivision of this state. The bonds are lawful and |
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475 | 475 | | sufficient security for deposits to the extent of the bonds' value |
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476 | 476 | | if accompanied by all unmatured coupons. |
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477 | 477 | | (c) District bonds are authorized investments under Chapter |
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478 | 478 | | 2256, Government Code. |
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479 | 479 | | Sec. 772.580. EXEMPTION FROM TAXATION. A bond issued by the |
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480 | 480 | | district under this subchapter, any transaction relating to the |
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481 | 481 | | bond, and profits made in the sale or redemption of the bond are |
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482 | 482 | | exempt from taxation by the state or by any municipality, county, |
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483 | 483 | | special district, or other political subdivision of this state. |
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484 | 484 | | Sec. 772.581. TRANSFER OF ASSETS. If a regional emergency |
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485 | 485 | | communications district is established under this subchapter, the |
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486 | 486 | | regional planning commission for the region in which the district |
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487 | 487 | | is established may transfer to the district any land, buildings, |
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488 | 488 | | improvements, equipment, and other assets acquired by the regional |
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489 | 489 | | planning commission in relation to the provision of 9-1-1 service. |
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490 | 490 | | SECTION 2. Section 771.001(3), Health and Safety Code, is |
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491 | 491 | | amended to read as follows: |
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492 | 492 | | (3) "Emergency communication district" means: |
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493 | 493 | | (A) a public agency or group of public agencies |
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494 | 494 | | acting jointly that provided 9-1-1 service before September 1, |
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495 | 495 | | 1987, or that had voted or contracted before that date to provide |
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496 | 496 | | that service; or |
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497 | 497 | | (B) a district created under Subchapter B, C, D, |
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498 | 498 | | F, [or] G, or H, Chapter 772. |
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499 | 499 | | SECTION 3. This Act takes effect September 1, 2015. |
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500 | 500 | | * * * * * |
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