By: Aycock (Senate Sponsor - Fraser) H.B. No. 737
(In the Senate - Received from the House April 29, 2015;
April 30, 2015, read first time and referred to Committee on
Intergovernmental Relations; May 22, 2015, reported favorably by
the following vote: Yeas 5, Nays 1; May 22, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE VOTE
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A BILL TO BE ENTITLED
AN ACT
relating to the creation of regional emergency communications
districts; authorizing the issuance of bonds; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 772, Health and Safety Code, is amended
by adding Subchapter H to read as follows:
SUBCHAPTER H. REGIONAL EMERGENCY COMMUNICATIONS DISTRICTS:
CERTAIN STATE PLANNING REGIONS WITH POPULATIONS OF AT LEAST 425,000
Sec. 772.551. DEFINITIONS. In this subchapter:
(1) "Board" means the board of managers of a district.
(2) "District" means a regional emergency
communications district created under this subchapter.
(3) "Participating jurisdiction" means a county or
principal municipality that adopts a resolution to participate in a
district created under this subchapter.
(4) "Principal municipality" means the municipality
with the largest population in a region.
(5) "Region" means a state planning region established
under Chapter 391, Local Government Code.
(6) "Regional planning commission" means a commission
or council of governments created under Chapter 391, Local
Government Code, for a designated region.
Sec. 772.552. APPLICATION OF SUBCHAPTER. This subchapter
applies to a region:
(1) with a population of at least 425,000;
(2) composed of counties each with a population of
4,500 or more but less than 311,000;
(3) composed of counties and municipalities that
operate a 9-1-1 system solely through a regional planning
commission; and
(4) in which the governing bodies of each county and
the principal municipality in the region adopt a resolution under
Section 772.553 to participate in the district.
Sec. 772.553. CREATION OF DISTRICT. (a) A district is
created when the governing bodies of each county and the principal
municipality in a region adopt a resolution approving the
district's creation and the county's or municipality's
participation in the district. The district's creation is
effective on the date the last governing body of the counties and
the principal municipality that comprise the region adopts the
resolution.
(b) The district shall file with the county clerk of each
county that comprises the district a certificate declaring the
creation of the district.
Sec. 772.554. POLITICAL SUBDIVISION; DISTRICT POWERS. (a)
A district is a political subdivision of this state created to carry
out essential governmental functions.
(b) A district may exercise all powers necessary or
convenient to carry out the purposes and provisions of this
subchapter.
Sec. 772.555. TERRITORY OF DISTRICT. (a) The territory of
a district consists of:
(1) the territory of the region in which the district
is established; and
(2) for each municipality partially located in the
region, the territory of that municipality located in another
region.
(b) If a municipality in the district annexes territory that
is outside the boundaries of the district, the annexed territory
becomes part of the district.
Sec. 772.556. BOARD. (a) A district is governed by a board
of managers composed of the members of the governing body of the
regional planning commission for the region in which the district
is established. Service on the board by a member of the governing
body is an additional duty of the member's office or employment.
(b) A board member serves without compensation. The
district shall pay all reasonable expenses necessarily incurred by
the board member in performing the board's functions under this
subchapter.
(c) A majority of the voting members of the board
constitutes a quorum.
Sec. 772.557. POWERS AND DUTIES OF BOARD. (a) The board
shall name, control, and manage the district.
(b) The board may adopt orders, rules, and policies
governing the operations of the board and the district.
(c) The board may contract with any person to carry out the
purposes of this subchapter.
(d) The board shall determine the nature and sources of
funding for the district. The board may accept grants or other
funding from the federal or state government, a county, a
municipality, or a private person.
(e) The board may sue in the district's name.
Sec. 772.558. ADVISORY COMMITTEE. (a) The board shall
appoint an advisory committee consisting of representatives of the
participating jurisdictions. The advisory committee shall review,
advise, and provide recommendations to the board on district
issues, including equipment, training, budget, and general
operational issues.
(b) An advisory committee member must have the training and
experience necessary to perform the duties assigned by the board.
(c) Chapter 2110, Government Code, does not apply to the
advisory committee.
Sec. 772.559. DIRECTOR OF DISTRICT; STAFF. (a) The
executive director of the regional planning commission in the
district's region serves as director of the district.
(b) The director shall:
(1) perform all duties required by the board;
(2) ensure that board policies and procedures are
implemented for the purposes of this subchapter; and
(3) assign employees of the regional planning
commission to perform duties under this subchapter as necessary to
carry out the district's operations.
(c) The director may use district money to compensate an
employee assigned duties under this subchapter and the director.
(d) The director and an employee assigned duties under this
subchapter are employees of the regional planning commission for
all purposes.
Sec. 772.560. BUDGET; ANNUAL REPORT; AUDIT. (a) The
director shall prepare, under the direction of the board, an annual
budget for the district. The budget and any revision of the budget
must be approved by the board.
(b) As soon as practicable after the end of each district
fiscal year, the director shall prepare and present to the board a
written report of all money received by the district and district
expenditures for the preceding fiscal year. The report must show,
in detail, the operations of the district for the period covered by
the report.
(c) The board annually shall have an independent financial
audit made of the district.
Sec. 772.561. PROVISION OF 9-1-1 SERVICE. (a) A district
shall provide 9-1-1 service to each participating jurisdiction
through one or a combination of the following methods and features
or equivalent state-of-the-art technology:
(1) the transfer method;
(2) the relay method;
(3) the dispatch method;
(4) automatic number identification;
(5) automatic location identification; or
(6) selective routing.
(b) The district shall recommend minimum standards for a
9-1-1 system. The 9-1-1 system must be computerized.
(c) For each individual telephone subscriber in the
district, 9-1-1 service is mandatory and is not an optional service
under any definition of terms relating to telephone service.
Sec. 772.562. LIABILITY. A service supplier involved in
providing 9-1-1 service, a manufacturer of equipment used in
providing 9-1-1 service, or an officer or employee of a service
supplier involved in providing 9-1-1 service may not be held liable
for any claim, damage, or loss arising from the provision of 9-1-1
service unless the act or omission proximately causing the claim,
damage, or loss constitutes gross negligence, recklessness, or
intentional misconduct.
Sec. 772.563. PRIMARY EMERGENCY TELEPHONE NUMBER. The
digits 9-1-1 are the primary emergency telephone number in a
district. A public safety agency whose services are available
through a 9-1-1 system:
(1) may maintain a separate number for an emergency
telephone call; and
(2) shall maintain a separate number for a
nonemergency telephone call.
Sec. 772.564. TRANSMITTING REQUESTS FOR EMERGENCY AID. (a)
A 9-1-1 system established under this subchapter must be capable of
transmitting requests for firefighting, law enforcement,
ambulance, and medical services to a public safety agency that
provides the requested service at the location from which the call
originates. A 9-1-1 system may provide for transmitting requests
for other emergency services, including poison control, suicide
prevention, and civil defense.
(b) A public safety answering point may transmit emergency
response requests to private safety entities.
(c) With the consent of a participating jurisdiction, a
privately owned automatic intrusion alarm or other privately owned
automatic alerting device may be installed to cause the number
9-1-1 to be dialed to gain access to emergency services.
Sec. 772.565. 9-1-1 EMERGENCY SERVICE FEE. (a) The board
may impose a 9-1-1 emergency service fee on service users in the
district.
(b) The 9-1-1 emergency service fee may be imposed only on
the base rate charge or the charge's equivalent, excluding charges
for coin-operated telephone equipment. The fee may not be imposed
on:
(1) more than 100 local exchange access lines or the
lines' equivalent for a single business entity at a single
location, unless the lines are used by residents of the location; or
(2) any line that the Commission on State Emergency
Communications has excluded from the definition of a local exchange
access line or equivalent local exchange access line under Section
771.063.
(c) If a business service user provides residential
facilities, each line that terminates at a residential unit and is a
communication link equivalent to a residential local exchange
access line shall be charged the 9-1-1 emergency service fee. The
fee must have uniform application throughout the district and be
imposed in each participating jurisdiction in the district.
(d) The rate of the 9-1-1 emergency service fee may not
exceed 50 cents.
(e) The board shall set the amount of the 9-1-1 emergency
service fee each year as part of the annual budget. The board shall
notify each service supplier of a change in the amount of the fee
not later than the 91st day before the date the change takes effect.
(f) In imposing the 9-1-1 emergency service fee, the board
shall attempt to match the district's revenues to the district's
operating expenditures and to provide reasonable reserves for
contingencies and for the purchase and installation of 9-1-1
emergency service equipment. If the revenue received from the fee
exceeds the amount of money needed to fund the district, the board
by resolution shall reduce the rate of the fee to an amount adequate
to fund the district as required by this subsection or suspend the
imposition of the fee. If the board suspends the imposition of the
fee, the board by resolution may reinstitute the fee if money
received by the district is not adequate to fund the district.
(g) For a county or municipality whose governing body at a
later date votes to receive 9-1-1 service from the district, the
9-1-1 emergency service fee is imposed beginning on the date
specified by the board. The board may charge the incoming county or
municipality an additional amount of money to cover the initial
cost of providing 9-1-1 service to that county or municipality. The
fee authorized to be charged in a district applies to new territory
added to the district under Section 772.555(b) when the territory
becomes part of the district.
Sec. 772.566. COLLECTION OF 9-1-1 EMERGENCY SERVICE FEE.
(a) Each billed service user is liable for the 9-1-1 emergency
service fee imposed under Section 772.565 until the fee is paid to
the service supplier. The fee must be added to and stated
separately in the service user's bill from the service supplier.
The service supplier shall collect the fee at the same time as the
service charge to the service user in accordance with the service
supplier's regular billing practice. A business service user that
provides residential facilities and owns or leases a publicly or
privately owned telephone switch used to provide telephone service
to facility residents shall collect the fee and transmit the
collected fees monthly to the district.
(b) The amount collected by a service supplier from the
9-1-1 emergency service fee is due quarterly. The service supplier
shall remit the amount collected in a calendar quarter to the
district not later than the 60th day after the last day of the
calendar quarter. With each payment, the service supplier shall
file a return in a form prescribed by the board.
(c) Both a service supplier and a business service user
under Subsection (a) shall maintain records of the amount of 9-1-1
emergency service fees the service supplier or business service
user collects until at least the second anniversary of the date of
collection. The board may require, at the board's expense, an
annual audit of the service supplier's or business service user's
books and records with respect to the collection and remittance of
the fees.
(d) A business service user that does not collect and remit
the 9-1-1 emergency service fee as required is subject to a civil
cause of action under Subsection (g). A sworn affidavit by the
district specifying the unremitted fees is prima facie evidence
that the fees were not remitted and of the amount of the unremitted
fees.
(e) A service supplier may retain an administrative fee of
two percent of the amount of 9-1-1 emergency service fees the
service supplier collects under this section.
(f) A service supplier is not required to take any legal
action to enforce the collection of the 9-1-1 emergency service
fee. The service supplier shall provide the district with an annual
certificate of delinquency that includes the amount of all
delinquent fees and the name and address of each nonpaying service
user. The certificate of delinquency is prima facie evidence that a
fee included in the certificate is delinquent and of the amount of
the delinquent fee. A service user account is considered
delinquent if the fee is not paid to the service supplier before the
31st day after the payment due date stated on the user's bill from
the service supplier.
(g) The district may file legal proceedings against a
service user to collect 9-1-1 emergency service fees not paid by the
service user and may establish internal collection procedures and
recover the cost of collection from the nonpaying service user. If
legal proceedings are filed by the district, the court may award
costs, attorney's fees, and interest to be paid by the nonpaying
service user. A delinquent fee accrues interest at the legal rate
beginning on the date the payment becomes due.
Sec. 772.567. DISTRICT DEPOSITORY. (a) The board shall
select a depository for the district in the manner provided by law
for the selection of a county depository.
(b) A depository selected by the board is the district's
depository until the second anniversary of the date of selection
and until a successor depository is selected and qualified.
Sec. 772.568. ALLOWABLE EXPENSES. A district's allowable
operating expenses include all costs attributable to designing a
9-1-1 system and all equipment and personnel necessary to establish
and operate a public safety answering point and other related
operations that the board considers necessary.
Sec. 772.569. NUMBER AND LOCATION IDENTIFICATION. (a) As
part of computerized 9-1-1 service, a service supplier shall
furnish, for each call, the telephone number of the subscriber and
the address associated with the number.
(b) A business service user that provides residential
facilities and owns or leases a publicly or privately owned
telephone switch used to provide telephone service to facility
residents shall provide to those residential end users the same
level of 9-1-1 service that a service supplier is required to
provide under Subsection (a) to other residential end users in the
district.
(c) Information furnished under this section is
confidential and is not available for public inspection.
(d) A service supplier or business service user under
Subsection (b) may not be held liable to a person who uses a 9-1-1
system created under this subchapter for the release to the
district of the information specified in Subsections (a) and (b).
Sec. 772.570. PUBLIC REVIEW. (a) Periodically, the board
shall solicit public comments and hold a public review hearing on
the continuation of the district and the 9-1-1 emergency service
fee. The first hearing shall be held on or before the third
anniversary of the date of the district's creation. Subsequent
hearings shall be held on or before the third anniversary of the
date each resolution required by Subsection (c) is adopted.
(b) The board shall publish notice of the time and place of a
hearing once a week for two consecutive weeks in a daily newspaper
of general circulation published in the district. The first notice
must be published not later than the 16th day before the date set
for the hearing.
(c) After the hearing, the board shall adopt a resolution on
the continuation or dissolution of the district and the 9-1-1
emergency service fee.
Sec. 772.571. DISSOLUTION PROCEDURES. (a) If a district is
dissolved, 9-1-1 service must be discontinued. The regional
planning commission for the district's region shall assume the
district's assets, provide 9-1-1 service, and pay the district's
debts. If the district's assets are insufficient to retire all
existing debts of the district on the date of dissolution, the
regional planning commission shall continue to impose the 9-1-1
emergency service fee, and each service supplier shall continue to
collect the fee for the regional planning commission. Proceeds
from the imposition of the fee by the regional planning commission
after dissolution of the district may be used only to retire the
outstanding debts of the district.
(b) The regional planning commission shall retire the
district's debts to the extent practicable according to the terms
of the instruments creating the debts and the terms of the
resolutions authorizing creation of the debts.
(c) The governing body of the regional planning commission
for the district's region may adopt rules necessary to administer
this section.
Sec. 772.572. ISSUANCE OF BONDS. The board may issue bonds
in the name of the district to finance:
(1) the acquisition by any method of facilities,
equipment, or supplies necessary for the district to provide 9-1-1
service to each participating jurisdiction; or
(2) the installation of equipment necessary for the
district to provide 9-1-1 service to each participating
jurisdiction.
Sec. 772.573. REPAYMENT OF BONDS. The board may provide for
the payment of principal of and interest on district bonds by
pledging all or part of the district's revenues from the 9-1-1
emergency service fee or from other sources.
Sec. 772.574. ADDITIONAL SECURITY FOR BONDS. (a) District
bonds may be additionally secured by a deed of trust or mortgage
lien on all or part of the district's physical properties and rights
appurtenant to the properties, vesting in the trustee power to sell
the properties for payment of the indebtedness, power to operate
the properties, and any other power necessary for the further
security of the bonds.
(b) The bond trust indenture, regardless of the existence of
a deed of trust or mortgage lien on the properties, may:
(1) contain provisions prescribed by the board for the
security of the bonds and the preservation of the trust estate; and
(2) make provisions for:
(A) amendment or modification; and
(B) investment of district funds.
(c) A purchaser under a sale under the deed of trust or
mortgage lien is the absolute owner of the properties and rights
purchased and may maintain and operate the properties.
Sec. 772.575. FORM OF BONDS. (a) A district may issue
bonds in various series or issues.
(b) Bonds may mature serially or otherwise not more than 25
years after the bonds' date of issuance. Bonds shall bear interest
at any rate permitted by state law.
(c) A district's bonds and interest coupons:
(1) are investment securities under Chapter 8,
Business & Commerce Code;
(2) may be issued registrable as to principal or to
both principal and interest; and
(3) may be made redeemable before maturity or contain
a mandatory redemption provision at the option of the district.
(d) A district may issue bonds in the form, denomination,
and manner and under the terms and conditions provided by the board
in the resolution authorizing the bonds' issuance. The bonds must
be signed and executed as provided by the board in the resolution.
Sec. 772.576. PROVISIONS OF BONDS. (a) In this section,
"resolution" means a board resolution authorizing the issuance of
bonds, including refunding bonds.
(b) In a resolution, the board may:
(1) provide for the flow of funds and the
establishment and maintenance of an interest and sinking fund,
reserve fund, or other fund; and
(2) make additional covenants with respect to the
bonds, the pledged revenues, and the operation and maintenance of
any facilities the revenue of which is pledged.
(c) A resolution may:
(1) prohibit the further issuance of bonds or other
obligations payable from the pledged revenue; or
(2) reserve the right to issue additional bonds to be
secured by a pledge of and payable from the revenue on a parity with
or subordinate to the lien and pledge in support of the bonds being
issued.
(d) A resolution may contain other provisions and covenants
determined by the board.
(e) The board may adopt and have executed any other
proceedings or instruments necessary or convenient for issuance of
bonds.
Sec. 772.577. APPROVAL AND REGISTRATION OF BONDS. (a)
Bonds issued by a district must be submitted to the attorney general
for examination.
(b) If the attorney general finds that the bonds have been
authorized in accordance with law, the attorney general shall
approve the bonds. On approval by the attorney general, the
comptroller shall register the bonds.
(c) After approval and registration, the bonds are
incontestable in any court or other forum for any reason and are
valid and binding obligations in accordance with the bonds' terms
for all purposes.
Sec. 772.578. REFUNDING BONDS. (a) A district may issue
bonds to refund all or any part of the district's outstanding bonds,
including matured and unpaid interest coupons.
(b) Refunding bonds shall mature serially or otherwise, as
determined by the board, not more than 25 years after the bonds'
date of issuance. Bonds shall bear interest at any rate permitted
by state law.
(c) Refunding bonds may be payable from the same source as
the bonds being refunded or from other sources.
(d) Refunding bonds must be approved by the attorney general
in the same manner as the district's other bonds. The comptroller
shall register the refunding bonds on the surrender and
cancellation of the bonds being refunded.
(e) A resolution authorizing the issuance of refunding
bonds may provide that the bonds be sold and the proceeds deposited
in a place at which the bonds being refunded are payable, in which
case the refunding bonds may be issued before the cancellation of
the bonds being refunded. If refunding bonds are issued before
cancellation of the other bonds, an amount sufficient to pay the
principal of the bonds being refunded and interest on those bonds
accruing to the bonds' maturity dates or option dates, if the bonds
have been duly called for payment before maturity according to the
bonds' terms, must be deposited in the place at which the bonds
being refunded are payable. The comptroller shall register the
refunding bonds without the surrender and cancellation of the bonds
being refunded.
(f) A refunding may be accomplished in one or more
installment deliveries. Refunding bonds and the bonds' interest
coupons are investment securities under Chapter 8, Business &
Commerce Code.
(g) Instead of the method set forth in Subsections (a)-(f),
a district may refund bonds, notes, or other obligations as
provided by the general laws of this state.
Sec. 772.579. BONDS AS INVESTMENTS AND SECURITY FOR
DEPOSITS. (a) District bonds are legal and authorized investments
for:
(1) a bank;
(2) a savings bank;
(3) a credit union;
(4) a trust company;
(5) a savings and loan association;
(6) an insurance company;
(7) a fiduciary;
(8) a trustee;
(9) a guardian; and
(10) a sinking fund of a municipality, county, school
district, special district, and other political subdivision of this
state and other public funds of this state and state agencies,
including the permanent school fund.
(b) District bonds may secure deposits of public funds of
the state or a municipality, county, school district, or other
political subdivision of this state. The bonds are lawful and
sufficient security for deposits to the extent of the bonds' value
if accompanied by all unmatured coupons.
(c) District bonds are authorized investments under Chapter
2256, Government Code.
Sec. 772.580. EXEMPTION FROM TAXATION. A bond issued by the
district under this subchapter, any transaction relating to the
bond, and profits made in the sale or redemption of the bond are
exempt from taxation by the state or by any municipality, county,
special district, or other political subdivision of this state.
Sec. 772.581. TRANSFER OF ASSETS. If a regional emergency
communications district is established under this subchapter, the
regional planning commission for the region in which the district
is established may transfer to the district any land, buildings,
improvements, equipment, and other assets acquired by the regional
planning commission in relation to the provision of 9-1-1 service.
SECTION 2. Section 771.001(3), Health and Safety Code, is
amended to read as follows:
(3) "Emergency communication district" means:
(A) a public agency or group of public agencies
acting jointly that provided 9-1-1 service before September 1,
1987, or that had voted or contracted before that date to provide
that service; or
(B) a district created under Subchapter B, C, D,
F, [or] G, or H, Chapter 772.
SECTION 3. This Act takes effect September 1, 2015.
* * * * *