88R14962 MCF-D By: Cortez H.B. No. 2633 Substitute the following for H.B. No. 2633: By: Rosenthal C.S.H.B. No. 2633 A BILL TO BE ENTITLED AN ACT relating to conditions imposed on an emergency services district that includes territory in the extraterritorial jurisdiction of certain municipalities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 775.014, Health and Safety Code, is amended by adding Subsection (h-1) and amending Subsection (i) to read as follows: (h-1) The board of an emergency services district created before September 1, 2023, that is subject to conditions negotiated under Subsection (h) as that subsection existed immediately before September 1, 2023, may hold an election to submit to the qualified voters of the district the question of whether to terminate the negotiated conditions under that subsection. If a majority of the votes cast in the election favor the termination of the conditions, the conditions are terminated and have no effect. The board of a district described by this subsection may not hold an election under this subsection if the termination of the conditions would impair: (1) a contract entered into by the board; or (2) the rights of the holders of any outstanding and unpaid bonds or other debt. (i) If a [A] request [submitted] under this section is submitted to a municipality that has a population of more than one million and the majority of the territory inside the municipality's corporate boundaries is located inside a county with a population of less than 2.1 million, the request [described by Subsection (h)] must include: (1) a copy of the petition submitted under Section 775.015; and (2) a sufficient legal description of the portion of the municipality and its extraterritorial jurisdiction that would be included in the district territory. SECTION 2. Section 775.016(c), Health and Safety Code, is amended to read as follows: (c) The commissioners court has exclusive jurisdiction to determine each issue relating to the creation of the district[, including any matters negotiated with a consenting municipality under Section 775.014(h),] and may issue incidental orders it considers proper in relation to the issues before the commissioners court. The commissioners court may adjourn the hearing as necessary. SECTION 3. Section 775.017(a), Health and Safety Code, is amended to read as follows: (a) If after the hearing the commissioners court finds that creation of the district is feasible and will promote the public safety, welfare, health, and convenience of persons residing in the proposed district, the commissioners court shall grant the petition and [,] fix the district's boundaries[, and impose any conditions negotiated under Section 775.014(h)]. If the proposed district, according to its boundaries stated in the petition, is located wholly in a county with a population of more than 3.3 million, the commissioners court may amend the petition to change the boundaries of the proposed district if the commissioners court finds the change is necessary or desirable. For the purposes of this provision, the population of the county is determined according to the most recent federal decennial census available at the time the petition is filed. SECTION 4. Section 775.018(a), Health and Safety Code, is amended to read as follows: (a) On the granting of a petition, the commissioners court shall order an election to confirm the district's creation and authorize the imposition of a tax not to exceed the rate allowed by Section 48-e, Article III, Texas Constitution. [Any conditions negotiated under Section 775.014(h) must be included on the ballot.] SECTION 5. Section 775.019(b), Health and Safety Code, is amended to read as follows: (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 creating the district [subject to any conditions negotiated under Section 775.014(h)] 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 775.017 are favorable to the district's creation. SECTION 6. Section 775.022(g), Health and Safety Code, is amended to read as follows: (g) The amount of compensation under Subsection (c) shall be determined under Subsection (e) regardless of whether Subsection (e-1) would yield a greater amount if: (1) the municipality has a population of more than one million and the majority of the territory inside the municipality's corporate boundaries is located inside a county with a population of less than 2.1 million [is a municipality described by Section 775.014(h)]; and (2) the municipality and the district enter into an agreement on or before September 1, 2019, regarding the district's bonded and other indebtedness. SECTION 7. The following sections of the Health and Safety Code are repealed: (1) Section 775.014(h); (2) Section 775.019(f); and (3) Section 775.031(e). SECTION 8. This Act takes effect September 1, 2023.