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82nd Legislature & ESDs SAFE-D 11th Annual Conference      February 23, 2012                           2705 Bee Cave Road,...
Bills of Interest•   SB 917 – ESD Omnibus Bill•   SB 100 – MOVE Act Implementation•   SB 326 – Goods-In-Transit•   HB 628 ...
SB 917• Author: Senator Jeff Wentworth• House Sponsor: Representative Doug  Miller• Effective Date: June 17, 2011.        ...
SB 917•   Overlapping Districts•   Consolidation of Districts•   Fireworks Regulation•   Commissioner Training•   Removal ...
Overlapping Districts (SB 917)• Adds requirements for proposed districts  whose territories overlap existing  districts (e...
Overlapping Districts (SB 917)• Amends Chapter 775.0205, which  prohibited the most recently created  district from provid...
Overlapping Districts (SB 917) – Eliminates the prohibition – adds a reference to the statement of   services that the exi...
Overlapping Districts (SB 917)– Authorizes a person to serve as commissioner of  two districts with overlapping territory,...
Service Contracts (SB 917)• Authorizes board to contract with local governments,  including other districts, to provide ne...
Consolidation (SB 917)• The voters in every district included  in a proposed merger were required to  approve the merger i...
Consolidation (SB 917)• The amendment provides the following:  – Every district whose voters approve the    consolidation ...
Consolidation (SB 917)– Before consolidation, participating districts  must:  • determine that the consolidation will prov...
Consolidation (SB 917)• The joint order must include:   – the new name and territory included in the     consolidated dist...
Consolidation (SB 917)– Commissioners are will be appointed (or  designated by statute in cases where existing  commission...
Consolidations (SB 917)– If the districts have different  maximum ad valorem tax rates:  • The district with the lowest ma...
Consolidations (SB 917)– If the districts have differing sales and  use tax rates:  • The consolidated district must desig...
Fireworks (SB 917)• A district may not regulate the sale, use or  transportation of fireworks, except as provided  in Sect...
Training (SB 917)• Requires at least six hours of certified  continuing education at least once in a two-  year period and...
Removal (SB 917)        Appointed Commissioners• Language specifies that the section does not  apply unless adopted by the...
Removal (SB 917)         Appointed Commissioners• Removal deliberation is made subject to  551.0745, Government Code (prov...
Removal (SB 917)             Elected Commissioners• Section requires use of the procedures set forth  in the Local Governm...
Budget and Tax Rate (SB 917)• Prohibits the board from setting the tax rate  for a fiscal year before adopting the budget....
Audits (SB 917)• If a district fails to complete and file the  required audit report by September 1 and a  county auditor ...
775.085 Loans (SB 917)• Clarifies that loans under 775.085 are  not subject to the requirement to hold  an election to app...
776 ESDs Conversion (SB 917)• Repealed Chapter 776 of the Texas  Health & Safety Code and converted  all of the districts ...
Other Legislation                    2705 Bee Cave Road, Suite 110                              Austin, Texas 78746       ...
SB 100• Implements Federal MOVE Act  – Military and Overseas Voter    Empowerment Act• Electronic Ballot Transmission and ...
SB 100• Applies to:  – Elections with Federal Office  – Elections to fill vacancy in State    Legislature  – Any election ...
SB 100• Affects:  – Runoff Election Timing  – Deadline for Ordering Elections  – May Uniform Election Date                ...
SB 100• Prior to SB 100, primary elections and  any related runoff would have been  concluded by the time the May uniform ...
SB 100• This creates logistical problems with  regard to reprogramming electronic  voting systems between elections, among...
SB 100• County Election Administrator initially  opposed continuing to provide election  services• Recently, many have dec...
SB 326     (passed as part of SB 1)• Goods-In-Transit  – Must Hold Public Hearing regarding    taxation of Goods-In-Transi...
SB 326      (passed as part of SB 1)• “Goods-in-transit”  – Tangible personal property  – Stored (pursuant to a contract f...
HB 628• Creates Government Code Chapter  2267 related to government contracts  for public works• Repeals alternative biddi...
HB 628• Public works include buildings and  other public facilities• Prevails over any other laws related to  public works...
HB 628• Competitive Bidding• Competitive Sealed Proposals• Construction Manager-Agent Method  (“CMA”)• Construction Manage...
SB 1477• Allows differential pay and extension of  insurance benefits to person called to active  duty  – Members of State...
HB 2690• A political subdivision may donate or sell for less  than fair market value land or an interest in real  property...
Interim Issues                 2705 Bee Cave Road, Suite 110                           Austin, Texas 78746                ...
Issues of Concern• Election of ESD Commissioners• Competing Demands for Tax Revenues  – Sales Tax  – Property Tax• Economi...
83rd Legislative Session   Begins January 2013                         2705 Bee Cave Road, Suite 110                      ...
Questions?             2705 Bee Cave Road, Suite 110                       Austin, Texas 78746                            ...
82nd Texas Legislative Session           John J. Carlton    The Carlton Law Firm, P.L.L.C.    2705 Bee Cave Road Suite 110...
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2012 Safe D 11th Annual Conference 82nd Legislature Laws Affecting Es Ds

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Presentation regarding laws adopted by 82nd Texas Legislature affecting Emergency Services Districts in Texas at SAFE-D Annual Conference in February 2012

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2012 Safe D 11th Annual Conference 82nd Legislature Laws Affecting Es Ds

  1. 1. 82nd Legislature & ESDs SAFE-D 11th Annual Conference February 23, 2012 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2011 ©2012
  2. 2. Bills of Interest• SB 917 – ESD Omnibus Bill• SB 100 – MOVE Act Implementation• SB 326 – Goods-In-Transit• HB 628 – Local Government Contracts• SB 1477 – Benefits for ESD Military• HB 2690 – Real Property Conveyance 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  3. 3. SB 917• Author: Senator Jeff Wentworth• House Sponsor: Representative Doug Miller• Effective Date: June 17, 2011. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  4. 4. SB 917• Overlapping Districts• Consolidation of Districts• Fireworks Regulation• Commissioner Training• Removal of Commissioners• Budget and Tax Rate Process• Audit Filing• 775.085 Loans• Chapter 776 ESDs Converted to 775 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  5. 5. Overlapping Districts (SB 917)• Adds requirements for proposed districts whose territories overlap existing districts (excluding districts in counties of >3M people) – County Commissioners Court(s) in the proposed district required to send a petition copy to the existing district. – before the election, existing district board must adopt a statement detailing the types of services it will provide in the overlapping territory if the proposed district is created. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  6. 6. Overlapping Districts (SB 917)• Amends Chapter 775.0205, which prohibited the most recently created district from providing duplicative services in territory overlapping another district effective the date the most recent district was created: 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  7. 7. Overlapping Districts (SB 917) – Eliminates the prohibition – adds a reference to the statement of services that the existing district is required to adopt – effectively allowing the existing district to continue providing any services until the newly created district assumes its obligations 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  8. 8. Overlapping Districts (SB 917)– Authorizes a person to serve as commissioner of two districts with overlapping territory, and specifies that the person: • may be compensated for serving on only one of the boards; and • may be reimbursed for reasonable and necessary expenses incurred in performing duties for both boards. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  9. 9. Service Contracts (SB 917)• Authorizes board to contract with local governments, including other districts, to provide necessary staff, facilities, equipment, programs, or services• Provides that a person acting under a contract under this authorization is not holding more than one office of emolument, honor, trust or profit.• Addresses liability issues and mechanisms for transferring liability between contracting entities. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  10. 10. Consolidation (SB 917)• The voters in every district included in a proposed merger were required to approve the merger in order for any merger to take place and the tax rates of merging districts were reduced to the lowest level authorized in a district that was merged. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  11. 11. Consolidation (SB 917)• The amendment provides the following: – Every district whose voters approve the consolidation will be consolidated, notwithstanding that voters in one or more of the other districts proposed to be consolidated decline to approve the consolidation. – Those districts whose voters do not approve the consolidation will not be included in the consolidated district. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  12. 12. Consolidation (SB 917)– Before consolidation, participating districts must: • determine that the consolidation will provide for the more efficient and economical provision of services by the districts • adopt a joint order 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  13. 13. Consolidation (SB 917)• The joint order must include: – the new name and territory included in the consolidated district; the date of consolidation – if the maximum ad valorem tax rate differs among the districts, a statement that consolidation will only take place if voters approve an equalized tax rate – a statement that consolidation will only take place if the residents in the district and at least one other district approve 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  14. 14. Consolidation (SB 917)– Commissioners are will be appointed (or designated by statute in cases where existing commissioners had been elected) if the boards of the consolidated districts do not appoint five commissioners by the 31st day after the adoption of the joint order– The required ballot language was amended to incorporate the changes to the requirements set forth above as well as specifying the terms to be served by the commissioners 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  15. 15. Consolidations (SB 917)– If the districts have different maximum ad valorem tax rates: • The district with the lowest maximum ad valorem tax rate must order an election to authorize the imposition of a tax at the maximum rate authorized in the district with the higher maximum rate. • If a majority of the voters do not favor the increase, consolidation does not take place. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  16. 16. Consolidations (SB 917)– If the districts have differing sales and use tax rates: • The consolidated district must designate the territory of the former districts as sub-districts. • The board must continue to impose the existing sales and use taxes. • The board must send to the comptroller a copy of the joint order and a map of the consolidated district that shows the territories of the sub- districts. • The sub-districts or consolidated district are not prohibited from holding a sales and use tax election to alter the sales and use tax rate. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  17. 17. Fireworks (SB 917)• A district may not regulate the sale, use or transportation of fireworks, except as provided in Section 775.0363.• That Section provides that a district may adopt rules that are the same as or less stringent than those adopted or enforced by the commissioner of insurance and the state fire marshal relating to retail fireworks stands, fireworks bulk manufacturing and storage facilities, fireworks sales buildings, or any other structure used in public pyrotechnic displays. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  18. 18. Training (SB 917)• Requires at least six hours of certified continuing education at least once in a two- year period and carry forward not more than three hours from one period to the next.• Provides that, for purposes of removal of a commissioner, “incompetency” includes failure to comply with training requirements. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  19. 19. Removal (SB 917) Appointed Commissioners• Language specifies that the section does not apply unless adopted by the county commissioners court of the county by resolution.• Adds as grounds for removal of an appointed board member: – Incompetency – official misconduct – misconduct 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  20. 20. Removal (SB 917) Appointed Commissioners• Removal deliberation is made subject to 551.0745, Government Code (providing for closed meeting to discuss certain personnel matters).• Opportunity is provided for the board member to show cause why the board member should not be removed. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  21. 21. Removal (SB 917) Elected Commissioners• Section requires use of the procedures set forth in the Local Government Code for removing county officers.• Provides the grounds for removal: – incompetency – official misconduct – intoxication – misconduct 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  22. 22. Budget and Tax Rate (SB 917)• Prohibits the board from setting the tax rate for a fiscal year before adopting the budget. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  23. 23. Audits (SB 917)• If a district fails to complete and file the required audit report by September 1 and a county auditor is not ordered to prepare the report, the board president and treasurer are automatically removed and the commissioners’ court is required to fill the vacancies.• Only applies to district in a single county, and not in Harris County. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  24. 24. 775.085 Loans (SB 917)• Clarifies that loans under 775.085 are not subject to the requirement to hold an election to approve bonds and notes. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  25. 25. 776 ESDs Conversion (SB 917)• Repealed Chapter 776 of the Texas Health & Safety Code and converted all of the districts operating under that chapter to districts operating under Chapter 775 of the same code. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  26. 26. Other Legislation 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2011 ©2012
  27. 27. SB 100• Implements Federal MOVE Act – Military and Overseas Voter Empowerment Act• Electronic Ballot Transmission and Ballot Tracking for Military and Overseas Voters 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  28. 28. SB 100• Applies to: – Elections with Federal Office – Elections to fill vacancy in State Legislature – Any election held jointly with above 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  29. 29. SB 100• Affects: – Runoff Election Timing – Deadline for Ordering Elections – May Uniform Election Date 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  30. 30. SB 100• Prior to SB 100, primary elections and any related runoff would have been concluded by the time the May uniform election date arrived.• Moving the primary runoff to the fourth Tuesday in May causes the May uniform election date to fall between the primary and the primary runoff. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  31. 31. SB 100• This creates logistical problems with regard to reprogramming electronic voting systems between elections, among other things.• Counties are not required to contract with political subdivisions for election services during May of even numbered years.• BUT… 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  32. 32. SB 100• County Election Administrator initially opposed continuing to provide election services• Recently, many have decided to provide those service anyway• Some costs will increase for more equipment and personnel 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  33. 33. SB 326 (passed as part of SB 1)• Goods-In-Transit – Must Hold Public Hearing regarding taxation of Goods-In-Transit – No notice requirements specified – Can take official action after hearing and before end of tax year – After 10/1/11 and before 12/31 of tax year 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  34. 34. SB 326 (passed as part of SB 1)• “Goods-in-transit” – Tangible personal property – Stored (pursuant to a contract for delivery) at public warehouse facilities – Warehouse not owned or controlled by the owner of the personal property – Transferred to another location within 175 days – Excludes oil, natural gas, petroleum products, aircraft, dealer’s inventory (motor vehicle, vessel, outboard motor, and heavy equipment), and retail manufactured housing inventory. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  35. 35. HB 628• Creates Government Code Chapter 2267 related to government contracts for public works• Repeals alternative bidding procedures in Subchapter H, Chapter 271, Local Government Code 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  36. 36. HB 628• Public works include buildings and other public facilities• Prevails over any other laws related to public works contracts 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  37. 37. HB 628• Competitive Bidding• Competitive Sealed Proposals• Construction Manager-Agent Method (“CMA”)• Construction Manager-At-Risk Method (“CMAR”)• Design-Build Contracts• Job Order MethodGovernment Code Chapter 2267 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  38. 38. SB 1477• Allows differential pay and extension of insurance benefits to person called to active duty – Members of State Military Forces – Reserve in US Armed forces• Board must adopt uniform policy• Military Pay must be less than District pay• Differential pay plus military pay may not exceed District pay 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  39. 39. HB 2690• A political subdivision may donate or sell for less than fair market value land or an interest in real property to another political subdivision if: – the land will be used for a purpose that benefits the public interest of the donating or selling political subdivision; – the donation or sale of the land is made under terms that maintain the public purpose for which the donation or sale is made; and – the title and right to possession of the land revert to the donating or selling political subdivision if the acquiring political subdivision ceases to use the land for the public purpose. 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  40. 40. Interim Issues 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2011 ©2012
  41. 41. Issues of Concern• Election of ESD Commissioners• Competing Demands for Tax Revenues – Sales Tax – Property Tax• Economic Development Tools• Funding Limitations• Access to Grants and Loans 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  42. 42. 83rd Legislative Session Begins January 2013 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2011 ©2012
  43. 43. Questions? 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012
  44. 44. 82nd Texas Legislative Session John J. Carlton The Carlton Law Firm, P.L.L.C. 2705 Bee Cave Road Suite 110 Austin, Texas 78746 (512) 614-0901 john@carltonlawaustin.com 2705 Bee Cave Road, Suite 110 Austin, Texas 78746 (512) 614-0901 www.carltonlawaustin.com ©2012

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