ESD Guide: What You Need to Know

ESDs
Texas Fire Chiefs Academy
June 7, 2012
2705 Bee Cave Road, Suite 110
Austin, Texas 78746
(512) 614-0901
www.carltonlawaustin.com
©2012

What is an ESD?

Austin, Texas 78746
(512) 614-0901
©2012

What is an ESD?
• ESDs are local political subdivisions that may
provide fire, rescue, EMS and other
emergency services
– Governed by 5 commissioners appointed by
County Commissioners Court - except in Harris
County and multi-county ESDs, where they are
elected
– Primarily funded by property taxes not to exceed
$0.10
Austin, Texas 78746
(512) 614-0901
©2012

Why create an ESD?
• ESDs Ensure adequate funding of local
fire, EMS, rescue and other emergency
services
• ESDs spread funding for emergency
services among everyone that might
receive those services
Austin, Texas 78746
(512) 614-0901
©2012

ESD Statistics
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Over 300 known ESDs in Texas
Approximately 1/3 are SAFE-D members
100 ESDs with Tax Rates >$0.09/$100
Approx. 50 ESDs collecting Sales Tax
Median Assessed Value Approx.
$700,000,000

(as of December 2010)
Austin, Texas 78746
(512) 614-0901
©2012

Most Current Map of
ESDs in Texas

Texas Department of Rural
Affairs
Prepared February 2010

Website:
http://www.tdra.state.tx.us/TxDR
A/Libraries/sorhDocs/Emergency
_Service_Districts.sflb.ashx
Austin, Texas 78746
(512) 614-0901
©2012

Constitution
• Article 3, Section 48-e
– Laws may be enacted to provide for the
establishment and creation of special districts
to provide emergency services and to
authorize the commissioners courts of
participating counties to levy a tax on the ad
valorem property situated in said districts not
to exceed Ten Cents (10¢) on the One
Hundred Dollars ($100.00) valuation for the
support thereof; provided that no tax shall be
levied in support of said districts until
approved by a vote of the qualified voters Cave Road, Suite 110
2705 Bee
Austin, Texas 78746
residing therein.
(512) 614-0901
©2012

Constitution
• Article 3, Section 48-e (cont.)
– Such a district may provide emergency
medical services, emergency ambulance
services, rural fire prevention and control
services, or other emergency services
authorized by the Legislature.
Statute - Chapter 775 – ESDs
Austin, Texas 78746
(512) 614-0901
©2012

ESD Commissioners
• Board of five commissioners.
• Appointed by Commissioners Court for 2
years
– at least 18 years of age; and
– a resident citizen of the state that is:
• a qualified voter within district; or
• owner of land subject to taxation in the district.

• Commissioners of Multi-County and Harris
County ESDs are elected at-large for 4 years
Austin, Texas 78746
(512) 614-0901
©2012

Commissioner Appointment
• The commissioners court shall consider
relevant factors in determining the
individuals to appoint as emergency
services commissioners, including
whether the individuals have knowledge
that relates to fire prevention or
emergency medical services and that is
relevant to the common policies and
practices of the board.
• Health & Safety Code §775.034(g) or2705 Bee Cave Road, Suite 110
776.033(g)
Austin, Texas 78746
(512) 614-0901
©2012

Elected Commissioners
• In Harris County (31 ESDs), you are not
eligible to be an ESD commissioner if :
– you are related within the third degree to:
• someone providing professional services to the
district;
• a commissioner of the district; or
• someone who is an employee or volunteer of an
organization providing emergency services to the
district;
Austin, Texas 78746
(512) 614-0901
©2012

Elected Commissioners
• In Harris County (31 ESDs), you are not
eligible to be an ESD commissioner if :
– you are employed by a district commissioner, or
an attorney or other person providing
professional services to the district;
– your serve in a professional capacity for the
district or an organization providing emergency
services to the district; or
– you fail to maintain the qualifications required by
law to serve.
Austin, Texas 78746
(512) 614-0901
©2012

Training
• Must obtain at least six hours of certified
continuing education at least once in a two-year
period and may carry forward not more than three
hours from one period to the next.
• For purposes of removal of a commissioner,
“incompetency” includes failure to comply with
training requirements.

Austin, Texas 78746
(512) 614-0901
©2012

Laws Governing ESDs

Austin, Texas 78746
(512) 614-0901
©2012

Financial Issues
• Ad Valorem Taxes
• Sales Tax
• Fees
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Purchases/Leases/Sale
Bonds
Loans
Bidding
Austin, Texas 78746
(512) 614-0901
©2012

Ad Valorem Taxes
• Constitutional Cap of 10 Cents for each
ESD
– Harris County/Former RFPD/Former 776
ESD Specific Issues

• Truth-in-Taxation Process
– Notice and Hearings if exceed Effective Rate

• Rollback Elections
– 108% of Previous Effective O&M Rate
• http://www.window.state.tx.us/taxinfo/proptax/tnt1
1/

Austin, Texas 78746
(512) 614-0901
©2012

Sales Tax
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Maximum 2% Local Sales Tax
Increments of 1/8%
Sales Tax Election
Exclusion of area at 2% cap –
the “Carve Out”

Austin, Texas 78746
(512) 614-0901
©2012

Fees
• A district, or a person authorized by
contract on the district's behalf, may
charge a reasonable fee for emergency
services performed for or on behalf of a
person or entity, including a fee for
responding to a false alarm or for a fire
code inspection.
• Provide notice and conduct public
hearing to adopt false alarm fees (penal
in nature).

Austin, Texas 78746
(512) 614-0901
©2012

Miscellaneous Issues

Austin, Texas 78746
(512) 614-0901
©2012

Miscellaneous Issues
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Audits
Payment of District Funds
Annual Reports
Depositories
Public Funds Investment Act
Public Funds Collateral Act
Austin, Texas 78746
(512) 614-0901
©2012

Accountability Issues

Austin, Texas 78746
(512) 614-0901
©2012

Accountability Issues
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State Laws
State Agencies
County Commissioners/Voters
Residents

Austin, Texas 78746
(512) 614-0901
©2012

State Agencies with Oversight
• Texas Commission on Fire Protection
– for entities with paid fire fighting staff

• Texas Department of State Health
Services
– for entities providing EMS services

• Texas Attorney General
– for Open Government and Records Issues
Austin, Texas 78746
(512) 614-0901
©2012

Open Meetings Act
• Chapter 551, Texas Government Code
• Attorney General Approved Training
Required
– Training Sessions Friday Morning!

• Open Meetings Made Easy

• Open Meetings Handbook
• https://www.oag.state.tx.us/open/publications_og.shtml
Austin, Texas 78746
(512) 614-0901
©2012

Public Information Act
• Chapter 552, Texas Government Code
– formerly the Open Records Act

• Attorney General Training Required
– Training Sessions Friday morning!

• Public Information Act Made Easy
• Public Information Handbook
• https://www.oag.state.tx.us/open/publications_og.shtml
Austin, Texas 78746
(512) 614-0901
©2012

Ethical Issues
• Conflict of Interest
• Nepotism
• Dual Office Holding/Incompatibility
AG Handbook: Public Officers: Traps for the Unwary
https://www.oag.state.tx.us/open/publications_og.shtml
Austin, Texas 78746
(512) 614-0901
©2012

Types of ESD Operations
“If you have seen one ESD, you have seen one
ESD”
• Volunteer Departments
– Volunteers have other jobs in local community

• Combined Departments
– Paid staff to cover shifts when volunteers are out of
community at work

• Employee Departments
– Insufficient volunteer manpower to meet call volume
demands of service area
Austin, Texas 78746
(512) 614-0901
©2012

Organization Structure
• Contracted Service Providers
– ESD serves as financing and contract manager
for 3rd party service providers, which can be:
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Volunteer Fire Departments;
Volunteer EMS Organizations;
For Profit EMS Organizations; and
Other Local Government Entities.

• District Personnel
– ESD employees its own personnel to provide
services to the community
Austin, Texas 78746
(512) 614-0901
©2012

Service Providers
• Volunteer Departments/Organizations
– Usually helped create the ESD
– Generally have long history of serving the Community
– Many volunteers who invest time and energy in
service
– Have had to rely upon donations and County handouts
– Historically make decisions without oversight
– Sometimes conflicts between multiple service
providers

• Transitioning to a Contract Relationship with
ESD can be difficult

Austin, Texas 78746
(512) 614-0901
©2012

Other Agreements
• Automatic and Mutual Aid Agreements
with surrounding departments and
jurisdictions.
• Agreement for Dispatch Services.
• Purchasing Agreements with
Cooperatives. (i.e. HGAC, Buy Board,
State)
• HIPPA Association Agreement for EMS
and First Response agencies.

Austin, Texas 78746
(512) 614-0901
©2012

Organizations/Agencies for
Assistance
• SFFMA (Volunteer Departments)
• Texas Forest Service
• Texas Department of Rural Affairs (Now a
Division of the Texas Department of
Agriculture)
• State Library and Archives Commission
(Records)
• Texas Comptroller (Sales Tax)
• Texas Secretary of State (Elections)
Austin, Texas 78746
(512) 614-0901
©2012

Helpful Websites
• TX State Assoc. of Fire & Emergency
Districts
– www.safe-d.org

• Texas Attorney General
– www.oag.state.tx.us

• Texas Comptroller of Public Accounts
– www.window.state.tx.us

• Texas Secretary of State
– www.sos.state.tx.us

• Texas Department Agriculture
– www.texasagriculture.gov
Austin, Texas 78746
(512) 614-0901
©2012

Laws that Apply to ESDs
•

The Texas Constitution, Art. 3, Section 48-e
– http://www.statutes.legis.state.tx.us/Docs/CN/htm/CN.3.htm#3.48-e

•

Health and Safety Code, Title 9, Subtitle B, Chapter 775
– http://www.statutes.legis.state.tx.us/Docs/HS/htm/HS.775.htm

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Local Government Code, Title 5, Subtitle C, Chapter 171
– http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.171.htm

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Local Government Code, Title 8, Subtitle B, Chapter 262

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Local Government Code, Title 8, Subtitle C, Chapter 271

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Government Code, Title 5, Subtitle A, Chapter 551
– http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.551.htm

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Government Code, Title 5, Subtitle A, Chapter 552

•

Government Code, Title 10, Subtitle F, Chapter 2256

Austin, Texas 78746
(512) 614-0901
©2012

ESDs
John J. Carlton
The Carlton Law Firm, PLLC
Austin, Texas 78746
(512) 614-0901
john@carltonlawaustin.com

Austin, Texas 78746
(512) 614-0901
©2012

ESD Guide: What You Need to Know

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