2011 ESD Legislative Wrap Up

With several Emergency Service District related bills filed during the regular session of the 82nd Texas legislature  it was no surprise that several got stalled out in committee.  One senate bill from Senator Wentworth, SB 917, seemed to keep some traction and finally pushed through.  It had a direct companion on the House side and a couple similar bills including one from our own District 58 Representative Rob Orr.  Senator Wentworth had another ESD bill, SB 359, that I traveled to Austin to testify against before the Senate Intergovernmental Relations Committee.  It's purpose was to repeal Chapter 776 of the Health & Safety Code.  I opposed it because it would remove the ability of a municipality in a 776 ESD to get out of an ESD.  That power is something I sought for the City of Joshua and pushed to get added to Chapter 775 which is what our own Johnson County ESD is incorporated under.

SB 917 is now waiting for the Governor's signature.  Here's what affects Johnson County:

• Board Training - Each ESD board member will be required to have 6 hours of continuing education related to the duties of serving on an ESD board every two years.  Failing to complete the training becomes grounds for removal from the board.
• Removal of a Board Member - The power of the county commissioners is somewhat expanded in the reasons that a board member may be removed from office.  They now include:

1. Incompetency, as defined by Section 87.011, Local Government Code.
2. Official Misconduct, as defined by Section 87.011, Local Government Code.
3. Misconduct, as defined by Section 178.001, Local Government Code.

This provision would have been nice to have last year when numerous issues were found at the Johnson County ESD.  Especially since "incompetence" includes gross ignorance or carelessness in the discharge of official duties.  Of course getting the Johnson County commissioners to actually act on that would have probably been an uphill battle.  Since Precinct 3 Commissioner Jerry Stringer reappointed ESD Treasurer Keith Kelly, competence and conduct are obviously not high on his list of personal requirements for the position.  These new removal options may never be used anywhere in the state, however, since our legislators, in the most cowardly fashion, have made this section only applicable if the county commissioners adopt the power by resolution.  I'll certainly make our Johnson County Commissioners aware of this new power available to them so hopefully they'll choose to grab hold of it for future use.

• An ESD must not set a tax rate for the fiscal year before the date they adopt a budget for a fiscal year. Last year the JCESD chose to set their tax rate before adopting a budget.  Their method of budgeting seemed to be determining how much revenue they could generate and then figuring out how to spend it.  I'm hopeful that the leadership this year will take a more responsible approach.
• When an ESD fails to submit an audit of the previous fiscal year to the county commissions by September 1st the board president and treasurer are removed.  This sure would have been nice to have last year!  This is a really good thing for extreme cases like we had last year, but when you really see what we got it's pretty meaningless.  The current law already states that an ESD is to submit their audit to the commissioners by June 1st.  Why now do we need to give them three more months before there is any discipline action?  All this does is make the June 1st date meaningless and allow an ESD to progress well into budget preparation time for the next year without a certified report of what money they really even have to work with.
• The final kicker, Chapter 776 is repealed.  The bill I fought so hard against, SB 359, was crammed into SB 917 in the final days and passed right though.  Though the state doesn't have many 776 ESD's any cities in them have lost the power to ever get out.  Along with that we have lost the argument of precedence in pushing for that provision to be included in chapter 775.  The ESD lobbyists did a good job of securing their revenues since that's the only reason to hold a city's taxpayers hostage.

I'll pick the ball up again next year when the legislature begins preparing for 2013.  What we'll need is a bill specific to the issue of allowing cities a way out of ESD's.  I plan to write it myself and shop for a legislator to sponsor it.  I'll give Representative Orr another chance to do the right thing, but I won't hold my breath.

A.J.