Texas 2009 - 81st Regular

Texas House Bill HB3485 Compare Versions

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1	1	H.B. No. 3485
2	2
3	3
4	4	AN ACT
5	5	relating to certain county, municipal, district, and other
6	6	governmental functions, procedures, powers, duties, and services,
7	7	including certain criminal procedures.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Article 15.08, Code of Criminal Procedure, is
10	10	amended to read as follows:
11	11	Art. 15.08. WARRANT MAY BE FORWARDED [TELEGRAPHED]. A
12	12	warrant of arrest may be forwarded by a method that ensures the
13	13	transmission of a duplicate of the original warrant, including
14	14	secure facsimile transmission or other secure electronic means
15	15	[telegraph from any telegraph office to another in this State]. If
16	16	issued by any magistrate named in Article 15.06, the peace officer
17	17	receiving the same shall execute it without delay. If it be issued
18	18	by any other magistrate than is named in Article 15.06, the peace
19	19	officer receiving the same shall proceed with it to the nearest
20	20	magistrate of the peace officer's [his] county, who shall endorse
21	21	thereon, in substance, these words:
22	22	"Let this warrant be executed in the county of ...........",
23	23	which endorsement shall be dated and signed officially by the
24	24	magistrate making the same.
25	25	SECTION 2. Article 15.09, Code of Criminal Procedure, is
26	26	amended to read as follows:
27	27	Art. 15.09. COMPLAINT MAY BE FORWARDED [BY TELEGRAPH]. A
28	28	complaint in accordance with Article 15.05, may be forwarded
29	29	[telegraphed], as provided by [in the preceding] Article 15.08, to
30	30	any magistrate in the State; and the magistrate who receives the
31	31	same shall forthwith issue a warrant for the arrest of the accused;
32	32	and the accused, when arrested, shall be dealt with as provided in
33	33	this Chapter in similar cases.
34	34	SECTION 3. Article 15.19(a), Code of Criminal Procedure, is
35	35	amended to read as follows:
36	36	(a) If the arrested person fails or refuses to give bail, as
37	37	provided in Article 15.18, the arrested person shall be committed
38	38	to the jail of the county where the person was arrested; and the
39	39	magistrate committing the arrested person shall immediately
40	40	provide notice to the sheriff of the county in which the offense is
41	41	alleged to have been committed regarding:
42	42	(1) the arrest and commitment, which notice may be
43	43	given by [telegraph,] mail[,] or other written means or by secure
44	44	facsimile transmission or other secure electronic means; and
45	45	(2) whether the person was also arrested under a
46	46	warrant issued under Section 508.251, Government Code.
47	47	SECTION 4. Article 20.011(a), Code of Criminal Procedure,
48	48	is amended to read as follows:
49	49	(a) Only the following persons may be present in a grand
50	50	jury room while the grand jury is conducting proceedings:
51	51	(1) grand jurors;
52	52	(2) bailiffs;
53	53	(3) the attorney representing the state;
54	54	(4) witnesses while being examined or when necessary
55	55	to assist the attorney representing the state in examining other
56	56	witnesses or presenting evidence to the grand jury;
57	57	(5) interpreters, if necessary; [and]
58	58	(6) a stenographer or person operating an electronic
59	59	recording device, as provided by Article 20.012; and
60	60	(7) a person operating a video teleconferencing system
61	61	for use under Article 20.151.
62	62	SECTION 5. Article 20.02(b), Code of Criminal Procedure, is
63	63	amended to read as follows:
64	64	(b) A grand juror, bailiff, interpreter, stenographer or
65	65	person operating an electronic recording device, [or] person
66	66	preparing a typewritten transcription of a stenographic or
67	67	electronic recording, or person operating a video teleconferencing
68	68	system for use under Article 20.151 who discloses anything
69	69	transpiring before the grand jury, regardless of whether the thing
70	70	transpiring is recorded, in the course of the official duties of the
71	71	grand jury, is [shall be] liable to a fine as for contempt of the
72	72	court, not exceeding $500 [five hundred dollars], imprisonment not
73	73	exceeding 30 [thirty] days, or both the [such] fine and
74	74	imprisonment.
75	75	SECTION 6. Chapter 20, Code of Criminal Procedure, is
76	76	amended by adding Article 20.151 to read as follows:
77	77	Art. 20.151. CERTAIN TESTIMONY BY VIDEO TELECONFERENCING.
78	78	(a) With the consent of the foreman of the grand jury and the
79	79	attorney representing the state, a peace officer summoned to
80	80	testify before the grand jury may testify through the use of a
81	81	closed circuit video teleconferencing system that provides an
82	82	encrypted, simultaneous, compressed full motion video and
83	83	interactive communication of image and sound between the peace
84	84	officer, the attorney representing the state, and the grand jury.
85	85	(b) In addition to being administered the oath described by
86	86	Article 20.16(a), before being interrogated, a peace officer
87	87	testifying through the use of a closed circuit video
88	88	teleconferencing system under this article shall affirm that:
89	89	(1) no person other than a person in the grand jury
90	90	room is capable of hearing the peace officer's testimony; and
91	91	(2) the peace officer's testimony is not being
92	92	recorded or otherwise preserved by any person at the location from
93	93	which the peace officer is testifying.
94	94	(c) Testimony received from a peace officer under this
95	95	article shall be recorded and preserved.
96	96	SECTION 7. Article 27.18, Code of Criminal Procedure, is
97	97	amended by amending Subsection (c) and adding Subsection (c-1) to
98	98	read as follows:
99	99	(c) A recording of the communication shall be made and
100	100	preserved until all appellate proceedings have been disposed of. A
101	101	court reporter or court recorder is not required to take a
102	102	transcription of a plea taken under this article.
103	103	(c-1) The defendant may obtain a copy of a [the] recording
104	104	made under Subsection (c) on payment of a reasonable amount to cover
105	105	the costs of reproduction or, if the defendant is indigent, the
106	106	court shall provide a copy to the defendant without charging a cost
107	107	for the copy. The loss or destruction of or failure to make a video
108	108	recording of a plea entered under this article is not alone
109	109	sufficient grounds for a defendant to withdraw the defendant's plea
110	110	or to request the court to set aside a conviction or sentence based
111	111	on the plea.
112	112	SECTION 8. Article 38.073, Code of Criminal Procedure, is
113	113	amended to read as follows:
114	114	Art. 38.073. TESTIMONY OF INMATE WITNESSES. In a
115	115	proceeding in the prosecution of a criminal offense in which an
116	116	inmate in the custody of the Texas Department of Criminal Justice is
117	117	required to testify as a witness, any deposition or testimony of the
118	118	inmate witness may be conducted by a video teleconferencing system
119	119	in the manner described by Article 27.18 [electronic means, in the
120	120	same manner as permitted in civil cases under Section 30.012, Civil
121	121	Practice and Remedies Code].
122	122	SECTION 9. Article 49.01, Code of Criminal Procedure, is
123	123	amended to read as follows:
124	124	Art. 49.01. DEFINITIONS. In this chapter [article]:
125	125	(1) "Autopsy" means a post mortem examination of the
126	126	body of a person, including an external examination of the body
127	127	[X-rays] and an examination of the internal organs [and structures
128	128	after dissection], to determine the cause and manner of death or the
129	129	nature of any pathological changes that may have contributed to the
130	130	death or to obtain information or material for evidentiary or
131	131	identification purposes. The forensic pathologist or physician
132	132	performing the autopsy may limit the individuals in attendance at
133	133	the examination and may vary the extent of the examination. The
134	134	examination may include:
135	135	(A) radiographs;
136	136	(B) a microscopic examination;
137	137	(C) retention of an organ part or whole organ;
138	138	(D) an anthropologic examination;
139	139	(E) a dental examination;
140	140	(F) any other procedure considered necessary by
141	141	the examining forensic pathologist or physician; or
142	142	(G) at the discretion of the medical examiner,
143	143	the medical examiner's designee, or the justice of the peace, as
144	144	appropriate, an in-person examination of the scene of death or
145	145	injury or an examination of the scene through reports or
146	146	photographs related to the injury or death.
147	147	(1-a) "Forensic pathologist" means a physician who is
148	148	board certified in anatomic and forensic pathology by the American
149	149	Board of Pathology.
150	150	(2) "Inquest" means an investigation into the cause
151	151	and circumstances of the death of a person, and a determination,
152	152	made with or without a formal court hearing, as to whether the death
153	153	was caused by an unlawful act or omission. The term includes each
154	154	level of investigation, from rudimentary information gathering to a
155	155	complete autopsy examination and formal hearing.
156	156	(3) "Inquest hearing" means a formal court hearing
157	157	held to determine whether the death of a person was caused by an
158	158	unlawful act or omission and, if the death was caused by an unlawful
159	159	act or omission, to obtain evidence to form the basis of a criminal
160	160	prosecution.
161	161	(4) "Institution" means any place where health care
162	162	services are rendered, including a hospital, clinic, health
163	163	facility, nursing home, extended-care facility, out-patient
164	164	facility, foster-care facility, and retirement home.
165	165	(5) "Physician" means a practicing doctor of medicine
166	166	or doctor of osteopathic medicine who is licensed by the Texas
167	167	[State Board of] Medical Board [Examiners] under Subtitle B, Title
168	168	3, Occupations Code.
169	169	SECTION 10. Section 1, Article 49.25, Code of Criminal
170	170	Procedure, is amended to read as follows:
171	171	Sec. 1. OFFICE AUTHORIZED. Subject to the provisions of
172	172	this Article [Act], the Commissioners Court of any county having a
173	173	population of more than one million [and not having a reputable
174	174	medical school as defined in Articles 4501 and 4503, Revised Civil
175	175	Statutes of Texas,] shall establish and maintain the office of
176	176	medical examiner, and the Commissioners Court of any county may
177	177	establish and provide for the maintenance of the office of medical
178	178	examiner. Population shall be according to the last preceding
179	179	federal census.
180	180	SECTION 11. Subsection (b), Section 1-a, Article 49.25,
181	181	Code of Criminal Procedure, is amended to read as follows:
182	182	(b) There may be only one chief medical examiner in a
183	183	medical examiners district, although the chief medical examiner
184	184	[he] may employ, within the district, necessary staff personnel,
185	185	including deputy medical examiners. When a county becomes a part of
186	186	a medical examiners district, the effect is the same within the
187	187	county as if the office of medical examiner had been established in
188	188	that county alone. A [The] district medical examiner has all the
189	189	powers and duties within the district that a medical examiner who
190	190	serves in a single county has within that county.
191	191	SECTION 12. Section 2, Article 49.25, Code of Criminal
192	192	Procedure, is amended to read as follows:
193	193	Sec. 2. APPOINTMENTS AND QUALIFICATIONS. (a) The
194	194	commissioners court shall appoint the chief medical examiner, who
195	195	serves [shall serve] at the pleasure of the commissioners court.
196	196	The chief medical examiner must be:
197	197	(1) board certified in anatomic and forensic pathology
198	198	by the American Board of Pathology; and
199	199	(2) [No person shall be appointed medical examiner
200	200	unless he is] a physician licensed by the Texas [State Board of]
201	201	Medical Board [Examiners. To the greatest extent possible, the
202	202	medical examiner shall be appointed from persons having training
203	203	and experience in pathology, toxicology, histology and other
204	204	medico-legal sciences].
205	205	(b) The chief medical examiner shall devote the [so much of
206	206	his] time and energy [as is] necessary to perform [in the
207	207	performance of] the duties conferred by this Article.
208	208	SECTION 13. Section 3, Article 49.25, Code of Criminal
209	209	Procedure, is amended to read as follows:
210	210	Sec. 3. ASSISTANTS. (a) The chief medical examiner may,
211	211	subject to the approval of the commissioners court, employ the
212	212	[such] deputy medical examiners, medical, dental, or anthropologic
213	213	consultants, scientific experts, trained technicians, officers,
214	214	and employees [as may be] necessary to properly perform [the proper
215	215	performance of] the duties imposed by this Article on [upon] the
216	216	chief medical examiner.
217	217	(b) A deputy medical examiner must:
218	218	(1) be board certified in anatomic and forensic
219	219	pathology; or
220	220	(2) have satisfactorily completed accredited
221	221	residency and fellowship training programs in anatomic and forensic
222	222	pathology and, not later than the third anniversary of the date the
223	223	training programs were completed, obtain board certification in
224	224	anatomic and forensic pathology.
225	225	SECTION 14. Section 4, Article 49.25, Code of Criminal
226	226	Procedure, is amended to read as follows:
227	227	Sec. 4. SALARIES. The commissioners court shall establish
228	228	and pay the salaries and compensations of the chief medical
229	229	examiner and the chief medical examiner's [his] staff.
230	230	SECTION 15. Section 6, Article 49.25, Code of Criminal
231	231	Procedure, is amended to read as follows:
232	232	Sec. 6. DEATH INVESTIGATIONS. (a) A chief [Any] medical
233	233	examiner, or the chief medical examiner's [his] duly authorized
234	234	deputy medical examiner, shall [be authorized, and it shall be his
235	235	duty, to] hold inquests with or without a jury in the [within his]
236	236	county in which the office is established[,] in the following
237	237	cases:
238	238	(1) [1.] When a person dies [shall die] within
239	239	twenty-four hours after the person is:
240	240	(A) admitted [admission] to a hospital or
241	241	institution;
242	242	(B) confined [or] in prison or in jail; or
243	243	(C) placed in law enforcement custody;
244	244	(2) [2.] When any person:
245	245	(A) is killed;
246	246	(B) [or] from any cause dies an unnatural death,
247	247	except under sentence of the law;
248	248	(C) [or] dies in the absence of one or more good
249	249	witnesses; or
250	250	(D) dies as a result of medical treatment or
251	251	therapy;
252	252	(3) [3.] When the body or a body part of a person is
253	253	found and[,] the cause or circumstances of death are unknown[, and:
254	254	[(A) the person is identified; or
255	255	[(B) the person is unidentified];
256	256	(4) [4.] When the circumstances of the death of any
257	257	person [are such as to] lead to suspicion that the person died [he
258	258	came to his death] by unlawful means;
259	259	(5) [5.] When any person commits suicide, or the
260	260	circumstances of the person's [his] death [are such as to] lead to
261	261	suspicion that the person [he] committed suicide;
262	262	(6) [6.] When a person dies who has not [without
263	263	having] been attended during the preceding year by a duly licensed
264	264	and practicing physician[, and the local health officer or
265	265	registrar required to report the cause of death under Section
266	266	193.005, Health and Safety Code, does not know the cause of death.
267	267	When the local health officer or registrar of vital statistics
268	268	whose duty it is to certify the cause of death does not know the
269	269	cause of death, he shall so notify the medical examiner of the
270	270	county in which the death occurred and request an inquest];
271	271	(7) [7.] When the person is a child [who is] younger
272	272	than six years of age and the death is reported under Chapter 264,
273	273	Family Code; [and]
274	274	(8) When an unidentified person dies; and
275	275	(9) [8.] When a person dies who has been attended
276	276	immediately preceding the person's [his] death by a duly licensed
277	277	and practicing physician or physicians[,] and the [such] physician
278	278	or physicians [are not certain as to the cause of death and] are
279	279	unable to certify to a reasonable degree of medical probability
280	280	[with certainty] the cause of death as required by Section 193.005
281	281	[193.004], Health and Safety Code.
282	282	(a-1) If a physician is unable to certify the cause of death
283	283	to a reasonable degree of medical probability, [In case of such
284	284	uncertainty] the attending physician or physicians, or the
285	285	superintendent or general manager of the hospital or institution in
286	286	which the deceased [shall have] died, shall [so] report the
287	287	inability to the medical examiner of the county in which the death
288	288	occurred[,] and request an inquest.
289	289	(a-2) If a medical examiner determines after performing an
290	290	inquest that the death is due to natural causes and the deceased
291	291	person was attended by a physician at the time of death or during
292	292	the preceding year, the medical examiner may waive the medical
293	293	examiner's authority to further investigate the case. If the
294	294	medical examiner waives the authority to further investigate the
295	295	case, the attending physician shall certify the cause of death.
296	296	(b) The inquests authorized and required by this Article
297	297	shall be held by the chief medical examiner of the county in which
298	298	the death occurred.
299	299	(c) In making such investigations and holding such
300	300	inquests, the chief medical examiner or an authorized deputy
301	301	medical examiner may administer oaths and take affidavits. In the
302	302	absence of next of kin or legal representatives of the deceased, the
303	303	chief medical examiner or authorized deputy medical examiner shall
304	304	take charge of the body and all property found with it.
305	305	(d) A medical examiner may subpoena medical records, law
306	306	enforcement records, or other types of records required to perform
307	307	the duties imposed under this section.
308	308	SECTION 16. Section 6a, Article 49.25, Code of Criminal
309	309	Procedure, is amended to read as follows:
310	310	Sec. 6a. ORGAN TRANSPLANT DONORS; NOTICE; INQUESTS.
311	311	(a) When death occurs to an individual designated a prospective
312	312	organ donor for transplantation by a licensed physician under
313	313	circumstances requiring the chief medical examiner of the county in
314	314	which death occurred, or the chief medical examiner's authorized
315	315	deputy medical examiner, to hold an inquest, the chief medical
316	316	examiner, or a member of the chief medical examiner's [his] staff,
317	317	shall [will] be [so] notified by the administrative head of the
318	318	facility in which the prospective donor is located [transplantation
319	319	is to be performed].
320	320	(b) When notified pursuant to Subsection (a) of this
321	321	Section, the chief medical examiner or the chief medical examiner's
322	322	deputy medical examiner shall perform an inquest on the deceased
323	323	prospective organ donor.
324	324	(c) Subject to the procedures and requirements established
325	325	by Section 693.002, Health and Safety Code, a medical examiner may:
326	326	(1) determine before or after the medical examiner
327	327	examines the body of the deceased that the release of organs or
328	328	tissues for transplant purposes will likely hinder the
329	329	determination of the cause or manner of death or compromise an
330	330	evidentiary aspect of the examination; and
331	331	(2) based on the determination, prohibit or limit the
332	332	extent of the organ or tissue removal.
333	333	SECTION 17. Section 7(b), Article 49.25, Code of Criminal
334	334	Procedure, is amended to read as follows:
335	335	(b) A person investigating the [a] death of an unidentified
336	336	person [described by Subdivision 3(B) of Section 6(a)] shall report
337	337	the death to the missing children and missing persons information
338	338	clearinghouse of the Department of Public Safety and the national
339	339	crime information center not later than the 10th working day after
340	340	the date the investigation began.
341	341	SECTION 18. Section 8, Article 49.25, Code of Criminal
342	342	Procedure, is amended to read as follows:
343	343	Sec. 8. REMOVAL OF BODIES. When any death under
344	344	circumstances set out in Section 6 of this Article occurs [shall
345	345	have occurred], the body shall not be disturbed or removed from the
346	346	position in which it is found by any person without authorization
347	347	from the chief medical examiner or an authorized deputy medical
348	348	examiner, except for the purpose of preserving the [such] body from
349	349	loss or destruction or maintaining the flow of traffic on a highway,
350	350	railroad, or airport.
351	351	SECTION 19. Section 9, Article 49.25, Code of Criminal
352	352	Procedure, is amended to read as follows:
353	353	Sec. 9. AUTOPSY. (a) If the cause of death is [shall be]
354	354	determined beyond a reasonable doubt as a result of the
355	355	investigation, the medical examiner shall prepare [file] a report
356	356	on the investigation [thereof] setting forth specifically the cause
357	357	of death and file the report with the district attorney or criminal
358	358	district attorney, or in a county in which there is no district
359	359	attorney or criminal district attorney with the county attorney, of
360	360	the county in which the death occurred.
361	361	(b) If in the opinion of the medical examiner an autopsy is
362	362	necessary to determine the cause or manner of death, to better
363	363	determine any pathological or injurious process present, or to
364	364	obtain evidence for a potential legal proceeding or for
365	365	identification purposes, or if the autopsy [such] is requested by
366	366	the district attorney or criminal district attorney, or county
367	367	attorney where there is no district attorney or criminal district
368	368	attorney, the autopsy shall be [immediately] performed by the chief
369	369	medical examiner or a duly authorized deputy medical examiner. In
370	370	[those] cases where a complete autopsy is considered [deemed]
371	371	unnecessary by the medical examiner to ascertain the cause of
372	372	death, the medical examiner may perform a limited autopsy or
373	373	external inspection of the body that may include [involving the]
374	374	taking [of] blood samples or any other samples of body fluids,
375	375	tissues, or organs[, in order] to ascertain the cause of death or
376	376	whether a crime has been committed.
377	377	(c) If [In] the identity [case] of a body of a human being
378	378	[whose identity] is unknown, the medical examiner may authorize the
379	379	[such] investigative and laboratory tests and processes [as are]
380	380	required to determine the [its] identity and [as well as] the cause
381	381	of death.
382	382	(d) The extent of an autopsy is solely at the discretion of
383	383	the medical examiner.
384	384	(e) A medical examiner is not required to notify or seek any
385	385	approval from a deceased person's next of kin to perform an autopsy
386	386	or any other type of examination related to an autopsy.
387	387	(f) On [In performing an autopsy the medical examiner or
388	388	authorized deputy may use the facilities of any city or county
389	389	hospital within the county or such other facilities as are made
390	390	available. Upon] completion of the autopsy, the medical examiner
391	391	shall prepare [file] a report setting forth the findings in detail
392	392	and file the report with the office of the district attorney or
393	393	criminal district attorney of the county, or if there is no district
394	394	attorney or criminal district attorney, with the county attorney of
395	395	the county.
396	396	(g) [(b)] A medical examination on an unidentified person
397	397	shall include the following information to enable a timely and
398	398	accurate identification of the person:
399	399	(1) all available fingerprints and palm prints;
400	400	(2) dental charts and radiographs (X-rays) of the
401	401	person's teeth;
402	402	(3) [frontal and lateral] facial photographs with
403	403	scale indicated;
404	404	(4) notation [and photographs, with scale indicated,]
405	405	of a significant scar, mark, tattoo, or item of clothing or other
406	406	personal effect found with or near the body;
407	407	(5) notation of any identified antemortem medical
408	408	conditions; and
409	409	(6) notation of observations pertinent to the
410	410	estimation of time of death[; and
411	411	[(7) precise documentation of the location of burial
412	412	of the remains].
413	413	(h) [(c)] A medical examination on an unidentified person
414	414	may include the following information to enable a timely and
415	415	accurate identification of the person:
416	416	(1) full body radiographs (X-rays); and
417	417	(2) [hair] specimens from the body for DNA
418	418	characterization and comparison [with roots].
419	419	(i) A medical examiner performing an autopsy of a deceased
420	420	person may retain an organ or part of an organ if the medical
421	421	examiner determines that retaining the organ or organ part is
422	422	necessary for further examination and testing. After completing
423	423	the examination or testing on the organ or organ part, the medical
424	424	examiner shall:
425	425	(1) retain the organ or organ part as required by law
426	426	or by published professional or accreditation standards;
427	427	(2) dispose of the organ or organ part as a hazardous
428	428	biological specimen; or
429	429	(3) release the organ or organ part to the funeral
430	430	establishment or crematory under Subsection (m)(2).
431	431	(j) A medical examiner may not be required to perform an
432	432	autopsy on a person whose death resulted from a highly infectious
433	433	disease or a chemical or radiological agent that presents a hazard
434	434	to the medical examiner, the medical examiner's staff, or the
435	435	public.
436	436	(k) Except as provided by Subsection (l), a medical examiner
437	437	may not perform an autopsy on a deceased person if the medical
438	438	examiner receives before the performance of the autopsy a notarized
439	439	affidavit signed by the person before the person's death that
440	440	states the person's objection for religious reasons to the
441	441	performance of an autopsy on the person after the person's death.
442	442	(l) A medical examiner may perform an autopsy on a deceased
443	443	person following receipt of a notarized affidavit under Subsection
444	444	(k) if the chief medical examiner determines a compelling public
445	445	necessity exists to perform the autopsy on the deceased person
446	446	despite the objection.
447	447	(m) If the medical examiner performs the autopsy despite
448	448	receipt of a notarized affidavit under Subsection (k), the medical
449	449	examiner shall:
450	450	(1) use the least invasive means possible in the
451	451	performance of the autopsy; and
452	452	(2) notwithstanding Subsection (i), release to the
453	453	funeral establishment or crematory any organ or organ part retained
454	454	by the medical examiner, except as required by law or by published
455	455	professional or accreditation standards.
456	456	(n) In this section, "compelling public necessity" means:
457	457	(1) a criminal homicide investigation in which the
458	458	deceased person is the victim;
459	459	(2) an immediate and substantial threat to public
460	460	health;
461	461	(3) the death of a child under 12 years of age for
462	462	which the cause of death is not apparent and neglect or a threat to
463	463	public health was suspected;
464	464	(4) the cause or manner of death of the deceased person
465	465	is not apparent after a diligent investigation by the medical
466	466	examiner; or
467	467	(5) the autopsy is required by law.
468	468	SECTION 20. Section 10, Article 49.25, Code of Criminal
469	469	Procedure, is amended to read as follows:
470	470	Sec. 10. DISINTERMENTS AND CREMATIONS. (a) The [When a
471	471	body upon which an inquest ought to have been held has been
472	472	interred, the] medical examiner may cause a body that has been
473	473	interred and on which an inquest should have been held [it] to be
474	474	disinterred for the purpose of holding the [such] inquest.
475	475	(b) A [Before any] body on[, upon] which an inquest is
476	476	authorized by [the provisions of] this Article may not[, can] be
477	477	[lawfully] cremated unless[,] an examination is [autopsy shall be]
478	478	performed on the body [thereon] as provided in this Article[,] or a
479	479	certificate that the examination [no autopsy] was not necessary is
480	480	[shall be] furnished by the medical examiner.
481	481	(c) Before a [any] dead body may [can] be [lawfully]
482	482	cremated, the owner or operator of the crematory shall demand and be
483	483	furnished with a certificate, signed by the medical examiner of the
484	484	county in which the death occurred stating [showing] that:
485	485	(1) an examination [autopsy] was performed on the
486	486	[said] body; or
487	487	(2) an examination on the body [that no autopsy
488	488	thereon] was not necessary.
489	489	(d) The [It shall be the duty of the] medical examiner shall
490	490	[to] determine whether or not, from all the circumstances
491	491	surrounding the death, an examination [autopsy] is necessary prior
492	492	to issuing a certificate under [the provisions of] this section.
493	493	(e) The owner or operator of a crematory requesting
494	494	authorization to cremate a body shall provide the medical examiner
495	495	with a legible and properly completed death certificate.
496	496	(f) A medical examiner is not required to perform an
497	497	examination [No autopsy shall be required by the medical examiner]
498	498	as a prerequisite to cremation if the [in case] death was [is]
499	499	caused by [the] pestilential or highly infectious diseases [of
500	500	Asiatic cholera, bubonic plague, typhus fever, or smallpox].
501	501	(g) All certificates furnished to the owner or operator of a
502	502	crematory by any medical examiner, under the terms of this Article,
503	503	shall be preserved by the [such] owner or operator until the second
504	504	anniversary of [such crematory for a period of two years from] the
505	505	date of the body's cremation [of said body].
506	506	(h) A medical examiner is not required to perform an autopsy
507	507	on the body of a deceased person whose death was caused by a
508	508	communicable disease during a public health disaster.
509	509	SECTION 21. Section 10a, Article 49.25, Code of Criminal
510	510	Procedure, is amended to read as follows:
511	511	Sec. 10a. WAITING PERIOD BETWEEN DEATH AND CREMATION.
512	512	(a) The body of a deceased person shall not be cremated within 48
513	513	hours after the time of death as indicated on the regular death
514	514	certificate, unless:
515	515	(1) the death certificate indicates death was caused
516	516	by [the] pestilential or highly infectious diseases; [of Asiatic
517	517	cholera, bubonic plague, typhus fever, or smallpox,] or
518	518	(2) [unless] the time requirement is waived in writing
519	519	by the county medical examiner or, in counties without [not having]
520	520	a county medical examiner, a justice of the peace.
521	521	(b) In a public health disaster, the commissioner of state
522	522	[public] health services may designate other communicable diseases
523	523	for which cremation within 48 hours of the time of death is
524	524	authorized.
525	525	SECTION 22. Section 11, Article 49.25, Code of Criminal
526	526	Procedure, is amended to read as follows:
527	527	Sec. 11. RECORDS. (a) The medical examiner shall:
528	528	(1) keep full and complete records properly indexed
529	529	that include[, giving] the name if known of every person whose death
530	530	is investigated, the place where the body was found, the date, and
531	531	the cause and manner of death;[,] and
532	532	(2) [shall] issue a death certificate.
533	533	(b) The full report and detailed findings of the autopsy, if
534	534	any, shall be a part of the record.
535	535	(c) [Copies of all records shall promptly be delivered to
536	536	the proper district, county, or criminal district attorney in any
537	537	case where further investigation is advisable.] The records are
538	538	subject to required public disclosure in accordance with Chapter
539	539	552, Government Code, except that a photograph or x-ray of a body
540	540	taken during a medical examiner investigation [an autopsy] is
541	541	excepted from required public disclosure in accordance with Chapter
542	542	552, Government Code, but is subject to disclosure:
543	543	(1) under a subpoena or authority of other law; or
544	544	(2) if the photograph or x-ray is of the body of a
545	545	person who died while in the custody of law enforcement.
546	546	SECTION 23. Section 12, Article 49.25, Code of Criminal
547	547	Procedure, is amended to read as follows:
548	548	Sec. 12. TRANSFER OF DUTIES OF JUSTICE OF PEACE. When the
549	549	commissioners court of any county establishes [shall establish] the
550	550	office of medical examiner, all powers and duties of justices of the
551	551	peace in the [such] county relating to the investigation of deaths
552	552	and inquests [shall] vest in the office of the medical examiner.
553	553	Any subsequent General Law pertaining to the duties of justices of
554	554	the peace in death investigations and inquests [shall] apply to the
555	555	medical examiner in the county [such counties as] to the extent not
556	556	inconsistent with this Article, and all laws or parts of laws
557	557	otherwise in conflict with this Article [herewith] are [hereby]
558	558	declared [to be] inapplicable to this Article.
559	559	SECTION 24. Subsection (a), Section 14, Article 49.25, Code
560	560	of Criminal Procedure, is amended to read as follows:
561	561	(a) A person commits an offense if the person knowingly
562	562	violates this article or knowingly provides false information to a
563	563	medical examiner in the performance by the medical examiner of an
564	564	investigation under this article.
565	565	SECTION 25. Article 49.25, Code of Criminal Procedure, is
566	566	amended by adding Sections 13A and 13B to read as follows:
567	567	Sec. 13A. FEES. A medical examiner may charge reasonable
568	568	fees for services provided by the medical examiner's office under
569	569	this Article, including cremation approvals, court testimonies,
570	570	consultations, and depositions.
571	571	Sec. 13B. EDUCATION AND RESEARCH. (a) A medical examiner
572	572	may use for educational or teaching purposes photographs taken
573	573	during a death investigation.
574	574	(b) A medical examiner's office may engage in educational
575	575	and research activities that do not interfere with the performance
576	576	of the duties imposed on the office under this Article.
577	577	SECTION 26. Section 61.0572, Education Code, is amended by
578	578	adding Subsection (f) to read as follows:
579	579	(f) Approval of the board is not required for buildings or
580	580	other facilities financed by a public improvement district under
581	581	Subchapter A, Chapter 372, Local Government Code.
582	582	SECTION 27. Section 61.058, Education Code, is amended by
583	583	adding Subsection (c) to read as follows:
584	584	(c) This section does not apply to construction, repair, or
585	585	rehabilitation of buildings or other facilities financed by a
586	586	public improvement district under Subchapter A, Chapter 372, Local
587	587	Government Code.
588	588	SECTION 28. Section 31.037, Election Code, is amended to
589	589	read as follows:
590	590	Sec. 31.037. SUSPENSION OR TERMINATION OF EMPLOYMENT. The
591	591	employment of the county elections administrator may be suspended,
592	592	with or without pay, or terminated at any time for good and
593	593	sufficient cause on the four-fifths vote of the county election
594	594	commission and approval of that action by a majority vote of the
595	595	commissioners court.
596	596	SECTION 29. Section 61.001(f), Government Code, is amended
597	597	to read as follows:
598	598	(f) A reimbursement for expenses under this section is not a
599	599	property right of a person who reports for jury service for purposes
600	600	of Chapters 72 and 74, Property Code. If a check, instrument, or
601	601	other method of payment authorized under Section 113.048, Local
602	602	Government Code, [instrument] representing a reimbursement under
603	603	this section is not presented for payment or redeemed before the
604	604	90th day after it is issued:
605	605	(1) the instrument or other method of payment is
606	606	considered forfeited and is void; and
607	607	(2) the money represented by the instrument or other
608	608	method of payment may be placed or retained in the county's jury
609	609	fund, the county's general fund, or any other fund in which county
610	610	funds can be legally placed, at the discretion of the commissioners
611	611	court.
612	612	SECTION 30. Section 61.003, Government Code, is amended by
613	613	adding Subsection (e) to read as follows:
614	614	(e) Notwithstanding Subsection (a), a county that has
615	615	adopted a system or method of payment authorized by Section
616	616	113.048, Local Government Code, may provide a person who reports
617	617	for jury service in the county an opportunity to donate all, or a
618	618	specific part designated by the juror, of the juror's daily
619	619	reimbursement by completing a self-executing application on a form
620	620	prescribed by the commissioners court.
621	621	SECTION 31. Subchapter B, Chapter 281, Health and Safety
622	622	Code, is amended by adding Section 281.0282 to read as follows:
623	623	Sec. 281.0282. DALLAS COUNTY HOSPITAL DISTRICT; EMPLOYMENT
624	624	OF HEALTH CARE PROVIDERS AND PHYSICIANS. (a) The board of the
625	625	Dallas County Hospital District may appoint, contract for, or
626	626	employ physicians, dentists, and other health care providers as the
627	627	board considers necessary for the efficient operation of the
628	628	district.
629	629	(b) The term of an employment contract entered into under
630	630	this section may not exceed four years.
631	631	(c) This section may not be construed as authorizing the
632	632	board of the Dallas County Hospital District to supervise or
633	633	control the practice of medicine, as prohibited by Subtitle B,
634	634	Title 3, Occupations Code.
635	635	(d) The authority granted to the board of the Dallas County
636	636	Hospital District under Subsection (a) to employ physicians shall
637	637	apply only as necessary for the district to fulfill the district's
638	638	statutory mandate to provide medical care for the indigent and
639	639	needy residents of the district as provided by Section 281.046.
640	640	(e) The Dallas County Hospital District shall establish a
641	641	committee consisting of at least five actively practicing
642	642	physicians who provide care in the district. The committee shall
643	643	approve existing policies or adopt new policies, if no policies
644	644	exist, to ensure that a physician who is employed by the district is
645	645	exercising the physician's independent medical judgment in
646	646	providing care to patients.
647	647	(f) The chair of the committee must be a member of the
648	648	executive committee of the Dallas County Hospital District's
649	649	medical staff.
650	650	(g) The policies adopted or approved by the committee shall
651	651	include policies relating to credentialing, quality assurance,
652	652	utilization review, peer review, medical decision-making,
653	653	governance of the committee, and due process.
654	654	(h) Each member of a committee shall provide biennially to
655	655	the chief medical officer of the Dallas County Hospital District a
656	656	signed, verified statement indicating that the committee member:
657	657	(1) is licensed by the Texas Medical Board;
658	658	(2) will exercise independent medical judgment in all
659	659	committee matters, including matters relating to credentialing,
660	660	quality assurance, utilization review, peer review, medical
661	661	decision-making, and due process;
662	662	(3) will exercise the committee member's best efforts
663	663	to ensure compliance with the Dallas County Hospital District's
664	664	policies that are adopted or established by the committee; and
665	665	(4) will report immediately to the Texas Medical Board
666	666	any action or event that the committee member reasonably and in good
667	667	faith believes constitutes a compromise of the independent medical
668	668	judgment of a physician in caring for a patient.
669	669	(i) The committee shall adopt rules requiring the
670	670	disclosure of financial conflicts of interest by a committee
671	671	member.
672	672	(j) For all matters relating to the practice of medicine,
673	673	each physician employed by the board shall ultimately report to the
674	674	chief medical officer of the Dallas County Hospital District.
675	675	SECTION 32. Chapter 311, Health and Safety Code, is amended
676	676	by adding Subchapter E to read as follows:
677	677	SUBCHAPTER E. EMPLOYMENT OF PHYSICIANS BY CERTAIN HOSPITALS
678	678	Sec. 311.061. APPLICABILITY OF SUBCHAPTER. This subchapter
679	679	applies only to a hospital located in a county with a population of
680	680	50,000 or less and operated by a governmental entity.
681	681	Sec. 311.062. EMPLOYMENT OF PHYSICIAN PERMITTED. (a) A
682	682	hospital may employ a physician and retain all or part of the
683	683	professional income generated by the physician for medical services
684	684	provided at the hospital if the hospital:
685	685	(1) is certified by the Texas Medical Board under
686	686	Section 162.001(d), Occupations Code;
687	687	(2) satisfies the requirements of Subchapter A,
688	688	Chapter 162, Occupations Code, including Texas Medical Board rules;
689	689	and
690	690	(3) satisfies the requirements of this subchapter.
691	691	(b) A hospital subject to this subchapter may continue to
692	692	employ any physicians employed by the hospital on or before the date
693	693	of release of a federal decennial census that shows the county's
694	694	population exceeds 50,000. The hospital may not employ a new
695	695	physician after that date.
696	696	(c) The requirements of this subchapter and Subchapter A,
697	697	Chapter 162, Occupations Code, may not be voided or waived by
698	698	contract.
699	699	Sec. 311.063. HOSPITAL POLICIES. (a) A hospital shall
700	700	adopt, maintain, and enforce policies to ensure that a physician
701	701	employed under this subchapter whose professional income is
702	702	retained under Section 311.062 exercises independent medical
703	703	judgment when providing care to patients at the hospital.
704	704	(b) The policies adopted under this section must include
705	705	policies relating to:
706	706	(1) credentialing and privileges;
707	707	(2) quality assurance;
708	708	(3) utilization review;
709	709	(4) peer review;
710	710	(5) medical decision-making; and
711	711	(6) due process.
712	712	(c) The policies adopted under this section, including any
713	713	amendments to the policies, must be approved by the hospital
714	714	governing board after input from the medical staff as appropriate.
715	715	(d) The policies adopted under this section must include the
716	716	implementation of a complaint mechanism for processing and
717	717	resolving complaints regarding interference or attempted
718	718	interference with the physician's independent medical judgment.
719	719	The policies must address the manner in which the public can access
720	720	board complaint procedures.
721	721	(e) The policies of the hospital must be drafted and
722	722	interpreted in a manner that reserves to physicians, including
723	723	physicians employed and physicians not employed by the hospital,
724	724	the sole authority to engage in the practice of medicine.
725	725	Sec. 311.064. CREDENTIALING AND PRIVILEGES. (a) A
726	726	physician employed by a hospital under this subchapter is subject
727	727	to the same standards and procedures regarding credentialing, peer
728	728	review, quality of care, and privileges as a physician not employed
729	729	by the hospital.
730	730	(b) A hospital shall give equal consideration regarding the
731	731	issuance of credentials and privileges to physicians employed by
732	732	the hospital and physicians not employed by the hospital.
733	733	Sec. 311.065. OTHER HOSPITAL-PHYSICIAN RELATIONSHIPS.
734	734	This subchapter may not be construed as altering, voiding, or
735	735	prohibiting any relationship between a hospital and a physician,
736	736	including a contract or arrangement with an approved nonprofit
737	737	health corporation that is certified under Section 162.001(b),
738	738	Occupations Code, and that holds a certificate of authority issued
739	739	under Chapter 844, Insurance Code.
740	740	Sec. 311.066. MEDICAL STAFF BYLAWS. The medical staff
741	741	bylaws of a hospital may not discriminate against or favor a
742	742	physician based solely on the physician's employment status with
743	743	the hospital, including emergency call or charity care obligations.
744	744	Sec. 311.067. FAIR PROCESS; PEER REVIEW. (a) Termination
745	745	of a physician's employment by a hospital is subject to a fair
746	746	review process.
747	747	(b) A hospital that employs physicians shall provide peer
748	748	review and quality assurance through a multi-hospital peer review
749	749	agreement, an external independent peer review organization, or an
750	750	internal peer review process approved by the hospital governing
751	751	board with appropriate input from the medical staff.
752	752	Sec. 311.068. REFERRAL OF PATIENTS. (a) In this section,
753	753	"referral" means referral for admissions, diagnostic tests and
754	754	procedures, surgeries, or other health care services.
755	755	(b) An employment agreement entered into between a
756	756	physician and a hospital under this subchapter:
757	757	(1) must state that the hospital may not set goals
758	758	regarding referrals; and
759	759	(2) may not set, as a condition of employment, the
760	760	volume or number of referrals that must be made.
761	761	Sec. 311.069. NONRETALIATION REQUIREMENTS. (a) A hospital
762	762	may not terminate, retaliate against, or otherwise penalize a
763	763	person who reports in good faith to the hospital or the Texas
764	764	Medical Board a violation or attempted violation of this
765	765	subchapter, Subchapter A, Chapter 162, Occupations Code, or Texas
766	766	Medical Board rules.
767	767	(b) A hospital may not prohibit, restrict, or discourage a
768	768	physician from communicating with the hospital or advocating for a
769	769	patient regarding medically appropriate health care.
770	770	(c) A physician who makes a report under this section:
771	771	(1) is immune from civil liability for a report made in
772	772	good faith; and
773	773	(2) may not be disciplined by the Texas Medical Board
774	774	for any corporate practice of medicine violation related to the
775	775	reported action, event, or policy.
776	776	Sec. 311.070. LIABILITY. (a) In this section:
777	777	(1) "Governmental unit" has the meaning assigned by
778	778	Section 101.001, Civil Practice and Remedies Code.
779	779	(2) "Governmental hospital" means a hospital that is
780	780	owned or operated by a governmental unit.
781	781	(3) "Health care liability claim" has the meaning
782	782	assigned by Section 74.001, Civil Practice and Remedies Code.
783	783	(b) Chapters 101 and 108, Civil Practice and Remedies Code,
784	784	do not apply in an action in which final judgment is rendered in a
785	785	health care liability claim against a physician employed under this
786	786	subchapter by a governmental hospital.
787	787	(c) A physician's civil liability is limited to a maximum
788	788	amount of $250,000 for each single occurrence of bodily injury or
789	789	death in an action in which final judgment is rendered in a health
790	790	care liability claim against a physician employed under this
791	791	subchapter by a governmental hospital.
792	792	(d) A governmental hospital shall maintain professional
793	793	liability insurance or a plan of self-insurance covering each
794	794	physician employed by the hospital in the amount of $250,000 for
795	795	each single occurrence of bodily injury or death.
796	796	SECTION 33. Section 694.002, Health and Safety Code, is
797	797	amended by adding Subsections (c) and (d) to read as follows:
798	798	(c) If a county discovers cash in the possession of a
799	799	deceased pauper, the county shall place the money in a trust
800	800	account. A person having a claim to the money in the trust account
801	801	must exercise the right to collect the money not later than the
802	802	first anniversary of the date the money is placed in the trust
803	803	account.
804	804	(d) A county may create a fund to be used by the county to
805	805	pay the costs incurred in disposing of the bodies of deceased
806	806	paupers. If money placed in a trust account under Subsection (c) is
807	807	not claimed by the first anniversary of the date the money is placed
808	808	in the trust account, the county may transfer the money to the fund
809	809	created under this subsection.
810	810	SECTION 34. Section 716.101, Health and Safety Code, is
811	811	amended to read as follows:
812	812	Sec. 716.101. UNIDENTIFIED HUMAN REMAINS. (a) Except as
813	813	provided by Subsection (b), a [A] crematory establishment may not
814	814	accept for cremation unidentified human remains.
815	815	(b) Notwithstanding any other provision of this chapter, a
816	816	crematory establishment may accept for cremation unidentified
817	817	human remains from a county on the order of:
818	818	(1) the county commissioners court; or
819	819	(2) a court located in the county.
820	820	SECTION 35. Subchapter C, Chapter 113, Local Government
821	821	Code, is amended by adding Section 113.048 to read as follows:
822	822	Sec. 113.048. DISBURSEMENT OF MONEY FOR JURY SERVICE. (a)
823	823	Notwithstanding any other provision of this subchapter or other law
824	824	to the contrary, a county treasurer may disburse to a person who
825	825	reports for jury service and discharges the person's duty the daily
826	826	amount of reimbursement for jury service expenses set by the
827	827	commissioners court under Section 61.001, Government Code, by:
828	828	(1) using an electronic funds transfer system in
829	829	accordance with Chapter 156;
830	830	(2) using a cash dispensing machine;
831	831	(3) issuing a debit card or a stored value card; or
832	832	(4) using any other method that the county treasurer
833	833	and the commissioners court determine is secure, accurate, and
834	834	cost-effective and that is convenient for persons who report for
835	835	jury service.
836	836	(b) A system or method of payment adopted by a county
837	837	treasurer under Subsection (a) may be implemented only if it is
838	838	approved by the commissioners court and administered in accordance
839	839	with the procedures established by the county auditor or by the
840	840	chief financial officer of a county that does not have a county
841	841	auditor.
842	842	(c) A system or method of payment authorized by this section
843	843	may be used in lieu of or in addition to the issuance of warrants or
844	844	checks authorized under this subchapter.
845	845	SECTION 36. Sections 155.002(a) and (b), Local Government
846	846	Code, are amended to read as follows:
847	847	(a) A request for a payroll deduction must:
848	848	(1) be in writing;
849	849	(2) be submitted to the county auditor unless the
850	850	deduction is processed through an automated payroll system
851	851	maintained by the county; and
852	852	(3) state the amount to be deducted and the entity to
853	853	which the amount is to be transferred.
854	854	(b) A request remains in effect until:
855	855	(1) the county auditor receives a written notice of
856	856	revocation signed by the employee; or
857	857	(2) the deduction is revoked by the employee through
858	858	an automated payroll system maintained by the county.
859	859	SECTION 37. Subchapter Z, Chapter 157, Local Government
860	860	Code, is amended by adding Section 157.9031 to read as follows:
861	861	Sec. 157.9031. AUTHORITY TO REQUIRE REIMBURSEMENT FOR
862	862	CERTAIN COVERAGE. A commissioners court of a self-insuring county
863	863	or an intergovernmental pool operating under Chapter 119 may,
864	864	pursuant to policies concerning the provision of coverage adopted
865	865	by the commissioners court or the pool's governing body, require
866	866	reimbursement for the provision of punitive damage coverage from a
867	867	person to whom the intergovernmental pool provides coverage.
868	868	SECTION 38. Section 250.003(a), Local Government Code, is
869	869	amended to read as follows:
870	870	(a) An individual who is an employee of the owner of real
871	871	property for which a citation for a violation of a county or
872	872	municipal rule or ordinance is issued, or of a company that manages
873	873	the property on behalf of the property owner, is not personally
874	874	liable for criminal or civil penalties resulting from the violation
875	875	if, not later than five calendar days after the date the citation is
876	876	issued, the individual provides the property owner's name, current
877	877	street address, and telephone number to the enforcement official
878	878	who issues the citation or the official's superior.
879	879	SECTION 39. Section 250.004, Local Government Code, is
880	880	amended to read as follows:
881	881	Sec. 250.004. AGENT FOR SERVICE; NOTICE OF CITATION.
882	882	(a) The [If the property owner's street address is not in this
883	883	state, the] employee of the owner or management company to whom a
884	884	citation described by Section 250.003 is issued is considered the
885	885	owner's agent for accepting service of the citation for the
886	886	violation of the county or municipal rule or ordinance. Service of
887	887	the citation on the agent has the same legal effect as service on
888	888	the owner for the purpose of fines against the owner or the
889	889	property, including a warrant or capias.
890	890	(b) The county or municipality issuing the citation shall
891	891	mail notice of the citation to the property owner at the address
892	892	most recently provided to the county or municipality by the
893	893	property owner or by the employee of the owner or management company
894	894	under Section 250.003(a). This subsection does not require a
895	895	county or municipality to mail notice using a service that provides
896	896	delivery confirmation.
897	897	SECTION 40. Section 262.003(a), Local Government Code, is
898	898	amended to read as follows:
899	899	(a) Any law that requires a county to follow a competitive
900	900	bidding procedure in making a purchase requiring the expenditure of
901	901	$50,000 [$25,000] or less does not apply to the purchase of an item
902	902	available for purchase from only one supplier.
903	903	SECTION 41. Section 262.023(a), Local Government Code, is
904	904	amended to read as follows:
905	905	(a) Before a county may purchase one or more items under a
906	906	contract that will require an expenditure exceeding $50,000
907	907	[$25,000], the commissioners court of the county must:
908	908	(1) comply with the competitive bidding or competitive
909	909	proposal procedures prescribed by this subchapter;
910	910	(2) use the reverse auction procedure, as defined by
911	911	Section 2155.062(d), Government Code, for purchasing; or
912	912	(3) comply with a method described by Subchapter H,
913	913	Chapter 271.
914	914	SECTION 42. Section 270.007(f), Local Government Code, is
915	915	amended to read as follows:
916	916	(f) Except as provided by Subsection (b), [upon request of
917	917	any person,] a county may [shall] sell or license software under
918	918	this section for a price negotiated between the county and the
919	919	person, including another governmental entity [, not to exceed the
920	920	developmental cost to the county. Developmental cost shall only
921	921	include costs incurred under a contract to procure the software or
922	922	direct employee costs incurred to develop the software. This
923	923	subsection does not apply to any county software that protects
924	924	county computer systems from unauthorized use or access].
925	925	SECTION 43. Section 271.024, Local Government Code, is
926	926	amended to read as follows:
927	927	Sec. 271.024. COMPETITIVE BIDDING PROCEDURE APPLICABLE TO
928	928	CONTRACT. The bidding of [If a governmental entity is required by
929	929	statute to award] a contract awarded by a governmental entity for
930	930	the construction, repair, or renovation of a structure, road,
931	931	highway, or other improvement or addition to real property [on the
932	932	basis of competitive bids, and if the contract requires the
933	933	expenditure of more than $25,000 from the funds of the entity, the
934	934	bidding on the contract] must be accomplished in the manner
935	935	provided by this subchapter if:
936	936	(1) a statute requires the governmental entity to
937	937	award the contract on the basis of competitive bids; and
938	938	(2) the contract requires the expenditure of more
939	939	than:
940	940	(A) $25,000 from the funds of a governmental
941	941	entity other than a county; or
942	942	(B) $50,000 from the funds of a county.
943	943	SECTION 44. Section 363.156(b), Local Government Code, is
944	944	amended to read as follows:
945	945	(b) To the extent competitive bidding procedures in Title 8
946	946	apply, the board may not enter purchasing contracts that involve
947	947	spending more than $50,000 [$25,000] unless the board complies
948	948	with:
949	949	(1) Subchapter C, Chapter 262, if the district was
950	950	created by a county; or
951	951	(2) Chapter 252, if the district was created by a
952	952	municipality.
953	953	SECTION 45. Subchapter A, Chapter 372, Local Government
954	954	Code, is amended to read as follows:
955	955	SUBCHAPTER A. PUBLIC IMPROVEMENT DISTRICTS
956	956	Sec. 372.001. SHORT TITLE. This subchapter may be cited as
957	957	the Public Improvement District Assessment Act.
958	958	Sec. 372.0015. DEFINITIONS [DEFINITION]. In this
959	959	subchapter:
960	960	(1) "Authorized instrumentality" means a public
961	961	facility corporation created by the governing body of a
962	962	municipality or county under Chapter 303 or a local government
963	963	corporation created by the governing body of a municipality or
964	964	county under Subchapter D, Chapter 431, Transportation Code.
965	965	(2) "Extraterritorial[, "extraterritorial]
966	966	jurisdiction" means extraterritorial jurisdiction of a
967	967	municipality as determined under Chapter 42.
968	968	(3) "Public improvement district" or "district" means
969	969	an area defined by the governing body of a municipality or county
970	970	that:
971	971	(A) consists of one or more contiguous or
972	972	noncontiguous tracts of land; and
973	973	(B) will be specially benefited as determined by
974	974	the municipality or county by any or all of the public improvements
975	975	or services.
976	976	(4) "Qualified costs" means the costs and expenses
977	977	incurred in establishing, administering, managing, and operating a
978	978	public improvement district, including:
979	979	(A) costs and expenses of or related to the
980	980	construction of an improvement project;
981	981	(B) financing of an improvement project by a
982	982	municipality, county, or authorized instrumentality, including the
983	983	debt service requirements owed or to be owed under installment
984	984	purchase or reimbursement contracts, temporary notes, time
985	985	warrants, revenue bonds, special assessment bonds, or certificates
986	986	of obligation, including reserve funds and capitalized interest;
987	987	(C) costs and expenses of or related to the
988	988	negotiation, development, and execution of the obligations
989	989	described by Paragraph (B);
990	990	(D) costs and expenses of or related to credit
991	991	and interest rate management agreements entered into under Chapter
992	992	1371, Government Code;
993	993	(E) costs of attorneys and other professional
994	994	advisors, including consultants; and
995	995	(F) costs related to the administrative
996	996	oversight of public improvements, services, and operations of the
997	997	public improvement district.
998	998	(5) "Revenue bonds" means bonds, notes, or other
999	999	securities issued by a municipality, county, or authorized
1000	1000	instrumentality that are payable from and secured by liens on all or
1001	1001	part, or a combination of, the revenue derived from installment
1002	1002	payments of special assessments plus any other revenues, donations,
1003	1003	grants, or income described by Section 372.026(e).
1004	1004	(6) "Special assessment bonds" means bonds, notes, or
1005	1005	other securities issued by a municipality, county, or authorized
1006	1006	instrumentality that are payable solely from and secured by special
1007	1007	assessments levied by the governing body of the municipality or
1008	1008	county in a public improvement district.
1009	1009	(7) "Special district" means a political subdivision
1010	1010	of this state with a limited geographic area created by local law or
1011	1011	under general law for a special purpose.
1012	1012	Sec. 372.002. EXERCISE OF POWERS. (a) A public
1013	1013	improvement district is not a separate body politic or corporate
1014	1014	from the municipality or county that created the district.
1015	1015	(b) Subject to Section 372.010(c), powers [Powers] granted
1016	1016	under this subchapter in an area comprising a public improvement
1017	1017	district may be exercised by a municipality or county on and after
1018	1018	the date [in which] the governing body of the municipality or county
1019	1019	[initiates or] receives a petition requesting the establishment of
1020	1020	a public improvement district that complies[. A petition must
1021	1021	comply] with the requirements of Section 372.005.
1022	1022	(c) The powers granted under this subchapter may be
1023	1023	exercised by the governing body of any other political subdivision
1024	1024	if the law creating or governing the political subdivision grants
1025	1025	the political subdivision authority described by this subchapter.
1026	1026	The governing body of the political subdivision has the same powers
1027	1027	and is subject to the same limitations as are applicable to the
1028	1028	governing body of a municipality or a county under this subchapter
1029	1029	unless and except as modified by the law creating or governing the
1030	1030	political subdivision.
1031	1031	Sec. 372.003. AUTHORIZED IMPROVEMENTS AND SERVICES.
1032	1032	(a) If the governing body of a municipality or county finds that it
1033	1033	promotes the interests of the municipality or county, the governing
1034	1034	body may create one or more public improvement districts under this
1035	1035	subchapter and undertake one or more [an] improvement projects
1036	1036	[project] that confer [confers] a special benefit on the property
1037	1037	located in the public improvement district [a definable part of the
1038	1038	municipality or county or the municipality's extraterritorial
1039	1039	jurisdiction]. A project may be undertaken within or outside the
1040	1040	district in the municipality or county or in the municipality's
1041	1041	extraterritorial jurisdiction if the project benefits the
1042	1042	district.
1043	1043	(b) A public improvement project may include:
1044	1044	(1) landscaping;
1045	1045	(2) erection of fountains, distinctive lighting, and
1046	1046	signs;
1047	1047	(3) acquiring, constructing, improving, repairing,
1048	1048	widening, narrowing, closing, or rerouting of sidewalks or of
1049	1049	streets, roads, highways, bridges, culverts, water retention
1050	1050	walls, [any other roadways,] or related [their] rights-of-way owned
1051	1051	by or to be conveyed to the municipality, the county, the federal
1052	1052	government, or another political subdivision or entity exercising
1053	1053	powers granted under this subchapter;
1054	1054	(4) construction or improvement of pedestrian malls;
1055	1055	(5) acquisition and installation of pieces of art;
1056	1056	(6) acquisition, construction, or improvement of
1057	1057	[libraries;
1058	1058	[(7) acquisition, construction, or improvement of]
1059	1059	off-street parking facilities;
1060	1060	(7) [(8)] acquisition, construction, or improvement[,
1061	1061	or rerouting] of mass transportation facilities, including light
1062	1062	rail mass transit, streetcar, or similar systems, and related
1063	1063	vehicle parking facilities;
1064	1064	(8) [(9)] acquisition, construction, or improvement
1065	1065	of water, wastewater, or drainage facilities or improvements;
1066	1066	(9) [(10)] the establishment or improvement of parks,
1067	1067	playgrounds, lakes, and open spaces, including paths, trails, boat
1068	1068	docks, and wharves;
1069	1069	(10) acquisition, construction, or improvement of
1070	1070	other public projects that are determined by the municipality or
1071	1071	county to promote the interests of the municipality or county and to
1072	1072	be of a special benefit to the public improvement district,
1073	1073	including:
1074	1074	(A) community centers, recreation centers, and
1075	1075	recreation facilities;
1076	1076	(B) libraries;
1077	1077	(C) facilities for police, sheriffs, or
1078	1078	firefighters;
1079	1079	(D) municipal or county administration centers;
1080	1080	and
1081	1081	(E) other governmental buildings for the
1082	1082	provision of governmental services;
1083	1083	(11) acquisition, construction, or improvement of
1084	1084	other public projects, facilities, or services required by a
1085	1085	development agreement, interlocal agreement, zoning regulation, or
1086	1086	permit issued by a municipality or county having jurisdiction in
1087	1087	the public improvement district;
1088	1088	(12) acquisition, construction, maintenance, or
1089	1089	improvement of buildings and other facilities commonly used for
1090	1090	teaching, research, or the preservation of knowledge by an
1091	1091	institution of higher education as defined by Section 372.0045 or
1092	1092	for auxiliary purposes of the institution, including
1093	1093	administration, student services and housing, athletics,
1094	1094	performing arts, and alumni support;
1095	1095	(13) [(11) projects similar to those listed in
1096	1096	Subdivisions (1)-(10);
1097	1097	[(12)] acquisition, by purchase or otherwise, of real
1098	1098	property in connection with an authorized improvement; and
1099	1099	(14) [(13)] special supplemental services for
1100	1100	improvement and promotion of the district, including services
1101	1101	relating to:
1102	1102	(A) advertising;
1103	1103	(B) [,] promotion;
1104	1104	(C) [,] health and sanitation;
1105	1105	(D) [,] water and wastewater;
1106	1106	(E) enhanced fire protection, police, sheriff,
1107	1107	and other[,] public safety and[,] security;
1108	1108	(F) [,] business recruitment;
1109	1109	(G) [,] development;
1110	1110	(H) [,] recreation;[,] and
1111	1111	(I) cultural enhancement[; and
1112	1112	[(14) payment of expenses incurred in the
1113	1113	establishment, administration, and operation of the district].
1114	1114	(b-1) The legislature finds that a purpose described by
1115	1115	Subsection (b)(12), including an auxiliary purpose, is an
1116	1116	authorized economic development purpose of a county or municipality
1117	1117	under Section 52-a, Article III, Texas Constitution.
1118	1118	(c) A public improvement project may include or may be
1119	1119	limited to the provision of all or any part of the services
1120	1120	described by Subsection (b)(14) [(b)(13)].
1121	1121	(d) A municipality that exercises powers under this
1122	1122	subchapter may establish a public improvement district in the
1123	1123	corporate limits or the extraterritorial jurisdiction of the
1124	1124	municipality. A county or other political subdivision that
1125	1125	exercises powers under this subchapter may establish a public
1126	1126	improvement district in the county or the area of the political
1127	1127	subdivision, including in the corporate limits or the
1128	1128	extraterritorial jurisdiction of a municipality unless within 30
1129	1129	days after the date notice is provided to the municipality of an [a
1130	1130	county's] action to approve [such] a public improvement district,
1131	1131	the [a home rule] municipality objects to the district's [its]
1132	1132	establishment within the municipality's corporate limits or
1133	1133	extraterritorial jurisdiction.
1134	1134	Sec. 372.004. COMBINED IMPROVEMENTS. A public [An]
1135	1135	improvement project may consist of an improvement on more than one
1136	1136	street or of more than one type of improvement. An improvement [A]
1137	1137	project described by this section may be included in one proceeding
1138	1138	and financed as one improvement project.
1139	1139	Sec. 372.0045. AUTHORIZED HIGHER EDUCATION FACILITIES;
1140	1140	LEASE TO INSTITUTION OF HIGHER EDUCATION. (a) In this section,
1141	1141	"institution of higher education" has the meaning assigned by
1142	1142	Section 61.003, Education Code.
1143	1143	(b) The governing body of a municipality or county that
1144	1144	establishes a public improvement district to finance a public
1145	1145	improvement project described by Section 372.003(b)(12) may enter
1146	1146	into a memorandum of understanding with an institution of higher
1147	1147	education that provides educational services in the municipality or
1148	1148	county under which the municipality or county leases the public
1149	1149	improvement project to the institution, at a nominal rate, for use
1150	1150	by the institution in providing teaching, research, public service,
1151	1151	or auxiliary enterprise activities to students of the institution.
1152	1152	(c) A memorandum of understanding entered into by a
1153	1153	municipality or county under this section must include adequate
1154	1154	controls to ensure that the lease of the public improvement project
1155	1155	promotes the municipality's or county's interests and provides a
1156	1156	public benefit to the area served by the district.
1157	1157	Sec. 372.005. PETITION. (a) A petition for the
1158	1158	establishment of a public improvement district must state:
1159	1159	(1) the general nature of the proposed improvements
1160	1160	[improvement];
1161	1161	(2) the estimated qualified costs [cost] of the
1162	1162	improvements [improvement];
1163	1163	(3) the boundaries of the proposed [assessment]
1164	1164	district;
1165	1165	(4) the proposed method of assessment, which may
1166	1166	specify included or excluded classes of assessable property;
1167	1167	(5) [the proposed apportionment of cost between the
1168	1168	public improvement district and the municipality or county as a
1169	1169	whole;
1170	1170	[(6)] whether the management of the district is to be
1171	1171	by:
1172	1172	(A) the municipality;
1173	1173	(B) the [or] county;
1174	1174	(C) an authorized instrumentality;
1175	1175	(D) [,] the private sector;[,] or
1176	1176	(E) a partnership between the private sector and
1177	1177	one of the entities described by Paragraphs (A)-(C) [municipality
1178	1178	or county and the private sector];
1179	1179	(6) [(7)] that the persons signing the petition
1180	1180	request or concur with the establishment of the district; and
1181	1181	(7) [(8)] that an advisory body may be established or
1182	1182	an authorized instrumentality may be incorporated to develop and
1183	1183	recommend an improvement plan to the governing body of the
1184	1184	municipality or county.
1185	1185	(b) The petition is sufficient if signed by:
1186	1186	(1) owners of taxable real property representing more
1187	1187	than 50 percent of the appraised value of taxable real property
1188	1188	liable for assessment under the proposal, as determined by the
1189	1189	current roll of the appraisal district in which the property is
1190	1190	located; and
1191	1191	(2) record owners of real property liable for
1192	1192	assessment under the proposal who:
1193	1193	(A) constitute more than 50 percent of all record
1194	1194	owners of property that is liable for assessment under the
1195	1195	proposal; or
1196	1196	(B) own taxable real property that constitutes
1197	1197	more than 50 percent of the area of all taxable real property that
1198	1198	is liable for assessment under the proposal.
1199	1199	(c) A [The] petition filed with the municipality may be
1200	1200	filed with the municipal secretary or other officer performing the
1201	1201	functions of the municipal secretary. A petition filed with the
1202	1202	county may be filed with the county clerk or other officer
1203	1203	designated by the commissioners court. A petition filed with any
1204	1204	other political subdivision exercising powers under this
1205	1205	subchapter may be filed with the political subdivision's governing
1206	1206	body.
1207	1207	Sec. 372.006. FINDINGS. (a) If a petition that complies
1208	1208	with this subchapter is filed, the governing body of the
1209	1209	municipality or county may make findings by resolution as to:
1210	1210	(1) the advisability of the proposed improvements;
1211	1211	(2) the [improvement, its] estimated qualified costs
1212	1212	of the proposed improvements; and
1213	1213	(3) [cost,] the method of assessment[, and the
1214	1214	apportionment of cost between the proposed improvement district and
1215	1215	the municipality or county as a whole].
1216	1216	(b) The governing body's findings under this section are
1217	1217	conclusive.
1218	1218	Sec. 372.007. FEASIBILITY REPORT. (a) Before holding the
1219	1219	hearing required by Section 372.009, the governing body of the
1220	1220	municipality may use the services of municipal employees, the
1221	1221	governing body of the county may use the services of county
1222	1222	employees, or the governing body of the municipality or county may
1223	1223	employ consultants to prepare a report to determine whether
1224	1224	improvements [an improvement] should be made as proposed by
1225	1225	petition or otherwise or whether improvements [the improvement]
1226	1226	should be made in combination with other improvements authorized
1227	1227	under this subchapter. The governing body may also require that a
1228	1228	preliminary estimate of the qualified costs [cost] of improvements
1229	1229	[the improvement] or a combination of improvements be made.
1230	1230	(b) For the purpose of determining the feasibility and
1231	1231	desirability of a public [an] improvement district, the governing
1232	1232	body may take other preliminary steps before the hearing required
1233	1233	by Section 372.009 and[,] before establishing a public improvement
1234	1234	district[, or before entering into a contract].
1235	1235	Sec. 372.008. ADVISORY BODY. (a) The [After receiving a
1236	1236	petition that complies with Section 372.005, the] governing body of
1237	1237	the municipality or county, on the governing body's own initiative
1238	1238	or after receiving a petition that complies with Section 372.005,
1239	1239	may appoint an advisory body with the responsibility of developing
1240	1240	and recommending an improvement plan to the governing body.
1241	1241	(b) The composition of an [the] advisory body, if
1242	1242	established, must include:
1243	1243	(1) owners of taxable real property representing more
1244	1244	than 50 percent of the appraised value of taxable real property
1245	1245	liable for assessment under the proposal, as determined by the
1246	1246	current roll of the appraisal district in which the property is
1247	1247	located; and
1248	1248	(2) record owners of real property liable for
1249	1249	assessment under the proposal who:
1250	1250	(A) constitute more than 50 percent of all record
1251	1251	owners of property that is liable for assessment under the
1252	1252	proposal; or
1253	1253	(B) own taxable real property that constitutes
1254	1254	more than 50 percent of the area of all taxable real property that
1255	1255	is liable for assessment under the proposal.
1256	1256	(c) The members of the advisory body serve at the will of the
1257	1257	governing body of the municipality or county creating the public
1258	1258	improvement district and may be removed at any time.
1259	1259	Sec. 372.009. HEARING. (a) A public improvement district
1260	1260	may be established and improvements provided by the district may be
1261	1261	financed under this subchapter only after the governing body of the
1262	1262	municipality or county holds a public hearing on the advisability
1263	1263	of the improvements [improvement].
1264	1264	(b) The hearing may be adjourned from time to time until the
1265	1265	governing body makes findings by resolution as to:
1266	1266	(1) the advisability of each [the] improvement;
1267	1267	(2) the nature of each [the] improvement;
1268	1268	(3) the estimated qualified costs [cost] of each [the]
1269	1269	improvement;
1270	1270	(4) the boundaries of the [public improvement]
1271	1271	district; and
1272	1272	(5) the method of assessment[; and
1273	1273	[(6) the apportionment of costs between the district
1274	1274	and the municipality or county as a whole].
1275	1275	(c) Notice of the hearing must be given in a newspaper of
1276	1276	general circulation in the municipality or county. If any part of
1277	1277	the public improvement district is to be located in the
1278	1278	municipality's extraterritorial jurisdiction or if any part of the
1279	1279	improvements is to be undertaken in the municipality's
1280	1280	extraterritorial jurisdiction, the notice must also be filed with
1281	1281	the municipal secretary or other officer performing the duties of
1282	1282	the municipal secretary and published [given] in a newspaper of
1283	1283	general circulation in the part of the extraterritorial
1284	1284	jurisdiction in which the district is to be located or in which the
1285	1285	improvements are to be undertaken. The final publication of notice
1286	1286	must be made before the 15th day before the date of the hearing. The
1287	1287	notice must state:
1288	1288	(1) the time and place of the hearing;
1289	1289	(2) the general nature of the proposed improvements
1290	1290	[improvement];
1291	1291	(3) the estimated qualified costs [cost] of the
1292	1292	proposed improvements [improvement];
1293	1293	(4) the boundaries of the proposed public improvement
1294	1294	[assessment] district; and
1295	1295	(5) the proposed method of assessment[; and
1296	1296	[(6) the proposed apportionment of cost between the
1297	1297	improvement district and the municipality or county as a whole].
1298	1298	(d) Written notice containing the information required by
1299	1299	Subsection (c) must be mailed before the 15th day before the date of
1300	1300	the hearing. The notice must be addressed to "Property Owner" and
1301	1301	mailed to the current address of the owner, as reflected on tax
1302	1302	rolls, of property subject to assessment under the proposed public
1303	1303	improvement district.
1304	1304	Sec. 372.010. IMPROVEMENT ORDER. (a) During the six-month
1305	1305	period after the date of the final adjournment of the hearing under
1306	1306	Section 372.009, the governing body of the municipality or county
1307	1307	may authorize the creation of a public [an] improvement district
1308	1308	subject to Section 372.012 if, by majority vote of all members of
1309	1309	the governing body, the governing body adopts [members adopt] a
1310	1310	resolution authorizing the district in accordance with its finding
1311	1311	as to the advisability of the improvements [improvement].
1312	1312	(b) An authorization takes effect when it has been published
1313	1313	one time in a newspaper of general circulation in the municipality
1314	1314	or county. If any part of the [improvement] district is located in
1315	1315	the municipality's extraterritorial jurisdiction or if any part of
1316	1316	the improvements is to be undertaken in the municipality's
1317	1317	extraterritorial jurisdiction, the authorization does not take
1318	1318	effect until the notice is also given one time in a newspaper of
1319	1319	general circulation in the part of the extraterritorial
1320	1320	jurisdiction in which the district is located or in which the
1321	1321	improvements are to be undertaken.
1322	1322	(c) Actual construction of improvements [an improvement]
1323	1323	may not begin, and acquisition of existing improvements may not
1324	1324	occur, until after the 20th day after the date the authorization
1325	1325	takes effect and may not begin if during that 20-day period written
1326	1326	protests signed by at least two-thirds of the owners of record of
1327	1327	property within the [improvement] district or by the owners of
1328	1328	record of property comprising at least two-thirds of the total area
1329	1329	of the district are filed with the municipal [or county] secretary
1330	1330	or other officer performing the duties of the municipal [or county]
1331	1331	secretary or the county clerk or other officer designated by the
1332	1332	commissioners court. A person whose name appears on a protest may
1333	1333	withdraw the name from the protest at any time before the governing
1334	1334	body of the municipality or county convenes to determine the
1335	1335	sufficiency of the protest.
1336	1336	(d) Before the levy of assessments under Section 372.017,
1337	1337	the property owners in the district who signed the original
1338	1338	petition may petition the governing body to amend the resolution
1339	1339	creating the district adopted under Subsection (a) to amend the
1340	1340	estimated qualified costs of the improvements, including adding or
1341	1341	deleting improvement projects. The governing body shall provide
1342	1342	notice of the owners' petition and hold a public hearing as provided
1343	1343	by Section 372.009 to make findings, by amended resolution, of the
1344	1344	nature and estimated qualified costs of each improvement. A county
1345	1345	or other entity that proposes to amend a resolution under this
1346	1346	subsection in the corporate boundaries or extraterritorial
1347	1347	jurisdiction of a municipality shall provide notice to the
1348	1348	municipality on or before the 30th day before the date the entity
1349	1349	amends the resolution.
1350	1350	Sec. 372.011. DISSOLUTION. (a) A public hearing may be
1351	1351	[called and] held after giving notice in the same manner as a
1352	1352	hearing under Section 372.009 for the purpose of dissolving a
1353	1353	district if a petition requesting dissolution is filed and the
1354	1354	petition contains the signatures of at least enough property owners
1355	1355	in the district to make a petition sufficient under Section
1356	1356	372.005(b). If the district is dissolved, the district nonetheless
1357	1357	shall remain in effect for the purpose of meeting obligations of
1358	1358	indebtedness for improvements.
1359	1359	(b) A district may be dissolved at the discretion of the
1360	1360	governing body without a petition only if no assessments have been
1361	1361	levied on property in the district or if assessments previously
1362	1362	levied have been paid in full and the district has no other
1363	1363	outstanding obligations. A dissolution under this subsection may
1364	1364	not occur until after the governing body holds a hearing and gives
1365	1365	notice in the manner required by Section 372.009.
1366	1366	Sec. 372.012. AREA OF DISTRICT. The area of a public
1367	1367	improvement district to be assessed according to the findings of
1368	1368	the governing body of the municipality or county establishing the
1369	1369	boundaries may include contiguous and noncontiguous tracts of land
1370	1370	and may be less than the area described in the proposed boundaries
1371	1371	stated by the notice under Section 372.009. The area to be assessed
1372	1372	may not include property not described by the notice as being within
1373	1373	the proposed boundaries of the district unless a hearing is held to
1374	1374	include the property and notice for the hearing is given in the same
1375	1375	manner as notice under Section 372.009.
1376	1376	Sec. 372.013. SERVICE PLAN. (a) The advisory body shall
1377	1377	prepare an ongoing service plan and present the plan to the
1378	1378	governing body of the municipality or county for review and
1379	1379	approval. The governing body may assign responsibility for the
1380	1380	plan to the employees of the governing body or an authorized
1381	1381	instrumentality or to another entity instead [in the absence] of an
1382	1382	advisory body.
1383	1383	(b) The plan must cover a period of at least five years and
1384	1384	must also define the annual indebtedness and the projected
1385	1385	qualified costs for improvements.
1386	1386	(c) The plan shall be reviewed and updated annually for the
1387	1387	purpose of determining the annual budget for improvements. As part
1388	1388	of the annual update, a revised assessment roll must be prepared to
1389	1389	reflect any division of parcels and any reallocation of assessments
1390	1390	based on the division.
1391	1391	Sec. 372.014. ASSESSMENT PLAN; PAYMENT BY EXEMPT
1392	1392	JURISDICTIONS. (a) An assessment plan must be included in the
1393	1393	annual service plan prepared under Section 372.013.
1394	1394	(b) The municipality or county is responsible for payment of
1395	1395	assessments against exempt municipal or county property in the
1396	1396	district if any assessments are levied. Payment of assessments by
1397	1397	other exempt jurisdictions must be established by contract.
1398	1398	(c) The assessment plan may require the district to be
1399	1399	divided into development phases and, subject to Sections 372.016
1400	1400	and 372.017, may levy assessments periodically in separate
1401	1401	development phases or may stagger the collection of assessments,
1402	1402	with different development phases in the district assigned
1403	1403	different payment and collection dates. The development phases and
1404	1404	staggered collection dates may be coordinated with the installation
1405	1405	of the improvements or with the maturity dates of installation
1406	1406	purchase or reimbursement contract obligations or with temporary
1407	1407	notes, time warrants, or bonds [An assessment paid by the
1408	1408	municipality or county under this subsection is considered to have
1409	1409	been paid by special assessment for the purposes of Subsection
1410	1410	(a)].
1411	1411	Sec. 372.015. DETERMINATION OF ASSESSMENT. (a) The
1412	1412	governing body of the municipality or county shall apportion the
1413	1413	qualified costs [cost] of an improvement to be assessed against
1414	1414	property in a public [an] improvement district. The apportionment
1415	1415	shall be made on the basis of special benefits accruing to the
1416	1416	property because of the improvement.
1417	1417	(b) The qualified costs [Cost] of an improvement may be
1418	1418	assessed:
1419	1419	(1) equally per front foot or square foot;
1420	1420	(2) according to the value of the property as
1421	1421	determined by the governing body, with or without regard to
1422	1422	improvements on the property; or
1423	1423	(3) in any other manner that results in imposing equal
1424	1424	shares of the qualified costs [cost] on property similarly
1425	1425	benefitted.
1426	1426	(c) The governing body may establish by ordinance or order:
1427	1427	(1) reasonable classifications and formulas for the
1428	1428	apportionment of the qualified costs [cost] between the
1429	1429	municipality or county and the area to be assessed; and
1430	1430	(2) the methods of assessing the special benefits for
1431	1431	various classes of improvements.
1432	1432	(d) The amount of assessment for each property owner may be:
1433	1433	(1) adjusted following the annual review of the
1434	1434	service plan; and
1435	1435	(2) reallocated, but not increased, if an assessed
1436	1436	parcel has been divided.
1437	1437	(e) Notice of any reallocation of assessments shall be given
1438	1438	to the property owner of the divided parcel.
1439	1439	(f) The findings, determinations, and assessments made by
1440	1440	the governing body under this section are conclusive.
1441	1441	Sec. 372.016. ASSESSMENT ROLL. (a) The [After the total
1442	1442	cost of an improvement is determined, the governing body of the]
1443	1443	municipality or county shall prepare a proposed assessment roll
1444	1444	based on the estimated qualified costs of the improvements. The
1445	1445	roll must state the assessment against each parcel of land in the
1446	1446	district and[, as determined by] the method of assessment [chosen
1447	1447	by the municipality or county under this subchapter].
1448	1448	(b) The [governing body shall file the] proposed assessment
1449	1449	roll must be filed with the municipal secretary or other officer
1450	1450	performing the functions of the municipal secretary or in a
1451	1451	district formed by a county, the county tax assessor-collector.
1452	1452	The proposed assessment roll is subject to public inspection. When
1453	1453	the assessment roll is filed, the appropriate designated officer
1454	1454	described by this subsection shall [The governing body shall
1455	1455	require the municipal secretary or other officer or county tax
1456	1456	assessor-collector to] publish notice of the governing body's
1457	1457	intention to consider the proposed assessments at a public hearing.
1458	1458	The notice must be published in a newspaper of general circulation
1459	1459	in the municipality or county before the 10th day before the date of
1460	1460	the hearing. If any part of the public improvement district is
1461	1461	located in the municipality's extraterritorial jurisdiction or if
1462	1462	any part of the improvements is to be undertaken in the
1463	1463	municipality's extraterritorial jurisdiction, the notice must also
1464	1464	be published, before the 10th day before the date of the hearing, in
1465	1465	a newspaper of general circulation in the part of the
1466	1466	extraterritorial jurisdiction in which the district is located or
1467	1467	in which the improvements are to be undertaken. The notice must
1468	1468	state:
1469	1469	(1) the date, time, and place of the hearing;
1470	1470	(2) the general nature of the improvements
1471	1471	[improvement];
1472	1472	(3) the qualified costs [cost] of the improvements
1473	1473	[improvement];
1474	1474	(4) the boundaries of the [assessment] district; and
1475	1475	(5) that written or oral objections will be considered
1476	1476	at the hearing.
1477	1477	(c) When the assessment roll is filed under Subsection (b),
1478	1478	the appropriate designated [municipal secretary or other] officer
1479	1479	shall mail to the owners of property liable for assessment a notice
1480	1480	of the hearing. The notice must contain the information required by
1481	1481	Subsection (b) and the appropriate designated [secretary or other]
1482	1482	officer shall mail the notice to the last known address of the
1483	1483	property owner. The failure of a property owner to receive notice
1484	1484	does not invalidate the proceeding.
1485	1485	Sec. 372.017. LEVY OF ASSESSMENTS [ASSESSMENT]. (a) At or
1486	1486	on the adjournment of the hearing referred to by Section 372.016 on
1487	1487	proposed assessments, the governing body of the municipality or
1488	1488	county must hear and pass on any objection to a proposed assessment.
1489	1489	The governing body may:
1490	1490	(1) amend a proposed assessment on any parcel; and
1491	1491	(2) initially or by amendment, provide for reductions
1492	1492	of the amount of the annual assessment installments if and to the
1493	1493	extent other revenues of the municipality or county of any of the
1494	1494	types described by Section 372.026(e) are pledged or become
1495	1495	available to pay all or part of installment purchase or
1496	1496	reimbursement contract obligations or temporary notes, time
1497	1497	warrants, revenue bonds, special assessment bonds, or certificates
1498	1498	of obligation that are payable in whole or in part from the
1499	1499	assessment installments.
1500	1500	(b) After all objections have been heard and the governing
1501	1501	body has passed on the objections, the governing body by ordinance
1502	1502	or order shall levy the assessment in the amount required to pay
1503	1503	qualified costs as a special assessment on the property. The
1504	1504	governing body by ordinance or order shall specify the method of
1505	1505	payment of the assessment. The governing body may provide that
1506	1506	assessments be paid in periodic installments. The installments may
1507	1507	be in equal or different annual amounts, but must be in amounts each
1508	1508	year necessary to meet annual qualified costs. The installments
1509	1509	[for improvements and] must continue for a period and be in amounts
1510	1510	necessary to retire any [the] indebtedness or obligation to pay or
1511	1511	reimburse for the qualified costs, including the proper
1512	1512	administration of the district [on the improvements]. The
1513	1513	obligation to pay installments may be conditioned on the occurrence
1514	1514	of a future event or condition if the first periodic installment
1515	1515	payment of the assessment occurs on a date not later than the fifth
1516	1516	anniversary of the date the assessment was levied.
1517	1517	(c) The governing body may:
1518	1518	(1) levy multiple assessments on property in the
1519	1519	district to finance all or part of public improvements and must
1520	1520	comply with Section 372.016 for each assessment;
1521	1521	(2) execute and deliver installment purchase or
1522	1522	reimbursement contracts or temporary notes or time warrants or
1523	1523	issue revenue bonds, special assessment bonds, or certificates of
1524	1524	obligation to pay the qualified costs or to refund previously
1525	1525	executed installment purchase or reimbursement contracts or
1526	1526	temporary notes or time warrants; and
1527	1527	(3) secure the obligations described by Subdivision
1528	1528	(2) by pledging one or more of the assessments levied under this
1529	1529	subchapter.
1530	1530	Sec. 372.018. INTEREST ON ASSESSMENT; LIEN. (a) An
1531	1531	assessment bears interest at the rate and for the period specified
1532	1532	by the governing body of the municipality or county, but may not
1533	1533	exceed a rate that is [one-half of] one percent higher than the
1534	1534	actual interest rate paid on any installment purchase or
1535	1535	reimbursement contract obligation or temporary note or time warrant
1536	1536	[the public debt] used to finance or to evidence an obligation to
1537	1537	pay for the improvement. If revenue bonds, special assessment
1538	1538	bonds, or certificates of obligation are issued to pay or refund any
1539	1539	of the obligations described by this subsection, the annual
1540	1540	interest rate is adjusted to a rate not to exceed one percent higher
1541	1541	than the actual rate paid on the bonds or certificates, if the rate
1542	1542	is lower than the rate on the obligations. Interest on the
1543	1543	assessment between the effective date of the ordinance or order
1544	1544	levying the assessment and the date the first installment is
1545	1545	payable shall be added to the first installment. The interest on
1546	1546	any delinquent installment shall be added to each subsequent
1547	1547	installment until all delinquent installments are paid. The added
1548	1548	interest payable on an installment purchase or reimbursement
1549	1549	contract or a temporary note, time warrant, or bond under this
1550	1550	subsection may be used by a municipality or county to pay qualified
1551	1551	costs of improvements or the costs of administration of the
1552	1552	district, including the enforcement of assessments or the payment
1553	1553	or prepayment of obligations.
1554	1554	(b) An assessment or reassessment, with interest, the
1555	1555	expense of collection, and reasonable attorney's fees, if incurred,
1556	1556	is a first and prior lien against the property assessed, superior to
1557	1557	all other liens and claims except liens or claims for [state,]
1558	1558	county, special [school] district, or municipality ad valorem
1559	1559	taxes, and is a personal liability of and charge against the owners
1560	1560	of the property regardless of whether the owners are named. The
1561	1561	lien is effective from the date of the ordinance or order levying
1562	1562	the assessment until the assessment is paid in full and may be
1563	1563	enforced by the governing body in the same manner that an ad valorem
1564	1564	tax lien against real property may be enforced by the governing
1565	1565	body. On the sale of assessed property, any installment or portion
1566	1566	of an assessment that is or will be payable for the property during
1567	1567	the year of the sale shall be prorated between the buyer and the
1568	1568	seller in the same manner as ad valorem taxes are prorated between a
1569	1569	buyer and seller. Delinquent installments of the assessment shall
1570	1570	incur interest, penalties, and [attorney's] fees in the same manner
1571	1571	as delinquent ad valorem taxes.
1572	1572	(c) A district assessment on property under this subchapter
1573	1573	runs with the land. Any portion of an assessment payment obligation
1574	1574	that is not yet due is not eliminated by the foreclosure of an ad
1575	1575	valorem tax lien. Any purchaser of property at a foreclosure sale
1576	1576	under an ad valorem tax lien takes the property subject to any
1577	1577	assessment payment obligation that is not yet due and to the terms
1578	1578	of payment under the applicable assessment ordinance or order.
1579	1579	(d) The owner of assessed property may pay at any time on any
1580	1580	parcel or lot the entire assessment, with interest that:
1581	1581	(1) has accrued on the assessment; and
1582	1582	(2) will accrue on the assessment until the next
1583	1583	scheduled prepayment or redemption date on the installment purchase
1584	1584	or reimbursement contract or temporary note, time warrant, revenue
1585	1585	bond, special assessment bond, or certificate of obligation that
1586	1586	secured the assessment[, on any lot or parcel].
1587	1587	Sec. 372.019. SUPPLEMENTAL ASSESSMENTS. After notice and a
1588	1588	hearing, the governing body of the municipality or county may make
1589	1589	supplemental assessments to correct omissions or mistakes in the
1590	1590	assessment relating to the qualified costs [total cost] of the
1591	1591	improvement. Notice must be given and the hearing held under this
1592	1592	section in the same manner as required by Sections 372.016 and
1593	1593	372.017.
1594	1594	Sec. 372.020. REASSESSMENT. The governing body of the
1595	1595	municipality or county may make a reassessment or new assessment of
1596	1596	a parcel of land if:
1597	1597	(1) a court [of competent jurisdiction] sets aside an
1598	1598	assessment against the parcel;
1599	1599	(2) the governing body determines that the original
1600	1600	assessment is excessive; or
1601	1601	(3) on the written advice of counsel, the governing
1602	1602	body determines that the original assessment is invalid.
1603	1603	Sec. 372.021. SPECIAL IMPROVEMENT DISTRICT FUND. (a) A
1604	1604	municipality or county that intends to create a public improvement
1605	1605	district may by ordinance or order establish a special improvement
1606	1606	district fund in the municipal or county treasury or in a bank
1607	1607	designated by the municipality or county to serve as a depository
1608	1608	bank for the district's funds.
1609	1609	(b) The municipality or county annually may levy a tax to
1610	1610	support the fund established under this section.
1611	1611	(c) The fund may be used to:
1612	1612	(1) pay the qualified costs of improvements [planning,
1613	1613	administration, and an improvement authorized by this subchapter];
1614	1614	(2) prepare preliminary plans, studies, and
1615	1615	engineering reports to determine the feasibility of improvements
1616	1616	[an improvement]; and
1617	1617	(3) if ordered by the governing body of the
1618	1618	municipality or county, pay the initial qualified costs of
1619	1619	improvements [cost of the improvement] until installment purchase
1620	1620	contracts or reimbursement contracts are entered into or temporary
1621	1621	notes or[,] time warrants are issued or revenue bonds, special
1622	1622	assessment bonds, or certificates of obligation are[, or
1623	1623	improvement bonds have been] issued and sold.
1624	1624	(d) The fund is not required to be budgeted for expenditure
1625	1625	during any year, but the amount of the fund must be stated in the
1626	1626	municipality's or county's annual budget. The amount of the fund
1627	1627	must be based on an annual service plan that describes the public
1628	1628	improvements for the fiscal year.
1629	1629	[(e) A grant-in-aid or contribution made to the
1630	1630	municipality or county for the planning and preparation of plans
1631	1631	for an improvement authorized under this subchapter may be credited
1632	1632	to the special improvement district fund.]
1633	1633	Sec. 372.022. SEPARATE FUNDS. (a) A separate public
1634	1634	improvement district fund shall be created in the municipal or
1635	1635	county treasury or in a designated depository bank as provided by
1636	1636	Section 372.021 for each district.
1637	1637	(b) The following revenues shall be deposited to the fund:
1638	1638	(1) special assessments;
1639	1639	(2) money, if any, contributed by the municipality or
1640	1640	county to pay qualified costs;
1641	1641	(3) proceeds [Proceeds] from the sale of revenue
1642	1642	bonds, if payable in part from special assessments;
1643	1643	(4) proceeds from the sale of special assessment bonds
1644	1644	or certificates of obligation;[, temporary notes, and time
1645	1645	warrants,] and
1646	1646	(5) any other sums appropriated to the fund by the
1647	1647	governing body of the municipality or county for the district
1648	1648	[shall be credited to the fund].
1649	1649	(c) The fund may be used solely to pay:
1650	1650	(1) qualified costs of improvement;
1651	1651	(2) amounts due on an installment purchase contract or
1652	1652	reimbursement amounts owed under a reimbursement contract,
1653	1653	temporary note, or time warrant; or
1654	1654	(3) any revenue bonds, special assessment bonds, or
1655	1655	certificates of obligation that are payable in whole or in part from
1656	1656	special assessments levied under this subchapter [incurred in
1657	1657	making an improvement].
1658	1658	(d) When an improvement is completed and all of the
1659	1659	obligations are paid in full, the balance on deposit in the special
1660	1660	improvement district fund that was derived from special
1661	1661	assessments, if any, [of the part of the assessment that is for
1662	1662	improvements] shall be transferred to a [the] fund established for
1663	1663	the retirement of bonds that are payable in whole or in part from
1664	1664	assessments.
1665	1665	Sec. 372.023. PAYMENT OF QUALIFIED COSTS. (a) The
1666	1666	qualified costs [cost] of an improvement made under this subchapter
1667	1667	may [must] be paid by a method or by a combination of methods
1668	1668	described by [in accordance with] this section and Section 372.024.
1669	1669	(b) The [A cost payable by the] municipality or county [as a
1670	1670	whole] may, on its own or under an installment purchase,
1671	1671	reimbursement, or other contract with a third party:
1672	1672	(1) erect, acquire, construct, improve, repair,
1673	1673	establish, install, or equip improvements; and
1674	1674	(2) pay all or part of the qualified costs of the
1675	1675	improvements [be paid] from:
1676	1676	(A) general funds or other revenues available for
1677	1677	that [the] purpose;
1678	1678	(B) special assessments; or
1679	1679	(C) the issuance and sale of general obligation
1680	1680	bonds, certificates of obligation, revenue bonds, or special
1681	1681	assessment bonds [other available general funds].
1682	1682	(c) The municipality or county may enter into and execute an
1683	1683	installment purchase or reimbursement contract with or may deliver
1684	1684	a nonnegotiable but transferable temporary note or time warrant to
1685	1685	a third party under which:
1686	1686	(1) the third party agrees to:
1687	1687	(A) erect, acquire, construct, improve, repair,
1688	1688	establish, install, or equip public improvements; and
1689	1689	(B) dedicate or sell the improvements to the
1690	1690	municipality, county, or authorized instrumentality; and
1691	1691	(2) the municipality, county, or authorized
1692	1692	instrumentality agrees to pay or reimburse the third party for the
1693	1693	qualified costs by paying accumulated amounts due under the
1694	1694	installment purchase or reimbursement contract, temporary note, or
1695	1695	time warrant from any and all of the sources described by Subsection
1696	1696	(b)(2) [A cost payable from a special assessment that has been paid
1697	1697	in full shall be paid from that assessment].
1698	1698	(d) Subject to Section 372.018, an installment purchase or
1699	1699	reimbursement contract, temporary note, or time warrant may bear
1700	1700	interest at a rate and for a period determined by the governing body
1701	1701	of the municipality or county [A cost payable from a special
1702	1702	assessment that is to be paid in installments and a cost payable by
1703	1703	the municipality or county as a whole but not payable from available
1704	1704	general funds or other available general improvement funds shall be
1705	1705	paid by the issuance and sale of revenue or general obligation
1706	1706	bonds].
1707	1707	(e) An installment purchase or reimbursement contract,
1708	1708	temporary note, or time warrant that is payable from installments
1709	1709	of assessments is subject to prepayment and redemption at any time
1710	1710	from the proceeds of prepayment of assessments made by a property
1711	1711	owner under Section 372.018(d) [While an improvement is in
1712	1712	progress, the governing body of the municipality or county may
1713	1713	issue temporary notes or time warrants to pay for the costs of the
1714	1714	improvement and, on completion of the improvement, issue revenue or
1715	1715	general obligation bonds.
1716	1716	[(f) The cost of more than one improvement may be paid from a
1717	1717	single issue and sale of bonds without other consolidation
1718	1718	proceedings before the bond issue.
1719	1719	[(g) The costs of any improvement include all costs incurred
1720	1720	in connection with the issuance of bonds under Section 372.024 and
1721	1721	may be included in the assessments against the property in the
1722	1722	improvement district as provided by this subchapter].
1723	1723	Sec. 372.024. GENERAL OBLIGATION BONDS, [AND] REVENUE AND
1724	1724	SPECIAL ASSESSMENT BONDS, CERTIFICATES OF OBLIGATION, AND BONDS
1725	1725	ISSUED BY AUTHORIZED INSTRUMENTALITY. (a) The governing body of a
1726	1726	municipality or county may issue:
1727	1727	(1) general [General] obligation bonds [issued to pay
1728	1728	costs under Section 372.023(d) must be issued] under [the
1729	1729	provisions of] Subtitles A and C, Title 9, Government Code;
1730	1730	(2) revenue bonds or special assessment bonds in one
1731	1731	or more series; and
1732	1732	(3) certificates of obligation under Subchapter C,
1733	1733	Chapter 271.
1734	1734	(b) A bond or obligation described by Subsection (a) may be
1735	1735	issued to:
1736	1736	(1) pay qualified costs under Section 372.023(b),
1737	1737	including the costs of issuing bonds; and
1738	1738	(2) pay or refund obligations executed or issued under
1739	1739	Section 372.023(c).
1740	1740	(c) Certificates of obligation may be payable from and
1741	1741	secured by installment payments of special assessments levied under
1742	1742	this subchapter.
1743	1743	(d) The governing body of the municipality or county or the
1744	1744	authorized instrumentality may include any term or provision
1745	1745	consistent with this subchapter in a revenue bond or a special
1746	1746	assessment bond issued under this section.
1747	1747	(e) The governing body of a municipality or county may
1748	1748	incorporate an authorized instrumentality to act on its behalf to
1749	1749	issue revenue bonds or special assessment bonds under this section.
1750	1750	The governing body may enter into agreements and contracts with the
1751	1751	authorized instrumentality to transfer pledged revenues, funds,
1752	1752	and special assessments to or for the account of the authorized
1753	1753	instrumentality at the times and as required by the terms of the
1754	1754	resolution authorizing the issuance of the revenue bonds or special
1755	1755	assessment bonds. Any bonds issued by an authorized
1756	1756	instrumentality must be approved by the governing body of the
1757	1757	municipality or county before issuance and delivery to the
1758	1758	purchaser.
1759	1759	(f) To the extent consistent with this subchapter, an
1760	1760	authorized instrumentality shall issue revenue bonds or special
1761	1761	assessment bonds under:
1762	1762	(1) Chapter 303, if the authorized instrumentality is
1763	1763	a public facility corporation; or
1764	1764	(2) Subchapter D, Chapter 431, Transportation Code, if
1765	1765	the authorized instrumentality is a local government corporation
1766	1766	[Revenue bonds issued to pay costs under that subsection may be
1767	1767	issued from time to time in one or more series and are to be payable
1768	1768	from and secured by liens on all or part of the revenue derived from
1769	1769	improvements authorized under this subchapter, including revenue
1770	1770	derived from installment payments of special assessments].
1771	1771	Sec. 372.0241. SPECIAL ASSESSMENT PUBLIC IMPROVEMENT
1772	1772	DISTRICT MANAGEMENT POLICY. (a) The governing body of a
1773	1773	municipality or county may develop, adopt, and amend a special
1774	1774	assessment public improvement district management policy.
1775	1775	(b) The policy may establish the general requirements and
1776	1776	standards for and the preconditions to:
1777	1777	(1) the creation of a public improvement district
1778	1778	under this subchapter;
1779	1779	(2) the execution and issuance of installment purchase
1780	1780	or reimbursement contracts or temporary notes or time warrants; and
1781	1781	(3) the issuance of any bonds or certificates of
1782	1782	obligation payable in whole or in part from special assessments.
1783	1783	(c) If a management policy is adopted, compliance with the
1784	1784	terms of the policy, including any amendments to the policy, is
1785	1785	required for:
1786	1786	(1) the execution of any installment purchase or
1787	1787	reimbursement contracts or temporary notes or time warrants;
1788	1788	(2) the issuance of any revenue bonds or special
1789	1789	assessment bonds by the municipality or county or by an authorized
1790	1790	instrumentality; and
1791	1791	(3) the issuance of any certificates of obligation by
1792	1792	a municipality or county.
1793	1793	Sec. 372.025. TERMS AND CONDITIONS OF BONDS. (a) Revenue
1794	1794	bonds and special assessment bonds issued under Section 372.024
1795	1795	must be authorized by:
1796	1796	(1) ordinance, if issued by a municipality;
1797	1797	(2) order, if issued by a county; and
1798	1798	(3) resolution, if issued by an authorized
1799	1799	instrumentality.
1800	1800	(b) Revenue bonds and special assessment bonds may be issued
1801	1801	to mature serially or in any other manner but must mature not later
1802	1802	than 40 years after their date. A provision may be made for the
1803	1803	subsequent issuance of additional parity bonds or subordinate lien
1804	1804	bonds secured in whole or in part by any assessments or any other
1805	1805	revenues authorized by this subchapter under terms and conditions
1806	1806	specified in the ordinance, [or] order, or resolution authorizing
1807	1807	the issuance of the bonds.
1808	1808	(c) Revenue bonds, special assessment bonds, and
1809	1809	certificates of obligation may be subject to redemption before
1810	1810	maturity at the option of the issuer and at the times and in the
1811	1811	manner provided by the ordinance, order, or resolution authorizing
1812	1812	the issuance. Revenue bonds and certificates of obligation that
1813	1813	are secured in part by a pledge of special assessments and all
1814	1814	special assessment bonds are subject to mandatory redemption at
1815	1815	least semiannually from funds provided by assessed parties, if any,
1816	1816	as prepayment of installments of special assessments under Section
1817	1817	372.018(d).
1818	1818	(d) Revenue bonds and special assessment bonds shall be
1819	1819	executed in the manner and by the persons required by the ordinance,
1820	1820	order, or resolution authorizing the issuance.
1821	1821	(e) Revenue bonds and special assessment [(b) The] bonds
1822	1822	[shall be executed and the bonds] and any interest coupons
1823	1823	appertaining to the bonds [them] are negotiable instruments within
1824	1824	the meaning and for all purposes of the Uniform Commercial Code
1825	1825	(Section 1.101 et seq., Business & Commerce Code).
1826	1826	(f) The ordinance, [or] order, or resolution authorizing
1827	1827	the issuance of the revenue bonds or special assessment bonds must
1828	1828	specify:
1829	1829	(1) whether the bonds may be registered [are issued
1830	1830	registrable] as to principal alone or as to both principal and
1831	1831	interest;
1832	1832	(2) whether the bonds are redeemable before maturity;
1833	1833	(3) the form, denomination, and manner of issuance;
1834	1834	(4) the terms, conditions, and other details applying
1835	1835	to the bonds including the price, terms, and interest rates on the
1836	1836	bonds; and
1837	1837	(5) the manner of sale of the bonds.
1838	1838	(g) [(c)] The ordinance, [or] order, or resolution
1839	1839	authorizing the issuance of the bonds may specify that the proceeds
1840	1840	from the sale of the bonds:
1841	1841	(1) be used to pay interest on the bonds during and
1842	1842	after the period of acquisition or construction of an improvement
1843	1843	financed through the sale of the bonds;
1844	1844	(2) be used for creating a reserve fund for payment of
1845	1845	the principal of and interest on the bonds and for creating other
1846	1846	funds; [and]
1847	1847	(3) be used for the payment of any other qualified
1848	1848	costs as determined by the governing body of the municipality or
1849	1849	county or by the authorized instrumentality; and
1850	1850	(4) may be placed in time deposit or invested, until
1851	1851	needed.
1852	1852	Sec. 372.026. PLEDGES. (a) For the payment of [bonds
1853	1853	issued under this subchapter and the payment of] principal,
1854	1854	interest, and any other amounts payable on or with respect to any
1855	1855	bonds issued by a municipality or county under this subchapter
1856	1856	[required or permitted in connection with the bonds], the governing
1857	1857	body of the municipality or county may pledge:
1858	1858	(1) all or part of the income from improvements
1859	1859	financed under this subchapter, including income received in
1860	1860	installment payments from special assessments; and
1861	1861	(2) if the payment is for the payment of revenue bonds,
1862	1862	any other revenue described by Subsection (e) [under Section
1863	1863	372.023].
1864	1864	(b) For the payment of principal, interest, and any other
1865	1865	amounts payable on or with respect to bonds issued by an authorized
1866	1866	instrumentality under this subchapter, the authorized
1867	1867	instrumentality may pledge all or part of the assessments or other
1868	1868	revenues, if any, that are to be transferred and paid to the
1869	1869	authorized instrumentality by the municipality or county under an
1870	1870	agreement entered into between the parties under Section
1871	1871	372.024(e).
1872	1872	(c) Pledged income must be [fixed and collected in amounts]
1873	1873	sufficient, with other pledged resources, if any, to pay principal,
1874	1874	interest, and other expenses related to the bonds, and to the extent
1875	1875	required by the ordinance, [or] order, or resolution authorizing
1876	1876	the bonds, to pay for the operation, maintenance, and other
1877	1877	expenses related to improvements authorized by this subchapter.
1878	1878	(d) Bonds issued by a municipality or county [(c) The
1879	1879	bonds] may also be secured by mortgages or deeds of trust on any
1880	1880	real property related to the facilities authorized under this
1881	1881	subchapter that are owned or are to be acquired by the municipality
1882	1882	or county and by chattel mortgages, liens, or security interests on
1883	1883	any personal property appurtenant to that real property. The
1884	1884	governing body may authorize the execution of trust indentures,
1885	1885	mortgages, deeds of trust, or other forms of encumbrances as
1886	1886	evidence of the security interest of the holders of the bonds in the
1887	1887	related property [indebtedness].
1888	1888	(e) [(d)] The governing body may pledge to the payment of
1889	1889	certificates of obligation issued by the governing body or to the
1890	1890	payment of revenue bonds issued by the governing body or by an
1891	1891	authorized instrumentality all or part of a grant, donation,
1892	1892	revenue, or income received or to be received from the government of
1893	1893	the United States or any other public or private source, whether or
1894	1894	not it is received pursuant to an agreement or otherwise, including
1895	1895	impact fees and incremental ad valorem tax revenues collected by a
1896	1896	municipality or by another taxing unit and municipal sales tax
1897	1897	collected by a municipality from all or part of a tax increment
1898	1898	reinvestment zone created under Chapter 311, Tax Code.
1899	1899	Sec. 372.027. REFUNDING BONDS. (a) Revenue bonds and
1900	1900	special assessment bonds issued under this subchapter and
1901	1901	certificates of obligation payable solely from special assessments
1902	1902	may be refunded or refinanced by the issuance of refunding bonds,
1903	1903	under terms or conditions provided [set forth] in the ordinance,
1904	1904	order, or resolution authorizing the issuance [ordinances or
1905	1905	orders] of the [municipality or county issuing the] bonds. The
1906	1906	provisions of this subchapter applying generally to revenue bonds
1907	1907	and special assessment bonds, including provisions related to the
1908	1908	issuance of those bonds, apply to refunding bonds of like kind
1909	1909	authorized by this section. The refunding bonds may be sold and
1910	1910	delivered in amounts necessary to pay [for] the principal,
1911	1911	interest, and any redemption premium of the bonds [to be refunded],
1912	1912	on the date of the maturity of the bonds [bond] or any redemption
1913	1913	date of the bonds [bond].
1914	1914	(b) Refunding bonds may be issued for exchange with the
1915	1915	bonds they are refunding. The comptroller of public accounts shall
1916	1916	register refunding bonds described by this subsection and deliver
1917	1917	the bonds to holders of bonds being refunded in accordance with the
1918	1918	ordinance, [or] order, or resolution authorizing the issuance of
1919	1919	refunding bonds. The exchange may be made in one delivery or
1920	1920	several installment deliveries.
1921	1921	(c) General obligation bonds and certificates of obligation
1922	1922	issued under this subchapter may be refunded in the manner provided
1923	1923	by law.
1924	1924	Sec. 372.028. APPROVAL AND REGISTRATION. (a) Revenue
1925	1925	bonds and special assessment bonds issued under this subchapter and
1926	1926	a record of the proceedings authorizing their issuance must be
1927	1927	submitted to the attorney general for examination. If revenue
1928	1928	bonds state that they are secured by a pledge of revenue or rentals
1929	1929	from a contract or lease, a copy of the contract or lease and a
1930	1930	description of the proceedings authorizing the contract or lease
1931	1931	must also be submitted to the attorney general.
1932	1932	(b) If the attorney general determines that the bonds were
1933	1933	authorized and the contracts or leases related to the bonds were
1934	1934	made in accordance with the law, the attorney general shall approve
1935	1935	the bonds and the contract or lease. After [On the approval of] the
1936	1936	attorney general approves the bonds and the contract or lease, the
1937	1937	comptroller of public accounts shall register the bonds.
1938	1938	(c) Bonds and contracts or leases approved and registered
1939	1939	under this section are:
1940	1940	(1) valid and binding obligations for all purposes in
1941	1941	accordance with their terms; and
1942	1942	(2) [are] incontestable in any court or other forum.
1943	1943	(d) General obligation bonds and certificates of obligation
1944	1944	issued under this subchapter shall be approved and registered as
1945	1945	provided by law.
1946	1946	Sec. 372.029. AUTHORIZED INVESTMENTS; SECURITY.
1947	1947	(a) Bonds issued under this subchapter are legal and authorized
1948	1948	investments for:
1949	1949	(1) banks, trust companies, and savings and loan
1950	1950	associations;
1951	1951	(2) all insurance companies;
1952	1952	(3) fiduciaries, trustees, and guardians; and
1953	1953	(4) interest funds, sinking funds, and other public
1954	1954	funds of the state or of an agency, subdivision, or instrumentality
1955	1955	of the state, including a county, municipality, school district, or
1956	1956	other district, public agency, or body politic.
1957	1957	(b) Bonds issued under this subchapter may be security for
1958	1958	deposits of public funds of the state or of an agency, subdivision,
1959	1959	or instrumentality of the state, including a county, municipality,
1960	1960	school district, or other district, public agency, or body politic,
1961	1961	to the extent of the market value of the bonds, if accompanied by
1962	1962	any appurtenant [unmatured] interest coupons that have not matured.
1963	1963	Sec. 372.030. SUBCHAPTER NOT EXCLUSIVE. This subchapter is
1964	1964	an alternative to other methods by which a municipality may finance
1965	1965	public improvements under applicable law [by assessing property
1966	1966	owners].
1967	1967	SECTION 46. (a) Section 372.1011, Local Government Code,
1968	1968	is amended to read as follows:
1969	1969	Sec. 372.1011. APPLICABILITY. This subchapter applies only
1970	1970	to:
1971	1971	(1) a county with a population of 1.2 million
1972	1972	[825,000] or more, other than a county that:
1973	1973	(A) borders on the Gulf of Mexico or a bay or
1974	1974	inlet of the gulf; or
1975	1975	(B) has two municipalities located wholly or
1976	1976	partly in its boundaries each having a population of 300,000 or
1977	1977	more; or
1978	1978	(2) a county with a population of 70,000 or more that
1979	1979	is adjacent to a county described by Subdivision (1) in which a
1980	1980	municipality with a population of 35,000 or more is primarily
1981	1981	situated and includes all or a part of the extraterritorial
1982	1982	jurisdiction of a municipality with a population of 1.1 million or
1983	1983	more.
1984	1984	(b) This section takes effect only if the Act of the 81st
1985	1985	Legislature, Regular Session, 2009, relating to nonsubstantive
1986	1986	additions to and corrections in enacted codes does not become law.
1987	1987	If the Act of the 81st Legislature, Regular Session, 2009, relating
1988	1988	to nonsubstantive additions to and corrections in enacted codes
1989	1989	becomes law, this section has no effect.
1990	1990	SECTION 47. Subchapter C, Chapter 372, Local Government
1991	1991	Code, is amended by adding Section 372.1245 to read as follows:
1992	1992	Sec. 372.1245. ANNEXATION OR EXCLUSION OF LAND. (a) A
1993	1993	district may annex or exclude land from the district as provided by
1994	1994	Subchapter J, Chapter 49, Water Code.
1995	1995	(b) Before a district may adopt an order adding or excluding
1996	1996	land, the district must obtain the consent of:
1997	1997	(1) the county that created the district by a
1998	1998	resolution of the county commissioners court; and
1999	1999	(2) a municipality in which the district is located,
2000	2000	or in whose extraterritorial jurisdiction the district is located,
2001	2001	by a resolution adopted by the municipality's governing body.
2002	2002	SECTION 48. Section 372.127(c), Local Government Code, is
2003	2003	amended to read as follows:
2004	2004	(c) A county must adopt an order providing whether a
2005	2005	district has the authority to impose a hotel occupancy tax, sales
2006	2006	and use tax, or ad valorem tax, and must provide the maximum rate at
2007	2007	which the district may impose the tax. [A tax rate approved by the
2008	2008	commissioners court and pledged to secure bonds, notes, grant
2009	2009	agreements, or development agreements may not be reduced until the
2010	2010	obligations of those instruments have been satisfied.]
2011	2011	SECTION 49. (a) Section 382.002, Local Government Code, is
2012	2012	amended to read as follows:
2013	2013	Sec. 382.002. APPLICABILITY. This chapter applies only
2014	2014	to:
2015	2015	(1) a county with a population of 1.2 million
2016	2016	[825,000] or more, other than a county that:
2017	2017	(A) borders on the Gulf of Mexico or a bay or
2018	2018	inlet of the gulf; or
2019	2019	(B) has two municipalities located wholly or
2020	2020	partly in its boundaries each having a population of 300,000 or
2021	2021	more; or
2022	2022	(2) a county with a population of 70,000 or more that
2023	2023	is adjacent to a county described by Subdivision (1) in which a
2024	2024	municipality with a population of 35,000 or more is primarily
2025	2025	situated and includes all or a part of the extraterritorial
2026	2026	jurisdiction of a municipality with a population of 1.1 million or
2027	2027	more.
2028	2028	(b) This section takes effect only if the Act of the 81st
2029	2029	Legislature, Regular Session, 2009, relating to nonsubstantive
2030	2030	additions to and corrections in enacted codes becomes law. If the
2031	2031	Act of the 81st Legislature, Regular Session, 2009, relating to
2032	2032	nonsubstantive additions to and corrections in enacted codes does
2033	2033	not become law, this section has no effect.
2034	2034	SECTION 50. Subchapter C, Chapter 382, Local Government
2035	2035	Code, is amended by adding Section 382.113 to read as follows:
2036	2036	Sec. 382.113. ANNEXATION OR EXCLUSION OF LAND. (a) A
2037	2037	district may annex or exclude land from the district as provided by
2038	2038	Subchapter J, Chapter 49, Water Code.
2039	2039	(b) Before a district may adopt an order adding or excluding
2040	2040	land, the district must obtain the consent of:
2041	2041	(1) the county that created the district by a
2042	2042	resolution of the county commissioners court; and
2043	2043	(2) a municipality in which the district is located,
2044	2044	or in whose extraterritorial jurisdiction the district is located,
2045	2045	by a resolution adopted by the municipality's governing body.
2046	2046	SECTION 51. Section 382.153(c), Local Government Code, is
2047	2047	amended to read as follows:
2048	2048	(c) A county must adopt an order providing whether a
2049	2049	district has the authority to impose a hotel occupancy tax, sales
2050	2050	and use tax, or ad valorem tax, and must provide the maximum rate at
2051	2051	which the district may impose the tax. [A tax rate approved by the
2052	2052	commissioners court and pledged to secure bonds, notes, grant
2053	2053	agreements, or development agreements may not be reduced until the
2054	2054	obligations of those instruments have been satisfied.]
2055	2055	SECTION 52. Section 387.003, Local Government Code, is
2056	2056	amended by amending Subsections (a), (b), (b-1), (c), (e), (f), and
2057	2057	(h) and adding Subsections (a-1), (i), and (j) to read as follows:
2058	2058	(a) The commissioners court of the county may call an
2059	2059	election on the question of creating a county assistance district
2060	2060	under this chapter. More than one county assistance district may be
2061	2061	created in a county, but not more than one county assistance
2062	2062	district may be created in a commissioner's precinct.
2063	2063	(a-1) A district may [to] perform the following functions in
2064	2064	the district:
2065	2065	(1) the construction, maintenance, or improvement of
2066	2066	roads or highways;
2067	2067	(2) the provision of law enforcement and detention
2068	2068	services;
2069	2069	(3) the maintenance or improvement of libraries,
2070	2070	museums, parks, or other recreational facilities;
2071	2071	(4) the provision of services that benefit the public
2072	2072	health or welfare, including the provision of firefighting and fire
2073	2073	prevention services; or
2074	2074	(5) the promotion of economic development and tourism.
2075	2075	(b) The order calling the election must:
2076	2076	(1) define the boundaries of the district to include
2077	2077	any portion of the county in which the combined tax rate of all
2078	2078	local sales and use taxes imposed, including the rate to be imposed
2079	2079	by the district if approved at the election, would not exceed the
2080	2080	maximum combined rate of sales and use taxes imposed by political
2081	2081	subdivisions of this state that is prescribed by Sections 321.101
2082	2082	and 323.101, Tax Code [two percent]; and
2083	2083	(2) call for the election to be held within those
2084	2084	boundaries.
2085	2085	(b-1) If the proposed district includes any territory of a
2086	2086	municipality, the commissioners court shall send notice by
2087	2087	certified mail to the governing body of the municipality of the
2088	2088	commissioners court's intent to create the district. If the
2089	2089	municipality has created a development corporation under Chapter
2090	2090	504 or 505, Local Government Code [Section 4A or 4B, Development
2091	2091	Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
2092	2092	Statutes)], the commissioners court shall also send the notice to
2093	2093	the board of directors of the corporation. The commissioners court
2094	2094	must send the notice not later than the 60th day before the date the
2095	2095	commissioners court orders the election. The governing body of the
2096	2096	municipality may exclude the territory of the municipality from the
2097	2097	proposed district by sending notice by certified mail to the
2098	2098	commissioners court of the governing body's desire to exclude the
2099	2099	municipal territory from the district. The governing body must
2100	2100	send the notice not later than the 45th day after the date the
2101	2101	governing body receives notice from the commissioners court under
2102	2102	this subsection. The territory of a municipality that is excluded
2103	2103	under this subsection may subsequently be included in:
2104	2104	(1) the district in an election held under Subsection
2105	2105	(f) with the consent of the municipality; or
2106	2106	(2) another district after complying with the
2107	2107	requirements of this subsection and after an election under
2108	2108	Subsection (f).
2109	2109	(c) The ballot at the election must be printed to permit
2110	2110	voting for or against the proposition: "Authorizing the creation
2111	2111	of the ____ County Assistance District No.___ (insert name of
2112	2112	district) and the imposition of a sales and use tax at the rate of
2113	2113	____ [of one] percent (insert [one-eighth, one-fourth,
2114	2114	three-eighths, or one-half, as] appropriate rate) for the purpose
2115	2115	of financing the operations of the district."
2116	2116	(e) If a majority of the votes received at the election are
2117	2117	against the creation of the district, the district is not created
2118	2118	and the county at any time may call one or more elections [another
2119	2119	election] on the question of creating one or more [a] county
2120	2120	assistance districts [district may not be held in the county before
2121	2121	the first anniversary of the most recent election concerning the
2122	2122	creation of a district].
2123	2123	(f) The commissioners court may call an election to be held
2124	2124	in an area of the county that is not located in a district created
2125	2125	under this section to determine whether the area should be included
2126	2126	in the district and whether the district's sales and use tax should
2127	2127	be imposed in the area. An election may not be held in an area in
2128	2128	which the combined tax rate of all local sales and use taxes
2129	2129	imposed, including the rate to be imposed by the district if
2130	2130	approved at the election, would exceed the maximum combined rate of
2131	2131	sales and use taxes imposed by political subdivisions of this state
2132	2132	that is prescribed by Sections 321.101 and 323.101, Tax Code [two
2133	2133	percent].
2134	2134	(h) If more than one election to authorize a local sales and
2135	2135	use tax is held on the same day in the area of a proposed district or
2136	2136	an area proposed to be added to a district and if the resulting
2137	2137	approval by the voters would cause the imposition of a local sales
2138	2138	and use tax in any area to exceed the maximum combined rate of sales
2139	2139	and use taxes of political subdivisions of this state that is
2140	2140	prescribed by Sections 321.101 and 323.101, Tax Code [two percent],
2141	2141	only a tax authorized at an election under this section may be
2142	2142	imposed.
2143	2143	(i) In addition to the authority to include an area in a
2144	2144	district under Subsection (f), the governing body of a district by
2145	2145	order may include an area in the district on receipt of a petition
2146	2146	or petitions signed by the owner or owners of the majority of the
2147	2147	land in the area to be included in the district. If there are no
2148	2148	qualified voters in the area to be included in the district, no
2149	2149	election is required.
2150	2150	(j) The commissioners court by order may exclude an area
2151	2151	from the district if the district has no outstanding bonds payable
2152	2152	wholly or partly from sales and use taxes and the exclusion does not
2153	2153	impair any outstanding district debt or contractual obligation.
2154	2154	SECTION 53. Section 387.005, Local Government Code, is
2155	2155	amended to read as follows:
2156	2156	Sec. 387.005. GOVERNING BODY. (a) The commissioners
2157	2157	court of the county in which the district is created by order shall
2158	2158	provide that:
2159	2159	(1) the commissioners court is the governing body of
2160	2160	the district; or
2161	2161	(2) the commissioners court shall appoint a governing
2162	2162	body of the district.
2163	2163	(b) A member of the governing body of the district
2164	2164	[commissioners court] is not entitled to compensation for service
2165	2165	[on the governing body of the district] but is entitled to
2166	2166	reimbursement for actual and necessary expenses.
2167	2167	(c) A board of directors appointed by the commissioners
2168	2168	court under this section shall consist of five directors who serve
2169	2169	staggered terms of two years. To be eligible to serve as a
2170	2170	director, a person must be at least 18 years of age and a resident of
2171	2171	the county in which the district is located. The initial directors
2172	2172	shall draw lots to achieve staggered terms, with three of the
2173	2173	directors serving one-year terms and two of the directors serving
2174	2174	two-year terms.
2175	2175	SECTION 54. Section 387.006(a), Local Government Code, is
2176	2176	amended to read as follows:
2177	2177	(a) A district may:
2178	2178	(1) perform any act necessary to the full exercise of
2179	2179	the district's functions;
2180	2180	(2) accept a grant or loan from:
2181	2181	(A) the United States;
2182	2182	(B) an agency or political subdivision of this
2183	2183	state; or
2184	2184	(C) a public or private person;
2185	2185	(3) acquire, sell, lease, convey, or otherwise dispose
2186	2186	of property or an interest in property under terms determined by the
2187	2187	district;
2188	2188	(4) employ necessary personnel; [and]
2189	2189	(5) adopt rules to govern the operation of the
2190	2190	district and its employees and property; and
2191	2191	(6) enter into agreements with municipalities
2192	2192	necessary or convenient to achieve the district's purposes,
2193	2193	including agreements regarding the duration, rate, and allocation
2194	2194	between the district and the municipality of sales and use taxes.
2195	2195	SECTION 55. Section 387.007, Local Government Code, is
2196	2196	amended by amending Subsection (b) and adding Subsection (c) to
2197	2197	read as follows:
2198	2198	(b) A district may not adopt a sales and use tax under this
2199	2199	chapter if the adoption of the tax would result in a combined tax
2200	2200	rate of all local sales and use taxes that would exceed the maximum
2201	2201	combined rate prescribed by Sections 321.101 and 323.101, Tax Code,
2202	2202	[of more than two percent] in any location in the district.
2203	2203	(c) A district may define areas in the district to pay for
2204	2204	improvements, facilities, or services that primarily benefit that
2205	2205	area and do not generally and directly benefit the district as a
2206	2206	whole. The district may impose different rates of sales and use tax
2207	2207	in each defined area, provided that the sales and use tax rate does
2208	2208	not exceed the rate approved at an election held under Section
2209	2209	387.003.
2210	2210	SECTION 56. Section 387.009, Local Government Code, is
2211	2211	amended to read as follows:
2212	2212	Sec. 387.009. TAX RATE. The rate of a tax adopted under
2213	2213	this chapter must be in increments of one-eighth[, one-fourth,
2214	2214	three-eighths, or one-half] of one percent.
2215	2215	SECTION 57. Sections 387.010(a), (b), and (c), Local
2216	2216	Government Code, are amended to read as follows:
2217	2217	(a) A district that has adopted a sales and use tax under
2218	2218	this chapter may, by order and subject to Section 387.007(b):
2219	2219	(1) reduce [, change] the rate of the tax or repeal the
2220	2220	tax without an election, except that the district may not repeal the
2221	2221	sales and use tax or reduce the rate of the sales and use tax below
2222	2222	the amount pledged to secure payment of an outstanding district
2223	2223	debt or contractual obligation;
2224	2224	(2) increase the rate of the sales and use tax, if the
2225	2225	increased rate of the sales and use tax will not exceed the rate
2226	2226	approved at an election held under Section 387.003; or
2227	2227	(3) increase the rate of the sales and use tax to a
2228	2228	rate that exceeds the rate approved at an election held under
2229	2229	Section 387.003 after [if] the increase [change or repeal] is
2230	2230	approved by a majority of the votes received in the district at an
2231	2231	election held for that purpose.
2232	2232	(b) The tax may be changed under Subsection (a) in one or
2233	2233	more increments of one-eighth of one percent [to a maximum of
2234	2234	one-half of one percent].
2235	2235	(c) The ballot for an election to increase [change] the tax
2236	2236	shall be printed to permit voting for or against the proposition:
2237	2237	"The increase [change] of a sales and use tax for the ____ County
2238	2238	Assistance District No. ___ (insert name of district) from the rate
2239	2239	of ____ [of one] percent (insert [one-fourth, three-eighths, or
2240	2240	one-half, as] appropriate rate) to the rate of ____ [of one] percent
2241	2241	(insert [one-fourth, three-eighths, or one-half, as] appropriate
2242	2242	rate)."
2243	2243	SECTION 58. Section 387.012, Local Government Code, is
2244	2244	amended to read as follows:
2245	2245	Sec. 387.012. EFFECTIVE DATE OF TAX. The adoption of the
2246	2246	tax, the increase or reduction [change] of the tax rate, or the
2247	2247	repeal of the tax takes effect on the first day of the first
2248	2248	calendar quarter occurring after the expiration of the first
2249	2249	complete quarter occurring after the date the comptroller receives
2250	2250	a copy of the order of the district's governing body [notice of the
2251	2251	results of the election] adopting, increasing, reducing
2252	2252	[changing], or repealing the tax.
2253	2253	SECTION 59. Section 162.001, Occupations Code, is amended
2254	2254	by amending Subsection (a) and adding Subsection (d) to read as
2255	2255	follows:
2256	2256	(a) The board by rule shall certify a health organization
2257	2257	that:
2258	2258	(1) applies for certification on a form approved by
2259	2259	the board; [and]
2260	2260	(2) presents proof satisfactory to the board that the
2261	2261	organization meets the requirements of Subsection (b), [or] (c), or
2262	2262	(d); and
2263	2263	(3) states that the health organization has consulted
2264	2264	with the organization's medical staff before filing an application
2265	2265	for certification under Subsection (d), if appropriate.
2266	2266	(d) The board shall certify a health organization to employ
2267	2267	physicians licensed by the board if the organization is in
2268	2268	compliance with Subchapter E, Chapter 311, Health and Safety Code,
2269	2269	and this subchapter, including board rules.
2270	2270	SECTION 60. Subchapter A, Chapter 162, Occupations Code, is
2271	2271	amended by adding Sections 162.004 through 162.007 to read as
2272	2272	follows:
2273	2273	Sec. 162.004. EMPLOYER AND EMPLOYEE REQUIREMENTS. The
2274	2274	following requirements apply to an organization certified under
2275	2275	Section 162.001(d) that employs physicians:
2276	2276	(1) the organization shall ensure that each physician
2277	2277	retains independent medical judgment in providing care to patients
2278	2278	at the organization and may not be penalized for reasonably
2279	2279	advocating for patient care;
2280	2280	(2) the organization shall provide a certain portion
2281	2281	of medical services free of charge, or at a reduced fee commensurate
2282	2282	with a patient's ability to pay;
2283	2283	(3) a physician employed by the organization shall
2284	2284	participate in the provision of services under Subdivision (2);
2285	2285	(4) an organization may not include or enforce a
2286	2286	noncompete clause in a physician employment contract or condition
2287	2287	privileges on the continuation or termination of an employment
2288	2288	contract; and
2289	2289	(5) a physician who has privileges at the organization
2290	2290	and is employed by the hospital and a physician who is not employed
2291	2291	by the hospital must be given equal consideration and treatment in
2292	2292	the creation and execution of all medical staff bylaw provisions
2293	2293	regardless of the physician's employer.
2294	2294	Sec. 162.005. FEES; ENFORCEMENT. (a) The board may charge
2295	2295	a reasonable fee as necessary for the certification of an
2296	2296	organization under Section 162.001(d) and for the investigation,
2297	2297	review, and enforcement of the organization's compliance with this
2298	2298	subchapter and Subchapter E, Chapter 311, Health and Safety Code.
2299	2299	(b) The board may adopt and impose fines and administrative
2300	2300	remedies, including the revocation of certification under Section
2301	2301	162.003, for a violation of this subchapter or Subchapter E,
2302	2302	Chapter 311, Health and Safety Code.
2303	2303	Sec. 162.006. BIENNIAL COMPLIANCE STATEMENT. When an
2304	2304	organization applies for certification, and every two years after
2305	2305	that date, an organization seeking certification under Section
2306	2306	162.001(d) shall provide to the board a compliance statement signed
2307	2307	by the organization's chief executive officer attesting that the
2308	2308	organization is in compliance with all requirements for
2309	2309	certification and continued certification, including the
2310	2310	requirements of this subchapter and Subchapter E, Chapter 311,
2311	2311	Health and Safety Code.
2312	2312	Sec. 162.007. DOCUMENTS IN SUPPORT OF CERTIFICATION AND
2313	2313	BIENNIAL COMPLIANCE STATEMENTS. (a) An organization shall submit
2314	2314	to the board at the time application for certification under
2315	2315	Section 162.001(d) is made a copy of the hospital's policies,
2316	2316	bylaws, and medical staff bylaws that demonstrate compliance with
2317	2317	the requirements of this subchapter and Subchapter E, Chapter 311,
2318	2318	Health and Safety Code.
2319	2319	(b) An organization certified under Section 162.001(d)
2320	2320	shall submit to the board as part of the organization's biennial
2321	2321	compliance statement copies of any changes or amendments to the
2322	2322	hospital's bylaws, policies, and medical staff bylaws that were
2323	2323	submitted to the board after the organization's initial approved
2324	2324	application for certification.
2325	2325	SECTION 61. Section 1702.104(b), Occupations Code, is
2326	2326	amended to read as follows:
2327	2327	(b) For purposes of Subsection (a)(1), "obtaining or
2328	2328	furnishing information" includes information obtained or furnished
2329	2329	through the review and analysis of, and the investigation into the
2330	2330	content of, computer-based data not available to the public.
2331	2331	"Obtaining or furnishing information" does not include information
2332	2332	obtained or furnished by an information technology professional who
2333	2333	is an employee of a county and who is:
2334	2334	(1) in the course and scope of employment, installing
2335	2335	or repairing computer equipment belonging to the county or is
2336	2336	examining the cause for required repair; and
2337	2337	(2) not performing any other act that requires a
2338	2338	license under this chapter.
2339	2339	SECTION 62. Chapter 51, Property Code, is amended by adding
2340	2340	Section 51.0022 to read as follows:
2341	2341	Sec. 51.0022. FORECLOSURE DATA COLLECTION. (a) In this
2342	2342	section, "department" means the Texas Department of Housing and
2343	2343	Community Affairs.
2344	2344	(b) A person filing a notice of sale of residential property
2345	2345	under Section 51.002(b) must submit to the county clerk a completed
2346	2346	form that provides the zip code for the property.
2347	2347	(c) On completion of a sale of real property, the trustee or
2348	2348	sheriff shall submit to the county clerk a completed form that
2349	2349	contains information on whether the property is residential and the
2350	2350	zip code of the property.
2351	2351	(d) Not later than the 30th day after the date of receipt of
2352	2352	a form under this section, the county clerk shall transmit the form
2353	2353	to the department.
2354	2354	(e) The board of the department shall prescribe the forms
2355	2355	required under this section. The forms may only request
2356	2356	information on whether the property is residential and the zip code
2357	2357	of the property.
2358	2358	(f) The department shall report the information received
2359	2359	under this section quarterly to the legislature in a format
2360	2360	established by the board of the department by rule.
2361	2361	SECTION 63. Articles 20.011(a) and 20.02(b), Code of
2362	2362	Criminal Procedure, as amended by this Act, and Article 20.151,
2363	2363	Code of Criminal Procedure, as added by this Act, apply only to
2364	2364	testimony before a grand jury that is impaneled on or after the
2365	2365	effective date of this Act.
2366	2366	SECTION 64. Article 27.18, Code of Criminal Procedure, as
2367	2367	amended by this Act, applies to a plea of guilty or nolo contendere
2368	2368	entered on or after the effective date of this Act, regardless of
2369	2369	whether the offense with reference to which the plea is entered is
2370	2370	committed before, on, or after that date.
2371	2371	SECTION 65. Article 38.073, Code of Criminal Procedure, as
2372	2372	amended by this Act, applies only to the testimony of an inmate
2373	2373	witness that is taken on or after the effective date of this Act.
2374	2374	SECTION 66. Notwithstanding Sections 2 and 3, Article
2375	2375	49.25, Code of Criminal Procedure, as amended by this Act, a person
2376	2376	serving as the chief medical examiner or a deputy medical examiner
2377	2377	for a medical examiners district or county in this state on the
2378	2378	effective date of this Act is not required to be board certified in
2379	2379	anatomic and forensic pathology by the American Board of Pathology
2380	2380	to continue to hold that position of chief medical examiner or
2381	2381	deputy medical examiner for that district or county.
2382	2382	SECTION 67. (a) Section 61.001(f), Government Code, as
2383	2383	amended by this Act, applies only to a disbursement for the
2384	2384	reimbursement for jury service expenses on or after the effective
2385	2385	date of this Act.
2386	2386	(b) The changes in law made by Sections 262.003, 262.023,
2387	2387	271.024, and 363.156, Local Government Code, as amended by this
2388	2388	Act, apply only to a purchase made or contract executed on or after
2389	2389	the effective date of this Act. A purchase made or contract
2390	2390	executed before the effective date of this Act is governed by the
2391	2391	law in effect immediately before that date, and the former law is
2392	2392	continued in effect for that purpose.
2393	2393	(c) The board of the Texas Department of Housing and
2394	2394	Community Affairs shall adopt the forms and rules required by
2395	2395	Section 51.0022, Property Code, as added by this Act, not later than
2396	2396	January 1, 2010.
2397	2397	(d) The change in law made by Section 51.0022, Property
2398	2398	Code, as added by this Act, applies only to a notice of sale filed on
2399	2399	or after January 1, 2010. A notice of sale filed before January 1,
2400	2400	2010, is governed by the law in effect immediately before that date,
2401	2401	and the former law is continued in effect for that purpose.
2402	2402	SECTION 68. The change in law made by Sections 250.003 and
2403	2403	250.004, Local Government Code, is effective on or after January 1,
2404	2404	2010.
2405	2405	SECTION 69. All governmental acts and proceedings of a
2406	2406	governmental body of a municipality or county under Subchapter A,
2407	2407	Chapter 372, Local Government Code, as that subchapter existed
2408	2408	before the effective date of this Act, to establish a public
2409	2409	improvement district, designate improvements, levy assessments,
2410	2410	and finance costs of improvements in response to a petition filed
2411	2411	with the governing body that conformed to the requirements of
2412	2412	Section 372.005, Local Government Code, as that section existed
2413	2413	before the effective date of this Act, are validated and confirmed
2414	2414	in all respects.
2415	2415	SECTION 70. (a) The legislature validates and confirms all
2416	2416	governmental acts and proceedings before the effective date of this
2417	2417	Act of a district created under Subchapter C, Chapter 372, Local
2418	2418	Government Code, as that chapter existed before the effective date
2419	2419	of this Act, including acts of the district's board of directors.
2420	2420	(b) Subsection (a) of this section does not apply to a
2421	2421	matter that on the effective date of this Act:
2422	2422	(1) is involved in litigation, if the litigation
2423	2423	ultimately results in the matter being held invalid by a final court
2424	2424	judgment; or
2425	2425	(2) has been held invalid by a final court judgment.
2426	2426	SECTION 71. (a) The sections of this Act amending
2427	2427	Subchapter C, Chapter 372, Local Government Code, as amended by
2428	2428	this Act, take effect only if the Act of the 81st Legislature,
2429	2429	Regular Session, 2009, relating to nonsubstantive additions to and
2430	2430	corrections in enacted codes does not become law. If the Act of the
2431	2431	81st Legislature, Regular Session, 2009, relating to
2432	2432	nonsubstantive additions to and corrections in enacted codes
2433	2433	becomes law, the sections of this Act amending Subchapter C,
2434	2434	Chapter 372, Local Government Code, as amended by this Act, have no
2435	2435	effect.
2436	2436	(b) The sections of this Act amending Chapter 382, Local
2437	2437	Government Code, take effect only if the Act of the 81st
2438	2438	Legislature, Regular Session, 2009, relating to nonsubstantive
2439	2439	additions to and corrections in enacted codes becomes law. If the
2440	2440	Act of the 81st Legislature, Regular Session, 2009, relating to
2441	2441	nonsubstantive additions to and corrections in enacted codes does
2442	2442	not become law, the sections of this Act amending Chapter 382, Local
2443	2443	Government Code, have no effect.
2444	2444	SECTION 72. Section 13, Article 49.25, Code of Criminal
2445	2445	Procedure, is repealed.
2446	2446	SECTION 73. Section 387.010(d), Local Government Code, is
2447	2447	repealed.
2448	2448	SECTION 74. This Act takes effect September 1, 2009.
2449	2449	______________________________ ______________________________
2450	2450	President of the Senate Speaker of the House
2451	2451	I certify that H.B. No. 3485 was passed by the House on May
2452	2452	12, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not
2453	2453	voting; and that the House concurred in Senate amendments to H.B.
2454	2454	No. 3485 on May 29, 2009, by the following vote: Yeas 142, Nays 2,
2455	2455	1 present, not voting; and that the House adopted H.C.R. No. 282
2456	2456	authorizing certain corrections in H.B. No. 3485 on June 1, 2009, by
2457	2457	the following vote: Yeas 145, Nays 0, 1 present, not voting.
2458	2458	______________________________
2459	2459	Chief Clerk of the House
2460	2460	I certify that H.B. No. 3485 was passed by the Senate, with
2461	2461	amendments, on May 26, 2009, by the following vote: Yeas 27, Nays
2462	2462	4; and that the Senate adopted H.C.R. No. 282 authorizing certain
2463	2463	corrections in H.B. No. 3485 on June 1, 2009, by the following
2464	2464	vote: Yeas 31, Nays 0.
2465	2465	______________________________
2466	2466	Secretary of the Senate
2467	2467	APPROVED: __________________
2468	2468	Date
2469	2469	__________________
2470	2470	Governor