Texas 2009 - 81st Regular

Texas House Bill HB3485 Latest Draft

Bill / Enrolled Version Filed 02/01/2025

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                            H.B. No. 3485


 AN ACT
 relating to certain county, municipal, district, and other
 governmental functions, procedures, powers, duties, and services,
 including certain criminal procedures.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Article 15.08, Code of Criminal Procedure, is
 amended to read as follows:
 Art. 15.08. WARRANT MAY BE FORWARDED [TELEGRAPHED]. A
 warrant of arrest may be forwarded by a method that ensures the
 transmission of a duplicate of the original warrant, including
 secure facsimile transmission or other secure electronic means
 [telegraph from any telegraph office to another in this State]. If
 issued by any magistrate named in Article 15.06, the peace officer
 receiving the same shall execute it without delay. If it be issued
 by any other magistrate than is named in Article 15.06, the peace
 officer receiving the same shall proceed with it to the nearest
 magistrate of the peace officer's [his] county, who shall endorse
 thereon, in substance, these words:
 "Let this warrant be executed in the county of ...........",
 which endorsement shall be dated and signed officially by the
 magistrate making the same.
 SECTION 2. Article 15.09, Code of Criminal Procedure, is
 amended to read as follows:
 Art. 15.09. COMPLAINT MAY BE FORWARDED [BY TELEGRAPH]. A
 complaint in accordance with Article 15.05, may be forwarded
 [telegraphed], as provided by [in the preceding] Article 15.08, to
 any magistrate in the State; and the magistrate who receives the
 same shall forthwith issue a warrant for the arrest of the accused;
 and the accused, when arrested, shall be dealt with as provided in
 this Chapter in similar cases.
 SECTION 3. Article 15.19(a), Code of Criminal Procedure, is
 amended to read as follows:
 (a) If the arrested person fails or refuses to give bail, as
 provided in Article 15.18, the arrested person shall be committed
 to the jail of the county where the person was arrested; and the
 magistrate committing the arrested person shall immediately
 provide notice to the sheriff of the county in which the offense is
 alleged to have been committed regarding:
 (1) the arrest and commitment, which notice may be
 given by [telegraph,] mail[,] or other written means or by secure
 facsimile transmission or other secure electronic means; and
 (2) whether the person was also arrested under a
 warrant issued under Section 508.251, Government Code.
 SECTION 4. Article 20.011(a), Code of Criminal Procedure,
 is amended to read as follows:
 (a) Only the following persons may be present in a grand
 jury room while the grand jury is conducting proceedings:
 (1) grand jurors;
 (2) bailiffs;
 (3) the attorney representing the state;
 (4) witnesses while being examined or when necessary
 to assist the attorney representing the state in examining other
 witnesses or presenting evidence to the grand jury;
 (5) interpreters, if necessary; [and]
 (6) a stenographer or person operating an electronic
 recording device, as provided by Article 20.012; and
 (7)  a person operating a video teleconferencing system
 for use under Article 20.151.
 SECTION 5. Article 20.02(b), Code of Criminal Procedure, is
 amended to read as follows:
 (b) A grand juror, bailiff, interpreter, stenographer or
 person operating an electronic recording device, [or] person
 preparing a typewritten transcription of a stenographic or
 electronic recording, or person operating a video teleconferencing
 system for use under Article 20.151 who discloses anything
 transpiring before the grand jury, regardless of whether the thing
 transpiring is recorded, in the course of the official duties of the
 grand jury, is [shall be] liable to a fine as for contempt of the
 court, not exceeding $500 [five hundred dollars], imprisonment not
 exceeding 30 [thirty] days, or both the [such] fine and
 imprisonment.
 SECTION 6. Chapter 20, Code of Criminal Procedure, is
 amended by adding Article 20.151 to read as follows:
 Art. 20.151.  CERTAIN TESTIMONY BY VIDEO TELECONFERENCING.
 (a)  With the consent of the foreman of the grand jury and the
 attorney representing the state, a peace officer summoned to
 testify before the grand jury may testify through the use of a
 closed circuit video teleconferencing system that provides an
 encrypted, simultaneous, compressed full motion video and
 interactive communication of image and sound between the peace
 officer, the attorney representing the state, and the grand jury.
 (b)  In addition to being administered the oath described by
 Article 20.16(a), before being interrogated, a peace officer
 testifying through the use of a closed circuit video
 teleconferencing system under this article shall affirm that:
 (1)  no person other than a person in the grand jury
 room is capable of hearing the peace officer's testimony; and
 (2)  the peace officer's testimony is not being
 recorded or otherwise preserved by any person at the location from
 which the peace officer is testifying.
 (c)  Testimony received from a peace officer under this
 article shall be recorded and preserved.
 SECTION 7. Article 27.18, Code of Criminal Procedure, is
 amended by amending Subsection (c) and adding Subsection (c-1) to
 read as follows:
 (c) A recording of the communication shall be made and
 preserved until all appellate proceedings have been disposed of. A
 court reporter or court recorder is not required to take a
 transcription of a plea taken under this article.
 (c-1) The defendant may obtain a copy of a [the] recording
 made under Subsection (c) on payment of a reasonable amount to cover
 the costs of reproduction or, if the defendant is indigent, the
 court shall provide a copy to the defendant without charging a cost
 for the copy. The loss or destruction of or failure to make a video
 recording of a plea entered under this article is not alone
 sufficient grounds for a defendant to withdraw the defendant's plea
 or to request the court to set aside a conviction or sentence based
 on the plea.
 SECTION 8. Article 38.073, Code of Criminal Procedure, is
 amended to read as follows:
 Art. 38.073. TESTIMONY OF INMATE WITNESSES. In a
 proceeding in the prosecution of a criminal offense in which an
 inmate in the custody of the Texas Department of Criminal Justice is
 required to testify as a witness, any deposition or testimony of the
 inmate witness may be conducted by a video teleconferencing system
 in the manner described by Article 27.18 [electronic means, in the
 same manner as permitted in civil cases under Section 30.012, Civil
 Practice and Remedies Code].
 SECTION 9. Article 49.01, Code of Criminal Procedure, is
 amended to read as follows:
 Art. 49.01. DEFINITIONS. In this chapter [article]:
 (1) "Autopsy" means a post mortem examination of the
 body of a person, including an external examination of the body
 [X-rays] and an examination of the internal organs [and structures
 after dissection], to determine the cause and manner of death or the
 nature of any pathological changes that may have contributed to the
 death or to obtain information or material for evidentiary or
 identification purposes. The forensic pathologist or physician
 performing the autopsy may limit the individuals in attendance at
 the examination and may vary the extent of the examination.  The
 examination may include:
 (A) radiographs;
 (B) a microscopic examination;
 (C) retention of an organ part or whole organ;
 (D) an anthropologic examination;
 (E) a dental examination;
 (F)  any other procedure considered necessary by
 the examining forensic pathologist or physician; or
 (G)  at the discretion of the medical examiner,
 the medical examiner's designee, or the justice of the peace, as
 appropriate, an in-person examination of the scene of death or
 injury or an examination of the scene through reports or
 photographs related to the injury or death.
 (1-a)  "Forensic pathologist" means a physician who is
 board certified in anatomic and forensic pathology by the American
 Board of Pathology.
 (2) "Inquest" means an investigation into the cause
 and circumstances of the death of a person, and a determination,
 made with or without a formal court hearing, as to whether the death
 was caused by an unlawful act or omission. The term includes each
 level of investigation, from rudimentary information gathering to a
 complete autopsy examination and formal hearing.
 (3) "Inquest hearing" means a formal court hearing
 held to determine whether the death of a person was caused by an
 unlawful act or omission and, if the death was caused by an unlawful
 act or omission, to obtain evidence to form the basis of a criminal
 prosecution.
 (4) "Institution" means any place where health care
 services are rendered, including a hospital, clinic, health
 facility, nursing home, extended-care facility, out-patient
 facility, foster-care facility, and retirement home.
 (5) "Physician" means a practicing doctor of medicine
 or doctor of osteopathic medicine who is licensed by the Texas
 [State Board of] Medical Board [Examiners] under Subtitle B, Title
 3, Occupations Code.
 SECTION 10. Section 1, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 1. OFFICE AUTHORIZED. Subject to the provisions of
 this Article [Act], the Commissioners Court of any county having a
 population of more than one million [and not having a reputable
 medical school as defined in Articles 4501 and 4503, Revised Civil
 Statutes of Texas,] shall establish and maintain the office of
 medical examiner, and the Commissioners Court of any county may
 establish and provide for the maintenance of the office of medical
 examiner. Population shall be according to the last preceding
 federal census.
 SECTION 11. Subsection (b), Section 1-a, Article 49.25,
 Code of Criminal Procedure, is amended to read as follows:
 (b) There may be only one chief medical examiner in a
 medical examiners district, although the chief medical examiner
 [he] may employ, within the district, necessary staff personnel,
 including deputy medical examiners. When a county becomes a part of
 a medical examiners district, the effect is the same within the
 county as if the office of medical examiner had been established in
 that county alone. A [The] district medical examiner has all the
 powers and duties within the district that a medical examiner who
 serves in a single county has within that county.
 SECTION 12. Section 2, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 2. APPOINTMENTS AND QUALIFICATIONS. (a) The
 commissioners court shall appoint the chief medical examiner, who
 serves [shall serve] at the pleasure of the commissioners court.
 The chief medical examiner must be:
 (1)  board certified in anatomic and forensic pathology
 by the American Board of Pathology; and
 (2) [No person shall be appointed medical examiner
 unless he is] a physician licensed by the Texas [State Board of]
 Medical Board [Examiners.    To the greatest extent possible, the
 medical examiner shall be appointed from persons having training
 and experience in pathology, toxicology, histology and other
 medico-legal sciences].
 (b) The chief medical examiner shall devote the [so much of
 his] time and energy [as is] necessary to perform [in the
 performance of] the duties conferred by this Article.
 SECTION 13. Section 3, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 3. ASSISTANTS. (a) The chief medical examiner may,
 subject to the approval of the commissioners court, employ the
 [such] deputy medical examiners, medical, dental, or anthropologic
 consultants, scientific experts, trained technicians, officers,
 and employees [as may be] necessary to properly perform [the proper
 performance of] the duties imposed by this Article on [upon] the
 chief medical examiner.
 (b) A deputy medical examiner must:
 (1)  be board certified in anatomic and forensic
 pathology; or
 (2)  have satisfactorily completed accredited
 residency and fellowship training programs in anatomic and forensic
 pathology and, not later than the third anniversary of the date the
 training programs were completed, obtain board certification in
 anatomic and forensic pathology.
 SECTION 14. Section 4, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 4. SALARIES. The commissioners court shall establish
 and pay the salaries and compensations of the chief medical
 examiner and the chief medical examiner's [his] staff.
 SECTION 15. Section 6, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 6. DEATH INVESTIGATIONS. (a) A chief [Any] medical
 examiner, or the chief medical examiner's [his] duly authorized
 deputy medical examiner, shall [be authorized, and it shall be his
 duty, to] hold inquests with or without a jury in the [within his]
 county in which the office is established[,] in the following
 cases:
 (1) [1.] When a person dies [shall die] within
 twenty-four hours after the person is:
 (A) admitted [admission] to a hospital or
 institution;
 (B) confined [or] in prison or in jail; or
 (C) placed in law enforcement custody;
 (2) [2.] When any person:
 (A) is killed;
 (B) [or] from any cause dies an unnatural death,
 except under sentence of the law;
 (C) [or] dies in the absence of one or more good
 witnesses; or
 (D)  dies as a result of medical treatment or
 therapy;
 (3) [3.] When the body or a body part of a person is
 found and[,] the cause or circumstances of death are unknown[, and:
 [(A) the person is identified; or
 [(B) the person is unidentified];
 (4) [4.] When the circumstances of the death of any
 person [are such as to] lead to suspicion that the person died [he
 came to his death] by unlawful means;
 (5) [5.] When any person commits suicide, or the
 circumstances of the person's [his] death [are such as to] lead to
 suspicion that the person [he] committed suicide;
 (6) [6.] When a person dies who has not [without
 having] been attended during the preceding year by a duly licensed
 and practicing physician[, and the local health officer or
 registrar required to report the cause of death under Section
 193.005, Health and Safety Code, does not know the cause of death.
 When the local health officer or registrar of vital statistics
 whose duty it is to certify the cause of death does not know the
 cause of death, he shall so notify the medical examiner of the
 county in which the death occurred and request an inquest];
 (7) [7.] When the person is a child [who is] younger
 than six years of age and the death is reported under Chapter 264,
 Family Code; [and]
 (8) When an unidentified person dies; and
 (9) [8.] When a person dies who has been attended
 immediately preceding the person's [his] death by a duly licensed
 and practicing physician or physicians[,] and the [such] physician
 or physicians [are not certain as to the cause of death and] are
 unable to certify to a reasonable degree of medical probability
 [with certainty] the cause of death as required by Section 193.005
 [193.004], Health and Safety Code.
 (a-1)  If a physician is unable to certify the cause of death
 to a reasonable degree of medical probability, [In case of such
 uncertainty] the attending physician or physicians, or the
 superintendent or general manager of the hospital or institution in
 which the deceased [shall have] died, shall [so] report the
 inability to the medical examiner of the county in which the death
 occurred[,] and request an inquest.
 (a-2)  If a medical examiner determines after performing an
 inquest that the death is due to natural causes and the deceased
 person was attended by a physician at the time of death or during
 the preceding year, the medical examiner may waive the medical
 examiner's authority to further investigate the case. If the
 medical examiner waives the authority to further investigate the
 case, the attending physician shall certify the cause of death.
 (b) The inquests authorized and required by this Article
 shall be held by the chief medical examiner of the county in which
 the death occurred.
 (c) In making such investigations and holding such
 inquests, the chief medical examiner or an authorized deputy
 medical examiner may administer oaths and take affidavits. In the
 absence of next of kin or legal representatives of the deceased, the
 chief medical examiner or authorized deputy medical examiner shall
 take charge of the body and all property found with it.
 (d)  A medical examiner may subpoena medical records, law
 enforcement records, or other types of records required to perform
 the duties imposed under this section.
 SECTION 16. Section 6a, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 6a. ORGAN TRANSPLANT DONORS; NOTICE; INQUESTS.
 (a) When death occurs to an individual designated a prospective
 organ donor for transplantation by a licensed physician under
 circumstances requiring the chief medical examiner of the county in
 which death occurred, or the chief medical examiner's authorized
 deputy medical examiner, to hold an inquest, the chief medical
 examiner, or a member of the chief medical examiner's [his] staff,
 shall [will] be [so] notified by the administrative head of the
 facility in which the prospective donor is located [transplantation
 is to be performed].
 (b) When notified pursuant to Subsection (a) of this
 Section, the chief medical examiner or the chief medical examiner's
 deputy medical examiner shall perform an inquest on the deceased
 prospective organ donor.
 (c)  Subject to the procedures and requirements established
 by Section 693.002, Health and Safety Code, a medical examiner may:
 (1)  determine before or after the medical examiner
 examines the body of the deceased that the release of organs or
 tissues for transplant purposes will likely hinder the
 determination of the cause or manner of death or compromise an
 evidentiary aspect of the examination; and
 (2)  based on the determination, prohibit or limit the
 extent of the organ or tissue removal.
 SECTION 17. Section 7(b), Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 (b) A person investigating the [a] death of an unidentified
 person [described by Subdivision 3(B) of Section 6(a)] shall report
 the death to the missing children and missing persons information
 clearinghouse of the Department of Public Safety and the national
 crime information center not later than the 10th working day after
 the date the investigation began.
 SECTION 18. Section 8, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 8. REMOVAL OF BODIES. When any death under
 circumstances set out in Section 6 of this Article occurs [shall
 have occurred], the body shall not be disturbed or removed from the
 position in which it is found by any person without authorization
 from the chief medical examiner or an authorized deputy medical
 examiner, except for the purpose of preserving the [such] body from
 loss or destruction or maintaining the flow of traffic on a highway,
 railroad, or airport.
 SECTION 19. Section 9, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 9. AUTOPSY. (a) If the cause of death is [shall be]
 determined beyond a reasonable doubt as a result of the
 investigation, the medical examiner shall prepare [file] a report
 on the investigation [thereof] setting forth specifically the cause
 of death and file the report with the district attorney or criminal
 district attorney, or in a county in which there is no district
 attorney or criminal district attorney with the county attorney, of
 the county in which the death occurred.
 (b) If in the opinion of the medical examiner an autopsy is
 necessary to determine the cause or manner of death, to better
 determine any pathological or injurious process present, or to
 obtain evidence for a potential legal proceeding or for
 identification purposes, or if the autopsy [such] is requested by
 the district attorney or criminal district attorney, or county
 attorney where there is no district attorney or criminal district
 attorney, the autopsy shall be [immediately] performed by the chief
 medical examiner or a duly authorized deputy medical examiner. In
 [those] cases where a complete autopsy is considered [deemed]
 unnecessary by the medical examiner to ascertain the cause of
 death, the medical examiner may perform a limited autopsy or
 external inspection of the body that may include [involving the]
 taking [of] blood samples or any other samples of body fluids,
 tissues, or organs[, in order] to ascertain the cause of death or
 whether a crime has been committed.
 (c) If [In] the identity [case] of a body of a human being
 [whose identity] is unknown, the medical examiner may authorize the
 [such] investigative and laboratory tests and processes [as are]
 required to determine the [its] identity and [as well as] the cause
 of death.
 (d)  The extent of an autopsy is solely at the discretion of
 the medical examiner.
 (e)  A medical examiner is not required to notify or seek any
 approval from a deceased person's next of kin to perform an autopsy
 or any other type of examination related to an autopsy.
 (f) On [In performing an autopsy the medical examiner or
 authorized deputy may use the facilities of any city or county
 hospital within the county or such other facilities as are made
 available. Upon] completion of the autopsy, the medical examiner
 shall prepare [file] a report setting forth the findings in detail
 and file the report with the office of the district attorney or
 criminal district attorney of the county, or if there is no district
 attorney or criminal district attorney, with the county attorney of
 the county.
 (g) [(b)] A medical examination on an unidentified person
 shall include the following information to enable a timely and
 accurate identification of the person:
 (1) all available fingerprints and palm prints;
 (2) dental charts and radiographs (X-rays) of the
 person's teeth;
 (3) [frontal and lateral] facial photographs with
 scale indicated;
 (4) notation [and photographs, with scale indicated,]
 of a significant scar, mark, tattoo, or item of clothing or other
 personal effect found with or near the body;
 (5) notation of any identified antemortem medical
 conditions; and
 (6) notation of observations pertinent to the
 estimation of time of death[; and
 [(7)     precise documentation of the location of burial
 of the remains].
 (h) [(c)] A medical examination on an unidentified person
 may include the following information to enable a timely and
 accurate identification of the person:
 (1) full body radiographs (X-rays); and
 (2) [hair] specimens from the body for DNA
 characterization and comparison [with roots].
 (i)  A medical examiner performing an autopsy of a deceased
 person may retain an organ or part of an organ if the medical
 examiner determines that retaining the organ or organ part is
 necessary for further examination and testing.  After completing
 the examination or testing on the organ or organ part, the medical
 examiner shall:
 (1)  retain the organ or organ part as required by law
 or by published professional or accreditation standards;
 (2)  dispose of the organ or organ part as a hazardous
 biological specimen; or
 (3)  release the organ or organ part to the funeral
 establishment or crematory under Subsection (m)(2).
 (j)  A medical examiner may not be required to perform an
 autopsy on a person whose death resulted from a highly infectious
 disease or a chemical or radiological agent that presents a hazard
 to the medical examiner, the medical examiner's staff, or the
 public.
 (k)  Except as provided by Subsection (l), a medical examiner
 may not perform an autopsy on a deceased person if the medical
 examiner receives before the performance of the autopsy a notarized
 affidavit signed by the person before the person's death that
 states the person's objection for religious reasons to the
 performance of an autopsy on the person after the person's death.
 (l)  A medical examiner may perform an autopsy on a deceased
 person following receipt of a notarized affidavit under Subsection
 (k) if the chief medical examiner determines a compelling public
 necessity exists to perform the autopsy on the deceased person
 despite the objection.
 (m)  If the medical examiner performs the autopsy despite
 receipt of a notarized affidavit under Subsection (k), the medical
 examiner shall:
 (1)  use the least invasive means possible in the
 performance of the autopsy; and
 (2)  notwithstanding Subsection (i), release to the
 funeral establishment or crematory any organ or organ part retained
 by the medical examiner, except as required by law or by published
 professional or accreditation standards.
 (n) In this section, "compelling public necessity" means:
 (1)  a criminal homicide investigation in which the
 deceased person is the victim;
 (2)  an immediate and substantial threat to public
 health;
 (3)  the death of a child under 12 years of age for
 which the cause of death is not apparent and neglect or a threat to
 public health was suspected;
 (4)  the cause or manner of death of the deceased person
 is not apparent after a diligent investigation by the medical
 examiner; or
 (5) the autopsy is required by law.
 SECTION 20. Section 10, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 10. DISINTERMENTS AND CREMATIONS. (a) The [When a
 body upon which an inquest ought to have been held has been
 interred, the] medical examiner may cause a body that has been
 interred and on which an inquest should have been held [it] to be
 disinterred for the purpose of holding the [such] inquest.
 (b) A [Before any] body on[, upon] which an inquest is
 authorized by [the provisions of] this Article may not[, can] be
 [lawfully] cremated unless[,] an examination is [autopsy shall be]
 performed on the body [thereon] as provided in this Article[,] or a
 certificate that the examination [no autopsy] was not necessary is
 [shall be] furnished by the medical examiner.
 (c) Before a [any] dead body may [can] be [lawfully]
 cremated, the owner or operator of the crematory shall demand and be
 furnished with a certificate, signed by the medical examiner of the
 county in which the death occurred stating [showing] that:
 (1) an examination [autopsy] was performed on the
 [said] body; or
 (2) an examination on the body [that no autopsy
 thereon] was not necessary.
 (d) The [It shall be the duty of the] medical examiner shall
 [to] determine whether or not, from all the circumstances
 surrounding the death, an examination [autopsy] is necessary prior
 to issuing a certificate under [the provisions of] this section.
 (e)  The owner or operator of a crematory requesting
 authorization to cremate a body shall provide the medical examiner
 with a legible and properly completed death certificate.
 (f)  A medical examiner is not required to perform an
 examination [No autopsy shall be required by the medical examiner]
 as a prerequisite to cremation if the [in case] death was [is]
 caused by [the] pestilential or highly infectious diseases [of
 Asiatic cholera, bubonic plague, typhus fever, or smallpox].
 (g) All certificates furnished to the owner or operator of a
 crematory by any medical examiner, under the terms of this Article,
 shall be preserved by the [such] owner or operator until the second
 anniversary of [such crematory for a period of two years from] the
 date of the body's cremation [of said body].
 (h) A medical examiner is not required to perform an autopsy
 on the body of a deceased person whose death was caused by a
 communicable disease during a public health disaster.
 SECTION 21. Section 10a, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 10a. WAITING PERIOD BETWEEN DEATH AND CREMATION.
 (a) The body of a deceased person shall not be cremated within 48
 hours after the time of death as indicated on the regular death
 certificate, unless:
 (1) the death certificate indicates death was caused
 by [the] pestilential or highly infectious diseases; [of Asiatic
 cholera, bubonic plague, typhus fever, or smallpox,] or
 (2) [unless] the time requirement is waived in writing
 by the county medical examiner or, in counties without [not having]
 a county medical examiner, a justice of the peace.
 (b) In a public health disaster, the commissioner of state
 [public] health services may designate other communicable diseases
 for which cremation within 48 hours of the time of death is
 authorized.
 SECTION 22. Section 11, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 11. RECORDS. (a) The medical examiner shall:
 (1) keep full and complete records properly indexed
 that include[, giving] the name if known of every person whose death
 is investigated, the place where the body was found, the date, and
 the cause and manner of death;[,] and
 (2) [shall] issue a death certificate.
 (b) The full report and detailed findings of the autopsy, if
 any, shall be a part of the record.
 (c) [Copies of all records shall promptly be delivered to
 the proper district, county, or criminal district attorney in any
 case where further investigation is advisable.] The records are
 subject to required public disclosure in accordance with Chapter
 552, Government Code, except that a photograph or x-ray of a body
 taken during a medical examiner investigation [an autopsy] is
 excepted from required public disclosure in accordance with Chapter
 552, Government Code, but is subject to disclosure:
 (1) under a subpoena or authority of other law; or
 (2) if the photograph or x-ray is of the body of a
 person who died while in the custody of law enforcement.
 SECTION 23. Section 12, Article 49.25, Code of Criminal
 Procedure, is amended to read as follows:
 Sec. 12. TRANSFER OF DUTIES OF JUSTICE OF PEACE. When the
 commissioners court of any county establishes [shall establish] the
 office of medical examiner, all powers and duties of justices of the
 peace in the [such] county relating to the investigation of deaths
 and inquests [shall] vest in the office of the medical examiner.
 Any subsequent General Law pertaining to the duties of justices of
 the peace in death investigations and inquests [shall] apply to the
 medical examiner in the county [such counties as] to the extent not
 inconsistent with this Article, and all laws or parts of laws
 otherwise in conflict with this Article [herewith] are [hereby]
 declared [to be] inapplicable to this Article.
 SECTION 24. Subsection (a), Section 14, Article 49.25, Code
 of Criminal Procedure, is amended to read as follows:
 (a) A person commits an offense if the person knowingly
 violates this article or knowingly provides false information to a
 medical examiner in the performance by the medical examiner of an
 investigation under this article.
 SECTION 25. Article 49.25, Code of Criminal Procedure, is
 amended by adding Sections 13A and 13B to read as follows:
 Sec. 13A.  FEES.  A medical examiner may charge reasonable
 fees for services provided by the medical examiner's office under
 this Article, including cremation approvals, court testimonies,
 consultations, and depositions.
 Sec. 13B.  EDUCATION AND RESEARCH.  (a)  A medical examiner
 may use for educational or teaching purposes photographs taken
 during a death investigation.
 (b)  A medical examiner's office may engage in educational
 and research activities that do not interfere with the performance
 of the duties imposed on the office under this Article.
 SECTION 26. Section 61.0572, Education Code, is amended by
 adding Subsection (f) to read as follows:
 (f)  Approval of the board is not required for buildings or
 other facilities financed by a public improvement district under
 Subchapter A, Chapter 372, Local Government Code.
 SECTION 27. Section 61.058, Education Code, is amended by
 adding Subsection (c) to read as follows:
 (c)  This section does not apply to construction, repair, or
 rehabilitation of buildings or other facilities financed by a
 public improvement district under Subchapter A, Chapter 372, Local
 Government Code.
 SECTION 28. Section 31.037, Election Code, is amended to
 read as follows:
 Sec. 31.037. SUSPENSION OR TERMINATION OF EMPLOYMENT. The
 employment of the county elections administrator may be suspended,
 with or without pay, or terminated at any time for good and
 sufficient cause on the four-fifths vote of the county election
 commission and approval of that action by a majority vote of the
 commissioners court.
 SECTION 29. Section 61.001(f), Government Code, is amended
 to read as follows:
 (f) A reimbursement for expenses under this section is not a
 property right of a person who reports for jury service for purposes
 of Chapters 72 and 74, Property Code. If a check, instrument, or
 other method of payment authorized under Section 113.048, Local
 Government Code, [instrument] representing a reimbursement under
 this section is not presented for payment or redeemed before the
 90th day after it is issued:
 (1) the instrument or other method of payment is
 considered forfeited and is void; and
 (2) the money represented by the instrument or other
 method of payment may be placed or retained in the county's jury
 fund, the county's general fund, or any other fund in which county
 funds can be legally placed, at the discretion of the commissioners
 court.
 SECTION 30. Section 61.003, Government Code, is amended by
 adding Subsection (e) to read as follows:
 (e)  Notwithstanding Subsection (a), a county that has
 adopted a system or method of payment authorized by Section
 113.048, Local Government Code, may provide a person who reports
 for jury service in the county an opportunity to donate all, or a
 specific part designated by the juror, of the juror's daily
 reimbursement by completing a self-executing application on a form
 prescribed by the commissioners court.
 SECTION 31. Subchapter B, Chapter 281, Health and Safety
 Code, is amended by adding Section 281.0282 to read as follows:
 Sec. 281.0282.  DALLAS COUNTY HOSPITAL DISTRICT; EMPLOYMENT
 OF HEALTH CARE PROVIDERS AND PHYSICIANS. (a)  The board of the
 Dallas County Hospital District may appoint, contract for, or
 employ physicians, dentists, and other health care providers as the
 board considers necessary for the efficient operation of the
 district.
 (b)  The term of an employment contract entered into under
 this section may not exceed four years.
 (c)  This section may not be construed as authorizing the
 board of the Dallas County Hospital District to supervise or
 control the practice of medicine, as prohibited by Subtitle B,
 Title 3, Occupations Code.
 (d)  The authority granted to the board of the Dallas County
 Hospital District under Subsection (a) to employ physicians shall
 apply only as necessary for the district to fulfill the district's
 statutory mandate to provide medical care for the indigent and
 needy residents of the district as provided by Section 281.046.
 (e)  The Dallas County Hospital District shall establish a
 committee consisting of at least five actively practicing
 physicians who provide care in the district. The committee shall
 approve existing policies or adopt new policies, if no policies
 exist, to ensure that a physician who is employed by the district is
 exercising the physician's independent medical judgment in
 providing care to patients.
 (f)  The chair of the committee must be a member of the
 executive committee of the Dallas County Hospital District's
 medical staff.
 (g)  The policies adopted or approved by the committee shall
 include policies relating to credentialing, quality assurance,
 utilization review, peer review, medical decision-making,
 governance of the committee, and due process.
 (h)  Each member of a committee shall provide biennially to
 the chief medical officer of the Dallas County Hospital District a
 signed, verified statement indicating that the committee member:
 (1) is licensed by the Texas Medical Board;
 (2)  will exercise independent medical judgment in all
 committee matters, including matters relating to credentialing,
 quality assurance, utilization review, peer review, medical
 decision-making, and due process;
 (3)  will exercise the committee member's best efforts
 to ensure compliance with the Dallas County Hospital District's
 policies that are adopted or established by the committee; and
 (4)  will report immediately to the Texas Medical Board
 any action or event that the committee member reasonably and in good
 faith believes constitutes a compromise of the independent medical
 judgment of a physician in caring for a patient.
 (i)  The committee shall adopt rules requiring the
 disclosure of financial conflicts of interest by a committee
 member.
 (j)  For all matters relating to the practice of medicine,
 each physician employed by the board shall ultimately report to the
 chief medical officer of the Dallas County Hospital District.
 SECTION 32. Chapter 311, Health and Safety Code, is amended
 by adding Subchapter E to read as follows:
 SUBCHAPTER E. EMPLOYMENT OF PHYSICIANS BY CERTAIN HOSPITALS
 Sec. 311.061.  APPLICABILITY OF SUBCHAPTER. This subchapter
 applies only to a hospital located in a county with a population of
 50,000 or less and operated by a governmental entity.
 Sec. 311.062.  EMPLOYMENT OF PHYSICIAN PERMITTED. (a)  A
 hospital may employ a physician and retain all or part of the
 professional income generated by the physician for medical services
 provided at the hospital if the hospital:
 (1)  is certified by the Texas Medical Board under
 Section 162.001(d), Occupations Code;
 (2)  satisfies the requirements of Subchapter A,
 Chapter 162, Occupations Code, including Texas Medical Board rules;
 and
 (3) satisfies the requirements of this subchapter.
 (b)  A hospital subject to this subchapter may continue to
 employ any physicians employed by the hospital on or before the date
 of release of a federal decennial census that shows the county's
 population exceeds 50,000.  The hospital may not employ a new
 physician after that date.
 (c)  The requirements of this subchapter and Subchapter A,
 Chapter 162, Occupations Code, may not be voided or waived by
 contract.
 Sec. 311.063.  HOSPITAL POLICIES. (a)  A hospital shall
 adopt, maintain, and enforce policies to ensure that a physician
 employed under this subchapter whose professional income is
 retained under Section 311.062 exercises independent medical
 judgment when providing care to patients at the hospital.
 (b)  The policies adopted under this section must include
 policies relating to:
 (1) credentialing and privileges;
 (2) quality assurance;
 (3) utilization review;
 (4) peer review;
 (5) medical decision-making; and
 (6) due process.
 (c)  The policies adopted under this section, including any
 amendments to the policies, must be approved by the hospital
 governing board after input from the medical staff as appropriate.
 (d)  The policies adopted under this section must include the
 implementation of a complaint mechanism for processing and
 resolving complaints regarding interference or attempted
 interference with the physician's independent medical judgment.
 The policies must address the manner in which the public can access
 board complaint procedures.
 (e)  The policies of the hospital must be drafted and
 interpreted in a manner that reserves to physicians, including
 physicians employed and physicians not employed by the hospital,
 the sole authority to engage in the practice of medicine.
 Sec. 311.064.  CREDENTIALING AND PRIVILEGES. (a)  A
 physician employed by a hospital under this subchapter is subject
 to the same standards and procedures regarding credentialing, peer
 review, quality of care, and privileges as a physician not employed
 by the hospital.
 (b)  A hospital shall give equal consideration regarding the
 issuance of credentials and privileges to physicians employed by
 the hospital and physicians not employed by the hospital.
 Sec. 311.065.  OTHER HOSPITAL-PHYSICIAN RELATIONSHIPS.
 This subchapter may not be construed as altering, voiding, or
 prohibiting any relationship between a hospital and a physician,
 including a contract or arrangement with an approved nonprofit
 health corporation that is certified under Section 162.001(b),
 Occupations Code, and that holds a certificate of authority issued
 under Chapter 844, Insurance Code.
 Sec. 311.066.  MEDICAL STAFF BYLAWS. The medical staff
 bylaws of a hospital may not discriminate against or favor a
 physician based solely on the physician's employment status with
 the hospital, including emergency call or charity care obligations.
 Sec. 311.067.  FAIR PROCESS; PEER REVIEW. (a) Termination
 of a physician's employment by a hospital is subject to a fair
 review process.
 (b)  A hospital that employs physicians shall provide peer
 review and quality assurance through a multi-hospital peer review
 agreement, an external independent peer review organization, or an
 internal peer review process approved by the hospital governing
 board with appropriate input from the medical staff.
 Sec. 311.068.  REFERRAL OF PATIENTS. (a)  In this section,
 "referral" means referral for admissions, diagnostic tests and
 procedures, surgeries, or other health care services.
 (b)  An employment agreement entered into between a
 physician and a hospital under this subchapter:
 (1)  must state that the hospital may not set goals
 regarding referrals; and
 (2)  may not set, as a condition of employment, the
 volume or number of referrals that must be made.
 Sec. 311.069.  NONRETALIATION REQUIREMENTS. (a)  A hospital
 may not terminate, retaliate against, or otherwise penalize a
 person who reports in good faith to the hospital or the Texas
 Medical Board a violation or attempted violation of this
 subchapter, Subchapter A, Chapter 162, Occupations Code, or Texas
 Medical Board rules.
 (b)  A hospital may not prohibit, restrict, or discourage a
 physician from communicating with the hospital or advocating for a
 patient regarding medically appropriate health care.
 (c) A physician who makes a report under this section:
 (1)  is immune from civil liability for a report made in
 good faith; and
 (2)  may not be disciplined by the Texas Medical Board
 for any corporate practice of medicine violation related to the
 reported action, event, or policy.
 Sec. 311.070. LIABILITY. (a) In this section:
 (1)  "Governmental unit" has the meaning assigned by
 Section 101.001, Civil Practice and Remedies Code.
 (2)  "Governmental hospital" means a hospital that is
 owned or operated by a governmental unit.
 (3)  "Health care liability claim" has the meaning
 assigned by Section 74.001, Civil Practice and Remedies Code.
 (b)  Chapters 101 and 108, Civil Practice and Remedies Code,
 do not apply in an action in which final judgment is rendered in a
 health care liability claim against a physician employed under this
 subchapter by a governmental hospital.
 (c)  A physician's civil liability is limited to a maximum
 amount of $250,000 for each single occurrence of bodily injury or
 death in an action in which final judgment is rendered in a health
 care liability claim against a physician employed under this
 subchapter by a governmental hospital.
 (d)  A governmental hospital shall maintain professional
 liability insurance or a plan of self-insurance covering each
 physician employed by the hospital in the amount of $250,000 for
 each single occurrence of bodily injury or death.
 SECTION 33. Section 694.002, Health and Safety Code, is
 amended by adding Subsections (c) and (d) to read as follows:
 (c)  If a county discovers cash in the possession of a
 deceased pauper, the county shall place the money in a trust
 account.  A person having a claim to the money in the trust account
 must exercise the right to collect the money not later than the
 first anniversary of the date the money is placed in the trust
 account.
 (d)  A county may create a fund to be used by the county to
 pay the costs incurred in disposing of the bodies of deceased
 paupers. If money placed in a trust account under Subsection (c) is
 not claimed by the first anniversary of the date the money is placed
 in the trust account, the county may transfer the money to the fund
 created under this subsection.
 SECTION 34. Section 716.101, Health and Safety Code, is
 amended to read as follows:
 Sec. 716.101. UNIDENTIFIED HUMAN REMAINS. (a) Except as
 provided by Subsection (b), a [A] crematory establishment may not
 accept for cremation unidentified human remains.
 (b)  Notwithstanding any other provision of this chapter, a
 crematory establishment may accept for cremation unidentified
 human remains from a county on the order of:
 (1) the county commissioners court; or
 (2) a court located in the county.
 SECTION 35. Subchapter C, Chapter 113, Local Government
 Code, is amended by adding Section 113.048 to read as follows:
 Sec. 113.048.  DISBURSEMENT OF MONEY FOR JURY SERVICE. (a)
 Notwithstanding any other provision of this subchapter or other law
 to the contrary, a county treasurer may disburse to a person who
 reports for jury service and discharges the person's duty the daily
 amount of reimbursement for jury service expenses set by the
 commissioners court under Section 61.001, Government Code, by:
 (1)  using an electronic funds transfer system in
 accordance with Chapter 156;
 (2) using a cash dispensing machine;
 (3) issuing a debit card or a stored value card; or
 (4)  using any other method that the county treasurer
 and the commissioners court determine is secure, accurate, and
 cost-effective and that is convenient for persons who report for
 jury service.
 (b)  A system or method of payment adopted by a county
 treasurer under Subsection (a) may be implemented only if it is
 approved by the commissioners court and administered in accordance
 with the procedures established by the county auditor or by the
 chief financial officer of a county that does not have a county
 auditor.
 (c)  A system or method of payment authorized by this section
 may be used in lieu of or in addition to the issuance of warrants or
 checks authorized under this subchapter.
 SECTION 36. Sections 155.002(a) and (b), Local Government
 Code, are amended to read as follows:
 (a) A request for a payroll deduction must:
 (1) be in writing;
 (2) be submitted to the county auditor unless the
 deduction is processed through an automated payroll system
 maintained by the county; and
 (3) state the amount to be deducted and the entity to
 which the amount is to be transferred.
 (b) A request remains in effect until:
 (1) the county auditor receives a written notice of
 revocation signed by the employee; or
 (2)  the deduction is revoked by the employee through
 an automated payroll system maintained by the county.
 SECTION 37. Subchapter Z, Chapter 157, Local Government
 Code, is amended by adding Section 157.9031 to read as follows:
 Sec. 157.9031.  AUTHORITY TO REQUIRE REIMBURSEMENT FOR
 CERTAIN COVERAGE. A commissioners court of a self-insuring county
 or an intergovernmental pool operating under Chapter 119 may,
 pursuant to policies concerning the provision of coverage adopted
 by the commissioners court or the pool's governing body, require
 reimbursement for the provision of punitive damage coverage from a
 person to whom the intergovernmental pool provides coverage.
 SECTION 38. Section 250.003(a), Local Government Code, is
 amended to read as follows:
 (a) An individual who is an employee of the owner of real
 property for which a citation for a violation of a county or
 municipal rule or ordinance is issued, or of a company that manages
 the property on behalf of the property owner, is not personally
 liable for criminal or civil penalties resulting from the violation
 if, not later than five calendar days after the date the citation is
 issued, the individual provides the property owner's name, current
 street address, and telephone number to the enforcement official
 who issues the citation or the official's superior.
 SECTION 39. Section 250.004, Local Government Code, is
 amended to read as follows:
 Sec. 250.004. AGENT FOR SERVICE; NOTICE OF CITATION.
 (a)  The [If the property owner's street address is not in this
 state, the] employee of the owner or management company to whom a
 citation described by Section 250.003 is issued is considered the
 owner's agent for accepting service of the citation for the
 violation of the county or municipal rule or ordinance. Service of
 the citation on the agent has the same legal effect as service on
 the owner for the purpose of fines against the owner or the
 property, including a warrant or capias.
 (b)  The county or municipality issuing the citation shall
 mail notice of the citation to the property owner at the address
 most recently provided to the county or municipality by the
 property owner or by the employee of the owner or management company
 under Section 250.003(a). This subsection does not require a
 county or municipality to mail notice using a service that provides
 delivery confirmation.
 SECTION 40. Section 262.003(a), Local Government Code, is
 amended to read as follows:
 (a) Any law that requires a county to follow a competitive
 bidding procedure in making a purchase requiring the expenditure of
 $50,000 [$25,000] or less does not apply to the purchase of an item
 available for purchase from only one supplier.
 SECTION 41. Section 262.023(a), Local Government Code, is
 amended to read as follows:
 (a) Before a county may purchase one or more items under a
 contract that will require an expenditure exceeding $50,000
 [$25,000], the commissioners court of the county must:
 (1) comply with the competitive bidding or competitive
 proposal procedures prescribed by this subchapter;
 (2) use the reverse auction procedure, as defined by
 Section 2155.062(d), Government Code, for purchasing; or
 (3) comply with a method described by Subchapter H,
 Chapter 271.
 SECTION 42. Section 270.007(f), Local Government Code, is
 amended to read as follows:
 (f) Except as provided by Subsection (b), [upon request of
 any person,] a county may [shall] sell or license software under
 this section for a price negotiated between the county and the
 person, including another governmental entity [, not to exceed the
 developmental cost to the county. Developmental cost shall only
 include costs incurred under a contract to procure the software or
 direct employee costs incurred to develop the software. This
 subsection does not apply to any county software that protects
 county computer systems from unauthorized use or access].
 SECTION 43. Section 271.024, Local Government Code, is
 amended to read as follows:
 Sec. 271.024. COMPETITIVE BIDDING PROCEDURE APPLICABLE TO
 CONTRACT. The bidding of [If a governmental entity is required by
 statute to award] a contract awarded by a governmental entity for
 the construction, repair, or renovation of a structure, road,
 highway, or other improvement or addition to real property [on the
 basis of competitive bids, and if the contract requires the
 expenditure of more than $25,000 from the funds of the entity, the
 bidding on the contract] must be accomplished in the manner
 provided by this subchapter if:
 (1)  a statute requires the governmental entity to
 award the contract on the basis of competitive bids; and
 (2)  the contract requires the expenditure of more
 than:
 (A)  $25,000 from the funds of a governmental
 entity other than a county; or
 (B) $50,000 from the funds of a county.
 SECTION 44. Section 363.156(b), Local Government Code, is
 amended to read as follows:
 (b) To the extent competitive bidding procedures in Title 8
 apply, the board may not enter purchasing contracts that involve
 spending more than $50,000 [$25,000] unless the board complies
 with:
 (1) Subchapter C, Chapter 262, if the district was
 created by a county; or
 (2) Chapter 252, if the district was created by a
 municipality.
 SECTION 45. Subchapter A, Chapter 372, Local Government
 Code, is amended to read as follows:
 SUBCHAPTER A. PUBLIC IMPROVEMENT DISTRICTS
 Sec. 372.001. SHORT TITLE. This subchapter may be cited as
 the Public Improvement District Assessment Act.
 Sec. 372.0015. DEFINITIONS [DEFINITION]. In this
 subchapter:
 (1)  "Authorized instrumentality" means a public
 facility corporation created by the governing body of a
 municipality or county under Chapter 303 or a local government
 corporation created by the governing body of a municipality or
 county under Subchapter D, Chapter 431, Transportation Code.
 (2) "Extraterritorial[, "extraterritorial]
 jurisdiction" means extraterritorial jurisdiction of a
 municipality as determined under Chapter 42.
 (3)  "Public improvement district" or "district" means
 an area defined by the governing body of a municipality or county
 that:
 (A)  consists of one or more contiguous or
 noncontiguous tracts of land; and
 (B)  will be specially benefited as determined by
 the municipality or county by any or all of the public improvements
 or services.
 (4)  "Qualified costs" means the costs and expenses
 incurred in establishing, administering, managing, and operating a
 public improvement district, including:
 (A)  costs and expenses of or related to the
 construction of an improvement project;
 (B)  financing of an improvement project by a
 municipality, county, or authorized instrumentality, including the
 debt service requirements owed or to be owed under installment
 purchase or reimbursement contracts, temporary notes, time
 warrants, revenue bonds, special assessment bonds, or certificates
 of obligation, including reserve funds and capitalized interest;
 (C)  costs and expenses of or related to the
 negotiation, development, and execution of the obligations
 described by Paragraph (B);
 (D)  costs and expenses of or related to credit
 and interest rate management agreements entered into under Chapter
 1371, Government Code;
 (E)  costs of attorneys and other professional
 advisors, including consultants; and
 (F)  costs related to the administrative
 oversight of public improvements, services, and operations of the
 public improvement district.
 (5)  "Revenue bonds" means bonds, notes, or other
 securities issued by a municipality, county, or authorized
 instrumentality that are payable from and secured by liens on all or
 part, or a combination of, the revenue derived from installment
 payments of special assessments plus any other revenues, donations,
 grants, or income described by Section 372.026(e).
 (6)  "Special assessment bonds" means bonds, notes, or
 other securities issued by a municipality, county, or authorized
 instrumentality that are payable solely from and secured by special
 assessments levied by the governing body of the municipality or
 county in a public improvement district.
 (7)  "Special district" means a political subdivision
 of this state with a limited geographic area created by local law or
 under general law for a special purpose.
 Sec. 372.002. EXERCISE OF POWERS. (a)  A public
 improvement district is not a separate body politic or corporate
 from the municipality or county that created the district.
 (b) Subject to Section 372.010(c), powers [Powers] granted
 under this subchapter in an area comprising a public improvement
 district may be exercised by a municipality or county on and after
 the date [in which] the governing body of the municipality or county
 [initiates or] receives a petition requesting the establishment of
 a public improvement district that complies[. A petition must
 comply] with the requirements of Section 372.005.
 (c)  The powers granted under this subchapter may be
 exercised by the governing body of any other political subdivision
 if the law creating or governing the political subdivision grants
 the political subdivision authority described by this subchapter.
 The governing body of the political subdivision has the same powers
 and is subject to the same limitations as are applicable to the
 governing body of a municipality or a county under this subchapter
 unless and except as modified by the law creating or governing the
 political subdivision.
 Sec. 372.003. AUTHORIZED IMPROVEMENTS AND SERVICES.
 (a) If the governing body of a municipality or county finds that it
 promotes the interests of the municipality or county, the governing
 body may create one or more public improvement districts under this
 subchapter and undertake one or more [an] improvement projects
 [project] that confer [confers] a special benefit on the property
 located in the public improvement district [a definable part of the
 municipality or county or the municipality's extraterritorial
 jurisdiction]. A project may be undertaken within or outside the
 district in the municipality or county or in the municipality's
 extraterritorial jurisdiction if the project benefits the
 district.
 (b) A public improvement project may include:
 (1) landscaping;
 (2) erection of fountains, distinctive lighting, and
 signs;
 (3) acquiring, constructing, improving, repairing,
 widening, narrowing, closing, or rerouting of sidewalks or of
 streets, roads, highways, bridges, culverts, water retention
 walls, [any other roadways,] or related [their] rights-of-way owned
 by or to be conveyed to the municipality, the county, the federal
 government, or another political subdivision or entity exercising
 powers granted under this subchapter;
 (4) construction or improvement of pedestrian malls;
 (5) acquisition and installation of pieces of art;
 (6) acquisition, construction, or improvement of
 [libraries;
 [(7) acquisition, construction, or improvement of]
 off-street parking facilities;
 (7) [(8)] acquisition, construction, or improvement[,
 or rerouting] of mass transportation facilities, including light
 rail mass transit, streetcar, or similar systems, and related
 vehicle parking facilities;
 (8) [(9)] acquisition, construction, or improvement
 of water, wastewater, or drainage facilities or improvements;
 (9) [(10)] the establishment or improvement of parks,
 playgrounds, lakes, and open spaces, including paths, trails, boat
 docks, and wharves;
 (10)  acquisition, construction, or improvement of
 other public projects that are determined by the municipality or
 county to promote the interests of the municipality or county and to
 be of a special benefit to the public improvement district,
 including:
 (A)  community centers, recreation centers, and
 recreation facilities;
 (B) libraries;
 (C)  facilities for police, sheriffs, or
 firefighters;
 (D)  municipal or county administration centers;
 and
 (E)  other governmental buildings for the
 provision of governmental services;
 (11)  acquisition, construction, or improvement of
 other public projects, facilities, or services required by a
 development agreement, interlocal agreement, zoning regulation, or
 permit issued by a municipality or county having jurisdiction in
 the public improvement district;
 (12)  acquisition, construction, maintenance, or
 improvement of buildings and other facilities commonly used for
 teaching, research, or the preservation of knowledge by an
 institution of higher education as defined by Section 372.0045 or
 for auxiliary purposes of the institution, including
 administration, student services and housing, athletics,
 performing arts, and alumni support;
 (13) [(11)     projects similar to those listed in
 Subdivisions (1)-(10);
 [(12)] acquisition, by purchase or otherwise, of real
 property in connection with an authorized improvement; and
 (14) [(13)] special supplemental services for
 improvement and promotion of the district, including services
 relating to:
 (A) advertising;
 (B) [,] promotion;
 (C) [,] health and sanitation;
 (D) [,] water and wastewater;
 (E)  enhanced fire protection, police, sheriff,
 and other[,] public safety and[,] security;
 (F) [,] business recruitment;
 (G) [,] development;
 (H) [,] recreation;[,] and
 (I) cultural enhancement[; and
 [(14)     payment of expenses incurred in the
 establishment, administration, and operation of the district].
 (b-1)  The legislature finds that a purpose described by
 Subsection (b)(12), including an auxiliary purpose, is an
 authorized economic development purpose of a county or municipality
 under Section 52-a, Article III, Texas Constitution.
 (c) A public improvement project may include or may be
 limited to the provision of all or any part of the services
 described by Subsection (b)(14) [(b)(13)].
 (d) A municipality that exercises powers under this
 subchapter may establish a public improvement district in the
 corporate limits or the extraterritorial jurisdiction of the
 municipality. A county or other political subdivision that
 exercises powers under this subchapter may establish a public
 improvement district in the county or the area of the political
 subdivision, including in the corporate limits or the
 extraterritorial jurisdiction of a municipality unless within 30
 days after the date notice is provided to the municipality of an [a
 county's] action to approve [such] a public improvement district,
 the [a home rule] municipality objects to the district's [its]
 establishment within the municipality's corporate limits or
 extraterritorial jurisdiction.
 Sec. 372.004. COMBINED IMPROVEMENTS. A public [An]
 improvement project may consist of an improvement on more than one
 street or of more than one type of improvement. An improvement [A]
 project described by this section may be included in one proceeding
 and financed as one improvement project.
 Sec. 372.0045.  AUTHORIZED HIGHER EDUCATION FACILITIES;
 LEASE TO INSTITUTION OF HIGHER EDUCATION. (a)  In this section,
 "institution of higher education" has the meaning assigned by
 Section 61.003, Education Code.
 (b)  The governing body of a municipality or county that
 establishes a public improvement district to finance a public
 improvement project described by Section 372.003(b)(12) may enter
 into a memorandum of understanding with an institution of higher
 education that provides educational services in the municipality or
 county under which the municipality or county leases the public
 improvement project to the institution, at a nominal rate, for use
 by the institution in providing teaching, research, public service,
 or auxiliary enterprise activities to students of the institution.
 (c)  A memorandum of understanding entered into by a
 municipality or county under this section must include adequate
 controls to ensure that the lease of the public improvement project
 promotes the municipality's or county's interests and provides a
 public benefit to the area served by the district.
 Sec. 372.005. PETITION. (a) A petition for the
 establishment of a public improvement district must state:
 (1) the general nature of the proposed improvements
 [improvement];
 (2) the estimated qualified costs [cost] of the
 improvements [improvement];
 (3) the boundaries of the proposed [assessment]
 district;
 (4) the proposed method of assessment, which may
 specify included or excluded classes of assessable property;
 (5) [the proposed apportionment of cost between the
 public improvement district and the municipality or county as a
 whole;
 [(6)] whether the management of the district is to be
 by:
 (A) the municipality;
 (B) the [or] county;
 (C) an authorized instrumentality;
 (D) [,] the private sector;[,] or
 (E) a partnership between the private sector and
 one of the entities described by Paragraphs (A)-(C) [municipality
 or county and the private sector];
 (6) [(7)] that the persons signing the petition
 request or concur with the establishment of the district; and
 (7) [(8)] that an advisory body may be established or
 an authorized instrumentality may be incorporated to develop and
 recommend an improvement plan to the governing body of the
 municipality or county.
 (b) The petition is sufficient if signed by:
 (1) owners of taxable real property representing more
 than 50 percent of the appraised value of taxable real property
 liable for assessment under the proposal, as determined by the
 current roll of the appraisal district in which the property is
 located; and
 (2) record owners of real property liable for
 assessment under the proposal who:
 (A) constitute more than 50 percent of all record
 owners of property that is liable for assessment under the
 proposal; or
 (B) own taxable real property that constitutes
 more than 50 percent of the area of all taxable real property that
 is liable for assessment under the proposal.
 (c) A [The] petition filed with the municipality may be
 filed with the municipal secretary or other officer performing the
 functions of the municipal secretary. A petition filed with the
 county may be filed with the county clerk or other officer
 designated by the commissioners court. A petition filed with any
 other political subdivision exercising powers under this
 subchapter may be filed with the political subdivision's governing
 body.
 Sec. 372.006. FINDINGS. (a) If a petition that complies
 with this subchapter is filed, the governing body of the
 municipality or county may make findings by resolution as to:
 (1) the advisability of the proposed improvements;
 (2) the [improvement, its] estimated qualified costs
 of the proposed improvements; and
 (3) [cost,] the method of assessment[, and the
 apportionment of cost between the proposed improvement district and
 the municipality or county as a whole].
 (b)  The governing body's findings under this section are
 conclusive.
 Sec. 372.007. FEASIBILITY REPORT. (a) Before holding the
 hearing required by Section 372.009, the governing body of the
 municipality may use the services of municipal employees, the
 governing body of the county may use the services of county
 employees, or the governing body of the municipality or county may
 employ consultants to prepare a report to determine whether
 improvements [an improvement] should be made as proposed by
 petition or otherwise or whether improvements [the improvement]
 should be made in combination with other improvements authorized
 under this subchapter. The governing body may also require that a
 preliminary estimate of the qualified costs [cost] of improvements
 [the improvement] or a combination of improvements be made.
 (b) For the purpose of determining the feasibility and
 desirability of a public [an] improvement district, the governing
 body may take other preliminary steps before the hearing required
 by Section 372.009 and[,] before establishing a public improvement
 district[, or before entering into a contract].
 Sec. 372.008. ADVISORY BODY. (a) The [After receiving a
 petition that complies with Section 372.005, the] governing body of
 the municipality or county, on the governing body's own initiative
 or after receiving a petition that complies with Section 372.005,
 may appoint an advisory body with the responsibility of developing
 and recommending an improvement plan to the governing body.
 (b) The composition of an [the] advisory body, if
 established, must include:
 (1) owners of taxable real property representing more
 than 50 percent of the appraised value of taxable real property
 liable for assessment under the proposal, as determined by the
 current roll of the appraisal district in which the property is
 located; and
 (2) record owners of real property liable for
 assessment under the proposal who:
 (A) constitute more than 50 percent of all record
 owners of property that is liable for assessment under the
 proposal; or
 (B) own taxable real property that constitutes
 more than 50 percent of the area of all taxable real property that
 is liable for assessment under the proposal.
 (c)  The members of the advisory body serve at the will of the
 governing body of the municipality or county creating the public
 improvement district and may be removed at any time.
 Sec. 372.009. HEARING. (a) A public improvement district
 may be established and improvements provided by the district may be
 financed under this subchapter only after the governing body of the
 municipality or county holds a public hearing on the advisability
 of the improvements [improvement].
 (b) The hearing may be adjourned from time to time until the
 governing body makes findings by resolution as to:
 (1) the advisability of each [the] improvement;
 (2) the nature of each [the] improvement;
 (3) the estimated qualified costs [cost] of each [the]
 improvement;
 (4) the boundaries of the [public improvement]
 district; and
 (5) the method of assessment[; and
 [(6)     the apportionment of costs between the district
 and the municipality or county as a whole].
 (c) Notice of the hearing must be given in a newspaper of
 general circulation in the municipality or county. If any part of
 the public improvement district is to be located in the
 municipality's extraterritorial jurisdiction or if any part of the
 improvements is to be undertaken in the municipality's
 extraterritorial jurisdiction, the notice must also be filed with
 the municipal secretary or other officer performing the duties of
 the municipal secretary and published [given] in a newspaper of
 general circulation in the part of the extraterritorial
 jurisdiction in which the district is to be located or in which the
 improvements are to be undertaken. The final publication of notice
 must be made before the 15th day before the date of the hearing. The
 notice must state:
 (1) the time and place of the hearing;
 (2) the general nature of the proposed improvements
 [improvement];
 (3) the estimated qualified costs [cost] of the
 proposed improvements [improvement];
 (4) the boundaries of the proposed public improvement
 [assessment] district; and
 (5) the proposed method of assessment[; and
 [(6)     the proposed apportionment of cost between the
 improvement district and the municipality or county as a whole].
 (d) Written notice containing the information required by
 Subsection (c) must be mailed before the 15th day before the date of
 the hearing. The notice must be addressed to "Property Owner" and
 mailed to the current address of the owner, as reflected on tax
 rolls, of property subject to assessment under the proposed public
 improvement district.
 Sec. 372.010. IMPROVEMENT ORDER. (a) During the six-month
 period after the date of the final adjournment of the hearing under
 Section 372.009, the governing body of the municipality or county
 may authorize the creation of a public [an] improvement district
 subject to Section 372.012 if, by majority vote of all members of
 the governing body, the governing body adopts [members adopt] a
 resolution authorizing the district in accordance with its finding
 as to the advisability of the improvements [improvement].
 (b) An authorization takes effect when it has been published
 one time in a newspaper of general circulation in the municipality
 or county. If any part of the [improvement] district is located in
 the municipality's extraterritorial jurisdiction or if any part of
 the improvements is to be undertaken in the municipality's
 extraterritorial jurisdiction, the authorization does not take
 effect until the notice is also given one time in a newspaper of
 general circulation in the part of the extraterritorial
 jurisdiction in which the district is located or in which the
 improvements are to be undertaken.
 (c) Actual construction of improvements [an improvement]
 may not begin, and acquisition of existing improvements may not
 occur, until after the 20th day after the date the authorization
 takes effect and may not begin if during that 20-day period written
 protests signed by at least two-thirds of the owners of record of
 property within the [improvement] district or by the owners of
 record of property comprising at least two-thirds of the total area
 of the district are filed with the municipal [or county] secretary
 or other officer performing the duties of the municipal [or county]
 secretary or the county clerk or other officer designated by the
 commissioners court. A person whose name appears on a protest may
 withdraw the name from the protest at any time before the governing
 body of the municipality or county convenes to determine the
 sufficiency of the protest.
 (d)  Before the levy of assessments under Section 372.017,
 the property owners in the district who signed the original
 petition may petition the governing body to amend the resolution
 creating the district adopted under Subsection (a) to amend the
 estimated qualified costs of the improvements, including adding or
 deleting improvement projects. The governing body shall provide
 notice of the owners' petition and hold a public hearing as provided
 by Section 372.009 to make findings, by amended resolution, of the
 nature and estimated qualified costs of each improvement. A county
 or other entity that proposes to amend a resolution under this
 subsection in the corporate boundaries or extraterritorial
 jurisdiction of a municipality shall provide notice to the
 municipality on or before the 30th day before the date the entity
 amends the resolution.
 Sec. 372.011. DISSOLUTION. (a) A public hearing may be
 [called and] held after giving notice in the same manner as a
 hearing under Section 372.009 for the purpose of dissolving a
 district if a petition requesting dissolution is filed and the
 petition contains the signatures of at least enough property owners
 in the district to make a petition sufficient under Section
 372.005(b). If the district is dissolved, the district nonetheless
 shall remain in effect for the purpose of meeting obligations of
 indebtedness for improvements.
 (b)  A district may be dissolved at the discretion of the
 governing body without a petition only if no assessments have been
 levied on property in the district or if assessments previously
 levied have been paid in full and the district has no other
 outstanding obligations. A dissolution under this subsection may
 not occur until after the governing body holds a hearing and gives
 notice in the manner required by Section 372.009.
 Sec. 372.012. AREA OF DISTRICT. The area of a public
 improvement district to be assessed according to the findings of
 the governing body of the municipality or county establishing the
 boundaries may include contiguous and noncontiguous tracts of land
 and may be less than the area described in the proposed boundaries
 stated by the notice under Section 372.009. The area to be assessed
 may not include property not described by the notice as being within
 the proposed boundaries of the district unless a hearing is held to
 include the property and notice for the hearing is given in the same
 manner as notice under Section 372.009.
 Sec. 372.013. SERVICE PLAN. (a) The advisory body shall
 prepare an ongoing service plan and present the plan to the
 governing body of the municipality or county for review and
 approval. The governing body may assign responsibility for the
 plan to the employees of the governing body or an authorized
 instrumentality or to another entity instead [in the absence] of an
 advisory body.
 (b) The plan must cover a period of at least five years and
 must also define the annual indebtedness and the projected
 qualified costs for improvements.
 (c) The plan shall be reviewed and updated annually for the
 purpose of determining the annual budget for improvements. As part
 of the annual update, a revised assessment roll must be prepared to
 reflect any division of parcels and any reallocation of assessments
 based on the division.
 Sec. 372.014. ASSESSMENT PLAN; PAYMENT BY EXEMPT
 JURISDICTIONS. (a) An assessment plan must be included in the
 annual service plan prepared under Section 372.013.
 (b) The municipality or county is responsible for payment of
 assessments against exempt municipal or county property in the
 district if any assessments are levied. Payment of assessments by
 other exempt jurisdictions must be established by contract.
 (c)  The assessment plan may require the district to be
 divided into development phases and, subject to Sections 372.016
 and 372.017, may levy assessments periodically in separate
 development phases or may stagger the collection of assessments,
 with different development phases in the district assigned
 different payment and collection dates. The development phases and
 staggered collection dates may be coordinated with the installation
 of the improvements or with the maturity dates of installation
 purchase or reimbursement contract obligations or with temporary
 notes, time warrants, or bonds [An assessment paid by the
 municipality or county under this subsection is considered to have
 been paid by special assessment for the purposes of Subsection
 (a)].
 Sec. 372.015. DETERMINATION OF ASSESSMENT. (a) The
 governing body of the municipality or county shall apportion the
 qualified costs [cost] of an improvement to be assessed against
 property in a public [an] improvement district. The apportionment
 shall be made on the basis of special benefits accruing to the
 property because of the improvement.
 (b) The qualified costs [Cost] of an improvement may be
 assessed:
 (1) equally per front foot or square foot;
 (2) according to the value of the property as
 determined by the governing body, with or without regard to
 improvements on the property; or
 (3) in any other manner that results in imposing equal
 shares of the qualified costs [cost] on property similarly
 benefitted.
 (c) The governing body may establish by ordinance or order:
 (1) reasonable classifications and formulas for the
 apportionment of the qualified costs [cost] between the
 municipality or county and the area to be assessed; and
 (2) the methods of assessing the special benefits for
 various classes of improvements.
 (d) The amount of assessment for each property owner may be:
 (1) adjusted following the annual review of the
 service plan; and
 (2)  reallocated, but not increased, if an assessed
 parcel has been divided.
 (e)  Notice of any reallocation of assessments shall be given
 to the property owner of the divided parcel.
 (f)  The findings, determinations, and assessments made by
 the governing body under this section are conclusive.
 Sec. 372.016. ASSESSMENT ROLL. (a) The [After the total
 cost of an improvement is determined, the governing body of the]
 municipality or county shall prepare a proposed assessment roll
 based on the estimated qualified costs of the improvements. The
 roll must state the assessment against each parcel of land in the
 district and[, as determined by] the method of assessment [chosen
 by the municipality or county under this subchapter].
 (b) The [governing body shall file the] proposed assessment
 roll must be filed with the municipal secretary or other officer
 performing the functions of the municipal secretary or in a
 district formed by a county, the county tax assessor-collector.
 The proposed assessment roll is subject to public inspection. When
 the assessment roll is filed, the appropriate designated officer
 described by this subsection shall [The governing body shall
 require the municipal secretary or other officer or county tax
 assessor-collector to] publish notice of the governing body's
 intention to consider the proposed assessments at a public hearing.
 The notice must be published in a newspaper of general circulation
 in the municipality or county before the 10th day before the date of
 the hearing. If any part of the public improvement district is
 located in the municipality's extraterritorial jurisdiction or if
 any part of the improvements is to be undertaken in the
 municipality's extraterritorial jurisdiction, the notice must also
 be published, before the 10th day before the date of the hearing, in
 a newspaper of general circulation in the part of the
 extraterritorial jurisdiction in which the district is located or
 in which the improvements are to be undertaken. The notice must
 state:
 (1) the date, time, and place of the hearing;
 (2) the general nature of the improvements
 [improvement];
 (3) the qualified costs [cost] of the improvements
 [improvement];
 (4) the boundaries of the [assessment] district; and
 (5) that written or oral objections will be considered
 at the hearing.
 (c) When the assessment roll is filed under Subsection (b),
 the appropriate designated [municipal secretary or other] officer
 shall mail to the owners of property liable for assessment a notice
 of the hearing. The notice must contain the information required by
 Subsection (b) and the appropriate designated [secretary or other]
 officer shall mail the notice to the last known address of the
 property owner. The failure of a property owner to receive notice
 does not invalidate the proceeding.
 Sec. 372.017. LEVY OF ASSESSMENTS [ASSESSMENT]. (a) At or
 on the adjournment of the hearing referred to by Section 372.016 on
 proposed assessments, the governing body of the municipality or
 county must hear and pass on any objection to a proposed assessment.
 The governing body may:
 (1) amend a proposed assessment on any parcel; and
 (2)  initially or by amendment, provide for reductions
 of the amount of the annual assessment installments if and to the
 extent other revenues of the municipality or county of any of the
 types described by Section 372.026(e) are pledged or become
 available to pay all or part of installment purchase or
 reimbursement contract obligations or temporary notes, time
 warrants, revenue bonds, special assessment bonds, or certificates
 of obligation that are payable in whole or in part from the
 assessment installments.
 (b) After all objections have been heard and the governing
 body has passed on the objections, the governing body by ordinance
 or order shall levy the assessment in the amount required to pay
 qualified costs as a special assessment on the property. The
 governing body by ordinance or order shall specify the method of
 payment of the assessment. The governing body may provide that
 assessments be paid in periodic installments. The installments may
 be in equal or different annual amounts, but must be in amounts each
 year necessary to meet annual qualified costs. The installments
 [for improvements and] must continue for a period and be in amounts
 necessary to retire any [the] indebtedness or obligation to pay or
 reimburse for the qualified costs, including the proper
 administration of the district [on the improvements]. The
 obligation to pay installments may be conditioned on the occurrence
 of a future event or condition if the first periodic installment
 payment of the assessment occurs on a date not later than the fifth
 anniversary of the date the assessment was levied.
 (c) The governing body may:
 (1)  levy multiple assessments on property in the
 district to finance all or part of public improvements and must
 comply with Section 372.016 for each assessment;
 (2)  execute and deliver installment purchase or
 reimbursement contracts or temporary notes or time warrants or
 issue revenue bonds, special assessment bonds, or certificates of
 obligation to pay the qualified costs or to refund previously
 executed installment purchase or reimbursement contracts or
 temporary notes or time warrants; and
 (3)  secure the obligations described by Subdivision
 (2) by pledging one or more of the assessments levied under this
 subchapter.
 Sec. 372.018. INTEREST ON ASSESSMENT; LIEN. (a) An
 assessment bears interest at the rate and for the period specified
 by the governing body of the municipality or county, but may not
 exceed a rate that is [one-half of] one percent higher than the
 actual interest rate paid on any installment purchase or
 reimbursement contract obligation or temporary note or time warrant
 [the public debt] used to finance or to evidence an obligation to
 pay for the improvement. If revenue bonds, special assessment
 bonds, or certificates of obligation are issued to pay or refund any
 of the obligations described by this subsection, the annual
 interest rate is adjusted to a rate not to exceed one percent higher
 than the actual rate paid on the bonds or certificates, if the rate
 is lower than the rate on the obligations. Interest on the
 assessment between the effective date of the ordinance or order
 levying the assessment and the date the first installment is
 payable shall be added to the first installment. The interest on
 any delinquent installment shall be added to each subsequent
 installment until all delinquent installments are paid. The added
 interest payable on an installment purchase or reimbursement
 contract or a temporary note, time warrant, or bond under this
 subsection may be used by a municipality or county to pay qualified
 costs of improvements or the costs of administration of the
 district, including the enforcement of assessments or the payment
 or prepayment of obligations.
 (b) An assessment or reassessment, with interest, the
 expense of collection, and reasonable attorney's fees, if incurred,
 is a first and prior lien against the property assessed, superior to
 all other liens and claims except liens or claims for [state,]
 county, special [school] district, or municipality ad valorem
 taxes, and is a personal liability of and charge against the owners
 of the property regardless of whether the owners are named. The
 lien is effective from the date of the ordinance or order levying
 the assessment until the assessment is paid in full and may be
 enforced by the governing body in the same manner that an ad valorem
 tax lien against real property may be enforced by the governing
 body. On the sale of assessed property, any installment or portion
 of an assessment that is or will be payable for the property during
 the year of the sale shall be prorated between the buyer and the
 seller in the same manner as ad valorem taxes are prorated between a
 buyer and seller. Delinquent installments of the assessment shall
 incur interest, penalties, and [attorney's] fees in the same manner
 as delinquent ad valorem taxes.
 (c)  A district assessment on property under this subchapter
 runs with the land. Any portion of an assessment payment obligation
 that is not yet due is not eliminated by the foreclosure of an ad
 valorem tax lien. Any purchaser of property at a foreclosure sale
 under an ad valorem tax lien takes the property subject to any
 assessment payment obligation that is not yet due and to the terms
 of payment under the applicable assessment ordinance or order.
 (d) The owner of assessed property may pay at any time on any
 parcel or lot the entire assessment, with interest that:
 (1) has accrued on the assessment; and
 (2)  will accrue on the assessment until the next
 scheduled prepayment or redemption date on the installment purchase
 or reimbursement contract or temporary note, time warrant, revenue
 bond, special assessment bond, or certificate of obligation that
 secured the assessment[, on any lot or parcel].
 Sec. 372.019. SUPPLEMENTAL ASSESSMENTS. After notice and a
 hearing, the governing body of the municipality or county may make
 supplemental assessments to correct omissions or mistakes in the
 assessment relating to the qualified costs [total cost] of the
 improvement. Notice must be given and the hearing held under this
 section in the same manner as required by Sections 372.016 and
 372.017.
 Sec. 372.020. REASSESSMENT. The governing body of the
 municipality or county may make a reassessment or new assessment of
 a parcel of land if:
 (1) a court [of competent jurisdiction] sets aside an
 assessment against the parcel;
 (2) the governing body determines that the original
 assessment is excessive; or
 (3) on the written advice of counsel, the governing
 body determines that the original assessment is invalid.
 Sec. 372.021. SPECIAL IMPROVEMENT DISTRICT FUND. (a) A
 municipality or county that intends to create a public improvement
 district may by ordinance or order establish a special improvement
 district fund in the municipal or county treasury or in a bank
 designated by the municipality or county to serve as a depository
 bank for the district's funds.
 (b) The municipality or county annually may levy a tax to
 support the fund established under this section.
 (c) The fund may be used to:
 (1) pay the qualified costs of improvements [planning,
 administration, and an improvement authorized by this subchapter];
 (2) prepare preliminary plans, studies, and
 engineering reports to determine the feasibility of improvements
 [an improvement]; and
 (3) if ordered by the governing body of the
 municipality or county, pay the initial qualified costs of
 improvements [cost of the improvement] until installment purchase
 contracts or reimbursement contracts are entered into or temporary
 notes or[,] time warrants are issued or revenue bonds, special
 assessment bonds, or certificates of obligation are[, or
 improvement bonds have been] issued and sold.
 (d) The fund is not required to be budgeted for expenditure
 during any year, but the amount of the fund must be stated in the
 municipality's or county's annual budget. The amount of the fund
 must be based on an annual service plan that describes the public
 improvements for the fiscal year.
 [(e)     A grant-in-aid or contribution made to the
 municipality or county for the planning and preparation of plans
 for an improvement authorized under this subchapter may be credited
 to the special improvement district fund.]
 Sec. 372.022. SEPARATE FUNDS. (a) A separate public
 improvement district fund shall be created in the municipal or
 county treasury or in a designated depository bank as provided by
 Section 372.021 for each district.
 (b) The following revenues shall be deposited to the fund:
 (1) special assessments;
 (2)  money, if any, contributed by the municipality or
 county to pay qualified costs;
 (3) proceeds [Proceeds] from the sale of revenue
 bonds, if payable in part from special assessments;
 (4)  proceeds from the sale of special assessment bonds
 or certificates of obligation;[, temporary notes, and time
 warrants,] and
 (5) any other sums appropriated to the fund by the
 governing body of the municipality or county for the district
 [shall be credited to the fund].
 (c) The fund may be used solely to pay:
 (1) qualified costs of improvement;
 (2)  amounts due on an installment purchase contract or
 reimbursement amounts owed under a reimbursement contract,
 temporary note, or time warrant; or
 (3)  any revenue bonds, special assessment bonds, or
 certificates of obligation that are payable in whole or in part from
 special assessments levied under this subchapter [incurred in
 making an improvement].
 (d) When an improvement is completed and all of the
 obligations are paid in full, the balance on deposit in the special
 improvement district fund that was derived from special
 assessments, if any, [of the part of the assessment that is for
 improvements] shall be transferred to a [the] fund established for
 the retirement of bonds that are payable in whole or in part from
 assessments.
 Sec. 372.023. PAYMENT OF QUALIFIED COSTS. (a) The
 qualified costs [cost] of an improvement made under this subchapter
 may [must] be paid by a method or by a combination of methods
 described by [in accordance with] this section and Section 372.024.
 (b) The [A cost payable by the] municipality or county [as a
 whole] may, on its own or under an installment purchase,
 reimbursement, or other contract with a third party:
 (1)  erect, acquire, construct, improve, repair,
 establish, install, or equip improvements; and
 (2)  pay all or part of the qualified costs of the
 improvements [be paid] from:
 (A) general funds or other revenues available for
 that [the] purpose;
 (B) special assessments; or
 (C)  the issuance and sale of general obligation
 bonds, certificates of obligation, revenue bonds, or special
 assessment bonds [other available general funds].
 (c) The municipality or county may enter into and execute an
 installment purchase or reimbursement contract with or may deliver
 a nonnegotiable but transferable temporary note or time warrant to
 a third party under which:
 (1) the third party agrees to:
 (A)  erect, acquire, construct, improve, repair,
 establish, install, or equip public improvements; and
 (B)  dedicate or sell the improvements to the
 municipality, county, or authorized instrumentality; and
 (2)  the municipality, county, or authorized
 instrumentality agrees to pay or reimburse the third party for the
 qualified costs by paying accumulated amounts due under the
 installment purchase or reimbursement contract, temporary note, or
 time warrant from any and all of the sources described by Subsection
 (b)(2) [A cost payable from a special assessment that has been paid
 in full shall be paid from that assessment].
 (d) Subject to Section 372.018, an installment purchase or
 reimbursement contract, temporary note, or time warrant may bear
 interest at a rate and for a period determined by the governing body
 of the municipality or county [A cost payable from a special
 assessment that is to be paid in installments and a cost payable by
 the municipality or county as a whole but not payable from available
 general funds or other available general improvement funds shall be
 paid by the issuance and sale of revenue or general obligation
 bonds].
 (e) An installment purchase or reimbursement contract,
 temporary note, or time warrant that is payable from installments
 of assessments is subject to prepayment and redemption at any time
 from the proceeds of prepayment of assessments made by a property
 owner under Section 372.018(d) [While an improvement is in
 progress, the governing body of the municipality or county may
 issue temporary notes or time warrants to pay for the costs of the
 improvement and, on completion of the improvement, issue revenue or
 general obligation bonds.
 [(f)     The cost of more than one improvement may be paid from a
 single issue and sale of bonds without other consolidation
 proceedings before the bond issue.
 [(g)     The costs of any improvement include all costs incurred
 in connection with the issuance of bonds under Section 372.024 and
 may be included in the assessments against the property in the
 improvement district as provided by this subchapter].
 Sec. 372.024. GENERAL OBLIGATION BONDS, [AND] REVENUE AND
 SPECIAL ASSESSMENT BONDS, CERTIFICATES OF OBLIGATION, AND BONDS
 ISSUED BY AUTHORIZED INSTRUMENTALITY. (a)  The governing body of a
 municipality or county may issue:
 (1) general [General] obligation bonds [issued to pay
 costs under Section 372.023(d) must be issued] under [the
 provisions of] Subtitles A and C, Title 9, Government Code;
 (2)  revenue bonds or special assessment bonds in one
 or more series; and
 (3)  certificates of obligation under Subchapter C,
 Chapter 271.
 (b)  A bond or obligation described by Subsection (a) may be
 issued to:
 (1)  pay qualified costs under Section 372.023(b),
 including the costs of issuing bonds; and
 (2)  pay or refund obligations executed or issued under
 Section 372.023(c).
 (c)  Certificates of obligation may be payable from and
 secured by installment payments of special assessments levied under
 this subchapter.
 (d)  The governing body of the municipality or county or the
 authorized instrumentality may include any term or provision
 consistent with this subchapter in a revenue bond or a special
 assessment bond issued under this section.
 (e)  The governing body of a municipality or county may
 incorporate an authorized instrumentality to act on its behalf to
 issue revenue bonds or special assessment bonds under this section.
 The governing body may enter into agreements and contracts with the
 authorized instrumentality to transfer pledged revenues, funds,
 and special assessments to or for the account of the authorized
 instrumentality at the times and as required by the terms of the
 resolution authorizing the issuance of the revenue bonds or special
 assessment bonds. Any bonds issued by an authorized
 instrumentality must be approved by the governing body of the
 municipality or county before issuance and delivery to the
 purchaser.
 (f)  To the extent consistent with this subchapter, an
 authorized instrumentality shall issue revenue bonds or special
 assessment bonds under:
 (1)  Chapter 303, if the authorized instrumentality is
 a public facility corporation; or
 (2)  Subchapter D, Chapter 431, Transportation Code, if
 the authorized instrumentality is a local government corporation
 [Revenue bonds issued to pay costs under that subsection may be
 issued from time to time in one or more series and are to be payable
 from and secured by liens on all or part of the revenue derived from
 improvements authorized under this subchapter, including revenue
 derived from installment payments of special assessments].
 Sec. 372.0241.  SPECIAL ASSESSMENT PUBLIC IMPROVEMENT
 DISTRICT MANAGEMENT POLICY. (a)  The governing body of a
 municipality or county may develop, adopt, and amend a special
 assessment public improvement district management policy.
 (b)  The policy may establish the general requirements and
 standards for and the preconditions to:
 (1)  the creation of a public improvement district
 under this subchapter;
 (2)  the execution and issuance of installment purchase
 or reimbursement contracts or temporary notes or time warrants; and
 (3)  the issuance of any bonds or certificates of
 obligation payable in whole or in part from special assessments.
 (c)  If a management policy is adopted, compliance with the
 terms of the policy, including any amendments to the policy, is
 required for:
 (1)  the execution of any installment purchase or
 reimbursement contracts or temporary notes or time warrants;
 (2)  the issuance of any revenue bonds or special
 assessment bonds by the municipality or county or by an authorized
 instrumentality; and
 (3)  the issuance of any certificates of obligation by
 a municipality or county.
 Sec. 372.025. TERMS AND CONDITIONS OF BONDS. (a) Revenue
 bonds and special assessment bonds issued under Section 372.024
 must be authorized by:
 (1) ordinance, if issued by a municipality;
 (2) order, if issued by a county; and
 (3)  resolution, if issued by an authorized
 instrumentality.
 (b) Revenue bonds and special assessment bonds may be issued
 to mature serially or in any other manner but must mature not later
 than 40 years after their date. A provision may be made for the
 subsequent issuance of additional parity bonds or subordinate lien
 bonds secured in whole or in part by any assessments or any other
 revenues authorized by this subchapter under terms and conditions
 specified in the ordinance, [or] order, or resolution authorizing
 the issuance of the bonds.
 (c)  Revenue bonds, special assessment bonds, and
 certificates of obligation may be subject to redemption before
 maturity at the option of the issuer and at the times and in the
 manner provided by the ordinance, order, or resolution authorizing
 the issuance. Revenue bonds and certificates of obligation that
 are secured in part by a pledge of special assessments and all
 special assessment bonds are subject to mandatory redemption at
 least semiannually from funds provided by assessed parties, if any,
 as prepayment of installments of special assessments under Section
 372.018(d).
 (d)  Revenue bonds and special assessment bonds shall be
 executed in the manner and by the persons required by the ordinance,
 order, or resolution authorizing the issuance.
 (e) Revenue bonds and special assessment [(b) The] bonds
 [shall be executed and the bonds] and any interest coupons
 appertaining to the bonds [them] are negotiable instruments within
 the meaning and for all purposes of the Uniform Commercial Code
 (Section 1.101 et seq., Business & Commerce Code).
 (f) The ordinance, [or] order, or resolution authorizing
 the issuance of the revenue bonds or special assessment bonds must
 specify:
 (1) whether the bonds may be registered [are issued
 registrable] as to principal alone or as to both principal and
 interest;
 (2) whether the bonds are redeemable before maturity;
 (3) the form, denomination, and manner of issuance;
 (4) the terms, conditions, and other details applying
 to the bonds including the price, terms, and interest rates on the
 bonds; and
 (5) the manner of sale of the bonds.
 (g) [(c)] The ordinance, [or] order, or resolution
 authorizing the issuance of the bonds may specify that the proceeds
 from the sale of the bonds:
 (1) be used to pay interest on the bonds during and
 after the period of acquisition or construction of an improvement
 financed through the sale of the bonds;
 (2) be used for creating a reserve fund for payment of
 the principal of and interest on the bonds and for creating other
 funds; [and]
 (3) be used for the payment of any other qualified
 costs as determined by the governing body of the municipality or
 county or by the authorized instrumentality; and
 (4) may be placed in time deposit or invested, until
 needed.
 Sec. 372.026. PLEDGES. (a) For the payment of [bonds
 issued under this subchapter and the payment of] principal,
 interest, and any other amounts payable on or with respect to any
 bonds issued by a municipality or county under this subchapter
 [required or permitted in connection with the bonds], the governing
 body of the municipality or county may pledge:
 (1) all or part of the income from improvements
 financed under this subchapter, including income received in
 installment payments from special assessments; and
 (2)  if the payment is for the payment of revenue bonds,
 any other revenue described by Subsection (e) [under Section
 372.023].
 (b) For the payment of principal, interest, and any other
 amounts payable on or with respect to bonds issued by an authorized
 instrumentality under this subchapter, the authorized
 instrumentality may pledge all or part of the assessments or other
 revenues, if any, that are to be transferred and paid to the
 authorized instrumentality by the municipality or county under an
 agreement entered into between the parties under Section
 372.024(e).
 (c) Pledged income must be [fixed and collected in amounts]
 sufficient, with other pledged resources, if any, to pay principal,
 interest, and other expenses related to the bonds, and to the extent
 required by the ordinance, [or] order, or resolution authorizing
 the bonds, to pay for the operation, maintenance, and other
 expenses related to improvements authorized by this subchapter.
 (d) Bonds issued by a municipality or county [(c)     The
 bonds] may also be secured by mortgages or deeds of trust on any
 real property related to the facilities authorized under this
 subchapter that are owned or are to be acquired by the municipality
 or county and by chattel mortgages, liens, or security interests on
 any personal property appurtenant to that real property. The
 governing body may authorize the execution of trust indentures,
 mortgages, deeds of trust, or other forms of encumbrances as
 evidence of the security interest of the holders of the bonds in the
 related property [indebtedness].
 (e) [(d)] The governing body may pledge to the payment of
 certificates of obligation issued by the governing body or to the
 payment of revenue bonds issued by the governing body or by an
 authorized instrumentality all or part of a grant, donation,
 revenue, or income received or to be received from the government of
 the United States or any other public or private source, whether or
 not it is received pursuant to an agreement or otherwise, including
 impact fees and incremental ad valorem tax revenues collected by a
 municipality or by another taxing unit and municipal sales tax
 collected by a municipality from all or part of a tax increment
 reinvestment zone created under Chapter 311, Tax Code.
 Sec. 372.027. REFUNDING BONDS. (a) Revenue bonds and
 special assessment bonds issued under this subchapter and
 certificates of obligation payable solely from special assessments
 may be refunded or refinanced by the issuance of refunding bonds,
 under terms or conditions provided [set forth] in the ordinance,
 order, or resolution authorizing the issuance [ordinances or
 orders] of the [municipality or county issuing the] bonds. The
 provisions of this subchapter applying generally to revenue bonds
 and special assessment bonds, including provisions related to the
 issuance of those bonds, apply to refunding bonds of like kind
 authorized by this section. The refunding bonds may be sold and
 delivered in amounts necessary to pay [for] the principal,
 interest, and any redemption premium of the bonds [to be refunded],
 on the date of the maturity of the bonds [bond] or any redemption
 date of the bonds [bond].
 (b) Refunding bonds may be issued for exchange with the
 bonds they are refunding. The comptroller of public accounts shall
 register refunding bonds described by this subsection and deliver
 the bonds to holders of bonds being refunded in accordance with the
 ordinance, [or] order, or resolution authorizing the issuance of
 refunding bonds. The exchange may be made in one delivery or
 several installment deliveries.
 (c) General obligation bonds and certificates of obligation
 issued under this subchapter may be refunded in the manner provided
 by law.
 Sec. 372.028. APPROVAL AND REGISTRATION. (a) Revenue
 bonds and special assessment bonds issued under this subchapter and
 a record of the proceedings authorizing their issuance must be
 submitted to the attorney general for examination. If revenue
 bonds state that they are secured by a pledge of revenue or rentals
 from a contract or lease, a copy of the contract or lease and a
 description of the proceedings authorizing the contract or lease
 must also be submitted to the attorney general.
 (b) If the attorney general determines that the bonds were
 authorized and the contracts or leases related to the bonds were
 made in accordance with the law, the attorney general shall approve
 the bonds and the contract or lease. After [On the approval of] the
 attorney general approves the bonds and the contract or lease, the
 comptroller of public accounts shall register the bonds.
 (c) Bonds and contracts or leases approved and registered
 under this section are:
 (1) valid and binding obligations for all purposes in
 accordance with their terms; and
 (2) [are] incontestable in any court or other forum.
 (d) General obligation bonds and certificates of obligation
 issued under this subchapter shall be approved and registered as
 provided by law.
 Sec. 372.029. AUTHORIZED INVESTMENTS; SECURITY.
 (a) Bonds issued under this subchapter are legal and authorized
 investments for:
 (1) banks, trust companies, and savings and loan
 associations;
 (2) all insurance companies;
 (3) fiduciaries, trustees, and guardians; and
 (4) interest funds, sinking funds, and other public
 funds of the state or of an agency, subdivision, or instrumentality
 of the state, including a county, municipality, school district, or
 other district, public agency, or body politic.
 (b) Bonds issued under this subchapter may be security for
 deposits of public funds of the state or of an agency, subdivision,
 or instrumentality of the state, including a county, municipality,
 school district, or other district, public agency, or body politic,
 to the extent of the market value of the bonds, if accompanied by
 any appurtenant [unmatured] interest coupons that have not matured.
 Sec. 372.030. SUBCHAPTER NOT EXCLUSIVE. This subchapter is
 an alternative to other methods by which a municipality may finance
 public improvements under applicable law [by assessing property
 owners].
 SECTION 46. (a) Section 372.1011, Local Government Code,
 is amended to read as follows:
 Sec. 372.1011. APPLICABILITY. This subchapter applies only
 to:
 (1) a county with a population of 1.2 million
 [825,000] or more, other than a county that:
 (A) borders on the Gulf of Mexico or a bay or
 inlet of the gulf; or
 (B) has two municipalities located wholly or
 partly in its boundaries each having a population of 300,000 or
 more; or
 (2) a county with a population of 70,000 or more that
 is adjacent to a county described by Subdivision (1) in which a
 municipality with a population of 35,000 or more is primarily
 situated and includes all or a part of the extraterritorial
 jurisdiction of a municipality with a population of 1.1 million or
 more.
 (b) This section takes effect only if the Act of the 81st
 Legislature, Regular Session, 2009, relating to nonsubstantive
 additions to and corrections in enacted codes does not become law.
 If the Act of the 81st Legislature, Regular Session, 2009, relating
 to nonsubstantive additions to and corrections in enacted codes
 becomes law, this section has no effect.
 SECTION 47. Subchapter C, Chapter 372, Local Government
 Code, is amended by adding Section 372.1245 to read as follows:
 Sec. 372.1245.  ANNEXATION OR EXCLUSION OF LAND. (a)  A
 district may annex or exclude land from the district as provided by
 Subchapter J, Chapter 49, Water Code.
 (b)  Before a district may adopt an order adding or excluding
 land, the district must obtain the consent of:
 (1)  the county that created the district by a
 resolution of the county commissioners court; and
 (2)  a municipality in which the district is located,
 or in whose extraterritorial jurisdiction the district is located,
 by a resolution adopted by the municipality's governing body.
 SECTION 48. Section 372.127(c), Local Government Code, is
 amended to read as follows:
 (c) A county must adopt an order providing whether a
 district has the authority to impose a hotel occupancy tax, sales
 and use tax, or ad valorem tax, and must provide the maximum rate at
 which the district may impose the tax. [A tax rate approved by the
 commissioners court and pledged to secure bonds, notes, grant
 agreements, or development agreements may not be reduced until the
 obligations of those instruments have been satisfied.]
 SECTION 49. (a) Section 382.002, Local Government Code, is
 amended to read as follows:
 Sec. 382.002. APPLICABILITY. This chapter applies only
 to:
 (1) a county with a population of 1.2 million
 [825,000] or more, other than a county that:
 (A) borders on the Gulf of Mexico or a bay or
 inlet of the gulf; or
 (B) has two municipalities located wholly or
 partly in its boundaries each having a population of 300,000 or
 more; or
 (2) a county with a population of 70,000 or more that
 is adjacent to a county described by Subdivision (1) in which a
 municipality with a population of 35,000 or more is primarily
 situated and includes all or a part of the extraterritorial
 jurisdiction of a municipality with a population of 1.1 million or
 more.
 (b) This section takes effect only if the Act of the 81st
 Legislature, Regular Session, 2009, relating to nonsubstantive
 additions to and corrections in enacted codes becomes law. If the
 Act of the 81st Legislature, Regular Session, 2009, relating to
 nonsubstantive additions to and corrections in enacted codes does
 not become law, this section has no effect.
 SECTION 50. Subchapter C, Chapter 382, Local Government
 Code, is amended by adding Section 382.113 to read as follows:
 Sec. 382.113.  ANNEXATION OR EXCLUSION OF LAND. (a)  A
 district may annex or exclude land from the district as provided by
 Subchapter J, Chapter 49, Water Code.
 (b)  Before a district may adopt an order adding or excluding
 land, the district must obtain the consent of:
 (1)  the county that created the district by a
 resolution of the county commissioners court; and
 (2)  a municipality in which the district is located,
 or in whose extraterritorial jurisdiction the district is located,
 by a resolution adopted by the municipality's governing body.
 SECTION 51. Section 382.153(c), Local Government Code, is
 amended to read as follows:
 (c) A county must adopt an order providing whether a
 district has the authority to impose a hotel occupancy tax, sales
 and use tax, or ad valorem tax, and must provide the maximum rate at
 which the district may impose the tax. [A tax rate approved by the
 commissioners court and pledged to secure bonds, notes, grant
 agreements, or development agreements may not be reduced until the
 obligations of those instruments have been satisfied.]
 SECTION 52. Section 387.003, Local Government Code, is
 amended by amending Subsections (a), (b), (b-1), (c), (e), (f), and
 (h) and adding Subsections (a-1), (i), and (j) to read as follows:
 (a) The commissioners court of the county may call an
 election on the question of creating a county assistance district
 under this chapter. More than one county assistance district may be
 created in a county, but not more than one county assistance
 district may be created in a commissioner's precinct.
 (a-1) A district may [to] perform the following functions in
 the district:
 (1) the construction, maintenance, or improvement of
 roads or highways;
 (2) the provision of law enforcement and detention
 services;
 (3) the maintenance or improvement of libraries,
 museums, parks, or other recreational facilities;
 (4) the provision of services that benefit the public
 health or welfare, including the provision of firefighting and fire
 prevention services; or
 (5) the promotion of economic development and tourism.
 (b) The order calling the election must:
 (1) define the boundaries of the district to include
 any portion of the county in which the combined tax rate of all
 local sales and use taxes imposed, including the rate to be imposed
 by the district if approved at the election, would not exceed the
 maximum combined rate of sales and use taxes imposed by political
 subdivisions of this state that is prescribed by Sections 321.101
 and 323.101, Tax Code [two percent]; and
 (2) call for the election to be held within those
 boundaries.
 (b-1) If the proposed district includes any territory of a
 municipality, the commissioners court shall send notice by
 certified mail to the governing body of the municipality of the
 commissioners court's intent to create the district. If the
 municipality has created a development corporation under Chapter
 504 or 505, Local Government Code [Section 4A or 4B, Development
 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
 Statutes)], the commissioners court shall also send the notice to
 the board of directors of the corporation. The commissioners court
 must send the notice not later than the 60th day before the date the
 commissioners court orders the election. The governing body of the
 municipality may exclude the territory of the municipality from the
 proposed district by sending notice by certified mail to the
 commissioners court of the governing body's desire to exclude the
 municipal territory from the district. The governing body must
 send the notice not later than the 45th day after the date the
 governing body receives notice from the commissioners court under
 this subsection. The territory of a municipality that is excluded
 under this subsection may subsequently be included in:
 (1) the district in an election held under Subsection
 (f) with the consent of the municipality; or
 (2)  another district after complying with the
 requirements of this subsection and after an election under
 Subsection (f).
 (c) The ballot at the election must be printed to permit
 voting for or against the proposition: "Authorizing the creation
 of the ____ County Assistance District No.___ (insert name of
 district) and the imposition of a sales and use tax at the rate of
 ____ [of one] percent (insert [one-eighth, one-fourth,
 three-eighths, or one-half, as] appropriate rate) for the purpose
 of financing the operations of the district."
 (e) If a majority of the votes received at the election are
 against the creation of the district, the district is not created
 and the county at any time may call one or more elections [another
 election] on the question of creating one or more [a] county
 assistance districts [district may not be held in the county before
 the first anniversary of the most recent election concerning the
 creation of a district].
 (f) The commissioners court may call an election to be held
 in an area of the county that is not located in a district created
 under this section to determine whether the area should be included
 in the district and whether the district's sales and use tax should
 be imposed in the area. An election may not be held in an area in
 which the combined tax rate of all local sales and use taxes
 imposed, including the rate to be imposed by the district if
 approved at the election, would exceed the maximum combined rate of
 sales and use taxes imposed by political subdivisions of this state
 that is prescribed by Sections 321.101 and 323.101, Tax Code [two
 percent].
 (h) If more than one election to authorize a local sales and
 use tax is held on the same day in the area of a proposed district or
 an area proposed to be added to a district and if the resulting
 approval by the voters would cause the imposition of a local sales
 and use tax in any area to exceed the maximum combined rate of sales
 and use taxes of political subdivisions of this state that is
 prescribed by Sections 321.101 and 323.101, Tax Code [two percent],
 only a tax authorized at an election under this section may be
 imposed.
 (i)  In addition to the authority to include an area in a
 district under Subsection (f), the governing body of a district by
 order may include an area in the district on receipt of a petition
 or petitions signed by the owner or owners of the majority of the
 land in the area to be included in the district. If there are no
 qualified voters in the area to be included in the district, no
 election is required.
 (j)  The commissioners court by order may exclude an area
 from the district if the district has no outstanding bonds payable
 wholly or partly from sales and use taxes and the exclusion does not
 impair any outstanding district debt or contractual obligation.
 SECTION 53. Section 387.005, Local Government Code, is
 amended to read as follows:
 Sec. 387.005. GOVERNING BODY. (a) The commissioners
 court of the county in which the district is created by order shall
 provide that:
 (1) the commissioners court is the governing body of
 the district; or
 (2)  the commissioners court shall appoint a governing
 body of the district.
 (b) A member of the governing body of the district
 [commissioners court] is not entitled to compensation for service
 [on the governing body of the district] but is entitled to
 reimbursement for actual and necessary expenses.
 (c)  A board of directors appointed by the commissioners
 court under this section shall consist of five directors who serve
 staggered terms of two years. To be eligible to serve as a
 director, a person must be at least 18 years of age and a resident of
 the county in which the district is located. The initial directors
 shall draw lots to achieve staggered terms, with three of the
 directors serving one-year terms and two of the directors serving
 two-year terms.
 SECTION 54. Section 387.006(a), Local Government Code, is
 amended to read as follows:
 (a) A district may:
 (1) perform any act necessary to the full exercise of
 the district's functions;
 (2) accept a grant or loan from:
 (A) the United States;
 (B) an agency or political subdivision of this
 state; or
 (C) a public or private person;
 (3) acquire, sell, lease, convey, or otherwise dispose
 of property or an interest in property under terms determined by the
 district;
 (4) employ necessary personnel; [and]
 (5) adopt rules to govern the operation of the
 district and its employees and property; and
 (6)  enter into agreements with municipalities
 necessary or convenient to achieve the district's purposes,
 including agreements regarding the duration, rate, and allocation
 between the district and the municipality of sales and use taxes.
 SECTION 55. Section 387.007, Local Government Code, is
 amended by amending Subsection (b) and adding Subsection (c) to
 read as follows:
 (b) A district may not adopt a sales and use tax under this
 chapter if the adoption of the tax would result in a combined tax
 rate of all local sales and use taxes that would exceed the maximum
 combined rate prescribed by Sections 321.101 and 323.101, Tax Code,
 [of more than two percent] in any location in the district.
 (c)  A district may define areas in the district to pay for
 improvements, facilities, or services that primarily benefit that
 area and do not generally and directly benefit the district as a
 whole. The district may impose different rates of sales and use tax
 in each defined area, provided that the sales and use tax rate does
 not exceed the rate approved at an election held under Section
 387.003.
 SECTION 56. Section 387.009, Local Government Code, is
 amended to read as follows:
 Sec. 387.009. TAX RATE. The rate of a tax adopted under
 this chapter must be in increments of one-eighth[, one-fourth,
 three-eighths, or one-half] of one percent.
 SECTION 57. Sections 387.010(a), (b), and (c), Local
 Government Code, are amended to read as follows:
 (a) A district that has adopted a sales and use tax under
 this chapter may, by order and subject to Section 387.007(b):
 (1) reduce [, change] the rate of the tax or repeal the
 tax without an election, except that the district may not repeal the
 sales and use tax or reduce the rate of the sales and use tax below
 the amount pledged to secure payment of an outstanding district
 debt or contractual obligation;
 (2)  increase the rate of the sales and use tax, if the
 increased rate of the sales and use tax will not exceed the rate
 approved at an election held under Section 387.003; or
 (3)  increase the rate of the sales and use tax to a
 rate that exceeds the rate approved at an election held under
 Section 387.003 after [if] the increase [change or repeal] is
 approved by a majority of the votes received in the district at an
 election held for that purpose.
 (b) The tax may be changed under Subsection (a) in one or
 more increments of one-eighth of one percent [to a maximum of
 one-half of one percent].
 (c) The ballot for an election to increase [change] the tax
 shall be printed to permit voting for or against the proposition:
 "The increase [change] of a sales and use tax for the ____ County
 Assistance District No. ___ (insert name of district) from the rate
 of ____ [of one] percent (insert [one-fourth, three-eighths, or
 one-half, as] appropriate rate) to the rate of ____ [of one] percent
 (insert [one-fourth, three-eighths, or one-half, as] appropriate
 rate)."
 SECTION 58. Section 387.012, Local Government Code, is
 amended to read as follows:
 Sec. 387.012. EFFECTIVE DATE OF TAX. The adoption of the
 tax, the increase or reduction [change] of the tax rate, or the
 repeal of the tax takes effect on the first day of the first
 calendar quarter occurring after the expiration of the first
 complete quarter occurring after the date the comptroller receives
 a copy of the order of the district's governing body [notice of the
 results of the election] adopting, increasing, reducing
 [changing], or repealing the tax.
 SECTION 59. Section 162.001, Occupations Code, is amended
 by amending Subsection (a) and adding Subsection (d) to read as
 follows:
 (a) The board by rule shall certify a health organization
 that:
 (1) applies for certification on a form approved by
 the board; [and]
 (2) presents proof satisfactory to the board that the
 organization meets the requirements of Subsection (b), [or] (c), or
 (d); and
 (3)  states that the health organization has consulted
 with the organization's medical staff before filing an application
 for certification under Subsection (d), if appropriate.
 (d)  The board shall certify a health organization to employ
 physicians licensed by the board if the organization is in
 compliance with Subchapter E, Chapter 311, Health and Safety Code,
 and this subchapter, including board rules.
 SECTION 60. Subchapter A, Chapter 162, Occupations Code, is
 amended by adding Sections 162.004 through 162.007 to read as
 follows:
 Sec. 162.004.  EMPLOYER AND EMPLOYEE REQUIREMENTS. The
 following requirements apply to an organization certified under
 Section 162.001(d) that employs physicians:
 (1)  the organization shall ensure that each physician
 retains independent medical judgment in providing care to patients
 at the organization and may not be penalized for reasonably
 advocating for patient care;
 (2)  the organization shall provide a certain portion
 of medical services free of charge, or at a reduced fee commensurate
 with a patient's ability to pay;
 (3)  a physician employed by the organization shall
 participate in the provision of services under Subdivision (2);
 (4)  an organization may not include or enforce a
 noncompete clause in a physician employment contract or condition
 privileges on the continuation or termination of an employment
 contract; and
 (5)  a physician who has privileges at the organization
 and is employed by the hospital and a physician who is not employed
 by the hospital must be given equal consideration and treatment in
 the creation and execution of all medical staff bylaw provisions
 regardless of the physician's employer.
 Sec. 162.005.  FEES; ENFORCEMENT. (a) The board may charge
 a reasonable fee as necessary for the certification of an
 organization under Section 162.001(d) and for the investigation,
 review, and enforcement of the organization's compliance with this
 subchapter and Subchapter E, Chapter 311, Health and Safety Code.
 (b)  The board may adopt and impose fines and administrative
 remedies, including the revocation of certification under Section
 162.003, for a violation of this subchapter or Subchapter E,
 Chapter 311, Health and Safety Code.
 Sec. 162.006.  BIENNIAL COMPLIANCE STATEMENT. When an
 organization applies for certification, and every two years after
 that date, an organization seeking certification under Section
 162.001(d) shall provide to the board a compliance statement signed
 by the organization's chief executive officer attesting that the
 organization is in compliance with all requirements for
 certification and continued certification, including the
 requirements of this subchapter and Subchapter E, Chapter 311,
 Health and Safety Code.
 Sec. 162.007.  DOCUMENTS IN SUPPORT OF CERTIFICATION AND
 BIENNIAL COMPLIANCE STATEMENTS. (a) An organization shall submit
 to the board at the time application for certification under
 Section 162.001(d) is made a copy of the hospital's policies,
 bylaws, and medical staff bylaws that demonstrate compliance with
 the requirements of this subchapter and Subchapter E, Chapter 311,
 Health and Safety Code.
 (b)  An organization certified under Section 162.001(d)
 shall submit to the board as part of the organization's biennial
 compliance statement copies of any changes or amendments to the
 hospital's bylaws, policies, and medical staff bylaws that were
 submitted to the board after the organization's initial approved
 application for certification.
 SECTION 61. Section 1702.104(b), Occupations Code, is
 amended to read as follows:
 (b) For purposes of Subsection (a)(1), "obtaining or
 furnishing information" includes information obtained or furnished
 through the review and analysis of, and the investigation into the
 content of, computer-based data not available to the public.
 "Obtaining or furnishing information" does not include information
 obtained or furnished by an information technology professional who
 is an employee of a county and who is:
 (1)  in the course and scope of employment, installing
 or repairing computer equipment belonging to the county or is
 examining the cause for required repair; and
 (2)  not performing any other act that requires a
 license under this chapter.
 SECTION 62. Chapter 51, Property Code, is amended by adding
 Section 51.0022 to read as follows:
 Sec. 51.0022.  FORECLOSURE DATA COLLECTION. (a) In this
 section, "department" means the Texas Department of Housing and
 Community Affairs.
 (b)  A person filing a notice of sale of residential property
 under Section 51.002(b) must submit to the county clerk a completed
 form that provides the zip code for the property.
 (c)  On completion of a sale of real property, the trustee or
 sheriff shall submit to the county clerk a completed form that
 contains information on whether the property is residential and the
 zip code of the property.
 (d)  Not later than the 30th day after the date of receipt of
 a form under this section, the county clerk shall transmit the form
 to the department.
 (e)  The board of the department shall prescribe the forms
 required under this section. The forms may only request
 information on whether the property is residential and the zip code
 of the property.
 (f)  The department shall report the information received
 under this section quarterly to the legislature in a format
 established by the board of the department by rule.
 SECTION 63. Articles 20.011(a) and 20.02(b), Code of
 Criminal Procedure, as amended by this Act, and Article 20.151,
 Code of Criminal Procedure, as added by this Act, apply only to
 testimony before a grand jury that is impaneled on or after the
 effective date of this Act.
 SECTION 64. Article 27.18, Code of Criminal Procedure, as
 amended by this Act, applies to a plea of guilty or nolo contendere
 entered on or after the effective date of this Act, regardless of
 whether the offense with reference to which the plea is entered is
 committed before, on, or after that date.
 SECTION 65. Article 38.073, Code of Criminal Procedure, as
 amended by this Act, applies only to the testimony of an inmate
 witness that is taken on or after the effective date of this Act.
 SECTION 66. Notwithstanding Sections 2 and 3, Article
 49.25, Code of Criminal Procedure, as amended by this Act, a person
 serving as the chief medical examiner or a deputy medical examiner
 for a medical examiners district or county in this state on the
 effective date of this Act is not required to be board certified in
 anatomic and forensic pathology by the American Board of Pathology
 to continue to hold that position of chief medical examiner or
 deputy medical examiner for that district or county.
 SECTION 67. (a) Section 61.001(f), Government Code, as
 amended by this Act, applies only to a disbursement for the
 reimbursement for jury service expenses on or after the effective
 date of this Act.
 (b) The changes in law made by Sections 262.003, 262.023,
 271.024, and 363.156, Local Government Code, as amended by this
 Act, apply only to a purchase made or contract executed on or after
 the effective date of this Act. A purchase made or contract
 executed before the effective date of this Act is governed by the
 law in effect immediately before that date, and the former law is
 continued in effect for that purpose.
 (c) The board of the Texas Department of Housing and
 Community Affairs shall adopt the forms and rules required by
 Section 51.0022, Property Code, as added by this Act, not later than
 January 1, 2010.
 (d) The change in law made by Section 51.0022, Property
 Code, as added by this Act, applies only to a notice of sale filed on
 or after January 1, 2010. A notice of sale filed before January 1,
 2010, is governed by the law in effect immediately before that date,
 and the former law is continued in effect for that purpose.
 SECTION 68. The change in law made by Sections 250.003 and
 250.004, Local Government Code, is effective on or after January 1,
 2010.
 SECTION 69. All governmental acts and proceedings of a
 governmental body of a municipality or county under Subchapter A,
 Chapter 372, Local Government Code, as that subchapter existed
 before the effective date of this Act, to establish a public
 improvement district, designate improvements, levy assessments,
 and finance costs of improvements in response to a petition filed
 with the governing body that conformed to the requirements of
 Section 372.005, Local Government Code, as that section existed
 before the effective date of this Act, are validated and confirmed
 in all respects.
 SECTION 70. (a) The legislature validates and confirms all
 governmental acts and proceedings before the effective date of this
 Act of a district created under Subchapter C, Chapter 372, Local
 Government Code, as that chapter existed before the effective date
 of this Act, including acts of the district's board of directors.
 (b) Subsection (a) of this section does not apply to a
 matter that on the effective date of this Act:
 (1) is involved in litigation, if the litigation
 ultimately results in the matter being held invalid by a final court
 judgment; or
 (2) has been held invalid by a final court judgment.
 SECTION 71. (a) The sections of this Act amending
 Subchapter C, Chapter 372, Local Government Code, as amended by
 this Act, take effect only if the Act of the 81st Legislature,
 Regular Session, 2009, relating to nonsubstantive additions to and
 corrections in enacted codes does not become law. If the Act of the
 81st Legislature, Regular Session, 2009, relating to
 nonsubstantive additions to and corrections in enacted codes
 becomes law, the sections of this Act amending Subchapter C,
 Chapter 372, Local Government Code, as amended by this Act, have no
 effect.
 (b) The sections of this Act amending Chapter 382, Local
 Government Code, take effect only if the Act of the 81st
 Legislature, Regular Session, 2009, relating to nonsubstantive
 additions to and corrections in enacted codes becomes law. If the
 Act of the 81st Legislature, Regular Session, 2009, relating to
 nonsubstantive additions to and corrections in enacted codes does
 not become law, the sections of this Act amending Chapter 382, Local
 Government Code, have no effect.
 SECTION 72. Section 13, Article 49.25, Code of Criminal
 Procedure, is repealed.
 SECTION 73. Section 387.010(d), Local Government Code, is
 repealed.
 SECTION 74. This Act takes effect September 1, 2009.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I certify that H.B. No. 3485 was passed by the House on May
 12, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not
 voting; and that the House concurred in Senate amendments to H.B.
 No. 3485 on May 29, 2009, by the following vote: Yeas 142, Nays 2,
 1 present, not voting; and that the House adopted H.C.R. No. 282
 authorizing certain corrections in H.B. No. 3485 on June 1, 2009, by
 the following vote: Yeas 145, Nays 0, 1 present, not voting.
 ______________________________
 Chief Clerk of the House
 I certify that H.B. No. 3485 was passed by the Senate, with
 amendments, on May 26, 2009, by the following vote: Yeas 27, Nays
 4; and that the Senate adopted H.C.R. No. 282 authorizing certain
 corrections in H.B. No. 3485 on June 1, 2009, by the following
 vote: Yeas 31, Nays 0.
 ______________________________
 Secretary of the Senate
 APPROVED: __________________
 Date
 __________________
 Governor