By: Coleman (Senate Sponsor - West) H.B. No. 2316 (In the Senate - Received from the House May 12, 2011; May 12, 2011, read first time and referred to Committee on Intergovernmental Relations; May 21, 2011, reported adversely, with favorable Committee Substitute by the following vote: Yeas 3, Nays 0; May 21, 2011, sent to printer.) COMMITTEE SUBSTITUTE FOR H.B. No. 2316 By: Nichols A BILL TO BE ENTITLED AN ACT relating to county powers, duties, and services, including the powers and duties of certain districts, and the authorization of certain health care programs and studies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Article 26.13, Code of Criminal Procedure, is amended by adding Subsection (j) to read as follows: (j) A person who is incarcerated in a facility operated by or under contract with the Texas Department of Criminal Justice may submit a plea of guilty or plea of nolo contendere regarding a misdemeanor charge in writing, transmitted by mail, facsimile, or other means. Before accepting a plea under this subsection, the court shall make the admonitions required by this article to the defendant in writing as provided by Subsection (d). SECTION 2. 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 3. Section 552.116(a), Government Code, is amended to read as follows: (a) An audit working paper of an audit of the state auditor or the auditor of a state agency, an institution of higher education as defined by Section 61.003, Education Code, a county, a municipality, a school district, a hospital district, or a joint board operating under Section 22.074, Transportation Code, including any audit relating to the criminal history background check of a public school employee, is excepted from the requirements of Section 552.021. If information in an audit working paper is also maintained in another record, that other record is not excepted from the requirements of Section 552.021 by this section. SECTION 4. Section 61.002(5), Health and Safety Code, is amended to read as follows: (5) "General revenue levy" means: (A) the property taxes imposed by a county that are not dedicated to: (i) the construction and maintenance of farm-to-market roads under Article VIII, Section 1-a, Texas Constitution; (ii) [or to] flood control under Article VIII, Section 1-a, [of the] Texas Constitution; (iii) [or that are not dedicated to] the further maintenance of the public roads under Article VIII, Section 9, [of the] Texas Constitution; or (iv) the payment of principal or interest on county debt; and (B) the sales and use tax revenue to be received by the county during the calendar year in which the state fiscal year begins under Chapter 323, Tax Code, as determined under Section 26.041(d), Tax Code. SECTION 5. 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 6. Sections 375.003(3) and (4), Local Government Code, are amended to read as follows: (3) "Commission" means the Texas Commission on Environmental Quality [Natural Resource Conservation Commission]. (4) "Disadvantaged business" means: (A) a corporation formed for the purpose of making a profit and at least 51 percent of all classes of the shares of stock or other equitable securities of which are owned by one or more persons who are socially disadvantaged because of their identification as members of certain groups that have suffered the effects of discriminatory practices or similar insidious circumstances over which they have no control, including black Americans, Hispanic Americans, women, Asian Pacific Americans, and American Indians; (B) a sole proprietorship formed for the purpose of making a profit that is owned, operated, and controlled exclusively by one or more persons described by Paragraph (A); (C) a partnership that is formed for the purpose of making a profit, in which 51 percent of the assets and interest in the partnership is owned by one or more persons described by Paragraph (A), and in which minority or women partners have a proportionate interest in the control, operation, and management of the partnership affairs; (D) a joint venture between minority and women's group members formed for the purpose of making a profit and the minority participation in which is based on the sharing of real economic interest, including equally proportionate control over management, interest in capital, and interest earnings, other than a joint venture in which majority group members own or control debt securities, leasehold interest, management contracts, or other interests; [or] (E) a supplier contract between persons described in Paragraph (A) and a prime contractor in which the disadvantaged business is directly involved for the manufacture or distribution of the supplies or materials or otherwise for warehousing and shipping the supplies; or (F) a person certified as a disadvantaged business by: (i) this state; (ii) a political subdivision of this state; or (iii) a regional planning commission, council of governments, or similar regional planning agency created under Chapter 391. SECTION 7. Section 375.022(c), Local Government Code, is amended to read as follows: (c) The petition must: (1) describe the boundaries of the proposed district: (A) by metes and bounds; (B) by verifiable landmarks, including a road, creek, or railroad line; or (C)[,] if there is a recorded map or plat and survey of the area, by lot and block number; (2) state the specific purposes for which the district will be created; (3) state the general nature of the work, projects, or services proposed to be provided, the necessity for those services, and the costs as estimated by the persons filing the petition; (4) include a name of the district, which must be generally descriptive of the location of the district, followed by "Management District" or "Improvement District"; (5) include a proposed list of initial directors that includes the directors' experience and initial term of service; and (6) include a resolution of the governing body of the municipality in support of the creation of the district. SECTION 8. Section 375.043, Local Government Code, is amended to read as follows: Sec. 375.043. ANNEXATION. A district may annex land as provided by Section 49.301 and Chapter 54, Water Code, subject to the approval of the governing body of the municipality. SECTION 9. Section 375.044(b), Local Government Code, is amended to read as follows: (b) The board shall call a hearing on the exclusion of land or other property from the district if a signed petition evidencing the consent of the owners of a majority of the acreage in the district, according to the most recent certified tax roll of the county, is filed [landowner or property owner in the district files] with the secretary of the board [a written petition] requesting the hearing before the issuance of bonds. SECTION 10. Section 375.061, Local Government Code, is amended to read as follows: Sec. 375.061. NUMBER OF DIRECTORS; TERMS. A district is governed by a board of at least five [nine] but not more than 30 directors who serve staggered four-year terms. SECTION 11. Section 375.071, Local Government Code, is amended to read as follows: Sec. 375.071. QUORUM. One-half of the serving directors constitutes a quorum, and a concurrence of a majority of a quorum of directors is required for any official action of the district. The written consent of at least two-thirds of the directors is required to authorize the levy of assessments, the levy of taxes, the imposition of impact fees, or the issuance of bonds. SECTION 12. Section 375.091, Local Government Code, is amended to read as follows: Sec. 375.091. GENERAL POWERS OF DISTRICT. [(a)] A district has the rights, powers, privileges, authority, and functions conferred by the general law of this state applicable to conservation and reclamation districts created under Article XVI, Section 59, of the Texas Constitution, including those conferred by Chapter 54, Water Code. [(b) The district may contract and manage its affairs and funds for any corporate purpose in accordance with Chapter 54, Water Code. [(c) The district has all the rights, powers, privileges, authority, and functions of road districts and road utility districts created pursuant to Article III, Section 52, of the Texas Constitution, including the power to levy ad valorem taxes for the construction, maintenance, and operation of macadamized, graveled, or paved roads and turnpikes, or in aid thereof. This power includes the power to levy ad valorem taxes to provide for mass transit systems in the manner and subject to the limitations provided in Article III, Section 52, and Article III, Section 52(a), of the Texas Constitution. [(d) A district has those powers conferred by Chapters 365 and 441, Transportation Code, and the additional rights, privileges, authority, and functions contained in those chapters.] SECTION 13. Subchapter E, Chapter 375, Local Government Code, is amended by adding Sections 375.0921 and 375.0922 to read as follows: Sec. 375.0921. AUTHORITY FOR ROAD PROJECTS. (a) Under Section 52, Article III, Texas Constitution, a district may design, acquire, construct, finance, issue bonds for, improve, operate, maintain, and convey to this state, a county, or a municipality for operation and maintenance macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads. (b) The district may impose ad valorem taxes to provide for mass transit systems in the manner and subject to the limitations provided by Section 52, Article III, and Section 52-a, Article III, Texas Constitution. Sec. 375.0922. ROAD STANDARDS AND REQUIREMENTS. (a) A road project must meet all applicable construction standards, zoning and subdivision requirements, and regulations of each municipality in whose corporate limits or extraterritorial jurisdiction the road project is located. (b) If a road project is not located in the corporate limits or extraterritorial jurisdiction of a municipality, the road project must meet all applicable construction standards, subdivision requirements, and regulations of each county in which the road project is located. (c) If the state will maintain and operate the road, the Texas Transportation Commission must approve the plans and specifications of the road project. SECTION 14. Section 375.097(a), Local Government Code, is amended to read as follows: (a) The board may appoint a hearings examiner to conduct any hearing called by the board, including a hearing required by Chapter 395. The hearings examiner may be an employee or contractor of the district, or a member of the district's board. SECTION 15. Subchapter E, Chapter 375, Local Government Code, is amended by adding Section 375.098 to read as follows: Sec. 375.098. DISTRICT ACT OR PROCEEDING PRESUMED VALID. (a) A governmental act or proceeding of a district is conclusively presumed, as of the date it occurred, valid and to have occurred in accordance with all applicable statutes and rules if: (1) the third anniversary of the effective date of the act or proceeding has expired; and (2) a lawsuit to annul or invalidate the act or proceeding has not been filed on or before that third anniversary. (b) This section does not apply to: (1) an act or proceeding that was void at the time it occurred; (2) an act or proceeding that, under a statute of this state or the United States, was a misdemeanor or felony at the time the act or proceeding occurred; (3) a rule that, at the time it was passed, was preempted by a statute of this state or the United States, including Section 1.06 or 109.57, Alcoholic Beverage Code; or (4) a matter that on the effective date of this section: (A) is involved in litigation if the litigation ultimately results in the matter being held invalid by a final judgment of a court; or (B) has been held invalid by a final judgment of a court. SECTION 16. Section 375.112(a)(1), Local Government Code, is amended to read as follows (1) landscaping, lighting, banners, and signs; streets and sidewalks; pedestrian skywalks, crosswalks, and tunnels; seawalls; marinas; drainage and navigation improvements; pedestrian malls; solid waste, water, sewer and power facilities, including electrical, gas, steam, cogeneration, and chilled water facilities; parks, plazas, lakes, rivers, bayous, ponds, and recreation and scenic areas; historic areas; fountains; works or art; off-street parking facilities, bus terminals, heliports, and mass transit systems; theatres, studios, exhibition halls, production facilities and ancillary facilities in support of the foregoing; and the cost of any demolition in connection with providing any of the improvement projects; SECTION 17. Section 375.114, Local Government Code, is amended to read as follows: Sec. 375.114. PETITION REQUIRED. The board may not finance services and improvement projects under this chapter unless a written petition has been filed with the board requesting those improvements or services signed by: (1) the owners of 50 percent or more of the assessed value of the property in the district subject to assessment, according to [as determined from] the most recent certified county property tax rolls; or (2) the owners of 50 percent or more of the surface area of the district, excluding roads, streets, highways, and utility rights-of-way, other public areas, and any other property exempt from assessment under Section 375.162 or 375.163, according to [as determined from] the most recent certified county property tax rolls. SECTION 18. Section 375.202(e), Local Government Code, is amended to read as follows: (e) If provided by the bond order or resolution, the proceeds from the sale of bonds may be used to pay interest on the bonds during and after the period of the acquisition or construction of any improvement project to be provided through the issuance of the bonds, to pay administrative and operation expenses to create a reserve fund for the payment of the principal of and interest on the bonds, to pay costs associated with the issuance of the bonds, and to create any other funds. The proceeds of the bonds may be placed on time deposit or invested, until needed, in securities in the manner provided by the bond order or resolution. SECTION 19. Section 375.205(a), Local Government Code, is amended to read as follows: (a) The district shall submit bonds and the appropriate proceedings authorizing their issuance to the attorney general for examination. This subsection applies only to bonds that are public securities, as that term is defined by Section 1202.001, Government Code. SECTION 20. Subchapter J, Chapter 375, Local Government Code, is amended by adding Section 375.209 to read as follows: Sec. 375.209. TAXES FOR BONDS. At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board shall provide for the annual imposition of a continuing direct annual ad valorem tax, without limit as to rate or amount, while all or part of the bonds are outstanding as required and in the manner provided by Sections 54.601 and 54.602, Water Code. SECTION 21. Section 375.221, Local Government Code, is amended to read as follows: Sec. 375.221. APPLICABILITY OF WATER DISTRICTS LAW TO COMPETITIVE BIDDING ON CERTAIN [PUBLIC WORKS] CONTRACTS. (a) Except as provided by Subsection (b) of this section, Subchapter I, Chapter 49, Water Code, applies to a district contract for construction work, equipment, materials, or machinery. (b) [A contract, other than a contract for services, for more than $50,000 for the construction of improvements or the purchase of material, machinery, equipment, supplies, and other property, except real property, may be entered into only after competitive bids. Notice of the contract for the purpose of soliciting bids shall be published once a week for two consecutive weeks in a newspaper with general circulation in the area in which the district is located. The first publication of notice must be not later than the 14th day before the date set for receiving bids.] The board may adopt rules governing receipt of bids and the award of the contract and providing for the waiver of the competitive bid requirement if: (1) there is an emergency; (2) the needed materials are available from only one source; (3) in a procurement requiring design by the supplier competitive bidding would not be appropriate and competitive negotiation, with proposals solicited from an adequate number of qualified sources, would permit reasonable competition consistent with the nature and requirements of the procurement; or (4) after solicitation, it is ascertained that there will be only one bidder. [(b) If a proposed contract for works, plant improvements, facilities other than land, or the purchase of equipment, appliances, materials, or supplies is for an estimated amount of more than $50,000 or for a duration of more than two years, competitive sealed proposals shall be asked from at least three persons.] SECTION 22. Section 375.263(a), Local Government Code, is amended to read as follows: (a) The [Except as limited by Section 375.264, the] governing body of a municipality in which a district is wholly located, by a vote of not less than two-thirds of its membership, may adopt an ordinance dissolving the district. SECTION 23. Section 375.264, Local Government Code, is amended to read as follows: Sec. 375.264. LIMITATION ON DISSOLUTION BY BOARD. A district may not be dissolved by its board [or by a municipality] if the district has any outstanding bonded indebtedness until that bonded indebtedness has been repaid or defeased in accordance with the order or resolution authorizing the issuance of the bonds. SECTION 24. Subchapter N, Chapter 375, Local Government Code, is amended by adding Section 375.282 to read as follows: Sec. 375.282. STRATEGIC PARTNERSHIP AGREEMENT. A district with territory in the extraterritorial jurisdiction of a municipality may negotiate and enter into a written strategic partnership with the municipality under Section 43.0751. SECTION 25. 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 1.5 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 225,000 [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. SECTION 26. 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) This section applies only to a district created by a county described by Section 382.002(1). (b) A district may annex or exclude land from the district as provided by Subchapter J, Chapter 49, Water Code. (c) 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 whose extraterritorial jurisdiction the district is located by a resolution adopted by the municipality's governing body. SECTION 27. Sections 382.155(b) and (d), Local Government Code, are amended to read as follows: (b) If authorized by a county, a district shall impose a hotel occupancy tax in the same manner as provided [by Chapter 383, Local Government Code, and] Section 352.107, Tax Code, [except that a hotel occupancy tax: (1) may be used for any purpose authorized in this chapter; and (2) is authorized by the county to be imposed by the district. (d) A hotel occupancy tax imposed by a district in a county described by Section 382.002(1) may be used: (1) for a purpose described by Chapter 352, Tax Code; or (2) to encourage the development or operation of a hotel in the district, including an economic development program for a grant, loan, service or improvement to a hotel in the district [may not be imposed on the occupants of a hotel unless the owner of the hotel agrees to the imposition of the hotel occupancy taxes under this chapter. After the owner agrees, the agreement may not be revoked by the owner of the hotel or any subsequent owner of the hotel. After an agreement under this section, the district may impose hotel occupancy taxes as provided by this chapter.] SECTION 28. Subchapter D, Chapter 382, Local Government Code, is amended by adding Section 382.1555 to read as follows: Sec. 382.1555. USE OF HOTEL OCCUPANCY TAX FOR ANY PURPOSE. (a) If authorized by a county, a district may impose a hotel occupancy tax under Section 382.155 and use the revenue from the tax for any purpose authorized by this chapter if the owner of the hotel agrees to the imposition of the tax. (b) After the owner agrees, the agreement may not be revoked by the owner of the hotel or any subsequent owner of the hotel. (c) To the extent of a conflict with Section 382.155(d), this section controls. SECTION 29. 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. (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, 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 30. 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 31. 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 32. Section 387.007, Local Government Code, is amended by amending Subsection (b) 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. SECTION 33. 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 34. 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 35. 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 36. Section 3815.051(a), Special District Local Laws Code, is amended to read as follows: (a) The district is governed by a board of 17 [21] directors who serve staggered terms of four years, with eight [10] directors' terms expiring June 1 of an odd-numbered year and nine [11] directors' terms expiring June 1 of the following odd-numbered year. SECTION 37. Subchapter B, Chapter 3815, Special District Local Laws Code, is amended by adding Section 3815.055 to read as follows: Sec. 3815.055. INTERIM DIRECTORS. (a) The board serving on September 1, 2011, is abolished and is replaced by an interim board consisting of the following directors: Pos. No. Name of Director Pos. No. Name of Director Pos. No. Name of Director 1 Alan D. Bergeron 1 Alan D. Bergeron 1 Alan D. Bergeron 2 Sharone Mayberry 2 Sharone Mayberry 2 Sharone Mayberry 3 James Donatto Sr. 3 James Donatto Sr. 3 James Donatto Sr. 4 Hexser J. Holliday II 4 Hexser J. Holliday II 4 Hexser J. Holliday II 5 Osama Abdullatif 5 Osama Abdullatif 5 Osama Abdullatif 6 Skye Thompson 6 Skye Thompson 6 Skye Thompson 7 Asmara Tekle Johnson 7 Asmara Tekle Johnson 7 Asmara Tekle Johnson 8 Jaa St. Julien 8 Jaa St. Julien 8 Jaa St. Julien 9 Jimmy Arnold 9 Jimmy Arnold 9 Jimmy Arnold 10 Cyeoni Miles 10 Cyeoni Miles 10 Cyeoni Miles 11 Zinetta A. Burney 11 Zinetta A. Burney 11 Zinetta A. Burney 12 Chris Hageney 12 Chris Hageney 12 Chris Hageney 13 Teddy A. McDavid 13 Teddy A. McDavid 13 Teddy A. McDavid 14 Brian G. Smith 14 Brian G. Smith 14 Brian G. Smith 15 Robert S. Muhammad 15 Robert S. Muhammad 15 Robert S. Muhammad 16 Robert C. Combre 16 Robert C. Combre 16 Robert C. Combre 17 Janice M. Sibley-Reid 17 Janice M. Sibley-Reid 17 Janice M. Sibley-Reid (b) The terms of the interim directors expire June 1, 2015. (c) The mayor and the members of the governing body of the City of Houston shall appoint successor directors not later than June 1, 2015, and shall stagger the terms of the directors, with eight of the directors' terms expiring June 1, 2017, and the remaining directors' terms expiring June 1, 2019. (d) This section expires September 1, 2015. SECTION 38. (a) The Health and Human Services Commission shall study the health care delivery systems used by health care providers who are not physicians. (b) The study shall examine using health care providers who are not physicians to perform basic emergency and non-emergency health care services and preventive health care services within the scope of the health care providers' practice and license, including evaluating: (1) the potential cost savings of health care providers who are not physicians performing these health care services; (2) any projected increase in access to health care services for underserved communities; and (3) any projected impact on the quality of care for persons treated by health care providers who are not physicians. (c) The study conducted under this section must specifically address the potential cost savings and other foreseeable consequences of expanding the authority of advanced practice nurses to prescribe medication to patients. (d) In conducting the study under this section, the commission shall consult with: (1) the Texas Medical Board; (2) the Texas Board of Nursing; (3) the Texas Physician Assistant Board; (4) the Midwifery Board; (5) the Texas State Board of Podiatric Medical Examiners; (6) the Texas Board of Chiropractic Examiners; (7) the Texas Optometry Board; and (8) any other regulatory body or professional association that the department determines would be beneficial to consult for the purposes of this study. (e) The commission shall submit a report to the legislature on the results of the study conducted under this section not later than December 31, 2012. The report shall include any recommendations for potential legislation relating to health care providers who are not physicians. (f) This section expires September 1, 2013. SECTION 39. (a) An interim committee on health care professionals is created to conduct a study of: (1) the value of health care professionals in cost containment and access to health care; and (2) potential health care delivery systems that include multiple types of providers. (b) The committee is composed of five members as follows: (1) two members appointed by the lieutenant governor, one of whom must be a senator and one of whom must be a member of the public; and (2) three members appointed by the speaker of the house of representatives, two of whom must be representatives and one of whom must be a member of the public. (c) The committee shall select a presiding officer and convene at the call of the presiding officer. (d) The committee has all other powers and duties provided to a special or select committee by the rules of the senate and house of representatives, by Subchapter B, Chapter 301, Government Code, and by policies of the senate and house committees on administration. (e) From the contingent expense fund of the senate and the contingent expense fund of the house of representatives equally, the members of the committee are entitled to reimbursement for expenses incurred in carrying out this section in accordance with the rules of the senate and house of representatives and the policies of the senate and house committees on administration. (f) Not later than December 1, 2012, the committee shall report the committee's findings and recommendations to the lieutenant governor, the speaker of the house of representatives, and the governor. The committee shall include in its recommendations specific statutory and rule amendments that appear necessary from the results of the committee's study conducted under Subsection (a) of this section. (g) Not later than November 1, 2011, the lieutenant governor and the speaker of the house of representatives shall appoint the members of the interim committee created under this section. (h) This section expires September 1, 2013. SECTION 40. (a) The legislature validates and confirms all governmental acts and proceedings before the effective date of this Act of a district created under Chapter 382, Local Government Code, transferred from Subchapter C, Chapter 372, Local Government Code, by Chapter 87 (S.B. 1969), Acts of the 81st Legislature, Regular Session, 2009, before the effective date of this Act, including acts of the district's board of directors. (b) Subsection (a) 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 41. (a) Article 26.13(j), Code of Criminal Procedure, as added by this Act, applies only to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is governed by the law in effect at the time the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense occurred before that date. (b) The change in law made by Section 552.116, Government Code, as amended by this Act, applies to an audit working paper created before, on, or after the effective date of this Act. (c) The change in law made by Section 363.156, Local Government Code, as amended by this Act, applies 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. (d) The change in law made by this Act to Section 375.221, Local Government Code, applies only to a contract awarded on or after January 1, 2012. A contract awarded before January 1, 2012, is governed by the law in effect on the date the contract was awarded, and that law is continued in effect for that purpose. SECTION 42. Sections 375.021, 375.027, 375.064(f), and 387.010(d), Local Government Code, are repealed. SECTION 43. This Act takes effect September 1, 2011. * * * * * Pos. No. Name of Director 1 Alan D. Bergeron 2 Sharone Mayberry 3 James Donatto Sr. 4 Hexser J. Holliday II 5 Osama Abdullatif 6 Skye Thompson 7 Asmara Tekle Johnson 8 Jaa St. Julien 9 Jimmy Arnold 10 Cyeoni Miles 11 Zinetta A. Burney 12 Chris Hageney 13 Teddy A. McDavid 14 Brian G. Smith 15 Robert S. Muhammad 16 Robert C. Combre 17 Janice M. Sibley-Reid