84R8615 CJC-F By: Guerra, Martinez, Longoria, Muñoz, Jr., H.B. No. 1596 Canales A BILL TO BE ENTITLED AN ACT relating to the Hidalgo County Healthcare District; decreasing the possible maximum rate of a tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Chapter 1122, Special District Local Laws Code, is amended to read as follows: CHAPTER 1122. HIDALGO COUNTY HEALTHCARE [HOSPITAL] DISTRICT SECTION 2. Section 1122.001(3), Special District Local Laws Code, is amended to read as follows: (3) "District" means the Hidalgo County Healthcare [Hospital] District. SECTION 3. Section 1122.002, Special District Local Laws Code, is amended to read as follows: Sec. 1122.002. DISTRICT AUTHORIZATION. The Hidalgo County Healthcare [Hospital] District may be created and, if created, operates and is financed as a hospital district as provided by Section 9, Article IX, Texas Constitution, and by this chapter. SECTION 4. Sections 1122.021(b), (f), and (g), Special District Local Laws Code, are amended to read as follows: (b) The Hidalgo County Commissioners Court shall order an election for the registered voters of Hidalgo County on the question of creation of the Hidalgo County Healthcare [Hospital] District if the commissioners court receives a petition requesting an election that is signed by at least 50 registered voters who are residents of Hidalgo County. (f) The ballot for an election under this section must be printed to permit voting for or against the proposition: "The creation of the Hidalgo County Healthcare [Hospital] District, providing for the imposition of an ad valorem tax at a rate not to exceed 25 [75] cents on each $100 valuation on all taxable property in the district. The initial ad valorem tax shall be imposed at the rate of ______ (insert amount) cents on the $100 valuation of all taxable property in the district. District funds shall be used for district purposes, including improving health care services for residents of Hidalgo County, supporting the School of Medicine at The University of Texas Rio Grande Valley, training physicians, nurses, and other health care professionals, obtaining federal or state funds for health care services, and providing community health clinics, primary care services, behavioral and mental health care services, and prevention and wellness programs." (g) The Hidalgo County Commissioners Court shall find that the Hidalgo County Healthcare [Hospital] District is created if a majority of the voters voting in the election held under this section favor the creation of the district. SECTION 5. Section 1122.051, Special District Local Laws Code, is amended to read as follows: Sec. 1122.051. DIRECTORS; TERM. (a) If the creation of the district is approved at the election held under Section 1122.021, the district shall be governed by a [nine-member] board of nine directors, appointed as follows: (1) the county judge of Hidalgo County shall appoint one director; (2) each county commissioner serving on the Hidalgo County Commissioners Court shall appoint one director [four directors]; and (3) [(2)] the governing bodies [body] of the four most populous municipalities located [municipality with the largest population] in Hidalgo County shall each appoint one director [two directors; [(3) the governing body of the municipality with the second largest population in Hidalgo County shall appoint one director; [(4) the governing body of a municipality with the third largest population in Hidalgo County shall appoint one director; and [(5) the governing body of a municipality with the fourth largest population in Hidalgo County shall appoint one director]. (b) Directors serve staggered three-year [four-year] terms, with three [as near as possible to one-fourth of the] directors' terms expiring each year. The [terms of the] initial directors appointed under this section shall draw lots as follows to determine [are as follows]: (1) for the directors appointed by the governing bodies of the municipalities in Hidalgo County described by Subsection (a), [shall draw lots to determine] which director serves [two directors serve] a one-year term, which two directors serve [director serves] a two-year term, and which director serves a three-year term[, and which director serves a four-year term]; and (2) for the directors appointed by the Hidalgo County Commissioners Court, including the director appointed by the county judge of Hidalgo County, [shall draw lots to determine] which two directors serve [director serves] a one-year term, which director serves a two-year term, and which two directors serve [director serves] a three-year term[, and which director serves a four-year term]. (c) On expiration of the initial directors' terms, successor directors shall be appointed for a three-year term by the person or governing body that appointed the initial director. (d) A director may not serve more than three [two] consecutive three-year [four-year] terms. SECTION 6. Section 1122.052, Special District Local Laws Code, is amended to read as follows: Sec. 1122.052. QUALIFICATIONS. The Hidalgo County Commissioners Court shall by order provide for the qualifications of appointees to the board. The qualifications must provide that a person is not eligible for appointment to the board if the person is: (1) an employee of Hidalgo County; (2) an employee of a municipality located in the district; (3) a district employee; or (4) [(3)] related within the third degree of consanguinity or affinity, as determined under Subchapter B, Chapter 573, Government Code, to a member of the Commissioners Court of Hidalgo County, to a member of the governing body of a municipality located in the district, [commissioners court] or to a person described by Subdivision (1), [or] (2), or (3). SECTION 7. Section 1122.056, Special District Local Laws Code, is amended to read as follows: Sec. 1122.056. BOARD VACANCY. A [If a] vacancy [occurs] in the office of director[, the remaining directors] shall be filled [appoint a director] for the remainder of the unexpired term by appointment by the person or governing body that appointed the vacating director. SECTION 8. Sections 1122.101, 1122.102, 1122.103, and 1122.106, Special District Local Laws Code, are amended to read as follows: Sec. 1122.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating hospital facilities and providing medical and hospital care for the district's indigent [needy] residents as required under this chapter, another applicable statute, and the constitution of this state. Sec. 1122.102. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the district [hospital system] and the money and resources of the district. Sec. 1122.103. RULES. The board may adopt rules governing: (1) the operation of the district and any district hospital [and hospital system]; and (2) the duties, functions, and responsibilities of district staff and employees. Sec. 1122.106. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine: (1) the type, number, and location of buildings required to maintain an adequate health care district [hospital system]; and (2) the type of equipment necessary to provide medical [for hospital] care in the district. (b) The board may: (1) acquire property, facilities, and equipment for use by the district [for use in the hospital system]; (2) mortgage or pledge the property, facilities, or equipment as security for payment of the purchase price; (3) sell or otherwise dispose of property, facilities, or equipment for the district; or (4) lease hospital facilities for the district. SECTION 9. Section 1122.151(a), Special District Local Laws Code, is amended to read as follows: (a) The board and the district administrator shall jointly prepare a proposed annual budget for the district. SECTION 10. Sections 1122.152(d) and (e), Special District Local Laws Code, are amended to read as follows: (d) At the conclusion of the hearing, the board shall adopt a budget by acting on the proposed budget [proposed by the district administrator]. The board may make a change in the proposed budget that the board determines to be in the interests of the taxpayers. (e) The budget is effective only after: (1) adoption by the board; and (2) approval by the Hidalgo County Commissioners Court. SECTION 11. Section 1122.153, Special District Local Laws Code, is amended to read as follows: Sec. 1122.153. AMENDMENT OF BUDGET. After the budget is adopted, the budget may be amended if the proposed amendment is: (1) adopted by the board; and (2) approved by the Hidalgo County Commissioners Court [on the board's approval]. SECTION 12. Section 1122.201, Special District Local Laws Code, is amended to read as follows: Sec. 1122.201. GENERAL OBLIGATION BONDS. If authorized by an election, the board may issue and sell general obligation bonds in the name and on the faith and credit of the district to: (1) purchase, construct, acquire, repair, or renovate buildings or improvements; (2) equip buildings or improvements for district [hospital] purposes; or (3) acquire and operate a mobile emergency medical service. SECTION 13. Sections 1122.204(a) and (b), Special District Local Laws Code, are amended to read as follows: (a) The board may issue revenue bonds to: (1) acquire, purchase, construct, repair, renovate, or equip buildings or improvements for district [hospital] purposes; (2) acquire sites to be used for district [hospital] purposes; or (3) acquire and operate a mobile emergency medical service to assist the district in carrying out its [hospital] purposes. (b) The bonds must be payable from and secured by a pledge of all or part of the revenues derived from the operation of the district [district's hospital system]. SECTION 14. Section 1122.251(a), Special District Local Laws Code, is amended to read as follows: (a) The board shall impose a tax on all property in the district subject to [hospital district] taxation by the district. SECTION 15. The heading to Section 1122.252, Special District Local Laws Code, is amended to read as follows: Sec. 1122.252. LIMITATION ON TAX RATE. SECTION 16. Section 1122.252(a), Special District Local Laws Code, is amended to read as follows: (a) Unless a higher rate is approved at an election held as provided by Section 1122.2521, the [The] tax rate on all taxable property in the district for all purposes may not exceed 25 [75] cents on each $100 valuation of the property according to the most recent certified tax appraisal roll of the district. SECTION 17. Subchapter F, Chapter 1122, Special District Local Laws Code, is amended by adding Sections 1122.2521, 1122.2522, 1122.2523, and 1122.2524 to read as follows: Sec. 1122.2521. ELECTION REQUIRED TO INCREASE TAX RATE. (a) The board may order an election to increase the district's maximum ad valorem tax rate to a rate greater than the maximum rate provided by Section 1122.252. (b) The ballot for an election held under this section must be printed to permit voting for or against the proposition: "The imposition of taxes by the Hidalgo County Healthcare District for district purposes at a rate not to exceed ____ (insert amount) cents on the $100 valuation of all property in the district." (c) The board may impose taxes at the rate authorized by the proposition if a majority of voters voting at an election held under this section favor the proposition. (d) This section does not authorize the board to impose taxes at a rate that exceeds the maximum ad valorem tax rate authorized by Section 9, Article IX, Texas Constitution. (e) Section 41.001(a), Election Code, does not apply to an election ordered under this section. Sec. 1122.2522. ROLLBACK TAX RATE PROVISIONS APPLICABLE. (a) If in any year the board adopts a tax rate that exceeds the rollback tax rate calculated as provided by Chapter 26, Tax Code, the qualified voters of the district by petition may require that an election be held to determine whether or not to reduce the tax rate adopted by the board for that year to the rollback tax rate. (b) To the extent a conflict exists between this section and a provision of the Tax Code, the provision of the Tax Code prevails. Sec. 1122.2523. RESIDENCE HOMESTEAD TAX PROVISIONS APPLICABLE. (a) The board shall ensure that all district residents receive all ad valorem tax exemptions and limitations that the residents are entitled to receive under the constitution and the Tax Code, including the exemption of the total appraised value of the residence homestead of a fully disabled veteran or the disabled veteran's surviving spouse required by Section 11.131, Tax Code. (b) The board shall adopt an exemption from ad valorem taxation by the district of a portion of the appraised value of a district resident's residence homestead as provided by Section 11.13(d), Tax Code. Unless the board specifies a larger amount as provided by Section 11.13(e), Tax Code, the amount of the exemption required to be adopted by the board under this subsection is $3,000 of the appraised value of a district resident's residence homestead. Section 11.13(f), Tax Code, applies to an exemption adopted by the board under this subsection. Sec. 1122.2524. PROHIBITION ON PARTICIPATION IN TAX INCREMENT FUND. The district may not enter into an agreement to participate in a reinvestment zone designated by a municipality or a county under Chapter 311, Tax Code. SECTION 18. Section 1122.303, Special District Local Laws Code, is amended to read as follows: Sec. 1122.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Hidalgo County Healthcare [Hospital] District." SECTION 19. On the creation of the Hidalgo County Healthcare District, or as soon as practicable after the district is created, the Commissioners Court of Hidalgo County shall transfer to the district all operating funds, and any funds held in reserve for operating expenses, that have been budgeted by the county to pay the costs associated with administering a county program to provide to residents of the district indigent health care assistance under Chapter 61, Health and Safety Code, during the fiscal year in which the district is created. SECTION 20. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.