S.B. No. 2034
AN ACT
relating to the creation of the Cameron County Healthcare District;
granting the authority to impose a tax and issue bonds; granting the
power of eminent domain.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 3, Special District Local Laws
Code, is amended by adding Chapter 1121 to read as follows:
CHAPTER 1121. CAMERON COUNTY HEALTHCARE DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1121.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "Director" means a member of the board.
(3) "District" means the Cameron County Healthcare
District.
Sec. 1121.002. DISTRICT AUTHORIZATION. The Cameron County
Healthcare 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.
Sec. 1121.003. ESSENTIAL PUBLIC FUNCTION. The district is
a public entity performing an essential public function.
Sec. 1121.004. DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Cameron County.
Sec. 1121.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The state may not be obligated for the support or
maintenance of the district.
Sec. 1121.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE.
The legislature may not make a direct appropriation for the
construction, maintenance, or improvement of a district facility.
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 1121.021. CREATION ELECTION; ORDERING ELECTION.
(a) The district may be created and a tax may be authorized only if
the creation and the tax are approved by a majority of the
registered voters of the territory of the proposed district voting
at an election called and held for that purpose.
(b) The Cameron County Commissioners Court shall order an
election for the registered voters of Cameron County on the
question of creation of the Cameron County Healthcare District if
the commissioners court receives a petition requesting an election
that is signed by at least 100 registered voters who are residents
of Cameron County.
(c) The order calling an election under this section must
state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(d) Section 41.001(a), Election Code, does not apply to an
election ordered under this section.
(e) The Cameron County Commissioners Court shall give
notice of an election under this section by publishing a
substantial copy of the election order in a newspaper with general
circulation in Cameron County once a week for two consecutive
weeks. The first publication must appear not later than the 30th
day before the date set for the election.
(f) The ballot for an election under this section must be
printed to permit voting for or against the proposition: "The
creation of the Cameron County Healthcare District, providing for
the imposition of an ad valorem tax at a rate determined by the
board of directors of the district, which rate may not exceed 25
cents on each $100 valuation of all taxable property in the
district. District funds shall be used for district purposes,
including providing medical and hospital care for the needy
inhabitants of Cameron County, improving health care services for
inhabitants of Cameron 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 Cameron County Commissioners Court shall find that
the Cameron County Healthcare District is created if a majority of
the voters voting in the election held under this section favor the
creation of the district.
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1121.051. DIRECTORS; TERM. (a) If the creation of
the district is approved at the election held under Section
1121.021, the district shall be governed by a board of nine
directors, appointed as follows:
(1) the county judge of Cameron County shall appoint
one director;
(2) each county commissioner serving on the Cameron
County Commissioners Court shall appoint one director; and
(3) the governing bodies of the four municipalities
located in Cameron County that have the greatest amounts of taxable
value of property taxable by the district located within their
corporate boundaries shall each appoint one director.
(b) Directors serve staggered three-year terms, with three
directors' terms expiring each year. The initial directors
appointed under this section shall draw lots as follows to
determine:
(1) for the directors appointed by the governing
bodies of the municipalities in Cameron County described by
Subsection (a), which director serves a one-year term, which two
directors serve a two-year term, and which director serves a
three-year term; and
(2) for the directors appointed by the Cameron County
Commissioners Court, including the director appointed by the county
judge of Cameron County, which two directors serve a one-year term,
which director serves a two-year term, and which two directors
serve a three-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 consecutive
three-year terms.
Sec. 1121.052. ELIGIBILITY FOR APPOINTMENT TO BOARD. A
person is not eligible for appointment to the board if the person
is:
(1) an employee of Cameron County;
(2) an employee of a municipality located in the
district;
(3) a district employee; or
(4) 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 Cameron
County, to a member of the governing body of a municipality located
in the district, or to a person described by Subdivision (1), (2),
or (3).
Sec. 1121.053. OFFICERS. (a) The board shall elect from
among the directors:
(1) a chair; and
(2) a vice chair to preside in the chair's absence.
(b) The board shall elect a director or the district
administrator to serve as secretary.
Sec. 1121.054. COMPENSATION; REIMBURSEMENT. A director or
officer serves without compensation but may be reimbursed for
actual expenses incurred in the performance of official duties.
The expenses must be:
(1) reported in the district's records; and
(2) approved by the board.
Sec. 1121.055. DIRECTOR'S BOND. (a) Before assuming the
duties of office, each director must execute a bond in the amount of
$5,000 payable to the district and conditioned on the faithful
performance of the director's duties.
(b) The bond shall be kept in the permanent records of the
district.
(c) The board may pay for a director's bond with district
money.
Sec. 1121.056. BOARD VACANCY. A vacancy in the office of
director shall be filled for the remainder of the unexpired term by
appointment by the person or governing body that appointed the
vacating director.
Sec. 1121.057. VOTING REQUIREMENT. A concurrence of a
majority of the directors voting is necessary in matters relating
to district business.
Sec. 1121.058. DISTRICT ADMINISTRATOR; ADMINISTRATOR'S
BOND. (a) The board may appoint a qualified person as district
administrator.
(b) The district administrator serves at the will of the
board.
(c) The district administrator is entitled to compensation
determined by the board.
(d) Before assuming the duties of district administrator,
the administrator must execute a bond payable to the district in an
amount not less than $5,000, as determined by the board,
conditioned on the faithful performance of the administrator's
duties.
(e) The board may pay for the bond with district money.
Sec. 1121.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
Subject to the limitations prescribed by the board, the district
administrator shall:
(1) supervise the work and activities of the district;
and
(2) direct the general affairs of the district.
Sec. 1121.060. ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
(a) The board may appoint qualified persons as assistant district
administrator and attorney for the district.
(b) The assistant district administrator and attorney for
the district serve at the will of the board.
(c) The assistant district administrator and attorney for
the district are entitled to compensation determined by the board.
Sec. 1121.061. EMPLOYEES. (a) The district may employ
nurses, technicians, fiscal agents, accountants, architects,
additional attorneys, and other necessary employees.
(b) The board may delegate to the district administrator the
authority to employ persons for the district.
Sec. 1121.062. RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.
The board may spend district money, enter into agreements, and take
other necessary actions to recruit physicians and other persons to
serve as medical staff members or district employees. The actions
may include:
(1) advertising and marketing;
(2) paying travel, recruitment, and relocation
expenses;
(3) providing a loan or scholarship to a physician or a
person currently enrolled in health care education courses at an
institution of higher education who contracts to become a medical
staff member or district employee; or
(4) contracting with a full-time medical student or
other student in a health occupation who is enrolled in and in good
standing at an accredited medical school, college, or university to
pay the student's tuition or other expenses for the consideration
of the student agreeing to serve as an employee or independent
contractor for the district.
Sec. 1121.063. APPOINTMENT AND REMOVAL OF MEDICAL STAFF.
The board may:
(1) appoint to the medical staff any doctor the board
considers necessary for the efficient operation of the district;
(2) remove any doctor from the medical staff, after
due process, if the board considers the doctor's removal necessary
for the efficient operation of the district; and
(3) make temporary appointments to the medical staff
as the board considers necessary.
Sec. 1121.064. RETIREMENT BENEFITS. The board may provide
retirement benefits for district employees by:
(1) establishing or administering a retirement
program; or
(2) participating in:
(A) the Texas County and District Retirement
System; or
(B) another statewide retirement system in which
the district is eligible to participate.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1121.101. DISTRICT RESPONSIBILITY. The district has
full responsibility for operating the district's hospital
facilities and providing medical and hospital care for the
district's needy inhabitants.
Sec. 1121.102. MANAGEMENT, CONTROL, AND ADMINISTRATION.
The board shall manage, control, and administer the district and
the money and resources of the district.
Sec. 1121.103. RULES. The board may adopt rules governing:
(1) the operation of the district and any district
hospital; and
(2) the duties, functions, and responsibilities of
district staff and employees.
Sec. 1121.104. PURCHASING AND ACCOUNTING PROCEDURES. The
board may prescribe:
(1) the method of making purchases and expenditures by
and for the district; and
(2) accounting and control procedures for the
district.
Sec. 1121.105. PROVISION OF CERTAIN HEALTH SERVICES.
(a) The district may operate or provide for the operation of a
mobile emergency medical service.
(b) The district may operate or provide for home health
services, long-term care, skilled nursing care, intermediate
nursing care, or hospice care.
Sec. 1121.106. 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; and
(2) the type of equipment necessary to provide medical
care in the district.
(b) The board may:
(1) acquire property, facilities, and equipment for
use by the district;
(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.
Sec. 1121.107. OPERATING AND MANAGEMENT CONTRACTS. The
board may enter into operating or management contracts relating to
hospital or other health care facilities for the district.
Sec. 1121.108. SERVICE CONTRACTS. (a) The board may
contract with public or private hospitals, clinics, physicians or
other health care providers, political subdivisions of the state,
accredited public or private medical schools and their affiliated
nonprofit entities or faculty practice plans, allied health
education institutions, or state and federal agencies for the
district to provide a mobile emergency medical service or other
medical, hospital, or health care services needed to provide for
the investigatory, welfare, medical, or health care needs of
inhabitants of the district.
(b) The board may contract with a person to receive or
supply the services the board considers necessary for the effective
operation of the district.
Sec. 1121.109. EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in property located in district territory if the
interest is necessary for the district to exercise the rights or
authority conferred by this chapter.
(b) The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except that the
district is not required to deposit with the trial court money or a
bond as provided by Section 21.021(a), Property Code.
(c) In a condemnation proceeding brought by the district,
the district is not required to:
(1) pay in advance or provide bond or other security
for costs in the trial court;
(2) provide bond for the issuance of a temporary
restraining order or a temporary injunction; or
(3) provide a bond for costs or a supersedeas bond on
an appeal or petition for review.
Sec. 1121.110. COST OF RELOCATING OR ALTERING PROPERTY. In
exercising the power of eminent domain, if the board requires
relocating, raising, lowering, rerouting, changing the grade, or
altering the construction of any railroad, highway, pipeline, or
electric transmission and electric distribution, telegraph, or
telephone line, conduit, pole, or facility, the district shall pay
the actual cost of that activity to provide a comparable
replacement, without enhancement of facilities, after deducting
the net salvage value derived from the old facility.
Sec. 1121.111. GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust for any
purpose and under any direction, limitation, or provision in
writing by the donor that is consistent with the proper management
of the district.
Sec. 1121.112. PAYMENT FOR TREATMENT; PROCEDURES.
(a) When a person who resides in the district is admitted as a
patient to a district facility or receives medical or hospital care
from the district, the district administrator may have an inquiry
made into the financial circumstances of:
(1) the patient; and
(2) a relative of the patient who is legally
responsible for the patient's support.
(b) To the extent that the patient or a relative of the
patient who is legally responsible for the patient's support cannot
pay for care and treatment provided by the district, the district
shall supply the care and treatment without charging the patient or
the patient's relative.
(c) On determining that the patient or a relative legally
responsible for the patient's support can pay for all or part of the
care and treatment provided by the district, the district
administrator shall report that determination to the board, and the
board shall issue an order directing the patient or the relative to
pay the district a specified amount each week. The amount must be
based on the person's ability to pay.
(d) The district administrator may collect money owed to the
district from the patient's estate or from that of a relative
legally responsible for the patient's support in the manner
provided by law for the collection of expenses in the last illness
of a deceased person.
(e) If there is a dispute relating to a person's ability to
pay or if the district administrator has any doubt concerning a
person's ability to pay, the board shall call witnesses, hear and
resolve the question, and issue a final order. The order may be
appealed to a district court in Cameron County. The substantial
evidence rule applies to an appeal under this subsection.
Sec. 1121.113. REIMBURSEMENT FOR SERVICES. (a) If the
district provides care or treatment to a sick or injured person who
is not an inhabitant of Cameron County, the board shall require the
county, municipality, or public hospital located outside of the
district and in which the person is an inhabitant to reimburse the
district for the district's care and treatment of that person as
provided by Chapter 61, Health and Safety Code.
(b) The board shall require the sheriff of Cameron County to
reimburse the district for the district's care and treatment of a
person who is confined in a jail facility of Cameron County and is
not a resident of the district.
(c) On behalf of the district, the board may contract with
the state or federal government for that government to reimburse
the district for treatment of a sick or injured person.
Sec. 1121.114. NONPROFIT CORPORATION. (a) The district
may create and sponsor a nonprofit corporation under the Business
Organizations Code and may contribute money to or solicit money for
the corporation.
(b) A corporation created under this section may use money
contributed by the district only for a district purpose, including
the provision of health care or other services the district is
authorized to provide under this chapter.
(c) The corporation may invest the corporation's money in
any manner in which the district may invest the district's money,
including investing money as authorized by Chapter 2256, Government
Code.
(d) The board shall establish controls to ensure that the
corporation uses its money as required by this section.
Sec. 1121.115. LOANS AND GRANTS FOR ECONOMIC DEVELOPMENT
PURPOSES. Under the authority granted by Section 52-a, Article
III, Texas Constitution, the district may loan or grant money to any
person for the development of medical education and research in the
district.
Sec. 1121.116. AUTHORITY TO SUE AND BE SUED. The board may
sue and be sued on behalf of the district.
Sec. 1121.117. CONSTRUCTION CONTRACTS; ADVERTISING FOR
CERTAIN CONSTRUCTION CONTRACTS. (a) The board may enter into a
construction contract on the district's behalf.
(b) The board may enter into a construction contract only
after competitive bidding as provided by Subchapter B, Chapter 271,
Local Government Code, if the amount of the contract is greater than
the amount provided by Section 271.024 of that code.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1121.151. BUDGET. (a) The board and the district
administrator shall jointly prepare a proposed annual budget for
the district.
(b) The proposed budget must contain a complete financial
statement, including a statement of:
(1) the outstanding obligations of the district;
(2) the amount of cash on hand to the credit of each
fund of the district;
(3) the amount of money received by the district from
all sources during the previous year;
(4) the amount of money available to the district from
all sources during the ensuing year;
(5) the amount of the balances expected at the end of
the year in which the budget is being prepared;
(6) the estimated amount of revenues and balances
available to cover the proposed budget; and
(7) the estimated tax rate required.
Sec. 1121.152. NOTICE; HEARING; ADOPTION OF BUDGET.
(a) The board shall hold a public hearing on the proposed budget.
(b) The board shall publish notice of the hearing in a
newspaper with general circulation in the district not later than
the 10th day before the date of the hearing.
(c) Any district resident is entitled to be present and
participate at the hearing.
(d) At the conclusion of the hearing, the board shall adopt
a budget by acting on the proposed budget. 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 adoption by the
board.
Sec. 1121.153. AMENDMENT OF BUDGET. After the budget is
adopted, the budget may be amended if the proposed amendment is
adopted by the board.
Sec. 1121.154. FISCAL YEAR. (a) The district operates
according to a fiscal year established by the board.
(b) The fiscal year may not be changed:
(1) during a period in which revenue bonds of the
district are outstanding; or
(2) more than once in a 24-month period.
Sec. 1121.155. ANNUAL AUDIT. The board shall have an annual
audit made of the financial condition of the district.
Sec. 1121.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT
RECORDS. The annual audit and other district records are open to
inspection during regular business hours at the principal office of
the district.
Sec. 1121.157. FINANCIAL REPORT. As soon as practicable
after the close of each fiscal year, the district administrator
shall prepare for the board a sworn statement of the amount of
district money and an account of the disbursement of that money.
Sec. 1121.158. SHORT-TERM FINANCING. The district may
borrow money through short-term financing.
Sec. 1121.159. DEBT LIMITATION. Except as provided by this
chapter and Chapter 1207, Government Code, the district may not
incur a debt payable from district revenue other than revenue
available in the current fiscal year and the immediately following
fiscal year of the district.
Sec. 1121.160. DEPOSITORY. (a) The board shall select at
least one bank to serve as a depository for district money.
(b) The board may solicit bids from local financial
institutions to determine which institution may serve as a
depository for district money.
(c) District money, other than money invested as provided by
Section 1121.161 and money transmitted to a bank for payment of
bonds or obligations issued or assumed by the district, shall be
deposited as received with the depository bank and shall remain on
deposit. This subsection does not limit the board's power to place
part of the district's money on time deposit or to purchase
certificates of deposit.
Sec. 1121.161. RESTRICTION ON INVESTMENT. The board may
invest operating, depreciation, or building reserves only in funds
or securities specified by Chapter 2256, Government Code.
SUBCHAPTER E. BONDS
Sec. 1121.201. 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
purposes; or
(3) acquire and operate a mobile emergency medical
service.
Sec. 1121.202. TAX TO PAY GENERAL OBLIGATION BONDS.
(a) At the time general obligation bonds are issued by the
district under Section 1121.201, the board shall impose an ad
valorem tax in an amount sufficient to create an interest and
sinking fund to pay the principal of and interest on the bonds as
the bonds mature.
(b) The tax required by this section together with any other
tax the district imposes in any year may not exceed the limit
approved by the voters at the election authorizing the imposition
of taxes.
Sec. 1121.203. GENERAL OBLIGATION BOND ELECTION. (a) The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the voters voting in an election held
for that purpose.
(b) The board may order a bond election. The order calling
the election must specify:
(1) the nature and date of the election;
(2) the hours during which the polls will be open;
(3) the location of polling places;
(4) the amounts of the bonds to be authorized; and
(5) the maximum maturity of the bonds.
(c) Notice of a bond election must be given as provided by
Chapter 1251, Government Code.
(d) The board shall declare the results of the election.
Sec. 1121.204. REVENUE BONDS. (a) The board may issue
revenue bonds to:
(1) acquire, purchase, construct, repair, renovate,
or equip buildings or improvements for district purposes;
(2) acquire sites to be used for district purposes; or
(3) acquire and operate a mobile emergency medical
service to assist the district in carrying out its 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.
(c) The bonds may be additionally secured by a mortgage or
deed of trust lien on all or part of the district property.
(d) The bonds must be issued in the manner provided by
Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
Health and Safety Code, for issuance of revenue bonds by county
hospital authorities.
Sec. 1121.205. MATURITY. District bonds must mature not
later than 40 years after the date of their issuance.
Sec. 1121.206. EXECUTION OF BONDS. (a) The board chair
shall execute district bonds in the district's name.
(b) The board secretary shall countersign the bonds in the
manner provided by Chapter 618, Government Code.
Sec. 1121.207. BONDS NOT SUBJECT TO TAXATION. The
following are not subject to taxation by the state or by a political
subdivision of the state:
(1) bonds issued by the district;
(2) any transaction relating to the bonds; and
(3) profits made in the sale of the bonds.
SUBCHAPTER F. AD VALOREM TAX
Sec. 1121.251. IMPOSITION OF AD VALOREM TAX. (a) The
board shall impose a tax on all property in the district subject to
taxation by the district.
(b) The tax may be used to pay:
(1) indebtedness issued or assumed by the district;
and
(2) the maintenance and operating expenses of the
district.
(c) The district may not impose a tax to pay the principal of
or interest on revenue bonds issued under this chapter.
Sec. 1121.252. LIMITATION ON TAX RATE. (a) The tax rate on
all taxable property in the district for all purposes may not exceed
25 cents on each $100 valuation of the property according to the
most recent certified tax appraisal roll of the district.
(b) In setting the tax rate, the board shall consider
district income from sources other than taxation.
(c) Section 285.231, Health and Safety Code, does not apply
to the district.
Sec. 1121.253. REDUCTION IN AD VALOREM TAX RATE BY COUNTY.
The Cameron County Commissioners Court, in determining the county
ad valorem tax rate for the first year in which the district imposes
ad valorem taxes on property in the district, shall:
(1) take into account the decrease in the amount the
county will spend for health care purposes in that year because the
district is providing health care services previously provided or
paid for by the county; and
(2) reduce the county's ad valorem tax rate in
accordance with the decreased amount of required spending described
by Subdivision (1).
Sec. 1121.254. 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.
(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. 1121.255. 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.
Sec. 1121.256. TAX ASSESSOR-COLLECTOR. The board may
provide for the appointment of a tax assessor-collector for the
district or may contract for the assessment and collection of taxes
as provided by the Tax Code.
SUBCHAPTER G. DISSOLUTION
Sec. 1121.301. DISSOLUTION; ELECTION. (a) The district
may be dissolved only on approval of a majority of the voters voting
in an election held for that purpose.
(b) The board may order an election on the question of
dissolving the district and disposing of the district's assets and
obligations.
(c) The board shall order an election if the board receives
a petition requesting an election that is signed by at least 15
percent of the district's registered voters.
(d) The order calling the election must state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(e) Section 41.001(a), Election Code, does not apply to an
election ordered under this section.
Sec. 1121.302. NOTICE OF ELECTION. (a) The board shall
give notice of an election under this subchapter by publishing a
substantial copy of the election order in a newspaper with general
circulation in the district once a week for two consecutive weeks.
(b) The first publication must appear not later than the
30th day before the date set for the election.
Sec. 1121.303. BALLOT. The ballot for an election under
this subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the Cameron County Healthcare
District."
Sec. 1121.304. ELECTION RESULTS. (a) If a majority of the
votes in an election under this subchapter favor dissolution, the
board shall order that the district be dissolved.
(b) If a majority of the votes in an election under this
subchapter do not favor dissolution, the board shall continue to
administer the district, and another election on the question of
dissolution may not be held before the first anniversary of the date
of the most recent election to dissolve the district.
Sec. 1121.305. TRANSFER OR ADMINISTRATION OF ASSETS.
(a) If a majority of the votes in an election under this subchapter
favor dissolution, the board shall:
(1) transfer the land, buildings, improvements,
equipment, and other assets belonging to the district to Cameron
County; or
(2) administer the property, assets, and debts of the
district until all money has been disposed of and all district debts
have been paid or settled.
(b) If the board makes the transfer under Subsection (a)(1),
the county assumes all debts and obligations of the district at the
time of the transfer and the district is dissolved.
(c) If Subsection (a)(1) does not apply and the board
administers the property, assets, and debts of the district under
Subsection (a)(2), the district is dissolved when all money has
been disposed of and all district debts have been paid or settled.
Sec. 1121.306. IMPOSITION OF TAX AND RETURN OF SURPLUS
TAXES. (a) After the board determines that the district is
dissolved, the board shall:
(1) determine the debt owed by the district; and
(2) impose on the property included in the district's
tax rolls a tax that is in proportion of the debt to the property
value.
(b) On the payment of all outstanding debts and obligations
of the district, the board shall order the secretary to return to
each district taxpayer the taxpayer's pro rata share of all unused
tax money.
(c) A taxpayer may request that the taxpayer's share of
surplus tax money be credited to the taxpayer's county taxes. If a
taxpayer requests the credit, the board shall direct the secretary
to transmit the funds to the tax assessor-collector for Cameron
County.
Sec. 1121.307. REPORT; DISSOLUTION ORDER. (a) After the
district has paid all its debts and has disposed of all its money
and other assets as prescribed by this subchapter, the board shall
file a written report with the Cameron County Commissioners Court
summarizing the board's actions in dissolving the district.
(b) Not later than the 10th day after the date the Cameron
County Commissioners Court receives the report and determines that
the requirements of this subchapter have been fulfilled, the
commissioners court shall enter an order dissolving the district
and releasing the board from any further duty or obligation.
SECTION 2. On the creation of the Cameron County Healthcare
District, or as soon as practicable after the district is created,
the Cameron County Commissioners Court 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 3. Proof of publication of the notice required to
enact Chapter 1121, Special District Local Laws Code, as added by
this Act, under the provisions of Section 9, Article IX, Texas
Constitution, has been made in the manner and form provided by law
pertaining to the enactment of local and special laws, and the
notice is found and declared proper and sufficient to satisfy the
requirement.
SECTION 4. (a) Except as provided by Subsection (b) of
this section, 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.
(b) If this Act does not receive the vote necessary for
immediate effect:
(1) this Act takes effect September 1, 2015; and
(2) Section 1121.109, Special District Local Laws
Code, as added by this Act, has no effect.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2034 passed the Senate on
April 30, 2015, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2034 passed the House on
May 18, 2015, by the following vote: Yeas 123, Nays 15,
two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor