Texas 2015 - 84th Regular

Texas Senate Bill SB2034 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Lucio, et al. S.B. No. 2034
2		-	(Lucio III)
	1	+	S.B. No. 2034
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the creation of the Cameron County Healthcare District;
8	6		granting the authority to impose a tax and issue bonds; granting the
9	7		power of eminent domain.
10	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	9		SECTION 1. Subtitle A, Title 3, Special District Local Laws
12	10		Code, is amended by adding Chapter 1121 to read as follows:
13	11		CHAPTER 1121. CAMERON COUNTY HEALTHCARE DISTRICT
14	12		SUBCHAPTER A. GENERAL PROVISIONS
15	13		Sec. 1121.001. DEFINITIONS. In this chapter:
16	14		(1) "Board" means the board of directors of the
17	15		district.
18	16		(2) "Director" means a member of the board.
19	17		(3) "District" means the Cameron County Healthcare
20	18		District.
21	19		Sec. 1121.002. DISTRICT AUTHORIZATION. The Cameron County
22	20		Healthcare District may be created and, if created, operates and is
23	21		financed as a hospital district as provided by Section 9, Article
24	22		IX, Texas Constitution, and by this chapter.
25	23		Sec. 1121.003. ESSENTIAL PUBLIC FUNCTION. The district is
26	24		a public entity performing an essential public function.
27	25		Sec. 1121.004. DISTRICT TERRITORY. The boundaries of the
28	26		district are coextensive with the boundaries of Cameron County.
29	27		Sec. 1121.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE
30	28		OBLIGATION. The state may not be obligated for the support or
31	29		maintenance of the district.
32	30		Sec. 1121.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE.
33	31		The legislature may not make a direct appropriation for the
34	32		construction, maintenance, or improvement of a district facility.
35	33		SUBCHAPTER A-1. TEMPORARY PROVISIONS
36	34		Sec. 1121.021. CREATION ELECTION; ORDERING ELECTION.
37	35		(a) The district may be created and a tax may be authorized only if
38	36		the creation and the tax are approved by a majority of the
39	37		registered voters of the territory of the proposed district voting
40	38		at an election called and held for that purpose.
41	39		(b) The Cameron County Commissioners Court shall order an
42	40		election for the registered voters of Cameron County on the
43	41		question of creation of the Cameron County Healthcare District if
44	42		the commissioners court receives a petition requesting an election
45	43		that is signed by at least 100 registered voters who are residents
46	44		of Cameron County.
47	45		(c) The order calling an election under this section must
48	46		state:
49	47		(1) the nature of the election, including the
50	48		proposition that is to appear on the ballot;
51	49		(2) the date of the election;
52	50		(3) the hours during which the polls will be open; and
53	51		(4) the location of the polling places.
54	52		(d) Section 41.001(a), Election Code, does not apply to an
55	53		election ordered under this section.
56	54		(e) The Cameron County Commissioners Court shall give
57	55		notice of an election under this section by publishing a
58	56		substantial copy of the election order in a newspaper with general
59	57		circulation in Cameron County once a week for two consecutive
60	58		weeks. The first publication must appear not later than the 30th
61	59		day before the date set for the election.
62	60		(f) The ballot for an election under this section must be
63	61		printed to permit voting for or against the proposition: "The
64	62		creation of the Cameron County Healthcare District, providing for
65	63		the imposition of an ad valorem tax at a rate determined by the
66	64		board of directors of the district, which rate may not exceed 25
67	65		cents on each $100 valuation of all taxable property in the
68	66		district. District funds shall be used for district purposes,
69	67		including providing medical and hospital care for the needy
70	68		inhabitants of Cameron County, improving health care services for
71	69		inhabitants of Cameron County, supporting the School of Medicine at
72	70		The University of Texas Rio Grande Valley, training physicians,
73	71		nurses, and other health care professionals, obtaining federal or
74	72		state funds for health care services, and providing community
75	73		health clinics, primary care services, behavioral and mental health
76	74		care services, and prevention and wellness programs."
77	75		(g) The Cameron County Commissioners Court shall find that
78	76		the Cameron County Healthcare District is created if a majority of
79	77		the voters voting in the election held under this section favor the
80	78		creation of the district.
81	79		SUBCHAPTER B. DISTRICT ADMINISTRATION
82	80		Sec. 1121.051. DIRECTORS; TERM. (a) If the creation of
83	81		the district is approved at the election held under Section
84	82		1121.021, the district shall be governed by a board of nine
85	83		directors, appointed as follows:
86	84		(1) the county judge of Cameron County shall appoint
87	85		one director;
88	86		(2) each county commissioner serving on the Cameron
89	87		County Commissioners Court shall appoint one director; and
90	88		(3) the governing bodies of the four municipalities
91	89		located in Cameron County that have the greatest amounts of taxable
92	90		value of property taxable by the district located within their
93	91		corporate boundaries shall each appoint one director.
94	92		(b) Directors serve staggered three-year terms, with three
95	93		directors' terms expiring each year. The initial directors
96	94		appointed under this section shall draw lots as follows to
97	95		determine:
98	96		(1) for the directors appointed by the governing
99	97		bodies of the municipalities in Cameron County described by
100	98		Subsection (a), which director serves a one-year term, which two
101	99		directors serve a two-year term, and which director serves a
102	100		three-year term; and
103	101		(2) for the directors appointed by the Cameron County
104	102		Commissioners Court, including the director appointed by the county
105	103		judge of Cameron County, which two directors serve a one-year term,
106	104		which director serves a two-year term, and which two directors
107	105		serve a three-year term.
108	106		(c) On expiration of the initial directors' terms,
109	107		successor directors shall be appointed for a three-year term by the
110	108		person or governing body that appointed the initial director.
111	109		(d) A director may not serve more than three consecutive
112	110		three-year terms.
113	111		Sec. 1121.052. ELIGIBILITY FOR APPOINTMENT TO BOARD. A
114	112		person is not eligible for appointment to the board if the person
115	113		is:
116	114		(1) an employee of Cameron County;
117	115		(2) an employee of a municipality located in the
118	116		district;
119	117		(3) a district employee; or
120	118		(4) related within the third degree of consanguinity
121	119		or affinity, as determined under Subchapter B, Chapter 573,
122	120		Government Code, to a member of the Commissioners Court of Cameron
123	121		County, to a member of the governing body of a municipality located
124	122		in the district, or to a person described by Subdivision (1), (2),
125	123		or (3).
126	124		Sec. 1121.053. OFFICERS. (a) The board shall elect from
127	125		among the directors:
128	126		(1) a chair; and
129	127		(2) a vice chair to preside in the chair's absence.
130	128		(b) The board shall elect a director or the district
131	129		administrator to serve as secretary.
132	130		Sec. 1121.054. COMPENSATION; REIMBURSEMENT. A director or
133	131		officer serves without compensation but may be reimbursed for
134	132		actual expenses incurred in the performance of official duties.
135	133		The expenses must be:
136	134		(1) reported in the district's records; and
137	135		(2) approved by the board.
138	136		Sec. 1121.055. DIRECTOR'S BOND. (a) Before assuming the
139	137		duties of office, each director must execute a bond in the amount of
140	138		$5,000 payable to the district and conditioned on the faithful
141	139		performance of the director's duties.
142	140		(b) The bond shall be kept in the permanent records of the
143	141		district.
144	142		(c) The board may pay for a director's bond with district
145	143		money.
146	144		Sec. 1121.056. BOARD VACANCY. A vacancy in the office of
147	145		director shall be filled for the remainder of the unexpired term by
148	146		appointment by the person or governing body that appointed the
149	147		vacating director.
150	148		Sec. 1121.057. VOTING REQUIREMENT. A concurrence of a
151	149		majority of the directors voting is necessary in matters relating
152	150		to district business.
153	151		Sec. 1121.058. DISTRICT ADMINISTRATOR; ADMINISTRATOR'S
154	152		BOND. (a) The board may appoint a qualified person as district
155	153		administrator.
156	154		(b) The district administrator serves at the will of the
157	155		board.
158	156		(c) The district administrator is entitled to compensation
159	157		determined by the board.
160	158		(d) Before assuming the duties of district administrator,
161	159		the administrator must execute a bond payable to the district in an
162	160		amount not less than $5,000, as determined by the board,
163	161		conditioned on the faithful performance of the administrator's
164	162		duties.
165	163		(e) The board may pay for the bond with district money.
166	164		Sec. 1121.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
167	165		Subject to the limitations prescribed by the board, the district
168	166		administrator shall:
169	167		(1) supervise the work and activities of the district;
170	168		and
171	169		(2) direct the general affairs of the district.
172	170		Sec. 1121.060. ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
173	171		(a) The board may appoint qualified persons as assistant district
174	172		administrator and attorney for the district.
175	173		(b) The assistant district administrator and attorney for
176	174		the district serve at the will of the board.
177	175		(c) The assistant district administrator and attorney for
178	176		the district are entitled to compensation determined by the board.
179	177		Sec. 1121.061. EMPLOYEES. (a) The district may employ
180	178		nurses, technicians, fiscal agents, accountants, architects,
181	179		additional attorneys, and other necessary employees.
182	180		(b) The board may delegate to the district administrator the
183	181		authority to employ persons for the district.
184	182		Sec. 1121.062. RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.
185	183		The board may spend district money, enter into agreements, and take
186	184		other necessary actions to recruit physicians and other persons to
187	185		serve as medical staff members or district employees. The actions
188	186		may include:
189	187		(1) advertising and marketing;
190	188		(2) paying travel, recruitment, and relocation
191	189		expenses;
192	190		(3) providing a loan or scholarship to a physician or a
193	191		person currently enrolled in health care education courses at an
194	192		institution of higher education who contracts to become a medical
195	193		staff member or district employee; or
196	194		(4) contracting with a full-time medical student or
197	195		other student in a health occupation who is enrolled in and in good
198	196		standing at an accredited medical school, college, or university to
199	197		pay the student's tuition or other expenses for the consideration
200	198		of the student agreeing to serve as an employee or independent
201	199		contractor for the district.
202	200		Sec. 1121.063. APPOINTMENT AND REMOVAL OF MEDICAL STAFF.
203	201		The board may:
204	202		(1) appoint to the medical staff any doctor the board
205	203		considers necessary for the efficient operation of the district;
206	204		(2) remove any doctor from the medical staff, after
207	205		due process, if the board considers the doctor's removal necessary
208	206		for the efficient operation of the district; and
209	207		(3) make temporary appointments to the medical staff
210	208		as the board considers necessary.
211	209		Sec. 1121.064. RETIREMENT BENEFITS. The board may provide
212	210		retirement benefits for district employees by:
213	211		(1) establishing or administering a retirement
214	212		program; or
215	213		(2) participating in:
216	214		(A) the Texas County and District Retirement
217	215		System; or
218	216		(B) another statewide retirement system in which
219	217		the district is eligible to participate.
220	218		SUBCHAPTER C. POWERS AND DUTIES
221	219		Sec. 1121.101. DISTRICT RESPONSIBILITY. The district has
222	220		full responsibility for operating the district's hospital
223	221		facilities and providing medical and hospital care for the
224	222		district's needy inhabitants.
225	223		Sec. 1121.102. MANAGEMENT, CONTROL, AND ADMINISTRATION.
226	224		The board shall manage, control, and administer the district and
227	225		the money and resources of the district.
228	226		Sec. 1121.103. RULES. The board may adopt rules governing:
229	227		(1) the operation of the district and any district
230	228		hospital; and
231	229		(2) the duties, functions, and responsibilities of
232	230		district staff and employees.
233	231		Sec. 1121.104. PURCHASING AND ACCOUNTING PROCEDURES. The
234	232		board may prescribe:
235	233		(1) the method of making purchases and expenditures by
236	234		and for the district; and
237	235		(2) accounting and control procedures for the
238	236		district.
239	237		Sec. 1121.105. PROVISION OF CERTAIN HEALTH SERVICES.
240	238		(a) The district may operate or provide for the operation of a
241	239		mobile emergency medical service.
242	240		(b) The district may operate or provide for home health
243	241		services, long-term care, skilled nursing care, intermediate
244	242		nursing care, or hospice care.
245	243		Sec. 1121.106. DISTRICT PROPERTY, FACILITIES, AND
246	244		EQUIPMENT. (a) The board shall determine:
247	245		(1) the type, number, and location of buildings
248	246		required to maintain an adequate health care district; and
249	247		(2) the type of equipment necessary to provide medical
250	248		care in the district.
251	249		(b) The board may:
252	250		(1) acquire property, facilities, and equipment for
253	251		use by the district;
254	252		(2) mortgage or pledge the property, facilities, or
255	253		equipment as security for payment of the purchase price;
256	254		(3) sell or otherwise dispose of property, facilities,
257	255		or equipment for the district; or
258	256		(4) lease hospital facilities for the district.
259	257		Sec. 1121.107. OPERATING AND MANAGEMENT CONTRACTS. The
260	258		board may enter into operating or management contracts relating to
261	259		hospital or other health care facilities for the district.
262	260		Sec. 1121.108. SERVICE CONTRACTS. (a) The board may
263	261		contract with public or private hospitals, clinics, physicians or
264	262		other health care providers, political subdivisions of the state,
265	263		accredited public or private medical schools and their affiliated
266	264		nonprofit entities or faculty practice plans, allied health
267	265		education institutions, or state and federal agencies for the
268	266		district to provide a mobile emergency medical service or other
269	267		medical, hospital, or health care services needed to provide for
270	268		the investigatory, welfare, medical, or health care needs of
271	269		inhabitants of the district.
272	270		(b) The board may contract with a person to receive or
273	271		supply the services the board considers necessary for the effective
274	272		operation of the district.
275	273		Sec. 1121.109. EMINENT DOMAIN. (a) The district may
276	274		exercise the power of eminent domain to acquire a fee simple or
277	275		other interest in property located in district territory if the
278	276		interest is necessary for the district to exercise the rights or
279	277		authority conferred by this chapter.
280	278		(b) The district must exercise the power of eminent domain
281	279		in the manner provided by Chapter 21, Property Code, except that the
282	280		district is not required to deposit with the trial court money or a
283	281		bond as provided by Section 21.021(a), Property Code.
284	282		(c) In a condemnation proceeding brought by the district,
285	283		the district is not required to:
286	284		(1) pay in advance or provide bond or other security
287	285		for costs in the trial court;
288	286		(2) provide bond for the issuance of a temporary
289	287		restraining order or a temporary injunction; or
290	288		(3) provide a bond for costs or a supersedeas bond on
291	289		an appeal or petition for review.
292	290		Sec. 1121.110. COST OF RELOCATING OR ALTERING PROPERTY. In
293	291		exercising the power of eminent domain, if the board requires
294	292		relocating, raising, lowering, rerouting, changing the grade, or
295	293		altering the construction of any railroad, highway, pipeline, or
296	294		electric transmission and electric distribution, telegraph, or
297	295		telephone line, conduit, pole, or facility, the district shall pay
298	296		the actual cost of that activity to provide a comparable
299	297		replacement, without enhancement of facilities, after deducting
300	298		the net salvage value derived from the old facility.
301	299		Sec. 1121.111. GIFTS AND ENDOWMENTS. The board may accept
302	300		for the district a gift or endowment to be held in trust for any
303	301		purpose and under any direction, limitation, or provision in
304	302		writing by the donor that is consistent with the proper management
305	303		of the district.
306	304		Sec. 1121.112. PAYMENT FOR TREATMENT; PROCEDURES.
307	305		(a) When a person who resides in the district is admitted as a
308	306		patient to a district facility or receives medical or hospital care
309	307		from the district, the district administrator may have an inquiry
310	308		made into the financial circumstances of:
311	309		(1) the patient; and
312	310		(2) a relative of the patient who is legally
313	311		responsible for the patient's support.
314	312		(b) To the extent that the patient or a relative of the
315	313		patient who is legally responsible for the patient's support cannot
316	314		pay for care and treatment provided by the district, the district
317	315		shall supply the care and treatment without charging the patient or
318	316		the patient's relative.
319	317		(c) On determining that the patient or a relative legally
320	318		responsible for the patient's support can pay for all or part of the
321	319		care and treatment provided by the district, the district
322	320		administrator shall report that determination to the board, and the
323	321		board shall issue an order directing the patient or the relative to
324	322		pay the district a specified amount each week. The amount must be
325	323		based on the person's ability to pay.
326	324		(d) The district administrator may collect money owed to the
327	325		district from the patient's estate or from that of a relative
328	326		legally responsible for the patient's support in the manner
329	327		provided by law for the collection of expenses in the last illness
330	328		of a deceased person.
331	329		(e) If there is a dispute relating to a person's ability to
332	330		pay or if the district administrator has any doubt concerning a
333	331		person's ability to pay, the board shall call witnesses, hear and
334	332		resolve the question, and issue a final order. The order may be
335	333		appealed to a district court in Cameron County. The substantial
336	334		evidence rule applies to an appeal under this subsection.
337	335		Sec. 1121.113. REIMBURSEMENT FOR SERVICES. (a) If the
338	336		district provides care or treatment to a sick or injured person who
339	337		is not an inhabitant of Cameron County, the board shall require the
340	338		county, municipality, or public hospital located outside of the
341	339		district and in which the person is an inhabitant to reimburse the
342	340		district for the district's care and treatment of that person as
343	341		provided by Chapter 61, Health and Safety Code.
344	342		(b) The board shall require the sheriff of Cameron County to
345	343		reimburse the district for the district's care and treatment of a
346	344		person who is confined in a jail facility of Cameron County and is
347	345		not a resident of the district.
348	346		(c) On behalf of the district, the board may contract with
349	347		the state or federal government for that government to reimburse
350	348		the district for treatment of a sick or injured person.
351	349		Sec. 1121.114. NONPROFIT CORPORATION. (a) The district
352	350		may create and sponsor a nonprofit corporation under the Business
353	351		Organizations Code and may contribute money to or solicit money for
354	352		the corporation.
355	353		(b) A corporation created under this section may use money
356	354		contributed by the district only for a district purpose, including
357	355		the provision of health care or other services the district is
358	356		authorized to provide under this chapter.
359	357		(c) The corporation may invest the corporation's money in
360	358		any manner in which the district may invest the district's money,
361	359		including investing money as authorized by Chapter 2256, Government
362	360		Code.
363	361		(d) The board shall establish controls to ensure that the
364	362		corporation uses its money as required by this section.
365	363		Sec. 1121.115. LOANS AND GRANTS FOR ECONOMIC DEVELOPMENT
366	364		PURPOSES. Under the authority granted by Section 52-a, Article
367	365		III, Texas Constitution, the district may loan or grant money to any
368	366		person for the development of medical education and research in the
369	367		district.
370	368		Sec. 1121.116. AUTHORITY TO SUE AND BE SUED. The board may
371	369		sue and be sued on behalf of the district.
372	370		Sec. 1121.117. CONSTRUCTION CONTRACTS; ADVERTISING FOR
373	371		CERTAIN CONSTRUCTION CONTRACTS. (a) The board may enter into a
374	372		construction contract on the district's behalf.
375	373		(b) The board may enter into a construction contract only
376	374		after competitive bidding as provided by Subchapter B, Chapter 271,
377	375		Local Government Code, if the amount of the contract is greater than
378	376		the amount provided by Section 271.024 of that code.
379	377		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
380	378		Sec. 1121.151. BUDGET. (a) The board and the district
381	379		administrator shall jointly prepare a proposed annual budget for
382	380		the district.
383	381		(b) The proposed budget must contain a complete financial
384	382		statement, including a statement of:
385	383		(1) the outstanding obligations of the district;
386	384		(2) the amount of cash on hand to the credit of each
387	385		fund of the district;
388	386		(3) the amount of money received by the district from
389	387		all sources during the previous year;
390	388		(4) the amount of money available to the district from
391	389		all sources during the ensuing year;
392	390		(5) the amount of the balances expected at the end of
393	391		the year in which the budget is being prepared;
394	392		(6) the estimated amount of revenues and balances
395	393		available to cover the proposed budget; and
396	394		(7) the estimated tax rate required.
397	395		Sec. 1121.152. NOTICE; HEARING; ADOPTION OF BUDGET.
398	396		(a) The board shall hold a public hearing on the proposed budget.
399	397		(b) The board shall publish notice of the hearing in a
400	398		newspaper with general circulation in the district not later than
401	399		the 10th day before the date of the hearing.
402	400		(c) Any district resident is entitled to be present and
403	401		participate at the hearing.
404	402		(d) At the conclusion of the hearing, the board shall adopt
405	403		a budget by acting on the proposed budget. The board may make a
406	404		change in the proposed budget that the board determines to be in the
407	405		interests of the taxpayers.
408	406		(e) The budget is effective only after adoption by the
409	407		board.
410	408		Sec. 1121.153. AMENDMENT OF BUDGET. After the budget is
411	409		adopted, the budget may be amended if the proposed amendment is
412	410		adopted by the board.
413	411		Sec. 1121.154. FISCAL YEAR. (a) The district operates
414	412		according to a fiscal year established by the board.
415	413		(b) The fiscal year may not be changed:
416	414		(1) during a period in which revenue bonds of the
417	415		district are outstanding; or
418	416		(2) more than once in a 24-month period.
419	417		Sec. 1121.155. ANNUAL AUDIT. The board shall have an annual
420	418		audit made of the financial condition of the district.
421	419		Sec. 1121.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT
422	420		RECORDS. The annual audit and other district records are open to
423	421		inspection during regular business hours at the principal office of
424	422		the district.
425	423		Sec. 1121.157. FINANCIAL REPORT. As soon as practicable
426	424		after the close of each fiscal year, the district administrator
427	425		shall prepare for the board a sworn statement of the amount of
428	426		district money and an account of the disbursement of that money.
429	427		Sec. 1121.158. SHORT-TERM FINANCING. The district may
430	428		borrow money through short-term financing.
431	429		Sec. 1121.159. DEBT LIMITATION. Except as provided by this
432	430		chapter and Chapter 1207, Government Code, the district may not
433	431		incur a debt payable from district revenue other than revenue
434	432		available in the current fiscal year and the immediately following
435	433		fiscal year of the district.
436	434		Sec. 1121.160. DEPOSITORY. (a) The board shall select at
437	435		least one bank to serve as a depository for district money.
438	436		(b) The board may solicit bids from local financial
439	437		institutions to determine which institution may serve as a
440	438		depository for district money.
441	439		(c) District money, other than money invested as provided by
442	440		Section 1121.161 and money transmitted to a bank for payment of
443	441		bonds or obligations issued or assumed by the district, shall be
444	442		deposited as received with the depository bank and shall remain on
445	443		deposit. This subsection does not limit the board's power to place
446	444		part of the district's money on time deposit or to purchase
447	445		certificates of deposit.
448	446		Sec. 1121.161. RESTRICTION ON INVESTMENT. The board may
449	447		invest operating, depreciation, or building reserves only in funds
450	448		or securities specified by Chapter 2256, Government Code.
451	449		SUBCHAPTER E. BONDS
452	450		Sec. 1121.201. GENERAL OBLIGATION BONDS. If authorized by
453	451		an election, the board may issue and sell general obligation bonds
454	452		in the name and on the faith and credit of the district to:
455	453		(1) purchase, construct, acquire, repair, or renovate
456	454		buildings or improvements;
457	455		(2) equip buildings or improvements for district
458	456		purposes; or
459	457		(3) acquire and operate a mobile emergency medical
460	458		service.
461	459		Sec. 1121.202. TAX TO PAY GENERAL OBLIGATION BONDS.
462	460		(a) At the time general obligation bonds are issued by the
463	461		district under Section 1121.201, the board shall impose an ad
464	462		valorem tax in an amount sufficient to create an interest and
465	463		sinking fund to pay the principal of and interest on the bonds as
466	464		the bonds mature.
467	465		(b) The tax required by this section together with any other
468	466		tax the district imposes in any year may not exceed the limit
469	467		approved by the voters at the election authorizing the imposition
470	468		of taxes.
471	469		Sec. 1121.203. GENERAL OBLIGATION BOND ELECTION. (a) The
472	470		district may issue general obligation bonds only if the bonds are
473	471		authorized by a majority of the voters voting in an election held
474	472		for that purpose.
475	473		(b) The board may order a bond election. The order calling
476	474		the election must specify:
477	475		(1) the nature and date of the election;
478	476		(2) the hours during which the polls will be open;
479	477		(3) the location of polling places;
480	478		(4) the amounts of the bonds to be authorized; and
481	479		(5) the maximum maturity of the bonds.
482	480		(c) Notice of a bond election must be given as provided by
483	481		Chapter 1251, Government Code.
484	482		(d) The board shall declare the results of the election.
485	483		Sec. 1121.204. REVENUE BONDS. (a) The board may issue
486	484		revenue bonds to:
487	485		(1) acquire, purchase, construct, repair, renovate,
488	486		or equip buildings or improvements for district purposes;
489	487		(2) acquire sites to be used for district purposes; or
490	488		(3) acquire and operate a mobile emergency medical
491	489		service to assist the district in carrying out its purposes.
492	490		(b) The bonds must be payable from and secured by a pledge of
493	491		all or part of the revenues derived from the operation of the
494	492		district.
495	493		(c) The bonds may be additionally secured by a mortgage or
496	494		deed of trust lien on all or part of the district property.
497	495		(d) The bonds must be issued in the manner provided by
498	496		Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
499	497		Health and Safety Code, for issuance of revenue bonds by county
500	498		hospital authorities.
501	499		Sec. 1121.205. MATURITY. District bonds must mature not
502	500		later than 40 years after the date of their issuance.
503	501		Sec. 1121.206. EXECUTION OF BONDS. (a) The board chair
504	502		shall execute district bonds in the district's name.
505	503		(b) The board secretary shall countersign the bonds in the
506	504		manner provided by Chapter 618, Government Code.
507	505		Sec. 1121.207. BONDS NOT SUBJECT TO TAXATION. The
508	506		following are not subject to taxation by the state or by a political
509	507		subdivision of the state:
510	508		(1) bonds issued by the district;
511	509		(2) any transaction relating to the bonds; and
512	510		(3) profits made in the sale of the bonds.
513	511		SUBCHAPTER F. AD VALOREM TAX
514	512		Sec. 1121.251. IMPOSITION OF AD VALOREM TAX. (a) The
515	513		board shall impose a tax on all property in the district subject to
516	514		taxation by the district.
517	515		(b) The tax may be used to pay:
518	516		(1) indebtedness issued or assumed by the district;
519	517		and
520	518		(2) the maintenance and operating expenses of the
521	519		district.
522	520		(c) The district may not impose a tax to pay the principal of
523	521		or interest on revenue bonds issued under this chapter.
524	522		Sec. 1121.252. LIMITATION ON TAX RATE. (a) The tax rate on
525	523		all taxable property in the district for all purposes may not exceed
526	524		25 cents on each $100 valuation of the property according to the
527	525		most recent certified tax appraisal roll of the district.
528	526		(b) In setting the tax rate, the board shall consider
529	527		district income from sources other than taxation.
530	528		(c) Section 285.231, Health and Safety Code, does not apply
531	529		to the district.
532	530		Sec. 1121.253. REDUCTION IN AD VALOREM TAX RATE BY COUNTY.
533	531		The Cameron County Commissioners Court, in determining the county
534	532		ad valorem tax rate for the first year in which the district imposes
535	533		ad valorem taxes on property in the district, shall:
536	534		(1) take into account the decrease in the amount the
537	535		county will spend for health care purposes in that year because the
538	536		district is providing health care services previously provided or
539	537		paid for by the county; and
540	538		(2) reduce the county's ad valorem tax rate in
541	539		accordance with the decreased amount of required spending described
542	540		by Subdivision (1).
543	541		Sec. 1121.254. RESIDENCE HOMESTEAD TAX PROVISIONS
544	542		APPLICABLE. (a) The board shall ensure that all district
545	543		residents receive all ad valorem tax exemptions and limitations
546	544		that the residents are entitled to receive under the constitution
547	545		and the Tax Code.
548	546		(b) The board shall adopt an exemption from ad valorem
549	547		taxation by the district of a portion of the appraised value of a
550	548		district resident's residence homestead as provided by Section
551	549		11.13(d), Tax Code. Unless the board specifies a larger amount as
552	550		provided by Section 11.13(e), Tax Code, the amount of the exemption
553	551		required to be adopted by the board under this subsection is $3,000
554	552		of the appraised value of a district resident's residence
555	553		homestead. Section 11.13(f), Tax Code, applies to an exemption
556	554		adopted by the board under this subsection.
557	555		Sec. 1121.255. PROHIBITION ON PARTICIPATION IN TAX
558	556		INCREMENT FUND. The district may not enter into an agreement to
559	557		participate in a reinvestment zone designated by a municipality or
560	558		a county under Chapter 311, Tax Code.
561	559		Sec. 1121.256. TAX ASSESSOR-COLLECTOR. The board may
562	560		provide for the appointment of a tax assessor-collector for the
563	561		district or may contract for the assessment and collection of taxes
564	562		as provided by the Tax Code.
565	563		SUBCHAPTER G. DISSOLUTION
566	564		Sec. 1121.301. DISSOLUTION; ELECTION. (a) The district
567	565		may be dissolved only on approval of a majority of the voters voting
568	566		in an election held for that purpose.
569	567		(b) The board may order an election on the question of
570	568		dissolving the district and disposing of the district's assets and
571	569		obligations.
572	570		(c) The board shall order an election if the board receives
573	571		a petition requesting an election that is signed by at least 15
574	572		percent of the district's registered voters.
575	573		(d) The order calling the election must state:
576	574		(1) the nature of the election, including the
577	575		proposition that is to appear on the ballot;
578	576		(2) the date of the election;
579	577		(3) the hours during which the polls will be open; and
580	578		(4) the location of the polling places.
581	579		(e) Section 41.001(a), Election Code, does not apply to an
582	580		election ordered under this section.
583	581		Sec. 1121.302. NOTICE OF ELECTION. (a) The board shall
584	582		give notice of an election under this subchapter by publishing a
585	583		substantial copy of the election order in a newspaper with general
586	584		circulation in the district once a week for two consecutive weeks.
587	585		(b) The first publication must appear not later than the
588	586		30th day before the date set for the election.
589	587		Sec. 1121.303. BALLOT. The ballot for an election under
590	588		this subchapter must be printed to permit voting for or against the
591	589		proposition: "The dissolution of the Cameron County Healthcare
592	590		District."
593	591		Sec. 1121.304. ELECTION RESULTS. (a) If a majority of the
594	592		votes in an election under this subchapter favor dissolution, the
595	593		board shall order that the district be dissolved.
596	594		(b) If a majority of the votes in an election under this
597	595		subchapter do not favor dissolution, the board shall continue to
598	596		administer the district, and another election on the question of
599	597		dissolution may not be held before the first anniversary of the date
600	598		of the most recent election to dissolve the district.
601	599		Sec. 1121.305. TRANSFER OR ADMINISTRATION OF ASSETS.
602	600		(a) If a majority of the votes in an election under this subchapter
603	601		favor dissolution, the board shall:
604	602		(1) transfer the land, buildings, improvements,
605	603		equipment, and other assets belonging to the district to Cameron
606	604		County; or
607	605		(2) administer the property, assets, and debts of the
608	606		district until all money has been disposed of and all district debts
609	607		have been paid or settled.
610	608		(b) If the board makes the transfer under Subsection (a)(1),
611	609		the county assumes all debts and obligations of the district at the
612	610		time of the transfer and the district is dissolved.
613	611		(c) If Subsection (a)(1) does not apply and the board
614	612		administers the property, assets, and debts of the district under
615	613		Subsection (a)(2), the district is dissolved when all money has
616	614		been disposed of and all district debts have been paid or settled.
617	615		Sec. 1121.306. IMPOSITION OF TAX AND RETURN OF SURPLUS
618	616		TAXES. (a) After the board determines that the district is
619	617		dissolved, the board shall:
620	618		(1) determine the debt owed by the district; and
621	619		(2) impose on the property included in the district's
622	620		tax rolls a tax that is in proportion of the debt to the property
623	621		value.
624	622		(b) On the payment of all outstanding debts and obligations
625	623		of the district, the board shall order the secretary to return to
626	624		each district taxpayer the taxpayer's pro rata share of all unused
627	625		tax money.
628	626		(c) A taxpayer may request that the taxpayer's share of
629	627		surplus tax money be credited to the taxpayer's county taxes. If a
630	628		taxpayer requests the credit, the board shall direct the secretary
631	629		to transmit the funds to the tax assessor-collector for Cameron
632	630		County.
633	631		Sec. 1121.307. REPORT; DISSOLUTION ORDER. (a) After the
634	632		district has paid all its debts and has disposed of all its money
635	633		and other assets as prescribed by this subchapter, the board shall
636	634		file a written report with the Cameron County Commissioners Court
637	635		summarizing the board's actions in dissolving the district.
638	636		(b) Not later than the 10th day after the date the Cameron
639	637		County Commissioners Court receives the report and determines that
640	638		the requirements of this subchapter have been fulfilled, the
641	639		commissioners court shall enter an order dissolving the district
642	640		and releasing the board from any further duty or obligation.
643	641		SECTION 2. On the creation of the Cameron County Healthcare
644	642		District, or as soon as practicable after the district is created,
645	643		the Cameron County Commissioners Court shall transfer to the
646	644		district all operating funds, and any funds held in reserve for
647	645		operating expenses, that have been budgeted by the county to pay the
648	646		costs associated with administering a county program to provide to
649	647		residents of the district indigent health care assistance under
650	648		Chapter 61, Health and Safety Code, during the fiscal year in which
651	649		the district is created.
652	650		SECTION 3. Proof of publication of the notice required to
653	651		enact Chapter 1121, Special District Local Laws Code, as added by
654	652		this Act, under the provisions of Section 9, Article IX, Texas
655	653		Constitution, has been made in the manner and form provided by law
656	654		pertaining to the enactment of local and special laws, and the
657	655		notice is found and declared proper and sufficient to satisfy the
658	656		requirement.
659	657		SECTION 4. (a) Except as provided by Subsection (b) of
660	658		this section, this Act takes effect immediately if it receives a
661	659		vote of two-thirds of all the members elected to each house, as
662	660		provided by Section 39, Article III, Texas Constitution.
663	661		(b) If this Act does not receive the vote necessary for
664	662		immediate effect:
665	663		(1) this Act takes effect September 1, 2015; and
666	664		(2) Section 1121.109, Special District Local Laws
667	665		Code, as added by this Act, has no effect.
	666	+	______________________________ ______________________________
	667	+	President of the Senate Speaker of the House
	668	+	I hereby certify that S.B. No. 2034 passed the Senate on
	669	+	April 30, 2015, by the following vote: Yeas 30, Nays 1.
	670	+	______________________________
	671	+	Secretary of the Senate
	672	+	I hereby certify that S.B. No. 2034 passed the House on
	673	+	May 18, 2015, by the following vote: Yeas 123, Nays 15,
	674	+	two present not voting.
	675	+	______________________________
	676	+	Chief Clerk of the House
	677	+	Approved:
	678	+	______________________________
	679	+	Date
	680	+	______________________________
	681	+	Governor