By: Maxey H.B. No. 1714 73R4778 T A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation and administration of the Austin/Travis 1-3 County Health Services and Financing District. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. TITLE. This Act may be cited as the 1-6 Austin/Travis County Health Services and Financing District 1-7 Authorization Act. 1-8 SECTION 2. DEFINITIONS. In this Act: 1-9 A. "District" means the Health Services and Financing 1-10 District for which this Act provides. 1-11 B. "District Charter" means the resolution for creation of 1-12 the District, as prescribed by section 4(A) of this Act, and the 1-13 authority under which the District is operated after its 1-14 establishment. 1-15 C. "Board" means the Board of Directors for the District, as 1-16 provided in Section 6 of this Act. 1-17 D. "Eligible Indigent Resident" means a District resident 1-18 meeting the eligibility requirements developed by the District as 1-19 prescribed by section 7(A) of this Act. 1-20 E. "Health Services" means preventive care, primary care, 1-21 mobile emergency medical service, medical care (including but not 1-22 limited to physician services), hospital care, home care, nursing 1-23 care, medical supplies, medical equipment and medication, mental 1-24 health services, mental retardation services, environmental health 2-1 services, human services, public health services and/or related 2-2 health services. 2-3 SECTION 3. GENERAL AUTHORITY. The City of Austin and County 2-4 of Travis may constitute the Austin/Travis County Health Services 2-5 and Financing District. The District's purpose is to finance, 2-6 manage and/or furnish Health Services for eligible indigent 2-7 District residents and others as may be more fully set forth in the 2-8 District Charter including but not limited to the use of facilities 2-9 leased, owned or otherwise acquired by the District or of health 2-10 care providers under contract with the District. 2-11 SECTION 4. ESTABLISHMENT. 2-12 A. The District Charter. Before a District composed of the 2-13 entire territory of the City of Austin and the entire territory of 2-14 Travis County may be created, the Austin City Council and the 2-15 Travis County Commissioners' Court must adopt a District Charter 2-16 with contents as prescribed in section 4(B) of this Act. Upon 2-17 adoption of the District Charter, the Austin City Council and the 2-18 Travis County Commissioner's Court shall order elections to be held 2-19 on the same date to confirm the District's creation and authorize 2-20 the levy of taxes not to exceed the amounts prescribed in the 2-21 District Charter. 2-22 B. Contents of the District Charter. The District Charter 2-23 shall set forth: 2-24 i. that the District is to be created and is to 2-25 operate under Article III, Section 48-g of the State Constitution; 2-26 ii. any limitation of powers or authority, and any 2-27 additional responsibilities or duties of the District, beyond those 3-1 prescribed in section 7 of this Act; 3-2 iii. the initial amount of, and any additional 3-3 limitation on, the District's taxing authority as prescribed in 3-4 section 11 of this Act; 3-5 iv. the percentage, if any, above the minimum set 3-6 forth in this Act, of the federal nonfarm poverty level income 3-7 guidelines for determining the eligibility of indigent District 3-8 residents; 3-9 v. the amount by which property taxes shall be reduced 3-10 and sales tax revenues transferred by the City of Austin and by 3-11 Travis County in the first year the District is created as provided 3-12 in Section 11.K. of this Act; 3-13 vi. whether the District may own, lease or otherwise 3-14 acquire and operate directly or indirectly one or more hospitals 3-15 and related facilities: and 3-16 vii. such other items as may be desired. 3-17 C. Election. 3-18 i. An election ordered under this Act shall be held 3-19 not less than 45 days nor more than 60 days after the date on which 3-20 the election is ordered. 3-21 ii. The order calling the election must state: 3-22 (a) the nature of the election, including the 3-23 proposition that is to appear on the ballot; 3-24 (b) the date of the election; 3-25 (c) the hours during which the polls will be 3-26 open; and 3-27 (d) the location of the polling places. 4-1 iii. The Austin City Council and the Travis County 4-2 Commissioners Court shall give notice of the election by publishing 4-3 a substantial copy of the election order in a newspaper with 4-4 general circulation in the proposed district once a week for two 4-5 consecutive weeks. The first publication must appear at least 35 4-6 days before the date set for the election. 4-7 iv. The ballot for the election shall be printed to 4-8 permit voting for or against the proposition: "The creation of the 4-9 Austin/Travis County Health Services and Financing District and the 4-10 levy of annual ad valorem taxes for health services purposes at an 4-11 initial rate of ___cents, and never to exceed a maximum of 75 4-12 cents, on each $100 valuation of all taxable property in the 4-13 district, and a sales and use tax at an initial rate of ____%, and 4-14 never to exceed a maximum of ____%. 4-15 D. Election Dates Under This Act. Subsection (a), Section 4-16 41.001, Election Code, shall not apply to any election ordered 4-17 under this Act. 4-18 E. Creation of District. 4-19 i. A District shall be created and organized under 4-20 this Act if a majority of the votes cast by registered voters favor 4-21 the creation of the District. 4-22 ii. When the District is created, the Austin City 4-23 Council shall adopt a resolution, and the Travis County 4-24 Commissioners Court shall enter an order, that reads substantially 4-25 as follows: "Whereas, at an election held on the ____ day of 4-26 ____________, 19__ in (insert "Travis County," or "City of Austin," 4-27 as appropriate), State of Texas, there was submitted to the 5-1 registered voters the question of whether that territory should be 5-2 formed into the Austin/Travis County Health Services and Financing 5-3 District under state law; and "Whereas, as in the 5-4 election _______ votes were cast in favor of formation of the 5-5 District and _______ votes were cast against formation; and 5-6 "Whereas, the formation of the District received the affirmative 5-7 vote of the majority of the votes cast at the election as provided 5-8 by law; "Now, therefore, the (insert "City Council of Austin," or 5-9 "Commissioners Court of Travis County," as appropriate), State of 5-10 Texas, finds and orders that the tract described in this order has 5-11 been duly and legally formed into the Austin/Travis County Health 5-12 Services and Financing District under Article III, Section 48-g, of 5-13 the Texas Constitution, and has the powers vested by law in the 5-14 District." 5-15 F. Subsequent Elections. If a majority of those voting in 5-16 the election vote against creation of the District, another 5-17 election on the question of creating the District may not be held 5-18 before the first anniversary of the most recent election concerning 5-19 creation of the District. 5-20 G. Relation to Hospital Districts. Prior to the first 5-21 election to confirm the District's creation, no election shall be 5-22 held to create a hospital district which would be composed of or 5-23 include Travis County. Subsequent to the creation of the District, 5-24 no hospital district shall be created or expanded so as to overlap 5-25 the then current territory of the District, nor shall the 5-26 District's boundaries ever be expanded so as to overlap with the 5-27 current territory of a hospital district. 6-1 H. Date of Creation. The District is created on the date on 6-2 which the election approving its creation was held. 6-3 I. Name of the District. The name of the District shall be 6-4 the Austin/Travis County Health Services and Financing District; 6-5 provided, however, that the Board shall be authorized to rename the 6-6 District as it may deem appropriate. 6-7 SECTION 5. AMENDING THE DISTRICT CHARTER. 6-8 A. The District Charter may be amended by the Board, subject 6-9 to approval of both the Austin City Council and the Travis County 6-10 Commissioners Court. 6-11 B. In no event may the District Charter be amended to 6-12 increase the District's authority to levy taxes or issue bonds or 6-13 to change the percentage of the federal nonfarm poverty level 6-14 income guidelines for determining the eligibility of indigent 6-15 District residents without the approval of a majority of votes cast 6-16 in a District election. Any such District election shall be 6-17 conducted pursuant to the procedures prescribed by section 4(C) 6-18 (i)-(iii) of this Act. 6-19 SECTION 6. ADMINISTRATION OF THE DISTRICT. 6-20 A. The District shall be governed by a Board composed of 6-21 five members elected from single member districts. 6-22 B. At least 120 days before the election to create the 6-23 District, the Austin City Council and the Travis County 6-24 Commissioners Court shall divide the area of the proposed District 6-25 into five single member districts which are compact, contiguous, 6-26 and contain as nearly as practicable an equal population according 6-27 to the last preceding federal decennial census. 7-1 C. After the creation of the District, at least 120 days 7-2 before an election to be held following the calendar year in which 7-3 the federal decennial census is taken, the board shall redivide the 7-4 District into five single member districts if the census data 7-5 indicate that the population of the most populous district exceeds 7-6 the least populous district by more than 10 percent. 7-7 D. A candidate seeking to represent a single member district 7-8 must reside in the district he seeks to represent, and vacate his 7-9 office if he ceases to reside in that district. 7-10 E. The candidate receiving a majority of the votes cast in 7-11 each district is elected. If no candidate receives a majority of 7-12 the votes cast for that district, the board, or if the election is 7-13 the election for the initial board, the Travis County Commissioners 7-14 Court and the Austin City Council, shall order a runoff to be held 7-15 on the third Saturday immediately following the election, and only 7-16 the names of the two candidates receiving the highest number of 7-17 votes in the earlier election shall be listed on the ballot. The 7-18 candidate receiving the majority of the votes cast in the runoff 7-19 election is elected. 7-20 F. Three members of the initial board shall serve terms of 7-21 two years and two members shall serve terms of one year. The 7-22 members of the initial board shall draw lots to determine the 7-23 length of their terms. Thereafter, all members shall be elected to 7-24 staggered terms of two years. 7-25 G. Any vacancy on the board shall be filled by a special 7-26 election ordered by the board or by appointment made by the 7-27 remaining members of the board. A person appointed to fill a 8-1 vacancy must be a resident of the single member district. 8-2 SECTION 7. POWERS AND DUTIES. 8-3 A. Provision of Care. 8-4 i. The District shall furnish, directly or by contract 8-5 or other arrangement, medical and hospital care for the District's 8-6 eligible indigent residents. The District may furnish, directly or 8-7 by contract or other arrangement, Health Services for the 8-8 District's eligible indigent residents. "Health Services" means 8-9 preventative care, primary care, mobile emergency medical service, 8-10 medical care (including but not limited to physician services), 8-11 hospital care, home care, nursing care, medical supplies, medical 8-12 equipment and medication, mental health services, mental 8-13 retardation services, environmental health services, human 8-14 services, public health services and/or related services. Nothing 8-15 in this Act shall limit or reduce the duty or requirement for any 8-16 non governmental entity in the District to provide medical and 8-17 hospital care to District residents. No city or county in the 8-18 district shall be required to furnish medical or hospital care for 8-19 the District's residents. Nothing in this provision or any act or 8-20 action taken or made under the authority of this provision shall 8-21 contravene or nullify any provision of the Medical Practice Act of 8-22 Texas, Article 4495b, Vernon's Texas Civil Statutes. 8-23 ii. The District shall classify as "eligible indigent 8-24 residents," at a minimum, residents of the District whose average 8-25 family income, for the six months preceding the determination, is 8-26 at or below the percentage of the federal nonfarm poverty income 8-27 guidelines set forth in the District Charter and approved by a 9-1 majority of votes cast in a District election, but shall not 9-2 classify as eligible indigent residents individuals who are covered 9-3 by any other state or federal government program, including 9-4 Medicare or Medicaid, or by private health insurance. The 9-5 percentage of the federal nonfarm poverty income guidelines set 9-6 forth in the District Charter shall be not less than 100 percent. 9-7 iii. The District may implement a sliding fee scale, 9-8 based on income, for services provided either to eligible indigent 9-9 residents or to other individuals. 9-10 iv. The District shall establish a clear and simple 9-11 application procedure for determination of eligibility and shall 9-12 carry out eligibility determinations. The District is authorized 9-13 to collect from any ineligible patient, any person, entity or 9-14 estate liable for a patient's support, or any person or entity 9-15 liable for a patient's illness or injury, expenditures made on a 9-16 patient's behalf. 9-17 v. The District may provide, finance, organize, or 9-18 arrange for the provision of any or all Health Services to eligible 9-19 indigent residents or to any other individuals, groups or 9-20 governmental entities who contract with the District for Health 9-21 Services. The District may arrange to provide Health Services 9-22 directly or through any public or private health care provider 9-23 regardless of the provider's location, the purchase or provision of 9-24 insurance, or the administration of or an agreement with a managed 9-25 care program or programs. 9-26 vi. The District may require eligible indigent residents to 9-27 obtain services from a mandated provider of hospital or medical 10-1 care or other Health Services except in an emergency, when 10-2 medically inappropriate or when such services are not available 10-3 from the mandated provider. The District may require any provider, 10-4 including a mandated provider, to obtain approval from the District 10-5 before providing non emergency services to an eligible indigent 10-6 resident. 10-7 vii. The District is the payor of last resort and is 10-8 not liable for payment or assistance to an eligible indigent 10-9 resident if any other state, federal or private source of payment 10-10 is available. If another source of payment does not adequately 10-11 cover a service the District provides to an eligible indigent 10-12 resident, the District is responsible for paying for or for 10-13 providing the services for which other payment is not available. 10-14 B. The District shall be empowered: 10-15 i. As a public body corporate and politic, to exercise 10-16 public and essential governmental functions, having all the powers 10-17 necessary or convenient to carry out and effectuate the purposes 10-18 and provisions of this Act, including, but not limited to, the 10-19 powers listed in this section. 10-20 ii. To exercise all of the powers of a Non-Profit 10-21 Corporation under state law in furtherance of the District's 10-22 purposes under this Act, except as may be otherwise limited by the 10-23 state constitution, this Act, or the District Charter. 10-24 iii. To accept funds, services or property from the 10-25 City of Austin, Travis County, any political subdivision or other 10-26 governmental unit, individual or entity. 10-27 iv. To enter contracts of every nature with any public 11-1 or private individual or entity in furtherance of the District's 11-2 purposes, including but not limited to contracts to participate in 11-3 the City of Austin employee retirement system and health plans; 11-4 provided that construction contracts for more than $10,000 shall be 11-5 let only after competitive bidding as provided by Subchapter B, 11-6 Chapter 271, Local Government Code, as amended. 11-7 v. To issue bonds pursuant to section 10 of this Act. 11-8 vi. To levy taxes pursuant to section 11 of this Act. 11-9 vii. To issue bond and tax anticipation notes pursuant 11-10 to section 12 of this Act. 11-11 C. The open meetings law (Article 6252-17, Vernon's Texas 11-12 Civil Statutes), and the open records law (Article 6252-17a, 11-13 Vernon's Texas Civil Statutes) shall apply to the district. 11-14 D. If the District finances or provides care and treatment 11-15 for a sick, diseased, or injured person from a hospital district or 11-16 from a county or public hospital which is responsible for the 11-17 patient's care under the Indigent Health Care and Treatment Act 11-18 (Chapter 61, Health and Safety Code) and which is outside the 11-19 boundaries of the District, then the hospital district, county, or 11-20 public hospital shall reimburse the District for the care and 11-21 treatment provided. 11-22 E. If the District finances or provides any care or 11-23 treatment for a person confined in a jail facility who is not a 11-24 resident of the District, then the sheriff or police chief of the 11-25 county or municipality which operates the jail facility shall 11-26 reimburse the District for the care and treatment provided. 11-27 F. The District shall be within the definition of "a unit of 12-1 government" as defined by the Texas Tort Claims Act, as amended 12-2 (Chapter 101, Civil Practice and Remedies Code), and all operations 12-3 of the District are deemed to be essential governmental functions 12-4 and not proprietary functions for all purposes, including the Texas 12-5 Tort Claims Act. 12-6 SECTION 8. DISTRICT FINANCES. 12-7 A. Annually, the Board shall have an audit made of the 12-8 financial condition of the District, and the audit shall constitute 12-9 a public record. 12-10 B. Annually, the District shall prepare a proposed budget, 12-11 and the Board shall hold a public hearing on the proposed annual 12-12 budget. After the hearing, the Board shall adopt a budget, making 12-13 any changes in the proposed budget that in its judgment the 12-14 interests of the taxpayers demand. The budget shall be effective 12-15 upon adoption by the Board and is subject to amendment by the 12-16 Board. 12-17 C. Except as provided elsewhere in this Act, the District 12-18 may not incur a debt payable from revenues of the District other 12-19 than the revenues on hand or to be on hand in the current and 12-20 immediately following fiscal year of the District. 12-21 D. The Board may invest operating, depreciation, or building 12-22 reserves only in funds or securities specified by Article 836, 837, 12-23 or 842a-2, Vernon's Texas Civil Statutes. 12-24 E. Depository. 12-25 i. The Board shall name at least one bank to serve as 12-26 depository for District funds. 12-27 ii. District funds, other than those specified 13-1 elsewhere in this Act, and those transmitted to a bank of payment 13-2 for bonds or obligations issued or assumed by the District, shall 13-3 be deposited as received with the depository bank and must remain 13-4 on deposit. This subsection does not limit the power of the Board 13-5 to place a portion of District funds on time deposit, to purchase 13-6 certificates of deposit, or to invest funds as prescribed in 13-7 section 8(D) of this Act. 13-8 iii. Before the District deposits funds in a bank in 13-9 an amount that exceeds the maximum amount secured by the Federal 13-10 Deposit Insurance Corporation, the bank must execute a bond or 13-11 other security in an amount sufficient to secure from loss the 13-12 District funds that exceed the amount secured by the Federal 13-13 Deposit Insurance Corporation. 13-14 SECTION 9. DISSOLUTION OF DISTRICT. 13-15 A. Dissolution. The District may be dissolved as provided 13-16 by this section. 13-17 i. The Board may order an election on the question of 13-18 dissolving the District and disposing of the District's assets and 13-19 obligations. The Board shall order an election if the Board 13-20 receives a petition requesting an election that is signed by a 13-21 number of residents of the District equal to at least 15 percent of 13-22 the registered voters in the District. 13-23 ii. The election shall be held not later than the 60th 13-24 day after the date on which the election is ordered. 13-25 iii. The ballot for the election shall be printed to 13-26 permit voting for or against the proposition: "The (insert name) 13-27 Health Services and Financing District shall be dissolved." The 14-1 election shall be conducted pursuant to sections 4(C)(i)-(iii) and 14-2 4(D) of this Act. 14-3 iv. If a majority of the votes in the election favor 14-4 dissolution, the Board shall find that the District is dissolved. 14-5 If a majority of the votes in the election do not favor 14-6 dissolution, the Board shall continue to administer the District 14-7 and another election on the question of dissolution may not be held 14-8 before the first anniversary of the most recent election to 14-9 dissolve the District. 14-10 v. If a majority of the votes in the election favor 14-11 dissolution, the Board may transfer any land, buildings, 14-12 improvements, equipment, and other assets that belong to the 14-13 District to the City of Austin, Travis County, or another 14-14 governmental entity in the District, or the Board shall administer 14-15 the property, assets, and debts in accordance with section 9(B) of 14-16 this Act. If the District transfers the land, buildings, 14-17 improvements, equipment, and other assets to one or more other 14-18 governmental entities, the entities assume all debts and 14-19 obligations of the District at the time of the transfer, pro rata 14-20 in proportion to the value of the transferred land, buildings, 14-21 improvements, equipment or other assets, and the District is 14-22 dissolved. No governmental entity shall be required to accept a 14-23 transfer from the District. 14-24 B. Administration of Property, Debts, and Assets after 14-25 Dissolution. 14-26 i. If the District does not transfer the land, 14-27 buildings, improvements, equipment, and other assets to one or more 15-1 governmental entities in the District, the Board shall continue to 15-2 control and administer the property, debts, and assets of the 15-3 District until all funds have been disposed of and all District 15-4 debts have been paid or settled. 15-5 ii. After the Board finds that the District is 15-6 dissolved, the Board shall: 15-7 (a) determine the debt owed by the 15-8 District: and 15-9 (b) impose on the property included in the 15-10 District's tax rolls a tax that is in proportion of the debt to the 15-11 property value. 15-12 iii. The Board may institute a suit to enforce payment 15-13 of taxes and to foreclose liens to secure the payment of taxes due 15-14 the District. 15-15 iv. When all outstanding debts and obligations of the 15-16 District are paid, the Board shall order the secretary to return 15-17 the pro rata share of all unused tax money to each District 15-18 taxpayer. A taxpayer may request that the taxpayer's share of 15-19 surplus tax money be credited to the taxpayer's county taxes. If a 15-20 taxpayer requests the credit, the Board shall direct the secretary 15-21 to transmit the funds to the county tax assessor-collector. 15-22 v. After the District has paid all its debts and has 15-23 disposed of all its assets and funds as prescribed by this section, 15-24 the Board shall file a written report with the Austin City Council, 15-25 and, the Travis County Commissioners Court setting forth a summary 15-26 of the Board's actions in dissolving the District. Not later than 15-27 the 10th day after it receives the report and determines that the 16-1 requirements of this section have been fulfilled, the Austin City 16-2 Council and the Travis County Commissioners Court, shall each enter 16-3 an order dissolving the District. 16-4 SECTION 10. BONDS. 16-5 A. General Obligation Bonds. 16-6 i. The Board may issue and sell general obligation 16-7 bonds authorized by an election in the name and on the full faith 16-8 and credit of the District to purchase, construct, acquire, repair, 16-9 equip or renovate buildings or improvements, or acquire sites, for 16-10 District purposes whether the buildings, improvements, equipment or 16-11 sites are owned by the District or another public or tax-exempt 16-12 entity. 16-13 ii. At the time general obligation bonds are issued by 16-14 the District, the Board shall levy a tax. 16-15 (a) The tax must be sufficient to create an 16-16 interest and sinking fund to pay the principal of and interest on 16-17 the bonds as they mature. 16-18 (b) In any year, the tax together with any other 16-19 tax the District levies may not exceed the limit approved by the 16-20 voters at the election authorizing the levy of taxes. 16-21 iii. The District may issue general obligation bonds 16-22 only if the bonds are authorized by a majority of the qualified 16-23 voters of the District voting at an election called and held for 16-24 that purpose. 16-25 (a) The board may order a bond election. The 16-26 order calling the election must state the nature and date of the 16-27 election, the hours during which the polls will be open, the 17-1 location of the polling places, the amount of bonds to be 17-2 authorized, and the maximum maturity of the bonds. 17-3 (b) Notice of a bond election shall be given as 17-4 provided by Article 704, Revised Statutes. 17-5 (c) The Board shall canvass the returns and 17-6 declare the results of the election. 17-7 B. Revenue Bonds. 17-8 i. The Board may issue revenue bonds to purchase, 17-9 construct, acquire, lease, repair, equip, or renovate buildings or 17-10 improvements, or acquire sites, to be used for District purposes 17-11 whether the buildings, improvements, equipment or sites are owned 17-12 by the District or another public or tax-exempt entity. 17-13 ii. The bonds must be payable from and secured by a 17-14 pledge of all or part of the revenues derived from the operation of 17-15 the district or the financed facilities. The bonds may be 17-16 additionally secured by a mortgage or deed of trust lien on all or 17-17 part of District property or the financed facilities. 17-18 iii. The bonds must be issued in the manner provided 17-19 by sections 264.042, 264.043, 264.046, 264.047, 264.048 and 17-20 264.049, County Hospital Authority Act (Chapter 264, Health and 17-21 Safety Code), for issuance of revenue bonds by county hospital 17-22 authorities. 17-23 C. Refunding Bonds. 17-24 i. Refunding bonds of the District may be issued to 17-25 refund an outstanding indebtedness the District has issued or 17-26 assumed. 17-27 ii. The bonds must be issued in the manner provided by 18-1 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 18-2 (Article 717k-3, Vernon's Texas Civil Statutes). 18-3 iii. The refunding bonds may be sold and the proceeds 18-4 applied to the payment of outstanding indebtedness or may be 18-5 exchanged in whole or in part for not less than a similar principal 18-6 amount of outstanding indebtedness. If the refunding bonds are to 18-7 be sold and the proceeds applied to the payment of outstanding 18-8 indebtedness, the refunding bonds must be issued and payments made 18-9 in the manner provided by Chapter 503, Acts of the 54th 18-10 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas 18-11 Civil Statutes). 18-12 D. Interest and Maturity. District bonds must mature not 18-13 more than 50 years after the date of their issuance and must bear 18-14 interest at a rate not to exceed that provided by Chapter 3, Acts 18-15 of the 61st Legislature; Regular Session, 1969 (Article 717k-2, 18-16 Vernon's Texas Civil Statutes). 18-17 E. Execution of Bonds. The president of the Board shall 18-18 execute the bonds in the name of the District, and the secretary of 18-19 the Board shall countersign the bonds, in the manner provided by 18-20 the Texas Uniform Facsimile Signature of Public Officials Act 18-21 (Article 717j-1, Vernon's Texas Civil Statutes). 18-22 F. Approval and Registration of Bonds. 18-23 i. District bonds are subject to the same requirements 18-24 with regard to approval by the attorney general and registration by 18-25 the comptroller of public accounts as the law provides for approval 18-26 and registration of bonds issued by counties. 18-27 ii. On approval by the attorney general and 19-1 registration by the comptroller of public accounts, the bonds are 19-2 incontestable for any cause. 19-3 G. Bonds as Investments. District bonds and indebtedness 19-4 assumed by the District are legal and authorized investments for: 19-5 i. banks; 19-6 ii. savings banks; 19-7 iii. trust companies; 19-8 iv. savings and loan associations; 19-9 v. insurance companies; 19-10 vi. fiduciaries; 19-11 vii. trustees; 19-12 viii. guardians; and 19-13 ix. funds of cities, counties, school Districts, and 19-14 other political subdivisions of the state and other public funds of 19-15 the state and its agencies, including the permanent school fund. 19-16 H. Bonds as Security for Deposits. District bonds are 19-17 eligible to secure deposits of public funds of the state and of 19-18 cities, counties, school Districts, and other political 19-19 subdivisions of the state. The bonds are lawful and sufficient 19-20 security for deposits to the extent of their value if accompanied 19-21 by all unmatured coupons. 19-22 I. Tax Status of Bonds. Since the District is a public 19-23 entity performing an essential public function, bonds issued by the 19-24 District, any transaction relating to the bonds, and profits made 19-25 in the sale of the bonds are free from taxation by the state or by 19-26 any city, county, special District, or other political subdivision 19-27 of the state. 20-1 SECTION 11. TAXING AUTHORITY. 20-2 A. Levy of Taxes. 20-3 i. Subsequent to the initial levy of property taxes, 20-4 the Board may annually impose property taxes in an amount not to 20-5 exceed the lesser of the maximum limit approved by the voters at 20-6 the election authorizing the levy of taxes and the maximum limit 20-7 approved in the District Charter. The property tax rate may not 20-8 exceed 75 cents on each $100 valuation of all taxable property in 20-9 the District. 20-10 ii. The Board may levy a tax on the receipts from the 20-11 sale at retail of taxable items as defined in Chapter 151, Tax 20-12 Code, within the District at a rate not to exceed the maximum limit 20-13 approved by the voters at the election authorizing the levy of 20-14 taxes, and an excise tax on the use, storage, or other consumption 20-15 within the District of taxable items as defined in Chapter 151, Tax 20-16 Code, purchased, leased, or rented from a retailer at a rate not to 20-17 exceed the maximum limit approved by the voters at the election 20-18 authorizing the levy of taxes. Such sales and use taxes shall in 20-19 no event exceed the lesser of the maximum limit approved by the 20-20 voters at the election authorizing the levy of taxes and the amount 20-21 approved in the District Charter. 20-22 B. The taxes may be used to pay: 20-23 i. the indebtedness issued or assumed by the District; 20-24 ii. the maintenance and operating expenses of the 20-25 District; and 20-26 iii. the funding of liability reserves or other 20-27 reserve funds deemed necessary by the District. 21-1 C. The Board may not impose taxes to pay the principal of or 21-2 interest on revenue bonds issued under this Act. 21-3 D. Notwithstanding section 26.12(d) of the Property Tax 21-4 Code, the Board may impose taxes for the entire year in which the 21-5 District is created, as if the District had been created on January 21-6 1 of that year. 21-7 E. In adopting the tax rate, the Board shall consider the 21-8 income of the District from sources other than taxation. 21-9 F. The Tax Code governs the appraisal, assessment, and 21-10 collection of District taxes except as provided in subsection 11(E) 21-11 above. 21-12 G. With regard to the property tax authorized by this Act, 21-13 the Board may provide for the appointment of a tax 21-14 assessor-collector for the District or may contract for the 21-15 assessment and collection of taxes as provided by the Tax Code. 21-16 H. The provisions of Chapter 323, Tax Code, apply to the 21-17 sales and use tax authorized by this Act to the extent not 21-18 inconsistent with this Act. 21-19 I. A tax imposed under this Act takes effect on the first 21-20 day of the first calendar quarter occurring after the expiration of 21-21 the first complete calendar quarter occurring after the date on 21-22 which the comptroller receives notice of the results of an election 21-23 concerning the tax. The District shall deliver such notice to the 21-24 comptroller within 10 days after an election on the adoption, 21-25 abolition, or change in the rate of the tax, or on any change in 21-26 boundaries of the District. The notice must the following 21-27 information: 22-1 i. The date of the election; 22-2 ii. The proposition on which the vote was held; 22-3 iii. The total number of votes cast for and against 22-4 the proposition: and 22-5 iv. The number of votes by which the proposition was 22-6 approved. 22-7 J. If within 10 days of the receipt of the notice required 22-8 by subsection (J) the comptroller notifies the District that more 22-9 time is required, the effective date of the tax is delayed for an 22-10 additional calendar quarter. 22-11 K. For the first year the District is created, Travis County 22-12 and the City of Austin shall each roll back or reduce their 22-13 respective property tax rates and transfer sales tax revenues in an 22-14 amount equal to a dollar for dollar transfer of the funding amount 22-15 from the immediately preceding fiscal year associated with the 22-16 programs and services transferred from each entity to the District. 22-17 SECTION 12. BOND AND TAX ANTICIPATION NOTES. 22-18 A. In the event of a lack of funds to meet operating or 22-19 maintenance requirements, to repay the principal and interest on 22-20 any bonds which it may have issued, or for its other needs, the 22-21 District may declare a state of emergency. Upon such declaration 22-22 of emergency, the District may issue negotiable tax or bond 22-23 anticipation notes, which may bear interest at any rate permitted 22-24 by law and which shall mature within one year of issuance. 22-25 B. Tax anticipation notes may be issued for any purpose for 22-26 which the District is authorized to levy taxes pursuant to this 22-27 Act, and tax anticipation notes shall be secured with the proceeds 23-1 of taxes to be levied and/or collected by the District in the 23-2 succeeding 12-month period. The District may covenant with the 23-3 purchasers of the tax anticipation notes that the District will 23-4 levy a sufficient tax to pay principal of and interest on the notes 23-5 and pay the costs of collecting the taxes. 23-6 C. Bond anticipation notes may be issued for any purpose for 23-7 which the District is authorized to issue bonds pursuant to this 23-8 Act. The District may covenant with the purchasers of the bond 23-9 anticipation notes that the District will use the proceeds of sale 23-10 of any bonds in the process of issuance for the purpose of 23-11 refunding the notes. 23-12 SECTION 13. LOCAL GOVERNMENT CONTRIBUTIONS. The City of 23-13 Austin, Travis County, and any political subdivision or other 23-14 governmental entity may contribute funds, services or property to 23-15 the District. Any transfer of funds from a municipally-owned 23-16 utility shall not be disallowed for any reason by any regulatory 23-17 body or agency in any rate proceeding. The District may make or 23-18 accept loans and grants of public or private funds or property in 23-19 furtherance of the District's purpose. 23-20 SECTION 14. EFFECTIVE DATE. This Act takes effect on the 23-21 date on which the constitutional amendment proposed by ____J.R. 23-22 No.____, 73rd Legislature, Regular Session, takes effect. If that 23-23 amendment is not approved by the voters, this Act shall have no 23-24 effect. 23-25 SECTION 15. EMERGENCY. The importance of this legislation 23-26 and the crowded condition of the calendars in both houses create an 23-27 emergency and an imperative public necessity that the 24-1 constitutional rule requiring bills to be read on three several 24-2 days in each house be suspended, and this rule is hereby suspended.