By: Barrientos S.B. No. 1164
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.