77R9509 JAT-D
By Zbranek H.B. No. 602
Substitute the following for H.B. No. 602:
By McCall C.S.H.B. No. 602
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation and financing of hospital districts in
1-3 small counties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading to Subchapter E, Chapter 285, Health
1-6 and Safety Code, is amended to read as follows:
1-7 SUBCHAPTER E. [HOSPITAL DISTRICT] SALES AND USE TAX
1-8 TO LOWER AD VALOREM TAXES
1-9 SECTION 2. Section 285.061(a), Health and Safety Code, is
1-10 amended to read as follows:
1-11 (a) A hospital district that is authorized to impose ad
1-12 valorem taxes may adopt a sales and use tax to lower the district's
1-13 ad valorem taxes at an election held as provided by this
1-14 subchapter. A district may[,] change the rate of the [its] sales
1-15 and use tax[,] or abolish the [its] sales and use tax at an
1-16 election held as provided by this subchapter. Subject to the
1-17 limitations provided by Subsections (c) and (d), the district may
1-18 impose the tax in increments of one-eighth of one percent, with a
1-19 minimum tax of one-eighth of one percent and a maximum tax of two
1-20 percent.
1-21 SECTION 3. Section 285.062(c), Health and Safety Code, is
1-22 amended to read as follows:
1-23 (c) At an election to adopt the tax, the ballot shall be
1-24 prepared to permit voting for or against the proposition: "The
2-1 adoption of a local sales and use tax in (name of district) at the
2-2 rate of (proposed tax rate) percent to be used to reduce the
2-3 district property taxes."
2-4 SECTION 4. Chapter 285, Health and Safety Code, is amended by
2-5 adding Subchapter L to read as follows:
2-6 SUBCHAPTER L. SALES AND USE TAX TO RAISE REVENUE
2-7 FOR DISTRICTS IN SMALL COUNTIES
2-8 Sec. 285.161. TAX AUTHORIZED. (a) A majority of voters in a
2-9 hospital district created under general or special law of which all
2-10 or a majority of the territory is located in a county or counties
2-11 each with a population of 75,000 or less may impose a sales and use
2-12 tax to raise revenue if the imposition is authorized at an election
2-13 under this subchapter.
2-14 (b) A district may not adopt a tax under this subchapter or
2-15 increase the rate of the tax if as a result of the adoption or
2-16 increase the combined rate of all sales and use taxes imposed by
2-17 the district and other political subdivisions of this state having
2-18 territory in the district would exceed two percent at any location
2-19 in the district.
2-20 Sec. 285.162. TAX RATE; CHANGE IN RATE. (a) A district may
2-21 impose the tax in increments of one-eighth of one percent, with a
2-22 minimum rate of one-eighth of one percent and a maximum rate of two
2-23 percent.
2-24 (b) A district may increase the rate of the tax to a maximum
2-25 of two percent or decrease the rate of the tax to a minimum of
2-26 one-eighth of one percent if the change is approved by a majority
2-27 of the voters of the district at an election called for that
3-1 purpose.
3-2 Sec. 285.163. TAX ELECTION PROCEDURES. (a) An election is
3-3 called by the adoption of a resolution by the governing body of the
3-4 district. The governing body shall call an election if at least
3-5 five percent of the number of registered voters in the district
3-6 petition the governing body to call the election.
3-7 (b) At an election to adopt the tax, the ballot shall be
3-8 prepared to permit voting for or against the proposition: "The
3-9 adoption of a local sales and use tax to raise revenue in (name of
3-10 district) at the rate of (proposed tax rate) percent."
3-11 (c) At an election to abolish the tax, the ballot shall be
3-12 prepared to permit voting for or against the proposition: "The
3-13 abolition of the local sales and use tax to raise revenue in (name
3-14 of district)."
3-15 (d) At an election to change the rate of the tax, the ballot
3-16 shall be prepared to permit voting for or against the proposition:
3-17 "The (increase or decrease, as applicable) in the rate of the local
3-18 sales and use tax to raise revenue imposed by (name of district)
3-19 from (tax rate on election date) percent to (proposed tax rate)
3-20 percent."
3-21 Sec. 285.164. ELECTION IN OTHER TAXING AUTHORITY. (a) In
3-22 this section, "taxing authority" means any entity authorized to
3-23 impose a local sales and use tax.
3-24 (b) If a district or proposed district is included within
3-25 the boundaries of another taxing authority and the adoption or
3-26 increase of the tax under this subchapter would result in a
3-27 combined tax rate by the district and other political subdivisions
4-1 of this state of more than two percent at any location in the
4-2 district, an election to approve or increase the tax under this
4-3 subchapter has no effect unless:
4-4 (1) one or more of the other taxing authorities holds
4-5 an election in accordance with the law governing that authority on
4-6 the same date as the election under this chapter to reduce the tax
4-7 rate of that authority to a rate that will result in a combined tax
4-8 rate by the district and other political subdivisions of not more
4-9 than two percent at any location in the district; and
4-10 (2) the combined tax rate is reduced to not more than
4-11 two percent as a result of that election.
4-12 (c) This section does not permit a taxing authority to
4-13 impose taxes at differential tax rates within the territory of the
4-14 authority.
4-15 Sec. 286.165. USE OF TAX. The taxes imposed may be used to
4-16 pay:
4-17 (1) the indebtedness issued or assumed by the
4-18 district; and
4-19 (2) the maintenance and operating expenses of the
4-20 district.
4-21 Sec. 285.166. EFFECTIVE DATE. (a) The adoption or abolition
4-22 of the tax or a change in the rate of the tax takes effect on the
4-23 first day of the first calendar quarter occurring after the
4-24 expiration of the first complete calendar quarter occurring after
4-25 the date the comptroller receives a notice of the results of the
4-26 election.
4-27 (b) If the comptroller determines that an effective date
5-1 provided by Subsection (a) will occur before the comptroller can
5-2 reasonably take the action required to begin collecting the tax or
5-3 to implement the abolition of the tax or the change in the rate of
5-4 the tax, the effective date may be extended by the comptroller
5-5 until the first day of the next calendar quarter.
5-6 Sec. 285.167. COUNTY SALES AND USE TAX ACT APPLICABLE.
5-7 Except to the extent that a provision of this chapter applies,
5-8 Chapter 323, Tax Code, applies to the tax authorized by this
5-9 chapter in the same manner as that chapter applies to the tax
5-10 authorized by that chapter.
5-11 SECTION 5. Section 286.022(a), Health and Safety Code, is
5-12 amended to read as follows:
5-13 (a) The petition prescribed by Section 286.021 must show:
5-14 (1) that the district is to be created and is to
5-15 operate under Article IX, Section 9, of the Texas Constitution;
5-16 (2) the name of the proposed district;
5-17 (3) the district's boundaries as designated by metes
5-18 and bounds or other sufficient legal description;
5-19 (4) that none of the territory in the district is
5-20 included in another hospital district;
5-21 (5) the names of the temporary directors the
5-22 commissioners court must appoint under Section 286.030 or a request
5-23 that the commissioners court appoint temporary directors;
5-24 (6) whether the district is to impose a property tax
5-25 and the maximum tax rate to be voted on at the creation election,
5-26 which may not exceed 75 cents on the $100 valuation of all taxable
5-27 property in the district;
6-1 (7) whether the district is to impose a sales and use
6-2 tax under Subchapter I and the maximum tax rate to be voted on at
6-3 the creation election, which may not exceed the rate allowed under
6-4 that subchapter;
6-5 (8) the method by which the permanent directors will
6-6 be elected, as provided by Subsection (c); and
6-7 (9) [(8)] the mailing address of each petitioner.
6-8 SECTION 6. Sections 286.023(d) and (e), Health and Safety
6-9 Code, are amended to read as follows:
6-10 (d) At the time and place set for the hearing, the
6-11 commissioners court shall consider the petition. The commissioners
6-12 court shall grant the petition if the court finds that the petition
6-13 is in proper form and contains the information required by Section
6-14 286.022. The commissioners court may grant a petition proposing
6-15 creation of a hospital district that imposes a sales and use tax
6-16 under Subchapter I only if all or a majority of the territory of
6-17 the district is located in a county or counties each with a
6-18 population of 75,000 or less.
6-19 (e) If a petition is granted, the commissioners court shall
6-20 order an election to confirm the district's creation and to
6-21 authorize the levy of a tax not to exceed the maximum tax rate
6-22 [amount] prescribed by the petition [on each $100 of the taxable
6-23 value of all taxable property in the district].
6-24 SECTION 7. Section 286.026, Health and Safety Code, is
6-25 amended to read as follows:
6-26 Sec. 286.026. BALLOT PROPOSITION. (a) The ballot for an
6-27 [the] election proposing to create a hospital district that imposes
7-1 a property tax shall be printed to permit voting for or against the
7-2 proposition: "The creation of the __________ (name of district)
7-3 Hospital District and the levy of annual property taxes for
7-4 hospital purposes at a rate not to exceed __________ (insert the
7-5 amount prescribed by the petition, not to exceed 75 cents) cents on
7-6 each $100 valuation of all taxable property in the district."
7-7 (b) The ballot for an election proposing to create a
7-8 hospital district that imposes a sales and use tax under Subchapter
7-9 I shall be printed to permit voting for or against the proposition:
7-10 "The creation of the __________ (name of district) Hospital
7-11 District and the levy of sales and use taxes for hospital purposes
7-12 at a rate not to exceed __________ (insert the amount prescribed by
7-13 the petition, not to exceed the amount allowed under Subchapter I)
7-14 percent."
7-15 (c) If a bond proposition is submitted to the voters, the
7-16 ballot for the election shall contain the proposition prescribed by
7-17 Subsection (a) or (b) followed by [be printed to permit voting for
7-18 or against the proposition]: "[The creation of the __________
7-19 (name of district) Hospital District, the levy of annual taxes for
7-20 hospital purposes at a rate not to exceed __________ (insert the
7-21 amount prescribed by the petition, not to exceed 75 cents) cents on
7-22 each $100 valuation of all taxable property in the district,] and
7-23 the issuance of bonds in an amount not to exceed __________ (insert
7-24 the amount prescribed by the petition or the commissioners court's
7-25 order) and to mature not later than __________ (insert the date
7-26 prescribed by the petition or the commissioners court's order)."
7-27 SECTION 8. Section 286.101, Health and Safety Code, is
8-1 amended by adding Subsection (g) to read as follows:
8-2 (g) If a district imposes a sales and use tax under
8-3 Subchapter I, the territory added to the district must be located
8-4 in a county or counties each with a population of 75,000 or less,
8-5 and the addition of the territory may not result in a combined tax
8-6 rate by the hospital district and other political subdivisions of
8-7 this state of more than two percent at any location in the
8-8 district.
8-9 SECTION 9. Sections 286.104(b) and (c), Health and Safety
8-10 Code, are amended to read as follows:
8-11 (b) After the board finds that the district is dissolved,
8-12 the board shall[:]
8-13 [(1)] determine the debt owed by the district[;] and:
8-14 (1) if the district imposes a property tax,
8-15 [(2)] impose on the property included in the district's tax rolls
8-16 a tax that is in proportion of the debt to the property value; or
8-17 (2) if the district imposes a sales and use tax under
8-18 Subchapter I, continue the tax until the debt is repaid.
8-19 (c) The board may institute a suit to enforce payment of
8-20 taxes and to foreclose liens to secure the payment of property
8-21 taxes due the district.
8-22 SECTION 10. Section 286.105, Health and Safety Code, is
8-23 amended to read as follows:
8-24 Sec. 286.105. RETURN OF SURPLUS PROPERTY TAX MONEY. (a)
8-25 When all outstanding debts and obligations of the district are
8-26 paid, the board shall order the secretary to return the pro rata
8-27 share of all unused property tax money to each district taxpayer.
9-1 (b) A taxpayer may request that the taxpayer's share of
9-2 surplus property tax money be credited to the taxpayer's county
9-3 taxes. If a taxpayer requests the credit, the board shall direct
9-4 the secretary to transmit the funds to the county tax
9-5 assessor-collector.
9-6 SECTION 11. Section 286.124(b), Health and Safety Code, is
9-7 amended to read as follows:
9-8 (b) The proposed budget must contain a complete financial
9-9 statement, including a statement of:
9-10 (1) the outstanding obligations of the district;
9-11 (2) the amount of cash on hand to the credit of each
9-12 fund of the district;
9-13 (3) the amount of money received by the district from
9-14 all sources during the previous year;
9-15 (4) the amount of money available to the district from
9-16 all sources during the ensuing year;
9-17 (5) the amount of the balances expected at the end of
9-18 the year in which the budget is being prepared;
9-19 (6) the estimated amount of revenues and balances
9-20 available to cover the proposed budget; and
9-21 (7) the estimated property tax rate that will be
9-22 required, if the district imposes a property tax.
9-23 SECTION 12. The heading to Subchapter H, Chapter 286, Health
9-24 and Safety Code, is amended to read as follows:
9-25 SUBCHAPTER H. PROPERTY TAXES
9-26 SECTION 13. Section 286.161, Health and Safety Code, is
9-27 amended to read as follows:
10-1 Sec. 286.161. TAX AUTHORIZED [LEVY OF TAXES]. (a) A
10-2 majority of voters in a district or proposed district may, at the
10-3 creation election under Subchapter B or in conjunction with any
10-4 other district election, authorize the district to impose a
10-5 property tax.
10-6 (b) The board annually may impose property taxes in an
10-7 amount not to exceed the limit approved by the voters at the
10-8 election authorizing the levy of taxes.
10-9 (c) [(b)] The tax rate for all purposes may not exceed 75
10-10 cents on each $100 valuation of all taxable property in the
10-11 district.
10-12 (d) [(c)] The taxes may be used to pay:
10-13 (1) the indebtedness issued or assumed by the
10-14 district; and
10-15 (2) the maintenance and operating expenses of the
10-16 district.
10-17 (e) [(d)] The district may not impose taxes to pay the
10-18 principal of or interest on revenue bonds issued under this
10-19 chapter.
10-20 SECTION 14. Chapter 286, Health and Safety Code, is amended
10-21 by amending Subchapter I and adding Subchapter X to read as
10-22 follows:
10-23 SUBCHAPTER I. SALES AND USE TAXES FOR DISTRICTS
10-24 IN SMALL COUNTIES
10-25 Sec. 286.171. TAX AUTHORIZED. (a) A majority of voters in a
10-26 proposed district of which all or a majority of the territory is
10-27 located in a county or counties each with a population of 75,000 or
11-1 less may impose a sales and use tax if the imposition is authorized
11-2 at the creation election under Subchapter B.
11-3 (b) An election to authorize the imposition of a sales and
11-4 use tax under this subchapter may be held only in conjunction with
11-5 a creation election under Subchapter B.
11-6 Sec. 286.172. LIMITATION ON COMBINED TAX RATE; EFFECT ON
11-7 ELECTIONS. An election to create a hospital district and to
11-8 authorize the imposition of a sales and use tax under this
11-9 subchapter, or an election to change the tax rate under Section
11-10 286.174, has no effect if as a result of the adoption of the sales
11-11 and use tax or the change in the rate the combined rate of all
11-12 sales and use taxes imposed by the district and other political
11-13 subdivisions of this state having territory in the district would
11-14 exceed two percent at any location in the district.
11-15 Sec. 286.173. ELECTION IN OTHER TAXING AUTHORITY. (a) In
11-16 this section, "taxing authority" means any entity authorized to
11-17 impose a local sales and use tax.
11-18 (b) If a district or proposed district is included within
11-19 the boundaries of another taxing authority and the adoption or
11-20 increase of the tax under this subchapter would result in a
11-21 combined tax rate by the district and other political subdivisions
11-22 of this state of more than two percent at any location in the
11-23 district, an election to approve or increase the tax under this
11-24 subchapter has no effect unless:
11-25 (1) one or more of the other taxing authorities holds
11-26 an election in accordance with the law governing that authority on
11-27 the same date as the election under this chapter to reduce the tax
12-1 rate of that authority to a rate that will result in a combined tax
12-2 rate by the district and other political subdivisions of not more
12-3 than two percent at any location in the district; and
12-4 (2) the combined tax rate is reduced to not more than
12-5 two percent as a result of that election.
12-6 (c) This section does not permit a taxing authority to
12-7 impose taxes at differential tax rates within the territory of the
12-8 authority.
12-9 Sec. 286.174. TAX RATE; CHANGE IN RATE. (a) A district may
12-10 impose the tax in increments of one-eighth of one percent, with a
12-11 minimum rate of one-eighth of one percent and a maximum rate of two
12-12 percent.
12-13 (b) Subject to Section 286.172, a district may increase the
12-14 rate of the tax to a maximum of two percent or decrease the rate of
12-15 the tax to a minimum of one-eighth of one percent if the change is
12-16 approved by a majority of the voters of the district at an election
12-17 called for that purpose.
12-18 Sec. 286.175. USE OF TAX. The taxes imposed may be used to
12-19 pay:
12-20 (1) the indebtedness issued or assumed by the
12-21 district; and
12-22 (2) the maintenance and operating expenses of the
12-23 district.
12-24 Sec. 286.176. EFFECTIVE DATE. (a) The adoption or abolition
12-25 of the tax or a change in the rate of the tax takes effect on the
12-26 first day of the first calendar quarter occurring after the
12-27 expiration of the first complete calendar quarter occurring after
13-1 the date the comptroller receives a notice of the results of the
13-2 election.
13-3 (b) If the comptroller determines that an effective date
13-4 provided by Subsection (a) will occur before the comptroller can
13-5 reasonably take the action required to begin collecting the tax or
13-6 to implement the abolition of the tax or the change in the rate of
13-7 the tax, the effective date may be extended by the comptroller
13-8 until the first day of the next calendar quarter.
13-9 Sec. 286.177. COUNTY SALES AND USE TAX ACT APPLICABLE.
13-10 Except to the extent that a provision of this chapter applies,
13-11 Chapter 323, Tax Code, applies to the tax authorized by this
13-12 chapter in the same manner as that chapter applies to the tax
13-13 authorized by that chapter.
13-14 SUBCHAPTER X. MISCELLANEOUS
13-15 Sec. 286.951 [286.181]. LIMITATION ON STATE ASSISTANCE. The
13-16 state may not become obligated for the support or maintenance of a
13-17 hospital district created under this chapter, and the legislature
13-18 may not make a direct appropriation for the construction,
13-19 maintenance, or improvement of a facility of the district.
13-20 SECTION 15. Section 26.012(1), Tax Code, is amended to read
13-21 as follows:
13-22 (1) "Additional sales and use tax" means an additional
13-23 sales and use tax imposed by:
13-24 (A) a city under Section 321.101(b);
13-25 (B) [of this code, a sales and use tax imposed
13-26 by] a county under Chapter 323; [of this code,] or
13-27 (C) [a sales and use tax imposed by] a hospital
14-1 district, other than a hospital district created on or after
14-2 September 1, 2001, that:
14-3 (i) imposes the sales and use tax under
14-4 Subchapter I, Chapter 286, Health and Safety Code; or
14-5 (ii) imposes the sales and use tax under
14-6 Subchapter L, Chapter 285, Health and Safety Code.
14-7 SECTION 16. This Act takes effect September 1, 2001.