By Hawley                                             H.B. No. 2605
         77R6516 YDB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the maximum tax rate for certain hospital districts.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Subchapter H, Chapter 286, Health and Safety Code,
 1-5     is amended by adding Section 286.165 to read as follows:
 1-6           Sec. 286.165.  ELECTION TO INCREASE MAXIMUM TAX RATE.
 1-7     (a)  The registered voters of a hospital district may file a
 1-8     petition with the secretary of the board requesting an election to
 1-9     authorize an increase in the maximum tax rate of the district.
1-10           (b)  The petition must be signed by at least the lesser of:
1-11                 (1)  100 of the registered voters of the district; or
1-12                 (2)  the number equal to 15 percent of the registered
1-13     voters of the district.
1-14           (c)  The petition must state the maximum tax rate to be voted
1-15     on at the election, which may not exceed 75 cents on the $100
1-16     valuation of all taxable property in the district.
1-17           (d)  The board by order shall set a time and place to hold a
1-18     hearing on the petition. The hearing may not be held before the
1-19     11th day after the date the board issues the order.
1-20           (e)  Following the hearing, if the board finds that the
1-21     petition is in proper form and that an increase of the maximum tax
1-22     rate would benefit the district, the board shall order an election
1-23     to authorize the increase of the maximum tax rate of the district
1-24     to the tax rate stated in the petition.
 2-1           (f)  The ballot for the election shall be printed to permit
 2-2     voting for or against the proposition: "The increase by the (name
 2-3     of district) Hospital District of the rate of annual taxes levied
 2-4     for hospital purposes to a rate not to exceed (the amount
 2-5     prescribed by the petition, not to exceed 75 cents) cents on each
 2-6     $100 valuation of all taxable property in the district."
 2-7           (g)  The election shall be held after the 45th day and on or
 2-8     before the 60th day after the date the election is ordered.
 2-9           (h)  The election shall be ordered and notice of the election
2-10     shall be given in the manner provided by Sections 286.024 and
2-11     286.025.
2-12           (i)  If the majority of the votes cast in the district favor
2-13     the proposition, the maximum tax rate of the district is increased
2-14     to the tax rate stated in the petition.
2-15           (j)  Section 41.004(a), Election Code, does not apply to an
2-16     election held under this section.
2-17           SECTION 2. This Act takes effect September 1, 2001.