78R6755 EMT-F

By:  Hilderbran                                                   H.B. No. 2073



A BILL TO BE ENTITLED

AN ACT

relating to the ad valorem tax rate of a hospital district created 
under general or special law.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 285, Health and Safety Code, is amended 
by adding Subchapter M to read as follows:

SUBCHAPTER M.  CHANGE IN RATE OF AD VALOREM TAXES
	Sec. 285.201.  ELECTION TO INCREASE MAXIMUM TAX RATE.  (a)  
Registered voters of a hospital district that is authorized to 
impose ad valorem taxes and that has a maximum tax rate of less than 
75 cents on the $100 valuation of all taxable property in the 
district may file a petition with the secretary of the governing 
body of the hospital district requesting an election to authorize 
the increase of that maximum tax rate.  The petition must be signed 
by at least the lesser of:
		(1)  100 of the registered voters of the district; or                  
		(2)  the number equal to 15 percent of the registered 
voters of the district.
	(b)  The petition must state the maximum tax rate to be voted 
on at the election, which may not exceed 75 cents on the $100 
valuation of all taxable property in the district.
	(c)  The governing body of the hospital district by order 
shall set a time and place to hold a hearing on the petition to 
increase the maximum tax rate of the district.  The governing body 
shall set a date for the hearing that is not earlier than the 10th 
day after the date the governing body issues the order.
	(d)  If after the hearing the governing body of the hospital 
district finds that the petition is in proper form and that an 
increase of the maximum tax rate would benefit the district, the 
governing body shall order an election to authorize the increase of 
the maximum tax rate to the tax rate stated in the petition.  The 
order calling the election must state the:
		(1)  nature of the election, including the proposition 
that is to appear on the ballot;
		(2)  date of the election;                                             
		(3)  maximum tax rate to be voted on at the election;                  
		(4)  hours during which the polls will be open; and                    
		(5)  location of the polling places.                                   
	(e)  The governing body of the hospital district shall give 
notice of the election by publishing a substantial copy of the 
election order in a newspaper with general circulation in the 
district once a week for two consecutive weeks.  The first 
publication must appear before the 35th day before the date set for 
the election.
	(f)  The ballot for the election shall be printed to permit 
voting for or against the proposition:  "The increase by the  
______________(name of district) Hospital District of the rate of 
annual taxes imposed for hospital purposes to a rate not to exceed 
___________ (insert the amount prescribed by the petition, not to 
exceed 75 cents) on each $100 valuation of all taxable property in 
the district."
	(g)  The election shall be held after the 45th day and on or 
before the 60th day after the date on which the election is ordered.
	(h)  If the majority of the votes cast in the district favor 
the proposition, the maximum tax rate of the district is increased 
to the tax rate stated in the petition.
	(i)  Section 41.001(a), Election Code, does not apply to an 
election held under this section.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.