78R10290 YDB-D
By: Naishtat, Keel, Rodriguez, Dukes H.B. No. 2327
Substitute the following for H.B. No. 2327:
By: Lewis C.S.H.B. No. 2327
A BILL TO BE ENTITLED
AN ACT
relating to the creation, administration, powers, duties,
operation, and financing of the Central Texas Health Care District;
authorizing the imposition of taxes, the issuance of bonds, and the
exercise of the power of eminent domain.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. GENERAL PROVISIONS
SECTION 1.001. DEFINITIONS. In this Act:
(1) "Additional area" means any territory included in
the district that is not located in the central area.
(2) "Board" means the board of directors of the
district.
(3) "Central area" means all of the territory within
the boundaries of Travis County, Texas, and any territory within
the boundaries of the city of Austin, Texas, that is located in
another county.
(4) "Charitable organization" means an organization
that is organized under the Texas Non-Profit Corporation Act
(Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) or a
nonprofit association governed by the Texas Uniform Unincorporated
Nonprofit Association Act (Article 1396-70.01, Vernon's Texas
Civil Statutes).
(5) "Director" means a member of the board.
(6) "District" means the Central Texas Health Care
District created under this Act.
(7) "Oversight committee" means the district
oversight committee established under Section 3.011 of this Act.
(8) "Proposed additional area," with respect to a
petition or related election to include additional territory in the
district, means the defined territory outside the boundaries of the
central area to be added to the district in accordance with the
petition.
SECTION 1.002. DISTRICT AUTHORIZATION. A hospital district
to be known as the Central Texas Health Care District may be created
and established, and if created, must be maintained, operated, and
financed in the manner provided by Section 9, Article IX, Texas
Constitution, and by this Act.
SECTION 1.003. BOUNDARIES. The boundaries of the district
are coextensive with the boundaries of the central area and the
additional area, if any.
ARTICLE 2. CREATION OF DISTRICT
SECTION 2.001. CREATION ELECTION REQUIRED. (a) The
district may be created in the central area and a tax may be
authorized only if the creation and the tax are approved by a
majority of the registered voters residing in the central area who
vote at an election held for that purpose.
(b) The Commissioners Court of Travis County may order a
creation election to be held on its own motion.
(c) The Commissioners Court of Travis County shall order a
creation election if the county judge of Travis County receives a
petition signed by at least 100 registered voters residing in the
central area that contains the information required by Subsection
(d) of this section.
(d) A petition prescribed by Subsection (c) of this section
must:
(1) state that the district is to be created and is to
operate under Section 9, Article IX, Texas Constitution, and this
Act;
(2) state the name of the proposed district; and
(3) contain the proposed district's boundaries as
designated by metes and bounds or other sufficient legal
description.
SECTION 2.002. EXPANSION OF PROPOSED DISTRICT TERRITORY.
(a) At any time before the Commissioners Court of Travis County
orders an election under Section 2.001 of this Act, registered
voters of a defined territory within one or more counties that are
not included in the central area or in the boundaries of a hospital
district may file a petition with the county judge of each county in
which the defined territory is located requesting the inclusion of
the proposed additional area in the proposed district. The
petition must be signed by at least 100 registered voters residing
in the proposed additional area. The petition must contain the
information described by Section 2.001(d) of this Act and must
delineate the boundaries of the proposed additional area by metes
and bounds or other sufficient legal description. The county judge
of each county in which any portion of the proposed additional area
is located shall notify the Commissioners Court of Travis County on
receipt of a petition that is in the proper form and meets the
requirements of this subsection.
(b) As soon as practicable after receiving a petition under
Subsection (a) of this section, the Commissioners Court of Travis
County shall hold a hearing on whether including the proposed
additional area in the proposed district is in the best interest of
the proposed district. If the Commissioners Court of Travis County
finds that inclusion is in the best interest of the proposed
district, the Commissioners Court of Travis County shall notify the
commissioners court of each county in which the proposed additional
area is located of that finding.
(c) On notification under Subsection (b) of this section,
the commissioners court in each county within the proposed
district, including the proposed additional area, shall order an
election to approve the creation of the proposed district in
accordance with Section 2.003 of this Act. The commissioners court
may not order an election under this subsection unless the
commissioners court of each of the counties in which any portion of
the proposed additional area is located receives that notification.
SECTION 2.003. DATE OF ELECTION. (a) After ordering the
election, the Commissioners Court of Travis County shall hold a
creation election in the central area on the first authorized
uniform election date prescribed by Section 41.001, Election Code,
that allows sufficient time to comply with other requirements of
law, notwithstanding Section 3.005, Election Code.
(b) If a proposed additional area is to be included in the
proposed district under Section 2.002 of this Act, the
commissioners court in each county in which any portion of the
proposed additional area is located shall hold a creation election
in that area on the same uniform election date.
(c) The commissioners court of each county in which the
proposed district would be located shall cooperate in holding the
election.
SECTION 2.004. BOND PROPOSITION AT ELECTION. (a) The
petition prescribed by Section 2.001 of this Act may include a
request that a proposition be submitted at the election to
determine whether the board may issue general obligation bonds if
the district is created. The petition must specify the maximum
amount of bonds to be issued and their maximum maturity date.
(b) Even though the petition does not request submission of
a proposition on whether the board may issue general obligation
bonds, the Commissioners Court of Travis County may submit a
proposition at the creation election on the issuance of bonds.
(c) A bond proposition submitted to the voters under this
section must be submitted to the voters voting at each other
election for creation of the district that is being held on the same
uniform election date in the central area and any proposed
additional area.
(d) If the election for creation of the district solely in
the central area is held under Section 2.003(a) of this Act, the
board may issue general obligation bonds as provided by this Act if
a majority of the votes cast in the election favor creation of the
district and issuance of the bonds.
(e) If an election for creation of the district is held in
the central area under Section 2.003(a) of this Act and an election
is held in the proposed additional area under Section 2.003(b) of
this Act, the board may issue general obligation bonds as provided
by this Act only if the majority of votes cast in the election held
under Section 2.003(a) of this Act favor creation of the district
and issuance of the bonds and the majority of votes cast in each
election in the proposed additional area favoring creation of the
district also favor the issuance of the bonds.
SECTION 2.005. ELECTION ORDER. The order calling the
election must state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
SECTION 2.006. NOTICE. (a) The Commissioners Court of
Travis County and the commissioners court of each other county in
which any portion of the proposed additional area is located shall
give notice of the election by publishing a substantial copy of the
election order in a newspaper with general circulation in the
appropriate county once a week for two consecutive weeks.
(b) The first publication must appear at least 35 days
before the date set for the election.
SECTION 2.007. BALLOT PROPOSITION. (a) The ballot for a
creation election under this Act shall be printed to permit voting
for or against the proposition: "The creation of the Central Texas
Health Care District and the imposition of annual property taxes
for district purposes at a rate not to exceed one-third of the
maximum tax rate authorized by Section 9, Article IX, Texas
Constitution."
(b) If a municipality or county in the proposed district has
any outstanding bonds issued for hospital purposes, the ballot for
an election under this article shall be printed to provide for
voting for or against the proposition: "The creation of the Central
Texas Health Care District, the imposition of annual property taxes
for district purposes at a rate not to exceed one-third of the
maximum tax rate authorized by Section 9, Article IX, Texas
Constitution, and the assumption by the district of all outstanding
bonds previously issued by any county or any municipality in the
district for hospital purposes."
(c) If a bond proposition is submitted to the voters, the
ballot for the election shall contain the proposition prescribed by
Subsection (a) or (b) of this section followed by: "and the issuance
of bonds in an amount not to exceed ____ (insert the amount
prescribed by the petition or the commissioners court's order) and
to mature not later than ________ (insert the date prescribed by the
petition or the commissioners court's order)."
SECTION 2.008. ELECTION RESULT. (a) A district is created
and organized under this Act if a majority of the votes cast in the
election held in the central area favor the creation of the
district. If a majority of the votes cast in the election in the
central area vote against creation of the district, the district is
not created, regardless of the results of an election held in any
proposed additional area, and another election on the question of
creating the district may not be held before the first anniversary
of the most recent election concerning the creation of the
district.
(b) If the proposed additional area is located entirely
within one county, the proposed additional area is included in the
proposed district only if the majority of votes cast in the election
held in the proposed additional area favor the creation of the
district. If the proposed additional area contains territory in
more than one county, the portion of the proposed additional area
that is located in a particular county may be included in the
district only if a majority of the votes cast in that portion of the
proposed additional area in that particular county favor creation
of the district.
SECTION 2.009. COMMISSIONERS COURT ORDER. When the
district is created, the commissioners court of each county in
which any portion of the district is located shall enter an order in
its minutes that reads substantially as follows:
"WHEREAS, at an election held on the ___ day of ___,
200_, in that part of ________ County, State of Texas,
described as ________(insert description), there was
submitted to the qualified voters the question of
whether that territory should be formed into a
hospital district under state law; and
"WHEREAS, at the election _____ votes were cast in
favor of formation of the district and _____ votes were
cast against formation; and
"WHEREAS, the formation of the hospital district
received the affirmative vote of the majority of the
votes cast at the election as provided by law;
"NOW, THEREFORE, the Commissioners Court of ________
County, State of Texas, finds and orders that the tract
described in this order has been duly and legally
formed into a hospital district (or a portion thereof)
under the name of the Central Texas Health Care
District, under Section 9, Article IX, Texas
Constitution, and has the powers vested by law in the
district."
SECTION 2.010. TEMPORARY DIRECTORS. (a) On the date on
which the Commissioners Court of Travis County enters the order
calling a creation election, the Commissioners Court of Travis
County and the Austin City Council shall appoint the temporary
directors of the district. The Commissioners Court of Travis
County and the Austin City Council shall each appoint four
temporary directors, and the city council and the commissioners
court shall jointly appoint one temporary director.
(b) If additional territory is proposed to be included in
the district in accordance with Section 2.002 of this Act, the
commissioners court of each county in which any portion of the
proposed additional area is located shall appoint one temporary
director contingent on inclusion of that area in the district. The
commissioners court shall make the appointment on the date on which
the commissioners court enters the order calling for an election
under Section 2.002 of this Act.
(c) The temporary directors serve as directors of the
district until:
(1) the day after the election to create the district,
if the creation of the district is not approved at the election; or
(2) the date on which initial directors under Article
3 of this Act are appointed, if the creation of the district is
approved.
(d) A vacancy in the office of temporary director shall be
filled by appointment by the governing body that appointed the
vacating director.
(e) The temporary directors are authorized to:
(1) plan for the transfer of assets, personnel, and
resources as required or necessary under this Act; and
(2) organize the possible finances and operation of
the district.
ARTICLE 3. DISTRICT ADMINISTRATION
SECTION 3.001. BOARD OF DIRECTORS. (a) Unless additional
directors are added as provided by Section 3.003 of this Act, the
district is governed by a board of nine directors.
(b) The Austin City Council and the Commissioners Court of
Travis County shall each appoint four of the initial directors and
the city council and the commissioners court shall jointly appoint
one of the initial directors.
(c) The Austin City Council and the Commissioners Court of
Travis County shall make the appointments required under this
section not later than the 30th day after the date the Commissioners
Court of Travis County enters the order required by Section 2.009 of
this Act.
SECTION 3.002. QUALIFICATIONS OF DIRECTORS. (a) To
provide the expertise necessary to effectively govern the district,
the governmental bodies that appoint directors under this Act shall
appoint individuals with experience or knowledge with respect to
issues involving the rights of a patient or experience or knowledge
in the health care, finance, insurance, or accounting fields.
(b) Two of the directors appointed by the Commissioners
Court of Travis County under Section 3.001(b) of this Act must be
residents of the city of Austin, Texas.
(c) A director must reside in the district.
SECTION 3.003. ADDITIONAL DIRECTORS FOR ADDITIONAL
AREA. (a) If the district is created to include an additional
area in accordance with Section 2.002 of this Act or is expanded to
include an additional area in accordance with Article 5 of this Act,
additional directors shall be appointed to the board as provided by
this section.
(b) If the additional area includes any portion of a county
that is not located in the city of Austin, the commissioners court
of each county in which any portion of the additional area is
located shall appoint one director for every 100,000 residents of
the county who reside in the additional area. The commissioners
court of a county in which any portion of the additional area is
located and in which fewer than 100,000 residents reside in the
additional area shall appoint one director.
(c) An appointment under this section must be made not later
than:
(1) the 30th day after the date the commissioners
court of the appropriate county enters the order required by
Section 2.009 of this Act, if the district is created to include an
additional area in accordance with Section 2.002 of this Act; or
(2) the 30th after the date of the election to include
the additional area in the district in accordance with Article 5 of
this Act.
SECTION 3.004. SUCCESSOR DIRECTORS. Successor directors
are appointed in the same manner as in the original appointment.
SECTION 3.005. TERMS; STAGGERING OF TERMS. (a) The
directors of the district serve staggered four-year terms, with as
near as possible to one-fourth of the directors' terms expiring
each year.
(b) The terms of initial directors appointed under Section
3.001(b) of this Act are as follows:
(1) the initial directors appointed solely by the
Austin City Council shall draw lots to determine which director
serves a one-year term, which director serves a two-year term,
which director serves a three-year term, and which director serves
a four-year term;
(2) the initial directors appointed solely by the
Commissioners Court of Travis County shall draw lots to determine
which director serves a one-year term, which director serves a
two-year term, which director serves a three-year term, and which
director serves a four-year term; and
(3) the initial director appointed jointly by the
Austin City Council and the Commissioners Court of Travis County
serves a four-year term.
(c) Initial directors appointed under Section 3.003 of this
Act shall draw lots to determine:
(1) which number of directors equal to as near as
possible as one-fourth of the directors serve a one-year term;
(2) which number of directors equal to as near as
possible as one-fourth of the directors serve a two-year term;
(3) which number of directors equal to as near as
possible as one-fourth of the directors serve a three-year term;
and
(4) which remaining directors serve a four-year term.
SECTION 3.006. BOARD VACANCY. A vacancy in the office of
director shall be filled for the unexpired term by appointment by
the governing body that appointed the vacating director.
SECTION 3.007. OFFICERS. (a) The board, by a two-thirds
majority vote, shall elect from among its members a president and a
vice president of the board.
(b) The board shall appoint a secretary, who need not be a
director.
SECTION 3.008. OFFICERS' TERMS; VACANCY. (a) Each officer
of the board serves for a term of one year.
(b) The board shall fill a vacancy in a board office for the
unexpired term by a two-thirds majority vote.
SECTION 3.009. COMPENSATION. (a) Directors and officers
serve without compensation but may be reimbursed for actual
expenses incurred in the performance of official duties.
(b) Expenses reimbursed under this section must be:
(1) reported in the district's minute book or other
district records; and
(2) approved by the board.
SECTION 3.010. MEETINGS; VOTING REQUIREMENT. (a) The
president of the board shall set the agenda for a board meeting.
Two or more directors may place an item on the agenda.
(b) Except as otherwise provided by this Act, a majority of
the directors voting at a meeting of the board must concur in a
matter relating to the business of the district.
SECTION 3.011. OVERSIGHT COMMITTEE. (a) An oversight
committee for the district is established to perform the duties
prescribed by this section.
(b) If the district includes the central area but does not
include any additional area, not later than the 30th day after the
date on which the commissioners court enters the order required by
Section 2.009 of this Act, the Commissioners Court of Travis County
shall appoint two members of the commissioners court to serve as
members of the oversight committee and the Austin City Council
shall appoint two members of the city council to serve as members of
the committee.
(c) If the district includes the central area and an
additional area, whether the additional area is included when the
district is created under Article 2 of this Act or is added to the
district at a later time under Article 5 of this Act, the
Commissioners Court of Travis County shall appoint two members of
the commissioners court to serve as members of the oversight
committee, the Austin City Council shall appoint two members of the
city council to serve as members of the committee, and the
commissioners court of each other county in which any portion of the
additional area is located shall each appoint one of its members to
serve as a member of the committee. The appointments must be made
not later than:
(1) the 30th day after the date on which the applicable
commissioners court enters the order required by Section 2.009 of
this Act, if the additional area is included under Article 2 of this
Act; or
(2) the 30th day after the date of the election if the
additional area is included following an election under Article 5
of this Act.
(d) Service on the oversight committee under this section is
an additional duty of the office of the member serving if the member
is also a member of the Austin City Council or a member of the
commissioners court of a county.
(e) Members of the oversight committee serve two-year
terms.
(f) A member of the oversight committee who on the date of
appointment holds office as a member of the Austin City Council or
as a member of a commissioners court is not disqualified from
serving on the board if the member ceases to hold the other office.
(g) Members of the oversight committee serve without
compensation but are entitled to reimbursement for reasonable and
necessary expenses incurred in the performance of their duties to
be paid by the appointing entity.
(h) The oversight committee shall consult with and advise
the board on district matters.
(i) The oversight committee may:
(1) call for an election for the dissolution of the
district in accordance with Article 5 of this Act;
(2) veto any proposed increase in the tax rate adopted
by the board under Section 8.003 of this Act; and
(3) perform any other duty required under this Act.
(j) The oversight committee shall meet once each year and at
additional times as provided by this Act or when called by any two
members of the committee.
(k) At the initial meeting of the oversight committee, the
members of the committee shall elect a presiding officer from among
its membership to serve a one-year term. The presiding officer
shall set the agenda for each subsequent meeting. Any two members
of the committee may place an item on an agenda.
(l) Any action by the oversight committee requires approval
by a two-thirds majority vote.
SECTION 3.012. ADMINISTRATOR, ASSISTANT ADMINISTRATOR, AND
ATTORNEY. (a) The board may appoint qualified persons as
administrator of the district, assistant administrator of the
district, and attorney for the district.
(b) The administrator, assistant administrator, and
attorney serve at the will of the board.
(c) The administrator, assistant administrator, and
attorney are entitled to compensation as determined by the board.
(d) Before assuming the administrator's duties, the
administrator shall execute a bond payable to the district in the
amount of not less than $5,000, as determined by the board,
conditioned on the faithful performance of the administrator's
duties under this Act. The board may pay for the bond with district
funds.
SECTION 3.013. APPOINTMENTS TO STAFF. The board may:
(1) appoint to the staff any doctors the board
considers necessary for the efficient operation of the district;
and
(2) make temporary appointments the board considers
necessary.
SECTION 3.014. DISTRICT EMPLOYEES. (a) The district may
employ technicians, nurses, fiscal agents, accountants,
architects, additional attorneys, and other necessary employees.
(b) The board may delegate to the administrator the
authority to employ persons for the district.
SECTION 3.015. GENERAL DUTIES OF ADMINISTRATOR. The
administrator shall:
(1) supervise the work and activities of the district;
and
(2) direct the general affairs of the district,
subject to the limitations prescribed by the board.
SECTION 3.016. RETIREMENT BENEFITS. The board may provide
retirement benefits for employees of the district by:
(1) establishing or administering a retirement
program; or
(2) electing to participate in the Texas County and
District Retirement System or in any other statewide retirement
system in which the district is eligible to participate.
ARTICLE 4. POWERS AND DUTIES
SECTION 4.001. TRANSFER OF HOSPITAL PROPERTY AND FUNDS.
(a) Except as provided by Subsection (b) of this section and
Section 4.003 of this Act, on the date prescribed by Subsection (f)
of this section, each municipality or county in which any portion of
the district is located shall execute and deliver to the board one
or more written instruments conveying to the district the title to
land, buildings, equipment, medical clinics, and any other property
located wholly in the district that is owned by the entity and used
to provide health care services or hospital care, including mental
health care. The conveyance must include:
(1) the Brackenridge Hospital campus and all buildings
on the campus that are owned by the city of Austin, including
hospital and clinic buildings, parking facilities, and
professional office buildings; and
(2) all supplies, pharmaceuticals, inventory,
records, and other property used or needed for the operation of the
transferred facilities and owned by the municipality or county.
(b) A municipality is not required under this section to
convey to the district any property owned by the municipality that
is used in connection with the provision of utility services,
including energy, water, wastewater, or sewer services. In
addition, a municipality or county is not required to:
(1) transfer to the district any medical facilities
used primarily for the treatment of inmates of a jail or any other
correctional facilities, including juvenile justice facilities; or
(2) transfer, on the date prescribed by Subsection
(f) of this section, any real property or other assets relating to
medical clinic facilities on which construction has begun but has
not been completed by that date, provided that immediately
following final completion of the facilities, the facilities,
subject to Subsection (c) of this section, shall be transferred to
the district if the board agrees to the transfer.
(c) If a facility to be transferred is located in a building
owned by the municipality or county and the building is also used
for other purposes, the municipality or county may:
(1) retain ownership of the building and related land
and lease the facility space to the district; or
(2) transfer the building and related land to the
district, with the board's approval, and the district shall lease
to the transferring governmental entity the space not used for the
facility for an initial term of three years unless otherwise agreed
to by the district and the transferring entity.
(d) A transfer of any asset under this article that would
violate federal or state law unless a waiver or other authorization
or approval is granted by a federal or state agency, may nor occur
until the required waiver, authorization, or approval is obtained.
A facility designated as a federally qualified health center under
42 U.S.C. Section 1396d(l)(2)(B), as amended, may not be
transferred to the district until the board has confirmed that the
transfer will not jeopardize the designation of that facility.
(e) Each municipality and county within the district shall
retain responsibility for its public health services and related
facilities, except that by mutual agreement between the
municipality or county and the district, the municipality or county
may transfer to the district any or all of its public health
services and related facilities.
(f) The initial board shall set a date for a conveyance
required under Subsection (a) of this section that is not later than
the first anniversary of the date of the district's creation.
(g) On the date prescribed by Subsection (f) of this
section, each municipality or county described by Subsection (a) of
this section, on receipt of a certificate executed by the board's
president stating that a depository for the district has been
chosen and qualified, shall transfer to the district:
(1) all unspent money that is the proceeds of any bonds
assumed by the district under Section 4.006 of this Act; and
(2) subject to Subsection (h) of this section, all
unspent money appropriated or dedicated by the municipality or
county to support and maintain facilities being transferred or to
pay for health care services or hospital care, including mental
health care, to be used by the district to operate and maintain
those facilities and pay for those services and care for the
remainder of the year in which the conveyance is made.
(h) A municipality or county is not required to transfer
money under Subsection (g)(2) of this section if the conveyance is
scheduled to occur at the end of the municipality's or county's
fiscal year.
(i) A municipality or county may transfer to the district
additional money and other assets as the governing body of the
municipality or county determines is appropriate to facilitate the
initial financial viability of the district.
(j) Money transferred to the district under this section may
be used only for a purpose for which the municipality or county that
transferred the money could lawfully have used the money if the
money had remained the municipality's or county's money.
SECTION 4.002. INITIAL OPERATIONS; TRANSITION. (a) This
section governs the initial operation of facilities and programs
transferred to the district.
(b) On conveyance to the district of facilities owned by the
city of Austin, Travis County, or another municipality or county,
the persons who were responsible for the operation of the
facilities immediately before the transfer shall continue to
operate the facilities until the later of:
(1) the date determined by the board; or
(2) the first anniversary of the district's creation,
provided that operational changes affecting a federally qualified
health center may only be made in accordance with Section 4.001(d).
(c) After the conveyance of facilities to the district, the
operations of the transferred facilities shall be funded with
district money, and the district, subject to this Act, may
establish the budgets for the operations of those facilities.
(d) Subsections (b) and (c) of this section do not apply to
facilities that, on the date on which the facilities are conveyed to
the district, are leased to a person other than the transferring
governmental entity.
(e) On creation of the district, the district shall become
responsible for and continue the implementation of the health care
programs, including indigent health care programs, and policies of
the city of Austin or Travis County that are in effect in the
central area on the date of the district's creation. The district
shall continue those health care programs and policies until the
later of:
(1) the date determined by the board; or
(2) the first anniversary of the district's creation.
(f) Before facilities owned by the city of Austin or Travis
County are conveyed to the district, the city of Austin or Travis
County shall continue to fund the programs and policies described
by Subsection (e) of this section, as applicable. On conveyance,
the district shall assume the responsibility for funding those
programs and policies.
(g) Notwithstanding Subsection (e) of this section, the
city of Austin and Travis County shall continue their
administration functions in relation to the health care programs,
including indigent health care programs, in effect in the central
area until the later of:
(1) the date determined by the board; or
(2) the first anniversary of the creation of the
district.
SECTION 4.003. TRANSFER OF CERTAIN AMBULANCE AND EMERGENCY
MEDICAL SERVICES AND OTHER ASSETS. (a) Following the approval of
the board and the governing body of the municipality or county, a
municipality or county located in the district may transfer to the
district an ambulance service, emergency medical service, search
and rescue service, or medical transport service that is owned or
operated by the municipality or county. The conveyance must
include all assets of the transferred service including any
vehicles, aircraft, equipment, and supplies.
(b) The transfer required under Subsection (a) of this
section may be made on the same date prescribed for a conveyance
under Section 4.001 of this Act or at a later date.
(c) The responsibility and cost of operating any service
that is not transferred to the district under this section
continues to be the responsibility of the municipality or county
owning or operating the service.
SECTION 4.004. RETURN OF TRANSFERRED PROPERTY TO
MUNICIPALITY OR COUNTY. The board, by deed or other appropriate
instrument, may transfer to a municipality or county without
charge any property that:
(1) was conveyed or otherwise transferred to the
district by the municipality or county under Section 4.001 or 4.003
of this Act; and
(2) the board considers is not and will not be useful
for the purpose for which the property was originally transferred
to the district.
SECTION 4.005. ASSUMPTION OF CONTRACT OBLIGATIONS. On the
date on which a municipality or county conveys property or other
facilities under Section 4.001 or 4.003 of this Act, the district
shall assume, without prejudice to the rights of third parties, any
outstanding contract obligations legally incurred by the
municipality or county making the conveyance before the date of the
conveyance for:
(1) the construction, support, operations, equipping,
or maintenance of the transferred property, including any leases on
the assets conveyed to the district in which the municipality or
county, as appropriate, is lessor or lessee; or
(2) the provision of health care services or hospital
care, including mental health care, to indigent residents of the
municipality or county, as appropriate.
SECTION 4.006. ASSUMPTION OF BONDED INDEBTEDNESS;
CANCELLATION OF UNSOLD MUNICIPAL OR COUNTY BONDS. (a) On the date
on which a county or municipality conveys property or other
facilities under Section 4.001 or 4.003 of this Act, the district
shall assume:
(1) any outstanding bonded indebtedness incurred by
the municipality or county, or both, in the acquisition of land,
buildings, equipment, and other property transferred to the
district or in the construction, renovation, and equipping of
transferred facilities; and
(2) any other outstanding bonds issued by the
municipality or county for hospital purposes, the proceeds of which
are wholly or partly unspent.
(b) If part of a municipality or county is included in the
district and part is not included in the district, the amount of
indebtedness the district assumes under Subsection (a) of this
section is that portion of the total outstanding indebtedness of
the municipality or county for hospital care for all residents of
the municipality or county, as appropriate, that the value of
taxable property in the district bears to the total value of taxable
property in the municipality or county according to the last
preceding certified tax appraisal roll of the municipality or
county before the district is confirmed.
(c) On making a conveyance to the district as required by
Section 4.001 or 4.003 of this Act, a municipality or county that
issued bonds for hospital purposes is no longer liable for the
payment of those bonds or for providing interest and sinking fund
requirements on those bonds.
(d) This section does not limit or affect the rights of a
bondholder against the municipality or county if there is a default
in payment of the principal or interest on the bonds in accordance
with their terms.
(e) If the issuance of bonds by the municipality or county
for hospital purposes was approved at a bond election but the bonds
have not been sold on the date on which the conveyance of the
property under Section 4.001 or 4.003 of this Act occurred, the bond
authority is canceled and the municipality or county, or both, may
not sell the bonds.
SECTION 4.007. LIMITATION ON GOVERNMENTAL ENTITY. (a) On
or after creation of the district, a municipality, county, or other
governmental entity in which the district is located may not impose
taxes or issue bonds or other obligations for hospital purposes or
for providing medical care for the residents of the district.
(b) This section does not prohibit:
(1) the financing or operation of facilities or
services as provided by Section 4.002 of this Act;
(2) the provision of public health services that have
not been transferred to the district; or
(3) the financing or operation of mobile medical
services that have not been transferred to the district.
SECTION 4.008. DISTRICT RESPONSIBILITIES. On creation of
the district, the district shall assume full responsibility, as
required by Section 9, Article IX, Texas Constitution, for
providing medical and hospital care for the district's needy
inhabitants.
SECTION 4.009. MANAGEMENT, CONTROL, AND ADMINISTRATION.
The board shall manage, control, and administer the district and
the funds and resources of the district, and the district may impose
a property tax and other taxes in accordance with this Act and other
law.
SECTION 4.010. RENAMING DISTRICT. The board may rename the
district if the board considers it appropriate.
SECTION 4.011. DISTRICT RULES. The board may adopt rules
governing:
(1) the operation of the district and the district's
assets; and
(2) the duties, functions, and responsibilities of
district staff and employees.
SECTION 4.012. METHODS AND PROCEDURES. The board may
prescribe:
(1) the method of making purchases and expenditures by
and for the district; and
(2) accounting and control procedures for the
district, including the establishment of a fiscal year.
SECTION 4.013. DISTRICT PROPERTY, FACILITIES, EQUIPMENT,
AND SERVICES. (a) The board shall determine:
(1) the type, number, and location of buildings
necessary or appropriate for the district;
(2) the type and quantity of equipment and other
property necessary or appropriate for the district; and
(3) the type and quantity of hospital services,
medical services, health care services, including mental health
care and public health services, and ancillary health care services
to be provided by the district.
(b) The board may:
(1) acquire, by lease or purchase, any interest in
facilities, equipment, or any other property for district purposes;
(2) mortgage or pledge the facilities, equipment, or
other property acquired as security for the payment of the purchase
price;
(3) lease to physicians, individuals, companies,
corporations, or other legal entities district facilities,
equipment, or other property;
(4) sell or otherwise dispose of district facilities,
equipment, or other property;
(5) operate or provide for inpatient and outpatient
care of any type and hospitals, clinics, professional office
buildings, laboratories, skilled nursing care, home health care,
hospice care, long-term care, intermediate nursing care,
rehabilitation and physical therapy, occupational therapy,
assisted living care, home health services, and mental health
services, including care for Alzheimer's disease, chemical
dependency, and any other mental or behavioral disorder, and any
other health care or medical care services;
(6) operate or provide for the operation of a mobile
medical service; and
(7) contract with a school district located within the
district to provide nursing services and assistance to employees or
students of the school district.
(c) The district may acquire, own, and operate the
facilities and services authorized by this Act within the
district's territory and within the service area that is located
outside the boundaries of the district.
(d) The board may determine the rates, charges, and
discounts and the credit and collection procedures relating to
services provided by the district.
SECTION 4.014. CONSTRUCTION CONTRACTS. The board may enter
into construction contracts for the district.
SECTION 4.015. DISTRICT OPERATING AND MANAGEMENT
CONTRACTS. The board may enter into operating, management, or
other types of contracts relating to hospitals, clinics, or other
health care facilities or to other district programs.
SECTION 4.016. EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in property located in the territory of the district
if the property interest is necessary to the exercise of the rights
or authority conferred by this Act.
(b) The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, but the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021(a), Property Code.
(c) In a condemnation proceeding brought by the district,
the district is not required to:
(1) pay in advance or give bond or other security for
costs in the trial court;
(2) give bond for the issuance of a temporary
restraining order or a temporary injunction; or
(3) give bond for costs or supersedes on an appeal or
writ of error.
SECTION 4.017. EXPENSES FOR MOVING FACILITIES OF RAILROADS
OR UTILITIES. If, in exercising the power of eminent domain, the
board requires relocating, raising, lowering, rerouting, changing
the grade, or altering the construction of any railroad, highway,
pipeline, or electric transmission and electric distribution,
telegraph, or telephone lines, conduits, poles, or facilities, the
district must bear the actual cost of relocating, raising,
lowering, rerouting, changing the grade, or altering the
construction to provide comparable replacement without enhancement
of a facility, after deducting the net salvage value derived from
the old facility.
SECTION 4.018. INDIGENT CARE. (a) The district without
charge shall supply to a patient residing in the district the health
care and treatment that the patient or a relative or guardian of the
patient who is legally responsible for the patient's support cannot
pay.
(b) Not later than the first day of each operating year, the
district shall adopt an application procedure to determine
eligibility for assistance, as provided by Section 61.053, Health
and Safety Code.
SECTION 4.019. REIMBURSEMENT FOR SERVICES. (a) The board
shall require reimbursement from a county, municipality, or public
hospital located outside the boundaries of the district for the
district's care and treatment of a sick, diseased, or injured
person of that county, municipality, or public hospital as provided
by Chapter 61, Health and Safety Code.
(b) The board shall require reimbursement from the sheriff
or police chief of a county or municipality for the district's care
and treatment of a person confined in a jail facility of the county
or municipality who is not a resident of the district.
(c) The board may contract with the state or federal
government or with a municipality, a county, or another hospital
district for the governmental entity to reimburse the district for
treatment of a sick, diseased, or injured person.
SECTION 4.020. SERVICE CONTRACTS. (a) The board may
contract with a person, private entity, municipality, county,
special district, other political subdivision of this state, any
other governmental entity, or with a state or federal agency for the
district to:
(1) furnish a mobile emergency medical service; or
(2) provide for the investigatory or welfare needs of
inhabitants of the district.
(b) The district may contract with and otherwise cooperate
with governmental entities within the district's service area and
with public and private providers of health care, medical care, and
mental health services to provide or assist in the provision of
services.
SECTION 4.021. GIFTS AND ENDOWMENT. On behalf of the
district, the board may accept gifts and endowments to be held in
trust for any purpose and under any direction, limitation, or
provision prescribed in writing by the donor that is consistent
with the proper management of the district.
SECTION 4.022. COURT ACTIONS. The board may authorize any
lawsuit to be brought on behalf of the district, and the district
may be sued in any court of this state.
SECTION 4.023. PROCEDURES FOR HEALTH MAINTENANCE
ORGANIZATION. The district may establish a health maintenance
organization in accordance with Chapter 843, Insurance Code, or
under the Texas Health Maintenance Organization Act (Chapter 20A,
Vernon's Texas Insurance Code), to provide or arrange for health
care services for the residents of the district.
SECTION 4.024. INTEGRATED HEALTH CARE SYSTEM. (a) In this
section:
(1) "Integrated health care system" means a nonprofit
corporation or nonprofit association established and operated by
the district or by the district and a medical school in this state
to provide or arrange for comprehensive health care services for
residents of the district.
(2) "Nonprofit association" means a nonprofit
association governed by the Texas Uniform Unincorporated Nonprofit
Association Act (Article 1396-70.01, Vernon's Texas Civil
Statutes).
(3) "Provider" means a physician or a provider, as
those terms are defined by Section 843.002, Insurance Code.
(b) The district, on its own or with a medical school in this
state, may establish and operate an integrated health care system.
(c) To provide or arrange for comprehensive health care
services, an integrated health care system created under this
section may:
(1) own, acquire, lease, or contract for all necessary
assets;
(2) enter into contracts with providers for the
provision of health care services directly or indirectly through
subcontract;
(3) provide or enter into a contract with an
individual or business entity under which the individual or entity
provides necessary management or administrative services for the
system and the system's providers;
(4) enter into a contract or other agreement with a
business or governmental entity under which the system is paid to
provide health care services; and
(5) enter into a fee-for-service, capitated, or
risk-sharing health care service arrangement.
(d) An integrated health care system that is created under
this section:
(1) is subject to:
(A) Chapter 551, Government Code;
(B) Chapter 552, Government Code;
(C) Chapter 843, Insurance Code, or the Texas
Health Maintenance Organization Act (Chapter 20A, Vernon's Texas
Insurance Code);
(D) Chapter 844 or Article 21.52F, Insurance
Code; and
(E) Chapter 262, Local Government Code; and
(2) is a unit of local government for the purposes of
Chapter 101, Civil Practice and Remedies Code.
(e) Notwithstanding Subsection (d)(1)(A) of this section,
an integrated health care system created under this section may
hold a closed meeting to deliberate:
(1) pricing or financial planning relating to a bid or
negotiation for a contract to provide a service or product line, if
an open meeting would have a detrimental effect on the position of
the integrated health care system in the bid or negotiation
process; or
(2) a proposed new service or product line, if the
meeting is held before public announcement of the service or
product line.
(f) Notwithstanding Subsection (d)(1)(B) of this section,
information relating to the following is confidential and not
subject to disclosure:
(1) pricing or financial planning relating to a bid or
negotiation for a contract to provide a service or product line, if
disclosure would have a detrimental effect on the position of the
integrated health care system in the bid or negotiation process; or
(2) a proposed new service or product line, if
disclosure is requested before public announcement of the service
or product line.
(g) Subject to the requirements and limitations of the local
health care market, an integrated health care system created under
this section shall make reasonable efforts to include in its
provider group community providers other than a hospital of the
district or the medical school, if applicable.
SECTION 4.025. CHARITABLE ORGANIZATIONS. The district may
create a charitable organization to facilitate management of a
district health care program by providing or arranging health care
services, developing resources for health care services, or
providing ancillary support services for the district.
SECTION 4.026. LOANS AND GRANTS FOR ECONOMIC DEVELOPMENT
PURPOSES. (a) Under the authority granted by Section 52-a,
Article III, Texas Constitution, the district may loan or grant
money to any person for the development of medical education and
research in the district or for the provision of indigent health
care in the district.
(b) To the extent allowed by Section 9, Article IX, Texas
Constitution, any municipality or county that is located in the
district or that has residents served by district facilities may
loan or grant money to the district for any district purpose.
(c) The legislature finds that loans or grants made by the
municipality or county under this section are for the public
purposes of:
(1) developing and diversifying the economy of this
state;
(2) eliminating unemployment and underemployment in
this state; and
(3) developing and expanding commerce in this state.
ARTICLE 5. CHANGE IN BOUNDARIES; DISSOLUTION OF DISTRICT
SECTION 5.001. INCLUSION OF ADDITIONAL AREA AFTER CREATION
OF DISTRICT. (a) After the district is created, registered voters
of a defined territory within one or more counties contiguous to
Travis County, Texas, that is not included in the boundaries of the
district or in the boundaries of another hospital district may file
a petition with the secretary of the board requesting the inclusion
of the proposed additional area in the district. The petition must:
(1) be signed by at least 100 registered voters from
each county in which the proposed additional area is located who
reside in the proposed additional area, or a majority of the
registered voters, whichever is less; and
(2) delineate the boundaries of the defined territory
proposed to be included in the district by metes and bounds or other
sufficient legal description.
(b) The board by order shall set a time and place to hold a
hearing on the petition to include the proposed additional area in
the district. The board shall set a date for the hearing that is
after the 30th day after the date the board issues the order.
(c) If after the hearing the board finds that annexation of
the proposed additional area into the district would be feasible
and would benefit the district, the board may approve the
annexation by a resolution entered in its minutes. The board is not
required to include all or any portion of the territory of the
proposed additional area in the district.
(d) The inclusion of the proposed additional area in the
district is final when approved by a majority of the voters at an
election held in the district and by a majority of the voters at a
separate election held in the proposed additional area. If the
district has outstanding debts or taxes, the voters in the election
to approve the inclusion of the proposed additional area must also
determine if the proposed additional area will assume its
proportion of the debts or taxes if added to the district.
(e) The election ballots shall be printed to permit voting
for or against the following, as applicable:
(1) "Adding (description of territory to be added) to
________ (insert the Central Texas Health Care District or the name
of the district if renamed by the board under Section 4.010 of this
Act)."
(2) "(Description of territory to be added) assuming
its proportionate share of the outstanding debts and taxes of
________ (insert the Central Texas Health Care District or the name
of the district if renamed by the board under Section 4.010 of this
Act), if the territory is added to the district."
SECTION 5.002. DATE OF INCLUSION ELECTION. After the
election is ordered by the board, the election shall be held on the
first uniform election date prescribed by Section 41.001, Election
Code, that allows sufficient time to comply with the other
requirements of law, notwithstanding Section 3.005, Election Code.
SECTION 5.003. NOTICE OF ELECTION. The election shall be
ordered and notice of the election shall be given in the same manner
as provided by Sections 2.005 and 2.006 of this Act for ordering and
giving notice of an election authorizing creation of the district.
SECTION 5.004. ELECTION RESULT. (a) If the proposed
additional area is located entirely within one county, the proposed
additional area is included in the district if the majority of votes
cast in the election held in the proposed additional area favor
inclusion in the district.
(b) If the proposed additional area contains territory in
more than one county, the portion of the proposed additional area
that is located in a particular county may be included in the
district only if a majority of the votes cast in that portion of the
proposed additional area in that particular county favor inclusion
in the district.
(c) If additional area is included in the district in
accordance with this section, the commissioners court in each
county in which any portion of the additional area is located shall
appoint:
(1) one or more directors to the board in accordance
with Section 3.003 of this Act; and
(2) one of its members to serve as a member of the
oversight committee in accordance with Section 3.011 of this Act.
SECTION 5.005. DISSOLUTION. (a) The district may be
dissolved as provided by this section.
(b) The board may order an election on the question of
dissolving the district and disposing of the district's assets and
obligations. The board shall order an election if the board
receives:
(1) a petition requesting an election that is signed
by a number of residents of the district equal to at least five
percent of the registered voters in the district; or
(2) a resolution requesting a dissolution election
adopted by the oversight committee.
(c) The petition or the resolution of the oversight
committee must contain directions on which method prescribed by
Section 5.006 of this Act should be used to distribute the
district's assets in the event of dissolution.
(d) The election shall be held not later than the 60th day
after the date the election is ordered. Section 41.001(a), Election
Code, does not apply to an election ordered under this section.
(e) The ballot for the election shall be printed to permit
voting for or against the proposition: "The dissolution of
________ (insert the Central Texas Health Care District or the name
of the district if renamed by the board under Section 4.010 of this
Act)." The ballot must contain information on the method
prescribed by Section 5.006 of this Act that will be used to
distribute the district's assets if the dissolution is approved.
The election shall be held in accordance with the applicable
provisions of the Election Code.
(f) If a majority of the votes cast in the election favor
dissolution, the board shall find that the district is dissolved.
If a majority of the votes cast in the election do not favor
dissolution, the board shall continue to administer the district,
and another election on the question of dissolution may not be held
before the first anniversary of the most recent election to
dissolve the district.
SECTION 5.006. TRANSFER OF ASSETS AFTER DISSOLUTION. (a)
If a majority of the votes cast in the election favor dissolution,
the board, in accordance with the ballot proposition, shall:
(1) transfer the land, buildings, improvements,
equipment, and other assets that belong to the district to a county
or another governmental entity in the district that has agreed to
accept the transferred assets; or
(2) administer the property, assets, and debts in
accordance with Section 5.007 of this Act.
(b) If the district transfers the land, buildings,
improvements, equipment, and other assets to a county or other
governmental entity, the county or entity assumes all debts and
obligations of the district at the time of the transfer, and the
district is dissolved.
SECTION 5.007. ADMINISTRATION OF PROPERTY, DEBTS, AND
ASSETS AFTER DISSOLUTION. (a) If the district does not transfer
the land, buildings, improvements, equipment, and other assets to a
county or another governmental entity in the district, the board
shall continue to control and administer the property, debts, and
assets of the district until all money has been disposed of and all
district debts have been paid or settled.
(b) After the board finds that the district is dissolved,
the board shall:
(1) determine the debt owed by the district; and
(2) impose on the property included in the district's
tax rolls a tax that is in proportion of the debt to the property
value.
(c) The board may institute a suit to enforce payment of
taxes and to foreclose liens to secure the payment of taxes due the
district.
SECTION 5.008. RETURN OF SURPLUS PROPERTY TAX MONEY. (a)
When all outstanding debts and obligations of the district are
paid, the board shall order the secretary to return the pro rata
share of all unused property tax money to each district taxpayer.
(b) A taxpayer may request that the taxpayer's share of
surplus property tax money be credited to the taxpayer's county
taxes. If a taxpayer requests the credit, the board shall direct
the secretary to transmit the funds to the county tax
assessor-collector.
SECTION 5.009. REPORT; DISSOLUTION ORDER. (a) After the
district has paid all of its debts and has disposed of all of its
assets and money as prescribed by Sections 5.007 and 5.008 of this
Act, the board shall file a written report with the commissioners
court of each county in which the district is located containing a
summary of the board's actions in dissolving the district.
(b) Not later than the 10th day after the date it receives
the report and determines that the requirements of this section
have been fulfilled, the commissioners court of each county shall
enter an order dissolving the district.
ARTICLE 6. DISTRICT FINANCES
SECTION 6.001. FISCAL YEAR. (a) The district operates on
the fiscal year established by the board.
(b) The fiscal year may not be changed more than once in a
24-month period.
SECTION 6.002. ANNUAL AUDIT. The board annually shall have
an audit made of the financial condition of the district.
SECTION 6.003. DISTRICT AUDIT AND RECORDS. The annual
audit and other district records are open to inspection during
regular business hours at the principal office of the district,
subject to Chapter 181, Health and Safety Code, and any other state
or federal law regulating the privacy of health care information.
SECTION 6.004. ANNUAL BUDGET. (a) The administrator of the
district shall prepare a proposed annual budget for the district.
(b) The proposed budget must contain a complete financial
statement, including a statement of:
(1) the outstanding obligations of the district;
(2) the amount of cash on hand to the credit of each
fund of the district;
(3) the amount of money received by the district from
all sources during the previous year;
(4) the amount of money available to the district from
all sources during the ensuing year;
(5) the amount of the balances expected at the end of
the year in which the budget is being prepared;
(6) the estimated amount of revenues and balances
available to cover the proposed budget; and
(7) the estimated property tax rate that will be
required.
SECTION 6.005. NOTICE; HEARING; ADOPTION OF BUDGET. (a)
The board shall hold a public hearing on the proposed annual budget.
(b) The board shall publish notice of the hearing in a
newspaper of general circulation in the district not later than the
10th day before the date of the hearing.
(c) Any resident of the district is entitled to be present
and participate at the hearing.
(d) The board shall adopt a budget by acting on the budget
proposed by the administrator. The board may make any changes in
the proposed budget that in the board's judgment the interests of
the district demand.
(e) The budget is effective only after adoption by the
board.
SECTION 6.006. AMENDING BUDGET. After adoption, the annual
budget may be amended on the board's approval.
SECTION 6.007. LIMITATION ON EXPENDITURES. Money may not
be spent for an expense not included in the annual budget or an
amendment to the annual budget.
SECTION 6.008. SWORN STATEMENT. As soon as practicable
after the close of the fiscal year, the administrator shall prepare
for the board a sworn statement of the amount of money that belongs
to the district and an account of the disbursements of that money.
SECTION 6.009. SPENDING AND INVESTMENT LIMITATIONS. (a)
Except as otherwise provided by this Act, the district may not incur
a debt payable from revenues of the district other than the revenue
on hand or to be on hand in the current and immediately following
fiscal years of the district.
(b) The board may invest operating, depreciation, or
building reserves as permitted by law.
SECTION 6.010. REVENUE ANTICIPATION BORROWING. The
district may borrow money from any person for a term of less than 18
months for district purposes if the debt is payable from and secured
solely by money on hand or money reasonably expected to be on hand
during the remainder of the district fiscal year in which the debt
is created or during the following district fiscal year. The
district is not required to submit the evidence of indebtedness for
review, approval, or registry under Chapter 1202, Government Code.
SECTION 6.011. DEPOSITORY. (a) The board shall name at
least one bank to serve as depository for district funds.
(b) District funds and those transmitted to a bank for
payment of bonds or obligations issued or assumed by the district
shall be deposited as received with the depository bank and must
remain on deposit. This subsection does not limit the power of the
board to place a portion of district funds on time deposit or to
purchase certificates of deposit.
(c) Before the district deposits funds in a bank in an
amount that exceeds the maximum amount secured by the Federal
Deposit Insurance Corporation, the bank must execute a bond or
other security in an amount sufficient to secure from loss the
district funds that exceed the amount secured by the Federal
Deposit Insurance Corporation.
SECTION 6.012. PROHIBITION AGAINST PARTICIPATION IN TAX
INCREMENT FINANCING. (a) The district may not enter into a
contract or agreement to pay into a tax increment fund any of the
district's tax increment produced from property located in a
reinvestment zone under Chapter 311, Tax Code.
(b) The proceeds of a tax imposed under Section 8.001 of
this Act may not be used to make a payment into a tax increment fund
under Chapter 311, Tax Code, if that payment is prohibited by this
section.
(c) A project plan or reinvestment zone financing plan
approved under Section 311.011, Tax Code, on or after the effective
date of this Act may not include any of the district's tax increment
or any other funds derived from the district as a source of revenue
to finance or pay project costs.
ARTICLE 7. BONDS AND OTHER OBLIGATIONS
SECTION 7.001. GENERAL OBLIGATION BONDS. The board may
issue and sell bonds authorized by an election in the name and on
the faith and credit of the district for the purposes provided by
Section 7.009 of this Act.
SECTION 7.002. TAXES, REVENUES, AND OTHER FORMS OF
FINANCING TO PAY GENERAL OBLIGATION BONDS. (a) At the time the
bonds are issued by the district, the board shall impose a tax in an
amount sufficient to create an interest and sinking fund to pay the
principal of and interest on the bonds as they mature.
(b) The tax required by this section together with any other
tax the district imposes in any year may not exceed the limit
approved by the voters at the election authorizing the imposition
of taxes.
(c) General obligation bonds may also be secured by all or
part of the district's revenues and mortgages, deed of trust liens,
or other security interests on all or part of the district's
property. The board may grant the security interest on the basis of
the order of priority set by the board.
SECTION 7.003. GENERAL OBLIGATION BOND ELECTION. (a) The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the voters of the district voting at an
election held for that purpose under this section or under Article 2
of this Act.
(b) The board may order a bond election. The order calling
the election must state:
(1) the nature and date of the election;
(2) the hours during which the polls will be open;
(3) the location of the polling places;
(4) the amount of bonds to be authorized; and
(5) the maximum maturity of the bonds.
(c) Notice of a bond election shall be given as provided by
Section 1251.003, Government Code.
SECTION 7.004. REVENUE BONDS. (a) The board may issue
revenue bonds for the purposes provided by Section 7.009 of this
Act.
(b) The revenue bonds must be payable from and secured by a
pledge of all or part of the revenue derived from the operation of
the district's health services system. The board may grant the
security interest on the basis of the priority set by the board.
(c) The bonds may be additionally secured by a mortgage,
deed of trust lien, or other security interest on all or part of the
district property.
SECTION 7.005. REFUNDING BONDS. The board may, without an
election, issue refunding bonds to refund outstanding general
obligation bonds issued or assumed by the district and may impose a
tax to pay the bonds.
SECTION 7.006. INTEREST AND MATURITY. District bonds must
mature not later than the 50th anniversary of the date of their
issuance and must bear interest at a rate not to exceed that
provided by Chapter 1204, Government Code.
SECTION 7.007. EXECUTION OF BONDS. The board president
shall execute the bonds in the name of the district. The board
secretary shall countersign the bonds in the manner provided by
Chapter 618, Government Code. Printed facsimile signatures may be
substituted for the actual signatures of the board's president or
secretary.
SECTION 7.008. TAX STATUS OF BONDS. Because the district
created under this Act is a public entity performing an essential
public function, bonds issued by the district, any transaction
relating to the bonds, and profits made in the sale of the bonds are
free from taxation by the state or by any municipality, county,
special district, or other political subdivision of the state.
SECTION 7.009. USES OF BOND PROCEEDS. (a) General
obligation bonds and revenue bonds may be issued to:
(1) finance and refinance any capital expenditure of
the district;
(2) provide working capital for the construction of
any new project until the first anniversary of the date the
construction began;
(3) provide capitalized interest on the bonds for not
more than two years;
(4) pay the issuance costs of the bonds;
(5) pay for liquidity or credit enhancement for the
bonds; and
(6) provide debt service reserve funds for the bonds.
(b) In addition, bond proceeds may be used to acquire,
construct, renovate, improve, equip, and furnish property of any
type for district purposes.
SECTION 7.010. ADDITIONAL FINANCING AUTHORITY. The
district has all of the powers granted to an "issuer" by Chapter
1371, Government Code, including the authority to issue an
obligation as defined by Section 1371.001 of that code.
ARTICLE 8. PROPERTY TAXES
SECTION 8.001. TAX AUTHORIZED. (a) Subject to Section
8.003 of this Act, the board annually may impose property taxes in
an amount not to exceed the limit approved by the voters at the
election authorizing the imposition of taxes.
(b) The taxes may be used to pay:
(1) the indebtedness issued or assumed by the
district; and
(2) the maintenance and operating expenses of the
district.
(c) The district may not impose taxes to pay the principal
of or interest on revenue bonds issued under this Act.
SECTION 8.002. BOARD AUTHORITY. Notwithstanding Section
26.12, Tax Code, the board may impose taxes for the entire year in
which the district is created.
SECTION 8.003. TAX RATE. (a) The tax rate for all purposes
may not exceed one-third of the maximum tax rate authorized by
Section 9, Article IX, Texas Constitution.
(b) The board shall propose a tax rate after considering the
income of the district from sources other than taxation and the uses
to which the other income is committed or pledged with an allowance
made for contingencies in revenues and expenses. After the board
proposes a tax rate, the board shall submit a notice of the proposed
rate in writing to the oversight committee.
(c) The oversight committee may meet and veto the proposed
tax rate contained in the tax rate notice only if the proposed tax
rate is greater than the tax rate adopted for the preceding year. A
veto is not effective unless a copy of the minutes of the meeting of
the oversight committee at which the veto was adopted is delivered
to the board not later than the 30th day after the date on which the
tax rate notice is received by the oversight committee. The minutes
of the meeting must reflect that the veto was approved by resolution
adopted by the oversight committee in accordance with the
requirements of this Act.
(d) If the oversight committee fails to submit the veto
notice to the board in accordance with Subsection (c) of this
section or the proposed tax rate is not greater than the tax rate
adopted for the preceding year, the board shall adopt the proposed
tax rate.
(e) If the veto notice is delivered to the board in
accordance with the requirements of this section, the board shall
provide to the oversight committee a subsequent tax rate notice
containing a new proposed tax rate. The new proposed tax rate is
subject to the veto procedures prescribed by this section. If the
new proposed rate is not vetoed by the committee, the board shall
adopt that rate.
SECTION 8.004. TAX ASSESSMENT AND COLLECTION. (a) The Tax
Code governs the appraisal, assessment, and collection of district
taxes.
(b) The board may provide for the appointment of a tax
assessor-collector for the district or may contract for the
assessment and collection of taxes as provided by the Tax Code.
SECTION 8.005. SALES TAX. The board may impose a sales and
use tax in the manner and for the purposes prescribed by Subchapter
E, Chapter 285, Health and Safety Code.
ARTICLE 9. MISCELLANEOUS PROVISIONS
SECTION 9.001. LIMITATION ON STATE ASSISTANCE. The state
may not become obligated for the support or maintenance of the
district, and the legislature may not make a direct appropriation
for the construction, maintenance, or improvement of a facility of
the district.
SECTION 9.002. REQUIRED PUBLICATION. Proof of publication
of the notice required in the enactment of this Act under the
provisions of Section 9, Article IX, Texas Constitution, has been
made in the manner and form provided by law pertaining to the
enactment of local and special laws, and the notice is found and
declared proper and sufficient to satisfy the requirement.
SECTION 9.003. POWERS CUMULATIVE. The powers granted to
the district by this Act are cumulative of all other powers granted
by other laws that are by their terms applicable to the district.
SECTION 9.004. EFFECTIVE DATE. 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.