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  84R8615 CJC-F
 
  By: Hinojosa, Lucio S.B. No. 626
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the Hidalgo County Healthcare District; decreasing the
  possible maximum rate of a tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Chapter 1122, Special District
  Local Laws Code, is amended to read as follows:
  CHAPTER 1122. HIDALGO COUNTY HEALTHCARE [HOSPITAL] DISTRICT
         SECTION 2.  Section 1122.001(3), Special District Local Laws
  Code, is amended to read as follows:
               (3)  "District" means the Hidalgo County Healthcare
  [Hospital] District.
         SECTION 3.  Section 1122.002, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1122.002.  DISTRICT AUTHORIZATION.  The Hidalgo County
  Healthcare [Hospital] District may be created and, if created,
  operates and is financed as a hospital district as provided by
  Section 9, Article IX, Texas Constitution, and by this chapter.
         SECTION 4.  Sections 1122.021(b), (f), and (g), Special
  District Local Laws Code, are amended to read as follows:
         (b)  The Hidalgo County Commissioners Court shall order an
  election for the registered voters of Hidalgo County on the
  question of creation of the Hidalgo County Healthcare [Hospital]
  District if the commissioners court receives a petition requesting
  an election that is signed by at least 50 registered voters who are
  residents of Hidalgo County.
         (f)  The ballot for an election under this section must be
  printed to permit voting for or against the proposition: "The
  creation of the Hidalgo County Healthcare [Hospital] District,
  providing for the imposition of an ad valorem tax at a rate not to
  exceed 25 [75] cents on each $100 valuation on all taxable property
  in the district. The initial ad valorem tax shall be imposed at the
  rate of ______ (insert amount) cents on the $100 valuation of all
  taxable property in the district.  District funds shall be used for
  district purposes, including improving health care services for
  residents of Hidalgo County, supporting the School of Medicine at
  The University of Texas Rio Grande Valley, training physicians,
  nurses, and other health care professionals, obtaining federal or
  state funds for health care services, and providing community
  health clinics, primary care services, behavioral and mental health
  care services, and prevention and wellness programs."
         (g)  The Hidalgo County Commissioners Court shall find that
  the Hidalgo County Healthcare [Hospital] District is created if a
  majority of the voters voting in the election held under this
  section favor the creation of the district.
         SECTION 5.  Section 1122.051, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1122.051.  DIRECTORS; TERM. (a) If the creation of the
  district is approved at the election held under Section 1122.021,
  the district shall be governed by a [nine-member] board of nine
  directors, appointed as follows:
               (1)  the county judge of Hidalgo County shall appoint
  one director;
               (2)  each county commissioner serving on the Hidalgo
  County Commissioners Court shall appoint one director [four
  directors]; and
               (3) [(2)]  the governing bodies [body] of the four most
  populous municipalities located [municipality with the largest
  population] in Hidalgo County shall each appoint one director [two
  directors;
               [(3)     the governing body of the municipality with the
  second largest population in Hidalgo County shall appoint one
  director;
               [(4)     the governing body of a municipality with the
  third largest population in Hidalgo County shall appoint one
  director; and
               [(5)     the governing body of a municipality with the
  fourth largest population in Hidalgo County shall appoint one
  director].
         (b)  Directors serve staggered three-year [four-year] terms,
  with three [as near as possible to one-fourth of the] directors'
  terms expiring each year.  The [terms of the] initial directors
  appointed under this section shall draw lots as follows to
  determine [are as follows]:
               (1)  for the directors appointed by the governing
  bodies of the municipalities in Hidalgo County described by
  Subsection (a), [shall draw lots to determine] which director
  serves [two directors serve] a one-year term, which two directors
  serve [director serves] a two-year term, and which director serves
  a three-year term[, and which director serves a four-year term];
  and
               (2)  for the directors appointed by the Hidalgo County
  Commissioners Court, including the director appointed by the county
  judge of Hidalgo County, [shall draw lots to determine] which two
  directors serve [director serves] a one-year term, which director
  serves a two-year term, and which two directors serve [director
  serves] a three-year term[, and which director serves a four-year
  term].
         (c)  On expiration of the initial directors' terms,
  successor directors shall be appointed for a three-year term by the
  person or governing body that appointed the initial director.
         (d)  A director may not serve more than three [two]
  consecutive three-year [four-year] terms.
         SECTION 6.  Section 1122.052, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1122.052.  QUALIFICATIONS.  The Hidalgo County
  Commissioners Court shall by order provide for the qualifications
  of appointees to the board. The qualifications must provide that a
  person is not eligible for appointment to the board if the person
  is:
               (1)  an employee of Hidalgo County;
               (2)  an employee of a municipality located in the
  district;
               (3)  a district employee; or
               (4) [(3)]  related within the third degree of
  consanguinity or affinity, as determined under Subchapter B,
  Chapter 573, Government Code, to a member of the Commissioners
  Court of Hidalgo County, to a member of the governing body of a
  municipality located in the district, [commissioners court] or to a
  person described by Subdivision (1), [or] (2), or (3).
         SECTION 7.  Section 1122.056, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1122.056.  BOARD VACANCY.  A [If a] vacancy [occurs] in
  the office of director[, the remaining directors] shall be filled
  [appoint a director] for the remainder of the unexpired term by
  appointment by the person or governing body that appointed the
  vacating director.
         SECTION 8.  Sections 1122.101, 1122.102, 1122.103, and
  1122.106, Special District Local Laws Code, are amended to read as
  follows:
         Sec. 1122.101.  DISTRICT RESPONSIBILITY.  The district has
  full responsibility for operating hospital facilities and
  providing medical and hospital care for the district's indigent
  [needy] residents as required under this chapter, another
  applicable statute, and the constitution of this state.
         Sec. 1122.102.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  
  The board shall manage, control, and administer the district
  [hospital system] and the money and resources of the district.
         Sec. 1122.103.  RULES.  The board may adopt rules governing:
               (1)  the operation of the district and any district
  hospital [and hospital system]; and
               (2)  the duties, functions, and responsibilities of
  district staff and employees.
         Sec. 1122.106.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a)  The board shall determine:
               (1)  the type, number, and location of buildings
  required to maintain an adequate health care district [hospital
  system]; and
               (2)  the type of equipment necessary to provide medical
  [for hospital] care in the district.
         (b)  The board may:
               (1)  acquire property, facilities, and equipment for
  use by the district [for use in the hospital system];
               (2)  mortgage or pledge the property, facilities, or
  equipment as security for payment of the purchase price;
               (3)  sell or otherwise dispose of property, facilities,
  or equipment for the district; or
               (4)  lease hospital facilities for the district.
         SECTION 9.  Section 1122.151(a), Special District Local Laws
  Code, is amended to read as follows:
         (a)  The board and the district administrator shall jointly
  prepare a proposed annual budget for the district.
         SECTION 10.  Sections 1122.152(d) and (e), Special District
  Local Laws Code, are amended to read as follows:
         (d)  At the conclusion of the hearing, the board shall adopt
  a budget by acting on the proposed budget [proposed by the district
  administrator].  The board may make a change in the proposed budget
  that the board determines to be in the interests of the taxpayers.
         (e)  The budget is effective only after:
               (1)  adoption by the board; and
               (2)  approval by the Hidalgo County Commissioners
  Court.
         SECTION 11.  Section 1122.153, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1122.153.  AMENDMENT OF BUDGET.  After the budget is
  adopted, the budget may be amended if the proposed amendment is:
               (1)  adopted by the board; and
               (2)  approved by the Hidalgo County Commissioners Court
  [on the board's approval].
         SECTION 12.  Section 1122.201, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1122.201.  GENERAL OBLIGATION BONDS.  If authorized by
  an election, the board may issue and sell general obligation bonds
  in the name and on the faith and credit of the district to:
               (1)  purchase, construct, acquire, repair, or renovate
  buildings or improvements;
               (2)  equip buildings or improvements for district
  [hospital] purposes; or
               (3)  acquire and operate a mobile emergency medical
  service.
         SECTION 13.  Sections 1122.204(a) and (b), Special District
  Local Laws Code, are amended to read as follows:
         (a)  The board may issue revenue bonds to:
               (1)  acquire, purchase, construct, repair, renovate,
  or equip buildings or improvements for district [hospital]
  purposes;
               (2)  acquire sites to be used for district [hospital]
  purposes; or
               (3)  acquire and operate a mobile emergency medical
  service to assist the district in carrying out its [hospital]
  purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of the revenues derived from the operation of the
  district [district's hospital system].
         SECTION 14.  Section 1122.251(a), Special District Local
  Laws Code, is amended to read as follows:
         (a)  The board shall impose a tax on all property in the
  district subject to [hospital district] taxation by the district.
         SECTION 15.  The heading to Section 1122.252, Special
  District Local Laws Code, is amended to read as follows:
         Sec. 1122.252.  LIMITATION ON TAX RATE.
         SECTION 16.  Section 1122.252(a), Special District Local
  Laws Code, is amended to read as follows:
         (a)  Unless a higher rate is approved at an election held as
  provided by Section 1122.2521, the [The] tax rate on all taxable
  property in the district for all purposes may not exceed 25 [75]
  cents on each $100 valuation of the property according to the most
  recent certified tax appraisal roll of the district.
         SECTION 17.  Subchapter F, Chapter 1122, Special District
  Local Laws Code, is amended by adding Sections 1122.2521,
  1122.2522, 1122.2523, and 1122.2524 to read as follows:
         Sec. 1122.2521.  ELECTION REQUIRED TO INCREASE TAX RATE.
  (a) The board may order an election to increase the district's
  maximum ad valorem tax rate to a rate greater than the maximum rate
  provided by Section 1122.252.
         (b)  The ballot for an election held under this section must
  be printed to permit voting for or against the proposition: "The
  imposition of taxes by the Hidalgo County Healthcare District for
  district purposes at a rate not to exceed ____ (insert amount) cents
  on the $100 valuation of all property in the district."
         (c)  The board may impose taxes at the rate authorized by the
  proposition if a majority of voters voting at an election held under
  this section favor the proposition.
         (d)  This section does not authorize the board to impose
  taxes at a rate that exceeds the maximum ad valorem tax rate
  authorized by Section 9, Article IX, Texas Constitution.
         (e)  Section 41.001(a), Election Code, does not apply to an
  election ordered under this section.
         Sec. 1122.2522.  ROLLBACK TAX RATE PROVISIONS APPLICABLE.
  (a)  If in any year the board adopts a tax rate that exceeds the
  rollback tax rate calculated as provided by Chapter 26, Tax Code,
  the qualified voters of the district by petition may require that an
  election be held to determine whether or not to reduce the tax rate
  adopted by the board for that year to the rollback tax rate.
         (b)  To the extent a conflict exists between this section and
  a provision of the Tax Code, the provision of the Tax Code prevails.
         Sec. 1122.2523.  RESIDENCE HOMESTEAD TAX PROVISIONS
  APPLICABLE. (a) The board shall ensure that all district residents
  receive all ad valorem tax exemptions and limitations that the
  residents are entitled to receive under the constitution and the
  Tax Code, including the exemption of the total appraised value of
  the residence homestead of a fully disabled veteran or the disabled
  veteran's surviving spouse required by Section 11.131, Tax Code.
         (b)  The board shall adopt an exemption from ad valorem
  taxation by the district of a portion of the appraised value of a
  district resident's residence homestead as provided by Section
  11.13(d), Tax Code. Unless the board specifies a larger amount as
  provided by Section 11.13(e), Tax Code, the amount of the exemption
  required to be adopted by the board under this subsection is $3,000
  of the appraised value of a district resident's residence
  homestead. Section 11.13(f), Tax Code, applies to an exemption
  adopted by the board under this subsection.
         Sec. 1122.2524.  PROHIBITION ON PARTICIPATION IN TAX
  INCREMENT FUND. The district may not enter into an agreement to
  participate in a reinvestment zone designated by a municipality or
  a county under Chapter 311, Tax Code.
         SECTION 18.  Section 1122.303, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1122.303.  BALLOT.  The ballot for an election under
  this subchapter must be printed to permit voting for or against the
  proposition: "The dissolution of the Hidalgo County Healthcare
  [Hospital] District."
         SECTION 19.  On the creation of the Hidalgo County
  Healthcare District, or as soon as practicable after the district
  is created, the Commissioners Court of Hidalgo County shall
  transfer to the district all operating funds, and any funds held in
  reserve for operating expenses, that have been budgeted by the
  county to pay the costs associated with administering a county
  program to provide to residents of the district indigent health
  care assistance under Chapter 61, Health and Safety Code, during
  the fiscal year in which the district is created.
         SECTION 20.  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, 2015.