S.B.ANo.A2034ANACTrelatingtothecreationoftheCameronCountyHealthcareDistrict;grantingtheauthoritytoimposeataxandissuebonds;grantingthepowerofeminentdomain.BEITENACTEDBYTHELEGISLATUREOFTHESTATEOFTEXAS:SECTIONA1.AASubtitleA,Title3,SpecialDistrictLocalLawsCode,isamendedbyaddingChapter1121toreadasfollows:CHAPTER1121. CAMERONCOUNTYHEALTHCAREDISTRICTSUBCHAPTERA. GENERALPROVISIONSSec.A1121.001.AADEFINITIONS. Inthischapter:(1)AA"Board" means the board of directors of thedistrict.(2)AA"Director"meansamemberoftheboard.(3)AA"District" means the Cameron County HealthcareDistrict.Sec.A1121.002.AADISTRICTAUTHORIZATION. TheCameronCountyHealthcareDistrictmaybecreatedand,ifcreated,operatesandisfinanced as a hospital district as provided by Section 9, ArticleIX,TexasConstitution,andbythischapter.Sec.A1121.003.AAESSENTIALPUBLICFUNCTION. Thedistrictisapublicentityperforminganessentialpublicfunction.Sec.A1121.004.AADISTRICT TERRITORY. The boundaries of thedistrictarecoextensivewiththeboundariesofCameronCounty.Sec.A1121.005.AADISTRICT SUPPORT AND MAINTENANCE NOT STATE1234567891011121314151617181920212223241OBLIGATION. The state may not be obligated for the support ormaintenanceofthedistrict.Sec.A1121.006.AARESTRICTION ON STATE FINANCIAL ASSISTANCE.The legislature may not make a direct appropriation for theconstruction,maintenance,orimprovementofadistrictfacility.SUBCHAPTERA-1. TEMPORARYPROVISIONSSec.A1121.021.AACREATION ELECTION; ORDERING ELECTION.(a)AAThedistrictmaybecreatedandataxmaybeauthorizedonlyifthe creation and the tax are approved by a majority of theregisteredvotersoftheterritoryoftheproposeddistrictvotingatanelectioncalledandheldforthatpurpose.(b)AAThe Cameron County Commissioners Court shall order anelection for the registered voters of Cameron County on thequestion of creation of the Cameron County Healthcare District ifthecommissionerscourtreceivesapetitionrequestinganelectionthatissignedbyatleast100registeredvoterswhoareresidentsofCameronCounty.(c)AAThe order calling an election under this section muststate:(1)AAthe nature of the election, including thepropositionthatistoappearontheballot;(2)AAthedateoftheelection;(3)AAthehoursduringwhichthepollswillbeopen;and(4)AAthelocationofthepollingplaces.(d)AASection41.001(a),ElectionCode,doesnotapplytoanelectionorderedunderthissection.(e)AAThe Cameron County Commissioners Court shall give123456789101112131415161718192021222324252627S.B.ANo.A20342notice of an election under this section by publishing asubstantialcopyoftheelectionorderinanewspaperwithgeneralcirculation in Cameron County once a week for two consecutiveweeks. The first publication must appear not later than the 30thdaybeforethedatesetfortheelection.(f)AAThe ballot for an election under this section must beprinted to permit voting for or against the proposition: "Thecreationofthe CameronCountyHealthcare District,providingforthe imposition of an ad valorem tax at a rate determined by theboard of directors of the district, which rate may not exceed 25cents on each $100 valuation of all taxable property in thedistrict. District funds shall be used for district purposes,including providing medical and hospital care for the needyinhabitantsof CameronCounty,improvinghealthcare servicesforinhabitantsofCameronCounty,supportingtheSchoolofMedicineatThe University of Texas Rio Grande Valley, training physicians,nurses,andotherhealthcareprofessionals,obtainingfederalorstate funds for health care services, and providing communityhealthclinics,primarycareservices,behavioralandmentalhealthcareservices,andpreventionandwellnessprograms."(g)AATheCameronCountyCommissionersCourtshallfindthattheCameronCountyHealthcareDistrictiscreatedifamajorityofthevotersvotingintheelectionheldunderthissectionfavorthecreationofthedistrict.SUBCHAPTERB. DISTRICTADMINISTRATIONSec.A1121.051.AADIRECTORS; TERM. (a)AAIf the creation ofthe district is approved at the election held under Section123456789101112131415161718192021222324252627S.B.ANo.A203431121.021, the district shall be governed by a board of ninedirectors,appointedasfollows:(1)AAthe county judge of Cameron County shall appointonedirector;(2)AAeach county commissioner serving on the CameronCountyCommissionersCourtshallappointonedirector;and(3)AAthe governing bodies of the four municipalitieslocatedinCameronCountythathavethegreatestamountsoftaxablevalue of property taxable by the district located within theircorporateboundariesshalleachappointonedirector.(b)AADirectorsservestaggeredthree-yearterms,withthreedirectors terms expiring each year. The initial directorsappointed under this section shall draw lots as follows todetermine:(1)AAfor the directors appointed by the governingbodies of the municipalities in Cameron County described bySubsection (a), which director serves a one-year term, which twodirectors serve a two-year term, and which director serves athree-yearterm;and(2)AAforthedirectorsappointedbytheCameronCountyCommissionersCourt,includingthedirectorappointedbythecountyjudgeofCameronCounty,whichtwodirectorsserveaone-yearterm,which director serves a two-year term, and which two directorsserveathree-yearterm.(c)AAOn expiration of the initial directors terms,successordirectorsshallbeappointedforathree-yeartermbythepersonorgoverningbodythatappointedtheinitialdirector.123456789101112131415161718192021222324252627S.B.ANo.A20344(d)AAA director may not serve more than three consecutivethree-yearterms.Sec.A1121.052.AAELIGIBILITY FOR APPOINTMENT TO BOARD. Aperson is not eligible for appointment to the board if the personis:(1)AAanemployeeofCameronCounty;(2)AAan employee of a municipality located in thedistrict;(3)AAadistrictemployee;or(4)AArelated within the third degree of consanguinityor affinity, as determined under Subchapter B, Chapter 573,GovernmentCode,toamemberoftheCommissionersCourtofCameronCounty,toamemberofthegoverningbodyofamunicipalitylocatedinthedistrict,ortoapersondescribedbySubdivision(1),(2),or(3).Sec.A1121.053.AAOFFICERS. (a)AAThe board shall elect fromamongthedirectors:(1)AAachair;and(2)AAavicechairtopresideinthechairsabsence.(b)AAThe board shall elect a director or the districtadministratortoserveassecretary.Sec.A1121.054.AACOMPENSATION;REIMBURSEMENT. Adirectororofficer serves without compensation but may be reimbursed foractual expenses incurred in the performance of official duties.Theexpensesmustbe:(1)AAreportedinthedistrictsrecords;and(2)AAapprovedbytheboard.123456789101112131415161718192021222324252627S.B.ANo.A20345Sec.A1121.055.AADIRECTORS BOND. (a)AABefore assuming thedutiesofoffice,eachdirectormustexecuteabondintheamountof$5,000 payable to the district and conditioned on the faithfulperformanceofthedirectorsduties.(b)AAThe bond shall be kept in the permanent records of thedistrict.(c)AAThe board may pay for a directors bond with districtmoney.Sec.A1121.056.AABOARD VACANCY. A vacancy in the office ofdirectorshallbefilledfortheremainderoftheunexpiredtermbyappointment by the person or governing body that appointed thevacatingdirector.Sec.A1121.057.AAVOTING REQUIREMENT. A concurrence of amajority of the directors voting is necessary in matters relatingtodistrictbusiness.Sec.A1121.058.AADISTRICT ADMINISTRATOR; ADMINISTRATORSBOND. (a)AAThe board may appoint a qualified person as districtadministrator.(b)AAThe district administrator serves at the will of theboard.(c)AAThedistrictadministratorisentitledtocompensationdeterminedbytheboard.(d)AABefore assuming the duties of district administrator,theadministratormustexecuteabondpayabletothedistrictinanamount not less than $5,000, as determined by the board,conditioned on the faithful performance of the administratorsduties.123456789101112131415161718192021222324252627S.B.ANo.A20346(e)AATheboardmaypayforthebondwithdistrictmoney.Sec.A1121.059.AAGENERAL DUTIES OF DISTRICT ADMINISTRATOR.Subject to the limitations prescribed by the board, the districtadministratorshall:(1)AAsupervisetheworkandactivitiesofthedistrict;and(2)AAdirectthegeneralaffairsofthedistrict.Sec.A1121.060.AAASSISTANTDISTRICTADMINISTRATOR;ATTORNEY.(a)AATheboardmayappointqualifiedpersonsasassistantdistrictadministratorandattorneyforthedistrict.(b)AAThe assistant district administrator and attorney forthedistrictserveatthewilloftheboard.(c)AAThe assistant district administrator and attorney forthedistrictareentitledtocompensationdeterminedbytheboard.Sec.A1121.061.AAEMPLOYEES. (a)AAThe district may employnurses, technicians, fiscal agents, accountants, architects,additionalattorneys,andothernecessaryemployees.(b)AATheboardmaydelegatetothedistrictadministratortheauthoritytoemploypersonsforthedistrict.Sec.A1121.062.AARECRUITMENTOFMEDICALSTAFFANDEMPLOYEES.Theboardmayspenddistrictmoney,enterintoagreements,andtakeothernecessaryactionstorecruitphysiciansandotherpersonstoserveasmedicalstaffmembersordistrictemployees. Theactionsmayinclude:(1)AAadvertisingandmarketing;(2)AApaying travel, recruitment, and relocationexpenses;123456789101112131415161718192021222324252627S.B.ANo.A20347(3)AAprovidingaloanorscholarshiptoaphysicianoraperson currently enrolled in health care education courses at aninstitution of higher education who contracts to become a medicalstaffmemberordistrictemployee;or(4)AAcontracting with a full-time medical student orotherstudentinahealthoccupationwhoisenrolledinandingoodstandingatanaccreditedmedicalschool,college,oruniversitytopay the students tuition or other expenses for the considerationof the student agreeing to serve as an employee or independentcontractorforthedistrict.Sec.A1121.063.AAAPPOINTMENT AND REMOVAL OF MEDICAL STAFF.Theboardmay:(1)AAappointtothemedicalstaffanydoctortheboardconsidersnecessaryfortheefficientoperationofthedistrict;(2)AAremove any doctor from the medical staff, afterdueprocess,iftheboardconsidersthedoctorsremovalnecessaryfortheefficientoperationofthedistrict;and(3)AAmake temporary appointments to the medical staffastheboardconsidersnecessary.Sec.A1121.064.AARETIREMENTBENEFITS. Theboardmayprovideretirementbenefitsfordistrictemployeesby:(1)AAestablishing or administering a retirementprogram;or(2)AAparticipatingin:(A)AAthe Texas County and District RetirementSystem;or(B)AAanotherstatewideretirementsysteminwhich123456789101112131415161718192021222324252627S.B.ANo.A20348thedistrictiseligibletoparticipate.SUBCHAPTERC. POWERSANDDUTIESSec.A1121.101.AADISTRICT RESPONSIBILITY. The district hasfull responsibility for operating the districts hospitalfacilities and providing medical and hospital care for thedistrictsneedyinhabitants.Sec.A1121.102.AAMANAGEMENT, CONTROL, AND ADMINISTRATION.The board shall manage, control, and administer the district andthemoneyandresourcesofthedistrict.Sec.A1121.103.AARULES. Theboardmayadoptrulesgoverning:(1)AAthe operation of the district and any districthospital;and(2)AAthe duties, functions, and responsibilities ofdistrictstaffandemployees.Sec.A1121.104.AAPURCHASING AND ACCOUNTING PROCEDURES. Theboardmayprescribe:(1)AAthemethodofmakingpurchasesandexpendituresbyandforthedistrict;and(2)AAaccounting and control procedures for thedistrict.Sec.A1121.105.AAPROVISION OF CERTAIN HEALTH SERVICES.(a)AAThe district may operate or provide for the operation of amobileemergencymedicalservice.(b)AAThe district may operate or provide for home healthservices, long-term care, skilled nursing care, intermediatenursingcare,orhospicecare.Sec.A1121.106.AADISTRICT PROPERTY, FACILITIES, AND123456789101112131415161718192021222324252627S.B.ANo.A20349EQUIPMENT. (a)AATheboardshalldetermine:(1)AAthe type, number, and location of buildingsrequiredtomaintainanadequatehealthcaredistrict;and(2)AAthetypeofequipmentnecessarytoprovidemedicalcareinthedistrict.(b)AATheboardmay:(1)AAacquire property, facilities, and equipment forusebythedistrict;(2)AAmortgage or pledge the property, facilities, orequipmentassecurityforpaymentofthepurchaseprice;(3)AAsellorotherwisedisposeofproperty,facilities,orequipmentforthedistrict;or(4)AAleasehospitalfacilitiesforthedistrict.Sec.A1121.107.AAOPERATING AND MANAGEMENT CONTRACTS. Theboardmayenterintooperatingormanagementcontractsrelatingtohospitalorotherhealthcarefacilitiesforthedistrict.Sec.A1121.108.AASERVICE CONTRACTS. (a)AAThe board maycontractwith publicor privatehospitals, clinics,physiciansorotherhealthcare providers,politicalsubdivisions ofthe state,accreditedpublicorprivatemedicalschoolsandtheiraffiliatednonprofit entities or faculty practice plans, allied healtheducation institutions, or state and federal agencies for thedistrict to provide a mobile emergency medical service or othermedical, hospital, or health care services needed to provide forthe investigatory, welfare, medical, or health care needs ofinhabitantsofthedistrict.(b)AAThe board may contract with a person to receive or123456789101112131415161718192021222324252627S.B.ANo.A203410supplytheservicestheboardconsidersnecessaryfortheeffectiveoperationofthedistrict.Sec.A1121.109.AAEMINENT DOMAIN. (a)AAThe district mayexercise the power of eminent domain to acquire a fee simple orother interest in property located in district territory if theinterest is necessary for the district to exercise the rights orauthorityconferredbythischapter.(b)AAThedistrictmustexercisethepowerofeminentdomaininthemannerprovidedbyChapter21,PropertyCode,exceptthatthedistrictisnotrequiredtodepositwiththetrialcourtmoneyorabondasprovidedbySection21.021(a),PropertyCode.(c)AAIn a condemnation proceeding brought by the district,thedistrictisnotrequiredto:(1)AApay in advance or provide bond or other securityforcostsinthetrialcourt;(2)AAprovide bond for the issuance of a temporaryrestrainingorderoratemporaryinjunction;or(3)AAprovideabondforcostsorasupersedeasbondonanappealorpetitionforreview.Sec.A1121.110.AACOSTOFRELOCATINGORALTERINGPROPERTY. Inexercising the power of eminent domain, if the board requiresrelocating, raising, lowering, rerouting, changing the grade, oraltering the construction of any railroad, highway, pipeline, orelectric transmission and electric distribution, telegraph, ortelephoneline,conduit,pole,orfacility,thedistrictshallpaythe actual cost of that activity to provide a comparablereplacement, without enhancement of facilities, after deducting123456789101112131415161718192021222324252627S.B.ANo.A203411thenetsalvagevaluederivedfromtheoldfacility.Sec.A1121.111.AAGIFTSANDENDOWMENTS. Theboardmayacceptfor the district a gift or endowment to be held in trust for anypurpose and under any direction, limitation, or provision inwritingbythedonorthatisconsistentwiththepropermanagementofthedistrict.Sec.A1121.112.AAPAYMENT FOR TREATMENT; PROCEDURES.(a)AAWhen a person who resides in the district is admitted as apatienttoadistrictfacilityorreceivesmedicalorhospitalcarefrom the district, the district administrator may have an inquirymadeintothefinancialcircumstancesof:(1)AAthepatient;and(2)AAa relative of the patient who is legallyresponsibleforthepatientssupport.(b)AATo the extent that the patient or a relative of thepatientwhoislegallyresponsibleforthepatientssupportcannotpay for care and treatment provided by the district, the districtshallsupplythecareandtreatmentwithoutchargingthepatientorthepatientsrelative.(c)AAOn determining that the patient or a relative legallyresponsibleforthepatientssupportcanpayforallorpartofthecare and treatment provided by the district, the districtadministratorshallreportthatdeterminationtotheboard,andtheboardshallissueanorderdirectingthepatientortherelativetopaythedistrictaspecifiedamounteachweek. Theamountmustbebasedonthepersonsabilitytopay.(d)AAThedistrictadministratormaycollectmoneyowedtothe123456789101112131415161718192021222324252627S.B.ANo.A203412district from the patients estate or from that of a relativelegally responsible for the patients support in the mannerprovidedbylawforthecollectionofexpensesinthelastillnessofadeceasedperson.(e)AAIfthereisadisputerelatingtoapersonsabilitytopay or if the district administrator has any doubt concerning apersons ability to pay, the board shall call witnesses, hear andresolve the question, and issue a final order. The order may beappealed to a district court in Cameron County. The substantialevidenceruleappliestoanappealunderthissubsection.Sec.A1121.113.AAREIMBURSEMENT FOR SERVICES. (a)AAIf thedistrictprovidescareortreatmenttoasickorinjuredpersonwhoisnotaninhabitantofCameronCounty,theboardshallrequirethecounty, municipality, or public hospital located outside of thedistrictandinwhichthepersonisaninhabitanttoreimbursethedistrict for the districts care and treatment of that person asprovidedbyChapter61,HealthandSafetyCode.(b)AATheboardshallrequirethesheriffofCameronCountytoreimburse the district for the districts care and treatment of apersonwhoisconfinedinajailfacilityofCameronCountyandisnotaresidentofthedistrict.(c)AAOn behalf of the district, the board may contract withthe state or federal government for that government to reimbursethedistrictfortreatmentofasickorinjuredperson.Sec.A1121.114.AANONPROFIT CORPORATION. (a)AAThe districtmay create and sponsor a nonprofit corporation under the BusinessOrganizationsCodeandmaycontributemoneytoorsolicitmoneyfor123456789101112131415161718192021222324252627S.B.ANo.A203413thecorporation.(b)AAAcorporationcreatedunderthissectionmayusemoneycontributedbythedistrictonlyforadistrictpurpose,includingthe provision of health care or other services the district isauthorizedtoprovideunderthischapter.(c)AAThe corporation may invest the corporations money inany manner in which the district may invest the districts money,includinginvestingmoneyasauthorizedbyChapter2256,GovernmentCode.(d)AAThe board shall establish controls to ensure that thecorporationusesitsmoneyasrequiredbythissection.Sec.A1121.115.AALOANS AND GRANTS FOR ECONOMIC DEVELOPMENTPURPOSES. Under the authority granted by Section 52-a, ArticleIII,TexasConstitution,thedistrictmayloanorgrantmoneytoanypersonforthedevelopmentofmedicaleducationandresearchinthedistrict.Sec.A1121.116.AAAUTHORITYTOSUEANDBESUED. Theboardmaysueandbesuedonbehalfofthedistrict.Sec.A1121.117.AACONSTRUCTION CONTRACTS; ADVERTISING FORCERTAIN CONSTRUCTION CONTRACTS. (a)AAThe board may enter into aconstructioncontractonthedistrictsbehalf.(b)AAThe board may enter into a construction contract onlyaftercompetitivebiddingasprovidedbySubchapterB,Chapter271,LocalGovernmentCode,iftheamountofthecontractisgreaterthantheamountprovidedbySection271.024ofthatcode.SUBCHAPTERD. GENERALFINANCIALPROVISIONSSec.A1121.151.AABUDGET. (a)AAThe board and the district123456789101112131415161718192021222324252627S.B.ANo.A203414administrator shall jointly prepare a proposed annual budget forthedistrict.(b)AAThe proposed budget must contain a complete financialstatement,includingastatementof:(1)AAtheoutstandingobligationsofthedistrict;(2)AAthe amount of cash on hand to the credit of eachfundofthedistrict;(3)AAtheamountofmoneyreceivedbythedistrictfromallsourcesduringthepreviousyear;(4)AAtheamountofmoneyavailabletothedistrictfromallsourcesduringtheensuingyear;(5)AAtheamountofthebalancesexpectedattheendoftheyearinwhichthebudgetisbeingprepared;(6)AAthe estimated amount of revenues and balancesavailabletocovertheproposedbudget;and(7)AAtheestimatedtaxraterequired.Sec.A1121.152.AANOTICE; HEARING; ADOPTION OF BUDGET.(a)AATheboardshallholdapublichearingontheproposedbudget.(b)AAThe board shall publish notice of the hearing in anewspaper with general circulation in the district not later thanthe10thdaybeforethedateofthehearing.(c)AAAny district resident is entitled to be present andparticipateatthehearing.(d)AAAttheconclusionofthehearing,theboardshalladopta budget by acting on the proposed budget. The board may make achangeintheproposedbudgetthattheboarddeterminestobeintheinterestsofthetaxpayers.123456789101112131415161718192021222324252627S.B.ANo.A203415(e)AAThe budget is effective only after adoption by theboard.Sec.A1121.153.AAAMENDMENT OF BUDGET. After the budget isadopted, the budget may be amended if the proposed amendment isadoptedbytheboard.Sec.A1121.154.AAFISCAL YEAR. (a)AAThe district operatesaccordingtoafiscalyearestablishedbytheboard.(b)AAThefiscalyearmaynotbechanged:(1)AAduring a period in which revenue bonds of thedistrictareoutstanding;or(2)AAmorethanonceina24-monthperiod.Sec.A1121.155.AAANNUALAUDIT. Theboardshallhaveanannualauditmadeofthefinancialconditionofthedistrict.Sec.A1121.156.AAINSPECTION OF ANNUAL AUDIT AND DISTRICTRECORDS. The annual audit and other district records are open toinspectionduringregularbusinesshoursattheprincipalofficeofthedistrict.Sec.A1121.157.AAFINANCIAL REPORT. As soon as practicableafter the close of each fiscal year, the district administratorshall prepare for the board a sworn statement of the amount ofdistrictmoneyandanaccountofthedisbursementofthatmoney.Sec.A1121.158.AASHORT-TERM FINANCING. The district mayborrowmoneythroughshort-termfinancing.Sec.A1121.159.AADEBTLIMITATION. Exceptasprovidedbythischapter and Chapter 1207, Government Code, the district may notincur a debt payable from district revenue other than revenueavailableinthecurrentfiscalyearandtheimmediatelyfollowing123456789101112131415161718192021222324252627S.B.ANo.A203416fiscalyearofthedistrict.Sec.A1121.160.AADEPOSITORY. (a)AATheboardshallselectatleastonebanktoserveasadepositoryfordistrictmoney.(b)AAThe board may solicit bids from local financialinstitutions to determine which institution may serve as adepositoryfordistrictmoney.(c)AADistrictmoney,otherthanmoneyinvestedasprovidedbySection 1121.161 and money transmitted to a bank for payment ofbonds or obligations issued or assumed by the district, shall bedepositedasreceivedwiththedepositorybankandshallremainondeposit. Thissubsectiondoesnotlimittheboardspowertoplacepart of the districts money on time deposit or to purchasecertificatesofdeposit.Sec.A1121.161.AARESTRICTION ON INVESTMENT. The board mayinvestoperating,depreciation,orbuildingreservesonlyinfundsorsecuritiesspecifiedbyChapter2256,GovernmentCode.SUBCHAPTERE. BONDSSec.A1121.201.AAGENERALOBLIGATIONBONDS. Ifauthorizedbyanelection,theboardmayissueandsellgeneralobligationbondsinthenameandonthefaithandcreditofthedistrictto:(1)AApurchase,construct,acquire,repair,orrenovatebuildingsorimprovements;(2)AAequip buildings or improvements for districtpurposes;or(3)AAacquire and operate a mobile emergency medicalservice.Sec.A1121.202.AATAX TO PAY GENERAL OBLIGATION BONDS.123456789101112131415161718192021222324252627S.B.ANo.A203417(a)AAAt the time general obligation bonds are issued by thedistrict under Section 1121.201, the board shall impose an advalorem tax in an amount sufficient to create an interest andsinking fund to pay the principal of and interest on the bonds asthebondsmature.(b)AAThetaxrequiredbythissectiontogetherwithanyothertax the district imposes in any year may not exceed the limitapproved by the voters at the election authorizing the impositionoftaxes.Sec.A1121.203.AAGENERALOBLIGATIONBONDELECTION. (a)AAThedistrict may issue general obligation bonds only if the bonds areauthorized by a majority of the voters voting in an election heldforthatpurpose.(b)AATheboardmayorderabondelection. Theordercallingtheelectionmustspecify:(1)AAthenatureanddateoftheelection;(2)AAthehoursduringwhichthepollswillbeopen;(3)AAthelocationofpollingplaces;(4)AAtheamountsofthebondstobeauthorized;and(5)AAthemaximummaturityofthebonds.(c)AANotice of a bond election must be given as provided byChapter1251,GovernmentCode.(d)AATheboardshalldeclaretheresultsoftheelection.Sec.A1121.204.AAREVENUE BONDS. (a)AAThe board may issuerevenuebondsto:(1)AAacquire, purchase, construct, repair, renovate,orequipbuildingsorimprovementsfordistrictpurposes;123456789101112131415161718192021222324252627S.B.ANo.A203418(2)AAacquiresitestobeusedfordistrictpurposes;or(3)AAacquire and operate a mobile emergency medicalservicetoassistthedistrictincarryingoutitspurposes.(b)AAThebondsmustbepayablefromandsecuredbyapledgeofall or part of the revenues derived from the operation of thedistrict.(c)AAThe bonds may be additionally securedby a mortgage ordeedoftrustlienonallorpartofthedistrictproperty.(d)AAThe bonds must be issued in the manner provided bySections264.042,264.043,264.046,264.047,264.048,and264.049,Health and Safety Code, for issuance of revenue bonds by countyhospitalauthorities.Sec.A1121.205.AAMATURITY. District bonds must mature notlaterthan40yearsafterthedateoftheirissuance.Sec.A1121.206.AAEXECUTION OF BONDS. (a)AAThe board chairshallexecutedistrictbondsinthedistrictsname.(b)AATheboardsecretaryshallcountersignthebondsinthemannerprovidedbyChapter618,GovernmentCode.Sec.A1121.207.AABONDS NOT SUBJECT TO TAXATION. Thefollowingarenotsubjecttotaxationbythestateorbyapoliticalsubdivisionofthestate:(1)AAbondsissuedbythedistrict;(2)AAanytransactionrelatingtothebonds;and(3)AAprofitsmadeinthesaleofthebonds.SUBCHAPTERF. ADVALOREMTAXSec.A1121.251.AAIMPOSITION OF AD VALOREM TAX. (a)AATheboardshallimposeataxonallpropertyinthedistrictsubjectto123456789101112131415161718192021222324252627S.B.ANo.A203419taxationbythedistrict.(b)AAThetaxmaybeusedtopay:(1)AAindebtedness issued or assumed by the district;and(2)AAthe maintenance and operating expenses of thedistrict.(c)AAThedistrictmaynotimposeataxtopaytheprincipaloforinterestonrevenuebondsissuedunderthischapter.Sec.A1121.252.AALIMITATIONONTAXRATE. (a)AAThetaxrateonalltaxablepropertyinthedistrictforallpurposesmaynotexceed25 cents on each $100 valuation of the property according to themostrecentcertifiedtaxappraisalrollofthedistrict.(b)AAIn setting the tax rate, the board shall considerdistrictincomefromsourcesotherthantaxation.(c)AASection285.231,HealthandSafetyCode,doesnotapplytothedistrict.Sec.A1121.253.AAREDUCTIONINADVALOREMTAXRATEBYCOUNTY.TheCameronCountyCommissionersCourt,indeterminingthe countyadvaloremtaxrateforthefirstyearinwhichthedistrictimposesadvaloremtaxesonpropertyinthedistrict,shall:(1)AAtake into account the decrease in the amount thecountywillspendforhealthcarepurposesinthatyearbecausethedistrictisprovidinghealthcare servicespreviouslyprovidedorpaidforbythecounty;and(2)AAreduce the countys ad valorem tax rate inaccordancewiththedecreasedamountofrequiredspendingdescribedbySubdivision(1).123456789101112131415161718192021222324252627S.B.ANo.A203420Sec.A1121.254.AARESIDENCE HOMESTEAD TAX PROVISIONSAPPLICABLE. (a)AAThe board shall ensure that all districtresidents receive all ad valorem tax exemptions and limitationsthat the residents are entitled to receive under the constitutionandtheTaxCode.(b)AAThe board shall adopt an exemption from ad valoremtaxation by the district of a portion of the appraised value of adistrict residents residence homestead as provided by Section11.13(d),TaxCode. UnlesstheboardspecifiesalargeramountasprovidedbySection11.13(e),TaxCode,theamountoftheexemptionrequiredtobeadoptedbytheboardunderthissubsectionis$3,000of the appraised value of a district residents residencehomestead. Section 11.13(f), Tax Code, applies to an exemptionadoptedbytheboardunderthissubsection.Sec.A1121.255.AAPROHIBITION ON PARTICIPATION IN TAXINCREMENT FUND. The district may not enter into an agreement toparticipateinareinvestmentzonedesignatedbyamunicipalityoracountyunderChapter311,TaxCode.Sec.A1121.256.AATAX ASSESSOR-COLLECTOR. The board mayprovide for the appointment of a tax assessor-collector for thedistrictormaycontractfortheassessmentandcollectionoftaxesasprovidedbytheTaxCode.SUBCHAPTERG. DISSOLUTIONSec.A1121.301.AADISSOLUTION; ELECTION. (a)AAThe districtmaybedissolvedonlyonapprovalofamajorityofthevotersvotinginanelectionheldforthatpurpose.(b)AAThe board may order an election on the question of123456789101112131415161718192021222324252627S.B.ANo.A203421dissolvingthedistrictanddisposingofthedistrictsassetsandobligations.(c)AATheboardshallorderanelectioniftheboardreceivesa petition requesting an election that is signed by at least 15percentofthedistrictsregisteredvoters.(d)AATheordercallingtheelectionmuststate:(1)AAthe nature of the election, including thepropositionthatistoappearontheballot;(2)AAthedateoftheelection;(3)AAthehoursduringwhichthepollswillbeopen;and(4)AAthelocationofthepollingplaces.(e)AASection41.001(a),ElectionCode,doesnotapplytoanelectionorderedunderthissection.Sec.A1121.302.AANOTICE OF ELECTION. (a)AAThe board shallgive notice of an election under this subchapter by publishing asubstantialcopyoftheelectionorderinanewspaperwithgeneralcirculationinthedistrictonceaweekfortwoconsecutiveweeks.(b)AAThe first publication must appear not later than the30thdaybeforethedatesetfortheelection.Sec.A1121.303.AABALLOT. The ballot for an election underthissubchaptermustbeprintedtopermitvotingfororagainsttheproposition: "The dissolution of the Cameron County HealthcareDistrict."Sec.A1121.304.AAELECTIONRESULTS. (a)AAIfamajorityofthevotes in an election underthis subchapter favor dissolution, theboardshallorderthatthedistrictbedissolved.(b)AAIf a majority of the votes in an election under this123456789101112131415161718192021222324252627S.B.ANo.A203422subchapter do not favor dissolution, the board shall continue toadminister the district, and another election on the question ofdissolutionmaynotbeheldbeforethefirstanniversaryofthedateofthemostrecentelectiontodissolvethedistrict.Sec.A1121.305.AATRANSFER OR ADMINISTRATION OF ASSETS.(a)AAIfamajorityofthevotesinanelectionunderthissubchapterfavordissolution,theboardshall:(1)AAtransfer the land, buildings, improvements,equipment, and other assets belonging to the district to CameronCounty;or(2)AAadministertheproperty,assets,anddebtsofthedistrictuntilallmoneyhasbeendisposedofandalldistrictdebtshavebeenpaidorsettled.(b)AAIftheboardmakesthetransferunderSubsection(a)(1),thecountyassumesalldebtsandobligationsofthedistrictatthetimeofthetransferandthedistrictisdissolved.(c)AAIf Subsection (a)(1) does not apply and the boardadministers the property, assets, and debts of the district underSubsection (a)(2), the district is dissolved when all money hasbeendisposedofandalldistrictdebtshavebeenpaidorsettled.Sec.A1121.306.AAIMPOSITION OF TAX AND RETURN OF SURPLUSTAXES. (a)AAAfter the board determines that the district isdissolved,theboardshall:(1)AAdeterminethedebtowedbythedistrict;and(2)AAimposeonthepropertyincludedinthedistrictstax rolls a tax that is in proportion of the debt to the propertyvalue.123456789101112131415161718192021222324252627S.B.ANo.A203423(b)AAOnthepaymentofalloutstandingdebtsandobligationsof the district, the board shall order the secretary to return toeachdistricttaxpayerthetaxpayersproratashareofallunusedtaxmoney.(c)AAA taxpayer may request that the taxpayers share ofsurplustaxmoneybecreditedtothetaxpayerscountytaxes. Ifataxpayerrequeststhecredit,theboardshalldirectthesecretaryto transmit the funds to the tax assessor-collector for CameronCounty.Sec.A1121.307.AAREPORT; DISSOLUTION ORDER. (a)AAAfter thedistrict has paid all its debts and has disposed of all its moneyandotherassetsasprescribedbythissubchapter,theboardshallfile a written report with the Cameron County CommissionersCourtsummarizingtheboardsactionsindissolvingthedistrict.(b)AANot later than the 10th day after the date the CameronCountyCommissionersCourtreceivesthereportanddeterminesthatthe requirements of this subchapter have been fulfilled, thecommissioners court shall enter an order dissolving the districtandreleasingtheboardfromanyfurtherdutyorobligation.SECTIONA2.AAOnthecreationoftheCameronCountyHealthcareDistrict,orassoonaspracticableafterthedistrictiscreated,the Cameron County Commissioners Court shall transfer to thedistrict all operating funds, and any funds held in reserve foroperatingexpenses,thathavebeenbudgetedbythecountytopaythecostsassociatedwithadministeringacountyprogramtoprovidetoresidents of the district indigent health care assistance underChapter61,HealthandSafetyCode,duringthefiscalyearinwhich123456789101112131415161718192021222324252627S.B.ANo.A203424thedistrictiscreated.SECTIONA3.AAProof of publication of the notice required toenact Chapter 1121, Special District Local Laws Code, as added bythis Act, under the provisions of Section 9, Article IX, TexasConstitution,hasbeenmadeinthemannerandformprovidedbylawpertaining to the enactment of local and special laws, and thenotice is found and declared proper and sufficient to satisfy therequirement.SECTIONA4.AA(a)AAExcept as provided by Subsection (b) ofthis section, this Act takes effect immediately if it receives avote of two-thirds of all the members elected to each house, asprovidedbySection39,ArticleIII,TexasConstitution.(b)AAIf this Act does not receive the vote necessary forimmediateeffect:(1)AAthisActtakeseffectSeptember1,2015;and(2)AASection 1121.109, Special District Local LawsCode,asaddedbythisAct,hasnoeffect.1234567891011121314151617S.B.ANo.A203425______________________________ ______________________________PresidentoftheSenateAAAAAAAAAAAAASpeakeroftheHouseI hereby certify that S.B.ANo.A2034 passed the Senate onAprilA30,A2015,bythefollowingvote:AAYeasA30,NaysA1.______________________________AAAASecretaryoftheSenateI hereby certify that S.B.ANo.A2034 passed the House onMayA18,A2015, by the following vote:AAYeasA123, NaysA15,twoApresentnotvoting.______________________________AAAAChiefClerkoftheHouseApproved:______________________________AAAAAAAAAAAAADate______________________________AAAAAAAAAAAGovernorS.B.ANo.A203426