Invisible Government: Special Purpose Districts in Texas - Senate

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SPOTLIGHT
(County Hospital Authorities), and 265 (Joint Municipal
and County Hospitals), Health and Safety Code, set
forth the provisions for the creation of a municipal,
county, or joint municipal and county hospital authority.
Hospital authorities are created by municipal ordinance
or county order of the respective governing body and
are governed by an appointed board of directors. Such
authorities do not have taxing power; however, they
may issue revenue bonds. Such authorities do have the
power of eminent domain.
ffHealth Services Districts
Chapter 287 (Health Services Districts), Health and
Safety Code, authorizes the creation of a health services
district. A health services district is created by one or
more counties and one or more hospital districts by
adopting concurrent orders by contract to provide health
care services to indigent residents of the district on a
sliding-fee scale. A board of directors is appointed by
the county judge of the county that creates the district.
The number of directors depends on the population of
the county.
Health services districts are not authorized to impose
an ad valorem tax or issue general obligation bonds;
however, such districts are authorized to issue revenue
bonds and impose a sales tax. In some counties, the
sales and use tax of the health services district is in
addition to a county sales and use tax. Revenue from
the tax may only be used to provide health services in
the county, such as ambulance or emergency services
for the elderly and ill rural county residents. The
county may also allocate all or part of the revenue to
a county hospital authority or hospital district that has
Special Purpose Districts
the same boundaries as the county or is participating in
the health services district.
A health services district dissolves when the contract
between the counties and hospital districts that
created the health services district expires or when the
counties and hospital districts adopt concurrent orders
terminating the contract.
ffMosquito Control Districts
Chapter 344 (Mosquito Control Districts), Health and
Safety Code, authorizes the creation of mosquito control
districts, which are created for the purpose of eradicating
mosquitoes in the area of the district. These districts are
created upon petition by at least 200 qualified voters of
the county and upon an election to establish the district
and levy a tax not to exceed 25 cents on each $100 of
the taxable value of property within the district. The
commissioners court in each county in which a mosquito
control district is established is required to appoint an
advisory commission of five members and a mosquito
control engineer who make recommendations to the
commissioners court on measures and expenditures that
are necessary to eradicate mosquitoes. The statute sets
forth provisions for merging districts and provides for
dissolution of the district upon petition and election.
ffEmergency Services Districts
In the past, emergency services districts and rural fire
prevention districts performed similar functions by
providing emergency services to district residents.
A constitutional amendment was approved in 2003
converting rural fire prevention districts into emergency
services districts and repealing the constitutional
authority for the creation of rural fire prevention
districts as well as the statutory basis for rural fire
districts, Chapter 794 (Rural Fire Prevention Districts)
of the Health and Safety Code. The constitutional
amendment resulted in an increase in taxing authority
from three cents to 10 cents per $100 valuation of
taxable property.
The creation of emergency services districts is
authorized under Section 48-e, Article III, Texas
Constitution. Emergency services districts support and
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