By: Haywood S.B. No. 1241
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the operation of the Muenster Hospital District.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 2, Chapter 477, Acts of the 59th
1-4 Legislature, Regular Session, 1965, is amended to read as follows:
1-5 Sec. 2. The District herein authorized to be created shall
1-6 provide for the establishment, administration, maintenance,
1-7 operation, and financing of a hospital or hospital system within
1-8 its boundaries and may provide any services or facilities necessary
1-9 for hospital or medical care, including rural health clinics,
1-10 outpatient clinics, nursing homes, home health care agencies,
1-11 extended care facilities, assisted living or personal care
1-12 facilities, and retirement, housing, and medical office buildings
1-13 <by the purchase, construction, acquisition, repair or renovation
1-14 of buildings and improvements, and the equipping of same and the
1-15 administration thereof for hospital purposes>. Such district shall
1-16 assume full responsibility for providing medical and hospital care
1-17 for its needy inhabitants. <It is hereby found and determined that
1-18 there is no hospital or hospital system or hospital facilities of
1-19 any nature presently owned by Cooke County or by any city or town
1-20 within the boundaries hereinabove set forth, it being further found
1-21 that the Muenster Hospital Authority has heretofore been
1-22 established under the provisions of Chapter 472, Acts of the 55th
1-23 Legislature, Regular Session, 1957, as amended (Article 4437e,
1-24 Vernon's Texas Civil Statutes), and that such Authority currently
2-1 operates and maintains a hospital within the boundaries hereinabove
2-2 set forth as a political subdivision of the State of Texas.>
2-3 SECTION 2. Section 4, Chapter 477, Acts of the 59th
2-4 Legislature, Regular Session, 1965, is amended to read as follows:
2-5 Sec. 4. (a) The Board of Directors consists of nine
2-6 Directors. Directors elected at elections held after May, 1997,
2-7 serve staggered three-year terms. <Upon the effective date of this
2-8 Act, the following named nine (9) persons shall be and constitute
2-9 the temporary or provisional Directors of the said District:>
2-10 <Alphonse Felderhoff>
2-11 <Robert Bayer>
2-12 <Ray Voth>
2-13 <John Bayer>
2-14 <Norbert J. Felderhoff>
2-15 <Alois Trubenbach>
2-16 <Albert Dangelmayr>
2-17 <E. T. Stormer>
2-18 <Joe Galloway>
2-19 <and each of said Directors shall subscribe to the Constitutional
2-20 oath of office within sixty (60) days of the effective date of this
2-21 Act. Should any of the named Directors refuse to act or for any
2-22 reason fail to qualify as herein required, the County Judge of
2-23 Cooke County shall fill such vacancy. The terms of office of the
2-24 first, third, fifth, seventh, and ninth named Directors shall
2-25 expire on the first Saturday in April of the year following the
2-26 election for the creation of the District, and the terms of the
2-27 second, fourth, sixth, and eighth named Directors shall expire on
3-1 the first Saturday in April of the second year following the
3-2 election for the creation of the District.> A regular election for
3-3 Directors shall be held on the first Saturday in May <April> of
3-4 each year. The regular election for Directors shall be ordered by
3-5 the Board and such order shall state the time, place and purpose of
3-6 the election, and the Board shall appoint the presiding judge who
3-7 shall appoint an assistant judge and such clerks as may be
3-8 required, and such election shall be ordered at least 45 <fifteen
3-9 (15)> days prior to the date on which it is to be held. Any person
3-10 desiring his name to be printed on the ballot as a candidate for
3-11 director shall file an application <a petition signed by not less
3-12 than fifteen (15) qualified voters asking that such name be printed
3-13 on the ballot,> with the secretary of the Board of Directors of the
3-14 District<. Such petition shall be filed with such secretary> at
3-15 least 31 <twenty-five (25)> days prior to the date of election.
3-16 Notice of such election shall be published one <(1)> time in a
3-17 newspaper of general circulation in the area of the District at
3-18 least 36 <five (5)> days before the election. All vacancies in
3-19 office <(other than for the failure of an original Director herein
3-20 appointed to qualify)> shall be filled by a majority vote of the
3-21 remaining Directors and such appointees shall hold office for the
3-22 unexpired term for which they were appointed.
3-23 (b) No director shall be entitled to compensation, but shall
3-24 be entitled to receive <his> actual expenses incurred in attending
3-25 to the District's business, provided such expenses are reported in
3-26 the District's minute book or other District records and approved
3-27 by the remainder of the Board. Any person who is a resident of the
4-1 District and a qualified voter <property owning taxpayer> shall be
4-2 eligible to hold office as director of the District. However, an
4-3 employee of the District may not serve as a director<, and at least
4-4 seven (7) members of the Board shall be residents of the District>.
4-5 The Board of Directors shall elect from its number a president
4-6 and<,> vice president and shall appoint a<,> secretary who need not
4-7 be a director <and such other officers as in the judgment of the
4-8 Board are necessary>. Each officer shall serve for a term of one
4-9 year. The president shall be the chief executive officer of the
4-10 District, and shall have the same right to vote as any other
4-11 Director. The vice president shall perform all duties and exercise
4-12 all powers conferred by this Act upon the president when the
4-13 president is absent or fails and declines to act.
4-14 (c) <The Directors named herein and their successors in
4-15 office shall hold office as provisional or temporary Directors
4-16 until such time as the creation of the District has been approved
4-17 at an election as herein provided. At such time as the creation of
4-18 the District is so approved and the returns of the election
4-19 officially canvassed, the persons acting as provisional or
4-20 temporary Directors shall become permanent Directors whose terms
4-21 shall expire as hereinabove provided.> Each <permanent> Director
4-22 and his successor in office shall qualify by executing the
4-23 Constitutional oath of office. A majority of the Board shall
4-24 constitute a quorum for the transaction of business.
4-25 SECTION 3. Section 5, Chapter 477, Acts of the 59th
4-26 Legislature, Regular Session, 1965, is amended to read as follows:
4-27 Sec. 5. (a) The Board of Directors shall manage, control
5-1 and administer the hospital <hospitals> and the hospital system and
5-2 the business, funds, and resources of the District. The District
5-3 through its Board of Directors shall have the power and authority
5-4 to sue and be sued and to promulgate rules and regulations for the
5-5 operation of the District. The Board of Directors shall appoint a
5-6 qualified person to be known as the administrator <or manager> of
5-7 the Hospital District and may in its discretion appoint an
5-8 assistant to the administrator <or manager>. Such administrator
5-9 <or manager,> and assistant administrator <or assistant manager>,
5-10 if any, shall serve at the will of the Board and shall receive such
5-11 compensation as may be fixed by the Board. The Board may require
5-12 the <The> administrator before <or manager shall, upon> assuming
5-13 the administrator's <his> duties to<,> execute a bond payable to
5-14 the Hospital District in an amount to be set by the Board of
5-15 Directors, in no event less than <Five Thousand Dollars (>$5,000<)>
5-16 conditioned on the faithful performance of the administrator's
5-17 <that he shall perform the> duties <required of him> and containing
5-18 such other conditions as the Board may require. The Board may pay
5-19 for the bond with District funds.
5-20 (b) The administrator <or manager> shall supervise all the
5-21 work and activities of the Hospital and shall have general
5-22 direction of the affairs of the District, subject to such
5-23 limitations as may be prescribed by the Board. The Board of
5-24 Directors, with the administrator, shall have the authority to
5-25 appoint to the staff doctors the Board considers necessary for the
5-26 efficient operation of the District. The Board may <admit such
5-27 doctors or> employ technicians, nurses and other employees of every
6-1 kind and character as may be deemed necessary for the efficient
6-2 operation of the Hospital, or may provide that the administrator
6-3 <or manager> shall have the authority to admit or employ such
6-4 persons.
6-5 (c) Such Board shall be authorized to contract with any
6-6 county or incorporated municipality located outside the District
6-7 for the care and treatment of the sick, diseased or injured persons
6-8 of any such county or municipality and shall have the authority to
6-9 contract with the State of Texas and agencies of the Federal
6-10 government, for treatment of sick, diseased or injured persons for
6-11 whom the State of Texas or the Federal government are responsible.
6-12 (d) The Board may purchase or lease property, facilities,
6-13 and equipment for the District to use in the hospital system and
6-14 may mortgage or pledge the property, facilities, or equipment as
6-15 security for the payment of the purchase price <of Directors is
6-16 also authorized to enter into such contracts or agreements with the
6-17 State of Texas or the Federal government as may be required to
6-18 establish or continue a retirement program for the benefit of the
6-19 District's employees>.
6-20 (e) The Board may also enter into a contract or contracts
6-21 <with nonprofit corporations whereby such corporations agree> to
6-22 provide administrative and other personnel for the operation of the
6-23 hospital facilities, but in no event may such contract be for a
6-24 period in excess of <twenty-five (>25<)> years from the date the
6-25 same is entered. The Board may transfer District hospital
6-26 facilities by lease to individuals, corporations, or other legal
6-27 entities and may sell or otherwise dispose of the District's
7-1 property, facilities, and equipment.
7-2 (f) The Board may provide retirement benefits for the
7-3 employees of the District by establishing or administering a
7-4 retirement program or electing to participate in the Texas County
7-5 and District Retirement System or any other statewide retirement
7-6 system in which the District is eligible to participate.
7-7 (g) The Board of Directors may spend District funds to
7-8 recruit physicians, nurses, and other trained medical personnel.
7-9 The Board may contract with one or more full-time medical students
7-10 or other students in a health occupation, each of whom is enrolled
7-11 in good standing in an accredited medical school, college, or
7-12 university, to pay the student's tuition or other expenses in
7-13 consideration of the student's contractual agreement to serve as an
7-14 employee or independent contractor for the District under terms
7-15 provided for in the contract.
7-16 (h) The Board may institute a suit to enforce the payment of
7-17 taxes and to foreclose liens to secure the payment of taxes due to
7-18 the District.
7-19 SECTION 4. Section 6, Chapter 477, Acts of the 59th
7-20 Legislature, Regular Session, 1965, is amended to read as follows:
7-21 Sec. 6. The District shall be operated on a fiscal year
7-22 established by the Board of Directors. The fiscal year may not be
7-23 changed when revenue bonds are outstanding or more than one time in
7-24 a 24-month period. The Board <commencing on October 1 of each year
7-25 and ending on September 30 of the succeeding year, and it> shall
7-26 cause an annual audit to be made of the financial condition of said
7-27 District which shall at all times be open to inspection at the
8-1 principal office of the District. <In addition the administrator
8-2 or manager shall prepare an annual budget for approval by the Board
8-3 of Directors of said District. As soon as practical after the
8-4 close of each fiscal year, the administrator or manager shall
8-5 prepare for the Board a full sworn statement of all moneys
8-6 belonging to the District, and a full account of the disbursements
8-7 of same.>
8-8 SECTION 5. Section 6(b), Chapter 477, Acts of the 59th
8-9 Legislature, Regular Session, 1965, is amended to read as follows:
8-10 Sec. 6(b). In the event a new fiscal year is adopted under
8-11 the provisions of Section 6 <6(a)> of this Act, notice of the
8-12 public hearing (required by Section 19 of this law) on the adoption
8-13 of a proposed budget shall be given at least <thirty (>30<)> days
8-14 prior to the beginning of the fiscal or budget year the budget is
8-15 to cover.
8-16 SECTION 6. Section 7, Chapter 477, Acts of the 59th
8-17 Legislature, Regular Session, 1965, is amended to read as follows:
8-18 Sec. 7. The District may issue revenue bonds for the purpose
8-19 of purchasing, constructing, repairing, renovating, or acquiring
8-20 <the purchase and acquisition of> buildings or <and> improvements,
8-21 <and> equipping the same for hospitals and the hospital system,
8-22 acquiring sites to be used for hospital purposes, or for operating
8-23 a mobile emergency medical service to assist the District in
8-24 carrying out its hospital purposes <and such bonds may be issued
8-25 payable (1) only from revenues of the hospital system in the manner
8-26 prescribed by Sections 7, 8 and 10 through 13 of Chapter 122, Acts
8-27 of the 58th Legislature, Regular Session, 1963 (Article 4494r,
9-1 Vernon's Texas Civil Statutes) or (2) payable only from taxation
9-2 for which provision is made in Section 9>. The bonds shall be
9-3 payable from and secured by a pledge of all or part of the revenues
9-4 derived from the operation of the District's hospital system. The
9-5 bonds may be additionally secured by a mortgage or deed of trust on
9-6 all or part of District property. The revenue bonds shall be
9-7 issued in the manner provided by Sections 264.042, 264.043,
9-8 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for
9-9 the issuance of revenue bonds by county hospital authorities.
9-10 SECTION 7. Section 8, Chapter 477, Acts of the 59th
9-11 Legislature, Regular Session, 1965, is amended to read as follows:
9-12 Sec. 8. The bonds of the District may be issued for the
9-13 purpose of refunding and paying off any bond issued by the
9-14 District. Refunding bonds shall be issued as provided by Chapter
9-15 784, Acts of the 61st Legislature, Regular Session, 1969 (Article
9-16 717k-3, Vernon's Texas Civil Statutes). Such refunding bonds may
9-17 be sold and the proceeds thereof applied to the payment of any
9-18 outstanding bonds or other refundable indebtedness, or may be
9-19 exchanged in whole or in part for not less than a like principal
9-20 amount of such outstanding bonds or refundable indebtedness;
9-21 provided that if such refunding bonds are to be exchanged for a
9-22 like amount of said outstanding bonds or other refundable
9-23 indebtedness, the interest thereon computed in accordance with
9-24 recognized standard bond interest cost tables, shall not exceed the
9-25 average interest cost per annum so computed upon the bonds or other
9-26 indebtedness to be refunded; and provided further that, if such
9-27 refunding bonds are to be sold and the proceeds thereof applied to
10-1 the payment of any such outstanding bonds or other refundable
10-2 indebtedness, same shall be issued and payments made in the manner
10-3 specified by Chapter 503, Acts of the 54th Legislature, 1955
10-4 (Article 717k, Vernon's Texas Civil Statutes), as amended.
10-5 SECTION 8. Section 9, Chapter 477, Acts of the 59th
10-6 Legislature, Regular Session, 1965, is amended to read as follows:
10-7 Sec. 9. (a) As to bonds payable from taxation, a tax shall
10-8 be levied by the Board sufficient to create an interest and sinking
10-9 fund and to pay the interest on and principal of said bonds as same
10-10 mature, providing such tax together with any other taxes levied for
10-11 said District shall not exceed the limit approved by the voters at
10-12 the election authorizing the levy of taxes. The District may issue
10-13 general obligation bonds only if the bonds are authorized by a
10-14 majority of the qualified voters of the District voting at an
10-15 election called and held for that purpose. The Board may order a
10-16 bond election. The order calling the election shall state the
10-17 nature and date of the election, the hours during which the polls
10-18 will be open, the location of the polling places, the amounts of
10-19 the bonds to be authorized, and the maximum maturity of the bonds.
10-20 Notice of a bond election shall be given as provided for by Article
10-21 704, Revised Statutes. The Board shall canvass the returns and
10-22 declare the results of the election <seventy-five cents (75›) on
10-23 each One Hundred Dollars ($100) valuation of taxable property in
10-24 any one year. Any bonds hereafter issued payable from taxation
10-25 shall be issued under the provisions of Chapter 1, Title 22 of the
10-26 Revised Civil Statutes of Texas, 1925, as amended, and notice of
10-27 the election shall be given by posting notice thereof at least
11-1 fourteen (14) days prior to the date thereof at three (3) public
11-2 places within the District and by publishing such notice at least
11-3 twice in a newspaper of general circulation in the District, the
11-4 day of the first publication to be at least fourteen (14) days
11-5 prior to the date set for the election>. Such election, except as
11-6 herein provided, shall be governed by the general laws relating to
11-7 County elections.
11-8 (b) The Board may issue and sell general obligation bonds
11-9 authorized by an election in the name and on the faith and credit
11-10 of the District to:
11-11 (1) purchase, construct, acquire, repair, or renovate
11-12 buildings or improvements;
11-13 (2) equip buildings or improvements for hospital
11-14 purposes; or
11-15 (3) acquire and operate a mobile emergency medical or
11-16 air ambulance service.
11-17 (c) Bonds of the District shall be executed in the name of
11-18 the Hospital District and in its behalf by the president of the
11-19 Board and attested by the secretary, as provided by Chapter 204,
11-20 Acts of the 57th Legislature, Regular Session, 1961 (Article
11-21 717j-1, Vernon's Texas Civil Statutes), and shall be subject to the
11-22 same requirements in the matter of approval by the Attorney General
11-23 of Texas and registration by the Comptroller of Public Accounts of
11-24 the State of Texas as are by law provided for approval and
11-25 registration of bonds issued by counties. After approval of any
11-26 such bonds by the Attorney General and registration by the
11-27 Comptroller, said bonds shall be incontestable.
12-1 (d) District bonds must mature not later than the 40th
12-2 anniversary of the date of issuance and must bear a rate of
12-3 interest that does not exceed the amount provided by Chapter 3,
12-4 Acts of the 61st Legislature, Regular Session, 1969 (Article
12-5 717k-2, Vernon's Texas Civil Statutes).
12-6 SECTION 9. Section 13, Chapter 477, Acts of the 59th
12-7 Legislature, Regular Session, 1965, is amended to read as follows:
12-8 Sec. 13. The Board of Directors of the District shall name
12-9 one or more banks <within the District> to serve as depository for
12-10 the funds of the District. All such funds shall, as derived and
12-11 collected, be immediately deposited with such depository bank or
12-12 banks for the payment of principal of and interest on the
12-13 outstanding bonds of the District in time that such money may be
12-14 received by said bank or banks for payment on or prior to the date
12-15 of maturity of such principal and interest so to be paid. To the
12-16 extent that funds in the depository bank or banks are not insured
12-17 by the Federal Deposit Insurance Corporation, they shall be secured
12-18 in the manner provided by law for security of county funds.
12-19 Membership on the Board of Directors of an officer or director of a
12-20 bank shall not disqualify such bank from being designated as
12-21 depository.
12-22 SECTION 10. Section 16, Chapter 477, Acts of the 59th
12-23 Legislature, Regular Session, 1965, is amended to read as follows:
12-24 Sec. 16. The Board of Directors may annually impose property
12-25 taxes in an amount not to exceed the limit approved by the voters
12-26 at the election authorizing the levy of taxes. The tax rate for
12-27 all purposes may not exceed 75 cents on each $100 valuation of all
13-1 taxable property in the District. The taxes may be used to pay for
13-2 indebtedness issued or assumed by the District and for the
13-3 maintenance and operating expenses of the District. The District
13-4 may not impose taxes to pay the principal of or interest on revenue
13-5 bonds. The Tax Code governs the appraisal, assessment, and
13-6 collection of District taxes. The Board may provide for the
13-7 appointment of a tax assessor-collector for the District or may
13-8 contract for the assessment and collection of taxes as provided by
13-9 the Tax Code. <District taxes shall be assessed and collected on
13-10 county tax values in the same manner as provided by law with
13-11 relation to county taxes upon all taxable property within said
13-12 District, subject to Hospital District taxation. The Tax Assessor
13-13 and/or Collector of Cooke County shall be charged and required to
13-14 accomplish the assessment and collection of all taxes levied by and
13-15 on behalf of the District. The Assessor and Collector of taxes
13-16 shall charge and deduct from payments to the Hospital District the
13-17 dues for assessing and collecting the taxes at a rate of not to
13-18 exceed one per cent (1%) for assessing and one per cent (1%) for
13-19 collecting as may be agreed upon by the District and the Tax
13-20 Assessor, but in no event shall the amount of such compensation
13-21 exceed a total of Five Thousand Dollars ($5,000) in any one fiscal
13-22 year of the District. Such fees shall be deposited in the
13-23 officers' salary fund of the county and reported as fees of office
13-24 of the county Tax Assessor and Collector. Interest and penalties
13-25 on taxes paid to the Hospital District shall be the same as in the
13-26 case of county taxes. Discounts shall be the same as allowed by
13-27 the county. The residue of tax collections, after deduction of
14-1 discounts and fees for assessing and collecting, shall be deposited
14-2 in the District's depository. The Board of Directors shall have
14-3 the authority to levy the aforesaid tax for the entire year in
14-4 which said District is established as the result of the election
14-5 herein provided. The bond of the county Tax Assessor-Collector
14-6 shall stand as security for the proper performance of his duties as
14-7 Assessor-Collector of the District or, if in the judgment of the
14-8 District Board of Directors it is necessary, additional bond
14-9 payable to the District may be required. In all matters pertaining
14-10 to the assessment, collection and enforcement of taxes for the
14-11 District, the county Tax Assessor-Collector shall be authorized to
14-12 act in all respects according to the laws of the State of Texas
14-13 relating to state and county taxes.>
14-14 SECTION 11. Section 19, Chapter 477, Acts of the 59th
14-15 Legislature, Regular Session, 1965, is amended to read as follows:
14-16 Sec. 19. (a) Before September 1 of each year or as provided
14-17 by Section 6(b) of this Act, the <The> Board of Directors of said
14-18 Hospital District shall cause to be prepared an annual budget based
14-19 upon the fiscal year of the Hospital District, and prior to
14-20 September 1 of each year shall give notice of the public hearing on
14-21 the proposed budget. Such notice shall be published in a newspaper
14-22 of general circulation in the District one time at least <ten
14-23 (>10<)> days prior to the date set for the hearing. The Board
14-24 shall adopt a budget by taking action on the budget proposed by the
14-25 administrator. The budget is effective only after adoption by the
14-26 Board. After adoption, the annual budget may be amended on the
14-27 Board's approval.
15-1 (b) Before September 1 of each year, <At the conclusion of
15-2 the hearing> the Board shall publish notice of tax rates, give
15-3 notice and conduct a public hearing as required by Chapter 26, Tax
15-4 Code, and enter <on its minutes> an order levying taxes on all
15-5 property in the District that is subject to hospital district
15-6 taxation <for the ensuing year and such order shall state the rate
15-7 of tax levied for meeting the requirements of the District's bonds
15-8 and the rate levied for the care of indigents>.
15-9 SECTION 12. Chapter 477, Acts of the 59th Legislature,
15-10 Regular Session, 1965, is amended by adding Sections 20a and 20b to
15-11 read as follows:
15-12 Sec. 20a. (a) If the Board of Directors declares that funds
15-13 are not available to meet the lawfully authorized obligations of
15-14 the District and that an emergency exists, the Board may borrow
15-15 money at a rate not to exceed the maximum annual percentage rate
15-16 allowed by law for District obligations at the time of the loan.
15-17 (b) To secure a loan, the Board may pledge:
15-18 (1) the revenues of the District that are not pledged
15-19 to pay the bonded indebtedness of the District;
15-20 (2) District taxes to be levied by the District during
15-21 the 12-month period following the date of the pledge that are not
15-22 pledged to pay the principal of or interest on District bonds; or
15-23 (3) District bonds that have been authorized but not
15-24 sold.
15-25 (c) A loan for which taxes or bonds are pledged shall mature
15-26 not later than the first anniversary of the date on which the loan
15-27 is made. A loan for which District revenues are pledged shall
16-1 mature not later than the fifth anniversary of the date on which
16-2 the loan is made.
16-3 (d) The Board may not spend money obtained from a loan under
16-4 this section for any purpose other than the purpose for which the
16-5 Board declared an emergency. If taxes or bonds are pledged to pay
16-6 the loan, the Board may not spend the loan proceeds other than for
16-7 the purpose for which the taxes were levied or the bonds were
16-8 authorized.
16-9 Sec. 20b. (a) The District may be dissolved only if the
16-10 dissolution is approved by a majority of the qualified voters of
16-11 the District voting in an election called and held for that
16-12 purpose.
16-13 (b) The Board may order an election on the question of
16-14 dissolving the District and disposing of the District's assets and
16-15 obligations. The Board shall order an election if the Board
16-16 receives a petition requesting an election that is signed by a
16-17 number of residents of the District equal to at least 15 percent of
16-18 the registered voters in the District.
16-19 (c) The election shall be held not later than the 60th day
16-20 after the date the election is ordered. Section 41.001(a),
16-21 Election Code, does not apply to an election ordered under this
16-22 section. The order calling the election shall state:
16-23 (1) the nature of the election, including the
16-24 proposition that is to appear on the ballot;
16-25 (2) the date of the election;
16-26 (3) the hours during which the polls will be open; and
16-27 (4) the location of the polling places.
17-1 (d) The Board shall give notice of the election by
17-2 publishing a substantial copy of the election order in a newspaper
17-3 with general circulation in the District once a week for two
17-4 consecutive weeks. The first publication must appear not less than
17-5 35 days before the date set for the election. The ballot for the
17-6 election shall be printed to permit voting for or against the
17-7 proposition: "The dissolution of the Muenster Hospital District."
17-8 (e) If a majority of the votes in the election favor
17-9 dissolution, the Board shall find that the District is dissolved.
17-10 If a majority of the votes in the election do not favor
17-11 dissolution, the Board shall continue to administer the District,
17-12 and another election on the question of dissolution may not be held
17-13 before the first anniversary of the most recent election to
17-14 dissolve the District.
17-15 (f) If a majority of the votes in the election favor
17-16 dissolution, the Board shall:
17-17 (1) transfer the land, buildings, improvements,
17-18 equipment, and other assets that belong to the District to a county
17-19 or another governmental entity in the county in which the District
17-20 is located; or
17-21 (2) administer the property, assets, and debts until
17-22 all funds have been disposed of and all District debts have been
17-23 paid or settled.
17-24 (g) If the District transfers the land, buildings,
17-25 improvements, equipment, and other assets to a county or other
17-26 governmental entity, the county or entity assumes all debts and
17-27 obligations of the District at the time of the transfer, and the
18-1 District is dissolved.
18-2 (h) After the Board finds that the District is dissolved,
18-3 the Board shall:
18-4 (1) determine the debt owed by the District; and
18-5 (2) impose on the property included in the District's
18-6 tax rolls a tax that is in proportion of the debt to the property
18-7 value.
18-8 (i) When all outstanding debts and obligations of the
18-9 District are paid, the Board shall order the secretary to return
18-10 the pro rata share of all unused tax money to each District
18-11 taxpayer.
18-12 (j) A taxpayer may request that the taxpayer's share of
18-13 surplus tax money be credited to the taxpayer's county taxes. If a
18-14 taxpayer requests the credit, the Board shall direct the secretary
18-15 to transmit the funds to the county tax assessor-collector.
18-16 (k) After the District has paid all its debts and has
18-17 disposed of all its assets and funds as prescribed by this
18-18 section, the Board shall file a written report with the
18-19 Commissioners Court of Cooke County setting forth a summary of the
18-20 Board's actions in dissolving the District.
18-21 (l) Not later than the 10th day after the date it receives
18-22 the report and determines that the requirements of this section
18-23 have been fulfilled, the Commissioners Court of Cooke County shall
18-24 enter an order dissolving the District and releasing the Board of
18-25 Directors of the District from any further duty or obligation.
18-26 (m) Notwithstanding any other provision of this Act, the
18-27 District may not be dissolved unless the Board provides for the
19-1 sale or transfer of the District's assets and liabilities to
19-2 another person or entity. The dissolution of the District and the
19-3 sale or transfer of the District's assets or liabilities may not
19-4 contravene a trust indenture or bond resolution relating to the
19-5 outstanding bonds of the District. The dissolution and sale or
19-6 transfer does not diminish or impair the rights of a holder of an
19-7 outstanding bond, warrant, or other obligation of the District.
19-8 (n) The sale or transfer of the District's assets and
19-9 liabilities must satisfy the debt and bond obligations of the
19-10 District in a manner that protects the interests of the residents
19-11 of the District, including the residents' collective property
19-12 rights in the District's assets. A grant from federal funds is an
19-13 obligation to be repaid in satisfaction. The District may not
19-14 transfer or dispose of the District's assets except for due
19-15 compensation unless the transfer is made to another governmental
19-16 entity that serves the District and the transferred assets are to
19-17 be used for the benefit of the residents of the District.
19-18 SECTION 13. Sections 4a, 6(a), and 10, Chapter 477, Acts of
19-19 the 59th Legislature, Regular Session, 1965, are repealed.
19-20 SECTION 14. (a) The election of directors scheduled before
19-21 the effective date of this Act to be held in May, 1995, shall be
19-22 held, and the three directors who receive the highest total number
19-23 of votes shall be elected to serve three-year terms, and the
19-24 director who receives the fourth highest total number of votes
19-25 shall be elected to serve a two-year term.
19-26 (b) In the election of directors scheduled to be held in
19-27 May, 1996, the three directors who receive the highest total number
20-1 of votes shall be elected to serve three-year terms, and the two
20-2 directors who receive the fourth and fifth highest total number of
20-3 votes shall be elected to serve one-year terms.
20-4 SECTION 15. The importance of this legislation and the
20-5 crowded condition of the calendars in both houses create an
20-6 emergency and an imperative public necessity that the
20-7 constitutional rule requiring bills to be read on three several
20-8 days in each house be suspended, and this rule is hereby suspended,
20-9 and that this Act take effect and be in force from and after its
20-10 passage, and it is so enacted.