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.