By Haywood S.B. No. 1241
74R7840 JMM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation of the Muenster Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2, Chapter 477, Acts of the 59th
1-5 Legislature, Regular Session, 1965, is amended to read as follows:
1-6 Sec. 2. The District herein authorized to be created shall
1-7 provide for the establishment, administration, maintenance,
1-8 operation, and financing of a hospital or hospital system within
1-9 its boundaries and may provide any services or facilities necessary
1-10 for hospital or medical care, including rural health clinics,
1-11 outpatient clinics, nursing homes, home health care agencies,
1-12 extended care facilities, assisted living or personal care
1-13 facilities, and retirement, housing, and medical office buildings
1-14 <by the purchase, construction, acquisition, repair or renovation
1-15 of buildings and improvements, and the equipping of same and the
1-16 administration thereof for hospital purposes>. Such district shall
1-17 assume full responsibility for providing medical and hospital care
1-18 for its needy inhabitants. <It is hereby found and determined that
1-19 there is no hospital or hospital system or hospital facilities of
1-20 any nature presently owned by Cooke County or by any city or town
1-21 within the boundaries hereinabove set forth, it being further found
1-22 that the Muenster Hospital Authority has heretofore been
1-23 established under the provisions of Chapter 472, Acts of the 55th
1-24 Legislature, Regular Session, 1957, as amended (Article 4437e,
2-1 Vernon's Texas Civil Statutes), and that such Authority currently
2-2 operates and maintains a hospital within the boundaries hereinabove
2-3 set forth as a political subdivision of the State of Texas.>
2-4 SECTION 2. Section 4, Chapter 477, Acts of the 59th
2-5 Legislature, Regular Session, 1965, is amended to read as follows:
2-6 Sec. 4. (a) The Board of Directors consists of nine
2-7 Directors. Directors elected at elections held after May 1997
2-8 serve staggered three-year terms. <Upon the effective date of this
2-9 Act, the following named nine (9) persons shall be and constitute
2-10 the temporary or provisional Directors of the said District:>
2-11 <Alphonse Felderhoff>
2-12 <Robert Bayer>
2-13 <Ray Voth>
2-14 <John Bayer>
2-15 <Norbert J. Felderhoff>
2-16 <Alois Trubenbach>
2-17 <Albert Dangelmayr>
2-18 <E. T. Stormer>
2-19 <Joe Galloway>
2-20 <and each of said Directors shall subscribe to the Constitutional
2-21 oath of office within sixty (60) days of the effective date of this
2-22 Act. Should any of the named Directors refuse to act or for any
2-23 reason fail to qualify as herein required, the County Judge of
2-24 Cooke County shall fill such vacancy. The terms of office of the
2-25 first, third, fifth, seventh, and ninth named Directors shall
2-26 expire on the first Saturday in April of the year following the
2-27 election for the creation of the District, and the terms of the
3-1 second, fourth, sixth, and eighth named Directors shall expire on
3-2 the first Saturday in April of the second year following the
3-3 election for the creation of the District.> A regular election for
3-4 Directors shall be held on the first Saturday in May <April> of
3-5 each year. The regular election for Directors shall be ordered by
3-6 the Board and such order shall state the time, place and purpose of
3-7 the election, and the Board shall appoint the presiding judge who
3-8 shall appoint an assistant judge and such clerks as may be
3-9 required, and such election shall be ordered at least 45 <fifteen
3-10 (15)> days prior to the date on which it is to be held. Any person
3-11 desiring his name to be printed on the ballot as a candidate for
3-12 director shall file an application <a petition signed by not less
3-13 than fifteen (15) qualified voters asking that such name be printed
3-14 on the ballot,> with the secretary of the Board of Directors of the
3-15 District<. Such petition shall be filed with such secretary> at
3-16 least 31 <twenty-five (25)> days prior to the date of election.
3-17 Notice of such election shall be published one (1) time in a
3-18 newspaper of general circulation in the area of the District at
3-19 least 36 <five (5)> days before the election. All vacancies in
3-20 office <(other than for the failure of an original Director herein
3-21 appointed to qualify)> shall be filled by a majority vote of the
3-22 remaining Directors and such appointees shall hold office for the
3-23 unexpired term for which they were appointed.
3-24 (b) No director shall be entitled to compensation, but shall
3-25 be entitled to receive <his> actual expenses incurred in attending
3-26 to the District's business, provided such expenses are reported in
3-27 the District's minute book or other District records and approved
4-1 by the remainder of the Board. Any person who is a resident of the
4-2 District and a qualified voter <property owning taxpayer> shall be
4-3 eligible to hold office as director of the District. However, an
4-4 employee of the District may not serve as a director<, and at least
4-5 seven (7) members of the Board shall be residents of the District>.
4-6 The Board of Directors shall elect from its number a president
4-7 and<,> vice president and shall appoint a<,> secretary who need not
4-8 be a director <and such other officers as in the judgment of the
4-9 Board are necessary>. Each officer shall serve for a term of one
4-10 year. The president shall be the chief executive officer of the
4-11 District, and shall have the same right to vote as any other
4-12 Director. The vice president shall perform all duties and exercise
4-13 all powers conferred by this Act upon the president when the
4-14 president is absent or fails and declines to act.
4-15 (c) <The Directors named herein and their successors in
4-16 office shall hold office as provisional or temporary Directors
4-17 until such time as the creation of the District has been approved
4-18 at an election as herein provided. At such time as the creation of
4-19 the District is so approved and the returns of the election
4-20 officially canvassed, the persons acting as provisional or
4-21 temporary Directors shall become permanent Directors whose terms
4-22 shall expire as hereinabove provided.> Each <permanent> Director
4-23 and his successor in office shall qualify by executing the
4-24 Constitutional oath of office. A majority of the Board shall
4-25 constitute a quorum for the transaction of business.
4-26 SECTION 3. Section 5, Chapter 477, Acts of the 59th
4-27 Legislature, Regular Session, 1965, is amended to read as follows:
5-1 Sec. 5. (a) The Board of Directors shall manage, control
5-2 and administer the hospital <hospitals> and the hospital system and
5-3 the business, funds, and resources of the District. The District
5-4 through its Board of Directors shall have the power and authority
5-5 to sue and be sued and to promulgate rules and regulations for the
5-6 operation of the District. The Board of Directors shall appoint a
5-7 qualified person to be known as the administrator <or manager> of
5-8 the Hospital District and may in its discretion appoint an
5-9 assistant to the administrator <or manager>. Such administrator
5-10 <or manager,> and assistant administrator <or assistant manager>,
5-11 if any, shall serve at the will of the Board and shall receive such
5-12 compensation as may be fixed by the Board. The Board may require
5-13 the <The> administrator before <or manager shall, upon> assuming
5-14 the administrator's <his> duties to<,> execute a bond payable to
5-15 the Hospital District in an amount to be set by the Board of
5-16 Directors, in no event less than Five Thousand Dollars ($5,000)
5-17 conditioned on the faithful performance of the administrator's
5-18 <that he shall perform the> duties <required of him> and containing
5-19 such other conditions as the Board may require. The Board may pay
5-20 for the bond with District funds.
5-21 (b) The administrator <or manager> shall supervise all the
5-22 work and activities of the Hospital and shall have general
5-23 direction of the affairs of the District, subject to such
5-24 limitations as may be prescribed by the Board. The Board of
5-25 Directors, with the administrator, shall have the authority to
5-26 appoint to the staff doctors the Board considers necessary for the
5-27 efficient operation of the District. The Board may <admit such
6-1 doctors or> employ technicians, nurses and other employees of every
6-2 kind and character as may be deemed necessary for the efficient
6-3 operation of the Hospital, or may provide that the administrator
6-4 <or manager> shall have the authority to admit or employ such
6-5 persons.
6-6 (c) Such Board shall be authorized to contract with any
6-7 county or incorporated municipality located outside the District
6-8 for the care and treatment of the sick, diseased or injured persons
6-9 of any such county or municipality and shall have the authority to
6-10 contract with the State of Texas and agencies of the Federal
6-11 government, for treatment of sick, diseased or injured persons for
6-12 whom the State of Texas or the Federal government are responsible.
6-13 (d) The Board may purchase or lease property, facilities,
6-14 and equipment for the District to use in the hospital system and
6-15 may mortgage or pledge the property, facilities, or equipment as
6-16 security for the payment of the purchase price. <The Board of
6-17 Directors is also authorized to enter into such contracts or
6-18 agreements with the State of Texas or the Federal government as may
6-19 be required to establish or continue a retirement program for the
6-20 benefit of the District's employees.>
6-21 (e) The Board may also enter into a contract or contracts
6-22 <with nonprofit corporations whereby such corporations agree> to
6-23 provide administrative and other personnel for the operation of the
6-24 hospital facilities, but in no event may such contract be for a
6-25 period in excess of twenty-five (25) years from the date the same
6-26 is entered. The Board may transfer District hospital facilities by
6-27 lease to individuals, corporations, or other legal entities and may
7-1 sell or otherwise dispose of the District's property, facilities,
7-2 and equipment.
7-3 (f) The Board may provide retirement benefits for the
7-4 employees of the District by establishing or administering a
7-5 retirement program or electing to participate in the Texas County
7-6 and District Retirement System or any other statewide retirement
7-7 system in which the District is eligible to participate.
7-8 (g) The Board of Directors may spend District funds to
7-9 recruit physicians, nurses, and other trained medical personnel.
7-10 The Board may contract with one or more full-time medical students
7-11 or other students in a health occupation, each of whom is enrolled
7-12 in good standing in an accredited medical school, college, or
7-13 university, to pay the student's tuition or other expenses in
7-14 consideration of the student's contractual agreement to serve as an
7-15 employee or independent contractor for the District under terms
7-16 provided for in the contract.
7-17 (h) The Board may institute a suit to enforce the payment of
7-18 taxes and to foreclose liens to secure the payment of taxes due to
7-19 the District.
7-20 SECTION 4. Section 6, Chapter 477, Acts of the 59th
7-21 Legislature, Regular Session, 1965, is amended to read as follows:
7-22 Sec. 6. The District shall be operated on a fiscal year
7-23 established by the Board of Directors. The fiscal year may not be
7-24 changed when revenue bonds are outstanding or more than one time in
7-25 a 24-month period. The Board <commencing on October 1 of each year
7-26 and ending on September 30 of the succeeding year, and it> shall
7-27 cause an annual audit to be made of the financial condition of said
8-1 District which shall at all times be open to inspection at the
8-2 principal office of the District. <In addition the administrator
8-3 or manager shall prepare an annual budget for approval by the Board
8-4 of Directors of said District. As soon as practical after the
8-5 close of each fiscal year, the administrator or manager shall
8-6 prepare for the Board a full sworn statement of all moneys
8-7 belonging to the District, and a full account of the disbursements
8-8 of same.>
8-9 SECTION 5. Section 6(b), Chapter 477, Acts of the 59th
8-10 Legislature, Regular Session, 1965, is amended to read as follows:
8-11 Sec. 6(b). In the event a new fiscal year is adopted under
8-12 the provisions of Section 6 <6(a)> of this Act, notice of the
8-13 public hearing (required by Section 19 of this law) on the adoption
8-14 of a proposed budget shall be given at least thirty (30) days prior
8-15 to the beginning of the fiscal or budget year the budget is to
8-16 cover.
8-17 SECTION 6. Section 7, Chapter 477, Acts of the 59th
8-18 Legislature, Regular Session, 1965, is amended to read as follows:
8-19 Sec. 7. The District may issue revenue bonds for the purpose
8-20 of purchasing, constructing, repairing, renovating, or acquiring
8-21 <the purchase and acquisition of> buildings or <and> improvements,
8-22 <and> equipping the same for hospitals and the hospital system,
8-23 acquiring sites to be used for hospital purposes, or for operating
8-24 a mobile emergency medical service to assist the District in
8-25 carrying out its hospital purposes <and such bonds may be issued
8-26 payable (1) only from revenues of the hospital system in the manner
8-27 prescribed by Sections 7, 8 and 10 through 13 of Chapter 122, Acts
9-1 of the 58th Legislature, Regular Session, 1963 (Article 4494r,
9-2 Vernon's Texas Civil Statutes) or (2) payable only from taxation
9-3 for which provision is made in Section 9>. The bonds shall be
9-4 payable from and secured by a pledge of all or part of the revenues
9-5 derived from the operation of the District's hospital system. The
9-6 bonds may be additionally secured by a mortgage or deed of trust on
9-7 all or part of District property. The revenue bonds shall be
9-8 issued in the manner provided by Sections 264.042, 264.043,
9-9 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for
9-10 the issuance of revenue bonds by county hospital authorities.
9-11 SECTION 7. Section 8, Chapter 477, Acts of the 59th
9-12 Legislature, Regular Session, 1965, is amended to read as follows:
9-13 Sec. 8. The bonds of the District may be issued for the
9-14 purpose of refunding and paying off any bond issued by the
9-15 District. Refunding bonds shall be issued as provided by Chapter
9-16 784, Acts of the 61st Legislature, Regular Session, 1969 (Article
9-17 717k-3, Vernon's Texas Civil Statutes). Such refunding bonds may
9-18 be sold and the proceeds thereof applied to the payment of any
9-19 outstanding bonds or other refundable indebtedness, or may be
9-20 exchanged in whole or in part for not less than a like principal
9-21 amount of such outstanding bonds or refundable indebtedness;
9-22 provided that if such refunding bonds are to be exchanged for a
9-23 like amount of said outstanding bonds or other refundable
9-24 indebtedness, the interest thereon computed in accordance with
9-25 recognized standard bond interest cost tables, shall not exceed the
9-26 average interest cost per annum so computed upon the bonds or other
9-27 indebtedness to be refunded; and provided further that, if such
10-1 refunding bonds are to be sold and the proceeds thereof applied to
10-2 the payment of any such outstanding bonds or other refundable
10-3 indebtedness, same shall be issued and payments made in the manner
10-4 specified by Chapter 503, Acts of the 54th Legislature, 1955
10-5 (Article 717k, Vernon's Texas Civil Statutes), as amended.
10-6 SECTION 8. Section 9, Chapter 477, Acts of the 59th
10-7 Legislature, Regular Session, 1965, is amended to read as follows:
10-8 Sec. 9. (a) As to bonds payable from taxation, a tax shall
10-9 be levied by the Board sufficient to create an interest and sinking
10-10 fund and to pay the interest on and principal of said bonds as same
10-11 mature, providing such tax together with any other taxes levied for
10-12 said District shall not exceed the limit approved by the voters at
10-13 the election authorizing the levy of taxes. The District may issue
10-14 general obligation bonds only if the bonds are authorized by a
10-15 majority of the qualified voters of the District voting at an
10-16 election called and held for that purpose. The Board may order a
10-17 bond election. The order calling the election shall state the
10-18 nature and date of the election, the hours during which the polls
10-19 will be open, the location of the polling places, the amounts of
10-20 the bonds to be authorized, and the maximum maturity of the bonds.
10-21 Notice of a bond election shall be given as provided for by Article
10-22 704, Revised Statutes. The Board shall canvass the returns and
10-23 declare the results of the election. <seventy-five cents (75›) on
10-24 each One Hundred Dollars ($100) valuation of taxable property in
10-25 any one year. Any bonds hereafter issued payable from taxation
10-26 shall be issued under the provisions of Chapter 1, Title 22 of the
10-27 Revised Civil Statutes of Texas, 1925, as amended, and notice of
11-1 the election shall be given by posting notice thereof at least
11-2 fourteen (14) days prior to the date thereof at three (3) public
11-3 places within the District and by publishing such notice at least
11-4 twice in a newspaper of general circulation in the District, the
11-5 day of the first publication to be at least fourteen (14) days
11-6 prior to the date set for the election.> Such election, except as
11-7 herein provided, shall be governed by the general laws relating to
11-8 County elections.
11-9 (b) The Board may issue and sell general obligation bonds
11-10 authorized by an election in the name and on the faith and credit
11-11 of the District to:
11-12 (1) purchase, construct, acquire, repair, or renovate
11-13 buildings or improvements;
11-14 (2) equip buildings or improvements for hospital
11-15 purposes; or
11-16 (3) acquire and operate a mobile emergency medical or
11-17 air ambulance service.
11-18 (c) Bonds of the District shall be executed in the name of
11-19 the Hospital District and in its behalf by the president of the
11-20 Board and attested by the secretary, as provided by Chapter 204,
11-21 Acts of the 57th Legislature, Regular Session, 1961 (Article
11-22 717j-1, Vernon's Texas Civil Statutes), and shall be subject to the
11-23 same requirements in the matter of approval by the Attorney General
11-24 of Texas and registration by the Comptroller of Public Accounts of
11-25 the State of Texas as are by law provided for approval and
11-26 registration of bonds issued by counties. After approval of any
11-27 such bonds by the Attorney General and registration by the
12-1 Comptroller, said bonds shall be incontestable.
12-2 (d) District bonds must mature not later than the 40th
12-3 anniversary of the date of issuance and must bear a rate of
12-4 interest that does not exceed the amount provided by Chapter 3,
12-5 Acts of the 61st Legislature, Regular Session, 1969 (Article
12-6 717k-2, Vernon's Texas Civil Statutes).
12-7 SECTION 9. Section 13, Chapter 477, Acts of the 59th
12-8 Legislature, Regular Session, 1965, is amended to read as follows:
12-9 Sec. 13. The Board of Directors of the District shall name
12-10 one or more banks <within the District> to serve as depository for
12-11 the funds of the District. All such funds shall, as derived and
12-12 collected, be immediately deposited with such depository bank or
12-13 banks for the payment of principal of and interest on the
12-14 outstanding bonds of the District in time that such money may be
12-15 received by said bank or banks for payment on or prior to the date
12-16 of maturity of such principal and interest so to be paid. To the
12-17 extent that funds in the depository bank or banks are not insured
12-18 by the Federal Deposit Insurance Corporation, they shall be secured
12-19 in the manner provided by law for security of county funds.
12-20 Membership on the Board of Directors of an officer or director of a
12-21 bank shall not disqualify such bank from being designated as
12-22 depository.
12-23 SECTION 10. Section 16, Chapter 477, Acts of the 59th
12-24 Legislature, Regular Session, 1965, is amended to read as follows:
12-25 Sec. 16. The Board may annually impose property taxes in an
12-26 amount not to exceed the limit approved by the voters at the
12-27 election authorizing the levy of taxes. The tax rate for all
13-1 purposes may not exceed 75 cents on each $100 valuation of all
13-2 taxable property in the District. The taxes may be used to pay for
13-3 indebtedness issued or assumed by the District and for the
13-4 maintenance and operating expenses of the District. The District
13-5 may not impose taxes to pay the principal of or interest on revenue
13-6 bonds. The Tax Code governs the appraisal, assessment, and
13-7 collection of District taxes. The Board may provide for the
13-8 appointment of a tax assessor-collector for the District or may
13-9 contract for the assessment and collection of taxes as provided by
13-10 the Tax Code. <District taxes shall be assessed and collected on
13-11 county tax values in the same manner as provided by law with
13-12 relation to county taxes upon all taxable property within said
13-13 District, subject to Hospital District taxation. The Tax Assessor
13-14 and/or Collector of Cooke County shall be charged and required to
13-15 accomplish the assessment and collection of all taxes levied by and
13-16 on behalf of the District. The Assessor and Collector of taxes
13-17 shall charge and deduct from payments to the Hospital District the
13-18 dues for assessing and collecting the taxes at a rate of not to
13-19 exceed one per cent (1%) for assessing and one per cent (1%) for
13-20 collecting as may be agreed upon by the District and the Tax
13-21 Assessor, but in no event shall the amount of such compensation
13-22 exceed a total of Five Thousand Dollars ($5,000) in any one fiscal
13-23 year of the District. Such fees shall be deposited in the
13-24 officers' salary fund of the county and reported as fees of office
13-25 of the county Tax Assessor and Collector. Interest and penalties
13-26 on taxes paid to the Hospital District shall be the same as in the
13-27 case of county taxes. Discounts shall be the same as allowed by
14-1 the county. The residue of tax collections, after deduction of
14-2 discounts and fees for assessing and collecting, shall be deposited
14-3 in the District's depository. The Board of Directors shall have
14-4 the authority to levy the aforesaid tax for the entire year in
14-5 which said District is established as the result of the election
14-6 herein provided. The bond of the county Tax Assessor-Collector
14-7 shall stand as security for the proper performance of his duties as
14-8 Assessor-Collector of the District or, if in the judgment of the
14-9 District Board of Directors it is necessary, additional bond
14-10 payable to the District may be required. In all matters pertaining
14-11 to the assessment, collection and enforcement of taxes for the
14-12 District, the county Tax Assessor-Collector shall be authorized to
14-13 act in all respects according to the laws of the State of Texas
14-14 relating to state and county taxes.>
14-15 SECTION 11. Section 19, Chapter 477, Acts of the 59th
14-16 Legislature, Regular Session, 1965, is amended to read as follows:
14-17 Sec. 19. (a) Before September 1 of each year or as provided
14-18 by Section 6(b) of this Act, the <The> Board of Directors of said
14-19 Hospital District shall cause to be prepared an annual budget based
14-20 upon the fiscal year of the Hospital District, and prior to
14-21 September 1 of each year shall give notice of the public hearing on
14-22 the proposed budget. Such notice shall be published in a newspaper
14-23 of general circulation in the District one time at least ten (10)
14-24 days prior to the date set for the hearing. The Board shall adopt
14-25 a budget by taking action on the budget proposed by the
14-26 administrator. The budget is effective only after adoption by the
14-27 Board. After adoption, the annual budget may be amended on the
15-1 Board's approval.
15-2 (b) Before September 1 of each year, <At the conclusion of
15-3 the hearing> the Board shall publish notice of tax rates, give
15-4 notice and conduct a public hearing as required by Chapter 26, Tax
15-5 Code, and enter <on its minutes> an order levying taxes on all
15-6 property in the District that is subject to hospital district
15-7 taxation <for the ensuing year and such order shall state the rate
15-8 of tax levied for meeting the requirements of the District's bonds
15-9 and the rate levied for the care of indigents>.
15-10 SECTION 12. Chapter 477, Acts of the 59th Legislature,
15-11 Regular Session, 1965, is amended by adding Sections 20a and 20b to
15-12 read as follows:
15-13 Sec. 20a. (a) If the Board of Directors declares that funds
15-14 are not available to meet the lawfully authorized obligations of
15-15 the District and that an emergency exists, the Board may borrow
15-16 money at a rate not to exceed the maximum annual percentage rate
15-17 allowed by law for District obligations at the time of the loan.
15-18 (b) To secure a loan, the Board may pledge:
15-19 (1) the revenues of the District that are not pledged
15-20 to pay the bonded indebtedness of the District;
15-21 (2) District taxes to be levied by the District during
15-22 the 12-month period following the date of the pledge that are not
15-23 pledged to pay the principal of or interest on District bonds; or
15-24 (3) District bonds that have been authorized but not
15-25 sold.
15-26 (c) A loan for which taxes or bonds are pledged shall mature
15-27 not later than the first anniversary of the date on which the loan
16-1 is made. A loan for which District revenues are pledged shall
16-2 mature not later than the fifth anniversary of the date on which
16-3 the loan is made.
16-4 (d) The Board may not spend money obtained from a loan under
16-5 this section for any purpose other than the purpose for which the
16-6 Board declared an emergency. If taxes or bonds are pledged to pay
16-7 the loan, the Board may not spend the loan proceeds other than for
16-8 the purpose for which the taxes were levied or the bonds were
16-9 authorized.
16-10 Sec. 20b. (a) The District may be dissolved only if the
16-11 dissolution is approved by a majority of the qualified voters of
16-12 the District voting in an election called and held for that
16-13 purpose.
16-14 (b) The Board may order an election on the question of
16-15 dissolving the District and disposing of the District's assets and
16-16 obligations. The Board shall order an election if the Board
16-17 receives a petition requesting an election that is signed by a
16-18 number of residents of the District equal to at least 15 percent of
16-19 the registered voters in the District.
16-20 (c) The election shall be held not later than the 60th day
16-21 after the date the election is ordered. Section 41.001(a),
16-22 Election Code, does not apply to an election ordered under this
16-23 section. The order calling the election shall state:
16-24 (1) the nature of the election, including the
16-25 proposition that is to appear on the ballot;
16-26 (2) the date of the election;
16-27 (3) the hours during which the polls will be open; and
17-1 (4) the location of the polling places.
17-2 (d) The Board shall give notice of the election by
17-3 publishing a substantial copy of the election order in a newspaper
17-4 with general circulation in the District once a week for two
17-5 consecutive weeks. The first publication must appear not less than
17-6 35 days before the date set for the election. The ballot for the
17-7 election shall be printed to permit voting for or against the
17-8 proposition: "The dissolution of the Muenster Hospital District."
17-9 (e) If a majority of the votes in the election favor
17-10 dissolution, the Board shall find that the District is dissolved.
17-11 If a majority of the votes in the election do not favor
17-12 dissolution, the Board shall continue to administer the District,
17-13 and another election on the question of dissolution may not be held
17-14 before the first anniversary of the most recent election to
17-15 dissolve the District.
17-16 (f) If a majority of the votes in the election favor
17-17 dissolution, the Board shall:
17-18 (1) transfer the land, buildings, improvements,
17-19 equipment, and other assets that belong to the District to a county
17-20 or another governmental entity in the county in which the District
17-21 is located; or
17-22 (2) administer the property, assets, and debts until
17-23 all funds have been disposed of and all District debts have been
17-24 paid or settled.
17-25 (g) If the District transfers the land, buildings,
17-26 improvements, equipment, and other assets to a county or other
17-27 governmental entity, the county or entity assumes all debts and
18-1 obligations of the District at the time of the transfer, and the
18-2 District is dissolved.
18-3 (h) After the Board finds that the District is dissolved,
18-4 the Board shall:
18-5 (1) determine the debt owed by the District; and
18-6 (2) impose on the property included in the District's
18-7 tax rolls a tax that is in proportion of the debt to the property
18-8 value.
18-9 (i) When all outstanding debts and obligations of the
18-10 District are paid, the Board shall order the secretary to return
18-11 the pro rata share of all unused tax money to each District
18-12 taxpayer.
18-13 (j) A taxpayer may request that the taxpayer's share of
18-14 surplus tax money be credited to the taxpayer's county taxes. If a
18-15 taxpayer requests the credit, the Board shall direct the secretary
18-16 to transmit the funds to the county tax assessor-collector.
18-17 (k) After the District has paid all its debts and has
18-18 disposed of all its assets and funds as prescribed by this
18-19 section, the Board shall file a written report with the
18-20 Commissioners Court of Cooke County setting forth a summary of the
18-21 Board's actions in dissolving the District.
18-22 (l) Not later than the 10th day after the date it receives
18-23 the report and determines that the requirements of this section
18-24 have been fulfilled, the Commissioners Court of Cooke County shall
18-25 enter an order dissolving the District and releasing the Board of
18-26 Directors of the District from any further duty or obligation.
18-27 (m) Notwithstanding any other provision of this Act, the
19-1 District may not be dissolved unless the Board provides for the
19-2 sale or transfer of the District's assets and liabilities to
19-3 another person or entity. The dissolution of the District and the
19-4 sale or transfer of the District's assets or liabilities may not
19-5 contravene a trust indenture or bond resolution relating to the
19-6 outstanding bonds of the District. The dissolution and sale or
19-7 transfer does not diminish or impair the rights of a holder of an
19-8 outstanding bond, warrant, or other obligation of the District.
19-9 (n) The sale or transfer of the District's assets and
19-10 liabilities must satisfy the debt and bond obligations of the
19-11 District in a manner that protects the interests of the residents
19-12 of the District, including the residents' collective property
19-13 rights in the District's assets. A grant from federal funds is an
19-14 obligation to be repaid in satisfaction. The District may not
19-15 transfer or dispose of the District's assets except for due
19-16 compensation unless the transfer is made to another governmental
19-17 entity that serves the District and the transferred assets are to
19-18 be used for the benefit of the residents of the District.
19-19 SECTION 13. Sections 4a, 6(a), and 10, Chapter 477, Acts of
19-20 the 59th Legislature, Regular Session, 1965, are repealed.
19-21 SECTION 14. (a) The election of directors scheduled before
19-22 the effective date of this Act to be held in May 1995 shall be
19-23 held, and the three directors who receive the highest total number
19-24 of votes shall be elected to serve three-year terms, and the
19-25 director who receives the fourth highest total number of votes
19-26 shall be elected to serve a two-year term.
19-27 (b) In the election of directors scheduled to be held in
20-1 May 1996, the three directors who receive the highest total number
20-2 of votes shall be elected to serve three-year terms, and the two
20-3 directors who receive the fourth and fifth highest total number of
20-4 votes shall be elected to serve one-year terms.
20-5 SECTION 15. The importance of this legislation and the
20-6 crowded condition of the calendars in both houses create an
20-7 emergency and an imperative public necessity that the
20-8 constitutional rule requiring bills to be read on three several
20-9 days in each house be suspended, and this rule is hereby suspended,
20-10 and that this Act take effect and be in force from and after its
20-11 passage, and it is so enacted.