1-1        By:  Haywood                                    S.B. No. 1241
    1-2        (In the Senate - Filed March 10, 1995; March 16, 1995, read
    1-3  first time and referred to Committee on Intergovernmental
    1-4  Relations; March 30, 1995, reported favorably by the following
    1-5  vote:  Yeas 11, Nays 0; March 30, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the operation of the Muenster Hospital District.
    1-9        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-10        SECTION 1.  Section 2, Chapter 477, Acts of the 59th
   1-11  Legislature, Regular Session, 1965, is amended to read as follows:
   1-12        Sec. 2.  The District herein authorized to be created shall
   1-13  provide for the establishment, administration, maintenance,
   1-14  operation, and financing of a hospital or hospital system within
   1-15  its boundaries and may provide any services or facilities necessary
   1-16  for hospital or medical care, including rural health clinics,
   1-17  outpatient clinics, nursing homes, home health care agencies,
   1-18  extended care facilities, assisted living or personal care
   1-19  facilities, and retirement, housing, and medical office buildings
   1-20  <by the purchase, construction, acquisition, repair or renovation
   1-21  of buildings and improvements, and the equipping of same and the
   1-22  administration thereof for hospital purposes>.  Such district shall
   1-23  assume full responsibility for providing medical and hospital care
   1-24  for its needy inhabitants.  <It is hereby found and determined that
   1-25  there is no hospital or hospital system or hospital facilities of
   1-26  any nature presently owned by Cooke County or by any city or town
   1-27  within the boundaries hereinabove set forth, it being further found
   1-28  that the Muenster Hospital Authority has heretofore been
   1-29  established under the provisions of Chapter 472, Acts of the 55th
   1-30  Legislature, Regular Session, 1957, as amended (Article 4437e,
   1-31  Vernon's Texas Civil Statutes), and that such Authority currently
   1-32  operates and maintains a hospital within the boundaries hereinabove
   1-33  set forth as a political subdivision of the State of Texas.>
   1-34        SECTION 2.  Section 4, Chapter 477, Acts of the 59th
   1-35  Legislature, Regular Session, 1965, is amended to read as follows:
   1-36        Sec. 4.  (a)  The Board of Directors consists of nine
   1-37  Directors. Directors elected at elections held after May, 1997,
   1-38  serve staggered three-year terms.  <Upon the effective date of this
   1-39  Act, the following named nine (9) persons shall be and constitute
   1-40  the temporary or provisional Directors of the said District:>
   1-41        <Alphonse Felderhoff>
   1-42        <Robert Bayer>
   1-43        <Ray Voth>
   1-44        <John Bayer>
   1-45        <Norbert J. Felderhoff>
   1-46        <Alois Trubenbach>
   1-47        <Albert Dangelmayr>
   1-48        <E. T. Stormer>
   1-49        <Joe Galloway>
   1-50  <and each of said Directors shall subscribe to the Constitutional
   1-51  oath of office within sixty (60) days of the effective date of this
   1-52  Act.  Should any of the named Directors refuse to act or for any
   1-53  reason fail to qualify as herein required, the County Judge of
   1-54  Cooke County shall fill such vacancy.  The terms of office of the
   1-55  first, third, fifth, seventh, and ninth named Directors shall
   1-56  expire on the first Saturday in April of the year following the
   1-57  election for the creation of the District, and the terms of the
   1-58  second, fourth, sixth, and eighth named Directors shall expire on
   1-59  the first Saturday in April of the second year following the
   1-60  election for the creation of the District.>  A regular election for
   1-61  Directors shall be held on the first Saturday in May <April> of
   1-62  each year.  The regular election for Directors shall be ordered by
   1-63  the Board and such order shall state the time, place and purpose of
   1-64  the election, and the Board shall appoint the presiding judge who
   1-65  shall appoint an assistant judge and such clerks as may be
   1-66  required, and such election shall be ordered at least 45 <fifteen
   1-67  (15)> days prior to the date on which it is to be held.  Any person
   1-68  desiring his name to be printed on the ballot as a candidate for
    2-1  director shall file an application <a petition signed by not less
    2-2  than fifteen (15) qualified voters asking that such name be printed
    2-3  on the ballot,> with the secretary of the Board of Directors of the
    2-4  District<.  Such petition shall be filed with such secretary> at
    2-5  least 31 <twenty-five (25)> days prior to the date of election.
    2-6  Notice of such election shall be published one <(1)> time in a
    2-7  newspaper of general circulation in the area of the District at
    2-8  least 36 <five (5)> days before the election.  All vacancies in
    2-9  office <(other than for the failure of an original Director herein
   2-10  appointed to qualify)> shall be filled by a majority vote of the
   2-11  remaining Directors and such appointees shall hold office for the
   2-12  unexpired term for which they were appointed.
   2-13        (b)  No director shall be entitled to compensation, but shall
   2-14  be entitled to receive <his> actual expenses incurred in attending
   2-15  to the District's business, provided such expenses are reported in
   2-16  the District's minute book or other District records and approved
   2-17  by the remainder of the Board.  Any person who is a resident of the
   2-18  District and a qualified voter <property owning taxpayer> shall be
   2-19  eligible to hold office as director of the District.  However, an
   2-20  employee of the District may not serve as a director<, and at least
   2-21  seven (7) members of the Board shall be residents of the District>.
   2-22  The Board of Directors shall elect from its number a president
   2-23  and<,> vice president and shall appoint a<,> secretary who need not
   2-24  be a director <and such other officers as in the judgment of the
   2-25  Board are necessary>.  Each officer shall serve for a term of one
   2-26  year.  The president shall be the chief executive officer of the
   2-27  District, and shall have the same right to vote as any other
   2-28  Director.  The vice president shall perform all duties and exercise
   2-29  all powers conferred by this Act upon the president when the
   2-30  president is absent or fails and declines to act.
   2-31        (c)  <The Directors named herein and their successors in
   2-32  office shall hold office as provisional or temporary Directors
   2-33  until such time as the creation of the District has been approved
   2-34  at an election as herein provided.  At such time as the creation of
   2-35  the District is so approved and the returns of the election
   2-36  officially canvassed, the persons acting as provisional or
   2-37  temporary Directors shall become permanent Directors whose terms
   2-38  shall expire as hereinabove provided.>  Each <permanent> Director
   2-39  and his successor in office shall qualify by executing the
   2-40  Constitutional oath of office.  A majority of the Board shall
   2-41  constitute a quorum for the transaction of business.
   2-42        SECTION 3.  Section 5, Chapter 477, Acts of the 59th
   2-43  Legislature, Regular Session, 1965, is amended to read as follows:
   2-44        Sec. 5.  (a)  The Board of Directors shall manage, control
   2-45  and administer the hospital <hospitals> and the hospital system and
   2-46  the business, funds, and resources of the District.  The District
   2-47  through its Board of Directors shall have the power and authority
   2-48  to sue and be sued and to promulgate rules and regulations for the
   2-49  operation of the District.  The Board of Directors shall appoint a
   2-50  qualified person to be known as the administrator <or manager> of
   2-51  the Hospital District and may in its discretion appoint an
   2-52  assistant to the administrator <or manager>.  Such administrator
   2-53  <or manager,> and assistant administrator <or assistant manager>,
   2-54  if any, shall serve at the will of the Board and shall receive such
   2-55  compensation as may be fixed by the Board.  The Board may require
   2-56  the <The> administrator before <or manager shall, upon> assuming
   2-57  the administrator's <his> duties to<,> execute a bond payable to
   2-58  the Hospital District in an amount to be set by the Board of
   2-59  Directors, in no event less than <Five Thousand Dollars (>$5,000<)>
   2-60  conditioned on the faithful performance of the administrator's
   2-61  <that he shall perform the> duties <required of him> and containing
   2-62  such other conditions as the Board may require.  The Board may pay
   2-63  for the bond with District funds.
   2-64        (b)  The administrator <or manager> shall supervise all the
   2-65  work and activities of the Hospital and shall have general
   2-66  direction of the affairs of the District, subject to such
   2-67  limitations as may be prescribed by the Board.  The Board of
   2-68  Directors, with the administrator, shall have the authority to
   2-69  appoint to the staff doctors the Board considers necessary for the
   2-70  efficient operation of the District.  The Board may <admit such
    3-1  doctors or> employ technicians, nurses and other employees of every
    3-2  kind and character as may be deemed necessary for the efficient
    3-3  operation of the Hospital, or may provide that the administrator
    3-4  <or manager> shall have the authority to admit or employ such
    3-5  persons.
    3-6        (c)  Such Board shall be authorized to contract with any
    3-7  county or incorporated municipality located outside the District
    3-8  for the care and treatment of the sick, diseased or injured persons
    3-9  of any such county or municipality and shall have the authority to
   3-10  contract with the State of Texas and agencies of the Federal
   3-11  government, for treatment of sick, diseased or injured persons for
   3-12  whom the State of Texas or the Federal government are responsible.
   3-13        (d)  The Board may purchase or lease property, facilities,
   3-14  and equipment for the District to use in the hospital system and
   3-15  may mortgage or pledge the property, facilities, or equipment as
   3-16  security for the payment of the purchase price  <of Directors is
   3-17  also authorized to enter into such contracts or agreements with the
   3-18  State of Texas or the Federal government as may be required to
   3-19  establish or continue a retirement program for the benefit of the
   3-20  District's employees>.
   3-21        (e)  The Board may also enter into a contract or contracts
   3-22  <with nonprofit corporations whereby such corporations agree> to
   3-23  provide administrative and other personnel for the operation of the
   3-24  hospital facilities, but in no event may such contract be for a
   3-25  period in excess of <twenty-five (>25<)> years from the date the
   3-26  same is entered. The Board may transfer District hospital
   3-27  facilities by lease to individuals, corporations, or other legal
   3-28  entities and may sell or otherwise dispose of the District's
   3-29  property, facilities, and equipment.
   3-30        (f)  The Board may provide retirement benefits for the
   3-31  employees of the District by establishing or administering a
   3-32  retirement program or electing to participate in the Texas County
   3-33  and District Retirement System or any other statewide retirement
   3-34  system in which the District is eligible to participate.
   3-35        (g)  The Board of Directors may spend District funds to
   3-36  recruit physicians, nurses, and other trained medical personnel.
   3-37  The Board may contract with one or more full-time medical students
   3-38  or other students in a health occupation, each of whom is enrolled
   3-39  in good standing in an accredited medical school, college, or
   3-40  university, to pay the student's tuition or other expenses in
   3-41  consideration of the student's contractual agreement to serve as an
   3-42  employee or independent contractor for the District under terms
   3-43  provided for in the contract.
   3-44        (h)  The Board may institute a suit to enforce the payment of
   3-45  taxes and to foreclose liens to secure the payment of taxes due to
   3-46  the District.
   3-47        SECTION 4.  Section 6, Chapter 477, Acts of the 59th
   3-48  Legislature, Regular Session, 1965, is amended to read as follows:
   3-49        Sec. 6.  The District shall be operated on a fiscal year
   3-50  established by the Board of Directors.  The fiscal year may not be
   3-51  changed when revenue bonds are outstanding or more than one time in
   3-52  a 24-month period.  The Board <commencing on October 1 of each year
   3-53  and ending on September 30 of the succeeding year, and it> shall
   3-54  cause an annual audit to be made of the financial condition of said
   3-55  District which shall at all times be open to inspection at the
   3-56  principal office of the District.  <In addition the administrator
   3-57  or manager shall prepare an annual budget for approval by the Board
   3-58  of Directors  of said District.  As soon as practical after the
   3-59  close of each fiscal year, the administrator or manager shall
   3-60  prepare for the Board a full sworn statement of all moneys
   3-61  belonging to the District, and a full account of the disbursements
   3-62  of same.>
   3-63        SECTION 5.  Section 6(b), Chapter 477, Acts of the 59th
   3-64  Legislature, Regular Session, 1965, is amended to read as follows:
   3-65        Sec. 6(b).  In the event a new fiscal year is adopted under
   3-66  the provisions of Section 6 <6(a)> of this Act, notice of the
   3-67  public hearing (required by Section 19 of this law) on the adoption
   3-68  of a proposed budget shall be given at least <thirty (>30<)> days
   3-69  prior to the beginning of the fiscal or budget year the budget is
   3-70  to cover.
    4-1        SECTION 6.  Section 7, Chapter 477, Acts of the 59th
    4-2  Legislature, Regular Session, 1965, is amended to read as follows:
    4-3        Sec. 7.  The District may issue revenue bonds for the purpose
    4-4  of purchasing, constructing, repairing, renovating, or acquiring
    4-5  <the purchase and acquisition of> buildings or <and> improvements,
    4-6  <and> equipping the same for hospitals and the hospital system,
    4-7  acquiring sites to be used for hospital purposes, or for operating
    4-8  a mobile emergency medical service to assist the District in
    4-9  carrying out its hospital purposes <and such bonds may be issued
   4-10  payable (1) only from revenues of the hospital system in the manner
   4-11  prescribed by Sections 7, 8 and 10 through 13 of Chapter 122, Acts
   4-12  of the 58th Legislature, Regular Session, 1963 (Article 4494r,
   4-13  Vernon's Texas Civil Statutes) or (2) payable only from taxation
   4-14  for which provision is made in Section 9>.  The bonds shall be
   4-15  payable from and secured by a pledge of all or part of the revenues
   4-16  derived from the operation of the District's hospital system.  The
   4-17  bonds may be additionally secured by a mortgage or deed of trust on
   4-18  all or part of District property.  The revenue bonds shall be
   4-19  issued in the manner provided by Sections 264.042, 264.043,
   4-20  264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for
   4-21  the issuance of revenue bonds by county hospital authorities.
   4-22        SECTION 7.  Section 8, Chapter 477, Acts of the 59th
   4-23  Legislature, Regular Session, 1965, is amended to read as follows:
   4-24        Sec. 8.  The bonds of the District may be issued for the
   4-25  purpose of refunding and paying off any bond issued by the
   4-26  District.  Refunding bonds shall be issued as provided by Chapter
   4-27  784, Acts of the 61st Legislature, Regular Session, 1969 (Article
   4-28  717k-3, Vernon's Texas Civil Statutes).  Such refunding bonds may
   4-29  be sold and the proceeds thereof applied to the payment of any
   4-30  outstanding bonds or other refundable indebtedness, or may be
   4-31  exchanged in whole or in part for not less than a like principal
   4-32  amount of such outstanding bonds or refundable indebtedness;
   4-33  provided that if such refunding bonds are to be exchanged for a
   4-34  like amount of said outstanding bonds or other refundable
   4-35  indebtedness, the interest thereon computed in accordance with
   4-36  recognized standard bond interest cost tables, shall not exceed the
   4-37  average interest cost per annum so computed upon the bonds or other
   4-38  indebtedness to be refunded; and provided further that, if such
   4-39  refunding bonds are to be sold and the proceeds thereof applied to
   4-40  the payment of any such outstanding bonds or other refundable
   4-41  indebtedness, same shall be issued and payments made in the manner
   4-42  specified by Chapter 503, Acts of the 54th Legislature, 1955
   4-43  (Article 717k, Vernon's Texas Civil Statutes), as amended.
   4-44        SECTION 8.  Section 9, Chapter 477, Acts of the 59th
   4-45  Legislature, Regular Session, 1965, is amended to read as follows:
   4-46        Sec. 9.  (a)  As to bonds payable from taxation, a tax shall
   4-47  be levied by the Board sufficient to create an interest and sinking
   4-48  fund and to pay the interest on and principal of said bonds as same
   4-49  mature, providing such tax together with any other taxes levied for
   4-50  said District shall not exceed the limit approved by the voters at
   4-51  the election authorizing the levy of taxes.  The District may issue
   4-52  general obligation bonds only if the bonds are authorized by a
   4-53  majority of the qualified voters of the District voting at an
   4-54  election called and held for that purpose.  The Board may order a
   4-55  bond election.  The order calling the election shall state the
   4-56  nature and date of the election, the hours during which the polls
   4-57  will be open, the location of the polling places, the amounts of
   4-58  the bonds to be authorized, and the maximum maturity of the bonds.
   4-59  Notice of a bond election shall be given as provided for by Article
   4-60  704, Revised Statutes.  The Board shall canvass the returns and
   4-61  declare the results of the election <seventy-five cents (75›) on
   4-62  each One Hundred Dollars ($100) valuation of taxable property in
   4-63  any one year.  Any bonds hereafter issued payable from taxation
   4-64  shall be issued under the provisions of Chapter 1, Title 22 of the
   4-65  Revised Civil Statutes of Texas, 1925, as amended, and notice of
   4-66  the election shall be given by posting notice thereof at least
   4-67  fourteen (14) days prior to the date thereof at three (3) public
   4-68  places within the District and by publishing such notice at least
   4-69  twice in a newspaper of general circulation in the District, the
   4-70  day of the first publication to be at least fourteen (14) days
    5-1  prior to the date set for the election>.  Such election, except as
    5-2  herein provided, shall be governed by the general laws relating to
    5-3  County elections.
    5-4        (b)  The Board may issue and sell general obligation bonds
    5-5  authorized by an election in the name and on the faith and credit
    5-6  of the District to:
    5-7              (1)  purchase, construct, acquire, repair, or renovate
    5-8  buildings or improvements;
    5-9              (2)  equip buildings or improvements for hospital
   5-10  purposes; or
   5-11              (3)  acquire and operate a mobile emergency medical or
   5-12  air ambulance service.
   5-13        (c)  Bonds of the District shall be executed in the name of
   5-14  the Hospital District and in its behalf by the president of the
   5-15  Board and attested by the secretary, as provided by Chapter 204,
   5-16  Acts of the 57th Legislature, Regular Session, 1961 (Article
   5-17  717j-1, Vernon's Texas Civil Statutes), and shall be subject to the
   5-18  same requirements in the matter of approval by the Attorney General
   5-19  of Texas and registration by the Comptroller of Public Accounts of
   5-20  the State of Texas as are by law provided for approval and
   5-21  registration of bonds issued by counties.  After approval of any
   5-22  such bonds by the Attorney General and registration by the
   5-23  Comptroller, said bonds shall be incontestable.
   5-24        (d)  District bonds must mature not later than the 40th
   5-25  anniversary of the date of issuance and must bear a rate of
   5-26  interest that does not exceed the amount provided by Chapter 3,
   5-27  Acts of the 61st Legislature, Regular Session, 1969 (Article
   5-28  717k-2, Vernon's Texas Civil Statutes).
   5-29        SECTION 9.  Section 13, Chapter 477, Acts of the 59th
   5-30  Legislature, Regular Session, 1965, is amended to read as follows:
   5-31        Sec. 13.  The Board of Directors of the District shall name
   5-32  one or more banks <within the District> to serve as depository for
   5-33  the funds of the District.  All such funds shall, as derived and
   5-34  collected, be immediately deposited with such depository bank or
   5-35  banks for the payment of principal of and interest on the
   5-36  outstanding bonds of the District in time that such money may be
   5-37  received by said bank or banks for payment on or prior to the date
   5-38  of maturity of such principal and interest so to be paid.  To the
   5-39  extent that funds in the depository bank or banks are not insured
   5-40  by the Federal Deposit Insurance Corporation, they shall be secured
   5-41  in the manner provided by law for security of county funds.
   5-42  Membership on the Board of Directors of an officer or director of a
   5-43  bank shall not disqualify such bank from being designated as
   5-44  depository.
   5-45        SECTION 10.  Section 16, Chapter 477, Acts of the 59th
   5-46  Legislature, Regular Session, 1965, is amended to read as follows:
   5-47        Sec. 16.  The Board of Directors may annually impose property
   5-48  taxes in an amount not to exceed the limit approved by the voters
   5-49  at the election authorizing the levy of taxes.  The tax rate for
   5-50  all purposes may not exceed 75 cents on each $100 valuation of all
   5-51  taxable property in the District.  The taxes may be used to pay for
   5-52  indebtedness issued or assumed by the District and for the
   5-53  maintenance and operating expenses of the District.  The District
   5-54  may not impose taxes to pay the principal of or interest on revenue
   5-55  bonds.  The Tax Code governs the appraisal, assessment, and
   5-56  collection of District taxes.  The Board may provide for the
   5-57  appointment of a tax assessor-collector for the District or may
   5-58  contract for the assessment and collection of taxes as provided by
   5-59  the Tax Code.  <District taxes shall be assessed and collected on
   5-60  county tax values in the same manner as provided by law with
   5-61  relation to county taxes upon all taxable property within said
   5-62  District, subject to Hospital District taxation.  The Tax Assessor
   5-63  and/or Collector of Cooke County shall be charged and required to
   5-64  accomplish the assessment and collection of all taxes levied by and
   5-65  on behalf of the District.  The Assessor and Collector of taxes
   5-66  shall charge and deduct from payments to the Hospital District the
   5-67  dues for assessing and collecting the taxes at a rate of not to
   5-68  exceed one per cent (1%) for assessing and one per cent (1%) for
   5-69  collecting as may be agreed upon by the District and the Tax
   5-70  Assessor, but in no event shall the amount of such compensation
    6-1  exceed a total of Five Thousand Dollars ($5,000) in any one fiscal
    6-2  year of the District.  Such fees shall be deposited in the
    6-3  officers' salary fund of the county and reported as fees of office
    6-4  of the county Tax Assessor and Collector.  Interest and penalties
    6-5  on taxes paid to the Hospital District shall be the same as in the
    6-6  case of county taxes.  Discounts shall be the same as allowed by
    6-7  the county.  The residue of tax collections, after deduction of
    6-8  discounts and fees for assessing and collecting, shall be deposited
    6-9  in the District's depository.  The Board of Directors shall have
   6-10  the authority to levy the aforesaid tax for the entire year in
   6-11  which said District is established as the result of the election
   6-12  herein provided.  The bond of the county Tax Assessor-Collector
   6-13  shall stand as security for the proper performance of his duties as
   6-14  Assessor-Collector of the District or, if in the judgment of the
   6-15  District Board of Directors it is necessary, additional bond
   6-16  payable to the District may be required.  In all matters pertaining
   6-17  to the assessment, collection and enforcement of taxes for the
   6-18  District, the county Tax Assessor-Collector shall be authorized to
   6-19  act in all respects according to the laws of the State of Texas
   6-20  relating to state and county taxes.>
   6-21        SECTION 11.  Section 19, Chapter 477, Acts of the 59th
   6-22  Legislature, Regular Session, 1965, is amended to read as follows:
   6-23        Sec. 19.  (a)  Before September 1 of each year or as provided
   6-24  by Section 6(b) of this Act, the <The> Board of Directors of said
   6-25  Hospital District shall cause to be prepared an annual budget based
   6-26  upon the fiscal year of the Hospital District, and prior to
   6-27  September 1 of each year shall give notice of the public hearing on
   6-28  the proposed budget.  Such notice shall be published in a newspaper
   6-29  of general circulation in the District one time at least <ten
   6-30  (>10<)> days prior to the date set for the hearing.  The Board
   6-31  shall adopt a budget by taking action on the budget proposed by the
   6-32  administrator.  The budget is effective only after adoption by the
   6-33  Board.  After adoption, the annual budget may be amended on the
   6-34  Board's approval.
   6-35        (b)  Before September 1 of each year,  <At the conclusion of
   6-36  the hearing> the Board shall publish notice of tax rates, give
   6-37  notice and conduct a public hearing as required by Chapter 26, Tax
   6-38  Code, and enter <on its minutes> an order levying taxes on all
   6-39  property in the District that is subject to hospital district
   6-40  taxation <for the ensuing year and such order shall state the rate
   6-41  of tax levied for meeting the requirements of the District's bonds
   6-42  and the rate levied for the care of indigents>.
   6-43        SECTION 12.  Chapter 477, Acts of the 59th Legislature,
   6-44  Regular Session, 1965, is amended by adding Sections 20a and 20b to
   6-45  read as follows:
   6-46        Sec. 20a.  (a) If the Board of Directors declares that funds
   6-47  are not available to meet the lawfully authorized obligations of
   6-48  the District and that an emergency exists, the Board may borrow
   6-49  money at a rate not to exceed the maximum annual percentage rate
   6-50  allowed by law for District obligations at the time of the loan.
   6-51        (b)  To secure a loan, the Board may pledge:
   6-52              (1)  the revenues of the District that are not pledged
   6-53  to pay the bonded indebtedness of the District;
   6-54              (2)  District taxes to be levied by the District during
   6-55  the 12-month period following the date of the pledge that are not
   6-56  pledged to pay the principal of or interest on District bonds; or
   6-57              (3)  District bonds that have been authorized but not
   6-58  sold.
   6-59        (c)  A loan for which taxes or bonds are pledged shall mature
   6-60  not later than the first anniversary of the date on which the loan
   6-61  is made.  A loan for which District revenues are pledged shall
   6-62  mature not later than the fifth anniversary of the date on which
   6-63  the loan is made.
   6-64        (d)  The Board may not spend money obtained from a loan under
   6-65  this section for any purpose other than the purpose for which the
   6-66  Board declared an emergency.  If taxes or bonds are pledged to pay
   6-67  the loan, the Board may not spend the loan proceeds other than for
   6-68  the purpose for which the taxes were levied or the bonds were
   6-69  authorized.
   6-70        Sec. 20b.  (a)  The District may be dissolved only if the
    7-1  dissolution is approved by a majority of the qualified voters of
    7-2  the District voting in an election called and held for that
    7-3  purpose.
    7-4        (b)  The Board may order an election on the question of
    7-5  dissolving the District and disposing of the District's assets and
    7-6  obligations.  The Board shall order an election if the Board
    7-7  receives a petition requesting an election that is signed by a
    7-8  number of residents of the District equal to at least 15 percent of
    7-9  the registered voters in the District.
   7-10        (c)  The election shall be held not later than the 60th day
   7-11  after the date the election is ordered.  Section 41.001(a),
   7-12  Election Code, does not apply to an election ordered under this
   7-13  section.  The order calling the election shall state:
   7-14              (1)  the nature of the election, including the
   7-15  proposition that is to appear on the ballot;
   7-16              (2)  the date of the election;
   7-17              (3)  the hours during which the polls will be open; and
   7-18              (4)  the location of the polling places.
   7-19        (d)  The Board shall give notice of the election by
   7-20  publishing a substantial copy of the election order in a newspaper
   7-21  with general circulation in the District once a week for two
   7-22  consecutive weeks.  The first publication must appear not less than
   7-23  35 days before the date set for the election.  The ballot for the
   7-24  election shall be printed to permit voting for or against the
   7-25  proposition:  "The dissolution of the Muenster Hospital District." 
   7-26        (e)  If a majority of the votes in the election favor
   7-27  dissolution, the Board shall find that the District is dissolved.
   7-28  If a majority of the votes in the election do not favor
   7-29  dissolution, the Board shall continue to administer the District,
   7-30  and another election on the question of dissolution may not be held
   7-31  before the first anniversary of the most recent election to
   7-32  dissolve the District.
   7-33        (f)  If a majority of the votes in the election favor
   7-34  dissolution, the Board shall:
   7-35              (1)  transfer the land, buildings, improvements,
   7-36  equipment, and other assets that belong to the District to a county
   7-37  or another governmental entity in the county in which the District
   7-38  is located; or
   7-39              (2)  administer the property, assets, and debts until
   7-40  all funds have been disposed of and all District debts have been
   7-41  paid or settled.
   7-42        (g)  If the District transfers the land, buildings,
   7-43  improvements, equipment, and other assets to a county or other
   7-44  governmental entity, the county or entity assumes all debts and
   7-45  obligations of the District at the time of the transfer, and the
   7-46  District is dissolved.
   7-47        (h)  After the Board finds that the District is dissolved,
   7-48  the Board shall:
   7-49              (1)  determine the debt owed by the District; and
   7-50              (2)  impose on the property included in the District's
   7-51  tax rolls a tax that is in proportion of the debt to the property
   7-52  value.
   7-53        (i)  When all outstanding debts and obligations of the
   7-54  District are paid, the Board shall order the secretary to return
   7-55  the pro rata share of all unused tax money to each District
   7-56  taxpayer.
   7-57        (j)  A taxpayer may request that the taxpayer's share of
   7-58  surplus tax money be credited to the taxpayer's county taxes.  If a
   7-59  taxpayer requests the credit, the Board shall direct the secretary
   7-60  to transmit the funds to the county tax assessor-collector.
   7-61        (k)  After the District has paid all its debts and has
   7-62  disposed of all its assets and funds as prescribed by  this
   7-63  section, the Board shall file a written report with the
   7-64  Commissioners Court of Cooke County  setting forth a summary of the
   7-65  Board's actions in dissolving the District.
   7-66        (l)  Not later than the 10th day after the date it receives
   7-67  the report and determines that the requirements of this section
   7-68  have been fulfilled, the Commissioners Court of Cooke County shall
   7-69  enter an order dissolving the District and releasing the Board of
   7-70  Directors of the District from any further duty or obligation.
    8-1        (m)  Notwithstanding any other provision of this Act, the
    8-2  District may not be dissolved unless the Board provides for the
    8-3  sale or transfer of the District's assets and liabilities to
    8-4  another person or entity.  The dissolution of the District and the
    8-5  sale or transfer of the District's assets or liabilities may not
    8-6  contravene a trust indenture or bond resolution relating to the
    8-7  outstanding bonds of the District.  The dissolution and sale or
    8-8  transfer does not diminish or impair the rights of a holder of an
    8-9  outstanding bond, warrant, or other obligation of the District.
   8-10        (n)  The sale or transfer of the District's assets and
   8-11  liabilities must satisfy the debt and bond obligations of the
   8-12  District in a manner that protects the interests of the residents
   8-13  of the District, including the residents' collective property
   8-14  rights in the District's assets.  A grant from federal funds is an
   8-15  obligation to be repaid in satisfaction.  The District may not
   8-16  transfer or dispose of the District's assets except for due
   8-17  compensation unless the transfer is made to another governmental
   8-18  entity that serves the District and the transferred assets are to
   8-19  be used for the benefit of the residents of the District.
   8-20        SECTION 13.  Sections 4a, 6(a), and 10, Chapter 477, Acts of
   8-21  the 59th Legislature, Regular Session, 1965, are repealed.
   8-22        SECTION 14.  (a)  The election of directors scheduled before
   8-23  the effective date of this Act to be held in May, 1995, shall be
   8-24  held, and the three directors who receive the highest total number
   8-25  of votes shall be elected to serve three-year terms, and the
   8-26  director who receives the fourth highest total number of votes
   8-27  shall be elected to serve a two-year term.
   8-28        (b)  In the election of directors scheduled  to be held in
   8-29  May, 1996, the three directors who receive the highest total number
   8-30  of votes shall be elected to serve three-year terms, and the two
   8-31  directors who receive the fourth and fifth highest total number of
   8-32  votes shall be elected to serve one-year terms.
   8-33        SECTION 15.  The importance of this legislation and the
   8-34  crowded condition of the calendars in both houses create an
   8-35  emergency and an imperative public necessity that the
   8-36  constitutional rule requiring bills to be read on three several
   8-37  days in each house be suspended, and this rule is hereby suspended,
   8-38  and that this Act take effect and be in force from and after its
   8-39  passage, and it is so enacted.
   8-40                               * * * * *