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 * * * * *