1-1 By: Counts (Senate Sponsor - Haywood) H.B. No. 2277
1-2 (In the Senate - Received from the House April 14, 1997;
1-3 April 16, 1997, read first time and referred to Committee on
1-4 Intergovernmental Relations; April 24, 1997, reported favorably by
1-5 the following vote: Yeas 11, Nays 0; April 24, 1997, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the Fisher County Hospital District.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 2, Chapter 448, Acts of the 63rd
1-12 Legislature, Regular Session, 1973, is amended to read as follows:
1-13 Sec. 2. The district herein authorized to be created shall
1-14 take over, and there shall be transferred to it, title to any and
1-15 all lands, buildings, improvements, equipment, cash, moneys,
1-16 accounts receivable, negotiable bonds, and choses in action in
1-17 anywise pertaining to the hospital or hospital system that may be
1-18 owned by Fisher County, or any city or town within such county at
1-19 the time of the election for the creation of the district; and
1-20 thereafter, the district shall have full title to all such
1-21 properties (real, personal, mixed, concrete, or abstract) and
1-22 provide for the establishment of a hospital system by the purchase,
1-23 construction, acquisition, repair, or renovation of buildings and
1-24 equipment, and equipping same, and the administration thereof for
1-25 hospital purposes. Such district shall assume all outstanding
1-26 obligations and indebtedness incurred by any city or town within
1-27 said county or by Fisher County for hospital purposes prior to the
1-28 creation of any district. The district has full responsibility for
1-29 operating hospital facilities and for furnishing medical care and
1-30 hospital care for the district's needy residents. In the
1-31 geographic service area designated by the board of directors, the
1-32 district may operate or provide for:
1-33 (1) the operation of a mobile emergency medical
1-34 service; and
1-35 (2) home health services, long-term care services,
1-36 skilled nursing care services, intermediate nursing care services,
1-37 assisted living services, hospice care, or other health-related
1-38 services.
1-39 SECTION 2. Sections 4(c) and (f), Chapter 448, Acts of the
1-40 63rd Legislature, Regular Session, 1973, are amended to read as
1-41 follows:
1-42 (c) An election of directors shall be held on the first
1-43 Saturday in May [April] of each year to elect the appropriate
1-44 number of directors. Notice of the election shall be published one
1-45 time in a newspaper of general circulation in the district at least
1-46 35 days before [not more than 45 nor less than 30 days prior to]
1-47 the date of an election of directors. The notice shall state the
1-48 purpose for which the election is being called and the date of the
1-49 election and voting places for the election.
1-50 (f) Except as provided by Section 4A of this Act, all [All]
1-51 directors shall be elected at-large [unless the board is presented
1-52 with a petition signed by at least 10 percent of the qualified
1-53 voters of the district asking that the directors be elected by
1-54 precincts. On receiving the petition, the board shall order a
1-55 special election to determine if a majority of the qualified voters
1-56 of the district desire that the directors be elected by precincts.
1-57 The election shall be held within 30 days after the petition is
1-58 received by the board, and notice of the purpose of the election
1-59 and the date and voting places for the election shall be given in a
1-60 newspaper with general circulation in the district not less than 15
1-61 days before the day of the election. The ballot for the election
1-62 shall be printed to provide for voting for or against the
1-63 proposition: 'The election of directors of the Fisher County
1-64 Hospital District from precincts.' If a majority of the qualified
2-1 voters of the district participating in the special election vote
2-2 for the proposition, the board shall divide the district into four
2-3 directors precincts coterminous with the four county commissioners
2-4 precincts, and at the next election for directors after the special
2-5 election, one director shall be elected at-large and one director
2-6 shall be elected from each precinct. Except for the director
2-7 elected at-large, each director must be a resident of the precinct
2-8 which he represents. Directors from odd-numbered precincts and the
2-9 director at-large shall serve initial terms of two years; the other
2-10 directors shall serve initial terms of one year. Thereafter, each
2-11 director shall serve for a term of two years and until his
2-12 successor has been duly elected and has qualified].
2-13 SECTION 3. Chapter 448, Acts of the 63rd Legislature,
2-14 Regular Session, 1973, is amended by adding Section 4A to read as
2-15 follows:
2-16 Sec. 4A. (a) On its own initiative or on receipt of a
2-17 petition that is signed by a number of residents of the district
2-18 equal to at least 10 percent of the registered voters in the
2-19 district, the board of directors by order shall seek input from the
2-20 residents of the district to determine whether to modify the method
2-21 of electing the board of directors under this Act so that the
2-22 directors are elected by one of the following election methods:
2-23 (1) four single-member districts and one at-large
2-24 member;
2-25 (2) five single-member districts;
2-26 (3) four single-member districts, with each district
2-27 coextensive with a county commissioner's precinct, and one at-large
2-28 member; or
2-29 (4) cumulative voting.
2-30 (b) Not later than the 30th day after the date on which the
2-31 board of directors enters an order under Subsection (a) of this
2-32 section, the board shall establish an advisory committee composed
2-33 of residents of the district to advise and assist the board in
2-34 making the determination required by Subsection (a) of this
2-35 section. The members of the advisory committee must represent all
2-36 segments of the population of the district.
2-37 (c) The advisory committee shall hold a public hearing
2-38 regarding the proposed change in the election format not later than
2-39 the 60th day after the date on which it is established. Not later
2-40 than the 30th day after the date on which the public hearing is
2-41 held, the advisory committee shall submit a recommendation to the
2-42 board of directors that includes comments and concerns raised by
2-43 the residents of the district regarding any proposed change in the
2-44 election format.
2-45 (d) After reviewing the recommendations of the advisory
2-46 committee under Subsection (c) of this section, the board of
2-47 directors may adopt an order changing the method by which the board
2-48 of directors is elected.
2-49 (e) A modified election format adopted by the board of
2-50 directors under this section shall be implemented at the next
2-51 general election for the directors of the district for which the
2-52 change can be implemented consistently with the Election Code and
2-53 federal law.
2-54 SECTION 4. Section 5, Chapter 448, Acts of the 63rd
2-55 Legislature, Regular Session, 1973, is amended to read as follows:
2-56 Sec. 5. (a) The board of directors shall manage, control,
2-57 and administer the hospital system and all funds and resources of
2-58 the district, but in no event shall any operating, depreciation, or
2-59 building fund reserves be invested in any funds or securities other
2-60 than those specified in Articles 836 or 837, Revised Civil Statutes
2-61 of Texas, 1925, as amended. The district, through its board of
2-62 directors, shall have the power and authority to sue and be sued,
2-63 to promulgate rules and regulations governing the operation of the
2-64 hospital, hospital system, its staff, and its employees.
2-65 (b) The board of directors shall appoint a qualified person
2-66 to be known as the administrator or manager of the hospital
2-67 district [and may in its discretion appoint an assistant to the
2-68 administrator or manager]. Such administrator or manager [and
2-69 assistant administrator or manager, if any,] shall serve at the
3-1 will of the board and shall receive such compensation as may be
3-2 fixed by the board. The administrator or manager shall, upon
3-3 assuming his duties, execute a bond payable to the hospital
3-4 district in an amount to be set by the board of directors, [in no
3-5 event less than $5,000,] conditioned that he shall perform the
3-6 duties required of him, and containing such other conditions as the
3-7 board may require. The cost of the bond is the responsibility of
3-8 the district. The administrator or manager shall supervise all the
3-9 work and activities of the district and shall have general
3-10 direction of the affairs of the district, subject to the
3-11 limitations as may be prescribed by the board.
3-12 (c) The board of directors shall have the authority to
3-13 appoint to the staff such doctors as it may deem necessary for the
3-14 efficient operation of the district, and may provide for temporary
3-15 appointments to the staff if warranted by circumstances. The board
3-16 may delegate to the administrator or manager the authority to
3-17 employ medical practitioners, technicians, nurses, and employees of
3-18 the district and to incur reasonable and necessary expenses
3-19 relating to the search, recruitment, and hiring of medical
3-20 practitioners and employees for the district, including contracting
3-21 with a private entity such as a professional recruiting service.
3-22 (d) Such board shall be authorized to contract with any
3-23 other political subdivision or governmental agency whereby the
3-24 district will provide investigatory or other services as to the
3-25 medical, hospital, or welfare needs of the inhabitants of the
3-26 district and shall be authorized to contract with any municipality,
3-27 county, special district, or other political subdivision of the
3-28 state, or a public or private hospital, private corporation,
3-29 partnership, or cooperative, [or incorporated municipality] located
3-30 inside or outside its boundaries for the care and treatment of the
3-31 sick, diseased, or injured persons of any such county, [or]
3-32 municipality, special district, or political subdivision, and shall
3-33 have the authority to contract with the State of Texas or agencies
3-34 of the federal government for the treatment of the sick, diseased,
3-35 or injured persons.
3-36 (e) This Act does not limit or prohibit the district from
3-37 providing health care services to any ill or injured person,
3-38 regardless of whether the person is a resident of the district.
3-39 For purposes of this subsection, "health care service" includes
3-40 home health care services, respiratory or physical therapy
3-41 services, mobile emergency medical services, and clinic services.
3-42 SECTION 5. Section 6, Chapter 448, Acts of the 63rd
3-43 Legislature, Regular Session, 1973, is amended to read as follows:
3-44 Sec. 6. (a) The district shall be operated on the basis of
3-45 a fiscal year as established from time to time by the board of
3-46 directors of the district, provided such fiscal year shall not be
3-47 changed more often than once in any 24-month period. The board
3-48 shall cause an independent audit to be made of the financial
3-49 condition of the district, which, together with other records of
3-50 the district, shall be open to inspection at the principal office
3-51 of the district, such audit to be made covering such fiscal year,
3-52 and the same shall be filed at the office of the district as soon
3-53 as it is completed. The administrator or manager shall prepare an
3-54 annual budget for approval by the board of directors. The proposed
3-55 budget must [shall also] contain a complete financial statement of
3-56 the district that includes:
3-57 (1) the [showing all] outstanding obligations of the
3-58 district;
3-59 (2) the amount of cash on hand to the credit of each
3-60 [and every] fund of the district;
3-61 (3) the amount of money received by the district [,
3-62 the funds received] from all sources during the previous year;
3-63 (4) [,] the amount of money [funds] available to the
3-64 district from all sources during the ensuing year;
3-65 (5) the amount of the [, with] balances expected at
3-66 the [year] end of the year in which the budget is being prepared;
3-67 (6) the [, and] estimated amount of revenues and
3-68 balances available to cover the proposed budget; and
3-69 (7) the estimated tax rate which will be required[,
4-1 and the proposed expenditures and disbursements and the estimated
4-2 receipts and collections for the following fiscal year].
4-3 (b) A public hearing on the annual budget shall be held by
4-4 the board of directors after notice of such hearing has been
4-5 published one time at least 10 days before the date set therefor.
4-6 Notice of the budget hearing shall be published in a newspaper or
4-7 newspapers which individually or collectively provide general
4-8 circulation in the hospital district. Any property taxpayer of the
4-9 district shall have the right to be present and participate in said
4-10 hearing within such rules of decorum and procedures as may be
4-11 prescribed by the board. At the conclusion of the hearing, the
4-12 budget, as proposed by the administrator, shall be acted upon by
4-13 the board of directors, and as modified or approved, such budget
4-14 shall become final.
4-15 (c) [(b)] The board of directors shall have authority to
4-16 make changes in the budget as in their judgment the law warrants
4-17 and the interest of the taxpayer demands. The annual budget may be
4-18 amended as the circumstances require but the budget and amendments
4-19 shall be approved by the board of directors. As soon as
4-20 practicable after the close of each fiscal year, the administrator
4-21 or manager shall prepare for the board a full sworn statement of
4-22 all moneys belonging to the district and a full account of the
4-23 disbursement of same.
4-24 SECTION 6. Section 7, Chapter 448, Acts of the 63rd
4-25 Legislature, Regular Session, 1973, is amended to read as follows:
4-26 Sec. 7. The board of directors shall have the power and
4-27 authority to issue and sell bonds in the name and upon the faith
4-28 and credit of such hospital district for the purchase,
4-29 construction, acquisition, repair, or renovation of buildings and
4-30 improvements and equipping the same for hospital purposes, the
4-31 acquisition and operation of a mobile emergency medical service,
4-32 and for any or all [of such] purposes designed to provide, improve,
4-33 or expand the health care services of the district. At the time of
4-34 the issuance of any bonds, except those for which provision is made
4-35 in Section 8, a tax shall be levied by the board sufficient to
4-36 create an interest and sinking fund to pay the interest on and
4-37 principal thereon as same mature, providing such tax together with
4-38 any other taxes levied for said district shall not exceed the rate
4-39 of tax voted under the provisions of Section 3 of this Act. Except
4-40 as provided in Section 8, no bonds shall be issued by or on behalf
4-41 of such hospital district until authorized by a majority of the
4-42 qualified electors of the district who own taxable property therein
4-43 and who have duly rendered the same for taxation voting at an
4-44 election called for such purpose. The order for bond election
4-45 shall specify the date of the election, the amount of bonds to be
4-46 authorized, the maximum maturity thereof, the maximum rate of
4-47 interest they are to bear, the place or places where the election
4-48 shall be held, the presiding judge and alternate judge for each
4-49 voting place, and provide for clerks as in county elections.
4-50 Notice of any bond election shall be given as provided in Article
4-51 704, Revised Civil Statutes of Texas, 1925, as amended, and shall
4-52 be conducted in accordance with the Election Code [general laws of
4-53 Texas pertaining to general elections], except as modified by the
4-54 provisions of this Act; provided, however, an election to authorize
4-55 the issuance of bonds may be held at the same time as the election
4-56 for which provision is made in Section 3, and in such event notice
4-57 of a bond election may be given in the manner provided in said
4-58 Section 3.
4-59 SECTION 7. Section 11, Chapter 448, Acts of the 63rd
4-60 Legislature, Regular Session, 1973, is amended to read as follows:
4-61 Sec. 11. The board of directors of such district shall have
4-62 the power to prescribe the method and manner of making purchases
4-63 and expenditures by and for such hospital district, and shall also
4-64 be authorized to prescribe all accounting and control procedures.
4-65 All contracts for construction involving the expenditure of more
4-66 than $10,000 [$2,000] may be made only after advertising in the
4-67 manner provided by Chapter 252, Local Government Code [Chapter 163,
4-68 Acts of the 42nd Legislature, Regular Session, 1931, as amended
4-69 (Article 2368a, Vernon's Texas Civil Statutes)]. The provisions of
5-1 Chapter 2253, Government Code [Article 5160, Revised Civil Statutes
5-2 of Texas, 1925, as amended], relating to performance and payment
5-3 bonds, shall apply to construction contracts let by the district.
5-4 The district may acquire equipment for use in its hospital system
5-5 and mortgage or pledge the property so acquired as security for the
5-6 payment of the purchase price, but any such contract shall provide
5-7 for the entire obligation of the district to be retired within five
5-8 years from the date of the contract. Except as permitted in the
5-9 preceding sentence and as permitted by Sections 7 and 8 of this
5-10 Act, the board may not incur any obligation payable from any
5-11 revenues of the district, taxes or otherwise, except from funds on
5-12 hand or to be on hand within the then current and following fiscal
5-13 year of the district.
5-14 SECTION 8. Section 12, Chapter 448, Acts of the 63rd
5-15 Legislature, Regular Session, 1973, is amended to read as follows:
5-16 Sec. 12. The board of directors of the district shall name
5-17 one or more banks within or without, either or both, its boundaries
5-18 to serve as depository for the funds of the district. All funds of
5-19 the district, except those invested as provided in Section 5 of
5-20 this Act, and those transmitted to a bank or banks of payment for
5-21 bonds or obligations issued or assumed by the district, shall be
5-22 deposited as received with the depository bank and shall remain on
5-23 deposit, provided that nothing herein shall limit the power of the
5-24 board to place a portion of such funds on time deposit or purchase
5-25 certificates of deposit. Before the district deposits the
5-26 district's funds in a bank in an amount that exceeds the maximum
5-27 amount secured by the Federal Deposit Insurance Corporation, the
5-28 bank must execute a bond or other security in an amount sufficient
5-29 to secure from loss the district funds that exceed the amount
5-30 secured by the Federal Deposit Insurance Corporation.
5-31 SECTION 9. Section 15, Chapter 448, Acts of the 63rd
5-32 Legislature, Regular Session, 1973, is amended to read as follows:
5-33 Sec. 15. The district shall have the right and power of
5-34 eminent domain for the purpose of acquiring by condemnation any and
5-35 all property of any kind and character in fee simple, or any lesser
5-36 interest therein, within the boundaries of the district necessary
5-37 to the powers, rights, and privileges conferred by this Act, in the
5-38 manner provided by Chapter 21, Property Code, but the district is
5-39 not required to deposit in the trial court money or a bond as
5-40 provided by Section 21.021(a), Property Code [the general law with
5-41 respect to condemnation by counties, provided that the district
5-42 shall not be required to make deposits in the registry of the trial
5-43 court of the sum required by Paragraph 2 of Article 3268, Revised
5-44 Civil Statutes of Texas, 1925, as amended, or to make bond as
5-45 therein provided]. In condemnation proceedings being prosecuted by
5-46 the district, the district shall not be required to pay in advance
5-47 or give bond or other security for costs in the trial court, nor to
5-48 give any bond otherwise required for the issuance of a temporary
5-49 restraining order or a temporary injunction nor to give bond for
5-50 costs or for supersedeas on any appeal or writ of error.
5-51 SECTION 10. Section 16, Chapter 448, Acts of the 63rd
5-52 Legislature, Regular Session, 1973, is amended to read as follows:
5-53 Sec. 16. (a) The directors shall have the authority to
5-54 levy taxes for the entire year in which the district is established
5-55 as the result of the election herein provided. [All taxes of the
5-56 district shall be assessed and collected on county tax values as
5-57 provided in Subsection (b) hereof unless the directors, by majority
5-58 vote, elect to have taxes assessed and collected by its own tax
5-59 assessor-collector under Subsection (c) hereof. Any such election
5-60 may be made prior to December 1 annually and shall govern the
5-61 manner in which taxes are thereafter assessed and collected, until
5-62 changed by a similar resolution.]
5-63 (b) The Tax Code governs the appraisal, assessment, and
5-64 collection of district taxes. [Under this subsection, district
5-65 taxes shall be assessed and collected on county tax values in the
5-66 same manner as provided by law with relation to county taxes. The
5-67 tax assessor-collector of the county in which said district is
5-68 situated shall be charged and required to accomplish the assessment
5-69 and collection of all taxes levied by and on behalf of the
6-1 district. The assessor-collector of taxes shall charge and deduct
6-2 from payments to the hospital district an amount as fees for
6-3 assessing and collecting the taxes at a rate of one percent of the
6-4 taxes assessed and two percent of the taxes collected, but in no
6-5 event shall the amount paid exceed $5,000 in any one calendar year.
6-6 Such fees shall be deposited in the officers' salary fund of the
6-7 county and reported as fees of office of the county tax
6-8 assessor-collector. Interest and penalties on taxes paid to the
6-9 hospital district shall be the same as in the case of county taxes.
6-10 Discounts shall be the same as allowed by the county. The residue
6-11 of tax collections after deduction of discounts and fees for
6-12 assessing and collecting shall be deposited in the district's
6-13 depository. The bond of the county tax assessor-collector shall
6-14 stand as security for the proper performance of his duties as
6-15 assessor-collector of the district; or, if in the judgment of the
6-16 district board of directors it is necessary, additional bond
6-17 payable to the district may be required. In all matters pertaining
6-18 to the assessment, collection, and enforcement of taxes for the
6-19 district, the county tax assessor-collector shall be authorized to
6-20 act in all respects according to the laws of the State of Texas
6-21 relating to state and county taxes.]
6-22 (c) The board may provide for the appointment of a tax
6-23 assessor-collector for the district or may contract for the
6-24 assessment and collection of taxes as provided by the Tax Code.
6-25 [Under this subsection, taxes shall be assessed and collected by a
6-26 tax assessor-collector appointed by the directors, who shall also
6-27 fix the terms of his employment, compensation, and requirement for
6-28 bond to assure the faithful performance of his duties, but in no
6-29 event shall such bond be for less than $5,000. The directors shall
6-30 also annually appoint five persons to serve as a board of
6-31 equalization and shall fix their compensation. Each member of the
6-32 board and the tax assessor-collector shall be residents of the
6-33 district and own real property subject to hospital district
6-34 taxation, and each shall have the same duties, including the
6-35 obligation to subscribe the oath of office, as required by county
6-36 officials exercising such powers and duties. Except as in this law
6-37 provided to the contrary, all the provisions of Title 122, Revised
6-38 Civil Statutes of Texas, 1925, as amended, shall apply to the
6-39 district.]
6-40 SECTION 11. Chapter 448, Acts of the 63rd Legislature,
6-41 Regular Session, 1973, is amended by adding Section 17A to read as
6-42 follows:
6-43 Sec. 17A. (a) If the board of directors of the district
6-44 declares that funds are not available to meet lawfully authorized
6-45 obligations of the district and that an emergency exists, the board
6-46 may borrow money at a rate not to exceed the maximum annual
6-47 percentage rate allowed by law for district obligations at the time
6-48 the loan is made.
6-49 (b) To secure a loan, the board of directors may pledge:
6-50 (1) revenues of the district that are not pledged to
6-51 pay bonded indebtedness of the district;
6-52 (2) district taxes to be imposed by the district
6-53 during the 12-month period following the date of the pledge that
6-54 are not pledged to pay the principal of or interest on district
6-55 bonds; or
6-56 (3) district bonds that have been authorized but not
6-57 sold.
6-58 SECTION 12. Chapter 448, Acts of the 63rd Legislature,
6-59 Regular Session, 1973, is amended by adding Section 23A to read as
6-60 follows:
6-61 Sec. 23A. (a) The district may be dissolved and its assets
6-62 and liabilities sold or transferred to another entity or person
6-63 only if the dissolution and sale or transfer are approved by a
6-64 majority of the qualified voters of the district voting in an
6-65 election called and held for that purpose.
6-66 (b) The board of directors may order an election on the
6-67 question of dissolving the district and disposing of the district's
6-68 assets and liabilities.
6-69 (c) The board of directors shall order an election on the
7-1 question of dissolving the district and disposing of the district's
7-2 assets and liabilities if the board receives a petition requesting
7-3 an election on the issue that is signed by at least 300 of the
7-4 registered voters of the district, according to the most recent
7-5 official list of registered voters. The election shall be called
7-6 not later than the 60th day after the date the petition is
7-7 presented to the district.
7-8 (d) The order calling the election must state:
7-9 (1) the nature of the election, including the
7-10 proposition that is to appear on the ballot;
7-11 (2) the date of the election;
7-12 (3) the hours during which the polls will be open; and
7-13 (4) the location of the polling places.
7-14 (e) The board of directors shall give notice of the election
7-15 by publishing a substantial copy of the election order in a
7-16 newspaper with general circulation in the district once a week for
7-17 two consecutive weeks. The first publication must appear at least
7-18 35 days before the date set for the election.
7-19 (f) The election shall be held not less than 45 days nor
7-20 more than 60 days after the date on which the election is ordered.
7-21 Section 41.001(a), Election Code, does not apply to an election
7-22 ordered under this Act.
7-23 (g) The ballot for the election shall be printed to permit
7-24 voting for or against the proposition: "The dissolution of the
7-25 Fisher County Hospital District and the ________ (transfer or sale,
7-26 as appropriate) of its assets and liabilities in the following
7-27 manner: _________________."
7-28 (h) The board of directors shall canvass the returns of the
7-29 election. If the board finds that the election results are
7-30 favorable to the proposition to dissolve the district and transfer
7-31 or sell its assets and liabilities, the board shall issue an order
7-32 declaring the district dissolved and shall proceed with the sale or
7-33 transfer of its assets and liabilities according to the plan
7-34 proposed on the ballot. If the board finds that the election
7-35 results are not favorable to the proposition to dissolve the
7-36 district, the board shall continue to administer the district and
7-37 another dissolution election may not be held before the first
7-38 anniversary of the date of the most recent election at which voters
7-39 disapproved the proposition.
7-40 (i) Notwithstanding any other provision of this Act, the
7-41 district may not be dissolved unless the board provides for the
7-42 sale or transfer of the district's assets and liabilities to
7-43 another entity or person.
7-44 (j) The dissolution of the district and the sale or transfer
7-45 of the district's assets and liabilities may not:
7-46 (1) contravene a trust indenture or bond resolution
7-47 relating to the outstanding bonds of the district; or
7-48 (2) diminish or impair the rights of a holder of any
7-49 outstanding bond, warrant, or other obligation of the district.
7-50 (k) The sale or transfer of the district's assets and
7-51 liabilities must satisfy the debt and bond obligations of the
7-52 district in a manner that protects the interests of the residents
7-53 of the district, including the residents' collective property
7-54 rights in the district's assets. A grant from federal funds is an
7-55 obligation that must be repaid in full. The district may transfer
7-56 or sell the district's assets only for due compensation, unless the
7-57 transfer or sale is made to another governmental agency serving the
7-58 district and using the transferred or purchased assets for the
7-59 benefit of the residents formerly in the district.
7-60 SECTION 13. This Act takes effect September 1, 1997.
7-61 SECTION 14. The importance of this legislation and the
7-62 crowded condition of the calendars in both houses create an
7-63 emergency and an imperative public necessity that the
7-64 constitutional rule requiring bills to be read on three several
7-65 days in each house be suspended, and this rule is hereby suspended.
7-66 * * * * *