1-1                                   AN ACT
 1-2     relating to the McCulloch County Hospital District.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 4.03, Chapter 51, Acts of the 71st
 1-5     Legislature, Regular Session, 1989, is amended by amending
 1-6     Subsection (d) and adding Subsection (e) to read as follows:
 1-7           (d)  After the initial election of directors, an election
 1-8     shall be held on the first Saturday in May each year and the
 1-9     appropriate number of successor directors shall be elected for
1-10     three-year [two-year] terms.
1-11           (e)  The candidates elected from odd-numbered precincts at
1-12     the election to be held in 2000 shall serve for a term of two
1-13     years, and their successor directors shall serve for three-year
1-14     terms.
1-15           SECTION 2.  Section 4.04, Chapter 51, Acts of the 71st
1-16     Legislature, Regular Session, 1989, is amended to read as follows:
1-17           Sec. 4.04.  NOTICE OF ELECTION.  Not earlier than 30 days or
1-18     later than 10 [At least 35] days before the date of an election of
1-19     directors, notice of the election shall be published one time in a
1-20     newspaper with general circulation in the district.
1-21           SECTION 3.  Section 4.06, Chapter 51, Acts of the 71st
1-22     Legislature, Regular Session, 1989, is amended by adding Subsection
1-23     (d) to read as follows:
1-24           (d)  A person formerly employed by the district may not serve
 2-1     as a director before the second anniversary of the date of the
 2-2     termination of that person's employment by the district.
 2-3           SECTION 4.  Section 4.15, Chapter 51, Acts of the 71st
 2-4     Legislature, Regular Session, 1989, is amended by adding Subsection
 2-5     (c) to read as follows:
 2-6           (c)  The district may not employ a person who is related to a
 2-7     director within the second degree by consanguinity or affinity, as
 2-8     defined by Subchapter B, Chapter 573, Government Code, during that
 2-9     director's term of office.  A district employee who is related to a
2-10     person elected as a director within the second degree by
2-11     consanguinity or affinity shall resign from employment when that
2-12     director takes office.
2-13           SECTION 5.  Section 5.07(a), Chapter 51, Acts of the 71st
2-14     Legislature, Regular Session, 1989, is amended to read as follows:
2-15           (a)  The board may enter into construction contracts on
2-16     behalf of the district; however, the board may enter into
2-17     construction contracts that involve spending more than $15,000
2-18     [$10,000] only after competitive bidding as provided by Subchapter
2-19     B, Chapter 271, Local Government Code.
2-20           SECTION 6.  Section 5.11(c), Chapter 51, Acts of the 71st
2-21     Legislature, Regular Session, 1989, is amended to read as follows:
2-22           (c)  The application procedure to determine eligibility for
2-23     indigent health care must be adopted not later than the beginning
2-24     of each operating year and must comply with Chapter 61, Health and
2-25     Safety Code [Section 10.03, Indigent Health Care and Treatment Act
2-26     (Article 4438f, Vernon's Texas Civil Statutes)].
2-27           SECTION 7.  Section 5.12(a), Chapter 51, Acts of the 71st
 3-1     Legislature, Regular Session, 1989, is amended to read as follows:
 3-2           (a)  The board shall require reimbursement from a county,
 3-3     city, or public hospital located outside the boundaries of the
 3-4     district for the district's care and treatment of a sick, diseased,
 3-5     or injured person of that county, city, or public hospital as
 3-6     provided by Chapter 61, Health and Safety Code [the Indigent Health
 3-7     Care and Treatment Act (Article 4438f, Vernon's Texas Civil
 3-8     Statutes)].
 3-9           SECTION 8.  Section 7.04(c), Chapter 51, Acts of the 71st
3-10     Legislature, Regular Session, 1989, is amended to read as follows:
3-11           (c)  The bonds must be issued in the manner provided by
3-12     Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
3-13     Health and Safety Code [8, 10, 11, 12, and 13, County Hospital
3-14     Authority Act (Article 4494r, Vernon's Texas Civil Statutes)], for
3-15     issuance of revenue bonds by county hospital authorities.
3-16           SECTION 9.  Chapter 51, Acts of the 71st Legislature, Regular
3-17     Session, 1989, is amended by adding Article 10 to read as follows:
3-18                          ARTICLE 10.  DISSOLUTION
3-19           Sec. 10.01.  DISSOLUTION.  (a)  The district may be dissolved
3-20     only if the dissolution is approved by a majority of the qualified
3-21     voters of the district voting in an election called and held for
3-22     that purpose.
3-23           (b)  The board may order an election on the question of
3-24     dissolving the district and disposing of the district's assets and
3-25     obligations.  The board shall order an election if the board
3-26     receives a petition requesting an election that is signed by a
3-27     number of residents of the district equal to at least 15 percent of
 4-1     the registered voters in the district.
 4-2           (c)  The election shall be held not later than the 60th day
 4-3     after the date the election is ordered.  Section 41.001(a),
 4-4     Election Code, does not apply to an election ordered under this
 4-5     section.  The order calling the election shall state:
 4-6                 (1)  the nature of the election, including the
 4-7     proposition that is to appear on the ballot;
 4-8                 (2)  the date of the election;
 4-9                 (3)  the hours during which the polls will be open; and
4-10                 (4)  the location of the polling places.
4-11           (d)  The board shall give notice of the election by
4-12     publishing the election order in a newspaper with general
4-13     circulation in the district once a week for two consecutive weeks.
4-14     The first publication must appear not less than 35 days before the
4-15     date set for the election.  The ballot for the election shall be
4-16     printed to permit voting for or against the proposition: "The
4-17     dissolution of the McCulloch County Hospital District."
4-18           (e)  If a majority of the votes in the election favor
4-19     dissolution, the board shall find that the district is dissolved.
4-20     If a majority of the votes in the election do not favor
4-21     dissolution, the board shall continue to administer the district,
4-22     and another election on the question of dissolution may not be held
4-23     before the first anniversary of the most recent election to
4-24     dissolve the district.
4-25           (f)  If a majority of the votes in the election favor
4-26     dissolution, the board shall:
4-27                 (1)  transfer the land, buildings, improvements,
 5-1     equipment, and other assets that belong to the district to a county
 5-2     or other governmental entity in the county in which the district is
 5-3     located; or
 5-4                 (2)  administer the property, assets, and debts until
 5-5     all funds have been disposed of and all district debts have been
 5-6     paid or settled.
 5-7           (g)  If the district transfers the land, buildings,
 5-8     improvements, equipment, and other assets to a county or other
 5-9     governmental entity, the county or entity assumes all debts and
5-10     obligations of the district at the time of the transfer, and the
5-11     district is dissolved.
5-12           (h)  After the board finds that the district is dissolved,
5-13     the board shall:
5-14                 (1)  determine the debt owed by the district; and
5-15                 (2)  impose on the property included in the district's
5-16     tax rolls a tax that is in proportion of the debt to the property
5-17     value.
5-18           (i)  When all outstanding debts and obligations of the
5-19     district are paid, the board shall order the secretary to return
5-20     the pro rata share of all unused tax money to each district
5-21     taxpayer.
5-22           (j)  A taxpayer may request that the taxpayer's share of
5-23     surplus tax money be credited to the taxpayer's county taxes.  If a
5-24     taxpayer requests the credit, the board shall direct the secretary
5-25     to transmit the funds to the county tax assessor-collector.
5-26           (k)  After the district has paid all its debts and has
5-27     disposed of all its assets and funds as prescribed by this section,
 6-1     the board shall file a written report with the Commissioners Court
 6-2     of McCulloch County setting forth a summary of the board's actions
 6-3     in dissolving the district.
 6-4           (l)  Not later than the 10th day after the date it receives
 6-5     the report and determines that the requirements of this section
 6-6     have been fulfilled, the Commissioners Court of McCulloch County
 6-7     shall enter an order dissolving the district and releasing the
 6-8     board of directors of the district from any further duty or
 6-9     obligation.
6-10           (m)  The district may not be dissolved unless the board
6-11     provides for the sale or transfer of the district's assets and
6-12     liabilities to another person or entity.  The dissolution of the
6-13     district and the sale or transfer of the district's assets or
6-14     liabilities may not contravene a trust indenture or bond resolution
6-15     relating to the outstanding bonds of the district.  The dissolution
6-16     and sale or transfer does not diminish or impair the rights of a
6-17     holder of an outstanding bond, warrant, or other obligation of the
6-18     district.
6-19           (n)  The sale or transfer of the district's assets and
6-20     liabilities must satisfy the debt and bond obligation of the
6-21     district in a manner that protects the interests of the residents
6-22     of the district, including the residents' collective property
6-23     rights in the district's assets.  A grant from federal funds is an
6-24     obligation to be repaid in satisfaction.  The district may not
6-25     transfer or dispose of the district's assets except for due
6-26     compensation unless the transfer is made to another governmental
6-27     entity that serves the district and the transferred assets are to
 7-1     be used for the benefit of the residents of the district.
 7-2           SECTION 10.  (a)  The changes in law made by this Act to
 7-3     Sections 4.03(d) and 4.06, Chapter 51, Acts of the 71st
 7-4     Legislature, Regular Session, 1989, do not apply to a member of the
 7-5     board of directors of McCulloch County Hospital District serving on
 7-6     the board immediately before September 1, 1999.  The changes in law
 7-7     made by this Act apply only to a member appointed or elected on or
 7-8     after September 1, 1999.  This Act does not prohibit a person who
 7-9     is a member of the board on September 1, 1999, from being
7-10     reappointed or reelected to the board if the person has the
7-11     qualifications required for membership under Chapter 51, Acts of
7-12     the 71st Legislature, Regular Session, 1989, as amended by this
7-13     Act.
7-14           (b)  The changes in law made by this Act to Section 4.15,
7-15     Chapter 51, Acts of the 71st Legislature, Regular Session, 1989,
7-16     apply to all employees regardless of the date on which employment
7-17     began.  A district employee who is related to a current director
7-18     within the second degree by consanguinity or affinity, as defined
7-19     by Subchapter B, Chapter 573, Government Code, shall resign from
7-20     employment.
7-21           (c)  The changes in law made by this Act to Section 5.07(a),
7-22     Chapter 51, Acts of the 71st Legislature, Regular Session, 1989,
7-23     apply only to a request for competitive bids made by the board of
7-24     directors of the McCulloch County Hospital District on or after the
7-25     effective date of this Act.  A request for competitive bids by a
7-26     board made before the effective date of this Act is covered by the
7-27     law in effect when the board submitted the request for competitive
 8-1     bids, and the former law is continued in effect for that purpose.
 8-2           SECTION 11.  This Act takes effect September 1, 1999.
 8-3           SECTION 12.  The importance of this legislation and the
 8-4     crowded condition of the calendars in both houses create an
 8-5     emergency and an imperative public necessity that the
 8-6     constitutional rule requiring bills to be read on three several
 8-7     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2542 was passed by the House on April
         16, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2542 on May 19, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2542 was passed by the Senate, with
         amendments, on May 17, 1999, by the following vote:  Yeas 30, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor