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