By Hupp H.B. No. 2542
76R6777 MXM-F
A BILL TO BE ENTITLED
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(d), Chapter 51, Acts of the 71st
1-5 Legislature, Regular Session, 1989, is amended to read as follows:
1-6 (d) After the initial election of directors, an election
1-7 shall be held on the first Saturday in May each year and the
1-8 appropriate number of successor directors shall be elected for
1-9 three-year [two-year] terms.
1-10 SECTION 2. Section 4.04, Chapter 51, Acts of the 71st
1-11 Legislature, Regular Session, 1989, is amended to read as follows:
1-12 Sec. 4.04. NOTICE OF ELECTION. Not earlier than 30 days or
1-13 later than 10 [At least 35] days before the date of an election of
1-14 directors, notice of the election shall be published one time in a
1-15 newspaper with general circulation in the district.
1-16 SECTION 3. Section 4.06, Chapter 51, Acts of the 71st
1-17 Legislature, Regular Session, 1989, is amended by adding Subsection
1-18 (d) to read as follows:
1-19 (d) A person formerly employed by the district may not serve
1-20 as a director before the second anniversary of the date of the
1-21 termination of that person's employment by the district.
1-22 SECTION 4. Section 4.15, Chapter 51, Acts of the 71st
1-23 Legislature, Regular Session, 1989, is amended by adding Subsection
1-24 (c) to read as follows:
2-1 (c) The district may not employ a person who is related to a
2-2 director within the second degree by consanguinity or affinity, as
2-3 defined by Subchapter B, Chapter 573, Government Code, during that
2-4 director's term of office. A district employee who is related to a
2-5 person elected as a director within the second degree by
2-6 consanguinity or affinity shall resign from employment when that
2-7 director takes office.
2-8 SECTION 5. Section 5.07(a), Chapter 51, Acts of the 71st
2-9 Legislature, Regular Session, 1989, is amended to read as follows:
2-10 (a) The board may enter into construction contracts on
2-11 behalf of the district; however, the board may enter into
2-12 construction contracts that involve spending more than $15,000
2-13 [$10,000] only after competitive bidding as provided by Subchapter
2-14 B, Chapter 271, Local Government Code.
2-15 SECTION 6. Section 5.11(c), Chapter 51, Acts of the 71st
2-16 Legislature, Regular Session, 1989, is amended to read as follows:
2-17 (c) The application procedure to determine eligibility for
2-18 indigent health care must be adopted not later than the beginning
2-19 of each operating year and must comply with Chapter 61, Health and
2-20 Safety Code [Section 10.03, Indigent Health Care and Treatment Act
2-21 (Article 4438f, Vernon's Texas Civil Statutes)].
2-22 SECTION 7. Section 5.12(a), Chapter 51, Acts of the 71st
2-23 Legislature, Regular Session, 1989, is amended to read as follows:
2-24 (a) The board shall require reimbursement from a county,
2-25 city, or public hospital located outside the boundaries of the
2-26 district for the district's care and treatment of a sick, diseased,
2-27 or injured person of that county, city, or public hospital as
3-1 provided by Chapter 61, Health and Safety Code [the Indigent Health
3-2 Care and Treatment Act (Article 4438f, Vernon's Texas Civil
3-3 Statutes)].
3-4 SECTION 8. Section 7.04(c), Chapter 51, Acts of the 71st
3-5 Legislature, Regular Session, 1989, is amended to read as follows:
3-6 (c) The bonds must be issued in the manner provided by
3-7 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
3-8 Health and Safety Code [8, 10, 11, 12, and 13, County Hospital
3-9 Authority Act (Article 4494r, Vernon's Texas Civil Statutes)], for
3-10 issuance of revenue bonds by county hospital authorities.
3-11 SECTION 9. Chapter 51, Acts of the 71st Legislature, Regular
3-12 Session, 1989, is amended by adding Article 10 to read as follows:
3-13 ARTICLE 10. DISSOLUTION
3-14 Sec. 10.01. DISSOLUTION. (a) The district may be dissolved
3-15 only if the dissolution is approved by a majority of the qualified
3-16 voters of the district voting in an election called and held for
3-17 that purpose.
3-18 (b) The board may order an election on the question of
3-19 dissolving the district and disposing of the district's assets and
3-20 obligations. The board shall order an election if the board
3-21 receives a petition requesting an election that is signed by a
3-22 number of residents of the district equal to at least 15 percent of
3-23 the registered voters in the district.
3-24 (c) The election shall be held not later than the 60th day
3-25 after the date the election is ordered. Section 41.001(a),
3-26 Election Code, does not apply to an election ordered under this
3-27 section. The order calling the election shall state:
4-1 (1) the nature of the election, including the
4-2 proposition that is to appear on the ballot;
4-3 (2) the date of the election;
4-4 (3) the hours during which the polls will be open; and
4-5 (4) the location of the polling places.
4-6 (d) The board shall give notice of the election by
4-7 publishing the election order in a newspaper with general
4-8 circulation in the district once a week for two consecutive weeks.
4-9 The first publication must appear not less than 35 days before the
4-10 date set for the election. The ballot for the election shall be
4-11 printed to permit voting for or against the proposition: "The
4-12 dissolution of the McCulloch County Hospital District."
4-13 (e) If a majority of the votes in the election favor
4-14 dissolution, the board shall find that the district is dissolved.
4-15 If a majority of the votes in the election do not favor
4-16 dissolution, the board shall continue to administer the district,
4-17 and another election on the question of dissolution may not be held
4-18 before the first anniversary of the most recent election to
4-19 dissolve the district.
4-20 (f) If a majority of the votes in the election favor
4-21 dissolution, the board shall:
4-22 (1) transfer the land, buildings, improvements,
4-23 equipment, and other assets that belong to the district to a county
4-24 or other governmental entity in the county in which the district is
4-25 located; or
4-26 (2) administer the property, assets, and debts until
4-27 all funds have been disposed of and all district debts have been
5-1 paid or settled.
5-2 (g) If the district transfers the land, buildings,
5-3 improvements, equipment, and other assets to a county or other
5-4 governmental entity, the county or entity assumes all debts and
5-5 obligations of the district at the time of the transfer, and the
5-6 district is dissolved.
5-7 (h) After the board finds that the district is dissolved,
5-8 the board shall:
5-9 (1) determine the debt owed by the district; and
5-10 (2) impose on the property included in the district's
5-11 tax rolls a tax that is in proportion of the debt to the property
5-12 value.
5-13 (i) When all outstanding debts and obligations of the
5-14 district are paid, the board shall order the secretary to return
5-15 the pro rata share of all unused tax money to each district
5-16 taxpayer.
5-17 (j) A taxpayer may request that the taxpayer's share of
5-18 surplus tax money be credited to the taxpayer's county taxes. If a
5-19 taxpayer requests the credit, the board shall direct the secretary
5-20 to transmit the funds to the county tax assessor-collector.
5-21 (k) After the district has paid all its debts and has
5-22 disposed of all its assets and funds as prescribed by this section,
5-23 the board shall file a written report with the Commissioners Court
5-24 of McCulloch County setting forth a summary of the board's actions
5-25 in dissolving the district.
5-26 (l) Not later than the 10th day after the date it receives
5-27 the report and determines that the requirements of this section
6-1 have been fulfilled, the Commissioners Court of McCulloch County
6-2 shall enter an order dissolving the district and releasing the
6-3 board of directors of the district from any further duty or
6-4 obligation.
6-5 (m) The district may not be dissolved unless the board
6-6 provides for the sale or transfer of the district's assets and
6-7 liabilities to another person or entity. The dissolution of the
6-8 district and the sale or transfer of the district's assets or
6-9 liabilities may not contravene a trust indenture or bond resolution
6-10 relating to the outstanding bonds of the district. The dissolution
6-11 and sale or transfer does not diminish or impair the rights of a
6-12 holder of an outstanding bond, warrant, or other obligation of the
6-13 district.
6-14 (n) The sale or transfer of the district's assets and
6-15 liabilities must satisfy the debt and bond obligation of the
6-16 district in a manner that protects the interests of the residents
6-17 of the district, including the residents' collective property
6-18 rights in the district's assets. A grant from federal funds is an
6-19 obligation to be repaid in satisfaction. The district may not
6-20 transfer or dispose of the district's assets except for due
6-21 compensation unless the transfer is made to another governmental
6-22 entity that serves the district and the transferred assets are to
6-23 be used for the benefit of the residents of the district.
6-24 SECTION 10. (a) The changes in law made by this Act to
6-25 Sections 4.03(d) and 4.06, Chapter 51, Acts of the 71st
6-26 Legislature, Regular Session, 1989, do not apply to a member of the
6-27 board of directors of McCulloch County Hospital District serving on
7-1 the board immediately before September 1, 1999. The changes in law
7-2 made by this Act apply only to a member appointed or elected on or
7-3 after September 1, 1999. This Act does not prohibit a person who
7-4 is a member of the board on September 1, 1999, from being
7-5 reappointed or reelected to the board if the person has the
7-6 qualifications required for membership under Chapter 51, Acts of
7-7 the 71st Legislature, Regular Session, 1989, as amended by this
7-8 Act.
7-9 (b) The changes in law made by this Act to Section 4.15,
7-10 Chapter 51, Acts of the 71st Legislature, Regular Session, 1989,
7-11 apply to all employees regardless of the date on which employment
7-12 began. A district employee who is related to a current director
7-13 within the second degree by consanguinity or affinity, as defined
7-14 by Subchapter B, Chapter 573, Government Code, shall resign from
7-15 employment.
7-16 (c) The changes in law made by this Act to Section 5.07(a),
7-17 Chapter 51, Acts of the 71st Legislature, Regular Session, 1989,
7-18 apply only to a request for competitive bids made by the board of
7-19 directors of the McCulloch County Hospital District on or after the
7-20 effective date of this Act. A request for competitive bids by a
7-21 board made before the effective date of this Act is covered by the
7-22 law in effect when the board submitted the request for competitive
7-23 bids, and the former law is continued in effect for that purpose.
7-24 SECTION 11. This Act takes effect September 1, 1999.
7-25 SECTION 12. The importance of this legislation and the
7-26 crowded condition of the calendars in both houses create an
7-27 emergency and an imperative public necessity that the
8-1 constitutional rule requiring bills to be read on three several
8-2 days in each house be suspended, and this rule is hereby suspended.