1-1     By:  Hupp (Senate Sponsor - Fraser)                   H.B. No. 2542
 1-2           (In the Senate - Received from the House April 19, 1999;
 1-3     April 20, 1999, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 7, 1999, reported favorably, as
 1-5     amended, by the following vote:  Yeas 5, Nays 0; May 7, 1999, sent
 1-6     to printer.)
 1-7     COMMITTEE AMENDMENT NO. 1                              By:  Lindsay
 1-8           SECTION 1.  Amend H.B. 2542, Section 1, on page 1, line 24,
 1-9     by inserting the following:
1-10           (e)  The candidates elected from odd-numbered precincts at
1-11     the election to be held in 2000 shall serve for a term of two
1-12     years, and their successor directors shall serve for three-year
1-13     terms.
1-14                            A BILL TO BE ENTITLED
1-15                                   AN ACT
1-16     relating to the McCulloch County Hospital District.
1-17           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-18           SECTION 1.  Section 4.03(d), Chapter 51, Acts of the 71st
1-19     Legislature, Regular Session, 1989, is amended to read as follows:
1-20           (d)  After the initial election of directors, an election
1-21     shall be held on the first Saturday in May each year and the
1-22     appropriate number of successor directors shall be elected for
1-23     three-year [two-year] terms.
1-24           SECTION 2.  Section 4.04, Chapter 51, Acts of the 71st
1-25     Legislature, Regular Session, 1989, is amended to read as follows:
1-26           Sec. 4.04.  NOTICE OF ELECTION.  Not earlier than 30 days or
1-27     later than 10 [At least 35] days before the date of an election of
1-28     directors, notice of the election shall be published one time in a
1-29     newspaper with general circulation in the district.
1-30           SECTION 3.  Section 4.06, Chapter 51, Acts of the 71st
1-31     Legislature, Regular Session, 1989, is amended by adding Subsection
1-32     (d) to read as follows:
1-33           (d)  A person formerly employed by the district may not serve
1-34     as a director before the second anniversary of the date of the
1-35     termination of that person's employment by the district.
1-36           SECTION 4.  Section 4.15, Chapter 51, Acts of the 71st
1-37     Legislature, Regular Session, 1989, is amended by adding Subsection
1-38     (c) to read as follows:
1-39           (c)  The district may not employ a person who is related to a
1-40     director within the second degree by consanguinity or affinity, as
1-41     defined by Subchapter B, Chapter 573, Government Code, during that
1-42     director's term of office.  A district employee who is related to a
1-43     person elected as a director within the second degree by
1-44     consanguinity or affinity shall resign from employment when that
1-45     director takes office.
1-46           SECTION 5.  Section 5.07(a), Chapter 51, Acts of the 71st
1-47     Legislature, Regular Session, 1989, is amended to read as follows:
1-48           (a)  The board may enter into construction contracts on
1-49     behalf of the district; however, the board may enter into
1-50     construction contracts that involve spending more than $15,000
1-51     [$10,000] only after competitive bidding as provided by Subchapter
1-52     B, Chapter 271, Local Government Code.
1-53           SECTION 6.  Section 5.11(c), Chapter 51, Acts of the 71st
1-54     Legislature, Regular Session, 1989, is amended to read as follows:
1-55           (c)  The application procedure to determine eligibility for
1-56     indigent health care must be adopted not later than the beginning
1-57     of each operating year and must comply with Chapter 61, Health and
1-58     Safety Code [Section 10.03, Indigent Health Care and Treatment Act
1-59     (Article 4438f, Vernon's Texas Civil Statutes)].
1-60           SECTION 7.  Section 5.12(a), Chapter 51, Acts of the 71st
1-61     Legislature, Regular Session, 1989, is amended to read as follows:
1-62           (a)  The board shall require reimbursement from a county,
1-63     city, or public hospital located outside the boundaries of the
 2-1     district for the district's care and treatment of a sick, diseased,
 2-2     or injured person of that county, city, or public hospital as
 2-3     provided by Chapter 61, Health and Safety Code [the Indigent Health
 2-4     Care and Treatment Act (Article 4438f, Vernon's Texas Civil
 2-5     Statutes)].
 2-6           SECTION 8.  Section 7.04(c), Chapter 51, Acts of the 71st
 2-7     Legislature, Regular Session, 1989, is amended to read as follows:
 2-8           (c)  The bonds must be issued in the manner provided by
 2-9     Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
2-10     Health and Safety Code [8, 10, 11, 12, and 13, County Hospital
2-11     Authority Act (Article 4494r, Vernon's Texas Civil Statutes)], for
2-12     issuance of revenue bonds by county hospital authorities.
2-13           SECTION 9.  Chapter 51, Acts of the 71st Legislature, Regular
2-14     Session, 1989, is amended by adding Article 10 to read as follows:
2-15                          ARTICLE 10.  DISSOLUTION
2-16           Sec. 10.01.  DISSOLUTION.  (a)  The district may be dissolved
2-17     only if the dissolution is approved by a majority of the qualified
2-18     voters of the district voting in an election called and held for
2-19     that purpose.
2-20           (b)  The board may order an election on the question of
2-21     dissolving the district and disposing of the district's assets and
2-22     obligations.  The board shall order an election if the board
2-23     receives a petition requesting an election that is signed by a
2-24     number of residents of the district equal to at least 15 percent of
2-25     the registered voters in the district.
2-26           (c)  The election shall be held not later than the 60th day
2-27     after the date the election is ordered.  Section 41.001(a),
2-28     Election Code, does not apply to an election ordered under this
2-29     section.  The order calling the election shall state:
2-30                 (1)  the nature of the election, including the
2-31     proposition that is to appear on the ballot;
2-32                 (2)  the date of the election;
2-33                 (3)  the hours during which the polls will be open; and
2-34                 (4)  the location of the polling places.
2-35           (d)  The board shall give notice of the election by
2-36     publishing the election order in a newspaper with general
2-37     circulation in the district once a week for two consecutive weeks.
2-38     The first publication must appear not less than 35 days before the
2-39     date set for the election.  The ballot for the election shall be
2-40     printed to permit voting for or against the proposition: "The
2-41     dissolution of the McCulloch County Hospital District."
2-42           (e)  If a majority of the votes in the election favor
2-43     dissolution, the board shall find that the district is dissolved.
2-44     If a majority of the votes in the election do not favor
2-45     dissolution, the board shall continue to administer the district,
2-46     and another election on the question of dissolution may not be held
2-47     before the first anniversary of the most recent election to
2-48     dissolve the district.
2-49           (f)  If a majority of the votes in the election favor
2-50     dissolution, the board shall:
2-51                 (1)  transfer the land, buildings, improvements,
2-52     equipment, and other assets that belong to the district to a county
2-53     or other governmental entity in the county in which the district is
2-54     located; or
2-55                 (2)  administer the property, assets, and debts until
2-56     all funds have been disposed of and all district debts have been
2-57     paid or settled.
2-58           (g)  If the district transfers the land, buildings,
2-59     improvements, equipment, and other assets to a county or other
2-60     governmental entity, the county or entity assumes all debts and
2-61     obligations of the district at the time of the transfer, and the
2-62     district is dissolved.
2-63           (h)  After the board finds that the district is dissolved,
2-64     the board shall:
2-65                 (1)  determine the debt owed by the district; and
2-66                 (2)  impose on the property included in the district's
2-67     tax rolls a tax that is in proportion of the debt to the property
2-68     value.
2-69           (i)  When all outstanding debts and obligations of the
 3-1     district are paid, the board shall order the secretary to return
 3-2     the pro rata share of all unused tax money to each district
 3-3     taxpayer.
 3-4           (j)  A taxpayer may request that the taxpayer's share of
 3-5     surplus tax money be credited to the taxpayer's county taxes.  If a
 3-6     taxpayer requests the credit, the board shall direct the secretary
 3-7     to transmit the funds to the county tax assessor-collector.
 3-8           (k)  After the district has paid all its debts and has
 3-9     disposed of all its assets and funds as prescribed by this section,
3-10     the board shall file a written report with the Commissioners Court
3-11     of McCulloch County setting forth a summary of the board's actions
3-12     in dissolving the district.
3-13           (l)  Not later than the 10th day after the date it receives
3-14     the report and determines that the requirements of this section
3-15     have been fulfilled, the Commissioners Court of McCulloch County
3-16     shall enter an order dissolving the district and releasing the
3-17     board of directors of the district from any further duty or
3-18     obligation.
3-19           (m)  The district may not be dissolved unless the board
3-20     provides for the sale or transfer of the district's assets and
3-21     liabilities to another person or entity.  The dissolution of the
3-22     district and the sale or transfer of the district's assets or
3-23     liabilities may not contravene a trust indenture or bond resolution
3-24     relating to the outstanding bonds of the district.  The dissolution
3-25     and sale or transfer does not diminish or impair the rights of a
3-26     holder of an outstanding bond, warrant, or other obligation of the
3-27     district.
3-28           (n)  The sale or transfer of the district's assets and
3-29     liabilities must satisfy the debt and bond obligation of the
3-30     district in a manner that protects the interests of the residents
3-31     of the district, including the residents' collective property
3-32     rights in the district's assets.  A grant from federal funds is an
3-33     obligation to be repaid in satisfaction.  The district may not
3-34     transfer or dispose of the district's assets except for due
3-35     compensation unless the transfer is made to another governmental
3-36     entity that serves the district and the transferred assets are to
3-37     be used for the benefit of the residents of the district.
3-38           SECTION 10.  (a)  The changes in law made by this Act to
3-39     Sections 4.03(d) and 4.06, Chapter 51, Acts of the 71st
3-40     Legislature, Regular Session, 1989, do not apply to a member of the
3-41     board of directors of McCulloch County Hospital District serving on
3-42     the board immediately before September 1, 1999.  The changes in law
3-43     made by this Act apply only to a member appointed or elected on or
3-44     after September 1, 1999.  This Act does not prohibit a person who
3-45     is a member of the board on September 1, 1999, from being
3-46     reappointed or reelected to the board if the person has the
3-47     qualifications required for membership under Chapter 51, Acts of
3-48     the 71st Legislature, Regular Session, 1989, as amended by this
3-49     Act.
3-50           (b)  The changes in law made by this Act to Section 4.15,
3-51     Chapter 51, Acts of the 71st Legislature, Regular Session, 1989,
3-52     apply to all employees regardless of the date on which employment
3-53     began.  A district employee who is related to a current director
3-54     within the second degree by consanguinity or affinity, as defined
3-55     by Subchapter B, Chapter 573, Government Code, shall resign from
3-56     employment.
3-57           (c)  The changes in law made by this Act to Section 5.07(a),
3-58     Chapter 51, Acts of the 71st Legislature, Regular Session, 1989,
3-59     apply only to a request for competitive bids made by the board of
3-60     directors of the McCulloch County Hospital District on or after the
3-61     effective date of this Act.  A request for competitive bids by a
3-62     board made before the effective date of this Act is covered by the
3-63     law in effect when the board submitted the request for competitive
3-64     bids, and the former law is continued in effect for that purpose.
3-65           SECTION 11.  This Act takes effect September 1, 1999.
3-66           SECTION 12.  The importance of this legislation and the
3-67     crowded condition of the calendars in both houses create an
3-68     emergency and an imperative public necessity that the
3-69     constitutional rule requiring bills to be read on three several
 4-1     days in each house be suspended, and this rule is hereby suspended.
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