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.
4-2 * * * * *