1-1 AN ACT
1-2 relating to the Eastland Memorial Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 4.04, Chapter 221, Acts of the 71st
1-5 Legislature, Regular Session, 1989, is amended to read as follows:
1-6 Sec. 4.04. NOTICE OF ELECTION. Notice [At least 35 days
1-7 before the date of an election of directors, notice] of an [the]
1-8 election of directors shall be published one time in a newspaper
1-9 with general circulation in the district. The notice may not be
1-10 published earlier than the 30th day or later than the 10th day
1-11 before the date of the election.
1-12 SECTION 2. Section 4.05, Chapter 221, Acts of the 71st
1-13 Legislature, Regular Session, 1989, is amended to read as follows:
1-14 Sec. 4.05. PETITION. (a) A person who wishes to have his
1-15 name printed on the ballot as a candidate for director must file an
1-16 application with the secretary of the board of directors [a
1-17 petition signed by at least 200 registered voters of the district
1-18 asking that his name be placed on the ballot. The determination of
1-19 whether a person is a registered voter of the district shall be
1-20 based on the most recent official lists of registered voters].
1-21 (b) The application [petition] must be filed with the
1-22 secretary not later than the 31st day before the date of the
1-23 election.
1-24 SECTION 3. Section 4.12(d), Chapter 221, Acts of the 71st
2-1 Legislature, Regular Session, 1989, is amended to read as follows:
2-2 (d) The board may require that the administrator, before
2-3 [Before] assuming the administrator's [his] duties, [the
2-4 administrator shall] execute a bond payable to the hospital
2-5 district in the amount of not less than $5,000 as determined by the
2-6 board, conditioned on the faithful performance of the [his] duties
2-7 of the administrator under this Act. The board may pay for the
2-8 bond with district funds.
2-9 SECTION 4. Section 5.02, Chapter 221, Acts of the 71st
2-10 Legislature, Regular Session, 1989, is amended to read as follows:
2-11 Sec. 5.02. DISTRICT RESPONSIBILITIES. On creation of the
2-12 district, the district:
2-13 (1) shall assume full responsibility for operating
2-14 hospital facilities and for furnishing medical and hospital care
2-15 for the district's needy inhabitants;
2-16 (2) may assume by contract any outstanding
2-17 indebtedness incurred by Eastland Memorial Hospital in providing
2-18 hospital care for residents of the territory of the district before
2-19 the district's creation;
2-20 (3) may operate or provide for the operation of a
2-21 mobile emergency medical service;
2-22 (4) may establish and operate a home health service;
2-23 [and]
2-24 (5) may recruit physicians and other health care
2-25 professionals or persons;
2-26 (6) may enter into a contract for a term of 25 years
2-27 or less to provide administrative and other personnel for the
3-1 operation of the hospital facilities; and
3-2 (7) may institute a suit to enforce the payment of
3-3 taxes and to foreclose liens to secure the payment of taxes due to
3-4 the district.
3-5 SECTION 5. Section 5.06(c), Chapter 221, Acts of the 71st
3-6 Legislature, Regular Session, 1989, is amended to read as follows:
3-7 (c) The board may lease hospital facilities on behalf of the
3-8 district to individuals, corporations, or other legal entities.
3-9 SECTION 6. Section 5.07(a), Chapter 221, Acts of the 71st
3-10 Legislature, Regular Session, 1989, is amended to read as follows:
3-11 (a) The board may enter into construction contracts on
3-12 behalf of the district; however, the board may enter into
3-13 construction contracts that involve spending more than $15,000
3-14 [$10,000] only after competitive bidding as provided by Subchapter
3-15 B, Chapter 271, Local Government Code.
3-16 SECTION 7. Section 5.11(b), Chapter 221, Acts of the 71st
3-17 Legislature, Regular Session, 1989, is amended to read as follows:
3-18 (b) Not later than the beginning of each operating year, the
3-19 district shall adopt an application procedure to determine
3-20 eligibility for assistance, as provided by Section 61.053, Health
3-21 and Safety Code [10.03, Indigent Health Care and Treatment Act
3-22 (Article 4438f, Vernon's Texas Civil Statutes)].
3-23 SECTION 8. Section 5.12(a), Chapter 221, Acts of the 71st
3-24 Legislature, Regular Session, 1989, is amended to read as follows:
3-25 (a) The board shall require reimbursement from a county,
3-26 city, or public hospital located outside the boundaries of the
3-27 district for the district's care and treatment of a sick, diseased,
4-1 or injured person of that county, city, or public hospital as
4-2 provided by Chapter 61, Health and Safety Code [the Indigent Health
4-3 Care and Treatment Act (Article 4438f, Vernon's Texas Civil
4-4 Statutes)].
4-5 SECTION 9. Chapter 221, Acts of the 71st Legislature,
4-6 Regular Session, 1989, is amended by adding Section 5.16 to read as
4-7 follows:
4-8 Sec. 5.16. EMERGENCY LOANS. (a) If the board of directors
4-9 determines that funds are not available to meet the lawful
4-10 obligations of the district and that an emergency exists, the board
4-11 may borrow money at a rate of interest not to exceed the maximum
4-12 annual percentage rate allowed by law for district obligations at
4-13 the time of the loan.
4-14 (b) To secure a loan, the board may pledge:
4-15 (1) the revenues of the district that are not pledged
4-16 to pay the bond indebtedness of the district;
4-17 (2) tax revenue to be collected by the district during
4-18 the 12-month period following the date of the pledge that has not
4-19 been pledged to pay the principal of or interest on district bonds;
4-20 or
4-21 (3) district bonds that have been authorized but have
4-22 not been sold.
4-23 (c) A loan for which tax revenue or bonds are pledged shall
4-24 mature not later than the first anniversary of the date on which
4-25 the loan was made. A loan for which other district revenues are
4-26 pledged shall mature not later than the fifth anniversary of the
4-27 date on which the loan was made.
5-1 (d) The board may not use loan proceeds obtained under this
5-2 section for any purpose other than the purpose for which the board
5-3 determined an emergency existed. If tax revenue or bonds are
5-4 pledged to pay the loan, the board may not use the loan proceeds
5-5 for a purpose other than the purpose for which the taxes were
5-6 levied or the bonds were authorized.
5-7 SECTION 10. Chapter 221, Acts of the 71st Legislature,
5-8 Regular Session, 1989, is amended by adding Section 5.17 to read as
5-9 follows:
5-10 Sec. 5.17. NONEMERGENCY LOANS. (a) The board may borrow
5-11 money at a rate of interest not to exceed the maximum annual
5-12 percentage rate allowed by law for district obligations at the time
5-13 of the loan.
5-14 (b) To secure a loan, the board may pledge:
5-15 (1) the revenues of the district that are not pledged
5-16 to pay the bond indebtedness of the district;
5-17 (2) tax revenue to be collected by the district during
5-18 the 12-month period following the date of the pledge that has not
5-19 been pledged to pay the principal of or interest on district bonds;
5-20 or
5-21 (3) district bonds that have been authorized but have
5-22 not been sold.
5-23 (c) A loan for which tax revenue or bonds are pledged shall
5-24 mature not later than the first anniversary of the date on which
5-25 the loan was made. A loan for which other district revenues are
5-26 pledged shall mature not later than the fifth anniversary of the
5-27 date on which the loan was made.
6-1 SECTION 11. Section 6.09(a), Chapter 221, Acts of the 71st
6-2 Legislature, Regular Session, 1989, is amended to read as follows:
6-3 (a) Except as provided by Subsection (a) of Section 5.07 and
6-4 Sections 5.16, 5.17, 7.01, 7.04, and 7.05 of this Act, the district
6-5 may not incur a debt payable from revenues of the district other
6-6 than the revenues on hand or to be on hand in the current and
6-7 immediately following fiscal year of the district.
6-8 SECTION 12. Section 7.02(a), Chapter 221, Acts of the 71st
6-9 Legislature, Regular Session, 1989, is amended to read as follows:
6-10 (a) At the time general obligation [the] bonds are issued by
6-11 the district, the board shall levy a tax.
6-12 SECTION 13. Section 7.04(c), Chapter 221, Acts of the 71st
6-13 Legislature, Regular Session, 1989, is amended to read as follows:
6-14 (c) The bonds must be issued in the manner provided by
6-15 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
6-16 Health and Safety Code [8, 10, 11, 12, and 13, County Hospital
6-17 Authority Act (Article 4494r, Vernon's Texas Civil Statutes)], for
6-18 issuance of revenue bonds by county hospital authorities.
6-19 SECTION 14. Section 9.02(b), Chapter 221, Acts of the 71st
6-20 Legislature, Regular Session, 1989, is amended to read as follows:
6-21 (b) On presentation of a petition for a dissolution election
6-22 signed by at least 15 percent [300] of the registered voters of the
6-23 territory of the district, according to the most recent official
6-24 list of registered voters, the directors shall order an election to
6-25 be held on the question of dissolution of the district and transfer
6-26 of its assets. The election shall be called not later than the
6-27 60th day after the date the petition is presented to the district.
7-1 SECTION 15. Section 9.08, Chapter 221, Acts of the 71st
7-2 Legislature, Regular Session, 1989, is amended to read as follows:
7-3 Sec. 9.08. TRANSFER OF ASSETS. (a) If a majority of votes
7-4 in the election to dissolve the district are cast for the
7-5 dissolution, the board shall:
7-6 (1) transfer the district's assets to a county or
7-7 other governmental entity in the county in which the district is
7-8 located; or
7-9 (2) administer the district's assets and debts until
7-10 all assets have been disposed of and all district debts have been
7-11 paid or settled.
7-12 (b) If the district transfers the district's assets to a
7-13 county or other governmental entity, the county or entity assumes
7-14 all debts and obligations of the district at the time of the
7-15 transfer, and the district is dissolved.
7-16 (c) If a majority of votes in the election to dissolve the
7-17 district are cast for the dissolution, the board shall:
7-18 (1) determine the amount of debt owed by the district;
7-19 and
7-20 (2) impose a tax on property taxable by the district
7-21 at a rate that will raise sufficient revenue to pay the debt owed
7-22 by the district.
7-23 (d) When all outstanding debts and obligations of the
7-24 district are paid, the board shall order the secretary to return
7-25 the pro rata share of excess tax revenue to each district taxpayer.
7-26 (e) A taxpayer may request that the taxpayer's share of
7-27 surplus tax money be credited to the taxpayer's county tax
8-1 assessment. If a taxpayer requests the credit, the board shall
8-2 direct the secretary to transfer the requesting taxpayer's share to
8-3 the county tax assessor-collector.
8-4 (f) After the district has paid all debts and has disposed
8-5 of all assets as provided by this section, the board shall file a
8-6 written report with the Commissioners Court of Eastland County that
8-7 summarizes the board's actions taken to dissolve the district.
8-8 (g) Not later than the 10th day after the date it receives
8-9 the report and determines that the requirements of this section
8-10 have been fulfilled, the Commissioners Court of Eastland County
8-11 shall enter an order dissolving the district and releasing the
8-12 board of directors of the district from any further duty or
8-13 obligation.
8-14 (h) Notwithstanding any other provision of this article, the
8-15 district may not be dissolved unless the board provides for the
8-16 sale or transfer of the district's assets and liabilities to
8-17 another entity or person. The dissolution of the district and the
8-18 sale or transfer of the district's assets and liabilities may not
8-19 contravene a trust indenture or bond resolution relating to the
8-20 outstanding bonds of the district. In addition, the dissolution
8-21 and sale or transfer may not diminish or impair the rights of the
8-22 holders of any outstanding bonds, warrants, or other obligations of
8-23 the district.
8-24 (i) [(b)] The sale or transfer of the district's assets and
8-25 liabilities must satisfy the debt and bond obligations of the
8-26 district in a manner that protects the interests of the citizens
8-27 within the district, including their collective property rights in
9-1 the district's assets. Any grant from federal funds is considered
9-2 an obligation to be repaid in satisfaction. The district may not
9-3 transfer or dispose of the district's assets except for due
9-4 compensation unless the transfer is made to another governmental
9-5 agency embracing the district and using the transferred assets for
9-6 the benefit of citizens formerly in the district.
9-7 SECTION 16. The importance of this legislation and the
9-8 crowded condition of the calendars in both houses create an
9-9 emergency and an imperative public necessity that the
9-10 constitutional rule requiring bills to be read on three several
9-11 days in each house be suspended, and this rule is hereby suspended,
9-12 and that this Act take effect and be in force from and after its
9-13 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3232 was passed by the House on April
16, 1999, by the following vote: Yeas 136, Nays 0, 2 present, not
voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3232 was passed by the Senate on May
17, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor