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