1-1     By:  Keffer (Senate Sponsor - Sibley)                 H.B. No. 3232
 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 6, 1999, reported favorably by the
 1-5     following vote:  Yeas 5, Nays 0; May 6, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the Eastland Memorial Hospital District.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Section 4.04, Chapter 221, Acts of the 71st
1-11     Legislature, Regular Session, 1989, is amended to read as follows:
1-12           Sec. 4.04.  NOTICE OF ELECTION.  Notice [At least 35 days
1-13     before the date of an election of directors, notice] of an [the]
1-14     election of directors shall be published one time in a newspaper
1-15     with general circulation in the district.  The notice may not be
1-16     published earlier than the 30th day or later than the 10th day
1-17     before the date of the election.
1-18           SECTION 2.  Section 4.05, Chapter 221, Acts of the 71st
1-19     Legislature, Regular Session, 1989, is amended to read as follows:
1-20           Sec. 4.05.  PETITION.  (a)  A person who wishes to have his
1-21     name printed on the ballot as a candidate for director must file an
1-22     application with the secretary of the board of directors [a
1-23     petition signed by at least 200 registered voters of the district
1-24     asking that his name be placed on the ballot.  The determination of
1-25     whether a person is a registered voter of the district shall be
1-26     based on the most recent official lists of registered voters].
1-27           (b)  The application [petition] must be filed with the
1-28     secretary not later than the 31st day before the date of the
1-29     election.
1-30           SECTION 3.  Section 4.12(d), Chapter 221, Acts of the 71st
1-31     Legislature, Regular Session, 1989, is amended to read as follows:
1-32           (d)  The board may require that the administrator, before
1-33     [Before] assuming the administrator's [his] duties, [the
1-34     administrator shall] execute a bond payable to the hospital
1-35     district in the amount of not less than $5,000 as determined by the
1-36     board, conditioned on the faithful performance of the [his] duties
1-37     of the administrator under this Act.  The board may pay for the
1-38     bond with district funds.
1-39           SECTION 4.  Section 5.02, Chapter 221, Acts of the 71st
1-40     Legislature, Regular Session, 1989, is amended to read as follows:
1-41           Sec. 5.02.  DISTRICT RESPONSIBILITIES.  On creation of the
1-42     district, the district:
1-43                 (1)  shall assume full responsibility for operating
1-44     hospital facilities and for furnishing medical and hospital care
1-45     for the district's needy inhabitants;
1-46                 (2)  may assume by contract any outstanding
1-47     indebtedness incurred by Eastland Memorial Hospital in providing
1-48     hospital care for residents of the territory of the district before
1-49     the district's creation;
1-50                 (3)  may operate or provide for the operation of a
1-51     mobile emergency medical service;
1-52                 (4)  may establish and operate a home health service;
1-53     [and]
1-54                 (5)  may recruit physicians and other health care
1-55     professionals or persons;
1-56                 (6)  may enter into a contract for a term of 25 years
1-57     or less to provide administrative and other personnel for the
1-58     operation of the hospital facilities; and
1-59                 (7)  may institute a suit to enforce the payment of
1-60     taxes and to foreclose liens to secure the payment of taxes due to
1-61     the district.
1-62           SECTION 5.  Section 5.06(c), Chapter 221, Acts of the 71st
1-63     Legislature, Regular Session, 1989, is amended to read as follows:
1-64           (c)  The board may lease hospital facilities on behalf of the
 2-1     district to individuals, corporations, or other legal entities.
 2-2           SECTION 6.  Section 5.07(a), Chapter 221, Acts of the 71st
 2-3     Legislature, Regular Session, 1989, is amended to read as follows:
 2-4           (a)  The board may enter into construction contracts on
 2-5     behalf of the district; however, the board may enter into
 2-6     construction contracts that involve spending more than $15,000
 2-7     [$10,000] only after competitive bidding as provided by Subchapter
 2-8     B, Chapter 271, Local Government Code.
 2-9           SECTION 7.  Section 5.11(b), Chapter 221, Acts of the 71st
2-10     Legislature, Regular Session, 1989, is amended to read as follows:
2-11           (b)  Not later than the beginning of each operating year, the
2-12     district shall adopt an application procedure to determine
2-13     eligibility for assistance, as provided by Section 61.053, Health
2-14     and Safety Code [10.03, Indigent Health Care and Treatment Act
2-15     (Article 4438f, Vernon's Texas Civil Statutes)].
2-16           SECTION 8.  Section 5.12(a), Chapter 221, Acts of the 71st
2-17     Legislature, Regular Session, 1989, is amended to read as follows:
2-18           (a)  The board shall require reimbursement from a county,
2-19     city, or public hospital located outside the boundaries of the
2-20     district for the district's care and treatment of a sick, diseased,
2-21     or injured person of that county, city, or public hospital as
2-22     provided by Chapter 61, Health and Safety Code [the Indigent Health
2-23     Care and Treatment Act (Article 4438f, Vernon's Texas Civil
2-24     Statutes)].
2-25           SECTION 9.  Chapter 221, Acts of the 71st Legislature,
2-26     Regular Session, 1989, is amended by adding Section 5.16 to read as
2-27     follows:
2-28           Sec. 5.16.  EMERGENCY LOANS.  (a)  If the board of directors
2-29     determines that funds are not available to meet the lawful
2-30     obligations of the district and that an emergency exists, the board
2-31     may borrow money at a rate of interest not to exceed the maximum
2-32     annual percentage rate allowed by law for district obligations at
2-33     the time of the loan.
2-34           (b)  To secure a loan, the board may pledge:
2-35                 (1)  the revenues of the district that are not pledged
2-36     to pay the bond indebtedness of the district;
2-37                 (2)  tax revenue to be collected by the district during
2-38     the 12-month period following the date of the pledge that has not
2-39     been pledged to pay the principal of or interest on district bonds;
2-40     or
2-41                 (3)  district bonds that have been authorized but have
2-42     not been sold.
2-43           (c)  A loan for which tax revenue or bonds are pledged shall
2-44     mature not later than the first anniversary of the date on which
2-45     the loan was made.  A loan for which other district revenues are
2-46     pledged shall mature not later than the fifth anniversary of the
2-47     date on which the loan was made.
2-48           (d)  The board may not use loan proceeds obtained under this
2-49     section for any purpose other than the purpose for which the board
2-50     determined an emergency existed.  If tax revenue or bonds are
2-51     pledged to pay the loan, the board may not use the loan proceeds
2-52     for a purpose other than the purpose for which the taxes were
2-53     levied or the bonds were authorized.
2-54           SECTION 10.  Chapter 221, Acts of the 71st Legislature,
2-55     Regular Session, 1989, is amended by adding Section 5.17 to read as
2-56     follows:
2-57           Sec. 5.17.  NONEMERGENCY LOANS.  (a)  The board may borrow
2-58     money at a rate of interest not to exceed the maximum annual
2-59     percentage rate allowed by law for district obligations at the time
2-60     of the loan.
2-61           (b)  To secure a loan, the board may pledge:
2-62                 (1)  the revenues of the district that are not pledged
2-63     to pay the bond indebtedness of the district;
2-64                 (2)  tax revenue to be collected by the district during
2-65     the 12-month period following the date of the pledge that has not
2-66     been pledged to pay the principal of or interest on district bonds;
2-67     or
2-68                 (3)  district bonds that have been authorized but have
2-69     not been sold.
 3-1           (c)  A loan for which tax revenue or bonds are pledged shall
 3-2     mature not later than the first anniversary of the date on which
 3-3     the loan was made.  A loan for which other district revenues are
 3-4     pledged shall mature not later than the fifth anniversary of the
 3-5     date on which the loan was made.
 3-6           SECTION 11.  Section 6.09(a), Chapter 221, Acts of the 71st
 3-7     Legislature, Regular Session, 1989, is amended to read as follows:
 3-8           (a)  Except as provided by Subsection (a) of Section 5.07 and
 3-9     Sections 5.16, 5.17, 7.01, 7.04, and 7.05 of this Act, the district
3-10     may not incur a debt payable from revenues of the district other
3-11     than the revenues on hand or to be on hand in the current and
3-12     immediately following fiscal year of the district.
3-13           SECTION 12.  Section 7.02(a), Chapter 221, Acts of the 71st
3-14     Legislature, Regular Session, 1989, is amended to read as follows:
3-15           (a)  At the time general obligation [the] bonds are issued by
3-16     the district, the board shall levy a tax.
3-17           SECTION 13.  Section 7.04(c), Chapter 221, Acts of the 71st
3-18     Legislature, Regular Session, 1989, is amended to read as follows:
3-19           (c)  The bonds must be issued in the manner provided by
3-20     Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
3-21     Health and Safety Code [8, 10, 11, 12, and 13, County Hospital
3-22     Authority Act (Article 4494r, Vernon's Texas Civil Statutes)], for
3-23     issuance of revenue bonds by county hospital authorities.
3-24           SECTION 14.  Section 9.02(b), Chapter 221, Acts of the 71st
3-25     Legislature, Regular Session, 1989, is amended to read as follows:
3-26           (b)  On presentation of a petition for a dissolution election
3-27     signed by at least 15 percent [300] of the registered voters of the
3-28     territory of the district, according to the most recent official
3-29     list of registered voters, the directors shall order an election to
3-30     be held on the question of dissolution of the district and transfer
3-31     of its assets.  The election shall be called not later than the
3-32     60th day after the date the petition is presented to the district.
3-33           SECTION 15.  Section 9.08, Chapter 221, Acts of the 71st
3-34     Legislature, Regular Session, 1989, is amended to read as follows:
3-35           Sec. 9.08.  TRANSFER OF ASSETS.  (a)  If a majority of votes
3-36     in the election to dissolve the district are cast for the
3-37     dissolution, the board shall:
3-38                 (1)  transfer the district's assets to a county or
3-39     other governmental entity in the county in which the district is
3-40     located; or
3-41                 (2)  administer the district's assets and debts until
3-42     all assets have been disposed of and all district debts have been
3-43     paid or settled.
3-44           (b)  If the district transfers the district's assets to a
3-45     county or other governmental entity, the county or entity assumes
3-46     all debts and obligations of the district at the time of the
3-47     transfer, and the district is dissolved.
3-48           (c)  If a majority of votes in the election to dissolve the
3-49     district are cast for the dissolution, the board shall:
3-50                 (1)  determine the amount of debt owed by the district;
3-51     and
3-52                 (2)  impose a tax on property taxable by the district
3-53     at a rate that will raise sufficient revenue to pay the debt owed
3-54     by the district.
3-55           (d)  When all outstanding debts and obligations of the
3-56     district are paid, the board shall order the secretary to return
3-57     the pro rata share of excess tax revenue to each district taxpayer.
3-58           (e)  A taxpayer may request that the taxpayer's share of
3-59     surplus tax money be credited to the taxpayer's county tax
3-60     assessment.  If a taxpayer requests the credit, the board shall
3-61     direct the secretary to transfer the requesting taxpayer's share to
3-62     the county tax assessor-collector.
3-63           (f)  After the district has paid all debts and has disposed
3-64     of all assets as provided by this section, the board shall file a
3-65     written report with the Commissioners Court of Eastland County that
3-66     summarizes the board's actions taken to dissolve the district.
3-67           (g)  Not later than the 10th day after the date it receives
3-68     the report and determines that the requirements of this section
3-69     have been fulfilled, the Commissioners Court of Eastland County
 4-1     shall enter an order dissolving the district and releasing the
 4-2     board of directors of the district from any further duty or
 4-3     obligation.
 4-4           (h)  Notwithstanding any other provision of this article, the
 4-5     district may not be dissolved unless the board provides for the
 4-6     sale or transfer of the district's assets and liabilities to
 4-7     another entity or person.  The dissolution of the district and the
 4-8     sale or transfer of the district's assets and liabilities may not
 4-9     contravene a trust indenture or bond resolution relating to the
4-10     outstanding bonds of the district.  In addition, the dissolution
4-11     and sale or transfer may not diminish or impair the rights of the
4-12     holders of any outstanding bonds, warrants, or other obligations of
4-13     the district.
4-14           (i) [(b)]  The sale or transfer of the district's assets and
4-15     liabilities must satisfy the debt and bond obligations of the
4-16     district in a manner that protects the interests of the citizens
4-17     within the district, including their collective property rights in
4-18     the district's assets.  Any grant from federal funds is considered
4-19     an obligation to be repaid in satisfaction.  The district may not
4-20     transfer or dispose of the district's assets except for due
4-21     compensation unless the transfer is made to another governmental
4-22     agency embracing the district and using the transferred assets for
4-23     the benefit of citizens formerly in the district.
4-24           SECTION 16.  The importance of this legislation and the
4-25     crowded condition of the calendars in both houses create an
4-26     emergency and an imperative public necessity that the
4-27     constitutional rule requiring bills to be read on three several
4-28     days in each house be suspended, and this rule is hereby suspended,
4-29     and that this Act take effect and be in force from and after its
4-30     passage, and it is so enacted.
4-31                                  * * * * *