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 * * * * *