By Haywood S.B. No. 1625
76R4079 MXM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Childress County Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 3, Chapter 647, Acts of the 59th
1-5 Legislature, Regular Session, 1965, is amended to read as follows:
1-6 Sec. 3. (a) The District shall not be created, nor shall any
1-7 tax therein be authorized unless and until such creation and such
1-8 tax are approved by a majority of the qualified property taxpaying
1-9 electors of the District voting at an election called for such
1-10 purpose. Such election may be initiated by the Commissioners Court
1-11 of Childress County upon its own motion, or shall be called by said
1-12 Commissioners Court upon presentation of a petition therefor signed
1-13 by at least one hundred (100) qualified property taxpaying electors
1-14 of the District. Such election shall be held not less than thirty
1-15 (30) nor more than sixty (60) days from the time such election is
1-16 ordered by the Commissioners Court. The order calling the election
1-17 shall specify the time and places of holding same, the form of
1-18 ballot, and the presiding judge for each voting place. Notice of
1-19 election shall be given by publishing a substantial copy of the
1-20 election order in a newspaper of general circulation in the County
1-21 once a week for two consecutive weeks, the first publication to
1-22 appear at least thirty (30) days prior to the date established for
1-23 the election. The failure of such election shall not operate to
1-24 prohibit the calling and holding of subsequent elections for the
2-1 same purpose.
2-2 (b) At said election there shall be submitted to the
2-3 qualified property taxpaying electors of the District the
2-4 proposition of whether or not the hospital district shall be
2-5 created with authority to levy annual taxes at a rate not to exceed
2-6 seventy-five cents (75 ) on the one hundred dollar valuation of
2-7 taxable property within such District for the purpose of meeting
2-8 the requirements of the District's bonds, indebtedness assumed by
2-9 it, and its maintenance and operating expenses, and a majority of
2-10 the qualified property taxpaying electors of the District voting at
2-11 said election in favor of the proposition shall be sufficient for
2-12 its adoption.
2-13 (c) The ballots for such creation election shall have
2-14 printed thereon the following:
2-15 "FOR the creation of Childress County Hospital District
2-16 providing for the levy of a tax not to exceed seventy-five cents
2-17 (75 ) on the one hundred dollar valuation using Childress County
2-18 values and Childress County tax rolls, and providing for the
2-19 assumption by such District of all outstanding bonds and
2-20 indebtedness heretofore issued by Childress County and by any city
2-21 or town within said County for hospital purposes.
2-22 "AGAINST the creation of Childress County Hospital District,
2-23 providing for the levy of a tax not to exceed seventy-five cents
2-24 (75 ) on the one hundred dollar valuation using Childress County
2-25 values and Childress County tax rolls, and providing for the
2-26 assumption by such District of all outstanding bonds and
2-27 indebtedness heretofore issued by Childress County and by any city
3-1 or town within said County for hospital purposes."
3-2 SECTION 2. Section 4, Chapter 647, Acts of the 59th
3-3 Legislature, Regular Session, 1965, is amended to read as follows:
3-4 Sec. 4. (a) Within ten (10) days after such election is
3-5 held, the Commissioners Court of said County shall convene and
3-6 canvass the returns thereof, and in the event such election results
3-7 favorably to the proposition specified in Section 3 hereof, such
3-8 District shall be governed by a Board of Directors to consist of
3-9 seven (7) members. The [Upon creation of the District as
3-10 above-provided, the Commissioners Court shall appoint seven (7)
3-11 persons as Directors to serve until the first Saturday in April of
3-12 the calendar year following the creation of the District, at which
3-13 time seven Directors shall be elected from the County at large.
3-14 The four (4) Directors receiving the highest number of votes shall
3-15 serve for two years, the remaining three (3) shall serve for one
3-16 year. Thereafter, the] term of all Directors shall be two years.
3-17 (b) A regular election for Directors shall be held on the
3-18 first Saturday in May [April] of each year and shall be ordered by
3-19 the Board. Such order shall state the time, place and purpose of
3-20 the election, and the Board shall appoint the presiding judge, who
3-21 shall appoint an assistant judge and such clerks as may be
3-22 required, and such election shall be ordered at least 45 [fifteen
3-23 (15)] days prior to the date on which it is to be held. Any person
3-24 desiring his name to be printed on the ballot as a candidate for
3-25 Director shall file an application [a petition signed by not less
3-26 than fifteen (15) qualified voters asking that such name be printed
3-27 on the ballot,] with the secretary of the Board of Directors of the
4-1 District[. Such petition shall be filed with the secretary] at
4-2 least 31 [twenty-five (25)] days prior to the date of election.
4-3 Notice of such election shall be published one (1) time in a
4-4 newspaper of general circulation in the area of the District not
4-5 earlier than the 30th day or later than the 10th day [at least five
4-6 (5) days] before the date of the election. All vacancies in office
4-7 [(other than for the failure of an original Director herein
4-8 appointed to qualify)] shall be filled by a majority vote of the
4-9 remaining Directors, and such appointees shall hold office for the
4-10 unexpired terms for which they were appointed.
4-11 (c) No Director shall be entitled to compensation, but shall
4-12 be entitled to receive [his] actual expenses incurred in attending
4-13 to the District's business, provided such expenses are reported in
4-14 the District's minutes book or other District records and approved
4-15 by the remainder of the Board. Any person who is a resident of the
4-16 District and a qualified [property owning taxpaying] voter [of the
4-17 District] shall be eligible to hold office as Director of the
4-18 District, except that an employee of the District may not serve as
4-19 a Director. The Board of Directors shall elect from its number a
4-20 president and[,] vice president and shall appoint a[,] secretary
4-21 who is not required to be a Director. Each officer shall serve for
4-22 a term of one year[, and such other officers as in the judgment of
4-23 the Board are necessary]. The president has [shall be the chief
4-24 executive officer of the District, and shall have] the same right
4-25 to vote as any other Director. The vice president shall perform
4-26 all duties and exercise all powers conferred by this Act upon the
4-27 president when the president is absent or fails and declines to
5-1 act.
5-2 (d) Any four members of the Board shall constitute a quorum
5-3 and the concurrence of four shall be sufficient in all matters
5-4 pertaining to the business of the District. The Board shall
5-5 require the keeping of a true account of all its meetings and
5-6 proceedings and shall preserve all contracts, records, notices,
5-7 duplicate vouchers, duplicate receipts, and all accounts and
5-8 records of the District at its principal office, where same shall
5-9 be open to public inspection at all reasonable times.
5-10 SECTION 3. Section 5, Chapter 647, Acts of the 59th
5-11 Legislature, Regular Session, 1965, is amended to read as follows:
5-12 Sec. 5. (a) The Board of Directors, with the assistance of
5-13 the chief executive officer, shall manage, control, and administer
5-14 the hospital, [hospitals and] hospital system, and the business,
5-15 funds, and resources of the District. The District through its
5-16 Board of Directors shall have the power and authority to sue and be
5-17 sued and to promulgate rules and regulations for the operation of
5-18 the District. The members of the Board of Directors shall be
5-19 individually liable only for their individual misapplication of
5-20 public funds. The Board of Directors shall appoint a qualified
5-21 person to be known as the chief executive officer [Administrator or
5-22 Manager] of the hospital district and may in its discretion appoint
5-23 an assistant to the chief executive officer [Administrator or
5-24 Manager]. Such chief executive officer [Administrator or Manager]
5-25 and assistant chief executive officer [administrator or assistant
5-26 manager], if any, shall receive such compensation as may be fixed
5-27 by the Board, and the Board may execute an employment contract with
6-1 the chief executive officer [such Administrator or Manager] and
6-2 assistant chief executive officer [administrator or assistant
6-3 manager], but in no event may any such contract be for more than
6-4 three (3) years, but the same may be renewed or extended annually.
6-5 The chief executive officer [Administrator or Manager] shall, upon
6-6 assuming the chief executive officer's [his] duties, execute a bond
6-7 payable to the hospital district in an amount to be set by the
6-8 Board of Directors, but in no event less than $25,000 [Twenty-five
6-9 Thousand Dollars ($25,000)], conditioned on the faithful
6-10 performance of the chief executive officer's [that he shall perform
6-11 the] duties [required of him], and containing such other conditions
6-12 as the Board may require. The Board may pay the bond with District
6-13 funds. The chief executive officer [Administrator or Manager]
6-14 shall keep abreast of and be informed on the latest methods of
6-15 hospital administration and the care of hospital patients, and
6-16 shall supervise all the work and activities of the District and
6-17 shall have general direction of the affairs of the District,
6-18 subject to such limitations as may be prescribed by the Board.
6-19 (b) The Board of Directors shall have the authority to
6-20 employ, or may provide that the chief executive officer has
6-21 [Administrator or Manager shall have] the authority to employ, for
6-22 the efficient operation of the District, nurses, technicians, and
6-23 employees of the District. The Board of Directors shall be
6-24 authorized to contract with any county or incorporated municipality
6-25 located outside its boundaries for the care and treatment of the
6-26 sick, diseased or injured persons of any such county or
6-27 municipality, and shall have the authority to contract with the
7-1 State of Texas and agencies of the Federal Government for the
7-2 treatment of sick, diseased or injured persons for whom the State
7-3 of Texas or the Federal Government is [are] responsible.
7-4 (c) The Board of Directors may purchase or lease property
7-5 for the District to use in the hospital system and may mortgage or
7-6 pledge the property as security for the payment of the purchase
7-7 price [is also authorized to enter into such contracts or
7-8 agreements with the State of Texas or the Federal Government as may
7-9 be required to establish or continue a retirement program for the
7-10 benefit of the District's employees].
7-11 (d) The Board may contract to provide administrative or
7-12 other personnel for the operation of the hospital facilities. A
7-13 contract entered into under this subsection may not have a term
7-14 longer than 25 years.
7-15 (e) The Board may lease District hospital facilities to
7-16 individuals, corporations, or other legal entities and may sell or
7-17 otherwise dispose of the District's property.
7-18 (f) The Board may provide retirement benefits for District
7-19 employees by establishing or administering a retirement program or
7-20 electing to participate in the Texas County and District Retirement
7-21 System or any other statewide retirement system for which the
7-22 District is eligible.
7-23 (g) The Board may spend District funds to recruit
7-24 physicians, nurses, and other trained medical personnel. The Board
7-25 may contract with one or more full-time medical students or other
7-26 students in a health occupation, each of whom is enrolled in and in
7-27 good standing at an accredited medical school, college, or
8-1 university, to pay the student's tuition or other expenses in
8-2 consideration of the student's agreement to serve as an employee or
8-3 independent contractor for the District.
8-4 (h) The Board may institute a suit to enforce the payment of
8-5 taxes or to foreclose liens to secure the payment of taxes due to
8-6 the District.
8-7 (i) The Board may provide or contract to provide educational
8-8 programs or courses for employees and medical staff of the
8-9 District.
8-10 SECTION 4. Section 6, Chapter 647, Acts of the 59th
8-11 Legislature, Regular Session, 1965, is amended to read as follows:
8-12 Sec. 6. (a) The District shall be operated on a fiscal year
8-13 established by the Board of Directors. The fiscal year may not be
8-14 changed when revenue bonds are outstanding or more than one time in
8-15 a 24-month period. The Board [commencing on October 1 of each year
8-16 and ending on September 30 of the following year, and it] shall
8-17 cause an annual audit to be made of the financial condition of said
8-18 District, which shall at all times be open to inspection at the
8-19 principal office of the District. In addition, the chief executive
8-20 officer [Administrator or Manager] shall prepare an annual budget
8-21 for approval by the Board of Directors of said District. A public
8-22 hearing on the annual budget shall be held by the Board of
8-23 Directors after notice has been given in the manner provided by
8-24 Subchapter C, Chapter 551, Government Code [of such hearing has
8-25 been published one (1) time at least ten (10) days before the date
8-26 set therefor].
8-27 (b) No expenditure may be made for any expense not included
9-1 in the original annual budget or an amendment thereto. The annual
9-2 budget may be amended from time to time, as the circumstances may
9-3 require, but the annual budget, and all amendments thereto, shall
9-4 be approved by the Board of Directors.
9-5 (c) As soon as practicable after the close of each fiscal
9-6 year, the chief executive officer [Administrator or Manager] shall
9-7 prepare for the Board a full sworn statement of all moneys
9-8 belonging to the District and a full account of the disbursements
9-9 of same.
9-10 SECTION 5. Section 7, Chapter 647, Acts of the 59th
9-11 Legislature, Regular Session, 1965, is amended to read as follows:
9-12 Sec. 7. (a) The Board of Directors of the hospital district
9-13 shall have the power and authority to issue and sell revenue [its]
9-14 bonds in the name and upon the faith and credit of such hospital
9-15 district for the purpose of purchasing, constructing, repairing,
9-16 renovating, or acquiring buildings or [purchase, construction,
9-17 acquisition, repair or renovation of] improvements, [and] equipping
9-18 the same for hospitals and the hospital system, and acquiring sites
9-19 to be used for hospital [as determined by the Board, and for any
9-20 and all of such] purposes. The bonds shall be payable from and
9-21 secured by a pledge of all or part of the revenues derived from the
9-22 operation of the District's hospital system. The bonds may be
9-23 additionally secured by a mortgage or deed of trust on all or part
9-24 of District property. The revenue bonds shall be issued as
9-25 provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048,
9-26 and 264.049, Health and Safety Code, for the issuance of revenue
9-27 bonds by county hospital authorities.
10-1 (b) The Board may issue and sell general obligation bonds
10-2 authorized by an election in the name and on the faith and credit
10-3 of the District to:
10-4 (1) purchase, construct, acquire, repair, or renovate
10-5 buildings or improvements;
10-6 (2) equip buildings or improvements for hospital
10-7 purposes; or
10-8 (3) acquire and operate a mobile emergency medical or
10-9 air ambulance service.
10-10 (c) At the time of the issuance of any general obligation
10-11 [such] bonds a tax shall be levied by the Board sufficient to
10-12 create an interest and sinking fund and to pay the interest on and
10-13 principal of said bonds as same mature, providing such tax together
10-14 with any other taxes levied for said District shall not exceed the
10-15 limit approved by the voters at the election authorizing the levy
10-16 of taxes. The District may issue general obligation bonds only if
10-17 the bonds are authorized by a majority of the qualified voters of
10-18 the District voting at an election called and held for that
10-19 purpose. The Board may order a bond election. The order calling
10-20 the election shall state the nature and date of the election, the
10-21 hours during which the polls will be open, the location of the
10-22 polling places, the amounts of the bonds to be authorized, and the
10-23 maximum maturity of the bonds. Notice of a bond election shall be
10-24 given as provided for by Article 704, Revised Statutes. The Board
10-25 shall canvass the returns and declare the results of the election
10-26 [seventy-five cents (75 ) on each one hundred dollar valuation of
10-27 taxable property in any one year].
11-1 (d) Such bonds shall be executed in the name of the hospital
11-2 district and in its behalf by the president of the Board and
11-3 attested by the secretary, as provided by Article 717j-1, Vernon's
11-4 Texas Civil Statutes, and shall be subject to the same requirements
11-5 in the matter of approval by the Attorney General of Texas and
11-6 registration by the Comptroller of Public Accounts of the State of
11-7 Texas as are by law provided for approval and registration of bonds
11-8 issued by counties. No bonds shall be issued by such hospital
11-9 district except refunding bonds until authorized by a majority of
11-10 the qualified electors of the District who own taxable property
11-11 therein and who have duly rendered the same for taxation voting at
11-12 an election called for such purpose. Except as provided in Section
11-13 8, such election shall be called by the Board of Directors and held
11-14 in accordance with the provisions of Chapter 1, Title 22, [of the]
11-15 Revised [Civil] Statutes [of Texas, as amended], and except as
11-16 therein otherwise provided, shall be conducted in accordance with
11-17 the General Laws of Texas pertaining to elections. [The District
11-18 shall make provisions for defraying the costs of all elections
11-19 called and held under the provisions of this Act. The bond
11-20 election order shall specify the date of the election, the amount
11-21 of bonds to be authorized, the maximum maturity thereof, the
11-22 maximum rate of interest they are to bear, the place or places
11-23 where the election shall be held, and the presiding officers
11-24 thereof.]
11-25 (e) District bonds must mature not later than the 40th
11-26 anniversary of the date of issuance and must bear a rate of
11-27 interest that does not exceed the amount provided by Chapter 3,
12-1 Acts of the 61st Legislature, Regular Session, 1969 (Article
12-2 717k-2, Vernon's Texas Civil Statutes).
12-3 (f) The bonds of the District may be issued for the purpose
12-4 of refunding and paying off any bonds issued or assumed by such
12-5 district. Refunding bonds must be issued in the manner provided by
12-6 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
12-7 (Article 717k-3, Vernon's Texas Civil Statutes). Such refunding
12-8 bonds may be sold and the proceeds thereof applied to the payment
12-9 of outstanding bonds, or may be exchanged in whole or in part for
12-10 not less than a like principal amount of such outstanding bonds,
12-11 provided that, if refunding bonds are to be exchanged for a like
12-12 amount of said outstanding bonds, such refunding bonds shall bear
12-13 interest at the same or lower rate than borne by the bonds
12-14 refunded, unless it is shown mathematically that a saving will
12-15 result in the total amount of interest to be paid on said refunding
12-16 bonds, and provided further that if such refunding bonds are to be
12-17 sold and the proceeds thereof applied to the payment of any such
12-18 outstanding bonds or other refundable indebtedness, same shall be
12-19 issued and payments made in the manner specified by Chapter 503,
12-20 Acts of the 54th Legislature, Regular Session, 1955 (Article 717k,
12-21 Vernon's Texas Civil Statutes).
12-22 SECTION 6. Section 11, Chapter 647, Acts of the 59th
12-23 Legislature, Regular Session, 1965, is amended to read as follows:
12-24 Sec. 11. The Board of Directors of such District shall have
12-25 the power to prescribe the method and manner of making purchases
12-26 and expenditures by and for such hospital district, and also shall
12-27 be authorized to prescribe all accounting and control procedures
13-1 and to make such rules and regulations as may be required to carry
13-2 out the provisions of this Act. Before the District enters into a
13-3 contract that requires an expenditure of more than $15,000, the
13-4 District shall comply with the competitive bidding requirements
13-5 contained in Chapter 252, Local Government Code [All purchases
13-6 involving the expenditure of more than Two Thousand Dollars
13-7 ($2,000) may be made only after advertising in the manner provided
13-8 by Article 2368a, Vernon's Texas Civil Statutes, as amended].
13-9 SECTION 7. Section 12, Chapter 647, Acts of the 59th
13-10 Legislature, Regular Session, 1965, is amended to read as follows:
13-11 Sec. 12. The Board of Directors of the District shall name
13-12 one or more banks [within its boundaries] to serve as depository
13-13 for the funds of the District. All such funds shall, as derived
13-14 and collected, be immediately deposited with such depository bank
13-15 or banks, except that sufficient funds shall be remitted to the
13-16 bank or banks for the payment of principal of and interest on the
13-17 outstanding bonds of the District or other obligations assumed by
13-18 it and in time that such money may be received by said bank or
13-19 banks for payment on or prior to the date of maturity of such
13-20 principal and interest so to be paid. To the extent that funds in
13-21 the depository bank or banks are not insured by the Federal Deposit
13-22 Insurance Corporation, they shall be secured in the manner provided
13-23 by law for security of county funds. Membership on the Board of
13-24 Directors of an officer or director of a bank shall not disqualify
13-25 such bank from being designated as depository.
13-26 SECTION 8. Section 16, Chapter 647, Acts of the 59th
13-27 Legislature, Regular Session, 1965, is amended to read as follows:
14-1 Sec. 16. (a) The Board of Directors may annually impose
14-2 property taxes in an amount not to exceed the limit approved by the
14-3 voters at the election authorizing the levy of taxes. The tax rate
14-4 for all purposes may not exceed 75 cents on each $100 valuation of
14-5 all taxable property in the District.
14-6 (b) The taxes may be used to pay for indebtedness issued or
14-7 assumed by the District and for the maintenance and operating
14-8 expenses of the District. The District may not impose taxes to pay
14-9 the principal of or interest on revenue bonds.
14-10 (c) The Tax Code governs the appraisal, assessment, and
14-11 collection of District taxes. The Board may provide for the
14-12 appointment of a tax assessor-collector for the District or may
14-13 contract for the assessment and collection of taxes as provided by
14-14 the Tax Code [The District taxes shall be assessed and collected
14-15 on county tax values in the same manner as provided by law with
14-16 relation to county taxes upon all taxable property within said
14-17 District, subject to hospital district taxation. The Tax
14-18 Assessor-Collector of Childress County shall be charged and
14-19 required to accomplish the assessment and collection of all taxes
14-20 levied by and on behalf of the District. The Assessor-Collector of
14-21 taxes shall charge and deduct from payments to the hospital
14-22 district the dues for assessing and collecting the taxes at a rate
14-23 of not to exceed one per cent (1%) for assessing, and one per cent
14-24 (1%) for collecting, each based upon the amount collected, but in
14-25 no event shall such fee to the Tax Assessor-Collector exceed Five
14-26 Thousand Dollars ($5,000) in any one calendar year. Such fees
14-27 shall be deposited in the officers' salary fund of the County and
15-1 reported as fees of office of the County Assessor-Collector.
15-2 Interest and penalties on taxes paid to the hospital district shall
15-3 be the same as in the case of County taxes. Discounts shall be the
15-4 same as allowed by the County. The residue of tax collections,
15-5 after deduction of discounts and fees for assessing and collecting,
15-6 shall be deposited in the District's depository.]
15-7 [The Board of Directors shall have the authority to levy the
15-8 aforesaid tax for the entire year in which said District is
15-9 established as the result of the election herein provided. The
15-10 bond of the County Tax Assessor-Collector shall stand as security
15-11 for the proper performance of his duties as Assessor-Collector of
15-12 the District, or if in the judgment of the Board of Directors of
15-13 the District it is necessary, additional bond payable to the
15-14 District may be required. In all matters pertaining to the
15-15 assessment, collection and enforcement of taxes for the District,
15-16 the County Tax Assessor-Collector shall be authorized to act in all
15-17 respects according to the laws of the State of Texas relating to
15-18 State and County taxes].
15-19 SECTION 9. Section 18, Chapter 647, Acts of the 59th
15-20 Legislature, Regular Session, 1965, is amended to read as follows:
15-21 Sec. 18. Whenever a patient residing within the District has
15-22 been admitted to the facilities thereof, the chief executive
15-23 officer [Administrator or Manager] shall cause inquiry to be made
15-24 as to the patient's [his] circumstances and those of the relatives
15-25 of such patient legally liable for the patient's [his] support. If
15-26 the chief executive officer [he] finds that such patient or said
15-27 relatives are able to pay for the patient's [his] care and
16-1 treatment in whole or in part, an order shall be made directing
16-2 such patient or said relatives to pay to the hospital district for
16-3 the support of such patient a specified sum per week in proportion
16-4 to their financial ability, but such sum shall not exceed the
16-5 actual per capita cost of maintenance. The chief executive officer
16-6 [Administrator or Manager] shall have power and authority to
16-7 collect such sums from the estate of the patient or the patient's
16-8 [his] relatives legally liable for the patient's [his] support in
16-9 the manner provided by law for collection of expenses in the last
16-10 illness of a deceased person. If the chief executive officer
16-11 [Administrator or Manager] finds that such patient or said
16-12 relatives are not able to pay either in whole or in part for the
16-13 patient's [his] care and treatment in such hospital, same shall
16-14 become a charge upon the hospital district as to the amount of the
16-15 inability to pay. Should there be any dispute as to the ability to
16-16 pay or doubt in the mind of the chief executive officer
16-17 [Administrator or Manager], the Board of Directors shall hear and
16-18 determine same after calling witnesses, and shall make such order
16-19 or orders as may be proper. Appeals from a final order of the
16-20 Board shall lie to the District Court. The substantial evidence
16-21 rule shall apply.
16-22 SECTION 10. Chapter 647, Acts of the 59th Legislature,
16-23 Regular Session, 1965, is amended by adding Section 20A to read as
16-24 follows:
16-25 Sec. 20A. (a) The Board of Directors may borrow money for
16-26 District obligations at the time of the loan.
16-27 (b) To secure a loan, the Board may pledge:
17-1 (1) the revenues of the District that are not pledged
17-2 to pay bonded indebtedness of the District;
17-3 (2) taxes to be levied by the District in the next 12
17-4 months that are not pledged to pay the principal of or interest on
17-5 District bonds; or
17-6 (3) District bonds that have been authorized but not
17-7 sold.
17-8 (c) A loan for which taxes or bonds are pledged must mature
17-9 not later than the first anniversary of the date on which the loan
17-10 was made. A loan for which District revenues are pledged must
17-11 mature not later than the fifth anniversary of the date on which
17-12 the loan is made.
17-13 SECTION 11. Chapter 647, Acts of the 59th Legislature,
17-14 Regular Session, 1965, is amended by adding Section 25 to read as
17-15 follows:
17-16 Sec. 25. (a) The District may be dissolved only if the
17-17 dissolution is approved by a majority of the qualified voters of
17-18 the District voting in an election called and held for that
17-19 purpose.
17-20 (b) The Board of Directors may order an election on the
17-21 question of dissolving the District and disposing of the district's
17-22 assets and obligations. The Board shall order an election if the
17-23 Board receives a petition requesting an election that is signed by
17-24 a number of residents of the District equal to at least 15 percent
17-25 of the registered voters in the District.
17-26 (c) The election shall be held not later than the 60th day
17-27 after the date the election is ordered. Section 41.001(a),
18-1 Election Code, does not apply to an election ordered under this
18-2 section. The order calling the election shall state:
18-3 (1) the nature of the election, including the
18-4 proposition that is to appear on the ballot;
18-5 (2) the date of the election;
18-6 (3) the hours during which the polls will be open; and
18-7 (4) the location of the polling places.
18-8 (d) The Board shall give notice of the election by
18-9 publishing the election order in a newspaper with general
18-10 circulation in the District once a week for two consecutive weeks.
18-11 The first publication must appear not less than 35 days before the
18-12 date set for the election. The ballot for the election shall be
18-13 printed to permit voting for or against the proposition: "The
18-14 dissolution of the Childress County Hospital District."
18-15 (e) If a majority of the votes in the election favor
18-16 dissolution, the Board shall find that the District is dissolved.
18-17 If a majority of the votes in the election do not favor
18-18 dissolution, the Board shall continue to administer the District,
18-19 and another election on the question of dissolution may not be held
18-20 before the first anniversary of the most recent election to
18-21 dissolve the District.
18-22 (f) If a majority of the votes in the election favor
18-23 dissolution, the Board shall:
18-24 (1) transfer the land, buildings, improvements,
18-25 equipment, and other assets that belong to the District to a county
18-26 or other governmental agency in the county in which the District is
18-27 located; or
19-1 (2) administer the property, assets, and debts until
19-2 all funds have been disposed of and all District debts have been
19-3 paid or settled.
19-4 (g) If the District transfers the land, buildings,
19-5 improvements, equipment, and other assets to a county or other
19-6 governmental agency, the county or agency assumes all debts and
19-7 obligations of the District at the time of the transfer, and the
19-8 District is dissolved.
19-9 (h) After the Board finds that the District is dissolved,
19-10 the Board shall:
19-11 (1) determine the debt owed by the District; and
19-12 (2) impose on the property included in the District's
19-13 tax rolls a tax that is in proportion of the debt to the property
19-14 value.
19-15 (i) When all outstanding debts and obligations of the
19-16 District are paid, the Board shall order the secretary to return
19-17 the pro rata share of all unused tax money to each District
19-18 taxpayer.
19-19 (j) A taxpayer may request that the taxpayer's share of
19-20 surplus tax money be credited to the taxpayer's county taxes. If a
19-21 taxpayer requests the credit, the Board shall direct the secretary
19-22 to transmit the funds to the county tax assessor-collector.
19-23 (k) After the District has paid all its debts and has
19-24 disposed of all its assets and funds as prescribed by this section,
19-25 the Board shall file a written report with the Commissioners Court
19-26 of Childress County setting forth a summary of the Board's actions
19-27 in dissolving the District.
20-1 (l) Not later than the 10th day after the date it receives
20-2 the report and determines that the requirements of this section
20-3 have been fulfilled, the Commissioners Court of Childress County
20-4 shall enter an order dissolving the District and releasing the
20-5 Board of Directors of the District from any further duty or
20-6 obligation.
20-7 (m) The District may not be dissolved unless the Board
20-8 provides for the sale or transfer of the District's assets and
20-9 liabilities to another person or entity. The dissolution of the
20-10 District and the sale or transfer of the District's assets and
20-11 liabilities may not contravene a trust indenture or bond resolution
20-12 relating to the outstanding bonds of the District. The dissolution
20-13 and sale or transfer does not diminish or impair the rights of a
20-14 holder of an outstanding bond, warrant, or other obligation of the
20-15 District.
20-16 (n) The sale or transfer of the District's assets and
20-17 liabilities must satisfy the debt and bond obligations of the
20-18 District in a manner that protects the interests of the residents
20-19 of the District, including the residents' collective property
20-20 rights in the District's assets. A grant from federal funds is an
20-21 obligation to be repaid in satisfaction. The District may not
20-22 transfer or dispose of the District's assets except for due
20-23 compensation unless the transfer is made to a governmental agency
20-24 that serves the District and the transferred assets are to be used
20-25 for the benefit of the residents of the District.
20-26 SECTION 12. The importance of this legislation and the
20-27 crowded condition of the calendars in both houses create an
21-1 emergency and an imperative public necessity that the
21-2 constitutional rule requiring bills to be read on three several
21-3 days in each house be suspended, and this rule is hereby suspended,
21-4 and that this Act take effect and be in force from and after its
21-5 passage, and it is so enacted.