1-1                                   AN ACT
 1-2     relating to the Garza County Health Care District.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 1, Chapter 502, Acts of the 60th
 1-5     Legislature, Regular Session, 1967, is amended to read as follows:
 1-6           Sec. 1.   In accordance with the provisions of Article IX,
 1-7     Section 9, Constitution of the State of Texas, this Act shall be
 1-8     operative so as to authorize the creation, establishment,
 1-9     maintenance and operation of a hospital district within the State
1-10     of Texas, to be known as the Garza County Health Care [Hospital]
1-11     District, such district to have boundaries coextensive with the
1-12     boundaries of Garza County, and said district shall have the powers
1-13     and responsibilities provided by the aforesaid constitutional
1-14     provision.
1-15           SECTION 2.  Section 3, Chapter 502, Acts of the 60th
1-16     Legislature, Regular Session, 1967, is amended to read as follows:
1-17           Sec. 3.  (a)  Within 10 days after such election is held, the
1-18     Commissioners Court of Garza County shall convene and canvass the
1-19     returns of the election, and if a majority of the legally qualified
1-20     property taxpaying electors voting at said election voted in favor
1-21     of the proposition, the court shall so find and declare the
1-22     hospital district established and created and appoint five persons
1-23     as directors of the hospital district to serve until the first
1-24     Saturday in April, at which time five directors shall be elected.
 2-1     The three directors receiving the highest vote at such first
 2-2     election shall serve for two years, the other two directors shall
 2-3     serve for one year.  Thereafter, all directors shall serve for a
 2-4     period of two years and until their successor has been duly elected
 2-5     or appointed and qualified.  To be eligible to serve [No person
 2-6     shall be appointed or elected] as a member of the board of
 2-7     directors of said [hospital] district, a person must be at least
 2-8     [unless he is a resident thereof and owns land subject to taxation
 2-9     therein and unless at the time of such election or appointment he
2-10     shall be more than] 21 years of age and [have been] a resident of
2-11     the district and must have resided in the district for at least six
2-12     months immediately preceding the date on which the person files for
2-13     election or is appointed or elected to fill a vacancy in the office
2-14     of director, as appropriate [for at least two years].  Each member
2-15     of the board of directors shall qualify by executing the
2-16     constitutional oath of office and may be required to [shall]
2-17     execute a good and sufficient bond for $1,000 payable to said
2-18     district conditioned upon the faithful performance of his duties,
2-19     and such oaths and bonds shall be deposited with the depository
2-20     bank of the district for safekeeping.  The board of directors may
2-21     pay for the bonds if required of the directors with district funds.
2-22           If the proposition to create the Garza Hospital District
2-23     fails to carry at the election, no other election for the same
2-24     purpose may be held within one year after the result of the
2-25     election is announced officially.
2-26           (b)  The board of directors shall appoint an administrator,
2-27     who may be required to [shall] execute a good and sufficient bond
 3-1     for $10,000 payable to said district conditioned upon the faithful
 3-2     performance of the person's [his] duties, and such oath and bond
 3-3     shall be deposited with the depository bank for safekeeping.  The
 3-4     board of directors may pay for the bond of the administrator with
 3-5     district funds.  The administrator shall not receive a contract for
 3-6     a specified term and may be terminated at any time by the board of
 3-7     directors.
 3-8           (c)  The board of directors shall organize by electing one of
 3-9     their number as president and by appointing one of their number as
3-10     secretary.  Any three members of the board of directors shall
3-11     constitute a quorum and a concurrence of three shall be sufficient
3-12     in all matters pertaining to the business of the district.  A
3-13     meeting of the board of directors may be called by the president or
3-14     any three directors.  Notice of the time and place of any meeting
3-15     must be given to all the directors at least 72 hours before [not
3-16     less than seven days prior to] the time of the meeting.  Nothing
3-17     herein shall prevent the board of directors from establishing by
3-18     resolution a regular time and place for meetings, for which no
3-19     special notice need be given.  All vacancies in the office of
3-20     director shall be filled for the unexpired term by appointment of
3-21     the remainder of the board of directors.  In the event the number
3-22     of directors shall be reduced to less than three for any reason the
3-23     remaining directors shall immediately call a special election to
3-24     fill said vacancies, and upon failure to do so a district court
3-25     may, upon application of any voter or taxpayer of the district,
3-26     issue a mandate requiring that such election be ordered by the
3-27     remaining directors.
 4-1           (d)  A regular election of directors shall be held on the
 4-2     first Saturday in May [April] of each year.  The election shall be
 4-3     held in accordance with the Election Code.  Notice [and notice] of
 4-4     such election shall be published in a newspaper of general
 4-5     circulation in the county one time at least 10 days prior to the
 4-6     date of the election.  Any person desiring his name to be printed
 4-7     on the ballot as a candidate for director shall file an application
 4-8     [a petition, signed by not less than 15 legally qualified voters
 4-9     asking that such name be printed on the ballot,] with the secretary
4-10     of the board of directors of the district[.  Such petition shall be
4-11     filed with such secretary] at least 45 [25] days before [prior to]
4-12     the date of election.
4-13           SECTION 3.  Section 4, Chapter 502, Acts of the 60th
4-14     Legislature, Regular Session, 1967, is amended to read as follows:
4-15           Sec. 4.  The management and control of such [hospital]
4-16     district created pursuant to the provisions of this Act is hereby
4-17     vested in the board of directors of the district who shall serve
4-18     without compensation but may be reimbursed for actual expenses
4-19     incurred in the performance of their official duties upon the
4-20     approval of such expenses by the board of directors.
4-21           SECTION 4.  Section 5, Chapter 502, Acts of the 60th
4-22     Legislature, Regular Session, 1967, is amended to read as follows:
4-23           Sec. 5.  (a)  The [Upon the creation of such hospital
4-24     district, the] board of directors shall have the power and
4-25     authority and it shall be their duty to levy a tax on all property
4-26     subject to [hospital] district taxation for the benefit of the
4-27     district.  All taxes of the district shall be assessed and
 5-1     collected as provided by Subsections (b) and (c) [at the same time
 5-2     taxes are levied for county purposes, using the county values and
 5-3     the county tax rolls, a tax of not to exceed 25 cents on the $100
 5-4     valuation of all taxable property within the hospital district, for
 5-5     the purpose of:  (1) paying the interest on and creating a sinking
 5-6     fund for warrants which may be issued by the hospital district for
 5-7     hospital purposes as herein provided; (2) providing for the
 5-8     operation and maintenance of the hospital or hospital system; and
 5-9     (3) for the purpose of making further improvements and additions to
5-10     the hospital system, and for the acquisition of necessary sites
5-11     therefor, by purchase, lease or condemnation].
5-12           (b)  The board of directors may annually impose property
5-13     taxes in an amount not to exceed the limit approved by the voters
5-14     at the election authorizing the levy of taxes.  The tax rate for
5-15     all purposes may not exceed 75 cents on each $100 valuation of all
5-16     taxable property in the district.  The taxes may be used for the
5-17     purposes provided by Subsection (c).  The district may not impose
5-18     taxes to pay the principal of or interest on revenue bonds.  The
5-19     Tax Code governs the appraisal, assessment, and collection of
5-20     district taxes.  The board may provide for the appointment of a tax
5-21     assessor-collector for the district or may contract for the
5-22     assessment and collection of taxes as provided by the Tax Code.
5-23           (c)  The taxes may be used to:
5-24                 (1)  pay the interest on and create a sinking fund for
5-25     warrants that may be issued by the district for health care
5-26     purposes;
5-27                 (2)  pay for the maintenance and operating expenses of
 6-1     the district and health care system;
 6-2                 (3)  pay for indebtedness issued or assumed by the
 6-3     district;
 6-4                 (4)  make further improvements and additions to the
 6-5     health care system; and
 6-6                 (5)  acquire necessary sites for the health care system
 6-7     by purchase, lease, or condemnation [Not later than October 1st of
 6-8     each year, the board of directors shall levy the tax on all taxable
 6-9     property within the district which is subject to taxation and shall
6-10     immediately certify such tax rate to the tax assessor and collector
6-11     of Garza County.  The tax so levied shall be collected on all
6-12     property subject to hospital district taxation by the assessor and
6-13     collector of taxes for the county on the county tax values, and in
6-14     the same manner and under the same conditions as county taxes.  The
6-15     assessor and collector of taxes shall charge and deduct from
6-16     payments to the hospital district the fees for assessing and
6-17     collecting the tax at the rate of not exceeding five percent on the
6-18     first $10,000 and two percent on all such taxes thereafter, but in
6-19     no event in excess of $5,000 for any one fiscal year.  Such fees
6-20     shall be deposited in the county's general fund, and shall be
6-21     reported as fees of office of the tax assessor and collector.
6-22     Interest and penalties on taxes paid to the hospital district shall
6-23     be the same as in the case of county taxes.  Discounts shall be the
6-24     same as for county taxes.  The residue of tax collections, after
6-25     deduction of discounts and fees for assessing and collecting, shall
6-26     be deposited in the district depository and such funds shall be
6-27     withdrawn only as provided herein. All other income of the hospital
 7-1     district shall be deposited in like manner with the district
 7-2     depository].
 7-3           (d) [(c)]  The board of directors shall have the authority to
 7-4     levy the tax aforesaid for the entire year in which the said
 7-5     [hospital] district is established [for the purpose of securing
 7-6     funds to initiate the operation of the hospital district].
 7-7           SECTION 5.  Section 6, Chapter 502, Acts of the 60th
 7-8     Legislature, Regular Session, 1967, is amended to read as follows:
 7-9           Sec. 6.  (a)  The board of directors may issue general
7-10     obligation bonds [shall have the power and authority to issue and
7-11     sell as the obligations of the hospital district, and] in the name
7-12     and upon the faith and credit of the [hospital] district to:
7-13                 (1)  purchase, construct, acquire, repair, or renovate
7-14     buildings or improvements;
7-15                 (2)  equip buildings or improvements for health care
7-16     purposes; or
7-17                 (3)  acquire and operate a mobile emergency medical or
7-18     air ambulance service.
7-19           (b)  At the time of the issuances of any general obligation
7-20     bonds by the district, [bonds for the repair or renovation of
7-21     building and improvements and equipping the same for hospital
7-22     purposes and for any and all of such purposes; provided, that] a
7-23     sufficient tax shall be levied to create an interest and sinking
7-24     fund to pay the interest and principal as same matures, provided
7-25     that the maintenance and operation tax, together with the bond tax,
7-26     shall not exceed the rate of tax approved by the voters at the
7-27     election authorizing the levy of taxes.  The district may issue
 8-1     general obligation bonds only if the bonds are authorized by a
 8-2     majority of the qualified voters of the district voting at an
 8-3     election called and held for that purpose.  The board may order a
 8-4     bond election.  The bond election shall be conducted as provided by
 8-5     Chapter 1251, Government Code.  The board shall canvass the returns
 8-6     and declare the results of the election.
 8-7           (c)  The district may issue revenue bonds for any health care
 8-8     purpose, including a purpose described by Subsection (a) of this
 8-9     section, only if the bonds are authorized by a majority of the
8-10     qualified voters of the district voting at an election called and
8-11     held for that purpose.  The bonds shall be payable from and secured
8-12     by a pledge on all or part of the revenues derived from the
8-13     operation of the district's health care system.  The bonds may be
8-14     additionally secured by a mortgage or deed of trust on all or part
8-15     of the district's property.  The revenue bonds shall be issued in
8-16     the manner provided by Sections 264.042, 264.043, 264.046, 264.047,
8-17     264.048, and 264.049, Health and Safety Code, for the issuance of
8-18     revenue bonds by county hospital authorities.
8-19           (d)  Bonds of the district [25 cents on the $100 valuation in
8-20     any one year, or such maximum amount as may hereafter be voted as
8-21     provided in Section 7 hereof.  Such bond] shall be executed in the
8-22     name of the district and on its behalf by the president of the
8-23     board of directors, and countersigned by the secretary of the board
8-24     of directors, and shall be subject to the same requirements in the
8-25     matter of approval thereof by the Attorney General of the State of
8-26     Texas and registration thereof by the Comptroller of Public
8-27     Accounts of the State of Texas as are by law provided for such
 9-1     approval and registration of bonds of such county.  Upon the
 9-2     approval of such bonds by the Attorney General of Texas the same
 9-3     shall be incontestable for any cause.  [No bonds shall be issued by
 9-4     the hospital district (except refunding bonds) until authorized by
 9-5     a majority vote of the legally qualified property taxpaying
 9-6     electors, residing in the hospital district, voting at an election
 9-7     called and held for such purpose.  Such election may be called by
 9-8     the board of directors on its own motion, shall specify the place
 9-9     or places where the election shall be held, the presiding officers
9-10     thereof, the purpose for which the bonds are to be issued, the
9-11     amount thereof, the maximum interest rate (not to exceed six
9-12     percent per annum) and the maximum maturity date of such bonds (not
9-13     to exceed 40 years from their date of issuance).  Notice of
9-14     election shall be given by publishing a substantial copy of the
9-15     order calling the election in a newspaper of general circulation in
9-16     such county once a week for two consecutive weeks prior to the date
9-17     of election, the date of the first publication being at least 14
9-18     full days prior to the date set for the election.]  The costs of
9-19     such election shall be paid by the [hospital] district.
9-20           (e)  Bonds of the district must mature not later than the
9-21     40th anniversary of the date of issuance and must bear a rate of
9-22     interest that does not exceed the amount provided by Chapter 1204,
9-23     Government Code.
9-24           (f) [(b)]  In the manner hereinabove provided, the bonds of
9-25     such [hospital] district may, without the necessity of any election
9-26     therefor, be issued for the purpose of refunding and paying off any
9-27     bonded indebtedness theretofore issued by such [hospital] district;
 10-1    such refunding bonds may be sold and the proceeds thereof applied
 10-2    to the payment of any such outstanding bonds or may be exchanged in
 10-3    whole or in part for not less than a like amount, of said
 10-4    outstanding bonds and interest matured thereon, but unpaid;
 10-5    provided the average interest cost per annum on the refunding
 10-6    bonds, computed in accordance with recognized standard bond
 10-7    interest cost tables shall not exceed the average interest cost per
 10-8    annum so computed, upon the bonds to be discharged out of the
 10-9    proceeds of the refunding bonds, unless the total interest cost on
10-10    the refunding bonds, computed to their respective maturity dates,
10-11    is less than the total interest cost so computed on the bonds to be
10-12    discharged out of such proceeds.  In the foregoing computations,
10-13    any premium or premiums required to be paid upon the bonds to be
10-14    refunded as a condition to payment in advance of their stated
10-15    maturity dates shall be taken into account as an addition to the
10-16    net interest cost to the [hospital] district of the refunding
10-17    bonds.
10-18          (g) [(c)  The board of directors shall not have the power and
10-19    authority to purchase, construct or acquire property in excess of
10-20    $25,000 without submitting the vote to the qualified taxpaying
10-21    voters of said district, and a majority of the legally qualified
10-22    property taxpaying electors participating in said election voting
10-23    in favor of the proposition shall be necessary.]
10-24          [(d)]  The [hospital] district shall not make any contract
10-25    calling for or requiring the expenditure or payment of $15,000
10-26    [$1,000] or more out of any fund or funds of said district creating
10-27    or imposing an obligation or liability of any nature or character
 11-1    upon such [hospital] district, without first submitting such
 11-2    proposed contract to competitive bids.
 11-3          SECTION 6.  Section 7, Chapter 502, Acts of the 60th
 11-4    Legislature, Regular Session, 1967, is amended to read as follows:
 11-5          Sec. 7.   The board of directors shall have the authority to
 11-6    call an election on the question of whether or not the tax
 11-7    hereinabove provided for shall be increased to a specified rate
 11-8    allowed by law on the $100 valuation of all taxable property within
 11-9    the [hospital] district, if and when the board of directors
11-10    determines that an increase in such tax rate is necessary to carry
11-11    out the purposes for which the initial tax rate was authorized.
11-12    Said election shall be held in the same manner as the election for
11-13    [the creation of the district and] the levy of the initial tax as
11-14    hereinabove provided.
11-15          SECTION 7.  Section 8, Chapter 502, Acts of the 60th
11-16    Legislature, Regular Session, 1967, is amended by amending
11-17    Subsection (a) and by adding Subsections (d) through (l) to read as
11-18    follows:
11-19          (a)  The board of directors of the district shall have the
11-20    power to prescribe the method and manner of making purchases and
11-21    expenditures by and for the [hospital] district, and also shall
11-22    prescribe all accounting and control procedures; the method of
11-23    purchasing necessary supplies, materials and equipment; and shall
11-24    have the power to adopt a seal for such district; and may employ a
11-25    general manager, and such professional and clerical assistance as
11-26    may be necessary.
11-27          (d)  The board of directors may purchase or lease property,
 12-1    facilities, or equipment for the district to use in the health care
 12-2    system and may mortgage or pledge the property, facilities, or
 12-3    equipment as security for the payment of the purchase price.
 12-4          (e)  The board of directors may enter into one or more
 12-5    contracts to provide administrative and other personnel for the
 12-6    operation of the health care facilities for a term not to exceed
 12-7    five years.
 12-8          (f)  The board of directors may transfer district health care
 12-9    facilities by lease to individuals, corporations, or other legal
12-10    entities for a term not to exceed 20 years.
12-11          (g)  The board of directors may sell or otherwise dispose of
12-12    the district's property, facilities, and equipment.
12-13          (h)  The board of directors may provide retirement benefits
12-14    for the employees of the district by establishing or administering
12-15    a retirement program or electing to participate in the Texas County
12-16    and District Retirement System or any other statewide retirement
12-17    system in which the district is eligible to participate.
12-18          (i)  The board of directors may spend district funds to
12-19    recruit physicians, nurses, and other trained medical personnel.
12-20    The board of directors may contract with one or more full-time
12-21    medical students or other students in a health occupation, each of
12-22    whom is enrolled in good standing in an accredited medical school,
12-23    college, or university, to pay the student's tuition or other
12-24    expenses in consideration of the student's contractual agreement to
12-25    serve as an employee or independent contractor for the district
12-26    under terms prescribed by the contract.
12-27          (j)  The board of directors may institute a suit to enforce
 13-1    the payment of taxes and to foreclose liens to secure the payment
 13-2    of taxes due to the district.
 13-3          (k)  The board of directors may spend district funds to
 13-4    support emergency medical services in the county.
 13-5          (l)  The board of directors may provide access to medical
 13-6    care to nonindigent residents of Garza County if the nonindigent
 13-7    residents are charged the reasonable and customary cost of
 13-8    services.
 13-9          SECTION 8.  Section 9, Chapter 502, Acts of the 60th
13-10    Legislature, Regular Session, 1967, is amended to read as follows:
13-11          Sec. 9.  (a)  The fiscal year of the [hospital] district
13-12    authorized to be established by the provisions hereof shall
13-13    commence on October 1st of each year and end on September 30th of
13-14    the following year.  The district directors shall cause an annual
13-15    independent audit to be made of the books and records of the
13-16    district, such audit to be made covering such fiscal year[, and the
13-17    same shall be filed with the Comptroller of Public Accounts of the
13-18    State of Texas and at the office of the district not later than
13-19    December 31st of each year].
13-20          (b)  The board of directors shall each year cause a budget to
13-21    be prepared showing the proposed expenditures and disbursements and
13-22    the estimated receipts and collections for the following fiscal
13-23    year and shall hold a public hearing on the proposed budget after
13-24    publication of a notice of hearing in a newspaper of general
13-25    circulation in the county in accordance with Chapter 551,
13-26    Government Code [at least once not less than 10 days prior to the
13-27    date set for the hearing].  Any person who is a resident [taxpayer]
 14-1    of the district shall have the right to appear at the time and
 14-2    place designated in the notice and be heard with reference to any
 14-3    item shown in the proposed budget.  The proposed budget shall also
 14-4    show the amount of taxes required to be levied and collected during
 14-5    such fiscal year and upon final approval of the budget, the board
 14-6    of directors shall levy such tax as may be required and certify the
 14-7    tax rate for such year to the county tax assessor and collector as
 14-8    provided in Section 5 hereof, and it shall be the duty of the said
 14-9    tax assessor and collector to assess and collect such tax.
14-10          SECTION 9.  Section 10, Chapter 502, Acts of the 60th
14-11    Legislature, Regular Session, 1967, is amended to read as follows:
14-12          Sec. 10.   Within 30 days after appointment and qualification
14-13    of the board of directors of the [hospital] district, the said
14-14    directors shall by resolution designate a bank or banks [within
14-15    Garza County] as the district's depository or treasurer and all
14-16    funds of the district shall be secured in the manner now provided
14-17    for the security of county funds.  The depository shall serve for a
14-18    period of two years and until a successor has been named.
14-19          SECTION 10.  Section 11, Chapter 502, Acts of the 60th
14-20    Legislature, Regular Session, 1967, is amended to read as follows:
14-21          Sec. 11.   The [hospital] district established or maintained
14-22    under the provisions of this Act shall be subject to inspection by
14-23    any duly authorized representative of the Texas Department [State
14-24    Board] of Health [or any State Board of Charities (or Public
14-25    Welfare) that now exists or that may be hereafter created], and any
14-26    resident officers shall admit such representatives into all
14-27    [hospital] district facilities and give them access on demand to
 15-1    all records, reports, books, papers, and accounts pertaining to the
 15-2    [hospital] district.
 15-3          SECTION 11.  Section 12, Chapter 502, Acts of the 60th
 15-4    Legislature, Regular Session, 1967, is amended to read as follows:
 15-5          Sec. 12.   After the [hospital] district has been organized
 15-6    pursuant to this Act, neither Garza County nor any city therein
 15-7    shall levy any tax for health care [hospital] purposes; and such
 15-8    [hospital] district shall be deemed to have assumed full
 15-9    responsibility for the furnishing of medical and health [hospital]
15-10    care for the needy and indigent persons residing in said [hospital]
15-11    district from the date that taxes are collected for the [hospital]
15-12    district.
15-13          SECTION 12.  Section 13, Chapter 502, Acts of the 60th
15-14    Legislature, Regular Session, 1967, is amended to read as follows:
15-15          Sec. 13.   Whenever a patient claiming indigence has been
15-16    admitted to the facilities of the [hospital] district, the
15-17    directors shall cause inquiry to be made as to the patient's [his]
15-18    circumstances, and of the relatives of such patients legally liable
15-19    for the patient's [his] support.  If it is found that such patient
15-20    or said relatives are liable to pay for the patient's [his] care
15-21    and treatment in whole or in part, an order shall be made directing
15-22    such patient, or said relatives, to pay to the treasurer of the
15-23    [hospital] district for the support of such patient a specified sum
15-24    per week, in proportion to their financial ability, but such sum
15-25    shall not exceed the actual per capita cost of maintenance.  The
15-26    district shall have power and authority to collect such sum from
15-27    the estate of the patient, or the patient's [his] relatives legally
 16-1    liable for the patient's [his] support, in the manner provided by
 16-2    law for the collection of expenses of the last illness of a
 16-3    deceased person. If the agent designated by the district to handle
 16-4    such affairs finds that such patient or said relatives are not able
 16-5    to pay, either in whole or in part, for the patient's [his] care
 16-6    and treatment in such health care facility [hospital], the same
 16-7    shall become a charge upon the [hospital] district.  Should there
 16-8    be a dispute as to the ability to pay, or doubt in the mind of the
 16-9    person designated as aforesaid, the district's directors shall hear
16-10    and determine same, after calling witnesses, and shall make such
16-11    order as may be proper, from which appeal shall lie to the district
16-12    court.
16-13          SECTION 13.  Section 14, Chapter 502, Acts of the 60th
16-14    Legislature, Regular Session, 1967, is amended to read as follows:
16-15          Sec. 14.   The board of directors of the [hospital] district
16-16    is authorized on behalf of said [hospital] district to accept
16-17    donations, gifts and endowments for the [hospital] district to be
16-18    held in trust and administered by the board of directors for such
16-19    purposes and under such direction, limitations, and provisions as
16-20    may be prescribed in writing by donor, not inconsistent with proper
16-21    management and objects of the [hospital] district.
16-22          SECTION 14.  Section 16, Chapter 502, Acts of the 60th
16-23    Legislature, Regular Session, 1967, is amended to read as follows:
16-24          Sec. 16.   The [hospital] district authorized to be created
16-25    under the provisions of this Act shall be and is declared to be
16-26    political subdivision of the State of Texas, and as a governmental
16-27    agency may sue and be sued in any and all courts of this state in
 17-1    the name of such district.  In addition, all property owned by said
 17-2    district shall be held for public purposes and shall be exempt from
 17-3    taxation of every character.
 17-4          SECTION 15.   Chapter 502, Acts of the 60th Legislature,
 17-5    Regular Session, 1967, is amended by adding Sections 16A and 16B to
 17-6    read as follows:
 17-7          Sec. 16A.  (a)  The board of directors may borrow money at a
 17-8    rate not to exceed the maximum annual percentage rate allowed by
 17-9    law for district obligations at the time of the loan.
17-10          (b)  To secure a loan, the board of directors may pledge:
17-11                (1)  the revenues of the district that are not pledged
17-12    to pay the bonded indebtedness of the district;
17-13                (2)  district taxes to be levied by the district during
17-14    the 12-month period following the date of the pledge that are not
17-15    pledged to pay the principal of or interest on district bonds; or
17-16                (3)  district bonds that have been authorized but not
17-17    sold.
17-18          (c)  A loan for which taxes or bonds are pledged shall mature
17-19    not later  than the first anniversary of the date on which the loan
17-20    is made.  A loan for which district revenues are pledged shall
17-21    mature not later than the fifth anniversary of the date on which
17-22    the loan is made.
17-23          Sec. 16B.  (a)  The district may be dissolved only if the
17-24    dissolution is approved by a majority of the qualified voters of
17-25    the district voting in an election called and held for that
17-26    purpose.
17-27          (b)  The board of directors may order an election on the
 18-1    question of dissolving the district and disposing of the district's
 18-2    assets and obligations.  The board of directors shall order an
 18-3    election if the board receives a petition requesting an election
 18-4    that is signed by a number of registered voters of the district
 18-5    equal to at least 10 percent of the registered voters in the
 18-6    district.
 18-7          (c)  The election shall be held not later than the 60th day
 18-8    after the date the election is ordered.  Section 41.001(a),
 18-9    Election Code, does not apply to an election ordered under this
18-10    section.  The order calling the election shall state:
18-11                (1)  the nature of the election, including the
18-12    proposition that is to appear on the ballot;
18-13                (2)  the date of the election;
18-14                (3)  the hours during which the polls will be open; and
18-15                (4)  the location of the polling places.
18-16          (d)  The board of directors shall give notice of the election
18-17    by publishing a substantial copy of the election order in a
18-18    newspaper of general circulation in the district once a week for
18-19    two consecutive weeks.  The first publication must appear not fewer
18-20    than 35 days before the date set for the election.  The ballot for
18-21    the election shall be printed to permit voting for or against the
18-22    proposition: "The dissolution of the Garza County Health Care
18-23    District."
18-24          (e)  If a majority of the votes in the election favor
18-25    dissolution, the board of directors shall find that the district is
18-26    dissolved.  If a majority of the votes in the election do not favor
18-27    dissolution, the board of directors shall continue to administer
 19-1    the district, and another election on the question of dissolution
 19-2    may not be held before the first anniversary of the most recent
 19-3    election to dissolve the district.
 19-4          (f)  If a majority of the votes in the election favor
 19-5    dissolution, the board of directors shall:
 19-6                (1)  transfer the land, buildings, improvements,
 19-7    equipment, and other assets that belong to the district to Garza
 19-8    County or another governmental entity in Garza County;
 19-9                (2)  sell the assets and liabilities to another person
19-10    or entity; or
19-11                (3)  administer the property, assets, and debts until
19-12    all funds have been disposed of and all district debts have been
19-13    paid or settled.
19-14          (g)  If the district transfers the land, buildings,
19-15    improvements, equipment, and other assets to Garza County or
19-16    another governmental entity in Garza County, the county or entity
19-17    assumes all debts and obligations of the district at the time of
19-18    the transfer, at which time the district is dissolved.  If the
19-19    district does not transfer the land, buildings, improvements,
19-20    equipment, and other assets to Garza County or another governmental
19-21    entity in Garza County, or sell those assets and the liabilities to
19-22    another person or entity, the board of directors shall administer
19-23    the property, assets, and debts of the district until all funds
19-24    have been disposed of and all district debts have been paid or
19-25    settled, at which time the district is dissolved.
19-26          (h)  After the board of directors finds that the district is
19-27    dissolved, the board of directors shall:
 20-1                (1)  determine the debt owed by the district; and
 20-2                (2)  impose on the property included in the district's
 20-3    tax rolls a tax that is in proportion of the debt to the property
 20-4    value.
 20-5          (i)  When all outstanding debts and obligations of the
 20-6    district are paid, the board of directors shall order the secretary
 20-7    to return the pro rata share of all unused tax money to each
 20-8    district taxpayer.
 20-9          (j)  A taxpayer may request that the taxpayer's share of
20-10    surplus tax money be credited to the taxpayer's county taxes.  If a
20-11    taxpayer requests the credit, the board of directors shall direct
20-12    the secretary to transmit the funds to the county tax
20-13    assessor-collector.
20-14          (k)  After the district has paid all its debts and has
20-15    disposed of all its assets and funds as prescribed by this section,
20-16    the board of directors shall file a written report with the
20-17    Commissioners Court of Garza County setting forth a summary of the
20-18    board of directors' actions in dissolving the district.
20-19          (l)  Not later than the 10th day after the date it receives
20-20    the report and determines that the requirements of this section
20-21    have been fulfilled, the Commissioners Court of Garza County shall
20-22    enter an order dissolving the district and releasing the board of
20-23    directors from any further duty or obligation.
20-24          (m)  The district may provide for the sale or transfer of the
20-25    district's assets and liabilities to another person or entity and
20-26    the district's subsequent dissolution.  The dissolution of the
20-27    district and the sale or transfer of the district's assets and
 21-1    liabilities to another person or entity may not contravene a trust
 21-2    indenture or bond resolution relating to the outstanding bonds of
 21-3    the district.  The dissolution and sale or transfer does not
 21-4    diminish or impair the rights of a holder of an outstanding bond,
 21-5    warrant, or other obligation of the district.
 21-6          (n)  The sale or transfer of the district's assets and
 21-7    liabilities must satisfy the debt and bond obligations of the
 21-8    district in a manner that protects the interests of the residents
 21-9    of the district, including the residents' collective property
21-10    rights in the district's assets.  A grant from federal funds is an
21-11    obligation to be repaid in satisfaction.  The district may not
21-12    transfer or dispose of the district's assets except for due
21-13    compensation unless the transfer is made to another governmental
21-14    entity that serves the district and the transferred assets are to
21-15    be used for the benefit of the residents of the district.
21-16          SECTION 16.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2477 was passed by the House on May
         1, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2477 was passed by the Senate on May
         23, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor