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