By Counts                                             H.B. No. 2477
         77R4008 YDB-D                           
                                A BILL TO BE ENTITLED
 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 health care [hospital] district
1-10     within the State of Texas, to be known as the Garza County Health
1-11     Care [Hospital] District, such district to have boundaries
1-12     coextensive with the boundaries of Garza County, and said district
1-13     shall have the powers and responsibilities provided by the
1-14     aforesaid constitutional 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.  No person shall be appointed or
 2-6     elected as a member of the board of directors of said health care
 2-7     [hospital] district unless the person [he] is a resident of the
 2-8     district [thereof and owns land subject to taxation therein and
 2-9     unless at the time of such election or appointment he shall be more
2-10     than 21 years of age and have been a resident of the district for
2-11     at least two years].  Each member of the board of directors shall
2-12     qualify by executing the constitutional oath of office and may be
2-13     required to [shall] execute a good and sufficient bond for $1,000
2-14     payable to said district conditioned upon the faithful performance
2-15     of his duties, and such oaths and bonds shall be deposited with the
2-16     depository bank of the district for safekeeping.  The board of
2-17     directors may pay for the bonds if required of the directors with
2-18     district funds.
2-19           If the proposition to create the Garza Hospital District
2-20     fails to carry at the election, no other election for the same
2-21     purpose may be held within one year after the result of the
2-22     election is announced officially.
2-23           (b)  The board of directors shall appoint an administrator,
2-24     who may be required to [shall] execute a good and sufficient bond
2-25     for $10,000 payable to said district conditioned upon the faithful
2-26     performance of his duties, and such oath and bond shall be
2-27     deposited with the depository bank for safekeeping.  The board of
 3-1     directors may pay for the bond of the administrator with district
 3-2     funds.  The administrator shall not receive a contract for a
 3-3     specified term and may be terminated at any time by the board of
 3-4     directors.
 3-5           (c)  The board of directors shall organize by electing one of
 3-6     their number as president and by appointing one of their number as
 3-7     secretary.  Any three members of the board of directors shall
 3-8     constitute a quorum and a concurrence of three shall be sufficient
 3-9     in all matters pertaining to the business of the district.  A
3-10     meeting of the board of directors may be called by the president or
3-11     any three directors.  Notice of the time and place of any meeting
3-12     must be given to all the directors not less than seven days prior
3-13     to the time of the meeting.  Nothing herein shall prevent the board
3-14     of directors from establishing by resolution a regular time and
3-15     place for meetings, for which no special notice need be given.  All
3-16     vacancies in the office of director shall be filled for the
3-17     unexpired term by appointment of the remainder of the board of
3-18     directors.  In the event the number of directors shall be reduced
3-19     to less than three for any reason the remaining directors shall
3-20     immediately call a special election to fill said vacancies, and
3-21     upon failure to do so a district court may, upon application of any
3-22     voter or taxpayer of the district, issue a mandate requiring that
3-23     such election be ordered by the remaining directors.
3-24           (d)  A regular election of directors shall be held on the
3-25     first Saturday in May [April] of each year.  The election shall be
3-26     held in accordance with the Election Code.  Notice [and notice] of
3-27     such election shall be published in a newspaper of general
 4-1     circulation in the county one time at least 10 days prior to the
 4-2     date of the election.  Any person desiring his name to be printed
 4-3     on the ballot as a candidate for director shall file an application
 4-4     [a petition, signed by not less than 15 legally qualified voters
 4-5     asking that such name be printed on the ballot,] with the secretary
 4-6     of the board of directors of the district[.  Such petition shall be
 4-7     filed with such secretary] at least 45 [25] days before [prior to]
 4-8     the date of election.
 4-9           SECTION 3.  Section 4, Chapter 502, Acts of the 60th
4-10     Legislature, Regular Session, 1967, is amended to read as follows:
4-11           Sec. 4.  The management and control of such health care
4-12     [hospital] district created pursuant to the provisions of this Act
4-13     is hereby vested in the board of directors of the district who
4-14     shall serve without compensation but may be reimbursed for actual
4-15     expenses incurred in the performance of their official duties upon
4-16     the approval of such expenses by the board of directors.
4-17           SECTION 4.  Section 5, Chapter 502, Acts of the 60th
4-18     Legislature, Regular Session, 1967, is amended to read as follows:
4-19           Sec. 5.  (a)  The [Upon the creation of such hospital
4-20     district, the] board of directors shall have the power and
4-21     authority and it shall be their duty to levy a tax on all property
4-22     subject to health care [hospital] district taxation for the benefit
4-23     of the district.  All taxes of the district shall be assessed and
4-24     collected as provided by Subsections (b) and (c) [at the same time
4-25     taxes are levied for county purposes, using the county values and
4-26     the county tax rolls, a tax of not to exceed 25 cents on the $100
4-27     valuation of all taxable property within the hospital district, for
 5-1     the purpose of:  (1) paying the interest on and creating a sinking
 5-2     fund for warrants which may be issued by the hospital district for
 5-3     hospital purposes as herein provided; (2) providing for the
 5-4     operation and maintenance of the hospital or hospital system; and
 5-5     (3) for the purpose of making further improvements and additions to
 5-6     the hospital system, and for the acquisition of necessary sites
 5-7     therefor, by purchase, lease or condemnation].
 5-8           (b)  The board of directors may annually impose property
 5-9     taxes in an amount not to exceed the limit approved by the voters
5-10     at the election authorizing the levy of taxes.  The tax rate for
5-11     all purposes may not exceed 75 cents on each $100 valuation of all
5-12     taxable property in the district.  The taxes may be used for the
5-13     purposes provided by Subsection (c).  The district may not impose
5-14     taxes to pay the principal of or interest on revenue bonds.  The
5-15     Tax Code governs the appraisal, assessment, and collection of
5-16     district taxes.  The board may provide for the appointment of a tax
5-17     assessor-collector for the district or may contract for the
5-18     assessment and collection of taxes as provided by the Tax Code.
5-19           (c)  The taxes may be used to:
5-20                 (1)  pay the interest on and create a sinking fund for
5-21     warrants that may be issued by the health care district for health
5-22     care purposes;
5-23                 (2)  pay for the maintenance and operating expenses of
5-24     the health care district and health care system;
5-25                 (3)  pay for indebtedness issued or assumed by the
5-26     health care district;
5-27                 (4)  make further improvements and additions to the
 6-1     health care system; and
 6-2                 (5)  acquire necessary sites for the health care system
 6-3     by purchase, lease, or condemnation [Not later than October 1st of
 6-4     each year, the board of directors shall levy the tax on all taxable
 6-5     property within the district which is subject to taxation and shall
 6-6     immediately certify such tax rate to the tax assessor and collector
 6-7     of Garza County.  The tax so levied shall be collected on all
 6-8     property subject to hospital district taxation by the assessor and
 6-9     collector of taxes for the county on the county tax values, and in
6-10     the same manner and under the same conditions as county taxes.  The
6-11     assessor and collector of taxes shall charge and deduct from
6-12     payments to the hospital district the fees for assessing and
6-13     collecting the tax at the rate of not exceeding five percent on the
6-14     first $10,000 and two percent on all such taxes thereafter, but in
6-15     no event in excess of $5,000 for any one fiscal year.  Such fees
6-16     shall be deposited in the county's general fund, and shall be
6-17     reported as fees of office of the tax assessor and collector.
6-18     Interest and penalties on taxes paid to the hospital district shall
6-19     be the same as in the case of county taxes.  Discounts shall be the
6-20     same as for county taxes.  The residue of tax collections, after
6-21     deduction of discounts and fees for assessing and collecting, shall
6-22     be deposited in the district depository and such funds shall be
6-23     withdrawn only as provided herein.  All other income of the
6-24     hospital district shall be deposited in like manner with the
6-25     district depository].
6-26           (d) [(c)]  The board of directors shall have the authority to
6-27     levy the tax aforesaid for the entire year in which the said health
 7-1     care [hospital] district is established [for the purpose of
 7-2     securing funds to initiate the operation of the hospital district].
 7-3           SECTION 5.  Section 6, Chapter 502, Acts of the 60th
 7-4     Legislature, Regular Session, 1967, is amended to read as follows:
 7-5           Sec. 6.  (a)  The board of directors may issue general
 7-6     obligation bonds [shall have the power and authority to issue and
 7-7     sell as the obligations of the hospital district, and] in the name
 7-8     and upon the faith and credit of the health care [hospital]
 7-9     district to:
7-10                 (1)  purchase, construct, acquire, repair, or renovate
7-11     buildings or improvements;
7-12                 (2)  equip buildings or improvements for hospital
7-13     purposes; or
7-14                 (3)  acquire and operate a mobile emergency medical or
7-15     air ambulance service.
7-16           (b)  At the time of the issuances of any general obligation
7-17     bonds by the district, [bonds for the repair or renovation of
7-18     building and improvements and equipping the same for hospital
7-19     purposes and for any and all of such purposes; provided, that] a
7-20     sufficient tax shall be levied to create an interest and sinking
7-21     fund to pay the interest and principal as same matures, provided
7-22     that the maintenance and operation tax, together with the bond tax,
7-23     shall not exceed the rate of tax approved by the voters at the
7-24     election authorizing the levy of taxes.  The district may issue
7-25     general obligation bonds only if the bonds are authorized by a
7-26     majority of the qualified voters of the district voting at an
7-27     election called and held for that purpose.  The board may order a
 8-1     bond election.  The bond election shall be conducted as provided by
 8-2     Chapter 1251, Government Code.  The board shall canvass the returns
 8-3     and declare the results of the election.
 8-4           (c)  The district may issue revenue bonds for any health care
 8-5     purpose, including a purpose described by Subsection (a) of this
 8-6     section, only if the bonds are authorized by a majority of the
 8-7     qualified voters of the district voting at an election called and
 8-8     held for that purpose.  The bonds shall be payable from and secured
 8-9     by a pledge on all or part of the revenues derived from the
8-10     operation of the district's health care system.  The bonds may be
8-11     additionally secured by a mortgage or deed of trust on all or part
8-12     of the district's property.  The revenue bonds shall be issued in
8-13     the manner provided by Sections 264.042, 264.043, 264.046, 264.047,
8-14     264.048, and 264.049, Health and Safety Code, for the issuance of
8-15     revenue bonds by county hospital authorities.
8-16           (d)  Bonds of the district [25 cents on the $100 valuation in
8-17     any one year, or such maximum amount as may hereafter be voted as
8-18     provided in Section 7 hereof.  Such bond] shall be executed in the
8-19     name of the district and on its behalf by the president of the
8-20     board of directors, and countersigned by the secretary of the board
8-21     of directors, and shall be subject to the same requirements in the
8-22     matter of approval thereof by the Attorney General of the State of
8-23     Texas and registration thereof by the Comptroller of Public
8-24     Accounts of the State of Texas as are by law provided for such
8-25     approval and registration of bonds of such county.  Upon the
8-26     approval of such bonds by the Attorney General of Texas the same
8-27     shall be incontestable for any cause.  [No bonds shall be issued by
 9-1     the hospital district (except refunding bonds) until authorized by
 9-2     a majority vote of the legally qualified property taxpaying
 9-3     electors, residing in the hospital district, voting at an election
 9-4     called and held for such purpose.  Such election may be called by
 9-5     the board of directors on its own motion, shall specify the place
 9-6     or places where the election shall be held, the presiding officers
 9-7     thereof, the purpose for which the bonds are to be issued, the
 9-8     amount thereof, the maximum interest rate (not to exceed six
 9-9     percent per annum) and the maximum maturity date of such bonds (not
9-10     to exceed 40 years from their date of issuance).  Notice of
9-11     election shall be given by publishing a substantial copy of the
9-12     order calling the election in a newspaper of general circulation in
9-13     such county once a week for two consecutive weeks prior to the date
9-14     of election, the date of the first publication being at least 14
9-15     full days prior to the date set for the election.]  The costs of
9-16     such election shall be paid by the health care [hospital] district.
9-17           (e)  Bonds of the district must mature not later than the
9-18     40th anniversary of the date of issuance and must bear a rate of
9-19     interest that does not exceed the amount provided by Chapter 1204,
9-20     Government Code.
9-21           (f) [(b)]  In the manner hereinabove provided, the bonds of
9-22     such health care [hospital] district may, without the necessity of
9-23     any election therefor, be issued for the purpose of refunding and
9-24     paying off any bonded indebtedness theretofore issued by such
9-25     health care [hospital] district; such refunding bonds may be sold
9-26     and the proceeds thereof applied to the payment of any such
9-27     outstanding bonds or may be exchanged in whole or in part for not
 10-1    less than a like amount, of said outstanding bonds and interest
 10-2    matured thereon, but unpaid; provided the average interest cost per
 10-3    annum on the refunding bonds, computed in accordance with
 10-4    recognized standard bond interest cost tables shall not exceed the
 10-5    average interest cost per annum so computed, upon the bonds to be
 10-6    discharged out of the proceeds of the refunding bonds, unless the
 10-7    total interest cost on the refunding bonds, computed to their
 10-8    respective maturity dates, is less than the total interest cost so
 10-9    computed on the bonds to be discharged out of such proceeds.  In
10-10    the foregoing computations, any premium or premiums required to be
10-11    paid upon the bonds to be refunded as a condition to payment in
10-12    advance of their stated maturity dates shall be taken into account
10-13    as an addition to the net interest cost to the health care
10-14    [hospital] district of the refunding bonds.
10-15          (g) [(c)  The board of directors shall not have the power and
10-16    authority to purchase, construct or acquire property in excess of
10-17    $25,000 without submitting the vote to the qualified taxpaying
10-18    voters of said district, and a majority of the legally qualified
10-19    property taxpaying electors participating in said election voting
10-20    in favor of the proposition shall be necessary.]
10-21          [(d)]  The health care [hospital] district shall not make any
10-22    contract calling for or requiring the expenditure or payment of
10-23    $15,000 [$1,000] or more out of any fund or funds of said district
10-24    creating or imposing an obligation or liability of any nature or
10-25    character upon such health care [hospital] district, without first
10-26    submitting such proposed contract to competitive bids.
10-27          SECTION 6.  Section 7, Chapter 502, Acts of the 60th
 11-1    Legislature, Regular Session, 1967, is amended to read as follows:
 11-2          Sec. 7.   The board of directors shall have the authority to
 11-3    call an election on the question of whether or not the tax
 11-4    hereinabove provided for shall be increased to a specified rate
 11-5    allowed by law on the $100 valuation of all taxable property within
 11-6    the health care [hospital] district, if and when the board of
 11-7    directors determines that an increase in such tax rate is necessary
 11-8    to carry out the purposes for which the initial tax rate was
 11-9    authorized.  Said election shall be held in the same manner as the
11-10    election for [the creation of the district and] the levy of the
11-11    initial tax as hereinabove provided.
11-12          SECTION 7.  Section 8, Chapter 502, Acts of the 60th
11-13    Legislature, Regular Session, 1967, is amended by amending
11-14    Subsection (a) and by adding Subsections (d) through (j) to read as
11-15    follows:
11-16          (a)  The board of directors of the health care district shall
11-17    have the power to prescribe the method and manner of making
11-18    purchases and expenditures by and for the [hospital] district, and
11-19    also shall prescribe all accounting and control procedures; the
11-20    method of purchasing necessary supplies, materials and equipment;
11-21    and shall have the power to adopt a seal for such district; and may
11-22    employ a general manager, and such professional and clerical
11-23    assistance as may be necessary.
11-24          (d)  The board of directors may purchase or lease property,
11-25    facilities, or equipment for the district to use in the health care
11-26    system and may mortgage or pledge the property, facilities, or
11-27    equipment as security for the payment of the purchase price.
 12-1          (e)  The board of directors may enter into one or more
 12-2    contracts to provide administrative and other personnel for the
 12-3    operation of the health care facilities.  The term of a contract
 12-4    may not exceed 25 years from the date on which the contract is
 12-5    entered.  The board of directors may transfer district health care
 12-6    facilities by lease to individuals, corporations, or other legal
 12-7    entities and may sell or otherwise dispose of the district's
 12-8    property, facilities, and equipment.
 12-9          (f)  The board of directors may provide retirement benefits
12-10    for the employees of the district by establishing or administering
12-11    a retirement program or electing to participate in the Texas County
12-12    and District Retirement System or any other statewide retirement
12-13    system in which the district is eligible to participate.
12-14          (g)  The board of directors may spend district funds to
12-15    recruit physicians, nurses, and other trained medical personnel.
12-16    The board of directors may contract with one or more full-time
12-17    medical students or other students in a health occupation, each of
12-18    whom is enrolled in good standing in an accredited medical school,
12-19    college, or university, to pay the student's tuition or other
12-20    expenses in consideration of the student's contractual agreement to
12-21    serve as an employee or independent contractor for the district
12-22    under terms prescribed by the contract.
12-23          (h)  The board of directors may institute a suit to enforce
12-24    the payment of taxes and to foreclose liens to secure the payment
12-25    of taxes due to the district.
12-26          (i)  The board of directors may spend district funds to
12-27    support emergency medical services in the county.
 13-1          (j)  The board of directors may provide access to medical
 13-2    care to nonindigent residents of Garza County if the nonindigent
 13-3    residents are charged the reasonable and customary cost of
 13-4    services.
 13-5          SECTION 8.  Section 9, Chapter 502, Acts of the 60th
 13-6    Legislature, Regular Session, 1967, is amended to read as follows:
 13-7          Sec. 9.  (a)  The fiscal year of the health care [hospital]
 13-8    district authorized to be established by the provisions hereof
 13-9    shall commence on October 1st of each year and end on September
13-10    30th of the following year.  The district directors shall cause an
13-11    annual independent audit to be made of the books and records of the
13-12    district, such audit to be made covering such fiscal year[, and the
13-13    same shall be filed with the Comptroller of Public Accounts of the
13-14    State of Texas and at the office of the district not later than
13-15    December 31st of each year].
13-16          (b)  The board of directors shall each year cause a budget to
13-17    be prepared showing the proposed expenditures and disbursements and
13-18    the estimated receipts and collections for the following fiscal
13-19    year and shall hold a public hearing on the proposed budget after
13-20    publication of a notice of hearing in a newspaper of general
13-21    circulation in the county in accordance with Chapter 551,
13-22    Government Code [at least once not less than 10 days prior to the
13-23    date set for the hearing].  Any person who is a resident [taxpayer]
13-24    of the district shall have the right to appear at the time and
13-25    place designated in the notice and be heard with reference to any
13-26    item shown in the proposed budget.  The proposed budget shall also
13-27    show the amount of taxes required to be levied and collected during
 14-1    such fiscal year and upon final approval of the budget, the board
 14-2    of directors shall levy such tax as may be required and certify the
 14-3    tax rate for such year to the county tax assessor and collector as
 14-4    provided in Section 5 hereof, and it shall be the duty of the said
 14-5    tax assessor and collector to assess and collect such tax.
 14-6          SECTION 9.  Section 10, Chapter 502, Acts of the 60th
 14-7    Legislature, Regular Session, 1967, is amended to read as follows:
 14-8          Sec. 10.   Within 30 days after appointment and qualification
 14-9    of the board of directors of the health care [hospital] district,
14-10    the said directors shall by resolution designate a bank or banks
14-11    [within Garza County] as the district's depository or treasurer and
14-12    all funds of the district shall be secured in the manner now
14-13    provided for the security of county funds.  The depository shall
14-14    serve for a period of two years and until a successor has been
14-15    named.
14-16          SECTION 10.  Section 11, Chapter 502, Acts of the 60th
14-17    Legislature, Regular Session, 1967, is amended to read as follows:
14-18          Sec. 11.   The health care [hospital] district established or
14-19    maintained under the provisions of this Act shall be subject to
14-20    inspection by any duly authorized representative of the Texas
14-21    Department [State Board] of Health [or any State Board of Charities
14-22    (or Public Welfare) that now exists or that may be hereafter
14-23    created], and any resident officers shall admit such
14-24    representatives into all health care [hospital] district facilities
14-25    and give them access on demand to all records, reports, books,
14-26    papers, and accounts pertaining to the health care [hospital]
14-27    district.
 15-1          SECTION 11.  Section 12, Chapter 502, Acts of the 60th
 15-2    Legislature, Regular Session, 1967, is amended to read as follows:
 15-3          Sec. 12.   After the health care [hospital] district has been
 15-4    organized pursuant to this Act, neither Garza County nor any city
 15-5    therein shall levy any tax for health care [hospital] purposes; and
 15-6    such [hospital] district shall be deemed to have assumed full
 15-7    responsibility for the furnishing of medical and health [hospital]
 15-8    care for the needy and indigent persons residing in said health
 15-9    care [hospital] district from the date that taxes are collected for
15-10    the health care [hospital] district.
15-11          SECTION 12.  Section 13, Chapter 502, Acts of the 60th
15-12    Legislature, Regular Session, 1967, is amended to read as follows:
15-13          Sec. 13.   Whenever a patient claiming indigence has been
15-14    admitted to the facilities of the health care [hospital] district,
15-15    the directors shall cause inquiry to be made as to the patient's
15-16    [his] circumstances, and of the relatives of such patients legally
15-17    liable for the patient's [his] support.  If it is found that such
15-18    patient or said relatives are liable to pay for the patient's [his]
15-19    care and treatment in whole or in part, an order shall be made
15-20    directing such patient, or said relatives, to pay to the treasurer
15-21    of the health care [hospital] district for the support of such
15-22    patient a specified sum per week, in proportion to their financial
15-23    ability, but such sum shall not exceed the actual per capita cost
15-24    of maintenance.  The district shall have power and authority to
15-25    collect such sum from the estate of the patient, or the patient's
15-26    [his] relatives legally liable for the patient's [his] support, in
15-27    the manner provided by law for the collection of expenses of the
 16-1    last illness of a deceased person. If the agent designated by the
 16-2    district to handle such affairs finds that such patient or said
 16-3    relatives are not able to pay, either in whole or in part, for the
 16-4    patient's [his] care and treatment in such health care facility
 16-5    [hospital], the same shall become a charge upon the health care
 16-6    [hospital] district.  Should there be a dispute as to the ability
 16-7    to pay, or doubt in the mind of the person designated as aforesaid,
 16-8    the district's directors shall hear and determine same, after
 16-9    calling witnesses, and shall make such order as may be proper, from
16-10    which appeal shall lie to the district court.
16-11          SECTION 13.  Section 14, Chapter 502, Acts of the 60th
16-12    Legislature, Regular Session, 1967, is amended to read as follows:
16-13          Sec. 14.   The board of directors of the health care
16-14    [hospital] district is authorized on behalf of said health care
16-15    [hospital] district to accept donations, gifts and endowments for
16-16    the health care [hospital] district to be held in trust and
16-17    administered by the board of directors for such purposes and under
16-18    such direction, limitations, and provisions as may be prescribed in
16-19    writing by donor, not inconsistent with proper management and
16-20    objects of the health care [hospital] district.
16-21          SECTION 14.  Section 16, Chapter 502, Acts of the 60th
16-22    Legislature, Regular Session, 1967, is amended to read as follows:
16-23          Sec. 16.   The health care [hospital] district authorized to
16-24    be created under the provisions of this Act shall be and is
16-25    declared to be political subdivision of the State of Texas, and as
16-26    a governmental agency may sue and be sued in any and all courts of
16-27    this state in the name of such district.  In addition, all property
 17-1    owned by said district shall be held for public purposes and shall
 17-2    be exempt from taxation of every character.
 17-3          SECTION 15.   Chapter 502, Acts of the 60th Legislature,
 17-4    Regular Session, 1967, is amended by adding Sections 16A and 16B to
 17-5    read as follows:
 17-6          Sec. 16A.  (a)  The board of directors may borrow money at a
 17-7    rate not to exceed the maximum annual percentage rate allowed by
 17-8    law for district obligations at the time of the loan.
 17-9          (b)  To secure a loan, the board of directors may pledge:
17-10                (1)  the revenues of the district that are not pledged
17-11    to pay the bonded indebtedness of the district;
17-12                (2)  district taxes to be levied by the district during
17-13    the 12-month period following the date of the pledge that are not
17-14    pledged to pay the principal of or interest on district bonds; or
17-15                (3)  district bonds that have been authorized but not
17-16    sold.
17-17          (c)  A loan for which taxes or bonds are pledged shall mature
17-18    not later  than the first anniversary of the date on which the loan
17-19    is made.  A loan for which district revenues are pledged shall
17-20    mature not later than the fifth anniversary of the date on which
17-21    the loan is made.
17-22          Sec. 16B.  (a)  The district may be dissolved only if the
17-23    dissolution is approved by a majority of the qualified voters of
17-24    the district voting in an election called and held for that
17-25    purpose.
17-26          (b)  The board of directors may order an election on the
17-27    question of dissolving the district and disposing of the district's
 18-1    assets and obligations.  The board of directors shall order an
 18-2    election if the board receives a petition requesting an election
 18-3    that is signed by a number of residents of the district equal to at
 18-4    least 15 percent of the registered voters in the district.
 18-5          (c)  The election shall be held not later than the 60th day
 18-6    after the date the election is ordered.  Section 41.001(a),
 18-7    Election Code, does not apply to an election ordered under this
 18-8    section.  The order calling the election shall state:
 18-9                (1)  the nature of the election, including the
18-10    proposition that is to appear on the ballot;
18-11                (2)  the date of the election;
18-12                (3)  the hours during which the polls will be open; and
18-13                (4)  the location of the polling places.
18-14          (d)  The board of directors shall give notice of the election
18-15    by publishing a substantial copy of the election order in a
18-16    newspaper of general circulation in the district once a week for
18-17    two consecutive weeks.  The first publication must appear not fewer
18-18    than 35 days before the date of the election.  The ballot for the
18-19    election shall be printed to permit voting for or against the
18-20    proposition: "The dissolution of the Garza County Health Care
18-21    District."
18-22          (e)  If a majority of the votes in the election favor
18-23    dissolution, the board of directors shall find that the district is
18-24    dissolved.  If a majority of the votes in the election do not favor
18-25    dissolution, the board of directors shall continue to administer
18-26    the district, and another election on the question of dissolution
18-27    may not be held before the first anniversary of the most recent
 19-1    election to dissolve the district.
 19-2          (f)  If a majority of the votes in the election favor
 19-3    dissolution, the board of directors shall:
 19-4                (1)  transfer the land, buildings, improvements,
 19-5    equipment, and other assets that belong to the district to Garza
 19-6    County or another governmental entity in Garza County; or
 19-7                (2)  administer the property, assets, and debts until
 19-8    all funds have been disposed of and all district debts have been
 19-9    paid or settled.
19-10          (g)  If the district transfers the land, buildings,
19-11    improvements, equipment, and other assets to a county or other
19-12    governmental entity, the county or entity assumes all debts and
19-13    obligations of the district at the time of the transfer, and the
19-14    district is dissolved.
19-15          (h)  After the board of directors finds that the district is
19-16    dissolved, the board of directors shall:
19-17                (1)  determine the debt owed by the district; and
19-18                (2)  impose on the property included in the district's
19-19    tax rolls a tax that is in proportion of the debt to the property
19-20    value.
19-21          (i)  When all outstanding debts and obligations of the
19-22    district are paid, the board of directors shall order the secretary
19-23    to return the pro rata share of all unused tax money to each
19-24    district taxpayer.
19-25          (j)  A taxpayer may request that the taxpayer's share of
19-26    surplus tax money be credited to the taxpayer's county taxes.  If a
19-27    taxpayer requests the credit, the board of directors shall direct
 20-1    the secretary to transmit the funds to the county tax
 20-2    assessor-collector.
 20-3          (k)  After the district has paid all its debts and has
 20-4    disposed of all its assets and funds as prescribed by this section,
 20-5    the board of directors shall file a written report with the
 20-6    Commissioners Court of Garza County setting forth a summary of the
 20-7    board's actions in dissolving the district.
 20-8          (l)  Not later than the 10th day after the date it receives
 20-9    the report and determines that the requirements of this section
20-10    have been fulfilled, the Commissioners Court of Garza County shall
20-11    enter an order dissolving the district and releasing the board from
20-12    any further duty or obligation.
20-13          (m)  Notwithstanding any other provisions of this Act, the
20-14    district may not be dissolved unless the board of directors
20-15    provides for the sale or transfer of the district's assets and
20-16    liabilities to another person or entity.  The dissolution of the
20-17    district and the sale or transfer of the district's assets and
20-18    liabilities to another person or entity may not contravene a trust
20-19    indenture or bond resolution relating to the outstanding bonds of
20-20    the district.  The dissolution and sale or transfer does not
20-21    diminish or impair the rights of a holder of an outstanding bond,
20-22    warrant, or other obligation of the district.
20-23          (n)  The sale or transfer of the district's assets and
20-24    liabilities must satisfy the debt and bond obligations of the
20-25    district in a manner that protects the interests of the residents
20-26    of the district, including the residents' collective property
20-27    rights in the district's assets.  A grant from federal funds is an
 21-1    obligation to be repaid in satisfaction.  The district may not
 21-2    transfer or dispose of the district's assets except for due
 21-3    compensation unless the transfer is made to another governmental
 21-4    entity that serves the district and the transferred assets are to
 21-5    be used for the benefit of the residents of the district.
 21-6          SECTION 16.  This Act takes effect September 1, 2001.