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.