1-1 By: Counts (Senate Sponsor - Duncan) H.B. No. 2477
1-2 (In the Senate - Received from the House May 2, 2001;
1-3 May 3, 2001, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 11, 2001, reported favorably by
1-5 the following vote: Yeas 5, Nays 0; May 11, 2001, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the Garza County Health Care District.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 1, Chapter 502, Acts of the 60th
1-12 Legislature, Regular Session, 1967, is amended to read as follows:
1-13 Sec. 1. In accordance with the provisions of Article IX,
1-14 Section 9, Constitution of the State of Texas, this Act shall be
1-15 operative so as to authorize the creation, establishment,
1-16 maintenance and operation of a hospital district within the State
1-17 of Texas, to be known as the Garza County Health Care [Hospital]
1-18 District, such district to have boundaries coextensive with the
1-19 boundaries of Garza County, and said district shall have the powers
1-20 and responsibilities provided by the aforesaid constitutional
1-21 provision.
1-22 SECTION 2. Section 3, Chapter 502, Acts of the 60th
1-23 Legislature, Regular Session, 1967, is amended to read as follows:
1-24 Sec. 3. (a) Within 10 days after such election is held, the
1-25 Commissioners Court of Garza County shall convene and canvass the
1-26 returns of the election, and if a majority of the legally qualified
1-27 property taxpaying electors voting at said election voted in favor
1-28 of the proposition, the court shall so find and declare the
1-29 hospital district established and created and appoint five persons
1-30 as directors of the hospital district to serve until the first
1-31 Saturday in April, at which time five directors shall be elected.
1-32 The three directors receiving the highest vote at such first
1-33 election shall serve for two years, the other two directors shall
1-34 serve for one year. Thereafter, all directors shall serve for a
1-35 period of two years and until their successor has been duly elected
1-36 or appointed and qualified. To be eligible to serve [No person
1-37 shall be appointed or elected] as a member of the board of
1-38 directors of said [hospital] district, a person must be at least
1-39 [unless he is a resident thereof and owns land subject to taxation
1-40 therein and unless at the time of such election or appointment he
1-41 shall be more than] 21 years of age and [have been] a resident of
1-42 the district and must have resided in the district for at least six
1-43 months immediately preceding the date on which the person files for
1-44 election or is appointed or elected to fill a vacancy in the office
1-45 of director, as appropriate [for at least two years]. Each member
1-46 of the board of directors shall qualify by executing the
1-47 constitutional oath of office and may be required to [shall]
1-48 execute a good and sufficient bond for $1,000 payable to said
1-49 district conditioned upon the faithful performance of his duties,
1-50 and such oaths and bonds shall be deposited with the depository
1-51 bank of the district for safekeeping. The board of directors may
1-52 pay for the bonds if required of the directors with district funds.
1-53 If the proposition to create the Garza Hospital District
1-54 fails to carry at the election, no other election for the same
1-55 purpose may be held within one year after the result of the
1-56 election is announced officially.
1-57 (b) The board of directors shall appoint an administrator,
1-58 who may be required to [shall] execute a good and sufficient bond
1-59 for $10,000 payable to said district conditioned upon the faithful
1-60 performance of the person's [his] duties, and such oath and bond
1-61 shall be deposited with the depository bank for safekeeping. The
1-62 board of directors may pay for the bond of the administrator with
1-63 district funds. The administrator shall not receive a contract for
1-64 a specified term and may be terminated at any time by the board of
2-1 directors.
2-2 (c) The board of directors shall organize by electing one of
2-3 their number as president and by appointing one of their number as
2-4 secretary. Any three members of the board of directors shall
2-5 constitute a quorum and a concurrence of three shall be sufficient
2-6 in all matters pertaining to the business of the district. A
2-7 meeting of the board of directors may be called by the president or
2-8 any three directors. Notice of the time and place of any meeting
2-9 must be given to all the directors at least 72 hours before [not
2-10 less than seven days prior to] the time of the meeting. Nothing
2-11 herein shall prevent the board of directors from establishing by
2-12 resolution a regular time and place for meetings, for which no
2-13 special notice need be given. All vacancies in the office of
2-14 director shall be filled for the unexpired term by appointment of
2-15 the remainder of the board of directors. In the event the number
2-16 of directors shall be reduced to less than three for any reason the
2-17 remaining directors shall immediately call a special election to
2-18 fill said vacancies, and upon failure to do so a district court
2-19 may, upon application of any voter or taxpayer of the district,
2-20 issue a mandate requiring that such election be ordered by the
2-21 remaining directors.
2-22 (d) A regular election of directors shall be held on the
2-23 first Saturday in May [April] of each year. The election shall be
2-24 held in accordance with the Election Code. Notice [and notice] of
2-25 such election shall be published in a newspaper of general
2-26 circulation in the county one time at least 10 days prior to the
2-27 date of the election. Any person desiring his name to be printed
2-28 on the ballot as a candidate for director shall file an application
2-29 [a petition, signed by not less than 15 legally qualified voters
2-30 asking that such name be printed on the ballot,] with the secretary
2-31 of the board of directors of the district[. Such petition shall be
2-32 filed with such secretary] at least 45 [25] days before [prior to]
2-33 the date of election.
2-34 SECTION 3. Section 4, Chapter 502, Acts of the 60th
2-35 Legislature, Regular Session, 1967, is amended to read as follows:
2-36 Sec. 4. The management and control of such [hospital]
2-37 district created pursuant to the provisions of this Act is hereby
2-38 vested in the board of directors of the district who shall serve
2-39 without compensation but may be reimbursed for actual expenses
2-40 incurred in the performance of their official duties upon the
2-41 approval of such expenses by the board of directors.
2-42 SECTION 4. Section 5, Chapter 502, Acts of the 60th
2-43 Legislature, Regular Session, 1967, is amended to read as follows:
2-44 Sec. 5. (a) The [Upon the creation of such hospital
2-45 district, the] board of directors shall have the power and
2-46 authority and it shall be their duty to levy a tax on all property
2-47 subject to [hospital] district taxation for the benefit of the
2-48 district. All taxes of the district shall be assessed and
2-49 collected as provided by Subsections (b) and (c) [at the same time
2-50 taxes are levied for county purposes, using the county values and
2-51 the county tax rolls, a tax of not to exceed 25 cents on the $100
2-52 valuation of all taxable property within the hospital district, for
2-53 the purpose of: (1) paying the interest on and creating a sinking
2-54 fund for warrants which may be issued by the hospital district for
2-55 hospital purposes as herein provided; (2) providing for the
2-56 operation and maintenance of the hospital or hospital system; and
2-57 (3) for the purpose of making further improvements and additions to
2-58 the hospital system, and for the acquisition of necessary sites
2-59 therefor, by purchase, lease or condemnation].
2-60 (b) The board of directors may annually impose property
2-61 taxes in an amount not to exceed the limit approved by the voters
2-62 at the election authorizing the levy of taxes. The tax rate for
2-63 all purposes may not exceed 75 cents on each $100 valuation of all
2-64 taxable property in the district. The taxes may be used for the
2-65 purposes provided by Subsection (c). The district may not impose
2-66 taxes to pay the principal of or interest on revenue bonds. The
2-67 Tax Code governs the appraisal, assessment, and collection of
2-68 district taxes. The board may provide for the appointment of a tax
2-69 assessor-collector for the district or may contract for the
3-1 assessment and collection of taxes as provided by the Tax Code.
3-2 (c) The taxes may be used to:
3-3 (1) pay the interest on and create a sinking fund for
3-4 warrants that may be issued by the district for health care
3-5 purposes;
3-6 (2) pay for the maintenance and operating expenses of
3-7 the district and health care system;
3-8 (3) pay for indebtedness issued or assumed by the
3-9 district;
3-10 (4) make further improvements and additions to the
3-11 health care system; and
3-12 (5) acquire necessary sites for the health care system
3-13 by purchase, lease, or condemnation [Not later than October 1st of
3-14 each year, the board of directors shall levy the tax on all taxable
3-15 property within the district which is subject to taxation and shall
3-16 immediately certify such tax rate to the tax assessor and collector
3-17 of Garza County. The tax so levied shall be collected on all
3-18 property subject to hospital district taxation by the assessor and
3-19 collector of taxes for the county on the county tax values, and in
3-20 the same manner and under the same conditions as county taxes. The
3-21 assessor and collector of taxes shall charge and deduct from
3-22 payments to the hospital district the fees for assessing and
3-23 collecting the tax at the rate of not exceeding five percent on the
3-24 first $10,000 and two percent on all such taxes thereafter, but in
3-25 no event in excess of $5,000 for any one fiscal year. Such fees
3-26 shall be deposited in the county's general fund, and shall be
3-27 reported as fees of office of the tax assessor and collector.
3-28 Interest and penalties on taxes paid to the hospital district shall
3-29 be the same as in the case of county taxes. Discounts shall be the
3-30 same as for county taxes. The residue of tax collections, after
3-31 deduction of discounts and fees for assessing and collecting, shall
3-32 be deposited in the district depository and such funds shall be
3-33 withdrawn only as provided herein. All other income of the hospital
3-34 district shall be deposited in like manner with the district
3-35 depository].
3-36 (d) [(c)] The board of directors shall have the authority to
3-37 levy the tax aforesaid for the entire year in which the said
3-38 [hospital] district is established [for the purpose of securing
3-39 funds to initiate the operation of the hospital district].
3-40 SECTION 5. Section 6, Chapter 502, Acts of the 60th
3-41 Legislature, Regular Session, 1967, is amended to read as follows:
3-42 Sec. 6. (a) The board of directors may issue general
3-43 obligation bonds [shall have the power and authority to issue and
3-44 sell as the obligations of the hospital district, and] in the name
3-45 and upon the faith and credit of the [hospital] district to:
3-46 (1) purchase, construct, acquire, repair, or renovate
3-47 buildings or improvements;
3-48 (2) equip buildings or improvements for health care
3-49 purposes; or
3-50 (3) acquire and operate a mobile emergency medical or
3-51 air ambulance service.
3-52 (b) At the time of the issuances of any general obligation
3-53 bonds by the district, [bonds for the repair or renovation of
3-54 building and improvements and equipping the same for hospital
3-55 purposes and for any and all of such purposes; provided, that] a
3-56 sufficient tax shall be levied to create an interest and sinking
3-57 fund to pay the interest and principal as same matures, provided
3-58 that the maintenance and operation tax, together with the bond tax,
3-59 shall not exceed the rate of tax approved by the voters at the
3-60 election authorizing the levy of taxes. The district may issue
3-61 general obligation bonds only if the bonds are authorized by a
3-62 majority of the qualified voters of the district voting at an
3-63 election called and held for that purpose. The board may order a
3-64 bond election. The bond election shall be conducted as provided by
3-65 Chapter 1251, Government Code. The board shall canvass the returns
3-66 and declare the results of the election.
3-67 (c) The district may issue revenue bonds for any health care
3-68 purpose, including a purpose described by Subsection (a) of this
3-69 section, only if the bonds are authorized by a majority of the
4-1 qualified voters of the district voting at an election called and
4-2 held for that purpose. The bonds shall be payable from and secured
4-3 by a pledge on all or part of the revenues derived from the
4-4 operation of the district's health care system. The bonds may be
4-5 additionally secured by a mortgage or deed of trust on all or part
4-6 of the district's property. The revenue bonds shall be issued in
4-7 the manner provided by Sections 264.042, 264.043, 264.046, 264.047,
4-8 264.048, and 264.049, Health and Safety Code, for the issuance of
4-9 revenue bonds by county hospital authorities.
4-10 (d) Bonds of the district [25 cents on the $100 valuation in
4-11 any one year, or such maximum amount as may hereafter be voted as
4-12 provided in Section 7 hereof. Such bond] shall be executed in the
4-13 name of the district and on its behalf by the president of the
4-14 board of directors, and countersigned by the secretary of the board
4-15 of directors, and shall be subject to the same requirements in the
4-16 matter of approval thereof by the Attorney General of the State of
4-17 Texas and registration thereof by the Comptroller of Public
4-18 Accounts of the State of Texas as are by law provided for such
4-19 approval and registration of bonds of such county. Upon the
4-20 approval of such bonds by the Attorney General of Texas the same
4-21 shall be incontestable for any cause. [No bonds shall be issued by
4-22 the hospital district (except refunding bonds) until authorized by
4-23 a majority vote of the legally qualified property taxpaying
4-24 electors, residing in the hospital district, voting at an election
4-25 called and held for such purpose. Such election may be called by
4-26 the board of directors on its own motion, shall specify the place
4-27 or places where the election shall be held, the presiding officers
4-28 thereof, the purpose for which the bonds are to be issued, the
4-29 amount thereof, the maximum interest rate (not to exceed six
4-30 percent per annum) and the maximum maturity date of such bonds (not
4-31 to exceed 40 years from their date of issuance). Notice of
4-32 election shall be given by publishing a substantial copy of the
4-33 order calling the election in a newspaper of general circulation in
4-34 such county once a week for two consecutive weeks prior to the date
4-35 of election, the date of the first publication being at least 14
4-36 full days prior to the date set for the election.] The costs of
4-37 such election shall be paid by the [hospital] district.
4-38 (e) Bonds of the district must mature not later than the
4-39 40th anniversary of the date of issuance and must bear a rate of
4-40 interest that does not exceed the amount provided by Chapter 1204,
4-41 Government Code.
4-42 (f) [(b)] In the manner hereinabove provided, the bonds of
4-43 such [hospital] district may, without the necessity of any election
4-44 therefor, be issued for the purpose of refunding and paying off any
4-45 bonded indebtedness theretofore issued by such [hospital] district;
4-46 such refunding bonds may be sold and the proceeds thereof applied
4-47 to the payment of any such outstanding bonds or may be exchanged in
4-48 whole or in part for not less than a like amount, of said
4-49 outstanding bonds and interest matured thereon, but unpaid;
4-50 provided the average interest cost per annum on the refunding
4-51 bonds, computed in accordance with recognized standard bond
4-52 interest cost tables shall not exceed the average interest cost per
4-53 annum so computed, upon the bonds to be discharged out of the
4-54 proceeds of the refunding bonds, unless the total interest cost on
4-55 the refunding bonds, computed to their respective maturity dates,
4-56 is less than the total interest cost so computed on the bonds to be
4-57 discharged out of such proceeds. In the foregoing computations,
4-58 any premium or premiums required to be paid upon the bonds to be
4-59 refunded as a condition to payment in advance of their stated
4-60 maturity dates shall be taken into account as an addition to the
4-61 net interest cost to the [hospital] district of the refunding
4-62 bonds.
4-63 (g) [(c) The board of directors shall not have the power and
4-64 authority to purchase, construct or acquire property in excess of
4-65 $25,000 without submitting the vote to the qualified taxpaying
4-66 voters of said district, and a majority of the legally qualified
4-67 property taxpaying electors participating in said election voting
4-68 in favor of the proposition shall be necessary.]
4-69 [(d)] The [hospital] district shall not make any contract
5-1 calling for or requiring the expenditure or payment of $15,000
5-2 [$1,000] or more out of any fund or funds of said district creating
5-3 or imposing an obligation or liability of any nature or character
5-4 upon such [hospital] district, without first submitting such
5-5 proposed contract to competitive bids.
5-6 SECTION 6. Section 7, Chapter 502, Acts of the 60th
5-7 Legislature, Regular Session, 1967, is amended to read as follows:
5-8 Sec. 7. The board of directors shall have the authority to
5-9 call an election on the question of whether or not the tax
5-10 hereinabove provided for shall be increased to a specified rate
5-11 allowed by law on the $100 valuation of all taxable property within
5-12 the [hospital] district, if and when the board of directors
5-13 determines that an increase in such tax rate is necessary to carry
5-14 out the purposes for which the initial tax rate was authorized.
5-15 Said election shall be held in the same manner as the election for
5-16 [the creation of the district and] the levy of the initial tax as
5-17 hereinabove provided.
5-18 SECTION 7. Section 8, Chapter 502, Acts of the 60th
5-19 Legislature, Regular Session, 1967, is amended by amending
5-20 Subsection (a) and by adding Subsections (d) through (l) to read as
5-21 follows:
5-22 (a) The board of directors of the district shall have the
5-23 power to prescribe the method and manner of making purchases and
5-24 expenditures by and for the [hospital] district, and also shall
5-25 prescribe all accounting and control procedures; the method of
5-26 purchasing necessary supplies, materials and equipment; and shall
5-27 have the power to adopt a seal for such district; and may employ a
5-28 general manager, and such professional and clerical assistance as
5-29 may be necessary.
5-30 (d) The board of directors may purchase or lease property,
5-31 facilities, or equipment for the district to use in the health care
5-32 system and may mortgage or pledge the property, facilities, or
5-33 equipment as security for the payment of the purchase price.
5-34 (e) The board of directors may enter into one or more
5-35 contracts to provide administrative and other personnel for the
5-36 operation of the health care facilities for a term not to exceed
5-37 five years.
5-38 (f) The board of directors may transfer district health care
5-39 facilities by lease to individuals, corporations, or other legal
5-40 entities for a term not to exceed 20 years.
5-41 (g) The board of directors may sell or otherwise dispose of
5-42 the district's property, facilities, and equipment.
5-43 (h) The board of directors may provide retirement benefits
5-44 for the employees of the district by establishing or administering
5-45 a retirement program or electing to participate in the Texas County
5-46 and District Retirement System or any other statewide retirement
5-47 system in which the district is eligible to participate.
5-48 (i) The board of directors may spend district funds to
5-49 recruit physicians, nurses, and other trained medical personnel.
5-50 The board of directors may contract with one or more full-time
5-51 medical students or other students in a health occupation, each of
5-52 whom is enrolled in good standing in an accredited medical school,
5-53 college, or university, to pay the student's tuition or other
5-54 expenses in consideration of the student's contractual agreement to
5-55 serve as an employee or independent contractor for the district
5-56 under terms prescribed by the contract.
5-57 (j) The board of directors may institute a suit to enforce
5-58 the payment of taxes and to foreclose liens to secure the payment
5-59 of taxes due to the district.
5-60 (k) The board of directors may spend district funds to
5-61 support emergency medical services in the county.
5-62 (l) The board of directors may provide access to medical
5-63 care to nonindigent residents of Garza County if the nonindigent
5-64 residents are charged the reasonable and customary cost of
5-65 services.
5-66 SECTION 8. Section 9, Chapter 502, Acts of the 60th
5-67 Legislature, Regular Session, 1967, is amended to read as follows:
5-68 Sec. 9. (a) The fiscal year of the [hospital] district
5-69 authorized to be established by the provisions hereof shall
6-1 commence on October 1st of each year and end on September 30th of
6-2 the following year. The district directors shall cause an annual
6-3 independent audit to be made of the books and records of the
6-4 district, such audit to be made covering such fiscal year[, and the
6-5 same shall be filed with the Comptroller of Public Accounts of the
6-6 State of Texas and at the office of the district not later than
6-7 December 31st of each year].
6-8 (b) The board of directors shall each year cause a budget to
6-9 be prepared showing the proposed expenditures and disbursements and
6-10 the estimated receipts and collections for the following fiscal
6-11 year and shall hold a public hearing on the proposed budget after
6-12 publication of a notice of hearing in a newspaper of general
6-13 circulation in the county in accordance with Chapter 551,
6-14 Government Code [at least once not less than 10 days prior to the
6-15 date set for the hearing]. Any person who is a resident [taxpayer]
6-16 of the district shall have the right to appear at the time and
6-17 place designated in the notice and be heard with reference to any
6-18 item shown in the proposed budget. The proposed budget shall also
6-19 show the amount of taxes required to be levied and collected during
6-20 such fiscal year and upon final approval of the budget, the board
6-21 of directors shall levy such tax as may be required and certify the
6-22 tax rate for such year to the county tax assessor and collector as
6-23 provided in Section 5 hereof, and it shall be the duty of the said
6-24 tax assessor and collector to assess and collect such tax.
6-25 SECTION 9. Section 10, Chapter 502, Acts of the 60th
6-26 Legislature, Regular Session, 1967, is amended to read as follows:
6-27 Sec. 10. Within 30 days after appointment and qualification
6-28 of the board of directors of the [hospital] district, the said
6-29 directors shall by resolution designate a bank or banks [within
6-30 Garza County] as the district's depository or treasurer and all
6-31 funds of the district shall be secured in the manner now provided
6-32 for the security of county funds. The depository shall serve for a
6-33 period of two years and until a successor has been named.
6-34 SECTION 10. Section 11, Chapter 502, Acts of the 60th
6-35 Legislature, Regular Session, 1967, is amended to read as follows:
6-36 Sec. 11. The [hospital] district established or maintained
6-37 under the provisions of this Act shall be subject to inspection by
6-38 any duly authorized representative of the Texas Department [State
6-39 Board] of Health [or any State Board of Charities (or Public
6-40 Welfare) that now exists or that may be hereafter created], and any
6-41 resident officers shall admit such representatives into all
6-42 [hospital] district facilities and give them access on demand to
6-43 all records, reports, books, papers, and accounts pertaining to the
6-44 [hospital] district.
6-45 SECTION 11. Section 12, Chapter 502, Acts of the 60th
6-46 Legislature, Regular Session, 1967, is amended to read as follows:
6-47 Sec. 12. After the [hospital] district has been organized
6-48 pursuant to this Act, neither Garza County nor any city therein
6-49 shall levy any tax for health care [hospital] purposes; and such
6-50 [hospital] district shall be deemed to have assumed full
6-51 responsibility for the furnishing of medical and health [hospital]
6-52 care for the needy and indigent persons residing in said [hospital]
6-53 district from the date that taxes are collected for the [hospital]
6-54 district.
6-55 SECTION 12. Section 13, Chapter 502, Acts of the 60th
6-56 Legislature, Regular Session, 1967, is amended to read as follows:
6-57 Sec. 13. Whenever a patient claiming indigence has been
6-58 admitted to the facilities of the [hospital] district, the
6-59 directors shall cause inquiry to be made as to the patient's [his]
6-60 circumstances, and of the relatives of such patients legally liable
6-61 for the patient's [his] support. If it is found that such patient
6-62 or said relatives are liable to pay for the patient's [his] care
6-63 and treatment in whole or in part, an order shall be made directing
6-64 such patient, or said relatives, to pay to the treasurer of the
6-65 [hospital] district for the support of such patient a specified sum
6-66 per week, in proportion to their financial ability, but such sum
6-67 shall not exceed the actual per capita cost of maintenance. The
6-68 district shall have power and authority to collect such sum from
6-69 the estate of the patient, or the patient's [his] relatives legally
7-1 liable for the patient's [his] support, in the manner provided by
7-2 law for the collection of expenses of the last illness of a
7-3 deceased person. If the agent designated by the district to handle
7-4 such affairs finds that such patient or said relatives are not able
7-5 to pay, either in whole or in part, for the patient's [his] care
7-6 and treatment in such health care facility [hospital], the same
7-7 shall become a charge upon the [hospital] district. Should there
7-8 be a dispute as to the ability to pay, or doubt in the mind of the
7-9 person designated as aforesaid, the district's directors shall hear
7-10 and determine same, after calling witnesses, and shall make such
7-11 order as may be proper, from which appeal shall lie to the district
7-12 court.
7-13 SECTION 13. Section 14, Chapter 502, Acts of the 60th
7-14 Legislature, Regular Session, 1967, is amended to read as follows:
7-15 Sec. 14. The board of directors of the [hospital] district
7-16 is authorized on behalf of said [hospital] district to accept
7-17 donations, gifts and endowments for the [hospital] district to be
7-18 held in trust and administered by the board of directors for such
7-19 purposes and under such direction, limitations, and provisions as
7-20 may be prescribed in writing by donor, not inconsistent with proper
7-21 management and objects of the [hospital] district.
7-22 SECTION 14. Section 16, Chapter 502, Acts of the 60th
7-23 Legislature, Regular Session, 1967, is amended to read as follows:
7-24 Sec. 16. The [hospital] district authorized to be created
7-25 under the provisions of this Act shall be and is declared to be
7-26 political subdivision of the State of Texas, and as a governmental
7-27 agency may sue and be sued in any and all courts of this state in
7-28 the name of such district. In addition, all property owned by said
7-29 district shall be held for public purposes and shall be exempt from
7-30 taxation of every character.
7-31 SECTION 15. Chapter 502, Acts of the 60th Legislature,
7-32 Regular Session, 1967, is amended by adding Sections 16A and 16B to
7-33 read as follows:
7-34 Sec. 16A. (a) The board of directors may borrow money at a
7-35 rate not to exceed the maximum annual percentage rate allowed by
7-36 law for district obligations at the time of the loan.
7-37 (b) To secure a loan, the board of directors may pledge:
7-38 (1) the revenues of the district that are not pledged
7-39 to pay the bonded indebtedness of the district;
7-40 (2) district taxes to be levied by the district during
7-41 the 12-month period following the date of the pledge that are not
7-42 pledged to pay the principal of or interest on district bonds; or
7-43 (3) district bonds that have been authorized but not
7-44 sold.
7-45 (c) A loan for which taxes or bonds are pledged shall mature
7-46 not later than the first anniversary of the date on which the loan
7-47 is made. A loan for which district revenues are pledged shall
7-48 mature not later than the fifth anniversary of the date on which
7-49 the loan is made.
7-50 Sec. 16B. (a) The district may be dissolved only if the
7-51 dissolution is approved by a majority of the qualified voters of
7-52 the district voting in an election called and held for that
7-53 purpose.
7-54 (b) The board of directors may order an election on the
7-55 question of dissolving the district and disposing of the district's
7-56 assets and obligations. The board of directors shall order an
7-57 election if the board receives a petition requesting an election
7-58 that is signed by a number of registered voters of the district
7-59 equal to at least 10 percent of the registered voters in the
7-60 district.
7-61 (c) The election shall be held not later than the 60th day
7-62 after the date the election is ordered. Section 41.001(a),
7-63 Election Code, does not apply to an election ordered under this
7-64 section. The order calling the election shall state:
7-65 (1) the nature of the election, including the
7-66 proposition that is to appear on the ballot;
7-67 (2) the date of the election;
7-68 (3) the hours during which the polls will be open; and
7-69 (4) the location of the polling places.
8-1 (d) The board of directors shall give notice of the election
8-2 by publishing a substantial copy of the election order in a
8-3 newspaper of general circulation in the district once a week for
8-4 two consecutive weeks. The first publication must appear not fewer
8-5 than 35 days before the date set for the election. The ballot for
8-6 the election shall be printed to permit voting for or against the
8-7 proposition: "The dissolution of the Garza County Health Care
8-8 District."
8-9 (e) If a majority of the votes in the election favor
8-10 dissolution, the board of directors shall find that the district is
8-11 dissolved. If a majority of the votes in the election do not favor
8-12 dissolution, the board of directors shall continue to administer
8-13 the district, and another election on the question of dissolution
8-14 may not be held before the first anniversary of the most recent
8-15 election to dissolve the district.
8-16 (f) If a majority of the votes in the election favor
8-17 dissolution, the board of directors shall:
8-18 (1) transfer the land, buildings, improvements,
8-19 equipment, and other assets that belong to the district to Garza
8-20 County or another governmental entity in Garza County;
8-21 (2) sell the assets and liabilities to another person
8-22 or entity; or
8-23 (3) administer the property, assets, and debts until
8-24 all funds have been disposed of and all district debts have been
8-25 paid or settled.
8-26 (g) If the district transfers the land, buildings,
8-27 improvements, equipment, and other assets to Garza County or
8-28 another governmental entity in Garza County, the county or entity
8-29 assumes all debts and obligations of the district at the time of
8-30 the transfer, at which time the district is dissolved. If the
8-31 district does not transfer the land, buildings, improvements,
8-32 equipment, and other assets to Garza County or another governmental
8-33 entity in Garza County, or sell those assets and the liabilities to
8-34 another person or entity, the board of directors shall administer
8-35 the property, assets, and debts of the district until all funds
8-36 have been disposed of and all district debts have been paid or
8-37 settled, at which time the district is dissolved.
8-38 (h) After the board of directors finds that the district is
8-39 dissolved, the board of directors shall:
8-40 (1) determine the debt owed by the district; and
8-41 (2) impose on the property included in the district's
8-42 tax rolls a tax that is in proportion of the debt to the property
8-43 value.
8-44 (i) When all outstanding debts and obligations of the
8-45 district are paid, the board of directors shall order the secretary
8-46 to return the pro rata share of all unused tax money to each
8-47 district taxpayer.
8-48 (j) A taxpayer may request that the taxpayer's share of
8-49 surplus tax money be credited to the taxpayer's county taxes. If a
8-50 taxpayer requests the credit, the board of directors shall direct
8-51 the secretary to transmit the funds to the county tax
8-52 assessor-collector.
8-53 (k) After the district has paid all its debts and has
8-54 disposed of all its assets and funds as prescribed by this section,
8-55 the board of directors shall file a written report with the
8-56 Commissioners Court of Garza County setting forth a summary of the
8-57 board of directors' actions in dissolving the district.
8-58 (l) Not later than the 10th day after the date it receives
8-59 the report and determines that the requirements of this section
8-60 have been fulfilled, the Commissioners Court of Garza County shall
8-61 enter an order dissolving the district and releasing the board of
8-62 directors from any further duty or obligation.
8-63 (m) The district may provide for the sale or transfer of the
8-64 district's assets and liabilities to another person or entity and
8-65 the district's subsequent dissolution. The dissolution of the
8-66 district and the sale or transfer of the district's assets and
8-67 liabilities to another person or entity may not contravene a trust
8-68 indenture or bond resolution relating to the outstanding bonds of
8-69 the district. The dissolution and sale or transfer does not
9-1 diminish or impair the rights of a holder of an outstanding bond,
9-2 warrant, or other obligation of the district.
9-3 (n) The sale or transfer of the district's assets and
9-4 liabilities must satisfy the debt and bond obligations of the
9-5 district in a manner that protects the interests of the residents
9-6 of the district, including the residents' collective property
9-7 rights in the district's assets. A grant from federal funds is an
9-8 obligation to be repaid in satisfaction. The district may not
9-9 transfer or dispose of the district's assets except for due
9-10 compensation unless the transfer is made to another governmental
9-11 entity that serves the district and the transferred assets are to
9-12 be used for the benefit of the residents of the district.
9-13 SECTION 16. This Act takes effect September 1, 2001.
9-14 * * * * *