By Craddick H.B. No. 3661
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers, duties, and board of managers of the Reagan
1-3 Hospital District of Reagan County, Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 5, Chapter 29, Acts of the 65th
1-6 Legislature, Regular Session, 1977, is amended to read as follows:
1-7 Sec. 5. (a) The board of directors consists of six members
1-8 with one director elected from each commissioners precinct of
1-9 Reagan County and two directors elected from the district at large.
1-10 A director elected from a commissioners precinct is not required to
1-11 be a resident of that commissioners precinct. The directors serve
1-12 three-year staggered terms. [On the effective date of this Act,
1-13 the following persons shall constitute the temporary directors of
1-14 the district:]
1-15 [1. Frank Sandel;]
1-16 [2. E. G. Cauble, Jr.;]
1-17 [3. Wade Jones;]
1-18 [4. Buck Schaible;]
1-19 [5. Mike Elkins; and]
1-20 [6. Jack Black.]
1-21 [(b) Each of the directors shall execute the constitutional
1-22 oath of office within 60 days of the effective date of this Act.
1-23 Should any of the named directors refuse to act or for any reason
1-24 fail to qualify as required, the remaining temporary directors
2-1 shall by majority vote appoint a successor or successors to fill
2-2 the vacancy. The terms of the first, third, and fifth named
2-3 directors shall expire on the first Saturday in April of the year
2-4 following the election creating the district, and the terms of the
2-5 second, fourth, and sixth named directors shall expire on the first
2-6 Saturday in April of the second year following the election
2-7 creating the district. Successors shall be elected by a vote of
2-8 the electors of the entire district for two-year terms.]
2-9 [(c) When the creation of the district is approved and the
2-10 returns of the election are officially canvassed, the persons
2-11 acting as temporary directors become permanent directors whose
2-12 terms expire as provided in Subsection (b) of this section.] Each
2-13 permanent director and the director's [his] successor in office
2-14 shall qualify by executing the constitutional oath of office.
2-15 (b) A redistricting or other change in the boundaries of the
2-16 commissioners precincts of Reagan County does not affect the
2-17 service or term of a member of the district's board of directors in
2-18 office when the change occurs. The change in the commissioners
2-19 precincts applies to each election of directors occurring after the
2-20 change takes effect as the terms of directors then in office
2-21 expire.
2-22 (c) [(d)] No person may be appointed or elected as a member
2-23 of the board of directors of the hospital district unless the
2-24 person [he] is a resident of the district and a qualified voter
2-25 [thereof and owns property subject to taxation therein and unless
2-26 at the time of such election or appointment he shall be more than
2-27 18 years of age].
3-1 (d) [(e)] The board of directors shall organize by electing
3-2 one of their number as president, one of their number as
3-3 vice-president, and a secretary, who need not be a director.
3-4 Officers are elected for a term of one year and vacancies shall be
3-5 filled for the unexpired term by vote of the board. Any four
3-6 members of the board of directors constitute a quorum and a
3-7 concurrence of four is sufficient in all matters pertaining to the
3-8 business of the district. All vacancies in the office of director
3-9 shall be filled for the unexpired term by appointment by the
3-10 remainder of the board of directors and each appointee holds office
3-11 for the unexpired term for which the person was appointed. If the
3-12 number of directors is reduced to less than five, the remaining
3-13 directors shall immediately call a special election to fill the
3-14 vacancies, and upon their failure to do so, the district court, on
3-15 application of any resident [elector or taxpayer] of the district,
3-16 shall order the election.
3-17 (e) [(f)] A regular election of directors shall be held on
3-18 the first [third] Saturday in May of each year, and shall be
3-19 ordered by the board in accordance with the applicable provisions
3-20 of Chapter 3, Election Code. Notice [notice] of the election shall
3-21 be published in a newspaper of general circulation in the district
3-22 [county] one time in accordance with Chapter 4, Election Code [at
3-23 least 10 days prior to the date of election]. Any person desiring
3-24 the person's [his] name to be printed on the ballot as a candidate
3-25 for director shall file an application with the secretary of the
3-26 board in accordance with Chapter 144, Election Code, asking that
3-27 the person's [his] name be printed on the ballot. The application
4-1 must specify the commissioners precinct for which the person is
4-2 applying to be a candidate or state that the person is applying to
4-3 be a candidate for election to an at-large position [The
4-4 application must be filed not later than 5 p.m. of the 45th day
4-5 before the date on which the election is held].
4-6 SECTION 2. Section 6, Chapter 29, Acts of the 65th
4-7 Legislature, Regular Session, 1977, is amended to read as follows:
4-8 Sec. 6. (a) The board of directors shall manage, control,
4-9 and administer the hospital system and all funds and resources of
4-10 the district, but operating, depreciation, or building fund
4-11 reserves may not be invested in any funds or securities other than
4-12 those specified in Chapter 2256, Government Code [Articles 836 and
4-13 837, Revised Civil Statutes of Texas, 1925, as amended].
4-14 (b) The board is given full authority to establish rules and
4-15 regulations relating to seniority of employees of the district, and
4-16 may establish or administer a retirement program or elect to
4-17 participate in any statewide retirement program in which the
4-18 district is eligible to participate.
4-19 (c) The district may give effect to previous years of
4-20 service for those employees who have been continuously employed in
4-21 the operation or management of the hospital facilities acquired
4-22 from the county or any city or town on the creation of the
4-23 district. The district, through its board of directors, shall have
4-24 the power and authority to sue and be sued and to promulgate rules
4-25 governing the operation of the hospital, hospital system, its
4-26 staff, and employees.
4-27 (d) The board of directors may appoint a qualified person to
5-1 be known as the administrator of the hospital district and may in
5-2 its discretion appoint assistants to the administrator. The
5-3 administrator and assistant administrator, if any, serve at the
5-4 will of the board and receive compensation fixed by the board. The
5-5 administrator shall, on assuming the [his] duties of administrator,
5-6 execute a bond payable to the hospital district in an amount set by
5-7 the board of directors, not less than $5,000, conditioned on
5-8 performance of the duties required of the administrator [him], and
5-9 containing other conditions as the board may require. The board
5-10 may pay for the bond with district funds. The administrator shall
5-11 supervise all the work and activities of the district and shall
5-12 have general direction of the affairs of the district, subject to
5-13 the limitations prescribed by the board.
5-14 (e) The board of directors shall have the authority to
5-15 appoint, dismiss from the staff, or contract with doctors as it
5-16 deems necessary for the efficient operation of the district, and
5-17 may provide for temporary appointments to the staff if warranted by
5-18 circumstances.
5-19 (f) The board may delegate to the administrator the
5-20 authority to employ technicians, nurses, and employees of the
5-21 district.
5-22 (g) The board shall be authorized to contract with any other
5-23 political subdivision or governmental agency whereby the district
5-24 will provide investigatory or other services as to the medical,
5-25 hospital, or welfare needs of the inhabitants of the district and
5-26 shall be authorized to contract with any county or incorporated
5-27 municipality located outside its boundaries for the hospitalization
6-1 and treatment of the sick, diseased, or injured persons of any such
6-2 county or municipality, and shall have the authority to contract
6-3 with the state or agencies of the federal government for the
6-4 hospital treatment of sick, diseased, or injured persons.
6-5 (h) The board of directors may purchase or lease property,
6-6 facilities, and equipment for the district to use in the hospital
6-7 system and may mortgage or pledge the property, facilities, or
6-8 equipment as security for the payment of the purchase price.
6-9 (i) The board of directors may spend district funds, enter
6-10 into agreements, and take other necessary action to recruit
6-11 physicians and other persons to serve as medical staff members or
6-12 employees of the district, including:
6-13 (1) advertising and marketing;
6-14 (2) paying travel, recruitment, and relocation
6-15 expenses;
6-16 (3) providing a loan or scholarship to a physician or
6-17 a person currently enrolled in health care education courses at an
6-18 institution of higher education who contractually agrees to become
6-19 a district employee or medical staff member; or
6-20 (4) contracting with one or more full-time medical
6-21 students or other students in a health occupation, each of whom
6-22 must be enrolled in and in good standing at an accredited medical
6-23 school, college, or university, to pay the student's tuition or
6-24 other expenses in consideration of the student's agreement to serve
6-25 as an employee or independent contractor for the district.
6-26 (j) The board may institute a suit to enforce the payment of
6-27 taxes and to foreclose liens to secure the payment of taxes due to
7-1 the district.
7-2 (k) The board may provide or contract for the provision of
7-3 educational programs or courses for employees and medical staff of
7-4 the district.
7-5 (l) The board may institute a suit to collect amounts owed
7-6 to the district by patients who have not been determined to be
7-7 unable to pay under Section 18.
7-8 (m) The district may sponsor and create a nonprofit
7-9 corporation under the Texas Non-Profit Corporation Act (Article
7-10 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
7-11 contribute funds to or solicit funds for the corporation. The
7-12 corporation may use its funds only to provide health care or other
7-13 services the district is authorized to provide under this Act. The
7-14 board of directors of the hospital district shall establish
7-15 adequate controls to ensure that the corporation uses its funds as
7-16 required by this subsection. The corporation may invest
7-17 corporation funds in any manner in which the district may invest
7-18 funds, including investing funds as authorized by Chapter 2256,
7-19 Government Code.
7-20 (n) The directors may participate in any group health
7-21 insurance plan sponsored by the district for district employees.
7-22 SECTION 3. Section 7, Chapter 29, Acts of the 65th
7-23 Legislature, Regular Session, 1977, is amended to read as follows:
7-24 Sec. 7. (a) The district shall be operated on the basis of a
7-25 fiscal year established by the board. The fiscal year may not be
7-26 changed when revenue bonds are outstanding or more than one time in
7-27 a 24-month period.
8-1 (b) The board [commencing on October 1 of each year and
8-2 ending on September 30 of the following year, and every fiscal
8-3 year, it] shall cause an independent audit to be made annually of
8-4 the books and records [financial condition] of the district. The
8-5 audit [, which], together with other records of the district, shall
8-6 be open to inspection at the principal office of the district.
8-7 (c) The administrator shall prepare an annual budget for
8-8 approval by the board of directors. The budget shall [also]
8-9 contain a complete financial statement of the district showing all
8-10 outstanding obligations of the district, the cash on hand to the
8-11 credit of each fund of the district, the funds received from all
8-12 sources during the previous year, the funds available from all
8-13 sources during the ensuing year, with balances expected at year end
8-14 of the year in which the budget is being prepared, estimated
8-15 revenues and balances available to cover the proposed budget, the
8-16 estimated tax rate which will be required, and the proposed
8-17 expenditures, disbursements, and estimated receipts and collections
8-18 for the following fiscal year. A public hearing on the annual
8-19 budget shall be held by the board of directors after notice of the
8-20 hearing has been published one time at least 10 days before the
8-21 date set for the hearing in a newspaper of [or newspapers which
8-22 individually or collectively provide] general circulation in the
8-23 hospital district. Any resident [property taxpayer] of the
8-24 district shall have the right to be present and participate in the
8-25 hearing. At the conclusion of the hearing, the budget, as proposed
8-26 by the administrator, shall be acted on by the board of directors.
8-27 The board of directors shall have authority to make such changes in
9-1 the budget as in their judgment the law warrants and the interest
9-2 of the taxpayers demand. No expenditure may be made for any
9-3 expense not included in the annual budget or an amendment to it.
9-4 The annual budget may be amended from time to time as the
9-5 circumstances may require, but the annual budget, and all
9-6 amendments, shall be approved by the board of directors.
9-7 (d) As soon as practicable after the close of each fiscal
9-8 year, the administrator shall prepare for the board a full sworn
9-9 statement of all moneys belonging to the district and a full
9-10 account of disbursements.
9-11 SECTION 4. Section 8, Chapter 29, Acts of the 65th
9-12 Legislature, Regular Session, 1977, is amended to read as follows:
9-13 Sec. 8. (a) The board of directors shall have the power to
9-14 issue and sell general obligation [its] bonds authorized by an
9-15 election in the name and on the faith and credit of the hospital
9-16 district for the purchase, construction, acquisition, repair, or
9-17 renovation of buildings and improvements, [and] equipping the
9-18 buildings and improvements, and acquisition of sites to be used for
9-19 district [them for hospital] purposes. At the time of the issuance
9-20 of any general obligation bonds by the district, a tax shall be
9-21 levied by the board sufficient to create an interest and sinking
9-22 fund to pay the interest on and principal of the bonds as they
9-23 mature, providing the tax, together with any other taxes levied for
9-24 the district, shall not exceed 75 on each $100 valuation in any
9-25 year [the rate of tax approved under Section 4 of this Act]. No
9-26 general obligation bonds shall be issued by the hospital district
9-27 [except refunding bonds] until authorized by a majority of the
10-1 qualified voters [electors] of the district voting at an election
10-2 called for that purpose. The election shall be conducted in
10-3 accordance with Chapter 1251, Government Code. [The order for bond
10-4 election shall specify the date of the election, the amount of
10-5 bonds to be authorized, the maximum maturity date and rate of
10-6 interest they are to bear, the place or places where the election
10-7 shall be held, the presiding judge and alternate judge for each
10-8 voting place, and shall provide for clerks as in county elections.
10-9 Except for a bond election held under Subsection (b) of this
10-10 section, in which case notice shall be given as provided in Section
10-11 4, notice of any bond election shall be given as provided in
10-12 Article 704, Revised Civil Statutes of Texas, 1925, as amended, and
10-13 shall be conducted in accordance with the Texas Election Code, as
10-14 amended, except as modified by the provisions of this Act.]
10-15 (b) A separate proposition on the request of the temporary
10-16 directors may be submitted at the election for the confirmation of
10-17 the district as to whether the board of directors, in the event the
10-18 district is created, shall be authorized to issue bonds for the
10-19 purposes specified in this section. The proposition, if submitted,
10-20 shall specify the purpose for which the bonds are to be issued, the
10-21 maximum amount of bonds then proposed to be issued, the maximum
10-22 maturity date, and the maximum interest rate.
10-23 (c) The board may issue refunding bonds of the district for
10-24 the purpose of refunding and paying off any outstanding
10-25 indebtedness issued or assumed. The board shall issue refunding
10-26 bonds in accordance with Chapter 1207, Government Code. [The
10-27 refunding bonds may be sold and the proceeds applied to the payment
11-1 of outstanding indebtedness, or may be exchanged in whole or in
11-2 part for not less than a like principal amount of outstanding
11-3 indebtedness, provided that, if refunding bonds are to be exchanged
11-4 for a like amount of the outstanding indebtedness, the refunding
11-5 bonds shall bear interest at the same or lower rate than borne by
11-6 the debt refunded, unless it is shown mathematically that a saving
11-7 will result in the total amount of interest to be paid on the
11-8 refunding bonds. If refunding bonds are to be sold and the
11-9 proceeds thereof applied to the payment of any such outstanding
11-10 indebtedness, they shall be issued and payments made in the manner
11-11 specified by Chapter 503, Acts of the 54th Legislature, 1955, as
11-12 amended (Article 717k, Vernon's Texas Civil Statutes).]
11-13 (d) Bonds of the district shall bear interest at a rate not
11-14 to exceed the rate provided by Chapter 1204, Government Code, shall
11-15 mature within 40 years of their date, shall be executed in the name
11-16 of the hospital district and in its behalf by the president of the
11-17 board and countersigned by the secretary in the manner provided by
11-18 Chapter 618, Government Code, as added by Chapter 227, Acts of the
11-19 76th Legislature, Regular Session, 1999 [Chapter 204, Acts of the
11-20 57th Legislature, Regular Session, 1961 (Article 717j-1, Vernon's
11-21 Texas Civil Statutes)], and shall be subject to the same
11-22 requirements in the matter of approval by the attorney general and
11-23 registration by the comptroller of public accounts as are by law
11-24 provided for approval and registration of bonds issued by counties.
11-25 On the approval of the bonds by the attorney general and
11-26 registration by the comptroller, they are incontestable for any
11-27 cause.
12-1 SECTION 5. Section 9, Chapter 29, Acts of the 65th
12-2 Legislature, Regular Session, 1977, is amended to read as follows:
12-3 Sec. 9. The board of directors is authorized to issue revenue
12-4 bonds and refund any previously issued revenue bonds for
12-5 purchasing, constructing, acquiring, repairing, equipping, or
12-6 renovating buildings and improvements for district [hospital]
12-7 purposes, and for acquiring sites for them, the bonds to be payable
12-8 from and secured by a pledge of all or any part of the revenues of
12-9 the district to be derived from the operation of its hospital
12-10 system [or hospitals]. The bonds may be additionally secured by a
12-11 mortgage or deed of trust lien on any part or all of its
12-12 properties. The bonds shall be issued in the manner and in
12-13 accordance with the procedures and requirements specified for the
12-14 issuance of revenue bonds by county hospital authorities in
12-15 Sections 264.042, 264.043, 264.044, 264.046, 264.047, 264.048, and
12-16 264.049, Health and Safety Code [8, 10, 11, 12, and 13 of Chapter
12-17 122, Acts of the 58th Legislature, 1963, as amended (Article 4494r,
12-18 Vernon's Texas Civil Statutes)].
12-19 SECTION 6. Section 11, Chapter 29, Acts of the 65th
12-20 Legislature, Regular Session, 1977, is amended to read as follows:
12-21 Sec. 11. The board of directors has the power to prescribe
12-22 the method and manner of making purchases and expenditures by and
12-23 for the hospital district, and shall also be authorized to
12-24 prescribe all accounting and control procedures. All contracts for
12-25 construction in excess of the amount provided by Section 271.024,
12-26 Local Government Code, [or purchases involving the expenditure of
12-27 more than $5,000] may be made only after competitive bidding
13-1 [advertising] in the manner provided by Subchapter B, Chapter 271,
13-2 Local Government Code. The provisions of Chapter 2253, Government
13-3 Code, relating to performance and payment bonds, applies [Chapter
13-4 163, General Laws, Acts of the 42nd Legislature, Regular Session,
13-5 1931 (Article 2368a, Vernon's Texas Civil Statutes). The
13-6 provisions of Article 5160, Revised Statutes, apply] to
13-7 construction contracts let by the district. The district may
13-8 acquire equipment for use in its hospital system and mortgage or
13-9 pledge the property so acquired as security for the payment of the
13-10 purchase price, but any such contract shall provide for the entire
13-11 obligation of the district to be retired within five years from the
13-12 date of the contract. Except as otherwise provided by this Act
13-13 [permitted in the preceding sentence and as permitted by Sections 8
13-14 and 9], the district may incur no obligation payable from any
13-15 revenues of the district, taxes or otherwise, except those on hand
13-16 or to be on hand within the current and following fiscal year of
13-17 the district.
13-18 SECTION 7. Section 12(a), Chapter 29, Acts of the 65th
13-19 Legislature, Regular Session, 1977, is amended to read as follows:
13-20 (a) The board of directors of the district shall name one or
13-21 more banks [within its boundaries] to serve as depository for the
13-22 funds of the district. All funds of the district, except those
13-23 invested as provided in Section 6 of this Act, and those
13-24 transmitted to a bank or banks as payment for bonds or obligations
13-25 issued by the district, shall be deposited as received with the
13-26 depository bank and shall remain on deposit, provided that nothing
13-27 in this Act shall limit the power of the board to place a portion
14-1 of such funds on time deposit or purchase certificates of deposit.
14-2 SECTION 8. Section 15(a), Chapter 29, Acts of the 65th
14-3 Legislature, Regular Session, 1977, is amended to read as follows:
14-4 (a) The district has the right and power of eminent domain
14-5 for the purpose of acquiring by condemnation property of any kind
14-6 and character in fee simple, or any lesser interest, within the
14-7 boundaries of the district necessary or convenient to the powers,
14-8 rights, and privileges conferred by this Act, in the manner
14-9 provided by the general law with respect to condemnation by
14-10 counties, provided that the district shall not be required to make
14-11 bond or deposits in the registry of the trial court as required by
14-12 Section 21.021, Property Code [Paragraph 2 of Article 3268, Revised
14-13 Civil Statutes of Texas, 1925, as amended]. In condemnation
14-14 proceedings being prosecuted by the district, the district shall
14-15 not be required to pay in advance or give bond or other security
14-16 for costs in the trial court, nor to give any bond otherwise
14-17 required for the issuance of a temporary restraining order or a
14-18 temporary injunction nor to give bond for costs or for supersedeas
14-19 on any appeal or writ of error.
14-20 SECTION 9. Section 16, Chapter 29, Acts of the 65th
14-21 Legislature, Regular Session, 1977, is amended to read as follows:
14-22 Sec. 16. [(a)] The directors shall have the authority to
14-23 levy taxes for the entire year in which the district is
14-24 established. The Tax Code governs the appraisal of property for
14-25 and assessment and collection of district taxes. The board may
14-26 provide for the appointment of a tax assessor-collector for the
14-27 district or may contract for the assessment and collection of taxes
15-1 as provided by the Tax Code [All taxes of the district shall be
15-2 assessed and collected on county tax values as provided in
15-3 Subsection (b) of this section unless the directors, by majority
15-4 vote, elect to have taxes assessed and collected by the district's
15-5 own tax assessor-collector under Subsection (c) of this section.
15-6 Any such election may be made prior to December 1 annually and
15-7 shall govern the manner in which taxes are assessed and collected
15-8 until changed by a similar resolution.]
15-9 [(b) Under this subsection, district taxes shall be assessed
15-10 and collected on county tax values in the same manner as provided
15-11 by law with relation to county taxes. The tax assessor-collector
15-12 of the county in which the district is situated is required to
15-13 accomplish the assessment and collection of all taxes levied by and
15-14 on behalf of the district. The assessor-collector of taxes shall
15-15 charge and deduct from payments to the hospital district an amount
15-16 as fees for assessing and collecting the taxes, at a rate of up to
15-17 two percent of the amounts collected, as determined by the board of
15-18 directors, but the amount paid may not exceed $5,000 in any one
15-19 calendar year. The fees shall be deposited in the officers salary
15-20 fund of the county and reported as fees of office of the county tax
15-21 assessor-collector. Interest and penalties on taxes paid to the
15-22 hospital district shall be the same as in the case of county taxes.
15-23 Discounts shall be the same as allowed by the county. The residue
15-24 of tax collections after deduction of discounts and fees for
15-25 assessing and collecting shall be deposited in the district's
15-26 depository. The bond of the county tax assessor-collector shall
15-27 stand as security for the proper performance of his duties as
16-1 assessor-collector of the district, or, if in the judgment of the
16-2 board of directors it is necessary, additional bond payable to the
16-3 district may be required. In all matters pertaining to the
16-4 assessment, collection, and enforcement of taxes for the district,
16-5 the county tax assessor-collector is authorized to act in all
16-6 respects according to the laws of the state relating to state and
16-7 county taxes.]
16-8 [(c) Under this subsection, taxes shall be assessed and
16-9 collected by a tax assessor-collector appointed by the directors,
16-10 who shall also fix the terms of his employment, compensation, and
16-11 requirement for bond to assure the faithful performance of his
16-12 duties, but in no event may the bond be for less than $5,000].
16-13 SECTION 10. Section 18, Chapter 29, Acts of the 65th
16-14 Legislature, Regular Session, 1977, is amended to read as follows:
16-15 Sec. 18. When a patient residing within the district has
16-16 been admitted to the district's hospital facilities, the
16-17 administrator may cause inquiry to be made as to the patient's
16-18 [his] financial circumstances and those of the relatives of the
16-19 patient legally liable for the patient's [his] support. If the
16-20 administrator [he] finds that the patient or the patient's [his]
16-21 relatives are able to pay for the patient's [his] care and
16-22 treatment in whole or in part, as determined by the district's
16-23 current indigent health care policy, an order shall be made
16-24 directing the patient or the patient's [his] relatives to pay to
16-25 the hospital district for the care and support of the patient a
16-26 specified sum each week in proportion to their financial ability.
16-27 The administrator shall have power and authority to collect the
17-1 sums from the estate of the patient or the patient's [his]
17-2 relatives legally liable for the patient's [his] support in the
17-3 manner provided by law for collection of expenses in the last
17-4 illness of a deceased person. If the administrator finds that the
17-5 patient or the patient's [his] relatives are not able to pay either
17-6 in whole or in part for the patient's [his] care and treatment in
17-7 the hospital, it shall become a charge on the hospital district as
17-8 to the amount of the inability to pay. Should there be any dispute
17-9 as to the ability to pay or doubt in the mind of the administrator
17-10 [or manager], the board of directors shall hear and determine the
17-11 issue after calling witnesses. [Appeals from the final order of
17-12 the board lie to the district court. The substantial evidence rule
17-13 applies.]
17-14 SECTION 11. Chapter 29, Acts of the 65th Legislature,
17-15 Regular Session, 1977, is amended by adding Section 18A to read as
17-16 follows:
17-17 Sec. 18A. (a) The district may be dissolved only if the
17-18 dissolution is approved by a majority of the qualified voters of
17-19 the district voting in an election called and held for that
17-20 purpose.
17-21 (b) The board may order an election on the question of
17-22 dissolving the district and disposing of the district's assets and
17-23 obligations. The board shall order an election if the board
17-24 receives a petition requesting an election that is signed by at
17-25 least 15 percent of the registered voters in the district.
17-26 (c) The election shall be held not later than the 60th day
17-27 after the date the election is ordered. Section 41.001(a),
18-1 Election Code, does not apply to an election ordered under this
18-2 section. The order calling the election shall state:
18-3 (1) the nature of the election, including the
18-4 proposition that is to appear on the ballot;
18-5 (2) the date of the election;
18-6 (3) the hours during which the polls will be open; and
18-7 (4) the location of the polling places.
18-8 (d) The board shall give notice of the election by
18-9 publishing a substantial copy of the election order in a newspaper
18-10 with general circulation in the district once a week for two
18-11 consecutive weeks. The first publication must appear not less than
18-12 35 days before the date set for the election. The ballot for the
18-13 election shall be printed to permit voting for or against the
18-14 proposition: "The dissolution of the Reagan Hospital District of
18-15 Reagan County, Texas."
18-16 (e) If a majority of the votes in the election favor
18-17 dissolution, the board shall find that the district is dissolved.
18-18 If a majority of the votes in the election do not favor
18-19 dissolution, the board shall continue to administer the district,
18-20 and another election on the question of dissolution may not be held
18-21 before the first anniversary of the most recent election to
18-22 dissolve the district.
18-23 (f) If a majority of the votes in the election favor
18-24 dissolution, the board shall:
18-25 (1) transfer the land, buildings, improvements,
18-26 equipment, and other assets that belong to the district to Reagan
18-27 County or to another governmental entity in Reagan County;
19-1 (2) sell the assets and liabilities to another person;
19-2 or
19-3 (3) administer the property, assets, and debts until
19-4 all funds have been disposed of and all district debts have been
19-5 paid or settled.
19-6 (g) If the district transfers the land, buildings,
19-7 improvements, equipment, and other assets to a county or other
19-8 governmental entity, the county or entity assumes all debts and
19-9 obligations of the district at the time of the transfer and the
19-10 district is dissolved. If the district does not transfer the land,
19-11 buildings, improvements, equipment, and other assets to a county or
19-12 other governmental entity, the board shall sell the assets and
19-13 liabilities to another person or administer the property, assets,
19-14 and debts of the district until all funds have been disposed of and
19-15 all district debts have been paid or settled, at which time the
19-16 district is dissolved.
19-17 (h) After the board finds that the district is dissolved,
19-18 the board shall:
19-19 (1) determine the debt owed by the district; and
19-20 (2) impose on the property included in the district's
19-21 tax rolls a tax that is in proportion of the debt to the property
19-22 value.
19-23 (i) When all outstanding debts and obligations of the
19-24 district are paid, the board shall order the secretary to return
19-25 the pro rata share of all unused tax money to each district
19-26 taxpayer.
19-27 (j) A taxpayer may request that the taxpayer's share of
20-1 surplus tax money be credited to the taxpayer's county taxes. If a
20-2 taxpayer requests the credit, the board shall direct the secretary
20-3 to transmit the funds to the county tax assessor-collector.
20-4 (k) After the district has paid all its debts and has
20-5 disposed of all its assets and funds as prescribed by this section,
20-6 the board shall file a written report with the Commissioners Court
20-7 of Reagan County setting forth a summary of the board's actions in
20-8 dissolving the district.
20-9 (l) Not later than the 10th day after the date it receives
20-10 the report and determines that the requirements of this section
20-11 have been fulfilled, the Commissioners Court of Reagan County shall
20-12 enter an order dissolving the district and releasing the board of
20-13 directors of the district from any further duty or obligation.
20-14 (m) The district may provide for the sale or transfer of the
20-15 district's assets and liabilities to another person or entity. The
20-16 dissolution of the district and the sale or transfer of the
20-17 district's assets and liabilities to another person or entity may
20-18 not contravene a trust indenture or bond resolution relating to the
20-19 outstanding bonds of the district. The dissolution and sale or
20-20 transfer does not diminish or impair the rights of a holder of an
20-21 outstanding bond, warrant, or other obligation of the district.
20-22 (n) The sale or transfer of the district's assets and
20-23 liabilities must satisfy the debt and bond obligations of the
20-24 district in a manner that protects the interests of the residents
20-25 of the district, including the residents' collective property
20-26 rights in the district's assets. A grant from federal funds is an
20-27 obligation to be repaid in satisfaction. The district may not
21-1 transfer or dispose of the district's assets except for due
21-2 compensation unless the transfer is made to another governmental
21-3 entity that serves the district and the transferred assets are to
21-4 be used for the benefit of the residents of the district.
21-5 SECTION 12. (a) Before the date a person may file for a
21-6 place on the ballot for election to the board of directors of the
21-7 Reagan Hospital District of Reagan County, Texas, in 2002, the
21-8 board shall establish staggered terms for the director positions
21-9 and determine which director positions will be elected by place and
21-10 which positions will be elected at-large. In establishing staggered
21-11 terms for directors after the effective date of this Act, the board
21-12 may provide for the term of a director then in office to continue
21-13 as necessary until the first election after the effective date of
21-14 this Act for that director position.
21-15 (b) The election of the members of the Board of Directors of
21-16 the Reagan Hospital District of Reagan County, Texas, and any
21-17 governmental acts and proceedings of the district occurring before
21-18 the effective date of this Act are validated as of the dates they
21-19 occurred. The elections, acts, and proceedings may not be held
21-20 invalid because they were not performed in accordance with law.
21-21 (c) This Act does not apply to any matter that on the
21-22 effective date of this Act:
21-23 (1) is involved in litigation if the litigation
21-24 ultimately results in the matter being held invalid by a final
21-25 judgment of a court of competent jurisdiction; or
21-26 (2) has been held invalid by a final judgment of a
21-27 court of competent jurisdiction.
22-1 SECTION 13. This Act takes effect September 1, 2001.