1-1 By: Craddick (Senate Sponsor - Duncan) H.B. No. 3661
1-2 (In the Senate - Received from the House April 30, 2001;
1-3 May 1, 2001, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 4, 2001, reported favorably by the
1-5 following vote: Yeas 6, Nays 0; May 4, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the powers, duties, and board of managers of the Reagan
1-9 Hospital District of Reagan County, Texas.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 5, Chapter 29, Acts of the 65th
1-12 Legislature, Regular Session, 1977, is amended to read as follows:
1-13 Sec. 5. (a) The board of directors consists of six members
1-14 with one director elected from each commissioners precinct of
1-15 Reagan County and two directors elected from the district at large.
1-16 A director elected from a commissioners precinct is not required to
1-17 be a resident of that commissioners precinct. The directors serve
1-18 three-year staggered terms. [On the effective date of this Act,
1-19 the following persons shall constitute the temporary directors of
1-20 the district:]
1-21 [1. Frank Sandel;]
1-22 [2. E. G. Cauble, Jr.;]
1-23 [3. Wade Jones;]
1-24 [4. Buck Schaible;]
1-25 [5. Mike Elkins; and]
1-26 [6. Jack Black.]
1-27 [(b) Each of the directors shall execute the constitutional
1-28 oath of office within 60 days of the effective date of this Act.
1-29 Should any of the named directors refuse to act or for any reason
1-30 fail to qualify as required, the remaining temporary directors
1-31 shall by majority vote appoint a successor or successors to fill
1-32 the vacancy. The terms of the first, third, and fifth named
1-33 directors shall expire on the first Saturday in April of the year
1-34 following the election creating the district, and the terms of the
1-35 second, fourth, and sixth named directors shall expire on the first
1-36 Saturday in April of the second year following the election
1-37 creating the district. Successors shall be elected by a vote of
1-38 the electors of the entire district for two-year terms.]
1-39 [(c) When the creation of the district is approved and the
1-40 returns of the election are officially canvassed, the persons
1-41 acting as temporary directors become permanent directors whose
1-42 terms expire as provided in Subsection (b) of this section.] Each
1-43 permanent director and the director's [his] successor in office
1-44 shall qualify by executing the constitutional oath of office.
1-45 (b) A redistricting or other change in the boundaries of the
1-46 commissioners precincts of Reagan County does not affect the
1-47 service or term of a member of the district's board of directors in
1-48 office when the change occurs. The change in the commissioners
1-49 precincts applies to each election of directors occurring after the
1-50 change takes effect as the terms of directors then in office
1-51 expire.
1-52 (c) [(d)] No person may be appointed or elected as a member
1-53 of the board of directors of the hospital district unless the
1-54 person [he] is a resident of the district and a qualified voter
1-55 [thereof and owns property subject to taxation therein and unless
1-56 at the time of such election or appointment he shall be more than
1-57 18 years of age].
1-58 (d) [(e)] The board of directors shall organize by electing
1-59 one of their number as president, one of their number as
1-60 vice-president, and a secretary, who need not be a director.
1-61 Officers are elected for a term of one year and vacancies shall be
1-62 filled for the unexpired term by vote of the board. Any four
1-63 members of the board of directors constitute a quorum and a
1-64 concurrence of four is sufficient in all matters pertaining to the
2-1 business of the district. All vacancies in the office of director
2-2 shall be filled for the unexpired term by appointment by the
2-3 remainder of the board of directors and each appointee holds office
2-4 for the unexpired term for which the person was appointed. If the
2-5 number of directors is reduced to less than five, the remaining
2-6 directors shall immediately call a special election to fill the
2-7 vacancies, and upon their failure to do so, the district court, on
2-8 application of any resident [elector or taxpayer] of the district,
2-9 shall order the election.
2-10 (e) [(f)] A regular election of directors shall be held on
2-11 the first [third] Saturday in May of each year, and shall be
2-12 ordered by the board in accordance with the applicable provisions
2-13 of Chapter 3, Election Code. Notice [notice] of the election shall
2-14 be published in a newspaper of general circulation in the district
2-15 [county] one time in accordance with Chapter 4, Election Code [at
2-16 least 10 days prior to the date of election]. Any person desiring
2-17 the person's [his] name to be printed on the ballot as a candidate
2-18 for director shall file an application with the secretary of the
2-19 board in accordance with Chapter 144, Election Code, asking that
2-20 the person's [his] name be printed on the ballot. The application
2-21 must specify the commissioners precinct for which the person is
2-22 applying to be a candidate or state that the person is applying to
2-23 be a candidate for election to an at-large position [The
2-24 application must be filed not later than 5 p.m. of the 45th day
2-25 before the date on which the election is held].
2-26 SECTION 2. Section 6, Chapter 29, Acts of the 65th
2-27 Legislature, Regular Session, 1977, is amended to read as follows:
2-28 Sec. 6. (a) The board of directors shall manage, control,
2-29 and administer the hospital system and all funds and resources of
2-30 the district, but operating, depreciation, or building fund
2-31 reserves may not be invested in any funds or securities other than
2-32 those specified in Chapter 2256, Government Code [Articles 836 and
2-33 837, Revised Civil Statutes of Texas, 1925, as amended].
2-34 (b) The board is given full authority to establish rules and
2-35 regulations relating to seniority of employees of the district, and
2-36 may establish or administer a retirement program or elect to
2-37 participate in any statewide retirement program in which the
2-38 district is eligible to participate.
2-39 (c) The district may give effect to previous years of
2-40 service for those employees who have been continuously employed in
2-41 the operation or management of the hospital facilities acquired
2-42 from the county or any city or town on the creation of the
2-43 district. The district, through its board of directors, shall have
2-44 the power and authority to sue and be sued and to promulgate rules
2-45 governing the operation of the hospital, hospital system, its
2-46 staff, and employees.
2-47 (d) The board of directors may appoint a qualified person to
2-48 be known as the administrator of the hospital district and may in
2-49 its discretion appoint assistants to the administrator. The
2-50 administrator and assistant administrator, if any, serve at the
2-51 will of the board and receive compensation fixed by the board. The
2-52 administrator shall, on assuming the [his] duties of administrator,
2-53 execute a bond payable to the hospital district in an amount set by
2-54 the board of directors, not less than $5,000, conditioned on
2-55 performance of the duties required of the administrator [him], and
2-56 containing other conditions as the board may require. The board
2-57 may pay for the bond with district funds. The administrator shall
2-58 supervise all the work and activities of the district and shall
2-59 have general direction of the affairs of the district, subject to
2-60 the limitations prescribed by the board.
2-61 (e) The board of directors shall have the authority to
2-62 appoint, dismiss from the staff, or contract with doctors as it
2-63 deems necessary for the efficient operation of the district, and
2-64 may provide for temporary appointments to the staff if warranted by
2-65 circumstances.
2-66 (f) The board may delegate to the administrator the
2-67 authority to employ technicians, nurses, and employees of the
2-68 district.
2-69 (g) The board shall be authorized to contract with any other
3-1 political subdivision or governmental agency whereby the district
3-2 will provide investigatory or other services as to the medical,
3-3 hospital, or welfare needs of the inhabitants of the district and
3-4 shall be authorized to contract with any county or incorporated
3-5 municipality located outside its boundaries for the hospitalization
3-6 and treatment of the sick, diseased, or injured persons of any such
3-7 county or municipality, and shall have the authority to contract
3-8 with the state or agencies of the federal government for the
3-9 hospital treatment of sick, diseased, or injured persons.
3-10 (h) The board of directors may purchase or lease property,
3-11 facilities, and equipment for the district to use in the hospital
3-12 system and may mortgage or pledge the property, facilities, or
3-13 equipment as security for the payment of the purchase price.
3-14 (i) The board of directors may spend district funds, enter
3-15 into agreements, and take other necessary action to recruit
3-16 physicians and other persons to serve as medical staff members or
3-17 employees of the district, including:
3-18 (1) advertising and marketing;
3-19 (2) paying travel, recruitment, and relocation
3-20 expenses;
3-21 (3) providing a loan or scholarship to a physician or
3-22 a person currently enrolled in health care education courses at an
3-23 institution of higher education who contractually agrees to become
3-24 a district employee or medical staff member; or
3-25 (4) contracting with one or more full-time medical
3-26 students or other students in a health occupation, each of whom
3-27 must be enrolled in and in good standing at an accredited medical
3-28 school, college, or university, to pay the student's tuition or
3-29 other expenses in consideration of the student's agreement to serve
3-30 as an employee or independent contractor for the district.
3-31 (j) The board may institute a suit to enforce the payment of
3-32 taxes and to foreclose liens to secure the payment of taxes due to
3-33 the district.
3-34 (k) The board may provide or contract for the provision of
3-35 educational programs or courses for employees and medical staff of
3-36 the district.
3-37 (l) The board may institute a suit to collect amounts owed
3-38 to the district by patients who have not been determined to be
3-39 unable to pay under Section 18.
3-40 (m) The district may sponsor and create a nonprofit
3-41 corporation under the Texas Non-Profit Corporation Act (Article
3-42 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
3-43 contribute funds to or solicit funds for the corporation. The
3-44 corporation may use its funds only to provide health care or other
3-45 services the district is authorized to provide under this Act. The
3-46 board of directors of the hospital district shall establish
3-47 adequate controls to ensure that the corporation uses its funds as
3-48 required by this subsection. The corporation may invest
3-49 corporation funds in any manner in which the district may invest
3-50 funds, including investing funds as authorized by Chapter 2256,
3-51 Government Code.
3-52 (n) The directors may participate in any group health
3-53 insurance plan sponsored by the district for district employees.
3-54 SECTION 3. Section 7, Chapter 29, Acts of the 65th
3-55 Legislature, Regular Session, 1977, is amended to read as follows:
3-56 Sec. 7. (a) The district shall be operated on the basis of a
3-57 fiscal year established by the board. The fiscal year may not be
3-58 changed when revenue bonds are outstanding or more than one time in
3-59 a 24-month period.
3-60 (b) The board [commencing on October 1 of each year and
3-61 ending on September 30 of the following year, and every fiscal
3-62 year, it] shall cause an independent audit to be made annually of
3-63 the books and records [financial condition] of the district. The
3-64 audit [, which], together with other records of the district, shall
3-65 be open to inspection at the principal office of the district.
3-66 (c) The administrator shall prepare an annual budget for
3-67 approval by the board of directors. The budget shall [also]
3-68 contain a complete financial statement of the district showing all
3-69 outstanding obligations of the district, the cash on hand to the
4-1 credit of each fund of the district, the funds received from all
4-2 sources during the previous year, the funds available from all
4-3 sources during the ensuing year, with balances expected at year end
4-4 of the year in which the budget is being prepared, estimated
4-5 revenues and balances available to cover the proposed budget, the
4-6 estimated tax rate which will be required, and the proposed
4-7 expenditures, disbursements, and estimated receipts and collections
4-8 for the following fiscal year. A public hearing on the annual
4-9 budget shall be held by the board of directors after notice of the
4-10 hearing has been published one time at least 10 days before the
4-11 date set for the hearing in a newspaper of [or newspapers which
4-12 individually or collectively provide] general circulation in the
4-13 hospital district. Any resident [property taxpayer] of the
4-14 district shall have the right to be present and participate in the
4-15 hearing. At the conclusion of the hearing, the budget, as proposed
4-16 by the administrator, shall be acted on by the board of directors.
4-17 The board of directors shall have authority to make such changes in
4-18 the budget as in their judgment the law warrants and the interest
4-19 of the taxpayers demand. No expenditure may be made for any
4-20 expense not included in the annual budget or an amendment to it.
4-21 The annual budget may be amended from time to time as the
4-22 circumstances may require, but the annual budget, and all
4-23 amendments, shall be approved by the board of directors.
4-24 (d) As soon as practicable after the close of each fiscal
4-25 year, the administrator shall prepare for the board a full sworn
4-26 statement of all moneys belonging to the district and a full
4-27 account of disbursements.
4-28 SECTION 4. Section 8, Chapter 29, Acts of the 65th
4-29 Legislature, Regular Session, 1977, is amended to read as follows:
4-30 Sec. 8. (a) The board of directors shall have the power to
4-31 issue and sell general obligation [its] bonds authorized by an
4-32 election in the name and on the faith and credit of the hospital
4-33 district for the purchase, construction, acquisition, repair, or
4-34 renovation of buildings and improvements, [and] equipping the
4-35 buildings and improvements, and acquisition of sites to be used for
4-36 district [them for hospital] purposes. At the time of the issuance
4-37 of any general obligation bonds by the district, a tax shall be
4-38 levied by the board sufficient to create an interest and sinking
4-39 fund to pay the interest on and principal of the bonds as they
4-40 mature, providing the tax, together with any other taxes levied for
4-41 the district, shall not exceed 75 on each $100 valuation in any
4-42 year [the rate of tax approved under Section 4 of this Act]. No
4-43 general obligation bonds shall be issued by the hospital district
4-44 [except refunding bonds] until authorized by a majority of the
4-45 qualified voters [electors] of the district voting at an election
4-46 called for that purpose. The election shall be conducted in
4-47 accordance with Chapter 1251, Government Code. [The order for bond
4-48 election shall specify the date of the election, the amount of
4-49 bonds to be authorized, the maximum maturity date and rate of
4-50 interest they are to bear, the place or places where the election
4-51 shall be held, the presiding judge and alternate judge for each
4-52 voting place, and shall provide for clerks as in county elections.
4-53 Except for a bond election held under Subsection (b) of this
4-54 section, in which case notice shall be given as provided in Section
4-55 4, notice of any bond election shall be given as provided in
4-56 Article 704, Revised Civil Statutes of Texas, 1925, as amended, and
4-57 shall be conducted in accordance with the Texas Election Code, as
4-58 amended, except as modified by the provisions of this Act.]
4-59 (b) A separate proposition on the request of the temporary
4-60 directors may be submitted at the election for the confirmation of
4-61 the district as to whether the board of directors, in the event the
4-62 district is created, shall be authorized to issue bonds for the
4-63 purposes specified in this section. The proposition, if submitted,
4-64 shall specify the purpose for which the bonds are to be issued, the
4-65 maximum amount of bonds then proposed to be issued, the maximum
4-66 maturity date, and the maximum interest rate.
4-67 (c) The board may issue refunding bonds of the district for
4-68 the purpose of refunding and paying off any outstanding
4-69 indebtedness issued or assumed. The board shall issue refunding
5-1 bonds in accordance with Chapter 1207, Government Code. [The
5-2 refunding bonds may be sold and the proceeds applied to the payment
5-3 of outstanding indebtedness, or may be exchanged in whole or in
5-4 part for not less than a like principal amount of outstanding
5-5 indebtedness, provided that, if refunding bonds are to be exchanged
5-6 for a like amount of the outstanding indebtedness, the refunding
5-7 bonds shall bear interest at the same or lower rate than borne by
5-8 the debt refunded, unless it is shown mathematically that a saving
5-9 will result in the total amount of interest to be paid on the
5-10 refunding bonds. If refunding bonds are to be sold and the
5-11 proceeds thereof applied to the payment of any such outstanding
5-12 indebtedness, they shall be issued and payments made in the manner
5-13 specified by Chapter 503, Acts of the 54th Legislature, 1955, as
5-14 amended (Article 717k, Vernon's Texas Civil Statutes).]
5-15 (d) Bonds of the district shall bear interest at a rate not
5-16 to exceed the rate provided by Chapter 1204, Government Code, shall
5-17 mature within 40 years of their date, shall be executed in the name
5-18 of the hospital district and in its behalf by the president of the
5-19 board and countersigned by the secretary in the manner provided by
5-20 Chapter 618, Government Code, as added by Chapter 227, Acts of the
5-21 76th Legislature, Regular Session, 1999 [Chapter 204, Acts of the
5-22 57th Legislature, Regular Session, 1961 (Article 717j-1, Vernon's
5-23 Texas Civil Statutes)], and shall be subject to the same
5-24 requirements in the matter of approval by the attorney general and
5-25 registration by the comptroller of public accounts as are by law
5-26 provided for approval and registration of bonds issued by counties.
5-27 On the approval of the bonds by the attorney general and
5-28 registration by the comptroller, they are incontestable for any
5-29 cause.
5-30 SECTION 5. Section 9, Chapter 29, Acts of the 65th
5-31 Legislature, Regular Session, 1977, is amended to read as follows:
5-32 Sec. 9. The board of directors is authorized to issue revenue
5-33 bonds and refund any previously issued revenue bonds for
5-34 purchasing, constructing, acquiring, repairing, equipping, or
5-35 renovating buildings and improvements for district [hospital]
5-36 purposes, and for acquiring sites for them, the bonds to be payable
5-37 from and secured by a pledge of all or any part of the revenues of
5-38 the district to be derived from the operation of its hospital
5-39 system [or hospitals]. The bonds may be additionally secured by a
5-40 mortgage or deed of trust lien on any part or all of its
5-41 properties. The bonds shall be issued in the manner and in
5-42 accordance with the procedures and requirements specified for the
5-43 issuance of revenue bonds by county hospital authorities in
5-44 Sections 264.042, 264.043, 264.044, 264.046, 264.047, 264.048, and
5-45 264.049, Health and Safety Code [8, 10, 11, 12, and 13 of Chapter
5-46 122, Acts of the 58th Legislature, 1963, as amended (Article 4494r,
5-47 Vernon's Texas Civil Statutes)].
5-48 SECTION 6. Section 11, Chapter 29, Acts of the 65th
5-49 Legislature, Regular Session, 1977, is amended to read as follows:
5-50 Sec. 11. The board of directors has the power to prescribe
5-51 the method and manner of making purchases and expenditures by and
5-52 for the hospital district, and shall also be authorized to
5-53 prescribe all accounting and control procedures. All contracts for
5-54 construction in excess of the amount provided by Section 271.024,
5-55 Local Government Code, [or purchases involving the expenditure of
5-56 more than $5,000] may be made only after competitive bidding
5-57 [advertising] in the manner provided by Subchapter B, Chapter 271,
5-58 Local Government Code. The provisions of Chapter 2253, Government
5-59 Code, relating to performance and payment bonds, applies [Chapter
5-60 163, General Laws, Acts of the 42nd Legislature, Regular Session,
5-61 1931 (Article 2368a, Vernon's Texas Civil Statutes). The
5-62 provisions of Article 5160, Revised Statutes, apply] to
5-63 construction contracts let by the district. The district may
5-64 acquire equipment for use in its hospital system and mortgage or
5-65 pledge the property so acquired as security for the payment of the
5-66 purchase price, but any such contract shall provide for the entire
5-67 obligation of the district to be retired within five years from the
5-68 date of the contract. Except as otherwise provided by this Act
5-69 [permitted in the preceding sentence and as permitted by Sections 8
6-1 and 9], the district may incur no obligation payable from any
6-2 revenues of the district, taxes or otherwise, except those on hand
6-3 or to be on hand within the current and following fiscal year of
6-4 the district.
6-5 SECTION 7. Section 12(a), Chapter 29, Acts of the 65th
6-6 Legislature, Regular Session, 1977, is amended to read as follows:
6-7 (a) The board of directors of the district shall name one or
6-8 more banks [within its boundaries] to serve as depository for the
6-9 funds of the district. All funds of the district, except those
6-10 invested as provided in Section 6 of this Act, and those
6-11 transmitted to a bank or banks as payment for bonds or obligations
6-12 issued by the district, shall be deposited as received with the
6-13 depository bank and shall remain on deposit, provided that nothing
6-14 in this Act shall limit the power of the board to place a portion
6-15 of such funds on time deposit or purchase certificates of deposit.
6-16 SECTION 8. Section 15(a), Chapter 29, Acts of the 65th
6-17 Legislature, Regular Session, 1977, is amended to read as follows:
6-18 (a) The district has the right and power of eminent domain
6-19 for the purpose of acquiring by condemnation property of any kind
6-20 and character in fee simple, or any lesser interest, within the
6-21 boundaries of the district necessary or convenient to the powers,
6-22 rights, and privileges conferred by this Act, in the manner
6-23 provided by the general law with respect to condemnation by
6-24 counties, provided that the district shall not be required to make
6-25 bond or deposits in the registry of the trial court as required by
6-26 Section 21.021, Property Code [Paragraph 2 of Article 3268, Revised
6-27 Civil Statutes of Texas, 1925, as amended]. In condemnation
6-28 proceedings being prosecuted by the district, the district shall
6-29 not be required to pay in advance or give bond or other security
6-30 for costs in the trial court, nor to give any bond otherwise
6-31 required for the issuance of a temporary restraining order or a
6-32 temporary injunction nor to give bond for costs or for supersedeas
6-33 on any appeal or writ of error.
6-34 SECTION 9. Section 16, Chapter 29, Acts of the 65th
6-35 Legislature, Regular Session, 1977, is amended to read as follows:
6-36 Sec. 16. [(a)] The directors shall have the authority to
6-37 levy taxes for the entire year in which the district is
6-38 established. The Tax Code governs the appraisal of property for
6-39 and assessment and collection of district taxes. The board may
6-40 provide for the appointment of a tax assessor-collector for the
6-41 district or may contract for the assessment and collection of taxes
6-42 as provided by the Tax Code [All taxes of the district shall be
6-43 assessed and collected on county tax values as provided in
6-44 Subsection (b) of this section unless the directors, by majority
6-45 vote, elect to have taxes assessed and collected by the district's
6-46 own tax assessor-collector under Subsection (c) of this section.
6-47 Any such election may be made prior to December 1 annually and
6-48 shall govern the manner in which taxes are assessed and collected
6-49 until changed by a similar resolution.]
6-50 [(b) Under this subsection, district taxes shall be assessed
6-51 and collected on county tax values in the same manner as provided
6-52 by law with relation to county taxes. The tax assessor-collector
6-53 of the county in which the district is situated is required to
6-54 accomplish the assessment and collection of all taxes levied by and
6-55 on behalf of the district. The assessor-collector of taxes shall
6-56 charge and deduct from payments to the hospital district an amount
6-57 as fees for assessing and collecting the taxes, at a rate of up to
6-58 two percent of the amounts collected, as determined by the board of
6-59 directors, but the amount paid may not exceed $5,000 in any one
6-60 calendar year. The fees shall be deposited in the officers salary
6-61 fund of the county and reported as fees of office of the county tax
6-62 assessor-collector. Interest and penalties on taxes paid to the
6-63 hospital district shall be the same as in the case of county taxes.
6-64 Discounts shall be the same as allowed by the county. The residue
6-65 of tax collections after deduction of discounts and fees for
6-66 assessing and collecting shall be deposited in the district's
6-67 depository. The bond of the county tax assessor-collector shall
6-68 stand as security for the proper performance of his duties as
6-69 assessor-collector of the district, or, if in the judgment of the
7-1 board of directors it is necessary, additional bond payable to the
7-2 district may be required. In all matters pertaining to the
7-3 assessment, collection, and enforcement of taxes for the district,
7-4 the county tax assessor-collector is authorized to act in all
7-5 respects according to the laws of the state relating to state and
7-6 county taxes.]
7-7 [(c) Under this subsection, taxes shall be assessed and
7-8 collected by a tax assessor-collector appointed by the directors,
7-9 who shall also fix the terms of his employment, compensation, and
7-10 requirement for bond to assure the faithful performance of his
7-11 duties, but in no event may the bond be for less than $5,000].
7-12 SECTION 10. Section 18, Chapter 29, Acts of the 65th
7-13 Legislature, Regular Session, 1977, is amended to read as follows:
7-14 Sec. 18. When a patient residing within the district has
7-15 been admitted to the district's hospital facilities, the
7-16 administrator may cause inquiry to be made as to the patient's
7-17 [his] financial circumstances and those of the relatives of the
7-18 patient legally liable for the patient's [his] support. If the
7-19 administrator [he] finds that the patient or the patient's [his]
7-20 relatives are able to pay for the patient's [his] care and
7-21 treatment in whole or in part, as determined by the district's
7-22 current indigent health care policy, an order shall be made
7-23 directing the patient or the patient's [his] relatives to pay to
7-24 the hospital district for the care and support of the patient a
7-25 specified sum each week in proportion to their financial ability.
7-26 The administrator shall have power and authority to collect the
7-27 sums from the estate of the patient or the patient's [his]
7-28 relatives legally liable for the patient's [his] support in the
7-29 manner provided by law for collection of expenses in the last
7-30 illness of a deceased person. If the administrator finds that the
7-31 patient or the patient's [his] relatives are not able to pay either
7-32 in whole or in part for the patient's [his] care and treatment in
7-33 the hospital, it shall become a charge on the hospital district as
7-34 to the amount of the inability to pay. Should there be any dispute
7-35 as to the ability to pay or doubt in the mind of the administrator
7-36 [or manager], the board of directors shall hear and determine the
7-37 issue after calling witnesses. [Appeals from the final order of
7-38 the board lie to the district court. The substantial evidence rule
7-39 applies.]
7-40 SECTION 11. Chapter 29, Acts of the 65th Legislature,
7-41 Regular Session, 1977, is amended by adding Section 18A to read as
7-42 follows:
7-43 Sec. 18A. (a) The district may be dissolved only if the
7-44 dissolution is approved by a majority of the qualified voters of
7-45 the district voting in an election called and held for that
7-46 purpose.
7-47 (b) The board may order an election on the question of
7-48 dissolving the district and disposing of the district's assets and
7-49 obligations. The board shall order an election if the board
7-50 receives a petition requesting an election that is signed by at
7-51 least 15 percent of the registered voters in the district.
7-52 (c) The election shall be held not later than the 60th day
7-53 after the date the election is ordered. Section 41.001(a),
7-54 Election Code, does not apply to an election ordered under this
7-55 section. The order calling the election shall state:
7-56 (1) the nature of the election, including the
7-57 proposition that is to appear on the ballot;
7-58 (2) the date of the election;
7-59 (3) the hours during which the polls will be open; and
7-60 (4) the location of the polling places.
7-61 (d) The board shall give notice of the election by
7-62 publishing a substantial copy of the election order in a newspaper
7-63 with general circulation in the district once a week for two
7-64 consecutive weeks. The first publication must appear not less than
7-65 35 days before the date set for the election. The ballot for the
7-66 election shall be printed to permit voting for or against the
7-67 proposition: "The dissolution of the Reagan Hospital District of
7-68 Reagan County, Texas."
7-69 (e) If a majority of the votes in the election favor
8-1 dissolution, the board shall find that the district is dissolved.
8-2 If a majority of the votes in the election do not favor
8-3 dissolution, the board shall continue to administer the district,
8-4 and another election on the question of dissolution may not be held
8-5 before the first anniversary of the most recent election to
8-6 dissolve the district.
8-7 (f) If a majority of the votes in the election favor
8-8 dissolution, the board shall:
8-9 (1) transfer the land, buildings, improvements,
8-10 equipment, and other assets that belong to the district to Reagan
8-11 County or to another governmental entity in Reagan County;
8-12 (2) sell the assets and liabilities to another person;
8-13 or
8-14 (3) administer the property, assets, and debts until
8-15 all funds have been disposed of and all district debts have been
8-16 paid or settled.
8-17 (g) If the district transfers the land, buildings,
8-18 improvements, equipment, and other assets to a county or other
8-19 governmental entity, the county or entity assumes all debts and
8-20 obligations of the district at the time of the transfer and the
8-21 district is dissolved. If the district does not transfer the land,
8-22 buildings, improvements, equipment, and other assets to a county or
8-23 other governmental entity, the board shall sell the assets and
8-24 liabilities to another person or administer the property, assets,
8-25 and debts of the district until all funds have been disposed of and
8-26 all district debts have been paid or settled, at which time the
8-27 district is dissolved.
8-28 (h) After the board finds that the district is dissolved,
8-29 the board shall:
8-30 (1) determine the debt owed by the district; and
8-31 (2) impose on the property included in the district's
8-32 tax rolls a tax that is in proportion of the debt to the property
8-33 value.
8-34 (i) When all outstanding debts and obligations of the
8-35 district are paid, the board shall order the secretary to return
8-36 the pro rata share of all unused tax money to each district
8-37 taxpayer.
8-38 (j) A taxpayer may request that the taxpayer's share of
8-39 surplus tax money be credited to the taxpayer's county taxes. If a
8-40 taxpayer requests the credit, the board shall direct the secretary
8-41 to transmit the funds to the county tax assessor-collector.
8-42 (k) After the district has paid all its debts and has
8-43 disposed of all its assets and funds as prescribed by this section,
8-44 the board shall file a written report with the Commissioners Court
8-45 of Reagan County setting forth a summary of the board's actions in
8-46 dissolving the district.
8-47 (l) Not later than the 10th day after the date it receives
8-48 the report and determines that the requirements of this section
8-49 have been fulfilled, the Commissioners Court of Reagan County shall
8-50 enter an order dissolving the district and releasing the board of
8-51 directors of the district from any further duty or obligation.
8-52 (m) The district may provide for the sale or transfer of the
8-53 district's assets and liabilities to another person or entity. The
8-54 dissolution of the district and the sale or transfer of the
8-55 district's assets and liabilities to another person or entity may
8-56 not contravene a trust indenture or bond resolution relating to the
8-57 outstanding bonds of the district. The dissolution and sale or
8-58 transfer does not diminish or impair the rights of a holder of an
8-59 outstanding bond, warrant, or other obligation of the district.
8-60 (n) The sale or transfer of the district's assets and
8-61 liabilities must satisfy the debt and bond obligations of the
8-62 district in a manner that protects the interests of the residents
8-63 of the district, including the residents' collective property
8-64 rights in the district's assets. A grant from federal funds is an
8-65 obligation to be repaid in satisfaction. The district may not
8-66 transfer or dispose of the district's assets except for due
8-67 compensation unless the transfer is made to another governmental
8-68 entity that serves the district and the transferred assets are to
8-69 be used for the benefit of the residents of the district.
9-1 SECTION 12. (a) Before the date a person may file for a
9-2 place on the ballot for election to the board of directors of the
9-3 Reagan Hospital District of Reagan County, Texas, in 2002, the
9-4 board shall establish staggered terms for the director positions
9-5 and determine which director positions will be elected by place and
9-6 which positions will be elected at-large. In establishing staggered
9-7 terms for directors after the effective date of this Act, the board
9-8 may provide for the term of a director then in office to continue
9-9 as necessary until the first election after the effective date of
9-10 this Act for that director position.
9-11 (b) The election of the members of the Board of Directors of
9-12 the Reagan Hospital District of Reagan County, Texas, and any
9-13 governmental acts and proceedings of the district occurring before
9-14 the effective date of this Act are validated as of the dates they
9-15 occurred. The elections, acts, and proceedings may not be held
9-16 invalid because they were not performed in accordance with law.
9-17 (c) This Act does not apply to any matter that on the
9-18 effective date of this Act:
9-19 (1) is involved in litigation if the litigation
9-20 ultimately results in the matter being held invalid by a final
9-21 judgment of a court of competent jurisdiction; or
9-22 (2) has been held invalid by a final judgment of a
9-23 court of competent jurisdiction.
9-24 SECTION 13. This Act takes effect September 1, 2001.
9-25 * * * * *