By Miller                                             H.B. No. 3680
         Substitute the following for H.B. No. 3680:
         By Ramsay                                         C.S.H.B. No. 3680
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the dissolution of the DeLeon Hospital District and the
 1-3     Comanche County Hospital District and the creation of the Comanche
 1-4     County Consolidated Hospital District.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6          ARTICLE 1.  CHANGES RELATING TO DELEON HOSPITAL DISTRICT
 1-7           SECTION 1.01. Section 21A, Chapter 202, Acts of the 63rd
 1-8     Legislature, Regular Session, 1973, is amended to read as follows:
 1-9           Sec. 21A.  DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF
1-10     COMANCHE COUNTY HOSPITAL DISTRICT AND CREATION OF COMANCHE COUNTY
1-11     CONSOLIDATED [LEON VALLEY] HOSPITAL DISTRICT. (a)  The DeLeon
1-12     Hospital District may be dissolved as provided by this section.
1-13           (b)  The board of directors may order an election on the
1-14     question of the dissolution of the DeLeon Hospital District,
1-15     creation of the Comanche County Consolidated [Leon Valley] Hospital
1-16     District, transfer of the DeLeon Hospital District's assets and
1-17     obligations to the Comanche County Consolidated [Leon Valley]
1-18     Hospital District, and assumption by the Comanche County
1-19     Consolidated [Leon Valley] Hospital District of the DeLeon Hospital
1-20     District's outstanding debts.
1-21           (c)  The board shall order an election if:
1-22                 (1)  the board of the Comanche County Hospital District
1-23     orders an election under Section 21A, Chapter 203, Acts of the 63rd
1-24     Legislature, Regular Session, 1973; or
 2-1                 (2)  the board receives a petition requesting an
 2-2     election on the questions of dissolution and transfer of assets
 2-3     that is signed by at least 50 registered voters in the DeLeon
 2-4     Hospital District.
 2-5           (d)  If the board of directors orders an election under this
 2-6     section, it shall promptly notify the board of directors of the
 2-7     Comanche County Hospital District of the election order.
 2-8           (e)  The election shall be held not less than 45 or more than
 2-9     60 days after the date on which an election is ordered and shall be
2-10     held on the same date that the separate election in the Comanche
2-11     County Hospital District is held.  The board of directors shall
2-12     cooperate with the board of directors of the Comanche County
2-13     Hospital District in setting the date of the elections.  Section
2-14     41.001(a), Election Code, does not apply to an election ordered
2-15     under this section.
2-16           (f)  The ballot for the election shall be printed to permit
2-17     voting for or against the proposition:  "The dissolution of the
2-18     DeLeon Hospital District and creation of the Comanche County
2-19     Consolidated [Leon Valley] Hospital District, providing for the
2-20     levy of a tax not to exceed 25 cents on each $100 valuation on all
2-21     taxable property in the Comanche County Consolidated [Leon Valley]
2-22     Hospital District, and providing for the transfer to and assumption
2-23     by the Comanche County Consolidated [Leon Valley] Hospital District
2-24     of all outstanding bonds and indebtedness issued for hospital
2-25     purposes by the DeLeon Hospital District and any part of the county
2-26     or any city or town located in the district and the transfer of the
2-27     existing DeLeon Hospital District's assets to the Comanche County
 3-1     Consolidated [Leon Valley] Hospital District."
 3-2           (g)  Except as provided by Subsections (e) and (f) of this
 3-3     section, the election shall be held in accordance with the
 3-4     applicable provisions of the Election Code.
 3-5           (h)  The DeLeon Hospital District is dissolved if:
 3-6                 (1)  a majority of the voters in the DeLeon Hospital
 3-7     District voting in the election held under this section favor the
 3-8     proposition; and
 3-9                 (2)  a majority of the voters in the Comanche County
3-10     Hospital District voting in an election held on the same date under
3-11     Section 21A, Chapter 203, Acts of the 63rd Legislature, Regular
3-12     Session, 1973, favor the dissolution of the Comanche County
3-13     Hospital District, the creation of the Comanche County Consolidated
3-14     [Leon Valley] Hospital District, the transfer of the assets of the
3-15     Comanche County Hospital District to the Comanche County
3-16     Consolidated [Leon Valley] Hospital District, and the assumption of
3-17     the assets and obligations of the Comanche County Hospital District
3-18     by the Comanche County Consolidated [Leon Valley] Hospital
3-19     District.
3-20           (i)  The DeLeon Hospital District is not dissolved and the
3-21     board of directors shall continue to administer the DeLeon Hospital
3-22     District if a majority of the voters in either the DeLeon Hospital
3-23     District or the Comanche County Hospital District do not favor the
3-24     proposition on which they voted.
3-25           (j)  If the DeLeon Hospital District is dissolved under this
3-26     section, the board of directors shall transfer the assets and
3-27     obligations of the DeLeon Hospital District to the Comanche County
 4-1     Consolidated [Leon Valley] Hospital District.
 4-2           (k)  The board of directors may not order another election on
 4-3     the question of dissolution before the first anniversary of the
 4-4     date of the most recent election at which voters of either district
 4-5     disapproved the proposition on which they voted.
 4-6           SECTION 1.02. Section 1B, Chapter 202, Acts of the 63rd
 4-7     Legislature, Regular Session, 1973, is amended to read as follows:
 4-8           Sec. 1B.  On the dissolution of the DeLeon Hospital District
 4-9     and the approval of the creation of the Comanche County
4-10     Consolidated [Leon Valley] Hospital District, a reference in this
4-11     Act or in any other law to the DeLeon Hospital District means the
4-12     Comanche County Consolidated [Leon Valley] Hospital District.
4-13               ARTICLE 2.  CHANGES RELATING TO COMANCHE COUNTY
4-14                              HOSPITAL DISTRICT
4-15           SECTION 2.01.  Section 21A, Chapter 203, Acts of the 63rd
4-16     Legislature, Regular Session, 1973, is amended to read as follows:
4-17           Sec. 21A.  DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF
4-18     DELEON HOSPITAL DISTRICT AND CREATION OF COMANCHE COUNTY
4-19     CONSOLIDATED [LEON VALLEY] HOSPITAL DISTRICT. (a)  The Comanche
4-20     County Hospital District may be dissolved as provided by this
4-21     section.
4-22           (b)  The board of directors may order an election on the
4-23     question of the dissolution of the Comanche County Hospital
4-24     District, creation of the Comanche County Consolidated [Leon
4-25     Valley] Hospital District, transfer of the Comanche County Hospital
4-26     District's assets and obligations to the Comanche County
4-27     Consolidated [Leon Valley] Hospital District, and the assumption by
 5-1     Comanche County Consolidated [Leon Valley] Hospital District of the
 5-2     Comanche County Hospital District's outstanding debts.
 5-3           (c)  The board shall order an election if:
 5-4                 (1)  the board of the DeLeon Hospital District orders
 5-5     an election under Section 21A, Chapter 202, Acts of the 63rd
 5-6     Legislature, Regular Session, 1973; or
 5-7                 (2)  the board receives a petition requesting an
 5-8     election on the questions of dissolution and transfer of assets
 5-9     that is signed by at least 50 registered voters in the Comanche
5-10     County Hospital District.
5-11           (d)  If the board of directors orders an election under this
5-12     section, it shall promptly notify the board of directors of the
5-13     DeLeon Hospital District of the election order.
5-14           (e)  The election shall be held not less than 45 or more than
5-15     60 days after the date on which an election is ordered and shall be
5-16     held on the same date that the separate election in the DeLeon
5-17     Hospital District is held.  The board of directors shall cooperate
5-18     with the board of directors of the DeLeon Hospital District in
5-19     setting the date of the elections.  Section 41.001(a), Election
5-20     Code, does not apply to an election ordered under this section.
5-21           (f)  The ballot for the election shall be printed to permit
5-22     voting for or against the proposition:  "The dissolution of the
5-23     Comanche County Hospital District and creation of the Comanche
5-24     County Consolidated [Leon Valley] Hospital District, providing for
5-25     the levy of a tax not to exceed 25 cents on each $100 valuation on
5-26     all taxable property in the Comanche County Consolidated [Leon
5-27     Valley] Hospital District, and providing for the transfer to and
 6-1     assumption by the Comanche County Consolidated [Leon Valley]
 6-2     Hospital District of all outstanding bonds and indebtedness issued
 6-3     for hospital purposes by the Comanche County Hospital District and
 6-4     any part of the county or any city or town located in the district,
 6-5     and the transfer of the existing Comanche County Hospital
 6-6     District's assets to the Comanche County Consolidated [Leon Valley]
 6-7     Hospital District."
 6-8           (g)  Except as provided by Subsections (e) and (f) of this
 6-9     section, the election shall be held in accordance with the
6-10     applicable provisions of the Election Code.
6-11           (h)  The Comanche County Hospital District is dissolved if:
6-12                 (1)  a majority of the voters in the Comanche County
6-13     Hospital District voting in the election held under this section
6-14     favor the proposition; and
6-15                 (2)  a majority of the voters in the DeLeon Hospital
6-16     District voting in an election held on the same date under Section
6-17     21A, Chapter 202, Acts of the 63rd Legislature, Regular Session,
6-18     1973, favor the dissolution of the DeLeon Hospital District, the
6-19     creation of the Comanche County Consolidated [Leon Valley] Hospital
6-20     District, the transfer of the assets of the DeLeon Hospital
6-21     District to Comanche County Consolidated [Leon Valley] Hospital
6-22     District, and the assumption of the assets and obligations of the
6-23     DeLeon Hospital District by the Comanche County Consolidated [Leon
6-24     Valley] Hospital District.
6-25           (i)  The Comanche County Hospital District is not dissolved
6-26     and the board of directors shall continue to administer the
6-27     Comanche County Hospital District if a majority of the voters in
 7-1     either district do not favor the proposition on which they voted.
 7-2           (j)  If the Comanche County Hospital District is dissolved
 7-3     under this section, the board of directors shall transfer the
 7-4     assets and obligations of the Comanche County Hospital District to
 7-5     the Comanche County Consolidated [Leon Valley] Hospital District.
 7-6           (k)  The board of directors may not order another election on
 7-7     the question of dissolution before the first anniversary of the
 7-8     date of the most recent election at which voters of either district
 7-9     disapproved the proposition on which they voted.
7-10           SECTION 2.02.  Section 1A, Chapter 203, Acts of the 63rd
7-11     Legislature, Regular Session, 1973, is amended to read as follows:
7-12           Sec. 1A. On the dissolution of the Comanche County Hospital
7-13     District and the approval of the creation of the Comanche County
7-14     Consolidated [Leon Valley] Hospital District, a reference in this
7-15     Act or in any other law to the Comanche County Hospital District
7-16     means the Comanche County Consolidated [Leon Valley] Hospital
7-17     District.
7-18                   ARTICLE 3.  CREATION OF COMANCHE COUNTY
7-19                       CONSOLIDATED HOSPITAL DISTRICT
7-20           SECTION 3.01. Section 3.01, Chapter 132, Acts of the 74th
7-21     Legislature, Regular Session, 1995, is amended to read as follows:
7-22           Sec. 3.01. (a)  In accordance with the provisions of Section
7-23     9, Article IX, Texas Constitution, this Act authorizes the
7-24     creation, establishment, administration, maintenance, operation,
7-25     and financing of a hospital district in this state with boundaries
7-26     coextensive with the boundaries of Comanche County [as they existed
7-27     on August 10, 1992], exclusive of that portion of the county that
 8-1     is in the South Eastland County Hospital District[, of:]
 8-2                 [(1)  Commissioners Precinct Number 1 of Comanche
 8-3     County;]
 8-4                 [(2)  Commissioners Precinct Number 2 of Comanche
 8-5     County with the addition of county election precinct number 5 and
 8-6     with the deletion of county election precinct number 3 and county
 8-7     election precinct number 6;]
 8-8                 [(3)  Commissioners Precinct Number 3 of Comanche
 8-9     County with the addition of county election precinct number 3 and
8-10     county election precinct number 6 and with the deletion of county
8-11     election precinct number 5; and]
8-12                 [(4)  Commissioners Precinct Number 4 of Comanche
8-13     County].
8-14           (b)  The district is to be known as "Comanche County
8-15     Consolidated [Leon Valley] Hospital District," and it has the
8-16     rights, powers, and duties as provided in this Act.  A reference in
8-17     this Act or in any other law to the Leon Valley Hospital District
8-18     means the Comanche County Consolidated Hospital District.
8-19           SECTION 3.02.  Section 3.02, Chapter 132, Acts of the 74th
8-20     Legislature, Regular Session, 1995, is amended to read as follows:
8-21           Sec. 3.02. (a)  The Comanche County Consolidated [Leon
8-22     Valley] Hospital District may not be created unless the creation,
8-23     the assumption of debt, and the levy of taxes are approved by a
8-24     majority of the voters at an election held in the DeLeon Hospital
8-25     District and by a majority of the voters at a separate election
8-26     held in the Comanche County Hospital District.
8-27           (b)  The election in the DeLeon Hospital District and the
 9-1     election in the Comanche County Hospital District shall be held on
 9-2     the same day and must be held before September 1, 2005 [the fifth
 9-3     anniversary of the effective date of this Act].
 9-4           SECTION 3.03. Sections 3.03(a) and (c), Chapter 132, Acts of
 9-5     the 74th Legislature, Regular Session, 1995, are amended to read as
 9-6     follows:
 9-7           (a)  If the Comanche County Consolidated [Leon Valley]
 9-8     Hospital District is created in accordance with Section 21A,
 9-9     Chapter 202 and Section 21A, Chapter 203, Acts of the 63rd
9-10     Legislature, Regular Session, 1973, the following [five] persons
9-11     shall serve as temporary directors of the Comanche County
9-12     Consolidated [Leon Valley] Hospital District:
9-13                 1.  Charles Mazurek[--Precinct 1]
9-14                 2.  Jerry Morgan [Jim Abbey--Precinct 2]
9-15                 3.  Gale Easley [Ardean Kimmell--Precinct 3]
9-16                 4.  Forrest Eisenrich [Wayne Hammit--Precinct 4]
9-17                 5.  John Mack Weaver [Vincenzo Giustino--At Large]
9-18                 6.  Terry Stephens
9-19           (c)  The temporary board shall serve as the directors of the
9-20     Comanche County Consolidated [Leon Valley] Hospital District until
9-21     the initial elected directors take office.
9-22           SECTION 3.04. Section 3.04, Chapter 132, Acts of the 74th
9-23     Legislature, Regular Session, 1995, is amended to read as follows:
9-24           Sec. 3.04. (a)  If the Comanche County Consolidated [Leon
9-25     Valley] Hospital District is created, six initial directors shall
9-26     be elected at an election to be held on the first Saturday in May
9-27     following the date the Comanche County Consolidated [Leon Valley]
 10-1    Hospital District is created.
 10-2          (b)  The temporary directors may postpone the election date
 10-3    for one year or until a subsequent uniform election date if the
 10-4    temporary directors determine that there is not sufficient time to
 10-5    comply with the requirements of law or if the temporary directors
 10-6    determine that it is in the best interest of the district to
 10-7    maintain the temporary directors in place for a period of not more
 10-8    than an additional 12 months.
 10-9          (c)  At the election held to replace the temporary directors,
10-10    three directors shall be elected at large from the area within the
10-11    boundaries of the Comanche County Hospital District as those
10-12    boundaries existed on January 1, 2001, and three directors shall be
10-13    elected at large from the area within the boundaries of the DeLeon
10-14    Hospital District as those boundaries existed on January 1, 2001.
10-15    The directors elected shall serve three-year terms [One director
10-16    shall be elected from each of Commissioners Precincts Numbers 1, 2,
10-17    3, and 4 of Comanche County as those boundaries existed on August
10-18    10, 1992, and as those precincts are described by Section 3.01 of
10-19    this Act, exclusive of that portion of any precinct that is in the
10-20    South Eastland County Hospital District, and one director shall be
10-21    elected from the district at large].
10-22          (d)  At the initial election of directors following creation
10-23    of the Comanche County Consolidated [Leon Valley] Hospital
10-24    District, the three candidates [candidate] receiving the highest
10-25    number of votes from the area within the boundaries of the Comanche
10-26    County Hospital District as those boundaries existed on January 1,
10-27    2001, and the three candidates receiving the highest number of
 11-1    votes from the area within the boundaries of the DeLeon Hospital
 11-2    District as those boundaries existed on January 1, 2001, shall be
 11-3    the initial elected directors of the district [each commissioners
 11-4    precinct is the director for that precinct and the candidate
 11-5    receiving the highest number of votes from the district at large is
 11-6    the director for the district at large].
 11-7          (e)  The directors elected at the initial election of
 11-8    directors following creation of the Comanche County Consolidated
 11-9    [Leon Valley] Hospital District shall each [draw lots to determine
11-10    which three directors shall] serve a term of three years [one-year
11-11    terms and which two directors shall serve two-year terms].
11-12          (f)  On or before the date the terms of the directors elected
11-13    at the initial election expire, the board shall determine and adopt
11-14    a procedure for the election of six new directors either at large
11-15    or by place.  The procedure must provide for appropriate
11-16    representation of the residents of the district.
11-17          SECTION 3.05.  Sections 3.05(a) and (b),  Chapter 132, Acts
11-18    of the 74th Legislature, Regular Session, 1995, are amended to read
11-19    as follows:
11-20          (a)  The first directors elected under the procedure adopted
11-21    under Section 3.04(f) of this Act shall be elected at [After the
11-22    initial election of directors following creation,] an election
11-23    [shall be] held [each year] on the first Saturday in May at the end
11-24    of the three-year terms of the initial elected board of directors.
11-25    The six directors elected at that election shall draw lots to
11-26    determine which two directors shall serve one-year terms, which two
11-27    directors shall serve two-year terms, and which two directors shall
 12-1    serve three-year terms.  All subsequent elections shall be held
 12-2    each year on the first Saturday in May, with two directors being
 12-3    elected, each to a three-year term[, and the  appropriate number of
 12-4    successor directors shall be elected for two-year terms].
 12-5          (b)  Notice of each election shall be published in a
 12-6    newspaper of general circulation in the district one time, not
 12-7    earlier than the 30th day or later than the 10th day [at least 36
 12-8    days] before the date of the election.  Any person desiring to have
 12-9    the person's name printed on the ballot as a candidate for director
12-10    shall file an application with the secretary of the board of
12-11    directors.  The application shall be filed with the secretary at
12-12    least 31 days before the date of the election.  [The application
12-13    must specify the commissioners precinct the candidate wishes to
12-14    represent or that the candidate wishes to represent the district at
12-15    large.]
12-16          SECTION 3.06. Section 3.06, Chapter 132, Acts of the 74th
12-17    Legislature, Regular Session, 1995, is amended to read as follows:
12-18          Sec. 3.06.  A person may not be appointed or elected as a
12-19    member of the temporary, initial, or permanent board of directors
12-20    unless the person is a resident of the district and [,] a qualified
12-21    voter[, and if elected from a commissioners precinct, a resident of
12-22    the precinct as the precinct is described by Section 3.01 of this
12-23    Act].  Neither the administrator nor any other employee of the
12-24    district is eligible to serve as a director.
12-25          SECTION 3.07. Section 3.08(a), Chapter 132, Acts of the 74th
12-26    Legislature, Regular Session, 1995, is amended to read as follows:
12-27          (a)  The board of directors, [both] temporary, initial, and
 13-1    permanent, shall organize by electing one of the members as
 13-2    president and one as vice president.  A secretary, who need not be
 13-3    a director, shall also be elected.  Officers shall be elected for a
 13-4    term of one year and vacancies shall be filled for the unexpired
 13-5    term by the board of directors.
 13-6          SECTION 3.08. Section 3.09(a), Chapter 132, Acts of the 74th
 13-7    Legislature, Regular Session, 1995, is amended to read as follows:
 13-8          (a)  The board of directors shall manage, control, and
 13-9    administer the hospital system and the business of and all funds
13-10    and resources of the district, but operating, depreciation, or
13-11    building reserves may not be invested in any funds or securities
13-12    other than those specified in Chapter 2256, Government Code
13-13    [Articles 836 and 837, Revised Statutes].
13-14          SECTION 3.09. Section 3.11(e), Chapter 132, Acts of the 74th
13-15    Legislature, Regular Session, 1995, is amended to read as follows:
13-16          (e)  Notice of a bond election shall be given as provided in
13-17    Section 1251.003, Government Code [Article 704, Revised Statutes],
13-18    and shall be conducted in accordance with the Election Code, except
13-19    as modified by the provisions of this Act.
13-20          SECTION 3.10. Sections 3.12(c) and (d), Chapter 132, Acts of
13-21    the 74th Legislature, Regular Session, 1995, are amended to read as
13-22    follows:
13-23          (c)  If the refunding bonds are to be sold and the proceeds
13-24    from the bonds are to be applied to the payment of any outstanding
13-25    indebtedness, the refunding bonds shall be issued and payments made
13-26    in the manner specified by Chapter 1207, Government Code [503, Acts
13-27    of the 54th Legislature, Regular Session, 1955 (Article 717k,
 14-1    Vernon's Texas Civil Statutes)].
 14-2          (d)  Refunding bonds shall be issued in conformity with
 14-3    Chapter 1207, Government Code [784, Acts of the 61st Legislature,
 14-4    Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
 14-5    Statutes)].
 14-6          SECTION 3.11. Section 3.13(a), Chapter 132, Acts of the 74th
 14-7    Legislature, Regular Session, 1995, is amended to read as follows:
 14-8          (a)  Bonds issued by the district must:
 14-9                (1)  mature not later than the 40th anniversary of the
14-10    date of issuance;
14-11                (2)  be executed in the name of the hospital district
14-12    and on the district's behalf by the president of the board and
14-13    countersigned by the secretary as provided by Chapter 618,
14-14    Government Code, as added by Chapter 227, Acts of the 76th
14-15    Legislature, Regular Session, 1999 [204, Acts of the 57th
14-16    Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas
14-17    Civil Statutes)];
14-18                (3)  bear a rate of interest that does not exceed the
14-19    amount prescribed by Chapter 1204, Government Code [3, Acts of the
14-20    61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
14-21    Texas Civil Statutes)]; and
14-22                (4)  be subject to the same requirements in the manner
14-23    of approval by the attorney general and registration by the
14-24    comptroller as provided for approval and registration of bonds
14-25    issued by a county.
14-26                        ARTICLE 4.  EFFECTIVE DATE
14-27          SECTION 4.01. This Act takes effect immediately if it
 15-1    receives a vote of two-thirds of all the members elected to each
 15-2    house, as provided by Section 39, Article III, Texas Constitution.
 15-3    If this Act does not receive the vote necessary for immediate
 15-4    effect, this Act takes effect September 1, 2001.