1-1     By:  Miller (Senate Sponsor - Sibley)                 H.B. No. 3680
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 10, 2001, reported favorably by
 1-5     the following vote:  Yeas 6, Nays 0; May 10, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the dissolution of the DeLeon Hospital District and the
1-10     Comanche County Hospital District and the creation of the Comanche
1-11     County Consolidated Hospital District.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13          ARTICLE 1.  CHANGES RELATING TO DELEON HOSPITAL DISTRICT
1-14           SECTION 1.01. Section 21A, Chapter 202, Acts of the 63rd
1-15     Legislature, Regular Session, 1973, is amended to read as follows:
1-16           Sec. 21A.  DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF
1-17     COMANCHE COUNTY HOSPITAL DISTRICT AND CREATION OF COMANCHE COUNTY
1-18     CONSOLIDATED [LEON VALLEY] HOSPITAL DISTRICT. (a)  The DeLeon
1-19     Hospital District may be dissolved as provided by this section.
1-20           (b)  The board of directors may order an election on the
1-21     question of the dissolution of the DeLeon Hospital District,
1-22     creation of the Comanche County Consolidated [Leon Valley] Hospital
1-23     District, transfer of the DeLeon Hospital District's assets and
1-24     obligations to the Comanche County Consolidated [Leon Valley]
1-25     Hospital District, and assumption by the Comanche County
1-26     Consolidated [Leon Valley] Hospital District of the DeLeon Hospital
1-27     District's outstanding debts.
1-28           (c)  The board shall order an election if:
1-29                 (1)  the board of the Comanche County Hospital District
1-30     orders an election under Section 21A, Chapter 203, Acts of the 63rd
1-31     Legislature, Regular Session, 1973; or
1-32                 (2)  the board receives a petition requesting an
1-33     election on the questions of dissolution and transfer of assets
1-34     that is signed by at least 50 registered voters in the DeLeon
1-35     Hospital District.
1-36           (d)  If the board of directors orders an election under this
1-37     section, it shall promptly notify the board of directors of the
1-38     Comanche County Hospital District of the election order.
1-39           (e)  The election shall be held not less than 45 or more than
1-40     60 days after the date on which an election is ordered and shall be
1-41     held on the same date that the separate election in the Comanche
1-42     County Hospital District is held.  The board of directors shall
1-43     cooperate with the board of directors of the Comanche County
1-44     Hospital District in setting the date of the elections.  Section
1-45     41.001(a), Election Code, does not apply to an election ordered
1-46     under this section.
1-47           (f)  The ballot for the election shall be printed to permit
1-48     voting for or against the proposition:  "The dissolution of the
1-49     DeLeon Hospital District and creation of the Comanche County
1-50     Consolidated [Leon Valley] Hospital District, providing for the
1-51     levy of a tax not to exceed 25 cents on each $100 valuation on all
1-52     taxable property in the Comanche County Consolidated [Leon Valley]
1-53     Hospital District, and providing for the transfer to and assumption
1-54     by the Comanche County Consolidated [Leon Valley] Hospital District
1-55     of all outstanding bonds and indebtedness issued for hospital
1-56     purposes by the DeLeon Hospital District and any part of the county
1-57     or any city or town located in the district and the transfer of the
1-58     existing DeLeon Hospital District's assets to the Comanche County
1-59     Consolidated [Leon Valley] Hospital District."
1-60           (g)  Except as provided by Subsections (e) and (f) of this
1-61     section, the election shall be held in accordance with the
1-62     applicable provisions of the Election Code.
1-63           (h)  The DeLeon Hospital District is dissolved if:
1-64                 (1)  a majority of the voters in the DeLeon Hospital
 2-1     District voting in the election held under this section favor the
 2-2     proposition; and
 2-3                 (2)  a majority of the voters in the Comanche County
 2-4     Hospital District voting in an election held on the same date under
 2-5     Section 21A, Chapter 203, Acts of the 63rd Legislature, Regular
 2-6     Session, 1973, favor the dissolution of the Comanche County
 2-7     Hospital District, the creation of the Comanche County Consolidated
 2-8     [Leon Valley] Hospital District, the transfer of the assets of the
 2-9     Comanche County Hospital District to the Comanche County
2-10     Consolidated [Leon Valley] Hospital District, and the assumption of
2-11     the assets and obligations of the Comanche County Hospital District
2-12     by the Comanche County Consolidated [Leon Valley] Hospital
2-13     District.
2-14           (i)  The DeLeon Hospital District is not dissolved and the
2-15     board of directors shall continue to administer the DeLeon Hospital
2-16     District if a majority of the voters in either the DeLeon Hospital
2-17     District or the Comanche County Hospital District do not favor the
2-18     proposition on which they voted.
2-19           (j)  If the DeLeon Hospital District is dissolved under this
2-20     section, the board of directors shall transfer the assets and
2-21     obligations of the DeLeon Hospital District to the Comanche County
2-22     Consolidated [Leon Valley] Hospital District.
2-23           (k)  The board of directors may not order another election on
2-24     the question of dissolution before the first anniversary of the
2-25     date of the most recent election at which voters of either district
2-26     disapproved the proposition on which they voted.
2-27           SECTION 1.02. Section 1B, Chapter 202, Acts of the 63rd
2-28     Legislature, Regular Session, 1973, is amended to read as follows:
2-29           Sec. 1B.  On the dissolution of the DeLeon Hospital District
2-30     and the approval of the creation of the Comanche County
2-31     Consolidated [Leon Valley] Hospital District, a reference in this
2-32     Act or in any other law to the DeLeon Hospital District means the
2-33     Comanche County Consolidated [Leon Valley] Hospital District.
2-34               ARTICLE 2.  CHANGES RELATING TO COMANCHE COUNTY
2-35                              HOSPITAL DISTRICT
2-36           SECTION 2.01.  Section 21A, Chapter 203, Acts of the 63rd
2-37     Legislature, Regular Session, 1973, is amended to read as follows:
2-38           Sec. 21A.  DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF
2-39     DELEON HOSPITAL DISTRICT AND CREATION OF COMANCHE COUNTY
2-40     CONSOLIDATED [LEON VALLEY] HOSPITAL DISTRICT. (a)  The Comanche
2-41     County Hospital District may be dissolved as provided by this
2-42     section.
2-43           (b)  The board of directors may order an election on the
2-44     question of the dissolution of the Comanche County Hospital
2-45     District, creation of the Comanche County Consolidated [Leon
2-46     Valley] Hospital District, transfer of the Comanche County Hospital
2-47     District's assets and obligations to the Comanche County
2-48     Consolidated [Leon Valley] Hospital District, and the assumption by
2-49     Comanche County Consolidated [Leon Valley] Hospital District of the
2-50     Comanche County Hospital District's outstanding debts.
2-51           (c)  The board shall order an election if:
2-52                 (1)  the board of the DeLeon Hospital District orders
2-53     an election under Section 21A, Chapter 202, Acts of the 63rd
2-54     Legislature, Regular Session, 1973; or
2-55                 (2)  the board receives a petition requesting an
2-56     election on the questions of dissolution and transfer of assets
2-57     that is signed by at least 50 registered voters in the Comanche
2-58     County Hospital District.
2-59           (d)  If the board of directors orders an election under this
2-60     section, it shall promptly notify the board of directors of the
2-61     DeLeon Hospital District of the election order.
2-62           (e)  The election shall be held not less than 45 or more than
2-63     60 days after the date on which an election is ordered and shall be
2-64     held on the same date that the separate election in the DeLeon
2-65     Hospital District is held.  The board of directors shall cooperate
2-66     with the board of directors of the DeLeon Hospital District in
2-67     setting the date of the elections.  Section 41.001(a), Election
2-68     Code, does not apply to an election ordered under this section.
2-69           (f)  The ballot for the election shall be printed to permit
 3-1     voting for or against the proposition:  "The dissolution of the
 3-2     Comanche County Hospital District and creation of the Comanche
 3-3     County Consolidated [Leon Valley] Hospital District, providing for
 3-4     the levy of a tax not to exceed 25 cents on each $100 valuation on
 3-5     all taxable property in the Comanche County Consolidated [Leon
 3-6     Valley] Hospital District, and providing for the transfer to and
 3-7     assumption by the Comanche County Consolidated [Leon Valley]
 3-8     Hospital District of all outstanding bonds and indebtedness issued
 3-9     for hospital purposes by the Comanche County Hospital District and
3-10     any part of the county or any city or town located in the district,
3-11     and the transfer of the existing Comanche County Hospital
3-12     District's assets to the Comanche County Consolidated [Leon Valley]
3-13     Hospital District."
3-14           (g)  Except as provided by Subsections (e) and (f) of this
3-15     section, the election shall be held in accordance with the
3-16     applicable provisions of the Election Code.
3-17           (h)  The Comanche County Hospital District is dissolved if:
3-18                 (1)  a majority of the voters in the Comanche County
3-19     Hospital District voting in the election held under this section
3-20     favor the proposition; and
3-21                 (2)  a majority of the voters in the DeLeon Hospital
3-22     District voting in an election held on the same date under Section
3-23     21A, Chapter 202, Acts of the 63rd Legislature, Regular Session,
3-24     1973, favor the dissolution of the DeLeon Hospital District, the
3-25     creation of the Comanche County Consolidated [Leon Valley] Hospital
3-26     District, the transfer of the assets of the DeLeon Hospital
3-27     District to Comanche County Consolidated [Leon Valley] Hospital
3-28     District, and the assumption of the assets and obligations of the
3-29     DeLeon Hospital District by the Comanche County Consolidated [Leon
3-30     Valley] Hospital District.
3-31           (i)  The Comanche County Hospital District is not dissolved
3-32     and the board of directors shall continue to administer the
3-33     Comanche County Hospital District if a majority of the voters in
3-34     either district do not favor the proposition on which they voted.
3-35           (j)  If the Comanche County Hospital District is dissolved
3-36     under this section, the board of directors shall transfer the
3-37     assets and obligations of the Comanche County Hospital District to
3-38     the Comanche County Consolidated [Leon Valley] Hospital District.
3-39           (k)  The board of directors may not order another election on
3-40     the question of dissolution before the first anniversary of the
3-41     date of the most recent election at which voters of either district
3-42     disapproved the proposition on which they voted.
3-43           SECTION 2.02.  Section 1A, Chapter 203, Acts of the 63rd
3-44     Legislature, Regular Session, 1973, is amended to read as follows:
3-45           Sec. 1A. On the dissolution of the Comanche County Hospital
3-46     District and the approval of the creation of the Comanche County
3-47     Consolidated [Leon Valley] Hospital District, a reference in this
3-48     Act or in any other law to the Comanche County Hospital District
3-49     means the Comanche County Consolidated [Leon Valley] Hospital
3-50     District.
3-51                   ARTICLE 3.  CREATION OF COMANCHE COUNTY
3-52                       CONSOLIDATED HOSPITAL DISTRICT
3-53           SECTION 3.01. Section 3.01, Chapter 132, Acts of the 74th
3-54     Legislature, Regular Session, 1995, is amended to read as follows:
3-55           Sec. 3.01. (a)  In accordance with the provisions of Section
3-56     9, Article IX, Texas Constitution, this Act authorizes the
3-57     creation, establishment, administration, maintenance, operation,
3-58     and financing of a hospital district in this state with boundaries
3-59     coextensive with the boundaries of Comanche County [as they existed
3-60     on August 10, 1992], exclusive of that portion of the county that
3-61     is in the South Eastland County Hospital District[, of:]
3-62                 [(1)  Commissioners Precinct Number 1 of Comanche
3-63     County;]
3-64                 [(2)  Commissioners Precinct Number 2 of Comanche
3-65     County with the addition of county election precinct number 5 and
3-66     with the deletion of county election precinct number 3 and county
3-67     election precinct number 6;]
3-68                 [(3)  Commissioners Precinct Number 3 of Comanche
3-69     County with the addition of county election precinct number 3 and
 4-1     county election precinct number 6 and with the deletion of county
 4-2     election precinct number 5; and]
 4-3                 [(4)  Commissioners Precinct Number 4 of Comanche
 4-4     County].
 4-5           (b)  The district is to be known as "Comanche County
 4-6     Consolidated [Leon Valley] Hospital District," and it has the
 4-7     rights, powers, and duties as provided in this Act.  A reference in
 4-8     this Act or in any other law to the Leon Valley Hospital District
 4-9     means the Comanche County Consolidated Hospital District.
4-10           SECTION 3.02.  Section 3.02, Chapter 132, Acts of the 74th
4-11     Legislature, Regular Session, 1995, is amended to read as follows:
4-12           Sec. 3.02. (a)  The Comanche County Consolidated [Leon
4-13     Valley] Hospital District may not be created unless the creation,
4-14     the assumption of debt, and the levy of taxes are approved by a
4-15     majority of the voters at an election held in the DeLeon Hospital
4-16     District and by a majority of the voters at a separate election
4-17     held in the Comanche County Hospital District.
4-18           (b)  The election in the DeLeon Hospital District and the
4-19     election in the Comanche County Hospital District shall be held on
4-20     the same day and must be held before September 1, 2005 [the fifth
4-21     anniversary of the effective date of this Act].
4-22           SECTION 3.03. Sections 3.03(a) and (c), Chapter 132, Acts of
4-23     the 74th Legislature, Regular Session, 1995, are amended to read as
4-24     follows:
4-25           (a)  If the Comanche County Consolidated [Leon Valley]
4-26     Hospital District is created in accordance with Section 21A,
4-27     Chapter 202 and Section 21A, Chapter 203, Acts of the 63rd
4-28     Legislature, Regular Session, 1973, the following [five] persons
4-29     shall serve as temporary directors of the Comanche County
4-30     Consolidated [Leon Valley] Hospital District:
4-31                 1.  Charles Mazurek[--Precinct 1]
4-32                 2.  Jerry Morgan [Jim Abbey--Precinct 2]
4-33                 3.  Gale Easley [Ardean Kimmell--Precinct 3]
4-34                 4.  Forrest Eisenrich [Wayne Hammit--Precinct 4]
4-35                 5.  John Mack Weaver
4-36                 6.  Terry Stephens [Vincenzo Giustino--At Large]
4-37           (c)  The temporary board shall serve as the directors of the
4-38     Comanche County Consolidated [Leon Valley] Hospital District until
4-39     the initial elected directors take office.
4-40           SECTION 3.04. Section 3.04, Chapter 132, Acts of the 74th
4-41     Legislature, Regular Session, 1995, is amended to read as follows:
4-42           Sec. 3.04. (a)  If the Comanche County Consolidated [Leon
4-43     Valley] Hospital District is created, six initial directors shall
4-44     be elected at an election to be held on the first Saturday in May
4-45     following the date the Comanche County Consolidated [Leon Valley]
4-46     Hospital District is created.
4-47           (b)  The temporary directors may postpone the election date
4-48     for one year or until a subsequent uniform election date if the
4-49     temporary directors determine that there is not sufficient time to
4-50     comply with the requirements of law or if the temporary directors
4-51     determine that it is in the best interest of the district to
4-52     maintain the temporary directors in place for a period of not more
4-53     than an additional 12 months.
4-54           (c)  At the election held to replace the temporary directors,
4-55     three directors shall be elected at large from the area within the
4-56     boundaries of the Comanche County Hospital District as those
4-57     boundaries existed on January 1, 2001, and three directors shall be
4-58     elected at large from the area within the boundaries of the DeLeon
4-59     Hospital District as those boundaries existed on January 1, 2001.
4-60     The directors elected shall serve three-year terms [One director
4-61     shall be elected from each of Commissioners Precincts Numbers 1, 2,
4-62     3, and 4 of Comanche County as those boundaries existed on August
4-63     10, 1992, and as those precincts are described by Section 3.01 of
4-64     this Act, exclusive of that portion of any precinct that is in the
4-65     South Eastland County Hospital District, and one director shall be
4-66     elected from the district at large].
4-67           (d)  At the initial election of directors following creation
4-68     of the Comanche County Consolidated [Leon Valley] Hospital
4-69     District, the three candidates [candidate] receiving the highest
 5-1     number of votes from the area within the boundaries of the Comanche
 5-2     County Hospital District as those boundaries existed on January 1,
 5-3     2001, and the three candidates receiving the highest number of
 5-4     votes from the area within the boundaries of the DeLeon Hospital
 5-5     District as those boundaries existed on January 1, 2001, shall be
 5-6     the initial elected directors of the district [each commissioners
 5-7     precinct is the director for that precinct and the candidate
 5-8     receiving the highest number of votes from the district at large is
 5-9     the director for the district at large].
5-10           (e)  The directors elected at the initial election of
5-11     directors following creation of the Comanche County Consolidated
5-12     [Leon Valley] Hospital District shall each [draw lots to determine
5-13     which three directors shall] serve a term of three years [one-year
5-14     terms and which two directors shall serve two-year terms].
5-15           (f)  On or before the date the terms of the directors elected
5-16     at the initial election expire, the board shall determine and adopt
5-17     a procedure for the election of six new directors either at large
5-18     or by place.  The procedure must provide for appropriate
5-19     representation of the residents of the district.
5-20           SECTION 3.05.  Sections 3.05(a) and (b),  Chapter 132, Acts
5-21     of the 74th Legislature, Regular Session, 1995, are amended to read
5-22     as follows:
5-23           (a)  The first directors elected under the procedure adopted
5-24     under Section 3.04(f) of this Act shall be elected at [After the
5-25     initial election of directors following creation,] an election
5-26     [shall be] held [each year] on the first Saturday in May at the end
5-27     of the three-year terms of the initial elected board of directors.
5-28     The six directors elected at that election shall draw lots to
5-29     determine which two directors shall serve one-year terms, which two
5-30     directors shall serve two-year terms, and which two directors shall
5-31     serve three-year terms.  All subsequent elections shall be held
5-32     each year on the first Saturday in May, with two directors being
5-33     elected, each to a three-year term[, and the  appropriate number of
5-34     successor directors shall be elected for two-year terms].
5-35           (b)  Notice of each election shall be published in a
5-36     newspaper of general circulation in the district one time, not
5-37     earlier than the 30th day or later than the 10th day [at least 36
5-38     days] before the date of the election.  Any person desiring to have
5-39     the person's name printed on the ballot as a candidate for director
5-40     shall file an application with the secretary of the board of
5-41     directors.  The application shall be filed with the secretary at
5-42     least 31 days before the date of the election.  [The application
5-43     must specify the commissioners precinct the candidate wishes to
5-44     represent or that the candidate wishes to represent the district at
5-45     large.]
5-46           SECTION 3.06. Section 3.06, Chapter 132, Acts of the 74th
5-47     Legislature, Regular Session, 1995, is amended to read as follows:
5-48           Sec. 3.06.  A person may not be appointed or elected as a
5-49     member of the temporary, initial, or permanent board of directors
5-50     unless the person is a resident of the district and [,] a qualified
5-51     voter[, and if elected from a commissioners precinct, a resident of
5-52     the precinct as the precinct is described by Section 3.01 of this
5-53     Act].  Neither the administrator nor any other employee of the
5-54     district is eligible to serve as a director.
5-55           SECTION 3.07. Section 3.08(a), Chapter 132, Acts of the 74th
5-56     Legislature, Regular Session, 1995, is amended to read as follows:
5-57           (a)  The board of directors, [both] temporary, initial, and
5-58     permanent, shall organize by electing one of the members as
5-59     president and one as vice president.  A secretary, who need not be
5-60     a director, shall also be elected.  Officers shall be elected for a
5-61     term of one year and vacancies shall be filled for the unexpired
5-62     term by the board of directors.
5-63           SECTION 3.08. Section 3.09(a), Chapter 132, Acts of the 74th
5-64     Legislature, Regular Session, 1995, is amended to read as follows:
5-65           (a)  The board of directors shall manage, control, and
5-66     administer the hospital system and the business of and all funds
5-67     and resources of the district, but operating, depreciation, or
5-68     building reserves may not be invested in any funds or securities
5-69     other than those specified in Chapter 2256, Government Code
 6-1     [Articles 836 and 837, Revised Statutes].
 6-2           SECTION 3.09. Section 3.11(e), Chapter 132, Acts of the 74th
 6-3     Legislature, Regular Session, 1995, is amended to read as follows:
 6-4           (e)  Notice of a bond election shall be given as provided in
 6-5     Section 1251.003, Government Code [Article 704, Revised Statutes],
 6-6     and shall be conducted in accordance with the Election Code, except
 6-7     as modified by the provisions of this Act.
 6-8           SECTION 3.10. Sections 3.12(c) and (d), Chapter 132, Acts of
 6-9     the 74th Legislature, Regular Session, 1995, are amended to read as
6-10     follows:
6-11           (c)  If the refunding bonds are to be sold and the proceeds
6-12     from the bonds are to be applied to the payment of any outstanding
6-13     indebtedness, the refunding bonds shall be issued and payments made
6-14     in the manner specified by Chapter 1207, Government Code [503, Acts
6-15     of the 54th Legislature, Regular Session, 1955 (Article 717k,
6-16     Vernon's Texas Civil Statutes)].
6-17           (d)  Refunding bonds shall be issued in conformity with
6-18     Chapter 1207, Government Code [784, Acts of the 61st Legislature,
6-19     Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
6-20     Statutes)].
6-21           SECTION 3.11. Section 3.13(a), Chapter 132, Acts of the 74th
6-22     Legislature, Regular Session, 1995, is amended to read as follows:
6-23           (a)  Bonds issued by the district must:
6-24                 (1)  mature not later than the 40th anniversary of the
6-25     date of issuance;
6-26                 (2)  be executed in the name of the hospital district
6-27     and on the district's behalf by the president of the board and
6-28     countersigned by the secretary as provided by Chapter 618,
6-29     Government Code, as added by Chapter 227, Acts of the 76th
6-30     Legislature, Regular Session, 1999 [204, Acts of the 57th
6-31     Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas
6-32     Civil Statutes)];
6-33                 (3)  bear a rate of interest that does not exceed the
6-34     amount prescribed by Chapter 1204, Government Code [3, Acts of the
6-35     61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
6-36     Texas Civil Statutes)]; and
6-37                 (4)  be subject to the same requirements in the manner
6-38     of approval by the attorney general and registration by the
6-39     comptroller as provided for approval and registration of bonds
6-40     issued by a county.
6-41                         ARTICLE 4.  EFFECTIVE DATE
6-42           SECTION 4.01. This Act takes effect immediately if it
6-43     receives a vote of two-thirds of all the members elected to each
6-44     house, as provided by Section 39, Article III, Texas Constitution.
6-45     If this Act does not receive the vote necessary for immediate
6-46     effect, this Act takes effect September 1, 2001.
6-47                                  * * * * *