1-1                                   AN ACT
 1-2     relating to the fiscal year and the date of elections of the
 1-3     Stratford Hospital District.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 6, Chapter 470, Acts of the 61st
 1-6     Legislature, Regular Session, 1969, is amended to read as follows:
 1-7           Sec. 6.  The district shall be operated on the basis of a
 1-8     fiscal year commencing on September 1 [July 1] of each year and
 1-9     ending on August 31 [June 30] of the following year, and it shall
1-10     cause an independent audit to be made of the financial condition of
1-11     said district, which, together with other records of the district,
1-12     shall be open to inspection at the principal office of the
1-13     district, such audit to be made covering such fiscal year, and the
1-14     same shall be filed at the office of the district as soon as it is
1-15     completed.  The administrator or manager shall prepare an annual
1-16     budget for approval by the board of directors.  The budget shall
1-17     also contain a complete financial statement of the district showing
1-18     all outstanding obligations of the district, the cash on hand to
1-19     the credit of each and every fund of the district, the funds
1-20     received from all sources during the previous year, the funds
1-21     available from all sources during the ensuing year, with balances
1-22     expected at end of the year in which the budget is being prepared,
1-23     and estimated revenues and balances available to cover the proposed
1-24     budget and the estimated tax rate which will be required, and the
1-25     proposed expenditures and disbursements and the estimated receipts
 2-1     and collections for the following fiscal year.  A public hearing on
 2-2     the annual budget shall be held by the board of directors after
 2-3     notice of such hearing has been published one time at least 10 days
 2-4     before the date set therefor.  Notice of the budget hearing shall
 2-5     be published in a newspaper or newspapers which individually or
 2-6     collectively provide general circulation in the hospital district.
 2-7     Any property taxpayer of the district shall have the right to be
 2-8     present and participate in said hearing.  At the conclusion of the
 2-9     hearing, the budget, as proposed by the administrator, shall be
2-10     acted upon by the board of directors.  The board of directors shall
2-11     have authority to make such changes in the budget as in their
2-12     judgment the law warrants and the interest of the taxpayers demand.
2-13     No expenditure may be made for any expense not included in the
2-14     annual budget or an amendment thereto.  The annual budget may be
2-15     amended from time to time as the circumstances may require, but the
2-16     annual budget, and all amendments thereto, shall be approved by the
2-17     board of directors.  As soon as practicable after the close of each
2-18     fiscal year, the administrator or manager shall prepare for the
2-19     board a full sworn statement of all moneys belonging to the
2-20     district and a full account of the disbursements of same.
2-21           SECTION 2.  Subsection (c), Section 4, Chapter 470, Acts of
2-22     the 61st Legislature, Regular Session, 1969, is amended to read as
2-23     follows:
2-24           (c)  Directors shall serve staggered terms with three
2-25     directors elected one year and two directors elected the next year.
2-26     Directors shall be elected by vote of the electors of the entire
 3-1     district for two year terms.  An election to elect an appropriate
 3-2     number of directors shall be held on the first [third] Saturday in
 3-3     May of each year.  Notice of each such election shall be published
 3-4     in a newspaper or newspapers which individually or collectively
 3-5     provide general circulation in the district one time at least 30
 3-6     days prior to the date of the election.  Any person desiring to
 3-7     have his name printed on the ballot as a candidate for director
 3-8     shall file an application with the secretary of the board of
 3-9     directors.  Such application shall be filed with the secretary not
3-10     less than 30 days nor more than 60 days prior to the date of the
3-11     election.  Vacancies in office shall be filled for the unexpired
3-12     term of the remainder of the permanent directors.  Each member of
3-13     the board of directors shall execute a good and sufficient bond for
3-14     $1,000 payable to said district conditioned upon the faithful
3-15     performance of his duties, and each bond shall be purchased at the
3-16     expense of the district.
3-17           SECTION 3.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 726 passed the Senate on
         March 15, 2001, by the following vote:  Yeas 30, Nays 0, one
         present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 726 passed the House on
         May 8, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor