By: Sibley S.B. No. 1073
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Palo Pinto County Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 4, Chapter 84, Acts of the 59th
1-5 Legislature, Regular Session, 1965, is amended to read as follows:
1-6 Sec. 4. (a) The District shall be governed, managed and
1-7 controlled by a Board of Directors composed of seven (7) members,
1-8 all of whom shall have the same rights and responsibilities with
1-9 respect to voting and all other matters. The Chief of Staff of the
1-10 hospital system owned and operated by the District shall be elected
1-11 by the medical staff thereof not less frequently than every two (2)
1-12 years, and one position on the Board of Directors of said District
1-13 shall at all times be occupied by the Chief of Staff thus elected.
1-14 The other six (6) members of the Board of Directors shall be
1-15 elected by place. Directors for places 1, 2, and 3 are elected in
1-16 odd-numbered years and[;] directors for places 4, 5, and 6 are
1-17 elected in even-numbered years. The candidate for a place who
1-18 receives the highest number of votes for election to a place is a
1-19 director for the District. Members elected to the Board of
1-20 Directors shall serve for a period of two (2) years and until their
1-21 successors have been duly elected or appointed and qualified. No
1-22 person shall be appointed or elected to the elective positions on
1-23 the Board of Directors of said Hospital District unless the person
1-24 [he] is a resident of the District and a qualified voter [thereof
1-25 and owns land subject to taxation therein and unless at the time of
2-1 such election or appointment he shall be at least eighteen (18)
2-2 years of age].
2-3 (b) Each member of the Board of Directors shall qualify by
2-4 executing the Constitutional Oath of Office and shall execute a
2-5 good and sufficient bond for $5,000 [One Thousand Dollars ($1,000)]
2-6 payable to said District conditioned upon the faithful performance
2-7 of the member's [his] duties, and such oaths and bonds shall be
2-8 deposited with the depository bank of the District for safekeeping.
2-9 (c) The Board of Directors shall organize by electing one of
2-10 their number as president, one of their number as vice-president,
2-11 and one of their number as secretary. Each officer shall serve for
2-12 a term of one year and may serve successive terms. Any four (4)
2-13 members of the Board of Directors shall constitute a quorum and a
2-14 concurrence of four (4) members shall be sufficient in all matters
2-15 pertaining to the business of the District. All vacancies in the
2-16 elective positions of directors shall be filled for the unexpired
2-17 term by a majority vote of [appointment made by] the remainder of
2-18 the Board of Directors, and those appointees shall hold office for
2-19 the unexpired terms for which they were appointed. In the event
2-20 the number of directors shall be reduced to less than four (4) for
2-21 any reason, the remaining directors shall immediately call a
2-22 special election to fill the elective positions which are vacant,
2-23 and upon failure to do so a district court may, upon application of
2-24 any voter or taxpayer of the District, issue a mandate requiring
2-25 that such election be ordered by the remaining directors.
2-26 (d) A regular election for the election of the appropriate
3-1 number of successor directors shall be held on the first Saturday
3-2 in May [April] of each year and shall be ordered by the Board of
3-3 Directors in accordance with the applicable provisions of Chapter
3-4 3, Election Code. Notice of each election of directors shall be
3-5 published in a newspaper of general circulation in the county in
3-6 accordance with Chapter 4, Election Code [one time not later than
3-7 the thirty-fifth day before the date of election]. Any person
3-8 desiring the person's [his] name to be printed on the ballot as a
3-9 candidate for elective director shall file an application [a
3-10 petition, signed by not less than twenty-five (25) qualified voters
3-11 asking that such name be printed on the ballot,] with the secretary
3-12 of the Board of Directors of the District in accordance with
3-13 Chapter 144, Election Code. [Such petition shall be filed with
3-14 such secretary not later than the thirty-first day before the date
3-15 of election.] The application [petition] must specify the place
3-16 for which the applicant is to be a candidate.
3-17 (e) All members of the Board of Directors shall serve
3-18 without compensation but may be reimbursed for actual expenses
3-19 incurred in the performance of their official duties upon the
3-20 approval of such expenses by the entire Board of Directors as
3-21 reported in the minutes of the board.
3-22 SECTION 2. Section 5, Chapter 84, Acts of the 59th
3-23 Legislature, Regular Session, 1965, is amended to read as follows:
3-24 Sec. 5. (a) The board of directors of such hospital
3-25 district shall have the power and authority, and it shall be their
3-26 duty, to levy on all property subject to hospital district taxation
4-1 for the benefit of the district [at the same time taxes are levied
4-2 for county purposes, using county values and the county tax roll,]
4-3 a tax of not to exceed Seventy-Five Cents (75 ) on the One Hundred
4-4 Dollar ($100) valuation of all taxable property within the hospital
4-5 district, for the purpose of: (1) paying the interest on and
4-6 creating a sinking fund for bonds and other obligations which may
4-7 be issued or assumed by the hospital district for hospital purposes
4-8 as herein provided; (2) providing for the operation and maintenance
4-9 of the hospital district and hospital system; and (3) for the
4-10 purpose of making further improvements and additions to the
4-11 hospital system, and, for the acquisition of necessary sites
4-12 therefor, by purchase, lease or condemnation.
4-13 (b) The Tax Code governs the appraisal, assessment, and
4-14 collection of district taxes. The board of directors may provide
4-15 for the appointment of a tax assessor-collector for the district or
4-16 may contract for the assessment and collection of taxes as provided
4-17 by the Tax Code. [Not later than October 1st of each year, the
4-18 board of directors shall levy the tax on all taxable property
4-19 within the district which is subject to taxation and shall
4-20 immediately certify such tax rate to the tax assessor and collector
4-21 of Palo Pinto County, provided that the taxes initially levied can
4-22 be levied at any time and shall be levied for the entire year in
4-23 which such taxes are levied. The tax so levied shall be collected
4-24 on all property subject to the hospital district taxation by the
4-25 assessor and collector of tax for Palo Pinto County on the county
4-26 tax values, and in the same manner and under the same conditions as
5-1 county taxes. The assessor and collector of taxes shall charge and
5-2 deduct from payments to the hospital district the fees for
5-3 assessing and collecting the tax at the rate of not exceeding one
5-4 percent (1%) of the amounts collected as may be determined by the
5-5 board of directors but in no event in excess of Five Thousand
5-6 Dollars ($5,000) for any one (1) fiscal year. Such fees shall be
5-7 deposited in the county's general fund, and shall be reported as
5-8 fees of office of the tax assessor and collector. Interest and
5-9 penalties on taxes paid to the hospital district shall be the same
5-10 as for county taxes. The residue of tax collections, after
5-11 deduction of discounts and fees for assessing and collecting, shall
5-12 be deposited in the district depository; and such funds shall be
5-13 withdrawn only as provided herein. All other income of the
5-14 hospital district shall be deposited in like manner with the
5-15 district depository.]
5-16 SECTION 3. Section 6, Chapter 84, Acts of the 59th
5-17 Legislature, Regular Session, 1965, is amended to read as follows:
5-18 Sec. 6. (a) The board of directors shall have the power and
5-19 authority to issue and sell as the obligations of such hospital
5-20 district, and in the name and upon the faith and credit of such
5-21 hospital district, general obligation bonds authorized by an
5-22 election for the purchase, construction, acquisition, repair, or
5-23 renovation of buildings and improvements, [and] equipping the same
5-24 for hospital purposes, and acquisition of sites to be used for the
5-25 district's [for any or all of such] purposes. At the time of
5-26 issuance of any general obligation bonds,[; provided, that] a
6-1 sufficient tax shall be levied to create an interest and sinking
6-2 fund to pay the interest and principal as same matures, providing
6-3 said tax together with any other taxes levied for the [said]
6-4 district shall not exceed Seventy-Five Cents (75 ) on each $100
6-5 valuation in any one (1) year.
6-6 (b) District [Such] bonds shall be executed in the name of
6-7 the hospital district and on its behalf by the president of the
6-8 board of directors, and countersigned by the secretary of the board
6-9 of directors, and shall be subject to the same requirements in the
6-10 matter of approval thereof by the Attorney General of the State of
6-11 Texas and the registration thereof by the Comptroller of Public
6-12 Accounts of the State of Texas as are by law provided for such
6-13 approval and registration of bonds of counties of this state. Upon
6-14 the approval of such bonds by the Attorney General of Texas and
6-15 registration by the Comptroller the same shall be incontestable for
6-16 any cause.
6-17 (c) No general obligation bonds shall be issued by such
6-18 hospital district [(except refunding bonds)] until authorized by a
6-19 majority vote of the resident qualified voters [electors who own
6-20 taxable property within the district and have duly rendered the
6-21 same for taxation,] voting at an election called and held for such
6-22 purpose. Such election may be called by the board of directors on
6-23 its own motion, and shall be conducted in accordance with Chapter
6-24 1251, Government Code [the order calling said election shall
6-25 specify the date of the election, the place or places where the
6-26 election shall be held, the presiding officers thereof, the purpose
7-1 for which the bonds are to be issued, the amount thereof, the
7-2 maximum interest rate (not to exceed six percent (6%) per annum)
7-3 and the maximum maturity date of such bonds (not to exceed forty
7-4 (40) years from their date of issuance). Notice of election shall
7-5 be given by publishing a substantial copy of the order calling the
7-6 election in a newspaper of general circulation in such county once
7-7 a week for two (2) consecutive weeks prior to the date of election,
7-8 the date of the first publication being at least fourteen (14) full
7-9 days prior to the date set for the election. The cost of such
7-10 election shall be paid by the hospital district].
7-11 (d) [The bonds of the district may be made optional for
7-12 redemption prior to their maturity date at the discretion of the
7-13 board of directors.] The district may without an election issue
7-14 refunding bonds of the district to refund and pay off any validly
7-15 issued and outstanding bonds [heretofore or hereafter] issued or
7-16 assumed by the district. Refunding bonds shall be issued in
7-17 accordance with Chapter 1207, Government Code[, provided any such
7-18 refunding bonds shall bear interest at the same rate or at a lesser
7-19 rate than the bonds being refunded unless it be shown
7-20 mathematically that a savings will result in the total amount of
7-21 interest to be paid].
7-22 (e) The board of directors may issue and sell revenue bonds
7-23 in the name and on the faith and credit of the district to
7-24 purchase, construct, acquire, repair, renovate, or equip buildings
7-25 or improvements for district purposes. The bonds shall be payable
7-26 from and secured by a pledge of all or part of the revenues derived
8-1 from the operation of the district's hospital system. The bonds
8-2 may be additionally secured by a mortgage or deed of trust on all
8-3 or part of the district's property. The revenue bonds shall be
8-4 issued in the manner provided by Sections 264.042, 264.043,
8-5 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for
8-6 the issuance of revenue bonds by county hospital authorities.
8-7 SECTION 4. Chapter 84, Acts of the 59th Legislature, Regular
8-8 Session, 1965, is amended by adding Section 6B to read as follows:
8-9 Sec. 6B. (a) The board of directors may borrow money at a
8-10 rate not to exceed the maximum annual percentage rate allowed by
8-11 law for district obligations at the time of the loan.
8-12 (b) To secure a loan, the board of directors may pledge:
8-13 (1) revenues of the district that are not pledged to
8-14 pay the bonded indebtedness of the district;
8-15 (2) district taxes to be levied by the district during
8-16 the 12-month period following the date of the pledge that are not
8-17 pledged to pay the principal of or interest on district bonds; or
8-18 (3) district bonds that have been authorized but not
8-19 sold.
8-20 (c) A loan for which taxes or bonds are pledged shall mature
8-21 not later than the first anniversary of the date on which the loan
8-22 is made. A loan for which district revenues are pledged shall
8-23 mature not later than the fifth anniversary of the date on which
8-24 the loan is made.
8-25 SECTION 5. Section 7, Chapter 84, Acts of the 59th
8-26 Legislature, Regular Session, 1965, is amended to read as follows:
9-1 Sec. 7. (a) The board of directors shall manage, control,
9-2 and administer the hospitals and hospital system of the district.
9-3 The district through its board of directors may sue and be sued.
9-4 (b) The board of directors may appoint a qualified person to
9-5 be known as the administrator of the hospital district and may in
9-6 its discretion appoint an assistant to the administrator. The
9-7 administrator and assistant administrator, if any, serve at the
9-8 will of the board and receive compensation as may be fixed by the
9-9 board. The administrator shall, on assuming the administrator's
9-10 duties, execute a bond payable to the hospital district in an
9-11 amount of not less than $5,000 as determined by the board,
9-12 conditioned on the administrator performing the administrator's
9-13 required duties and containing other conditions the board requires.
9-14 The board may pay for the bond with district funds. The
9-15 administrator shall supervise all the work and activities of the
9-16 district and shall have general direction of the affairs of the
9-17 district, subject to any limitations the board may prescribe. The
9-18 board of directors may provide that the administrator shall have
9-19 the authority to employ or appoint to the staff doctors,
9-20 technicians, nurses, and other employees of every kind and
9-21 character as necessary for the efficient operation of the district.
9-22 (c) The board of directors may contract with any county or
9-23 incorporated municipality located outside its boundaries for the
9-24 care and treatment of the sick, diseased, or injured persons of the
9-25 county or municipality and may contract with this state or agencies
9-26 of the federal government for the treatment of sick, diseased, or
10-1 injured persons.
10-2 (d) The board of directors may purchase or lease property,
10-3 facilities, and equipment for the district to use in the hospital
10-4 system and may mortgage or pledge the property, facilities, or
10-5 equipment as security for the payment of the purchase price.
10-6 (e) The board of directors may enter into a contract or
10-7 contracts to provide administrative and other personnel for the
10-8 operation of the hospital facilities. The term of the contract may
10-9 not exceed 25 years. The board may transfer district hospital
10-10 facilities by lease to individuals, corporations, or other legal
10-11 entities and may sell or otherwise dispose of the district's
10-12 property, facilities, and equipment.
10-13 (f) The board of directors may provide retirement benefits
10-14 for the employees of the district by establishing or administering
10-15 a retirement program or electing to participate in any statewide
10-16 retirement system in which the district is eligible to participate.
10-17 (g) The board of directors may spend district funds, enter
10-18 into agreements, and take other necessary action to recruit
10-19 physicians and other persons to serve as medical staff members or
10-20 employees of the district, including:
10-21 (1) advertising and marketing;
10-22 (2) paying travel, recruitment, and relocation
10-23 expenses;
10-24 (3) providing a loan or scholarship to a physician or
10-25 a person currently enrolled in health care education courses at an
10-26 institution of higher education who contractually agrees to become
11-1 a district employee or medical staff member; or
11-2 (4) contracting with one or more full-time medical
11-3 students or other students in a health occupation, each of whom
11-4 shall be enrolled in and in good standing at an accredited medical
11-5 school, college, or university, to pay the student's tuition or
11-6 other expenses in consideration of the student's agreement to serve
11-7 as an employee or independent contractor for the district.
11-8 (h) The board of directors may institute a suit to enforce
11-9 the payment of taxes and to foreclose liens to secure the payment
11-10 of taxes due to the district.
11-11 (i) The board of directors may provide or contract for the
11-12 provision of educational programs or courses for employees and
11-13 medical staff of the district.
11-14 (j) The board of directors may institute a suit to collect
11-15 amounts owed to the district by patients who have not been
11-16 determined to be unable to pay under Section 13 of this Act.
11-17 (k) The district may sponsor and create a nonprofit
11-18 corporation under the Texas Non-Profit Corporation Act (Article
11-19 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
11-20 contribute funds to or solicit funds for the corporation. The
11-21 corporation may use funds, other than funds paid by the corporation
11-22 to the district, only to provide health care or other services the
11-23 district is authorized to provide under this Act. The board of
11-24 directors of the hospital district shall establish adequate
11-25 controls to ensure that the corporation uses its funds as required
11-26 by this subsection. The corporation may invest corporation funds
12-1 in any manner in which the district may invest funds, including
12-2 investing funds as authorized by Chapter 2256, Government Code [The
12-3 board of directors of such district shall have the power to
12-4 prescribe the method and manner of making purchases and
12-5 expenditures by and for such hospital district, and also shall
12-6 prescribe all accounting and control procedures; the method of
12-7 purchasing necessary supplies, materials and equipment; and shall
12-8 have the power to adopt a seal for such district; and may employ a
12-9 general manager, attorneys, bookkeepers, architects, and any other
12-10 employees deemed necessary for the efficient operation of the
12-11 hospital district. The board of directors may spend district funds
12-12 to recruit physicians for the hospital staff as necessary to meet
12-13 the medical needs of district residents and to provide scholarships
12-14 and student loans to educate district residents in fields relating
12-15 to health care].
12-16 (l) All books, records, accounts, notices and minutes and
12-17 all other matters of the district and the operation of its
12-18 facilities shall, except as herein provided, be maintained at the
12-19 office of the district and there be open to public inspection at
12-20 all reasonable hours.
12-21 (m) The board of directors is specifically empowered to
12-22 adopt rules and regulations governing the operation of such
12-23 district and its facilities which rules and regulations shall
12-24 supplement but shall not contravene any of the provisions of this
12-25 Act. Such rules and regulations may, upon approval of the board of
12-26 directors, be published in booklet or pamphlet form at the expense
13-1 of the district and may be made available to any taxpayer upon
13-2 request.
13-3 SECTION 6. Section 8, Chapter 84, Acts of the 59th
13-4 Legislature, Regular Session, 1965, is amended to read as follows:
13-5 Sec. 8. (a) The district shall be operated on the basis of
13-6 a fiscal year to be established by the board of directors. The
13-7 fiscal year may not be changed when revenue bonds are outstanding
13-8 or more than one time in a 24-month period [fiscal year of the
13-9 hospital district authorized to be established by the provisions
13-10 hereof shall commence on October 1st of each year and end on the
13-11 30th day of September of the following year]. The board [district
13-12 directors] shall cause an annual independent audit to be made of
13-13 the books and records of the district. The audit and the records
13-14 of the district are open to inspection[, such audit to be made
13-15 covering such fiscal year, and the same shall be filed with the
13-16 Comptroller of Public Accounts of the State of Texas and] at the
13-17 office of the district [not later than December 31st of each year].
13-18 (b) The administrator shall prepare an annual budget for
13-19 approval by the board of directors. The board [of directors shall
13-20 each year cause a budget to be prepared showing the proposed
13-21 expenditures and disbursements and the estimated receipts and
13-22 collections for the following fiscal year and] shall hold a public
13-23 hearing on the proposed budget after publication of a notice of
13-24 hearing in a newspaper of general circulation in the district
13-25 [county] at least once not less than ten (10) days prior to the
13-26 date set for the hearing. Any person who is a resident [taxpayer]
14-1 of the district shall have the right to appear at the time and
14-2 place designated in the notice and be heard with reference to any
14-3 item shown in the proposed budget. The annual budget is effective
14-4 only after adoption by the board of directors. After adoption, the
14-5 annual budget may be amended on approval of the board of directors.
14-6 [The proposed budget shall also show the amount of taxes required
14-7 to be levied and collected during such fiscal year and upon final
14-8 approval of the budget, the board of directors shall levy such tax
14-9 as may be required and certify the tax rate for such year to the
14-10 county tax assessor and collector as provided in Section 5 hereof,
14-11 and it shall be the duty of the said tax assessor and collector to
14-12 assess and collect such tax.]
14-13 SECTION 7. Section 9, Chapter 84, Acts of the 59th
14-14 Legislature, Regular Session, 1965, is amended to read as follows:
14-15 Sec. 9. The district shall have the right and power of
14-16 eminent domain for the purpose of acquiring by condemnation any and
14-17 all property of any kind or character, real, personal or mixed, or
14-18 any interest therein, including outright ownership of such property
14-19 in fee simple absolute, within the boundaries of the said district,
14-20 necessary or convenient to the exercise of the rights, power,
14-21 privileges and functions conferred upon it by this Act, in the
14-22 manner provided by General Law with respect to condemnation;
14-23 provided that the said district shall not be required to make
14-24 deposits in the registry of the trial court of the sum required by
14-25 Section 21.021, Property Code [Paragraph No. 2 in Article 3268,
14-26 Vernon's Annotated Civil Statutes, 1925], or to make the bond
15-1 required therein. In condemnation proceedings being prosecuted by
15-2 the said district, the district shall not be required to pay in
15-3 advance or to give bond or other security for costs in the trial
15-4 court, nor to give any bond otherwise required for the issuance of
15-5 a temporary restraining order or a temporary injunction relating to
15-6 a condemnation proceeding, nor to give bond for costs or for
15-7 supersedeas on any appeal or writ of error proceeding to any Court
15-8 of Civil Appeals, or to the Supreme Court.
15-9 SECTION 8. Section 10, Chapter 84, Acts of the 59th
15-10 Legislature, Regular Session, 1965, is amended to read as follows:
15-11 Sec. 10. Within thirty (30) days after appointment and
15-12 qualification of the board of directors of the hospital district,
15-13 the said directors shall by resolution designate a bank [within the
15-14 county in which the district is located] as the district's
15-15 depository or treasurer and all funds of the district shall be
15-16 secured in the manner now provided for the security of county
15-17 funds. [The depository shall serve for a period of two (2) years
15-18 until a successor has been named.]
15-19 SECTION 9. Section 11, Chapter 84, Acts of the 59th
15-20 Legislature, Regular Session, 1965, is amended to read as follows:
15-21 Sec. 11. The district established or maintained under the
15-22 provisions of this Act shall be subject to inspection by any duly
15-23 authorized representative of the [State Board of Health or any]
15-24 state [board of charities (or public welfare) that may hereafter be
15-25 created], and the officers and employees of the district shall
15-26 admit such representatives into all hospital district facilities
16-1 and give them access on demand to all records, reports, books,
16-2 papers and accounts pertaining to the hospital district.
16-3 SECTION 10. Section 13, Chapter 84, Acts of the 59th
16-4 Legislature, Regular Session, 1965, is amended to read as follows:
16-5 Sec. 13. Whenever a patient residing in the hospital
16-6 district has been admitted to the facilities of the hospital
16-7 district, the administrator may [directors shall] cause inquiry to
16-8 be made as to the patient's [his] circumstances, and of the
16-9 relatives of such patient legally liable for the patient's [his]
16-10 support. If the administrator finds [they find] that such patient
16-11 or said relatives are liable to pay for the patient's [his] care
16-12 and treatment in whole or in part, an order shall be made directing
16-13 such patient, or said relatives, to pay to the [treasurer of the]
16-14 hospital district for the support of such patient a specified sum
16-15 per week, in proportion to their financial ability[, but such sum
16-16 shall not exceed the actual per capita cost of maintenance]. The
16-17 district shall have power and authority to collect such sum from
16-18 the estate of the patient, or the patient's [his] relatives legally
16-19 liable for the patient's [his] support, in the manner provided by
16-20 law for the collection of expenses of the last illness of a
16-21 deceased person. If the administrator [agent designated by the
16-22 district to handle such affairs] finds that such patient or said
16-23 relatives are not able to pay, either in whole or in part, for the
16-24 patient's [his] care and treatment in such hospital, the same shall
16-25 become a charge upon the hospital district. Should there be a
16-26 dispute as to the ability to pay, or doubt in the mind of the
17-1 administrator [person designated as aforesaid], the board of
17-2 [district's] directors shall hear and determine same, after calling
17-3 witnesses, and shall make such order as may be proper[, from which
17-4 appeal shall lie to the district court by either party to the
17-5 dispute].
17-6 SECTION 11. Chapter 84, Acts of the 59th Legislature,
17-7 Regular Session, 1965, is amended by adding Section 16A to read as
17-8 follows:
17-9 Sec. 16A. (a) The district may be dissolved only if the
17-10 dissolution is approved by a majority of the qualified voters of
17-11 the district voting in an election called and held for that
17-12 purpose.
17-13 (b) The board of directors may order an election on the
17-14 question of dissolving the district and disposing of the district's
17-15 assets and obligations. The board shall order an election if the
17-16 board receives a petition requesting an election that is signed by
17-17 a number of registered voters of the district equal to at least 15
17-18 percent of the registered voters in the district.
17-19 (c) The election shall be held not later than the 60th day
17-20 after the date the election is ordered. Section 41.001(a),
17-21 Election Code, does not apply to an election ordered under this
17-22 section. The order calling the election shall state:
17-23 (1) the nature of the election, including the
17-24 proposition that is to appear on the ballot;
17-25 (2) the date of the election;
17-26 (3) the hours during which the polls will be open; and
18-1 (4) the location of the polling places.
18-2 (d) The board of directors shall give notice of the election
18-3 by publishing a substantial copy of the election order in a
18-4 newspaper with general circulation in the district once a week for
18-5 two consecutive weeks. The first publication must appear not less
18-6 than 35 days before the date set for the election. The ballot for
18-7 the election shall be printed to permit voting for or against the
18-8 proposition: "The dissolution of the Palo Pinto County Hospital
18-9 District."
18-10 (e) If a majority of the votes in the election favor
18-11 dissolution, the board of directors shall find that the district is
18-12 dissolved. If a majority of the votes in the election do not favor
18-13 dissolution, the board shall continue to administer the district,
18-14 and another election on the question of dissolution may not be held
18-15 before the first anniversary of the most recent election to
18-16 dissolve the district.
18-17 (f) If a majority of the votes in the election favor
18-18 dissolution, the board of directors shall:
18-19 (1) transfer the land, buildings, improvements,
18-20 equipment, and other assets that belong to the district to a county
18-21 or another governmental entity in the county in which the district
18-22 is located;
18-23 (2) sell the assets and liabilities to another person
18-24 or entity; or
18-25 (3) administer the property, assets, and debts until
18-26 all funds have been disposed of and all district debts have been
19-1 paid or settled.
19-2 (g) If the district transfers the land, buildings,
19-3 improvements, equipment, and other assets to a county or other
19-4 governmental entity, the county or entity assumes all debts and
19-5 obligations of the district at the time of the transfer, at which
19-6 time the district is dissolved. If the district does not transfer
19-7 the land, buildings, improvements, equipment, and other assets to a
19-8 county or other governmental entity, or sell those assets and the
19-9 liabilities to another person, the board of directors shall
19-10 administer the property, assets, and debts of the district until
19-11 all funds have been disposed of and all district debts have been
19-12 paid or settled, at which time the district is dissolved.
19-13 (h) After the board of directors finds that the district is
19-14 dissolved, the board shall:
19-15 (1) determine the debt owed by the district; and
19-16 (2) impose on the property included in the district's
19-17 tax rolls a tax that is in proportion of the debt to the property
19-18 value.
19-19 (i) When all outstanding debts and obligations of the
19-20 district are paid, the board of directors shall order the secretary
19-21 to return the pro rata share of all unused tax money to each
19-22 district taxpayer.
19-23 (j) A taxpayer may request that the taxpayer's share of
19-24 surplus tax money be credited to the taxpayer's county taxes. If a
19-25 taxpayer requests the credit, the board of directors shall direct
19-26 the secretary to transmit the funds to the county tax
20-1 assessor-collector.
20-2 (k) After the district has paid all its debts and has
20-3 disposed of all its assets and funds as prescribed by this section,
20-4 the board of directors shall file a written report with the
20-5 Commissioners Court of Palo Pinto County setting forth a summary of
20-6 the board's actions in dissolving the district.
20-7 (l) Not later than the 10th day after the date it receives
20-8 the report and determines that the requirements of this section
20-9 have been fulfilled, the Commissioners Court of Palo Pinto County
20-10 shall enter an order dissolving the district and releasing the
20-11 board of directors of the district from any further duty or
20-12 obligation.
20-13 (m) The district may provide for the sale or transfer of the
20-14 district's assets and liabilities to another person or entity and
20-15 the district's subsequent dissolution. The dissolution of the
20-16 district and the sale or transfer of the district's assets and
20-17 liabilities to another person or entity may not contravene a trust
20-18 indenture or bond resolution relating to the outstanding bonds of
20-19 the district. The dissolution and sale or transfer does not
20-20 diminish or impair the rights of a holder of an outstanding bond,
20-21 warrant, or other obligation of the district.
20-22 (n) The sale or transfer of the district's assets and
20-23 liabilities must satisfy the debt and bond obligations of the
20-24 district in a manner that protects the interests of the residents
20-25 of the district, including the residents' collective property
20-26 rights in the district's assets. A grant from federal funds is an
21-1 obligation to be repaid in satisfaction. The district may not
21-2 transfer or dispose of the district's assets except for due
21-3 compensation unless the transfer is made to another governmental
21-4 entity that serves the district and the transferred assets are to
21-5 be used for the benefit of the residents of the district.
21-6 SECTION 12. This Act takes effect September 1, 2001.