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.