By Sibley S.B. No. 1073
77R3647 JMG-F
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
2-1 and owns land subject to taxation therein and unless at the time of
2-2 such election or appointment he shall be at least eighteen (18)
2-3 years of age].
2-4 (b) Each member of the Board of Directors shall qualify by
2-5 executing the Constitutional Oath of Office and shall execute a
2-6 good and sufficient bond for $5,000 [One Thousand Dollars ($1,000)]
2-7 payable to said District conditioned upon the faithful performance
2-8 of the member's [his] duties, and such oaths and bonds shall be
2-9 deposited with the depository bank of the District for safekeeping.
2-10 (c) The Board of Directors shall organize by electing one of
2-11 their number as president, one of their number as vice-president,
2-12 and one of their number as secretary. Each officer shall serve for
2-13 a term of one year and may serve successive terms. Any four (4)
2-14 members of the Board of Directors shall constitute a quorum and a
2-15 concurrence of four (4) members shall be sufficient in all matters
2-16 pertaining to the business of the District. All vacancies in the
2-17 elective positions of directors shall be filled for the unexpired
2-18 term by a majority vote of [appointment made by] the remainder of
2-19 the Board of Directors, and those appointees shall hold office for
2-20 the unexpired terms for which they were appointed. In the event
2-21 the number of directors shall be reduced to less than four (4) for
2-22 any reason, the remaining directors shall immediately call a
2-23 special election to fill the elective positions which are vacant,
2-24 and upon failure to do so a district court may, upon application of
2-25 any voter or taxpayer of the District, issue a mandate requiring
2-26 that such election be ordered by the remaining directors.
2-27 (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 in
3-3 accordance with the applicable provisions of Chapter 3, Election
3-4 Code. Notice of each election of directors shall be published in a
3-5 newspaper of general circulation in the county in accordance with
3-6 Chapter 4, Election Code [one time not later than the thirty-fifth
3-7 day before the date of election]. Any person desiring the person's
3-8 [his] name to be printed on the ballot as a candidate for elective
3-9 director shall file an application [a petition, signed by not less
3-10 than twenty-five (25) qualified voters asking that such name be
3-11 printed on the ballot,] with the secretary of the Board of
3-12 Directors of the District in accordance with Chapter 144, Election
3-13 Code. [Such petition shall be filed with such secretary not later
3-14 than the thirty-first day before the date of election.] The
3-15 application [petition] must specify the place for which the
3-16 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
3-27 for the benefit of the district [at the same time taxes are levied
4-1 for county purposes, using county values and the county tax roll,]
4-2 a tax of not to exceed Seventy-Five Cents (75 ) on the One Hundred
4-3 Dollar ($100) valuation of all taxable property within the hospital
4-4 district, for the purpose of: (1) paying the interest on and
4-5 creating a sinking fund for bonds and other obligations which may
4-6 be issued or assumed by the hospital district for hospital purposes
4-7 as herein provided; (2) providing for the operation and maintenance
4-8 of the hospital district and hospital system; and (3) for the
4-9 purpose of making further improvements and additions to the
4-10 hospital system, and, for the acquisition of necessary sites
4-11 therefor, by purchase, lease or condemnation.
4-12 (b) The Tax Code governs the appraisal, assessment, and
4-13 collection of district taxes. The board may provide for the
4-14 appointment of a tax assessor-collector for the district or may
4-15 contract for the assessment and collection of taxes as provided by
4-16 the Tax Code. [Not later than October 1st of each year, the board
4-17 of directors shall levy the tax on all taxable property within the
4-18 district which is subject to taxation and shall immediately certify
4-19 such tax rate to the tax assessor and collector of Palo Pinto
4-20 County, provided that the taxes initially levied can be levied at
4-21 any time and shall be levied for the entire year in which such
4-22 taxes are levied. The tax so levied shall be collected on all
4-23 property subject to the hospital district taxation by the assessor
4-24 and collector of tax for Palo Pinto County on the county tax
4-25 values, and in the same manner and under the same conditions as
4-26 county taxes. The assessor and collector of taxes shall charge and
4-27 deduct from payments to the hospital district the fees for
5-1 assessing and collecting the tax at the rate of not exceeding one
5-2 percent (1%) of the amounts collected as may be determined by the
5-3 board of directors but in no event in excess of Five Thousand
5-4 Dollars ($5,000) for any one (1) fiscal year. Such fees shall be
5-5 deposited in the county's general fund, and shall be reported as
5-6 fees of office of the tax assessor and collector. Interest and
5-7 penalties on taxes paid to the hospital district shall be the same
5-8 as for county taxes. The residue of tax collections, after
5-9 deduction of discounts and fees for assessing and collecting, shall
5-10 be deposited in the district depository; and such funds shall be
5-11 withdrawn only as provided herein. All other income of the
5-12 hospital district shall be deposited in like manner with the
5-13 district depository.]
5-14 SECTION 3. Section 6, Chapter 84, Acts of the 59th
5-15 Legislature, Regular Session, 1965, is amended to read as follows:
5-16 Sec. 6. (a) The board of directors shall have the power and
5-17 authority to issue and sell as the obligations of such hospital
5-18 district, and in the name and upon the faith and credit of such
5-19 hospital district, general obligation bonds authorized by an
5-20 election for the purchase, construction, acquisition, repair, or
5-21 renovation of buildings and improvements, [and] equipping the same
5-22 for hospital purposes, and acquisition of sites to be used for the
5-23 district's [for any or all of such] purposes. At the time of
5-24 issuance of any general obligation bonds,[; provided, that] a
5-25 sufficient tax shall be levied to create an interest and sinking
5-26 fund to pay the interest and principal as same matures, providing
5-27 said tax together with any other taxes levied for the [said]
6-1 district shall not exceed Seventy-Five Cents (75 ) on each $100
6-2 valuation in any one (1) year.
6-3 (b) District [Such] bonds shall be executed in the name of
6-4 the hospital district and on its behalf by the president of the
6-5 board of directors, and countersigned by the secretary of the board
6-6 of directors, and shall be subject to the same requirements in the
6-7 matter of approval thereof by the Attorney General of the State of
6-8 Texas and the registration thereof by the Comptroller of Public
6-9 Accounts of the State of Texas as are by law provided for such
6-10 approval and registration of bonds of counties of this state. Upon
6-11 the approval of such bonds by the Attorney General of Texas and
6-12 registration by the Comptroller the same shall be incontestable for
6-13 any cause.
6-14 (c) No general obligation bonds shall be issued by such
6-15 hospital district [(except refunding bonds)] until authorized by a
6-16 majority vote of the resident qualified voters [electors who own
6-17 taxable property within the district and have duly rendered the
6-18 same for taxation,] voting at an election called and held for such
6-19 purpose. Such election may be called by the board of directors on
6-20 its own motion, and shall be conducted in accordance with Chapter
6-21 1251, Government Code [the order calling said election shall
6-22 specify the date of the election, the place or places where the
6-23 election shall be held, the presiding officers thereof, the purpose
6-24 for which the bonds are to be issued, the amount thereof, the
6-25 maximum interest rate (not to exceed six percent (6%) per annum)
6-26 and the maximum maturity date of such bonds (not to exceed forty
6-27 (40) years from their date of issuance). Notice of election shall
7-1 be given by publishing a substantial copy of the order calling the
7-2 election in a newspaper of general circulation in such county once
7-3 a week for two (2) consecutive weeks prior to the date of election,
7-4 the date of the first publication being at least fourteen (14) full
7-5 days prior to the date set for the election. The cost of such
7-6 election shall be paid by the hospital district].
7-7 (d) [The bonds of the district may be made optional for
7-8 redemption prior to their maturity date at the discretion of the
7-9 board of directors.] The district may without an election issue
7-10 refunding bonds of the district to refund and pay off any validly
7-11 issued and outstanding bonds [heretofore or hereafter] issued or
7-12 assumed by the district. Refunding bonds shall be issued in
7-13 accordance with Chapter 1207, Government Code [provided any such
7-14 refunding bonds shall bear interest at the same rate or at a lesser
7-15 rate than the bonds being refunded unless it be shown
7-16 mathematically that a savings will result in the total amount of
7-17 interest to be paid].
7-18 (e) The board may issue and sell revenue bonds in the name
7-19 and on the faith and credit of the district to purchase, construct,
7-20 acquire, repair, renovate, or equip buildings or improvements for
7-21 district purposes. The bonds shall be payable from and secured by
7-22 a pledge of all or part of the revenues derived from the operation
7-23 of the district's hospital system. The bonds may be additionally
7-24 secured by a mortgage or deed of trust on all or part of the
7-25 district's property. The revenue bonds shall be issued in the
7-26 manner provided by Sections 264.042, 264.043, 264.046, 264.047,
7-27 264.048, and 264.049, Health and Safety Code, for the issuance of
8-1 revenue bonds by county hospital authorities.
8-2 SECTION 4. Chapter 84, Acts of the 59th Legislature, Regular
8-3 Session, 1965, is amended by adding Section 6B to read as follows:
8-4 Sec. 6B. (a) The board may borrow money at a rate not to
8-5 exceed the maximum annual percentage rate allowed by law for
8-6 district obligations at the time of the loan.
8-7 (b) To secure a loan, the board may pledge:
8-8 (1) revenues of the district that are not pledged to
8-9 pay the bonded indebtedness of the district;
8-10 (2) district taxes to be levied by the district during
8-11 the 12-month period following the date of the pledge that are not
8-12 pledged to pay the principal of or interest on district bonds; or
8-13 (3) district bonds that have been authorized but not
8-14 sold.
8-15 (c) A loan for which taxes or bonds are pledged shall mature
8-16 not later than the first anniversary of the date on which the loan
8-17 is made. A loan for which district revenues are pledged shall
8-18 mature not later than the fifth anniversary of the date on which
8-19 the loan is made.
8-20 SECTION 5. Section 7, Chapter 84, Acts of the 59th
8-21 Legislature, Regular Session, 1965, is amended to read as follows:
8-22 Sec. 7. (a) The board of directors shall manage, control,
8-23 and administer the hospitals and hospital system of the district.
8-24 The district through its board of directors may sue and be sued.
8-25 (b) The board of directors may appoint a qualified person to
8-26 be known as the administrator of the hospital district and may in
8-27 its discretion appoint an assistant to the administrator. The
9-1 administrator and assistant administrator, if any, serve at the
9-2 will of the board and receive compensation as may be fixed by the
9-3 board. The administrator shall, on assuming the administrator's
9-4 duties, execute a bond payable to the hospital district in an
9-5 amount of not less than $5,000 as determined by the board,
9-6 conditioned on the administrator performing the administrator's
9-7 required duties and containing other conditions the board requires.
9-8 The board may pay for the bond with district funds. The
9-9 administrator shall supervise all the work and activities of the
9-10 district and shall have general direction of the affairs of the
9-11 district, subject to any limitations the board may prescribe. The
9-12 board of directors may provide that the administrator shall have
9-13 the authority to employ or appoint to the staff doctors,
9-14 technicians, nurses, and other employees of every kind and
9-15 character as necessary for the efficient operation of the district.
9-16 (c) The board may contract with any county or incorporated
9-17 municipality located outside its boundaries for the care and
9-18 treatment of the sick, diseased, or injured persons of the county
9-19 or municipality and may contract with this state or agencies of the
9-20 federal government for the treatment of sick, diseased, or injured
9-21 persons.
9-22 (d) The board of directors may purchase or lease property,
9-23 facilities, and equipment for the district to use in the hospital
9-24 system and may mortgage or pledge the property, facilities, or
9-25 equipment as security for the payment of the purchase price.
9-26 (e) The board may enter into a contract or contracts to
9-27 provide administrative and other personnel for the operation of the
10-1 hospital facilities. The term of the contract may not exceed 25
10-2 years. The board may transfer district hospital facilities by
10-3 lease to individuals, corporations, or other legal entities and may
10-4 sell or otherwise dispose of the district's property, facilities,
10-5 and equipment.
10-6 (f) The board may provide retirement benefits for the
10-7 employees of the district by establishing or administering a
10-8 retirement program or electing to participate in any statewide
10-9 retirement system in which the district is eligible to participate.
10-10 (g) The board of directors may spend district funds, enter
10-11 into agreements, and take other necessary action to recruit
10-12 physicians and other persons to serve as medical staff members or
10-13 employees of the district, including:
10-14 (1) advertising and marketing;
10-15 (2) paying travel, recruitment, and relocation
10-16 expenses;
10-17 (3) providing a loan or scholarship to a physician or
10-18 a person currently enrolled in health care education courses at an
10-19 institution of higher education who contractually agrees to become
10-20 a district employee or medical staff member; or
10-21 (4) contracting with one or more full-time medical
10-22 students or other students in a health occupation, each of whom
10-23 shall be enrolled in and in good standing at an accredited medical
10-24 school, college, or university, to pay the student's tuition or
10-25 other expenses in consideration of the student's agreement to serve
10-26 as an employee or independent contractor for the district.
10-27 (h) The board may institute a suit to enforce the payment of
11-1 taxes and to foreclose liens to secure the payment of taxes due to
11-2 the district.
11-3 (i) The board may provide or contract for the provision of
11-4 educational programs or courses for employees and medical staff of
11-5 the district.
11-6 (j) The board may institute a suit to collect amounts owed
11-7 to the district by patients who have not been determined to be
11-8 unable to pay under Section 13.
11-9 (k) The district may sponsor and create a nonprofit
11-10 corporation under the Texas Non-Profit Corporation Act (Article
11-11 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
11-12 contribute funds to or solicit funds for the corporation. The
11-13 corporation may use funds, other than funds paid by the corporation
11-14 to the district, only to provide health care or other services the
11-15 district is authorized to provide under this Act. The board of
11-16 directors of the hospital district shall establish adequate
11-17 controls to ensure that the corporation uses its funds as required
11-18 by this subsection. The corporation may invest corporation funds
11-19 in any manner in which the district may invest funds, including
11-20 investing funds as authorized by Chapter 2256, Government Code.
11-21 [The board of directors of such district shall have the power to
11-22 prescribe the method and manner of making purchases and
11-23 expenditures by and for such hospital district, and also shall
11-24 prescribe all accounting and control procedures; the method of
11-25 purchasing necessary supplies, materials and equipment; and shall
11-26 have the power to adopt a seal for such district; and may employ a
11-27 general manager, attorneys, bookkeepers, architects, and any other
12-1 employees deemed necessary for the efficient operation of the
12-2 hospital district. The board of directors may spend district funds
12-3 to recruit physicians for the hospital staff as necessary to meet
12-4 the medical needs of district residents and to provide scholarships
12-5 and student loans to educate district residents in fields relating
12-6 to health care.]
12-7 (l) All books, records, accounts, notices and minutes and
12-8 all other matters of the district and the operation of its
12-9 facilities shall, except as herein provided, be maintained at the
12-10 office of the district and there be open to public inspection at
12-11 all reasonable hours.
12-12 (m) The board of directors is specifically empowered to
12-13 adopt rules and regulations governing the operation of such
12-14 district and its facilities which rules and regulations shall
12-15 supplement but shall not contravene any of the provisions of this
12-16 Act. Such rules and regulations may, upon approval of the board of
12-17 directors, be published in booklet or pamphlet form at the expense
12-18 of the district and may be made available to any taxpayer upon
12-19 request.
12-20 SECTION 6. Section 8, Chapter 84, Acts of the 59th
12-21 Legislature, Regular Session, 1965, is amended to read as follows:
12-22 Sec. 8. (a) The district shall be operated on the basis of a
12-23 fiscal year to be established by the board of directors. The
12-24 fiscal year may not be changed when revenue bonds are outstanding
12-25 or more than one time in a 24-month period [fiscal year of the
12-26 hospital district authorized to be established by the provisions
12-27 hereof shall commence on October 1st of each year and end on the
13-1 30th day of September of the following year]. The board [district
13-2 directors] shall cause an annual independent audit to be made of
13-3 the books and records of the district. The audit and the records
13-4 of the district are open to inspection[, such audit to be made
13-5 covering such fiscal year, and the same shall be filed with the
13-6 Comptroller of Public Accounts of the State of Texas and] at the
13-7 office of the district [not later than December 31st of each year].
13-8 (b) The administrator shall prepare an annual budget for
13-9 approval by the board of directors. The board [of directors shall
13-10 each year cause a budget to be prepared showing the proposed
13-11 expenditures and disbursements and the estimated receipts and
13-12 collections for the following fiscal year and] shall hold a public
13-13 hearing on the proposed budget after publication of a notice of
13-14 hearing in a newspaper of general circulation in the district
13-15 [county] at least once not less than ten (10) days prior to the
13-16 date set for the hearing. Any person who is a resident [taxpayer]
13-17 of the district shall have the right to appear at the time and
13-18 place designated in the notice and be heard with reference to any
13-19 item shown in the proposed budget. The annual budget is effective
13-20 only after adoption by the board of directors. After adoption, the
13-21 annual budget may be amended on approval of the board of directors.
13-22 [The proposed budget shall also show the amount of taxes required
13-23 to be levied and collected during such fiscal year and upon final
13-24 approval of the budget, the board of directors shall levy such tax
13-25 as may be required and certify the tax rate for such year to the
13-26 county tax assessor and collector as provided in Section 5 hereof,
13-27 and it shall be the duty of the said tax assessor and collector to
14-1 assess and collect such tax.]
14-2 SECTION 7. Section 9, Chapter 84, Acts of the 59th
14-3 Legislature, Regular Session, 1965, is amended to read as follows:
14-4 Sec. 9. The district shall have the right and power of
14-5 eminent domain for the purpose of acquiring by condemnation any and
14-6 all property of any kind or character, real, personal or mixed, or
14-7 any interest therein, including outright ownership of such property
14-8 in fee simple absolute, within the boundaries of the said district,
14-9 necessary or convenient to the exercise of the rights, power,
14-10 privileges and functions conferred upon it by this Act, in the
14-11 manner provided by General Law with respect to condemnation;
14-12 provided that the said district shall not be required to make
14-13 deposits in the registry of the trial court of the sum required by
14-14 Section 21.021, Property Code [Paragraph No. 2 in Article 3268,
14-15 Vernon's Annotated Civil Statutes, 1925], or to make the bond
14-16 required therein. In condemnation proceedings being prosecuted by
14-17 the said district, the district shall not be required to pay in
14-18 advance or to give bond or other security for costs in the trial
14-19 court, nor to give any bond otherwise required for the issuance of
14-20 a temporary restraining order or a temporary injunction relating to
14-21 a condemnation proceeding, nor to give bond for costs or for
14-22 supersedeas on any appeal or writ of error proceeding to any Court
14-23 of Civil Appeals, or to the Supreme Court.
14-24 SECTION 8. Section 10, Chapter 84, Acts of the 59th
14-25 Legislature, Regular Session, 1965, is amended to read as follows:
14-26 Sec. 10. Within thirty (30) days after appointment and
14-27 qualification of the board of directors of the hospital district,
15-1 the said directors shall by resolution designate a bank [within the
15-2 county in which the district is located] as the district's
15-3 depository or treasurer and all funds of the district shall be
15-4 secured in the manner now provided for the security of county
15-5 funds. [The depository shall serve for a period of two (2) years
15-6 until a successor has been named.]
15-7 SECTION 9. Section 11, Chapter 84, Acts of the 59th
15-8 Legislature, Regular Session, 1965, is amended to read as follows:
15-9 Sec. 11. The district established or maintained under the
15-10 provisions of this Act shall be subject to inspection by any duly
15-11 authorized representative of the [State Board of Health or any]
15-12 state [board of charities (or public welfare) that may hereafter be
15-13 created], and the officers and employees of the district shall
15-14 admit such representatives into all hospital district facilities
15-15 and give them access on demand to all records, reports, books,
15-16 papers and accounts pertaining to the hospital district.
15-17 SECTION 10. Section 13, Chapter 84, Acts of the 59th
15-18 Legislature, Regular Session, 1965, is amended to read as follows:
15-19 Sec. 13. Whenever a patient residing in the hospital
15-20 district has been admitted to the facilities of the hospital
15-21 district, the administrator may [directors shall] cause inquiry to
15-22 be made as to the patient's [his] circumstances, and of the
15-23 relatives of such patient legally liable for the patient's [his]
15-24 support. If the administrator finds [they find] that such patient
15-25 or said relatives are liable to pay for the patient's [his] care
15-26 and treatment in whole or in part, an order shall be made directing
15-27 such patient, or said relatives, to pay to the [treasurer of the]
16-1 hospital district for the support of such patient a specified sum
16-2 per week, in proportion to their financial ability[, but such sum
16-3 shall not exceed the actual per capita cost of maintenance]. The
16-4 district shall have power and authority to collect such sum from
16-5 the estate of the patient, or the patient's [his] relatives legally
16-6 liable for the patient's [his] support, in the manner provided by
16-7 law for the collection of expenses of the last illness of a
16-8 deceased person. If the administrator [agent designated by the
16-9 district to handle such affairs] finds that such patient or said
16-10 relatives are not able to pay, either in whole or in part, for the
16-11 patient's [his] care and treatment in such hospital, the same shall
16-12 become a charge upon the hospital district. Should there be a
16-13 dispute as to the ability to pay, or doubt in the mind of the
16-14 administrator [person designated as aforesaid], the board
16-15 [district's directors] shall hear and determine same, after calling
16-16 witnesses, and shall make such order as may be proper[, from which
16-17 appeal shall lie to the district court by either party to the
16-18 dispute].
16-19 SECTION 11. Chapter 84, Acts of the 59th Legislature,
16-20 Regular Session, 1965, is amended by adding Section 16A to read as
16-21 follows:
16-22 Sec. 16A. (a) The district may be dissolved only if the
16-23 dissolution is approved by a majority of the qualified voters of
16-24 the district voting in an election called and held for that
16-25 purpose.
16-26 (b) The board may order an election on the question of
16-27 dissolving the district and disposing of the district's assets and
17-1 obligations. The board shall order an election if the board
17-2 receives a petition requesting an election that is signed by a
17-3 number of registered voters of the district equal to at least 15
17-4 percent of the registered voters in the district.
17-5 (c) The election shall be held not later than the 60th day
17-6 after the date the election is ordered. Section 41.001(a),
17-7 Election Code, does not apply to an election ordered under this
17-8 section. The order calling the election shall state:
17-9 (1) the nature of the election, including the
17-10 proposition that is to appear on the ballot;
17-11 (2) the date of the election;
17-12 (3) the hours during which the polls will be open; and
17-13 (4) the location of the polling places.
17-14 (d) The board shall give notice of the election by
17-15 publishing a substantial copy of the election order in a newspaper
17-16 with general circulation in the district once a week for two
17-17 consecutive weeks. The first publication must appear not less than
17-18 35 days before the date set for the election. The ballot for the
17-19 election shall be printed to permit voting for or against the
17-20 proposition: "The dissolution of the Palo Pinto County Hospital
17-21 District."
17-22 (e) If a majority of the votes in the election favor
17-23 dissolution, the board shall find that the district is dissolved.
17-24 If a majority of the votes in the election do not favor
17-25 dissolution, the board shall continue to administer the district,
17-26 and another election on the question of dissolution may not be held
17-27 before the first anniversary of the most recent election to
18-1 dissolve the district.
18-2 (f) If a majority of the votes in the election favor
18-3 dissolution, the board shall:
18-4 (1) transfer the land, buildings, improvements,
18-5 equipment, and other assets that belong to the district to a county
18-6 or another governmental entity in the county in which the district
18-7 is located;
18-8 (2) sell the assets and liabilities to another person
18-9 or entity; or
18-10 (3) administer the property, assets, and debts until
18-11 all funds have been disposed of and all district debts have been
18-12 paid or settled.
18-13 (g) If the district transfers the land, buildings,
18-14 improvements, equipment, and other assets to a county or other
18-15 governmental entity, the county or entity assumes all debts and
18-16 obligations of the district at the time of the transfer, at which
18-17 time the district is dissolved. If the district does not transfer
18-18 the land, buildings, improvements, equipment, and other assets to a
18-19 county or other governmental entity, or sell those assets and the
18-20 liabilities to another person, the board shall administer the
18-21 property, assets, and debts of the district until all funds have
18-22 been disposed of and all district debts have been paid or settled,
18-23 at which time the district is dissolved.
18-24 (h) After the board finds that the district is dissolved,
18-25 the board shall:
18-26 (1) determine the debt owed by the district; and
18-27 (2) impose on the property included in the district's
19-1 tax rolls a tax that is in proportion of the debt to the property
19-2 value.
19-3 (i) When all outstanding debts and obligations of the
19-4 district are paid, the board shall order the secretary to return
19-5 the pro rata share of all unused tax money to each district
19-6 taxpayer.
19-7 (j) A taxpayer may request that the taxpayer's share of
19-8 surplus tax money be credited to the taxpayer's county taxes. If a
19-9 taxpayer requests the credit, the board shall direct the secretary
19-10 to transmit the funds to the county tax assessor-collector.
19-11 (k) After the district has paid all its debts and has
19-12 disposed of all its assets and funds as prescribed by this section,
19-13 the board shall file a written report with the Commissioners Court
19-14 of Palo Pinto County setting forth a summary of the board's actions
19-15 in dissolving the district.
19-16 (l) Not later than the 10th day after the date it receives
19-17 the report and determines that the requirements of this section
19-18 have been fulfilled, the Commissioners Court of Palo Pinto County
19-19 shall enter an order dissolving the district and releasing the
19-20 board of directors of the district from any further duty or
19-21 obligation.
19-22 (m) The district may provide for the sale or transfer of the
19-23 district's assets and liabilities to another person or entity and
19-24 the district's subsequent dissolution. The dissolution of the
19-25 district and the sale or transfer of the district's assets and
19-26 liabilities to another person or entity may not contravene a trust
19-27 indenture or bond resolution relating to the outstanding bonds of
20-1 the district. The dissolution and sale or transfer does not
20-2 diminish or impair the rights of a holder of an outstanding bond,
20-3 warrant, or other obligation of the district.
20-4 (n) The sale or transfer of the district's assets and
20-5 liabilities must satisfy the debt and bond obligations of the
20-6 district in a manner that protects the interests of the residents
20-7 of the district, including the residents' collective property
20-8 rights in the district's assets. A grant from federal funds is an
20-9 obligation to be repaid in satisfaction. The district may not
20-10 transfer or dispose of the district's assets except for due
20-11 compensation unless the transfer is made to another governmental
20-12 entity that serves the district and the transferred assets are to
20-13 be used for the benefit of the residents of the district.
20-14 SECTION 12. This Act takes effect September 1, 2001.