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.