1-1 By: Sibley S.B. No. 1073
1-2 (In the Senate - Filed March 5, 2001; March 6, 2001, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; March 28, 2001, reported favorably by the following
1-5 vote: Yeas 6, Nays 0; March 28, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the Palo Pinto County Hospital District.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 4, Chapter 84, Acts of the 59th
1-11 Legislature, Regular Session, 1965, is amended to read as follows:
1-12 Sec. 4. (a) The District shall be governed, managed and
1-13 controlled by a Board of Directors composed of seven (7) members,
1-14 all of whom shall have the same rights and responsibilities with
1-15 respect to voting and all other matters. The Chief of Staff of the
1-16 hospital system owned and operated by the District shall be elected
1-17 by the medical staff thereof not less frequently than every two (2)
1-18 years, and one position on the Board of Directors of said District
1-19 shall at all times be occupied by the Chief of Staff thus elected.
1-20 The other six (6) members of the Board of Directors shall be
1-21 elected by place. Directors for places 1, 2, and 3 are elected in
1-22 odd-numbered years and[;] directors for places 4, 5, and 6 are
1-23 elected in even-numbered years. The candidate for a place who
1-24 receives the highest number of votes for election to a place is a
1-25 director for the District. Members elected to the Board of
1-26 Directors shall serve for a period of two (2) years and until their
1-27 successors have been duly elected or appointed and qualified. No
1-28 person shall be appointed or elected to the elective positions on
1-29 the Board of Directors of said Hospital District unless the person
1-30 [he] is a resident of the District and a qualified voter [thereof
1-31 and owns land subject to taxation therein and unless at the time of
1-32 such election or appointment he shall be at least eighteen (18)
1-33 years of age].
1-34 (b) Each member of the Board of Directors shall qualify by
1-35 executing the Constitutional Oath of Office and shall execute a
1-36 good and sufficient bond for $5,000 [One Thousand Dollars ($1,000)]
1-37 payable to said District conditioned upon the faithful performance
1-38 of the member's [his] duties, and such oaths and bonds shall be
1-39 deposited with the depository bank of the District for safekeeping.
1-40 (c) The Board of Directors shall organize by electing one of
1-41 their number as president, one of their number as vice-president,
1-42 and one of their number as secretary. Each officer shall serve for
1-43 a term of one year and may serve successive terms. Any four (4)
1-44 members of the Board of Directors shall constitute a quorum and a
1-45 concurrence of four (4) members shall be sufficient in all matters
1-46 pertaining to the business of the District. All vacancies in the
1-47 elective positions of directors shall be filled for the unexpired
1-48 term by a majority vote of [appointment made by] the remainder of
1-49 the Board of Directors, and those appointees shall hold office for
1-50 the unexpired terms for which they were appointed. In the event
1-51 the number of directors shall be reduced to less than four (4) for
1-52 any reason, the remaining directors shall immediately call a
1-53 special election to fill the elective positions which are vacant,
1-54 and upon failure to do so a district court may, upon application of
1-55 any voter or taxpayer of the District, issue a mandate requiring
1-56 that such election be ordered by the remaining directors.
1-57 (d) A regular election for the election of the appropriate
1-58 number of successor directors shall be held on the first Saturday
1-59 in May [April] of each year and shall be ordered by the Board of
1-60 Directors in accordance with the applicable provisions of Chapter
1-61 3, Election Code. Notice of each election of directors shall be
1-62 published in a newspaper of general circulation in the county in
1-63 accordance with Chapter 4, Election Code [one time not later than
1-64 the thirty-fifth day before the date of election]. Any person
2-1 desiring the person's [his] name to be printed on the ballot as a
2-2 candidate for elective director shall file an application [a
2-3 petition, signed by not less than twenty-five (25) qualified voters
2-4 asking that such name be printed on the ballot,] with the secretary
2-5 of the Board of Directors of the District in accordance with
2-6 Chapter 144, Election Code. [Such petition shall be filed with
2-7 such secretary not later than the thirty-first day before the date
2-8 of election.] The application [petition] must specify the place
2-9 for which the applicant is to be a candidate.
2-10 (e) All members of the Board of Directors shall serve
2-11 without compensation but may be reimbursed for actual expenses
2-12 incurred in the performance of their official duties upon the
2-13 approval of such expenses by the entire Board of Directors as
2-14 reported in the minutes of the board.
2-15 SECTION 2. Section 5, Chapter 84, Acts of the 59th
2-16 Legislature, Regular Session, 1965, is amended to read as follows:
2-17 Sec. 5. (a) The board of directors of such hospital
2-18 district shall have the power and authority, and it shall be their
2-19 duty, to levy on all property subject to hospital district taxation
2-20 for the benefit of the district [at the same time taxes are levied
2-21 for county purposes, using county values and the county tax roll,]
2-22 a tax of not to exceed Seventy-Five Cents (75 ) on the One Hundred
2-23 Dollar ($100) valuation of all taxable property within the hospital
2-24 district, for the purpose of: (1) paying the interest on and
2-25 creating a sinking fund for bonds and other obligations which may
2-26 be issued or assumed by the hospital district for hospital purposes
2-27 as herein provided; (2) providing for the operation and maintenance
2-28 of the hospital district and hospital system; and (3) for the
2-29 purpose of making further improvements and additions to the
2-30 hospital system, and, for the acquisition of necessary sites
2-31 therefor, by purchase, lease or condemnation.
2-32 (b) The Tax Code governs the appraisal, assessment, and
2-33 collection of district taxes. The board of directors may provide
2-34 for the appointment of a tax assessor-collector for the district or
2-35 may contract for the assessment and collection of taxes as provided
2-36 by the Tax Code. [Not later than October 1st of each year, the
2-37 board of directors shall levy the tax on all taxable property
2-38 within the district which is subject to taxation and shall
2-39 immediately certify such tax rate to the tax assessor and collector
2-40 of Palo Pinto County, provided that the taxes initially levied can
2-41 be levied at any time and shall be levied for the entire year in
2-42 which such taxes are levied. The tax so levied shall be collected
2-43 on all property subject to the hospital district taxation by the
2-44 assessor and collector of tax for Palo Pinto County on the county
2-45 tax values, and in the same manner and under the same conditions as
2-46 county taxes. The assessor and collector of taxes shall charge and
2-47 deduct from payments to the hospital district the fees for
2-48 assessing and collecting the tax at the rate of not exceeding one
2-49 percent (1%) of the amounts collected as may be determined by the
2-50 board of directors but in no event in excess of Five Thousand
2-51 Dollars ($5,000) for any one (1) fiscal year. Such fees shall be
2-52 deposited in the county's general fund, and shall be reported as
2-53 fees of office of the tax assessor and collector. Interest and
2-54 penalties on taxes paid to the hospital district shall be the same
2-55 as for county taxes. The residue of tax collections, after
2-56 deduction of discounts and fees for assessing and collecting, shall
2-57 be deposited in the district depository; and such funds shall be
2-58 withdrawn only as provided herein. All other income of the
2-59 hospital district shall be deposited in like manner with the
2-60 district depository.]
2-61 SECTION 3. Section 6, Chapter 84, Acts of the 59th
2-62 Legislature, Regular Session, 1965, is amended to read as follows:
2-63 Sec. 6. (a) The board of directors shall have the power and
2-64 authority to issue and sell as the obligations of such hospital
2-65 district, and in the name and upon the faith and credit of such
2-66 hospital district, general obligation bonds authorized by an
2-67 election for the purchase, construction, acquisition, repair, or
2-68 renovation of buildings and improvements, [and] equipping the same
2-69 for hospital purposes, and acquisition of sites to be used for the
3-1 district's [for any or all of such] purposes. At the time of
3-2 issuance of any general obligation bonds,[; provided, that] a
3-3 sufficient tax shall be levied to create an interest and sinking
3-4 fund to pay the interest and principal as same matures, providing
3-5 said tax together with any other taxes levied for the [said]
3-6 district shall not exceed Seventy-Five Cents (75 ) on each $100
3-7 valuation in any one (1) year.
3-8 (b) District [Such] bonds shall be executed in the name of
3-9 the hospital district and on its behalf by the president of the
3-10 board of directors, and countersigned by the secretary of the board
3-11 of directors, and shall be subject to the same requirements in the
3-12 matter of approval thereof by the Attorney General of the State of
3-13 Texas and the registration thereof by the Comptroller of Public
3-14 Accounts of the State of Texas as are by law provided for such
3-15 approval and registration of bonds of counties of this state. Upon
3-16 the approval of such bonds by the Attorney General of Texas and
3-17 registration by the Comptroller the same shall be incontestable for
3-18 any cause.
3-19 (c) No general obligation bonds shall be issued by such
3-20 hospital district [(except refunding bonds)] until authorized by a
3-21 majority vote of the resident qualified voters [electors who own
3-22 taxable property within the district and have duly rendered the
3-23 same for taxation,] voting at an election called and held for such
3-24 purpose. Such election may be called by the board of directors on
3-25 its own motion, and shall be conducted in accordance with Chapter
3-26 1251, Government Code [the order calling said election shall
3-27 specify the date of the election, the place or places where the
3-28 election shall be held, the presiding officers thereof, the purpose
3-29 for which the bonds are to be issued, the amount thereof, the
3-30 maximum interest rate (not to exceed six percent (6%) per annum)
3-31 and the maximum maturity date of such bonds (not to exceed forty
3-32 (40) years from their date of issuance). Notice of election shall
3-33 be given by publishing a substantial copy of the order calling the
3-34 election in a newspaper of general circulation in such county once
3-35 a week for two (2) consecutive weeks prior to the date of election,
3-36 the date of the first publication being at least fourteen (14) full
3-37 days prior to the date set for the election. The cost of such
3-38 election shall be paid by the hospital district].
3-39 (d) [The bonds of the district may be made optional for
3-40 redemption prior to their maturity date at the discretion of the
3-41 board of directors.] The district may without an election issue
3-42 refunding bonds of the district to refund and pay off any validly
3-43 issued and outstanding bonds [heretofore or hereafter] issued or
3-44 assumed by the district. Refunding bonds shall be issued in
3-45 accordance with Chapter 1207, Government Code[, provided any such
3-46 refunding bonds shall bear interest at the same rate or at a lesser
3-47 rate than the bonds being refunded unless it be shown
3-48 mathematically that a savings will result in the total amount of
3-49 interest to be paid].
3-50 (e) The board of directors may issue and sell revenue bonds
3-51 in the name and on the faith and credit of the district to
3-52 purchase, construct, acquire, repair, renovate, or equip buildings
3-53 or improvements for district purposes. The bonds shall be payable
3-54 from and secured by a pledge of all or part of the revenues derived
3-55 from the operation of the district's hospital system. The bonds
3-56 may be additionally secured by a mortgage or deed of trust on all
3-57 or part of the district's property. The revenue bonds shall be
3-58 issued in the manner provided by Sections 264.042, 264.043,
3-59 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for
3-60 the issuance of revenue bonds by county hospital authorities.
3-61 SECTION 4. Chapter 84, Acts of the 59th Legislature, Regular
3-62 Session, 1965, is amended by adding Section 6B to read as follows:
3-63 Sec. 6B. (a) The board of directors may borrow money at a
3-64 rate not to exceed the maximum annual percentage rate allowed by
3-65 law for district obligations at the time of the loan.
3-66 (b) To secure a loan, the board of directors may pledge:
3-67 (1) revenues of the district that are not pledged to
3-68 pay the bonded indebtedness of the district;
3-69 (2) district taxes to be levied by the district during
4-1 the 12-month period following the date of the pledge that are not
4-2 pledged to pay the principal of or interest on district bonds; or
4-3 (3) district bonds that have been authorized but not
4-4 sold.
4-5 (c) A loan for which taxes or bonds are pledged shall mature
4-6 not later than the first anniversary of the date on which the loan
4-7 is made. A loan for which district revenues are pledged shall
4-8 mature not later than the fifth anniversary of the date on which
4-9 the loan is made.
4-10 SECTION 5. Section 7, Chapter 84, Acts of the 59th
4-11 Legislature, Regular Session, 1965, is amended to read as follows:
4-12 Sec. 7. (a) The board of directors shall manage, control,
4-13 and administer the hospitals and hospital system of the district.
4-14 The district through its board of directors may sue and be sued.
4-15 (b) The board of directors may appoint a qualified person to
4-16 be known as the administrator of the hospital district and may in
4-17 its discretion appoint an assistant to the administrator. The
4-18 administrator and assistant administrator, if any, serve at the
4-19 will of the board and receive compensation as may be fixed by the
4-20 board. The administrator shall, on assuming the administrator's
4-21 duties, execute a bond payable to the hospital district in an
4-22 amount of not less than $5,000 as determined by the board,
4-23 conditioned on the administrator performing the administrator's
4-24 required duties and containing other conditions the board requires.
4-25 The board may pay for the bond with district funds. The
4-26 administrator shall supervise all the work and activities of the
4-27 district and shall have general direction of the affairs of the
4-28 district, subject to any limitations the board may prescribe. The
4-29 board of directors may provide that the administrator shall have
4-30 the authority to employ or appoint to the staff doctors,
4-31 technicians, nurses, and other employees of every kind and
4-32 character as necessary for the efficient operation of the district.
4-33 (c) The board of directors may contract with any county or
4-34 incorporated municipality located outside its boundaries for the
4-35 care and treatment of the sick, diseased, or injured persons of the
4-36 county or municipality and may contract with this state or agencies
4-37 of the federal government for the treatment of sick, diseased, or
4-38 injured persons.
4-39 (d) The board of directors may purchase or lease property,
4-40 facilities, and equipment for the district to use in the hospital
4-41 system and may mortgage or pledge the property, facilities, or
4-42 equipment as security for the payment of the purchase price.
4-43 (e) The board of directors may enter into a contract or
4-44 contracts to provide administrative and other personnel for the
4-45 operation of the hospital facilities. The term of the contract may
4-46 not exceed 25 years. The board may transfer district hospital
4-47 facilities by lease to individuals, corporations, or other legal
4-48 entities and may sell or otherwise dispose of the district's
4-49 property, facilities, and equipment.
4-50 (f) The board of directors may provide retirement benefits
4-51 for the employees of the district by establishing or administering
4-52 a retirement program or electing to participate in any statewide
4-53 retirement system in which the district is eligible to participate.
4-54 (g) The board of directors may spend district funds, enter
4-55 into agreements, and take other necessary action to recruit
4-56 physicians and other persons to serve as medical staff members or
4-57 employees of the district, including:
4-58 (1) advertising and marketing;
4-59 (2) paying travel, recruitment, and relocation
4-60 expenses;
4-61 (3) providing a loan or scholarship to a physician or
4-62 a person currently enrolled in health care education courses at an
4-63 institution of higher education who contractually agrees to become
4-64 a district employee or medical staff member; or
4-65 (4) contracting with one or more full-time medical
4-66 students or other students in a health occupation, each of whom
4-67 shall be enrolled in and in good standing at an accredited medical
4-68 school, college, or university, to pay the student's tuition or
4-69 other expenses in consideration of the student's agreement to serve
5-1 as an employee or independent contractor for the district.
5-2 (h) The board of directors may institute a suit to enforce
5-3 the payment of taxes and to foreclose liens to secure the payment
5-4 of taxes due to the district.
5-5 (i) The board of directors may provide or contract for the
5-6 provision of educational programs or courses for employees and
5-7 medical staff of the district.
5-8 (j) The board of directors may institute a suit to collect
5-9 amounts owed to the district by patients who have not been
5-10 determined to be unable to pay under Section 13 of this Act.
5-11 (k) The district may sponsor and create a nonprofit
5-12 corporation under the Texas Non-Profit Corporation Act (Article
5-13 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
5-14 contribute funds to or solicit funds for the corporation. The
5-15 corporation may use funds, other than funds paid by the corporation
5-16 to the district, only to provide health care or other services the
5-17 district is authorized to provide under this Act. The board of
5-18 directors of the hospital district shall establish adequate
5-19 controls to ensure that the corporation uses its funds as required
5-20 by this subsection. The corporation may invest corporation funds
5-21 in any manner in which the district may invest funds, including
5-22 investing funds as authorized by Chapter 2256, Government Code [The
5-23 board of directors of such district shall have the power to
5-24 prescribe the method and manner of making purchases and
5-25 expenditures by and for such hospital district, and also shall
5-26 prescribe all accounting and control procedures; the method of
5-27 purchasing necessary supplies, materials and equipment; and shall
5-28 have the power to adopt a seal for such district; and may employ a
5-29 general manager, attorneys, bookkeepers, architects, and any other
5-30 employees deemed necessary for the efficient operation of the
5-31 hospital district. The board of directors may spend district funds
5-32 to recruit physicians for the hospital staff as necessary to meet
5-33 the medical needs of district residents and to provide scholarships
5-34 and student loans to educate district residents in fields relating
5-35 to health care].
5-36 (l) All books, records, accounts, notices and minutes and
5-37 all other matters of the district and the operation of its
5-38 facilities shall, except as herein provided, be maintained at the
5-39 office of the district and there be open to public inspection at
5-40 all reasonable hours.
5-41 (m) The board of directors is specifically empowered to
5-42 adopt rules and regulations governing the operation of such
5-43 district and its facilities which rules and regulations shall
5-44 supplement but shall not contravene any of the provisions of this
5-45 Act. Such rules and regulations may, upon approval of the board of
5-46 directors, be published in booklet or pamphlet form at the expense
5-47 of the district and may be made available to any taxpayer upon
5-48 request.
5-49 SECTION 6. Section 8, Chapter 84, Acts of the 59th
5-50 Legislature, Regular Session, 1965, is amended to read as follows:
5-51 Sec. 8. (a) The district shall be operated on the basis of
5-52 a fiscal year to be established by the board of directors. The
5-53 fiscal year may not be changed when revenue bonds are outstanding
5-54 or more than one time in a 24-month period [fiscal year of the
5-55 hospital district authorized to be established by the provisions
5-56 hereof shall commence on October 1st of each year and end on the
5-57 30th day of September of the following year]. The board [district
5-58 directors] shall cause an annual independent audit to be made of
5-59 the books and records of the district. The audit and the records
5-60 of the district are open to inspection[, such audit to be made
5-61 covering such fiscal year, and the same shall be filed with the
5-62 Comptroller of Public Accounts of the State of Texas and] at the
5-63 office of the district [not later than December 31st of each year].
5-64 (b) The administrator shall prepare an annual budget for
5-65 approval by the board of directors. The board [of directors shall
5-66 each year cause a budget to be prepared showing the proposed
5-67 expenditures and disbursements and the estimated receipts and
5-68 collections for the following fiscal year and] shall hold a public
5-69 hearing on the proposed budget after publication of a notice of
6-1 hearing in a newspaper of general circulation in the district
6-2 [county] at least once not less than ten (10) days prior to the
6-3 date set for the hearing. Any person who is a resident [taxpayer]
6-4 of the district shall have the right to appear at the time and
6-5 place designated in the notice and be heard with reference to any
6-6 item shown in the proposed budget. The annual budget is effective
6-7 only after adoption by the board of directors. After adoption, the
6-8 annual budget may be amended on approval of the board of directors.
6-9 [The proposed budget shall also show the amount of taxes required
6-10 to be levied and collected during such fiscal year and upon final
6-11 approval of the budget, the board of directors shall levy such tax
6-12 as may be required and certify the tax rate for such year to the
6-13 county tax assessor and collector as provided in Section 5 hereof,
6-14 and it shall be the duty of the said tax assessor and collector to
6-15 assess and collect such tax.]
6-16 SECTION 7. Section 9, Chapter 84, Acts of the 59th
6-17 Legislature, Regular Session, 1965, is amended to read as follows:
6-18 Sec. 9. The district shall have the right and power of
6-19 eminent domain for the purpose of acquiring by condemnation any and
6-20 all property of any kind or character, real, personal or mixed, or
6-21 any interest therein, including outright ownership of such property
6-22 in fee simple absolute, within the boundaries of the said district,
6-23 necessary or convenient to the exercise of the rights, power,
6-24 privileges and functions conferred upon it by this Act, in the
6-25 manner provided by General Law with respect to condemnation;
6-26 provided that the said district shall not be required to make
6-27 deposits in the registry of the trial court of the sum required by
6-28 Section 21.021, Property Code [Paragraph No. 2 in Article 3268,
6-29 Vernon's Annotated Civil Statutes, 1925], or to make the bond
6-30 required therein. In condemnation proceedings being prosecuted by
6-31 the said district, the district shall not be required to pay in
6-32 advance or to give bond or other security for costs in the trial
6-33 court, nor to give any bond otherwise required for the issuance of
6-34 a temporary restraining order or a temporary injunction relating to
6-35 a condemnation proceeding, nor to give bond for costs or for
6-36 supersedeas on any appeal or writ of error proceeding to any Court
6-37 of Civil Appeals, or to the Supreme Court.
6-38 SECTION 8. Section 10, Chapter 84, Acts of the 59th
6-39 Legislature, Regular Session, 1965, is amended to read as follows:
6-40 Sec. 10. Within thirty (30) days after appointment and
6-41 qualification of the board of directors of the hospital district,
6-42 the said directors shall by resolution designate a bank [within the
6-43 county in which the district is located] as the district's
6-44 depository or treasurer and all funds of the district shall be
6-45 secured in the manner now provided for the security of county
6-46 funds. [The depository shall serve for a period of two (2) years
6-47 until a successor has been named.]
6-48 SECTION 9. Section 11, Chapter 84, Acts of the 59th
6-49 Legislature, Regular Session, 1965, is amended to read as follows:
6-50 Sec. 11. The district established or maintained under the
6-51 provisions of this Act shall be subject to inspection by any duly
6-52 authorized representative of the [State Board of Health or any]
6-53 state [board of charities (or public welfare) that may hereafter be
6-54 created], and the officers and employees of the district shall
6-55 admit such representatives into all hospital district facilities
6-56 and give them access on demand to all records, reports, books,
6-57 papers and accounts pertaining to the hospital district.
6-58 SECTION 10. Section 13, Chapter 84, Acts of the 59th
6-59 Legislature, Regular Session, 1965, is amended to read as follows:
6-60 Sec. 13. Whenever a patient residing in the hospital
6-61 district has been admitted to the facilities of the hospital
6-62 district, the administrator may [directors shall] cause inquiry to
6-63 be made as to the patient's [his] circumstances, and of the
6-64 relatives of such patient legally liable for the patient's [his]
6-65 support. If the administrator finds [they find] that such patient
6-66 or said relatives are liable to pay for the patient's [his] care
6-67 and treatment in whole or in part, an order shall be made directing
6-68 such patient, or said relatives, to pay to the [treasurer of the]
6-69 hospital district for the support of such patient a specified sum
7-1 per week, in proportion to their financial ability[, but such sum
7-2 shall not exceed the actual per capita cost of maintenance]. The
7-3 district shall have power and authority to collect such sum from
7-4 the estate of the patient, or the patient's [his] relatives legally
7-5 liable for the patient's [his] support, in the manner provided by
7-6 law for the collection of expenses of the last illness of a
7-7 deceased person. If the administrator [agent designated by the
7-8 district to handle such affairs] finds that such patient or said
7-9 relatives are not able to pay, either in whole or in part, for the
7-10 patient's [his] care and treatment in such hospital, the same shall
7-11 become a charge upon the hospital district. Should there be a
7-12 dispute as to the ability to pay, or doubt in the mind of the
7-13 administrator [person designated as aforesaid], the board of
7-14 [district's] directors shall hear and determine same, after calling
7-15 witnesses, and shall make such order as may be proper[, from which
7-16 appeal shall lie to the district court by either party to the
7-17 dispute].
7-18 SECTION 11. Chapter 84, Acts of the 59th Legislature,
7-19 Regular Session, 1965, is amended by adding Section 16A to read as
7-20 follows:
7-21 Sec. 16A. (a) The district may be dissolved only if the
7-22 dissolution is approved by a majority of the qualified voters of
7-23 the district voting in an election called and held for that
7-24 purpose.
7-25 (b) The board of directors may order an election on the
7-26 question of dissolving the district and disposing of the district's
7-27 assets and obligations. The board shall order an election if the
7-28 board receives a petition requesting an election that is signed by
7-29 a number of registered voters of the district equal to at least 15
7-30 percent of the registered voters in the district.
7-31 (c) The election shall be held not later than the 60th day
7-32 after the date the election is ordered. Section 41.001(a),
7-33 Election Code, does not apply to an election ordered under this
7-34 section. The order calling the election shall state:
7-35 (1) the nature of the election, including the
7-36 proposition that is to appear on the ballot;
7-37 (2) the date of the election;
7-38 (3) the hours during which the polls will be open; and
7-39 (4) the location of the polling places.
7-40 (d) The board of directors shall give notice of the election
7-41 by publishing a substantial copy of the election order in a
7-42 newspaper with general circulation in the district once a week for
7-43 two consecutive weeks. The first publication must appear not less
7-44 than 35 days before the date set for the election. The ballot for
7-45 the election shall be printed to permit voting for or against the
7-46 proposition: "The dissolution of the Palo Pinto County Hospital
7-47 District."
7-48 (e) If a majority of the votes in the election favor
7-49 dissolution, the board of directors shall find that the district is
7-50 dissolved. If a majority of the votes in the election do not favor
7-51 dissolution, the board shall continue to administer the district,
7-52 and another election on the question of dissolution may not be held
7-53 before the first anniversary of the most recent election to
7-54 dissolve the district.
7-55 (f) If a majority of the votes in the election favor
7-56 dissolution, the board of directors shall:
7-57 (1) transfer the land, buildings, improvements,
7-58 equipment, and other assets that belong to the district to a county
7-59 or another governmental entity in the county in which the district
7-60 is located;
7-61 (2) sell the assets and liabilities to another person
7-62 or entity; or
7-63 (3) administer the property, assets, and debts until
7-64 all funds have been disposed of and all district debts have been
7-65 paid or settled.
7-66 (g) If the district transfers the land, buildings,
7-67 improvements, equipment, and other assets to a county or other
7-68 governmental entity, the county or entity assumes all debts and
7-69 obligations of the district at the time of the transfer, at which
8-1 time the district is dissolved. If the district does not transfer
8-2 the land, buildings, improvements, equipment, and other assets to a
8-3 county or other governmental entity, or sell those assets and the
8-4 liabilities to another person, the board of directors shall
8-5 administer the property, assets, and debts of the district until
8-6 all funds have been disposed of and all district debts have been
8-7 paid or settled, at which time the district is dissolved.
8-8 (h) After the board of directors finds that the district is
8-9 dissolved, the board shall:
8-10 (1) determine the debt owed by the district; and
8-11 (2) impose on the property included in the district's
8-12 tax rolls a tax that is in proportion of the debt to the property
8-13 value.
8-14 (i) When all outstanding debts and obligations of the
8-15 district are paid, the board of directors shall order the secretary
8-16 to return the pro rata share of all unused tax money to each
8-17 district taxpayer.
8-18 (j) A taxpayer may request that the taxpayer's share of
8-19 surplus tax money be credited to the taxpayer's county taxes. If a
8-20 taxpayer requests the credit, the board of directors shall direct
8-21 the secretary to transmit the funds to the county tax
8-22 assessor-collector.
8-23 (k) After the district has paid all its debts and has
8-24 disposed of all its assets and funds as prescribed by this section,
8-25 the board of directors shall file a written report with the
8-26 Commissioners Court of Palo Pinto County setting forth a summary of
8-27 the board's actions in dissolving the district.
8-28 (l) Not later than the 10th day after the date it receives
8-29 the report and determines that the requirements of this section
8-30 have been fulfilled, the Commissioners Court of Palo Pinto County
8-31 shall enter an order dissolving the district and releasing the
8-32 board of directors of the district from any further duty or
8-33 obligation.
8-34 (m) The district may provide for the sale or transfer of the
8-35 district's assets and liabilities to another person or entity and
8-36 the district's subsequent dissolution. The dissolution of the
8-37 district and the sale or transfer of the district's assets and
8-38 liabilities to another person or entity may not contravene a trust
8-39 indenture or bond resolution relating to the outstanding bonds of
8-40 the district. The dissolution and sale or transfer does not
8-41 diminish or impair the rights of a holder of an outstanding bond,
8-42 warrant, or other obligation of the district.
8-43 (n) The sale or transfer of the district's assets and
8-44 liabilities must satisfy the debt and bond obligations of the
8-45 district in a manner that protects the interests of the residents
8-46 of the district, including the residents' collective property
8-47 rights in the district's assets. A grant from federal funds is an
8-48 obligation to be repaid in satisfaction. The district may not
8-49 transfer or dispose of the district's assets except for due
8-50 compensation unless the transfer is made to another governmental
8-51 entity that serves the district and the transferred assets are to
8-52 be used for the benefit of the residents of the district.
8-53 SECTION 12. This Act takes effect September 1, 2001.
8-54 * * * * *