77R11208 YDB-D
By Fraser S.B. No. 1158
Substitute the following for S.B. No. 1158:
By Ramsay C.S.S.B. No. 1158
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation of the Mitchell County Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 4, Chapter 466, Acts of the 60th
1-5 Legislature, Regular Session, 1967, is amended to read as follows:
1-6 Sec. 4. (a) Upon the effective date of this Act, the
1-7 following named seven persons shall be and constitute the temporary
1-8 or provisional directors of the said district: (1) Mrs. Dee
1-9 Bassham, (2) Murrell Blassingame, (3) Rex McKinney, (4) T. C.
1-10 Moore, (5) J. W. Randle, (6) Bob Reily, and (7) Wayne Shawn; and
1-11 each of said directors shall subscribe to the Constitutional oath
1-12 of office within 60 days of the effective date of this Act. Should
1-13 any of the named directors refuse to act or for any reason fail to
1-14 qualify as herein required, the County Judge of Mitchell County
1-15 shall fill such vacancy. The terms of office of the first, third,
1-16 fifth and seventh named directors shall expire on the first
1-17 Saturday in April of the second year following the election for the
1-18 creation of the district, and the terms of the second, fourth, and
1-19 sixth named directors shall expire on the first Saturday in April
1-20 of the year following the election for the creation of the
1-21 district. Successors shall be elected by a vote of the electors of
1-22 the entire district for two-year terms.
1-23 (b) The directors named herein and their successors in
1-24 office shall hold office as provisional or temporary directors
2-1 until such time as the creation of the district has been approved
2-2 at an election as herein provided. At such time as the creation of
2-3 the district is so approved and the returns of the election
2-4 officially canvassed, the persons acting as provisional or
2-5 temporary directors shall become permanent directors whose terms
2-6 shall expire as hereinabove provided. Each permanent director and
2-7 his successor in office shall qualify by executing the
2-8 Constitutional oath of office, and such permanent directors, acting
2-9 as a board, shall have and exercise the powers hereafter conferred
2-10 on such board.
2-11 (c) To be qualified for election to the board of directors,
2-12 a person must be a qualified voter and a resident of the district.
2-13 An employee of the district may not serve as a director. A
2-14 director is not entitled to compensation but is entitled to receive
2-15 reimbursement for actual expenses incurred in attending to the
2-16 district's business, provided the expenses are reported in the
2-17 district's minute book or other district records and approved by
2-18 the remainder of the board of directors [No person shall be a
2-19 member of the board of directors of said hospital district unless
2-20 he is a resident thereof and owns land subject to taxation therein
2-21 and unless at the time of such election or appointment he shall be
2-22 more than 21 years of age].
2-23 (d) The board of directors shall organize by electing one of
2-24 their number as president and one of their number as vice
2-25 president. The board of directors shall also elect one person who
2-26 is not required to be a director to serve as secretary and
2-27 treasurer. Each officer serves a one-year term [A secretary, who
3-1 need not be a director, shall also be elected by said directors].
3-2 Any four members of the board of directors shall constitute a
3-3 quorum and a concurrence of four shall be sufficient in all matters
3-4 pertaining to the business of the district. All vacancies in the
3-5 office of director shall be filled for the unexpired term by a
3-6 majority vote [appointment] of the remainder of the board of
3-7 directors, and the person elected to fill the vacancy shall hold
3-8 office for the remainder of the unexpired term. In the event the
3-9 number of directors shall be reduced to less than four for any
3-10 reason, the remaining directors shall immediately call a special
3-11 election to fill said vacancies, and upon failure to do so, a
3-12 district court, upon application of any qualified voter [elector]
3-13 or taxpayer of the district, may issue a mandate requiring that
3-14 such election be ordered by the remaining directors.
3-15 (e) The board of directors shall order a [A] regular
3-16 election of directors to [shall] be held on the first Saturday in
3-17 May [April] of each year. The board of directors shall issue the
3-18 order at least 45 days before the date of the election. The order
3-19 must state the time, place, and purpose of the election. The board
3-20 of directors shall appoint the presiding judge, who shall appoint
3-21 election clerks as required. Notice [and notice] of such election
3-22 shall be published in a newspaper of general circulation in the
3-23 district one time at least 10 days prior to the date of election.
3-24 Any person desiring that person's [his] name to be printed on the
3-25 ballot as a candidate for director shall file an application [a
3-26 petition, signed by not less than 25 qualified electors, asking
3-27 that such name be printed on the ballot,] with the secretary of the
4-1 board of directors of the district[. Such petition shall be so
4-2 filed] at least 31 [25] days prior to the date of election.
4-3 SECTION 2. Section 5, Chapter 466, Acts of the 60th
4-4 Legislature, Regular Session, 1967, is amended to read as follows:
4-5 Sec. 5. (a) The board of directors shall manage, control
4-6 and administer the hospitals and hospital system of the district.
4-7 The district through its board of directors shall have the power
4-8 and authority to sue and be sued and to promulgate rules and
4-9 regulations for the operation of the district. The board of
4-10 directors shall appoint a qualified person to be known as the
4-11 administrator [or manager] of the hospital district and may in its
4-12 discretion appoint an assistant to the administrator [or manager].
4-13 Such administrator [or manager] and assistant administrator [or
4-14 assistant manager], if any, shall serve at the will of the board
4-15 and shall receive such compensation as may be fixed by the board.
4-16 The board may require the [The] administrator [or manager shall],
4-17 upon assuming the administrator's [his] duties, to execute a bond
4-18 payable to the hospital district in an amount to be set by the
4-19 board of directors, in no event less than $5,000, conditioned that
4-20 the administrator [he] shall perform the duties required [of him],
4-21 and containing such other conditions as the board may require. The
4-22 board may pay for the bond with district funds. The administrator
4-23 [or manager] shall supervise all the work and activities of the
4-24 district and shall have general direction of the affairs of the
4-25 district, subject to such limitations as may be prescribed by the
4-26 board. The board of directors shall have the authority to employ
4-27 or appoint to the staff such doctors, technicians, nurses and other
5-1 employees of every kind and character as may be deemed necessary
5-2 for the efficient operation of the district. The board may provide
5-3 that the administrator [or manager] shall have the authority to
5-4 employ technicians, nurses and employees of the district.
5-5 (b) The [Such] board of directors shall be authorized to
5-6 contract with any county or incorporated municipality located
5-7 outside its boundaries for the care and treatment of the sick,
5-8 diseased, or injured persons of any such county or municipality,
5-9 and shall have the authority to contract with the State of Texas or
5-10 agencies of the federal government for the treatment of sick,
5-11 diseased, or injured persons.
5-12 (c) The board of directors may provide retirement benefits
5-13 for the employees of the district by establishing or administering
5-14 a retirement program or electing to participate in a statewide
5-15 retirement system.
5-16 (d) The board of directors may spend district funds to
5-17 recruit physicians, nurses, and other trained medical personnel.
5-18 (e) The board of directors may institute a suit to enforce
5-19 the payment of taxes and to foreclose liens to secure the payment
5-20 of taxes due to the district.
5-21 (f) The board of directors may provide or contract to
5-22 provide educational programs or courses for employees and medical
5-23 staff of the district.
5-24 (g) The board of directors may institute a suit to collect
5-25 amounts owed to the district by patients who are not able to pay
5-26 under Section 17 of this Act.
5-27 (h) The district may sponsor and create a nonprofit
6-1 corporation under the Texas Non-Profit Corporation Act (Article
6-2 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
6-3 contribute funds to or solicit funds for the corporation. The
6-4 corporation may use district funds only to provide health care or
6-5 other services the district is authorized to provide under this
6-6 Act. The board of directors shall establish adequate controls to
6-7 ensure the corporation uses funds as required by this subsection.
6-8 The corporation may invest corporation funds in any manner in which
6-9 the district may invest funds, including investing funds as
6-10 authorized by Chapter 2256, Government Code.
6-11 SECTION 3. Section 6, Chapter 466, Acts of the 60th
6-12 Legislature, Regular Session, 1967, is amended to read as follows:
6-13 Sec. 6. The district operates [shall be operated] on the
6-14 [basis of a] fiscal year established by the board of directors.
6-15 The fiscal year may not be changed if revenue bonds of the district
6-16 are outstanding or more than once in a 24-month period. The board
6-17 of directors [commencing on October 1 of each year and ending on
6-18 September 30 of the following year, and it] shall cause an annual
6-19 audit to be made of the financial condition of the [said] district,
6-20 which together with other records of the district shall be open to
6-21 inspection at the principal office of the district. The
6-22 administrator [or manager] shall prepare an annual budget for
6-23 approval by the board of directors. A public hearing on the annual
6-24 budget shall be held by the board of directors after notice of such
6-25 hearing has been published in a newspaper of general circulation in
6-26 the district one time at least 10 days before the date set for the
6-27 hearing [therefor]. No expenditure may be made for any expense not
7-1 included in the annual budget or an amendment thereto. The annual
7-2 budget may be amended from time to time as the circumstances may
7-3 require, but the annual budget, and all amendments thereto, shall
7-4 be approved by the board of directors. As soon as practicable
7-5 after the close of each fiscal year, the administrator [or manager]
7-6 shall prepare for the board a full sworn statement of all moneys
7-7 belonging to the district and a full account of the disbursements
7-8 of same.
7-9 SECTION 4. Chapter 466, Acts of the 60th Legislature,
7-10 Regular Session, 1967, is amended by amending Section 7 and adding
7-11 Sections 7A, 7B, and 7C to read as follows:
7-12 Sec. 7. (a) The board of directors may issue and sell bonds
7-13 authorized by an election in the name and on the faith and credit
7-14 of the hospital district to purchase, construct, acquire, repair,
7-15 or renovate buildings or improvements, equip buildings or
7-16 improvements for hospital purposes, or acquire and operate a mobile
7-17 emergency medical or air ambulance service.
7-18 (b) At the time the bonds are issued by the district, the
7-19 board of directors shall levy a tax. The tax must be sufficient to
7-20 create an interest and sinking fund to pay the principal of and
7-21 interest on the bonds as they mature. In any year, the tax
7-22 together with any other tax the district levies may not exceed the
7-23 limit approved by the voters at the election authorizing the levy
7-24 of taxes.
7-25 (c) The district may issue general obligation bonds only if
7-26 the bonds are authorized by a majority of the qualified voters of
7-27 the district voting at an election called and held for that
8-1 purpose. The board of directors may order a bond election.
8-2 (d) The bond election shall be conducted as provided by
8-3 Chapter 1251, Government Code.
8-4 Sec. 7A. (a) The board of directors may issue revenue bonds
8-5 to purchase, construct, acquire, repair, equip, or renovate
8-6 buildings or improvements for hospital purposes, acquire sites to
8-7 be used for hospital purposes, or acquire and operate a mobile
8-8 emergency medical or air ambulance service to assist the district
8-9 in carrying out its hospital purposes.
8-10 (b) The bonds must be payable from and secured by a pledge
8-11 of all or part of the revenues derived from the operation of the
8-12 district's hospital system. The bonds may be additionally secured
8-13 by a mortgage or deed of trust lien on all or part of district
8-14 property.
8-15 (c) The bonds must be issued in the manner provided by
8-16 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
8-17 Health and Safety Code, for issuance of revenue bonds by county
8-18 hospital authorities [The board of directors shall have the power
8-19 and authority to issue and sell its bonds in the name and upon the
8-20 faith and credit of such hospital district for the purchase,
8-21 construction, acquisition, repair, or renovation of buildings and
8-22 improvements and equipping the same for hospital purposes, and for
8-23 any or all of such purposes. At the time of the issuance of any
8-24 bonds by the district a tax shall be levied by the board sufficient
8-25 to create an interest and sinking fund to pay the interest on and
8-26 principal of said bonds as same mature, providing such tax together
8-27 with any other taxes levied for said district shall not exceed 75
9-1 cents on each $100 valuation of taxable property in any one year.
9-2 No bonds shall be issued by such hospital district except refunding
9-3 bonds until authorized by a majority of the qualified electors of
9-4 the district who own taxable property therein and who have duly
9-5 rendered the same for taxation voting at an election called for
9-6 such purpose. The order for bond election shall specify the date
9-7 of the election, the amount of bonds to be authorized, the maximum
9-8 maturity thereof, the maximum rate of interest they are to bear,
9-9 the place or places where the election shall be held, the presiding
9-10 judge and alternate judge for each voting place and provide for
9-11 clerks as in county elections. Notice of any bond election (except
9-12 one held under the provisions of Section 8, in which instance
9-13 notice shall be given as provided in Section 3) shall be given as
9-14 provided in Article 704, Revised Civil Statutes of Texas, 1925, as
9-15 amended, and shall be conducted in accordance with the general laws
9-16 of Texas pertaining to general elections, except as modified by the
9-17 provisions of this Act].
9-18 Sec. 7B. Refunding bonds of the district may be issued for
9-19 the purpose of refunding and paying off any outstanding
9-20 indebtedness it has issued or assumed. The refunding bonds shall
9-21 be issued in accordance with Chapter 1207, Government Code [Such
9-22 refunding bonds may be sold and the proceeds thereof applied to the
9-23 payment of outstanding indebtedness, or may be exchanged in whole
9-24 or in part for not less than a like principal amount of such
9-25 outstanding indebtedness provided that, if refunding bonds are to
9-26 be exchanged for a like amount of said outstanding indebtedness,
9-27 such refunding bonds shall bear interest at the same or lower rate
10-1 than borne by the debt refunded, unless it is shown mathematically
10-2 that a saving will result in the total amount of interest to be
10-3 paid on said refunding bonds, and provided further that if such
10-4 refunding bonds are to be sold and the proceeds thereof applied to
10-5 the payment of any such outstanding indebtedness, same shall be
10-6 issued and payments made in the manner specified by Article 717k,
10-7 Vernon's Texas Civil Statutes].
10-8 Sec. 7C. Bonds of the district shall bear interest at a rate
10-9 not to exceed the rate provided by Chapter 1204, Government Code
10-10 [six per centum per annum], shall mature within 40 years of their
10-11 date, shall be executed in the name of the hospital district and in
10-12 its behalf by the president of the board and countersigned by the
10-13 secretary in the manner provided by Chapter 618, Government Code
10-14 [Article 717j-1, Vernon's Texas Civil Statutes], and shall be
10-15 subject to the same requirements in the matter of approval by the
10-16 Attorney General of Texas and registration by the Comptroller of
10-17 Public Accounts of the State of Texas as are by law provided for
10-18 approval and registration of bonds issued by counties. Upon the
10-19 approval of such bonds by the Attorney General and registration by
10-20 the Comptroller, the same shall be incontestable for any cause.
10-21 SECTION 5. Section 9, Chapter 466, Acts of the 60th
10-22 Legislature, Regular Session, 1967, is amended to read as follows:
10-23 Sec. 9. (a) The board of directors is hereby given complete
10-24 discretion as to the type of buildings (both as to number and
10-25 location) required to establish and maintain an adequate hospital
10-26 system. Nothing herein shall prohibit the establishing and
10-27 equipping of a clinic as a part of the hospital system.
11-1 (b) The board of directors may purchase or lease property,
11-2 facilities, and equipment for the district to use in the hospital
11-3 system and may mortgage or pledge the property, facilities, or
11-4 equipment as security for the payment of the purchase price.
11-5 (c) The board of directors may enter into a contract or
11-6 contracts to provide administrative and other personnel for the
11-7 operation of the hospital facilities, but in no event may a
11-8 contract be for a period that exceeds 25 years from the date the
11-9 contract is entered. The board may transfer district hospital
11-10 facilities by lease to individuals, corporations, or other legal
11-11 entities and may sell or otherwise dispose of the district's
11-12 property, facilities, and equipment [The district, through its
11-13 board of directors, is further authorized to enter into an
11-14 operating or management contract with regard to its facilities or a
11-15 part thereof, or may lease all or part of its buildings and
11-16 facilities upon terms and conditions considered to be to the best
11-17 interest of its inhabitants, provided that in no event shall any
11-18 lease be for a period in excess of 25 years from the date entered.
11-19 The district shall be empowered to sell or otherwise dispose of any
11-20 property (real or personal) or equipment of any nature upon terms
11-21 and conditions found by the board to be in the best interest of its
11-22 inhabitants].
11-23 SECTION 6. Section 10, Chapter 466, Acts of the 60th
11-24 Legislature, Regular Session, 1967, is amended to read as follows:
11-25 Sec. 10. The board of directors of such district shall have
11-26 the power to prescribe the method and manner of making purchases
11-27 and expenditures by and for such hospital district, and also shall
12-1 be authorized to prescribe all accounting and control procedures.
12-2 The board may contract for construction only after competitive
12-3 bidding as provided by Subchapter B, Chapter 271, Local Government
12-4 Code [All purchases involving the expenditure of more than $2,000
12-5 may be made only after advertising in the manner provided by
12-6 Article 2368a, Vernon's Texas Civil Statutes, as amended]. The
12-7 district may acquire equipment for use in its hospital system and
12-8 mortgage or pledge the property so acquired as security for the
12-9 payment of the purchase price, but any such contract shall provide
12-10 for the entire obligation of the district to be retired within five
12-11 years from the date of the contract. Except as permitted in the
12-12 preceding sentence and as permitted by Sections 7, 7A, 7B, 7C, and
12-13 8, the district may incur no obligation payable from any revenues
12-14 of the district (taxes or otherwise) except those on hand or to be
12-15 on hand within the then current fiscal year of the district.
12-16 SECTION 7. Section 11, Chapter 466, Acts of the 60th
12-17 Legislature, Regular Session, 1967, is amended to read as follows:
12-18 Sec. 11. The board of directors of the district shall name
12-19 one or more banks [within its boundaries] to serve as depository
12-20 for the funds of the district. All such funds shall, as derived
12-21 and collected, be immediately deposited with such depository bank
12-22 or banks, except that sufficient funds shall be remitted to the
12-23 place or places designated as agent for the payment of principal of
12-24 and interest on the outstanding bonds of the district or other
12-25 obligations assumed by it and in time that such money may be
12-26 received by said agent or agents for payment on or prior to the
12-27 date of maturity of such principal and interest so to be paid. To
13-1 the extent that funds in the depository bank or banks are not
13-2 insured by the Federal Deposit Insurance Corporation, they shall be
13-3 secured in the manner provided by law for security of county funds.
13-4 Membership on the board of directors of an officer or director of a
13-5 bank shall not disqualify such bank from being designated as
13-6 depository.
13-7 SECTION 8. Section 14, Chapter 466, Acts of the 60th
13-8 Legislature, Regular Session, 1967, is amended to read as follows:
13-9 Sec. 14. The district shall have the right and power of
13-10 eminent domain for the purpose of acquiring by condemnation any and
13-11 all property of any kind and character in fee simple, or any lesser
13-12 interest therein, within the boundaries of the district necessary
13-13 or convenient to the powers, rights and privileges conferred by
13-14 this Act, in the manner provided by the general law with respect to
13-15 condemnation by counties, provided that the district shall not be
13-16 required to make deposits in the registry of the trial court of the
13-17 sum required by Section 21.021(a), Property Code [paragraph 2 of
13-18 Article 3268, Revised Civil Statutes of Texas, 1925, as amended],
13-19 or to make bond as therein provided. In condemnation proceedings
13-20 being prosecuted by the district, the district shall not be
13-21 required to pay in advance or give bond or other security for costs
13-22 in the trial court, nor to give any bond otherwise required for the
13-23 issuance of a temporary restraining order or a temporary injunction
13-24 nor to give bond for costs or for supersedeas on any appeal or writ
13-25 of error.
13-26 SECTION 9. Section 15, Chapter 466, Acts of the 60th
13-27 Legislature, Regular Session, 1967, is amended to read as follows:
14-1 Sec. 15. The board of directors may annually impose property
14-2 taxes in an amount not to exceed the limit approved by the voters
14-3 at an election authorizing the levy of taxes. The tax rate for all
14-4 district purposes may not exceed 75 cents on each $100 valuation of
14-5 all taxable property in the district. The taxes may be used to pay
14-6 for indebtedness issued or assumed by the district and for the
14-7 maintenance and operating expenses of the district. The district
14-8 may not impose taxes to pay the principal of or interest on revenue
14-9 bonds. The Tax Code governs the appraisal, assessment, and
14-10 collection of district taxes. The board may provide for the
14-11 appointment of a tax assessor-collector for the district or may
14-12 contract for the assessment and collection of taxes as provided by
14-13 the Tax Code [The district taxes shall be assessed and collected on
14-14 county tax values in the same manner as provided by law with
14-15 relation to county taxes upon all taxable property within said
14-16 district subject to hospital district taxation. The tax
14-17 assessor-collector of the county in which said district is situated
14-18 shall be charged and required to accomplish the assessment and
14-19 collection of all taxes levied by and on behalf of the district.
14-20 The assessor-collector of taxes shall charge and deduct from
14-21 payments to the hospital district an amount as fees for assessing
14-22 and collecting the taxes at a rate of one percent of the taxes
14-23 assessed and one percent of the taxes collected, but in no event
14-24 shall the amount paid exceed $5,000 in any one calendar year. Such
14-25 fees shall be deposited in the officers' salary fund of the county
14-26 and reported as fees of office of the county tax
14-27 assessor-collector. Interest and penalties on taxes paid to the
15-1 hospital district shall be the same as in the case of county taxes.
15-2 Discounts shall be the same as allowed by the county. The residue
15-3 of tax collections after deduction of discounts and fees for
15-4 assessing and collecting shall be deposited in the district's
15-5 depository. The board of directors shall have the authority to
15-6 levy the aforesaid tax for the entire year in which said district
15-7 is established as the result of the election herein provided. The
15-8 bond of the county tax assessor-collector shall stand as security
15-9 for the proper performance of his duties as assessor-collector of
15-10 the district, or, if in the judgment of the district board of
15-11 directors it is necessary, additional bond payable to the district
15-12 may be required. In all matters pertaining to the assessment,
15-13 collection and enforcement of taxes for the district, the county
15-14 tax assessor-collector shall be authorized to act in all respects
15-15 according to the laws of the State of Texas relating to state and
15-16 county taxes].
15-17 SECTION 10. Section 17, Chapter 466, Acts of the 60th
15-18 Legislature, Regular Session, 1967, is amended to read as follows:
15-19 Sec. 17. Whenever a patient residing within the district has
15-20 been admitted to the facilities thereof, the administrator [or
15-21 manager] may cause inquiry to be made as to the person's financial
15-22 [his] circumstances and the financial circumstances [those] of a
15-23 relative [the relatives] of the [such] patient who is legally
15-24 liable for the patient's [his] support. On the administrator's
15-25 finding [If he finds] that the [such] patient or a relative who is
15-26 legally responsible for the patient's support is [said relatives
15-27 are] able to pay for all or any part of the patient's [his] care
16-1 and treatment provided to the patient by the district [in whole or
16-2 in part], an order shall be made directing the [such] patient or
16-3 the relative [said relatives] to pay to the hospital district for
16-4 the care and support of such patient a specified sum per week in
16-5 proportion to [their] financial ability. The administrator [or
16-6 manager] shall have power and authority to collect such sums from
16-7 the estate of the patient or the relative who is [his relatives]
16-8 legally responsible [liable] for the patient's [his] support in the
16-9 manner provided by law for collection of expenses in the last
16-10 illness of a deceased person. If the administrator [or manager]
16-11 finds that the [such] patient or the relative is [said relatives
16-12 are] not able to pay either in whole or in part for the patient's
16-13 [his] care and treatment in the [such] hospital, same shall become
16-14 a charge upon the hospital district as to the amount of the
16-15 inability to pay. Should there be any dispute as to the ability to
16-16 pay or doubt in the mind of the administrator concerning ability to
16-17 pay [or manager], the board of directors shall hear and determine
16-18 same after calling witnesses, and shall make such order or orders
16-19 as may be proper. Appeals from a final order of the board shall
16-20 lie to the district court. [The substantial evidence rule shall
16-21 apply.]
16-22 SECTION 11. Chapter 466, Acts of the 60th Legislature,
16-23 Regular Session, 1967, is amended by adding Sections 20A, 20B, and
16-24 20C to read as follows:
16-25 Sec. 20A. (a) If the board of directors determines that
16-26 funds are not available to meet lawfully authorized obligations of
16-27 the district and that an emergency exists, the board of directors
17-1 may borrow money at a rate not to exceed the maximum annual
17-2 percentage rate allowed by law for district obligations at the time
17-3 the loan is made.
17-4 (b) To secure a loan, the board of directors may pledge:
17-5 (1) revenues of the district that are not pledged to
17-6 pay bonded indebtedness of the district;
17-7 (2) tax revenue to be collected by the district in the
17-8 next 12-month period that has not been pledged to pay the principal
17-9 of or interest on district bonds; or
17-10 (3) district bonds that have been authorized but have
17-11 not been sold.
17-12 (c) A loan for which tax revenue or bonds are pledged must
17-13 mature not later than the first anniversary of the date on which
17-14 the loan was made. A loan for which other district revenues are
17-15 pledged must mature not later than the fifth anniversary of the
17-16 date on which the loan was made.
17-17 (d) The board of directors may not spend loan proceeds under
17-18 this section for any purpose other than the purpose for which the
17-19 board declared an emergency existed. If tax revenues or bonds are
17-20 pledged to pay the loan, the board of directors may not use the
17-21 loan proceeds for a purpose other than for the purpose for which
17-22 the taxes were imposed or the bonds were authorized.
17-23 Sec. 20B. (a) The board of directors may borrow money at a
17-24 rate not to exceed the maximum annual percentage rate allowed by
17-25 law for district obligations at the time of the loan.
17-26 (b) To secure a loan, the board of directors may pledge:
17-27 (1) revenues of the district that are not pledged to
18-1 pay bonded indebtedness of the district;
18-2 (2) tax revenue to be collected by the district in the
18-3 next 12-month period that has not been pledged to pay the principal
18-4 of or interest on district bonds; or
18-5 (3) district bonds that have been authorized but have
18-6 not been sold.
18-7 (c) A loan for which tax revenue or bonds are pledged must
18-8 mature not later than the first anniversary of the date on which
18-9 the loan was made. A loan for which other district revenues are
18-10 pledged must mature not later than the fifth anniversary of the
18-11 date on which the loan was made.
18-12 Sec. 20C. (a) The district may be dissolved only if the
18-13 dissolution is approved by a majority of the qualified voters of
18-14 the district voting in an election called and held for that
18-15 purpose.
18-16 (b) The board of directors may order an election on the
18-17 question of dissolving the district and disposing of the district's
18-18 assets and obligations. The board of directors shall order an
18-19 election to be held on the question of dissolution of the district
18-20 if the board of directors receives a petition requesting an
18-21 election that is signed by at least 15 percent of the registered
18-22 voters of the district.
18-23 (c) The election shall be held not later than the 60th day
18-24 after the date the election is ordered. Section 41.001(a),
18-25 Election Code, does not apply to an election ordered under this
18-26 section. The order calling the election must state:
18-27 (1) the nature of the election, including the
19-1 proposition that is to appear on the ballot;
19-2 (2) the date of the election;
19-3 (3) the hours during which the polls will be open; and
19-4 (4) the location of the polling places.
19-5 (d) The board of directors shall give notice of the election
19-6 by publishing a copy of the election order in a newspaper with
19-7 general circulation in the district once a week for two consecutive
19-8 weeks. The first publication must appear on or before the 35th day
19-9 before the date set for the election. The ballot for an election
19-10 at which the dissolution of the district is proposed shall be
19-11 printed to permit voting for or against the proposition: "The
19-12 dissolution of the Mitchell County Hospital District."
19-13 (e) If a majority of the votes in the election favor
19-14 dissolution, the board of directors shall find that the district is
19-15 dissolved. If a majority of the votes in the election do not favor
19-16 dissolution, the board of directors shall continue to administer
19-17 the district, and another election on the question of dissolution
19-18 may not be held before the first anniversary of the most recent
19-19 election to dissolve the district.
19-20 (f) If a majority of the votes in the election favor
19-21 dissolution, the board of directors shall:
19-22 (1) transfer the land, buildings, improvements,
19-23 equipment, and other assets that belong to the district to a county
19-24 or to another governmental entity in Mitchell County;
19-25 (2) sell the assets and liabilities to another person
19-26 or entity; or
19-27 (3) administer the property, assets, and debts until
20-1 all funds have been disposed of and all district debts have been
20-2 paid or settled.
20-3 (g) If the district transfers the land, buildings,
20-4 improvements, equipment, and other assets to a county or other
20-5 governmental entity, the county or entity assumes all debts and
20-6 obligations of the district at the time of the transfer, at which
20-7 time the district is dissolved. If the district does not transfer
20-8 the land, buildings, improvements, equipment, and other assets to a
20-9 county or other governmental entity, or sell those assets and the
20-10 liabilities to another person, the board of directors shall
20-11 administer the property, assets, and debts of the district until
20-12 all funds have been disposed of and all district debts have been
20-13 paid or settled, at which time the district is dissolved.
20-14 (h) After the board of directors finds that the district is
20-15 dissolved, the board of directors shall:
20-16 (1) determine the debt owed by the district; and
20-17 (2) impose on the property included in the district's
20-18 tax rolls a tax that is in proportion of the debt to the property
20-19 value.
20-20 (i) When all outstanding debts and obligations of the
20-21 district are paid, the board of directors shall order the person
20-22 serving as secretary and treasurer to return the pro rata share of
20-23 all unused tax money to each district taxpayer.
20-24 (j) A taxpayer may request that the taxpayer's share of
20-25 surplus tax money be credited to the taxpayer's county taxes. If a
20-26 taxpayer requests the credit, the board of directors shall direct
20-27 the person serving as secretary and treasurer to transmit the funds
21-1 to the county tax assessor-collector.
21-2 (k) After the district has paid all its debts and has
21-3 disposed of all its assets and funds as prescribed by this section,
21-4 the board of directors shall file a written report with the
21-5 Commissioners Court of Mitchell County setting forth a summary of
21-6 the board of directors' actions in dissolving the district.
21-7 (l) Not later than the 10th day after the date it receives
21-8 the report and determines that the requirements of this section
21-9 have been fulfilled, the Commissioners Court of Mitchell County
21-10 shall enter an order dissolving the district and releasing the
21-11 board of directors of the district from any further duty or
21-12 obligation.
21-13 (m) The district may provide for the sale or transfer of the
21-14 district's assets and liabilities to another person or entity and
21-15 the district's subsequent dissolution. The dissolution of the
21-16 district and the sale or transfer of the district's assets and
21-17 liabilities to another person or entity may not contravene a trust
21-18 indenture or bond resolution relating to the outstanding bonds of
21-19 the district. The dissolution and sale or transfer does not
21-20 diminish or impair the rights of a holder of an outstanding bond,
21-21 warrant, or other obligation of the district.
21-22 (n) The sale or transfer of the district's assets and
21-23 liabilities must satisfy the debt and bond obligations of the
21-24 district in a manner that protects the interests of the residents
21-25 of the district, including the residents' collective property
21-26 rights in the district's assets. A grant from federal funds is an
21-27 obligation to be repaid in satisfaction. The district may not
22-1 transfer or dispose of the district's assets except for due
22-2 compensation unless the transfer is made to another governmental
22-3 entity that serves the district and the transferred assets are to
22-4 be used for the benefit of the residents of the district.
22-5 SECTION 12. This Act takes effect immediately if it receives
22-6 a vote of two-thirds of all the members elected to each house, as
22-7 provided by Section 39, Article III, Texas Constitution. If this
22-8 Act does not receive the vote necessary for immediate effect, this
22-9 Act takes effect September 1, 2001.