1-1 By: Fraser S.B. No. 1158
1-2 (In the Senate - Filed March 6, 2001; March 8, 2001, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; March 22, 2001, reported favorably by the following
1-5 vote: Yeas 7, Nays 0; March 22, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the operation of the Mitchell County Hospital District.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 4, Chapter 466, Acts of the 60th
1-11 Legislature, Regular Session, 1967, is amended to read as follows:
1-12 Sec. 4. (a) Upon the effective date of this Act, the
1-13 following named seven persons shall be and constitute the temporary
1-14 or provisional directors of the said district: (1) Mrs. Dee
1-15 Bassham, (2) Murrell Blassingame, (3) Rex McKinney, (4) T. C.
1-16 Moore, (5) J. W. Randle, (6) Bob Reily, and (7) Wayne Shawn; and
1-17 each of said directors shall subscribe to the Constitutional oath
1-18 of office within 60 days of the effective date of this Act. Should
1-19 any of the named directors refuse to act or for any reason fail to
1-20 qualify as herein required, the County Judge of Mitchell County
1-21 shall fill such vacancy. The terms of office of the first, third,
1-22 fifth and seventh named directors shall expire on the first
1-23 Saturday in April of the second year following the election for the
1-24 creation of the district, and the terms of the second, fourth, and
1-25 sixth named directors shall expire on the first Saturday in April
1-26 of the year following the election for the creation of the
1-27 district. Successors shall be elected by a vote of the electors of
1-28 the entire district for two-year terms.
1-29 (b) The directors named herein and their successors in
1-30 office shall hold office as provisional or temporary directors
1-31 until such time as the creation of the district has been approved
1-32 at an election as herein provided. At such time as the creation of
1-33 the district is so approved and the returns of the election
1-34 officially canvassed, the persons acting as provisional or
1-35 temporary directors shall become permanent directors whose terms
1-36 shall expire as hereinabove provided. Each permanent director and
1-37 his successor in office shall qualify by executing the
1-38 Constitutional oath of office, and such permanent directors, acting
1-39 as a board, shall have and exercise the powers hereafter conferred
1-40 on such board.
1-41 (c) To be qualified for election to the board of directors,
1-42 a person must be a qualified voter and a resident of the district.
1-43 An employee of the district may not serve as a director. A
1-44 director is not entitled to compensation, but is entitled to
1-45 receive reimbursement for actual expenses incurred in attending to
1-46 the district's business, provided the expenses are reported in the
1-47 district's minute book or other district records and approved by
1-48 the remainder of the board of directors [No person shall be a
1-49 member of the board of directors of said hospital district unless
1-50 he is a resident thereof and owns land subject to taxation therein
1-51 and unless at the time of such election or appointment he shall be
1-52 more than 21 years of age].
1-53 (d) The board of directors shall organize by electing one of
1-54 their number as president and one of their number as vice
1-55 president. The board of directors shall also elect one person who
1-56 is not required to be a director to serve as secretary and
1-57 treasurer. Each officer serves a one-year term [A secretary, who
1-58 need not be a director, shall also be elected by said directors].
1-59 Any four members of the board of directors shall constitute a
1-60 quorum and a concurrence of four shall be sufficient in all matters
1-61 pertaining to the business of the district. All vacancies in the
1-62 office of director shall be filled for the unexpired term by a
1-63 majority vote [appointment] of the remainder of the board of
1-64 directors and the person elected to fill the vacancy shall hold
2-1 office for the remainder of the unexpired term. In the event the
2-2 number of directors shall be reduced to less than four for any
2-3 reason, the remaining directors shall immediately call a special
2-4 election to fill said vacancies, and upon failure to do so, a
2-5 district court, upon application of any qualified voter [elector]
2-6 or taxpayer of the district, may issue a mandate requiring that
2-7 such election be ordered by the remaining directors.
2-8 (e) The board of directors shall order a [A] regular
2-9 election of directors to [shall] be held on the first Saturday in
2-10 May [April] of each year. The board of directors shall issue the
2-11 order at least 45 days before the date of the election. The order
2-12 must state the time, place, and purpose of the election. The board
2-13 of directors shall appoint the presiding judge, who shall appoint
2-14 election clerks as required. Notice [and notice] of such election
2-15 shall be published in a newspaper of general circulation in the
2-16 district one time at least 10 days prior to the date of election.
2-17 Any person desiring that person's [his] name to be printed on the
2-18 ballot as a candidate for director shall file an application [a
2-19 petition, signed by not less than 25 qualified electors, asking
2-20 that such name be printed on the ballot,] with the secretary of the
2-21 board of directors of the district[. Such petition shall be so
2-22 filed] at least 31 [25] days prior to the date of election.
2-23 SECTION 2. Section 5, Chapter 466, Acts of the 60th
2-24 Legislature, Regular Session, 1967, is amended to read as follows:
2-25 Sec. 5. (a) The board of directors shall manage, control
2-26 and administer the hospitals and hospital system of the district.
2-27 The district through its board of directors shall have the power
2-28 and authority to sue and be sued and to promulgate rules and
2-29 regulations for the operation of the district. The board of
2-30 directors shall appoint a qualified person to be known as the
2-31 administrator [or manager] of the hospital district and may in its
2-32 discretion appoint an assistant to the administrator [or manager].
2-33 Such administrator [or manager] and assistant administrator [or
2-34 assistant manager], if any, shall serve at the will of the board
2-35 and shall receive such compensation as may be fixed by the board.
2-36 The board may require the [The] administrator [or manager shall],
2-37 upon assuming the administrator's [his] duties, to execute a bond
2-38 payable to the hospital district in an amount to be set by the
2-39 board of directors, in no event less than $5,000, conditioned that
2-40 the administrator [he] shall perform the duties required [of him],
2-41 and containing such other conditions as the board may require. The
2-42 board may pay for the bond with district funds. The administrator
2-43 [or manager] shall supervise all the work and activities of the
2-44 district and shall have general direction of the affairs of the
2-45 district, subject to such limitations as may be prescribed by the
2-46 board. The board of directors shall have the authority to employ
2-47 or appoint to the staff such doctors, technicians, nurses and other
2-48 employees of every kind and character as may be deemed necessary
2-49 for the efficient operation of the district. The board may provide
2-50 that the administrator [or manager] shall have the authority to
2-51 employ technicians, nurses and employees of the district.
2-52 (b) The [Such] board of directors shall be authorized to
2-53 contract with any county or incorporated municipality located
2-54 outside its boundaries for the care and treatment of the sick,
2-55 diseased, or injured persons of any such county or municipality,
2-56 and shall have the authority to contract with the State of Texas or
2-57 agencies of the federal government for the treatment of sick,
2-58 diseased, or injured persons.
2-59 (c) The board of directors may provide retirement benefits
2-60 for the employees of the district by establishing or administering
2-61 a retirement program or electing to participate in a statewide
2-62 retirement system.
2-63 (d) The board of directors may spend district funds to
2-64 recruit physicians, nurses, and other trained medical personnel.
2-65 (e) The board of directors may institute a suit to enforce
2-66 the payment of taxes and to foreclose liens to secure the payment
2-67 of taxes due to the district.
2-68 (f) The board of directors may provide or contract to
2-69 provide educational programs or courses for employees and medical
3-1 staff of the district.
3-2 (g) The board of directors may institute a suit to collect
3-3 amounts owed to the district by patients who are not able to pay
3-4 under Section 17 of this Act.
3-5 (h) The district may sponsor and create a nonprofit
3-6 corporation under the Texas Non-Profit Corporation Act (Article
3-7 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
3-8 contribute funds to or solicit funds for the corporation. The
3-9 corporation may use district funds only to provide health care or
3-10 other services the district is authorized to provide under this
3-11 Act. The board of directors shall establish adequate controls to
3-12 ensure the corporation uses funds as required by this subsection.
3-13 The corporation may invest corporation funds in any manner in which
3-14 the district may invest funds, including investing funds as
3-15 authorized by Chapter 2256, Government Code.
3-16 SECTION 3. Section 6, Chapter 466, Acts of the 60th
3-17 Legislature, Regular Session, 1967, is amended to read as follows:
3-18 Sec. 6. The district operates [shall be operated] on the
3-19 [basis of a] fiscal year established by the board of directors.
3-20 The fiscal year may not be changed if revenue bonds of the district
3-21 are outstanding or more than once in a 24-month period. The board
3-22 of directors [commencing on October 1 of each year and ending on
3-23 September 30 of the following year, and it] shall cause an annual
3-24 audit to be made of the financial condition of the [said] district,
3-25 which together with other records of the district shall be open to
3-26 inspection at the principal office of the district. The
3-27 administrator [or manager] shall prepare an annual budget for
3-28 approval by the board of directors. A public hearing on the annual
3-29 budget shall be held by the board of directors after notice of such
3-30 hearing has been published in a newspaper of general circulation in
3-31 the district one time at least 10 days before the date set for the
3-32 hearing [therefor]. No expenditure may be made for any expense not
3-33 included in the annual budget or an amendment thereto. The annual
3-34 budget may be amended from time to time as the circumstances may
3-35 require, but the annual budget, and all amendments thereto, shall
3-36 be approved by the board of directors. As soon as practicable
3-37 after the close of each fiscal year, the administrator [or manager]
3-38 shall prepare for the board a full sworn statement of all moneys
3-39 belonging to the district and a full account of the disbursements
3-40 of same.
3-41 SECTION 4. Chapter 466, Acts of the 60th Legislature,
3-42 Regular Session, 1967, is amended by amending Section 7 and adding
3-43 Sections 7A, 7B, and 7C to read as follows:
3-44 Sec. 7. (a) The board of directors may issue and sell bonds
3-45 authorized by an election in the name and on the faith and credit
3-46 of the hospital district to purchase, construct, acquire, repair,
3-47 or renovate buildings or improvements, equip buildings or
3-48 improvements for hospital purposes, or acquire and operate a mobile
3-49 emergency medical or air ambulance service.
3-50 (b) At the time the bonds are issued by the district, the
3-51 board of directors shall levy a tax. The tax must be sufficient to
3-52 create an interest and sinking fund to pay the principal of and
3-53 interest on the bonds as they mature. In any year, the tax
3-54 together with any other tax the district levies may not exceed the
3-55 limit approved by the voters at the election authorizing the levy
3-56 of taxes.
3-57 (c) The district may issue general obligation bonds only if
3-58 the bonds are authorized by a majority of the qualified voters of
3-59 the district voting at an election called and held for that
3-60 purpose. The board of directors may order a bond election.
3-61 (d) The bond election shall be conducted as provided by
3-62 Chapter 1251, Government Code.
3-63 Sec. 7A. (a) The board of directors may issue revenue bonds
3-64 to purchase, construct, acquire, repair, equip, or renovate
3-65 buildings or improvements for hospital purposes, acquire sites to
3-66 be used for hospital purposes, or acquire and operate a mobile
3-67 emergency medical or air ambulance service to assist the district
3-68 in carrying out its hospital purposes.
3-69 (b) The bonds must be payable from and secured by a pledge
4-1 of all or part of the revenues derived from the operation of the
4-2 district's hospital system. The bonds may be additionally secured
4-3 by a mortgage or deed of trust lien on all or part of district
4-4 property.
4-5 (c) The bonds must be issued in the manner provided by
4-6 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
4-7 Health and Safety Code, for issuance of revenue bonds by county
4-8 hospital authorities [The board of directors shall have the power
4-9 and authority to issue and sell its bonds in the name and upon the
4-10 faith and credit of such hospital district for the purchase,
4-11 construction, acquisition, repair, or renovation of buildings and
4-12 improvements and equipping the same for hospital purposes, and for
4-13 any or all of such purposes. At the time of the issuance of any
4-14 bonds by the district a tax shall be levied by the board sufficient
4-15 to create an interest and sinking fund to pay the interest on and
4-16 principal of said bonds as same mature, providing such tax together
4-17 with any other taxes levied for said district shall not exceed 75
4-18 cents on each $100 valuation of taxable property in any one year.
4-19 No bonds shall be issued by such hospital district except refunding
4-20 bonds until authorized by a majority of the qualified electors of
4-21 the district who own taxable property therein and who have duly
4-22 rendered the same for taxation voting at an election called for
4-23 such purpose. The order for bond election shall specify the date
4-24 of the election, the amount of bonds to be authorized, the maximum
4-25 maturity thereof, the maximum rate of interest they are to bear,
4-26 the place or places where the election shall be held, the presiding
4-27 judge and alternate judge for each voting place and provide for
4-28 clerks as in county elections. Notice of any bond election (except
4-29 one held under the provisions of Section 8, in which instance
4-30 notice shall be given as provided in Section 3) shall be given as
4-31 provided in Article 704, Revised Civil Statutes of Texas, 1925, as
4-32 amended, and shall be conducted in accordance with the general laws
4-33 of Texas pertaining to general elections, except as modified by the
4-34 provisions of this Act].
4-35 Sec. 7B. Refunding bonds of the district may be issued for
4-36 the purpose of refunding and paying off any outstanding
4-37 indebtedness it has issued or assumed. The refunding bonds shall
4-38 be issued in accordance with Chapter 1207, Government Code [Such
4-39 refunding bonds may be sold and the proceeds thereof applied to the
4-40 payment of outstanding indebtedness, or may be exchanged in whole
4-41 or in part for not less than a like principal amount of such
4-42 outstanding indebtedness provided that, if refunding bonds are to
4-43 be exchanged for a like amount of said outstanding indebtedness,
4-44 such refunding bonds shall bear interest at the same or lower rate
4-45 than borne by the debt refunded, unless it is shown mathematically
4-46 that a saving will result in the total amount of interest to be
4-47 paid on said refunding bonds, and provided further that if such
4-48 refunding bonds are to be sold and the proceeds thereof applied to
4-49 the payment of any such outstanding indebtedness, same shall be
4-50 issued and payments made in the manner specified by Article 717k,
4-51 Vernon's Texas Civil Statutes].
4-52 Sec. 7C. Bonds of the district shall bear interest at a rate
4-53 not to exceed the rate provided by Chapter 1204, Government Code
4-54 [six per centum per annum], shall mature within 40 years of their
4-55 date, shall be executed in the name of the hospital district and in
4-56 its behalf by the president of the board and countersigned by the
4-57 secretary in the manner provided by Chapter 618, Government Code
4-58 [Article 717j-1, Vernon's Texas Civil Statutes], and shall be
4-59 subject to the same requirements in the matter of approval by the
4-60 Attorney General of Texas and registration by the Comptroller of
4-61 Public Accounts of the State of Texas as are by law provided for
4-62 approval and registration of bonds issued by counties. Upon the
4-63 approval of such bonds by the Attorney General and registration by
4-64 the Comptroller, the same shall be incontestable for any cause.
4-65 SECTION 5. Section 9, Chapter 466, Acts of the 60th
4-66 Legislature, Regular Session, 1967, is amended to read as follows:
4-67 Sec. 9. (a) The board of directors is hereby given complete
4-68 discretion as to the type of buildings (both as to number and
4-69 location) required to establish and maintain an adequate hospital
5-1 system. Nothing herein shall prohibit the establishing and
5-2 equipping of a clinic as a part of the hospital system.
5-3 (b) The board of directors may purchase or lease property,
5-4 facilities, and equipment for the district to use in the hospital
5-5 system and may mortgage or pledge the property, facilities, or
5-6 equipment as security for the payment of the purchase price.
5-7 (c) The board of directors may enter into a contract or
5-8 contracts to provide administrative and other personnel for the
5-9 operation of the hospital facilities, but in no event may a
5-10 contract be for a period that exceeds 25 years from the date the
5-11 contract is entered. The board may transfer district hospital
5-12 facilities by lease to individuals, corporations, or other legal
5-13 entities and may sell or otherwise dispose of the district's
5-14 property, facilities, and equipment [The district, through its
5-15 board of directors, is further authorized to enter into an
5-16 operating or management contract with regard to its facilities or a
5-17 part thereof, or may lease all or part of its buildings and
5-18 facilitites upon terms and conditions considered to be to the best
5-19 interest of its inhabitants, provided that in no event shall any
5-20 lease be for a period in excess of 25 years from the date entered.
5-21 The district shall be empowered to sell or otherwise dispose of any
5-22 property (real or personal) or equipment of any nature upon terms
5-23 and conditions found by the board to be in the best interest of its
5-24 inhabitants].
5-25 SECTION 6. Section 10, Chapter 466, Acts of the 60th
5-26 Legislature, Regular Session, 1967, is amended to read as follows:
5-27 Sec. 10. The board of directors of such district shall have
5-28 the power to prescribe the method and manner of making purchases
5-29 and expenditures by and for such hospital district, and also shall
5-30 be authorized to prescribe all accounting and control procedures.
5-31 The board may contract for construction only after competitive
5-32 bidding as provided by Subchapter B, Chapter 271, Local Government
5-33 Code [All purchases involving the expenditure of more than $2,000
5-34 may be made only after advertising in the manner provided by
5-35 Article 2368a, Vernon's Texas Civil Statutes, as amended]. The
5-36 district may acquire equipment for use in its hospital system and
5-37 mortgage or pledge the property so acquired as security for the
5-38 payment of the purchase price, but any such contract shall provide
5-39 for the entire obligation of the district to be retired within five
5-40 years from the date of the contract. Except as permitted in the
5-41 preceding sentence and as permitted by Sections 7, 7A, 7B, 7C, and
5-42 8, the district may incur no obligation payable from any revenues
5-43 of the district (taxes or otherwise) except those on hand or to be
5-44 on hand within the then current fiscal year of the district.
5-45 SECTION 7. Section 11, Chapter 466, Acts of the 60th
5-46 Legislature, Regular Session, 1967, is amended to read as follows:
5-47 Sec. 11. The board of directors of the district shall name
5-48 one or more banks [within its boundaries] to serve as depository
5-49 for the funds of the district. All such funds shall, as derived
5-50 and collected, be immediately deposited with such depository bank
5-51 or banks, except that sufficient funds shall be remitted to the
5-52 place or places designated as agent for the payment of principal of
5-53 and interest on the outstanding bonds of the district or other
5-54 obligations assumed by it and in time that such money may be
5-55 received by said agent or agents for payment on or prior to the
5-56 date of maturity of such principal and interest so to be paid. To
5-57 the extent that funds in the depository bank or banks are not
5-58 insured by the Federal Deposit Insurance Corporation, they shall be
5-59 secured in the manner provided by law for security of county funds.
5-60 Membership on the board of directors of an officer or director of a
5-61 bank shall not disqualify such bank from being designated as
5-62 depository.
5-63 SECTION 8. Section 14, Chapter 466, Acts of the 60th
5-64 Legislature, Regular Session, 1967, is amended to read as follows:
5-65 Sec. 14. The district shall have the right and power of
5-66 eminent domain for the purpose of acquiring by condemnation any and
5-67 all property of any kind and character in fee simple, or any lesser
5-68 interest therein, within the boundaries of the district necessary
5-69 or convenient to the powers, rights and privileges conferred by
6-1 this Act, in the manner provided by the general law with respect to
6-2 condemnation by counties, provided that the district shall not be
6-3 required to make deposits in the registry of the trial court of the
6-4 sum required by Section 21.021(a), Property Code [paragraph 2 of
6-5 Article 3268, Revised Civil Statutes of Texas, 1925, as amended],
6-6 or to make bond as therein provided. In condemnation proceedings
6-7 being prosecuted by the district, the district shall not be
6-8 required to pay in advance or give bond or other security for costs
6-9 in the trial court, nor to give any bond otherwise required for the
6-10 issuance of a temporary restraining order or a temporary injunction
6-11 nor to give bond for costs or for supersedeas on any appeal or writ
6-12 of error.
6-13 SECTION 9. Section 15, Chapter 466, Acts of the 60th
6-14 Legislature, Regular Session, 1967, is amended to read as follows:
6-15 Sec. 15. The board of directors may annually impose property
6-16 taxes in an amount not to exceed the limit approved by the voters
6-17 at an election authorizing the levy of taxes. The tax rate for all
6-18 district purposes may not exceed 75 cents on each $100 valuation of
6-19 all taxable property in the district. The taxes may be used to pay
6-20 for indebtedness issued or assumed by the district and for the
6-21 maintenance and operating expenses of the district. The district
6-22 may not impose taxes to pay the principal of or interest on revenue
6-23 bonds. The Tax Code governs the appraisal, assessment, and
6-24 collection of district taxes. The board may provide for the
6-25 appointment of a tax assessor-collector for the district or may
6-26 contract for the assessment and collection of taxes as provided by
6-27 the Tax Code [The district taxes shall be assessed and collected on
6-28 county tax values in the same manner as provided by law with
6-29 relation to county taxes upon all taxable property within said
6-30 district subject to hospital district taxation. The tax
6-31 assessor-collector of the county in which said district is situated
6-32 shall be charged and required to accomplish the assessment and
6-33 collection of all taxes levied by and on behalf of the district.
6-34 The assessor-collector of taxes shall charge and deduct from
6-35 payments to the hospital district an amount as fees for assessing
6-36 and collecting the taxes at a rate of one percent of the taxes
6-37 assessed and one percent of the taxes collected, but in no event
6-38 shall the amount paid exceed $5,000 in any one calendar year. Such
6-39 fees shall be deposited in the officers' salary fund of the county
6-40 and reported as fees of office of the county tax
6-41 assessor-collector. Interest and penalties on taxes paid to the
6-42 hospital district shall be the same as in the case of county taxes.
6-43 Discounts shall be the same as allowed by the county. The residue
6-44 of tax collections after deduction of discounts and fees for
6-45 assessing and collecting shall be deposited in the district's
6-46 depository. The board of directors shall have the authority to
6-47 levy the aforesaid tax for the entire year in which said district
6-48 is established as the result of the election herein provided. The
6-49 bond of the county tax assessor-collector shall stand as security
6-50 for the proper performance of his duties as assessor-collector of
6-51 the district, or, if in the judgment of the district board of
6-52 directors it is necessary, additional bond payable to the district
6-53 may be required. In all matters pertaining to the assessment,
6-54 collection and enforcement of taxes for the district, the county
6-55 tax assessor-collector shall be authorized to act in all respects
6-56 according to the laws of the State of Texas relating to state and
6-57 county taxes].
6-58 SECTION 10. Section 17, Chapter 466, Acts of the 60th
6-59 Legislature, Regular Session, 1967, is amended to read as follows:
6-60 Sec. 17. Whenever a patient residing within the district has
6-61 been admitted to the facilities thereof, the administrator [or
6-62 manager] may cause inquiry to be made as to the person's financial
6-63 [his] circumstances and the financial circumstances [those] of a
6-64 relative [the relatives] of the [such] patient who is legally
6-65 liable for the patient's [his] support. On the administrator's
6-66 finding [If he finds] that the [such] patient or a relative who is
6-67 legally responsible for the patient's support is [said relatives
6-68 are] able to pay for all or any part of the patient's [his] care
6-69 and treatment provided to the patient by the district [in whole or
7-1 in part], an order shall be made directing the [such] patient or
7-2 the relative [said relatives] to pay to the hospital district for
7-3 the care and support of such patient a specified sum per week in
7-4 proportion to [their] financial ability. The administrator [or
7-5 manager] shall have power and authority to collect such sums from
7-6 the estate of the patient or the relative who is [his relatives]
7-7 legally responsible [liable] for the patient's [his] support in the
7-8 manner provided by law for collection of expenses in the last
7-9 illness of a deceased person. If the administrator or manager
7-10 finds that the [such] patient or the relative is [said relatives
7-11 are] not able to pay either in whole or in part for the patient's
7-12 [his] care and treatment in the [such] hospital, same shall become
7-13 a charge upon the hospital district as to the amount of the
7-14 inability to pay. Should there be any dispute as to the ability to
7-15 pay or doubt in the mind of the administrator concerning ability to
7-16 pay [or manager], the board of directors shall hear and determine
7-17 same after calling witnesses, and shall make such order or orders
7-18 as may be proper. Appeals from a final order of the board shall
7-19 lie to the district court. [The substantial evidence rule shall
7-20 apply.]
7-21 SECTION 11. Chapter 466, Acts of the 60th Legislature,
7-22 Regular Session, 1967, is amended by adding Sections 20A, 20B, and
7-23 20C to read as follows:
7-24 Sec. 20A. (a) If the board of directors determines that
7-25 funds are not available to meet lawfully authorized obligations of
7-26 the district and that an emergency exists, the board of directors
7-27 may borrow money at a rate not to exceed the maximum annual
7-28 percentage rate allowed by law for district obligations at the time
7-29 the loan is made.
7-30 (b) To secure a loan, the board of directors may pledge:
7-31 (1) revenues of the district that are not pledged to
7-32 pay bonded indebtedness of the district;
7-33 (2) tax revenue to be collected by the district in the
7-34 next 12-month period that has not been pledged to pay the principal
7-35 of or interest on district bonds; or
7-36 (3) district bonds that have been authorized but have
7-37 not been sold.
7-38 (c) A loan for which tax revenue or bonds are pledged must
7-39 mature not later than the first anniversary of the date on which
7-40 the loan was made. A loan for which other district revenues are
7-41 pledged must mature not later than the fifth anniversary of the
7-42 date on which the loan was made.
7-43 (d) The board of directors may not spend loan proceeds under
7-44 this section for any purpose other than the purpose for which the
7-45 board declared an emergency existed. If tax revenues or bonds are
7-46 pledged to pay the loan, the board of directors may not use the
7-47 loan proceeds for a purpose other than for the purpose for which
7-48 the taxes were imposed or the bonds were authorized.
7-49 Sec. 20B. (a) The board of directors may borrow money at a
7-50 rate not to exceed the maximum annual percentage rate allowed by
7-51 law for district obligations at the time of the loan.
7-52 (b) To secure a loan, the board of directors may pledge:
7-53 (1) revenues of the district that are not pledged to
7-54 pay bonded indebtedness of the district;
7-55 (2) tax revenue to be collected by the district in the
7-56 next 12-month period that has not been pledged to pay the principal
7-57 of or interest on district bonds; or
7-58 (3) district bonds that have been authorized but have
7-59 not been sold.
7-60 (c) A loan for which tax revenue or bonds are pledged must
7-61 mature not later than the first anniversary of the date on which
7-62 the loan was made. A loan for which other district revenues are
7-63 pledged must mature not later than the fifth anniversary of the
7-64 date on which the loan was made.
7-65 Sec. 20C. (a) The district may be dissolved only if the
7-66 dissolution is approved by a majority of the qualified voters of
7-67 the district voting in an election called and held for that
7-68 purpose.
7-69 (b) The board of directors may order an election on the
8-1 question of dissolving the district and disposing of the district's
8-2 assets and obligations. The board of directors shall order an
8-3 election to be held on the question of dissolution of the district
8-4 if the board of directors receives a petition requesting an
8-5 election that is signed by at least 15 percent of the registered
8-6 voters of the district.
8-7 (c) The election shall be held not later than the 60th day
8-8 after the date the election is ordered. Section 41.001(a),
8-9 Election Code, does not apply to an election ordered under this
8-10 section. The order calling the election must state:
8-11 (1) the nature of the election, including the
8-12 proposition that is to appear on the ballot;
8-13 (2) the date of the election;
8-14 (3) the hours during which the polls will be open; and
8-15 (4) the location of the polling places.
8-16 (d) The board of directors shall give notice of the election
8-17 by publishing a copy of the election order in a newspaper with
8-18 general circulation in the district once a week for two consecutive
8-19 weeks. The first publication must appear before the 35th day
8-20 before the date set for the election. The ballot for an election
8-21 at which the dissolution of the district is proposed shall be
8-22 printed to permit voting for or against the proposition: "The
8-23 dissolution of the Mitchell County Hospital District."
8-24 (e) If a majority of the votes in the election favor
8-25 dissolution, the board of directors shall find that the district is
8-26 dissolved. If a majority of the votes in the election do not favor
8-27 dissolution, the board of directors shall continue to administer
8-28 the district and another election on the question of dissolution
8-29 may not be held before the first anniversary of the most recent
8-30 election to dissolve the district.
8-31 (f) If a majority of the votes in the election favor
8-32 dissolution, the board of directors shall:
8-33 (1) transfer the land, buildings, improvements,
8-34 equipment, and other assets that belong to the district to a county
8-35 or to another governmental entity in Mitchell County; or
8-36 (2) administer the property, assets, and debts until
8-37 all funds have been disposed of and all district debts have been
8-38 paid or settled.
8-39 (g) If the district transfers the land, buildings,
8-40 improvements, equipment, and other assets to a county or other
8-41 governmental entity, the county or entity assumes all debts and
8-42 obligations of the district at the time of the transfer and the
8-43 district is dissolved.
8-44 (h) After the board of directors finds that the district is
8-45 dissolved, the board of directors shall:
8-46 (1) determine any remaining debt owed by the district;
8-47 and
8-48 (2) impose on the property included in the district's
8-49 tax rolls a tax that is in proportion of the debt to the property
8-50 value.
8-51 (i) When remaining debts and obligations of the district are
8-52 paid, the board of directors shall order the secretary to return
8-53 the pro rata share of all unused tax money to each district
8-54 taxpayer. A taxpayer may request that the taxpayer's share of
8-55 surplus tax money be credited to the taxpayer's county taxes. If a
8-56 taxpayer requests the credit, the board of directors shall direct
8-57 the secretary to transmit the funds to the county tax
8-58 assessor-collector.
8-59 (j) After the district has paid all its debts and has
8-60 disposed of all its assets and funds as required by this section,
8-61 the board of directors shall file a written report with the
8-62 Commissioners Court of Mitchell County setting forth a summary of
8-63 the board of directors' actions in dissolving the district.
8-64 (k) Not later than the 10th day after the date it receives
8-65 the report and determines that the requirements of this section
8-66 have been fulfilled, the Commissioners Court of Mitchell County
8-67 shall enter an order dissolving the district and releasing the
8-68 board of directors of the district from any further duty or
8-69 obligation.
9-1 (l) The district may not be dissolved unless the board of
9-2 directors provides for the sale or transfer of the district's
9-3 assets and liabilities to another person or entity. The
9-4 dissolution of the district and the sale or transfer of the
9-5 district's assets and liabilities to another person or entity may
9-6 not contravene a trust indenture or bond resolution relating to the
9-7 outstanding bonds of the district. The dissolution and sale or
9-8 transfer does not diminish or impair the rights of a holder of an
9-9 outstanding bond, warrant, or other obligation of the district.
9-10 (m) The sale or transfer of the district's assets and
9-11 liabilities must satisfy the debt and bond obligations of the
9-12 district in a manner that protects the interests of the residents
9-13 of the district. The district may not transfer or dispose of the
9-14 district's assets except for due compensation unless the transfer
9-15 is made to another governmental entity that serves the district and
9-16 the transferred assets are to be used for the benefit of the
9-17 residents of the district.
9-18 SECTION 12. This Act takes effect immediately if it receives
9-19 a vote of two-thirds of all the members elected to each house, as
9-20 provided by Section 39, Article III, Texas Constitution. If this
9-21 Act does not receive the vote necessary for immediate effect, this
9-22 Act takes effect September 1, 2001.
9-23 * * * * *