By:  Sibley                                           S.B. No. 1811
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the dissolution of the DeLeon Hospital District and the
 1-3     Comanche County Hospital District and the creation of the Comanche
 1-4     County Consolidated Hospital District.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6          ARTICLE 1.  CHANGES RELATING TO DELEON HOSPITAL DISTRICT
 1-7           SECTION 1.01.  Section 21A, Chapter 202, Acts of the 63rd
 1-8     Legislature, Regular Session, 1973, is amended to read as follows:
 1-9           Sec. 21A.  DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF
1-10     COMANCHE COUNTY HOSPITAL DISTRICT AND CREATION OF COMANCHE COUNTY
1-11     CONSOLIDATED [LEON VALLEY] HOSPITAL DISTRICT.  (a)  The DeLeon
1-12     Hospital District may be dissolved as provided by this section.
1-13           (b)  The board of directors may order an election on the
1-14     question of the dissolution of the DeLeon Hospital District,
1-15     creation of the Comanche County Consolidated [Leon Valley] Hospital
1-16     District, transfer of the DeLeon Hospital District's assets and
1-17     obligations to the Comanche County Consolidated [Leon Valley]
1-18     Hospital District, and assumption by the Comanche County
1-19     Consolidated [Leon Valley] Hospital District of the DeLeon Hospital
1-20     District's outstanding debts.
1-21           (c)  The board shall order an election if:
1-22                 (1)  the board of the Comanche County Hospital District
1-23     orders an election under Section 21A, Chapter 203, Acts of the 63rd
1-24     Legislature, Regular Session, 1973; or
1-25                 (2)  the board receives a petition requesting an
 2-1     election on the questions of dissolution and transfer of assets
 2-2     that is signed by at least 50 registered voters in the DeLeon
 2-3     Hospital District.
 2-4           (d)  If the board of directors orders an election under this
 2-5     section, it shall promptly notify the board of directors of the
 2-6     Comanche County Hospital District of the election order.
 2-7           (e)  The election shall be held not less than 45 or more than
 2-8     60 days after the date on which an election is ordered and shall be
 2-9     held on the same date that the separate election in the Comanche
2-10     County Hospital District is held.  The board of directors shall
2-11     cooperate with the board of directors of the Comanche County
2-12     Hospital District in setting the date of the elections.  Section
2-13     41.001(a), Election Code, does not apply to an election ordered
2-14     under this section.
2-15           (f)  The ballot for the election shall be printed to permit
2-16     voting for or against the proposition:  "The dissolution of the
2-17     DeLeon Hospital District and creation of the Comanche County
2-18     Consolidated [Leon Valley] Hospital District, providing for the
2-19     levy of a tax not to exceed 25 cents on each $100 valuation on all
2-20     taxable property in the Comanche County Consolidated [Leon Valley]
2-21     Hospital District, and providing for the transfer to and assumption
2-22     by the Comanche County Consolidated [Leon Valley] Hospital District
2-23     of all outstanding bonds and indebtedness issued for hospital
2-24     purposes by the DeLeon Hospital District and any part of the county
2-25     or any city or town located in the district and the transfer of the
2-26     existing DeLeon Hospital District's assets to the Comanche County
 3-1     Consolidated [Leon Valley] Hospital District."
 3-2           (g)  Except as provided by Subsections (e) and (f) of this
 3-3     section, the election shall be held in accordance with the
 3-4     applicable provisions of the Election Code.
 3-5           (h)  The DeLeon Hospital District is dissolved if:
 3-6                 (1)  a majority of the voters in the DeLeon Hospital
 3-7     District voting in the election held under this section favor the
 3-8     proposition; and
 3-9                 (2)  a majority of the voters in the Comanche County
3-10     Hospital District voting in an election held on the same date under
3-11     Section 21A, Chapter 203, Acts of the 63rd Legislature, Regular
3-12     Session, 1973, favor the dissolution of the Comanche County
3-13     Hospital District, the creation of the Comanche County Consolidated
3-14     [Leon Valley] Hospital District, the transfer of the assets of the
3-15     Comanche County Hospital District to the Comanche County
3-16     Consolidated [Leon Valley] Hospital District, and the assumption of
3-17     the assets and obligations of the Comanche County Hospital District
3-18     by the Comanche County Consolidated [Leon Valley] Hospital
3-19     District.
3-20           (i)  The DeLeon Hospital District is not dissolved and the
3-21     board of directors shall continue to administer the DeLeon Hospital
3-22     District if  a majority of the voters in either the DeLeon Hospital
3-23     District or the Comanche County Hospital District do not favor the
3-24     proposition on which they voted.
3-25           (j)  If the DeLeon Hospital District is dissolved under this
3-26     section, the board of directors shall transfer the assets and
 4-1     obligations of the DeLeon Hospital District to the Comanche County
 4-2     Consolidated [Leon Valley] Hospital District.
 4-3           (k)  The board of directors may not order another election on
 4-4     the question of dissolution before the first anniversary of the
 4-5     date of the most recent election at which voters of either district
 4-6     disapproved the proposition on which they voted.
 4-7           SECTION 1.02.  Section 1B, Chapter 202, Acts of the 63rd
 4-8     Legislature, Regular Session, 1973, is amended to read as follows:
 4-9           Sec. 1B.  On the dissolution of the DeLeon Hospital District
4-10     and the approval of the creation of the Comanche County
4-11     Consolidated [Leon Valley] Hospital District, a reference in this
4-12     Act or in any other law to the DeLeon Hospital District means the
4-13     Comanche County Consolidated [Leon Valley] Hospital District.
4-14               ARTICLE 2.  CHANGES RELATING TO COMANCHE COUNTY
4-15                              HOSPITAL DISTRICT
4-16           SECTION 2.01.  Section 21A, Chapter 203, Acts of the 63rd
4-17     Legislature, Regular Session, 1973, is amended to read as follows:
4-18           Sec. 21A.  DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF
4-19     DELEON HOSPITAL DISTRICT AND CREATION OF COMANCHE COUNTY
4-20     CONSOLIDATED [LEON VALLEY] HOSPITAL DISTRICT.  (a)  The Comanche
4-21     County Hospital District may be dissolved as provided by this
4-22     section.
4-23           (b)  The board of directors may order an election on the
4-24     question of the dissolution of the Comanche County Hospital
4-25     District, creation of the Comanche County Consolidated [Leon
4-26     Valley] Hospital District, transfer of the Comanche County Hospital
 5-1     District's assets and obligations to the Comanche County
 5-2     Consolidated [Leon Valley] Hospital District, and the assumption by
 5-3     the Comanche County Consolidated [Leon Valley] Hospital District of
 5-4     the Comanche County Hospital District's outstanding debts.
 5-5           (c)  The board shall order an election if:
 5-6                 (1)  the board of the DeLeon Hospital District orders
 5-7     an election under Section 21A, Chapter 202, Acts of the 63rd
 5-8     Legislature, Regular Session, 1973; or
 5-9                 (2)  the board receives a petition requesting an
5-10     election on the questions of dissolution and transfer of assets
5-11     that is signed by at least 50 registered voters in the Comanche
5-12     County Hospital District.
5-13           (d)  If the board of directors orders an election under this
5-14     section, it shall promptly notify the board of directors of the
5-15     DeLeon Hospital District of the election order.
5-16           (e)  The election shall be held not less than 45 or more than
5-17     60 days after the date on which an election is ordered and shall be
5-18     held on the same date that the separate election in the DeLeon
5-19     Hospital District is held.  The board of directors shall cooperate
5-20     with the board of directors of the DeLeon Hospital District in
5-21     setting the date of the elections.  Section 41.001(a), Election
5-22     Code, does not apply to an election ordered under this section.
5-23           (f)  The ballot for the election shall be printed to permit
5-24     voting for or against the proposition:  "The dissolution of the
5-25     Comanche County Hospital District and creation of the Comanche
5-26     County Consolidated [Leon Valley] Hospital District, providing for
 6-1     the levy of a tax not to exceed 25 cents on each $100 valuation on
 6-2     all taxable property in the Comanche County Consolidated [Leon
 6-3     Valley] Hospital District, and providing for the transfer to and
 6-4     assumption by the Comanche County Consolidated [Leon Valley]
 6-5     Hospital District of all outstanding bonds and indebtedness issued
 6-6     for hospital purposes by the Comanche County Hospital District and
 6-7     any part of the county or any city or town located in the district,
 6-8     and the transfer of the existing Comanche County Hospital
 6-9     District's assets to the Comanche County Consolidated [Leon Valley]
6-10     Hospital District."
6-11           (g)  Except as provided by Subsections (e) and (f) of this
6-12     section, the election shall be held in accordance with the
6-13     applicable provisions of the Election Code.
6-14           (h)  The Comanche County Hospital District is dissolved if:
6-15                 (1)  a majority of the voters in the Comanche County
6-16     Hospital District voting in the election held under this section
6-17     favor the proposition; and
6-18                 (2)  a majority of the voters in the DeLeon Hospital
6-19     District voting in an election held on the same date under Section
6-20     21A, Chapter 202, Acts of the 63rd Legislature, Regular Session,
6-21     1973, favor the dissolution of the DeLeon Hospital District, the
6-22     creation of the Comanche County Consolidated [Leon Valley] Hospital
6-23     District, the transfer of the assets of the DeLeon Hospital
6-24     District to the Comanche County Consolidated [Leon Valley] Hospital
6-25     District, and the assumption of the assets and obligations of the
6-26     DeLeon Hospital District by the Comanche County Consolidated [Leon
 7-1     Valley] Hospital District.
 7-2           (i)  The Comanche County Hospital District is not dissolved
 7-3     and the board of directors shall continue to administer the
 7-4     Comanche County Hospital District if a majority of the voters in
 7-5     either district do not favor the proposition on which they voted.
 7-6           (j)  If the Comanche County Hospital District is dissolved
 7-7     under this section, the board of directors shall transfer the
 7-8     assets and obligations of the Comanche County Hospital District to
 7-9     the Comanche County Consolidated [Leon Valley] Hospital District.
7-10           (k)  The board of directors may not order another election on
7-11     the question of dissolution before the first anniversary of the
7-12     date of the most recent election at which voters of either district
7-13     disapproved the proposition on which they voted.
7-14           SECTION 2.02.  Section 1A, Chapter 203, Acts of the 63rd
7-15     Legislature, Regular Session, 1973, is amended to read as follows:
7-16           Sec. 1A.  On the dissolution of the Comanche County Hospital
7-17     District and the approval of the creation of the Comanche County
7-18     Consolidated [Leon Valley] Hospital District, a reference in this
7-19     Act or in any other law to the Comanche County Hospital District
7-20     means the Comanche County Consolidated [Leon Valley] Hospital
7-21     District.
7-22                   ARTICLE 3.  CREATION OF COMANCHE COUNTY
7-23                       CONSOLIDATED HOSPITAL DISTRICT
7-24           SECTION 3.01.  Section 3.01, Chapter 132, Acts of the 74th
7-25     Legislature, Regular Session, 1995, is amended to read as follows:
7-26           Sec. 3.01.  (a)  In accordance with the provisions of Section
 8-1     9, Article IX, Texas Constitution, this Act authorizes the
 8-2     creation, establishment, administration, maintenance, operation,
 8-3     and financing of a hospital district in this state with boundaries
 8-4     coextensive with the boundaries of Comanche County [as they existed
 8-5     on August 10, 1992], exclusive of that portion of the county that
 8-6     is in the South Eastland County Hospital District[, of:]
 8-7                 [(1)  Commissioners Precinct Number 1 of Comanche
 8-8     County;]
 8-9                 [(2)  Commissioners Precinct Number 2 of Comanche
8-10     County with the addition of county election precinct number 5 and
8-11     with the deletion of county election precinct number 3 and county
8-12     election precinct number 6;]
8-13                 [(3)  Commissioners Precinct Number 3 of Comanche
8-14     County with the addition of county election precinct number 3 and
8-15     county election precinct number 6 and with the deletion of county
8-16     election precinct number 5; and]
8-17                 [(4)  Commissioners Precinct Number 4 of Comanche
8-18     County].
8-19           (b)  The district is to be known as "Comanche County
8-20     Consolidated [Leon Valley] Hospital District," and it has the
8-21     rights, powers, and duties as provided in this Act.  A reference in
8-22     this Act or in any other law to the Leon Valley Hospital District
8-23     means the Comanche County Consolidated Hospital District.
8-24           SECTION 3.02.  Section 3.02, Chapter 132, Acts of the 74th
8-25     Legislature, Regular Session, 1995, is amended to read as follows:
8-26           Sec. 3.02.  (a)  The Comanche County Consolidated [Leon
 9-1     Valley] Hospital District may not be created unless the creation,
 9-2     the assumption of debt, and the levy of taxes are approved by a
 9-3     majority of the voters at an election held in the DeLeon Hospital
 9-4     District and by a majority of the voters at a separate election
 9-5     held in the Comanche County Hospital District.
 9-6           (b)  The election in the DeLeon Hospital District and the
 9-7     election in the Comanche County Hospital District shall be held on
 9-8     the same day and must be held before September 1, 2005 [the fifth
 9-9     anniversary of the effective date of this Act].
9-10           SECTION 3.03.  Subsections (a) and (c), Section 3.03, Chapter
9-11     132, Acts of the 74th Legislature, Regular Session, 1995, are
9-12     amended to read as follows:
9-13           (a)  If the Comanche County Consolidated [Leon Valley]
9-14     Hospital District is created in accordance with Section 21A,
9-15     Chapter 202, and Section 21A, Chapter 203, Acts of the 63rd
9-16     Legislature, Regular Session, 1973, the following [five] persons
9-17     shall serve as temporary directors of the Comanche County
9-18     Consolidated [Leon Valley] Hospital District:
9-19                 1.  Charles Mazurek[--Precinct 1]
9-20                 2.  Jerry Morgan [Jim Abbey--Precinct 2]
9-21                 3.  Gale Easley [Ardean Kimmell--Precinct 3]
9-22                 4.  Forrest Eisenrich [Wayne Hammit--Precinct 4]
9-23                 5.  John Mack Weaver
9-24                 6.  Terry Stephens [Vincenzo Giustino--At Large]
9-25           (c)  The temporary board shall serve as the directors of the
9-26     Comanche County Consolidated [Leon Valley] Hospital District until
 10-1    the initial elected directors take office.
 10-2          SECTION 3.04.  Section 3.04, Chapter 132, Acts of the 74th
 10-3    Legislature, Regular Session, 1995, is amended to read as follows:
 10-4          Sec. 3.04.  (a)  If the Comanche County Consolidated [Leon
 10-5    Valley] Hospital District is created, six initial directors shall
 10-6    be elected at an election to be held on the first Saturday in May
 10-7    following the date the Comanche County Consolidated [Leon Valley]
 10-8    Hospital District is created.
 10-9          (b)  The temporary directors may postpone the election date
10-10    for one year or until a subsequent uniform election date if the
10-11    temporary directors determine that there is not sufficient time to
10-12    comply with the requirements of law or if the temporary directors
10-13    determine that it is in the best interest of the district to
10-14    maintain the temporary directors in place for a period of not more
10-15    than an additional 12 months.
10-16          (c)  At the election held to replace the temporary directors,
10-17    three directors shall be elected at large from the area within the
10-18    boundaries of the Comanche County Hospital District as those
10-19    boundaries existed on January 1, 2001, and three directors shall be
10-20    elected at large from the area within the boundaries of the DeLeon
10-21    Hospital District as those boundaries existed on January 1, 2001.
10-22    The directors elected shall serve three-year terms [One director
10-23    shall be elected from each of Commissioners Precincts Numbers 1, 2,
10-24    3, and 4 of Comanche County as those boundaries existed on August
10-25    10, 1992, and as those precincts are described by Section 3.01 of
10-26    this Act, exclusive of that portion of any precinct that is in the
 11-1    South Eastland County Hospital District, and one director shall be
 11-2    elected from the district at large].
 11-3          (d)  At the initial election of directors following creation
 11-4    of the Comanche County Consolidated [Leon Valley] Hospital
 11-5    District, the three candidates [candidate] receiving the highest
 11-6    number of votes from the area within the boundaries of the Comanche
 11-7    County Hospital District as those boundaries existed on January 1,
 11-8    2001, and the three candidates receiving the highest number of
 11-9    votes from the area within the boundaries of the DeLeon Hospital
11-10    District as those boundaries existed on January 1, 2001, shall be
11-11    the initial elected directors of the district [each commissioners
11-12    precinct is the director for that precinct and the candidate
11-13    receiving the highest number of votes from the district at large is
11-14    the director for the district at large].
11-15          (e)  The directors elected at the initial election of
11-16    directors following creation of the Comanche County Consolidated
11-17    [Leon Valley] Hospital District shall each [draw lots to determine
11-18    which three directors shall] serve a term of three years [one-year
11-19    terms and which two directors shall serve two-year terms].
11-20          (f)  On or before the date the terms of the directors elected
11-21    at the initial election expire, the board shall determine and adopt
11-22    a procedure for the election of six new directors either at large
11-23    or by place.  The procedure must provide for appropriate
11-24    representation of the residents of the Comanche County Consolidated
11-25    Hospital District.
11-26          SECTION 3.05.  Subsections (a) and (b), Section 3.05, Chapter
 12-1    132, Acts of the 74th Legislature, Regular Session, 1995, are
 12-2    amended to read as follows:
 12-3          (a)  The first directors elected under the procedure adopted
 12-4    under Section 3.04(f) of this Act shall be elected at [After the
 12-5    initial election of directors following creation,] an election
 12-6    [shall be] held [each year] on the first Saturday in May at the end
 12-7    of the three-year terms of the initial elected board of directors.
 12-8    The six directors elected at that election shall draw lots to
 12-9    determine which two directors shall serve one-year terms, which two
12-10    directors shall serve two-year terms, and which two directors shall
12-11    serve three-year terms.  All subsequent elections shall be held
12-12    each year on the first Saturday in May, with two directors being
12-13    elected, each to a three-year term[, and the appropriate number of
12-14    successor directors shall be elected for two-year terms].
12-15          (b)  Notice of each election shall be published in a
12-16    newspaper of general circulation in the district one time, not
12-17    earlier than the 30th day or later than the 10th day [at least 36
12-18    days] before the date of the election.  Any person desiring to have
12-19    the person's name printed on the ballot as a candidate for director
12-20    shall file an application with the secretary of the board of
12-21    directors.  The application shall be filed with the secretary at
12-22    least 31 days before the date of the election.  [The application
12-23    must specify the commissioners precinct the candidate wishes to
12-24    represent or that the candidate wishes to represent the district at
12-25    large.]
12-26          SECTION 3.06.  Section 3.06, Chapter 132, Acts of the 74th
 13-1    Legislature, Regular Session, 1995, is amended to read as follows:
 13-2          Sec. 3.06.  A person may not be appointed or elected as a
 13-3    member of the temporary, initial, or permanent board of directors
 13-4    unless the person is a resident of the district and[,] a qualified
 13-5    voter[, and if elected from a commissioners precinct, a resident of
 13-6    the precinct as the precinct is described by Section 3.01 of this
 13-7    Act].  Neither the administrator nor any other employee of the
 13-8    district is eligible to serve as a director.
 13-9          SECTION 3.07.  Subsection (a), Section 3.08, Chapter 132,
13-10    Acts of the 74th Legislature, Regular Session, 1995, is amended to
13-11    read as follows:
13-12          (a)  The board of directors, [both] temporary, initial, and
13-13    permanent, shall organize by electing one of the members as
13-14    president and one as vice president.  A secretary, who need not be
13-15    a director, shall also be elected.  Officers shall be elected for a
13-16    term of one year and vacancies shall be filled for the unexpired
13-17    term by the board of directors.
13-18          SECTION 3.08.  Subsection (a), Section 3.09, Chapter 132,
13-19    Acts of the 74th Legislature, Regular Session, 1995, is amended to
13-20    read as follows:
13-21          (a)  The board of directors shall manage, control, and
13-22    administer the hospital system and the business of and all funds
13-23    and resources of the district, but operating, depreciation, or
13-24    building reserves may not be invested in any funds or securities
13-25    other than those specified in Chapter 2256, Government Code
13-26    [Articles 836 and 837, Revised Statutes].
 14-1          SECTION 3.09.  Subsection (e), Section 3.11, Chapter 132,
 14-2    Acts of the 74th Legislature, Regular Session, 1995, is amended to
 14-3    read as follows:
 14-4          (e)  Notice of a bond election shall be given as provided in
 14-5    Section 1251.003, Government Code [Article 704, Revised Statutes],
 14-6    and shall be conducted in accordance with the Election Code, except
 14-7    as modified by the provisions of this Act.
 14-8          SECTION 3.10.  Subsections (c) and (d), Section 3.12, Chapter
 14-9    132, Acts of the 74th Legislature, Regular Session, 1995, are
14-10    amended to read as follows:
14-11          (c)  If the refunding bonds are to be sold and the proceeds
14-12    from the bonds are to be applied to the payment of any outstanding
14-13    indebtedness, the refunding bonds shall be issued and payments made
14-14    in the manner specified by Chapter 1207, Government Code [503, Acts
14-15    of the 54th Legislature, Regular Session, 1955 (Article 717k,
14-16    Vernon's Texas Civil Statutes)].
14-17          (d)  Refunding bonds shall be issued in conformity with
14-18    Chapter 1207, Government Code [784, Acts of the 61st Legislature,
14-19    Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
14-20    Statutes)].
14-21          SECTION 3.11.  Subsection (a), Section 3.13, Chapter 132,
14-22    Acts of the 74th Legislature, Regular Session, 1995, is amended to
14-23    read as follows:
14-24          (a)  Bonds issued by the district must:
14-25                (1)  mature not later than the 40th anniversary of the
14-26    date of issuance;
 15-1                (2)  be executed in the name of the hospital district
 15-2    and on the district's behalf by the president of the board and
 15-3    countersigned by the secretary as provided by Chapter 618,
 15-4    Government Code, as added by Chapter 227, Acts of the 76th
 15-5    Legislature, Regular Session, 1999 [204, Acts of the 57th
 15-6    Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas
 15-7    Civil Statutes)];
 15-8                (3)  bear a rate of interest that does not exceed the
 15-9    amount prescribed by Chapter 1204, Government Code [3, Acts of the
15-10    61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
15-11    Texas Civil Statutes)]; and
15-12                (4)  be subject to the same requirements in the manner
15-13    of approval by the attorney general and registration by the
15-14    comptroller as provided for approval and registration of bonds
15-15    issued by a county.
15-16                        ARTICLE 4.  EFFECTIVE DATE
15-17          SECTION 4.01.  This Act takes effect immediately if it
15-18    receives a vote of two-thirds of all the members elected to each
15-19    house, as provided by Section 39, Article III, Texas Constitution.
15-20    If this Act does not receive the vote necessary for immediate
15-21    effect, this Act takes effect September 1, 2001.