79R6473 KEG-F
By: Gonzalez Toureilles H.B. No. 3533
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the Karnes County Hospital
District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 3, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 3. The district authorized to be created by this Act is
charged with the responsibility of establishing a hospital or a
hospital system within its boundaries to furnish hospital and
medical care to the residents of the district. A [After this
district is created as provided in Section 4 of this Act, no other]
municipality or political subdivision of this state other than the
district may not impose a tax [may levy taxes] or issue bonds or
other obligations of indebtedness for purpose of providing hospital
service or medical care within the district. This district shall
provide all necessary hospital and medical care for the needy
inhabitants of the district.
SECTION 2. Section 5, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 5. (a) The [At such time as the creation of the]
district is governed by a board of seven directors.
(a-1) Directors [approved and the returns of the election
officially canvassed, the commissioners court shall convene and
appoint seven persons as directors of the district and shall
designate the length of their terms. Four of the appointed persons
shall serve until the first Saturday in April next following, and
three persons so appointed shall serve until the first Saturday in
April of the following year. Successors shall be elected by vote of
the electors of the entire district for two-year terms at elections
held annually on the first Saturday in April. Beginning with the
election year 1973, the directors] shall be elected at large by
place. To be eligible to hold office on the board, a person must be
a resident of the place for which the person is elected, as
designated by the following political subdivisions[, and the person
elected shall be a resident of the designated subdivision in the
district as follows]:
(1) place one, [composed of the area within the
presently existing] Falls City Common School District;
(2) place two, [composed of the area within the
presently existing] Runge Independent School District and Nordheim
Independent School District;
(3) places three and four, [composed of the area
within the presently existing] Karnes City Independent School
District and Nixon Independent School District; and
(4) places five, six, and seven, [composed of the
area within the presently existing] Kenedy Independent School
District, Pawnee Independent School District, and Pettus
Independent School District.
(a-2) A regular election for directors shall be held on the
May uniform election date under Section 41.001, Election Code, each
year. Directors from places one, two, three, and four shall be
elected in odd-numbered years [1973 and biennially thereafter].
Directors from places five, six, and seven shall be elected in
even-numbered years [1974 and biennially thereafter].
(a-3) Notice of each such election shall be published in a
newspaper or newspapers which individually or collectively provide
general circulation in the district in accordance with Section
4.003, Election Code [one time at least 30 days prior to the date of
the election]. Any person desiring to have the person's [his] name
printed on the ballot as a candidate for director shall file an
application with the secretary of the board of directors in
accordance with Chapter 144, Election Code [a petition signed by at
least 10 qualified property taxpaying electors asking that his name
be printed on the ballot and designating the place number for which
he is a candidate. Such petition shall be filed with the secretary
at least 30 days prior to the date of the election].
(a-4) Vacancies in office shall be filled for the unexpired
term by the remainder of the directors.
(a-5) Each member of the board of directors shall execute a
good and sufficient bond for $5,000 payable to the [said] district
conditioned upon the faithful performance of the director's [his]
duties and each bond shall be purchased at the expense of the
district. All members of the board of directors shall execute the
constitutional oath of office.
(b) No person shall be appointed or elected as a member of
the board of directors unless the person [he] is a resident of the
place for [district subdivision from] which the person [he] is a
candidate and is a qualified voter. Neither the administrator, an
employee of the district, nor a member of the medical staff of the
hospital is [shall be] eligible to serve as a director.
(c) The board of directors shall organize by electing one of
their number as president and one of their number as vice president.
A secretary, who need not be a director, shall also be elected.
Officers shall be elected for a term of one year and vacancies shall
be filled for the unexpired term by the board of directors.
(d) Any four members of the board of directors shall
constitute a quorum and a concurrence of four shall be sufficient in
all matters pertaining to the business of the district.
(e) All members of the board of directors and officers shall
serve without compensation, but may be reimbursed for actual
expenses incurred in the performance of their official duties upon
the approval of such expenses by the board of directors and so
reported in the minute book of the district or other records of the
district.
SECTION 3. Section 6, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 6. (a) The board of directors shall manage, control and
administer the hospital system and all funds and resources of the
district, but in no event shall any operating, depreciation or
building fund reserves be invested in any funds or securities other
than those specified by Chapter 2256, Government Code [in Articles
836 or 837, Revised Civil Statutes of Texas, 1925, as amended].
(b) The board is given full authority to establish rules and
regulations relating to seniority of employees of the district
(including a retirement plan based thereon) and may give effect to
previous years of service for those employees who have been
continuously employed in the operation or management of the
hospital facilities acquired or constructed by the district.
(c) The district, through its board of directors, shall have
the power and authority to sue and be sued, and shall be entitled to
all causes of action and defenses enjoyed by similar authorities,
to promulgate rules and regulations governing the operation of the
hospital, hospital system, its staff and its employees.
(d) The board of directors may appoint a qualified person to
be known as the administrator [or manager] of the hospital district
[and may in its discretion appoint an assistant or assistants to the
administrator or manager]. Such administrator [or manager and
assistant administrator or manager, if any,] shall serve at the
will of the board and shall receive such compensation as may be
fixed by the board. [The administrator or manager shall, upon
assuming his duties, execute a bond payable to the hospital
district in an amount to be set by the board of directors, in no
event less than $5,000 conditioned that he shall perform the duties
required of him, and containing such other conditions as the board
may require.] The administrator [or manager] shall supervise all
the work and activities of the district and shall have general
direction of the affairs of the district, subject to the
limitations as may be prescribed by the board.
(e) The board of directors shall have the authority to
appoint to or dismiss from the staff physicians, dentists, and
podiatrists as the board determines are [such doctors as it may be
deemed] necessary for the efficient operation of the district, and
may provide for temporary appointments to the staff if warranted by
circumstances.
(f) The board may delegate to the administrator [or manager]
the authority to employ technicians, nurses, and employees of the
district.
(g) The [Such] board shall be authorized to contract with
any other political subdivision or governmental agency whereby the
district will provide investigatory or other services as to the
hospital, or welfare needs of the inhabitants of the district and
shall be authorized to contract with any county or incorporated
municipality located outside its boundaries for the
hospitalization of the sick, diseased, or injured persons of any
such county or municipality, and shall have the authority to
contract with the State of Texas or agencies of the federal
government for the hospital treatment of sick, diseased or injured
persons.
SECTION 4. Chapter 591, Acts of the 61st Legislature,
Regular Session, 1969, is amended by adding Section 6A to read as
follows:
Sec. 6A. (a) The district may create and sponsor a nonprofit
corporation under the Business Organizations Code and may
contribute money to or solicit money for the corporation.
(a-1) On or before December 31, 2009, the district may
create and sponsor a nonprofit corporation under the Texas
Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
Texas Civil Statutes) or the Business Organizations Code, as
applicable, and may contribute money to or solicit money for the
corporation.
(b) A corporation created under this section may use money
contributed by the district only to provide health care or other
services the district is authorized to provide under this Act.
(c) The corporation may invest the corporation's money in
any manner in which the district may invest the district's money,
including investing money as authorized by Chapter 2256, Government
Code.
(d) The board shall establish controls to ensure that the
corporation uses its money as required by this section.
(e) This subsection and Subsection (a-1) expire December
31, 2009.
SECTION 5. Section 7, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 7. (a) The district shall be operated on the basis of a
fiscal year established by the board. The fiscal year may not be
changed:
(1) during a period in which revenue bonds of the
district are outstanding; or
(2) more than once in a 24-month period.
(b) The board [commencing on July 1 of each year and ending
on June 30 of the following year, and it] shall cause an annual
independent audit to be made of the financial condition of the
[said] district, which, together with other records of the
district, shall be open to inspection at the principal office of the
district[, such audit to be made covering such fiscal year, and the
same shall be filed at the office of the district as soon as it is
completed].
(c) The administrator [or manager] shall prepare an annual
budget for approval by the board of directors. The budget shall
[also] contain a complete financial statement of the district
showing:
(1) all outstanding obligations of the district;
(2) [,] the cash on hand to the credit of each [and
every] fund of the district;
(3) [,] the funds received from all sources during the
previous year;
(4) [,] the funds available from all sources during
the ensuing year, with balances expected at end of the year in which
the budget is being prepared;
(5) [, and] estimated revenues and balances available
to cover the proposed expenditures and disbursements; and
(6) the estimated receipts and collections for the
following fiscal year.
(d) The board shall hold a [A] public hearing on the annual
budget [shall be held by the board of directors after notice of such
hearing has been published one time at least 10 days before the date
set therefor]. Notice of the budget hearing shall be published one
time not later than 10 days before the date of the hearing in a
newspaper or newspapers which individually or collectively provide
general circulation in the hospital district. Any resident
[property taxpayer] of the district shall have the right to be
present and participate at the [in said] hearing. At the conclusion
of the hearing, the budget, as proposed by the administrator, shall
be acted upon by the board of directors. The board of directors
shall have authority to make such changes in the proposed budget as
in its judgment the law warrants and the interest of the taxpayers
demand.
(e) No expenditure may be made for any expense not included
in the annual budget or an amendment thereto.
(f) The annual budget may be amended from time to time as the
circumstances may require, but the annual budget, and all
amendments thereto, shall be approved by the board of directors.
(g) As soon as practicable after the close of each fiscal
year, the administrator [or manager] shall prepare for the board a
full sworn statement of all moneys belonging to the district and a
full account of the disbursements of same.
SECTION 6. Section 8, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 8. (a) The board of directors shall have the power and
authority to issue and sell general obligation [its] bonds in the
name and upon the faith and credit of such hospital district for the
purchase, construction, acquisition, repair or renovation of
buildings, and improvements and equipping the same for hospital
system purposes, and for any or all of such purposes. At the time of
the issuance [issuances] of any general obligation bonds by the
district, a tax shall be imposed [levied] by the board sufficient to
create an interest and sinking fund to pay the interest on and
principal of said bonds as same mature, providing such tax,
together with any other taxes levied for said district shall not
exceed the limit approved by the voters at the election authorizing
the imposition of taxes [rate of tax voted under the provisions of
Section 4 of this Act]. General obligation bonds may not [No bonds
shall] be issued by the [such hospital] district [except refunding
bonds] until authorized by a majority of the qualified voters
[property taxpaying electors] of the district voting at an election
held [called] for that [such] purpose. The order for the bond
election and the publication of notice for the election must be
provided in accordance with Chapter 1251, Government Code. The
election [shall specify the date of the election, the amount of
bonds to be authorized, the maximum rate of interest they are to
bear, the place or places where the election shall be held, the
presiding judge and alternate judge for each voting place, and
provide for clerks as in county elections. Except as to a bond
election held pursuant to the provisions of Subsection (b) of this
section, where notice shall be given as provided in Section 4,
notice of any bond election shall be given as provided in Article
704, Revised Civil Statutes of Texas, 1925, as amended, and] shall
be conducted in accordance with the general laws of this state
[Texas] pertaining to general elections, except as modified by the
provisions of this Act.
(b) [A separate proposition may be submitted at the election
for the creation or confirmation of the district as to whether the
board of directors, in the event the district is created, shall be
authorized to issue bonds for any one or more of the foregoing
purposes. The proposition, if submitted, shall specify the purpose
for which the bonds are to be issued, the maximum amount of bonds
then proposed to be issued, the maximum maturity, and the maximum
interest rate.
[(c)] Refunding bonds of the district may be issued for the
purpose of refunding and paying off any outstanding indebtedness
issued or assumed. Such refunding bonds may be sold and the
proceeds therefrom applied to the payment of outstanding
indebtedness, or may be exchanged in whole or in part for not less
than a like principal amount of such outstanding indebtedness
provided that, if refunding bonds are to be exchanged for a like
amount of said outstanding indebtedness, such refunding bonds shall
bear interest at the same or lower rate than borne by the debt
refunded, unless it is shown mathematically that a saving will
result in the total amount of interest to be paid on said refunding
bonds, and provided further that if such refunding bonds are to be
sold and the proceeds thereof applied to the payment of any such
outstanding indebtedness, same shall be issued and payments made in
accordance with Chapter 1207, Government Code [the manner specified
by Chapter 503, Acts of the 54th Legislature, Regular Session,
1955, as amended (Article 717k, Vernon's Texas Civil Statutes)].
(c) [(d)] Bonds of the district must mature not later than
the 40th anniversary of the date of issuance and must bear a rate of
interest that does not exceed the amount permitted by Chapter 1204,
Government Code. Bonds [shall bear interest not to exceed seven
percent a year, shall mature within 40 years of their date,] shall
be executed in the name of the hospital district and on [in] its
behalf by the president of the board and countersigned by the
secretary in the manner provided by Chapter 618, Government Code
[Chapter 204, Acts of the 57th Legislature, Regular Session, 1961,
as amended (Article 717j-1, Vernon's Texas Civil Statutes)], and
shall be subject to the same requirements in the matter of approval
by the Attorney General of Texas and registration by the
Comptroller of Public Accounts of the State of Texas as are by law
provided for approval and registration of bonds issued by counties.
Upon the approval of such bonds by the attorney general and
registration by the comptroller, the same shall be incontestable
for any cause.
SECTION 7. Section 9, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 9. The [In addition to the power to issue bonds payable
from taxes levied by the district, as contemplated by the preceding
section, the] board of directors is [further] authorized to issue,
and to refund any previously issued, revenue bonds for purchasing,
constructing, acquiring, repairing, equipping, or renovating
buildings and improvements for hospital system purposes, and for
acquiring sites therefor, such bonds to be payable from and secured
by a pledge of all or any part of the revenues of the district to be
derived from the operation of its hospital or hospitals, and such
bonds may be additionally secured by a mortgage or deed of trust
lien on any part or all of its properties. Such bonds shall be
issued in the manner and in accordance with the procedures and
requirements specified for the issuance of revenue bonds [bond] by
county hospital authorities in Sections 264.042, 264.043, and
264.046-264.049, Health and Safety Code [8, 10, 11, 12, and 13 of
Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r,
Vernon's Texas Civil Statutes)].
SECTION 8. Chapter 591, Acts of the 61st Legislature,
Regular Session, 1969, is amended by adding Sections 9A and 9B to
read as follows:
Sec. 9A. (a) In addition to the power to issue bonds payable
solely from and secured by taxes imposed by the district as
authorized by Section 8 of this Act and the power to issue bonds
payable from and secured by revenues and other sources as
authorized by Section 9 of this Act, the board of directors may
provide for the security and payment of district bonds from a pledge
of a combination of:
(1) ad valorem taxes as authorized by Section 8 of this
Act; and
(2) the revenues and other sources authorized by
Section 9 of this Act.
(b) Bonds, other than refunding bonds, that the board
proposes to secure wholly or partly by an ad valorem tax must be
approved at an election held in the district in accordance with
Section 8 of this Act.
Sec. 9B. (a) The district may use the proceeds of bonds
described by Section 8, 9, or 9A of this Act to pay:
(1) any expense the board of directors determines is
reasonable and necessary to effect the issuance, sale, and delivery
of the bonds;
(2) interest on the bonds during a period of
acquisition or construction of a project or facility to be provided
through the bonds;
(3) operation and maintenance costs of a project or
facility to be provided through the bonds during an estimated
period of acquisition or construction and for one year after the
project or facility is acquired or constructed;
(4) costs related to the financing of the bond funds,
including debt service reserve and contingency funds;
(5) costs related to the issuance of the bonds;
(6) costs related to the acquisition of land or an
interest in land for a project or facility to be provided through
the bonds; and
(7) construction costs of a project or facility to be
provided through the bonds, including the payment of related
professional services and expenses.
(b) A "period of acquisition or construction," as that term
is used in Subsection (a), may not exceed five years.
SECTION 9. Section 10, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 10. (a) The board of directors is hereby given complete
discretion as to the type of buildings, both as to number and
location, required to establish and maintain an adequate hospital
system. The hospital system may include:
(1) a hospital, clinic, health facility, extended care
facility, outpatient facility, rehabilitation or recreation
facility, pharmacy, medical laboratory, dental laboratory,
physicians' office building, laundry facility, administrative
facility, or other building related to a health facility or system;
(2) a single or multi-unit housing facility for
medical staff, nurses, interns, other employees of a health
facility or system, patients of a health facility, or relatives of
patients admitted for treatment or care in a health facility;
(3) a support facility related to a hospital project,
such as an office building, parking lot or other parking structure,
or a maintenance, safety, or utility facility, and any equipment
related to the support facility; and
(4) any other facilities determined by the board to be
[facilities for domiciliary care of the sick, wounded, and injured,
facilities for outpatient clinic or clinics, dispensaries,
facilities for geriatric domiciliary care, convalescent home
facilities, necessary nurses domiciliaries and training centers,
blood banks, community mental health centers, and research centers
or laboratories, and any other facilities deemed] necessary for
hospital or medical care [by the directors].
(b) The district, through its board of directors, is
[further] authorized to enter into an operating or management
contract with regard to its facilities or a part thereof, or may
lease all or part of its buildings and facilities upon terms and
conditions considered to be to the best interest of its
inhabitants, provided that in no event shall any lease be for a
period in excess of 25 years from the date entered.
(c) The district is authorized [shall be empowered] to sell
or otherwise dispose of any property, real or personal, or
equipment of any nature upon terms and conditions found by the board
to be in the best interest of its inhabitants.
SECTION 10. Section 11, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 11. The board of directors of such district shall have
the power to prescribe the method and manner of making purchases and
expenditures by and for such hospital district, and shall also be
authorized to prescribe all accounting and control procedures. All
contracts for construction or purchases involving an [the]
expenditure in excess of the amount provided by Section 271.024,
Local Government Code, must comply with the competitive bidding
requirements provided by Subchapter B, Chapter 271, Local
Government Code [of more than $2,000 may be made only after
advertising in the manner provided by Chapter 163, Acts of the 42nd
Legislature, Regular Session, 1931, as amended (Article 2368a,
Vernon's Texas Civil Statutes)]. The provisions of Chapter 2253,
Government Code [Article 5160, Revised Civil Statutes of Texas,
1925, as amended], relating to performance and payment of bonds
shall apply to construction contracts let by the district. The
district may acquire equipment for use in its hospital system and
mortgage or pledge the property so acquired as security for the
payment of the purchase price, but any such contract shall provide
for the entire obligation of the district to be retired within five
years from the date of the contract. Except as permitted in the
preceding sentence and as permitted by Sections 8, [and] 9, and 9A,
the district may incur no obligation payable from any revenues of
the district, taxes or otherwise except those on hand or to be on
hand within the then current and following fiscal year of the
district.
SECTION 11. Section 15, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 15. (a) The district shall have the right and power of
eminent domain for the purpose of acquiring by condemnation any and
all property of any kind and character in fee simple, or any lesser
interest therein, within the boundaries of the district necessary
to the powers, rights and privileges conferred by this Act, in the
manner provided by Chapter 21, Property Code.
(b) The district is not required to deposit in the trial
court money or a bond as provided by Section 21.021, Property Code
[the general law with respect to condemnation by counties, provided
that the district shall not be required to make deposits in the
registry of the trial court of the sum required by paragraph 2 of
Article 3268, Revised Civil Statutes of Texas, 1925, as amended, or
to make bond as therein provided].
(c) In condemnation proceedings being prosecuted by the
district, the district shall not be required to pay in advance or
give bond or other security for costs in the trial court, nor to
give any bond otherwise required for the issuance of a temporary
restraining order or a temporary injunction nor to give bond for
costs or for supersedeas on any appeal or writ of error.
SECTION 12. Section 16, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 16. (a) The Tax Code governs the appraisal,
assessment, and collection of district taxes.
(b) The board may provide for the appointment of a tax
assessor-collector for the district or may contract for the
assessment and collection of taxes as provided by the Tax Code.
[The directors shall have the authority to levy taxes for the entire
year in which the district is established as the result of the
election herein provided. All taxes of the district shall be
assessed and collected on county tax values as provided in
Subsection (1) hereof unless the directors, by majority vote, elect
to have taxes assessed and collected by its own tax
assessor-collector under Subsection (2) hereof. Any such election
may be made prior to December 1 annually and shall govern the manner
in which taxes are thereafter assessed and collected, until changed
by a similar resolution.
[(1) Under this subsection, district taxes shall be
assessed and collected on county tax values in the same manner as
provided by law with relation to county taxes. The tax
assessor-collector of the county in which said district is situated
shall be charged and required to accomplish the assessment and
collection of all taxes levied by and on behalf of the district.
The assessor-collector of taxes shall charge and deduct from
payments to the hospital district an amount as fees for assessing
and collecting the taxes at a rate of not exceeding two percent of
the amounts collected as may be determined by the board of
directors, but in no event shall the amount paid exceed $5,000 in
any one calendar year. Such fees shall be deposited in the officers
salary fund of the county and reported as fees of office of the
county tax assessor-collector. Interest and penalties on taxes
paid to the hospital district shall be the same as in the case of
county taxes. Discounts shall be the same as allowed by the county.
The residue of tax collections after deduction of discounts and
fees for assessing and collecting shall be deposited in the
district's depository. The bond of the county tax
assessor-collector shall stand as security for the proper
performance of his duties as assessor-collector of the district;
or, if in the judgment of the district board of directors it is
necessary, additional bond payable to the district may be required.
In all matters pertaining to the assessment, collection and
enforcement of taxes for the district, the county tax
assessor-collector shall be authorized to act in all respects
according to the laws of the State of Texas relating to state and
county taxes.
[(2) Under this subsection, taxes shall be assessed
and collected by a tax assessor-collector appointed by the
directors who shall also fix the terms of his employment,
compensation, and requirement for bond to assure the faithful
performance of his duties, but in no event shall such bond be for
less than $5,000. The directors shall also annually appoint five
persons to serve as a board of equalization and shall fix their
compensation. Each member of the board and the tax assessor shall
be residents of the district and own real property subject to
hospital district taxation, and each shall have the same duties,
including the obligation to execute the oath of office, as required
by county officials exercising such powers and duties. Except as in
this law provided to the contrary, all provisions of Title 122,
Revised Civil Statutes of Texas, 1925, as amended, shall apply to
the district.]
SECTION 13. Section 18, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is amended to read as follows:
Sec. 18. The district shall provide health care and
treatment to individuals determined to be indigent in accordance
with policies and procedures adopted by the board of directors.
[Whenever a patient residing within the district has been admitted
to the facilities thereof, the administrator or manager may cause
inquiry to be made as to his circumstances and those of the
relatives of such patient legally liable for his support. If he
finds that such patient or said relatives are able to pay for his
care and treatment in whole or in part, an order shall be made
directing such patient or said relatives to pay to the hospital
district for the care and support of such patient a specified sum
per week in proportion to their financial ability. The
administrator or manager shall have power and authority to collect
such sums from the estate of the patient or his relatives legally
liable for his support in the manner provided by law for collection
of expenses in the last illness of a deceased person. If the
administrator or manager finds that such patient or said relatives
are not able to pay either in whole or in part for his care and
treatment in such hospital, same shall become a charge upon the
hospital district as to the amount of the inability to pay. Should
there be any dispute as to the ability to pay or doubt in the mind of
the administrator or manager, the board of directors shall hear and
determine same after calling witnesses, and shall make such order
or orders as may be proper. Appeals from the final order of the
board shall lie to the district court. The substantial evidence
rule shall apply.]
SECTION 14. Chapter 591, Acts of the 61st Legislature,
Regular Session, 1969, is amended by adding Section 25 to read as
follows:
Sec. 25. (a) The district may be dissolved only if the
dissolution is approved by a majority of the registered voters of
the district voting in an election held for that purpose.
(b) The board may order an election on the question of
dissolving the district and disposing of the district's assets and
obligations. The board shall order an election if the board
receives a petition requesting an election that is signed by at
least 15 percent of the registered voters in the district.
(c) An election ordered under this section shall be held not
later than the 60th day after the date the election is ordered.
Section 41.001, Election Code, does not apply to an election
ordered under this section.
(d) The order calling an election under this section must
state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(e) The board shall give notice of the election by
publishing a substantial copy of the election order in a newspaper
with general circulation in the district once a week for two
consecutive weeks. The first publication must appear not later
than the 35th day before the date set for the election.
(f) The ballot for the election must be printed to permit
voting for or against the proposition: "The dissolution of the
Karnes County Hospital District."
(g) If a majority of the votes in the election favor
dissolution, the board shall find that the district is dissolved.
If a majority of the votes in the election do not favor dissolution,
the board shall continue to administer the district, and another
election on the question of dissolution may not be held before the
first anniversary of the most recent election to dissolve the
district.
(h) If a majority of the votes in the election favor
dissolution, the board shall:
(1) transfer the land, buildings, improvements,
equipment, and other assets that belong to the district to Karnes
County or another governmental entity in Karnes County; or
(2) administer the property, assets, and debts until
all money has been disposed of and all district debts have been paid
or settled.
(i) If the district transfers the land, buildings,
improvements, equipment, and other assets to Karnes County or
another governmental entity, the county or entity assumes all debts
and obligations of the district at the time of the transfer and the
district is dissolved.
(j) If the district does not transfer the land, buildings,
improvements, equipment, and other assets to Karnes County or
another governmental entity, the board shall administer the
property, assets, and debts of the district until all funds have
been disposed of and all district debts have been paid or settled,
at which time the district is dissolved.
(k) After the board finds that the district is dissolved,
the board shall:
(1) determine any remaining debt owed by the district;
and
(2) impose on the property included in the district's
tax rolls a tax that is in proportion of the debt to the property
value.
(l) When all outstanding debts and obligations of the
district are paid, the board shall order the secretary to return to
each district taxpayer the taxpayer's pro rata share of all unused
tax money.
(m) A taxpayer may request that the taxpayer's share of
surplus tax money be credited to the taxpayer's county taxes. If a
taxpayer requests the credit, the board shall direct the secretary
to transmit the money to the county tax assessor-collector.
(n) After the district has paid all its debts and has
disposed of all its assets and money as prescribed by this section,
the board shall file a written report with the Commissioners Court
of Karnes County summarizing the board's actions in dissolving the
district.
(o) Not later than the 10th day after the date it receives
the report and determines that the requirements of this section
have been fulfilled, the Commissioners Court of Karnes County shall
enter an order dissolving the district and releasing the board of
directors of the district from any further duty or obligation.
SECTION 15. Section 4, Chapter 591, Acts of the 61st
Legislature, Regular Session, 1969, is repealed.
SECTION 16. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2005.