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AN ACT
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relating to the powers and duties of the Starr County Hospital |
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District of Starr County, Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 4, Chapter 118, Acts of the 63rd |
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Legislature, Regular Session, 1973, is amended to read as follows: |
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Sec. 4. (a) All powers of the district shall be exercised |
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by a board of five trustees. Each trustee shall serve for two years |
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and until a [his] successor shall be elected and qualified. To |
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qualify for election as a trustee, a person must be at least 21 |
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years of age, have been a resident of the district for at least two |
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years and of the commissioners precinct from which the person [he] |
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is to be elected, unless the person [he] is running at-large, for at |
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least two years, and be a qualified voter [property taxpaying
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elector]. Each trustee shall subscribe to the oath of office and |
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shall execute a good and sufficient commercial bond for $1,000 |
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payable to the district, conditioned upon the faithful performance |
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of the trustee's [his] duties. The bond may be paid from funds of |
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the district. The board of trustees of the district shall serve |
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without compensation but may be reimbursed for actual expenses |
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incurred by them in the performance of their official duties, upon |
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the approval of such expenses by the board of trustees. A majority |
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of trustees shall constitute a quorum. |
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(b) [On the effective date of this Act, the Commissioners
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Court of Starr County shall appoint five persons to serve as
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temporary trustees. Each temporary trustee shall subscribe the
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constitutional oath of office.
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[(c) At the election to create the district, the voters of
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each commissioner's precinct in the proposed district shall receive
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a separate ballot to elect one trustee from their precinct to manage
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and control the affairs of the district, the ballot to be as
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prescribed by the commissioners court.
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[(d)] Any person who is qualified to serve on the board of |
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trustees and who desires to have the person's [his] name printed on |
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the ballot shall file an application with the secretary of the board |
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of trustees in accordance with Chapter 144, Election Code [his name
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with the commissioners court, specifying whether he is running from
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a precinct or at-large, at least 30 days prior to the date of the
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first election]. |
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(c) One trustee shall be elected from [(e) There shall be a
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balloting place in each precinct, to be designated by the
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commissioners court, and] each commissioner's precinct [shall
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elect one trustee from the resident qualified taxpaying electors of
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the precinct]. |
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[(f)] The fifth trustee shall be elected at-large, by a |
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majority vote of all the voters [electors] of the district. An |
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[(g) On the first Saturday in April, 1977, an election shall
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be held in the district to elect the members representing the
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odd-numbered precincts and the member-at-large, and on the first
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Saturday in April, 1978, an election shall be held in the district
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to elect members representing the even-numbered precincts in the
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district. After these elections, an] election shall be held each |
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year on the May uniform election date as provided by Section 41.001, |
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Election Code, and the [first Saturday in April to elect members to
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the board with] members representing odd-numbered precincts and the |
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member-at-large shall be [being] elected in odd-numbered years and |
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the members representing the even-numbered precincts shall be |
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[being] elected in even-numbered years. The elections shall be |
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ordered by the board. Notice of the election shall be by |
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publication [at least twice] in a newspaper of general circulation |
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in the district in accordance with Section 4.003, Election Code[,
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and the first of such publications shall be at least 14 days prior
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to such election]. Any vacancy occurring in the board of trustees |
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shall be filled for the unexpired term by a majority of the |
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remaining trustees. |
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(d) [(h)] The board of trustees shall elect from its number |
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a president, a vice-president, and a secretary of the board of |
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trustees and of the district, and such other officers as in the |
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judgment of the board are necessary. The president shall preside |
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over meetings [be the chief executive officer] of the district [and
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the presiding officer of the board,] and shall have the same right |
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to vote as any other trustee. The vice-president shall perform all |
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duties and exercise all power conferred by this Act upon the |
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president when the president is absent or fails or declines to act. |
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The secretary shall keep and sign the minutes of the meetings of the |
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board of trustees; and in his absence at any board meeting a |
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secretary pro tem shall be named for that meeting who may exercise |
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all the duties and powers of the secretary for such meeting, and |
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sign the minutes at such meeting. The secretary shall be the |
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custodian of all minutes and records of the district[. The board
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shall select all necessary engineers, architects, attorneys,
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auditors, and other employees. The board shall adopt a seal for the
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district. The temporary or permanent trustees of the district
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shall have full right and authority to call the confirmation and tax
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election as provided by this Act and to take whatever actions are
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necessary to create the district, authorize the tax aforementioned,
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and authorize the tax bonds or refunding bonds of the district]. |
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(e) [(i)] The board of trustees may use district funds, |
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enter into agreements, and take other necessary action to recruit |
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or otherwise obtain physicians and other personnel for the |
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district's medical staff or for employment with the district, |
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including: |
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(1) advertising and marketing; |
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(2) paying recruitment expenses; |
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(3) paying travel and relocation expenses; |
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(4) providing guarantees, subsidies, loans, and |
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scholarships; |
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(5) sharing personnel; and |
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(6) authorizing a physician to use space in district |
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facilities or providing a rent subsidy to a physician. |
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(f) [(j)] The board of trustees may use district funds, |
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enter into agreements, and take other necessary action to conduct, |
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participate in, or assist health care education programs for the |
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public and for current or potential medical staff members or |
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employees. |
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SECTION 2. Subsection (g), Section 5, Chapter 118, Acts of |
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the 63rd Legislature, Regular Session, 1973, is amended to read as |
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follows: |
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(g) The board shall cause an annual audit to be made by an |
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independent public accountant of the books and records of the |
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district as soon as practicable after the close of each fiscal |
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year[, such audit to cover such fiscal year, and to be made by an
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independent public accountant]. Once each year, as soon as |
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practicable after the close of the fiscal year, the administrator |
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shall report to the board of trustees a full sworn statement of all |
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moneys belonging to the district and a full account of all |
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disbursements during the previous fiscal year [and choses in action
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received by such administrator and how disbursed or otherwise
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disposed of]. Such report shall show in detail the operations of |
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the district for the year. The board of trustees shall prepare a |
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budget showing: (1) the proposed expenditures and disbursements; |
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(2) the estimated receipts and collections for the next fiscal |
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year; and (3) the amount of taxes required to be levied and |
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collected during the next fiscal year to meet the proposed budget. |
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The board shall hold a public hearing on the proposed budget after |
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publication of notice in a newspaper of general circulation in the |
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district. The notice must be given at least once not less than 10 |
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days prior to the hearing. Any person who is a resident of the |
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district is entitled to appear at the hearing and be heard with |
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reference to any item in the proposed budget. The fiscal year of |
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the hospital district shall be established by the board. The fiscal |
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year may not be changed during a period in which revenue bonds of |
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the district are outstanding or more than once in a 24-month period |
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[from October 1 of each year to September 30 of the following year]. |
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SECTION 3. Chapter 118, Acts of the 63rd Legislature, |
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Regular Session, 1973, is amended by adding Section 5A to read as |
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follows: |
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Sec. 5A. (a) The district may create and sponsor a |
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nonprofit corporation under the Business Organizations Code and may |
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contribute money to or solicit money for the corporation. |
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(b) A corporation created under this section may use money |
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contributed by the district only to provide health care or other |
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services the district is authorized to provide under this Act. |
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(c) A corporation created under this section may enter into |
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a joint venture with any public or private entity or individual to |
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provide health care or other services the district is authorized to |
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provide under this Act. |
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(d) A corporation created under this section may invest the |
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corporation's money in any manner in which the district may invest |
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the district's money, including investing money as authorized by |
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Chapter 2256, Government Code. |
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(e) The board of trustees shall establish controls to ensure |
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that the corporation uses its money as required by this section. |
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SECTION 4. Subsections (a) and (c), Section 7, Chapter 118, |
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Acts of the 63rd Legislature, Regular Session, 1973, are amended to |
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read as follows: |
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(a) The board of directors shall have the power and |
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authority to issue and sell general obligation [its] bonds in the |
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name and upon the faith and credit of such hospital district for the |
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purchase, construction, acquisition, repair, or renovation of |
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buildings and improvements and equipping the same for district |
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[hospital] purposes, and for any or all of such purposes. At the |
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time of the issuance of any general obligation bonds by the district |
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a tax shall be levied by the board sufficient to create an interest |
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and sinking fund to pay the interest on and principal of said bonds |
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as same mature, providing such tax together with any other taxes |
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levied for said district shall not exceed 75 cents on each $100 |
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valuation of taxable property in any one year. General obligation |
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bonds may not [No bonds shall] be issued by the [such hospital] |
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district [except refunding bonds] until authorized by a majority of |
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the qualified voters [property taxpaying electors,] voting at an |
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election called for such purpose. The order for bond election and |
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the publication of notice for the election shall be provided in |
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accordance with Chapter 1251, Government Code. The election [shall
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specify the date of the election, the amount of bonds to be
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authorized, the maximum maturity thereof, the maximum rate of
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interest they are to bear, the place or places where the election
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shall be held, the presiding judge and alternate judge for each
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voting place, and provide for clerks as in county elections. Notice
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of any bond election shall be given as provided in Article 704,
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Revised Civil Statutes of Texas, 1925, as amended, and] shall be |
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conducted in accordance with the general laws of Texas pertaining |
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to general elections, except as modified by the provisions of this |
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Act. |
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(c) Bonds of the district must mature not later than the |
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40th anniversary of the date of issuance and must bear a rate of |
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interest that does not exceed the amount provided by Chapter 1204, |
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Government Code. Bonds [shall bear interest not to exceed six
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percent a year, shall mature within 40 years of their date,] shall |
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be executed in the name of the hospital district and on [in] its |
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behalf by the president of the board and countersigned by the |
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secretary in the manner provided by Chapter 618, Government Code |
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[204, Acts of the 57th Legislature, Regular Session, 1961, as
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amended (Article 717j-1, Vernon's Texas Civil Statutes)], and shall |
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be subject to the same requirements in the matter of approval by the |
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Attorney General of Texas and registration by the Comptroller of |
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Public Accounts of the State of Texas as are provided by Chapter |
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1202, Government Code [by law provided for approval and
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registration of bonds issued by counties. Upon the approval of such
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bonds by the attorney general and registration by the comptroller,
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the same shall be incontestable for any cause]. |
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SECTION 5. Chapter 118, Acts of the 63rd Legislature, |
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Regular Session, 1973, is amended by adding Sections 7A, 7B, and 7C |
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to read as follows: |
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Sec. 7A. (a) The board of trustees may issue and refund any |
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previously issued revenue bonds to: |
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(1) purchase, construct, acquire, repair, equip, or |
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renovate buildings and improvements for district purposes; and |
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(2) acquire sites for district purposes. |
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(b) The bonds must be payable from and secured by a pledge of |
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all or any part of the revenue derived from the operation of the |
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district's hospital or health care facilities. |
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(c) The bonds may be additionally secured by a mortgage or |
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deed of trust lien on all or part of district property. |
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(d) The bonds must be issued in the manner and in accordance |
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with the procedures and requirements prescribed by Sections |
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264.042, 264.043, and 264.046-264.049, Health and Safety Code, for |
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issuance of revenue bonds by county hospital authorities. |
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Sec. 7B. (a) In addition to the authority to issue general |
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obligation bonds under Section 7 of this Act and the authority to |
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issue revenue bonds under Section 7A of this Act, the board of |
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trustees may provide for the security and payment of district bonds |
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from a pledge of a combination of ad valorem taxes as authorized by |
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Section 7 of this Act and the revenue and other sources as |
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authorized by Section 7A of this Act. |
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(b) The board of trustees may issue bonds secured wholly or |
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partly by an ad valorem tax, other than refunding bonds, only if the |
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bonds are approved at an election held in the district in accordance |
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with Section 7 of this Act. |
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Sec. 7C. The district may use the proceeds of bonds issued |
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under Section 7, 7A, or 7B of this Act to pay: |
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(1) any expense the board of trustees determines is |
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reasonable and necessary to issue, sell, and deliver the bonds; |
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(2) interest payments on the bonds during a period of |
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acquisition or construction of a project or facility to be provided |
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through the bonds, not to exceed five years; |
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(3) costs related to the operation and maintenance of |
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a project or facility to be provided through the bonds: |
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(A) during an estimated period of acquisition or |
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construction, not to exceed five years; and |
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(B) for one year after the project or facility is |
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acquired or constructed; |
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(4) costs related to the financing of the bond funds, |
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including debt service reserve and contingency funds; |
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(5) costs related to the bond issuance; |
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(6) costs related to the acquisition of land or an |
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interest in land for a project or facility to be provided through |
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the bonds; and |
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(7) construction costs of a project or facility to be |
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provided through the bonds, including the payment of related |
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professional services and expenses. |
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SECTION 6. Section 10, Chapter 118, Acts of the 63rd |
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Legislature, Regular Session, 1973, is amended to read as follows: |
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Sec. 10. (a) The board of trustees annually may impose |
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property taxes in an amount not to exceed the limit approved by the |
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voters at the election authorizing the imposition of taxes. The Tax |
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Code governs the appraisal, assessment, and collection of district |
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taxes [of the district may contract with the Commissioners Court of
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Starr County or its tax assessor and collector in connection with
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the rendition, assessment, equalization, levying, and collecting
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of taxes and related matters so far as same are applicable and not
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in conflict with this Act, and likewise the tax rolls of Starr
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County shall be used by the district]. |
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(b) The board may provide for the appointment of a tax |
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assessor-collector for the district or may contract for the |
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assessment and collection of taxes as provided by the Tax Code [Not
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later than July 1 of each year the board of trustees shall levy the
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tax on all property within the district which is subject to taxation
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and shall immediately certify the rate to the tax assessor and
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collector of Starr County. The tax so levied shall be collected, on
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all property subject to district taxation, by the assessor and
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collector on the county tax values, and in the same manner and under
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the same conditions as the county taxes. The amount of the annual
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district tax may be included on the annual county statements mailed
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or sent out by the assessor and collector. The assessor and
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collector shall charge and deduct from payments to the district the
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fees for assessing and collecting the tax at the rate of not
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exceeding one percent of the amounts collected as may be determined
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by the district's board of trustees but in no event in excess of
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$5,000 for any one fiscal year or as may be contracted for as herein
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provided. Interest and penalties on taxes paid such district shall
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be the same as for the county taxes. The remainder of tax
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collections, after deduction of discounts and fees for assessing
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and collecting, shall be deposited in the district's depository and
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may be withdrawn as directed by the district's board of trustees. |
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All other income of the district shall be deposited in the
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depository. The board shall have the authority to levy the tax for
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the entire year in which the district is established to obtain funds
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to initiate the operation of the district]. |
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SECTION 7. Chapter 118, Acts of the 63rd Legislature, |
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Regular Session, 1973, is amended by adding Section 11A to read as |
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follows: |
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Sec. 11A. (a) The district may be dissolved only on |
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approval of a majority of the district voters voting in an election |
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held for that purpose. |
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(b) The board of trustees may order an election on the |
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question of dissolving the district and disposing of the district's |
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assets. The board shall order an election if the board receives a |
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petition requesting an election that is signed by a number of |
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registered voters of the district equal to at least 15 percent of |
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the registered voters in the district. |
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(c) Section 41.001, Election Code, does not apply to an |
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election ordered under this section. |
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(d) The order calling the election shall state: |
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(1) the nature of the election, including the |
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proposition to appear on the ballot; |
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(2) the date of the election; |
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(3) the hours during which the polls will be open; and |
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(4) the location of the polling places. |
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(e) The board shall give notice of the election by |
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publishing once a week for two consecutive weeks a substantial copy |
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of the election order in a newspaper with general circulation in the |
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district. The first publication must appear not later than the 35th |
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day before the date set for the election. |
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(f) The ballot for the election shall be printed to permit |
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voting for or against the proposition: "The dissolution of the |
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Starr County Hospital District." |
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(g) If a majority of the votes in the election favor |
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dissolution, the board shall order that the district be dissolved. |
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If a majority of the votes in the election do not favor dissolution, |
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the board shall continue to administer the district and another |
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election on the question of dissolution may not be held before the |
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first anniversary of the date of the most recent election to |
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dissolve the district. |
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(h) If a majority of the votes in the election favor |
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dissolution, the board shall: |
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(1) transfer the land, buildings, improvements, |
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equipment, and other assets that belong to the district to Starr |
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County or another governmental entity in Starr County; or |
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(2) administer the property, assets, and debts until |
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all funds have been disposed of and all district debts have been |
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paid or settled. |
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(i) If the district makes the transfer under Subsection |
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(h)(1) of this section, the county or entity assumes all debts and |
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obligations of the district at the time of the transfer, at which |
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time the district is dissolved. |
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(j) If the district does not make the transfer under |
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Subsection (h)(1) of this section, the board shall administer the |
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property, assets, and debts of the district until all funds have |
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been disposed of and all district debts have been paid or settled, |
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at which time the district is dissolved. |
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(k) After the board finds that the district is dissolved, |
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the board shall: |
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(1) determine the debt owed by the district; and |
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(2) impose on the property included in the district's |
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tax rolls a tax that is in proportion of the debt to the property |
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value. |
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(l) On the payment of all outstanding debts and obligations |
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of the district, the board shall order the secretary to return to |
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each district taxpayer the taxpayer's pro rata share of all unused |
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tax money. A taxpayer may request that the taxpayer's share of |
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surplus tax money be credited to the taxpayer's county taxes. If a |
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taxpayer requests the credit, the board shall direct the secretary |
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to transmit the funds to the county tax assessor-collector. |
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(m) After the district has paid all its debts and has |
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disposed of all district assets and funds as prescribed by this |
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section, the board shall file a written report with the |
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Commissioners Court of Starr County summarizing the board's actions |
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in dissolving the district. Not later than the 10th day after the |
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date the commissioners court receives the report and determines |
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that the requirements of this section have been fulfilled, the |
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commissioners court shall enter an order dissolving the district |
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and releasing the board from any further duty or obligation. |
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SECTION 8. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |
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____________________________________________________________ |
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President of the Senate Speaker of the House |
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I hereby certify that S.B. No. 1236 passed the Senate on |
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April 19, 2007, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1236 passed the House on |
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May 4, 2007, by the following vote: Yeas 144, Nays 0, two present |
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not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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______________________________ |
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Date |
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______________________________ |
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______________________________ |
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Governor |