By: Duncan S.B. No. 2093
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the North Wheeler County Hospital District.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 4, Chapter 260, Acts of the 58th
  Legislature, Regular Session, 1963, is amended to read as follows:
         Sec. 4.  DISTRICT MANAGEMENT.  The District [Within ten (10)
  days after such election is held the Commissioners Court of said
  County shall convene and canvass the returns thereof and in the
  event such election results favorably to the proposition specified
  in Section 3 hereof, such District] shall be governed by a Board of
  Directors to consist of five (5) members, who shall serve without
  pay.  Two Directors are elected from each commissioners precinct
  included in the District, and one Director is elected from the
  District at large. Unless four-year terms are established under
  Section 285.081, Health and Safety Code, Directors serve staggered
  two-year terms.  Each such Director must at the time of [his]
  election or appointment [hereunder,] be a resident of the District,
  be a registered voter, [own property subject to taxation therein]
  and be more than eighteen (18) [twenty-one (21)] years of age.  A
  person who is elected from a commissioners precinct or who is
  appointed to fill a vacancy for a commissioners precinct must be a
  resident of that precinct. A District employee may not serve as a
  Director. [Not less than fifteen (15) nor more than twenty-five
  (25) days after the District is declared established and created
  the Commissioners Court shall call an election for the five (5)
  Directors who will serve as the District's first Board of
  Directors, this election to be held on a date not more than thirty
  (30) days after the day of the passage of the Commissioners Court
  order calling same but on such date as will permit publication of an
  election notice in a newspaper of general circulation in Wheeler
  County one (1) time not less than ten (10) days prior to such
  election date.   Any candidate desiring to be voted upon as a first
  Director shall, no later that three (3) days prior to the day of
  passage of the Commissioners Court order calling the election,
  present a petition to that Court signed by such candidate and not
  less than five (5) qualified voters residing in the candidate's
  voting precinct, requesting that his name be placed upon the
  official ballot.   For the purpose of electing Directors, the
  Hospital District shall be divided into five (5) voting precincts
  which shall be made up of the parts of the following school
  districts which lie within the Hospital District, using school
  district boundaries as of January 1, 1963, as follows:   Allison,
  Kelton, Briscoe, Wheeler plus any part of Sections 14 and 15 of
  Block 27, H & G.N. Survey that are within the boundaries of the
  Hospital District, and Mobeetie plus any part of Sections 69 and 70
  of Block 24 of H and G.N. Survey that are within the boundaries of
  the Hospital District.   Any territory within the Hospital District,
  but not within one of the five (5) school districts, shall be added
  to the nearest Hospital District voting precinct by the action of
  the Board of Directors of the Hospital District.   Each voting
  precinct of the Hospital District shall be represented by one (1)
  Director who must reside within the voting precinct.   The regular
  term of each Director shall be for two (2) years but after the first
  called election, the Directors by lot shall select three (3)
  Directors for two (2) year terms, and two (2) Directors for one (1)
  year terms.   The first year terms shall be ended on the date of the
  first annual election as hereinafter provided.   No person shall be
  appointed or elected as a member of the Board of Directors of said
  Hospital District unless he is a resident of the voting precinct
  thereof and owns property subject to taxation therein and unless at
  the time of such election or appointment he shall be more than
  twenty-one (21) years of age.]  Each member of the Board of
  Directors shall qualify by executing the constitutional oath of
  office and shall execute a good and sufficient commercial bond for
  One Thousand Dollars ($1,000) payable to said District conditioned
  upon the faithful performance of his duties, and such oaths and
  bonds shall be deposited with the depository bank of the District
  for safekeeping.  The cost of this bond shall be an expense of the
  Hospital District.
         The Board of Directors shall organize by electing one (1) of
  their number as president, and one (1) as vice president and one (1)
  as secretary.  Any three (3) members of the Board of Directors shall
  constitute a quorum and a concurrence of three (3) shall be
  sufficient in all matters pertaining to the business of the
  District.  All vacancies in the office of Director shall be filled
  for the unexpired term by appointment of the remainder of the Board
  of Directors.  In the event the number of Directors shall be reduced
  to less than three (3) for any reason, the remaining Directors shall
  immediately call a special election to fill said vacancies, and
  upon failure to do so a District Court may, upon application of any
  voter or taxpayer of the District, issue a mandate requiring that
  such election be ordered by the remaining Directors.  An election
  shall be held each year on the May uniform election date prescribed
  by Section 41.001, Election Code, to elect the appropriate number
  of Directors.
         Notice [A regular election of Directors shall be held on the
  same day that the election of trustees of public schools is held
  each year and notice] of such election shall be published in a
  newspaper of general circulation in the County in accordance with
  Section 4.003, Election Code [one (1) time at least ten (10) days
  prior to the date of election].  Any person desiring the person's 
  [his] name to be printed on the ballot as a candidate for Director
  shall file an application [a petition, signed by not less than five
  (5) qualified voters residing in the candidate's voting precinct
  asking that such name be printed on the ballot,] with the secretary
  of the Board of Directors of the District in accordance with Chapter
  144, Election Code.  [Such petition shall be filed with such
  secretary at least twenty-five (25) days prior to the date of
  election.   All qualified electors residing within the District
  shall be eligible to vote for Directors; provided, however, that
  such eligible elector can vote only to select a Director from the
  Hospital District voting precinct of the residence of such
  elector.]
         SECTION 2.  Section 6, Chapter 260, Acts of the 58th
  Legislature, Regular Session, 1963, is amended to read as follows:
         Sec. 6.  FISCAL YEAR-AUDIT-ACCOUNTING.  The District
  operates on a fiscal year established by the Board of Directors.
  The fiscal year may not be changed if revenue bonds are outstanding
  or more than once in a 24-month period.  The Board [shall be
  operated on a fiscal year commencing on October 1st of each year and
  ending on September 30th of the succeeding year and it] shall cause
  an audit to be made of the financial condition of said District
  which shall at all times be open to inspection at the principal
  office of the District.  In addition the Administrator or Manager
  shall prepare an annual budget for approval by the Board of
  Directors of said District.  As soon as practical 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 3.  Chapter 260, Acts of the 58th Legislature,
  Regular Session, 1963, is amended by adding Sections 7A, 7B, and 7C
  to read as follows:
         Sec. 7A.  REVENUE BONDS.  (a)  The Board of Directors may
  issue revenue bonds to:
               (1)  purchase, construct, acquire, repair, renovate,
  or equip buildings or improvements for hospital system purposes; or
               (2)  acquire sites to be used for hospital system
  purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of the revenue derived from the operation of the
  District's hospitals.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of the District property.
         (d)  The bonds must be issued in the manner and in accordance
  with the procedures and requirements prescribed by Sections
  264.042, 264.043, and 264.046-264.049, Health and Safety Code, for
  issuance of revenue bonds by a county hospital authority.
         Sec. 7B.  ADDITIONAL MEANS OF SECURING REPAYMENT OF BONDS.  
  (a)  In addition to the authority to issue general obligation bonds
  and revenue bonds under this Act, the Board of Directors may provide
  for the security and payment of District bonds from a pledge of a
  combination of ad valorem taxes as authorized by Section 7 of this
  Act and revenue and other sources as authorized by Section 7A 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 7 of this Act.
         Sec. 7C.  USE OF BOND PROCEEDS.  The district may use the
  proceeds of bonds issued under this Act to pay:
               (1)  any expense the Board of Directors determines is
  reasonable and necessary to issue, sell, and deliver the bonds;
               (2)  interest payments on the bonds during a period of
  acquisition or construction of a project or facility to be provided
  through the bonds, not to exceed five years;
               (3)  costs related to the operation and maintenance of
  a project or facility to be provided through the bonds:
                     (A)  during an estimated period of acquisition or
  construction, not to exceed five years; and
                     (B)  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 bond issuance;
               (6)  costs related to the acquisition of land or
  interests in land for a project or facility to be provided through
  the bonds; and
               (7)  costs of construction of a project or facility to
  be provided through the bonds, including the payment of related
  professional services and expenses.
         SECTION 4.  Chapter 260, Acts of the 58th Legislature,
  Regular Session, 1963, is amended by adding Section 22 to read as
  follows:
         Sec. 22.  DISSOLUTION; ELECTION.  (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 of Directors 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 a
  number of registered voters of the District equal to at least 15
  percent of the registered voters in the District.
         (c)  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 of Directors 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
  North Wheeler County Hospital District."
         (g)  If a majority of the votes in the election favor
  dissolution, the Board of Directors 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 of Directors shall:
               (1)  transfer the land, buildings, improvements,
  equipment, and other assets that belong to the District to Wheeler
  County or another governmental entity in Wheeler 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 Wheeler 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 Wheeler County or
  another governmental entity, the Board of Directors 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 of Directors finds that the district is
  dissolved, the Board shall:
               (1)  determine any 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 of Directors 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 of Directors 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 of Directors shall file a written report with the
  Commissioners Court of Wheeler 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 Wheeler County
  shall enter an order dissolving the District and releasing the
  Board of Directors of the District from any further duty or
  obligation.
         SECTION 5.  (a)  The election of three directors of the
  North Wheeler County Hospital District scheduled before the
  effective date of this Act to be held in May 2010 shall be held, and
  two directors shall be elected from Precinct 2 and one director
  shall be elected from the district at large.  The directors elected
  at the election shall serve two-year terms.
         (b)  The election of two directors of the district scheduled
  before the effective date of this Act to be held in May 2011 shall be
  held, and two directors shall be elected from Precinct 1.  The
  directors elected at the election shall serve two-year terms.
         SECTION 6.  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, 2009.