82R4501 CJC-F

By: Miller of Erath H.B. No. 851

A BILL TO BE ENTITLED

AN ACT

relating to the Hamilton County Hospital District.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1036.004, Special District Local Laws

Code, is amended to read as follows:

Sec. 1036.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Commissioners

Precincts 1, 2, and 4 of Hamilton County as those boundaries existed

on June 14, 1989, unless the district's boundaries are expanded to

be coextensive with the boundaries of the county under Subchapter

G.

SECTION 2. Section 1036.051(b), Special District Local Laws

Code, is amended to read as follows:

(b) One director is elected from each commissioners

precinct included in the district and two directors are elected

from the district at large. If the district is expanded under

Subchapter G so that the boundaries are coextensive with the

boundaries of the county, one director is elected from each

commissioners precinct and one director is elected from the

district at large. The board shall determine which director

position elected from the district at large will convert into a

position elected from the additional precinct.

SECTION 3. Section 1036.052, Special District Local Laws

Code, is amended to read as follows:

Sec. 1036.052. NOTICE OF ELECTION. Notice [At least 35 days

before the date of an election of directors, notice] of the election

shall be published in accordance with Section 4.003, Election Code,

[one time] in a newspaper with general circulation in the district.

SECTION 4. Section 1036.053, Special District Local Laws

Code, is amended to read as follows:

Sec. 1036.053. BALLOT APPLICATION [PETITION]. A person who

wants to have the person's name printed on the ballot as a candidate

for director must file with the board secretary an application in

accordance with Chapter 144, Election Code [a petition requesting

that action. The petition must:

[(1) be signed by at least 10 registered voters of the

district, as determined by the most recent official lists of

registered voters;

[(2) be filed not later than the 31st day before the

date of the election; and

[(3) specify the commissioners precinct the candidate

wants to represent or specify that the candidate wants to represent

the district at large].

SECTION 5. Section 1036.160(a), Special District Local Laws

Code, is amended to read as follows:

(a) Except as provided by Sections 1036.111, 1036.161,

1036.201, 1036.204, [and] 1036.205, and 1036.210, the district may

not incur a debt payable from district revenue other than the

revenue on hand or to be on hand in the current and the immediately

following district fiscal years.

SECTION 6. Subchapter D, Chapter 1036, Special District

Local Laws Code, is amended by adding Section 1036.161 to read as

follows:

Sec. 1036.161. AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money at a rate not to exceed the maximum

annual percentage rate allowed by law for district obligations at

the time the loan is made.

(b) To secure a loan, the board may pledge:

(1) district revenue that is not pledged to pay the

district's bonded indebtedness;

(2) a district tax to be imposed by the district during

the 12-month period following the date of the pledge that is not

pledged to pay the principal of or interest on district bonds; or

(3) district bonds that have been authorized but not

sold.

(c) A loan for which taxes or bonds are pledged must mature

not later than the first anniversary of the date the loan is

made. A loan for which district revenue is pledged must mature not

later than the fifth anniversary of the date the loan is made.

SECTION 7. Subchapter E, Chapter 1036, Special District

Local Laws Code, is amended by adding Section 1036.210 to read as

follows:

Sec. 1036.210. USE OF BOND PROCEEDS. The district may use

the proceeds of bonds issued under this subchapter to pay:

(1) any expense the board 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) construction costs of a project or facility to be

provided through the bonds, including the payment of related

professional services and expenses.

SECTION 8. Chapter 1036, Special District Local Laws Code,

is amended by adding Subchapters G and H to read as follows:

SUBCHAPTER G. EXPANSION OF DISTRICT TERRITORY

Sec. 1036.301. EXPANSION OF DISTRICT TERRITORY TO ENTIRE

COUNTY. The district may expand its territory boundaries to be

coextensive with the boundaries of the county in the manner

provided by Section 286.101, Health and Safety Code, for the

expansion of the territory of a hospital district created under

Chapter 286, Health and Safety Code.

SUBCHAPTER H. DISSOLUTION

Sec. 1036.401. DISSOLUTION; ELECTION. (a) The district

may be dissolved only on approval of a majority of the district

voters 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.

(c) 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.

(d) The order calling the election must state:

(1) the nature of the election, including the

proposition 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) Section 41.001(a), Election Code, does not apply to an

election ordered under this section.

Sec. 1036.402. NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks a substantial copy of the election

order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear not

later than the 35th day before the date set for the election.

Sec. 1036.403. BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Hamilton County Hospital

District."

Sec. 1036.404. ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

board shall find that the district is dissolved.

(b) 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 date of the most recent election

on the question of dissolution.

Sec. 1036.405. TRANSFER OR ADMINISTRATION OF ASSETS. (a)

If a majority of the votes in the election held under this

subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements,

equipment, and other assets that belong to the district to Hamilton

County or another governmental entity in Hamilton 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.

(b) If the district makes the transfer under Subsection

(a)(1), the county or entity assumes all debts and obligations of

the district at the time of the transfer, and the district is

dissolved.

(c) If Subsection (a)(1) does not apply and the board

administers the property, assets, and debts of the district under

Subsection (a)(2), the district is dissolved when all money has

been disposed of and all district debts have been paid or settled.

Sec. 1036.406. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES. (a) After the board finds that the district is dissolved,

the board shall:

(1) determine the 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.

(b) On the payment of all outstanding debts and obligations

of the district, the board shall order the secretary to return to

each district taxpayer the taxpayer's pro rata share of all unused

tax money.

(c) 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 appropriate county tax

assessor-collector.

Sec. 1036.407. REPORT; DISSOLUTION ORDER. (a) After the

district has paid all district debts and has disposed of all

district money and other assets as prescribed by this subchapter,

the board shall file a written report with the Commissioners Court

of Hamilton County summarizing the board's actions in dissolving

the district.

(b) Not later than the 10th day after the date the

Commissioners Court of Hamilton County receives the report and

determines that the requirements of this subchapter have been

fulfilled, the commissioners court shall enter an order approving

dissolution of the district and releasing the board from any

further duty or obligation.

SECTION 9. This Act takes effect September 1, 2011.