H.B. No. 694
AN ACT
relating to Gonzales Healthcare Systems.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1032.051(b), Special District Local Laws
Code, is amended to read as follows:
(b) Directors serve staggered [two-year terms unless]
four-year terms [are established under Section 285.081, Health and
Safety Code].
SECTION 2. Section 1032.052, Special District Local Laws
Code, is amended to read as follows:
Sec. 1032.052. NOTICE OF ELECTION. Notice [At least 45
days before the date of an election of directors, notice] of an
[the] election of directors shall be published in accordance with
Section 4.003, Election Code, [one time] in a newspaper or
newspapers that individually or collectively have general
circulation in the district.
SECTION 3. Section 1032.110, Special District Local Laws
Code, is amended to read as follows:
Sec. 1032.110. CONSTRUCTION CONTRACTS. A construction
contract that involves the expenditure of more than the amount
provided by Section 271.024, Local Government Code, [$10,000] may
be made only after competitive bidding [advertising] in the manner
provided by Subchapter B, Chapter 271 [Chapter 252 and Subchapter
C, Chapter 262], Local Government Code.
SECTION 4. Subchapter D, Chapter 1032, Special District
Local Laws Code, is amended by adding Section 1032.161 to read as
follows:
Sec. 1032.161. GENERAL 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 in the
next 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) a district bond that has 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 5. Subchapter E, Chapter 1032, Special District
Local Laws Code, is amended by adding Sections 1032.209 and
1032.210 to read as follows:
Sec. 1032.209. ADDITIONAL MEANS OF SECURING REPAYMENT OF
BONDS. In addition to the authority to issue general obligation
bonds and revenue bonds under this subchapter, the board may
provide for the security and payment of district bonds from a pledge
of a combination of ad valorem taxes as authorized by Section
1032.202 and revenue and other sources authorized by Section
1032.206.
Sec. 1032.210. 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) costs of construction of a project or facility to
be provided through the bonds, including the payment of related
professional services and expenses.
SECTION 6. Chapter 1032, Special District Local Laws Code,
is amended by adding Subchapter G to read as follows:
SUBCHAPTER G. DISSOLUTION
Sec. 1032.301. 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 30
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. 1032.302. 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 of the election.
Sec. 1032.303. BALLOT. The ballot for an election under
this subchapter must be printed to permit voting for or against the
proposition: "The dissolution of Gonzales Healthcare Systems."
Sec. 1032.304. 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. 1032.305. TRANSFER OF 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 Gonzales
County or another governmental entity in Gonzales 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. 1032.306. 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 county tax assessor-collector.
Sec. 1032.307. REPORT; DISSOLUTION ORDER. (a) After the
district has paid all its debts and has disposed of all its money
and other assets as prescribed by this subchapter, the board shall
file a written report with the Commissioners Court of Gonzales
County summarizing the board's actions in dissolving the district.
(b) Not later than the 10th day after the date the
Commissioners Court of Gonzales County receives the report and
determines that the requirements of this subchapter have been
fulfilled, the commissioners court shall enter an order dissolving
the district and releasing the board from any further duty or
obligation.
SECTION 7. Section 1032.053, Special District Local Laws
Code, is repealed.
SECTION 8. (a) All elections for directors of Gonzales
Healthcare Systems held before the effective date of this Act, and
all governmental and proprietary actions of Gonzales Healthcare
Systems taken before the effective date of this Act, are validated,
ratified, and confirmed in all respects as if the actions had been
taken as authorized by law.
(b) This section does not apply to any matter that on the
effective date of this Act:
(1) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final
judgment of a court; or
(2) has been held invalid by a final judgment of a
court.
SECTION 9. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 694 was passed by the House on May 15,
2009, by the following vote: Yeas 144, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 694 was passed by the Senate on May
26, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor