By: Fraser S.B. No. 490
(Miller of Erath)
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. Subsection (b), Section 1036.051, 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. Subsection (a), Section 1036.160, 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.