By: Frank (Senate Sponsor - Duncan) H.B. No. 2907
(In the Senate - Received from the House May 9, 2013;
May 9, 2013, read first time and referred to Committee on
Intergovernmental Relations; May 16, 2013, reported favorably by
the following vote: Yeas 4, Nays 0; May 16, 2013, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the Knox County Hospital District; authorizing the
imposition of a tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1050.051, Special District Local Laws
Code, is amended by amending Subsection (c) and adding Subsection
(d) to read as follows:
(c) The Commissioners Court of Knox County shall appoint two
successor directors on or before the date on which directors are
elected [first Saturday in April of] each year.
(d) An election shall be held each year on the May uniform
election date under Section 41.001, Election Code, to elect the
appropriate number of at-large directors.
SECTION 2. Section 1050.052, Special District Local Laws
Code, is amended to read as follows:
Sec. 1050.052. NOTICE OF ELECTION. Notice [At least 10 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 of general
circulation in Knox County.
SECTION 3. Section 1050.053, Special District Local Laws
Code, is amended to read as follows:
Sec. 1050.053. BALLOT APPLICATION [PETITION]. A person who
wants to have the person's name printed on the ballot as a candidate
for elected 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 25 registered district
voters; and
[(2) be filed at least 25 days before the date of the
election].
SECTION 4. Section 1050.054(a), Special District Local Laws
Code, is amended to read as follows:
(a) A person is not qualified for appointment or election as
a director unless the person:
(1) is a district resident; and
(2) [owns land subject to taxation by the district;
and
[(3)] is at least 18 years of age at the time of the
appointment or election.
SECTION 5. Section 1050.058, Special District Local Laws
Code, is amended to read as follows:
Sec. 1050.058. OFFICERS. The board shall elect from among
its members a president, a vice president, and a secretary.
SECTION 6. Section 1050.152(c), Special District Local Laws
Code, is amended to read as follows:
(c) Any district resident [taxpayer] is entitled to:
(1) appear at the time and place designated in the
notice; and
(2) be heard regarding any item included in the
proposed budget.
SECTION 7. Section 1050.153, Special District Local Laws
Code, is amended to read as follows:
Sec. 1050.153. FISCAL YEAR. (a) The [district operates on
a] fiscal year [that] begins on October 1 and ends on September 30,
unless otherwise established by the board.
(b) The fiscal year may not be changed:
(1) during a period that revenue bonds of the district
are outstanding; or
(2) more than once in a 24-month period.
SECTION 8. The heading to Section 1050.155, Special
District Local Laws Code, is amended to read as follows:
Sec. 1050.155. DEPOSITORY [OR TREASURER].
SECTION 9. Sections 1050.155(a) and (b), Special District
Local Laws Code, are amended to read as follows:
(a) The board by resolution shall designate a bank [in Knox
County] as the district's depository [or treasurer]. A designated
bank serves for two years until a successor is designated.
(b) District money, other than money invested in accordance
with Chapter 2256, Government Code, and money transmitted to a bank
for payment of bonds or obligations issued by the district, [All
income received by the district] shall be deposited with the
district depository.
SECTION 10. Subchapter E, Chapter 1050, Special District
Local Laws Code, is amended by adding Sections 1050.206, 1050.207,
1050.208, and 1050.209 to read as follows:
Sec. 1050.206. REVENUE BONDS. (a) The board may issue
revenue bonds to:
(1) acquire, purchase, construct, repair, renovate,
or equip buildings or improvements for hospital purposes; or
(2) acquire sites to be used for hospital purposes.
(b) The bonds must be payable from and secured by a pledge of
all or part of the revenues derived from the operation of the
district's hospital system, including district facilities.
(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, 264.046, 264.047, 264.048, and 264.049, Health
and Safety Code, for issuance of revenue bonds by county hospital
authorities.
Sec. 1050.207. REFUNDING BONDS. (a) The board may issue
refunding bonds to refund outstanding indebtedness issued or
assumed by the district.
(b) A refunding bond may be:
(1) sold, with the proceeds of the refunding bond
applied to the payment of the indebtedness to be refunded; or
(2) exchanged wholly or partly for not less than a
similar principal amount of outstanding indebtedness.
Sec. 1050.208. 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
1050.202 and revenue and other sources authorized by Section
1050.206.
Sec. 1050.209. 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 11. Section 1050.254, Special District Local Laws
Code, is amended to read as follows:
Sec. 1050.254. TAX ASSESSOR-COLLECTOR. The board may:
(1) appoint a tax assessor-collector for the district;
or
(2) contract for the assessment and collection of
taxes as provided by the Tax Code. [The tax assessor-collector of
Knox County shall assess and collect taxes imposed by the
district.]
SECTION 12. Chapter 1050, Special District Local Laws Code,
is amended by adding Subchapter G to read as follows:
SUBCHAPTER G. DISSOLUTION
Sec. 1050.301. 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 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. 1050.302. 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 set for the election.
Sec. 1050.303. BALLOT. The ballot for an election under
this subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the Knox County Hospital
District."
Sec. 1050.304. 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
to dissolve the district.
Sec. 1050.305. TRANSFER OR ADMINISTRATION OF ASSETS. (a)
If a majority of the votes in an 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 Knox
County or another governmental entity in Knox 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 board 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. 1050.306. 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. 1050.307. 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 Knox County summarizing the board's actions in dissolving the
district.
(b) Not later than the 10th day after the date the
Commissioners Court of Knox 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 13. 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, 2013.
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