Texas 2013 83rd Regular

Texas Senate Bill SB1920 Senate Committee Report / Bill

Filed 02/01/2025

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                    By: Hinojosa S.B. No. 1920
 (In the Senate - Filed May 3, 2013; May 6, 2013, read first
 time and referred to Committee on Intergovernmental Relations;
 May 10, 2013, reported favorably by the following vote:
 Yeas 5, Nays 0; May 10, 2013, sent to printer.)


 A BILL TO BE ENTITLED
 AN ACT
 relating to the creation of the Hidalgo County Hospital District;
 granting the authority to impose a tax and issue bonds; granting the
 power of eminent domain.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle A, Title 3, Special District Local Laws
 Code, is amended by adding Chapter 1122 to read as follows:
 CHAPTER 1122. HIDALGO COUNTY HOSPITAL DISTRICT
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 1122.001.  DEFINITIONS.  In this chapter:
 (1)  "Board" means the board of directors of the
 district.
 (2)  "Director" means a member of the board.
 (3)  "District" means the Hidalgo County Hospital
 District.
 Sec. 1122.002.  DISTRICT AUTHORIZATION.  The Hidalgo County
 Hospital District may be created and, if created, operates and is
 financed as provided by Section 9, Article IX, Texas Constitution,
 and by this chapter.
 Sec. 1122.003.  ESSENTIAL PUBLIC FUNCTION.  The district is
 a public entity performing an essential public function.
 Sec. 1122.004.  DISTRICT TERRITORY.  The boundaries of the
 district are coextensive with the boundaries of Hidalgo County.
 Sec. 1122.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
 OBLIGATION.  The state may not be obligated for the support or
 maintenance of the district.
 Sec. 1122.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
 The legislature may not make a direct appropriation for the
 construction, maintenance, or improvement of a district facility.
 SUBCHAPTER A-1. TEMPORARY PROVISIONS
 Sec. 1122.021.  CREATION ELECTION; ORDERING ELECTION.
 (a)  The district may be created and a tax may be authorized only if
 the creation and the tax are approved by a majority of the
 registered voters of the territory of the proposed district voting
 at an election called and held for that purpose.
 (b)  The Hidalgo County Commissioners Court shall order an
 election for the registered voters of Hidalgo County on the
 question of creation of the Hidalgo County Hospital District if the
 commissioners court receives a petition requesting an election that
 is signed by at least 50 registered voters who are residents of
 Hidalgo County.
 (c)  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.
 (d)  Section 41.001(a), Election Code, does not apply to an
 election ordered under this section.
 (e)  The Hidalgo County Commissioners Court shall give
 notice of an election under this section by publishing a
 substantial copy of the election order in a newspaper with general
 circulation in Hidalgo County once a week for two consecutive
 weeks. The first publication must appear not later than the 30th
 day before the date set for the election.
 (f)  The ballot for an election under this section must be
 printed to permit voting for or against the proposition:  "The
 creation of the Hidalgo County Hospital District, providing for the
 imposition of an ad valorem tax at a rate not to exceed 75 cents on
 each $100 valuation on all taxable property in the district."
 (g)  The Hidalgo County Commissioners Court shall find that
 the Hidalgo County Hospital District is created if a majority of the
 voters voting in the election held under this section favor the
 creation of the district.
 Sec. 1122.022.  TEMPORARY DIRECTORS. (a)  If the creation
 of the district is approved at the election held under Section
 1122.021, the Hidalgo County Commissioners Court shall appoint five
 temporary directors to represent the district at large.
 (b)  Temporary directors serve until the date of the next
 regular election of directors that occurs after the date of the
 election held under Section 1122.021 and that allows sufficient
 time to comply with other requirements of law.
 (c)  A vacancy on the temporary board of directors shall be
 filled by appointment by the Hidalgo County Commissioners Court.
 (d)  A person must be a qualified voter of the district to
 serve as a temporary director.
 (e)  An employee of the district may not serve as a temporary
 director.
 Sec. 1122.023.  TEMPORARY OFFICERS. (a)  The temporary
 board shall elect a president and a vice president from among the
 temporary directors.
 (b)  The temporary board shall appoint a secretary, who need
 not be a temporary director.
 (c)  The temporary board shall fill a vacancy in a board
 office for the remainder of the unexpired term.
 SUBCHAPTER B. DISTRICT ADMINISTRATION
 Sec. 1122.051.  BOARD ELECTION; TERM.  (a)  The board
 consists of five directors elected at large.
 (b)  An election shall be held each year on an authorized
 uniform election date to elect the appropriate number of directors.
 (c)  Directors serve staggered two-year terms.
 Sec. 1122.052.  NOTICE.  Notice of the directors' election
 shall be published at least once in a newspaper with general
 circulation in the district in accordance with Section 4.003(a),
 Election Code.
 Sec. 1122.053.  QUALIFICATION FOR OFFICE.  (a)  To be
 eligible to hold office on the board, a person must be:
 (1)  a resident of the district; and
 (2)  a qualified voter.
 (b)  An administrator or an employee of the district may not
 serve as a director.
 Sec. 1122.054.  DIRECTOR'S BOND.  (a)  Before assuming the
 duties of office, each director must execute a bond in the amount of
 $5,000 payable to the district and conditioned on the faithful
 performance of the director's duties.
 (b)  The bond shall be kept in the permanent records of the
 district.
 (c)  The board may pay for a director's bond with district
 money.
 Sec. 1122.055.  BOARD VACANCY.  If a vacancy occurs in the
 office of director, the remaining directors shall appoint a
 director for the remainder of the unexpired term.
 Sec. 1122.056.  OFFICERS.  (a)  The board shall elect a
 president and a vice president from among the directors.
 (b)  The board shall appoint a secretary, who need not be a
 director.
 (c)  Each officer of the board serves a one-year term.
 (d)  The board shall fill a vacancy in a board office for the
 remainder of the unexpired term.
 Sec. 1122.057.  COMPENSATION; REIMBURSEMENT.  A director or
 officer serves without compensation but may be reimbursed for
 actual expenses incurred in the performance of official duties.
 The expenses must be:
 (1)  reported in the district's records; and
 (2)  approved by the board.
 Sec. 1122.058.  VOTING REQUIREMENT.  A concurrence of a
 majority of the directors voting is necessary in matters relating
 to district business.
 Sec. 1122.059.  DISTRICT ADMINISTRATOR; ADMINISTRATOR'S
 BOND.  (a)  The board may appoint a qualified person as district
 administrator.
 (b)  The district administrator serves at the will of the
 board.
 (c)  The district administrator is entitled to compensation
 determined by the board.
 (d)  Before assuming the duties of district administrator,
 the administrator must execute a bond payable to the district in an
 amount not less than $5,000, as determined by the board,
 conditioned on the faithful performance of the administrator's
 duties.
 (e)  The board may pay for the bond with district money.
 Sec. 1122.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
 Subject to the limitations prescribed by the board, the district
 administrator shall:
 (1)  supervise the work and activities of the district;
 and
 (2)  direct the general affairs of the district.
 Sec. 1122.061.  ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
 (a)  The board may appoint qualified persons as assistant district
 administrator and attorney for the district.
 (b)  The assistant district administrator and attorney for
 the district serve at the will of the board.
 (c)  The assistant district administrator and attorney for
 the district are entitled to compensation determined by the board.
 Sec. 1122.062.  EMPLOYEES.  (a)  The district may employ
 nurses, technicians, fiscal agents, accountants, architects,
 additional attorneys, and other necessary employees.
 (b)  The board may delegate to the district administrator the
 authority to employ persons for the district.
 Sec. 1122.063.  RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.
 The board may spend district money, enter into agreements, and take
 other necessary actions to recruit physicians and other persons to
 serve as medical staff members or district employees.  The actions
 may include:
 (1)  advertising and marketing;
 (2)  paying travel, recruitment, and relocation
 expenses;
 (3)  providing a loan or scholarship to a physician or a
 person currently enrolled in health care education courses at an
 institution of higher education who contracts to become a medical
 staff member or district employee; or
 (4)  contracting with a full-time medical student or
 other student in a health occupation who is enrolled in and in good
 standing at an accredited medical school, college, or university to
 pay the student's tuition or other expenses for the consideration
 of the student agreeing to serve as an employee or independent
 contractor for the district.
 Sec. 1122.064.  APPOINTMENT AND REMOVAL OF MEDICAL STAFF.
 The board may:
 (1)  appoint to the medical staff any doctor the board
 considers necessary for the efficient operation of the district;
 (2)  remove any doctor from the medical staff, after
 due process, if the board considers the doctor's removal necessary
 for the efficient operation of the district; and
 (3)  make temporary appointments to the medical staff
 as the board considers necessary.
 Sec. 1122.065.  RETIREMENT BENEFITS.  The board may provide
 retirement benefits for district employees by:
 (1)  establishing or administering a retirement
 program; or
 (2)  participating in:
 (A)  the Texas County and District Retirement
 System; or
 (B)  another statewide retirement system in which
 the district is eligible to participate.
 SUBCHAPTER C. POWERS AND DUTIES
 Sec. 1122.101.  DISTRICT RESPONSIBILITY.  The district has
 full responsibility for operating hospital facilities and
 providing medical and hospital care for the district's needy
 residents.
 Sec. 1122.102.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
 The board shall manage, control, and administer the hospital system
 and the money and resources of the district.
 Sec. 1122.103.  RULES.  The board may adopt rules governing:
 (1)  the operation of the hospital and hospital system;
 and
 (2)  the duties, functions, and responsibilities of
 district staff and employees.
 Sec. 1122.104.  PURCHASING AND ACCOUNTING PROCEDURES.  The
 board may prescribe:
 (1)  the method of making purchases and expenditures by
 and for the district; and
 (2)  accounting and control procedures for the
 district.
 Sec. 1122.105.  PROVISION OF CERTAIN HEALTH SERVICES.
 (a)  The district may operate or provide for the operation of a
 mobile emergency medical service.
 (b)  The district may operate or provide for home health
 services, long-term care, skilled nursing care, intermediate
 nursing care, or hospice care.
 Sec. 1122.106.  DISTRICT PROPERTY, FACILITIES, AND
 EQUIPMENT.  (a)  The board shall determine:
 (1)  the type, number, and location of buildings
 required to maintain an adequate hospital system; and
 (2)  the type of equipment necessary for hospital care.
 (b)  The board may:
 (1)  acquire property, facilities, and equipment for
 the district for use in the hospital system;
 (2)  mortgage or pledge the property, facilities, or
 equipment as security for payment of the purchase price;
 (3)  sell or otherwise dispose of property, facilities,
 or equipment for the district; or
 (4)  lease hospital facilities for the district.
 Sec. 1122.107.  OPERATING AND MANAGEMENT CONTRACTS.  The
 board may enter into operating or management contracts relating to
 hospital facilities for the district.
 Sec. 1122.108.  SERVICE CONTRACTS.  (a)  The board may
 contract with a public or private hospital, a political subdivision
 of the state, or a state or federal agency for the district to
 provide a mobile emergency medical service or other health care
 services needed to provide for the investigatory or welfare needs
 of residents of the district.
 (b)  The board may contract with a person to receive or
 supply the services the board considers necessary for the effective
 operation of the district.
 Sec. 1122.109.  EMINENT DOMAIN.  (a)  The district may
 exercise the power of eminent domain to acquire a fee simple or
 other interest in property located in district territory if the
 interest is necessary for the district to exercise the rights or
 authority conferred by this chapter.
 (b)  The district must exercise the power of eminent domain
 in the manner provided by Chapter 21, Property Code, except that the
 district is not required to deposit with the trial court money or a
 bond as provided by Section 21.021(a), Property Code.
 (c)  In a condemnation proceeding brought by the district,
 the district is not required to:
 (1)  pay in advance or provide bond or other security
 for costs in the trial court;
 (2)  provide bond for the issuance of a temporary
 restraining order or a temporary injunction; or
 (3)  provide a bond for costs or a supersedeas bond on
 an appeal or petition for review.
 Sec. 1122.110.  COST OF RELOCATING OR ALTERING PROPERTY.  In
 exercising the power of eminent domain, if the board requires
 relocating, raising, lowering, rerouting, changing the grade, or
 altering the construction of any railroad, highway, pipeline, or
 electric transmission and electric distribution, telegraph, or
 telephone line, conduit, pole, or facility, the district shall pay
 the actual cost of that activity to provide a comparable
 replacement, without enhancement of facilities, after deducting
 the net salvage value derived from the old facility.
 Sec. 1122.111.  GIFTS AND ENDOWMENTS.  The board may accept
 for the district a gift or endowment to be held in trust for any
 purpose and under any direction, limitation, or provision in
 writing by the donor that is consistent with the proper management
 of the district.
 Sec. 1122.112.  PAYMENT FOR TREATMENT; PROCEDURES.
 (a)  When a person who resides in the district is admitted as a
 patient to a district facility, the district administrator may have
 an inquiry made into the financial circumstances of:
 (1)  the patient; and
 (2)  a relative of the patient who is legally
 responsible for the patient's support.
 (b)  To the extent that the patient or a relative of the
 patient who is legally responsible for the patient's support cannot
 pay for care and treatment provided by the district, the district
 shall supply the care and treatment without charging the patient or
 the patient's relative.
 (c)  On determining that the patient or a relative legally
 responsible for the patient's support can pay for all or part of the
 care and treatment provided by the district, the district
 administrator shall report that determination to the board, and the
 board shall issue an order directing the patient or the relative to
 pay the district a specified amount each week.  The amount must be
 based on the person's ability to pay.
 (d)  The district administrator may collect money owed to the
 district from the patient's estate or from that of a relative
 legally responsible for the patient's support in the manner
 provided by law for the collection of expenses in the last illness
 of a deceased person.
 (e)  If there is a dispute relating to a person's ability to
 pay or if the district administrator has any doubt concerning a
 person's ability to pay, the board shall call witnesses, hear and
 resolve the question, and issue a final order.  The order may be
 appealed to a district court in any county in which the district is
 located.  The substantial evidence rule applies to an appeal under
 this subsection.
 Sec. 1122.113.  REIMBURSEMENT FOR SERVICES.  (a)  The board
 shall require a county, municipality, or public hospital located
 outside of the district to reimburse the district for the
 district's care and treatment of a sick or injured person of that
 county, municipality, or hospital, as provided by Chapter 61,
 Health and Safety Code.
 (b)  The board shall require the sheriff of Hidalgo County to
 reimburse the district for the district's care and treatment of a
 person who is confined in a jail facility of Hidalgo County and is
 not a resident of the district.
 (c)  On behalf of the district, the board may contract with
 the state or federal government for that government to reimburse
 the district for treatment of a sick or injured person.
 Sec. 1122.114.  NONPROFIT CORPORATION.  (a)  The district
 may create and sponsor a nonprofit corporation under the Business
 Organizations Code and may contribute money to or solicit money for
 the corporation.
 (b)  A corporation created under this section may use money
 contributed by the district only to provide health care or other
 services the district is authorized to provide under this chapter.
 (c)  The corporation may invest the corporation's money in
 any manner in which the district may invest the district's money,
 including investing money as authorized by Chapter 2256, Government
 Code.
 (d)  The board shall establish controls to ensure that the
 corporation uses its money as required by this section.
 Sec. 1122.115.  LOANS AND GRANTS FOR ECONOMIC DEVELOPMENT
 PURPOSES.  Under the authority granted by Section 52-a, Article
 III, Texas Constitution, the district may loan or grant money to any
 person for the development of medical education and research in the
 district.
 Sec. 1122.116.  AUTHORITY TO SUE AND BE SUED.  The board may
 sue and be sued on behalf of the district.
 Sec. 1122.117.  CONSTRUCTION CONTRACTS; ADVERTISING FOR
 CERTAIN CONSTRUCTION CONTRACTS.  (a)  The board may enter into a
 construction contract on the district's behalf.
 (b)  The board may enter into a construction contract only
 after competitive bidding as provided by Subchapter B, Chapter 271,
 Local Government Code, if the amount of the contract is greater than
 the amount provided by Section 271.024 of that code.
 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
 Sec. 1122.151.  BUDGET.  (a)  The district administrator
 shall prepare a proposed annual budget for the district.
 (b)  The proposed budget must contain a complete financial
 statement, including a statement of:
 (1)  the outstanding obligations of the district;
 (2)  the amount of cash on hand to the credit of each
 fund of the district;
 (3)  the amount of money received by the district from
 all sources during the previous year;
 (4)  the amount of money available to the district from
 all sources during the ensuing year;
 (5)  the amount of the balances expected at the end of
 the year in which the budget is being prepared;
 (6)  the estimated amount of revenues and balances
 available to cover the proposed budget; and
 (7)  the estimated tax rate required.
 Sec. 1122.152.  NOTICE; HEARING; ADOPTION OF BUDGET.
 (a)  The board shall hold a public hearing on the proposed budget.
 (b)  The board shall publish notice of the hearing in a
 newspaper with general circulation in the district not later than
 the 10th day before the date of the hearing.
 (c)  Any district resident is entitled to be present and
 participate at the hearing.
 (d)  At the conclusion of the hearing, the board shall adopt
 a budget by acting on the budget proposed by the district
 administrator.  The board may make a change in the proposed budget
 that the board determines to be in the interests of the taxpayers.
 (e)  The budget is effective only after adoption by the
 board.
 Sec. 1122.153.  AMENDMENT OF BUDGET.  After the budget is
 adopted, the budget may be amended on the board's approval.
 Sec. 1122.154.  FISCAL YEAR.  (a)  The district operates
 according to a fiscal year established by the board.
 (b)  The fiscal year may not be changed:
 (1)  during a period in which revenue bonds of the
 district are outstanding; or
 (2)  more than once in a 24-month period.
 Sec. 1122.155.  ANNUAL AUDIT.  The board shall have an annual
 audit made of the financial condition of the district.
 Sec. 1122.156.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
 RECORDS.  The annual audit and other district records are open to
 inspection during regular business hours at the principal office of
 the district.
 Sec. 1122.157.  FINANCIAL REPORT.  As soon as practicable
 after the close of each fiscal year, the district administrator
 shall prepare for the board a sworn statement of the amount of
 district money and an account of the disbursement of that money.
 Sec. 1122.158.  SHORT-TERM FINANCING.  The district may
 borrow money through short-term financing.
 Sec. 1122.159.  DEBT LIMITATION.  Except as provided by this
 chapter and Chapter 1207, Government Code, the district may not
 incur a debt payable from district revenue other than revenue
 available in the current fiscal year and the immediately following
 fiscal year of the district.
 Sec. 1122.160.  DEPOSITORY.  (a)  The board shall select at
 least one bank to serve as a depository for district money.
 (b)  The board may solicit bids from local financial
 institutions to determine which institution may serve as a
 depository for district money.
 (c)  District money, other than money invested as provided by
 Section 1122.161 and money transmitted to a bank for payment of
 bonds or obligations issued or assumed by the district, shall be
 deposited as received with the depository bank and shall remain on
 deposit.  This subsection does not limit the board's power to place
 part of the district's money on time deposit or to purchase
 certificates of deposit.
 Sec. 1122.161.  RESTRICTION ON INVESTMENT.  The board may
 invest operating, depreciation, or building reserves only in funds
 or securities specified by Chapter 2256, Government Code.
 SUBCHAPTER E.  BONDS
 Sec. 1122.201.  GENERAL OBLIGATION BONDS.  If authorized by
 an election, the board may issue and sell general obligation bonds
 in the name and on the faith and credit of the district to:
 (1)  purchase, construct, acquire, repair, or renovate
 buildings or improvements;
 (2)  equip buildings or improvements for hospital
 purposes; or
 (3)  acquire and operate a mobile emergency medical
 service.
 Sec. 1122.202.  TAX TO PAY GENERAL OBLIGATION BONDS.
 (a)  At the time general obligation bonds are issued by the
 district under Section 1122.201, the board shall impose an ad
 valorem tax in an amount sufficient to create an interest and
 sinking fund to pay the principal of and interest on the bonds as
 the bonds mature.
 (b)  The tax required by this section together with any other
 tax the district imposes in any year may not exceed the limit
 approved by the voters at the election authorizing the imposition
 of taxes.
 Sec. 1122.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The
 district may issue general obligation bonds only if the bonds are
 authorized by a majority of the voters voting in an election held
 for that purpose.
 (b)  The board may order a bond election.  The order calling
 the election must specify:
 (1)  the nature and date of the election;
 (2)  the hours during which the polls will be open;
 (3)  the location of polling places;
 (4)  the amounts of the bonds to be authorized; and
 (5)  the maximum maturity of the bonds.
 (c)  Notice of a bond election must be given as provided by
 Chapter 1251, Government Code.
 (d)  The board shall declare the results of the election.
 Sec. 1122.204.  REVENUE BONDS.  (a)  The board may issue
 revenue bonds to:
 (1)  acquire, purchase, construct, repair, renovate,
 or equip buildings or improvements for hospital purposes;
 (2)  acquire sites to be used for hospital purposes; or
 (3)  acquire and operate a mobile emergency medical
 service to assist the district in carrying out its 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.
 (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 provided 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. 1122.205.  MATURITY.  District bonds must mature not
 later than 40 years after the date of their issuance.
 Sec. 1122.206.  EXECUTION OF BONDS.  (a)  The board
 president shall execute district bonds in the district's name.
 (b)  The board secretary shall countersign the bonds in the
 manner provided by Chapter 618, Government Code.
 Sec. 1122.207.  BONDS NOT SUBJECT TO TAXATION.  The
 following are not subject to taxation by the state or by a political
 subdivision of the state:
 (1)  bonds issued by the district;
 (2)  any transaction relating to the bonds; and
 (3)  profits made in the sale of the bonds.
 SUBCHAPTER F. AD VALOREM TAX
 Sec. 1122.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The
 board shall impose a tax on all property in the district subject to
 hospital district taxation.
 (b)  The tax may be used to pay:
 (1)  indebtedness issued or assumed by the district;
 and
 (2)  the maintenance and operating expenses of the
 district.
 (c)  The district may not impose a tax to pay the principal of
 or interest on revenue bonds issued under this chapter.
 Sec. 1122.252.  TAX RATE.  (a)  The tax rate on all taxable
 property in the district for all purposes may not exceed 75 cents on
 each $100 valuation of the property according to the most recent
 certified tax appraisal roll of the district.
 (b)  In setting the tax rate, the board shall consider
 district income from sources other than taxation.
 Sec. 1122.253.  TAX ASSESSOR-COLLECTOR.  The board may
 provide for the appointment of a tax assessor-collector for the
 district or may contract for the assessment and collection of taxes
 as provided by the Tax Code.
 SUBCHAPTER G. DISSOLUTION
 Sec. 1122.301.  DISSOLUTION; ELECTION.  (a)  The district
 may be dissolved only on approval of a majority of the 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 district's registered voters.
 (d)  The order calling the election 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)  Section 41.001(a), Election Code, does not apply to an
 election ordered under this section.
 Sec. 1122.302.  NOTICE OF ELECTION.  (a)  The board shall
 give notice of an election under this subchapter 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.
 (b)  The first publication must appear not later than the
 30th day before the date set for the election.
 Sec. 1122.303.  BALLOT.  The ballot for an election under
 this subchapter must be printed to permit voting for or against the
 proposition:  "The dissolution of the Hidalgo County Hospital
 District."
 Sec. 1122.304.  ELECTION RESULTS.  (a)  If a majority of the
 votes in an election under this subchapter favor dissolution, the
 board shall order that the district be dissolved.
 (b)  If a majority of the votes in an election under this
 subchapter 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. 1122.305.  TRANSFER OR ADMINISTRATION OF ASSETS.
 (a)  If a majority of the votes in an election under this subchapter
 favor dissolution, the board shall:
 (1)  transfer the land, buildings, improvements,
 equipment, and other assets belonging to the district to Hidalgo
 County or another governmental entity in Hidalgo County; or
 (2)  administer the property, assets, and debts of the
 district 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. 1122.306.  IMPOSITION OF TAX AND RETURN OF SURPLUS
 TAXES.  (a)  After the board determines 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 funds to the tax assessor-collector for Hidalgo
 County.
 Sec. 1122.307.  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 Hidalgo County Commissioners Court
 summarizing the board's actions in dissolving the district.
 (b)  Not later than the 10th day after the date the Hidalgo
 County Commissioners Court 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 2.  (a)  The members of the board of directors of the
 Hidalgo County Hospital District elected at the first election held
 under Section 1122.051, Special District Local Laws Code, as added
 by this Act, shall draw lots to determine which three directors
 serve a two-year term and which two directors serve a one-year term.
 (b)  Successor directors shall serve two-year terms.
 SECTION 3.  Proof of publication of the notice required in
 the enactment of this Act under the provisions of Section 9, Article
 IX, Texas Constitution, has been made in the manner and form
 provided by law pertaining to the enactment of local and special
 laws, and the notice is found and declared proper and sufficient to
 satisfy the requirement.
 SECTION 4.  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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