83R16445 CJC-F
	By: Craddick	H.B. No. 1969
	Substitute the following for H.B. No. 1969:
	By:  Hunter	C.S.H.B. No. 1969

	A BILL TO BE ENTITLED
	AN ACT
	relating to the McCamey County Hospital District; authorizing the
	issuance of bonds; authorizing the imposition of a tax.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 1058.051(b), Special District Local Laws
	Code, as effective April 1, 2013, is amended to read as follows:
	(b)  Directors [Unless four-year terms are established under
	Section 285.081, Health and Safety Code, directors] serve staggered
	four-year [two-year] terms with the terms of two or three directors
	expiring each odd-numbered year as appropriate.
	SECTION 2.  Section 1058.052, Special District Local Laws
	Code, as effective April 1, 2013, is amended to read as follows:
	Sec. 1058.052.  NOTICE OF ELECTION.  Notice [At least 30 days
	before the date of a directors' election, notice] of an [the]
	election of directors must be published in accordance with Section
	4.003, Election Code, [one time] in a newspaper of general
	circulation in Upton County.
	SECTION 3.  Section 1058.053(a), Special District Local Laws
	Code, as effective April 1, 2013, is amended to read as follows:
	(a)  To qualify for election to the board, a person must:
	(1)  be at least 18 years of age;
	(2)  have been a resident of the district for at least
	two years; and
	(3)  be a qualified voter of the district [; and
	[(4)     own taxable property in the district and have
	duly rendered that property for taxation].
	SECTION 4.  Sections 1058.059(a) and (b), Special District
	Local Laws Code, as effective April 1, 2013, are amended to read as
	follows:
	(a)  The board shall appoint a qualified person to serve
	[general manager to be known] as the district administrator.
	(b)  [The district administrator must be a qualified
	practitioner of medicine or be specifically trained for work of
	that type.]  The district administrator may not be a director.
	SECTION 5.  The heading to Section 1058.106, Special
	District Local Laws Code, as effective April 1, 2013, is amended to
	read as follows:
	Sec. 1058.106.  CONSTRUCTION [AWARD OF CERTAIN] CONTRACTS.
	SECTION 6.  Section 1058.106(a), Special District Local Laws
	Code, as effective April 1, 2013, is amended to read as follows:
	(a)  The board, on behalf of the district, may enter into a
	construction contract that exceeds the amount provided by Section
	271.024, Local Government Code, [$2,000] only after advertising in
	the manner provided by Subchapter B, Chapter 271, Local Government
	Code [with the lowest qualified bidder].
	SECTION 7.  Section 1058.152(c), Special District Local Laws
	Code, as effective April 1, 2013, 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 8.  Section 1058.153, Special District Local Laws
	Code, as effective April 1, 2013, is amended to read as follows:
	Sec. 1058.153.  FISCAL YEAR.  (a) The district's fiscal
	year 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 9.  Sections 1058.156(a) and (b), Special District
	Local Laws Code, as effective April 1, 2013, are amended to read as
	follows:
	(a)  The board shall designate one or more banks [in the
	district] to serve as a depository for district money.
	(b)  All 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 or
	assumed by the district, shall be immediately deposited on receipt
	with a depository bank[, except that sufficient money must be
	remitted to an appropriate bank to pay the principal of and interest
	on the district's outstanding bonds, or other obligations assumed
	by the district, on or before the maturity date of the principal and
	interest].
	SECTION 10.  Subchapter E, Chapter 1058, Special District
	Local Laws Code, as effective April 1, 2013, is amended by adding
	Sections 1058.206, 1058.207, 1058.208, and 1058.209 to read as
	follows:
	Sec. 1058.206.  REVENUE BONDS.  (a) The board may issue
	revenue bonds to:
	(1)  purchase, construct, acquire, repair, renovate,
	or equip buildings and 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 revenue 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 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 a county hospital
	authority.
	Sec. 1058.207.  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. 1058.208.  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
	1058.202 and revenue and other sources as authorized by Section
	1058.206.
	Sec. 1058.209.  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)  construction costs of a project or facility to be
	provided through the bonds, including the payment of related
	professional services and expenses.
	SECTION 11.  Section 1058.253, Special District Local Laws
	Code, as effective April 1, 2013, is amended to read as follows:
	Sec. 1058.253.  [ASSESSMENT AND COLLECTION BY COUNTY] 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 [Unless an election is held under
	Section 1058.254, the tax assessor-collector of Upton County shall
	assess and collect taxes imposed by the district].
	SECTION 12.  Chapter 1058, Special District Local Laws Code,
	as effective April 1, 2013, is amended by adding Subchapter G to
	read as follows:
	SUBCHAPTER G. DISSOLUTION
	Sec. 1058.301.  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.
	Sec. 1058.302.  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. 1058.303.  BALLOT. The ballot for an election under
	this subchapter must be printed to permit voting for or against the
	proposition: "The dissolution of the McCamey County Hospital
	District."
	Sec. 1058.304.  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. 1058.305.  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 Upton
	County or another governmental entity in Upton 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. 1058.306.  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. 1058.307.  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 Upton County summarizing the board's actions in dissolving the
	district.
	(b)  Not later than the 10th day after the date the
	Commissioners Court of Upton 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 13.  Sections 1058.106(b), (c), (d), (e), and (f),
	1058.254, and 1058.255, Special District Local Laws Code, are
	repealed.
	SECTION 14.  (a)  The election of the board of directors of
	the McCamey County Hospital District scheduled before the effective
	date of this Act to be held in May 2014 must be held, and the three
	directors elected at that election shall serve three-year terms.
	(b)  The election of the board of directors scheduled to be
	held in May 2015 must be held, and the directors elected at that
	election shall serve four-year terms.
	(c)  The directors elected at the elections to be held in May
	2017 and May 2019 shall serve four-year terms.
	SECTION 15.  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.