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  S.B. No. 490
 
 
 
 
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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 490 passed the Senate on
  March 24, 2011, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 490 passed the House on
  May 19, 2011, by the following vote:  Yeas 148, Nays 0, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor