H.B. No. 2688

	AN ACT
	relating to the Dallam-Hartley Counties Hospital District, the
	Ector County Hospital District, and the Seminole Hospital District
	of Gaines County, Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 1018.155(b), Special District Local Laws
	Code, is amended to read as follows:
	(b)  The fiscal year may not be changed[:
	[(1)     during the time revenue bonds of the district are
	outstanding; or
	[(2)]  more than once in a 24-month period.
	SECTION 2.  Section 1024.053, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 1024.053.  BALLOT 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 a petition requesting that
	action.  The petition must:
	(1)  be signed by at least 50 registered voters of the
	district as determined by the most recent official list of
	registered voters;
	(2)  be filed not later than 5 p.m. on the same [62nd]
	day that an application for a place on the ballot must be filed
	under Section 144.005, Election Code [before the date of the
	election]; and
	(3)  specify the single-member district [commissioners
	precinct] the candidate wants to represent [or specify that the
	candidate wants to represent the district at large].
	SECTION 3.  Section 1094.051, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 1094.051.  BOARD ELECTION; TERM.  (a) The board
	consists of four directors elected from single-member districts and
	three [seven] directors elected from the district at large.
	(b)  Directors [Unless four-year terms are established under
	Section   285.081, Health and Safety Code, directors] serve staggered
	three-year [two-year] terms.
	SECTION 4.  Section 1094.052, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 1094.052.  NOTICE OF ELECTION. Notice [At least 10 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 of general circulation in
	Gaines County.
	SECTION 5.  Section 1094.053, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 1094.053.  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 be:
	[(1)  signed by at least 25 voters; and
	[(2)     filed at least 25 days before the date of the
	election].
	SECTION 6.  Section 1094.103, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 1094.103.  OVERSIGHT AND [MANAGEMENT,] CONTROL[, AND
	ADMINISTRATION]. The board shall oversee and [manage,] control[,
	and administer] the hospital system and the district's money and
	resources.
	SECTION 7.  Section 1094.110, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 1094.110.  CONSTRUCTION [OR PURCHASE] CONTRACTS. A
	construction [or purchase] contract that involves the expenditure
	of more than the amount provided by Section 271.024, Local
	Government Code, [$2,000] may be made only after advertising in the
	manner provided by Subchapter B, Chapter 271 [Chapter 252 and
	Subchapter C, Chapter 262], Local Government Code.
	SECTION 8.  Sections 1094.202(c) and (d), Special District
	Local Laws Code, are amended to read as follows:
	(c)  Any resident [property taxpayer] of the district 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 any changes in the proposed
	budget that the board judges to be in the interest of the residents
	of the district [taxpayers] and that the law warrants.
	SECTION 9.  Section 1094.205, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 1094.205.  FISCAL YEAR. (a) The district operates
	according to a fiscal year that begins on October 1 and ends on
	September 30, or as established by the board.
	(b)  The fiscal year may not be changed if revenue bonds of
	the district are outstanding or more than once in a 24-month period.
	SECTION 10.  Section 1094.209(a), Special District Local
	Laws Code, is amended to read as follows:
	(a)  The board shall select one or more banks [in the
	district] to serve as a depository for district money.
	SECTION 11.  Section 1094.253(b), Special District Local
	Laws Code, is amended to read as follows:
	(b)  The order calling the election shall provide for clerks
	as in county elections and must specify:
	(1)  the date of the election;
	(2)  the location of the polling places;
	(3)  the presiding and alternate election judges for
	each polling place;
	(4)  the amount of the bonds to be authorized; and
	(5)  the maximum maturity [interest rate] of the bonds.
	SECTION 12.  Section 1094.254, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 1094.254.  MATURITY OF GENERAL OBLIGATION BONDS.
	District general obligation bonds must mature not later than the
	maximum maturity stated in the order calling the election [40 years
	after the date of issuance].
	SECTION 13.  Subchapter F, Chapter 1094, Special District
	Local Laws Code, is amended by adding Section 1094.259 to read as
	follows:
	Sec. 1094.259.  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
	1094.252 and revenue and other sources as authorized by Section
	1094.256.
	SECTION 14.  Subchapter F, Chapter 1094, Special District
	Local Laws Code, is amended by adding Section 1094.260 to read as
	follows:
	Sec. 1094.260.  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 physical 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 issuance of the bonds;
	(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 15.  Section 1094.303, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 1094.303.  ASSESSMENT AND COLLECTION OF TAXES [BY
	COUNTY 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. [(a) This section applies unless the board elects to
	have taxes assessed and collected under Section 1094.304.
	[(b)     The tax assessor-collector of Gaines County shall
	assess and collect taxes imposed by the district.]
	SECTION 16.  Chapter 1094, Special District Local Laws Code,
	is amended by adding Subchapter H to read as follows:
	SUBCHAPTER H. DISSOLUTION
	Sec. 1094.401.  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 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. 1094.402.  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. 1094.403.  BALLOT. The ballot for an election under
	this subchapter must be printed to permit voting for or against the
	proposition: "The dissolution of the Seminole Hospital District of
	Gaines County, Texas."
	Sec. 1094.404.  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
	to dissolve the district.
	Sec. 1094.405.  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 Gaines
	County or another governmental entity in Gaines 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. 1094.406.  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 county tax assessor-collector.
	Sec. 1094.407.  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 Gaines County summarizing the board's actions in dissolving the
	district.
	(b)  Not later than the 10th day after the date the
	Commissioners Court of Gaines 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 17.  (a) The election of the board of directors of
	the Seminole Hospital District of Gaines County, Texas, scheduled
	to be held in 2014 must be held.  The directors elected to places 3
	and 4 at the election shall serve two-year terms.  A director
	elected to an at-large position on the board at the election held in
	2014 shall serve a three-year term.
	(b)  The election of the board of directors scheduled to be
	held in 2015 must be held, and all directors elected at that
	election shall serve three-year terms.
	(c)  The directors elected at the elections to be held in
	2016, 2017, and 2018 shall serve three-year terms.
	SECTION 18.  (a)  Except as provided by Subsection (b) of
	this section:
	(1)  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; and
	(2)  if this Act does not receive the vote necessary for
	immediate effect, this Act takes effect September 1, 2013.
	(b)  Section 1094.051, Special District Local Laws Code, as
	amended by this Act, takes effect January 1, 2014.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2688 was passed by the House on May 2,
	2013, by the following vote:  Yeas 147, Nays 0, 2 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 2688 on May 22, 2013, by the following vote:  Yeas 148, Nays 0,
	2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2688 was passed by the Senate, with
	amendments, on May 20, 2013, by the following vote:  Yeas 31, Nays
	0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor