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  H.B. No. 2907
 
 
 
 
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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2907 was passed by the House on May 8,
  2013, by the following vote:  Yeas 147, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2907 was passed by the Senate on May
  22, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor