CHAPTER 1012. CHILDRESS COUNTY HOSPITAL DISTRICT

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1012. CHILDRESS COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1012.001. 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 Childress County Hospital District.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.002. AUTHORITY FOR CREATION. The district is created

under the authority of Section 9, Article IX, Texas Constitution,

and has the rights, powers, and duties prescribed by this

chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.003. ESSENTIAL PUBLIC FUNCTION. The district performs

an essential public function in carrying out the purposes of this

chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Childress County,

Texas.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support and maintenance of the district may not

become a charge against or obligation of this state.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The

legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1012.051. BOARD ELECTION; TERM. (a) The district is

governed by a board of seven directors elected from the district

at large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms, with three

directors elected in even-numbered years and four directors

elected in odd-numbered years; and

(2) a director's election shall be held each year on the May

uniform election date prescribed by Section 41.001, Election

Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.052. QUALIFICATIONS FOR OFFICE. (a) To be eligible

to hold office as a director, a person must be:

(1) a district resident; and

(2) a qualified voter.

(b) An employee of the district may not serve as a director.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.053. BOARD VACANCY. If a vacancy occurs in the office

of director, the remaining directors by majority vote shall

appoint a director for the unexpired term.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.054. OFFICERS. (a) The board shall elect a president

and vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) If the president is absent or fails and declines to act, the

vice president shall perform the president's duties and exercise

the president's powers under this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.055. COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in attending to district business. The expenses must

be:

(1) reported in the district's records; and

(2) approved by the remainder of the board.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.056. VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.057. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. (a)

The board shall:

(1) keep an account of all board meetings and proceedings; and

(2) maintain at the district's principal office all district

records and accounts, including all contracts, notices, duplicate

vouchers, and duplicate receipts.

(b) The information described by Subsection (a) shall be open to

public inspection at the district's principal office at all

reasonable times.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.058. INDIVIDUAL LIABILITY OF DIRECTORS. A director is

individually liable only for the director's individual

misapplication of public money.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.059. CHIEF EXECUTIVE OFFICER; ASSISTANT CHIEF

EXECUTIVE OFFICER. (a) The board shall appoint a qualified

person to be known as the chief executive officer of the

district.

(b) The chief executive officer may appoint an assistant to the

chief executive officer.

determined by the board.

(d) The board may execute an employment contract with the chief

executive officer for a term of not more than three years. The

employment contract may be renewed or extended annually.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.060. GENERAL DUTIES OF CHIEF EXECUTIVE OFFICER. The

chief executive officer shall:

(1) stay informed on the latest methods of hospital

administration and the care of hospital patients; and

(2) subject to the limitations prescribed by the board:

(A) supervise the work and activities of the district; and

(B) direct the affairs of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.061. EMPLOYEES. The board shall authorize the chief

executive officer to employ nurses, technicians, and other

employees for the efficient operation of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.062. LEGAL COUNSEL; OTHER PROFESSIONAL SERVICES. The

board may employ legal counsel or contract for other professional

services as the board considers advisable.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.063. RECRUITMENT OF MEDICAL PERSONNEL. (a) The board

may spend district money to recruit physicians, nurses, and other

trained medical personnel.

(b) The board may pay the tuition or other expenses of a

full-time medical student or other student in a health occupation

who:

(1) is enrolled in and is in good standing at an accredited

medical school, college, or university; and

(2) contractually agrees to become a district employee or

independent contractor in return for that assistance.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.064. PERSONNEL CONTRACTS. (a) The board may contract

to provide administrative and other personnel for the operation

of the hospital facilities.

(b) The term of the contract may not exceed 25 years.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.065. EDUCATIONAL PROGRAMS; COURSES.The board may

provide or contract for the provision of educational programs or

courses for district employees and medical staff.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.066. RETIREMENT BENEFITS. The board may provide

retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) electing to participate in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is

eligible to participate.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1012.101. DISTRICT RESPONSIBILITY. The district has full

responsibility for:

(1) operating all hospital facilities for providing medical and

hospital care to indigent persons in the district; and

(2) providing medical and hospital care for the district's needy

inhabitants.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.102. RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION

AND DEBT. Childress County or a municipality in Childress County

may not impose a tax or issue bonds or other obligations for

hospital purposes or for medical treatment of indigent persons in

the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. (a)

The board shall manage, control, and administer the district's

hospitals and hospital system.

(b) The board may delegate to the chief executive officer the

authority to manage, control, and administer the hospital, the

hospital system, and the district's business, money, and

resources under the board's oversight.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.104. HOSPITAL SYSTEM. The district shall provide for

the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing, or

renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for hospital

purposes.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.105. RULES. The board may adopt rules for the

operation of the district and as required to administer this

chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.106. PURCHASING AND ACCOUNTING PROCEDURES. The board

may prescribe:

(1) the method and manner of the making of purchases and

expenditures by and for the district; and

(2) all accounting and control procedures.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.

(a) The board shall determine the type, number, and location of

buildings required to maintain an adequate hospital system.

(b) The board may:

(1) purchase or lease property, including facilities or

equipment, for the district to use in the hospital system; and

(2) mortgage or pledge the property as security for the payment

of the purchase price.

individuals, corporations, or other legal entities.

(d) The board may sell or otherwise dispose of the district's

property, including facilities or equipment.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.108. EMINENT DOMAIN. (a) The district may exercise

the power of eminent domain to acquire a fee simple or other

interest in any type of property located in district territory if

the interest is necessary or convenient for the district to

exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.109. GIFTS AND ENDOWMENTS. The board may accept for

the district a gift or endowment to be held in trust and

administered by the board for the purposes and under the

directions, limitations, or other provisions prescribed in

writing by the donor that are not inconsistent with the proper

management and objectives of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.110. CONSTRUCTION CONTRACTS. A construction contract

that requires the expenditure of more than the amount provided by

Section 271.024, Local Government Code, may be made only after

competitive bidding as provided by Subchapter B, Chapter 271,

Local Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.111. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND

TREATMENT. (a) The board may contract with a county or

municipality located outside the district's boundaries for the

care and treatment of a sick or injured person of that county or

municipality.

(b) The board may contract with this state or a federal agency

for the treatment of a sick or injured person for whom this state

or the agency is responsible.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.112. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a

patient who resides in the district is admitted to a district

facility, the chief executive officer shall have an inquiry made

into the circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for the

patient's support.

(b) If the chief executive officer determines that the patient

or those relatives cannot pay all or part of the costs of the

care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

or those relatives can pay for all or part of the costs of the

patient's care and treatment, the chief executive officer shall

issue an order directing the patient or those relatives to pay

the district a specified amount each week for the patient's

support. The amount ordered must be proportionate to the

person's financial ability and may not exceed the actual per

capita cost of maintenance.

(d) The chief executive officer may collect the amount from the

patient's estate, or from a relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) The board may institute a suit to collect an amount owed to

the district by a patient who has not been determined under this

section to be unable to pay.

(f) If there is a dispute as to the ability to pay, or doubt in

the mind of the chief executive officer, the board shall hold a

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

(g) A final order of the board may be appealed to the district

court. The substantial evidence rule applies to the appeal.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.113. AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1012.151. BUDGET. The chief executive officer shall

prepare an annual budget for approval by the board.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The

board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in accordance

with Chapter 551, Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.153. AMENDMENT OF BUDGET. The budget may be amended

as required by circumstances. The board must approve all

amendments.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.154. RESTRICTION ON EXPENDITURES. Money may be spent

only for an expense included in the budget or an amendment to the

budget.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.155. FISCAL YEAR. (a) The district operates on a

fiscal year 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.156. ANNUAL AUDIT. (a) The board annually shall have

an audit made of the district's financial condition.

(b) The audit shall be open to inspection at all times at the

district's principal office.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.157. FINANCIAL REPORT. As soon as practicable after

the close of each fiscal year, the chief executive officer shall

prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursement of that money.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.158. DEPOSITORY. (a) The board shall select one or

more banks to serve as a depository for district money.

(b) District money shall be immediately deposited on receipt

with a depository bank, except that sufficient money must be

remitted to the appropriate bank to pay the principal of and

interest on the district's outstanding bonds or other obligations

on or before the maturity date of the principal and interest.

by the Federal Deposit Insurance Corporation, the money must be

secured in the manner provided by law for the security of county

funds.

(d) Membership on the district's board of an officer or director

of a bank disqualifies the bank from being selected as a

depository bank.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.159. GENERAL 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 in the next

12-month period 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.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.160. AUTHORITY TO BORROW MONEY IN EMERGENCY; 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 if the board declares

that:

(1) money is not available to meet authorized obligations of the

district; and

(2) an emergency exists.

(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 in the next

12-month period 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.

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.

(d) The board may not spend money obtained from a loan under

this section for any purpose other than:

(1) the purpose for which the board declared an emergency; and

(2) if district taxes or bonds are pledged to pay the loan, the

purpose for which the pledged taxes were imposed or the pledged

bonds were authorized.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER E. BONDS

Sec. 1012.201. GENERAL OBLIGATION BONDS. The board may issue

and sell general obligation bonds in the name and on the faith

and credit of the district, for hospital or hospital system

purposes, to:

(1) purchase, construct, acquire, repair, or renovate buildings

or improvements;

(2) equip buildings or improvements; or

(3) acquire and operate a mobile emergency medical or air

ambulance service.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued under Section 1012.201,

the board shall impose an ad valorem tax at a rate sufficient to

create an interest and sinking fund and 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 ad

valorem tax the district imposes may not exceed the limit

approved by the voters at the election authorizing the imposition

of the tax.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.203. GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) Section 41.001(a), Election Code, does not apply to a bond

election ordered by the board.

shall be conducted in accordance with Chapter 1251, Government

Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.204. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The

board president shall execute the general obligation bonds in the

district's name.

(b) The board secretary shall attest the bonds as provided by

Chapter 618, Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.205. REVENUE BONDS. (a) The board may issue and sell

revenue bonds in the name and on the faith and credit of the

district to:

(1) purchase, construct, acquire, repair, renovate, or equip

buildings or improvements for hospitals and the hospital system;

(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.

of trust on all or part of the district's property.

(d) The bonds must be issued in the manner provided by Sections

264.042, 264.043, and 264.046-264.049, Health and Safety Code,

for issuance of revenue bonds by a county hospital authority.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.206. MATURITY OF BONDS. District bonds must mature

not later than 40 years after the date of issuance.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.207. BONDS EXEMPT FROM TAXATION. The following are

exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER F. TAXES

Sec. 1012.251. IMPOSITION OF AD VALOREM TAXES. (a) The board

may impose a tax on property in the district subject to 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.

interest on revenue bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.252. TAX RATE. (a) The board may impose the tax at a

rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of taxable property in the district.

of the district from sources other than taxation.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.253. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER G. DISSOLUTION

Sec. 1012.301. 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.

petition requesting an election that is signed by a number of

residents of the district equal to 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.302. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.303. BALLOT. The ballot for an election under this

subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Childress County Hospital

District."

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.304. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.305. TRANSFER, SALE, OR ADMINISTRATION OF ASSETS. (a)

If a majority of the votes in the election under this subchapter

favor dissolution, the board shall:

(1) transfer the land, buildings, improvements, equipment, and

other assets that belong to the district to Childress County or

another governmental entity in Childress County;

(2) sell the assets and liabilities to another person; or

(3) 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.

administers the property, assets, and debts under Subsection

(a)(3), the district is dissolved when all money is disposed of

and all district debts have been paid or settled.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a)

The dissolution of the district and the sale or transfer of the

district's assets or liabilities to another person may not

contravene a trust indenture or bond resolution relating to the

district's outstanding bonds. The dissolution and sale or

transfer does not diminish or impair the rights of a holder of an

outstanding bond, warrant, or other obligation of the district.

(b) The sale or transfer of the district's assets and

liabilities must satisfy the debt and bond obligations of the

district in a manner that protects the interests of the residents

of the district, including the residents' collective property

rights in the district's assets.

assets except for due compensation unless:

(1) the transfer is made to another governmental entity that

serves the district; and

(2) the transferred assets are to be used for the benefit of the

district's residents.

(d) A grant from federal funds is an obligation to be repaid in

satisfaction.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.307. 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.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1012.308. 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 Childress County summarizing the board's actions in

dissolving the district.

(b) Not later than the 10th day after the date the Commissioners

Court of Childress 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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