H.B. No. 2500
1-1 AN ACT
1-2 relating to the powers, duties, and expansion of the City of
1-3 Amarillo Hospital District; authorizing the creation of public
1-4 debt.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 1, Chapter 136, Acts of the 55th
1-7 Legislature, Regular Session, 1957, is amended to read as follows:
1-8 Sec. 1. The City of Amarillo, Texas, may be constituted a
1-9 Hospital District, which district shall, unless expanded under
1-10 Section 19 of this Act or other applicable law, always be
1-11 coextensive <co-extensive> with the incorporated limits of the City
1-12 of Amarillo, Texas, for the purpose of owning and operating a
1-13 hospital or hospital system for indigent and needy persons, as
1-14 hereinafter set out, and may take over the hospital or hospital
1-15 system, either owned separately by Potter County or jointly with
1-16 the City of Amarillo, or may provide for the establishment of a
1-17 hospital or hospital system to furnish medical aid and hospital
1-18 care to the indigent and needy persons residing in said Hospital
1-19 District. The name of the district shall be specified by the
1-20 governing body of the City. Said district shall constitute a body
1-21 politic and corporate, and its functions are declared to be
1-22 governmental and public.
1-23 SECTION 2. Subsections a, b, c, and d, Section 3, Chapter
1-24 136, Acts of the 55th Legislature, Regular Session, 1957, are
2-1 amended to read as follows:
2-2 a. The city governing body shall have the power and
2-3 authority to issue and sell as the obligations of such Hospital
2-4 District, and in the name and upon the faith and credit of such
2-5 Hospital District, bonds for the acquisition, purchase,
2-6 construction, equipment and enlargement of the hospital or hospital
2-7 system, and for any or all of such purposes; provided, that a
2-8 sufficient tax shall be levied to create an interest and sinking
2-9 fund to pay the interest and principal as same matures provided
2-10 said tax together with any other taxes levied for said district
2-11 shall not exceed Seventy-five Cents (75›) in any one year. Such
2-12 bonds shall be executed in the name of the Hospital District and on
2-13 its behalf by the Mayor of the City of Amarillo, and countersigned
2-14 by the City Secretary, or, in lieu of such manual signatures,
2-15 facsimile signatures of the Mayor or City Secretary, or both may be
2-16 printed on the bonds as provided by the Texas Uniform Facsimile
2-17 Signature of Public Officials Act (Article 717j-1, Vernon's Texas
2-18 Civil Statutes), and its subsequent amendments <Chapter 293, Acts
2-19 of the Fifty-fourth Legislature>, and shall be subject to the same
2-20 requirements in the matter of approval thereof by the Attorney
2-21 General of the State of Texas and the registration thereof by the
2-22 Comptroller of Public Accounts of the State of Texas as are by law
2-23 provided for such approval and registration of bonds of such city;
2-24 and the approval of such bonds by the Attorney General shall have
2-25 the same force and effect as is by law given to his approval of
2-26 bonds of such city. No such bonds shall be issued by such Hospital
2-27 District (except refunding bonds) until authorized by a majority
3-1 vote of the legally qualified property taxpaying voters residing in
3-2 such Hospital District, voting at an election called and held in
3-3 accordance with the provisions of law relating to city bonds. Such
3-4 election may be called by the governing body of the city of its own
3-5 motion, or shall be called by it after request therefor by the
3-6 Board of Hospital Managers; and the same persons shall be
3-7 responsible for the conduct of such election and the arrangements
3-8 of all details thereof as the persons charged therewith in
3-9 connection with other city-wide elections. The cost of any such
3-10 election shall be a charge upon the Hospital District and its
3-11 funds; and the Hospital District shall make provision for the
3-12 payment thereof before the governing body of the city shall be
3-13 required to order such an election.
3-14 b. In the manner hereinabove provided, the bonds of such
3-15 Hospital District may, without the necessity of any election
3-16 therefor, be issued for the purpose of refunding and paying off any
3-17 bonded indebtedness theretofore assumed by such Hospital District
3-18 and any bonds theretofore issued by such Hospital District; such
3-19 refunding bonds may be sold and the proceeds thereof applied to the
3-20 payment of any such outstanding bonds or may be exchanged in whole
3-21 or in part for not less than a like amount of said outstanding
3-22 bonds and interest matured thereon, but unpaid. The refunding
3-23 bonds shall mature serially or otherwise in not to exceed forty
3-24 (40) years <and bear interest at a rate not to exceed six per cent
3-25 (6%)>.
3-26 <c. If the city has voted bonds to provide hospital
3-27 facilities, but such bonds have not been sold at the date of the
4-1 creation of the Hospital District, the authority for such bonds
4-2 shall be canceled, and they shall not be sold.>
4-3 d. All bonds of the district shall be and are hereby
4-4 declared to be legal and authorized investments for banks, savings
4-5 banks, trust companies, savings <building> and loan associations,
4-6 insurance companies, fiduciaries, trustees, guardians, and the
4-7 sinking funds of cities, towns, villages, counties, school
4-8 districts, or other political subdivisions of the State of Texas.
4-9 Such bonds shall be eligible to secure the deposit of any and all
4-10 public funds of the State of Texas, and any and all public funds of
4-11 cities, towns, villages, counties, school districts, or other
4-12 political corporations or subdivisions of the State of Texas; and
4-13 such bonds shall be lawful and sufficient security for said
4-14 deposits to the extent of their value, when accompanied by all
4-15 unmatured coupons appurtenant thereto.
4-16 SECTION 3. Subsection (d), Section 3A, Chapter 136, Acts of
4-17 the 55th Legislature, Regular Session, 1957, is amended to read as
4-18 follows:
4-19 (d) The bonds may be issued to mature serially or otherwise
4-20 not to exceed forty (40) years from their date. The total
4-21 principal of revenue bonds issued and outstanding <and unpaid> may
4-22 not exceed $20 million <$7,500,000>.
4-23 SECTION 4. Section 3B, Chapter 136, Acts of the 55th
4-24 Legislature, Regular Session, 1957, is amended by adding Subsection
4-25 g to read as follows:
4-26 g. This section is cumulative of any other law establishing
4-27 the manner in which Randall County, or any portion of Randall
5-1 County, may participate in, be annexed to, or otherwise served by
5-2 the Amarillo Hospital District.
5-3 SECTION 5. Section 5, Chapter 136, Acts of the 55th
5-4 Legislature, Regular Session, 1957, is amended to read as follows:
5-5 Sec. 5. a. The governing body of the City of Amarillo shall
5-6 appoint a Board of Hospital Managers, consisting of not less than
5-7 five (5) nor more than seven (7) members, who shall serve for a
5-8 term of two (2) years, with overlapping terms if desired, and with
5-9 initial appointments to terms of office arranged accordingly,
5-10 without pay, and whose duties shall be to manage, control and
5-11 administer the hospital or hospital system of the Hospital
5-12 District. The governing body of the City of Amarillo may, by
5-13 majority vote, remove any member of the Board of Hospital Managers
5-14 with or without cause. The district, through its Board of
5-15 Managers, shall have the power and authority to sue and be sued in
5-16 its name. The Board is authorized to promulgate rules and
5-17 regulations for the operation of the hospital or hospital system.
5-18 b. The Board shall appoint a general manager, to be known as
5-19 the Administrator of the Hospital District. The Administrator
5-20 <shall hold office for a term not exceeding two (2) years, and>
5-21 shall receive such compensation as may be fixed by the Board. The
5-22 Administrator shall be subject to removal at any time by the Board.
5-23 The Administrator shall, before entering into the discharge of his
5-24 duties, execute a bond payable to the District, in the amount of
5-25 not less than Ten Thousand Dollars ($10,000), conditioned that he
5-26 shall well and faithfully perform the duties required of him, and
5-27 containing such other conditions as the Board may require. The
6-1 Administrator shall perform all duties which may be required of him
6-2 by the Board, and shall supervise all of the work and activities of
6-3 the district, and have general direction of the affairs of the
6-4 district, within such limitations as may be prescribed by the
6-5 Board. He shall be a person qualified by training and experience
6-6 for the position of Administrator.
6-7 c. The Board of Managers shall have the authority to employ
6-8 such doctors, technicians, nurses and other employees of every kind
6-9 and character as may be deemed advisable for the efficient
6-10 operation of the hospital or hospital system<; provided that no
6-11 contract or term of employment shall exceed the period of two (2)
6-12 years>. The Board of Managers may delegate to the Administrator
6-13 the authority to employ persons for the Hospital District.
6-14 d. The Board of Managers, with the approval of the governing
6-15 body of the City of Amarillo, shall be authorized to contract with
6-16 any county or other incorporated municipality for care and
6-17 treatment of such county's or city's sick, diseased and injured
6-18 persons, and with the State and agencies of the Federal Government
6-19 for the care of and treatment of such persons for whom the State
6-20 and such agencies of the Federal Government are responsible.
6-21 Further, <under the same conditions,> the Board of Managers may
6-22 <enter into such contracts with the State and Federal Government as
6-23 may be necessary to> establish or continue a retirement program for
6-24 the benefit of its employees and may contract with the State or
6-25 Federal Government for that purpose.
6-26 e. A majority of the Board of Hospital Managers shall
6-27 constitute a quorum for the transaction of any business. From
7-1 among its members the Board shall choose a Chairman, who shall
7-2 preside; or in his absence a Chairman pro tem shall preside; and
7-3 the Administrator or any member of the Board may be appointed
7-4 secretary. The Board shall require the secretary to keep suitable
7-5 records of all proceedings of each meeting of the Board. Such
7-6 record shall be read and signed after each meeting by the Chairman
7-7 or the member presiding, and attested by the secretary. The Board
7-8 may <shall> have a seal, on which shall be engraved the name of the
7-9 Hospital District; and any <said> seal shall be kept by the
7-10 secretary and may be used in authentication of <all> acts of the
7-11 Board.
7-12 f. The Board of Managers may purchase insurance to protect
7-13 the members of the Board from any liability that arises from
7-14 serving on the Board.
7-15 g. The Board of Managers shall determine the eligibility
7-16 standards for Hospital District assistance and the consideration to
7-17 be received for its services, products, and the use of its
7-18 facilities and may use the pricing methods it considers advisable,
7-19 including discount and per diem pricing.
7-20 h. The Board of Managers may use Hospital District funds,
7-21 enter into agreements, and take other necessary action to conduct,
7-22 participate in, or assist health care education programs for the
7-23 public and for current or potential medical staff members or
7-24 employees.
7-25 i. The Board of Managers may use Hospital District funds to
7-26 ensure the qualification and continued qualification of physicians
7-27 and other personnel.
8-1 SECTION 6. Section 5a, Chapter 136, Acts of the 55th
8-2 Legislature, Regular Session, 1957, is amended to read as follows:
8-3 Sec. 5a. The Board of Managers<, with the approval of the
8-4 governing body of the City of Amarillo,> is authorized to contract
8-5 with West Texas State University or another educational institution
8-6 for the coordination of educational <the B.S. degree and diploma>
8-7 programs in recognized health care professions, including pharmacy,
8-8 nursing, and allied health professions, to be conducted by each and
8-9 for cooperative funding of the expense of an instructional program
8-10 in those programs <nursing>. The Hospital District may provide
8-11 services, funds, or equipment and may make its facilities available
8-12 to West Texas State University or other educational institutions
8-13 for clinical instruction, research, or programs that grant degrees.
8-14 SECTION 7. Sections 10 and 12, Chapter 136, Acts of the 55th
8-15 Legislature, Regular Session, 1957, are amended to read as follows:
8-16 Sec. 10. The <Within thirty (30) days after the appointment
8-17 of the Board of Hospital Managers of any district created under
8-18 this Act, the said> Board of Managers shall select one or more
8-19 depositories <a depository> for such district in the manner
8-20 provided by law for the selection of county depositories; and such
8-21 depository or depositories shall be the depository or depositories
8-22 of such district <for a period of two (2) years thereafter, or>
8-23 until one or more successors are <its successor is> selected and
8-24 qualified. <In the alternative, the Board may elect to use the
8-25 depository theretofore selected by the county.>
8-26 Sec. 12. The Board of Hospital Managers may be represented
8-27 in all legal matters by the attorneys charged with representing the
9-1 City of Amarillo in civil matters, and in such event the District
9-2 shall contribute sufficient funds to the general fund of the City
9-3 of Amarillo for the account of the budget of such attorneys to pay
9-4 all additional salaries and expenses incurred by such attorneys in
9-5 performing the duties required of them by the district; provided,
9-6 however, that the Board may in its discretion employ legal counsel
9-7 of its own selection if it deems the action advisable.
9-8 SECTION 8. Chapter 136, Acts of the 55th Legislature,
9-9 Regular Session, 1957, is amended by adding Section 13A to read as
9-10 follows:
9-11 Sec. 13A. Not later than the first day of each fiscal year,
9-12 the Board of Managers shall adopt requirements to be used by the
9-13 Hospital District in determining if a person is eligible for
9-14 hospital, medical, or health care assistance from the District.
9-15 The Board shall adopt an application procedure that specifies the
9-16 documentation required in support of the application for
9-17 assistance.
9-18 SECTION 9. Subsection a, Section 14, Chapter 136, Acts of
9-19 the 55th Legislature, Regular Session, 1957, is amended to read as
9-20 follows:
9-21 a. Whenever a patient has been admitted to the facilities of
9-22 the Hospital District from Potter County or the Hospital District,
9-23 the Administrator shall cause inquiry to be made as to his
9-24 circumstances, and of the relatives of such patient legally liable
9-25 for his support. If it is determined <he finds> that such patient
9-26 or said relatives are liable to pay for his care and treatment in
9-27 whole or in part, an order shall be made directing such patient, or
10-1 said relatives, to pay <to> the <treasurer of the> Hospital
10-2 District for the support of such patient a specified sum <per week,
10-3 in proportion to their financial ability, but such sum shall not
10-4 exceed the actual per capita cost of maintenance>. The
10-5 Administrator shall have power and authority to collect such sum
10-6 from the estate of the patient, or his relatives legally liable for
10-7 his support, in the manner provided by law for the collection of
10-8 expenses of the last illness of a deceased person. <If the
10-9 Administrator finds that such patient or said relatives are not
10-10 able to pay, either in whole or in part, for his care and treatment
10-11 in such hospital, the same shall become a charge upon the Hospital
10-12 District. Should there be a dispute as to the ability to pay, or
10-13 doubt in the mind of the Administrator, the County Judge of Potter
10-14 County shall hear and determine same, after calling witnesses, and
10-15 shall make such order as may be proper, from which appeal shall lie
10-16 to the district court by either party to the dispute.>
10-17 SECTION 10. Section 15, Chapter 136, Acts of the 55th
10-18 Legislature, Regular Session, 1957, is amended to read as follows:
10-19 Sec. 15. Said Board of Managers of the Hospital District is
10-20 authorized on behalf of said Hospital District to accept donations,
10-21 gifts, and endowments for the Hospital District, to be held in
10-22 trust or otherwise and administered by the Board of Managers for
10-23 such purposes and under such directions, limitations, and
10-24 provisions as may be prescribed in writing by donor, not
10-25 inconsistent with proper management and the objectives <objects> of
10-26 the Hospital District, and may establish foundations or nonprofit
10-27 corporations for these purposes.
11-1 SECTION 11. Section C, Section 16, Chapter 136, Acts of the
11-2 55th Legislature, Regular Session, 1957, is amended to read as
11-3 follows:
11-4 Sec. C. The creation of said District by the City Commission
11-5 of the City of Amarillo and the appointment of the Board of
11-6 Hospital Managers by said Commission are hereby validated<,
11-7 provided, however, that this validation provision shall not be
11-8 applicable if litigation attacking the validity of the District is
11-9 pending at the time this Act becomes effective>.
11-10 SECTION 12. Chapter 136, Acts of the 55th Legislature,
11-11 Regular Session, 1957, is amended by adding Sections 17-20 to read
11-12 as follows:
11-13 Sec. 17. a. The Board of Managers shall require
11-14 reimbursement from a county, municipality, or public hospital
11-15 located outside the boundaries of the district for the district's
11-16 care and treatment of a sick, diseased, or injured person of that
11-17 county, municipality, or public hospital, as provided by Chapter
11-18 61, Health and Safety Code.
11-19 b. The Board of Managers shall require reimbursement from
11-20 the sheriff or police chief of a county or municipality for the
11-21 district's care and treatment of a person confined in a jail
11-22 facility of the county or municipality who is not a resident of the
11-23 district.
11-24 Sec. 18. The Hospital District may contract with, affiliate
11-25 with, or enter into other arrangements with managed care systems,
11-26 preferred provider organizations, health maintenance organizations,
11-27 other providers of alternative health care or delivery systems, or
12-1 private hospitals to provide joint administration or delivery of
12-2 health care services.
12-3 Sec. 19. a. Registered voters of a defined territory that
12-4 is not included in the Hospital District may file a petition with
12-5 the Board of Managers requesting the inclusion of the territory in
12-6 the district. The petition must be signed by at least 50
12-7 registered voters of the territory, or a majority of those voters,
12-8 whichever is less.
12-9 b. The Board of Managers by order shall set a time and place
12-10 to hold a hearing on the petition to include the territory in the
12-11 Hospital District. The Board shall set a date for the hearing that
12-12 is at least 30 days after the date on which the Board issues the
12-13 order. The Board of Managers shall notify the governing body of
12-14 the City of Amarillo of the hearing.
12-15 c. If, after the hearing, the Board of Managers and the
12-16 governing body of the City of Amarillo find that annexation of the
12-17 territory to the Hospital District would benefit the District, the
12-18 Board of Managers and the governing body of the City of Amarillo
12-19 may approve the annexation by a resolution entered in their
12-20 minutes. The Board of Managers and the governing body of the City
12-21 of Amarillo are not required to include all of the territory
12-22 described in the petition if the Board of Managers and the
12-23 governing body of the City of Amarillo find that including only a
12-24 portion of the territory is necessary or desirable.
12-25 d. Annexation of territory is final when approved by a
12-26 majority of voters at an election held in the Hospital District and
12-27 by a majority of the voters at a separate election held in the
13-1 territory to be annexed. If the district has outstanding debts or
13-2 taxes, the voters in the election to approve the annexation must
13-3 also determine if the annexed territory will assume its proportion
13-4 of the debts or taxes if added to the district.
13-5 e. The election ballots shall be printed to provide for
13-6 voting for or against the following, as applicable:
13-7 (1) "Adding (description of territory to be annexed)
13-8 to the Amarillo Hospital District and authorizing the levy by the
13-9 governing body of the City of Amarillo of annual taxes to support
13-10 the Amarillo Hospital District at a rate of not more than $.75 on
13-11 each $100 valuation of taxable property in the proposed territory
13-12 to be annexed."
13-13 (2) "(Description of territory to be annexed) assuming
13-14 its proportionate share of the outstanding debts and taxes of the
13-15 City of Amarillo Hospital District, if it is added to the
13-16 district."
13-17 f. The election shall be held not less than 45 days nor more
13-18 than 60 days after the date on which the election is ordered.
13-19 g. The election order must state:
13-20 (1) the nature of the election, including the
13-21 proposition that is to appear on the ballot;
13-22 (2) the date of the election;
13-23 (3) the hours during which the polls will be open; and
13-24 (4) the location of the polling places.
13-25 h. The governing body of the City of Amarillo shall give
13-26 notice of the election by publishing once a week for two
13-27 consecutive weeks a substantial copy of the election order in a
14-1 newspaper with general circulation in the Hospital District and in
14-2 the territory proposed to be added to the District. The first
14-3 publication must appear at least 35 days before the date of the
14-4 election.
14-5 i. The election may be called by the governing body of the
14-6 City of Amarillo on its own motion.
14-7 j. The election shall be conducted by the persons
14-8 responsible for conducting citywide elections in Amarillo. The
14-9 Hospital District shall pay the City of Amarillo for the cost of an
14-10 election held under this section and shall make provision for the
14-11 payment before the governing body of the City of Amarillo orders
14-12 the election.
14-13 k. The Election Code governs an election held under this
14-14 section, except that Section 41.001(a), Election Code, does not
14-15 apply.
14-16 Sec. 20. Since the Hospital District is a public entity
14-17 performing an essential public function, bonds issued by the
14-18 district, any transaction relating to the bonds, and profits made
14-19 in the sale of the bonds are free from taxation by the state or by
14-20 any city, county, special district, or other political subdivision
14-21 of the state.
14-22 SECTION 13. The importance of this legislation and the
14-23 crowded condition of the calendars in both houses create an
14-24 emergency and an imperative public necessity that the
14-25 constitutional rule requiring bills to be read on three several
14-26 days in each house be suspended, and this rule is hereby suspended,
14-27 and that this Act take effect and be in force from and after its
15-1 passage, and it is so enacted.