By:  Swinford                                         H.B. No. 2500
       73R5073 DLF-D
                                 A BILL TO BE ENTITLED
    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  co-extensive <co-extensve> 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, including medical and other health
   1-14  care facilities, and providing medical and health care services for
   1-15  the residents of the district, including indigent and needy
   1-16  persons, as hereinafter set out, and may take over the hospital or
   1-17  hospital system, either owned separately by Potter County or
   1-18  jointly with the City of Amarillo, or may provide for the
   1-19  establishment of a hospital, or hospital, medical, and health care
   1-20  system to furnish medical aid, <and> hospital care, and health care
   1-21  services to the indigent, <and> needy, and other persons residing
   1-22  in said Hospital District.  The name of the district shall be
   1-23  specified by the governing body of the City.  Said district shall
   1-24  constitute a body politic and corporate, and its functions are
    2-1  declared to be governmental and public.
    2-2        SECTION 2.  Subsection a, Section 2, Chapter 136, Acts of the
    2-3  55th Legislature, Regular Session, 1957, is amended to read as
    2-4  follows:
    2-5        a.  The governing body of the City of Amarillo shall have the
    2-6  power and the authority, and it shall be its duty, to levy on all
    2-7  property subject to hospital district taxation for the benefit of
    2-8  the district at the same time taxes are levied for city purposes,
    2-9  using the city values and the city tax roll, a tax of not to exceed
   2-10  Seventy-five Cents (75›) on the One Hundred Dollars ($100)
   2-11  valuation of all taxable property within the Hospital District, for
   2-12  the purpose of (1) paying the interest on and creating a sinking
   2-13  fund for bonds which may have been assumed or which may be issued
   2-14  by the Hospital District for hospital, medical, or health care
   2-15  purposes, as herein provided;  (2)  providing for the operation and
   2-16  maintenance of the hospital or hospital system, including medical
   2-17  and other health care facilities; and (3) when requested by the
   2-18  Board of Hospital Managers and approved by the governing body of
   2-19  the city, for the purpose of making further improvements and
   2-20  additions to the hospital system, including medical and other
   2-21  health care facilities and for the acquisition of necessary sites
   2-22  therefor, by purchase, lease, or condemnation.
   2-23        SECTION 3.  Subsections a, b, c, and d, Section 3, Chapter
   2-24  136, Acts of the 55th Legislature, Regular Session, 1957, are
   2-25  amended to read as follows:
   2-26        a.  The city governing body shall have the power and
   2-27  authority to issue and sell as the obligations of such Hospital
    3-1  District, and in the name and upon the faith and credit of such
    3-2  Hospital District, bonds for the acquisition, purchase,
    3-3  construction, equipment and enlargement of the hospital or hospital
    3-4  system, including medical and other health care facilities, and for
    3-5  any or all of such purposes; provided, that a sufficient tax shall
    3-6  be levied to create an interest and sinking fund to pay the
    3-7  interest and principal as same matures provided said tax together
    3-8  with any other taxes levied for said district shall not exceed
    3-9  Seventy-five Cents (75›) in any one year.  Such bonds shall be
   3-10  executed in the name of the Hospital District and on its behalf by
   3-11  the Mayor of the City of Amarillo, and countersigned by the City
   3-12  Secretary, or, in lieu of such manual signatures, facsimile
   3-13  signatures of the Mayor or City Secretary, or both may be printed
   3-14  on the bonds as provided by the Texas Uniform Facsimile Signature
   3-15  of Public Officials Act (Article 717j-1, Vernon's Texas Civil
   3-16  Statutes), and its subsequent amendments <Chapter 293, Acts of the
   3-17  Fifty-fourth Legislature>, and shall be subject to the same
   3-18  requirements in the matter of approval thereof by the Attorney
   3-19  General of the State of Texas and the registration thereof by the
   3-20  Comptroller of Public Accounts of the State of Texas as are by law
   3-21  provided for such approval and registration of bonds of such city;
   3-22  and the approval of such bonds by the Attorney General shall have
   3-23  the same force and effect as is by law given to his approval of
   3-24  bonds of such city.  No such bonds shall be issued by such Hospital
   3-25  District (except refunding bonds) until authorized by a majority
   3-26  vote of the legally qualified property taxpaying voters residing in
   3-27  such Hospital District, voting at an election called and held in
    4-1  accordance with the provisions of law relating to city bonds.  Such
    4-2  election may be called by the governing body of the city of its own
    4-3  motion, or shall be called by it after request therefor by the
    4-4  Board of Hospital Managers; and the same persons shall be
    4-5  responsible for the conduct of such election and the arrangements
    4-6  of all details thereof as the persons charged therewith in
    4-7  connection with other city-wide elections.  The cost of any such
    4-8  election shall be a charge upon the Hospital District and its
    4-9  funds; and the Hospital District shall make provision for the
   4-10  payment thereof before the governing body of the city shall be
   4-11  required to order such an election.
   4-12        b.  In the manner hereinabove provided, the bonds of such
   4-13  Hospital District may, without the necessity of any election
   4-14  therefor, be issued for the purpose of refunding and paying off any
   4-15  bonded indebtedness theretofore assumed by such Hospital District
   4-16  and any bonds theretofore issued by such Hospital District; such
   4-17  refunding bonds may be sold and the proceeds thereof applied to the
   4-18  payment of any such outstanding bonds or may be exchanged in whole
   4-19  or in part for not less than a like amount of said outstanding
   4-20  bonds and interest matured thereon, but unpaid.  The refunding
   4-21  bonds shall mature serially or otherwise in not to exceed forty
   4-22  (40) years <and bear interest at a rate not to exceed six per cent
   4-23  (6%)>.
   4-24        <c.  If the city has voted bonds to provide hospital
   4-25  facilities, but such bonds have not been sold at the date of the
   4-26  creation of the Hospital District, the authority for such bonds
   4-27  shall be canceled, and they shall not be sold.>
    5-1        d.  All bonds of the district shall be and are hereby
    5-2  declared to be legal and authorized investments for banks, savings
    5-3  banks, trust companies, savings <building> and loan associations,
    5-4  insurance companies, fiduciaries, trustees, guardians, and the
    5-5  sinking funds of cities, towns, villages, counties, school
    5-6  districts, or other political subdivisions of the State of Texas.
    5-7  Such bonds shall be eligible to secure the deposit of any and all
    5-8  public funds of the State of Texas, and any and all public funds of
    5-9  cities, towns, villages, counties, school districts, or other
   5-10  political corporations or subdivisions of the State of Texas; and
   5-11  such bonds shall be lawful and sufficient security for said
   5-12  deposits to the extent of their value, when accompanied by all
   5-13  unmatured coupons appurtenant thereto.
   5-14        SECTION 4.  Subsections (a), (b), (c), (d), (f), (g), and
   5-15  (h), Section 3A, Chapter 136, Acts of the 55th Legislature, Regular
   5-16  Session, 1957, are amended to read as follows:
   5-17        (a)  The city governing body, for and on behalf of the
   5-18  Hospital District, may issue and sell revenue bonds as special
   5-19  obligations of the Hospital District, in the name of the <Amarillo>
   5-20  Hospital District, for the purpose of providing funds to finance,
   5-21  refinance, acquire, purchase, construct, repair, renovate, improve,
   5-22  enlarge, or equip hospital, medical, and other health care
   5-23  facilities, and to acquire any real or personal property in
   5-24  connection therewith.
   5-25        (b)  The city governing body may issue the revenue bonds to
   5-26  be payable from and secured by liens on and pledges of all or any
   5-27  part of the revenues and income of every nature derived by the
    6-1  Hospital District from the operation and ownership of its hospital
    6-2  facilities, including medical and other health care facilities,
    6-3  exclusive of ad valorem taxes.  The city governing body also may
    6-4  pledge to the payment of the revenue bonds all or any part of any
    6-5  grant, donation, or income received or to be received from the
    6-6  United States government or any other public or private source.
    6-7        (c)  The bonds may be additionally secured by mortgages and
    6-8  deeds of trust on any real property on which any hospital
    6-9  facilities of the Hospital District, including medical and other
   6-10  health care facilities, are or will be located, and any real or
   6-11  personal property  incident or appurtenant to the facilities, and
   6-12  the governing body of the city may authorize the execution and
   6-13  delivery of trust indentures, mortgages, deeds of trust, or other
   6-14  forms of encumbrances to evidence the same.
   6-15        (d)  The bonds may be issued to mature serially or otherwise
   6-16  not to exceed forty (40) years from their date.  The total
   6-17  principal of revenue bonds issued and outstanding <and unpaid> may
   6-18  not exceed, $30 million <$7,500,000>.
   6-19        (f)  The bonds, and any interest coupons pertaining thereto,
   6-20  shall be negotiable instruments, provided that the bonds may be
   6-21  issued registrable as to principal alone or as to both principal
   6-22  and interest, and shall be executed, and may be made redeemable
   6-23  prior to maturity, and may be issued in such form, denominations,
   6-24  and manner, and under such terms, conditions, and details, and may
   6-25  be sold in such manner, at such price, and under such terms, and
   6-26  the bonds shall bear interest at any rate or rates all as shall be
   6-27  determined and provided by the city governing body in the ordinance
    7-1  authorizing the issuance of the bonds.  If so permitted in the bond
    7-2  ordinance, any required part of the proceeds from the sale of the
    7-3  bonds may be used for paying interest thereon during the period of
    7-4  the construction of any hospital facilities, including medical and
    7-5  other health care facilities, to be provided through the issuance
    7-6  of the bonds, and for the payment of operation and maintenance
    7-7  expenses of the facilities to the extent, and for the period of
    7-8  time, specified in the bond ordinance, and also for the creation of
    7-9  reserves for the payment of the principal of and interest on the
   7-10  bonds.  The proceeds of the bonds may be invested until needed, to
   7-11  the extent and in the manner provided in the bond ordinance.
   7-12        (g)  The <city governing body and the> Board of Managers of
   7-13  the Hospital District is <are> authorized to fix and collect
   7-14  charges for the occupancy or use of any of said hospital, medical,
   7-15  and other health care facilities, and the services thereof, in such
   7-16  amounts and in such manner as may be determined by such Board; and
   7-17  such charges shall be fixed and collected in such amounts as will
   7-18  be at least sufficient, together with any other pledged resources,
   7-19  to provide for all payments of principal, interest, and any other
   7-20  amounts required in connection with said bonds, and, to the extent
   7-21  required by the bond ordinance, to provide for payment of all or
   7-22  any part of the operation, maintenance, and other expenses of the
   7-23  hospital, medical, and other health care facilities.  <The city
   7-24  governing body and the Board of Managers of the Hospital District
   7-25  shall make provision in each annual Hospital District Budget for
   7-26  the payment of all operation and maintenance expenses of the
   7-27  Hospital District, and shall take into consideration the estimated
    8-1  excess revenues and income from hospital facilities that will be
    8-2  available for paying operation and maintenance expenses after
    8-3  providing for all principal, interest, and reserve requirements in
    8-4  connection with the bonds.>  To the extent that excess revenues and
    8-5  income are not available at any time to make payment of all
    8-6  operation and maintenance expenses of the Hospital District, ad
    8-7  valorem taxes of the Hospital District shall be used to make such
    8-8  payment, and the proceeds of an annual ad valorem tax may be
    8-9  pledged for such payment in the ordinance authorizing the issuance
   8-10  of the revenue bonds.   If the annual ad valorem tax is thus
   8-11  pledged, it shall be the duty of the city governing body, during
   8-12  each year while any of the bonds are outstanding, to compute and
   8-13  ascertain a rate and amount of ad valorem tax which will be
   8-14  sufficient to raise and produce the money required to make the
   8-15  payment of operation and maintenance expenses to the extent
   8-16  required; and the tax shall be based on the latest approved tax
   8-17  rolls of the Hospital District, with full allowance being made for
   8-18  tax delinquencies and the cost of tax collection.  The rate and
   8-19  amount of ad valorem tax shall be levied, and ordered to be levied,
   8-20  against all taxable property in the Hospital District, for each
   8-21  year while any of the bonds are outstanding; and the tax shall be
   8-22  assessed and collected each year and used for such purpose to the
   8-23  extent required.  The tax levied may not exceed the tax limitation
   8-24  set forth in Article IX, Section 5, of the Texas Constitution.
   8-25        (h)  Any revenue bonds issued for the Hospital District under
   8-26  this Act, or any other Texas statute, and payable from revenues
   8-27  from any hospital, medical, and other health care facilities, may
    9-1  be refunded or otherwise refinanced by the city governing body, and
    9-2  in such case all pertinent and appropriate provisions of this Act
    9-3  shall be fully applicable to the refunding bonds.  In refunding or
    9-4  otherwise refinancing any bonds the city governing body may, in the
    9-5  same authorization proceedings, refund or refinance bonds issued
    9-6  pursuant to this Act and bonds issued pursuant to any other Texas
    9-7  statute and combine all its refunding bonds and any other
    9-8  additional new bonds to be issued pursuant thereto into one or more
    9-9  issues or series of bonds, and may provide for the subsequent
   9-10  issuance of additional parity bonds, or subordinate lien bonds, or
   9-11  other type of bonds.  All refunding bonds shall be issued and
   9-12  delivered under the terms and conditions as may be set forth in the
   9-13  authorization proceedings.  Refunding bonds also may be issued
   9-14  pursuant to any other applicable Texas statute.
   9-15        SECTION 5.  Section 3B, Chapter 136, Acts of the 55th
   9-16  Legislature, Regular Session, 1957, is amended by adding Subsection
   9-17  g to read as follows:
   9-18        g.  This section is cumulative of any other law establishing
   9-19  the manner in which Randall County, or any portion of Randall
   9-20  County, may participate in, be annexed to, or otherwise served by
   9-21  the Amarillo Hospital District.
   9-22        SECTION 6.  Section 5, Chapter 136, Acts of the 55th
   9-23  Legislature, Regular Session, 1957, is amended to read as follows:
   9-24        Sec. 5.  a.  The governing body of the City of Amarillo shall
   9-25  appoint a Board of Hospital Managers, consisting of not less than
   9-26  five (5) nor more than seven (7) members, who shall serve for a
   9-27  term of two (2) years, with overlapping terms if desired, and with
   10-1  initial appointments to terms of office arranged accordingly,
   10-2  without pay, and whose duties shall be to manage, control and
   10-3  administer the hospital or hospital system, including medical and
   10-4  other health care facilities, of the Hospital District.  The
   10-5  governing body of the City of Amarillo may, by majority vote,
   10-6  remove any member of the Board of Hospital Managers with or without
   10-7  cause.  The district, through its Board of Managers, shall have the
   10-8  power and authority to sue and be sued in its name.  The Board is
   10-9  authorized to promulgate rules and regulations for the operation of
  10-10  the hospital or hospital system, including medical and other health
  10-11  care facilities.
  10-12        b.  The Board shall appoint a general manager, to be known as
  10-13  the Administrator of the Hospital District.  The Administrator
  10-14  <shall hold office for a term not exceeding two (2) years, and>
  10-15  shall receive such compensation as may be fixed by the Board.  The
  10-16  Administrator shall be subject to removal at any time by the Board.
  10-17  The Administrator shall, before entering into the discharge of his
  10-18  duties, execute a bond payable to the District, in the amount of
  10-19  not less than Ten Thousand Dollars ($10,000), conditioned that he
  10-20  shall well and faithfully perform the duties required of him, and
  10-21  containing such other conditions as the Board may require.  The
  10-22  Administrator shall perform all duties which may be required of him
  10-23  by the Board, and shall supervise all of the work and activities of
  10-24  the district, and have general direction of the affairs of the
  10-25  district, within such limitations as may be prescribed by the
  10-26  Board.  He shall be a person qualified by training and experience
  10-27  for the position of Administrator.
   11-1        c.  The Board of Managers shall have the authority to employ
   11-2  such doctors, technicians, nurses and other employees of every kind
   11-3  and character as may be deemed advisable for the efficient
   11-4  operation of the hospital or hospital system, including medical and
   11-5  other health care facilities<; provided that no contract or term of
   11-6  employment shall exceed the period of two (2) years>.  The Board of
   11-7  Managers may delegate to the Administrator the authority to employ
   11-8  persons for the Hospital District.
   11-9        d.  The Board of Managers, <with the approval of the
  11-10  governing body of the City of Amarillo,> shall be authorized to
  11-11  contract with any political subdivision of the State <county or
  11-12  other incorporated municipality> for care and treatment of the
  11-13  political subdivision's <such county's or city's> sick, diseased
  11-14  and injured persons, and with the State and agencies of the State,
  11-15  any political subdivision of the State, or the Federal Government
  11-16  for the care of and treatment of such persons for whom the State
  11-17  and such agencies of the State, any political subdivision of the
  11-18  State, or the Federal Government are responsible.  The Board of
  11-19  Managers may contract to provide to another political subdivision
  11-20  or governmental agency investigatory, administrative, managerial,
  11-21  or other services relating to the hospital, medical, health care,
  11-22  or welfare needs of the inhabitants of the Hospital District.
  11-23  Further, <under the same conditions,> the Board of Managers may
  11-24  <enter into such contracts with the State and Federal Government as
  11-25  may be necessary to> establish or continue a retirement program for
  11-26  the benefit of its employees and may contract with the State or
  11-27  Federal Government for that purpose.
   12-1        e.  A majority of the Board of Hospital Managers shall
   12-2  constitute a quorum for the transaction of any business.  From
   12-3  among its members the Board shall choose a Chairman, who shall
   12-4  preside; or in his absence a Chairman pro tem shall preside; and
   12-5  the Administrator or any member of the Board may be appointed
   12-6  secretary.  The Board shall require the secretary to keep suitable
   12-7  records of all proceedings of each meeting of the Board.  Such
   12-8  record shall be read and signed after each meeting by the Chairman
   12-9  or the member presiding, and attested by the secretary.  The Board
  12-10  shall have a seal, on which shall be engraved the name of the
  12-11  Hospital District; and said seal shall be kept by the secretary and
  12-12  used in authentication of all acts of the Board.
  12-13        f.  The Board of Managers may appoint to the staff doctors
  12-14  and other medical personnel the Board of Managers considers
  12-15  necessary for the efficient operation of the Hospital District,
  12-16  make temporary appointments as it considers necessary, and, in its
  12-17  sole discretion, remove from the medical staff any doctor or other
  12-18  medical personnel.
  12-19        g.  The Board of Managers may contract with any entity,
  12-20  public or private, including a foreign government, to obtain or to
  12-21  supply facilities and services necessary for the efficient
  12-22  operation of the Hospital District.
  12-23        h.  The Board of Managers may enter into operating or
  12-24  management contracts relating to hospital, medical, and other
  12-25  health care facilities and services on behalf of the Hospital
  12-26  District.
  12-27        i.  The Board of Managers has sole discretion in determining
   13-1  the type, number, and location of buildings and facilities required
   13-2  to establish and maintain an adequate hospital, medical, and health
   13-3  care system.
   13-4        j.  The Board of Managers may purchase insurance to protect
   13-5  the members of the Board from any liability that arises from
   13-6  serving on the Board.
   13-7        k.  The Board of Managers shall determine the eligibility
   13-8  standards for Hospital District assistance and the consideration to
   13-9  be received for its services, products, and the use of its
  13-10  facilities and may use the pricing methods it considers advisable,
  13-11  including discount and per diem pricing.
  13-12        l.  The Board of Managers may use Hospital District funds,
  13-13  enter into agreements, and take other necessary action to recruit
  13-14  or otherwise obtain physicians and other personnel for the Hospital
  13-15  District's medical staff or for employment with the Hospital
  13-16  District, including:
  13-17              (1)  advertising and marketing;
  13-18              (2)  paying recruitment expenses;
  13-19              (3)  paying travel and relocation expenses;
  13-20              (4)  providing guarantees, subsidies, loans, and
  13-21  scholarships;
  13-22              (5)  sharing personnel;
  13-23              (6)  authorizing a physician to use space in Hospital
  13-24  District facilities or providing a rent subsidy to a physician; and
  13-25              (7)  using other innovative recruiting or retention
  13-26  methods.
  13-27        m.  The Board of Managers may use Hospital District funds,
   14-1  enter into agreements, and take other necessary action to conduct,
   14-2  participate in, or assist health care education programs for the
   14-3  public and for current or potential medical staff members or
   14-4  employees.
   14-5        n.  The Board of Managers may market or advertise to promote
   14-6  Hospital District services, the orderly operation of the Hospital
   14-7  District, and the delivery of medical and health care in the
   14-8  Hospital District.
   14-9        o.  The Board of Managers may use Hospital District funds to
  14-10  ensure the qualification  and continued qualification of physicians
  14-11  and other personnel.
  14-12        SECTION 7.  Sections 5a and 6, Chapter 136, Acts of the 55th
  14-13  Legislature, Regular Session, 1957, are amended to read as follows:
  14-14        Sec. 5a.  The Board of Managers<, with the approval of the
  14-15  governing body of the City of Amarillo,> is authorized to contract
  14-16  with West Texas State University or another educational institution
  14-17  for the coordination of the B.S. degree and diploma programs in
  14-18  nursing to be conducted by each and for cooperative funding of the
  14-19  expense of an instructional program in nursing.  The Hospital
  14-20  District may provide services, funds, or equipment and may make its
  14-21  facilities available to West Texas State University for clinical
  14-22  instruction.
  14-23        Sec. 6.  The governing body of the City of Amarillo shall
  14-24  have the power to prescribe the method and manner of making
  14-25  purchases and expenditures by and for such Hospital District, and
  14-26  also shall be authorized to prescribe all accounting and control
  14-27  procedures, or may delegate any or all such powers to the Board of
   15-1  Managers of such district by the adoption of an appropriate
   15-2  resolution or order to that effect.  The method of making purchases
   15-3  and expenditures may, but is not required to, comply with any law
   15-4  requiring notice or competitive bidding and may authorize use of
   15-5  public or private group purchasing plans.  The Hospital District
   15-6  shall pay all salaries and expenses necessarily incurred by the
   15-7  city or any of its officers and agents in performing any duties
   15-8  which may be prescribed or required under this Section.  It shall
   15-9  be the duty of any officer, employee or agent of such city to
  15-10  perform and carry out any function or service prescribed by the
  15-11  governing body of the city hereunder.
  15-12        SECTION 8.  Section 9, Chapter 136, Acts of the 55th
  15-13  Legislature, Regular Session, 1957, is amended by amending
  15-14  Subsection b and adding Subsections c, d, and e to read as follows:
  15-15        b.  The Hospital District shall have the power to take by
  15-16  purchase or lease lands or any other real or personal property
  15-17  within or without the district as may be required for its purpose;
  15-18  and it may sell or lease any lands or other property owned by it at
  15-19  public or private sale; provided, however, that no unimproved real
  15-20  estate may be sold or leased until after there has been a
  15-21  determination by the governing body of the City of Amarillo that
  15-22  either the unimproved real estate is <the lands are> no longer
  15-23  required for the purposes of the district or that the grantee or
  15-24  lessee will use the unimproved real estate <property> for hospital
  15-25  purposes or purposes incidental and necessary to hospital purposes.
  15-26        c.  The Board of Managers may acquire by lease, purchase, or
  15-27  other method property, facilities, or equipment and may pledge the
   16-1  property, facilities, or equipment as security for the payment of
   16-2  the purchase or construction price.
   16-3        d.  The Board of Managers may acquire from or transfer to any
   16-4  public or private entity, by sale or by lease, hospital, medical,
   16-5  and health care equipment and supplies.
   16-6        e.  Subject to Subsection b of this section, the Board of
   16-7  Managers, on behalf of the Hospital District, may sell, lease, or
   16-8  otherwise dispose of the property, facilities, or equipment of the
   16-9  Hospital District.  Property, facilities, or equipment sold under
  16-10  this subsection may be sold by public or private sale.  Subject to
  16-11  Subsection b of this section, the Board may dispose of property,
  16-12  facilities, or equipment under the terms and conditions, and for
  16-13  the consideration, that the Board considers to be in the best
  16-14  interests of the District.
  16-15        SECTION 9.  Sections 10 and 12, Chapter 136, Acts of the 55th
  16-16  Legislature, Regular Session, 1957, are amended to read as follows:
  16-17        Sec. 10.  Within thirty (30) days after the appointment of
  16-18  the Board of Hospital Managers of any district created under this
  16-19  Act, the said Board shall select one or more depositories <a
  16-20  depository> for such district in the manner provided by law for the
  16-21  selection of county depositories<; and such depository shall be the
  16-22  depository of such district for a period of two (2) years
  16-23  thereafter, or until its successor is selected and qualified.  In
  16-24  the alternative, the Board may elect to use the depository
  16-25  theretofore selected by the county>.
  16-26        Sec. 12.  The Board of Hospital Managers may be represented
  16-27  in all legal matters by the attorneys charged with representing the
   17-1  City of Amarillo in civil matters, and in such event the District
   17-2  shall contribute sufficient funds to the general fund of the City
   17-3  of Amarillo for the account of the budget of such attorneys to pay
   17-4  all additional salaries and expenses incurred by such attorneys in
   17-5  performing the duties required of them by the district; provided,
   17-6  however, that the Board may in its discretion employ legal counsel
   17-7  of its own selection if it deems the action advisable.
   17-8        SECTION 10.  Chapter 136, Acts of the 55th Legislature,
   17-9  Regular Session, 1957, is amended by adding Section 13A to read as
  17-10  follows:
  17-11        Sec. 13A.  Not later than the first day of each fiscal year,
  17-12  the Board of Managers shall adopt requirements to be used by the
  17-13  Hospital District in determining if a person is eligible for
  17-14  hospital, medical, or health care assistance from the District.
  17-15  The Board shall adopt an application procedure that specifies the
  17-16  documentation required in support of the application for
  17-17  assistance.
  17-18        SECTION 11.  Subsection a, Section 14, Chapter 136, Acts of
  17-19  the 55th Legislature, Regular Session, 1957, is amended to read as
  17-20  follows:
  17-21        a.  Whenever a patient has been admitted to the facilities of
  17-22  the Hospital District from Potter County or the Hospital District,
  17-23  the Administrator shall cause inquiry to be made as to his
  17-24  circumstances, and of the relatives of such patient legally liable
  17-25  for his support.  If it is determined <he finds> that such patient
  17-26  or said relatives are liable to pay for his care and treatment in
  17-27  whole or in part, an order shall be made directing such patient, or
   18-1  said relatives, to pay <to> the <treasurer of the> Hospital
   18-2  District for the support of such patient a specified sum <per week,
   18-3  in proportion to their financial ability, but such sum shall not
   18-4  exceed the actual per capita cost of maintenance>.  The
   18-5  Administrator shall have power and authority to collect such sum
   18-6  from the estate of the patient, or his relatives legally liable for
   18-7  his support, in the manner provided by law for the collection of
   18-8  expenses of the last illness of a deceased person.  <If the
   18-9  Administrator finds that such patient or said relatives are not
  18-10  able to pay, either in whole or in part, for his care and treatment
  18-11  in such hospital, the same shall become a charge upon the Hospital
  18-12  District.  Should there be a dispute as to the ability to pay, or
  18-13  doubt in the mind of the Administrator, the County Judge of Potter
  18-14  County shall hear and determine same, after calling witnesses, and
  18-15  shall make such order as may be proper, from which appeal shall lie
  18-16  to the district court by either party to the dispute.>
  18-17        SECTION 12.  Section 15, Chapter 136, Acts of the 55th
  18-18  Legislature, Regular Session, 1957, is amended to read as follows:
  18-19        Sec. 15.  Said Board of Managers of the Hospital District is
  18-20  authorized on behalf of said Hospital District to accept donations,
  18-21  gifts, and endowments for the Hospital District, to be held in
  18-22  trust or otherwise and administered by the Board of Managers for
  18-23  such purposes and under such directions, limitations, and
  18-24  provisions as may be prescribed in writing by donor, not
  18-25  inconsistent with proper management and objects of Hospital
  18-26  District, and may establish foundations or nonprofit corporations
  18-27  for these purposes.
   19-1        SECTION 13.  Section C, Section 16, Chapter 136, Acts of the
   19-2  55th Legislature, Regular Session, 1957, is amended to read as
   19-3  follows:
   19-4        Sec. C.  The creation of said District by the City Commission
   19-5  of the City of Amarillo and the appointment of the Board of
   19-6  Hospital Managers by said Commission are hereby validated<,
   19-7  provided, however, that this validation provision shall not be
   19-8  applicable if litigation attacking the validity of the District is
   19-9  pending at the time this Act becomes effective>.
  19-10        SECTION 14.  Chapter 136, Acts of the 55th Legislature,
  19-11  Regular Session, 1957, is amended by adding Sections 17-21 to read
  19-12  as follows:
  19-13        Sec. 17.  a.  The Board of Managers shall require
  19-14  reimbursement from a county, municipality, or public hospital
  19-15  located outside the boundaries of the district for the district's
  19-16  care and treatment of a sick, diseased, or injured person of that
  19-17  county, municipality, or public hospital, as provided by Chapter
  19-18  61, Health and Safety Code.
  19-19        b.  The Board of Managers shall require reimbursement from
  19-20  the sheriff or police chief of a county or municipality for the
  19-21  district's care and treatment of a person confined in a jail
  19-22  facility of the county or municipality who is not a resident of the
  19-23  district.
  19-24        Sec. 18.  The Hospital District may contract with, affiliate
  19-25  with, or enter into other arrangements with public hospitals,
  19-26  health care providers, managed care systems, preferred provider
  19-27  organizations, health maintenance organizations, other providers of
   20-1  alternative health care or delivery systems, private hospitals,
   20-2  other hospital districts, or with a governmental entity or
   20-3  political subdivision to provide regional, cooperative, reciprocal,
   20-4  or joint administration or delivery of health care services.
   20-5        Sec. 19.  a.  Registered voters of a defined territory that
   20-6  is not included in the Hospital District may file a petition with
   20-7  the Board of Managers requesting the inclusion of the territory in
   20-8  the district.  The petition must be signed by at least 50
   20-9  registered voters of the territory, or a majority of those voters,
  20-10  whichever is less.
  20-11        b.  The Board of Managers by order shall set a time and place
  20-12  to hold a hearing on the petition to include the territory in the
  20-13  Hospital District.  The Board shall set a date for the hearing that
  20-14  is at least 30 days after the date on which the Board issues the
  20-15  order.  The Board of Managers shall notify the governing body of
  20-16  the City of Amarillo of the hearing.
  20-17        c.  If, after the hearing, the Board of  Managers and the
  20-18  governing body of the City of Amarillo find that annexation of the
  20-19  territory to the Hospital District would benefit the District, the
  20-20  Board of Managers and the governing body of the City of Amarillo
  20-21  may approve the annexation by a resolution entered in their
  20-22  minutes.  The Board of Managers and the governing body of the City
  20-23  of Amarillo are not required to include all of the territory
  20-24  described in the petition if the Board of Managers and the
  20-25  governing body of the City of Amarillo find that including only a
  20-26  portion of the territory is necessary or desirable.
  20-27        d.  Annexation of territory is final when approved by a
   21-1  majority of voters at an election held in the Hospital District and
   21-2  by a majority of the voters at a separate election held in the
   21-3  territory to be annexed.  If the district has outstanding debts or
   21-4  taxes, the voters in the election to approve the annexation must
   21-5  also determine if the annexed territory will assume its proportion
   21-6  of the debts or taxes if added to the district.
   21-7        e.  The election ballots shall be printed to provide for
   21-8  voting for or against the following, as applicable:
   21-9              (1)  "Adding (description of territory to be annexed)
  21-10  to the City of Amarillo Hospital District."
  21-11              (2)  "(Description of territory to be annexed) assuming
  21-12  its proportionate share of the outstanding debts and taxes of the
  21-13  City of Amarillo Hospital District, if it is added to the
  21-14  district."
  21-15        f.  The election shall be held not less than 45 days nor more
  21-16  than 60 days after the date on which the election is ordered.
  21-17        g.  The election order must state:
  21-18              (1)  the nature of the election, including the
  21-19  proposition that is to appear on the ballot;
  21-20              (2)  the date of the election;
  21-21              (3)  the hours during which the polls will be open; and
  21-22              (4)  the location of the polling places.
  21-23        h.  The governing body of the City of Amarillo shall give
  21-24  notice of the election by publishing once a week for two
  21-25  consecutive weeks a substantial copy of the election order in a
  21-26  newspaper with general circulation in the Hospital District and in
  21-27  the territory proposed to be added to the District.  The first
   22-1  publication must appear at least 35 days before the date of the
   22-2  election.
   22-3        i.  The election may be called by the governing body of the
   22-4  City of Amarillo on its own motion.
   22-5        j.  The governing body of the City of Amarillo shall call the
   22-6  election if requested to do so by the Board of Managers.
   22-7        k.  The election shall be conducted by the persons
   22-8  responsible for conducting citywide elections in Amarillo.  The
   22-9  Hospital District shall pay the City of Amarillo for the cost of an
  22-10  election held under this section and shall make provision for the
  22-11  payment before the governing body of the City of Amarillo is
  22-12  required to order the election under Subsection j of this section.
  22-13        l.  The Election Code governs an election held under this
  22-14  section, except that Section 41.001(a), Election Code, does not
  22-15  apply.
  22-16        Sec. 20.  Since the Hospital District is a public entity
  22-17  performing an essential public function, bonds issued by the
  22-18  district, any transaction relating to the bonds, and profits made
  22-19  in the sale of the bonds are free from taxation by the state or by
  22-20  any city, county, special district, or other political subdivision
  22-21  of the state.
  22-22        Sec. 21.  The Board of Managers may, on behalf of the
  22-23  Hospital District, borrow money from a federally insured lending
  22-24  institution and make other financial arrangements to pay the
  22-25  operating expenses and to meet the other lawfully authorized
  22-26  obligations of the District.  The Board of Managers may borrow
  22-27  money in the amount it considers advisable subject to a rate of
   23-1  interest and other terms and conditions it considers advisable.  To
   23-2  secure a loan, the Board may pledge revenues of the District or
   23-3  property acquired with the borrowed money that are not pledged to
   23-4  pay a bonded indebtedness of the District.  If revenues of the
   23-5  District are pledged to pay the loan, the loan shall mature not
   23-6  later than the fifth anniversary after the date on which the loan
   23-7  is made.
   23-8        SECTION 15.  The importance of this legislation and the
   23-9  crowded condition of the calendars in both houses create an
  23-10  emergency and an imperative public necessity that the
  23-11  constitutional rule requiring bills to be read on three several
  23-12  days in each house be suspended, and this rule is hereby suspended,
  23-13  and that this Act take effect and be in force from and after its
  23-14  passage, and it is so enacted.