1-1  By:  Swinford (Senate Sponsor - Bivins)               H.B. No. 2500
    1-2        (In the Senate - Received from the House May 22, 1993;
    1-3  May 22, 1993, read first time and referred to Committee on
    1-4  Intergovernmental Relations; May 25, 1993, reported adversely, with
    1-5  favorable Committee Substitute by the following vote:  Yeas 7, Nays
    1-6  0; May 25, 1993, sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Armbrister         x                               
   1-10        Leedom             x                               
   1-11        Carriker           x                               
   1-12        Henderson                                     x    
   1-13        Madla                                         x    
   1-14        Moncrief           x                               
   1-15        Patterson          x                               
   1-16        Rosson             x                               
   1-17        Shapiro                                       x    
   1-18        Wentworth          x                               
   1-19        Whitmire                                      x    
   1-20  COMMITTEE SUBSTITUTE FOR H.B. No. 2500                By:  Moncrief
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the powers, duties, and expansion of the City of
   1-24  Amarillo Hospital District; authorizing the creation of public
   1-25  debt.
   1-26        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-27        SECTION 1.  Section 1, Chapter 136, Acts of the 55th
   1-28  Legislature, Regular Session, 1957, is amended to read as follows:
   1-29        Sec. 1.  The City of Amarillo, Texas, may be constituted a
   1-30  Hospital District, which district shall, unless expanded under
   1-31  Section 19 of this Act or other applicable law, always be
   1-32  coextensive <co-extensive> with the incorporated limits of the City
   1-33  of Amarillo, Texas, for the purpose of owning and operating a
   1-34  hospital or hospital system for indigent and needy persons, as
   1-35  hereinafter set out, and may take over the hospital or hospital
   1-36  system, either owned separately by Potter County or jointly with
   1-37  the City of Amarillo, or may provide for the establishment of a
   1-38  hospital or hospital system to furnish medical aid and hospital
   1-39  care to the indigent and needy persons residing in said Hospital
   1-40  District.  The name of the district shall be specified by the
   1-41  governing body of the City.  Said district shall constitute a body
   1-42  politic and corporate, and its functions are declared to be
   1-43  governmental and public.
   1-44        SECTION 2.  Subsections a, b, c, and d, Section 3, Chapter
   1-45  136, Acts of the 55th Legislature, Regular Session, 1957, are
   1-46  amended to read as follows:
   1-47        a.  The city governing body shall have the power and
   1-48  authority to issue and sell as the obligations of such Hospital
   1-49  District, and in the name and upon the faith and credit of such
   1-50  Hospital District, bonds for the acquisition, purchase,
   1-51  construction, equipment and enlargement of the hospital or hospital
   1-52  system,  and for any or all of such purposes; provided, that a
   1-53  sufficient tax shall be levied to create an interest and sinking
   1-54  fund to pay the interest and principal as same matures provided
   1-55  said tax together with any other taxes levied for said district
   1-56  shall not exceed Seventy-five Cents (75›) in any one year.  Such
   1-57  bonds shall be executed in the name of the Hospital District and on
   1-58  its behalf by the Mayor of the City of Amarillo, and countersigned
   1-59  by the City Secretary, or, in lieu of such manual signatures,
   1-60  facsimile signatures of the Mayor or City Secretary, or both may be
   1-61  printed on the bonds as provided by the Texas Uniform Facsimile
   1-62  Signature of Public Officials Act (Article 717j-1, Vernon's Texas
   1-63  Civil Statutes), and its subsequent amendments <Chapter 293, Acts
   1-64  of the Fifty-fourth Legislature>, and shall be subject to the same
   1-65  requirements in the matter of approval thereof by the Attorney
   1-66  General of the State of Texas and the registration thereof by the
   1-67  Comptroller of Public Accounts of the State of Texas as are by law
   1-68  provided for such approval and registration of bonds of such city;
    2-1  and the approval of such bonds by the Attorney General shall have
    2-2  the same force and effect as is by law given to his approval of
    2-3  bonds of such city.  No such bonds shall be issued by such Hospital
    2-4  District (except refunding bonds) until authorized by a majority
    2-5  vote of the legally qualified property taxpaying voters residing in
    2-6  such Hospital District, voting at an election called and held in
    2-7  accordance with the provisions of law relating to city bonds.  Such
    2-8  election may be called by the governing body of the city of its own
    2-9  motion, or shall be called by it after request therefor by the
   2-10  Board of Hospital Managers; and the same persons shall be
   2-11  responsible for the conduct of such election and the arrangements
   2-12  of all details thereof as the persons charged therewith in
   2-13  connection with other city-wide elections.  The cost of any such
   2-14  election shall be a charge upon the Hospital District and its
   2-15  funds; and the Hospital District shall make provision for the
   2-16  payment thereof before the governing body of the city shall be
   2-17  required to order such an election.
   2-18        b.  In the manner hereinabove provided, the bonds of such
   2-19  Hospital District may, without the necessity of any election
   2-20  therefor, be issued for the purpose of refunding and paying off any
   2-21  bonded indebtedness theretofore assumed by such Hospital District
   2-22  and any bonds theretofore issued by such Hospital District; such
   2-23  refunding bonds may be sold and the proceeds thereof applied to the
   2-24  payment of any such outstanding bonds or may be exchanged in whole
   2-25  or in part for not less than a like amount of said outstanding
   2-26  bonds and interest matured thereon, but unpaid.  The refunding
   2-27  bonds shall mature serially or otherwise in not to exceed forty
   2-28  (40) years <and bear interest at a rate not to exceed six per cent
   2-29  (6%)>.
   2-30        <c.  If the city has voted bonds to provide hospital
   2-31  facilities, but such bonds have not been sold at the date of the
   2-32  creation of the Hospital District, the authority for such bonds
   2-33  shall be canceled, and they shall not be sold.>
   2-34        d.  All bonds of the district shall be and are hereby
   2-35  declared to be legal and authorized investments for banks, savings
   2-36  banks, trust companies, savings <building> and loan associations,
   2-37  insurance companies, fiduciaries, trustees, guardians, and the
   2-38  sinking funds of cities, towns, villages, counties, school
   2-39  districts, or other political subdivisions of the State of Texas.
   2-40  Such bonds shall be eligible to secure the deposit of any and all
   2-41  public funds of the State of Texas, and any and all public funds of
   2-42  cities, towns, villages, counties, school districts, or other
   2-43  political corporations or subdivisions of the State of Texas; and
   2-44  such bonds shall be lawful and sufficient security for said
   2-45  deposits to the extent of their value, when accompanied by all
   2-46  unmatured coupons appurtenant thereto.
   2-47        SECTION 3.  Subsection (d), Section 3A, Chapter 136, Acts of
   2-48  the 55th Legislature, Regular Session, 1957, is amended to read as
   2-49  follows:
   2-50        (d)  The bonds may be issued to mature serially or otherwise
   2-51  not to exceed forty (40) years from their date.  The total
   2-52  principal of revenue bonds issued and outstanding <and unpaid> may
   2-53  not exceed $20 million <$7,500,000>.
   2-54        SECTION 4.  Section 3B, Chapter 136, Acts of the 55th
   2-55  Legislature, Regular Session, 1957, is amended by adding Subsection
   2-56  g to read as follows:
   2-57        g.  This section is cumulative of any other law establishing
   2-58  the manner in which Randall County, or any portion of Randall
   2-59  County, may participate in, be annexed to, or otherwise served by
   2-60  the Amarillo Hospital District.
   2-61        SECTION 5.  Section 5, Chapter 136, Acts of the 55th
   2-62  Legislature, Regular Session, 1957, is amended to read as follows:
   2-63        Sec. 5.  a.  The governing body of the City of Amarillo shall
   2-64  appoint a Board of Hospital Managers, consisting of not less than
   2-65  five (5) nor more than seven (7) members, who shall serve for a
   2-66  term of two (2) years, with overlapping terms if desired, and with
   2-67  initial appointments to terms of office arranged accordingly,
   2-68  without pay, and whose duties shall be to manage, control and
   2-69  administer the hospital or hospital system of the Hospital
   2-70  District.  The governing body of the City of Amarillo may, by
    3-1  majority vote, remove any member of the Board of Hospital Managers
    3-2  with or without cause.  The district, through its Board of
    3-3  Managers, shall have the power and authority to sue and be sued in
    3-4  its name.  The Board is authorized to promulgate rules and
    3-5  regulations for the operation of the hospital or hospital system.
    3-6        b.  The Board shall appoint a general manager, to be known as
    3-7  the Administrator of the Hospital District.  The Administrator
    3-8  <shall hold office for a term not exceeding two (2) years, and>
    3-9  shall receive such compensation as may be fixed by the Board.  The
   3-10  Administrator shall be subject to removal at any time by the Board.
   3-11  The Administrator shall, before entering into the discharge of his
   3-12  duties, execute a bond payable to the District, in the amount of
   3-13  not less than Ten Thousand Dollars ($10,000), conditioned that he
   3-14  shall well and faithfully perform the duties required of him, and
   3-15  containing such other conditions as the Board may require.  The
   3-16  Administrator shall perform all duties which may be required of him
   3-17  by the Board, and shall supervise all of the work and activities of
   3-18  the district, and have general direction of the affairs of the
   3-19  district, within such limitations as may be prescribed by the
   3-20  Board.  He shall be a person qualified by training and experience
   3-21  for the position of Administrator.
   3-22        c.  The Board of Managers shall have the authority to employ
   3-23  such doctors, technicians, nurses and other employees of every kind
   3-24  and character as may be deemed advisable for the efficient
   3-25  operation of the hospital or hospital system<; provided that no
   3-26  contract or term of employment shall exceed the period of two (2)
   3-27  years>.  The Board of Managers may delegate to the Administrator
   3-28  the authority to employ persons for the Hospital District.
   3-29        d.  The Board of Managers, with the approval of the governing
   3-30  body of the City of Amarillo, shall be authorized to contract with
   3-31  any county or other incorporated municipality for care and
   3-32  treatment of such county's or city's sick, diseased and injured
   3-33  persons, and with the State and agencies of the Federal Government
   3-34  for the care of and treatment of such persons for whom the State
   3-35  and such agencies of the Federal Government are responsible.
   3-36  Further, <under the same conditions,> the Board of Managers may
   3-37  <enter into such contracts with the State and Federal Government as
   3-38  may be necessary to> establish or continue a retirement program for
   3-39  the benefit of its employees and may contract with the State or
   3-40  Federal Government for that purpose.
   3-41        e.  A majority of the Board of Hospital Managers shall
   3-42  constitute a quorum for the transaction of any business.  From
   3-43  among its members the Board shall choose a Chairman, who shall
   3-44  preside; or in his absence a Chairman pro tem shall preside; and
   3-45  the Administrator or any member of the Board may be appointed
   3-46  secretary.  The Board shall require the secretary to keep suitable
   3-47  records of all proceedings of each meeting of the Board.  Such
   3-48  record shall be read and signed after each meeting by the Chairman
   3-49  or the member presiding, and attested by the secretary.  The Board
   3-50  may <shall> have a seal, on which shall be engraved the name of the
   3-51  Hospital District; and any <said> seal shall be kept by the
   3-52  secretary and may be used in authentication of <all> acts of the
   3-53  Board.
   3-54        f.  The Board of Managers may purchase insurance to protect
   3-55  the members of the Board from any liability that arises from
   3-56  serving on the Board.
   3-57        g.  The Board of Managers shall determine the eligibility
   3-58  standards for Hospital District assistance and the consideration to
   3-59  be received for its services, products, and the use of its
   3-60  facilities and may use the pricing methods it considers advisable,
   3-61  including discount and per diem pricing.
   3-62        h.  The Board of Managers may use Hospital District funds,
   3-63  enter into agreements, and take other necessary action to conduct,
   3-64  participate in, or assist health care education programs for the
   3-65  public and for current or potential medical staff members or
   3-66  employees.
   3-67        i.  The Board of Managers may use Hospital District funds to
   3-68  ensure the qualification  and continued qualification of physicians
   3-69  and other personnel.
   3-70        SECTION 6.  Section 5a, Chapter 136, Acts of the 55th
    4-1  Legislature, Regular Session, 1957, is amended to read as follows:
    4-2        Sec. 5a.  The Board of Managers<, with the approval of the
    4-3  governing body of the City of Amarillo,> is authorized to contract
    4-4  with West Texas State University or another educational institution
    4-5  for the coordination of educational <the B.S. degree and diploma>
    4-6  programs in recognized health care professions, including pharmacy,
    4-7  nursing, and allied health professions, to be conducted by each and
    4-8  for cooperative funding of the expense of an instructional program
    4-9  in those programs <nursing>.  The Hospital District may provide
   4-10  services, funds, or equipment and may make its facilities available
   4-11  to West Texas State University or other educational institutions
   4-12  for clinical instruction, research, or programs that grant degrees.
   4-13        SECTION 7.  Sections 10 and 12, Chapter 136, Acts of the 55th
   4-14  Legislature, Regular Session, 1957, are amended to read as follows:
   4-15        Sec. 10.  The <Within thirty (30) days after the appointment
   4-16  of the Board of Hospital Managers of any district created under
   4-17  this Act, the said> Board of Managers shall select one or more
   4-18  depositories <a depository> for such district in the manner
   4-19  provided by law for the selection of county depositories; and such
   4-20  depository or depositories shall be the depository or depositories
   4-21  of such district <for a period of two (2) years thereafter, or>
   4-22  until one or more successors are <its successor is> selected and
   4-23  qualified.  <In the alternative, the Board may elect to use the
   4-24  depository theretofore selected by the county.>
   4-25        Sec. 12.  The Board of Hospital Managers may be represented
   4-26  in all legal matters by the attorneys charged with representing the
   4-27  City of Amarillo in civil matters, and in such event the District
   4-28  shall contribute sufficient funds to the general fund of the City
   4-29  of Amarillo for the account of the budget of such attorneys to pay
   4-30  all additional salaries and expenses incurred by such attorneys in
   4-31  performing the duties required of them by the district; provided,
   4-32  however, that the Board may in its discretion employ legal counsel
   4-33  of its own selection if it deems the action advisable.
   4-34        SECTION 8.  Chapter 136, Acts of the 55th Legislature,
   4-35  Regular Session, 1957, is amended by adding Section 13A to read as
   4-36  follows:
   4-37        Sec. 13A.  Not later than the first day of each fiscal year,
   4-38  the Board of Managers shall adopt requirements to be used by the
   4-39  Hospital District in determining if a person is eligible for
   4-40  hospital, medical, or health care assistance from the District.
   4-41  The Board shall adopt an application procedure that specifies the
   4-42  documentation required in support of the application for
   4-43  assistance.
   4-44        SECTION 9.  Subsection a, Section 14, Chapter 136, Acts of
   4-45  the 55th Legislature, Regular Session, 1957, is amended to read as
   4-46  follows:
   4-47        a.  Whenever a patient has been admitted to the facilities of
   4-48  the Hospital District from Potter County or the Hospital District,
   4-49  the Administrator shall cause inquiry to be made as to his
   4-50  circumstances, and of the relatives of such patient legally liable
   4-51  for his support.  If it is determined <he finds> that such patient
   4-52  or said relatives are liable to pay for his care and treatment in
   4-53  whole or in part, an order shall be made directing such patient, or
   4-54  said relatives, to pay <to> the <treasurer of the> Hospital
   4-55  District for the support of such patient a specified sum <per week,
   4-56  in proportion to their financial ability, but such sum shall not
   4-57  exceed the actual per capita cost of maintenance>.  The
   4-58  Administrator shall have power and authority to collect such sum
   4-59  from the estate of the patient, or his relatives legally liable for
   4-60  his support, in the manner provided by law for the collection of
   4-61  expenses of the last illness of a deceased person.  <If the
   4-62  Administrator finds that such patient or said relatives are not
   4-63  able to pay, either in whole or in part, for his care and treatment
   4-64  in such hospital, the same shall become a charge upon the Hospital
   4-65  District.  Should there be a dispute as to the ability to pay, or
   4-66  doubt in the mind of the Administrator, the County Judge of Potter
   4-67  County shall hear and determine same, after calling witnesses, and
   4-68  shall make such order as may be proper, from which appeal shall lie
   4-69  to the district court by either party to the dispute.>
   4-70        SECTION 10.  Section 15, Chapter 136, Acts of the 55th
    5-1  Legislature, Regular Session, 1957, is amended to read as follows:
    5-2        Sec. 15.  Said Board of Managers of the Hospital District is
    5-3  authorized on behalf of said Hospital District to accept donations,
    5-4  gifts, and endowments for the Hospital District, to be held in
    5-5  trust or otherwise and administered by the Board of Managers for
    5-6  such purposes and under such directions, limitations, and
    5-7  provisions as may be prescribed in writing by donor, not
    5-8  inconsistent with proper management and the objectives <objects> of
    5-9  the Hospital District, and may establish foundations or nonprofit
   5-10  corporations for these purposes.
   5-11        SECTION 11.  Section C, Section 16, Chapter 136, Acts of the
   5-12  55th Legislature, Regular Session, 1957, is amended to read as
   5-13  follows:
   5-14        Sec. C.  The creation of said District by the City Commission
   5-15  of the City of Amarillo and the appointment of the Board of
   5-16  Hospital Managers by said Commission are hereby validated<,
   5-17  provided, however, that this validation provision shall not be
   5-18  applicable if litigation attacking the validity of the District is
   5-19  pending at the time this Act becomes effective>.
   5-20        SECTION 12.  Chapter 136, Acts of the 55th Legislature,
   5-21  Regular Session, 1957, is amended by adding Sections 17-20 to read
   5-22  as follows:
   5-23        Sec. 17.  a.  The Board of Managers shall require
   5-24  reimbursement from a county, municipality, or public hospital
   5-25  located outside the boundaries of the district for the district's
   5-26  care and treatment of a sick, diseased, or injured person of that
   5-27  county, municipality, or public hospital, as provided by Chapter
   5-28  61, Health and Safety Code.
   5-29        b.  The Board of Managers shall require reimbursement from
   5-30  the sheriff or police chief of a county or municipality for the
   5-31  district's care and treatment of a person confined in a jail
   5-32  facility of the county or municipality who is not a resident of the
   5-33  district.
   5-34        Sec. 18.  The Hospital District may contract with, affiliate
   5-35  with, or enter into other arrangements with managed care systems,
   5-36  preferred provider organizations, health maintenance organizations,
   5-37  other providers of alternative health care or delivery systems, or
   5-38  private hospitals to provide joint administration or delivery of
   5-39  health care services.
   5-40        Sec. 19.  a.  Registered voters of a defined territory that
   5-41  is not included in the Hospital District may file a petition with
   5-42  the Board of Managers requesting the inclusion of the territory in
   5-43  the district.  The petition must be signed by at least 50
   5-44  registered voters of the territory, or a majority of those voters,
   5-45  whichever is less.
   5-46        b.  The Board of Managers by order shall set a time and place
   5-47  to hold a hearing on the petition to include the territory in the
   5-48  Hospital District.  The Board shall set a date for the hearing that
   5-49  is at least 30 days after the date on which the Board issues the
   5-50  order.  The Board of Managers shall notify the governing body of
   5-51  the City of Amarillo of the hearing.
   5-52        c.  If, after the hearing, the Board of  Managers and the
   5-53  governing body of the City of Amarillo find that annexation of the
   5-54  territory to the Hospital District would benefit the District, the
   5-55  Board of Managers and the governing body of the City of Amarillo
   5-56  may approve the annexation by a resolution entered in their
   5-57  minutes.  The Board of Managers and the governing body of the City
   5-58  of Amarillo are not required to include all of the territory
   5-59  described in the petition if the Board of Managers and the
   5-60  governing body of the City of Amarillo find that including only a
   5-61  portion of the territory is necessary or desirable.
   5-62        d.  Annexation of territory is final when approved by a
   5-63  majority of voters at an election held in the Hospital District and
   5-64  by a majority of the voters at a separate election held in the
   5-65  territory to be annexed.  If the district has outstanding debts or
   5-66  taxes, the voters in the election to approve the annexation must
   5-67  also determine if the annexed territory will assume its proportion
   5-68  of the debts or taxes if added to the district.
   5-69        e.  The election ballots shall be printed to provide for
   5-70  voting for or against the following, as applicable:
    6-1              (1)  "Adding (description of territory to be annexed)
    6-2  to the Amarillo Hospital District and authorizing the levy by the
    6-3  governing body of the City of Amarillo of annual taxes to support
    6-4  the Amarillo Hospital District at a rate of not more than $.75 on
    6-5  each $100 valuation of taxable property in the proposed territory
    6-6  to be annexed."
    6-7              (2)  "(Description of territory to be annexed) assuming
    6-8  its proportionate share of the outstanding debts and taxes of the
    6-9  City of Amarillo Hospital District, if it is added to the
   6-10  district."
   6-11        f.  The election shall be held not less than 45 days nor more
   6-12  than 60 days after the date on which the election is ordered.
   6-13        g.  The election order must state:
   6-14              (1)  the nature of the election, including the
   6-15  proposition that is to appear on the ballot;
   6-16              (2)  the date of the election;
   6-17              (3)  the hours during which the polls will be open; and
   6-18              (4)  the location of the polling places.
   6-19        h.  The governing body of the City of Amarillo shall give
   6-20  notice of the election by publishing once a week for two
   6-21  consecutive weeks a substantial copy of the election order in a
   6-22  newspaper with general circulation in the Hospital District and in
   6-23  the territory proposed to be added to the District.  The first
   6-24  publication must appear at least 35 days before the date of the
   6-25  election.
   6-26        i.  The election may be called by the governing body of the
   6-27  City of Amarillo on its own motion.
   6-28        j.  The election shall be conducted by the persons
   6-29  responsible for conducting citywide elections in Amarillo.  The
   6-30  Hospital District shall pay the City of Amarillo for the cost of an
   6-31  election held under this section and shall make provision for the
   6-32  payment before the governing body of the City of Amarillo orders
   6-33  the election.
   6-34        k.  The Election Code governs an election held under this
   6-35  section, except that Section 41.001(a), Election Code, does not
   6-36  apply.
   6-37        Sec. 20.  Since the Hospital District is a public entity
   6-38  performing an essential public function, bonds issued by the
   6-39  district, any transaction relating to the bonds, and profits made
   6-40  in the sale of the bonds are free from taxation by the state or by
   6-41  any city, county, special district, or other political subdivision
   6-42  of the state.
   6-43        SECTION 13.  The importance of this legislation and the
   6-44  crowded condition of the calendars in both houses create an
   6-45  emergency and an imperative public necessity that the
   6-46  constitutional rule requiring bills to be read on three several
   6-47  days in each house be suspended, and this rule is hereby suspended,
   6-48  and that this Act take effect and be in force from and after its
   6-49  passage, and it is so enacted.
   6-50                               * * * * *
   6-51                                                         Austin,
   6-52  Texas
   6-53                                                         May 25, 1993
   6-54  Hon. Bob Bullock
   6-55  President of the Senate
   6-56  Sir:
   6-57  We, your Committee on Intergovernmental Relations to which was
   6-58  referred H.B. No. 2500, have had the same under consideration, and
   6-59  I am instructed to report it back to the Senate with the
   6-60  recommendation that it do not pass, but that the Committee
   6-61  Substitute adopted in lieu thereof do pass and be printed.
   6-62                                                         Armbrister,
   6-63  Chairman
   6-64                               * * * * *
   6-65                               WITNESSES
   6-66  No witnesses appeared on H.B. No. 2500.