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.