73R8553 CLG-F
By Counts H.B. No. 2641
Substitute the following for H.B. No. 2641:
By Campbell C.S.H.B. No. 2641
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the board of directors and powers and duties of the
1-3 Lynn County Hospital District.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 4, Chapter 66, Acts of the 60th
1-6 Legislature, Regular Session, 1967, is amended to read as follows:
1-7 Sec. 4. (a) Seven directors <On the effective date of this
1-8 Act, the Commissioners Court of Lynn County shall appoint seven
1-9 persons to serve as the temporary or provisional directors of the
1-10 district. Each of these directors shall subscribe to the
1-11 constitutional oath of office within 60 days of the effective date
1-12 of this Act. Should any of the appointed directors refuse to act
1-13 or for any reason fail to qualify as herein required, the
1-14 Commissioners Court of Lynn County shall fill the vacancy. The
1-15 terms of office of the persons appointed as directors to the
1-16 second, fourth, and sixth places shall expire on the first Saturday
1-17 in April of the year following the election for the creation of the
1-18 district. The terms of the persons appointed as directors to the
1-19 first, third, fifth, and seventh places shall expire on the first
1-20 Saturday in April of the second year following the election for the
1-21 creation of the district. Successors> shall be elected by a vote
1-22 of the qualified voters of the entire district for three-year
1-23 <two-year> terms.
2-1 (b) <The directors appointed by the commissioners court and
2-2 their successors in office shall hold office as provisional or
2-3 temporary directors until the creation of the district has been
2-4 approved at an election as provided by this Act. At such time as
2-5 the creation of the district is approved and the returns of the
2-6 election officially canvassed, the persons acting as provisional
2-7 or temporary directors shall become permanent directors whose terms
2-8 shall expire as provided in this Act.> Each <permanent> director
2-9 and his successor in office shall qualify by executing the
2-10 constitutional oath of office, and the <permanent> directors,
2-11 acting as a board, shall have and exercise the powers conferred on
2-12 the board by this Act.
2-13 (c) To be eligible to be a candidate for or to serve as a
2-14 director, a person must be:
2-15 (1) a resident of the district; and
2-16 (2) a qualified voter <No person shall be a member of
2-17 the board of directors of the hospital district unless he is a
2-18 resident of the district and owns land subject to taxation in the
2-19 district and unless at the time of the election or appointment he
2-20 shall be more than 21 years of age>.
2-21 (d) The board of directors shall organize by electing one of
2-22 their number as president and one of their number as vice
2-23 president. A secretary, who need not be a director, shall also be
2-24 elected. Each officer of the board holds that office for a term of
2-25 one year. Four members of the board of directors shall constitute
3-1 a quorum and a concurrence of four shall be sufficient in all
3-2 matters pertaining to the business of the district. The board of
3-3 directors shall fill a vacancy in a board office for the unexpired
3-4 term. All vacancies in the office of director shall be filled for
3-5 the unexpired term by appointment of the remainder of the board of
3-6 directors. In the event the number of directors shall be reduced
3-7 to less than four for any reason, the remaining directors shall
3-8 immediately call a special election to fill the vacancies, and on
3-9 failure to do so, a district court, on application of any elector
3-10 or taxpayer of the district, may issue a mandate requiring that the
3-11 election be ordered by the remaining directors.
3-12 (e) A regular election of directors shall be held on the
3-13 first Saturday in May <April> of each year and notice of the
3-14 election shall be published in a newspaper of general circulation
3-15 in the district one time at least 10 days before the date of
3-16 election. Any person desiring his name to be printed on the ballot
3-17 as a candidate for director shall file a petition with the
3-18 secretary of the board of directors of the district, signed by not
3-19 less than 25 qualified electors, asking that his name be printed on
3-20 the ballot. The petition shall be filed before the 31st day <at
3-21 least 25 days> before the date of election.
3-22 (f) An employee of the district may not serve as a director.
3-23 (g) Before assuming the duties of the office, each director
3-24 must execute a bond for $5,000 payable to the district, conditioned
3-25 on the faithful performance of the person's duties as director.
4-1 The bond shall be kept in the permanent records of the district.
4-2 (h) The board of directors may pay for directors' bonds with
4-3 district funds.
4-4 (i) Directors and officers may be reimbursed for actual
4-5 expenses incurred in the performance of official duties. Expenses
4-6 reimbursed under this subsection must be:
4-7 (1) reported in the district's minute book or other
4-8 district records; and
4-9 (2) approved by the board of directors.
4-10 SECTION 2. Section 5, Chapter 66, Acts of the 60th
4-11 Legislature, Regular Session, 1967, is amended to read as follows:
4-12 Sec. 5. (a) The board of directors shall manage, control
4-13 and administer the hospitals and hospital system of the district.
4-14 The district through its board of directors shall have the power
4-15 and authority to sue and be sued, <and> to promulgate rules and
4-16 regulations for the operation of the district, and to define the
4-17 duties, functions, and responsibilities of the staff and employees
4-18 of the district. The board of directors shall appoint a qualified
4-19 person to be known as the administrator or manager of the hospital
4-20 district and may in its discretion appoint an assistant to the
4-21 administrator or manager. The administrator or manager and
4-22 assistant administrator or assistant manager, if any, shall serve
4-23 at the will of the board and shall receive compensation as may be
4-24 fixed by the board. The administrator or manager, on assuming his
4-25 duties, shall execute a bond payable to the hospital district in an
5-1 amount to be set by the board of directors, in no event less than
5-2 $5,000, conditioned that he shall perform the duties required of
5-3 him, and containing other conditions as the board may require. The
5-4 board of directors may pay for the bond with district funds. The
5-5 administrator or manager shall supervise all the work and
5-6 activities of the district and shall have general direction of the
5-7 affairs of the district, subject to the limitations prescribed by
5-8 the board. The board of directors shall have the authority to
5-9 appoint to the staff such doctors, and employ such technicians,
5-10 nurses and other employees of every kind and character deemed
5-11 necessary for the efficient operation of the district. The board
5-12 may provide that the administrator or manager shall have the
5-13 authority to employ technicians, nurses and employees of the
5-14 district. The board <shall be authorized to contract with any
5-15 county or incorporated municipality located outside its boundaries
5-16 for the care and treatment of the sick, diseased or injured persons
5-17 of the county or municipality, and> shall have the authority to
5-18 contract with the State of Texas or agencies of the federal
5-19 government for the treatment of sick, diseased or injured persons.
5-20 (b) The board of directors may enter into operating or
5-21 management contracts relating to hospital facilities.
5-22 (c) The board of directors shall require reimbursement from
5-23 a county, municipality, or public hospital located outside the
5-24 boundaries of the district for the district's care and treatment of
5-25 a sick, diseased, or injured person of that county, municipality,
6-1 or public hospital as provided by Chapter 61, Health and Safety
6-2 Code.
6-3 (d) The board of directors shall require reimbursement from
6-4 the sheriff or police chief of a county or municipality for the
6-5 district's care and treatment of a person confined in a jail
6-6 facility of the county or municipality who is not a resident of the
6-7 district.
6-8 (e) The board of directors may contract with a municipality,
6-9 county, special district, or other political subdivision of the
6-10 state or with a state or federal agency for the district to:
6-11 (1) furnish a mobile emergency medical service; or
6-12 (2) provide for the investigatory or welfare needs of
6-13 inhabitants of the district.
6-14 SECTION 3. Chapter 66, Acts of the 60th Legislature, Regular
6-15 Session, 1967, is amended by adding Sections 5A and 5B to read as
6-16 follows:
6-17 Sec. 5A. (a) The board of directors may provide emergency
6-18 services, home health care services, long-term health care
6-19 services, special care facility services, or any other health care
6-20 services the board of directors determines are necessary to meet
6-21 the needs of the district.
6-22 (b) The board of directors may spend district funds to:
6-23 (1) recruit physicians, nurses, or other trained
6-24 medical personnel and, in connection with recruitment, may pay a
6-25 person's tuition or other education-related costs or expenses if
7-1 the person contractually agrees to become an employee of the
7-2 district after graduation from a medical or nursing school or an
7-3 institution of higher education; or
7-4 (2) provide for continuing education and retraining of
7-5 district employees.
7-6 Sec. 5B. The board of directors may provide retirement
7-7 benefits for employees of the district by:
7-8 (1) establishing or administering a retirement
7-9 program; or
7-10 (2) electing to participate in the Texas County and
7-11 District Retirement System or in any other statewide retirement
7-12 system in which the district is eligible to participate.
7-13 SECTION 4. Section 7, Chapter 66, Acts of the 60th
7-14 Legislature, Regular Session, 1967, is amended by amending
7-15 Subsections (a) and (c) and adding Subsections (d), (e), and (f) to
7-16 read as follows:
7-17 (a) The board of directors shall have the power and
7-18 authority to issue and to sell its bonds in the name and on the
7-19 faith and credit of the hospital district for the acquisition and
7-20 operation of a mobile emergency medical service and for the
7-21 purchase, construction, acquisition, repair or renovation of
7-22 buildings and improvements and equipping the same for hospital
7-23 purposes<, and for any or all of these purposes>. At the time of
7-24 the issuance of any bonds by the district, a tax shall be levied by
7-25 the board sufficient to create an interest and sinking fund to pay
8-1 the interest on and principal of the bonds as they mature,
8-2 providing the tax together with any other taxes levied for the
8-3 district shall not exceed 75 cents on each $100 valuation of
8-4 taxable property in any one year, upon all property subject to
8-5 hospital district taxation within said district. <No bonds shall
8-6 be issued by the hospital district except refunding bonds until
8-7 authorized by a majority of the qualified property taxpaying
8-8 electors. The order for the bond election shall specify the date
8-9 of the election, the amount of bonds to be authorized, the maximum
8-10 maturity of the bonds, the maximum rate of interest they are to
8-11 bear, the place or places where the election shall be held, the
8-12 presiding judge and alternate judge for each voting place and
8-13 provide for clerks as in county elections. Notice of any bond
8-14 election, except one held under the provisions of Section 8, in
8-15 which instance notice shall be given as provided in Section 3,
8-16 shall be given as provided in Article 704, Revised Civil Statutes
8-17 of Texas, 1925, as amended, and shall be conducted in accordance
8-18 with the general laws of Texas pertaining to general elections,
8-19 except as modified by the provisions of this Act.>
8-20 (c) Bonds of the district shall bear interest at a rate not
8-21 to exceed that provided by Chapter 3, Acts of the 61st Legislature,
8-22 Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
8-23 Statutes) <six percent a year>, shall mature not later than the
8-24 50th anniversary of the date of their issuance <within 40 years of
8-25 their date>, shall be executed in the name of the hospital district
9-1 and in its behalf by the president of the board and countersigned
9-2 by the secretary in the manner provided by Chapter 204, Acts of the
9-3 57th Legislature, Regular Session, 1961 (Article 717j-1, Vernon's
9-4 Texas Civil Statutes), as amended, and shall be subject to the same
9-5 requirements in the matter of approval by the Attorney General of
9-6 Texas and registration by the Comptroller of Public Accounts of the
9-7 State of Texas as are by law provided for approval and registration
9-8 of bonds issued by counties. On the approval of the bonds by the
9-9 attorney general and registration by the comptroller, the bonds
9-10 shall be incontestable for any cause.
9-11 (d) The board of directors may issue revenue bonds to:
9-12 (1) purchase, construct, acquire, repair, equip, or
9-13 renovate buildings or improvements for hospital purposes;
9-14 (2) acquire sites to be used for hospital purposes; or
9-15 (3) acquire and operate a mobile emergency medical
9-16 service to assist the district in carrying out its hospital
9-17 purposes.
9-18 (e) The revenue bonds must be payable from and secured by a
9-19 pledge of all or part of the revenues derived from the operation of
9-20 the district's hospital system. The bonds may be additionally
9-21 secured by a mortgage or deed of trust lien on all or part of
9-22 district property.
9-23 (f) The revenue bonds must be issued in the manner provided
9-24 by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and
9-25 264.049, Health and Safety Code, for issuance of revenue bonds by
10-1 county hospital authorities.
10-2 SECTION 5. Chapter 66, Acts of the 60th Legislature, Regular
10-3 Session, 1967, is amended by adding Section 7A to read as follows:
10-4 Sec. 7A. (a) If the board of directors declares that funds
10-5 are not available to meet lawfully authorized obligations of the
10-6 district and that an emergency exists, the board of directors may
10-7 borrow money at a rate not to exceed the maximum annual percentage
10-8 rate allowed by law for district obligations at the time the loan
10-9 is made.
10-10 (b) To secure a loan, the board of directors may pledge:
10-11 (1) revenues of the district that are not pledged to
10-12 pay bonded indebtedness of the district;
10-13 (2) district taxes to be levied by the district in the
10-14 next 12-month period that are not pledged to pay the principal of
10-15 or interest on district bonds; or
10-16 (3) district bonds that have been authorized but not
10-17 sold.
10-18 (c) A loan for which taxes or bonds are pledged must mature
10-19 not later than the anniversary of the date on which the loan is
10-20 made. A loan for which district revenues are pledged must mature
10-21 not later than the fifth anniversary of the date on which the loan
10-22 is made.
10-23 (d) The board of directors may not spend money obtained from
10-24 a loan under this section for any purpose other than the purpose
10-25 for which the board of directors declared an emergency and, if
11-1 taxes or bonds are pledged to pay the loan, for any purpose other
11-2 than the purpose for which the pledged taxes were levied or the
11-3 pledged bonds were authorized.
11-4 SECTION 6. Section 10, Chapter 66, Acts of the 60th
11-5 Legislature, Regular Session, 1967, is amended to read as follows:
11-6 Sec. 10. The board of directors of the district shall have
11-7 the power to prescribe the method and manner of making purchases
11-8 and expenditures by and for the hospital district in a manner that
11-9 is consistent with Subtitle C, Title 8, Local Government Code, and
11-10 shall be authorized to prescribe all accounting and control
11-11 procedures. <All purchases involving the expenditure of more than
11-12 $2,000 may be made only after advertising in the manner provided by
11-13 Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931,
11-14 as amended (Article 2368a, Vernon's Texas Civil Statutes).> The
11-15 district may acquire equipment for use in its hospital system and
11-16 mortgage or pledge the property so acquired as security for the
11-17 payment of the purchase price<, but any contract shall provide for
11-18 the entire obligation of the district to be retired within five
11-19 years from the date of the contract>. Except as permitted in the
11-20 preceding sentence and as permitted by Sections 7 and 8, the
11-21 district may incur no obligation payable from any revenues of the
11-22 district, taxes or otherwise, except those on hand or to be on hand
11-23 within the then current fiscal year of the district or the fiscal
11-24 year immediately following.
11-25 SECTION 7. Chapter 66, Acts of the 60th Legislature, Regular
12-1 Session, 1967, is amended by adding Section 10A to read as follows:
12-2 Sec. 10A. (a) The board of directors may enter into
12-3 construction contracts for the district.
12-4 (b) The board of directors may enter into construction
12-5 contracts that involve spending more than $10,000 only after
12-6 competitive bidding as provided by Subchapter B, Chapter 271, Local
12-7 Government Code.
12-8 SECTION 8. Section 15, Chapter 66, Acts of the 60th
12-9 Legislature, Regular Session, 1967, is amended to read as follows:
12-10 Sec. 15. (a) The board of directors annually may impose
12-11 property taxes in an amount not to exceed the limit approved by the
12-12 voters at the election authorizing the levy of taxes. In adopting
12-13 the tax rate, the board of directors shall consider the income of
12-14 the district from sources other than taxation. The tax rate for
12-15 all purposes may not exceed 75 cents on each $100 valuation of all
12-16 taxable property in the district <The district taxes shall be
12-17 assessed and collected on county tax values in the same manner as
12-18 provided by law with relation to county taxes on all taxable
12-19 property in the district subject to hospital district taxation.
12-20 The tax assessor-collector of the county in which the district is
12-21 situated shall be charged and required to accomplish the assessment
12-22 and collection of all taxes levied by and on behalf of the
12-23 district. The assessor-collector of taxes shall charge and deduct
12-24 from payments to the hospital district an amount as fees for
12-25 assessing and collecting the taxes at a rate of one percent of the
13-1 taxes assessed and one percent of the taxes collected, but in no
13-2 event shall the amount paid be more than $5,000 in one calendar
13-3 year. The fees shall be deposited in the officers salary fund of
13-4 the county and reported as fees of office of the county tax
13-5 assessor-collector. Interest and penalties on taxes paid to the
13-6 hospital district shall be the same as in the case of county
13-7 taxes. Discounts shall be the same as allowed by the county. The
13-8 residue of tax collections after deduction of discounts and fees
13-9 for assessing and collecting shall be deposited in the district's
13-10 depository. The board of directors shall have the authority to
13-11 levy the aforesaid tax for the entire year in which said district
13-12 is established as the result of the election. The bond of the
13-13 county tax assessor-collector shall stand as security for the
13-14 proper performance of his duties as assessor-collector of the
13-15 district, or, if in the judgment of the district board of directors
13-16 it is necessary, additional bond payable to the district may be
13-17 required. In all matters pertaining to the assessment, collection
13-18 and enforcement of taxes for the district, the county tax
13-19 assessor-collector shall be authorized to act in all respects
13-20 according to the laws of the State of Texas relating to State and
13-21 county taxes>.
13-22 (b) The taxes may be used to pay:
13-23 (1) the indebtedness issued or assumed by the
13-24 district; and
13-25 (2) the maintenance and operating expenses of the
14-1 district.
14-2 (c) The district may not impose taxes to pay the principal
14-3 of or interest on revenue bonds issued under this Act.
14-4 (d) The Tax Code governs the appraisal, assessment, and
14-5 collection of district taxes.
14-6 (e) The board of directors may provide for the appointment
14-7 of a tax assessor-collector for the district or may contract for
14-8 the assessment and collection of taxes as provided by the Tax Code.
14-9 SECTION 9. (a) The district shall hold an election for
14-10 directors on May 7, 1994. At that election, seven new directors
14-11 shall be elected. The directors elected at that election shall
14-12 draw lots to determine which three directors shall serve three-year
14-13 terms, which two directors shall serve two-year terms, and which
14-14 two directors shall serve one-year terms.
14-15 (b) The terms of the directors serving on the board
14-16 immediately before the date of the election expire when a majority
14-17 of the new directors take office.
14-18 SECTION 10. The importance of this legislation and the
14-19 crowded condition of the calendars in both houses create an
14-20 emergency and an imperative public necessity that the
14-21 constitutional rule requiring bills to be read on three several
14-22 days in each house be suspended, and this rule is hereby suspended,
14-23 and that this Act take effect and be in force from and after its
14-24 passage, and it is so enacted.