By Counts                                             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(a), Chapter 66, Acts of the 60th
    1-6  Legislature, Regular Session, 1967 is amended to read as follows:
    1-7        Sec. 4.  <(a)  On the effective date of this Act, the
    1-8  Commissioners Court of Lynn County shall appoint seven persons to
    1-9  serve as the temporary or provisional directors of the district.
   1-10  Each of these directors shall subscribe to the constitutional oath
   1-11  of office within 60 days of the effective date of this Act.  Should
   1-12  any of the appointed directors refuse to act or for any reason fail
   1-13  to qualify as herein required, the Commissioners Court of Lynn
   1-14  County shall fill the vacancy.  The terms of office of the persons
   1-15  appointed as directors to the second, fourth, and sixth places
   1-16  shall expire on the first Saturday in April of the year following
   1-17  the election for the creation of the district.  The terms of the
   1-18  persons appointed as directors to the first, third, fifth, and
   1-19  seventh places shall expire on the first Saturday in April of the
   1-20  second year following the election for the creation of the
   1-21  district.  Successors> Seven directors shall be elected by a vote
   1-22  of the qualified voters of the entire district for <two> three-year
   1-23  terms  Directors shall be elected at an election to be held on the
    2-1  first Saturday in May of each year.  The terms of office for the
    2-2  successors to the directors currently serving in places two, four,
    2-3  and six shall begin on the first Saturday in May, 1994 and shall
    2-4  expire on the first Saturday in May, 1997.  The terms of office for
    2-5  the successors to the directors currently serving in places three
    2-6  and five shall begin on the first Saturday of May, 1995 and shall
    2-7  expire on the first Saturday in May, 1998.  The terms of office for
    2-8  the successors to the directors serving in places one and seven
    2-9  shall begin on the first Saturday in May, 1995 and shall expire on
   2-10  the first Saturday in May, 1999.  Thereafter, all successive terms
   2-11  shall be of three years duration.
   2-12        SECTION 2.  Section 4(b), Chapter 66, Acts of the 60th
   2-13  Legislature, Regular Session, 1967, is amended to read as follows:
   2-14        (b)  <The directors appointed by the commissioners court and
   2-15  their successors in office shall hold office as provisional or
   2-16  temporary directors until the creation of the district has been
   2-17  approved at an election as provided by this Act.  At such time as
   2-18  the creation of the district is approved and the returns of the
   2-19  election officially canvassed, the persons acting as provisional or
   2-20  temporary directors shall become permanent directors whose terms
   2-21  shall expire as provided in this Act.>  Each <permanent> director
   2-22  <or> and his successor in office shall qualify by executing the
   2-23  constitutional oath of office, and the <permanent> directors,
   2-24  acting as a board, shall have and exercise the powers conferred on
   2-25  the board by this Act.
    3-1        SECTION 3.  Section 10, Chapter 66, Acts of the 60th
    3-2  Legislature, Regular Session, 1967, is amended to read as follows:
    3-3        Sec. 10.  The board of directors of the district shall have
    3-4  the power to prescribe the method and manner of making purchases
    3-5  and expenditures by and for the hospital district in any manner
    3-6  consistent with Title 8, subtitle c of the Texas Local Government
    3-7  Code, and shall be authorized to prescribe all accounting and
    3-8  control procedures.  <All purchases involving the expenditure of
    3-9  more than $2,000 may be made only after advertising in the manner
   3-10  provided by Chapter 163, Acts of the 42nd Legislature, Regular
   3-11  Session, 1931, as amended (Article 2368a, Vernon's Texas Civil
   3-12  Statutes).>  The district may acquire equipment for use in its
   3-13  hospital system and mortgage or pledge the property so acquired as
   3-14  security for the payment of the purchase price, but any contract
   3-15  shall provide for the entire obligation of the district to be
   3-16  retired within five years from the date of the contract.  Except as
   3-17  permitted in the preceding sentence and as permitted by Sections 7
   3-18  and 8, the district may incur no obligation payable from any
   3-19  revenues of the district, taxes or otherwise, except those on hand
   3-20  or to be on hand within the then current fiscal year of the
   3-21  district or the fiscal year immediately following.
   3-22        SECTION 4.  Chapter 66, Acts of the 60th Legislature, Regular
   3-23  Session, 1967, is amended by adding Sections 5A and 7A to read as
   3-24  follows:
   3-25        Sec. 5A.  The board may provide emergency services, home
    4-1  health care services, long-term health care services, or any other
    4-2  health care services the board determines are necessary to meet the
    4-3  needs of the district.
    4-4        (h)  The board may spend district funds to:
    4-5              (1)  recruit physicians, nurses, or other trained
    4-6  medical personnel and, in connection with recruitment, may pay a
    4-7  person's tuition or other education-related costs or expenses if
    4-8  the person contractually agrees to become an employee of the
    4-9  district after graduation from a medical or nursing school or an
   4-10  institution of higher education; or
   4-11              (2)  provide for continuing education and retraining of
   4-12  district employees.
   4-13        Sec. 7A.  BORROWING MONEY IN EMERGENCIES.  (a)  If the board
   4-14  declares that funds are not available to meet lawfully authorized
   4-15  obligations of the district and that an emergency exists, the board
   4-16  may borrow money at a rate not to exceed the maximum annual
   4-17  percentage rate allowed by law for district obligations at the time
   4-18  the loan is made.
   4-19        (b)  To secure a loan, the board may pledge:
   4-20              (1)  revenues of the district that are not pledged to
   4-21  pay bonded indebtedness of the district;
   4-22              (2)  district taxes to be levied by the district in the
   4-23  next 12-month period that are not pledged to pay the principal of
   4-24  or interest on district bonds; or
   4-25              (3)  district bonds that have been authorized but not
    5-1  sold.
    5-2        (c)  A loan for which taxes or bonds are pledged must mature
    5-3  not later than the anniversary of the date on which the loan is
    5-4  made.  A loan for which district revenues are pledged must mature
    5-5  not later than the fifth anniversary of the date on which the loan
    5-6  is made.
    5-7        (d)  The board may not spend money obtained from a loan under
    5-8  this section for any purpose other than the purpose for which the
    5-9  board declared an emergency and, if taxes or bonds are pledged to
   5-10  pay the loan, for any purpose other than the purpose for which the
   5-11  pledged taxes were levied or the pledged bonds were authorized.
   5-12        SECTION 5.  (a)  This Act takes effect September 1, 1993.
   5-13        (b)  The first election for directors under this Act shall be
   5-14  held on May 2, 1992.
   5-15        (c)  At the first election for directors under this Act,
   5-16  seven new directors shall be elected.  The four directors receiving
   5-17  the highest number of votes at the May 1992 election serve for a
   5-18  term of four years.  The remaining directors serve for a term of
   5-19  two years.
   5-20        (d)  The terms of the directors serving on the board
   5-21  immediately before the effective date of this Act expire when a
   5-22  majority of the new directors take office.
   5-23        SECTION 6.  The importance of this legislation and the
   5-24  crowded condition of the calendars in both houses create an
   5-25  emergency and an imperative public necessity that the
    6-1  constitutional rule requiring bills to be read on three several
    6-2  days in each house be suspended, and this rule is hereby suspended.