1-1 By: Counts (Senate Sponsor - Montford) H.B. No. 2641
1-2 (In the Senate - Received from the House May 10, 1993;
1-3 May 17, 1993, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 20, 1993, reported favorably by
1-5 the following vote: Yeas 10, Nays 0; May 20, 1993, sent to
1-6 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 A BILL TO BE ENTITLED
1-21 AN ACT
1-22 relating to the board of directors and powers and duties of the
1-23 Lynn County Hospital District.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 4, Chapter 66, Acts of the 60th
1-26 Legislature, Regular Session, 1967, is amended to read as follows:
1-27 Sec. 4. (a) Seven directors <On the effective date of this
1-28 Act, the Commissioners Court of Lynn County shall appoint seven
1-29 persons to serve as the temporary or provisional directors of the
1-30 district. Each of these directors shall subscribe to the
1-31 constitutional oath of office within 60 days of the effective date
1-32 of this Act. Should any of the appointed directors refuse to act
1-33 or for any reason fail to qualify as herein required, the
1-34 Commissioners Court of Lynn County shall fill the vacancy. The
1-35 terms of office of the persons appointed as directors to the
1-36 second, fourth, and sixth places shall expire on the first Saturday
1-37 in April of the year following the election for the creation of the
1-38 district. The terms of the persons appointed as directors to the
1-39 first, third, fifth, and seventh places shall expire on the first
1-40 Saturday in April of the second year following the election for the
1-41 creation of the district. Successors> shall be elected by a vote
1-42 of the qualified voters of the entire district for three-year
1-43 <two-year> terms.
1-44 (b) <The directors appointed by the commissioners court and
1-45 their successors in office shall hold office as provisional or
1-46 temporary directors until the creation of the district has been
1-47 approved at an election as provided by this Act. At such time as
1-48 the creation of the district is approved and the returns of the
1-49 election officially canvassed, the persons acting as provisional
1-50 or temporary directors shall become permanent directors whose terms
1-51 shall expire as provided in this Act.> Each <permanent> director
1-52 and his successor in office shall qualify by executing the
1-53 constitutional oath of office, and the <permanent> directors,
1-54 acting as a board, shall have and exercise the powers conferred on
1-55 the board by this Act.
1-56 (c) To be eligible to be a candidate for or to serve as a
1-57 director, a person must be:
1-58 (1) a resident of the district; and
1-59 (2) a qualified voter <No person shall be a member of
1-60 the board of directors of the hospital district unless he is a
1-61 resident of the district and owns land subject to taxation in the
1-62 district and unless at the time of the election or appointment he
1-63 shall be more than 21 years of age>.
1-64 (d) The board of directors shall organize by electing one of
1-65 their number as president and one of their number as vice
1-66 president. A secretary, who need not be a director, shall also be
1-67 elected. Each officer of the board holds that office for a term of
1-68 one year. Four members of the board of directors shall constitute
2-1 a quorum and a concurrence of four shall be sufficient in all
2-2 matters pertaining to the business of the district. The board of
2-3 directors shall fill a vacancy in a board office for the unexpired
2-4 term. All vacancies in the office of director shall be filled for
2-5 the unexpired term by appointment of the remainder of the board of
2-6 directors. In the event the number of directors shall be reduced
2-7 to less than four for any reason, the remaining directors shall
2-8 immediately call a special election to fill the vacancies, and on
2-9 failure to do so, a district court, on application of any elector
2-10 or taxpayer of the district, may issue a mandate requiring that the
2-11 election be ordered by the remaining directors.
2-12 (e) A regular election of directors shall be held on the
2-13 first Saturday in May <April> of each year and notice of the
2-14 election shall be published in a newspaper of general circulation
2-15 in the district one time at least 10 days before the date of
2-16 election. Any person desiring his name to be printed on the ballot
2-17 as a candidate for director shall file a petition with the
2-18 secretary of the board of directors of the district, signed by not
2-19 less than 25 qualified electors, asking that his name be printed on
2-20 the ballot. The petition shall be filed before the 31st day <at
2-21 least 25 days> before the date of election.
2-22 (f) An employee of the district may not serve as a director.
2-23 (g) Before assuming the duties of the office, each director
2-24 must execute a bond for $5,000 payable to the district, conditioned
2-25 on the faithful performance of the person's duties as director.
2-26 The bond shall be kept in the permanent records of the district.
2-27 (h) The board of directors may pay for directors' bonds with
2-28 district funds.
2-29 (i) Directors and officers may be reimbursed for actual
2-30 expenses incurred in the performance of official duties. Expenses
2-31 reimbursed under this subsection must be:
2-32 (1) reported in the district's minute book or other
2-33 district records; and
2-34 (2) approved by the board of directors.
2-35 SECTION 2. Section 5, Chapter 66, Acts of the 60th
2-36 Legislature, Regular Session, 1967, is amended to read as follows:
2-37 Sec. 5. (a) The board of directors shall manage, control
2-38 and administer the hospitals and hospital system of the district.
2-39 The district through its board of directors shall have the power
2-40 and authority to sue and be sued, <and> to promulgate rules and
2-41 regulations for the operation of the district, and to define the
2-42 duties, functions, and responsibilities of the staff and employees
2-43 of the district. The board of directors shall appoint a qualified
2-44 person to be known as the administrator or manager of the hospital
2-45 district and may in its discretion appoint an assistant to the
2-46 administrator or manager. The administrator or manager and
2-47 assistant administrator or assistant manager, if any, shall serve
2-48 at the will of the board and shall receive compensation as may be
2-49 fixed by the board. The administrator or manager, on assuming his
2-50 duties, shall execute a bond payable to the hospital district in an
2-51 amount to be set by the board of directors, in no event less than
2-52 $5,000, conditioned that he shall perform the duties required of
2-53 him, and containing other conditions as the board may require. The
2-54 board of directors may pay for the bond with district funds. The
2-55 administrator or manager shall supervise all the work and
2-56 activities of the district and shall have general direction of the
2-57 affairs of the district, subject to the limitations prescribed by
2-58 the board. The board of directors shall have the authority to
2-59 appoint to the staff such doctors, and employ such technicians,
2-60 nurses and other employees of every kind and character deemed
2-61 necessary for the efficient operation of the district. The board
2-62 may provide that the administrator or manager shall have the
2-63 authority to employ technicians, nurses and employees of the
2-64 district. The board <shall be authorized to contract with any
2-65 county or incorporated municipality located outside its boundaries
2-66 for the care and treatment of the sick, diseased or injured persons
2-67 of the county or municipality, and> shall have the authority to
2-68 contract with the State of Texas or agencies of the federal
2-69 government for the treatment of sick, diseased or injured persons.
2-70 (b) The board of directors may enter into operating or
3-1 management contracts relating to hospital facilities.
3-2 (c) The board of directors shall require reimbursement from
3-3 a county, municipality, or public hospital located outside the
3-4 boundaries of the district for the district's care and treatment of
3-5 a sick, diseased, or injured person of that county, municipality,
3-6 or public hospital as provided by Chapter 61, Health and Safety
3-7 Code.
3-8 (d) The board of directors shall require reimbursement from
3-9 the sheriff or police chief of a county or municipality for the
3-10 district's care and treatment of a person confined in a jail
3-11 facility of the county or municipality who is not a resident of the
3-12 district.
3-13 (e) The board of directors may contract with a municipality,
3-14 county, special district, or other political subdivision of the
3-15 state or with a state or federal agency for the district to:
3-16 (1) furnish a mobile emergency medical service; or
3-17 (2) provide for the investigatory or welfare needs of
3-18 inhabitants of the district.
3-19 SECTION 3. Chapter 66, Acts of the 60th Legislature, Regular
3-20 Session, 1967, is amended by adding Sections 5A and 5B to read as
3-21 follows:
3-22 Sec. 5A. (a) The board of directors may provide emergency
3-23 services, home health care services, long-term health care
3-24 services, special care facility services, or any other health care
3-25 services the board of directors determines are necessary to meet
3-26 the needs of the district.
3-27 (b) The board of directors may spend district funds to:
3-28 (1) recruit physicians, nurses, or other trained
3-29 medical personnel and, in connection with recruitment, may pay a
3-30 person's tuition or other education-related costs or expenses if
3-31 the person contractually agrees to become an employee of the
3-32 district after graduation from a medical or nursing school or an
3-33 institution of higher education; or
3-34 (2) provide for continuing education and retraining of
3-35 district employees.
3-36 Sec. 5B. The board of directors may provide retirement
3-37 benefits for employees of the district by:
3-38 (1) establishing or administering a retirement
3-39 program; or
3-40 (2) electing to participate in the Texas County and
3-41 District Retirement System or in any other statewide retirement
3-42 system in which the district is eligible to participate.
3-43 SECTION 4. Section 7, Chapter 66, Acts of the 60th
3-44 Legislature, Regular Session, 1967, is amended by amending
3-45 Subsections (a) and (c) and adding Subsections (d), (e), and (f) to
3-46 read as follows:
3-47 (a) The board of directors shall have the power and
3-48 authority to issue and to sell its bonds in the name and on the
3-49 faith and credit of the hospital district for the acquisition and
3-50 operation of a mobile emergency medical service and for the
3-51 purchase, construction, acquisition, repair or renovation of
3-52 buildings and improvements and equipping the same for hospital
3-53 purposes<, and for any or all of these purposes>. At the time of
3-54 the issuance of any bonds by the district, a tax shall be levied by
3-55 the board sufficient to create an interest and sinking fund to pay
3-56 the interest on and principal of the bonds as they mature,
3-57 providing the tax together with any other taxes levied for the
3-58 district shall not exceed 75 cents on each $100 valuation of
3-59 taxable property in any one year, upon all property subject to
3-60 hospital district taxation within said district. <No bonds shall
3-61 be issued by the hospital district except refunding bonds until
3-62 authorized by a majority of the qualified property taxpaying
3-63 electors. The order for the bond election shall specify the date
3-64 of the election, the amount of bonds to be authorized, the maximum
3-65 maturity of the bonds, the maximum rate of interest they are to
3-66 bear, the place or places where the election shall be held, the
3-67 presiding judge and alternate judge for each voting place and
3-68 provide for clerks as in county elections. Notice of any bond
3-69 election, except one held under the provisions of Section 8, in
3-70 which instance notice shall be given as provided in Section 3,
4-1 shall be given as provided in Article 704, Revised Civil Statutes
4-2 of Texas, 1925, as amended, and shall be conducted in accordance
4-3 with the general laws of Texas pertaining to general elections,
4-4 except as modified by the provisions of this Act.>
4-5 (c) Bonds of the district shall bear interest at a rate not
4-6 to exceed that provided by Chapter 3, Acts of the 61st Legislature,
4-7 Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
4-8 Statutes) <six percent a year>, shall mature not later than the
4-9 50th anniversary of the date of their issuance <within 40 years of
4-10 their date>, shall be executed in the name of the hospital district
4-11 and in its behalf by the president of the board and countersigned
4-12 by the secretary in the manner provided by Chapter 204, Acts of the
4-13 57th Legislature, Regular Session, 1961 (Article 717j-1, Vernon's
4-14 Texas Civil Statutes), as amended, and shall be subject to the same
4-15 requirements in the matter of approval by the Attorney General of
4-16 Texas and registration by the Comptroller of Public Accounts of the
4-17 State of Texas as are by law provided for approval and registration
4-18 of bonds issued by counties. On the approval of the bonds by the
4-19 attorney general and registration by the comptroller, the bonds
4-20 shall be incontestable for any cause.
4-21 (d) The board of directors may issue revenue bonds to:
4-22 (1) purchase, construct, acquire, repair, equip, or
4-23 renovate buildings or improvements for hospital purposes;
4-24 (2) acquire sites to be used for hospital purposes; or
4-25 (3) acquire and operate a mobile emergency medical
4-26 service to assist the district in carrying out its hospital
4-27 purposes.
4-28 (e) The revenue bonds must be payable from and secured by a
4-29 pledge of all or part of the revenues derived from the operation of
4-30 the district's hospital system. The bonds may be additionally
4-31 secured by a mortgage or deed of trust lien on all or part of
4-32 district property.
4-33 (f) The revenue bonds must be issued in the manner provided
4-34 by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and
4-35 264.049, Health and Safety Code, for issuance of revenue bonds by
4-36 county hospital authorities.
4-37 SECTION 5. Chapter 66, Acts of the 60th Legislature, Regular
4-38 Session, 1967, is amended by adding Section 7A to read as follows:
4-39 Sec. 7A. (a) If the board of directors declares that funds
4-40 are not available to meet lawfully authorized obligations of the
4-41 district and that an emergency exists, the board of directors may
4-42 borrow money at a rate not to exceed the maximum annual percentage
4-43 rate allowed by law for district obligations at the time the loan
4-44 is made.
4-45 (b) To secure a loan, the board of directors may pledge:
4-46 (1) revenues of the district that are not pledged to
4-47 pay bonded indebtedness of the district;
4-48 (2) district taxes to be levied by the district in the
4-49 next 12-month period that are not pledged to pay the principal of
4-50 or interest on district bonds; or
4-51 (3) district bonds that have been authorized but not
4-52 sold.
4-53 (c) A loan for which taxes or bonds are pledged must mature
4-54 not later than the anniversary of the date on which the loan is
4-55 made. A loan for which district revenues are pledged must mature
4-56 not later than the fifth anniversary of the date on which the loan
4-57 is made.
4-58 (d) The board of directors may not spend money obtained from
4-59 a loan under this section for any purpose other than the purpose
4-60 for which the board of directors declared an emergency and, if
4-61 taxes or bonds are pledged to pay the loan, for any purpose other
4-62 than the purpose for which the pledged taxes were levied or the
4-63 pledged bonds were authorized.
4-64 SECTION 6. Section 10, Chapter 66, Acts of the 60th
4-65 Legislature, Regular Session, 1967, is amended to read as follows:
4-66 Sec. 10. The board of directors of the district shall have
4-67 the power to prescribe the method and manner of making purchases
4-68 and expenditures by and for the hospital district in a manner that
4-69 is consistent with Subtitle C, Title 8, Local Government Code, and
4-70 shall be authorized to prescribe all accounting and control
5-1 procedures. <All purchases involving the expenditure of more than
5-2 $2,000 may be made only after advertising in the manner provided by
5-3 Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931,
5-4 as amended (Article 2368a, Vernon's Texas Civil Statutes).> The
5-5 district may acquire equipment for use in its hospital system and
5-6 mortgage or pledge the property so acquired as security for the
5-7 payment of the purchase price<, but any contract shall provide for
5-8 the entire obligation of the district to be retired within five
5-9 years from the date of the contract>. Except as permitted in the
5-10 preceding sentence and as permitted by Sections 7 and 8, the
5-11 district may incur no obligation payable from any revenues of the
5-12 district, taxes or otherwise, except those on hand or to be on hand
5-13 within the then current fiscal year of the district or the fiscal
5-14 year immediately following.
5-15 SECTION 7. Chapter 66, Acts of the 60th Legislature, Regular
5-16 Session, 1967, is amended by adding Section 10A to read as follows:
5-17 Sec. 10A. (a) The board of directors may enter into
5-18 construction contracts for the district.
5-19 (b) The board of directors may enter into construction
5-20 contracts that involve spending more than $10,000 only after
5-21 competitive bidding as provided by Subchapter B, Chapter 271, Local
5-22 Government Code.
5-23 SECTION 8. Section 15, Chapter 66, Acts of the 60th
5-24 Legislature, Regular Session, 1967, is amended to read as follows:
5-25 Sec. 15. (a) The board of directors annually may impose
5-26 property taxes in an amount not to exceed the limit approved by the
5-27 voters at the election authorizing the levy of taxes. In adopting
5-28 the tax rate, the board of directors shall consider the income of
5-29 the district from sources other than taxation. The tax rate for
5-30 all purposes may not exceed 75 cents on each $100 valuation of all
5-31 taxable property in the district <The district taxes shall be
5-32 assessed and collected on county tax values in the same manner as
5-33 provided by law with relation to county taxes on all taxable
5-34 property in the district subject to hospital district taxation.
5-35 The tax assessor-collector of the county in which the district is
5-36 situated shall be charged and required to accomplish the assessment
5-37 and collection of all taxes levied by and on behalf of the
5-38 district. The assessor-collector of taxes shall charge and deduct
5-39 from payments to the hospital district an amount as fees for
5-40 assessing and collecting the taxes at a rate of one percent of the
5-41 taxes assessed and one percent of the taxes collected, but in no
5-42 event shall the amount paid be more than $5,000 in one calendar
5-43 year. The fees shall be deposited in the officers salary fund of
5-44 the county and reported as fees of office of the county tax
5-45 assessor-collector. Interest and penalties on taxes paid to the
5-46 hospital district shall be the same as in the case of county
5-47 taxes. Discounts shall be the same as allowed by the county. The
5-48 residue of tax collections after deduction of discounts and fees
5-49 for assessing and collecting shall be deposited in the district's
5-50 depository. The board of directors shall have the authority to
5-51 levy the aforesaid tax for the entire year in which said district
5-52 is established as the result of the election. The bond of the
5-53 county tax assessor-collector shall stand as security for the
5-54 proper performance of his duties as assessor-collector of the
5-55 district, or, if in the judgment of the district board of directors
5-56 it is necessary, additional bond payable to the district may be
5-57 required. In all matters pertaining to the assessment, collection
5-58 and enforcement of taxes for the district, the county tax
5-59 assessor-collector shall be authorized to act in all respects
5-60 according to the laws of the State of Texas relating to State and
5-61 county taxes>.
5-62 (b) The taxes may be used to pay:
5-63 (1) the indebtedness issued or assumed by the
5-64 district; and
5-65 (2) the maintenance and operating expenses of the
5-66 district.
5-67 (c) The district may not impose taxes to pay the principal
5-68 of or interest on revenue bonds issued under this Act.
5-69 (d) The Tax Code governs the appraisal, assessment, and
5-70 collection of district taxes.
6-1 (e) The board of directors may provide for the appointment
6-2 of a tax assessor-collector for the district or may contract for
6-3 the assessment and collection of taxes as provided by the Tax Code.
6-4 SECTION 9. (a) The district shall hold an election for
6-5 directors on May 7, 1994. At that election, seven new directors
6-6 shall be elected. The directors elected at that election shall
6-7 draw lots to determine which three directors shall serve three-year
6-8 terms, which two directors shall serve two-year terms, and which
6-9 two directors shall serve one-year terms.
6-10 (b) The terms of the directors serving on the board
6-11 immediately before the date of the election expire when a majority
6-12 of the new directors take office.
6-13 SECTION 10. The importance of this legislation and the
6-14 crowded condition of the calendars in both houses create an
6-15 emergency and an imperative public necessity that the
6-16 constitutional rule requiring bills to be read on three several
6-17 days in each house be suspended, and this rule is hereby suspended,
6-18 and that this Act take effect and be in force from and after its
6-19 passage, and it is so enacted.
6-20 * * * * *
6-21 Austin,
6-22 Texas
6-23 May 20, 1993
6-24 Hon. Bob Bullock
6-25 President of the Senate
6-26 Sir:
6-27 We, your Committee on Intergovernmental Relations to which was
6-28 referred H.B. No. 2641, have had the same under consideration, and
6-29 I am instructed to report it back to the Senate with the
6-30 recommendation that it do pass and be printed.
6-31 Armbrister,
6-32 Chairman
6-33 * * * * *
6-34 WITNESSES
6-35 FOR AGAINST ON
6-36 ___________________________________________________________________
6-37 Name: Kelly McDonald x
6-38 Representing: Lynn County Hospital
6-39 City: Austin
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