By: Sibley S.B. No. 221
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation, administration, powers, duties,
1-2 operation, and financing of the West Community Hospital District;
1-3 authorizing a tax; granting the authority to issue bonds; and
1-4 granting the power of eminent domain.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1. GENERAL PROVISIONS
1-7 SECTION 1.01. DEFINITIONS. In this Act:
1-8 (1) "District" means the West Community Hospital
1-9 District.
1-10 (2) "Board" means the board of directors of the
1-11 district.
1-12 (3) "Director" means a member of the board.
1-13 SECTION 1.02. DISTRICT AUTHORIZATION. The West Community
1-14 Hospital District may be created and established and, if created,
1-15 must be maintained, operated, and financed in the manner provided
1-16 by Article IX, Section 9, of the Texas Constitution and by this
1-17 Act.
1-18 SECTION 1.03. BOUNDARIES. Except as provided by Section
1-19 3.07 of this Act, the boundaries of the district are coextensive
1-20 with the boundaries of the West Independent School District in
1-21 McLennan County and the boundaries of the Gholson Independent
1-22 School District in McLennan County. The district does not include
1-23 any portion of those districts located in Hill County.
1-24 ARTICLE 2. TEMPORARY DIRECTORS
2-1 SECTION 2.01. TEMPORARY DIRECTORS. On the effective date of
2-2 this Act, the following persons become temporary directors of the
2-3 district:
2-4 (1) David W. Pareya;
2-5 (2) Ray Holasek;
2-6 (3) Richard Griffin;
2-7 (4) Larry Lichnovsky;
2-8 (5) Freddie Kaluza;
2-9 (6) Martha Shaw;
2-10 (7) Phyllis Jackson;
2-11 (8) Dee Anne Reaves;
2-12 (9) Jose Eisma, M.D.;
2-13 (10) George Smith, D.O.;
2-14 (11) Charles Harsanyi;
2-15 (12) Helen Ballew;
2-16 (13) H. T. Sexton; and
2-17 (14) Tim Harrington.
2-18 SECTION 2.02. VACANCY IN OFFICE. The directors remaining
2-19 after a vacancy in the office of a temporary director shall fill
2-20 the vacancy by appointment by majority vote.
2-21 ARTICLE 3. CREATION OF DISTRICT
2-22 SECTION 3.01. CREATION ELECTIONS. The district may be
2-23 created and a tax may be authorized only if the creation and the
2-24 tax are approved by a majority of the qualified voters of the
2-25 territory of the proposed district voting at elections called and
2-26 held for that purpose.
2-27 SECTION 3.02. ORDERING ELECTION. (a) A majority of the
3-1 temporary directors of the district may order two creation
3-2 elections to be held as prescribed by Subsection (c) of this
3-3 section.
3-4 (b) On presentation of a petition for a creation election
3-5 signed by at least 50 of the registered voters of the territory of
3-6 the proposed district, according to the most recent official list
3-7 of registered voters, the temporary directors shall order two
3-8 creation elections to be held as prescribed by Subsection (c) of
3-9 this section. The elections shall be called not later than the
3-10 60th day after the date the petition is presented to the district.
3-11 (c) The election orders must call for an election to be held
3-12 in the territory within the West Independent School District
3-13 boundaries in McLennan County and a separate election to be held in
3-14 the territory within the Gholson Independent School District
3-15 boundaries in McLennan County. Both elections must be held on the
3-16 same date.
3-17 SECTION 3.03. ELECTION ORDER. The orders calling the
3-18 elections must state:
3-19 (1) the nature of the elections, including the
3-20 proposition that is to appear on each ballot;
3-21 (2) the date of the elections;
3-22 (3) the hours during which the polls will be open; and
3-23 (4) the location of the polling places.
3-24 SECTION 3.04. NOTICE. The temporary directors shall give
3-25 notice of the elections by publishing a substantial copy of the
3-26 election orders in a newspaper of general circulation in the
3-27 proposed district once a week for two consecutive weeks. The first
4-1 publication must appear at least 35 days before the date set for
4-2 the elections.
4-3 SECTION 3.05. ELECTION DATE. (a) The elections shall be
4-4 held not less than 45 days or more than 60 days after the date on
4-5 which the elections are ordered.
4-6 (b) Subsection (a), Section 41.001, Election Code, does not
4-7 apply to an election ordered under this article.
4-8 SECTION 3.06. BALLOT PROPOSITION. The ballot for the
4-9 elections shall be printed to permit voting for or against the
4-10 proposition: "The creation of the West Community Hospital District
4-11 and the levy of annual taxes for hospital purposes at a rate not to
4-12 exceed 40 cents on each $100 valuation of all taxable property in
4-13 the district."
4-14 SECTION 3.07. CANVASSING RETURNS. (a) Immediately after
4-15 the elections, the presiding judge of each polling place shall
4-16 deliver returns of the elections to the temporary directors, and
4-17 the temporary directors shall canvass the returns and declare the
4-18 results.
4-19 (b) If a majority of the votes cast at the elections in both
4-20 school districts favor creation of the district, the board shall
4-21 declare the district created and shall enter the results in its
4-22 minutes. If the election results are favorable in the territory
4-23 included in the West Independent School District, but not in the
4-24 territory included in the Gholson Independent School District, the
4-25 temporary directors shall set the boundaries of the district to
4-26 include only the territory included in the West Independent School
4-27 District. If a majority of the votes cast at each election or at
5-1 the election in the territory included in the West Independent
5-2 School District are against the creation of the district, the board
5-3 shall declare that the creation of the district was defeated and
5-4 shall enter the results in its minutes.
5-5 (c) If the creation of the district is defeated, the board
5-6 may call and hold additional creation elections, but another
5-7 creation election may not be called and held by the board within
5-8 six months after the date of the most recent creation election.
5-9 SECTION 3.08. EXPIRATION OF ACT. If the creation of the
5-10 district is not approved at an election held within 60 months after
5-11 the effective date of this Act, this Act expires.
5-12 ARTICLE 4. DISTRICT ADMINISTRATION
5-13 SECTION 4.01. BOARD OF DIRECTORS. (a) Except as provided
5-14 by Subsection (b) of this section, the district is governed by a
5-15 board of seven directors.
5-16 (b) If the temporary directors set the boundaries of the
5-17 district to include only the territory included in the West
5-18 Independent School District in accordance with Subsection (b) of
5-19 Section 3.07 of this Act, the district is governed by a board of
5-20 five directors.
5-21 (c) From the time the creation of the district is approved
5-22 until the elected directors take office, the temporary directors
5-23 serve as directors of the district.
5-24 SECTION 4.02. INITIAL DIRECTORS ELECTION. (a) Directors
5-25 shall be elected at an election to be held on the first Saturday in
5-26 May following the creation of the district.
5-27 (b) After the initial election of directors, the directors
6-1 shall draw lots to determine which three directors shall serve
6-2 one-year terms and which four directors shall serve two-year terms.
6-3 If the number of directors is reduced to five under Subsection (b)
6-4 of Section 4.01 of this Act, after the initial election of
6-5 directors, the directors shall draw lots to determine which two
6-6 directors shall serve one-year terms and which three directors
6-7 shall serve two-year terms.
6-8 SECTION 4.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF
6-9 OFFICE. (a) The temporary directors shall establish the five or
6-10 seven precincts, as appropriate, from which the directors are
6-11 elected. The precincts must be contiguous and substantially equal
6-12 in population, according to the most recent federal decennial
6-13 census.
6-14 (b) One director shall be elected from each precinct.
6-15 (c) After the initial election of directors, an election
6-16 shall be held on the first Saturday in May each year to elect the
6-17 appropriate number of successor directors.
6-18 (d) Except as provided by Subsection (b) of Section 4.02 of
6-19 this Act and Subsection (e) of this section, each director is
6-20 elected for a two-year term.
6-21 (e) The board shall revise each precinct after the
6-22 publication of each federal decennial census to reflect population
6-23 changes. At the first election after the precincts are revised, a
6-24 new director shall be elected from each precinct. The directors
6-25 shall draw lots to determine which two or three directors, as
6-26 appropriate, shall serve one-year terms and which three or four
6-27 directors, as appropriate, shall serve two-year terms.
7-1 SECTION 4.04. NOTICE OF ELECTION. At least 35 days before
7-2 the date of an election of directors, notice of the election shall
7-3 be published one time in a newspaper with general circulation in
7-4 the district.
7-5 SECTION 4.05. APPLICATION. (a) A person who wishes to have
7-6 the person's name printed on the ballot as a candidate for director
7-7 must file with the secretary of the board of directors an
7-8 application on a form provided by the district asking that the
7-9 person's name be placed on the ballot.
7-10 (b) The application must specify the precinct that the
7-11 candidate wishes to represent.
7-12 SECTION 4.06. QUALIFICATIONS FOR OFFICE. (a) To be
7-13 eligible to be a candidate for or to serve as a director, a person
7-14 must be:
7-15 (1) a resident of the district; and
7-16 (2) a qualified voter.
7-17 (b) In addition to the qualifications required by Subsection
7-18 (a) of this section, a person who is elected from a precinct or who
7-19 is appointed to fill a vacancy for a precinct must be a resident of
7-20 that precinct.
7-21 (c) An employee of the district may not serve as a director.
7-22 SECTION 4.07. BOND. (a) Before assuming the duties of the
7-23 office, each director must execute a bond for $5,000 payable to the
7-24 district, conditioned on the faithful performance of the person's
7-25 duties as director.
7-26 (b) The bond shall be kept in the permanent records of the
7-27 district.
8-1 (c) The director shall obtain the bond from an insurance
8-2 company authorized to do business in this state. The board shall
8-3 pay for the director's bond with district funds.
8-4 SECTION 4.08. BOARD VACANCY. (a) Except as provided by
8-5 Subsection (b) of this section, a vacancy in the office of director
8-6 shall be filled for the unexpired term by appointment by the
8-7 remaining directors. The person appointed must have the
8-8 qualifications prescribed by Section 4.06 of this Act.
8-9 (b) If the offices of five or more directors are vacant
8-10 simultaneously, the remaining directors shall call a special
8-11 election to fill the unexpired terms. Sections 3.03, 3.04, and
8-12 3.05 of this Act apply to an election called under this subsection.
8-13 SECTION 4.09. OFFICERS. The board shall elect from among
8-14 its members a president, a vice-president, and a treasurer. The
8-15 board shall also appoint a secretary. The secretary need not be a
8-16 director.
8-17 SECTION 4.10. OFFICERS' TERMS; VACANCY. (a) Each officer
8-18 of the board serves for a term of one year.
8-19 (b) The board shall fill a vacancy in a board office for the
8-20 unexpired term.
8-21 SECTION 4.11. COMPENSATION. Directors and officers serve
8-22 without compensation but may be reimbursed for actual expenses
8-23 incurred in the performance of official duties. Those expenses
8-24 must be reported in the district's minute book or other district
8-25 records and must be approved by the board.
8-26 SECTION 4.12. QUORUM; VOTING REQUIREMENT. (a) Except as
8-27 necessary to call a special election under Subsection (b) of
9-1 Section 4.08 of this Act, a majority of the membership of the board
9-2 constitutes a quorum for the transaction of business.
9-3 (b) A concurrence of a majority of the members of the board
9-4 voting is necessary in matters relating to the business of the
9-5 district.
9-6 SECTION 4.13. ADMINISTRATOR. (a) The board may appoint a
9-7 qualified person as administrator of the district.
9-8 (b) The administrator serves at the will of the board.
9-9 (c) The administrator is entitled to compensation as
9-10 determined by the board.
9-11 (d) Before assuming the duties of administrator, the person
9-12 appointed shall execute a bond payable to the hospital district in
9-13 the amount of not less than $5,000 as determined by the board,
9-14 conditioned on the faithful performance of duties under this Act.
9-15 The bond shall be kept in the permanent records of the district.
9-16 The administrator shall obtain the bond from an insurance company
9-17 authorized to do business in this state. The board may pay for the
9-18 bond with district funds.
9-19 SECTION 4.14. APPOINTMENTS TO STAFF. The board may appoint
9-20 to or remove from the staff any doctors as the board considers
9-21 necessary for the efficient operation of the district and may make
9-22 temporary appointments as considered necessary. The board may
9-23 adopt policies relating to the method of appointing and removing
9-24 staff members.
9-25 SECTION 4.15. TECHNICIANS, NURSES, AND OTHER DISTRICT
9-26 EMPLOYEES. (a) The district may employ technicians, nurses,
9-27 fiscal agents, accountants, architects, attorneys, and other
10-1 necessary employees.
10-2 (b) The board may delegate to the administrator the
10-3 authority to employ persons for the district.
10-4 SECTION 4.16. PROFESSIONAL PERSONNEL RECRUITMENT. The board
10-5 may employ innovative methods to recruit physicians, nurses,
10-6 technicians, and other professional personnel. The methods may
10-7 include scholarship programs, agreements for future services,
10-8 shared personnel, bonuses, and any other method the district
10-9 considers necessary.
10-10 SECTION 4.17. GENERAL DUTIES OF ADMINISTRATOR. The
10-11 administrator shall supervise the work and activities of the
10-12 district and shall direct the general affairs of the district,
10-13 subject to the limitations prescribed by the board.
10-14 SECTION 4.18. RETIREMENT BENEFITS. The board may provide
10-15 retirement benefits for employees of the district by establishing
10-16 or administering a retirement program or by electing to participate
10-17 in the Texas County and District Retirement System or in any other
10-18 statewide retirement system in which the district is eligible to
10-19 participate.
10-20 ARTICLE 5. POWERS AND DUTIES
10-21 SECTION 5.01. RESPONSIBILITY OF AND LIMITATION ON
10-22 GOVERNMENTAL ENTITY. (a) On creation of the district, West
10-23 Hospital Authority and McLennan County shall convey or transfer to
10-24 the district:
10-25 (1) title to land, buildings, improvements, and
10-26 equipment related to any hospital system located in the district
10-27 that is owned by the West Hospital Authority or McLennan County;
11-1 (2) operating funds and reserves for operating
11-2 expenses and funds that have been budgeted by the West Hospital
11-3 Authority or McLennan County to provide medical care for residents
11-4 of the district for the remainder of the fiscal year in which the
11-5 district is established;
11-6 (3) accounts receivable of the West Hospital Authority
11-7 or McLennan County for medical care provided for residents of the
11-8 district;
11-9 (4) taxes levied by McLennan County for hospital
11-10 purposes for residents of the district for the year in which the
11-11 district is created; and
11-12 (5) funds established for payment of indebtedness
11-13 assumed by the district.
11-14 (b) On or after creation of the West Community Hospital
11-15 District, another political entity may not levy taxes or issue
11-16 bonds or other obligations for hospital purposes or for providing
11-17 medical care for the residents of the district.
11-18 SECTION 5.02. DISTRICT RESPONSIBILITIES. (a) On creation
11-19 of the district, the district:
11-20 (1) assumes full responsibility for operating hospital
11-21 facilities and for furnishing medical and hospital care for the
11-22 district's needy inhabitants;
11-23 (2) assumes any outstanding indebtedness, including
11-24 bonded indebtedness, incurred by the West Community Hospital, the
11-25 West Hospital Authority, or McLennan County for hospital purposes
11-26 for residents of the district before the district's creation;
11-27 (3) may operate or provide for the operation of a
12-1 mobile emergency medical or air ambulance service; and
12-2 (4) may operate or provide for home-health services,
12-3 long-term care, skilled nursing care, intermediate nursing care,
12-4 hospital care, or any other reasonable or appropriate medical care
12-5 or medical services.
12-6 (b) The board has complete discretion as to the type and
12-7 extent of services the district will offer. The district may
12-8 provide any services the board finds necessary for hospital or
12-9 medical care, including necessary nurses or domiciliaries.
12-10 SECTION 5.03. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
12-11 board shall manage, control, and administer the hospital system and
12-12 the funds and resources of the district.
12-13 SECTION 5.04. DISTRICT RULES. The board may adopt rules
12-14 governing the operations of the hospital and hospital system and
12-15 the duties, functions, and responsibilities of district staff and
12-16 employees.
12-17 SECTION 5.05. METHODS AND PROCEDURES. (a) The board may
12-18 prescribe the method of making purchases and expenditures by and
12-19 for the district.
12-20 (b) The board may prescribe accounting and control
12-21 procedures for the district.
12-22 (c) The board may spend money to recruit physicians, nurses,
12-23 and other personnel, except as prohibited by law.
12-24 SECTION 5.06. HOSPITAL FACILITIES. (a) The board shall
12-25 determine the type, number, and location of buildings required to
12-26 establish and maintain an adequate hospital system and the type of
12-27 equipment necessary for hospital care.
13-1 (b) The district has complete discretion as to the type and
13-2 extent of services the district will offer. The district may
13-3 provide any facilities the board finds necessary for hospital or
13-4 medical care, including facilities for:
13-5 (1) domiciliary care, including geriatric domiciliary
13-6 care;
13-7 (2) outpatient clinics and minor emergency centers;
13-8 (3) dispensaries;
13-9 (4) convalescent homes;
13-10 (5) blood banks;
13-11 (6) community mental health centers;
13-12 (7) alcohol or chemical dependency centers;
13-13 (8) research centers;
13-14 (9) laboratories; or
13-15 (10) training centers.
13-16 (c) The board may acquire property, facilities, and
13-17 equipment for the district for use in the hospital system and may
13-18 mortgage or pledge the property, facilities, or equipment acquired
13-19 as security for the payment of the purchase price.
13-20 (d) The board may lease hospital facilities on behalf of the
13-21 district.
13-22 (e) The board may sell or otherwise dispose of property,
13-23 facilities, or equipment on behalf of the district at public or
13-24 private sale and at the price and terms the board considers most
13-25 advantageous. The board shall give notice of intent to sell land
13-26 or buildings by publishing a notice of intent in a newspaper with
13-27 general circulation in McLennan County, Texas, not later than the
14-1 30th day before the date of the sale.
14-2 (f) Subchapter D, Chapter 285, Health and Safety Code, does
14-3 not apply to the district.
14-4 SECTION 5.07. CONSTRUCTION CONTRACTS. (a) The board may
14-5 enter into construction contracts on behalf of the district.
14-6 However, the board may enter into construction contracts that
14-7 involve spending more than $10,000 only after competitive bidding
14-8 as provided by Subchapter B, Chapter 271, Local Government Code.
14-9 (b) Article 5160, Revised Statutes, as it relates to
14-10 performance and payment bonds, applies to construction contracts
14-11 let by the district.
14-12 SECTION 5.08. DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
14-13 The board may enter into operating or management contracts relating
14-14 to hospital facilities on behalf of the district.
14-15 SECTION 5.09. EMINENT DOMAIN. (a) The district may
14-16 exercise the power of eminent domain to acquire by condemnation a
14-17 fee simple or other interest in property located in the territory
14-18 of the district if the property interest is necessary to the
14-19 exercise of the rights or authority conferred by this Act.
14-20 (b) The district must exercise the power of eminent domain
14-21 in the manner provided by Chapter 21, Property Code, but the
14-22 district is not required to deposit in the trial court money or
14-23 bond as provided by Subsection (a), Section 21.021, Property Code.
14-24 (c) In a condemnation proceeding brought by the district,
14-25 the district is not required to pay in advance or give bond or
14-26 other security for costs in the trial court, to give bond for the
14-27 issuance of a temporary restraining order or a temporary
15-1 injunction, or to give bond for costs or supersedeas on an appeal
15-2 or writ of error.
15-3 SECTION 5.10. EXPENSES FOR MOVING FACILITIES OF RAILROADS
15-4 AND UTILITIES. In exercising the power of eminent domain, if the
15-5 board requires relocating, raising, lowering, rerouting, changing
15-6 the grade, or altering the construction of any railroad, highway,
15-7 pipeline, or electric transmission and electric distribution,
15-8 telegraph, or telephone lines, conduits, poles, or facilities, the
15-9 district must bear the actual cost of relocating, raising,
15-10 lowering, rerouting, changing the grade, or altering the
15-11 construction to provide comparable replacement without enhancement
15-12 of facilities, after deducting the net salvage value derived from
15-13 the old facility.
15-14 SECTION 5.11. INDIGENT CARE. (a) The district shall supply
15-15 care and treatment without charge to a patient who resides in the
15-16 district if the patient or relative who is legally responsible for
15-17 the patient's support cannot pay for the care and treatment, as
15-18 required by Article IX, Section 9, of the Texas Constitution. Care
15-19 and treatment provided under this subsection is limited to the
15-20 hospital inpatient and outpatient services that the hospital
15-21 regularly provides to other patients.
15-22 (b) The district may adopt, amend, or repeal policies or
15-23 rules relating to indigent health care, including policies or rules
15-24 relating to:
15-25 (1) eligibility of patients for indigent health care;
15-26 (2) application forms for patients or relatives of
15-27 patients requesting indigent health care that may require personal
16-1 and financial information to be furnished;
16-2 (3) procedures for obtaining and completing
16-3 applications for indigent health care and for filing the completed
16-4 applications with the district;
16-5 (4) procedures for reviewing applications to determine
16-6 eligibility for indigent health care; and
16-7 (5) other procedures under this section.
16-8 (c) The application procedure to determine eligibility for
16-9 indigent health care must be adopted not later than the beginning
16-10 of each operating year and must comply with Section 61.053, Health
16-11 and Safety Code.
16-12 (d) The administrator of the district may have an inquiry
16-13 made into the financial circumstances of any patient residing in
16-14 the district and admitted to a district facility and into the
16-15 financial circumstances of a relative of the patient who is legally
16-16 responsible for the patient's support.
16-17 (e) On finding that the patient or a relative of the patient
16-18 who is legally responsible for the patient's support can pay for
16-19 all or any part of the care and treatment provided by the district,
16-20 the administrator shall issue an order directing the patient or the
16-21 relative to pay the district each week a specified amount that the
16-22 individual is able to pay.
16-23 (f) The administrator may collect money owed to the district
16-24 from the estate of the patient or from that of a relative who was
16-25 legally responsible for the patient's support in the manner
16-26 provided by law for collection of expenses in the last illness of a
16-27 deceased person.
17-1 (g) If there is a dispute relating to an individual's
17-2 ability to pay, the board may call witnesses, issue subpoenas duces
17-3 tecum, administer oaths, hear and resolve the question, and issue a
17-4 final order. An appeal from a final order of the board must be
17-5 made to a district court in the county in which the district is
17-6 located and the substantial evidence rule applies.
17-7 SECTION 5.12. REIMBURSEMENT FOR SERVICES. (a) The board
17-8 shall require reimbursement from a county, city, or public hospital
17-9 located outside the boundaries of the district for the district's
17-10 care and treatment of a sick, a diseased, or an injured person of
17-11 that county, city, or public hospital as provided by Chapter 61,
17-12 Health and Safety Code.
17-13 (b) The board shall require reimbursement from the sheriff
17-14 of McLennan County for the district's care and treatment of a
17-15 person confined in a jail facility of McLennan County who is not a
17-16 resident of the district.
17-17 (c) The board may contract with state or federal government
17-18 for the state or federal government to reimburse the district for
17-19 treatment of a sick, a diseased, or an injured person.
17-20 SECTION 5.13. DISTRICT LIABILITY FOR SERVICES AND PAYMENTS.
17-21 (a) The maximum district liability for each district fiscal year
17-22 for all services to an eligible district resident in that year is
17-23 $5,000.
17-24 (b) The district liability for payment for a particular
17-25 mandatory medical service for an eligible district resident is
17-26 limited to the payment standard established under the AFDC-1
17-27 Medicaid program.
18-1 (c) The district liability under this section for hospital
18-2 inpatient and outpatient services is limited to the hospital
18-3 inpatient and outpatient services that the hospital regularly
18-4 provides to other patients.
18-5 (d) Subsections (b) and (c) of this section do not apply if
18-6 the district contracts with the provider for the services and the
18-7 provider certifies that the provider will comply with Subsections
18-8 (b) and (c) for each service rendered.
18-9 SECTION 5.14. SERVICE CONTRACTS. The board may contract
18-10 with a city, county, special district, or other political
18-11 subdivision of the state or federal agency for the district to
18-12 furnish a mobile emergency medical or air ambulance service or to
18-13 provide for the investigatory or welfare needs of inhabitants of
18-14 the district.
18-15 SECTION 5.15. GIFTS AND ENDOWMENTS. On behalf of the
18-16 district, the board may accept gifts and endowments to be held in
18-17 trust for any purpose and under any direction, limitation, or
18-18 provision prescribed in writing by the donor that is consistent
18-19 with the proper management of the district.
18-20 SECTION 5.16. AUTHORITY TO SUE AND BE SUED. The board may
18-21 sue and be sued on behalf of the district.
18-22 ARTICLE 6. DISTRICT FINANCES
18-23 SECTION 6.01. FISCAL YEAR. (a) The district operates on
18-24 the fiscal year established by the board.
18-25 (b) The fiscal year may not be changed when revenue bonds of
18-26 the district are outstanding or more than once in a 24-month
18-27 period.
19-1 SECTION 6.02. ANNUAL AUDIT. Annually, the board shall have
19-2 an audit made of the financial condition of the district.
19-3 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit
19-4 and other district records are open to inspection during regular
19-5 business hours at the principal office of the district.
19-6 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the
19-7 district shall prepare a proposed annual budget for the district.
19-8 (b) The proposed budget must contain a complete financial
19-9 statement, including a statement of:
19-10 (1) the outstanding obligations of the district;
19-11 (2) the amount of cash on hand to the credit of each
19-12 fund of the district;
19-13 (3) the amount of money received by the district from
19-14 all sources during the previous year;
19-15 (4) the amount of money available to the district from
19-16 all sources during the ensuing year;
19-17 (5) the amount of the balances expected at the end of
19-18 the year in which the budget is being prepared;
19-19 (6) the estimated amount of revenues and balances
19-20 available to cover the proposed budget; and
19-21 (7) the estimated tax rate that will be required.
19-22 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
19-23 board shall hold a public hearing on the proposed annual budget.
19-24 (b) The board shall publish notice of the hearing in a
19-25 newspaper of general circulation in the district not later than the
19-26 10th day before the date of the hearing.
19-27 (c) Any resident of the district is entitled to be present
20-1 and participate at the hearing.
20-2 (d) At the conclusion of the hearing, the board shall adopt
20-3 a budget by acting on the budget proposed by the administrator.
20-4 The board may make any changes in the proposed budget that in its
20-5 judgment the interests of the taxpayers demand.
20-6 (e) The budget is effective only after adoption by the
20-7 board.
20-8 SECTION 6.06. AMENDING BUDGET. After adoption, the annual
20-9 budget may be amended on the board's approval.
20-10 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be
20-11 spent for an expense not included in the annual budget or an
20-12 amendment to it.
20-13 SECTION 6.08. SWORN STATEMENT. As soon as practicable after
20-14 the close of the fiscal year, the administrator shall prepare for
20-15 the board a sworn statement of the amount of money that belongs to
20-16 the district and an account of the disbursements of that money.
20-17 SECTION 6.09. SPENDING AND INVESTMENTS LIMITATIONS.
20-18 (a) Except as provided by Subsection (a) of Section 5.07 and
20-19 Sections 6.10, 7.01, 7.04, and 7.05 of this Act, the district may
20-20 not incur a debt payable from revenues of the district other than
20-21 the revenues on hand or to be on hand in the current and
20-22 immediately following fiscal years of the district.
20-23 (b) The board may invest operating, depreciation, or
20-24 building reserves only in funds or securities specified by Article
20-25 836 or 837, Revised Statutes.
20-26 SECTION 6.10. BORROWING MONEY. The district may borrow
20-27 money to pay its operating expenses in an amount not to exceed the
21-1 amount of tax revenue that the district expects to receive during
21-2 the 12-month period following the date on which the money is
21-3 borrowed. The district may pledge all or any part of those tax
21-4 revenues to the payment of the amounts borrowed.
21-5 SECTION 6.11. DEPOSITORY. (a) The board shall name at
21-6 least one bank to serve as depository for district funds.
21-7 (b) District funds, other than those invested as provided by
21-8 Subsection (b) of Section 6.09 of this Act and those transmitted to
21-9 a bank for payment of bonds or obligations issued or assumed by the
21-10 district, shall be deposited as received with the depository bank
21-11 and must remain on deposit. This subsection does not limit the
21-12 power of the board to place a portion of district funds on time
21-13 deposit or to purchase certificates of deposit.
21-14 (c) Before the district deposits funds in a bank in an
21-15 amount that exceeds the maximum amount secured by the Federal
21-16 Deposit Insurance Corporation, the bank must execute a bond or
21-17 other security in an amount sufficient to secure from loss the
21-18 district funds that exceed the amount secured by the Federal
21-19 Deposit Insurance Corporation.
21-20 ARTICLE 7. BONDS
21-21 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue
21-22 and sell bonds authorized by an election in the name and on the
21-23 faith and credit of the hospital district to:
21-24 (1) purchase, construct, acquire, repair, or renovate
21-25 buildings or improvements;
21-26 (2) equip buildings or improvements for hospital
21-27 purposes; or
22-1 (3) acquire and operate a mobile emergency medical or
22-2 air ambulance service.
22-3 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the
22-4 bonds are issued by the district, the board shall levy a tax.
22-5 (b) The tax must be sufficient to create an interest and
22-6 sinking fund to pay the principal of and interest on the bonds as
22-7 they mature.
22-8 (c) In any year, the tax together with any other tax the
22-9 district levies may not exceed the limit approved by the voters at
22-10 the election authorizing the levy of taxes.
22-11 SECTION 7.03. BOND ELECTION. (a) The district may issue
22-12 general obligation bonds only if the bonds are authorized by a
22-13 majority of the qualified voters of the district voting at an
22-14 election called and held for that purpose.
22-15 (b) The board may order a bond election. The order calling
22-16 the election must state the nature and date of the election, the
22-17 hours during which the polls will be open, the location of the
22-18 polling places, the amounts of bonds to be authorized, and the
22-19 maximum maturity of the bonds.
22-20 (c) Notice of a bond election shall be given as provided by
22-21 Article 704, Revised Statutes.
22-22 (d) The board shall canvass the returns and declare the
22-23 results of the election.
22-24 SECTION 7.04. REVENUE BONDS. (a) The board may issue bonds
22-25 to:
22-26 (1) purchase, construct, acquire, repair, equip, or
22-27 renovate buildings or improvements for hospital purposes, including
23-1 the purposes provided by Section 5.06 of this Act;
23-2 (2) acquire sites to be used for hospital purposes; or
23-3 (3) acquire and operate a mobile emergency medical or
23-4 air ambulance service to assist the district in carrying out its
23-5 hospital purpose.
23-6 (b) The bonds must be payable from and secured by a pledge
23-7 of all or part of the revenues derived from the operation of the
23-8 district's hospital system. The bonds may be additionally secured
23-9 by a mortgage or deed of trust lien on all or part of district
23-10 property.
23-11 (c) The bonds must be issued in the manner provided by
23-12 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
23-13 Health and Safety Code, for issuance of revenue bonds by county
23-14 hospital authorities.
23-15 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the
23-16 district may be issued to refund and pay off any outstanding
23-17 indebtedness the district has issued or assumed.
23-18 (b) The bonds must be issued in the manner provided by
23-19 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
23-20 (Article 717k-3, Vernon's Texas Civil Statutes).
23-21 (c) The refunding bonds may be sold and the proceeds applied
23-22 to the payment of outstanding indebtedness or may be exchanged in
23-23 whole or in part for not less than a similar principal amount of
23-24 outstanding indebtedness. If the refunding bonds are to be sold
23-25 and the proceeds applied to the payment of outstanding
23-26 indebtedness, the refunding bonds must be issued and payments made
23-27 in the manner provided by Chapter 503, Acts of the 54th
24-1 Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes).
24-2 SECTION 7.06. INTEREST AND MATURITY. District bonds must
24-3 mature not more than 50 years after the date of their issuance and
24-4 must bear interest at a rate not to exceed that provided by Chapter
24-5 3, Acts of the 61st Legislature, Regular Session, 1969 (Article
24-6 717k-2, Vernon's Texas Civil Statutes).
24-7 SECTION 7.07. EXECUTION OF BONDS. The president of the
24-8 board shall execute the bonds in the name of the district, and the
24-9 secretary of the board shall countersign the bonds in the manner
24-10 provided by the Texas Uniform Facsimile Signature of Public
24-11 Officials Act (Article 717j-1, Vernon's Texas Civil Statutes).
24-12 SECTION 7.08. APPROVAL AND REGISTRATION OF BONDS.
24-13 (a) District bonds are subject to the same requirements with
24-14 regard to approval by the attorney general and registration by the
24-15 comptroller of public accounts as the law provides for approval and
24-16 registration of bonds issued by counties.
24-17 (b) On approval by the attorney general and registration by
24-18 the comptroller of public accounts, the bonds are incontestable for
24-19 any cause.
24-20 SECTION 7.09. BONDS AS INVESTMENTS. District bonds and
24-21 indebtedness assumed by the district are legal and authorized
24-22 investments for:
24-23 (1) banks;
24-24 (2) savings banks;
24-25 (3) trust companies;
24-26 (4) savings and loan associations;
24-27 (5) insurance companies;
25-1 (6) fiduciaries;
25-2 (7) trustees;
25-3 (8) guardians; and
25-4 (9) sinking funds of cities, counties, school
25-5 districts, and other political subdivisions of the state and other
25-6 public funds of the state and its agencies, including the permanent
25-7 school fund.
25-8 SECTION 7.10. BONDS AS SECURITY FOR DEPOSITS. District
25-9 bonds are eligible to secure deposits of public funds of the state
25-10 and of cities, counties, school districts, and other political
25-11 subdivisions of the state. The bonds are lawful and sufficient
25-12 security for deposits to the extent of their value if accompanied
25-13 by all unmatured coupons.
25-14 SECTION 7.11. TAX STATUS OF BONDS. Since the district
25-15 created under this Act is a public entity performing an essential
25-16 public function, bonds issued by the district, any transaction
25-17 relating to the bonds, and profits made in the sale of the bonds
25-18 are free from taxation by the state or by any city, county, special
25-19 district, or other political subdivision of the state.
25-20 ARTICLE 8. TAXES
25-21 SECTION 8.01. LEVY OF TAXES. (a) The board may annually
25-22 levy taxes in an amount not to exceed the limit approved by the
25-23 voters at the election authorizing the levy of taxes.
25-24 (b) The tax rate for all purposes may not exceed 40 cents on
25-25 each $100 valuation of all taxable property in the district.
25-26 (c) The taxes may be used to pay:
25-27 (1) the indebtedness issued or assumed by the
26-1 district; and
26-2 (2) the maintenance and operating expenses of the
26-3 district.
26-4 (d) The district may not levy taxes to pay the principal of
26-5 or interest on revenue bonds issued under this Act.
26-6 SECTION 8.02. BOARD AUTHORITY. (a) The board may levy
26-7 taxes for the entire year in which the district is created.
26-8 (b) The board shall levy taxes on all property in the
26-9 district subject to hospital district taxation.
26-10 SECTION 8.03. SETTING OF TAX RATE. In setting the tax rate,
26-11 the board shall take into consideration the income of the district
26-12 from sources other than taxation. On determination of the amount
26-13 of tax required to be levied, the board shall make the levy and
26-14 certify it to the tax assessor-collector.
26-15 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) The Tax
26-16 Code governs the appraisal, assessment, and collection of district
26-17 taxes.
26-18 (b) The board may provide for the appointment of a tax
26-19 assessor-collector for the district or may contract for the
26-20 assessment and collection of taxes as provided by the Tax Code.
26-21 ARTICLE 9. DISSOLUTION OF DISTRICT
26-22 SECTION 9.01. DISSOLUTION ELECTION. The district may be
26-23 dissolved and its assets and liabilities sold or transferred to
26-24 another entity or person only if the dissolution and transfer are
26-25 approved by a majority of the qualified voters of the territory of
26-26 the district voting at an election called and held for that
26-27 purpose.
27-1 SECTION 9.02. ORDERING ELECTION. (a) A majority of the
27-2 directors may order an election to be held on the question of
27-3 dissolution of the district and the transfer of its assets and
27-4 liabilities.
27-5 (b) On presentation of a petition for a dissolution election
27-6 signed by at least 300 of the registered voters of the territory of
27-7 the district, according to the most recent official list of
27-8 registered voters, the directors shall order an election to be held
27-9 on the question of dissolution of the district and transfer of its
27-10 assets. The election shall be called not later than the 60th day
27-11 after the date the petition is presented to the district.
27-12 SECTION 9.03. ELECTION ORDER. The order calling the
27-13 election must state:
27-14 (1) the nature of the election, including the
27-15 proposition that is to appear on the ballot;
27-16 (2) the date of the election;
27-17 (3) the hours during which the polls will be open; and
27-18 (4) the location of the polling places.
27-19 SECTION 9.04. NOTICE. The directors shall give notice of
27-20 the election by publishing a substantial copy of the election order
27-21 in a newspaper with general circulation in the district once a week
27-22 for two consecutive weeks. The first publication must appear at
27-23 least 35 days before the date set for election.
27-24 SECTION 9.05. ELECTION DATE. (a) The election shall be
27-25 held not less than 45 days after the date on which the election is
27-26 ordered.
27-27 (b) Subsection (a), Section 41.001, Election Code, does not
28-1 apply to an election ordered under this article.
28-2 SECTION 9.06. BALLOT PROPOSITION. The ballot for an
28-3 election at which the dissolution of the district is proposed shall
28-4 be printed to permit voting for or against the proposition: "The
28-5 dissolution of the West Community Hospital District and the
28-6 transfer of its assets and liabilities in the following manner:
28-7 ________________________ (insert provisions for transfer)."
28-8 SECTION 9.07. CANVASSING RETURNS. (a) The directors shall
28-9 canvass the returns of the election.
28-10 (b) If the directors find that the election results are
28-11 favorable to the proposition to dissolve the district and transfer
28-12 its assets and liabilities, they shall issue an order declaring the
28-13 district dissolved and shall proceed with the sale or transfer of
28-14 its assets and liabilities according to the plan proposed on the
28-15 ballot.
28-16 (c) If the directors find that the election results are not
28-17 favorable to the proposition to dissolve the district and transfer
28-18 its assets and liabilities, another dissolution election may not be
28-19 held before the first anniversary of the date of the election at
28-20 which voters disapproved the proposition.
28-21 SECTION 9.08. TRANSFER OF ASSETS. (a) Notwithstanding any
28-22 other provision of this article, the district may not be dissolved
28-23 unless the board provides for the sale or transfer of the
28-24 district's assets and liabilities to another entity or person. The
28-25 dissolution of the district and the sale or transfer of the
28-26 district's assets and liabilities may not contravene a trust
28-27 indenture or bond resolution relating to the outstanding bonds of
29-1 the district. In addition, the dissolution and sale or transfer
29-2 may not diminish or impair the rights of the holders of any
29-3 outstanding bonds, warrants, or other obligations of the district.
29-4 (b) The sale or transfer of the district's assets and
29-5 liabilities must satisfy the debt and bond obligations of the
29-6 district in a manner that protects the interests of the residents
29-7 of the district, including their collective property rights in the
29-8 district's assets. Any grant from federal funds is considered an
29-9 obligation to be repaid in satisfaction. The district may not
29-10 transfer or dispose of the district's assets except for due
29-11 compensation unless the transfer is made to another governmental
29-12 agency embracing the district and using the transferred assets for
29-13 the benefit of residents formerly in the district.
29-14 ARTICLE 10. MISCELLANEOUS
29-15 SECTION 10.01. LIMITATION ON STATE ASSISTANCE. The state
29-16 may not become obligated for the support or maintenance of a
29-17 hospital district created under this Act, nor may the legislature
29-18 make a direct appropriation for the construction, maintenance, or
29-19 improvement of a facility of the district.
29-20 SECTION 10.02. EMERGENCY. The importance of this
29-21 legislation and the crowded condition of the calendars in both
29-22 houses create an emergency and an imperative public necessity that
29-23 the constitutional rule requiring bills to be read on three several
29-24 days in each house be suspended, and this rule is hereby suspended,
29-25 and that this Act take effect and be in force from and after its
29-26 passage, and it is so enacted.