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.