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