1-1 By: Sibley S.B. No. 221
1-2 (In the Senate - Filed February 1, 1993; February 2, 1993,
1-3 read first time and referred to Committee on Intergovernmental
1-4 Relations; February 10, 1993, reported favorably, as amended, by
1-5 the following vote: Yeas 10, Nays 0; February 10, 1993, sent to
1-6 printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Armbrister x
1-10 Leedom x
1-11 Carriker x
1-12 Henderson x
1-13 Madla x
1-14 Moncrief x
1-15 Patterson x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 Whitmire x
1-20 COMMITTEE AMENDMENT NO. 1 By: Madla
1-21 Amend S.B. No. 221 in Section 5.07, on Page 7, between lines
1-22 8 and 9, by adding Subsections (c), (d), (e), and (f) to read as
1-23 follows:
1-24 (c) For each type of service rendered under a contract or
1-25 subcontract, the district or the general contractor shall award to
1-26 historically underutilized businesses a number of contracts, the
1-27 dollar value of which equals the percentage that historically
1-28 underutilized businesses comprise of the total number of businesses
1-29 offering the service.
1-30 (d) The businesses that constitute historically
1-31 underutilized businesses shall be determined by the General
1-32 Services Commission.
1-33 (e) Under the goal set by this Subsection (c) of this
1-34 section, the agency and general contractor shall give preference,
1-35 among bids or other proposals that are otherwise comparable, to a
1-36 bid or other proposal by a historically underutilized business
1-37 having its home office located in this state.
1-38 (f) For purposes of Subsection (c) of this section,
1-39 "historically underutilized business" means:
1-40 (1) a corporation formed for the purpose of making a
1-41 profit in which at least 51 percent of all classes of the shares of
1-42 stock or other equitable securities are owned by one or more
1-43 persons who have been historically underutilized because of their
1-44 identification as members of certain groups, including
1-45 African-Americans, Hispanic-Americans, Asian Pacific Americans,
1-46 Native Americans, and women, who have suffered the effects of
1-47 discriminatory practices or similar insidious circumstances over
1-48 which they have no control;
1-49 (2) a sole proprietorship established for the purpose
1-50 of making a profit that is 100 percent owned, operated, and
1-51 controlled by a person described by Subdivision (1) of this
1-52 subsection;
1-53 (3) a partnership established for the purpose of
1-54 making a profit in which 51 percent of the assets and interest in
1-55 the partnership is owned by one or more persons described by
1-56 Subdivision (1) of this subsection and those persons have a
1-57 proportionate interest in the management, operation, and control of
1-58 the partnership; or
1-59 (4) a joint venture in which each participant is a
1-60 business described by Subdivision (1), (2), or (3) of this
1-61 subsection.
1-62 A BILL TO BE ENTITLED
1-63 AN ACT
1-64 relating to the creation, administration, powers, duties,
1-65 operation, and financing of the West Community Hospital District;
1-66 authorizing a tax; granting the authority to issue bonds; and
1-67 granting the power of eminent domain.
1-68 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
2-1 ARTICLE 1. GENERAL PROVISIONS
2-2 SECTION 1.01. DEFINITIONS. In this Act:
2-3 (1) "District" means the West Community Hospital
2-4 District.
2-5 (2) "Board" means the board of directors of the
2-6 district.
2-7 (3) "Director" means a member of the board.
2-8 SECTION 1.02. DISTRICT AUTHORIZATION. The West Community
2-9 Hospital District may be created and established and, if created,
2-10 must be maintained, operated, and financed in the manner provided
2-11 by Article IX, Section 9, of the Texas Constitution and by this
2-12 Act.
2-13 SECTION 1.03. BOUNDARIES. Except as provided by Section
2-14 3.07 of this Act, the boundaries of the district are coextensive
2-15 with the boundaries of the West Independent School District in
2-16 McLennan County and the boundaries of the Gholson Independent
2-17 School District in McLennan County. The district does not include
2-18 any portion of those districts located in Hill County.
2-19 ARTICLE 2. TEMPORARY DIRECTORS
2-20 SECTION 2.01. TEMPORARY DIRECTORS. On the effective date of
2-21 this Act, the following persons become temporary directors of the
2-22 district:
2-23 (1) David W. Pareya;
2-24 (2) Ray Holasek;
2-25 (3) Richard Griffin;
2-26 (4) Larry Lichnovsky;
2-27 (5) Freddie Kaluza;
2-28 (6) Martha Shaw;
2-29 (7) Phyllis Jackson;
2-30 (8) Dee Anne Reaves;
2-31 (9) Jose Eisma, M.D.;
2-32 (10) George Smith, D.O.;
2-33 (11) Charles Harsanyi;
2-34 (12) Helen Ballew;
2-35 (13) H. T. Sexton; and
2-36 (14) Tim Harrington.
2-37 SECTION 2.02. VACANCY IN OFFICE. The directors remaining
2-38 after a vacancy in the office of a temporary director shall fill
2-39 the vacancy by appointment by majority vote.
2-40 ARTICLE 3. CREATION OF DISTRICT
2-41 SECTION 3.01. CREATION ELECTIONS. The district may be
2-42 created and a tax may be authorized only if the creation and the
2-43 tax are approved by a majority of the qualified voters of the
2-44 territory of the proposed district voting at elections called and
2-45 held for that purpose.
2-46 SECTION 3.02. ORDERING ELECTION. (a) A majority of the
2-47 temporary directors of the district may order two creation
2-48 elections to be held as prescribed by Subsection (c) of this
2-49 section.
2-50 (b) On presentation of a petition for a creation election
2-51 signed by at least 50 of the registered voters of the territory of
2-52 the proposed district, according to the most recent official list
2-53 of registered voters, the temporary directors shall order two
2-54 creation elections to be held as prescribed by Subsection (c) of
2-55 this section. The elections shall be called not later than the
2-56 60th day after the date the petition is presented to the district.
2-57 (c) The election orders must call for an election to be held
2-58 in the territory within the West Independent School District
2-59 boundaries in McLennan County and a separate election to be held in
2-60 the territory within the Gholson Independent School District
2-61 boundaries in McLennan County. Both elections must be held on the
2-62 same date.
2-63 SECTION 3.03. ELECTION ORDER. The orders calling the
2-64 elections must state:
2-65 (1) the nature of the elections, including the
2-66 proposition that is to appear on each ballot;
2-67 (2) the date of the elections;
2-68 (3) the hours during which the polls will be open; and
2-69 (4) the location of the polling places.
2-70 SECTION 3.04. NOTICE. The temporary directors shall give
3-1 notice of the elections by publishing a substantial copy of the
3-2 election orders in a newspaper of general circulation in the
3-3 proposed district once a week for two consecutive weeks. The first
3-4 publication must appear at least 35 days before the date set for
3-5 the elections.
3-6 SECTION 3.05. ELECTION DATE. (a) The elections shall be
3-7 held not less than 45 days or more than 60 days after the date on
3-8 which the elections are ordered.
3-9 (b) Subsection (a), Section 41.001, Election Code, does not
3-10 apply to an election ordered under this article.
3-11 SECTION 3.06. BALLOT PROPOSITION. The ballot for the
3-12 elections shall be printed to permit voting for or against the
3-13 proposition: "The creation of the West Community Hospital District
3-14 and the levy of annual taxes for hospital purposes at a rate not to
3-15 exceed 40 cents on each $100 valuation of all taxable property in
3-16 the district."
3-17 SECTION 3.07. CANVASSING RETURNS. (a) Immediately after
3-18 the elections, the presiding judge of each polling place shall
3-19 deliver returns of the elections to the temporary directors, and
3-20 the temporary directors shall canvass the returns and declare the
3-21 results.
3-22 (b) If a majority of the votes cast at the elections in both
3-23 school districts favor creation of the district, the board shall
3-24 declare the district created and shall enter the results in its
3-25 minutes. If the election results are favorable in the territory
3-26 included in the West Independent School District, but not in the
3-27 territory included in the Gholson Independent School District, the
3-28 temporary directors shall set the boundaries of the district to
3-29 include only the territory included in the West Independent School
3-30 District. If a majority of the votes cast at each election or at
3-31 the election in the territory included in the West Independent
3-32 School District are against the creation of the district, the board
3-33 shall declare that the creation of the district was defeated and
3-34 shall enter the results in its minutes.
3-35 (c) If the creation of the district is defeated, the board
3-36 may call and hold additional creation elections, but another
3-37 creation election may not be called and held by the board within
3-38 six months after the date of the most recent creation election.
3-39 SECTION 3.08. EXPIRATION OF ACT. If the creation of the
3-40 district is not approved at an election held within 60 months after
3-41 the effective date of this Act, this Act expires.
3-42 ARTICLE 4. DISTRICT ADMINISTRATION
3-43 SECTION 4.01. BOARD OF DIRECTORS. (a) Except as provided
3-44 by Subsection (b) of this section, the district is governed by a
3-45 board of seven directors.
3-46 (b) If the temporary directors set the boundaries of the
3-47 district to include only the territory included in the West
3-48 Independent School District in accordance with Subsection (b) of
3-49 Section 3.07 of this Act, the district is governed by a board of
3-50 five directors.
3-51 (c) From the time the creation of the district is approved
3-52 until the elected directors take office, the temporary directors
3-53 serve as directors of the district.
3-54 SECTION 4.02. INITIAL DIRECTORS ELECTION. (a) Directors
3-55 shall be elected at an election to be held on the first Saturday in
3-56 May following the creation of the district.
3-57 (b) After the initial election of directors, the directors
3-58 shall draw lots to determine which three directors shall serve
3-59 one-year terms and which four directors shall serve two-year terms.
3-60 If the number of directors is reduced to five under Subsection (b)
3-61 of Section 4.01 of this Act, after the initial election of
3-62 directors, the directors shall draw lots to determine which two
3-63 directors shall serve one-year terms and which three directors
3-64 shall serve two-year terms.
3-65 SECTION 4.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF
3-66 OFFICE. (a) The temporary directors shall establish the five or
3-67 seven precincts, as appropriate, from which the directors are
3-68 elected. The precincts must be contiguous and substantially equal
3-69 in population, according to the most recent federal decennial
3-70 census.
4-1 (b) One director shall be elected from each precinct.
4-2 (c) After the initial election of directors, an election
4-3 shall be held on the first Saturday in May each year to elect the
4-4 appropriate number of successor directors.
4-5 (d) Except as provided by Subsection (b) of Section 4.02 of
4-6 this Act and Subsection (e) of this section, each director is
4-7 elected for a two-year term.
4-8 (e) The board shall revise each precinct after the
4-9 publication of each federal decennial census to reflect population
4-10 changes. At the first election after the precincts are revised, a
4-11 new director shall be elected from each precinct. The directors
4-12 shall draw lots to determine which two or three directors, as
4-13 appropriate, shall serve one-year terms and which three or four
4-14 directors, as appropriate, shall serve two-year terms.
4-15 SECTION 4.04. NOTICE OF ELECTION. At least 35 days before
4-16 the date of an election of directors, notice of the election shall
4-17 be published one time in a newspaper with general circulation in
4-18 the district.
4-19 SECTION 4.05. APPLICATION. (a) A person who wishes to have
4-20 the person's name printed on the ballot as a candidate for director
4-21 must file with the secretary of the board of directors an
4-22 application on a form provided by the district asking that the
4-23 person's name be placed on the ballot.
4-24 (b) The application must specify the precinct that the
4-25 candidate wishes to represent.
4-26 SECTION 4.06. QUALIFICATIONS FOR OFFICE. (a) To be
4-27 eligible to be a candidate for or to serve as a director, a person
4-28 must be:
4-29 (1) a resident of the district; and
4-30 (2) a qualified voter.
4-31 (b) In addition to the qualifications required by Subsection
4-32 (a) of this section, a person who is elected from a precinct or who
4-33 is appointed to fill a vacancy for a precinct must be a resident of
4-34 that precinct.
4-35 (c) An employee of the district may not serve as a director.
4-36 SECTION 4.07. BOND. (a) Before assuming the duties of the
4-37 office, each director must execute a bond for $5,000 payable to the
4-38 district, conditioned on the faithful performance of the person's
4-39 duties as director.
4-40 (b) The bond shall be kept in the permanent records of the
4-41 district.
4-42 (c) The director shall obtain the bond from an insurance
4-43 company authorized to do business in this state. The board shall
4-44 pay for the director's bond with district funds.
4-45 SECTION 4.08. BOARD VACANCY. (a) Except as provided by
4-46 Subsection (b) of this section, a vacancy in the office of director
4-47 shall be filled for the unexpired term by appointment by the
4-48 remaining directors. The person appointed must have the
4-49 qualifications prescribed by Section 4.06 of this Act.
4-50 (b) If the offices of five or more directors are vacant
4-51 simultaneously, the remaining directors shall call a special
4-52 election to fill the unexpired terms. Sections 3.03, 3.04, and
4-53 3.05 of this Act apply to an election called under this subsection.
4-54 SECTION 4.09. OFFICERS. The board shall elect from among
4-55 its members a president, a vice-president, and a treasurer. The
4-56 board shall also appoint a secretary. The secretary need not be a
4-57 director.
4-58 SECTION 4.10. OFFICERS' TERMS; VACANCY. (a) Each officer
4-59 of the board serves for a term of one year.
4-60 (b) The board shall fill a vacancy in a board office for the
4-61 unexpired term.
4-62 SECTION 4.11. COMPENSATION. Directors and officers serve
4-63 without compensation but may be reimbursed for actual expenses
4-64 incurred in the performance of official duties. Those expenses
4-65 must be reported in the district's minute book or other district
4-66 records and must be approved by the board.
4-67 SECTION 4.12. QUORUM; VOTING REQUIREMENT. (a) Except as
4-68 necessary to call a special election under Subsection (b) of
4-69 Section 4.08 of this Act, a majority of the membership of the board
4-70 constitutes a quorum for the transaction of business.
5-1 (b) A concurrence of a majority of the members of the board
5-2 voting is necessary in matters relating to the business of the
5-3 district.
5-4 SECTION 4.13. ADMINISTRATOR. (a) The board may appoint a
5-5 qualified person as administrator of the district.
5-6 (b) The administrator serves at the will of the board.
5-7 (c) The administrator is entitled to compensation as
5-8 determined by the board.
5-9 (d) Before assuming the duties of administrator, the person
5-10 appointed shall execute a bond payable to the hospital district in
5-11 the amount of not less than $5,000 as determined by the board,
5-12 conditioned on the faithful performance of duties under this Act.
5-13 The bond shall be kept in the permanent records of the district.
5-14 The administrator shall obtain the bond from an insurance company
5-15 authorized to do business in this state. The board may pay for the
5-16 bond with district funds.
5-17 SECTION 4.14. APPOINTMENTS TO STAFF. The board may appoint
5-18 to or remove from the staff any doctors as the board considers
5-19 necessary for the efficient operation of the district and may make
5-20 temporary appointments as considered necessary. The board may
5-21 adopt policies relating to the method of appointing and removing
5-22 staff members.
5-23 SECTION 4.15. TECHNICIANS, NURSES, AND OTHER DISTRICT
5-24 EMPLOYEES. (a) The district may employ technicians, nurses,
5-25 fiscal agents, accountants, architects, attorneys, and other
5-26 necessary employees.
5-27 (b) The board may delegate to the administrator the
5-28 authority to employ persons for the district.
5-29 SECTION 4.16. PROFESSIONAL PERSONNEL RECRUITMENT. The board
5-30 may employ innovative methods to recruit physicians, nurses,
5-31 technicians, and other professional personnel. The methods may
5-32 include scholarship programs, agreements for future services,
5-33 shared personnel, bonuses, and any other method the district
5-34 considers necessary.
5-35 SECTION 4.17. GENERAL DUTIES OF ADMINISTRATOR. The
5-36 administrator shall supervise the work and activities of the
5-37 district and shall direct the general affairs of the district,
5-38 subject to the limitations prescribed by the board.
5-39 SECTION 4.18. RETIREMENT BENEFITS. The board may provide
5-40 retirement benefits for employees of the district by establishing
5-41 or administering a retirement program or by electing to participate
5-42 in the Texas County and District Retirement System or in any other
5-43 statewide retirement system in which the district is eligible to
5-44 participate.
5-45 ARTICLE 5. POWERS AND DUTIES
5-46 SECTION 5.01. RESPONSIBILITY OF AND LIMITATION ON
5-47 GOVERNMENTAL ENTITY. (a) On creation of the district, West
5-48 Hospital Authority and McLennan County shall convey or transfer to
5-49 the district:
5-50 (1) title to land, buildings, improvements, and
5-51 equipment related to any hospital system located in the district
5-52 that is owned by the West Hospital Authority or McLennan County;
5-53 (2) operating funds and reserves for operating
5-54 expenses and funds that have been budgeted by the West Hospital
5-55 Authority or McLennan County to provide medical care for residents
5-56 of the district for the remainder of the fiscal year in which the
5-57 district is established;
5-58 (3) accounts receivable of the West Hospital Authority
5-59 or McLennan County for medical care provided for residents of the
5-60 district;
5-61 (4) taxes levied by McLennan County for hospital
5-62 purposes for residents of the district for the year in which the
5-63 district is created; and
5-64 (5) funds established for payment of indebtedness
5-65 assumed by the district.
5-66 (b) On or after creation of the West Community Hospital
5-67 District, another political entity may not levy taxes or issue
5-68 bonds or other obligations for hospital purposes or for providing
5-69 medical care for the residents of the district.
5-70 SECTION 5.02. DISTRICT RESPONSIBILITIES. (a) On creation
6-1 of the district, the district:
6-2 (1) assumes full responsibility for operating hospital
6-3 facilities and for furnishing medical and hospital care for the
6-4 district's needy inhabitants;
6-5 (2) assumes any outstanding indebtedness, including
6-6 bonded indebtedness, incurred by the West Community Hospital, the
6-7 West Hospital Authority, or McLennan County for hospital purposes
6-8 for residents of the district before the district's creation;
6-9 (3) may operate or provide for the operation of a
6-10 mobile emergency medical or air ambulance service; and
6-11 (4) may operate or provide for home-health services,
6-12 long-term care, skilled nursing care, intermediate nursing care,
6-13 hospital care, or any other reasonable or appropriate medical care
6-14 or medical services.
6-15 (b) The board has complete discretion as to the type and
6-16 extent of services the district will offer. The district may
6-17 provide any services the board finds necessary for hospital or
6-18 medical care, including necessary nurses or domiciliaries.
6-19 SECTION 5.03. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
6-20 board shall manage, control, and administer the hospital system and
6-21 the funds and resources of the district.
6-22 SECTION 5.04. DISTRICT RULES. The board may adopt rules
6-23 governing the operations of the hospital and hospital system and
6-24 the duties, functions, and responsibilities of district staff and
6-25 employees.
6-26 SECTION 5.05. METHODS AND PROCEDURES. (a) The board may
6-27 prescribe the method of making purchases and expenditures by and
6-28 for the district.
6-29 (b) The board may prescribe accounting and control
6-30 procedures for the district.
6-31 (c) The board may spend money to recruit physicians, nurses,
6-32 and other personnel, except as prohibited by law.
6-33 SECTION 5.06. HOSPITAL FACILITIES. (a) The board shall
6-34 determine the type, number, and location of buildings required to
6-35 establish and maintain an adequate hospital system and the type of
6-36 equipment necessary for hospital care.
6-37 (b) The district has complete discretion as to the type and
6-38 extent of services the district will offer. The district may
6-39 provide any facilities the board finds necessary for hospital or
6-40 medical care, including facilities for:
6-41 (1) domiciliary care, including geriatric domiciliary
6-42 care;
6-43 (2) outpatient clinics and minor emergency centers;
6-44 (3) dispensaries;
6-45 (4) convalescent homes;
6-46 (5) blood banks;
6-47 (6) community mental health centers;
6-48 (7) alcohol or chemical dependency centers;
6-49 (8) research centers;
6-50 (9) laboratories; or
6-51 (10) training centers.
6-52 (c) The board may acquire property, facilities, and
6-53 equipment for the district for use in the hospital system and may
6-54 mortgage or pledge the property, facilities, or equipment acquired
6-55 as security for the payment of the purchase price.
6-56 (d) The board may lease hospital facilities on behalf of the
6-57 district.
6-58 (e) The board may sell or otherwise dispose of property,
6-59 facilities, or equipment on behalf of the district at public or
6-60 private sale and at the price and terms the board considers most
6-61 advantageous. The board shall give notice of intent to sell land
6-62 or buildings by publishing a notice of intent in a newspaper with
6-63 general circulation in McLennan County, Texas, not later than the
6-64 30th day before the date of the sale.
6-65 (f) Subchapter D, Chapter 285, Health and Safety Code, does
6-66 not apply to the district.
6-67 SECTION 5.07. CONSTRUCTION CONTRACTS. (a) The board may
6-68 enter into construction contracts on behalf of the district.
6-69 However, the board may enter into construction contracts that
6-70 involve spending more than $10,000 only after competitive bidding
7-1 as provided by Subchapter B, Chapter 271, Local Government Code.
7-2 (b) Article 5160, Revised Statutes, as it relates to
7-3 performance and payment bonds, applies to construction contracts
7-4 let by the district.
7-5 SECTION 5.08. DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
7-6 The board may enter into operating or management contracts relating
7-7 to hospital facilities on behalf of the district.
7-8 SECTION 5.09. EMINENT DOMAIN. (a) The district may
7-9 exercise the power of eminent domain to acquire by condemnation a
7-10 fee simple or other interest in property located in the territory
7-11 of the district if the property interest is necessary to the
7-12 exercise of the rights or authority conferred by this Act.
7-13 (b) The district must exercise the power of eminent domain
7-14 in the manner provided by Chapter 21, Property Code, but the
7-15 district is not required to deposit in the trial court money or
7-16 bond as provided by Subsection (a), Section 21.021, Property Code.
7-17 (c) In a condemnation proceeding brought by the district,
7-18 the district is not required to pay in advance or give bond or
7-19 other security for costs in the trial court, to give bond for the
7-20 issuance of a temporary restraining order or a temporary
7-21 injunction, or to give bond for costs or supersedeas on an appeal
7-22 or writ of error.
7-23 SECTION 5.10. EXPENSES FOR MOVING FACILITIES OF RAILROADS
7-24 AND UTILITIES. In exercising the power of eminent domain, if the
7-25 board requires relocating, raising, lowering, rerouting, changing
7-26 the grade, or altering the construction of any railroad, highway,
7-27 pipeline, or electric transmission and electric distribution,
7-28 telegraph, or telephone lines, conduits, poles, or facilities, the
7-29 district must bear the actual cost of relocating, raising,
7-30 lowering, rerouting, changing the grade, or altering the
7-31 construction to provide comparable replacement without enhancement
7-32 of facilities, after deducting the net salvage value derived from
7-33 the old facility.
7-34 SECTION 5.11. INDIGENT CARE. (a) The district shall supply
7-35 care and treatment without charge to a patient who resides in the
7-36 district if the patient or relative who is legally responsible for
7-37 the patient's support cannot pay for the care and treatment, as
7-38 required by Article IX, Section 9, of the Texas Constitution. Care
7-39 and treatment provided under this subsection is limited to the
7-40 hospital inpatient and outpatient services that the hospital
7-41 regularly provides to other patients.
7-42 (b) The district may adopt, amend, or repeal policies or
7-43 rules relating to indigent health care, including policies or rules
7-44 relating to:
7-45 (1) eligibility of patients for indigent health care;
7-46 (2) application forms for patients or relatives of
7-47 patients requesting indigent health care that may require personal
7-48 and financial information to be furnished;
7-49 (3) procedures for obtaining and completing
7-50 applications for indigent health care and for filing the completed
7-51 applications with the district;
7-52 (4) procedures for reviewing applications to determine
7-53 eligibility for indigent health care; and
7-54 (5) other procedures under this section.
7-55 (c) The application procedure to determine eligibility for
7-56 indigent health care must be adopted not later than the beginning
7-57 of each operating year and must comply with Section 61.053, Health
7-58 and Safety Code.
7-59 (d) The administrator of the district may have an inquiry
7-60 made into the financial circumstances of any patient residing in
7-61 the district and admitted to a district facility and into the
7-62 financial circumstances of a relative of the patient who is legally
7-63 responsible for the patient's support.
7-64 (e) On finding that the patient or a relative of the patient
7-65 who is legally responsible for the patient's support can pay for
7-66 all or any part of the care and treatment provided by the district,
7-67 the administrator shall issue an order directing the patient or the
7-68 relative to pay the district each week a specified amount that the
7-69 individual is able to pay.
7-70 (f) The administrator may collect money owed to the district
8-1 from the estate of the patient or from that of a relative who was
8-2 legally responsible for the patient's support in the manner
8-3 provided by law for collection of expenses in the last illness of a
8-4 deceased person.
8-5 (g) If there is a dispute relating to an individual's
8-6 ability to pay, the board may call witnesses, issue subpoenas duces
8-7 tecum, administer oaths, hear and resolve the question, and issue a
8-8 final order. An appeal from a final order of the board must be
8-9 made to a district court in the county in which the district is
8-10 located and the substantial evidence rule applies.
8-11 SECTION 5.12. REIMBURSEMENT FOR SERVICES. (a) The board
8-12 shall require reimbursement from a county, city, or public hospital
8-13 located outside the boundaries of the district for the district's
8-14 care and treatment of a sick, diseased, or injured person of that
8-15 county, city, or public hospital as provided by Chapter 61, Health
8-16 and Safety Code.
8-17 (b) The board shall require reimbursement from the sheriff
8-18 of McLennan County for the district's care and treatment of a
8-19 person confined in a jail facility of McLennan County who is not a
8-20 resident of the district.
8-21 (c) The board may contract with state or federal government
8-22 for the state or federal government to reimburse the district for
8-23 treatment of a sick, a diseased, or an injured person.
8-24 SECTION 5.13. DISTRICT LIABILITY FOR SERVICES AND PAYMENTS.
8-25 (a) The maximum district liability for each district fiscal year
8-26 for all services to an eligible district resident in that year is
8-27 $5,000.
8-28 (b) The district liability for payment for a particular
8-29 mandatory medical service for an eligible district resident is
8-30 limited to the payment standard established under the AFDC-1
8-31 Medicaid program.
8-32 (c) The district liability under this section for hospital
8-33 inpatient and outpatient services is limited to the hospital
8-34 inpatient and outpatient services that the hospital regularly
8-35 provides to other patients.
8-36 (d) Subsections (b) and (c) of this section do not apply if
8-37 the district contracts with the provider for the services and the
8-38 provider certifies that the provider will comply with Subsections
8-39 (b) and (c) for each service rendered.
8-40 SECTION 5.14. SERVICE CONTRACTS. The board may contract
8-41 with a city, county, special district, or other political
8-42 subdivision of the state or federal agency for the district to
8-43 furnish a mobile emergency medical or air ambulance service or to
8-44 provide for the investigatory or welfare needs of inhabitants of
8-45 the district.
8-46 SECTION 5.15. GIFTS AND ENDOWMENTS. On behalf of the
8-47 district, the board may accept gifts and endowments to be held in
8-48 trust for any purpose and under any direction, limitation, or
8-49 provision prescribed in writing by the donor that is consistent
8-50 with the proper management of the district.
8-51 SECTION 5.16. AUTHORITY TO SUE AND BE SUED. The board may
8-52 sue and be sued on behalf of the district.
8-53 ARTICLE 6. DISTRICT FINANCES
8-54 SECTION 6.01. FISCAL YEAR. (a) The district operates on
8-55 the fiscal year established by the board.
8-56 (b) The fiscal year may not be changed when revenue bonds of
8-57 the district are outstanding or more than once in a 24-month
8-58 period.
8-59 SECTION 6.02. ANNUAL AUDIT. Annually, the board shall have
8-60 an audit made of the financial condition of the district.
8-61 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit
8-62 and other district records are open to inspection during regular
8-63 business hours at the principal office of the district.
8-64 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the
8-65 district shall prepare a proposed annual budget for the district.
8-66 (b) The proposed budget must contain a complete financial
8-67 statement, including a statement of:
8-68 (1) the outstanding obligations of the district;
8-69 (2) the amount of cash on hand to the credit of each
8-70 fund of the district;
9-1 (3) the amount of money received by the district from
9-2 all sources during the previous year;
9-3 (4) the amount of money available to the district from
9-4 all sources during the ensuing year;
9-5 (5) the amount of the balances expected at the end of
9-6 the year in which the budget is being prepared;
9-7 (6) the estimated amount of revenues and balances
9-8 available to cover the proposed budget; and
9-9 (7) the estimated tax rate that will be required.
9-10 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
9-11 board shall hold a public hearing on the proposed annual budget.
9-12 (b) The board shall publish notice of the hearing in a
9-13 newspaper of general circulation in the district not later than the
9-14 10th day before the date of the hearing.
9-15 (c) Any resident of the district is entitled to be present
9-16 and participate at the hearing.
9-17 (d) At the conclusion of the hearing, the board shall adopt
9-18 a budget by acting on the budget proposed by the administrator.
9-19 The board may make any changes in the proposed budget that in its
9-20 judgment the interests of the taxpayers demand.
9-21 (e) The budget is effective only after adoption by the
9-22 board.
9-23 SECTION 6.06. AMENDING BUDGET. After adoption, the annual
9-24 budget may be amended on the board's approval.
9-25 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be
9-26 spent for an expense not included in the annual budget or an
9-27 amendment to it.
9-28 SECTION 6.08. SWORN STATEMENT. As soon as practicable after
9-29 the close of the fiscal year, the administrator shall prepare for
9-30 the board a sworn statement of the amount of money that belongs to
9-31 the district and an account of the disbursements of that money.
9-32 SECTION 6.09. SPENDING AND INVESTMENTS LIMITATIONS.
9-33 (a) Except as provided by Subsection (a) of Section 5.07 and
9-34 Sections 6.10, 7.01, 7.04, and 7.05 of this Act, the district may
9-35 not incur a debt payable from revenues of the district other than
9-36 the revenues on hand or to be on hand in the current and
9-37 immediately following fiscal years of the district.
9-38 (b) The board may invest operating, depreciation, or
9-39 building reserves only in funds or securities specified by Article
9-40 836 or 837, Revised Statutes.
9-41 SECTION 6.10. BORROWING MONEY. The district may borrow
9-42 money to pay its operating expenses in an amount not to exceed the
9-43 amount of tax revenue that the district expects to receive during
9-44 the 12-month period following the date on which the money is
9-45 borrowed. The district may pledge all or any part of those tax
9-46 revenues to the payment of the amounts borrowed.
9-47 SECTION 6.11. DEPOSITORY. (a) The board shall name at
9-48 least one bank to serve as depository for district funds.
9-49 (b) District funds, other than those invested as provided by
9-50 Subsection (b) of Section 6.09 of this Act and those transmitted to
9-51 a bank for payment of bonds or obligations issued or assumed by the
9-52 district, shall be deposited as received with the depository bank
9-53 and must remain on deposit. This subsection does not limit the
9-54 power of the board to place a portion of district funds on time
9-55 deposit or to purchase certificates of deposit.
9-56 (c) Before the district deposits funds in a bank in an
9-57 amount that exceeds the maximum amount secured by the Federal
9-58 Deposit Insurance Corporation, the bank must execute a bond or
9-59 other security in an amount sufficient to secure from loss the
9-60 district funds that exceed the amount secured by the Federal
9-61 Deposit Insurance Corporation.
9-62 ARTICLE 7. BONDS
9-63 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue
9-64 and sell bonds authorized by an election in the name and on the
9-65 faith and credit of the hospital district to:
9-66 (1) purchase, construct, acquire, repair, or renovate
9-67 buildings or improvements;
9-68 (2) equip buildings or improvements for hospital
9-69 purposes; or
9-70 (3) acquire and operate a mobile emergency medical or
10-1 air ambulance service.
10-2 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the
10-3 bonds are issued by the district, the board shall levy a tax.
10-4 (b) The tax must be sufficient to create an interest and
10-5 sinking fund to pay the principal of and interest on the bonds as
10-6 they mature.
10-7 (c) In any year, the tax together with any other tax the
10-8 district levies may not exceed the limit approved by the voters at
10-9 the election authorizing the levy of taxes.
10-10 SECTION 7.03. BOND ELECTION. (a) The district may issue
10-11 general obligation bonds only if the bonds are authorized by a
10-12 majority of the qualified voters of the district voting at an
10-13 election called and held for that purpose.
10-14 (b) The board may order a bond election. The order calling
10-15 the election must state the nature and date of the election, the
10-16 hours during which the polls will be open, the location of the
10-17 polling places, the amounts of bonds to be authorized, and the
10-18 maximum maturity of the bonds.
10-19 (c) Notice of a bond election shall be given as provided by
10-20 Article 704, Revised Statutes.
10-21 (d) The board shall canvass the returns and declare the
10-22 results of the election.
10-23 SECTION 7.04. REVENUE BONDS. (a) The board may issue bonds
10-24 to:
10-25 (1) purchase, construct, acquire, repair, equip, or
10-26 renovate buildings or improvements for hospital purposes, including
10-27 the purposes provided by Section 5.06 of this Act;
10-28 (2) acquire sites to be used for hospital purposes; or
10-29 (3) acquire and operate a mobile emergency medical or
10-30 air ambulance service to assist the district in carrying out its
10-31 hospital purpose.
10-32 (b) The bonds must be payable from and secured by a pledge
10-33 of all or part of the revenues derived from the operation of the
10-34 district's hospital system. The bonds may be additionally secured
10-35 by a mortgage or deed of trust lien on all or part of district
10-36 property.
10-37 (c) The bonds must be issued in the manner provided by
10-38 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
10-39 Health and Safety Code, for issuance of revenue bonds by county
10-40 hospital authorities.
10-41 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the
10-42 district may be issued to refund and pay off any outstanding
10-43 indebtedness the district has issued or assumed.
10-44 (b) The bonds must be issued in the manner provided by
10-45 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
10-46 (Article 717k-3, Vernon's Texas Civil Statutes).
10-47 (c) The refunding bonds may be sold and the proceeds applied
10-48 to the payment of outstanding indebtedness or may be exchanged in
10-49 whole or in part for not less than a similar principal amount of
10-50 outstanding indebtedness. If the refunding bonds are to be sold
10-51 and the proceeds applied to the payment of outstanding
10-52 indebtedness, the refunding bonds must be issued and payments made
10-53 in the manner provided by Chapter 503, Acts of the 54th
10-54 Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes).
10-55 SECTION 7.06. INTEREST AND MATURITY. District bonds must
10-56 mature not more than 50 years after the date of their issuance and
10-57 must bear interest at a rate not to exceed that provided by Chapter
10-58 3, Acts of the 61st Legislature, Regular Session, 1969 (Article
10-59 717k-2, Vernon's Texas Civil Statutes).
10-60 SECTION 7.07. EXECUTION OF BONDS. The president of the
10-61 board shall execute the bonds in the name of the district, and the
10-62 secretary of the board shall countersign the bonds in the manner
10-63 provided by the Texas Uniform Facsimile Signature of Public
10-64 Officials Act (Article 717j-1, Vernon's Texas Civil Statutes).
10-65 SECTION 7.08. APPROVAL AND REGISTRATION OF BONDS.
10-66 (a) District bonds are subject to the same requirements with
10-67 regard to approval by the attorney general and registration by the
10-68 comptroller of public accounts as the law provides for approval and
10-69 registration of bonds issued by counties.
10-70 (b) On approval by the attorney general and registration by
11-1 the comptroller of public accounts, the bonds are incontestable for
11-2 any cause.
11-3 SECTION 7.09. BONDS AS INVESTMENTS. District bonds and
11-4 indebtedness assumed by the district are legal and authorized
11-5 investments for:
11-6 (1) banks;
11-7 (2) savings banks;
11-8 (3) trust companies;
11-9 (4) savings and loan associations;
11-10 (5) insurance companies;
11-11 (6) fiduciaries;
11-12 (7) trustees;
11-13 (8) guardians; and
11-14 (9) sinking funds of cities, counties, school
11-15 districts, and other political subdivisions of the state and other
11-16 public funds of the state and its agencies, including the permanent
11-17 school fund.
11-18 SECTION 7.10. BONDS AS SECURITY FOR DEPOSITS. District
11-19 bonds are eligible to secure deposits of public funds of the state
11-20 and of cities, counties, school districts, and other political
11-21 subdivisions of the state. The bonds are lawful and sufficient
11-22 security for deposits to the extent of their value if accompanied
11-23 by all unmatured coupons.
11-24 SECTION 7.11. TAX STATUS OF BONDS. Since the district
11-25 created under this Act is a public entity performing an essential
11-26 public function, bonds issued by the district, any transaction
11-27 relating to the bonds, and profits made in the sale of the bonds
11-28 are free from taxation by the state or by any city, county, special
11-29 district, or other political subdivision of the state.
11-30 ARTICLE 8. TAXES
11-31 SECTION 8.01. LEVY OF TAXES. (a) The board may annually
11-32 levy taxes in an amount not to exceed the limit approved by the
11-33 voters at the election authorizing the levy of taxes.
11-34 (b) The tax rate for all purposes may not exceed 40 cents on
11-35 each $100 valuation of all taxable property in the district.
11-36 (c) The taxes may be used to pay:
11-37 (1) the indebtedness issued or assumed by the
11-38 district; and
11-39 (2) the maintenance and operating expenses of the
11-40 district.
11-41 (d) The district may not levy taxes to pay the principal of
11-42 or interest on revenue bonds issued under this Act.
11-43 SECTION 8.02. BOARD AUTHORITY. (a) The board may levy
11-44 taxes for the entire year in which the district is created.
11-45 (b) The board shall levy taxes on all property in the
11-46 district subject to hospital district taxation.
11-47 SECTION 8.03. SETTING OF TAX RATE. In setting the tax rate,
11-48 the board shall take into consideration the income of the district
11-49 from sources other than taxation. On determination of the amount
11-50 of tax required to be levied, the board shall make the levy and
11-51 certify it to the tax assessor-collector.
11-52 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) The Tax
11-53 Code governs the appraisal, assessment, and collection of district
11-54 taxes.
11-55 (b) The board may provide for the appointment of a tax
11-56 assessor-collector for the district or may contract for the
11-57 assessment and collection of taxes as provided by the Tax Code.
11-58 ARTICLE 9. DISSOLUTION OF DISTRICT
11-59 SECTION 9.01. DISSOLUTION ELECTION. The district may be
11-60 dissolved and its assets and liabilities sold or transferred to
11-61 another entity or person only if the dissolution and transfer are
11-62 approved by a majority of the qualified voters of the territory of
11-63 the district voting at an election called and held for that
11-64 purpose.
11-65 SECTION 9.02. ORDERING ELECTION. (a) A majority of the
11-66 directors may order an election to be held on the question of
11-67 dissolution of the district and the transfer of its assets and
11-68 liabilities.
11-69 (b) On presentation of a petition for a dissolution election
11-70 signed by at least 300 of the registered voters of the territory of
12-1 the district, according to the most recent official list of
12-2 registered voters, the directors shall order an election to be held
12-3 on the question of dissolution of the district and transfer of its
12-4 assets. The election shall be called not later than the 60th day
12-5 after the date the petition is presented to the district.
12-6 SECTION 9.03. ELECTION ORDER. The order calling the
12-7 election must state:
12-8 (1) the nature of the election, including the
12-9 proposition that is to appear on the ballot;
12-10 (2) the date of the election;
12-11 (3) the hours during which the polls will be open; and
12-12 (4) the location of the polling places.
12-13 SECTION 9.04. NOTICE. The directors shall give notice of
12-14 the election by publishing a substantial copy of the election order
12-15 in a newspaper with general circulation in the district once a week
12-16 for two consecutive weeks. The first publication must appear at
12-17 least 35 days before the date set for election.
12-18 SECTION 9.05. ELECTION DATE. (a) The election shall be
12-19 held not less than 45 days after the date on which the election is
12-20 ordered.
12-21 (b) Subsection (a), Section 41.001, Election Code, does not
12-22 apply to an election ordered under this article.
12-23 SECTION 9.06. BALLOT PROPOSITION. The ballot for an
12-24 election at which the dissolution of the district is proposed shall
12-25 be printed to permit voting for or against the proposition: "The
12-26 dissolution of the West Community Hospital District and the
12-27 transfer of its assets and liabilities in the following manner:
12-28 ________________________ (insert provisions for transfer)."
12-29 SECTION 9.07. CANVASSING RETURNS. (a) The directors shall
12-30 canvass the returns of the election.
12-31 (b) If the directors find that the election results are
12-32 favorable to the proposition to dissolve the district and transfer
12-33 its assets and liabilities, they shall issue an order declaring the
12-34 district dissolved and shall proceed with the sale or transfer of
12-35 its assets and liabilities according to the plan proposed on the
12-36 ballot.
12-37 (c) If the directors find that the election results are not
12-38 favorable to the proposition to dissolve the district and transfer
12-39 its assets and liabilities, another dissolution election may not be
12-40 held before the first anniversary of the date of the election at
12-41 which voters disapproved the proposition.
12-42 SECTION 9.08. TRANSFER OF ASSETS. (a) Notwithstanding any
12-43 other provision of this article, the district may not be dissolved
12-44 unless the board provides for the sale or transfer of the
12-45 district's assets and liabilities to another entity or person. The
12-46 dissolution of the district and the sale or transfer of the
12-47 district's assets and liabilities may not contravene a trust
12-48 indenture or bond resolution relating to the outstanding bonds of
12-49 the district. In addition, the dissolution and sale or transfer
12-50 may not diminish or impair the rights of the holders of any
12-51 outstanding bonds, warrants, or other obligations of the district.
12-52 (b) The sale or transfer of the district's assets and
12-53 liabilities must satisfy the debt and bond obligations of the
12-54 district in a manner that protects the interests of the residents
12-55 of the district, including their collective property rights in the
12-56 district's assets. Any grant from federal funds is considered an
12-57 obligation to be repaid in satisfaction. The district may not
12-58 transfer or dispose of the district's assets except for due
12-59 compensation unless the transfer is made to another governmental
12-60 agency embracing the district and using the transferred assets for
12-61 the benefit of residents formerly in the district.
12-62 ARTICLE 10. MISCELLANEOUS
12-63 SECTION 10.01. LIMITATION ON STATE ASSISTANCE. The state
12-64 may not become obligated for the support or maintenance of a
12-65 hospital district created under this Act, nor may the legislature
12-66 make a direct appropriation for the construction, maintenance, or
12-67 improvement of a facility of the district.
12-68 SECTION 10.02. EMERGENCY. The importance of this
12-69 legislation and the crowded condition of the calendars in both
12-70 houses create an emergency and an imperative public necessity that
13-1 the constitutional rule requiring bills to be read on three several
13-2 days in each house be suspended, and this rule is hereby suspended,
13-3 and that this Act take effect and be in force from and after its
13-4 passage, and it is so enacted.
13-5 * * * * *
13-6 Austin,
13-7 Texas
13-8 February 10,
13-9 1993
13-10 Hon. Bob Bullock
13-11 President of the Senate
13-12 Sir:
13-13 We, your Committee on Intergovernmental Relations to which was
13-14 referred S.B. No. 221, have had the same under consideration, and I
13-15 am instructed to report it back to the Senate with the
13-16 recommendation that it do pass, as amended, and be printed.
13-17 Armbrister,
13-18 Chairman
13-19 * * * * *
13-20 WITNESSES
13-21 No witnesses appeared on S.B. No. 221.