By: Haley S.B. No. 501 A BILL TO BE ENTITLED AN ACT 1-1 relating to the creation, administration, powers, duties, 1-2 operation, and financing of the Polk County Hospital District; 1-3 authorizing a tax; granting the authority to issue bonds; and 1-4 granting the power of eminent domain. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 ARTICLE 1. GENERAL PROVISIONS 1-7 SECTION 1.01. DEFINITIONS. In this Act: 1-8 (1) "District" means the Polk County Hospital 1-9 District. 1-10 (2) "Board" means the board of directors of the 1-11 district. 1-12 (3) "Director" means a member of the board. 1-13 SECTION 1.02. DISTRICT AUTHORIZATION. The Polk County 1-14 Hospital District may be created and established and, if created, 1-15 shall be maintained, operated, and financed in accordance with the 1-16 provisions of Article IX, Section 9, of the Texas Constitution, 1-17 this Act, and other laws relating to hospital districts created 1-18 under Article IX, Section 9, of the Texas Constitution. 1-19 SECTION 1.03. BOUNDARIES. The boundaries of the district 1-20 are coextensive with the boundaries of Polk County, Texas. 1-21 ARTICLE 2. TEMPORARY DIRECTORS 1-22 SECTION 2.01. TEMPORARY DIRECTORS. (a) On the effective 1-23 date of this Act, the following persons are hereby appointed to the 1-24 board and shall be temporary directors of the district: 2-1 (1) Duane Adams; 2-2 (2) Doyle Chandler; 2-3 (3) Howard Daniel, Jr.; 2-4 (4) Floyd Dickens; and 2-5 (5) H. E. Striedel. 2-6 (b) The temporary directors may exercise all authority 2-7 required to organize, call, and hold an election under Article 3 of 2-8 this Act. 2-9 SECTION 2.02. VACANCY IN OFFICE. The directors remaining 2-10 after a vacancy in the office of temporary director shall fill the 2-11 vacancy by appointment by majority vote. 2-12 ARTICLE 3. CREATION OF DISTRICT 2-13 SECTION 3.01. CREATION ELECTION. The district may be 2-14 created and a tax may be authorized only if the creation and the 2-15 tax are approved by a majority of the qualified voters of the 2-16 territory of the proposed district voting at an election called and 2-17 held for that purpose. 2-18 SECTION 3.02. ORDERING ELECTION. (a) A majority of the 2-19 temporary directors may order an election to be held on the 2-20 creation of the district. 2-21 (b) On presentation of a petition for an election on the 2-22 creation of the district signed by at least 20 registered voters 2-23 residing in the boundaries of the proposed district, according to 2-24 the most recent official lists of registered voters, the temporary 2-25 directors shall order an election to be held. The election shall 2-26 be called not later than the 60th day after the date the petition 2-27 is filed with the temporary directors. 3-1 SECTION 3.03. ELECTION ORDER. The order calling the 3-2 election must state: 3-3 (1) the date of the election; 3-4 (2) the nature of the election, including the 3-5 proposition that is to appear on the ballot; 3-6 (3) the maximum tax rate to be voted on at the 3-7 election, which may not exceed 75 cents on the $100 valuation of 3-8 all taxable property in the district; 3-9 (4) the hours during which the polls will be open; 3-10 (5) the number of election precincts to be used in the 3-11 election; 3-12 (6) the polling place for each election precinct; 3-13 (7) the presiding judge and alternate presiding judge 3-14 appointed to serve at each polling place; and 3-15 (8) the names of the officers and the location where 3-16 early voting will be conducted for the election and the hours for 3-17 early voting during the early voting period. 3-18 SECTION 3.04. NOTICE. The temporary directors shall give 3-19 notice of the election by publishing a substantial copy of the 3-20 election order in a newspaper with general circulation in Polk 3-21 County once a week for two consecutive weeks. The first 3-22 publication of the notice must appear at least 35 days before the 3-23 date set for the election. 3-24 SECTION 3.05. ELECTION DATE. (a) The election shall be 3-25 held not less than 45 days nor more than 60 days after the date on 3-26 which the election is ordered. 3-27 (b) Subsection (a), Section 41.001, Election Code, and its 4-1 subsequent amendments, does not apply to an election ordered under 4-2 this article. 4-3 SECTION 3.06. BALLOT PROPOSITION. The ballot for an 4-4 election on the creation of the district shall be printed to permit 4-5 voting for or against the proposition: "The creation of Polk 4-6 County Hospital District and the levy of annual taxes for hospital 4-7 purposes at a rate not to exceed ________ (insert the amount 4-8 prescribed by the election order, not to exceed 75 cents) on each 4-9 $100 valuation of all taxable property in the district." 4-10 SECTION 3.07. CANVASSING RETURNS. The temporary directors 4-11 of the district shall meet and canvass the returns of the election 4-12 and, if a majority of voters voting at the election votes in favor 4-13 of the creation of the district, the temporary directors shall pass 4-14 an order declaring the district created. 4-15 SECTION 3.08. EXPIRATION OF ACT. If the creation of the 4-16 district is not approved at an election held within 60 months after 4-17 the effective date of this Act, this Act expires. 4-18 SECTION 3.09. BOND PROPOSITION AT CREATION ELECTION. (a) A 4-19 petition for an election on the creation of the district under 4-20 Subsection (b) of Section 3.02 of this Act may request that a 4-21 separate proposition be submitted at the election to determine 4-22 whether the board may issue district bonds if the district is 4-23 created. The petition must specify the maximum amount of bonds to 4-24 be issued and their maximum maturity date. 4-25 (b) Even though a petition does not request submission of a 4-26 proposition on whether the board may issue bonds or even though the 4-27 temporary directors have called the election on the creation of the 5-1 district on their own motion under Subsection (a) of Section 3.02 5-2 of this Act, the temporary directors may submit a separate 5-3 proposition at the election on the issuance of bonds. 5-4 (c) If a bond proposition is submitted to the voters, the 5-5 proposition to appear on the ballot shall be printed to permit 5-6 voting for or against the proposition: "The issuance of bonds for 5-7 the purposes of the Polk County Hospital District, if created, in 5-8 an amount not to exceed $________(insert amount) and to mature not 5-9 later than ____________(insert date)." 5-10 (d) The board may issue bonds as provided by this Act if the 5-11 district is created and if a majority of the votes cast at the 5-12 election favor the proposition to issue the bonds. 5-13 SECTION 3.10. EARLY VOTING CLERK. The county clerk shall 5-14 serve as the early voting clerk for an election under this article. 5-15 ARTICLE 4. DISTRICT ADMINISTRATION 5-16 SECTION 4.01. BOARD OF DIRECTORS. (a) The district shall 5-17 be governed by a board of five directors. 5-18 (b) From the time the creation of the district is approved 5-19 until the elected directors take office, the temporary directors 5-20 shall serve as directors of the district. 5-21 SECTION 4.02. INITIAL DIRECTORS' ELECTION. Directors shall 5-22 be elected at an election to be held on the first Saturday in May 5-23 following the creation of the district. 5-24 SECTION 4.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF 5-25 OFFICE; ELECTION DATE. (a) The temporary directors shall 5-26 establish four precincts from which directors are elected. The 5-27 precincts must be contiguous and substantially equal in population 6-1 according to the most recent federal decennial census. 6-2 (b) One director shall be elected from each precinct, and 6-3 one director shall be elected from the county at large. 6-4 (c) At the initial election of directors, the candidate 6-5 receiving the highest number of votes from a precinct shall be a 6-6 director for that precinct, and the candidate receiving the highest 6-7 number of votes from the county at large is the director for the 6-8 district at large. 6-9 (d) At the initial election, the candidates elected from 6-10 odd-numbered precincts and the candidate elected at large shall 6-11 serve for a term of two years, and the candidates elected from the 6-12 even-numbered precincts at that election shall serve for a term of 6-13 one year. 6-14 (e) After the initial election of directors, an election 6-15 shall be held on the first Saturday in May each year and the 6-16 appropriate number of successor directors shall be elected for 6-17 two-year terms. 6-18 SECTION 4.04. NOTICE OF ELECTION. At least 35 days before 6-19 the date of an election of directors, notice of the election shall 6-20 be published one time in a newspaper with general circulation in 6-21 the district. 6-22 SECTION 4.05. APPLICATION. (a) A person who wishes to have 6-23 the person's name printed on the ballot as a candidate for director 6-24 must file with the secretary of the board an application and a 6-25 petition signed by at least 10 registered voters of the district 6-26 asking that the person's name be placed on the ballot. The 6-27 determination of whether a person is a registered voter of the 7-1 district shall be based on the most recent official lists of 7-2 registered voters. 7-3 (b) The application must specify the precinct the candidate 7-4 wishes to represent or specify that the candidate wishes to 7-5 represent the district at large. 7-6 SECTION 4.06. QUALIFICATIONS FOR OFFICE. (a) To be 7-7 eligible to be a candidate for or to serve as a director, a person 7-8 must be a resident of the district. 7-9 (b) In addition to the qualification required by Subsection 7-10 (a) of this section, a person who is elected from a precinct or who 7-11 is appointed to fill a vacancy for a precinct must be a resident of 7-12 that precinct. 7-13 SECTION 4.07. BOARD VACANCY. A vacancy in the office of 7-14 director shall be filled for the unexpired term by appointment by 7-15 the remaining directors. 7-16 SECTION 4.08. OFFICERS. The board shall elect from among 7-17 its members a president and a vice-president. The board shall also 7-18 appoint a secretary. The secretary need not be a director. 7-19 SECTION 4.09. OFFICERS' TERMS; VACANCY. (a) Each officer 7-20 of the board serves for a term of one year. 7-21 (b) The board shall fill a vacancy in a board office for an 7-22 unexpired term. 7-23 SECTION 4.10. COMPENSATION. Directors and officers serve 7-24 without compensation but may be reimbursed for actual expenses 7-25 incurred in the performance of official duties. Those expenses 7-26 must be reported in the district's minute book or other district 7-27 record and must be approved by the board. 8-1 SECTION 4.11. VOTING REQUIREMENT. A concurrence of a 8-2 majority of the members of the board voting is necessary in matters 8-3 relating to the business of the district. 8-4 SECTION 4.12. PERSONNEL OF DISTRICT. (a) The board may 8-5 appoint personnel as it considers necessary and appropriate and 8-6 shall establish their general duties. Personnel may include: 8-7 (1) an administrator and assistant administrator; and 8-8 (2) one or more: 8-9 (A) attorneys; 8-10 (B) doctors in either permanent or temporary 8-11 capacities; 8-12 (C) technicians; 8-13 (D) nurses; 8-14 (E) fiscal agents or accountants; and 8-15 (F) architects. 8-16 (b) In addition to an appointment authorized under 8-17 Subsection (a) of this section or instead of an appointment, the 8-18 board may assign duties as it considers appropriate to an 8-19 organization whose purpose is to run the administrative operations 8-20 of the district. 8-21 SECTION 4.13. RETIREMENT BENEFITS. The board may adopt any 8-22 retirement plan for its employees authorized by law. 8-23 ARTICLE 5. POWERS AND DUTIES 8-24 SECTION 5.01. RESPONSIBILITY OF AND LIMITATION ON 8-25 GOVERNMENTAL ENTITY. (a) As soon as possible following creation 8-26 of the district, Polk County shall prepare a full and complete 8-27 inventory of all hospital property, equipment, and supplies owned 9-1 by the county and shall cause to be transferred or conveyed to the 9-2 district: 9-3 (1) title to all lands, buildings, improvements, and 9-4 equipment related to the county's hospital; 9-5 (2) operating funds and reserves for operating 9-6 expenses and funds that have been budgeted by Polk County to 9-7 provide medical care for the residents of the county for the 9-8 remainder of the fiscal year in which the district is established; 9-9 (3) taxes collected by Polk County for hospital 9-10 purposes for the year in which the district is created; and 9-11 (4) funds established for the payment of county 9-12 indebtedness assumed by the district. 9-13 (b) On or after creation of the district, Polk County may 9-14 not levy taxes or issue bonds or other obligations for hospital 9-15 purposes or for providing medical care for the residents of the 9-16 district. 9-17 SECTION 5.02. DISTRICT RESPONSIBILITIES. On creation of the 9-18 district, the district: 9-19 (1) assumes full responsibility for operating hospital 9-20 facilities and for furnishing medical and hospital care for the 9-21 district's needy inhabitants; 9-22 (2) assumes any outstanding indebtedness incurred by 9-23 Polk County for hospital care and treatment before the district's 9-24 creation; and 9-25 (3) may operate or provide for the operation of a 9-26 mobile emergency medical service. 9-27 SECTION 5.03. MANAGEMENT, CONTROL, AND ADMINISTRATION; 10-1 OPERATING AND MANAGEMENT CONTRACTS. (a) The board shall manage, 10-2 control, and administer the hospital system and the funds and 10-3 resources of the district. 10-4 (b) The board may enter into operating or management 10-5 contracts relating to hospital facilities on behalf of the 10-6 district. 10-7 SECTION 5.04. RULES, PROCEDURES, AND CONSTRUCTION CONTRACTS. 10-8 (a) The board may adopt rules governing the operation of the 10-9 hospital and hospital system and the duties, functions, and 10-10 responsibilities of the district staff and employees. 10-11 (b) The board may prescribe the method of making purchases 10-12 and expenditures by and for the district and may establish 10-13 accounting and control procedures for the district. 10-14 (c) The board may enter into construction contracts on 10-15 behalf of the district. Subchapter B, Chapter 271, Local 10-16 Government Code, and its subsequent amendments, applies and 10-17 requires competitive bidding for the letting of construction 10-18 contracts in excess of the amount specified by Section 271.024 of 10-19 that subchapter, and its subsequent amendments. Article 5160, 10-20 Revised Statutes, and its subsequent amendments, as it relates to 10-21 performance and payment bonds, applies to construction contracts 10-22 let by the district. 10-23 SECTION 5.05. HOSPITAL PROPERTY, FACILITIES, AND EQUIPMENT. 10-24 (a) The board shall determine the type, number, and location of 10-25 buildings required to establish and maintain an adequate hospital 10-26 system and the type of equipment necessary for hospital care. 10-27 (b) The board may acquire property, facilities, and 11-1 equipment for the district for use in the hospital system either by 11-2 lease or by purchase and may mortgage or pledge the property, 11-3 facilities, or equipment acquired as security for the payment of 11-4 the purchase price. 11-5 (c) The board may lease hospital facilities on behalf of the 11-6 district. 11-7 (d) The board may sell or otherwise dispose of property, 11-8 facilities, or equipment on behalf of the district. 11-9 SECTION 5.06. EMINENT DOMAIN. (a) The district may 11-10 exercise the power of eminent domain to acquire by condemnation a 11-11 fee simple or other interest in property located in the territory 11-12 of the district if the property interest is necessary to the 11-13 exercise of the rights or authority conferred by this Act. 11-14 (b) The district must exercise the power of eminent domain 11-15 in the manner provided by Chapter 21, Property Code, and its 11-16 subsequent amendments, but the district is not required to deposit 11-17 in the trial court money or a bond as provided by Subsection (a), 11-18 Section 21.021, Property Code, and its subsequent amendments. 11-19 (c) In a condemnation proceeding brought by the district, 11-20 the district is not required to pay in advance or give bond or 11-21 other security for costs in the trial court, to give bond for the 11-22 issuance of a temporary restraining order or a temporary 11-23 injunction, or to give bond for costs or supersedeas on an appeal 11-24 or writ of error. 11-25 SECTION 5.07. EXPENSES FOR MOVING FACILITIES OF RAILROADS 11-26 AND UTILITIES. In exercising the power of eminent domain, if the 11-27 board requires relocating, raising, lowering, rerouting, changing 12-1 the grade, or altering the construction of any railroad, highway, 12-2 pipeline, or electric transmission and electric distribution, 12-3 telegraph, or telephone lines, conduits, poles, or facilities, the 12-4 district must bear the actual cost of relocating, raising, 12-5 lowering, rerouting, changing the grade, or altering the 12-6 construction to provide comparable replacement without enhancement 12-7 of facilities, after deducting the net salvage value derived from 12-8 the old facility. 12-9 SECTION 5.08. INDIGENT CARE. (a) The district shall, 12-10 without charge, supply to a patient residing in the district the 12-11 care and treatment that the patient or a relative of the patient 12-12 who is legally responsible for the patient's support cannot pay. 12-13 (b) Not later than the beginning of each operating year, the 12-14 district shall adopt an application procedure to determine 12-15 eligibility for assistance as provided by Section 61.053, Health 12-16 and Safety Code, and its subsequent amendments. 12-17 (c) The administrator of the district may have an inquiry 12-18 made into the financial circumstances of any patient residing in 12-19 the district and admitted to a district facility and into the 12-20 financial circumstances of a relative of the patient who is legally 12-21 responsible for the patient's support. 12-22 (d) On finding that the patient or a relative of the patient 12-23 legally responsible for the patient's support can pay for all or 12-24 any part of the care and treatment provided by the district, the 12-25 administrator shall report that finding to the board, and the board 12-26 shall issue an order directing the patient or the relative to pay 12-27 the district each week a specified amount that the individual is 13-1 able to pay. 13-2 (e) The administrator may collect money owed to the district 13-3 from the estate of the patient or from that of a relative who was 13-4 legally responsible for the patient's support in the manner 13-5 provided by law for collection of expenses in the last illness of 13-6 a deceased person. 13-7 (f) If there is a dispute relating to an individual's 13-8 ability to pay or if the administrator has any doubt concerning an 13-9 individual's ability to pay, the board shall call witnesses, hear 13-10 and resolve the question, and issue a final order. An appeal from 13-11 a final order of the board must be made to a district court in Polk 13-12 County, and the substantial evidence rule applies. 13-13 SECTION 5.09. REIMBURSEMENT FOR SERVICES. (a) The board 13-14 shall require reimbursement from a county or from a public hospital 13-15 located outside the boundaries of the district for the district's 13-16 care and treatment of a sick, diseased, or injured person of that 13-17 county or public hospital as provided by Sections 61.033 and 13-18 61.060, Health and Safety Code, and any subsequent amendments. 13-19 (b) The board shall require reimbursement from the sheriff 13-20 or police chief of Polk County or any city within its boundaries 13-21 for the district's care and treatment of a person confined in any 13-22 of their jail facilities who is not a resident of the district. 13-23 (c) The board may contract with the state or federal 13-24 government for the state or federal government to reimburse the 13-25 district for treatment of a sick, diseased, or injured person. 13-26 SECTION 5.10. SERVICE CONTRACTS. The board may contract 13-27 with a city, county, special district, or other political 14-1 subdivision of the state or with a state or federal agency for the 14-2 district to furnish a mobile emergency medical service or to 14-3 provide for the investigatory or welfare needs of inhabitants of 14-4 the district. 14-5 SECTION 5.11. GIFTS AND ENDOWMENTS. On behalf of the 14-6 district, the board may accept gifts and endowments to be held in 14-7 trust for any purpose and under any direction, limitation, or 14-8 provision prescribed in writing by the donor that is consistent 14-9 with the proper management of the district. 14-10 SECTION 5.12. AUTHORITY TO SUE AND BE SUED. The board may 14-11 sue and be sued on behalf of the district. 14-12 ARTICLE 6. DISTRICT FINANCES 14-13 SECTION 6.01. FISCAL YEAR. The district operates on the 14-14 fiscal year adopted by the board. 14-15 SECTION 6.02. ANNUAL AUDIT. The board annually shall have 14-16 an audit made of the financial condition of the district. 14-17 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit 14-18 and other district records are open to inspection during regular 14-19 business hours at the principal office of the district. 14-20 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the 14-21 district shall prepare a proposed annual budget for the district. 14-22 (b) The proposed budget must contain a complete financial 14-23 statement, including a statement of: 14-24 (1) the outstanding obligations of the district; 14-25 (2) the amount of cash on hand to the credit of each 14-26 fund of the district; 14-27 (3) the amount of money received by the district from 15-1 all sources during the previous year; 15-2 (4) the amount of money available to the district from 15-3 all sources during the ensuing year; 15-4 (5) the amount of the balances expected at the end of 15-5 the year in which the budget is being prepared; 15-6 (6) the estimated amount of revenues and balances 15-7 available to cover the proposed budget; and 15-8 (7) the estimated tax rate that will be required. 15-9 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The 15-10 board shall hold a public hearing on the proposed annual budget. 15-11 (b) The board shall publish notice of the hearing in a 15-12 newspaper with general circulation in the district not later than 15-13 the 10th day before the date of the hearing. 15-14 (c) Any resident of the district is entitled to be present 15-15 and participate at the hearing. 15-16 (d) At the conclusion of the hearing, the board shall adopt 15-17 a budget by acting on the budget proposed by the administrator. 15-18 The board may make any changes in the proposed budget that in its 15-19 judgment the interest of the taxpayers demands. 15-20 (e) The budget is effective only after adoption by the 15-21 board. 15-22 SECTION 6.06. AMENDING BUDGET. After adoption, the annual 15-23 budget may be amended on the board's approval. 15-24 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be 15-25 spent for an expense not included in the annual budget or an 15-26 amendment to it. 15-27 SECTION 6.08. SWORN STATEMENT. As soon as practicable after 16-1 the close of the fiscal year, the administrator shall prepare for 16-2 the board a sworn statement of the amount of money that belongs to 16-3 the district and an account of the disbursements of that money. 16-4 SECTION 6.09. INVESTMENT LIMITATIONS. Funds of the district 16-5 may be invested in obligations and in accordance with the Public 16-6 Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil 16-7 Statutes), and its subsequent amendments, and policies of the board 16-8 of directors. 16-9 SECTION 6.10. DEPOSITORY. (a) The board shall select a 16-10 depository under the same laws that govern the selection of a 16-11 depository by a county of this state. 16-12 (b) District funds, other than those invested as provided by 16-13 Section 6.09 of this Act and those transmitted to a bank for 16-14 payment of bonds or obligations issued or assumed by the district, 16-15 shall be deposited as received with the depository and must remain 16-16 on deposit. This subsection does not limit the power of the board 16-17 to place a portion of district funds on time deposit or to purchase 16-18 certificates of deposit. 16-19 (c) Before the district deposits funds in its depository in 16-20 an amount that exceeds the maximum amount secured by the Federal 16-21 Deposit Insurance Corporation, the depository must execute a bond 16-22 or other security in an amount sufficient to secure from loss the 16-23 district funds that exceed the amount secured by the Federal 16-24 Deposit Insurance Corporation. 16-25 SECTION 6.11. ALTERNATE MEANS OF FINANCING. In addition to 16-26 the other methods of financing provided by this Act, the district 16-27 may: 17-1 (1) issue short-term obligations of the district and 17-2 execute corresponding credit agreements in the manner provided by 17-3 Chapter 656, Acts of the 68th Legislature, Regular Session, 1983 17-4 (Article 717q, Vernon's Texas Civil Statutes), and its subsequent 17-5 amendments; 17-6 (2) issue warrants or notes drawn against the current 17-7 revenues of the district for the payment of current expenses in the 17-8 manner provided by Article 1264, Revised Statutes, and its 17-9 subsequent amendments; 17-10 (3) issue promissory notes secured by anticipated tax 17-11 receipts; and 17-12 (4) issue promissory notes secured by the anticipated 17-13 sale of bonds. 17-14 ARTICLE 7. BONDS 17-15 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue 17-16 and sell general obligation bonds of the district to: 17-17 (1) purchase, construct, acquire, repair, or renovate 17-18 buildings or improvements; 17-19 (2) equip buildings or improvements for hospital 17-20 purposes; and 17-21 (3) acquire and operate a mobile emergency medical 17-22 service. 17-23 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the 17-24 general obligation bonds are issued by the district, the board 17-25 shall levy a tax. 17-26 (b) The tax shall be annually assessed and collected in 17-27 amounts sufficient to pay the principal of and interest on the 18-1 bonds as they mature. 18-2 (c) In any year, the tax, together with any other tax the 18-3 district levies, may not exceed the limit approved by the voters at 18-4 the election authorizing the levy of taxes. 18-5 SECTION 7.03. BOND ELECTION. (a) The district may issue 18-6 general obligation bonds for the purposes stated in Section 7.01 of 18-7 this Act only if the bonds are authorized by a majority of the 18-8 qualified voters of the district voting on the matter of issuing 18-9 the bonds at the creation election or at an election called and 18-10 held for that purpose. 18-11 (b) The board may order a bond election after the district 18-12 is created. The order calling the election must state the nature 18-13 and date of the election, the hours during which the polls will be 18-14 open, the location of the polling places, the amount of bonds to be 18-15 authorized, and the maximum maturity of the bonds. 18-16 (c) Notice of a bond election shall be given as provided by 18-17 Article 704, Revised Statutes, and its subsequent amendments. 18-18 (d) The board shall canvass the returns and declare the 18-19 results of the election. 18-20 SECTION 7.04. REVENUE BONDS. (a) The board may issue 18-21 revenue bonds to: 18-22 (1) purchase, construct, acquire, repair, equip, or 18-23 renovate buildings or improvements for hospital purposes; 18-24 (2) acquire sites to be used for hospital purposes; 18-25 and 18-26 (3) acquire and operate a mobile emergency medical 18-27 service to assist the district in carrying out its hospital 19-1 purposes. 19-2 (b) The bonds may be payable from and secured by a pledge of 19-3 all or part of the revenues derived from the operation of the 19-4 district's hospital system. The bonds may be additionally secured 19-5 by a mortgage or deed of trust lien on all or part of the 19-6 district's property. 19-7 (c) The revenue bonds shall be issued in accordance with the 19-8 provisions of Chapter 264, Health and Safety Code, and its 19-9 subsequent amendments, relating to the issuance of revenue bonds by 19-10 county hospital authorities. 19-11 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the 19-12 district may be issued to refund and pay off an outstanding 19-13 indebtedness the district has issued or assumed. 19-14 (b) The refunding bonds must be issued in the manner 19-15 provided by Chapter 503, Acts of the 54th Legislature, Regular 19-16 Session, 1955 (Article 717k, Vernon's Texas Civil Statutes), or 19-17 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 19-18 (Article 717k-3, Vernon's Texas Civil Statutes), and any subsequent 19-19 amendments. 19-20 (c) The refunding bonds may be sold and the proceeds applied 19-21 to the payment of outstanding indebtedness or may be exchanged in 19-22 whole or in part for not less than a similar principal amount of 19-23 outstanding indebtedness as authorized by the statute under which 19-24 they are issued. 19-25 SECTION 7.06. BOND PROCEDURES ACT. To the extent not 19-26 inconsistent with other provisions governing the issuance of bonds 19-27 under this Act, the district's bonds will be issued in the manner 20-1 and form required by the Bond Procedures Act of 1981 (Article 20-2 717k-6, Vernon's Texas Civil Statutes), and its subsequent 20-3 amendments. 20-4 SECTION 7.07. BONDS AS INVESTMENTS. District bonds and 20-5 indebtedness assumed by the district are legal and authorized 20-6 investments for banks, savings banks, trust companies, savings and 20-7 loan associations, insurance companies, fiduciaries, trustees, 20-8 guardians, and sinking funds of cities, counties, school districts, 20-9 and other political subdivisions of the state and other public 20-10 funds of the state and its agencies, including the permanent school 20-11 fund. 20-12 SECTION 7.08. BONDS AS SECURITY FOR DEPOSITS. District 20-13 bonds are eligible to secure deposits of public funds of the state 20-14 and of cities, counties, school districts, and other political 20-15 subdivisions of the state. The bonds are lawful and sufficient 20-16 security for deposits to the extent of their par value. 20-17 SECTION 7.09. TAX STATUS OF BONDS. Since the district 20-18 created under this Act is a public entity performing an essential 20-19 public function, bonds issued by the district, any transaction 20-20 relating to the bonds, and profits made in the sale of the bonds 20-21 are free from taxation by the state or by any city, county, special 20-22 district, or other political subdivision of the state. 20-23 ARTICLE 8. TAXES 20-24 SECTION 8.01. LEVY OF TAXES. (a) The board may annually 20-25 impose property taxes in an amount not to exceed the limit approved 20-26 by the voters at the election authorizing the levy of taxes. 20-27 (b) The tax rate for all purposes may not exceed that 21-1 authorized by the voters at an election held for that purpose. 21-2 (c) The taxes may be used to pay for indebtedness issued or 21-3 assumed by the district, for maintenance and operating expenses of 21-4 the district, and for any other purpose authorized by the voters at 21-5 the election held for that purpose. 21-6 (d) The district may not impose taxes to pay the principal 21-7 of or interest on revenue bonds. 21-8 SECTION 8.02. BOARD AUTHORITY. The board may impose taxes 21-9 for the entire year in which the district is created. 21-10 SECTION 8.03. ADOPTING TAX RATE. In adopting the tax rate, 21-11 the board shall consider the income of the district from sources 21-12 other than taxation. After determining the amount of tax to be 21-13 levied, the board shall make the levy and certify it to the tax 21-14 assessor-collector. 21-15 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) The Tax 21-16 Code, and its subsequent amendments, governs the appraisal, 21-17 assessment, and collection of district taxes. 21-18 (b) The board may provide for the appointment of a tax 21-19 assessor-collector for the district or may contract for the 21-20 assessment and collection of taxes as provided by the Tax Code and 21-21 its subsequent amendments. 21-22 ARTICLE 9. MISCELLANEOUS 21-23 SECTION 9.01. LIMITATION ON STATE ASSISTANCE. The state may 21-24 not become obligated for the support or maintenance of a hospital 21-25 district created under this Act nor may the legislature make a 21-26 direct appropriation for the construction, maintenance, or 21-27 improvement of a facility of the district. 22-1 SECTION 9.02. EMERGENCY. The importance of this legislation 22-2 and the crowded condition of the calendars in both houses create an 22-3 emergency and an imperative public necessity that the 22-4 constitutional rule requiring bills to be read on three several 22-5 days in each house be suspended, and this rule is hereby suspended, 22-6 and that this Act take effect and be in force from and after its 22-7 passage, and it is so enacted.