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.