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