By: Haley S.B. No. 501
73R2384 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of the Polk County Hospital District;
1-4 authorizing a tax; granting the authority to issue bonds; and
1-5 granting the power of eminent domain.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1. GENERAL PROVISIONS
1-8 SECTION 1.01. DEFINITIONS. In this Act:
1-9 (1) "District" means the Polk County Hospital
1-10 District.
1-11 (2) "Board" means the board of directors of the
1-12 district.
1-13 (3) "Director" means a member of the board.
1-14 SECTION 1.02. DISTRICT AUTHORIZATION. The Polk County
1-15 Hospital District may be created and established and, if created,
1-16 shall be maintained, operated, and financed in accordance with the
1-17 provisions of Article IX, Section 9, of the Texas Constitution,
1-18 this Act, and other laws relating to hospital districts created
1-19 under Article IX, Section 9, of the Texas Constitution.
1-20 SECTION 1.03. BOUNDARIES. The boundaries of the district
1-21 are coextensive with the boundaries of Polk County, Texas.
1-22 ARTICLE 2. TEMPORARY DIRECTORS
1-23 SECTION 2.01. TEMPORARY DIRECTORS. (a) On the effective
1-24 date of this Act, the following persons are hereby appointed to the
2-1 board and shall be temporary directors of the district:
2-2 (1) Duane Adams;
2-3 (2) Doyle Chandler;
2-4 (3) Howard Daniel, Jr.;
2-5 (4) Floyd Dickens; and
2-6 (5) H. E. Striedel.
2-7 (b) The temporary directors may exercise all authority
2-8 required to organize, call, and hold an election under Article 3 of
2-9 this Act.
2-10 SECTION 2.02. VACANCY IN OFFICE. The directors remaining
2-11 after a vacancy in the office of temporary director shall fill the
2-12 vacancy by appointment by majority vote.
2-13 ARTICLE 3. CREATION OF DISTRICT
2-14 SECTION 3.01. CREATION ELECTION. The district may be
2-15 created and a tax may be authorized only if the creation and the
2-16 tax are approved by a majority of the qualified voters of the
2-17 territory of the proposed district voting at an election called and
2-18 held for that purpose.
2-19 SECTION 3.02. ORDERING ELECTION. (a) A majority of the
2-20 temporary directors may order an election to be held on the
2-21 creation of the district.
2-22 (b) On presentation of a petition for an election on the
2-23 creation of the district signed by at least 20 registered voters
2-24 residing in the boundaries of the proposed district, according to
2-25 the most recent official lists of registered voters, the temporary
2-26 directors shall order an election to be held. The election shall
2-27 be called not later than the 60th day after the date the petition
3-1 is filed with the temporary directors.
3-2 SECTION 3.03. ELECTION ORDER. The order calling the
3-3 election must state:
3-4 (1) the date of the election;
3-5 (2) the nature of the election, including the
3-6 proposition that is to appear on the ballot;
3-7 (3) the maximum tax rate to be voted on at the
3-8 election, which may not exceed 75 cents on the $100 valuation of
3-9 all taxable property in the district;
3-10 (4) the hours during which the polls will be open;
3-11 (5) the number of election precincts to be used in the
3-12 election;
3-13 (6) the polling place for each election precinct;
3-14 (7) the presiding judge and alternate presiding judge
3-15 appointed to serve at each polling place; and
3-16 (8) the names of the officers and the location where
3-17 early voting will be conducted for the election and the hours for
3-18 early voting during the early voting period.
3-19 SECTION 3.04. NOTICE. The temporary directors shall give
3-20 notice of the election by publishing a substantial copy of the
3-21 election order in a newspaper with general circulation in Polk
3-22 County once a week for two consecutive weeks. The first
3-23 publication of the notice must appear at least 35 days before the
3-24 date set for the election.
3-25 SECTION 3.05. ELECTION DATE. (a) The election shall be
3-26 held not less than 45 days nor more than 60 days after the date on
3-27 which the election is ordered.
4-1 (b) Section 41.001(a), Election Code, and its subsequent
4-2 amendments, does not apply to an election ordered under this
4-3 article.
4-4 SECTION 3.06. BALLOT PROPOSITION. The ballot for an
4-5 election on the creation of the district shall be printed to permit
4-6 voting for or against the proposition: "The creation of Polk
4-7 County Hospital District and the levy of annual taxes for hospital
4-8 purposes at a rate not to exceed ________ (insert the amount
4-9 prescribed by the election order, not to exceed 75 cents) on each
4-10 $100 valuation of all taxable property in the district."
4-11 SECTION 3.07. CANVASSING RETURNS. The temporary directors
4-12 of the district shall meet and canvass the returns of the election
4-13 and, if a majority of voters voting at the election vote in favor
4-14 of the creation of the district, the temporary directors shall pass
4-15 an order declaring the district created.
4-16 SECTION 3.08. EXPIRATION OF ACT. If the creation of the
4-17 district is not approved at an election held within 60 months after
4-18 the effective date of this Act, this Act expires.
4-19 SECTION 3.09. BOND PROPOSITION AT CREATION ELECTION. (a) A
4-20 petition for an election on the creation of the district under
4-21 Section 3.02(b) of this Act may request that a separate proposition
4-22 be submitted at the election to determine whether the board may
4-23 issue district bonds if the district is created. The petition must
4-24 specify the maximum amount of bonds to be issued and their maximum
4-25 maturity date.
4-26 (b) Even though a petition does not request submission of a
4-27 proposition on whether the board may issue bonds or even though the
5-1 temporary directors have called the election on the creation of the
5-2 district on their own motion under Section 3.02(a) of this Act, the
5-3 temporary directors may submit a separate proposition at the
5-4 election on the issuance of bonds.
5-5 (c) If a bond proposition is submitted to the voters, the
5-6 proposition to appear on the ballot shall be printed to permit
5-7 voting for or against the proposition: "The issuance of bonds for
5-8 the purposes of the Polk County Hospital District, if created, in
5-9 an amount not to exceed $________(insert amount) and to mature not
5-10 later than ____________(insert date)."
5-11 (d) The board may issue bonds as provided by this Act if the
5-12 district is created and if a majority of the votes cast at the
5-13 election favor the proposition to issue the bonds.
5-14 SECTION 3.10. EARLY VOTING CLERK. The county clerk shall
5-15 serve as the early voting clerk for an election under this article.
5-16 ARTICLE 4. DISTRICT ADMINISTRATION
5-17 SECTION 4.01. BOARD OF DIRECTORS. (a) The district shall
5-18 be governed by a board of five directors.
5-19 (b) From the time the creation of the district is approved
5-20 until the elected directors take office, the temporary directors
5-21 shall serve as directors of the district.
5-22 SECTION 4.02. INITIAL DIRECTORS' ELECTION. Directors shall
5-23 be elected at an election to be held on the first Saturday in May
5-24 following the creation of the district.
5-25 SECTION 4.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF
5-26 OFFICE; ELECTION DATE. (a) The temporary directors shall
5-27 establish four precincts from which directors are elected. The
6-1 precincts must be contiguous and substantially equal in population,
6-2 according to the most recent federal decennial census.
6-3 (b) One director shall be elected from each precinct and one
6-4 director shall be elected from the county at large.
6-5 (c) At the initial election of directors, the candidate
6-6 receiving the highest number of votes from a precinct shall be a
6-7 director for that precinct, and the candidate receiving the highest
6-8 number of votes from the county at large is the director for the
6-9 district at large.
6-10 (d) At the initial election, the candidates elected from
6-11 odd-numbered precincts and the candidate elected at large shall
6-12 serve for a term of two years, and the candidates elected from the
6-13 even-numbered precincts at that election shall serve for a term of
6-14 one year.
6-15 (e) After the initial election of directors, an election
6-16 shall be held on the first Saturday in May each year and the
6-17 appropriate number of successor directors shall be elected for
6-18 two-year terms.
6-19 SECTION 4.04. NOTICE OF ELECTION. At least 35 days before
6-20 the date of an election of directors, notice of the election shall
6-21 be published one time in a newspaper with general circulation in
6-22 the district.
6-23 SECTION 4.05. APPLICATION. (a) A person who wishes to have
6-24 the person's name printed on the ballot as a candidate for director
6-25 must file with the secretary of the board an application and a
6-26 petition signed by at least 10 registered voters of the district
6-27 asking that the person's name be placed on the ballot. The
7-1 determination of whether a person is a registered voter of the
7-2 district shall be based on the most recent official lists of
7-3 registered voters.
7-4 (b) The application must specify the precinct the candidate
7-5 wishes to represent or specify that the candidate wishes to
7-6 represent the district at large.
7-7 SECTION 4.06. QUALIFICATIONS FOR OFFICE. (a) To be
7-8 eligible to be a candidate for or to serve as a director, a person
7-9 must be a resident of the district.
7-10 (b) In addition to the qualifications required by Subsection
7-11 (a) of this section, a person who is elected from a precinct or who
7-12 is appointed to fill a vacancy for a precinct must be a resident of
7-13 that precinct.
7-14 SECTION 4.07. BOARD VACANCY. A vacancy in the office of
7-15 director shall be filled for the unexpired term by appointment by
7-16 the remaining directors.
7-17 SECTION 4.08. OFFICERS. The board shall elect from among
7-18 its members a president and a vice-president. The board shall
7-19 also appoint a secretary. The secretary need not be a director.
7-20 SECTION 4.09. OFFICERS' TERMS; VACANCY. (a) Each officer
7-21 of the board serves for a term of one year.
7-22 (b) The board shall fill a vacancy in a board office for the
7-23 unexpired term.
7-24 SECTION 4.10. COMPENSATION. Directors and officers serve
7-25 without compensation, but may be reimbursed for actual expenses
7-26 incurred in the performance of official duties. Those expenses
7-27 must be reported in the district's minute book or other district
8-1 record and must be approved by the board.
8-2 SECTION 4.11. VOTING REQUIREMENT. A concurrence of a
8-3 majority of the members of the board voting is necessary in matters
8-4 relating to the business of the district.
8-5 SECTION 4.12. PERSONNEL OF DISTRICT. (a) The board may
8-6 appoint personnel as it considers necessary and appropriate and
8-7 shall establish their general duties. Personnel may include:
8-8 (1) an administrator and assistant administrator; and
8-9 (2) one or more:
8-10 (A) attorneys;
8-11 (B) doctors, in either permanent or temporary
8-12 capacities;
8-13 (C) technicians;
8-14 (D) nurses;
8-15 (E) fiscal agents or accountants; and
8-16 (F) architects.
8-17 (b) In addition to an appointment authorized under
8-18 Subsection (a) of this section, or instead of an appointment, the
8-19 board may assign duties as it considers appropriate to an
8-20 organization whose purpose is to run the administrative operations
8-21 of the district.
8-22 SECTION 4.13. RETIREMENT BENEFITS. The board may adopt any
8-23 retirement plan for its employees authorized by law.
8-24 ARTICLE 5. POWERS AND DUTIES
8-25 SECTION 5.01. RESPONSIBILITY OF AND LIMITATION ON
8-26 GOVERNMENTAL ENTITY. (a) As soon as possible following creation
8-27 of the district, Polk County shall prepare a full and complete
9-1 inventory of all hospital property, equipment, and supplies owned
9-2 by the county and shall cause to be transferred or conveyed to the
9-3 district:
9-4 (1) title to all lands, buildings, improvements, and
9-5 equipment related to the county's hospital;
9-6 (2) operating funds and reserves for operating
9-7 expenses and funds that have been budgeted by Polk County to
9-8 provide medical care for the residents of the county for the
9-9 remainder of the fiscal year in which the district is established;
9-10 (3) taxes collected by Polk County for hospital
9-11 purposes for the year in which the district is created; and
9-12 (4) funds established for the payment of county
9-13 indebtedness assumed by the district.
9-14 (b) On or after creation of the district, Polk County may
9-15 not levy taxes or issue bonds or other obligations for hospital
9-16 purposes or for providing medical care for the residents of the
9-17 district.
9-18 SECTION 5.02. DISTRICT RESPONSIBILITIES. On creation of the
9-19 district, the district:
9-20 (1) assumes full responsibility for operating hospital
9-21 facilities and for furnishing medical and hospital care for the
9-22 district's needy inhabitants;
9-23 (2) assumes any outstanding indebtedness incurred by
9-24 Polk County for hospital care and treatment before the district's
9-25 creation; and
9-26 (3) may operate or provide for the operation of a
9-27 mobile emergency medical service.
10-1 SECTION 5.03. MANAGEMENT, CONTROL, AND ADMINISTRATION;
10-2 OPERATING AND MANAGEMENT CONTRACTS. (a) The board shall manage,
10-3 control, and administer the hospital system and the funds and
10-4 resources of the district.
10-5 (b) The board may enter into operating or management
10-6 contracts relating to hospital facilities on behalf of the
10-7 district.
10-8 SECTION 5.04. RULES, PROCEDURES, AND CONSTRUCTION CONTRACTS.
10-9 (a) The board may adopt rules governing the operation of the
10-10 hospital and hospital system and the duties, functions, and
10-11 responsibilities of the district staff and employees.
10-12 (b) The board may prescribe the method of making purchases
10-13 and expenditures by and for the district and may establish
10-14 accounting and control procedures for the district.
10-15 (c) The board may enter into construction contracts on
10-16 behalf of the district. Subchapter B, Chapter 271, Local
10-17 Government Code, and its subsequent amendments, applies and
10-18 requires competitive bidding for the letting of construction
10-19 contracts in excess of the amount specified by Section 271.024 of
10-20 that subchapter, and its subsequent amendments. Article 5160,
10-21 Revised Statutes, and its subsequent amendments, as it relates to
10-22 performance and payment bonds, applies to construction contracts
10-23 let by the district.
10-24 SECTION 5.05. HOSPITAL PROPERTY, FACILITIES, AND EQUIPMENT.
10-25 (a) The board shall determine the type, number, and location of
10-26 buildings required to establish and maintain an adequate hospital
10-27 system and the type of equipment necessary for hospital care.
11-1 (b) The board may acquire property, facilities, and
11-2 equipment for the district for use in the hospital system either by
11-3 lease or by purchase and may mortgage or pledge the property,
11-4 facilities, or equipment acquired as security for the payment of
11-5 the purchase price.
11-6 (c) The board may lease hospital facilities on behalf of the
11-7 district.
11-8 (d) The board may sell or otherwise dispose of property,
11-9 facilities, or equipment on behalf of the district.
11-10 SECTION 5.06. EMINENT DOMAIN. (a) The district may
11-11 exercise the power of eminent domain to acquire by condemnation a
11-12 fee simple or other interest in property located in the territory
11-13 of the district if the property interest is necessary to the
11-14 exercise of the rights or authority conferred by this Act.
11-15 (b) The district must exercise the power of eminent domain
11-16 in the manner provided by Chapter 21, Property Code, and its
11-17 subsequent amendments, but the district is not required to deposit
11-18 in the trial court money or a bond as provided by Section
11-19 21.021(a), Property Code, and its subsequent amendments.
11-20 (c) In a condemnation proceeding brought by the district,
11-21 the district is not required to pay in advance or give bond or
11-22 other security for costs in the trial court, to give bond for the
11-23 issuance of a temporary restraining order or a temporary
11-24 injunction, or to give bond for costs or supersedeas on an appeal
11-25 or writ of error.
11-26 SECTION 5.07. EXPENSES FOR MOVING FACILITIES OF RAILROADS
11-27 AND UTILITIES. In exercising the power of eminent domain, if the
12-1 board requires relocating, raising, lowering, rerouting, changing
12-2 the grade, or altering the construction of any railroad, highway,
12-3 pipeline, or electric transmission and electric distribution,
12-4 telegraph, or telephone lines, conduits, poles, or facilities, the
12-5 district must bear the actual cost of relocating, raising,
12-6 lowering, rerouting, changing the grade, or altering the
12-7 construction to provide comparable replacement without enhancement
12-8 of facilities, after deducting the net salvage value derived from
12-9 the old facility.
12-10 SECTION 5.08. INDIGENT CARE. (a) The district shall,
12-11 without charge, supply to a patient residing in the district the
12-12 care and treatment that the patient or a relative of the patient
12-13 who is legally responsible for the patient's support cannot pay.
12-14 (b) Not later than the beginning of each operating year, the
12-15 district shall adopt an application procedure to determine
12-16 eligibility for assistance, as provided by Section 61.053, Health
12-17 and Safety Code, and its subsequent amendments.
12-18 (c) The administrator of the district may have an inquiry
12-19 made into the financial circumstances of any patient residing in
12-20 the district and admitted to a district facility and into the
12-21 financial circumstances of a relative of the patient who is legally
12-22 responsible for the patient's support.
12-23 (d) On finding that the patient or a relative of the patient
12-24 legally responsible for the patient's support can pay for all or
12-25 any part of the care and treatment provided by the district, the
12-26 administrator shall report that finding to the board, and the board
12-27 shall issue an order directing the patient or the relative to pay
13-1 the district each week a specified amount that the individual is
13-2 able to pay.
13-3 (e) The administrator may collect money owed to the district
13-4 from the estate of the patient or from that of a relative who was
13-5 legally responsible for the patient's support in the manner
13-6 provided by law for collection of expenses in the last illness of
13-7 a deceased person.
13-8 (f) If there is a dispute relating to an individual's
13-9 ability to pay or if the administrator has any doubt concerning an
13-10 individual's ability to pay, the board shall call witnesses, hear
13-11 and resolve the question, and issue a final order. An appeal from
13-12 a final order of the board must be made to a district court in Polk
13-13 County, and the substantial evidence rule applies.
13-14 SECTION 5.09. REIMBURSEMENT FOR SERVICES. (a) The board
13-15 shall require reimbursement from a county or from a public hospital
13-16 located outside the boundaries of the district for the district's
13-17 care and treatment of a sick, diseased, or injured person of that
13-18 county or public hospital as provided by Sections 61.033 and
13-19 61.060, Health and Safety Code, and any subsequent amendments.
13-20 (b) The board shall require reimbursement from the sheriff
13-21 or police chief of Polk County or any city within its boundaries
13-22 for the district's care and treatment of a person confined in any
13-23 of their jail facilities who is not a resident of the district.
13-24 (c) The board may contract with the state or federal
13-25 government for the state or federal government to reimburse the
13-26 district for treatment of a sick, diseased, or injured person.
13-27 SECTION 5.10. SERVICE CONTRACTS. The board may contract
14-1 with a city, county, special district, or other political
14-2 subdivision of the state or with a state or federal agency for the
14-3 district to furnish a mobile emergency medical service or to
14-4 provide for the investigatory or welfare needs of inhabitants of
14-5 the district.
14-6 SECTION 5.11. GIFTS AND ENDOWMENTS. On behalf of the
14-7 district, the board may accept gifts and endowments to be held in
14-8 trust for any purpose and under any direction, limitation, or
14-9 provision prescribed in writing by the donor that is consistent
14-10 with the proper management of the district.
14-11 SECTION 5.12. AUTHORITY TO SUE AND BE SUED. The board may
14-12 sue and be sued on behalf of the district.
14-13 ARTICLE 6. DISTRICT FINANCES
14-14 SECTION 6.01. FISCAL YEAR. The district operates on the
14-15 fiscal year adopted by the board.
14-16 SECTION 6.02. ANNUAL AUDIT. The board annually shall have
14-17 an audit made of the financial condition of the district.
14-18 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit
14-19 and other district records are open to inspection during regular
14-20 business hours at the principal office of the district.
14-21 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the
14-22 district shall prepare a proposed annual budget for the district.
14-23 (b) The proposed budget must contain a complete financial
14-24 statement, including a statement of:
14-25 (1) the outstanding obligations of the district;
14-26 (2) the amount of cash on hand to the credit of each
14-27 fund of the district;
15-1 (3) the amount of money received by the district from
15-2 all sources during the previous year;
15-3 (4) the amount of money available to the district from
15-4 all sources during the ensuing year;
15-5 (5) the amount of the balances expected at the end of
15-6 the year in which the budget is being prepared;
15-7 (6) the estimated amount of revenues and balances
15-8 available to cover the proposed budget; and
15-9 (7) the estimated tax rate that will be required.
15-10 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
15-11 board shall hold a public hearing on the proposed annual budget.
15-12 (b) The board shall publish notice of the hearing in a
15-13 newspaper with general circulation in the district not later than
15-14 the 10th day before the date of the hearing.
15-15 (c) Any resident of the district is entitled to be present
15-16 and participate at the hearing.
15-17 (d) At the conclusion of the hearing, the board shall adopt
15-18 a budget by acting on the budget proposed by the administrator.
15-19 The board may make any changes in the proposed budget that in its
15-20 judgment the interest of the taxpayers demands.
15-21 (e) The budget is effective only after adoption by the
15-22 board.
15-23 SECTION 6.06. AMENDING BUDGET. After adoption, the annual
15-24 budget may be amended on the board's approval.
15-25 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be
15-26 spent for an expense not included in the annual budget or an
15-27 amendment to it.
16-1 SECTION 6.08. SWORN STATEMENT. As soon as practicable after
16-2 the close of the fiscal year, the administrator shall prepare for
16-3 the board a sworn statement of the amount of money that belongs to
16-4 the district and an account of the disbursements of that money.
16-5 SECTION 6.09. INVESTMENT LIMITATIONS. Funds of the district
16-6 may be invested in obligations and in accordance with the Public
16-7 Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil
16-8 Statutes), and its subsequent amendments, and policies of the board
16-9 of directors.
16-10 SECTION 6.10. DEPOSITORY. (a) The board shall select a
16-11 depository under the same laws that govern the selection of a
16-12 depository by a county of this state.
16-13 (b) District funds, other than those invested as provided by
16-14 Section 6.09 of this Act and those transmitted to a bank for
16-15 payment of bonds or obligations issued or assumed by the district,
16-16 shall be deposited as received with the depository and must remain
16-17 on deposit. This subsection does not limit the power of the board
16-18 to place a portion of district funds on time deposit or to purchase
16-19 certificates of deposit.
16-20 (c) Before the district deposits funds in its depository in
16-21 an amount that exceeds the maximum amount secured by the Federal
16-22 Deposit Insurance Corporation, the depository must execute a bond
16-23 or other security in an amount sufficient to secure from loss the
16-24 district funds that exceed the amount secured by the Federal
16-25 Deposit Insurance Corporation.
16-26 SECTION 6.11. ALTERNATE MEANS OF FINANCING. In addition to
16-27 the other methods of financing provided by this Act, the district
17-1 may:
17-2 (1) issue short term obligations of the district and
17-3 execute corresponding credit agreements in the manner provided by
17-4 Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
17-5 (Article 717q, Vernon's Texas Civil Statutes), and its subsequent
17-6 amendments;
17-7 (2) issue warrants or notes drawn against the current
17-8 revenues of the district for the payment of current expenses in the
17-9 manner provided by Article 1264, Revised Statutes, and its
17-10 subsequent amendments;
17-11 (3) issue promissory notes secured by anticipated tax
17-12 receipts; and
17-13 (4) issue promissory notes secured by the anticipated
17-14 sale of bonds.
17-15 ARTICLE 7. BONDS
17-16 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue
17-17 and sell general obligation bonds of the district to:
17-18 (1) purchase, construct, acquire, repair, or renovate
17-19 buildings or improvements;
17-20 (2) equip buildings or improvements for hospital
17-21 purposes; and
17-22 (3) acquire and operate a mobile emergency medical
17-23 service.
17-24 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the
17-25 general obligation bonds are issued by the district, the board
17-26 shall levy a tax.
17-27 (b) The tax shall be annually assessed and collected in
18-1 amounts sufficient to pay the principal of and interest on the
18-2 bonds as they mature.
18-3 (c) In any year, the tax, together with any other tax the
18-4 district levies, may not exceed the limit approved by the voters at
18-5 the election authorizing the levy of taxes.
18-6 SECTION 7.03. BOND ELECTION. (a) The district may issue
18-7 general obligation bonds for the purposes stated in Section 7.01 of
18-8 this Act only if the bonds are authorized by a majority of the
18-9 qualified voters of the district voting on the matter of issuing
18-10 the bonds at the creation election or at an election called and
18-11 held for that purpose.
18-12 (b) The board may order a bond election after the district
18-13 is created. The order calling the election must state the nature
18-14 and date of the election, the hours during which the polls will be
18-15 open, the location of the polling places, the amount of bonds to be
18-16 authorized, and the maximum maturity of the bonds.
18-17 (c) Notice of a bond election shall be given as provided by
18-18 Article 704, Revised Statutes, and its subsequent amendments.
18-19 (d) The board shall canvass the returns and declare the
18-20 results of the election.
18-21 SECTION 7.04. REVENUE BONDS. (a) The board may issue
18-22 revenue bonds to:
18-23 (1) purchase, construct, acquire, repair, equip, or
18-24 renovate buildings or improvements for hospital purposes;
18-25 (2) acquire sites to be used for hospital purposes;
18-26 and
18-27 (3) acquire and operate a mobile emergency medical
19-1 service to assist the district in carrying out its hospital
19-2 purposes.
19-3 (b) The bonds may be payable from and secured by a pledge of
19-4 all or part of the revenues derived from the operation of the
19-5 district's hospital system. The bonds may be additionally secured
19-6 by a mortgage or deed of trust lien on all or part of the
19-7 district's property.
19-8 (c) The revenue bonds shall be issued in accordance with the
19-9 provisions of Chapter 264, Health and Safety Code, and its
19-10 subsequent amendments, relating to the issuance of revenue bonds by
19-11 county hospital authorities.
19-12 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the
19-13 district may be issued to refund and pay off an outstanding
19-14 indebtedness the district has issued or assumed.
19-15 (b) The refunding bonds must be issued in the manner
19-16 provided by Chapter 503, Acts of the 54th Legislature, Regular
19-17 Session, 1955 (Article 717k, Vernon's Texas Civil Statutes) or
19-18 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
19-19 (Article 717k-3, Vernon's Texas Civil Statutes), and any subsequent
19-20 amendments.
19-21 (c) The refunding bonds may be sold and the proceeds applied
19-22 to the payment of outstanding indebtedness or may be exchanged in
19-23 whole or in part for not less than a similar principal amount of
19-24 outstanding indebtedness, as authorized by the statute under which
19-25 they are issued.
19-26 SECTION 7.06. BOND PROCEDURES ACT. To the extent not
19-27 inconsistent with other provisions governing the issuance of bonds
20-1 under this Act, the district's bonds will be issued in the manner
20-2 and form required by the Bond Procedures Act of 1981 (Article
20-3 717k-6, Vernon's Texas Civil Statutes), and its subsequent
20-4 amendments.
20-5 SECTION 7.07. BONDS AS INVESTMENTS. District bonds and
20-6 indebtedness assumed by the district are legal and authorized
20-7 investments for banks, savings banks, trust companies, savings and
20-8 loan associations, insurance companies, fiduciaries, trustees,
20-9 guardians, and sinking funds of cities, counties, school districts,
20-10 and other political subdivisions of the state and other public
20-11 funds of the state and its agencies, including the permanent school
20-12 fund.
20-13 SECTION 7.08. BONDS AS SECURITY FOR DEPOSITS. District
20-14 bonds are eligible to secure deposits of public funds of the state
20-15 and of cities, counties, school districts, and other political
20-16 subdivisions of the state. The bonds are lawful and sufficient
20-17 security for deposits to the extent of their par value.
20-18 SECTION 7.09. TAX STATUS OF BONDS. Since the district
20-19 created under this Act is a public entity performing an essential
20-20 public function, bonds issued by the district, any transaction
20-21 relating to the bonds, and profits made in the sale of the bonds
20-22 are free from taxation by the state or by any city, county, special
20-23 district, or other political subdivision of the state.
20-24 ARTICLE 8. TAXES
20-25 SECTION 8.01. LEVY OF TAXES. (a) The board may annually
20-26 impose property taxes in an amount not to exceed the limit approved
20-27 by the voters at the election authorizing the levy of taxes.
21-1 (b) The tax rate for all purposes may not exceed that
21-2 authorized by the voters at an election held for that purpose.
21-3 (c) The taxes may be used to pay for indebtedness issued or
21-4 assumed by the district, maintenance and operating expenses of the
21-5 district, and for any other purpose authorized by the voters at the
21-6 election held for that purpose.
21-7 (d) The district may not impose taxes to pay the principal
21-8 of or interest on revenue bonds.
21-9 SECTION 8.02. BOARD AUTHORITY. The board may impose taxes
21-10 for the entire year in which the district is created.
21-11 SECTION 8.03. ADOPTING TAX RATE. In adopting the tax rate,
21-12 the board shall consider the income of the district from sources
21-13 other than taxation. After determining the amount of tax to be
21-14 levied, the board shall make the levy and certify it to the tax
21-15 assessor-collector.
21-16 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) The Tax
21-17 Code, and its subsequent amendments, governs the appraisal,
21-18 assessment, and collection of district taxes.
21-19 (b) The board may provide for the appointment of a tax
21-20 assessor-collector for the district or may contract for the
21-21 assessment and collection of taxes as provided by the Tax Code and
21-22 its subsequent amendments.
21-23 ARTICLE 9. MISCELLANEOUS
21-24 SECTION 9.01. LIMITATION ON STATE ASSISTANCE. The state may
21-25 not become obligated for the support or maintenance of a hospital
21-26 district created under this Act, nor may the legislature make a
21-27 direct appropriation for the construction, maintenance, or
22-1 improvement of a facility of the district.
22-2 SECTION 9.02. EMERGENCY. The importance of this legislation
22-3 and the crowded condition of the calendars in both houses create an
22-4 emergency and an imperative public necessity that the
22-5 constitutional rule requiring bills to be read on three several
22-6 days in each house be suspended, and this rule is hereby suspended,
22-7 and that this Act take effect and be in force from and after its
22-8 passage, and it is so enacted.