1-1 By: Haley S.B. No. 501
1-2 (In the Senate - Filed February 26, 1993; March 1, 1993, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; March 3, 1993, reported favorably by the following vote:
1-5 Yeas 11, Nays 0; March 3, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Armbrister x
1-9 Leedom x
1-10 Carriker x
1-11 Henderson x
1-12 Madla x
1-13 Moncrief x
1-14 Patterson x
1-15 Rosson x
1-16 Shapiro x
1-17 Wentworth x
1-18 Whitmire x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the creation, administration, powers, duties,
1-22 operation, and financing of the Polk County Hospital District;
1-23 authorizing a tax; granting the authority to issue bonds; and
1-24 granting the power of eminent domain.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 ARTICLE 1. GENERAL PROVISIONS
1-27 SECTION 1.01. DEFINITIONS. In this Act:
1-28 (1) "District" means the Polk County Hospital
1-29 District.
1-30 (2) "Board" means the board of directors of the
1-31 district.
1-32 (3) "Director" means a member of the board.
1-33 SECTION 1.02. DISTRICT AUTHORIZATION. The Polk County
1-34 Hospital District may be created and established and, if created,
1-35 shall be maintained, operated, and financed in accordance with the
1-36 provisions of Article IX, Section 9, of the Texas Constitution,
1-37 this Act, and other laws relating to hospital districts created
1-38 under Article IX, Section 9, of the Texas Constitution.
1-39 SECTION 1.03. BOUNDARIES. The boundaries of the district
1-40 are coextensive with the boundaries of Polk County, Texas.
1-41 ARTICLE 2. TEMPORARY DIRECTORS
1-42 SECTION 2.01. TEMPORARY DIRECTORS. (a) On the effective
1-43 date of this Act, the following persons are hereby appointed to the
1-44 board and shall be temporary directors of the district:
1-45 (1) Duane Adams;
1-46 (2) Doyle Chandler;
1-47 (3) Howard Daniel, Jr.;
1-48 (4) Floyd Dickens; and
1-49 (5) H. E. Striedel.
1-50 (b) The temporary directors may exercise all authority
1-51 required to organize, call, and hold an election under Article 3 of
1-52 this Act.
1-53 SECTION 2.02. VACANCY IN OFFICE. The directors remaining
1-54 after a vacancy in the office of temporary director shall fill the
1-55 vacancy by appointment by majority vote.
1-56 ARTICLE 3. CREATION OF DISTRICT
1-57 SECTION 3.01. CREATION ELECTION. The district may be
1-58 created and a tax may be authorized only if the creation and the
1-59 tax are approved by a majority of the qualified voters of the
1-60 territory of the proposed district voting at an election called and
1-61 held for that purpose.
1-62 SECTION 3.02. ORDERING ELECTION. (a) A majority of the
1-63 temporary directors may order an election to be held on the
1-64 creation of the district.
1-65 (b) On presentation of a petition for an election on the
1-66 creation of the district signed by at least 20 registered voters
1-67 residing in the boundaries of the proposed district, according to
1-68 the most recent official lists of registered voters, the temporary
2-1 directors shall order an election to be held. The election shall
2-2 be called not later than the 60th day after the date the petition
2-3 is filed with the temporary directors.
2-4 SECTION 3.03. ELECTION ORDER. The order calling the
2-5 election must state:
2-6 (1) the date of the election;
2-7 (2) the nature of the election, including the
2-8 proposition that is to appear on the ballot;
2-9 (3) the maximum tax rate to be voted on at the
2-10 election, which may not exceed 75 cents on the $100 valuation of
2-11 all taxable property in the district;
2-12 (4) the hours during which the polls will be open;
2-13 (5) the number of election precincts to be used in the
2-14 election;
2-15 (6) the polling place for each election precinct;
2-16 (7) the presiding judge and alternate presiding judge
2-17 appointed to serve at each polling place; and
2-18 (8) the names of the officers and the location where
2-19 early voting will be conducted for the election and the hours for
2-20 early voting during the early voting period.
2-21 SECTION 3.04. NOTICE. The temporary directors shall give
2-22 notice of the election by publishing a substantial copy of the
2-23 election order in a newspaper with general circulation in Polk
2-24 County once a week for two consecutive weeks. The first
2-25 publication of the notice must appear at least 35 days before the
2-26 date set for the election.
2-27 SECTION 3.05. ELECTION DATE. (a) The election shall be
2-28 held not less than 45 days nor more than 60 days after the date on
2-29 which the election is ordered.
2-30 (b) Section 41.001(a), Election Code, and its subsequent
2-31 amendments, does not apply to an election ordered under this
2-32 article.
2-33 SECTION 3.06. BALLOT PROPOSITION. The ballot for an
2-34 election on the creation of the district shall be printed to permit
2-35 voting for or against the proposition: "The creation of Polk
2-36 County Hospital District and the levy of annual taxes for hospital
2-37 purposes at a rate not to exceed ________ (insert the amount
2-38 prescribed by the election order, not to exceed 75 cents) on each
2-39 $100 valuation of all taxable property in the district."
2-40 SECTION 3.07. CANVASSING RETURNS. The temporary directors
2-41 of the district shall meet and canvass the returns of the election
2-42 and, if a majority of voters voting at the election vote in favor
2-43 of the creation of the district, the temporary directors shall pass
2-44 an order declaring the district created.
2-45 SECTION 3.08. EXPIRATION OF ACT. If the creation of the
2-46 district is not approved at an election held within 60 months after
2-47 the effective date of this Act, this Act expires.
2-48 SECTION 3.09. BOND PROPOSITION AT CREATION ELECTION. (a) A
2-49 petition for an election on the creation of the district under
2-50 Section 3.02(b) of this Act may request that a separate proposition
2-51 be submitted at the election to determine whether the board may
2-52 issue district bonds if the district is created. The petition must
2-53 specify the maximum amount of bonds to be issued and their maximum
2-54 maturity date.
2-55 (b) Even though a petition does not request submission of a
2-56 proposition on whether the board may issue bonds or even though the
2-57 temporary directors have called the election on the creation of the
2-58 district on their own motion under Section 3.02(a) of this Act, the
2-59 temporary directors may submit a separate proposition at the
2-60 election on the issuance of bonds.
2-61 (c) If a bond proposition is submitted to the voters, the
2-62 proposition to appear on the ballot shall be printed to permit
2-63 voting for or against the proposition: "The issuance of bonds for
2-64 the purposes of the Polk County Hospital District, if created, in
2-65 an amount not to exceed $________(insert amount) and to mature not
2-66 later than ____________(insert date)."
2-67 (d) The board may issue bonds as provided by this Act if the
2-68 district is created and if a majority of the votes cast at the
2-69 election favor the proposition to issue the bonds.
2-70 SECTION 3.10. EARLY VOTING CLERK. The county clerk shall
3-1 serve as the early voting clerk for an election under this article.
3-2 ARTICLE 4. DISTRICT ADMINISTRATION
3-3 SECTION 4.01. BOARD OF DIRECTORS. (a) The district shall
3-4 be governed by a board of five directors.
3-5 (b) From the time the creation of the district is approved
3-6 until the elected directors take office, the temporary directors
3-7 shall serve as directors of the district.
3-8 SECTION 4.02. INITIAL DIRECTORS' ELECTION. Directors shall
3-9 be elected at an election to be held on the first Saturday in May
3-10 following the creation of the district.
3-11 SECTION 4.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF
3-12 OFFICE; ELECTION DATE. (a) The temporary directors shall
3-13 establish four precincts from which directors are elected. The
3-14 precincts must be contiguous and substantially equal in population,
3-15 according to the most recent federal decennial census.
3-16 (b) One director shall be elected from each precinct and one
3-17 director shall be elected from the county at large.
3-18 (c) At the initial election of directors, the candidate
3-19 receiving the highest number of votes from a precinct shall be a
3-20 director for that precinct, and the candidate receiving the highest
3-21 number of votes from the county at large is the director for the
3-22 district at large.
3-23 (d) At the initial election, the candidates elected from
3-24 odd-numbered precincts and the candidate elected at large shall
3-25 serve for a term of two years, and the candidates elected from the
3-26 even-numbered precincts at that election shall serve for a term of
3-27 one year.
3-28 (e) After the initial election of directors, an election
3-29 shall be held on the first Saturday in May each year and the
3-30 appropriate number of successor directors shall be elected for
3-31 two-year terms.
3-32 SECTION 4.04. NOTICE OF ELECTION. At least 35 days before
3-33 the date of an election of directors, notice of the election shall
3-34 be published one time in a newspaper with general circulation in
3-35 the district.
3-36 SECTION 4.05. APPLICATION. (a) A person who wishes to have
3-37 the person's name printed on the ballot as a candidate for director
3-38 must file with the secretary of the board an application and a
3-39 petition signed by at least 10 registered voters of the district
3-40 asking that the person's name be placed on the ballot. The
3-41 determination of whether a person is a registered voter of the
3-42 district shall be based on the most recent official lists of
3-43 registered voters.
3-44 (b) The application must specify the precinct the candidate
3-45 wishes to represent or specify that the candidate wishes to
3-46 represent the district at large.
3-47 SECTION 4.06. QUALIFICATIONS FOR OFFICE. (a) To be
3-48 eligible to be a candidate for or to serve as a director, a person
3-49 must be a resident of the district.
3-50 (b) In addition to the qualifications required by Subsection
3-51 (a) of this section, a person who is elected from a precinct or who
3-52 is appointed to fill a vacancy for a precinct must be a resident of
3-53 that precinct.
3-54 SECTION 4.07. BOARD VACANCY. A vacancy in the office of
3-55 director shall be filled for the unexpired term by appointment by
3-56 the remaining directors.
3-57 SECTION 4.08. OFFICERS. The board shall elect from among
3-58 its members a president and a vice-president. The board shall also
3-59 appoint a secretary. The secretary need not be a director.
3-60 SECTION 4.09. OFFICERS' TERMS; VACANCY. (a) Each officer
3-61 of the board serves for a term of one year.
3-62 (b) The board shall fill a vacancy in a board office for the
3-63 unexpired term.
3-64 SECTION 4.10. COMPENSATION. Directors and officers serve
3-65 without compensation, but may be reimbursed for actual expenses
3-66 incurred in the performance of official duties. Those expenses
3-67 must be reported in the district's minute book or other district
3-68 record and must be approved by the board.
3-69 SECTION 4.11. VOTING REQUIREMENT. A concurrence of a
3-70 majority of the members of the board voting is necessary in matters
4-1 relating to the business of the district.
4-2 SECTION 4.12. PERSONNEL OF DISTRICT. (a) The board may
4-3 appoint personnel as it considers necessary and appropriate and
4-4 shall establish their general duties. Personnel may include:
4-5 (1) an administrator and assistant administrator; and
4-6 (2) one or more:
4-7 (A) attorneys;
4-8 (B) doctors, in either permanent or temporary
4-9 capacities;
4-10 (C) technicians;
4-11 (D) nurses;
4-12 (E) fiscal agents or accountants; and
4-13 (F) architects.
4-14 (b) In addition to an appointment authorized under
4-15 Subsection (a) of this section, or instead of an appointment, the
4-16 board may assign duties as it considers appropriate to an
4-17 organization whose purpose is to run the administrative operations
4-18 of the district.
4-19 SECTION 4.13. RETIREMENT BENEFITS. The board may adopt any
4-20 retirement plan for its employees authorized by law.
4-21 ARTICLE 5. POWERS AND DUTIES
4-22 SECTION 5.01. RESPONSIBILITY OF AND LIMITATION ON
4-23 GOVERNMENTAL ENTITY. (a) As soon as possible following creation
4-24 of the district, Polk County shall prepare a full and complete
4-25 inventory of all hospital property, equipment, and supplies owned
4-26 by the county and shall cause to be transferred or conveyed to the
4-27 district:
4-28 (1) title to all lands, buildings, improvements, and
4-29 equipment related to the county's hospital;
4-30 (2) operating funds and reserves for operating
4-31 expenses and funds that have been budgeted by Polk County to
4-32 provide medical care for the residents of the county for the
4-33 remainder of the fiscal year in which the district is established;
4-34 (3) taxes collected by Polk County for hospital
4-35 purposes for the year in which the district is created; and
4-36 (4) funds established for the payment of county
4-37 indebtedness assumed by the district.
4-38 (b) On or after creation of the district, Polk County may
4-39 not levy taxes or issue bonds or other obligations for hospital
4-40 purposes or for providing medical care for the residents of the
4-41 district.
4-42 SECTION 5.02. DISTRICT RESPONSIBILITIES. On creation of the
4-43 district, the district:
4-44 (1) assumes full responsibility for operating hospital
4-45 facilities and for furnishing medical and hospital care for the
4-46 district's needy inhabitants;
4-47 (2) assumes any outstanding indebtedness incurred by
4-48 Polk County for hospital care and treatment before the district's
4-49 creation; and
4-50 (3) may operate or provide for the operation of a
4-51 mobile emergency medical service.
4-52 SECTION 5.03. MANAGEMENT, CONTROL, AND ADMINISTRATION;
4-53 OPERATING AND MANAGEMENT CONTRACTS. (a) The board shall manage,
4-54 control, and administer the hospital system and the funds and
4-55 resources of the district.
4-56 (b) The board may enter into operating or management
4-57 contracts relating to hospital facilities on behalf of the
4-58 district.
4-59 SECTION 5.04. RULES, PROCEDURES, AND CONSTRUCTION CONTRACTS.
4-60 (a) The board may adopt rules governing the operation of the
4-61 hospital and hospital system and the duties, functions, and
4-62 responsibilities of the district staff and employees.
4-63 (b) The board may prescribe the method of making purchases
4-64 and expenditures by and for the district and may establish
4-65 accounting and control procedures for the district.
4-66 (c) The board may enter into construction contracts on
4-67 behalf of the district. Subchapter B, Chapter 271, Local
4-68 Government Code, and its subsequent amendments, applies and
4-69 requires competitive bidding for the letting of construction
4-70 contracts in excess of the amount specified by Section 271.024 of
5-1 that subchapter, and its subsequent amendments. Article 5160,
5-2 Revised Statutes, and its subsequent amendments, as it relates to
5-3 performance and payment bonds, applies to construction contracts
5-4 let by the district.
5-5 SECTION 5.05. HOSPITAL PROPERTY, FACILITIES, AND EQUIPMENT.
5-6 (a) The board shall determine the type, number, and location of
5-7 buildings required to establish and maintain an adequate hospital
5-8 system and the type of equipment necessary for hospital care.
5-9 (b) The board may acquire property, facilities, and
5-10 equipment for the district for use in the hospital system either by
5-11 lease or by purchase and may mortgage or pledge the property,
5-12 facilities, or equipment acquired as security for the payment of
5-13 the purchase price.
5-14 (c) The board may lease hospital facilities on behalf of the
5-15 district.
5-16 (d) The board may sell or otherwise dispose of property,
5-17 facilities, or equipment on behalf of the district.
5-18 SECTION 5.06. EMINENT DOMAIN. (a) The district may
5-19 exercise the power of eminent domain to acquire by condemnation a
5-20 fee simple or other interest in property located in the territory
5-21 of the district if the property interest is necessary to the
5-22 exercise of the rights or authority conferred by this Act.
5-23 (b) The district must exercise the power of eminent domain
5-24 in the manner provided by Chapter 21, Property Code, and its
5-25 subsequent amendments, but the district is not required to deposit
5-26 in the trial court money or a bond as provided by Section
5-27 21.021(a), Property Code, and its subsequent amendments.
5-28 (c) In a condemnation proceeding brought by the district,
5-29 the district is not required to pay in advance or give bond or
5-30 other security for costs in the trial court, to give bond for the
5-31 issuance of a temporary restraining order or a temporary
5-32 injunction, or to give bond for costs or supersedeas on an appeal
5-33 or writ of error.
5-34 SECTION 5.07. EXPENSES FOR MOVING FACILITIES OF RAILROADS
5-35 AND UTILITIES. In exercising the power of eminent domain, if the
5-36 board requires relocating, raising, lowering, rerouting, changing
5-37 the grade, or altering the construction of any railroad, highway,
5-38 pipeline, or electric transmission and electric distribution,
5-39 telegraph, or telephone lines, conduits, poles, or facilities, the
5-40 district must bear the actual cost of relocating, raising,
5-41 lowering, rerouting, changing the grade, or altering the
5-42 construction to provide comparable replacement without enhancement
5-43 of facilities, after deducting the net salvage value derived from
5-44 the old facility.
5-45 SECTION 5.08. INDIGENT CARE. (a) The district shall,
5-46 without charge, supply to a patient residing in the district the
5-47 care and treatment that the patient or a relative of the patient
5-48 who is legally responsible for the patient's support cannot pay.
5-49 (b) Not later than the beginning of each operating year, the
5-50 district shall adopt an application procedure to determine
5-51 eligibility for assistance, as provided by Section 61.053, Health
5-52 and Safety Code, and its subsequent amendments.
5-53 (c) The administrator of the district may have an inquiry
5-54 made into the financial circumstances of any patient residing in
5-55 the district and admitted to a district facility and into the
5-56 financial circumstances of a relative of the patient who is legally
5-57 responsible for the patient's support.
5-58 (d) On finding that the patient or a relative of the patient
5-59 legally responsible for the patient's support can pay for all or
5-60 any part of the care and treatment provided by the district, the
5-61 administrator shall report that finding to the board, and the board
5-62 shall issue an order directing the patient or the relative to pay
5-63 the district each week a specified amount that the individual is
5-64 able to pay.
5-65 (e) The administrator may collect money owed to the district
5-66 from the estate of the patient or from that of a relative who was
5-67 legally responsible for the patient's support in the manner
5-68 provided by law for collection of expenses in the last illness of
5-69 a deceased person.
5-70 (f) If there is a dispute relating to an individual's
6-1 ability to pay or if the administrator has any doubt concerning an
6-2 individual's ability to pay, the board shall call witnesses, hear
6-3 and resolve the question, and issue a final order. An appeal from
6-4 a final order of the board must be made to a district court in Polk
6-5 County, and the substantial evidence rule applies.
6-6 SECTION 5.09. REIMBURSEMENT FOR SERVICES. (a) The board
6-7 shall require reimbursement from a county or from a public hospital
6-8 located outside the boundaries of the district for the district's
6-9 care and treatment of a sick, diseased, or injured person of that
6-10 county or public hospital as provided by Sections 61.033 and
6-11 61.060, Health and Safety Code, and any subsequent amendments.
6-12 (b) The board shall require reimbursement from the sheriff
6-13 or police chief of Polk County or any city within its boundaries
6-14 for the district's care and treatment of a person confined in any
6-15 of their jail facilities who is not a resident of the district.
6-16 (c) The board may contract with the state or federal
6-17 government for the state or federal government to reimburse the
6-18 district for treatment of a sick, diseased, or injured person.
6-19 SECTION 5.10. SERVICE CONTRACTS. The board may contract
6-20 with a city, county, special district, or other political
6-21 subdivision of the state or with a state or federal agency for the
6-22 district to furnish a mobile emergency medical service or to
6-23 provide for the investigatory or welfare needs of inhabitants of
6-24 the district.
6-25 SECTION 5.11. GIFTS AND ENDOWMENTS. On behalf of the
6-26 district, the board may accept gifts and endowments to be held in
6-27 trust for any purpose and under any direction, limitation, or
6-28 provision prescribed in writing by the donor that is consistent
6-29 with the proper management of the district.
6-30 SECTION 5.12. AUTHORITY TO SUE AND BE SUED. The board may
6-31 sue and be sued on behalf of the district.
6-32 ARTICLE 6. DISTRICT FINANCES
6-33 SECTION 6.01. FISCAL YEAR. The district operates on the
6-34 fiscal year adopted by the board.
6-35 SECTION 6.02. ANNUAL AUDIT. The board annually shall have
6-36 an audit made of the financial condition of the district.
6-37 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit
6-38 and other district records are open to inspection during regular
6-39 business hours at the principal office of the district.
6-40 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the
6-41 district shall prepare a proposed annual budget for the district.
6-42 (b) The proposed budget must contain a complete financial
6-43 statement, including a statement of:
6-44 (1) the outstanding obligations of the district;
6-45 (2) the amount of cash on hand to the credit of each
6-46 fund of the district;
6-47 (3) the amount of money received by the district from
6-48 all sources during the previous year;
6-49 (4) the amount of money available to the district from
6-50 all sources during the ensuing year;
6-51 (5) the amount of the balances expected at the end of
6-52 the year in which the budget is being prepared;
6-53 (6) the estimated amount of revenues and balances
6-54 available to cover the proposed budget; and
6-55 (7) the estimated tax rate that will be required.
6-56 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
6-57 board shall hold a public hearing on the proposed annual budget.
6-58 (b) The board shall publish notice of the hearing in a
6-59 newspaper with general circulation in the district not later than
6-60 the 10th day before the date of the hearing.
6-61 (c) Any resident of the district is entitled to be present
6-62 and participate at the hearing.
6-63 (d) At the conclusion of the hearing, the board shall adopt
6-64 a budget by acting on the budget proposed by the administrator.
6-65 The board may make any changes in the proposed budget that in its
6-66 judgment the interest of the taxpayers demands.
6-67 (e) The budget is effective only after adoption by the
6-68 board.
6-69 SECTION 6.06. AMENDING BUDGET. After adoption, the annual
6-70 budget may be amended on the board's approval.
7-1 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be
7-2 spent for an expense not included in the annual budget or an
7-3 amendment to it.
7-4 SECTION 6.08. SWORN STATEMENT. As soon as practicable after
7-5 the close of the fiscal year, the administrator shall prepare for
7-6 the board a sworn statement of the amount of money that belongs to
7-7 the district and an account of the disbursements of that money.
7-8 SECTION 6.09. INVESTMENT LIMITATIONS. Funds of the district
7-9 may be invested in obligations and in accordance with the Public
7-10 Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil
7-11 Statutes), and its subsequent amendments, and policies of the board
7-12 of directors.
7-13 SECTION 6.10. DEPOSITORY. (a) The board shall select a
7-14 depository under the same laws that govern the selection of a
7-15 depository by a county of this state.
7-16 (b) District funds, other than those invested as provided by
7-17 Section 6.09 of this Act and those transmitted to a bank for
7-18 payment of bonds or obligations issued or assumed by the district,
7-19 shall be deposited as received with the depository and must remain
7-20 on deposit. This subsection does not limit the power of the board
7-21 to place a portion of district funds on time deposit or to purchase
7-22 certificates of deposit.
7-23 (c) Before the district deposits funds in its depository in
7-24 an amount that exceeds the maximum amount secured by the Federal
7-25 Deposit Insurance Corporation, the depository must execute a bond
7-26 or other security in an amount sufficient to secure from loss the
7-27 district funds that exceed the amount secured by the Federal
7-28 Deposit Insurance Corporation.
7-29 SECTION 6.11. ALTERNATE MEANS OF FINANCING. In addition to
7-30 the other methods of financing provided by this Act, the district
7-31 may:
7-32 (1) issue short term obligations of the district and
7-33 execute corresponding credit agreements in the manner provided by
7-34 Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
7-35 (Article 717q, Vernon's Texas Civil Statutes), and its subsequent
7-36 amendments;
7-37 (2) issue warrants or notes drawn against the current
7-38 revenues of the district for the payment of current expenses in the
7-39 manner provided by Article 1264, Revised Statutes, and its
7-40 subsequent amendments;
7-41 (3) issue promissory notes secured by anticipated tax
7-42 receipts; and
7-43 (4) issue promissory notes secured by the anticipated
7-44 sale of bonds.
7-45 ARTICLE 7. BONDS
7-46 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue
7-47 and sell general obligation bonds of the district to:
7-48 (1) purchase, construct, acquire, repair, or renovate
7-49 buildings or improvements;
7-50 (2) equip buildings or improvements for hospital
7-51 purposes; and
7-52 (3) acquire and operate a mobile emergency medical
7-53 service.
7-54 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the
7-55 general obligation bonds are issued by the district, the board
7-56 shall levy a tax.
7-57 (b) The tax shall be annually assessed and collected in
7-58 amounts sufficient to pay the principal of and interest on the
7-59 bonds as they mature.
7-60 (c) In any year, the tax, together with any other tax the
7-61 district levies, may not exceed the limit approved by the voters at
7-62 the election authorizing the levy of taxes.
7-63 SECTION 7.03. BOND ELECTION. (a) The district may issue
7-64 general obligation bonds for the purposes stated in Section 7.01 of
7-65 this Act only if the bonds are authorized by a majority of the
7-66 qualified voters of the district voting on the matter of issuing
7-67 the bonds at the creation election or at an election called and
7-68 held for that purpose.
7-69 (b) The board may order a bond election after the district
7-70 is created. The order calling the election must state the nature
8-1 and date of the election, the hours during which the polls will be
8-2 open, the location of the polling places, the amount of bonds to be
8-3 authorized, and the maximum maturity of the bonds.
8-4 (c) Notice of a bond election shall be given as provided by
8-5 Article 704, Revised Statutes, and its subsequent amendments.
8-6 (d) The board shall canvass the returns and declare the
8-7 results of the election.
8-8 SECTION 7.04. REVENUE BONDS. (a) The board may issue
8-9 revenue bonds to:
8-10 (1) purchase, construct, acquire, repair, equip, or
8-11 renovate buildings or improvements for hospital purposes;
8-12 (2) acquire sites to be used for hospital purposes;
8-13 and
8-14 (3) acquire and operate a mobile emergency medical
8-15 service to assist the district in carrying out its hospital
8-16 purposes.
8-17 (b) The bonds may be payable from and secured by a pledge of
8-18 all or part of the revenues derived from the operation of the
8-19 district's hospital system. The bonds may be additionally secured
8-20 by a mortgage or deed of trust lien on all or part of the
8-21 district's property.
8-22 (c) The revenue bonds shall be issued in accordance with the
8-23 provisions of Chapter 264, Health and Safety Code, and its
8-24 subsequent amendments, relating to the issuance of revenue bonds by
8-25 county hospital authorities.
8-26 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the
8-27 district may be issued to refund and pay off an outstanding
8-28 indebtedness the district has issued or assumed.
8-29 (b) The refunding bonds must be issued in the manner
8-30 provided by Chapter 503, Acts of the 54th Legislature, Regular
8-31 Session, 1955 (Article 717k, Vernon's Texas Civil Statutes) or
8-32 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
8-33 (Article 717k-3, Vernon's Texas Civil Statutes), and any subsequent
8-34 amendments.
8-35 (c) The refunding bonds may be sold and the proceeds applied
8-36 to the payment of outstanding indebtedness or may be exchanged in
8-37 whole or in part for not less than a similar principal amount of
8-38 outstanding indebtedness, as authorized by the statute under which
8-39 they are issued.
8-40 SECTION 7.06. BOND PROCEDURES ACT. To the extent not
8-41 inconsistent with other provisions governing the issuance of bonds
8-42 under this Act, the district's bonds will be issued in the manner
8-43 and form required by the Bond Procedures Act of 1981 (Article
8-44 717k-6, Vernon's Texas Civil Statutes), and its subsequent
8-45 amendments.
8-46 SECTION 7.07. BONDS AS INVESTMENTS. District bonds and
8-47 indebtedness assumed by the district are legal and authorized
8-48 investments for banks, savings banks, trust companies, savings and
8-49 loan associations, insurance companies, fiduciaries, trustees,
8-50 guardians, and sinking funds of cities, counties, school districts,
8-51 and other political subdivisions of the state and other public
8-52 funds of the state and its agencies, including the permanent school
8-53 fund.
8-54 SECTION 7.08. BONDS AS SECURITY FOR DEPOSITS. District
8-55 bonds are eligible to secure deposits of public funds of the state
8-56 and of cities, counties, school districts, and other political
8-57 subdivisions of the state. The bonds are lawful and sufficient
8-58 security for deposits to the extent of their par value.
8-59 SECTION 7.09. TAX STATUS OF BONDS. Since the district
8-60 created under this Act is a public entity performing an essential
8-61 public function, bonds issued by the district, any transaction
8-62 relating to the bonds, and profits made in the sale of the bonds
8-63 are free from taxation by the state or by any city, county, special
8-64 district, or other political subdivision of the state.
8-65 ARTICLE 8. TAXES
8-66 SECTION 8.01. LEVY OF TAXES. (a) The board may annually
8-67 impose property taxes in an amount not to exceed the limit approved
8-68 by the voters at the election authorizing the levy of taxes.
8-69 (b) The tax rate for all purposes may not exceed that
8-70 authorized by the voters at an election held for that purpose.
9-1 (c) The taxes may be used to pay for indebtedness issued or
9-2 assumed by the district, maintenance and operating expenses of the
9-3 district, and for any other purpose authorized by the voters at the
9-4 election held for that purpose.
9-5 (d) The district may not impose taxes to pay the principal
9-6 of or interest on revenue bonds.
9-7 SECTION 8.02. BOARD AUTHORITY. The board may impose taxes
9-8 for the entire year in which the district is created.
9-9 SECTION 8.03. ADOPTING TAX RATE. In adopting the tax rate,
9-10 the board shall consider the income of the district from sources
9-11 other than taxation. After determining the amount of tax to be
9-12 levied, the board shall make the levy and certify it to the tax
9-13 assessor-collector.
9-14 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) The Tax
9-15 Code, and its subsequent amendments, governs the appraisal,
9-16 assessment, and collection of district taxes.
9-17 (b) The board may provide for the appointment of a tax
9-18 assessor-collector for the district or may contract for the
9-19 assessment and collection of taxes as provided by the Tax Code and
9-20 its subsequent amendments.
9-21 ARTICLE 9. MISCELLANEOUS
9-22 SECTION 9.01. LIMITATION ON STATE ASSISTANCE. The state may
9-23 not become obligated for the support or maintenance of a hospital
9-24 district created under this Act, nor may the legislature make a
9-25 direct appropriation for the construction, maintenance, or
9-26 improvement of a facility of the district.
9-27 SECTION 9.02. EMERGENCY. The importance of this legislation
9-28 and the crowded condition of the calendars in both houses create an
9-29 emergency and an imperative public necessity that the
9-30 constitutional rule requiring bills to be read on three several
9-31 days in each house be suspended, and this rule is hereby suspended,
9-32 and that this Act take effect and be in force from and after its
9-33 passage, and it is so enacted.
9-34 * * * * *
9-35 Austin,
9-36 Texas
9-37 March 3, 1993
9-38 Hon. Bob Bullock
9-39 President of the Senate
9-40 Sir:
9-41 We, your Committee on Intergovernmental Relations to which was
9-42 referred S.B. No. 501, have had the same under consideration, and I
9-43 am instructed to report it back to the Senate with the
9-44 recommendation that it do pass and be printed.
9-45 Armbrister,
9-46 Chairman
9-47 * * * * *
9-48 WITNESSES
9-49 No witnesses appeared on S.B. No. 501.