By: Haley S.B. No. 1379
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the Montgomery County Hospital District.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Sections 2 and 5, Chapter 258, Acts of the 65th
1-4 Legislature, Regular Session, 1977, are amended to read as follows:
1-5 Sec. 2. The district shall take over and there shall be
1-6 transferred to it title to all land, buildings, improvements, and
1-7 equipment pertaining to the hospitals or hospital system owned by
1-8 the county or any city or town within the boundaries of the
1-9 proposed district and shall provide for the establishment of a
1-10 health care or hospital system by the purchase, gift, construction,
1-11 acquisition, repair, or renovation of buildings and equipment and
1-12 equipping same and the administration of the system for health care
1-13 or hospital purposes. The district may take over and may accept
1-14 title to land, buildings, improvements, and equipment of a
1-15 nonprofit hospital within the district if the governing authority
1-16 or authorities of the hospital and district agree to the transfer.
1-17 The district shall assume the outstanding indebtedness incurred by
1-18 any city or town within the district or by the county for hospital
1-19 purposes within the boundaries of the district.
1-20 Sec. 5. (a) The board of directors shall manage, control,
1-21 and administer the health care or hospital system and all funds and
1-22 resources of the district, but in no event shall any operating,
1-23 depreciation, or building reserves be invested in any funds or
1-24 securities other than those specified in Article 836 or 837,
2-1 Revised Civil Statutes of Texas, 1925, as amended. The district,
2-2 through its board of directors, shall have the power and authority
2-3 to sue and be sued, to promulgate rules governing the operation of
2-4 the hospital, the health care or hospital system, its staff, and
2-5 its employees. The board of directors shall appoint a qualified
2-6 person as the chief administrative officer of the district to be
2-7 known as the president of the hospital district or by another title
2-8 selected by the board. The board may appoint assistants to the
2-9 chief administrative officer to be known as vice-presidents of the
2-10 hospital district or by another title selected by the board. The
2-11 chief administrative officer and any assistant shall serve at the
2-12 will of the board and shall receive such compensation as may be
2-13 fixed by the board. The chief administrative officer shall
2-14 supervise all the work and activities of the district and shall
2-15 have general direction of the affairs of the district, subject to
2-16 limitations prescribed by the board. The board of directors shall
2-17 have the authority to appoint to the staff such doctors as
2-18 necessary for the efficient operation of the district and may
2-19 provide for temporary appointments to the staff if warranted by
2-20 circumstances. The board may delegate to the chief administrative
2-21 officer the authority to employ technicians, nurses, and employees
2-22 of the district. The board shall be authorized to contract with
2-23 any other political subdivision or governmental agency whereby the
2-24 district will provide investigatory or other services as to the
2-25 medical, health care, hospital, or welfare needs of the inhabitants
2-26 of the district and shall be authorized to contract with any county
2-27 or incorporated municipality located outside its boundaries for the
3-1 care and treatment of the sick, diseased, or injured persons of any
3-2 such county or municipality and shall have the authority to
3-3 contract with the State of Texas or agencies of the federal
3-4 government for the treatment of sick, diseased, or injured persons.
3-5 (b) The district may enter into contracts, and make payments
3-6 thereunder, relating to or arranging for the provision of health
3-7 care services as permitted by the Texas Constitution and Chapter
3-8 61, Health and Safety Code, and its subsequent amendments, on terms
3-9 and conditions as the board of directors determines to be in the
3-10 best interests of the district. The term of a contract entered
3-11 into under this subsection may not exceed 15 years.
3-12 SECTION 2. Subsection (a), Section 8, Chapter 258, Acts of
3-13 the 65th Legislature, Regular Session, 1977, is amended to read as
3-14 follows:
3-15 (a) The board of directors shall have the power and
3-16 authority to issue and sell its bonds in the name and on the faith
3-17 and credit of the hospital district for the purchase, construction,
3-18 acquisition, repair, or renovation of buildings and improvements
3-19 and equipping the same for health care or hospital purposes, and
3-20 for any or all such purposes. At the time of the issuance of any
3-21 bonds by the district, a tax shall be levied by the board
3-22 sufficient to create an interest and sinking fund to pay the
3-23 interest on and principal of said bonds as same mature; providing
3-24 the tax together with any other taxes levied for the district shall
3-25 not exceed 75 cents on each $100 valuation of all taxable property
3-26 situated in the district subject to hospital district taxation in
3-27 any one year. No bonds shall be issued by such hospital district
4-1 except refunding bonds until authorized by a majority of the
4-2 electors of the district. The order for bond election shall
4-3 specify the date of the election, the amount of bonds to be
4-4 authorized, the maximum maturity of the bonds, the place or places
4-5 where the election shall be held, the presiding judge and alternate
4-6 judge for each voting place, and provide for clerks as in county
4-7 elections. Notice of any bond election except one held under the
4-8 provisions of Section 9 of this Act, in which instance notice shall
4-9 be given as provided in Section 3 of this Act, shall be given as
4-10 provided in Article 704, Revised Civil Statutes of Texas, 1925, as
4-11 amended, and shall be conducted in accordance with the Texas
4-12 Election Code, as amended, except as modified by the provisions of
4-13 this Act.
4-14 SECTION 3. Sections 10 and 11, Chapter 258, Acts of the 65th
4-15 Legislature, Regular Session, 1977, are amended to read as follows:
4-16 Sec. 10. In addition to the power to issue bonds payable
4-17 from taxes levied by the district, as contemplated by Section 8 of
4-18 this Act, the board of directors is further authorized to issue and
4-19 to refund any previously issued revenue bonds for purchasing,
4-20 constructing, acquiring, repairing, equipping, or renovating
4-21 buildings and improvements for health care or hospital purposes and
4-22 for acquiring sites for health care or hospital purposes, the bonds
4-23 to be payable from and secured by a pledge of all or any part of
4-24 the revenues of the district to be derived from the operation of
4-25 its hospital or health care facilities <hospitals>. The bonds may
4-26 be additionally secured by a mortgage or deed of trust lien on any
4-27 part or all of its properties. The bonds shall be issued in the
5-1 manner and in accordance with the procedures and requirements
5-2 specified for the issuance of revenue bonds by county hospital
5-3 authorities in Sections 8 and 10 through 13 of Chapter 122, Acts of
5-4 the 58th Legislature, 1963 (Article 4494r, Vernon's Texas Civil
5-5 Statutes).
5-6 Sec. 11. (a) The board of directors is hereby given
5-7 complete discretion as to the type of buildings, both as to number
5-8 and location, required to establish and maintain an adequate health
5-9 care or hospital system. The health care or hospital system may
5-10 include domiciliary care and treatment of the sick, wounded, and
5-11 injured, hospitals, outpatient clinic or clinics, dispensaries,
5-12 geriatric domiciliary care and treatment, convalescent home
5-13 facilities, necessary nurses, domiciliaries and training centers,
5-14 blood banks, community mental health centers and research centers
5-15 or laboratories, ambulance services, and any other facilities
5-16 deemed necessary for health or hospital care by the directors. The
5-17 district, through its board of directors, is further authorized to
5-18 enter into an operating or management contract with regard to its
5-19 facilities or a part thereof or may lease all or part of its
5-20 buildings and facilities on terms and conditions considered to be
5-21 to the best interest of its inhabitants. Except as provided by
5-22 Subsection (c) of Section 15 of this Act, the term of a<; provided
5-23 that in no event shall any> lease may not exceed <be for a period
5-24 in excess of> 25 years from the date entered. The district shall
5-25 be empowered to sell or otherwise dispose of any property, real or
5-26 personal, or equipment of any nature on terms and conditions found
5-27 by the board to be in the best interest of its inhabitants.
6-1 (b) The district may sell or exchange a hospital, including
6-2 real property necessary or convenient for the operation of the
6-3 hospital and real property that the board of directors finds may be
6-4 useful in connection with future expansions of the hospital, on
6-5 terms and conditions the board determines to be in the best
6-6 interests of the district, by complying with the procedures
6-7 prescribed by Sections 285.051 and 285.052, Health and Safety Code,
6-8 and any subsequent amendments.
6-9 (c) The board of directors of the district shall have the
6-10 power to prescribe the method and manner of making purchases and
6-11 expenditures by and for the hospital district and shall also be
6-12 authorized to prescribe all accounting and control procedures. All
6-13 contracts for construction involving the expenditure of more than
6-14 $10,000 may be made only after advertising in the manner provided
6-15 by Chapter 163, Acts of the 42nd Legislature, Regular Session,
6-16 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes).
6-17 The provisions of Article 5160, Revised Civil Statutes of Texas,
6-18 1925, as amended, relating to performance and payment bonds shall
6-19 apply to construction contracts let by the district. The district
6-20 may acquire equipment for use in its health care or hospital system
6-21 and mortgage or pledge the property so acquired as security for the
6-22 payment of the purchase price, but any such contract shall provide
6-23 for the entire obligation of the district to be retired within five
6-24 years from the date of the contract. Except as permitted in the
6-25 preceding sentence and as permitted by Sections 5, 8, 9, and 10 of
6-26 this Act, the district may incur no obligation payable from any
6-27 revenues of the district, except those on hand or to be on hand
7-1 within the then current and following fiscal year of the district.
7-2 (d) <(c)> The board may declare an emergency in the matter
7-3 of funds not being available to pay principal of and interest on
7-4 any bonds of the district payable in whole or in part from taxes or
7-5 to meet any other needs of the district and may issue negotiable
7-6 tax anticipation notes to borrow the money needed by the district.
7-7 Tax anticipation notes may bear interest at any rate or rates
7-8 authorized by general law and must mature within one year of their
7-9 date. Tax anticipation notes may be issued for any purpose for
7-10 which the district is authorized to levy taxes, and tax
7-11 anticipation notes shall be secured with the proceeds of taxes to
7-12 be levied by the district in the succeeding 12-month period. The
7-13 board may covenant with the purchasers of the notes that the board
7-14 will levy a sufficient tax in the following fiscal year to pay
7-15 principal of and interest on the notes and pay the costs of
7-16 collecting the taxes.
7-17 SECTION 4. Subsections (c) and (d), Section 15, Chapter 258,
7-18 Acts of the 65th Legislature, Regular Session, 1977, are amended to
7-19 read as follows:
7-20 (c) Land owned by the district may not be leased for a
7-21 period greater than 25 years <or sold> unless the board of
7-22 directors:
7-23 (1) finds that the land is not necessary for health
7-24 care or hospital purposes;
7-25 (2) complies with any indenture securing the payment
7-26 of bonds issued by the district; and
7-27 (3) receives on behalf of the district not less than
8-1 the current market value for the <sale or> lease.
8-2 (d) Land <In addition to the requirements under Subsection
8-3 (c) of this section, land> of the district, other than land that
8-4 the district is authorized to sell or exchange under Subsection (b)
8-5 of Section 11 of this Act, may not be sold unless the board of
8-6 directors complies with Section 272.001, Local Government Code
8-7 <Chapter 455, Acts of the 61st Legislature, Regular Session, 1969
8-8 (Article 5421c-12, Vernon's Texas Civil Statutes)>.
8-9 SECTION 5. Section 18, Chapter 258, Acts of the 65th
8-10 Legislature, Regular Session, 1977, is amended to read as follows:
8-11 Sec. 18. Whenever a patient residing within the district has
8-12 been admitted to the facilities of the district, the chief
8-13 administrative officer may cause inquiry to be made as to his
8-14 circumstances and those of the relatives of the patient legally
8-15 liable for his support. If he finds that the patient or his
8-16 relatives are able to pay for his care and treatment in whole or in
8-17 part, an order shall be made directing the patient or his relatives
8-18 to pay to the hospital district for the care and support of the
8-19 patient a specified sum per week in proportion to their financial
8-20 ability. The chief administrative officer shall have the power and
8-21 authority to collect these sums from the estate of the patient or
8-22 his relatives legally liable for his support in the manner provided
8-23 by law for collection of expenses in the last illness of a deceased
8-24 person. If the chief administrative officer finds that the patient
8-25 or his relatives are not able to pay either in whole or in part for
8-26 his care and treatment in the facilities of the district
8-27 <hospital>, same shall become a charge on the hospital district as
9-1 to the amount of the inability to pay. Should there be any dispute
9-2 as to the ability to pay or doubt in the mind of the chief
9-3 administrative officer, the board of directors shall hear and
9-4 determine same after calling witnesses and shall make such order or
9-5 orders as may be proper. Appeals from a final order of the board
9-6 shall lie to the district court. The substantial evidence rule
9-7 shall apply.
9-8 SECTION 6. Chapter 258, Acts of the 65th Legislature,
9-9 Regular Session, 1977, is amended by adding Section 19A to read as
9-10 follows:
9-11 Sec. 19A. (a) The district may sponsor and create a
9-12 nonstock, nonmember corporation under the Texas Non-Profit
9-13 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
9-14 Statutes) and its subsequent amendments and may contribute or cause
9-15 to be contributed available funds to the corporation.
9-16 (b) The funds of the corporation, other than funds paid by
9-17 the corporation to the district, may be used by the corporation
9-18 only to provide, to pay the costs of providing, or to pay the costs
9-19 related to providing indigent health care or other services that
9-20 the district is required or permitted to provide under the
9-21 constitution or laws of this state. The board of directors of the
9-22 hospital district shall establish adequate controls to ensure that
9-23 the corporation uses its funds as required by this subsection.
9-24 (c) The board of directors of the corporation shall be
9-25 composed of seven residents of the district appointed by the board
9-26 of directors of the district. The board of directors of the
9-27 district may remove any director of the corporation at any time
10-1 with or without cause.
10-2 (d) The corporation may invest funds in any investment in
10-3 which the district is authorized to invest funds of the district,
10-4 including investments authorized by the Public Funds Investment Act
10-5 of 1987 (Article 842a-2, Vernon's Texas Civil Statutes) and its
10-6 subsequent amendments.
10-7 SECTION 7. Section 20, Chapter 258, Acts of the 65th
10-8 Legislature, Regular Session, 1977, is amended to read as follows:
10-9 Sec. 20. After creation of the hospital district, no county,
10-10 municipality, or political subdivision wholly or partly within the
10-11 boundaries of the district shall have the power to levy taxes or
10-12 issue bonds or other obligations for hospital or health care
10-13 purposes or for providing medical care for the residents of the
10-14 district. The hospital district shall assume full responsibility
10-15 for <the operation of all hospital facilities for> the furnishing
10-16 of medical and hospital care for its needy inhabitants. When the
10-17 district is created and established, the county and all towns and
10-18 cities located wholly or partly therein shall convey and transfer
10-19 to the district title to all land, buildings, improvements, and
10-20 equipment in anywise pertaining to a hospital or hospital system
10-21 located wholly within the district which may be jointly or
10-22 separately owned by the county or any city or town within the
10-23 district. Operating funds and reserves for operating expenses
10-24 which are on hand and funds which have been budgeted for hospital
10-25 purposes by the county or any city or town therein for the
10-26 remainder of the fiscal year in which the district is created shall
10-27 likewise be transferred to the district, as shall taxes previously
11-1 levied for hospital purposes for the current year, and all sinking
11-2 funds established for payment of indebtedness assumed by the
11-3 district.
11-4 SECTION 8. The legislature finds that all of the
11-5 requirements of the Texas Constitution have been performed or
11-6 accomplished as required, and in the time and order required, and
11-7 that the legislature has the power and authority to enact this Act.
11-8 SECTION 9. The legislature hereby declares that the
11-9 enactment of this Act is in fulfillment of authority conferred on
11-10 it by Article IX, Section 9, of the Texas Constitution; that the
11-11 Montgomery County Hospital District and the indigent health care
11-12 services and other health care services and facilities that it is
11-13 able to provide or arrange for the provision of are essential to
11-14 and operate on a subject in which the state and public at large are
11-15 interested; and that the provisions of this Act therefore operate
11-16 on a subject in which the state and the public are interested. All
11-17 the terms and provisions of this Act are to be liberally construed
11-18 to effectuate the purposes set forth herein.
11-19 SECTION 10. The importance of this legislation and the
11-20 crowded condition of the calendars in both houses create an
11-21 emergency and an imperative public necessity that the
11-22 constitutional rule requiring bills to be read on three several
11-23 days in each house be suspended, and this rule is hereby suspended,
11-24 and that this Act take effect and be in force from and after its
11-25 passage, and it is so enacted.