1-1 By: Haley S.B. No. 1379
1-2 (In the Senate - Filed April 15, 1993; April 19, 1993, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 22, 1993, reported favorably, as amended, by the
1-5 following vote: Yeas 9, Nays 0; April 22, 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 COMMITTEE AMENDMENT NO. 1 By: Armbrister
1-20 Amend S.B. No. 1379, page 5, line 35, by inserting the following
1-21 section and renumbering all sections accordingly:
1-22 SECTION 9. The legislature hereby declares that the
1-23 enactment of this Act is in fulfillment of authority conferred on
1-24 it by Article IX, Section 9, of the Texas Constitution; that the
1-25 Montgomery County Hospital District and the indigent health care
1-26 services and other health care services and facilities that it is
1-27 able to provide or arrange for the provision of are essential to
1-28 and operate on a subject in which the state and public at large are
1-29 interested; and that the provisions of this Act therefore operate
1-30 on a subject in which the state and the public are interested. All
1-31 the terms and provisions of this Act are to be liberally construed
1-32 to effectuate the purposes set forth herein.
1-33 A BILL TO BE ENTITLED
1-34 AN ACT
1-35 relating to the Montgomery County Hospital District.
1-36 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-37 SECTION 1. Sections 2 and 5, Chapter 258, Acts of the 65th
1-38 Legislature, Regular Session, 1977, are amended to read as follows:
1-39 Sec. 2. The district shall take over and there shall be
1-40 transferred to it title to all land, buildings, improvements, and
1-41 equipment pertaining to the hospitals or hospital system owned by
1-42 the county or any city or town within the boundaries of the
1-43 proposed district and shall provide for the establishment of a
1-44 health care or hospital system by the purchase, gift, construction,
1-45 acquisition, repair, or renovation of buildings and equipment and
1-46 equipping same and the administration of the system for health care
1-47 or hospital purposes. The district may take over and may accept
1-48 title to land, buildings, improvements, and equipment of a
1-49 nonprofit hospital within the district if the governing authority
1-50 or authorities of the hospital and district agree to the transfer.
1-51 The district shall assume the outstanding indebtedness incurred by
1-52 any city or town within the district or by the county for hospital
1-53 purposes within the boundaries of the district.
1-54 Sec. 5. (a) The board of directors shall manage, control,
1-55 and administer the health care or hospital system and all funds and
1-56 resources of the district, but in no event shall any operating,
1-57 depreciation, or building reserves be invested in any funds or
1-58 securities other than those specified in Article 836 or 837,
1-59 Revised Civil Statutes of Texas, 1925, as amended. The district,
1-60 through its board of directors, shall have the power and authority
1-61 to sue and be sued, to promulgate rules governing the operation of
1-62 the hospital, the health care or hospital system, its staff, and
1-63 its employees. The board of directors shall appoint a qualified
1-64 person as the chief administrative officer of the district to be
1-65 known as the president of the hospital district or by another title
1-66 selected by the board. The board may appoint assistants to the
1-67 chief administrative officer to be known as vice-presidents of the
1-68 hospital district or by another title selected by the board. The
2-1 chief administrative officer and any assistant shall serve at the
2-2 will of the board and shall receive such compensation as may be
2-3 fixed by the board. The chief administrative officer shall
2-4 supervise all the work and activities of the district and shall
2-5 have general direction of the affairs of the district, subject to
2-6 limitations prescribed by the board. The board of directors shall
2-7 have the authority to appoint to the staff such doctors as
2-8 necessary for the efficient operation of the district and may
2-9 provide for temporary appointments to the staff if warranted by
2-10 circumstances. The board may delegate to the chief administrative
2-11 officer the authority to employ technicians, nurses, and employees
2-12 of the district. The board shall be authorized to contract with
2-13 any other political subdivision or governmental agency whereby the
2-14 district will provide investigatory or other services as to the
2-15 medical, health care, hospital, or welfare needs of the inhabitants
2-16 of the district and shall be authorized to contract with any county
2-17 or incorporated municipality located outside its boundaries for the
2-18 care and treatment of the sick, diseased, or injured persons of any
2-19 such county or municipality and shall have the authority to
2-20 contract with the State of Texas or agencies of the federal
2-21 government for the treatment of sick, diseased, or injured persons.
2-22 (b) The district may enter into contracts, and make payments
2-23 thereunder, relating to or arranging for the provision of health
2-24 care services as permitted by the Texas Constitution and Chapter
2-25 61, Health and Safety Code, and its subsequent amendments, on terms
2-26 and conditions as the board of directors determines to be in the
2-27 best interests of the district. The term of a contract entered
2-28 into under this subsection may not exceed 15 years.
2-29 SECTION 2. Subsection (a), Section 8, Chapter 258, Acts of
2-30 the 65th Legislature, Regular Session, 1977, is amended to read as
2-31 follows:
2-32 (a) The board of directors shall have the power and
2-33 authority to issue and sell its bonds in the name and on the faith
2-34 and credit of the hospital district for the purchase, construction,
2-35 acquisition, repair, or renovation of buildings and improvements
2-36 and equipping the same for health care or hospital purposes, and
2-37 for any or all such purposes. At the time of the issuance of any
2-38 bonds by the district, a tax shall be levied by the board
2-39 sufficient to create an interest and sinking fund to pay the
2-40 interest on and principal of said bonds as same mature; providing
2-41 the tax together with any other taxes levied for the district shall
2-42 not exceed 75 cents on each $100 valuation of all taxable property
2-43 situated in the district subject to hospital district taxation in
2-44 any one year. No bonds shall be issued by such hospital district
2-45 except refunding bonds until authorized by a majority of the
2-46 electors of the district. The order for bond election shall
2-47 specify the date of the election, the amount of bonds to be
2-48 authorized, the maximum maturity of the bonds, the place or places
2-49 where the election shall be held, the presiding judge and alternate
2-50 judge for each voting place, and provide for clerks as in county
2-51 elections. Notice of any bond election except one held under the
2-52 provisions of Section 9 of this Act, in which instance notice shall
2-53 be given as provided in Section 3 of this Act, shall be given as
2-54 provided in Article 704, Revised Civil Statutes of Texas, 1925, as
2-55 amended, and shall be conducted in accordance with the Texas
2-56 Election Code, as amended, except as modified by the provisions of
2-57 this Act.
2-58 SECTION 3. Sections 10 and 11, Chapter 258, Acts of the 65th
2-59 Legislature, Regular Session, 1977, are amended to read as follows:
2-60 Sec. 10. In addition to the power to issue bonds payable
2-61 from taxes levied by the district, as contemplated by Section 8 of
2-62 this Act, the board of directors is further authorized to issue and
2-63 to refund any previously issued revenue bonds for purchasing,
2-64 constructing, acquiring, repairing, equipping, or renovating
2-65 buildings and improvements for health care or hospital purposes and
2-66 for acquiring sites for health care or hospital purposes, the bonds
2-67 to be payable from and secured by a pledge of all or any part of
2-68 the revenues of the district to be derived from the operation of
2-69 its hospital or health care facilities <hospitals>. The bonds may
2-70 be additionally secured by a mortgage or deed of trust lien on any
3-1 part or all of its properties. The bonds shall be issued in the
3-2 manner and in accordance with the procedures and requirements
3-3 specified for the issuance of revenue bonds by county hospital
3-4 authorities in Sections 8 and 10 through 13 of Chapter 122, Acts of
3-5 the 58th Legislature, 1963 (Article 4494r, Vernon's Texas Civil
3-6 Statutes).
3-7 Sec. 11. (a) The board of directors is hereby given
3-8 complete discretion as to the type of buildings, both as to number
3-9 and location, required to establish and maintain an adequate health
3-10 care or hospital system. The health care or hospital system may
3-11 include domiciliary care and treatment of the sick, wounded, and
3-12 injured, hospitals, outpatient clinic or clinics, dispensaries,
3-13 geriatric domiciliary care and treatment, convalescent home
3-14 facilities, necessary nurses, domiciliaries and training centers,
3-15 blood banks, community mental health centers and research centers
3-16 or laboratories, ambulance services, and any other facilities
3-17 deemed necessary for health or hospital care by the directors. The
3-18 district, through its board of directors, is further authorized to
3-19 enter into an operating or management contract with regard to its
3-20 facilities or a part thereof or may lease all or part of its
3-21 buildings and facilities on terms and conditions considered to be
3-22 to the best interest of its inhabitants. Except as provided by
3-23 Subsection (c) of Section 15 of this Act, the term of a<; provided
3-24 that in no event shall any> lease may not exceed <be for a period
3-25 in excess of> 25 years from the date entered. The district shall
3-26 be empowered to sell or otherwise dispose of any property, real or
3-27 personal, or equipment of any nature on terms and conditions found
3-28 by the board to be in the best interest of its inhabitants.
3-29 (b) The district may sell or exchange a hospital, including
3-30 real property necessary or convenient for the operation of the
3-31 hospital and real property that the board of directors finds may be
3-32 useful in connection with future expansions of the hospital, on
3-33 terms and conditions the board determines to be in the best
3-34 interests of the district, by complying with the procedures
3-35 prescribed by Sections 285.051 and 285.052, Health and Safety Code,
3-36 and any subsequent amendments.
3-37 (c) The board of directors of the district shall have the
3-38 power to prescribe the method and manner of making purchases and
3-39 expenditures by and for the hospital district and shall also be
3-40 authorized to prescribe all accounting and control procedures. All
3-41 contracts for construction involving the expenditure of more than
3-42 $10,000 may be made only after advertising in the manner provided
3-43 by Chapter 163, Acts of the 42nd Legislature, Regular Session,
3-44 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes).
3-45 The provisions of Article 5160, Revised Civil Statutes of Texas,
3-46 1925, as amended, relating to performance and payment bonds shall
3-47 apply to construction contracts let by the district. The district
3-48 may acquire equipment for use in its health care or hospital system
3-49 and mortgage or pledge the property so acquired as security for the
3-50 payment of the purchase price, but any such contract shall provide
3-51 for the entire obligation of the district to be retired within five
3-52 years from the date of the contract. Except as permitted in the
3-53 preceding sentence and as permitted by Sections 5, 8, 9, and 10 of
3-54 this Act, the district may incur no obligation payable from any
3-55 revenues of the district, except those on hand or to be on hand
3-56 within the then current and following fiscal year of the district.
3-57 (d) <(c)> The board may declare an emergency in the matter
3-58 of funds not being available to pay principal of and interest on
3-59 any bonds of the district payable in whole or in part from taxes or
3-60 to meet any other needs of the district and may issue negotiable
3-61 tax anticipation notes to borrow the money needed by the district.
3-62 Tax anticipation notes may bear interest at any rate or rates
3-63 authorized by general law and must mature within one year of their
3-64 date. Tax anticipation notes may be issued for any purpose for
3-65 which the district is authorized to levy taxes, and tax
3-66 anticipation notes shall be secured with the proceeds of taxes to
3-67 be levied by the district in the succeeding 12-month period. The
3-68 board may covenant with the purchasers of the notes that the board
3-69 will levy a sufficient tax in the following fiscal year to pay
3-70 principal of and interest on the notes and pay the costs of
4-1 collecting the taxes.
4-2 SECTION 4. Subsections (c) and (d), Section 15, Chapter 258,
4-3 Acts of the 65th Legislature, Regular Session, 1977, are amended to
4-4 read as follows:
4-5 (c) Land owned by the district may not be leased for a
4-6 period greater than 25 years <or sold> unless the board of
4-7 directors:
4-8 (1) finds that the land is not necessary for health
4-9 care or hospital purposes;
4-10 (2) complies with any indenture securing the payment
4-11 of bonds issued by the district; and
4-12 (3) receives on behalf of the district not less than
4-13 the current market value for the <sale or> lease.
4-14 (d) Land <In addition to the requirements under Subsection
4-15 (c) of this section, land> of the district, other than land that
4-16 the district is authorized to sell or exchange under Subsection (b)
4-17 of Section 11 of this Act, may not be sold unless the board of
4-18 directors complies with Section 272.001, Local Government Code
4-19 <Chapter 455, Acts of the 61st Legislature, Regular Session, 1969
4-20 (Article 5421c-12, Vernon's Texas Civil Statutes)>.
4-21 SECTION 5. Section 18, Chapter 258, Acts of the 65th
4-22 Legislature, Regular Session, 1977, is amended to read as follows:
4-23 Sec. 18. Whenever a patient residing within the district has
4-24 been admitted to the facilities of the district, the chief
4-25 administrative officer may cause inquiry to be made as to his
4-26 circumstances and those of the relatives of the patient legally
4-27 liable for his support. If he finds that the patient or his
4-28 relatives are able to pay for his care and treatment in whole or in
4-29 part, an order shall be made directing the patient or his relatives
4-30 to pay to the hospital district for the care and support of the
4-31 patient a specified sum per week in proportion to their financial
4-32 ability. The chief administrative officer shall have the power and
4-33 authority to collect these sums from the estate of the patient or
4-34 his relatives legally liable for his support in the manner provided
4-35 by law for collection of expenses in the last illness of a deceased
4-36 person. If the chief administrative officer finds that the patient
4-37 or his relatives are not able to pay either in whole or in part for
4-38 his care and treatment in the facilities of the district
4-39 <hospital>, same shall become a charge on the hospital district as
4-40 to the amount of the inability to pay. Should there be any dispute
4-41 as to the ability to pay or doubt in the mind of the chief
4-42 administrative officer, the board of directors shall hear and
4-43 determine same after calling witnesses and shall make such order or
4-44 orders as may be proper. Appeals from a final order of the board
4-45 shall lie to the district court. The substantial evidence rule
4-46 shall apply.
4-47 SECTION 6. Chapter 258, Acts of the 65th Legislature,
4-48 Regular Session, 1977, is amended by adding Section 19A to read as
4-49 follows:
4-50 Sec. 19A. (a) The district may sponsor and create a
4-51 nonstock, nonmember corporation under the Texas Non-Profit
4-52 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
4-53 Statutes) and its subsequent amendments and may contribute or cause
4-54 to be contributed available funds to the corporation.
4-55 (b) The funds of the corporation, other than funds paid by
4-56 the corporation to the district, may be used by the corporation
4-57 only to provide, to pay the costs of providing, or to pay the costs
4-58 related to providing indigent health care or other services that
4-59 the district is required or permitted to provide under the
4-60 constitution or laws of this state. The board of directors of the
4-61 hospital district shall establish adequate controls to ensure that
4-62 the corporation uses its funds as required by this subsection.
4-63 (c) The board of directors of the corporation shall be
4-64 composed of seven residents of the district appointed by the board
4-65 of directors of the district. The board of directors of the
4-66 district may remove any director of the corporation at any time
4-67 with or without cause.
4-68 (d) The corporation may invest funds in any investment in
4-69 which the district is authorized to invest funds of the district,
4-70 including investments authorized by the Public Funds Investment Act
5-1 of 1987 (Article 842a-2, Vernon's Texas Civil Statutes) and its
5-2 subsequent amendments.
5-3 SECTION 7. Section 20, Chapter 258, Acts of the 65th
5-4 Legislature, Regular Session, 1977, is amended to read as follows:
5-5 Sec. 20. After creation of the hospital district, no county,
5-6 municipality, or political subdivision wholly or partly within the
5-7 boundaries of the district shall have the power to levy taxes or
5-8 issue bonds or other obligations for hospital or health care
5-9 purposes or for providing medical care for the residents of the
5-10 district. The hospital district shall assume full responsibility
5-11 for <the operation of all hospital facilities for> the furnishing
5-12 of medical and hospital care for its needy inhabitants. When the
5-13 district is created and established, the county and all towns and
5-14 cities located wholly or partly therein shall convey and transfer
5-15 to the district title to all land, buildings, improvements, and
5-16 equipment in anywise pertaining to a hospital or hospital system
5-17 located wholly within the district which may be jointly or
5-18 separately owned by the county or any city or town within the
5-19 district. Operating funds and reserves for operating expenses
5-20 which are on hand and funds which have been budgeted for hospital
5-21 purposes by the county or any city or town therein for the
5-22 remainder of the fiscal year in which the district is created shall
5-23 likewise be transferred to the district, as shall taxes previously
5-24 levied for hospital purposes for the current year, and all sinking
5-25 funds established for payment of indebtedness assumed by the
5-26 district.
5-27 SECTION 8. The legislature finds that all of the
5-28 requirements of the Texas Constitution have been performed or
5-29 accomplished as required, and in the time and order required, and
5-30 that the legislature has the power and authority to enact this Act.
5-31 SECTION 9. The importance of this legislation and the
5-32 crowded condition of the calendars in both houses create an
5-33 emergency and an imperative public necessity that the
5-34 constitutional rule requiring bills to be read on three several
5-35 days in each house be suspended, and this rule is hereby suspended,
5-36 and that this Act take effect and be in force from and after its
5-37 passage, and it is so enacted.
5-38 * * * * *
5-39 Austin,
5-40 Texas
5-41 April 22, 1993
5-42 Hon. Bob Bullock
5-43 President of the Senate
5-44 Sir:
5-45 We, your Committee on Intergovernmental Relations to which was
5-46 referred S.B. No. 1379, have had the same under consideration, and
5-47 I am instructed to report it back to the Senate with the
5-48 recommendation that it do pass, as amended, and be printed.
5-49 Armbrister,
5-50 Chairman
5-51 * * * * *
5-52 WITNESSES
5-53 FOR AGAINST ON
5-54 ___________________________________________________________________
5-55 Name: David Crews x
5-56 Representing: Self
5-57 City: Conroe
5-58 -------------------------------------------------------------------
5-59 Name: Walter Jolley x
5-60 Representing: Medical Center Hosp.
5-61 City: The Woodlands
5-62 -------------------------------------------------------------------
5-63 Name: Rigby Owen Jr. x
5-64 Representing: Mont. Co. Hosp. Dist.
5-65 City: Montgomery
5-66 -------------------------------------------------------------------
5-67 FOR AGAINST ON
5-68 ___________________________________________________________________
5-69 Name: Jerry Alan Wood x
5-70 Representing: City of Houston
6-1 City: Houston
6-2 -------------------------------------------------------------------