By: Nelson S.B. No. 1493 A BILL TO BE ENTITLED AN ACT 1-1 relating to the creation, administration, powers, duties, 1-2 operation, and financing of the Bridgeport Area Community Hospital 1-3 District; authorizing a tax; granting the authority to issue bonds; 1-4 and granting the power of eminent domain. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 ARTICLE 1. GENERAL PROVISIONS 1-7 SECTION 1.01. DEFINITIONS. In this Act: 1-8 (1) "District" means the Bridgeport Area Community 1-9 Hospital District. 1-10 (2) "Board" means the board of directors of the 1-11 district. 1-12 (3) "Director" means a member of the board. 1-13 SECTION 1.02. DISTRICT AUTHORIZATION. The Bridgeport Area 1-14 Community Hospital District may be created and established and, if 1-15 created, must be maintained, operated, and financed in the manner 1-16 provided by Article IX, Section 9, of the Texas Constitution and by 1-17 this Act. 1-18 SECTION 1.03. BOUNDARIES. The boundaries of the district 1-19 are coextensive with the boundaries of the Bridgeport Independent 1-20 School District and that portion of the boundaries of the Jacksboro 1-21 Independent School District that is located in Wise County. 1-22 ARTICLE 2. TEMPORARY DIRECTORS 1-23 SECTION 2.01. TEMPORARY DIRECTORS. On the effective date of 1-24 this Act, the Commissioners Court of Wise County shall appoint five 2-1 persons to serve as temporary directors of the district. Each 2-2 temporary director must be a resident of the district. 2-3 SECTION 2.02. VACANCY IN OFFICE. The Commissioners Court of 2-4 Wise County shall fill a vacancy in the office of temporary 2-5 director by appointment. 2-6 ARTICLE 3. CREATION OF DISTRICT 2-7 SECTION 3.01. CREATION ELECTION. The district may be 2-8 created and a tax may be authorized only if the creation and the 2-9 tax are approved by a majority of the qualified voters of the 2-10 territory of the proposed district voting at an election called and 2-11 held for that purpose. 2-12 SECTION 3.02. ORDERING ELECTION. (a) A majority of the 2-13 temporary directors of the district may order a creation election. 2-14 (b) On presentation of a petition for a creation election 2-15 signed by at least 100 of the registered voters of the territory of 2-16 the proposed district, according to the most recent official list 2-17 of registered voters, the temporary directors shall order a 2-18 creation election. The election shall be called not later than 2-19 the 60th day after the date the petition is presented to the 2-20 district. 2-21 SECTION 3.03. ELECTION ORDER. The order calling the 2-22 election must state: 2-23 (1) the nature of the election, including the 2-24 proposition that is to appear on the ballot; 2-25 (2) the date of the election; 2-26 (3) the hours during which the polls will be open; and 2-27 (4) the location of the polling places. 3-1 SECTION 3.04. NOTICE. The temporary directors shall give 3-2 notice of the election by publishing a substantial copy of the 3-3 election order in a newspaper of general circulation in the 3-4 proposed district once a week for two consecutive weeks. The first 3-5 publication must appear at least 35 days before the date set for 3-6 the election. 3-7 SECTION 3.05. ELECTION DATE. (a) The election shall be 3-8 held not less than 45 days or more than 60 days after the date on 3-9 which the election is ordered. 3-10 (b) Subsection (a), Section 41.001, Election Code, does not 3-11 apply to an election ordered under this article. 3-12 SECTION 3.06. BALLOT PROPOSITION. The ballot for the 3-13 election shall be printed to permit voting for or against the 3-14 proposition: "The creation of the Bridgeport Area Community 3-15 Hospital District and the levy of annual taxes for hospital 3-16 purposes at a rate not to exceed 25 cents on each $100 valuation of 3-17 all taxable property in the district." 3-18 SECTION 3.07. CANVASSING RETURNS. (a) The temporary 3-19 directors shall meet and canvass the returns of the election. 3-20 (b) If the temporary directors find that the election 3-21 results are favorable to the proposition to create the district, 3-22 they shall issue an order declaring the district created. 3-23 (c) If the temporary directors find that the election 3-24 results are not favorable to the proposition to create the 3-25 district, another creation election may not be called and held by 3-26 the board before the first anniversary of the date of the most 3-27 recent creation election. 4-1 SECTION 3.08. EXPIRATION OF ACT. If the creation of the 4-2 district is not approved at an election held within 60 months after 4-3 the effective date of this Act, this Act expires. 4-4 ARTICLE 4. DISTRICT ADMINISTRATION 4-5 SECTION 4.01. BOARD OF DIRECTORS. (a) The district is 4-6 governed by a board of five directors. 4-7 (b) From the time the creation of the district is approved 4-8 until the elected directors take office, the temporary directors 4-9 serve as directors of the district. 4-10 SECTION 4.02. INITIAL DIRECTORS ELECTION. Directors shall 4-11 be elected at an election to be held on the first Saturday in May 4-12 following the creation of the district. 4-13 SECTION 4.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF 4-14 OFFICE. (a) Five directors shall be elected at large from the 4-15 district. 4-16 (b) At the initial election of directors, the five 4-17 candidates receiving the highest number of votes become directors. 4-18 (c) The two directors receiving the highest number of votes 4-19 at the initial election of directors shall serve two-year terms. 4-20 The remaining three directors shall serve one-year terms. 4-21 (d) After the initial election of directors, an election 4-22 shall be held on the first Saturday in May each year, and the 4-23 appropriate number of successor directors shall be elected for 4-24 two-year terms. 4-25 SECTION 4.04. NOTICE OF ELECTION. At least 35 days before 4-26 the date of an election of directors, notice of the election shall 4-27 be published one time in a newspaper with general circulation in 5-1 the district. 5-2 SECTION 4.05. PETITION. (a) A person who wishes to have 5-3 the person's name printed on the ballot as a candidate for director 5-4 must file with the secretary of the board of directors a petition 5-5 signed by at least 10 registered voters of the district asking that 5-6 the person's name be placed on the ballot. The determination of 5-7 whether a person is a registered voter of the district shall be 5-8 based on the most recent official lists of registered voters. 5-9 (b) The petition must be filed with the secretary not later 5-10 than the 45th day before the date of the election. 5-11 SECTION 4.06. QUALIFICATIONS FOR OFFICE. (a) To be 5-12 eligible to be a candidate for or to serve as a director, a person 5-13 must be: 5-14 (1) a resident of the district; and 5-15 (2) a qualified voter. 5-16 (b) An employee of the district may not serve as a director. 5-17 SECTION 4.07. BOARD VACANCY. A vacancy in the office of 5-18 director shall be filled for the unexpired term by appointment by 5-19 the remaining directors. 5-20 SECTION 4.08. OFFICERS. The board shall elect from among 5-21 its members a president and a vice-president. The board shall also 5-22 appoint a secretary. The secretary need not be a director. 5-23 SECTION 4.09. OFFICERS' TERMS; VACANCY. (a) Each officer 5-24 of the board serves for a term of one year. 5-25 (b) The board shall fill a vacancy in a board office for the 5-26 unexpired term. 5-27 SECTION 4.10. COMPENSATION. Directors and officers serve 6-1 without compensation but may be reimbursed for actual expenses 6-2 incurred in the performance of official duties. Those expenses 6-3 must be reported in the district's minute book or other district 6-4 records and must be approved by the board. 6-5 SECTION 4.11. VOTING REQUIREMENT. A concurrence of a 6-6 majority of the members of the board voting is necessary in matters 6-7 relating to the business of the district. 6-8 SECTION 4.12. ADMINISTRATOR, ASSISTANT ADMINISTRATOR, AND 6-9 ATTORNEY. (a) The board may appoint qualified persons as 6-10 administrator of the district, assistant administrator of the 6-11 district, and attorney for the district. 6-12 (b) The administrator, assistant administrator, and attorney 6-13 serve at the will of the board. 6-14 (c) The administrator, assistant administrator, and attorney 6-15 are entitled to compensation as determined by the board. 6-16 (d) Before assuming the duties of administrator, the person 6-17 appointed shall execute a bond payable to the hospital district in 6-18 the amount of not less than $5,000 as determined by the board, 6-19 conditioned on the faithful performance of duties under this Act. 6-20 The board may pay for the bond with district funds. 6-21 SECTION 4.13. APPOINTMENTS TO STAFF. The board may appoint 6-22 to the staff any doctors the board considers necessary for the 6-23 efficient operation of the district and may make temporary 6-24 appointments as considered necessary. 6-25 SECTION 4.14. TECHNICIANS, NURSES, AND OTHER DISTRICT 6-26 EMPLOYEES. (a) The district may employ technicians, nurses, 6-27 fiscal agents, accountants, architects, additional attorneys, and 7-1 other necessary employees. 7-2 (b) The board may delegate to the administrator the 7-3 authority to employ persons for the district. 7-4 SECTION 4.15. GENERAL DUTIES OF ADMINISTRATOR. The 7-5 administrator shall supervise the work and activities of the 7-6 district and shall direct the general affairs of the district, 7-7 subject to the limitations prescribed by the board. 7-8 SECTION 4.16. RETIREMENT BENEFITS. The board may provide 7-9 retirement benefits for employees of the district by establishing 7-10 or administering a retirement program or by electing to participate 7-11 in the Texas County and District Retirement System or in any other 7-12 statewide retirement system in which the district is eligible to 7-13 participate. 7-14 ARTICLE 5. POWERS AND DUTIES 7-15 SECTION 5.01. RESPONSIBILITY OF AND LIMITATION ON 7-16 GOVERNMENTAL ENTITY. (a) On creation of the district, Wise County 7-17 shall convey or transfer to the district: 7-18 (1) title to land, buildings, improvements, and 7-19 equipment related to any hospital system located in the district 7-20 that is owned by Wise County; 7-21 (2) operating funds and reserves for operating 7-22 expenses and funds that have been budgeted by Wise County to 7-23 provide medical care for residents of the district for the 7-24 remainder of the fiscal year in which the district is established; 7-25 (3) taxes levied by Wise County for hospital purposes 7-26 for residents of the district for the year in which the district is 7-27 created; and 8-1 (4) funds established for payment of indebtedness 8-2 assumed by the district. 8-3 (b) On or after creation of the district, Wise County or any 8-4 other political entity may not levy taxes or issue bonds or other 8-5 obligations for hospital purposes or for providing medical care for 8-6 the residents of the district. 8-7 SECTION 5.02. DISTRICT RESPONSIBILITIES. On creation of the 8-8 district, the district: 8-9 (1) assumes full responsibility for operating hospital 8-10 facilities and for furnishing medical and hospital care for the 8-11 district's needy inhabitants; 8-12 (2) assumes any outstanding indebtedness, including 8-13 bonded indebtedness, incurred by Wise County for hospital purposes 8-14 for residents of the district before the district's creation; and 8-15 (3) may operate or provide for the operation of a 8-16 mobile emergency medical or air ambulance service. 8-17 SECTION 5.03. MANAGEMENT, CONTROL, AND ADMINISTRATION. The 8-18 board shall manage, control, and administer the hospital system and 8-19 the funds and resources of the district. 8-20 SECTION 5.04. DISTRICT RULES. The board may adopt rules 8-21 governing the operations of the hospital and hospital system and 8-22 the duties, functions, and responsibilities of district staff and 8-23 employees. 8-24 SECTION 5.05. METHODS AND PROCEDURES. (a) The board may 8-25 prescribe the method of making purchases and expenditures by and 8-26 for the district. 8-27 (b) The board may prescribe accounting and control 9-1 procedures for the district. 9-2 SECTION 5.06. HOSPITAL FACILITIES. (a) The board shall 9-3 determine the type, number, and location of buildings required to 9-4 establish and maintain an adequate hospital system and the type of 9-5 equipment necessary for hospital care. 9-6 (b) The board may acquire property, facilities, and 9-7 equipment for the district for use in the hospital system and may 9-8 mortgage or pledge the property, facilities, or equipment acquired 9-9 as security for the payment of the purchase price. 9-10 (c) The board may lease hospital facilities on behalf of the 9-11 district. 9-12 (d) The board may sell or otherwise dispose of property, 9-13 facilities, or equipment on behalf of the district. 9-14 SECTION 5.07. CONSTRUCTION CONTRACTS. (a) The board may 9-15 enter into construction contracts on behalf of the district. 9-16 However, the board may enter into construction contracts that 9-17 involve spending more than $10,000 only after competitive bidding 9-18 as provided by Subchapter B, Chapter 271, Local Government Code. 9-19 (b) Article 5160, Revised Statutes, as it relates to 9-20 performance and payment bonds, applies to construction contracts 9-21 let by the district. 9-22 SECTION 5.08. DISTRICT OPERATING AND MANAGEMENT CONTRACTS. 9-23 The board may enter into operating or management contracts relating 9-24 to hospital facilities on behalf of the district. 9-25 SECTION 5.09. EMINENT DOMAIN. (a) The district may 9-26 exercise the power of eminent domain to acquire by condemnation a 9-27 fee simple or other interest in property located in the territory 10-1 of the district if the property interest is necessary to the 10-2 exercise of the rights or authority conferred by this Act. 10-3 (b) The district must exercise the power of eminent domain 10-4 in the manner provided by Chapter 21, Property Code, but the 10-5 district is not required to deposit in the trial court money or 10-6 bond as provided by Subsection (a), Section 21.021, Property Code. 10-7 (c) In a condemnation proceeding brought by the district, 10-8 the district is not required to pay in advance or give bond or 10-9 other security for costs in the trial court, to give bond for the 10-10 issuance of a temporary restraining order or a temporary 10-11 injunction, or to give bond for costs or supersedeas on an appeal 10-12 or writ of error. 10-13 SECTION 5.10. EXPENSES FOR MOVING FACILITIES OF RAILROADS 10-14 AND UTILITIES. In exercising the power of eminent domain, if the 10-15 board requires relocating, raising, lowering, rerouting, changing 10-16 the grade, or altering the construction of any railroad, highway, 10-17 pipeline, or electric transmission and electric distribution, 10-18 telegraph, or telephone lines, conduits, poles, or facilities, the 10-19 district must bear the actual cost of relocating, raising, 10-20 lowering, rerouting, changing the grade, or altering the 10-21 construction to provide comparable replacement without enhancement 10-22 of facilities, after deducting the net salvage value derived from 10-23 the old facility. 10-24 SECTION 5.11. Indigent Care. (a) Not later than the 10-25 beginning of each operating year, the district shall adopt an 10-26 application procedure to determine eligibility for assistance, as 10-27 provided by Section 61.053, Health and Safety Code. 11-1 (b) If an individual residing in the district is admitted as 11-2 a patient to a facility of the district, the administrator of the 11-3 district may have an inquiry made into the financial circumstances 11-4 of the patient and into the financial circumstances of a relative 11-5 of the patient who is legally responsible for the patient's 11-6 support. 11-7 (c) On finding that the patient or a relative of the patient 11-8 legally responsible for the patient's support can pay for all or 11-9 any part of the care and treatment provided by the district, the 11-10 administrator shall report that finding to the board, and the board 11-11 shall issue an order directing the patient or the relative to pay 11-12 the district each week a specified amount that the individual is 11-13 able to pay. 11-14 (d) The administrator may collect money owed to the district 11-15 from the estate of the patient or from that of a relative who was 11-16 legally responsible for the patient's support in the manner 11-17 provided by law for collection of expenses in the last illness of a 11-18 deceased person. 11-19 (e) To the extent that a patient or a relative of the 11-20 patient legally responsible for the patient's support cannot pay 11-21 for care and treatment provided by the district, the district shall 11-22 supply that care and treatment without charging the patient or the 11-23 patient's relative. 11-24 (f) If there is a dispute relating to an individual's 11-25 ability to pay or if the administrator has any doubt concerning an 11-26 individual's ability to pay, the board shall call witnesses, hear 11-27 and resolve the question, and issue a final order. An appeal from 12-1 a final order of the board must be made to a district court in the 12-2 county in which the district is located, and the substantial 12-3 evidence rule applies. 12-4 SECTION 5.12. REIMBURSEMENT FOR SERVICES. (a) The board 12-5 shall require reimbursement from a county, city, or public hospital 12-6 located outside the boundaries of the district for the district's 12-7 care and treatment of a sick, diseased, or injured person of that 12-8 county, city, or public hospital as provided by Chapter 61, Health 12-9 and Safety Code. 12-10 (b) The board shall require reimbursement from the sheriff 12-11 of Wise County for the district's care and treatment of a person 12-12 confined in a jail facility of Wise County who is not a resident of 12-13 the district. 12-14 (c) On behalf of the district, the board may contract with 12-15 the state or federal government for the state or federal government 12-16 to reimburse the district for treatment of a sick, diseased, or 12-17 injured person. 12-18 SECTION 5.13. SERVICE CONTRACTS. The board may contract 12-19 with a city, county, special district, or other political 12-20 subdivision of the state or a federal agency for the district to 12-21 furnish a mobile emergency medical service or to provide for the 12-22 investigatory or welfare needs of inhabitants of the district. 12-23 SECTION 5.14. DONATIONS, GIFTS, AND ENDOWMENTS. On behalf 12-24 of the district, the board may accept donations, gifts, and 12-25 endowments to be held in trust for any purpose and under any 12-26 direction, limitation, or provision prescribed in writing by the 12-27 donor that is consistent with the proper management of the 13-1 district. 13-2 SECTION 5.15. CONVEYANCE FROM BRIDGEPORT AREA COMMUNITY 13-3 HOSPITAL ASSOCIATION. On behalf of the district, the board may 13-4 accept from the Bridgeport Area Community Hospital Association any 13-5 conveyance to the district of title to land, buildings, 13-6 improvements, equipment, supplies, or other materials related to 13-7 the operation of a hospital or the provision of medical care and 13-8 owned by the hospital association. 13-9 SECTION 5.16. AUTHORITY TO SUE AND BE SUED. The board may 13-10 sue and be sued on behalf of the district. 13-11 ARTICLE 6. DISTRICT FINANCES 13-12 SECTION 6.01. FISCAL YEAR. (a) The district operates on 13-13 the fiscal year established by the board. 13-14 (b) The fiscal year may not be changed during a period in 13-15 which revenue bonds of the district are outstanding or more than 13-16 once in a 24-month period. 13-17 SECTION 6.02. ANNUAL AUDIT. Annually, the board shall have 13-18 an audit made of the financial condition of the district. 13-19 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit 13-20 and other district records are open to inspection during regular 13-21 business hours at the principal office of the district. 13-22 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the 13-23 district shall prepare a proposed annual budget for the district. 13-24 (b) The proposed budget must contain a complete financial 13-25 statement, including a statement of: 13-26 (1) the outstanding obligations of the district; 13-27 (2) the amount of cash on hand to the credit of each 14-1 fund of the district; 14-2 (3) the amount of money received by the district from 14-3 all sources during the previous year; 14-4 (4) the amount of money available to the district from 14-5 all sources during the ensuing year; 14-6 (5) the amount of the balances expected at the end of 14-7 the year in which the budget is being prepared; 14-8 (6) the estimated amount of revenues and balances 14-9 available to cover the proposed budget; and 14-10 (7) the estimated tax rate that will be required. 14-11 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The 14-12 board shall hold a public hearing on the proposed annual budget. 14-13 (b) The board shall publish notice of the hearing in a 14-14 newspaper of general circulation in the district not later than the 14-15 10th day before the date of the hearing. 14-16 (c) Any resident of the district is entitled to be present 14-17 and participate at the hearing. 14-18 (d) At the conclusion of the hearing, the board shall adopt 14-19 a budget by acting on the budget proposed by the administrator. 14-20 The board may make any changes in the proposed budget that in its 14-21 judgment the interests of the taxpayers demand. 14-22 (e) The budget is effective only after adoption by the 14-23 board. 14-24 SECTION 6.06. AMENDING BUDGET. After adoption, the annual 14-25 budget may be amended on the board's approval. 14-26 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be 14-27 spent for an expense not included in the annual budget or an 15-1 amendment to it. 15-2 SECTION 6.08. SWORN STATEMENT. As soon as practicable after 15-3 the close of the fiscal year, the administrator shall prepare for 15-4 the board a sworn statement of the amount of money that belongs to 15-5 the district and an account of the disbursements of that money. 15-6 SECTION 6.09. SPENDING AND INVESTMENTS LIMITATIONS. 15-7 (a) Except as provided by Subsection (a), Section 5.07, and 15-8 Sections 7.01, 7.04, and 7.05 of this Act, the district may not 15-9 incur a debt payable from revenues of the district other than the 15-10 revenues on hand or to be on hand in the current and immediately 15-11 following fiscal years of the district. 15-12 (b) The board may invest operating, depreciation, or 15-13 building reserves only in funds or securities specified by Article 15-14 836 or 837, Revised Statutes. 15-15 SECTION 6.10. DEPOSITORY. (a) The board shall name at 15-16 least one bank to serve as depository for district funds. 15-17 (b) District funds, other than those invested as provided by 15-18 Subsection (b), Section 6.09 of this Act and those transmitted to a 15-19 bank for payment of bonds or obligations issued or assumed by the 15-20 district, shall be deposited as received with the depository bank 15-21 and must remain on deposit. This subsection does not limit the 15-22 power of the board to place a portion of district funds on time 15-23 deposit or to purchase certificates of deposit. 15-24 (c) Before the district deposits funds in a bank in an 15-25 amount that exceeds the maximum amount secured by the Federal 15-26 Deposit Insurance Corporation, the bank must execute a bond or 15-27 other security in an amount sufficient to secure from loss the 16-1 district funds that exceed the amount secured by the Federal 16-2 Deposit Insurance Corporation. 16-3 ARTICLE 7. BONDS 16-4 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue 16-5 and sell bonds authorized by an election in the name and on the 16-6 faith and credit of the hospital district to: 16-7 (1) purchase, construct, acquire, repair, or renovate 16-8 buildings or improvements; 16-9 (2) equip buildings or improvements for hospital 16-10 purposes; or 16-11 (3) acquire and operate a mobile emergency medical 16-12 service. 16-13 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the 16-14 bonds are issued by the district, the board shall levy a tax. 16-15 (b) The tax must be sufficient to create an interest and 16-16 sinking fund to pay the principal of and interest on the bonds as 16-17 they mature. 16-18 (c) In any year, the tax together with any other tax the 16-19 district levies may not exceed the limit approved by the voters at 16-20 the election authorizing the levy of taxes. 16-21 SECTION 7.03. BOND ELECTION. (a) The district may issue 16-22 general obligation bonds only if the bonds are authorized by a 16-23 majority of the qualified voters of the district voting at an 16-24 election called and held for that purpose. 16-25 (b) The board may order a bond election. The order calling 16-26 the election must state the nature and date of the election, the 16-27 hours during which the polls will be open, the location of the 17-1 polling places, the amounts of bonds to be authorized, and the 17-2 maximum maturity of the bonds. 17-3 (c) Notice of a bond election shall be given as provided by 17-4 Article 704, Revised Statutes. 17-5 (d) The board shall canvass the returns and declare the 17-6 results of the election. 17-7 SECTION 7.04. REVENUE BONDS. (a) The board may issue bonds 17-8 to: 17-9 (1) purchase, construct, acquire, repair, equip, or 17-10 renovate buildings or improvements for hospital purposes; 17-11 (2) acquire sites to be used for hospital purposes; or 17-12 (3) acquire and operate a mobile emergency medical 17-13 service to assist the district in carrying out its hospital 17-14 purpose. 17-15 (b) The bonds must be payable from and secured by a pledge 17-16 of all or part of the revenues derived from the operation of the 17-17 district's hospital system. The bonds may be additionally secured 17-18 by a mortgage or deed of trust lien on all or part of district 17-19 property. 17-20 (c) The bonds must be issued in the manner provided by 17-21 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, 17-22 Health and Safety Code, for issuance of revenue bonds by county 17-23 hospital authorities. 17-24 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the 17-25 district may be issued to refund and pay off any outstanding 17-26 indebtedness the district has issued or assumed. 17-27 (b) The bonds must be issued in the manner provided by 18-1 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 18-2 (Article 717k-3, Vernon's Texas Civil Statutes). 18-3 (c) The refunding bonds may be sold and the proceeds applied 18-4 to the payment of outstanding indebtedness or may be exchanged in 18-5 whole or in part for not less than a similar principal amount of 18-6 outstanding indebtedness. If the refunding bonds are to be sold 18-7 and the proceeds applied to the payment of outstanding 18-8 indebtedness, the refunding bonds must be issued and payments made 18-9 in the manner provided by Chapter 503, Acts of the 54th 18-10 Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes). 18-11 SECTION 7.06. INTEREST AND MATURITY. District bonds must 18-12 mature not more than 50 years after the date of their issuance and 18-13 must bear interest at a rate not to exceed that provided by Chapter 18-14 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 18-15 717k-2, Vernon's Texas Civil Statutes). 18-16 SECTION 7.07. EXECUTION OF BONDS. The president of the 18-17 board shall execute the bonds in the name of the district, and the 18-18 secretary of the board shall countersign the bonds in the manner 18-19 provided by the Texas Uniform Facsimile Signature of Public 18-20 Officials Act (Article 717j-1, Vernon's Texas Civil Statutes). 18-21 SECTION 7.08. APPROVAL AND REGISTRATION OF BONDS. 18-22 (a) District bonds are subject to the same requirements with 18-23 regard to approval by the attorney general and registration by the 18-24 comptroller of public accounts as the law provides for approval and 18-25 registration of bonds issued by counties. 18-26 (b) On approval by the attorney general and registration by 18-27 the comptroller of public accounts, the bonds are incontestable for 19-1 any cause. 19-2 SECTION 7.09. BONDS AS INVESTMENTS. District bonds and 19-3 indebtedness assumed by the district are legal and authorized 19-4 investments for: 19-5 (1) banks; 19-6 (2) savings banks; 19-7 (3) trust companies; 19-8 (4) savings and loan associations; 19-9 (5) insurance companies; 19-10 (6) fiduciaries; 19-11 (7) trustees; 19-12 (8) guardians; and 19-13 (9) sinking funds of cities, counties, school 19-14 districts, and other political subdivisions of the state and other 19-15 public funds of the state and its agencies, including the permanent 19-16 school fund. 19-17 SECTION 7.10. BONDS AS SECURITY FOR DEPOSITS. District 19-18 bonds are eligible to secure deposits of public funds of the state 19-19 and of cities, counties, school districts, and other political 19-20 subdivisions of the state. The bonds are lawful and sufficient 19-21 security for deposits to the extent of their value if accompanied 19-22 by all unmatured coupons. 19-23 SECTION 7.11. TAX STATUS OF BONDS. Since the district 19-24 created under this Act is a public entity performing an essential 19-25 public function, bonds issued by the district, any transaction 19-26 relating to the bonds, and profits made in the sale of the bonds 19-27 are free from taxation by the state or by any city, county, special 20-1 district, or other political subdivision of the state. 20-2 ARTICLE 8. TAXES 20-3 SECTION 8.01. LEVY OF TAXES. (a) The board may annually 20-4 levy taxes in an amount not to exceed the limit approved by the 20-5 voters at the election authorizing the levy of taxes. 20-6 (b) The tax rate for all purposes may not exceed 25 cents on 20-7 each $100 valuation of all taxable property in the district. 20-8 (c) The taxes may be used to pay: 20-9 (1) the indebtedness issued or assumed by the 20-10 district; and 20-11 (2) the maintenance and operating expenses of the 20-12 district. 20-13 (d) The district may not levy taxes to pay the principal of 20-14 or interest on revenue bonds issued under this Act. 20-15 SECTION 8.02. BOARD AUTHORITY. (a) Notwithstanding 20-16 Subsection (d), Section 26.12, Tax Code, the board may impose taxes 20-17 for the entire year in which it is created, as if the district had 20-18 been created on January 1 of that year. 20-19 (b) The board shall levy taxes on all property in the 20-20 district subject to hospital district taxation. 20-21 SECTION 8.03. SETTING OF TAX RATE. In setting the tax rate, 20-22 the board shall take into consideration the income of the district 20-23 from sources other than taxation. On determination of the amount 20-24 of tax required to be levied, the board shall make the levy and 20-25 certify it to the tax assessor-collector. 20-26 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) Except as 20-27 provided in Subsection (a), Section 8.02 of this Act, the Tax Code 21-1 governs the appraisal, assessment, and collection of district 21-2 taxes. 21-3 (b) The board may provide for the appointment of a tax 21-4 assessor-collector for the district or may contract for the 21-5 assessment and collection of taxes as provided by the Tax Code. 21-6 ARTICLE 9. MISCELLANEOUS 21-7 SECTION 9.01. LIMITATION ON STATE ASSISTANCE. The state may 21-8 not become obligated for the support or maintenance of a hospital 21-9 district created under this Act, nor may the legislature make a 21-10 direct appropriation for the construction, maintenance, or 21-11 improvement of a facility of the district. 21-12 SECTION 9.02. EMERGENCY. The importance of this legislation 21-13 and the crowded condition of the calendars in both houses create an 21-14 emergency and an imperative public necessity that the 21-15 constitutional rule requiring bills to be read on three several 21-16 days in each house be suspended, and this rule is hereby suspended, 21-17 and that this Act take effect and be in force from and after its 21-18 passage, and it is so enacted.