By: Nelson S.B. No. 1493
73R9940 DFL-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of the Bridgeport Area Community Hospital
1-4 District; authorizing a tax; granting the authority to issue bonds;
1-5 and granting the power of eminent domain.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1. GENERAL PROVISIONS
1-8 SECTION 1.01. DEFINITIONS. In this Act:
1-9 (1) "District" means the Bridgeport Area Community
1-10 Hospital District.
1-11 (2) "Board" means the board of directors of the
1-12 district.
1-13 (3) "Director" means a member of the board.
1-14 SECTION 1.02. DISTRICT AUTHORIZATION. The Bridgeport Area
1-15 Community Hospital District may be created and established and, if
1-16 created, must be maintained, operated, and financed in the manner
1-17 provided by Article IX, Section 9, of the Texas Constitution and by
1-18 this Act.
1-19 SECTION 1.03. BOUNDARIES. The boundaries of the district
1-20 are coextensive with the boundaries of the Bridgeport Independent
1-21 School District and that portion of the boundaries of the Jacksboro
1-22 Independent School District that is located in Wise County.
1-23 ARTICLE 2. TEMPORARY DIRECTORS
1-24 SECTION 2.01. TEMPORARY DIRECTORS. On the effective date of
2-1 this Act, the commissioners court of Wise County shall appoint five
2-2 persons to serve as temporary directors of the district. Each
2-3 temporary director must be a resident of the district.
2-4 SECTION 2.02. VACANCY IN OFFICE. The commissioners court of
2-5 Wise County shall fill a vacancy in the office of temporary
2-6 director by appointment.
2-7 ARTICLE 3. CREATION OF DISTRICT
2-8 SECTION 3.01. CREATION ELECTION. The district may be
2-9 created and a tax may be authorized only if the creation and the
2-10 tax are approved by a majority of the qualified voters of the
2-11 territory of the proposed district voting at an election called and
2-12 held for that purpose.
2-13 SECTION 3.02. ORDERING ELECTION. (a) A majority of the
2-14 temporary directors of the district may order a creation election.
2-15 (b) On presentation of a petition for a creation election
2-16 signed by at least 100 of the registered voters of the territory of
2-17 the proposed district, according to the most recent official list
2-18 of registered voters, the temporary directors shall order a
2-19 creation election. The election shall be called not later than the
2-20 60th day after the date the petition is presented to the 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) Section 41.001(a), Election Code, does not apply to an
3-11 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 proscribe 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 Section 21.021(a), 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. (a)
15-7 Except as provided by Sections 5.07(a), 7.01, 7.04, and 7.05 of
15-8 this Act, the district may not incur a debt payable from revenues
15-9 of the district other than the revenues on hand or to be on hand in
15-10 the current and immediately following fiscal years of the district.
15-11 (b) The board may invest operating, depreciation, or
15-12 building reserves only in funds or securities specified by Article
15-13 836 or 837, Revised Statutes.
15-14 SECTION 6.10. DEPOSITORY. (a) The board shall name at
15-15 least one bank to serve as depository for district funds.
15-16 (b) District funds, other than those invested as provided by
15-17 Section 6.09(b) of this Act and those transmitted to a bank for
15-18 payment of bonds or obligations issued or assumed by the district,
15-19 shall be deposited as received with the depository bank and must
15-20 remain on deposit. This subsection does not limit the power of the
15-21 board to place a portion of district funds on time deposit or to
15-22 purchase certificates of deposit.
15-23 (c) Before the district deposits funds in a bank in an
15-24 amount that exceeds the maximum amount secured by the Federal
15-25 Deposit Insurance Corporation, the bank must execute a bond or
15-26 other security in an amount sufficient to secure from loss the
15-27 district funds that exceed the amount secured by the Federal
16-1 Deposit Insurance Corporation.
16-2 ARTICLE 7. BONDS
16-3 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue
16-4 and sell bonds authorized by an election in the name and on the
16-5 faith and credit of the hospital district to:
16-6 (1) purchase, construct, acquire, repair, or renovate
16-7 buildings or improvements;
16-8 (2) equip buildings or improvements for hospital
16-9 purposes; or
16-10 (3) acquire and operate a mobile emergency medical
16-11 service.
16-12 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the
16-13 bonds are issued by the district, the board shall levy a tax.
16-14 (b) The tax must be sufficient to create an interest and
16-15 sinking fund to pay the principal of and interest on the bonds as
16-16 they mature.
16-17 (c) In any year, the tax together with any other tax the
16-18 district levies may not exceed the limit approved by the voters at
16-19 the election authorizing the levy of taxes.
16-20 SECTION 7.03. BOND ELECTION. (a) The district may issue
16-21 general obligation bonds only if the bonds are authorized by a
16-22 majority of the qualified voters of the district voting at an
16-23 election called and held for that purpose.
16-24 (b) The board may order a bond election. The order calling
16-25 the election must state the nature and date of the election, the
16-26 hours during which the polls will be open, the location of the
16-27 polling places, the amounts of bonds to be authorized, and the
17-1 maximum maturity of the bonds.
17-2 (c) Notice of a bond election shall be given as provided by
17-3 Article 704, Revised Statutes.
17-4 (d) The board shall canvass the returns and declare the
17-5 results of the election.
17-6 SECTION 7.04. REVENUE BONDS. (a) The board may issue bonds
17-7 to:
17-8 (1) purchase, construct, acquire, repair, equip, or
17-9 renovate buildings or improvements for hospital purposes;
17-10 (2) acquire sites to be used for hospital purposes; or
17-11 (3) acquire and operate a mobile emergency medical
17-12 service to assist the district in carrying out its hospital
17-13 purpose.
17-14 (b) The bonds must be payable from and secured by a pledge
17-15 of all or part of the revenues derived from the operation of the
17-16 district's hospital system. The bonds may be additionally secured
17-17 by a mortgage or deed of trust lien on all or part of district
17-18 property.
17-19 (c) The bonds must be issued in the manner provided by
17-20 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
17-21 Health and Safety Code, for issuance of revenue bonds by county
17-22 hospital authorities.
17-23 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the
17-24 district may be issued to refund and pay off any outstanding
17-25 indebtedness the district has issued or assumed.
17-26 (b) The bonds must be issued in the manner provided by
17-27 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
18-1 (Article 717k-3, Vernon's Texas Civil Statutes).
18-2 (c) The refunding bonds may be sold and the proceeds applied
18-3 to the payment of outstanding indebtedness or may be exchanged in
18-4 whole or in part for not less than a similar principal amount of
18-5 outstanding indebtedness. If the refunding bonds are to be sold
18-6 and the proceeds applied to the payment of outstanding
18-7 indebtedness, the refunding bonds must be issued and payments made
18-8 in the manner provided by Chapter 503, Acts of the 54th
18-9 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
18-10 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. (a)
18-22 District bonds are subject to the same requirements with regard to
18-23 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) The board may levy
20-16 taxes for the entire year in which the district is created.
20-17 (b) The board shall levy taxes on all property in the
20-18 district subject to hospital district taxation.
20-19 SECTION 8.03. SETTING OF TAX RATE. In setting the tax rate,
20-20 the board shall take into consideration the income of the district
20-21 from sources other than taxation. On determination of the amount
20-22 of tax required to be levied, the board shall make the levy and
20-23 certify it to the tax assessor-collector.
20-24 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) The Tax
20-25 Code governs the appraisal, assessment, and collection of district
20-26 taxes.
20-27 (b) The board may provide for the appointment of a tax
21-1 assessor-collector for the district or may contract for the
21-2 assessment and collection of taxes as provided by the Tax Code.
21-3 ARTICLE 9. MISCELLANEOUS
21-4 SECTION 9.01. LIMITATION ON STATE ASSISTANCE. The state may
21-5 not become obligated for the support or maintenance of a hospital
21-6 district created under this Act, nor may the legislature make a
21-7 direct appropriation for the construction, maintenance, or
21-8 improvement of a facility of the district.
21-9 SECTION 9.02. EMERGENCY. The importance of this legislation
21-10 and the crowded condition of the calendars in both houses create an
21-11 emergency and an imperative public necessity that the
21-12 constitutional rule requiring bills to be read on three several
21-13 days in each house be suspended, and this rule is hereby suspended,
21-14 and that this Act take effect and be in force from and after its
21-15 passage, and it is so enacted.