1-1 By: Nelson S.B. No. 1493
1-2 (In the Senate - Filed May 11, 1993; May 12, 1993, read first
1-3 time and referred to Committee on Intergovernmental Relations;
1-4 May 20, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 10, Nays 0; May 20, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Armbrister x
1-10 Leedom x
1-11 Carriker x
1-12 Henderson x
1-13 Madla x
1-14 Moncrief x
1-15 Patterson x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 Whitmire x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 1493 By: Shapiro
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the creation, administration, powers, duties,
1-24 operation, and financing of the Bridgeport Area Community Hospital
1-25 District; authorizing a tax; granting the authority to issue bonds;
1-26 and granting the power of eminent domain.
1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 ARTICLE 1. GENERAL PROVISIONS
1-29 SECTION 1.01. DEFINITIONS. In this Act:
1-30 (1) "District" means the Bridgeport Area Community
1-31 Hospital District.
1-32 (2) "Board" means the board of directors of the
1-33 district.
1-34 (3) "Director" means a member of the board.
1-35 SECTION 1.02. DISTRICT AUTHORIZATION. The Bridgeport Area
1-36 Community Hospital District may be created and established and, if
1-37 created, must be maintained, operated, and financed in the manner
1-38 provided by Article IX, Section 9, of the Texas Constitution and by
1-39 this Act.
1-40 SECTION 1.03. BOUNDARIES. The boundaries of the district
1-41 are coextensive with the boundaries of the Bridgeport Independent
1-42 School District and that portion of the boundaries of the Jacksboro
1-43 Independent School District that is located in Wise County.
1-44 ARTICLE 2. TEMPORARY DIRECTORS
1-45 SECTION 2.01. TEMPORARY DIRECTORS. On the effective date of
1-46 this Act, the Commissioners Court of Wise County shall appoint five
1-47 persons to serve as temporary directors of the district. Each
1-48 temporary director must be a resident of the district.
1-49 SECTION 2.02. VACANCY IN OFFICE. The Commissioners Court of
1-50 Wise County shall fill a vacancy in the office of temporary
1-51 director by appointment.
1-52 ARTICLE 3. CREATION OF DISTRICT
1-53 SECTION 3.01. CREATION ELECTION. The district may be
1-54 created and a tax may be authorized only if the creation and the
1-55 tax are approved by a majority of the qualified voters of the
1-56 territory of the proposed district voting at an election called and
1-57 held for that purpose.
1-58 SECTION 3.02. ORDERING ELECTION. (a) A majority of the
1-59 temporary directors of the district may order a creation election.
1-60 (b) On presentation of a petition for a creation election
1-61 signed by at least 100 of the registered voters of the territory of
1-62 the proposed district, according to the most recent official list
1-63 of registered voters, the temporary directors shall order a
1-64 creation election. The election shall be called not later than
1-65 the 60th day after the date the petition is presented to the
1-66 district.
1-67 SECTION 3.03. ELECTION ORDER. The order calling the
1-68 election must state:
2-1 (1) the nature of the election, including the
2-2 proposition that is to appear on the ballot;
2-3 (2) the date of the election;
2-4 (3) the hours during which the polls will be open; and
2-5 (4) the location of the polling places.
2-6 SECTION 3.04. NOTICE. The temporary directors shall give
2-7 notice of the election by publishing a substantial copy of the
2-8 election order in a newspaper of general circulation in the
2-9 proposed district once a week for two consecutive weeks. The first
2-10 publication must appear at least 35 days before the date set for
2-11 the election.
2-12 SECTION 3.05. ELECTION DATE. (a) The election shall be
2-13 held not less than 45 days or more than 60 days after the date on
2-14 which the election is ordered.
2-15 (b) Subsection (a), Section 41.001, Election Code, does not
2-16 apply to an election ordered under this article.
2-17 SECTION 3.06. BALLOT PROPOSITION. The ballot for the
2-18 election shall be printed to permit voting for or against the
2-19 proposition: "The creation of the Bridgeport Area Community
2-20 Hospital District and the levy of annual taxes for hospital
2-21 purposes at a rate not to exceed 25 cents on each $100 valuation of
2-22 all taxable property in the district."
2-23 SECTION 3.07. CANVASSING RETURNS. (a) The temporary
2-24 directors shall meet and canvass the returns of the election.
2-25 (b) If the temporary directors find that the election
2-26 results are favorable to the proposition to create the district,
2-27 they shall issue an order declaring the district created.
2-28 (c) If the temporary directors find that the election
2-29 results are not favorable to the proposition to create the
2-30 district, another creation election may not be called and held by
2-31 the board before the first anniversary of the date of the most
2-32 recent creation election.
2-33 SECTION 3.08. EXPIRATION OF ACT. If the creation of the
2-34 district is not approved at an election held within 60 months after
2-35 the effective date of this Act, this Act expires.
2-36 ARTICLE 4. DISTRICT ADMINISTRATION
2-37 SECTION 4.01. BOARD OF DIRECTORS. (a) The district is
2-38 governed by a board of five directors.
2-39 (b) From the time the creation of the district is approved
2-40 until the elected directors take office, the temporary directors
2-41 serve as directors of the district.
2-42 SECTION 4.02. INITIAL DIRECTORS ELECTION. Directors shall
2-43 be elected at an election to be held on the first Saturday in May
2-44 following the creation of the district.
2-45 SECTION 4.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF
2-46 OFFICE. (a) Five directors shall be elected at large from the
2-47 district.
2-48 (b) At the initial election of directors, the five
2-49 candidates receiving the highest number of votes become directors.
2-50 (c) The two directors receiving the highest number of votes
2-51 at the initial election of directors shall serve two-year terms.
2-52 The remaining three directors shall serve one-year terms.
2-53 (d) After the initial election of directors, an election
2-54 shall be held on the first Saturday in May each year, and the
2-55 appropriate number of successor directors shall be elected for
2-56 two-year terms.
2-57 SECTION 4.04. NOTICE OF ELECTION. At least 35 days before
2-58 the date of an election of directors, notice of the election shall
2-59 be published one time in a newspaper with general circulation in
2-60 the district.
2-61 SECTION 4.05. PETITION. (a) A person who wishes to have
2-62 the person's name printed on the ballot as a candidate for director
2-63 must file with the secretary of the board of directors a petition
2-64 signed by at least 10 registered voters of the district asking that
2-65 the person's name be placed on the ballot. The determination of
2-66 whether a person is a registered voter of the district shall be
2-67 based on the most recent official lists of registered voters.
2-68 (b) The petition must be filed with the secretary not later
2-69 than the 45th day before the date of the election.
2-70 SECTION 4.06. QUALIFICATIONS FOR OFFICE. (a) To be
3-1 eligible to be a candidate for or to serve as a director, a person
3-2 must be:
3-3 (1) a resident of the district; and
3-4 (2) a qualified voter.
3-5 (b) An employee of the district may not serve as a director.
3-6 SECTION 4.07. BOARD VACANCY. A vacancy in the office of
3-7 director shall be filled for the unexpired term by appointment by
3-8 the remaining directors.
3-9 SECTION 4.08. OFFICERS. The board shall elect from among
3-10 its members a president and a vice-president. The board shall also
3-11 appoint a secretary. The secretary need not be a director.
3-12 SECTION 4.09. OFFICERS' TERMS; VACANCY. (a) Each officer
3-13 of the board serves for a term of one year.
3-14 (b) The board shall fill a vacancy in a board office for the
3-15 unexpired term.
3-16 SECTION 4.10. COMPENSATION. Directors and officers serve
3-17 without compensation but may be reimbursed for actual expenses
3-18 incurred in the performance of official duties. Those expenses
3-19 must be reported in the district's minute book or other district
3-20 records and must be approved by the board.
3-21 SECTION 4.11. VOTING REQUIREMENT. A concurrence of a
3-22 majority of the members of the board voting is necessary in matters
3-23 relating to the business of the district.
3-24 SECTION 4.12. ADMINISTRATOR, ASSISTANT ADMINISTRATOR, AND
3-25 ATTORNEY. (a) The board may appoint qualified persons as
3-26 administrator of the district, assistant administrator of the
3-27 district, and attorney for the district.
3-28 (b) The administrator, assistant administrator, and attorney
3-29 serve at the will of the board.
3-30 (c) The administrator, assistant administrator, and attorney
3-31 are entitled to compensation as determined by the board.
3-32 (d) Before assuming the duties of administrator, the person
3-33 appointed shall execute a bond payable to the hospital district in
3-34 the amount of not less than $5,000 as determined by the board,
3-35 conditioned on the faithful performance of duties under this Act.
3-36 The board may pay for the bond with district funds.
3-37 SECTION 4.13. APPOINTMENTS TO STAFF. The board may appoint
3-38 to the staff any doctors the board considers necessary for the
3-39 efficient operation of the district and may make temporary
3-40 appointments as considered necessary.
3-41 SECTION 4.14. TECHNICIANS, NURSES, AND OTHER DISTRICT
3-42 EMPLOYEES. (a) The district may employ technicians, nurses,
3-43 fiscal agents, accountants, architects, additional attorneys, and
3-44 other necessary employees.
3-45 (b) The board may delegate to the administrator the
3-46 authority to employ persons for the district.
3-47 SECTION 4.15. GENERAL DUTIES OF ADMINISTRATOR. The
3-48 administrator shall supervise the work and activities of the
3-49 district and shall direct the general affairs of the district,
3-50 subject to the limitations prescribed by the board.
3-51 SECTION 4.16. RETIREMENT BENEFITS. The board may provide
3-52 retirement benefits for employees of the district by establishing
3-53 or administering a retirement program or by electing to participate
3-54 in the Texas County and District Retirement System or in any other
3-55 statewide retirement system in which the district is eligible to
3-56 participate.
3-57 ARTICLE 5. POWERS AND DUTIES
3-58 SECTION 5.01. RESPONSIBILITY OF AND LIMITATION ON
3-59 GOVERNMENTAL ENTITY. (a) On creation of the district, Wise County
3-60 shall convey or transfer to the district:
3-61 (1) title to land, buildings, improvements, and
3-62 equipment related to any hospital system located in the district
3-63 that is owned by Wise County;
3-64 (2) operating funds and reserves for operating
3-65 expenses and funds that have been budgeted by Wise County to
3-66 provide medical care for residents of the district for the
3-67 remainder of the fiscal year in which the district is established;
3-68 (3) taxes levied by Wise County for hospital purposes
3-69 for residents of the district for the year in which the district is
3-70 created; and
4-1 (4) funds established for payment of indebtedness
4-2 assumed by the district.
4-3 (b) On or after creation of the district, Wise County or any
4-4 other political entity may not levy taxes or issue bonds or other
4-5 obligations for hospital purposes or for providing medical care for
4-6 the residents of the district.
4-7 SECTION 5.02. DISTRICT RESPONSIBILITIES. On creation of the
4-8 district, the district:
4-9 (1) assumes full responsibility for operating hospital
4-10 facilities and for furnishing medical and hospital care for the
4-11 district's needy inhabitants;
4-12 (2) assumes any outstanding indebtedness, including
4-13 bonded indebtedness, incurred by Wise County for hospital purposes
4-14 for residents of the district before the district's creation; and
4-15 (3) may operate or provide for the operation of a
4-16 mobile emergency medical or air ambulance service.
4-17 SECTION 5.03. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
4-18 board shall manage, control, and administer the hospital system and
4-19 the funds and resources of the district.
4-20 SECTION 5.04. DISTRICT RULES. The board may adopt rules
4-21 governing the operations of the hospital and hospital system and
4-22 the duties, functions, and responsibilities of district staff and
4-23 employees.
4-24 SECTION 5.05. METHODS AND PROCEDURES. (a) The board may
4-25 prescribe the method of making purchases and expenditures by and
4-26 for the district.
4-27 (b) The board may prescribe accounting and control
4-28 procedures for the district.
4-29 SECTION 5.06. HOSPITAL FACILITIES. (a) The board shall
4-30 determine the type, number, and location of buildings required to
4-31 establish and maintain an adequate hospital system and the type of
4-32 equipment necessary for hospital care.
4-33 (b) The board may acquire property, facilities, and
4-34 equipment for the district for use in the hospital system and may
4-35 mortgage or pledge the property, facilities, or equipment acquired
4-36 as security for the payment of the purchase price.
4-37 (c) The board may lease hospital facilities on behalf of the
4-38 district.
4-39 (d) The board may sell or otherwise dispose of property,
4-40 facilities, or equipment on behalf of the district.
4-41 SECTION 5.07. CONSTRUCTION CONTRACTS. (a) The board may
4-42 enter into construction contracts on behalf of the district.
4-43 However, the board may enter into construction contracts that
4-44 involve spending more than $10,000 only after competitive bidding
4-45 as provided by Subchapter B, Chapter 271, Local Government Code.
4-46 (b) Article 5160, Revised Statutes, as it relates to
4-47 performance and payment bonds, applies to construction contracts
4-48 let by the district.
4-49 SECTION 5.08. DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
4-50 The board may enter into operating or management contracts relating
4-51 to hospital facilities on behalf of the district.
4-52 SECTION 5.09. EMINENT DOMAIN. (a) The district may
4-53 exercise the power of eminent domain to acquire by condemnation a
4-54 fee simple or other interest in property located in the territory
4-55 of the district if the property interest is necessary to the
4-56 exercise of the rights or authority conferred by this Act.
4-57 (b) The district must exercise the power of eminent domain
4-58 in the manner provided by Chapter 21, Property Code, but the
4-59 district is not required to deposit in the trial court money or
4-60 bond as provided by Subsection (a), Section 21.021, Property Code.
4-61 (c) In a condemnation proceeding brought by the district,
4-62 the district is not required to pay in advance or give bond or
4-63 other security for costs in the trial court, to give bond for the
4-64 issuance of a temporary restraining order or a temporary
4-65 injunction, or to give bond for costs or supersedeas on an appeal
4-66 or writ of error.
4-67 SECTION 5.10. EXPENSES FOR MOVING FACILITIES OF RAILROADS
4-68 AND UTILITIES. In exercising the power of eminent domain, if the
4-69 board requires relocating, raising, lowering, rerouting, changing
4-70 the grade, or altering the construction of any railroad, highway,
5-1 pipeline, or electric transmission and electric distribution,
5-2 telegraph, or telephone lines, conduits, poles, or facilities, the
5-3 district must bear the actual cost of relocating, raising,
5-4 lowering, rerouting, changing the grade, or altering the
5-5 construction to provide comparable replacement without enhancement
5-6 of facilities, after deducting the net salvage value derived from
5-7 the old facility.
5-8 SECTION 5.11. Indigent Care. (a) Not later than the
5-9 beginning of each operating year, the district shall adopt an
5-10 application procedure to determine eligibility for assistance, as
5-11 provided by Section 61.053, Health and Safety Code.
5-12 (b) If an individual residing in the district is admitted as
5-13 a patient to a facility of the district, the administrator of the
5-14 district may have an inquiry made into the financial circumstances
5-15 of the patient and into the financial circumstances of a relative
5-16 of the patient who is legally responsible for the patient's
5-17 support.
5-18 (c) On finding that the patient or a relative of the patient
5-19 legally responsible for the patient's support can pay for all or
5-20 any part of the care and treatment provided by the district, the
5-21 administrator shall report that finding to the board, and the board
5-22 shall issue an order directing the patient or the relative to pay
5-23 the district each week a specified amount that the individual is
5-24 able to pay.
5-25 (d) The administrator may collect money owed to the district
5-26 from the estate of the patient or from that of a relative who was
5-27 legally responsible for the patient's support in the manner
5-28 provided by law for collection of expenses in the last illness of a
5-29 deceased person.
5-30 (e) To the extent that a patient or a relative of the
5-31 patient legally responsible for the patient's support cannot pay
5-32 for care and treatment provided by the district, the district shall
5-33 supply that care and treatment without charging the patient or the
5-34 patient's relative.
5-35 (f) If there is a dispute relating to an individual's
5-36 ability to pay or if the administrator has any doubt concerning an
5-37 individual's ability to pay, the board shall call witnesses, hear
5-38 and resolve the question, and issue a final order. An appeal from
5-39 a final order of the board must be made to a district court in the
5-40 county in which the district is located, and the substantial
5-41 evidence rule applies.
5-42 SECTION 5.12. REIMBURSEMENT FOR SERVICES. (a) The board
5-43 shall require reimbursement from a county, city, or public hospital
5-44 located outside the boundaries of the district for the district's
5-45 care and treatment of a sick, diseased, or injured person of that
5-46 county, city, or public hospital as provided by Chapter 61, Health
5-47 and Safety Code.
5-48 (b) The board shall require reimbursement from the sheriff
5-49 of Wise County for the district's care and treatment of a person
5-50 confined in a jail facility of Wise County who is not a resident of
5-51 the district.
5-52 (c) On behalf of the district, the board may contract with
5-53 the state or federal government for the state or federal government
5-54 to reimburse the district for treatment of a sick, diseased, or
5-55 injured person.
5-56 SECTION 5.13. SERVICE CONTRACTS. The board may contract
5-57 with a city, county, special district, or other political
5-58 subdivision of the state or a federal agency for the district to
5-59 furnish a mobile emergency medical service or to provide for the
5-60 investigatory or welfare needs of inhabitants of the district.
5-61 SECTION 5.14. DONATIONS, GIFTS, AND ENDOWMENTS. On behalf
5-62 of the district, the board may accept donations, gifts, and
5-63 endowments to be held in trust for any purpose and under any
5-64 direction, limitation, or provision prescribed in writing by the
5-65 donor that is consistent with the proper management of the
5-66 district.
5-67 SECTION 5.15. CONVEYANCE FROM BRIDGEPORT AREA COMMUNITY
5-68 HOSPITAL ASSOCIATION. On behalf of the district, the board may
5-69 accept from the Bridgeport Area Community Hospital Association any
5-70 conveyance to the district of title to land, buildings,
6-1 improvements, equipment, supplies, or other materials related to
6-2 the operation of a hospital or the provision of medical care and
6-3 owned by the hospital association.
6-4 SECTION 5.16. AUTHORITY TO SUE AND BE SUED. The board may
6-5 sue and be sued on behalf of the district.
6-6 ARTICLE 6. DISTRICT FINANCES
6-7 SECTION 6.01. FISCAL YEAR. (a) The district operates on
6-8 the fiscal year established by the board.
6-9 (b) The fiscal year may not be changed during a period in
6-10 which revenue bonds of the district are outstanding or more than
6-11 once in a 24-month period.
6-12 SECTION 6.02. ANNUAL AUDIT. Annually, the board shall have
6-13 an audit made of the financial condition of the district.
6-14 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit
6-15 and other district records are open to inspection during regular
6-16 business hours at the principal office of the district.
6-17 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the
6-18 district shall prepare a proposed annual budget for the district.
6-19 (b) The proposed budget must contain a complete financial
6-20 statement, including a statement of:
6-21 (1) the outstanding obligations of the district;
6-22 (2) the amount of cash on hand to the credit of each
6-23 fund of the district;
6-24 (3) the amount of money received by the district from
6-25 all sources during the previous year;
6-26 (4) the amount of money available to the district from
6-27 all sources during the ensuing year;
6-28 (5) the amount of the balances expected at the end of
6-29 the year in which the budget is being prepared;
6-30 (6) the estimated amount of revenues and balances
6-31 available to cover the proposed budget; and
6-32 (7) the estimated tax rate that will be required.
6-33 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
6-34 board shall hold a public hearing on the proposed annual budget.
6-35 (b) The board shall publish notice of the hearing in a
6-36 newspaper of general circulation in the district not later than the
6-37 10th day before the date of the hearing.
6-38 (c) Any resident of the district is entitled to be present
6-39 and participate at the hearing.
6-40 (d) At the conclusion of the hearing, the board shall adopt
6-41 a budget by acting on the budget proposed by the administrator.
6-42 The board may make any changes in the proposed budget that in its
6-43 judgment the interests of the taxpayers demand.
6-44 (e) The budget is effective only after adoption by the
6-45 board.
6-46 SECTION 6.06. AMENDING BUDGET. After adoption, the annual
6-47 budget may be amended on the board's approval.
6-48 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be
6-49 spent for an expense not included in the annual budget or an
6-50 amendment to it.
6-51 SECTION 6.08. SWORN STATEMENT. As soon as practicable after
6-52 the close of the fiscal year, the administrator shall prepare for
6-53 the board a sworn statement of the amount of money that belongs to
6-54 the district and an account of the disbursements of that money.
6-55 SECTION 6.09. SPENDING AND INVESTMENTS LIMITATIONS.
6-56 (a) Except as provided by Subsection (a), Section 5.07, and
6-57 Sections 7.01, 7.04, and 7.05 of this Act, the district may not
6-58 incur a debt payable from revenues of the district other than the
6-59 revenues on hand or to be on hand in the current and immediately
6-60 following fiscal years of the district.
6-61 (b) The board may invest operating, depreciation, or
6-62 building reserves only in funds or securities specified by Article
6-63 836 or 837, Revised Statutes.
6-64 SECTION 6.10. DEPOSITORY. (a) The board shall name at
6-65 least one bank to serve as depository for district funds.
6-66 (b) District funds, other than those invested as provided by
6-67 Subsection (b), Section 6.09 of this Act and those transmitted to a
6-68 bank for payment of bonds or obligations issued or assumed by the
6-69 district, shall be deposited as received with the depository bank
6-70 and must remain on deposit. This subsection does not limit the
7-1 power of the board to place a portion of district funds on time
7-2 deposit or to purchase certificates of deposit.
7-3 (c) Before the district deposits funds in a bank in an
7-4 amount that exceeds the maximum amount secured by the Federal
7-5 Deposit Insurance Corporation, the bank must execute a bond or
7-6 other security in an amount sufficient to secure from loss the
7-7 district funds that exceed the amount secured by the Federal
7-8 Deposit Insurance Corporation.
7-9 ARTICLE 7. BONDS
7-10 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue
7-11 and sell bonds authorized by an election in the name and on the
7-12 faith and credit of the hospital district to:
7-13 (1) purchase, construct, acquire, repair, or renovate
7-14 buildings or improvements;
7-15 (2) equip buildings or improvements for hospital
7-16 purposes; or
7-17 (3) acquire and operate a mobile emergency medical
7-18 service.
7-19 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the
7-20 bonds are issued by the district, the board shall levy a tax.
7-21 (b) The tax must be sufficient to create an interest and
7-22 sinking fund to pay the principal of and interest on the bonds as
7-23 they mature.
7-24 (c) In any year, the tax together with any other tax the
7-25 district levies may not exceed the limit approved by the voters at
7-26 the election authorizing the levy of taxes.
7-27 SECTION 7.03. BOND ELECTION. (a) The district may issue
7-28 general obligation bonds only if the bonds are authorized by a
7-29 majority of the qualified voters of the district voting at an
7-30 election called and held for that purpose.
7-31 (b) The board may order a bond election. The order calling
7-32 the election must state the nature and date of the election, the
7-33 hours during which the polls will be open, the location of the
7-34 polling places, the amounts of bonds to be authorized, and the
7-35 maximum maturity of the bonds.
7-36 (c) Notice of a bond election shall be given as provided by
7-37 Article 704, Revised Statutes.
7-38 (d) The board shall canvass the returns and declare the
7-39 results of the election.
7-40 SECTION 7.04. REVENUE BONDS. (a) The board may issue bonds
7-41 to:
7-42 (1) purchase, construct, acquire, repair, equip, or
7-43 renovate buildings or improvements for hospital purposes;
7-44 (2) acquire sites to be used for hospital purposes; or
7-45 (3) acquire and operate a mobile emergency medical
7-46 service to assist the district in carrying out its hospital
7-47 purpose.
7-48 (b) The bonds must be payable from and secured by a pledge
7-49 of all or part of the revenues derived from the operation of the
7-50 district's hospital system. The bonds may be additionally secured
7-51 by a mortgage or deed of trust lien on all or part of district
7-52 property.
7-53 (c) The bonds must be issued in the manner provided by
7-54 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
7-55 Health and Safety Code, for issuance of revenue bonds by county
7-56 hospital authorities.
7-57 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the
7-58 district may be issued to refund and pay off any outstanding
7-59 indebtedness the district has issued or assumed.
7-60 (b) The bonds must be issued in the manner provided by
7-61 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
7-62 (Article 717k-3, Vernon's Texas Civil Statutes).
7-63 (c) The refunding bonds may be sold and the proceeds applied
7-64 to the payment of outstanding indebtedness or may be exchanged in
7-65 whole or in part for not less than a similar principal amount of
7-66 outstanding indebtedness. If the refunding bonds are to be sold
7-67 and the proceeds applied to the payment of outstanding
7-68 indebtedness, the refunding bonds must be issued and payments made
7-69 in the manner provided by Chapter 503, Acts of the 54th
7-70 Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes).
8-1 SECTION 7.06. INTEREST AND MATURITY. District bonds must
8-2 mature not more than 50 years after the date of their issuance and
8-3 must bear interest at a rate not to exceed that provided by Chapter
8-4 3, Acts of the 61st Legislature, Regular Session, 1969 (Article
8-5 717k-2, Vernon's Texas Civil Statutes).
8-6 SECTION 7.07. EXECUTION OF BONDS. The president of the
8-7 board shall execute the bonds in the name of the district, and the
8-8 secretary of the board shall countersign the bonds in the manner
8-9 provided by the Texas Uniform Facsimile Signature of Public
8-10 Officials Act (Article 717j-1, Vernon's Texas Civil Statutes).
8-11 SECTION 7.08. APPROVAL AND REGISTRATION OF BONDS.
8-12 (a) District bonds are subject to the same requirements with
8-13 regard to approval by the attorney general and registration by the
8-14 comptroller of public accounts as the law provides for approval and
8-15 registration of bonds issued by counties.
8-16 (b) On approval by the attorney general and registration by
8-17 the comptroller of public accounts, the bonds are incontestable for
8-18 any cause.
8-19 SECTION 7.09. BONDS AS INVESTMENTS. District bonds and
8-20 indebtedness assumed by the district are legal and authorized
8-21 investments for:
8-22 (1) banks;
8-23 (2) savings banks;
8-24 (3) trust companies;
8-25 (4) savings and loan associations;
8-26 (5) insurance companies;
8-27 (6) fiduciaries;
8-28 (7) trustees;
8-29 (8) guardians; and
8-30 (9) sinking funds of cities, counties, school
8-31 districts, and other political subdivisions of the state and other
8-32 public funds of the state and its agencies, including the permanent
8-33 school fund.
8-34 SECTION 7.10. BONDS AS SECURITY FOR DEPOSITS. District
8-35 bonds are eligible to secure deposits of public funds of the state
8-36 and of cities, counties, school districts, and other political
8-37 subdivisions of the state. The bonds are lawful and sufficient
8-38 security for deposits to the extent of their value if accompanied
8-39 by all unmatured coupons.
8-40 SECTION 7.11. TAX STATUS OF BONDS. Since the district
8-41 created under this Act is a public entity performing an essential
8-42 public function, bonds issued by the district, any transaction
8-43 relating to the bonds, and profits made in the sale of the bonds
8-44 are free from taxation by the state or by any city, county, special
8-45 district, or other political subdivision of the state.
8-46 ARTICLE 8. TAXES
8-47 SECTION 8.01. LEVY OF TAXES. (a) The board may annually
8-48 levy taxes in an amount not to exceed the limit approved by the
8-49 voters at the election authorizing the levy of taxes.
8-50 (b) The tax rate for all purposes may not exceed 25 cents on
8-51 each $100 valuation of all taxable property in the district.
8-52 (c) The taxes may be used to pay:
8-53 (1) the indebtedness issued or assumed by the
8-54 district; and
8-55 (2) the maintenance and operating expenses of the
8-56 district.
8-57 (d) The district may not levy taxes to pay the principal of
8-58 or interest on revenue bonds issued under this Act.
8-59 SECTION 8.02. BOARD AUTHORITY. (a) Notwithstanding
8-60 Subsection (d), Section 26.12, Tax Code, the board may impose taxes
8-61 for the entire year in which it is created, as if the district had
8-62 been created on January 1 of that year.
8-63 (b) The board shall levy taxes on all property in the
8-64 district subject to hospital district taxation.
8-65 SECTION 8.03. SETTING OF TAX RATE. In setting the tax rate,
8-66 the board shall take into consideration the income of the district
8-67 from sources other than taxation. On determination of the amount
8-68 of tax required to be levied, the board shall make the levy and
8-69 certify it to the tax assessor-collector.
8-70 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) Except as
9-1 provided in Subsection (a), Section 8.02 of this Act, the Tax Code
9-2 governs the appraisal, assessment, and collection of district
9-3 taxes.
9-4 (b) The board may provide for the appointment of a tax
9-5 assessor-collector for the district or may contract for the
9-6 assessment and collection of taxes as provided by the Tax Code.
9-7 ARTICLE 9. MISCELLANEOUS
9-8 SECTION 9.01. LIMITATION ON STATE ASSISTANCE. The state may
9-9 not become obligated for the support or maintenance of a hospital
9-10 district created under this Act, nor may the legislature make a
9-11 direct appropriation for the construction, maintenance, or
9-12 improvement of a facility of the district.
9-13 SECTION 9.02. EMERGENCY. The importance of this legislation
9-14 and the crowded condition of the calendars in both houses create an
9-15 emergency and an imperative public necessity that the
9-16 constitutional rule requiring bills to be read on three several
9-17 days in each house be suspended, and this rule is hereby suspended,
9-18 and that this Act take effect and be in force from and after its
9-19 passage, and it is so enacted.
9-20 * * * * *
9-21 Austin,
9-22 Texas
9-23 May 20, 1993
9-24 Hon. Bob Bullock
9-25 President of the Senate
9-26 Sir:
9-27 We, your Committee on Intergovernmental Relations to which was
9-28 referred S.B. No. 1493, have had the same under consideration, and
9-29 I am instructed to report it back to the Senate with the
9-30 recommendation that it do not pass, but that the Committee
9-31 Substitute adopted in lieu thereof do pass and be printed.
9-32 Armbrister,
9-33 Chairman
9-34 * * * * *
9-35 WITNESSES
9-36 FOR AGAINST ON
9-37 ___________________________________________________________________
9-38 Name: John Brooks x
9-39 Representing: Bridgeport Area Community Hosp
9-40 City: Bridgeport
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