H.B. No. 2873
1-1 AN ACT
1-2 relating to the Nacogdoches County Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 3, Chapter 431, Acts of the 60th
1-5 Legislature, Regular Session, 1967, is amended to read as follows:
1-6 Sec. 3. The district shall not be created, nor shall any tax
1-7 therein be authorized unless and until such creation and such tax
1-8 are approved by a majority of the qualified <property taxpaying>
1-9 electors of the area of the proposed district voting at an election
1-10 called for such purpose. Such election may be called by the County
1-11 Judge of Nacogdoches County or shall be called by the county judge
1-12 upon presentation of a petition therefor signed by at least 100
1-13 qualified <property taxpaying> electors of the area of the proposed
1-14 district. Such election shall be held not less than 45 nor more
1-15 than 90 days from the date the election is ordered. The order
1-16 calling the election shall specify the date, place or places of
1-17 holding the election, the form of ballot, the presiding judge and
1-18 alternate judge for each voting place, and provide for clerks as in
1-19 county elections. Notice of election shall be given by publishing
1-20 a substantial copy of the election order in a newspaper of general
1-21 circulation in the county once a week for two consecutive weeks,
1-22 the first publication to appear at least 30 days prior to the date
1-23 established for the election. If the proposition to create the
1-24 Nacogdoches County Hospital District fails to carry at the
2-1 election, no other election for the same purpose may be held within
2-2 one year after the result of the election is announced officially.
2-3 At said election there shall be submitted to the qualified
2-4 <property taxpaying> electors of the area of the proposed district
2-5 the proposition of whether the hospital district shall be created
2-6 with authority to levy annual taxes at a rate not to exceed 75
2-7 cents on each $100 valuation of taxable property within such
2-8 district subject to hospital district taxation for the purpose of
2-9 meeting the requirements of the district's bonds, indebtedness
2-10 assumed by it, and its maintenance and operating expenses.
2-11 The ballots for such creation election shall have printed
2-12 thereon the following:
2-13 "FOR the creation of NACOGDOCHES COUNTY HOSPITAL DISTRICT,
2-14 providing for the levy of a tax not to exceed 75 cents on each $100
2-15 valuation, and providing for the assumption by such district of all
2-16 outstanding bonds and indebtedness heretofore issued by Nacogdoches
2-17 County and by any city or town within said County for hospital
2-18 purposes."
2-19 "AGAINST the creation of NACOGDOCHES COUNTY HOSPITAL
2-20 DISTRICT, providing for the levy of a tax not to exceed 75 cents on
2-21 each $100 valuation, and providing for the assumption by such
2-22 district of all outstanding bonds and indebtedness heretofore
2-23 issued by Nacogdoches County and by any city or town within said
2-24 County for hospital purposes."
2-25 Within 10 days after such election is held, or as soon
2-26 thereafter as possible, the commissioners court of said county
2-27 shall convene and canvass the returns of the election and, in the
3-1 event such election results favorably to the proposition specified
3-2 in Section 2, the court shall so find and declare the hospital
3-3 district established and created.
3-4 SECTION 2. Section 4, Chapter 431, Acts of the 60th
3-5 Legislature, Regular Session, 1967, is amended to read as follows:
3-6 Sec. 4. One director is elected from each commissioner
3-7 precinct and three directors are elected at large. Directors serve
3-8 staggered two-year terms. <On the same day an election is ordered
3-9 on the proposition specified in Section 2, the county judge shall
3-10 also order an election for seven directors to serve as the initial
3-11 board of directors of the district in the event the same is created
3-12 and established. The election for such directors shall be held at
3-13 the same time, at the same place or places, and with the same
3-14 election officials as prescribed in the election order for the
3-15 creation of the district and notice thereof shall be given in the
3-16 same manner as the election for the creation of the district, but
3-17 separate ballots shall be used. Persons may have their names
3-18 printed on the ballot as candidate for the office of director by
3-19 submitting to the county clerk an application therefor at least 30
3-20 days prior to the date set for the holding of such election. Such
3-21 application shall be accepted by the county clerk only if it is
3-22 accompanied by evidence (in affidavit form or otherwise) that the
3-23 candidate has the requisite qualifications to serve as a director
3-24 as in this Act provided, and such application shall be signed by
3-25 the candidate and at least 25 other qualified electors of the
3-26 county. In the event the district is created, the four candidates
3-27 receiving the largest number of votes shall serve until the first
4-1 Saturday in April of the second year following the election for the
4-2 creation of the district, and the three candidates receiving the
4-3 next largest number of votes shall serve until the first Saturday
4-4 in April of the year following the election for the creation of the
4-5 district. Successors shall be elected by a vote of the electors of
4-6 the entire district for two-year terms.> Each director and his
4-7 successor in office shall qualify by executing the constitutional
4-8 oath of office, and such directors, acting as a board, shall have
4-9 and exercise the powers hereafter conferred.
4-10 To be eligible to be a candidate for or to serve as a
4-11 director, a person must be a resident of the district and a
4-12 qualified voter. In addition to those qualifications, a person who
4-13 is elected from a commissioner precinct or who is appointed to fill
4-14 a vacancy for a commissioner precinct must be a resident of that
4-15 commissioner precinct. An employee of the district may not serve
4-16 as a director.
4-17 <No person shall be a member of the board of directors of
4-18 said hospital district unless he owns land subject to taxation
4-19 therein and unless at the time of such election or appointment he
4-20 shall be a qualified elector of the district.>
4-21 The board of directors shall organize by electing one of
4-22 their number as president and one of their number as vice
4-23 president. Each officer of the board serves for a term of one
4-24 year. The board shall fill a vacancy in a board office for the
4-25 unexpired term. A secretary, who need not be a director, shall
4-26 also be elected. Any four members of the board of directors shall
4-27 constitute a quorum and a majority of the members of the board
5-1 voting must concur in a matter relating <concurrence of four shall
5-2 be sufficient in all matters pertaining> to the business of the
5-3 district. All vacancies in the office of director shall be filled
5-4 for the unexpired term by appointment of the remainder of the board
5-5 of directors. In the event the number of directors shall be
5-6 reduced to less than four for any reason, the remaining directors
5-7 shall immediately call a special election to fill said vacancies,
5-8 and upon failure to do so, a district court, upon application of
5-9 any elector or taxpayer of the district, may issue a mandate
5-10 requiring that such election be ordered by the remaining directors.
5-11 A regular election of directors shall be held on the first
5-12 Saturday in May <April> of each year and the appropriate number of
5-13 successor directors shall be elected. Notice <and notice> of such
5-14 election shall be published in a newspaper of general circulation
5-15 in the county one time at least 10 days prior to the date of
5-16 election. Any person desiring his name to be printed on the ballot
5-17 as a candidate for director shall file a petition, signed by not
5-18 less than 25 qualified electors asking that such name be printed on
5-19 the ballot, with the secretary of the board of directors of the
5-20 district. The petition must specify the commissioner precinct the
5-21 person wants to represent or that the person wants to represent the
5-22 district at large. Such petition shall be so filed at least 25
5-23 days prior to the date of election. The secretary shall accept
5-24 such petition only if it is accompanied by evidence such candidate
5-25 has the requisite qualifications as herein prescribed.
5-26 SECTION 3. Section 6, Chapter 431, Acts of the 60th
5-27 Legislature, Regular Session, 1967, is amended to read as follows:
6-1 Sec. 6. The district shall be operated on the basis of a
6-2 fiscal year commencing on July 1 of each year and ending on June 30
6-3 of the following year, and it shall cause an audit to be made of
6-4 the financial condition of said district, which together with other
6-5 records of the district shall be open to inspection at the
6-6 principal office of the district. The administrator or manager
6-7 shall prepare an annual budget for approval by the board of
6-8 directors. The budget shall also contain a complete financial
6-9 statement of the district showing all outstanding obligations of
6-10 the district, the cash on hand to the credit of each and every fund
6-11 of the district, the funds received from all sources during the
6-12 previous year, the funds available from all sources during the
6-13 ensuing year, with balances expected at year end of the year in
6-14 which the budget is being prepared, and estimated revenues and
6-15 balances available to cover the proposed budget and the estimated
6-16 tax rate which will be required. A public hearing on the annual
6-17 budget shall be held by the board of directors after notice of such
6-18 hearing has been published one time at least 10 days before the
6-19 date set therefor. Any resident <property taxpayer> of the
6-20 district shall have the right to be present and participate in said
6-21 hearing. At the conclusion of the hearing, the budget, as proposed
6-22 by the president, shall be acted upon by the board of directors.
6-23 The board of directors shall have authority to make such changes in
6-24 the budget as in their judgment the law warrants and the interest
6-25 of the taxpayers demand. No expenditure may be made for any
6-26 expense not included in the annual budget or an amendment thereto.
6-27 The annual budget may be amended from time to time as the
7-1 circumstances may require, but the annual budget, and all
7-2 amendments thereto, shall be approved by the board of directors.
7-3 As soon as practicable after the close of each fiscal year, the
7-4 administrator or manager shall prepare for the board a full sworn
7-5 statement of all moneys belonging to the district and a full
7-6 account of the disbursements of same.
7-7 SECTION 4. Section 7, Chapter 431, Acts of the 60th
7-8 Legislature, Regular Session, 1967, is amended to read as follows:
7-9 Sec. 7. The board of directors shall have the power and
7-10 authority to issue and sell its bonds in the name and upon the
7-11 faith and credit of such hospital district for the purchase,
7-12 construction, acquisition, repair or renovation of buildings and
7-13 improvements and equipping the same for hospital purposes, and for
7-14 any or all of such purposes. At the time of issuance of any bonds
7-15 by the district a tax shall be levied by the board sufficient to
7-16 create an interest and sinking fund to pay the interest on and
7-17 principal of said bonds as same mature, providing such tax together
7-18 with any other taxes levied for said district shall not exceed 75
7-19 cents on each $100 valuation of taxable property in any one year,
7-20 within the district subject to hospital district taxation. No
7-21 bonds shall be issued by such hospital district except refunding
7-22 bonds until authorized by a majority of the qualified electors of
7-23 the district <who own taxable property therein and who have duly
7-24 rendered the same for taxation> voting at an election called for
7-25 such purpose. The order for bond election shall specify the date
7-26 of the election, the amount of bonds to be authorized, the maximum
7-27 maturity thereof, the maximum rate of interest they are to bear,
8-1 the place or places where the election shall be held, the presiding
8-2 judge and alternate judge for each voting place and provide for
8-3 clerks as in county elections. Notice of any bond election (except
8-4 one held under the provisions of Section 8, in which instance
8-5 notice shall be given as provided in Section 3) shall be given as
8-6 provided in Article 704, Revised <Civil> Statutes <of Texas, 1925,
8-7 as amended>, and shall be conducted in accordance with the general
8-8 laws of Texas pertaining to general elections, except as modified
8-9 by the provisions of this Act.
8-10 Refunding bonds of the district may be issued for the purpose
8-11 of refunding and paying off any outstanding indebtedness it has
8-12 issued or assumed. Such refunding bonds may be sold and the
8-13 proceeds thereof applied to the payment of outstanding
8-14 indebtedness, or may be exchanged in whole or in part for not less
8-15 than a like principal amount of such outstanding indebtedness
8-16 provided that, if refunding bonds are to be exchanged for a like
8-17 amount of said outstanding indebtedness, such refunding bonds shall
8-18 bear interest at the same or lower rate than borne by the debt
8-19 refunded, unless it is shown mathematically that a saving will
8-20 result in the total amount of interest to be paid on said refunding
8-21 bonds, and provided further that if such refunding bonds are to be
8-22 sold and the proceeds thereof applied to the payment of any such
8-23 outstanding indebtedness, same shall be issued and payments made in
8-24 the manner specified by Chapter 503, Acts of the 54th Legislature,
8-25 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).
8-26 Bonds of the district shall bear interest not to exceed six
8-27 percent per annum, shall mature within 40 years of their date,
9-1 shall be executed in the name of the hospital district and in its
9-2 behalf by the president of the board and countersigned by the
9-3 secretary in the manner provided by Chapter 204, Acts of the 57th
9-4 Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas
9-5 Civil Statutes), as amended, and shall be subject to the same
9-6 requirements in the matter of approval by the Attorney General of
9-7 Texas and registration by the Comptroller of Public Accounts of the
9-8 State of Texas as are by law provided for approval and registration
9-9 of bonds issued by counties. Upon the approval of such bonds by
9-10 the attorney general and registration by the comptroller, the same
9-11 shall be incontestable for any cause.
9-12 SECTION 5. Section 10, Chapter 431, Acts of the 60th
9-13 Legislature, Regular Session, 1967, is amended to read as follows:
9-14 Sec. 10. The board of directors of such district shall have
9-15 the power to prescribe the method and manner of making purchases
9-16 and expenditures by and for such hospital district, and also shall
9-17 be authorized to prescribe all accounting and control procedures.
9-18 Pending receipt of accounts receivable, the board may borrow money
9-19 for the payment of maintenance and operating expenses of the
9-20 district. A loan obtained by the district must be repaid not later
9-21 than one year after the date on which the loan is made. All
9-22 contracts for construction or purchases involving the expenditure
9-23 of more than $10,000 <$2,000> may be made only after advertising in
9-24 the manner provided by Subchapter B, Chapter 271, Local Government
9-25 Code <Chapter 163, General Laws, Acts of the 42nd Legislature,
9-26 Regular Session, 1931 (Article 2368a, Vernon's Texas Civil
9-27 Statutes), as amended>. The provisions of Article 5160 relating to
10-1 performance and payment bonds shall apply to construction contracts
10-2 let by the district. The district may acquire equipment for use in
10-3 its hospital system and mortgage or pledge the property so acquired
10-4 as security for the payment of the purchase price, but any such
10-5 contract shall provide for the entire obligation of the district to
10-6 be retired within five years from the date of the contract. Except
10-7 as permitted by this section and as permitted by Sections 7 and 8,
10-8 the district may incur no obligation payable from any revenues of
10-9 the district (taxes or otherwise) except those on hand or to be on
10-10 hand within the then current and following fiscal year of the
10-11 district.
10-12 SECTION 6. Section 15(b), Chapter 431, Acts of the 60th
10-13 Legislature, Regular Session, 1967, is amended to read as follows:
10-14 (b) Under this subsection, taxes shall be assessed and
10-15 collected by a tax assessor-collector appointed by the directors,
10-16 who shall also fix the terms of his employment, compensation and
10-17 requirement for bond to assure the faithful performance of his
10-18 duties, but in no event shall such bond be for less than $5,000.
10-19 The directors shall also annually appoint five persons to serve as
10-20 a board of equalization and shall fix their compensation. Each
10-21 member of the board and the tax assessor shall be residents of the
10-22 district <and own real property subject to hospital district
10-23 taxation,> and each shall have the same duties (including the
10-24 obligation to execute the oath of office) as required by county
10-25 officials exercising such powers and duties. Except as in this law
10-26 provided to the contrary, all the provisions of the Tax Code <Title
10-27 122, Revised Civil Statutes of Texas, 1925, as amended,> shall
11-1 apply to the district.
11-2 SECTION 7. Chapter 431, Acts of the 60th Legislature,
11-3 Regular Session, 1967, is amended by adding Sections 16A-16E to
11-4 read as follows:
11-5 Sec. 16A. The board may provide retirement benefits for
11-6 employees of the district by:
11-7 (1) establishing or administering a retirement
11-8 program; or
11-9 (2) electing to participate in the Texas County and
11-10 District Retirement System or in any other statewide retirement
11-11 system in which the district is eligible to participate.
11-12 Sec. 16B. The board may adopt rules governing the operation
11-13 of the hospital and hospital system and the duties, functions, and
11-14 responsibilities of district staff and employees.
11-15 Sec. 16C. The board may contract with a municipality,
11-16 county, special district, or other political subdivision of the
11-17 state or with a state or federal agency for the district to:
11-18 (1) furnish a mobile emergency medical service;
11-19 (2) provide for the investigatory or welfare needs of
11-20 inhabitants of the district; or
11-21 (3) provide a rural health clinic to care for the
11-22 inhabitants of the contracting political subdivision.
11-23 Sec. 16D. (a) Registered voters of a defined territory that
11-24 is not included in a district may file a petition with the
11-25 secretary of the board requesting the inclusion of the territory in
11-26 the district. The petition must be signed by at least 50
11-27 registered voters of the territory or a majority of those voters,
12-1 whichever is less.
12-2 (b) The board by order shall set a time and place to hold a
12-3 hearing on the petition to include the territory in the district.
12-4 The board shall set a date for the hearing that is after the 30th
12-5 day after the date the board issues the order.
12-6 (c) If after the hearing the board finds that annexation of
12-7 the territory into the district would be feasible and would benefit
12-8 the district, the board may approve the annexation by a resolution
12-9 entered in its minutes. The board is not required to include all
12-10 of the territory described in the petition if the board finds that
12-11 a modification or change is necessary or desirable.
12-12 (d) Annexation of territory is final when approved by a
12-13 majority of the voters at an election held in the district and by a
12-14 majority of the voters at a separate election held in the territory
12-15 to be annexed. If the district has outstanding debts or taxes, the
12-16 voters in the election to approve the annexation must also
12-17 determine if the annexed territory will assume its proportion of
12-18 the debts or taxes if added to the district.
12-19 (e) The election ballots shall be printed to permit voting
12-20 for or against the following, as applicable:
12-21 (1) "Adding (description of territory to be added) to
12-22 the Nacogdoches County Hospital District."
12-23 (2) "(Description of territory to be added) assuming
12-24 its proportionate share of the outstanding debts and taxes of the
12-25 Nacogdoches County Hospital District, if it is added to the
12-26 district."
12-27 (f) The election shall be held after the 45th day and on or
13-1 before the 60th day after the date the election is ordered. The
13-2 election shall be ordered and notice of the election shall be given
13-3 in the same manner as provided by Section 3 for ordering and giving
13-4 notice of an election authorizing creation of the district.
13-5 Section 41.001(a), Election Code, does not apply to an election
13-6 held under this section.
13-7 Sec. 16E. (a) The board shall require reimbursement from a
13-8 county, municipality, or public hospital located outside the
13-9 boundaries of the district for the district's care and treatment of
13-10 a sick, diseased, or injured person of that county, municipality,
13-11 or public hospital as provided by Chapter 61, Health and Safety
13-12 Code.
13-13 (b) The board shall require reimbursement from the sheriff
13-14 or police chief of a county or municipality for the district's care
13-15 and treatment of a person confined in a jail facility of the county
13-16 or municipality who is not a resident of the district.
13-17 (c) The board may contract with the state or federal
13-18 government for the state or federal government to reimburse the
13-19 district for treatment of a sick, diseased, or injured person.
13-20 SECTION 8. The importance of this legislation and the
13-21 crowded condition of the calendars in both houses create an
13-22 emergency and an imperative public necessity that the
13-23 constitutional rule requiring bills to be read on three several
13-24 days in each house be suspended, and this rule is hereby suspended,
13-25 and that this Act take effect and be in force from and after its
13-26 passage, and it is so enacted.