1-1 By: Johnson (Senate Sponsor - Nixon) H.B. No. 2873
1-2 (In the Senate - Received from the House May 8, 1995;
1-3 May 9, 1995, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 19, 1995, reported favorably by
1-5 the following vote: Yeas 8, Nays 0; May 19, 1995, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the Nacogdoches County Hospital District.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 3, Chapter 431, Acts of the 60th
1-12 Legislature, Regular Session, 1967, is amended to read as follows:
1-13 Sec. 3. The district shall not be created, nor shall any tax
1-14 therein be authorized unless and until such creation and such tax
1-15 are approved by a majority of the qualified <property taxpaying>
1-16 electors of the area of the proposed district voting at an election
1-17 called for such purpose. Such election may be called by the County
1-18 Judge of Nacogdoches County or shall be called by the county judge
1-19 upon presentation of a petition therefor signed by at least 100
1-20 qualified <property taxpaying> electors of the area of the proposed
1-21 district. Such election shall be held not less than 45 nor more
1-22 than 90 days from the date the election is ordered. The order
1-23 calling the election shall specify the date, place or places of
1-24 holding the election, the form of ballot, the presiding judge and
1-25 alternate judge for each voting place, and provide for clerks as in
1-26 county elections. Notice of election shall be given by publishing
1-27 a substantial copy of the election order in a newspaper of general
1-28 circulation in the county once a week for two consecutive weeks,
1-29 the first publication to appear at least 30 days prior to the date
1-30 established for the election. If the proposition to create the
1-31 Nacogdoches County Hospital District fails to carry at the
1-32 election, no other election for the same purpose may be held within
1-33 one year after the result of the election is announced officially.
1-34 At said election there shall be submitted to the qualified
1-35 <property taxpaying> electors of the area of the proposed district
1-36 the proposition of whether the hospital district shall be created
1-37 with authority to levy annual taxes at a rate not to exceed 75
1-38 cents on each $100 valuation of taxable property within such
1-39 district subject to hospital district taxation for the purpose of
1-40 meeting the requirements of the district's bonds, indebtedness
1-41 assumed by it, and its maintenance and operating expenses.
1-42 The ballots for such creation election shall have printed
1-43 thereon the following:
1-44 "FOR the creation of NACOGDOCHES COUNTY HOSPITAL DISTRICT,
1-45 providing for the levy of a tax not to exceed 75 cents on each $100
1-46 valuation, and providing for the assumption by such district of all
1-47 outstanding bonds and indebtedness heretofore issued by Nacogdoches
1-48 County and by any city or town within said County for hospital
1-49 purposes."
1-50 "AGAINST the creation of NACOGDOCHES COUNTY HOSPITAL
1-51 DISTRICT, providing for the levy of a tax not to exceed 75 cents on
1-52 each $100 valuation, and providing for the assumption by such
1-53 district of all outstanding bonds and indebtedness heretofore
1-54 issued by Nacogdoches County and by any city or town within said
1-55 County for hospital purposes."
1-56 Within 10 days after such election is held, or as soon
1-57 thereafter as possible, the commissioners court of said county
1-58 shall convene and canvass the returns of the election and, in the
1-59 event such election results favorably to the proposition specified
1-60 in Section 2, the court shall so find and declare the hospital
1-61 district established and created.
1-62 SECTION 2. Section 4, Chapter 431, Acts of the 60th
1-63 Legislature, Regular Session, 1967, is amended to read as follows:
1-64 Sec. 4. One director is elected from each commissioner
1-65 precinct and three directors are elected at large. Directors serve
1-66 staggered two-year terms. <On the same day an election is ordered
1-67 on the proposition specified in Section 2, the county judge shall
1-68 also order an election for seven directors to serve as the initial
2-1 board of directors of the district in the event the same is created
2-2 and established. The election for such directors shall be held at
2-3 the same time, at the same place or places, and with the same
2-4 election officials as prescribed in the election order for the
2-5 creation of the district and notice thereof shall be given in the
2-6 same manner as the election for the creation of the district, but
2-7 separate ballots shall be used. Persons may have their names
2-8 printed on the ballot as candidate for the office of director by
2-9 submitting to the county clerk an application therefor at least 30
2-10 days prior to the date set for the holding of such election. Such
2-11 application shall be accepted by the county clerk only if it is
2-12 accompanied by evidence (in affidavit form or otherwise) that the
2-13 candidate has the requisite qualifications to serve as a director
2-14 as in this Act provided, and such application shall be signed by
2-15 the candidate and at least 25 other qualified electors of the
2-16 county. In the event the district is created, the four candidates
2-17 receiving the largest number of votes shall serve until the first
2-18 Saturday in April of the second year following the election for the
2-19 creation of the district, and the three candidates receiving the
2-20 next largest number of votes shall serve until the first Saturday
2-21 in April of the year following the election for the creation of the
2-22 district. Successors shall be elected by a vote of the electors of
2-23 the entire district for two-year terms.> Each director and his
2-24 successor in office shall qualify by executing the constitutional
2-25 oath of office, and such directors, acting as a board, shall have
2-26 and exercise the powers hereafter conferred.
2-27 To be eligible to be a candidate for or to serve as a
2-28 director, a person must be a resident of the district and a
2-29 qualified voter. In addition to those qualifications, a person who
2-30 is elected from a commissioner precinct or who is appointed to fill
2-31 a vacancy for a commissioner precinct must be a resident of that
2-32 commissioner precinct. An employee of the district may not serve
2-33 as a director.
2-34 <No person shall be a member of the board of directors of
2-35 said hospital district unless he owns land subject to taxation
2-36 therein and unless at the time of such election or appointment he
2-37 shall be a qualified elector of the district.>
2-38 The board of directors shall organize by electing one of
2-39 their number as president and one of their number as vice
2-40 president. Each officer of the board serves for a term of one
2-41 year. The board shall fill a vacancy in a board office for the
2-42 unexpired term. A secretary, who need not be a director, shall
2-43 also be elected. Any four members of the board of directors shall
2-44 constitute a quorum and a majority of the members of the board
2-45 voting must concur in a matter relating <concurrence of four shall
2-46 be sufficient in all matters pertaining> to the business of the
2-47 district. All vacancies in the office of director shall be filled
2-48 for the unexpired term by appointment of the remainder of the board
2-49 of directors. In the event the number of directors shall be
2-50 reduced to less than four for any reason, the remaining directors
2-51 shall immediately call a special election to fill said vacancies,
2-52 and upon failure to do so, a district court, upon application of
2-53 any elector or taxpayer of the district, may issue a mandate
2-54 requiring that such election be ordered by the remaining directors.
2-55 A regular election of directors shall be held on the first
2-56 Saturday in May <April> of each year and the appropriate number of
2-57 successor directors shall be elected. Notice <and notice> of such
2-58 election shall be published in a newspaper of general circulation
2-59 in the county one time at least 10 days prior to the date of
2-60 election. Any person desiring his name to be printed on the ballot
2-61 as a candidate for director shall file a petition, signed by not
2-62 less than 25 qualified electors asking that such name be printed on
2-63 the ballot, with the secretary of the board of directors of the
2-64 district. The petition must specify the commissioner precinct the
2-65 person wants to represent or that the person wants to represent the
2-66 district at large. Such petition shall be so filed at least 25
2-67 days prior to the date of election. The secretary shall accept
2-68 such petition only if it is accompanied by evidence such candidate
2-69 has the requisite qualifications as herein prescribed.
2-70 SECTION 3. Section 6, Chapter 431, Acts of the 60th
3-1 Legislature, Regular Session, 1967, is amended to read as follows:
3-2 Sec. 6. The district shall be operated on the basis of a
3-3 fiscal year commencing on July 1 of each year and ending on June 30
3-4 of the following year, and it shall cause an audit to be made of
3-5 the financial condition of said district, which together with other
3-6 records of the district shall be open to inspection at the
3-7 principal office of the district. The administrator or manager
3-8 shall prepare an annual budget for approval by the board of
3-9 directors. The budget shall also contain a complete financial
3-10 statement of the district showing all outstanding obligations of
3-11 the district, the cash on hand to the credit of each and every fund
3-12 of the district, the funds received from all sources during the
3-13 previous year, the funds available from all sources during the
3-14 ensuing year, with balances expected at year end of the year in
3-15 which the budget is being prepared, and estimated revenues and
3-16 balances available to cover the proposed budget and the estimated
3-17 tax rate which will be required. A public hearing on the annual
3-18 budget shall be held by the board of directors after notice of such
3-19 hearing has been published one time at least 10 days before the
3-20 date set therefor. Any resident <property taxpayer> of the
3-21 district shall have the right to be present and participate in said
3-22 hearing. At the conclusion of the hearing, the budget, as proposed
3-23 by the president, shall be acted upon by the board of directors.
3-24 The board of directors shall have authority to make such changes in
3-25 the budget as in their judgment the law warrants and the interest
3-26 of the taxpayers demand. No expenditure may be made for any
3-27 expense not included in the annual budget or an amendment thereto.
3-28 The annual budget may be amended from time to time as the
3-29 circumstances may require, but the annual budget, and all
3-30 amendments thereto, shall be approved by the board of directors.
3-31 As soon as practicable after the close of each fiscal year, the
3-32 administrator or manager shall prepare for the board a full sworn
3-33 statement of all moneys belonging to the district and a full
3-34 account of the disbursements of same.
3-35 SECTION 4. Section 7, Chapter 431, Acts of the 60th
3-36 Legislature, Regular Session, 1967, is amended to read as follows:
3-37 Sec. 7. The board of directors shall have the power and
3-38 authority to issue and sell its bonds in the name and upon the
3-39 faith and credit of such hospital district for the purchase,
3-40 construction, acquisition, repair or renovation of buildings and
3-41 improvements and equipping the same for hospital purposes, and for
3-42 any or all of such purposes. At the time of issuance of any bonds
3-43 by the district a tax shall be levied by the board sufficient to
3-44 create an interest and sinking fund to pay the interest on and
3-45 principal of said bonds as same mature, providing such tax together
3-46 with any other taxes levied for said district shall not exceed 75
3-47 cents on each $100 valuation of taxable property in any one year,
3-48 within the district subject to hospital district taxation. No
3-49 bonds shall be issued by such hospital district except refunding
3-50 bonds until authorized by a majority of the qualified electors of
3-51 the district <who own taxable property therein and who have duly
3-52 rendered the same for taxation> voting at an election called for
3-53 such purpose. The order for bond election shall specify the date
3-54 of the election, the amount of bonds to be authorized, the maximum
3-55 maturity thereof, the maximum rate of interest they are to bear,
3-56 the place or places where the election shall be held, the presiding
3-57 judge and alternate judge for each voting place and provide for
3-58 clerks as in county elections. Notice of any bond election (except
3-59 one held under the provisions of Section 8, in which instance
3-60 notice shall be given as provided in Section 3) shall be given as
3-61 provided in Article 704, Revised <Civil> Statutes <of Texas, 1925,
3-62 as amended>, and shall be conducted in accordance with the general
3-63 laws of Texas pertaining to general elections, except as modified
3-64 by the provisions of this Act.
3-65 Refunding bonds of the district may be issued for the purpose
3-66 of refunding and paying off any outstanding indebtedness it has
3-67 issued or assumed. Such refunding bonds may be sold and the
3-68 proceeds thereof applied to the payment of outstanding
3-69 indebtedness, or may be exchanged in whole or in part for not less
3-70 than a like principal amount of such outstanding indebtedness
4-1 provided that, if refunding bonds are to be exchanged for a like
4-2 amount of said outstanding indebtedness, such refunding bonds shall
4-3 bear interest at the same or lower rate than borne by the debt
4-4 refunded, unless it is shown mathematically that a saving will
4-5 result in the total amount of interest to be paid on said refunding
4-6 bonds, and provided further that if such refunding bonds are to be
4-7 sold and the proceeds thereof applied to the payment of any such
4-8 outstanding indebtedness, same shall be issued and payments made in
4-9 the manner specified by Chapter 503, Acts of the 54th Legislature,
4-10 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).
4-11 Bonds of the district shall bear interest not to exceed six
4-12 percent per annum, shall mature within 40 years of their date,
4-13 shall be executed in the name of the hospital district and in its
4-14 behalf by the president of the board and countersigned by the
4-15 secretary in the manner provided by Chapter 204, Acts of the 57th
4-16 Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas
4-17 Civil Statutes), as amended, and shall be subject to the same
4-18 requirements in the matter of approval by the Attorney General of
4-19 Texas and registration by the Comptroller of Public Accounts of the
4-20 State of Texas as are by law provided for approval and registration
4-21 of bonds issued by counties. Upon the approval of such bonds by
4-22 the attorney general and registration by the comptroller, the same
4-23 shall be incontestable for any cause.
4-24 SECTION 5. Section 10, Chapter 431, Acts of the 60th
4-25 Legislature, Regular Session, 1967, is amended to read as follows:
4-26 Sec. 10. The board of directors of such district shall have
4-27 the power to prescribe the method and manner of making purchases
4-28 and expenditures by and for such hospital district, and also shall
4-29 be authorized to prescribe all accounting and control procedures.
4-30 Pending receipt of accounts receivable, the board may borrow money
4-31 for the payment of maintenance and operating expenses of the
4-32 district. A loan obtained by the district must be repaid not later
4-33 than one year after the date on which the loan is made. All
4-34 contracts for construction or purchases involving the expenditure
4-35 of more than $10,000 <$2,000> may be made only after advertising in
4-36 the manner provided by Subchapter B, Chapter 271, Local Government
4-37 Code <Chapter 163, General Laws, Acts of the 42nd Legislature,
4-38 Regular Session, 1931 (Article 2368a, Vernon's Texas Civil
4-39 Statutes), as amended>. The provisions of Article 5160 relating to
4-40 performance and payment bonds shall apply to construction contracts
4-41 let by the district. The district may acquire equipment for use in
4-42 its hospital system and mortgage or pledge the property so acquired
4-43 as security for the payment of the purchase price, but any such
4-44 contract shall provide for the entire obligation of the district to
4-45 be retired within five years from the date of the contract. Except
4-46 as permitted by this section and as permitted by Sections 7 and 8,
4-47 the district may incur no obligation payable from any revenues of
4-48 the district (taxes or otherwise) except those on hand or to be on
4-49 hand within the then current and following fiscal year of the
4-50 district.
4-51 SECTION 6. Section 15(b), Chapter 431, Acts of the 60th
4-52 Legislature, Regular Session, 1967, is amended to read as follows:
4-53 (b) Under this subsection, taxes shall be assessed and
4-54 collected by a tax assessor-collector appointed by the directors,
4-55 who shall also fix the terms of his employment, compensation and
4-56 requirement for bond to assure the faithful performance of his
4-57 duties, but in no event shall such bond be for less than $5,000.
4-58 The directors shall also annually appoint five persons to serve as
4-59 a board of equalization and shall fix their compensation. Each
4-60 member of the board and the tax assessor shall be residents of the
4-61 district <and own real property subject to hospital district
4-62 taxation,> and each shall have the same duties (including the
4-63 obligation to execute the oath of office) as required by county
4-64 officials exercising such powers and duties. Except as in this law
4-65 provided to the contrary, all the provisions of the Tax Code <Title
4-66 122, Revised Civil Statutes of Texas, 1925, as amended,> shall
4-67 apply to the district.
4-68 SECTION 7. Chapter 431, Acts of the 60th Legislature,
4-69 Regular Session, 1967, is amended by adding Sections 16A-16E to
4-70 read as follows:
5-1 Sec. 16A. The board may provide retirement benefits for
5-2 employees of the district by:
5-3 (1) establishing or administering a retirement
5-4 program; or
5-5 (2) electing to participate in the Texas County and
5-6 District Retirement System or in any other statewide retirement
5-7 system in which the district is eligible to participate.
5-8 Sec. 16B. The board may adopt rules governing the operation
5-9 of the hospital and hospital system and the duties, functions, and
5-10 responsibilities of district staff and employees.
5-11 Sec. 16C. The board may contract with a municipality,
5-12 county, special district, or other political subdivision of the
5-13 state or with a state or federal agency for the district to:
5-14 (1) furnish a mobile emergency medical service;
5-15 (2) provide for the investigatory or welfare needs of
5-16 inhabitants of the district; or
5-17 (3) provide a rural health clinic to care for the
5-18 inhabitants of the contracting political subdivision.
5-19 Sec. 16D. (a) Registered voters of a defined territory that
5-20 is not included in a district may file a petition with the
5-21 secretary of the board requesting the inclusion of the territory in
5-22 the district. The petition must be signed by at least 50
5-23 registered voters of the territory or a majority of those voters,
5-24 whichever is less.
5-25 (b) The board by order shall set a time and place to hold a
5-26 hearing on the petition to include the territory in the district.
5-27 The board shall set a date for the hearing that is after the 30th
5-28 day after the date the board issues the order.
5-29 (c) If after the hearing the board finds that annexation of
5-30 the territory into the district would be feasible and would benefit
5-31 the district, the board may approve the annexation by a resolution
5-32 entered in its minutes. The board is not required to include all
5-33 of the territory described in the petition if the board finds that
5-34 a modification or change is necessary or desirable.
5-35 (d) Annexation of territory is final when approved by a
5-36 majority of the voters at an election held in the district and by a
5-37 majority of the voters at a separate election held in the territory
5-38 to be annexed. If the district has outstanding debts or taxes, the
5-39 voters in the election to approve the annexation must also
5-40 determine if the annexed territory will assume its proportion of
5-41 the debts or taxes if added to the district.
5-42 (e) The election ballots shall be printed to permit voting
5-43 for or against the following, as applicable:
5-44 (1) "Adding (description of territory to be added) to
5-45 the Nacogdoches County Hospital District."
5-46 (2) "(Description of territory to be added) assuming
5-47 its proportionate share of the outstanding debts and taxes of the
5-48 Nacogdoches County Hospital District, if it is added to the
5-49 district."
5-50 (f) The election shall be held after the 45th day and on or
5-51 before the 60th day after the date the election is ordered. The
5-52 election shall be ordered and notice of the election shall be given
5-53 in the same manner as provided by Section 3 for ordering and giving
5-54 notice of an election authorizing creation of the district.
5-55 Section 41.001(a), Election Code, does not apply to an election
5-56 held under this section.
5-57 Sec. 16E. (a) The board shall require reimbursement from a
5-58 county, municipality, or public hospital located outside the
5-59 boundaries of the district for the district's care and treatment of
5-60 a sick, diseased, or injured person of that county, municipality,
5-61 or public hospital as provided by Chapter 61, Health and Safety
5-62 Code.
5-63 (b) The board shall require reimbursement from the sheriff
5-64 or police chief of a county or municipality for the district's care
5-65 and treatment of a person confined in a jail facility of the county
5-66 or municipality who is not a resident of the district.
5-67 (c) The board may contract with the state or federal
5-68 government for the state or federal government to reimburse the
5-69 district for treatment of a sick, diseased, or injured person.
5-70 SECTION 8. The importance of this legislation and the
6-1 crowded condition of the calendars in both houses create an
6-2 emergency and an imperative public necessity that the
6-3 constitutional rule requiring bills to be read on three several
6-4 days in each house be suspended, and this rule is hereby suspended,
6-5 and that this Act take effect and be in force from and after its
6-6 passage, and it is so enacted.
6-7 * * * * *