By Place H.B. No. 3194
74R3218 JMM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the dissolution of the DeLeon Hospital District and the
1-3 Comanche County Hospital District and the creation of the Leon
1-4 Valley Hospital District.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1. CHANGES RELATING TO DELEON HOSPITAL DISTRICT
1-7 SECTION 1.01. Chapter 202, Acts of the 63rd Legislature,
1-8 Regular Session, 1973, is amended by adding Section 21A to read as
1-9 follows:
1-10 Sec. 21A. DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF
1-11 COMANCHE COUNTY HOSPITAL DISTRICT AND CREATION OF LEON VALLEY
1-12 HOSPITAL DISTRICT. (a) The DeLeon Hospital District may be
1-13 dissolved as provided by this section.
1-14 (b) The board of directors may order an election on the
1-15 question of the dissolution of the DeLeon Hospital District,
1-16 creation of the Leon Valley Hospital District, transfer of the
1-17 DeLeon Hospital District's assets and obligations to the Leon
1-18 Valley Hospital District, and assumption by the Leon Valley
1-19 Hospital District of the DeLeon Hospital District's outstanding
1-20 debts.
1-21 (c) The board shall order an election if:
1-22 (1) the board of the Comanche County Hospital District
1-23 orders an election under Section 21A, Chapter 203, Acts of the 63rd
1-24 Legislature, Regular Session, 1973; or
2-1 (2) the board receives a petition requesting an
2-2 election on the questions of dissolution and transfer of assets
2-3 that is signed by at least 50 registered voters in the DeLeon
2-4 Hospital District.
2-5 (d) If the board of directors orders an election under this
2-6 section, it shall promptly notify the board of directors of the
2-7 Comanche County Hospital District of the election order.
2-8 (e) The election shall be held not less than 45 or more than
2-9 60 days after the date on which an election is ordered and shall be
2-10 held on the same date that the separate election in the Comanche
2-11 County Hospital District is held. The board of directors shall
2-12 cooperate with the board of directors of the Comanche County
2-13 Hospital District in setting the date of the elections. Section
2-14 41.001(a), Election Code, does not apply to an election ordered
2-15 under this section.
2-16 (f) The ballot for the election shall be printed to permit
2-17 voting for or against the proposition: "The dissolution of the
2-18 DeLeon Hospital District and creation of the Leon Valley Hospital
2-19 District, providing for the levy of a tax not to exceed 25 cents on
2-20 each $100 valuation on all taxable property in the Leon Valley
2-21 Hospital District, and providing for the transfer to and assumption
2-22 by the Leon Valley Hospital District of all outstanding bonds and
2-23 indebtedness issued for hospital purposes by the DeLeon Hospital
2-24 District and any part of the county or any city or town located in
2-25 the district and the transfer of the existing DeLeon Hospital
2-26 District's assets to the Leon Valley Hospital District."
2-27 (g) Except as provided by Subsections (e) and (f) of this
3-1 section, the election shall be held in accordance with the
3-2 applicable provisions of the Election Code.
3-3 (h) The DeLeon Hospital District is dissolved if:
3-4 (1) a majority of the voters in the DeLeon Hospital
3-5 District voting in the election held under this section favor the
3-6 proposition; and
3-7 (2) a majority of the voters in the Comanche County
3-8 Hospital District voting in an election held on the same date under
3-9 Section 21A, Chapter 203, Acts of the 63rd Legislature, Regular
3-10 Session, 1973, favor the dissolution of the Comanche County
3-11 Hospital District, the creation of the Leon Valley Hospital
3-12 District, the transfer of the assets of the Comanche County
3-13 Hospital District to the Leon Valley Hospital District, and the
3-14 assumption of the assets and obligations of the Comanche County
3-15 Hospital District by the Leon Valley Hospital District.
3-16 (i) The DeLeon Hospital District is not dissolved and the
3-17 board of directors shall continue to administer the DeLeon Hospital
3-18 District if a majority of the voters in either the DeLeon Hospital
3-19 District or the Comanche County Hospital District do not favor the
3-20 proposition on which they voted.
3-21 (j) If the DeLeon Hospital District is dissolved under this
3-22 section, the board of directors shall transfer the assets and
3-23 obligations of the DeLeon Hospital District to the Leon Valley
3-24 Hospital District.
3-25 (k) The board of directors may not order another election on
3-26 the question of dissolution before the first anniversary of the
3-27 date of the most recent election at which voters of either district
4-1 disapproved the proposition on which they voted.
4-2 SECTION 1.02. Chapter 202, Acts of the 63rd Legislature,
4-3 Regular Session, 1973, is amended by adding Section 1B to read as
4-4 follows:
4-5 Sec. 1B. On the dissolution of the DeLeon Hospital District
4-6 and the approval of the creation of the Leon Valley Hospital
4-7 District, a reference in this Act or in any other law to the DeLeon
4-8 Hospital District means the Leon Valley Hospital District.
4-9 ARTICLE 2. CHANGES RELATING TO
4-10 COMANCHE COUNTY HOSPITAL DISTRICT
4-11 SECTION 2.01. Chapter 203, Acts of the 63rd Legislature,
4-12 Regular Session, 1973, is amended by adding Section 21A to read as
4-13 follows:
4-14 Sec. 21A. DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF
4-15 DELEON HOSPITAL DISTRICT AND CREATION OF LEON VALLEY HOSPITAL
4-16 DISTRICT. (a) The Comanche County Hospital District may be
4-17 dissolved as provided by this section.
4-18 (b) The board of directors may order an election on the
4-19 question of the dissolution of the Comanche County Hospital
4-20 District, creation of the Leon Valley Hospital District, transfer
4-21 of the Comanche County Hospital District's assets and obligations
4-22 to the Leon Valley Hospital District, and the assumption by Leon
4-23 Valley Hospital District of the Comanche County Hospital District's
4-24 outstanding debts.
4-25 (c) The board shall order an election if:
4-26 (1) the board of the DeLeon Hospital District orders
4-27 an election under Section 21A, Chapter 202, Acts of the 63rd
5-1 Legislature, Regular Session, 1973; or
5-2 (2) the board receives a petition requesting an
5-3 election on the questions of dissolution and transfer of assets
5-4 that is signed by at least 50 registered voters in the Comanche
5-5 County Hospital District.
5-6 (d) If the board of directors orders an election under this
5-7 section, it shall promptly notify the board of directors of the
5-8 DeLeon Hospital District of the election order.
5-9 (e) The election shall be held not less than 45 or more than
5-10 60 days after the date on which an election is ordered and shall be
5-11 held on the same date that the separate election in the DeLeon
5-12 Hospital District is held. The board of directors shall cooperate
5-13 with the board of directors of the DeLeon Hospital District in
5-14 setting the date of the elections. Section 41.001(a), Election
5-15 Code, does not apply to an election ordered under this section.
5-16 (f) The ballot for the election shall be printed to permit
5-17 voting for or against the proposition: "The dissolution of the
5-18 Comanche County Hospital District and creation of the Leon Valley
5-19 Hospital District, providing for the levy of a tax not to exceed 25
5-20 cents on each $100 valuation on all taxable property in the Leon
5-21 Valley Hospital District, and providing for the transfer to and
5-22 assumption by the Leon Valley Hospital District of all outstanding
5-23 bonds and indebtedness issued for hospital purposes by the Comanche
5-24 County Hospital District and any part of the county or any city or
5-25 town located in the district, and the transfer of the existing
5-26 Comanche County Hospital District's assets to the Leon Valley
5-27 Hospital District."
6-1 (g) Except as provided by Subsections (e) and (f) of this
6-2 section, the election shall be held in accordance with the
6-3 applicable provisions of the Election Code.
6-4 (h) The Comanche County Hospital District is dissolved if:
6-5 (1) a majority of the voters in the Comanche County
6-6 Hospital District voting in the election held under this section
6-7 favor the proposition; and
6-8 (2) a majority of the voters in the DeLeon Hospital
6-9 District voting in an election held on the same date under Section
6-10 21A, Chapter 202, Acts of the 63rd Legislature, Regular Session,
6-11 1973, favor the dissolution of the DeLeon Hospital District, the
6-12 creation of the Leon Valley Hospital District, the transfer of the
6-13 assets of the DeLeon Hospital District to Leon Valley Hospital
6-14 District, and the assumption of the assets and obligations of the
6-15 DeLeon Hospital District by the Leon Valley Hospital District.
6-16 (i) The Comanche County Hospital District is not dissolved
6-17 and the board of directors shall continue to administer the
6-18 Comanche County Hospital District if a majority of the voters in
6-19 either district do not favor the proposition on which they voted.
6-20 (j) If the Comanche County Hospital District is dissolved
6-21 under this section, the board of directors shall transfer the
6-22 assets and obligations of the Comanche County Hospital District to
6-23 the Leon Valley Hospital District.
6-24 (k) The board of directors may not order another election on
6-25 the question of dissolution before the first anniversary of the
6-26 date of the most recent election at which voters of either district
6-27 disapproved the proposition on which they voted.
7-1 SECTION 2.02. Chapter 203, Acts of the 63rd Legislature,
7-2 Regular Session, 1973, is amended by adding Section 1A to read as
7-3 follows:
7-4 Sec. 1A. On the dissolution of the Comanche County Hospital
7-5 District and the approval of the creation of the Leon Valley
7-6 Hospital District, a reference in this Act or in any other law to
7-7 the Comanche County Hospital District means the Leon Valley
7-8 Hospital District.
7-9 ARTICLE 3. CREATION OF LEON VALLEY HOSPITAL DISTRICT
7-10 SECTION 3.01. (a) In accordance with the provisions of
7-11 Section 9, Article IX, Texas Constitution, this Act authorizes the
7-12 creation, establishment, administration, maintenance, operation,
7-13 and financing of a hospital district in this state with boundaries
7-14 coextensive with the boundaries as they existed on August 10, 1992,
7-15 exclusive of that portion in the South Eastland County Hospital
7-16 District, of:
7-17 (1) Commissioners Precinct Number 1 of Comanche
7-18 County;
7-19 (2) Commissioners Precinct Number 2 of Comanche County
7-20 with the addition of county election precinct number 5 and with the
7-21 deletion of county election precinct number 3 and county election
7-22 precinct number 6;
7-23 (3) Commissioners Precinct Number 3 of Comanche County
7-24 with the addition of county election precinct number 3 and county
7-25 election precinct number 6 and with the deletion of county election
7-26 precinct number 5; and
7-27 (4) Commissioners Precinct Number 4 of Comanche
8-1 County.
8-2 (b) The district is to be known as "Leon Valley Hospital
8-3 District," and it has the rights, powers, and duties as provided in
8-4 this Act.
8-5 SECTION 3.02. (a) The Leon Valley Hospital District may
8-6 not be created unless the creation, the assumption of debt, and the
8-7 levy of taxes are approved by a majority of the voters at an
8-8 election held in the DeLeon Hospital District and by a majority of
8-9 the voters at a separate election held in the Comanche County
8-10 Hospital District.
8-11 (b) The election in the DeLeon Hospital District and the
8-12 election in the Comanche County Hospital District shall be held on
8-13 the same day and must be held (before the fifth anniversary of the
8-14 effective date of this Act).
8-15 SECTION 3.03. (a) If the Leon Valley Hospital District is
8-16 created in accordance with Section 21A, Chapter 202 and Section
8-17 21A, Chapter 203, Acts of the 63rd Legislature, Regular Session,
8-18 1973, the following five persons shall serve as temporary directors
8-19 of the Leon Valley Hospital District:
8-20 1. Charles Mazurek - Precinct 1
8-21 2. Jim Abbey - Precinct 2
8-22 3. Ardean Kimmell - Precinct 3
8-23 4. Wayne Hammit - Precinct 4
8-24 5. Vincenzo Giustino - At Large
8-25 (b) A vacancy on the temporary board shall be filled by the
8-26 Commissioners Court of Comanche County.
8-27 (c) The temporary board shall serve as the directors of the
9-1 Leon Valley Hospital District until elected directors take office.
9-2 SECTION 3.04. (a) If the Leon Valley Hospital District is
9-3 created, directors shall be elected at an election to be held on
9-4 the first Saturday in May following the date the Leon Valley
9-5 Hospital District is created.
9-6 (b) The temporary directors may postpone the election date
9-7 for one year or until a subsequent uniform election date if the
9-8 temporary directors determine that there is not sufficient time to
9-9 comply with the requirements of law.
9-10 (c) One director shall be elected from each of Commissioners
9-11 Precincts Numbers 1, 2, 3, and 4 of Comanche County as those
9-12 boundaries existed on August 10, 1992, and as those precincts are
9-13 described by Section 3.01 of this Act, exclusive of that portion of
9-14 any precinct that is in the South Eastland County Hospital
9-15 District, and one director shall be elected from the district at
9-16 large.
9-17 (d) At the initial election of directors following creation
9-18 of the Leon Valley Hospital District, the candidate receiving the
9-19 highest number of votes from each commissioners precinct is the
9-20 director for that precinct, and the candidate receiving the highest
9-21 number of votes from the district at large is the director for the
9-22 district at large.
9-23 (e) The directors elected at the initial election of
9-24 directors following creation of the Leon Valley Hospital District
9-25 shall draw lots to determine which three directors shall serve
9-26 one-year terms and which two directors shall serve two-year terms.
9-27 SECTION 3.05. (a) After the initial election of directors
10-1 following creation, an election shall be held each year on the
10-2 first Saturday in May, and the appropriate number of successor
10-3 directors shall be elected for two-year terms.
10-4 (b) Notice of each election shall be published in a
10-5 newspaper of general circulation in the district one time at least
10-6 36 days before the date of the election. Any person desiring to
10-7 have the person's name printed on the ballot as a candidate for
10-8 director shall file an application with the secretary of the board
10-9 of directors. The application shall be filed with the secretary at
10-10 least 31 days before the date of the election. The application
10-11 must specify the commissioners precinct the candidate wishes to
10-12 represent or that the candidate wishes to represent the district at
10-13 large.
10-14 (c) Vacancies in office shall be filled for the unexpired
10-15 term by the remainder of the board of directors.
10-16 SECTION 3.06. A person may not be appointed or elected as a
10-17 member of the temporary or permanent board of directors unless the
10-18 person is a resident of the district, a qualified voter, and if
10-19 elected from a commissioners precinct, a resident of the precinct
10-20 as the precinct is described by Section 3.01 of this Act. Neither
10-21 the administrator nor any other employee of the district is
10-22 eligible to serve as a director.
10-23 SECTION 3.07. (a) The district authorized by this article
10-24 to be created shall take over and there shall be transferred to the
10-25 district title to all land, buildings, improvements, and equipment
10-26 pertaining to the hospitals or hospital system that may be located
10-27 wholly within the district and owned by Comanche County or a
11-1 municipality in the district, and after that date the district
11-2 shall provide for the establishment of a hospital system by the
11-3 purchase, construction, acquisition, repair, and renovation of
11-4 buildings and equipment, equipping the buildings, and the
11-5 administration of the district for hospital purposes.
11-6 (b) The district shall assume the outstanding indebtedness
11-7 incurred by Comanche County or any city or town in the district to
11-8 provide medical care for residents of the district before the
11-9 creation of the district.
11-10 SECTION 3.08. (a) The board of directors, both temporary
11-11 and permanent, shall organize by electing one of the members as
11-12 president and one as vice president. A secretary, who need not be
11-13 a director, shall also be elected. Officers shall be elected for a
11-14 term of one year and vacancies shall be filled for the unexpired
11-15 term by the board of directors.
11-16 (b) A majority of the members of the board voting must
11-17 concur in a matter pertaining to the business of the district.
11-18 (c) All members of the board of directors and officers shall
11-19 serve without compensation, but may be reimbursed for actual
11-20 expenses incurred in the performance of the member's official
11-21 duties on the approval of those expenses by the board of directors
11-22 and reported in the minute book of the district or other records of
11-23 the district.
11-24 SECTION 3.09. (a) The board of directors shall manage,
11-25 control, and administer the hospital system and the business of and
11-26 all funds and resources of the district, but operating,
11-27 depreciation, or building reserves may not be invested in any funds
12-1 or securities other than those specified in Articles 836 and 837,
12-2 Revised Statutes.
12-3 (b) The district, through its board of directors, may sue
12-4 and be sued and adopt rules governing the operation of the
12-5 hospital, hospital system, and the district's staff and employees.
12-6 (c) The board of directors shall appoint a qualified person
12-7 to be known as the administrator of the hospital district and may
12-8 appoint an assistant to the administrator. The administrator and
12-9 assistant administrator, if any, serve at the will of the board and
12-10 receive compensation as may be fixed by the board. The
12-11 administrator shall, on assuming the administrator's duties,
12-12 execute a bond payable to the hospital district in an amount set by
12-13 the board of directors, but not less than $5,000, conditioned on
12-14 the faithful performance of the duties required of the
12-15 administrator and containing other conditions as the board may
12-16 require. The board may pay for the bond with district funds. The
12-17 administrator shall supervise all the work and activities of the
12-18 district, subject to the limitations prescribed by the board.
12-19 (d) The board of directors shall have the authority to
12-20 appoint to the staff any doctors the board considers necessary for
12-21 the efficient operation of the district if warranted by
12-22 circumstances. The board shall have the authority to employ and
12-23 may delegate to the administrator the authority to employ persons
12-24 for the district, including technicians, nurses, fiscal agents,
12-25 accountants, architects, and other necessary employees.
12-26 (e) The board may contract with any other political
12-27 subdivision or governmental agency for the district to provide
13-1 investigatory or other services as to the medical, hospital, or
13-2 welfare needs of the residents of the district. The district may
13-3 contract with any county or municipality located outside the
13-4 district's boundaries for the care and treatment of the sick,
13-5 diseased, or injured persons of the county or municipality, and may
13-6 contract with the state or agencies of the federal government for
13-7 the state or federal government to reimburse the district for the
13-8 treatment of the sick, diseased, or injured persons.
13-9 SECTION 3.10. (a) The district shall operate on the basis
13-10 of fiscal years established from time to time by the board of
13-11 directors, provided that a fiscal year may not be changed during
13-12 the time revenue bonds of the district are outstanding or more than
13-13 once in any 24-month period.
13-14 (b) The board shall cause an annual audit to be made of the
13-15 financial condition of the district, which together with other
13-16 records of the district shall be open to inspection at the
13-17 principal office of the district.
13-18 (c) The administrator shall prepare an annual budget for
13-19 approval by the board of directors. The budget shall contain a
13-20 complete financial statement of the district showing:
13-21 (1) all outstanding obligations of the district;
13-22 (2) the cash on hand to the credit of each fund of the
13-23 district;
13-24 (3) the funds received from all sources during the
13-25 previous year;
13-26 (4) the funds available from all sources during the
13-27 ensuing year, with balances expected at year end of the year in
14-1 which the budget is being prepared; and
14-2 (5) estimated revenues and balances available to cover
14-3 the proposed budget and the estimated tax rate that will be
14-4 required.
14-5 (d) A public hearing on the annual budget shall be held by
14-6 the board of directors after notice of the hearing has been
14-7 published one time in a newspaper of general circulation in the
14-8 district at least 10 days before the date set for the hearing. Any
14-9 person residing in the district shall have the right to be present
14-10 and participate in the hearing.
14-11 (e) The budget, as proposed by the administrator, shall be
14-12 acted on by the board of directors. The board of directors shall
14-13 have authority to make changes in the budget as the board
14-14 determines the law warrants and the interests of the taxpayers
14-15 demand.
14-16 (f) An expenditure may not be made for any expense not
14-17 included in the annual budget or in an amendment to the budget.
14-18 (g) The annual budget may be amended from time to time as
14-19 the circumstances require, but the annual budget, and all
14-20 amendments to the budget, must be approved by the board of
14-21 directors.
14-22 (h) As soon as practicable after the close of each fiscal
14-23 year, the administrator shall prepare for the board a sworn
14-24 statement of all money belonging to the district and an account of
14-25 the disbursements of all money belonging to the district.
14-26 SECTION 3.11. (a) The board of directors shall have the
14-27 power and authority to issue and sell bonds in the name and on the
15-1 faith and credit of the hospital district for:
15-2 (1) the purchase, construction, acquisition, repair,
15-3 and renovation of buildings or improvements;
15-4 (2) equipping the buildings and improvements for
15-5 hospital purposes; or
15-6 (3) acquiring and operating a mobile emergency
15-7 service.
15-8 (b) At the time bonds are issued by the district, a tax
15-9 shall be levied by the board sufficient to create an interest and
15-10 sinking fund to pay the interest on and principal of the bonds as
15-11 the bonds mature, provided that the tax together with any other
15-12 taxes levied for the district may not exceed the limit approved by
15-13 the voters at the election authorizing the levy of taxes.
15-14 (c) Bonds may not be issued by the hospital district except
15-15 for refunding bonds until authorized by a majority of the electors
15-16 of the district.
15-17 (d) The order for a bond election shall specify:
15-18 (1) the nature and date of the election;
15-19 (2) the location of the polling places;
15-20 (3) the hours during which the polls will be open;
15-21 and
15-22 (4) the amount of bonds to be authorized and the
15-23 maximum maturity of the bonds.
15-24 (e) Notice of a bond election shall be given as provided in
15-25 Article 704, Revised Statutes, and shall be conducted in accordance
15-26 with the Election Code, except as modified by the provisions of
15-27 this Act.
16-1 SECTION 3.12. (a) Refunding bonds of the district may be
16-2 issued for the purpose of refunding and paying off any outstanding
16-3 indebtedness the district has issued or assumed.
16-4 (b) Refunding bonds may be sold and the proceeds from the
16-5 bonds may be applied to the payment of outstanding indebtedness or
16-6 may be exchanged in whole or in part for not less than a similar
16-7 principal amount of the outstanding indebtedness.
16-8 (c) If the refunding bonds are to be sold and the proceeds
16-9 from the bonds are to be applied to the payment of any outstanding
16-10 indebtedness, the refunding bonds shall be issued and payments made
16-11 in the manner specified by Chapter 503, Acts of the 54th
16-12 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
16-13 Civil Statutes).
16-14 (d) Refunding bonds shall be issued in conformity with
16-15 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
16-16 (Article 717k-3, Vernon's Texas Civil Statutes).
16-17 SECTION 3.13. (a) Bonds issued by the district must:
16-18 (1) mature not later than the 40th anniversary of the
16-19 date of issuance;
16-20 (2) be executed in the name of the hospital district
16-21 and on the district's behalf by the president of the board and
16-22 countersigned by the secretary as provided by Chapter 204, Acts of
16-23 the 57th Legislature, Regular Session, 1961 (Article 717j-1,
16-24 Vernon's Texas Civil Statutes);
16-25 (3) bear a rate of interest that does not exceed the
16-26 amount prescribed by Chapter 3, Acts of the 61st Legislature,
16-27 Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
17-1 Statutes); and
17-2 (4) be subject to the same requirements in the manner
17-3 of approval by the attorney general and registration by the
17-4 comptroller as provided for approval and registration of bonds
17-5 issued by a county.
17-6 (b) On the approval of the bonds by the attorney general and
17-7 registration by the comptroller, the bonds shall be incontestable
17-8 for any cause.
17-9 SECTION 3.14. (a) In addition to the power to issue bonds
17-10 payable from taxes levied by the district under Section 3.12 of
17-11 this Act, the board of directors may issue and refund any
17-12 previously issued revenue bond to:
17-13 (1) purchase, construct, acquire, repair, equip, or
17-14 renovate a building or improvement for hospital purposes;
17-15 (2) acquire a site for hospital purposes; or
17-16 (3) acquire and operate a mobile emergency service to
17-17 assist the district in carrying out the district's hospital
17-18 purposes.
17-19 (b) Bonds authorized under this section shall be payable
17-20 from and secured by a pledge of all or any part of the revenues of
17-21 the district to be derived from the operation of the district's
17-22 hospital system, and may be additionally secured by a mortgage or
17-23 deed of trust lien on any part or all of the district's properties.
17-24 (c) Bonds shall be issued in the manner and in accordance
17-25 with the procedures and requirements specified for the issuance of
17-26 revenue bonds by a county hospital authority under Chapter 264,
17-27 Health and Safety Code.
18-1 SECTION 3.15. (a) The board of directors has complete
18-2 discretion as to the type of buildings, both in number and
18-3 location, required to establish and maintain an adequate hospital
18-4 system and the type of equipment necessary for hospital care. The
18-5 hospital system may include:
18-6 (1) domiciliary care and treatment of the sick,
18-7 wounded, and injured;
18-8 (2) outpatient clinics;
18-9 (3) dispensaries;
18-10 (4) geriatric domiciliary care and treatment;
18-11 (5) convalescent home facilities;
18-12 (6) necessary nurses, domiciliaries, and training
18-13 centers;
18-14 (7) blood banks, community mental health centers,
18-15 research centers, and laboratories; and
18-16 (8) any other facilities determined by the board to be
18-17 necessary for hospital care.
18-18 (b) The district, through its board of directors, may enter
18-19 into an operating or management contract with regard to all or part
18-20 of the district's facilities or may lease all or part of the
18-21 district's buildings and facilities on terms and conditions
18-22 considered to be in the best interest of the residents of the
18-23 district. A lease under this section may not be for a period that
18-24 exceeds the 25th anniversary of the date the lease was entered.
18-25 (c) The district may sell or otherwise dispose of any
18-26 property, real or personal, or equipment of any nature on terms and
18-27 conditions found by the board to be in the best interest of the
19-1 residents of the district.
19-2 (d) The board of directors of the district may prescribe the
19-3 method and manner of making purchases and expenditures by and for
19-4 the hospital district and may prescribe all accounting and control
19-5 procedures.
19-6 (e) A contract for construction involving the expenditure of
19-7 more than $10,000 may be made only after competitive bidding as
19-8 provided by Subchapter B, Chapter 271, Local Government Code.
19-9 (f) The provisions of Chapter 2253, Government Code,
19-10 relating to performance and payment bonds apply to construction
19-11 contracts let by the district.
19-12 (g) The district may acquire property, facilities, and
19-13 equipment for use in the hospital system and may mortgage or pledge
19-14 the property, facilities, or equipment acquired by the district as
19-15 security for the payment of the purchase price.
19-16 (h) The board of directors of the district shall name one or
19-17 more banks to serve as depository for the funds of the district.
19-18 All funds of the district, except those invested as provided in
19-19 Section 3.09(a) and those transmitted to a bank for payment for
19-20 bonds or obligations issued or assumed by the district, shall be
19-21 deposited as received with the depository bank and shall remain on
19-22 deposit. Nothing in this subsection may limit the power of the
19-23 board to place a portion of the board's funds on time deposit or to
19-24 purchase certificates of deposit.
19-25 (i) Before the district deposits the district's funds in a
19-26 bank in an amount that exceeds the maximum amount secured by the
19-27 Federal Deposit Insurance Corporation, the bank must execute a bond
20-1 or other security in an amount sufficient to secure from loss the
20-2 district funds that exceed the amount secured by the Federal
20-3 Deposit Insurance Corporation.
20-4 SECTION 3.16. (a) The board of directors shall annually
20-5 levy a tax in an amount not to exceed the limit approved by the
20-6 voters for the purpose of paying:
20-7 (1) the indebtedness assumed or issued by the
20-8 district; or
20-9 (2) the maintenance and operating expenses of the
20-10 district.
20-11 (b) A tax levied under this section may not be levied to pay
20-12 the principal of or interest on revenue bonds issued under Section
20-13 3.14 of this Act.
20-14 (c) In setting a tax rate under this section, the board
20-15 shall consider the income of the district from sources other than
20-16 taxation. On determining the amount of tax required to be levied,
20-17 the board shall make the levy and certify the levy to the tax
20-18 assessor-collector.
20-19 SECTION 3.17. (a) Bonds issued and indebtedness assumed by
20-20 the district are a legal and authorized investment of a bank,
20-21 savings bank, trust company, savings and loan association,
20-22 insurance company, fiduciary, trustee, guardian, or sinking fund of
20-23 a municipality, school district, or other political subdivision of
20-24 the state, and for all public funds of the state or an agency of
20-25 the state, including the state permanent school fund.
20-26 (b) Bonds issued or indebtedness assumed by the district is
20-27 eligible to secure the deposit of public funds of the state and the
21-1 public funds of a municipality, school district, or other political
21-2 subdivision of the state, and is lawful and sufficient security for
21-3 those deposits to the extent of the value of the bonds or
21-4 indebtedness when accompanied by all unmatured coupons.
21-5 SECTION 3.18. (a) The district has the right and power of
21-6 eminent domain for the purpose of acquiring by condemnation any and
21-7 all property of any kind and character in fee simple, or any lesser
21-8 interest in the property, within the boundaries of the district if
21-9 necessary to the exercise of the rights or authority conferred by
21-10 this Act in the manner provided by the general law with respect to
21-11 condemnation by counties.
21-12 (b) The district is not required to deposit in the trial
21-13 court money or bond as provided by Section 21.021, Property Code.
21-14 (c) In a condemnation proceeding prosecuted by the district,
21-15 the district is not required to:
21-16 (1) pay in advance or give bond or other security for
21-17 costs in the trial court;
21-18 (2) give any bond otherwise required for the issuance
21-19 of a temporary restraining order or a temporary injunction; or
21-20 (3) give bond for costs or for supersedeas on an
21-21 appeal or writ of error.
21-22 SECTION 3.19. (a) The directors may levy taxes for the
21-23 entire year in which the district is established as a result of the
21-24 initial election provided under this Act.
21-25 (b) The Tax Code governs the appraisal, assessment, and
21-26 collection of district taxes.
21-27 (c) The board may provide for the appointment of a tax
22-1 assessor-collector for the district or may contract for the
22-2 assessment and collection of taxes as provided by the Tax Code.
22-3 SECTION 3.20. (a) The district shall provide without charge
22-4 to a patient residing in the district the care and treatment that
22-5 the patient or a relative of the patient who is legally responsible
22-6 for the patient's support cannot pay.
22-7 (b) Not later than the first day of each operating year, the
22-8 district shall adopt an application procedure to determine
22-9 eligibility for assistance as provided in Section 61.053, Health
22-10 and Safety Code.
22-11 (c) The administrator may cause an inquiry to be made
22-12 regarding the financial circumstances of a patient under Subsection
22-13 (a) of this section residing in the district and admitted to a
22-14 district facility and of the relatives of the patient legally
22-15 responsible for the patient's support. If the patient or relative
22-16 is found to be able to pay for all or part of the care and
22-17 treatment, the administrator shall report that finding to the board
22-18 and the board shall issue an order directing the patient or the
22-19 relative to pay to the hospital district for the care and support
22-20 of the patient a specified sum each week in an amount that the
22-21 individual is able to pay. The administrator may collect sums
22-22 under this subsection from the estate of the patient or a relative
22-23 legally responsible for the patient's support in the manner
22-24 provided by law for collection of expenses in the last illness of a
22-25 deceased person.
22-26 (d) In the case of a dispute regarding the ability to pay,
22-27 the board of directors shall call witnesses, conduct a hearing, and
23-1 issue a final order. An appeal from a final order of the board
23-2 under this subsection shall be made to the district court in
23-3 Comanche County. The substantial evidence rule applies to an
23-4 appeal under this subsection.
23-5 SECTION 3.21. The board of directors, on behalf of the
23-6 district, may accept donations, gifts, and endowments to be held in
23-7 trust and administered by the board of directors for purposes and
23-8 under directions, limitations, and provisions prescribed in writing
23-9 by the donor that are not inconsistent with the proper management
23-10 of the hospital district.
23-11 SECTION 3.22. (a) If the board of directors declares that
23-12 funds are not available to meet the lawfully authorized obligations
23-13 of the district and that an emergency exists, the board may borrow
23-14 money at a rate not to exceed the maximum annual percentage rate
23-15 allowed by law for district obligations at the time of the loan.
23-16 (b) To secure a loan, the board may pledge:
23-17 (1) revenues of the district that are not pledged to
23-18 pay the bonded indebtedness of the district;
23-19 (2) district taxes to be levied by the district during
23-20 the 12-month period following the date of the pledge that are not
23-21 pledged to pay the principal of or interest on district bonds; or
23-22 (3) district bonds that have been authorized but not
23-23 sold.
23-24 (c) A loan for which taxes or bonds are pledged shall mature
23-25 not later than the first anniversary of the date on which the loan
23-26 is made. A loan for which district revenues are pledged shall
23-27 mature not later than the fifth anniversary of the date on which
24-1 the loan is made.
24-2 (d) The board may not spend money obtained from a loan under
24-3 this section for any purpose other than the purpose for which the
24-4 board declared an emergency. If taxes or bonds are pledged to pay
24-5 the loan, the board may not spend the revenue other than for the
24-6 purpose for which the taxes were levied or the bonds were
24-7 authorized.
24-8 SECTION 3.23. (a) After the hospital district is created, a
24-9 county, municipality, or political subdivision in or partly in the
24-10 district may not levy taxes or issue bonds or other obligations for
24-11 hospital purposes or for providing medical care for the residents
24-12 of the district.
24-13 (b) The hospital district shall assume full responsibility
24-14 for the operation of all hospital facilities and for the furnishing
24-15 of medical and hospital care for the district's needy residents.
24-16 (c) When the district is created and established, the county
24-17 and all municipalities located in or partly in the district shall
24-18 convey and transfer to the district title to all land, buildings,
24-19 improvements, and equipment that pertain to a hospital or hospital
24-20 system located in the district owned by the county, municipality,
24-21 or other governmental entity.
24-22 (d) Operating funds and reserves for operating expenses that
24-23 have been budgeted by the county, municipality, or other
24-24 governmental entity in which the district is located to provide
24-25 medical care for residents of the district for the remainder of the
24-26 fiscal year in which the district is established, taxes levied for
24-27 hospital purposes for the current year, and all funds established
25-1 for payment of indebtedness assumed by the district shall be
25-2 transferred to the district.
25-3 SECTION 3.24. The support and maintenance of the hospital
25-4 district may not become a charge against or an obligation of the
25-5 state. A direct appropriation by the legislature may not be made
25-6 for the construction, maintenance, or improvement of any of the
25-7 facilities of the district.
25-8 SECTION 3.25. In administering this Act, the district is
25-9 performing an essential public function, and any bonds issued by
25-10 the board and the transfer and the issuance from the bonds,
25-11 including any profits made in the sale of the bonds, are exempt
25-12 from taxation by the state or any municipality or political
25-13 subdivision of the state.
25-14 SECTION 3.26. Proof of publication of the notice required in
25-15 the enactment of this Act under the provisions of Section 9,
25-16 Article IX, Texas Constitution, has been made in the manner and
25-17 form provided by law pertaining to the enactment of local and
25-18 special laws, and the notice is found and declared proper and
25-19 sufficient to satisfy the requirement.
25-20 SECTION 3.27. The importance of this legislation and the
25-21 crowded condition of the calendars in both houses create an
25-22 emergency and an imperative public necessity that the
25-23 constitutional rule requiring bills to be read on three several
25-24 days in each house be suspended, and this rule is hereby suspended,
25-25 and that this Act take effect and be in force from and after its
25-26 passage, and it is so enacted.