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.