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.