1-1 By: Sibley S.B. No. 1627
1-2 (In the Senate - Filed March 28, 1995; March 29, 1995, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 12, 1995, reported favorably by the following
1-5 vote: Yeas 9, Nays 0; April 12, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the dissolution of the DeLeon Hospital District and the
1-9 Comanche County Hospital District and the creation of the Leon
1-10 Valley Hospital District; authorizing a tax; granting the authority
1-11 to issue bonds; and granting the power of eminent domain.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 ARTICLE 1. CHANGES RELATING TO DELEON HOSPITAL DISTRICT
1-14 SECTION 1.01. Chapter 202, Acts of the 63rd Legislature,
1-15 Regular Session, 1973, is amended by adding Section 21A to read as
1-16 follows:
1-17 Sec. 21A. DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF
1-18 COMANCHE COUNTY HOSPITAL DISTRICT AND CREATION OF LEON VALLEY
1-19 HOSPITAL DISTRICT. (a) The DeLeon Hospital District may be
1-20 dissolved as provided by this section.
1-21 (b) The board of directors may order an election on the
1-22 question of the dissolution of the DeLeon Hospital District,
1-23 creation of the Leon Valley Hospital District, transfer of the
1-24 DeLeon Hospital District's assets and obligations to the Leon
1-25 Valley Hospital District, and assumption by the Leon Valley
1-26 Hospital District of the DeLeon Hospital District's outstanding
1-27 debts.
1-28 (c) The board shall order an election if:
1-29 (1) the board of the Comanche County Hospital District
1-30 orders an election under Section 21A, Chapter 203, Acts of the 63rd
1-31 Legislature, Regular Session, 1973; or
1-32 (2) the board receives a petition requesting an
1-33 election on the questions of dissolution and transfer of assets
1-34 that is signed by at least 50 registered voters in the DeLeon
1-35 Hospital District.
1-36 (d) If the board of directors orders an election under this
1-37 section, it shall promptly notify the board of directors of the
1-38 Comanche County Hospital District of the election order.
1-39 (e) The election shall be held not less than 45 or more than
1-40 60 days after the date on which an election is ordered and shall be
1-41 held on the same date that the separate election in the Comanche
1-42 County Hospital District is held. The board of directors shall
1-43 cooperate with the board of directors of the Comanche County
1-44 Hospital District in setting the date of the elections. Section
1-45 41.001(a), Election Code, does not apply to an election ordered
1-46 under this section.
1-47 (f) The ballot for the election shall be printed to permit
1-48 voting for or against the proposition: "The dissolution of the
1-49 DeLeon Hospital District and creation of the Leon Valley Hospital
1-50 District, providing for the levy of a tax not to exceed 25 cents on
1-51 each $100 valuation on all taxable property in the Leon Valley
1-52 Hospital District, and providing for the transfer to and assumption
1-53 by the Leon Valley Hospital District of all outstanding bonds and
1-54 indebtedness issued for hospital purposes by the DeLeon Hospital
1-55 District and any part of the county or any city or town located in
1-56 the district and the transfer of the existing DeLeon Hospital
1-57 District's assets to the Leon Valley Hospital District."
1-58 (g) Except as provided by Subsections (e) and (f) of this
1-59 section, the election shall be held in accordance with the
1-60 applicable provisions of the Election Code.
1-61 (h) The DeLeon Hospital District is dissolved if:
1-62 (1) a majority of the voters in the DeLeon Hospital
1-63 District voting in the election held under this section favor the
1-64 proposition; and
1-65 (2) a majority of the voters in the Comanche County
1-66 Hospital District voting in an election held on the same date under
1-67 Section 21A, Chapter 203, Acts of the 63rd Legislature, Regular
1-68 Session, 1973, favor the dissolution of the Comanche County
2-1 Hospital District, the creation of the Leon Valley Hospital
2-2 District, the transfer of the assets of the Comanche County
2-3 Hospital District to the Leon Valley Hospital District, and the
2-4 assumption of the assets and obligations of the Comanche County
2-5 Hospital District by the Leon Valley Hospital District.
2-6 (i) The DeLeon Hospital District is not dissolved and the
2-7 board of directors shall continue to administer the DeLeon Hospital
2-8 District if a majority of the voters in either the DeLeon Hospital
2-9 District or the Comanche County Hospital District do not favor the
2-10 proposition on which they voted.
2-11 (j) If the DeLeon Hospital District is dissolved under this
2-12 section, the board of directors shall transfer the assets and
2-13 obligations of the DeLeon Hospital District to the Leon Valley
2-14 Hospital District.
2-15 (k) The board of directors may not order another election on
2-16 the question of dissolution before the first anniversary of the
2-17 date of the most recent election at which voters of either district
2-18 disapproved the proposition on which they voted.
2-19 SECTION 1.02. Chapter 202, Acts of the 63rd Legislature,
2-20 Regular Session, 1973, is amended by adding Section 1B to read as
2-21 follows:
2-22 Sec. 1B. On the dissolution of the DeLeon Hospital District
2-23 and the approval of the creation of the Leon Valley Hospital
2-24 District, a reference in this Act or in any other law to the DeLeon
2-25 Hospital District means the Leon Valley Hospital District.
2-26 ARTICLE 2. CHANGES RELATING TO
2-27 COMANCHE COUNTY HOSPITAL DISTRICT
2-28 SECTION 2.01. Chapter 203, Acts of the 63rd Legislature,
2-29 Regular Session, 1973, is amended by adding Section 21A to read as
2-30 follows:
2-31 Sec. 21A. DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF
2-32 DELEON HOSPITAL DISTRICT AND CREATION OF LEON VALLEY HOSPITAL
2-33 DISTRICT. (a) The Comanche County Hospital District may be
2-34 dissolved as provided by this section.
2-35 (b) The board of directors may order an election on the
2-36 question of the dissolution of the Comanche County Hospital
2-37 District, creation of the Leon Valley Hospital District, transfer
2-38 of the Comanche County Hospital District's assets and obligations
2-39 to the Leon Valley Hospital District, and the assumption by Leon
2-40 Valley Hospital District of the Comanche County Hospital District's
2-41 outstanding debts.
2-42 (c) The board shall order an election if:
2-43 (1) the board of the DeLeon Hospital District orders
2-44 an election under Section 21A, Chapter 202, Acts of the 63rd
2-45 Legislature, Regular Session, 1973; or
2-46 (2) the board receives a petition requesting an
2-47 election on the questions of dissolution and transfer of assets
2-48 that is signed by at least 50 registered voters in the Comanche
2-49 County Hospital District.
2-50 (d) If the board of directors orders an election under this
2-51 section, it shall promptly notify the board of directors of the
2-52 DeLeon Hospital District of the election order.
2-53 (e) The election shall be held not less than 45 or more than
2-54 60 days after the date on which an election is ordered and shall be
2-55 held on the same date that the separate election in the DeLeon
2-56 Hospital District is held. The board of directors shall cooperate
2-57 with the board of directors of the DeLeon Hospital District in
2-58 setting the date of the elections. Section 41.001(a), Election
2-59 Code, does not apply to an election ordered under this section.
2-60 (f) The ballot for the election shall be printed to permit
2-61 voting for or against the proposition: "The dissolution of the
2-62 Comanche County Hospital District and creation of the Leon Valley
2-63 Hospital District, providing for the levy of a tax not to exceed 25
2-64 cents on each $100 valuation on all taxable property in the Leon
2-65 Valley Hospital District, and providing for the transfer to and
2-66 assumption by the Leon Valley Hospital District of all outstanding
2-67 bonds and indebtedness issued for hospital purposes by the Comanche
2-68 County Hospital District and any part of the county or any city or
2-69 town located in the district, and the transfer of the existing
2-70 Comanche County Hospital District's assets to the Leon Valley
3-1 Hospital District."
3-2 (g) Except as provided by Subsections (e) and (f) of this
3-3 section, the election shall be held in accordance with the
3-4 applicable provisions of the Election Code.
3-5 (h) The Comanche County Hospital District is dissolved if:
3-6 (1) a majority of the voters in the Comanche County
3-7 Hospital District voting in the election held under this section
3-8 favor the proposition; and
3-9 (2) a majority of the voters in the DeLeon Hospital
3-10 District voting in an election held on the same date under Section
3-11 21A, Chapter 202, Acts of the 63rd Legislature, Regular Session,
3-12 1973, favor the dissolution of the DeLeon Hospital District, the
3-13 creation of the Leon Valley Hospital District, the transfer of the
3-14 assets of the DeLeon Hospital District to Leon Valley Hospital
3-15 District, and the assumption of the assets and obligations of the
3-16 DeLeon Hospital District by the Leon Valley Hospital District.
3-17 (i) The Comanche County Hospital District is not dissolved
3-18 and the board of directors shall continue to administer the
3-19 Comanche County Hospital District if a majority of the voters in
3-20 either district do not favor the proposition on which they voted.
3-21 (j) If the Comanche County Hospital District is dissolved
3-22 under this section, the board of directors shall transfer the
3-23 assets and obligations of the Comanche County Hospital District to
3-24 the Leon Valley 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
3-28 disapproved the proposition on which they voted.
3-29 SECTION 2.02. Chapter 203, Acts of the 63rd Legislature,
3-30 Regular Session, 1973, is amended by adding Section 1A to read as
3-31 follows:
3-32 Sec. 1A. On the dissolution of the Comanche County Hospital
3-33 District and the approval of the creation of the Leon Valley
3-34 Hospital District, a reference in this Act or in any other law to
3-35 the Comanche County Hospital District means the Leon Valley
3-36 Hospital District.
3-37 ARTICLE 3. CREATION OF LEON VALLEY HOSPITAL DISTRICT
3-38 SECTION 3.01. (a) In accordance with the provisions of
3-39 Section 9, Article IX, Texas Constitution, this Act authorizes the
3-40 creation, establishment, administration, maintenance, operation,
3-41 and financing of a hospital district in this state with boundaries
3-42 coextensive with the boundaries as they existed on August 10, 1992,
3-43 exclusive of that portion in the South Eastland County Hospital
3-44 District, of:
3-45 (1) Commissioners Precinct Number 1 of Comanche
3-46 County;
3-47 (2) Commissioners Precinct Number 2 of Comanche County
3-48 with the addition of county election precinct number 5 and with the
3-49 deletion of county election precinct number 3 and county election
3-50 precinct number 6;
3-51 (3) Commissioners Precinct Number 3 of Comanche County
3-52 with the addition of county election precinct number 3 and county
3-53 election precinct number 6 and with the deletion of county election
3-54 precinct number 5; and
3-55 (4) Commissioners Precinct Number 4 of Comanche
3-56 County.
3-57 (b) The district is to be known as "Leon Valley Hospital
3-58 District," and it has the rights, powers, and duties as provided in
3-59 this Act.
3-60 SECTION 3.02. (a) The Leon Valley Hospital District may
3-61 not be created unless the creation, the assumption of debt, and the
3-62 levy of taxes are approved by a majority of the voters at an
3-63 election held in the DeLeon Hospital District and by a majority of
3-64 the voters at a separate election held in the Comanche County
3-65 Hospital District.
3-66 (b) The election in the DeLeon Hospital District and the
3-67 election in the Comanche County Hospital District shall be held on
3-68 the same day and must be held before the fifth anniversary of the
3-69 effective date of this Act.
3-70 SECTION 3.03. (a) If the Leon Valley Hospital District is
4-1 created in accordance with Section 21A, Chapter 202 and Section
4-2 21A, Chapter 203, Acts of the 63rd Legislature, Regular Session,
4-3 1973, the following five persons shall serve as temporary directors
4-4 of the Leon Valley Hospital District:
4-5 1. Charles Mazurek - Precinct 1
4-6 2. Jim Abbey - Precinct 2
4-7 3. Ardean Kimmell - Precinct 3
4-8 4. Wayne Hammit - Precinct 4
4-9 5. Vincenzo Giustino - At Large
4-10 (b) A vacancy on the temporary board shall be filled by the
4-11 Commissioners Court of Comanche County.
4-12 (c) The temporary board shall serve as the directors of the
4-13 Leon Valley Hospital District until elected directors take office.
4-14 SECTION 3.04. (a) If the Leon Valley Hospital District is
4-15 created, directors shall be elected at an election to be held on
4-16 the first Saturday in May following the date the Leon Valley
4-17 Hospital District is created.
4-18 (b) The temporary directors may postpone the election date
4-19 for one year or until a subsequent uniform election date if the
4-20 temporary directors determine that there is not sufficient time to
4-21 comply with the requirements of law.
4-22 (c) One director shall be elected from each of Commissioners
4-23 Precincts Numbers 1, 2, 3, and 4 of Comanche County as those
4-24 boundaries existed on August 10, 1992, and as those precincts are
4-25 described by Section 3.01 of this Act, exclusive of that portion of
4-26 any precinct that is in the South Eastland County Hospital
4-27 District, and one director shall be elected from the district at
4-28 large.
4-29 (d) At the initial election of directors following creation
4-30 of the Leon Valley Hospital District, the candidate receiving the
4-31 highest number of votes from each commissioners precinct is the
4-32 director for that precinct and the candidate receiving the highest
4-33 number of votes from the district at large is the director for the
4-34 district at large.
4-35 (e) The directors elected at the initial election of
4-36 directors following creation of the Leon Valley Hospital District
4-37 shall draw lots to determine which three directors shall serve
4-38 one-year terms and which two directors shall serve two-year terms.
4-39 SECTION 3.05. (a) After the initial election of directors
4-40 following creation, an election shall be held each year on the
4-41 first Saturday in May, and the appropriate number of successor
4-42 directors shall be elected for two-year terms.
4-43 (b) Notice of each election shall be published in a
4-44 newspaper of general circulation in the district one time at least
4-45 36 days before the date of the election. Any person desiring to
4-46 have the person's name printed on the ballot as a candidate for
4-47 director shall file an application with the secretary of the board
4-48 of directors. The application shall be filed with the secretary at
4-49 least 31 days before the date of the election. The application
4-50 must specify the commissioners precinct the candidate wishes to
4-51 represent or that the candidate wishes to represent the district at
4-52 large.
4-53 (c) Vacancies in office shall be filled for the unexpired
4-54 term by the remainder of the board of directors.
4-55 SECTION 3.06. A person may not be appointed or elected as a
4-56 member of the temporary or permanent board of directors unless the
4-57 person is a resident of the district, a qualified voter, and if
4-58 elected from a commissioners precinct, a resident of the precinct
4-59 as the precinct is described by Section 3.01 of this Act. Neither
4-60 the administrator nor any other employee of the district is
4-61 eligible to serve as a director.
4-62 SECTION 3.07. (a) The district authorized by this article
4-63 to be created shall take over and there shall be transferred to the
4-64 district title to all land, buildings, improvements, and equipment
4-65 pertaining to the hospitals or hospital system that may be located
4-66 wholly within the district and owned by Comanche County or a
4-67 municipality in the district, and after that date the district
4-68 shall provide for the establishment of a hospital system by the
4-69 purchase, construction, acquisition, repair, and renovation of
4-70 buildings and equipment, equipping the buildings, and the
5-1 administration of the district for hospital purposes.
5-2 (b) The district shall assume the outstanding indebtedness
5-3 incurred by Comanche County or any city or town in the district to
5-4 provide medical care for residents of the district before the
5-5 creation of the district.
5-6 SECTION 3.08. (a) The board of directors, both temporary
5-7 and permanent, shall organize by electing one of the members as
5-8 president and one as vice president. A secretary, who need not be
5-9 a director, shall also be elected. Officers shall be elected for a
5-10 term of one year and vacancies shall be filled for the unexpired
5-11 term by the board of directors.
5-12 (b) A majority of the members of the board voting must
5-13 concur in a matter pertaining to the business of the district.
5-14 (c) All members of the board of directors and officers shall
5-15 serve without compensation but may be reimbursed for actual
5-16 expenses incurred in the performance of the member's official
5-17 duties on the approval of those expenses by the board of directors
5-18 and reported in the minute book of the district or other records of
5-19 the district.
5-20 SECTION 3.09. (a) The board of directors shall manage,
5-21 control, and administer the hospital system and the business of and
5-22 all funds and resources of the district, but operating,
5-23 depreciation, or building reserves may not be invested in any funds
5-24 or securities other than those specified in Articles 836 and 837,
5-25 Revised Statutes.
5-26 (b) The district, through its board of directors, may sue
5-27 and be sued and adopt rules governing the operation of the
5-28 hospital, the hospital system, and the district's staff and
5-29 employees.
5-30 (c) The board of directors shall appoint a qualified person
5-31 to be known as the administrator of the hospital district and may
5-32 appoint an assistant to the administrator. The administrator and
5-33 assistant administrator, if any, serve at the will of the board and
5-34 receive compensation as may be fixed by the board. The
5-35 administrator shall, on assuming the administrator's duties,
5-36 execute a bond payable to the hospital district in an amount set by
5-37 the board of directors, but not less than $5,000, conditioned on
5-38 the faithful performance of the duties required of the
5-39 administrator and containing other conditions as the board may
5-40 require. The board may pay for the bond with district funds. The
5-41 administrator shall supervise all the work and activities of the
5-42 district, subject to the limitations prescribed by the board.
5-43 (d) The board of directors shall have the authority to
5-44 appoint to the staff any doctors the board considers necessary for
5-45 the efficient operation of the district if warranted by
5-46 circumstances. The board shall have the authority to employ and
5-47 may delegate to the administrator the authority to employ persons
5-48 for the district, including technicians, nurses, fiscal agents,
5-49 accountants, architects, and other necessary employees.
5-50 (e) The board may contract with any other political
5-51 subdivision or governmental agency for the district to provide
5-52 investigatory or other services as to the medical, hospital, or
5-53 welfare needs of the residents of the district. The district may
5-54 contract with any county or municipality located outside the
5-55 district's boundaries for the care and treatment of the sick,
5-56 diseased, or injured persons of the county or municipality, and may
5-57 contract with the state or agencies of the federal government for
5-58 the state or federal government to reimburse the district for the
5-59 treatment of the sick, diseased, or injured persons.
5-60 SECTION 3.10. (a) The district shall operate on the basis
5-61 of fiscal years established from time to time by the board of
5-62 directors, provided that a fiscal year may not be changed during
5-63 the time revenue bonds of the district are outstanding or more than
5-64 once in any 24-month period.
5-65 (b) The board shall cause an annual audit to be made of the
5-66 financial condition of the district, which together with other
5-67 records of the district shall be open to inspection at the
5-68 principal office of the district.
5-69 (c) The administrator shall prepare an annual budget for
5-70 approval by the board of directors. The budget shall contain a
6-1 complete financial statement of the district showing:
6-2 (1) all outstanding obligations of the district;
6-3 (2) the cash on hand to the credit of each fund of the
6-4 district;
6-5 (3) the funds received from all sources during the
6-6 previous year;
6-7 (4) the funds available from all sources during the
6-8 ensuing year, with balances expected at year end of the year in
6-9 which the budget is being prepared; and
6-10 (5) estimated revenues and balances available to cover
6-11 the proposed budget and the estimated tax rate that will be
6-12 required.
6-13 (d) A public hearing on the annual budget shall be held by
6-14 the board of directors after notice of the hearing has been
6-15 published one time in a newspaper of general circulation in the
6-16 district at least 10 days before the date set for the hearing. Any
6-17 person residing in the district shall have the right to be present
6-18 and participate in the hearing.
6-19 (e) The budget, as proposed by the administrator, shall be
6-20 acted on by the board of directors. The board of directors shall
6-21 have authority to make changes in the budget as the board
6-22 determines the law warrants and the interests of the taxpayers
6-23 demand.
6-24 (f) An expenditure may not be made for any expense not
6-25 included in the annual budget or in an amendment to the budget.
6-26 (g) The annual budget may be amended from time to time as
6-27 the circumstances require, but the annual budget, and all
6-28 amendments to the budget, must be approved by the board of
6-29 directors.
6-30 (h) As soon as practicable after the close of each fiscal
6-31 year, the administrator shall prepare for the board a sworn
6-32 statement of all money belonging to the district and an account of
6-33 the disbursements of all money belonging to the district.
6-34 SECTION 3.11. (a) The board of directors shall have the
6-35 power and authority to issue and sell bonds in the name and on the
6-36 faith and credit of the hospital district for:
6-37 (1) the purchase, construction, acquisition, repair,
6-38 and renovation of buildings or improvements;
6-39 (2) equipping the buildings and improvements for
6-40 hospital purposes; or
6-41 (3) acquiring and operating a mobile emergency
6-42 service.
6-43 (b) At the time bonds are issued by the district, a tax
6-44 shall be levied by the board sufficient to create an interest and
6-45 sinking fund to pay the interest on and principal of the bonds as
6-46 the bonds mature, provided that the tax together with any other
6-47 taxes levied for the district may not exceed the limit approved by
6-48 the voters at the election authorizing the levy of taxes.
6-49 (c) Bonds may not be issued by the hospital district except
6-50 for refunding bonds until authorized by a majority of the electors
6-51 of the district.
6-52 (d) The order for a bond election shall specify:
6-53 (1) the nature and date of the election;
6-54 (2) the location of the polling places;
6-55 (3) the hours during which the polls will be open;
6-56 and
6-57 (4) the amount of bonds to be authorized and the
6-58 maximum maturity of the bonds.
6-59 (e) Notice of a bond election shall be given as provided in
6-60 Article 704, Revised Statutes, and shall be conducted in accordance
6-61 with the Election Code, except as modified by the provisions of
6-62 this Act.
6-63 SECTION 3.12. (a) Refunding bonds of the district may be
6-64 issued for the purpose of refunding and paying off any outstanding
6-65 indebtedness the district has issued or assumed.
6-66 (b) Refunding bonds may be sold and the proceeds from the
6-67 bonds may be applied to the payment of outstanding indebtedness or
6-68 may be exchanged in whole or in part for not less than a similar
6-69 principal amount of the outstanding indebtedness.
6-70 (c) If the refunding bonds are to be sold and the proceeds
7-1 from the bonds are to be applied to the payment of any outstanding
7-2 indebtedness, the refunding bonds shall be issued and payments made
7-3 in the manner specified by Chapter 503, Acts of the 54th
7-4 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
7-5 Civil Statutes).
7-6 (d) Refunding bonds shall be issued in conformity with
7-7 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
7-8 (Article 717k-3, Vernon's Texas Civil Statutes).
7-9 SECTION 3.13. (a) Bonds issued by the district must:
7-10 (1) mature not later than the 40th anniversary of the
7-11 date of issuance;
7-12 (2) be executed in the name of the hospital district
7-13 and on the district's behalf by the president of the board and
7-14 countersigned by the secretary as provided by Chapter 204, Acts of
7-15 the 57th Legislature, Regular Session, 1961 (Article 717j-1,
7-16 Vernon's Texas Civil Statutes);
7-17 (3) bear a rate of interest that does not exceed the
7-18 amount prescribed by Chapter 3, Acts of the 61st Legislature,
7-19 Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
7-20 Statutes); and
7-21 (4) be subject to the same requirements in the manner
7-22 of approval by the attorney general and registration by the
7-23 comptroller as provided for approval and registration of bonds
7-24 issued by a county.
7-25 (b) On the approval of the bonds by the attorney general and
7-26 registration by the comptroller, the bonds shall be incontestable
7-27 for any cause.
7-28 SECTION 3.14. (a) In addition to the power to issue bonds
7-29 payable from taxes levied by the district under Section 3.12 of
7-30 this Act, the board of directors may issue and refund any
7-31 previously issued revenue bond to:
7-32 (1) purchase, construct, acquire, repair, equip, or
7-33 renovate a building or improvement for hospital purposes;
7-34 (2) acquire a site for hospital purposes; or
7-35 (3) acquire and operate a mobile emergency service to
7-36 assist the district in carrying out the district's hospital
7-37 purposes.
7-38 (b) Bonds authorized under this section shall be payable
7-39 from and secured by a pledge of all or any part of the revenues of
7-40 the district to be derived from the operation of the district's
7-41 hospital system, and may be additionally secured by a mortgage or
7-42 deed of trust lien on any part or all of the district's properties.
7-43 (c) Bonds shall be issued in the manner and in accordance
7-44 with the procedures and requirements specified for the issuance of
7-45 revenue bonds by a county hospital authority under Chapter 264,
7-46 Health and Safety Code.
7-47 SECTION 3.15. (a) The board of directors has complete
7-48 discretion as to the type of buildings, both in number and
7-49 location, required to establish and maintain an adequate hospital
7-50 system and the type of equipment necessary for hospital care. The
7-51 hospital system may include:
7-52 (1) domiciliary care and treatment of the sick,
7-53 wounded, and injured;
7-54 (2) outpatient clinics;
7-55 (3) dispensaries;
7-56 (4) geriatric domiciliary care and treatment;
7-57 (5) convalescent home facilities;
7-58 (6) necessary nurses, domiciliaries, and training
7-59 centers;
7-60 (7) blood banks, community mental health centers,
7-61 research centers, and laboratories; and
7-62 (8) any other facilities determined by the board to be
7-63 necessary for hospital care.
7-64 (b) The district, through its board of directors, may enter
7-65 into an operating or management contract with regard to all or part
7-66 of the district's facilities or may lease all or part of the
7-67 district's buildings and facilities on terms and conditions
7-68 considered to be in the best interest of the residents of the
7-69 district. A lease under this section may not be for a period that
7-70 exceeds the 25th anniversary of the date the lease was entered.
8-1 (c) The district may sell or otherwise dispose of any
8-2 property, real or personal, or equipment of any nature on terms and
8-3 conditions found by the board to be in the best interest of the
8-4 residents of the district.
8-5 (d) The board of directors of the district may prescribe the
8-6 method and manner of making purchases and expenditures by and for
8-7 the hospital district and may prescribe all accounting and control
8-8 procedures.
8-9 (e) A contract for construction involving the expenditure of
8-10 more than $10,000 may be made only after competitive bidding as
8-11 provided by Subchapter B, Chapter 271, Local Government Code.
8-12 (f) The provisions of Chapter 2253, Government Code,
8-13 relating to performance and payment bonds apply to construction
8-14 contracts let by the district.
8-15 (g) The district may acquire property, facilities, and
8-16 equipment for use in the hospital system and may mortgage or pledge
8-17 the property, facilities, or equipment acquired by the district as
8-18 security for the payment of the purchase price.
8-19 (h) The board of directors of the district shall name one or
8-20 more banks to serve as depository for the funds of the district.
8-21 All funds of the district, except those invested as provided in
8-22 Subsection (a) of Section 3.09 of this Act and those transmitted to
8-23 a bank for payment for bonds or obligations issued or assumed by
8-24 the district, shall be deposited as received with the depository
8-25 bank and shall remain on deposit. Nothing in this subsection may
8-26 limit the power of the board to place a portion of the board's
8-27 funds on time deposit or to purchase certificates of deposit.
8-28 (i) Before the district deposits the district's funds in a
8-29 bank in an amount that exceeds the maximum amount secured by the
8-30 Federal Deposit Insurance Corporation, the bank must execute a bond
8-31 or other security in an amount sufficient to secure from loss the
8-32 district funds that exceed the amount secured by the Federal
8-33 Deposit Insurance Corporation.
8-34 SECTION 3.16. (a) The board of directors shall annually
8-35 levy a tax in an amount not to exceed the limit approved by the
8-36 voters for the purpose of paying:
8-37 (1) the indebtedness assumed or issued by the
8-38 district; or
8-39 (2) the maintenance and operating expenses of the
8-40 district.
8-41 (b) A tax levied under this section may not be levied to pay
8-42 the principal of or interest on revenue bonds issued under Section
8-43 3.14 of this Act.
8-44 (c) In setting a tax rate under this section, the board
8-45 shall consider the income of the district from sources other than
8-46 taxation. On determining the amount of tax required to be levied,
8-47 the board shall make the levy and certify the levy to the tax
8-48 assessor-collector.
8-49 SECTION 3.17. (a) Bonds issued and indebtedness assumed by
8-50 the district are a legal and authorized investment of a bank,
8-51 savings bank, trust company, savings and loan association,
8-52 insurance company, fiduciary, trustee, guardian, or sinking fund of
8-53 a municipality, school district, or other political subdivision of
8-54 the state, and for all public funds of the state or an agency of
8-55 the state, including the state permanent school fund.
8-56 (b) Bonds issued or indebtedness assumed by the district is
8-57 eligible to secure the deposit of public funds of the state and the
8-58 public funds of a municipality, school district, or other political
8-59 subdivision of the state, and is lawful and sufficient security for
8-60 those deposits to the extent of the value of the bonds or
8-61 indebtedness when accompanied by all unmatured coupons.
8-62 SECTION 3.18. (a) The district has the right and power of
8-63 eminent domain for the purpose of acquiring by condemnation any and
8-64 all property of any kind and character in fee simple, or any lesser
8-65 interest in the property, within the boundaries of the district if
8-66 necessary to the exercise of the rights or authority conferred by
8-67 this Act in the manner provided by the general law with respect to
8-68 condemnation by counties.
8-69 (b) The district is not required to deposit in the trial
8-70 court money or bond as provided by Section 21.021, Property Code.
9-1 (c) In a condemnation proceeding prosecuted by the district,
9-2 the district is not required to:
9-3 (1) pay in advance or give bond or other security for
9-4 costs in the trial court;
9-5 (2) give any bond otherwise required for the issuance
9-6 of a temporary restraining order or a temporary injunction; or
9-7 (3) give bond for costs or for supersedeas on an
9-8 appeal or writ of error.
9-9 SECTION 3.19. (a) The directors may levy taxes for the
9-10 entire year in which the district is established as a result of the
9-11 initial election provided under this Act.
9-12 (b) The Tax Code governs the appraisal, assessment, and
9-13 collection of district taxes.
9-14 (c) The board may provide for the appointment of a tax
9-15 assessor-collector for the district or may contract for the
9-16 assessment and collection of taxes as provided by the Tax Code.
9-17 SECTION 3.20. (a) The district shall provide without charge
9-18 to a patient residing in the district the care and treatment that
9-19 the patient or a relative of the patient who is legally responsible
9-20 for the patient's support cannot pay.
9-21 (b) Not later than the first day of each operating year, the
9-22 district shall adopt an application procedure to determine
9-23 eligibility for assistance as provided in Section 61.053, Health
9-24 and Safety Code.
9-25 (c) The administrator may cause an inquiry to be made
9-26 regarding the financial circumstances of a patient under Subsection
9-27 (a) of this section residing in the district and admitted to a
9-28 district facility and of the relatives of the patient legally
9-29 responsible for the patient's support. If the patient or relative
9-30 is found to be able to pay for all or part of the care and
9-31 treatment, the administrator shall report that finding to the board
9-32 and the board shall issue an order directing the patient or the
9-33 relative to pay to the hospital district for the care and support
9-34 of the patient a specified sum each week in an amount that the
9-35 individual is able to pay. The administrator may collect sums
9-36 under this subsection from the estate of the patient or a relative
9-37 legally responsible for the patient's support in the manner
9-38 provided by law for collection of expenses in the last illness of a
9-39 deceased person.
9-40 (d) In the case of a dispute regarding the ability to pay,
9-41 the board of directors shall call witnesses, conduct a hearing, and
9-42 issue a final order. An appeal from a final order of the board
9-43 under this subsection shall be made to the district court in
9-44 Comanche County. The substantial evidence rule applies to an
9-45 appeal under this subsection.
9-46 SECTION 3.21. The board of directors, on behalf of the
9-47 district, may accept donations, gifts, and endowments to be held in
9-48 trust and administered by the board of directors for purposes and
9-49 under directions, limitations, and provisions prescribed in writing
9-50 by the donor that are not inconsistent with the proper management
9-51 of the hospital district.
9-52 SECTION 3.22. (a) If the board of directors declares that
9-53 funds are not available to meet the lawfully authorized obligations
9-54 of the district and that an emergency exists, the board may borrow
9-55 money at a rate not to exceed the maximum annual percentage rate
9-56 allowed by law for district obligations at the time of the loan.
9-57 (b) To secure a loan, the board may pledge:
9-58 (1) revenues of the district that are not pledged to
9-59 pay the bonded indebtedness of the district;
9-60 (2) district taxes to be levied by the district during
9-61 the 12-month period following the date of the pledge that are not
9-62 pledged to pay the principal of or interest on district bonds; or
9-63 (3) district bonds that have been authorized but not
9-64 sold.
9-65 (c) A loan for which taxes or bonds are pledged shall mature
9-66 not later than the first anniversary of the date on which the loan
9-67 is made. A loan for which district revenues are pledged shall
9-68 mature not later than the fifth anniversary of the date on which
9-69 the loan is made.
9-70 (d) The board may not spend money obtained from a loan under
10-1 this section for any purpose other than the purpose for which the
10-2 board declared an emergency. If taxes or bonds are pledged to pay
10-3 the loan, the board may not spend the revenue other than for the
10-4 purpose for which the taxes were levied or the bonds were
10-5 authorized.
10-6 SECTION 3.23. (a) After the hospital district is created, a
10-7 county, municipality, or political subdivision in or partly in the
10-8 district may not levy taxes or issue bonds or other obligations for
10-9 hospital purposes or for providing medical care for the residents
10-10 of the district.
10-11 (b) The hospital district shall assume full responsibility
10-12 for the operation of all hospital facilities and for the furnishing
10-13 of medical and hospital care for the district's needy residents.
10-14 (c) When the district is created and established, the county
10-15 and all municipalities located in or partly in the district shall
10-16 convey and transfer to the district title to all land, buildings,
10-17 improvements, and equipment that pertain to a hospital or hospital
10-18 system located in the district owned by the county, municipality,
10-19 or other governmental entity.
10-20 (d) Operating funds and reserves for operating expenses that
10-21 have been budgeted by the county, municipality, or other
10-22 governmental entity in which the district is located to provide
10-23 medical care for residents of the district for the remainder of the
10-24 fiscal year in which the district is established, taxes levied for
10-25 hospital purposes for the current year, and all funds established
10-26 for payment of indebtedness assumed by the district shall be
10-27 transferred to the district.
10-28 SECTION 3.24. The support and maintenance of the hospital
10-29 district may not become a charge against or an obligation of the
10-30 state. A direct appropriation by the legislature may not be made
10-31 for the construction, maintenance, or improvement of any of the
10-32 facilities of the district.
10-33 SECTION 3.25. In administering this Act, the district is
10-34 performing an essential public function, and any bonds issued by
10-35 the board and the transfer and the issuance from the bonds,
10-36 including any profits made in the sale of the bonds, are exempt
10-37 from taxation by the state or any municipality or political
10-38 subdivision of the state.
10-39 SECTION 3.26. Proof of publication of the notice required in
10-40 the enactment of this Act under the provisions of Section 9,
10-41 Article IX, Texas Constitution, has been made in the manner and
10-42 form provided by law pertaining to the enactment of local and
10-43 special laws, and the notice is found and declared proper and
10-44 sufficient to satisfy the requirement.
10-45 SECTION 3.27. The importance of this legislation and the
10-46 crowded condition of the calendars in both houses create an
10-47 emergency and an imperative public necessity that the
10-48 constitutional rule requiring bills to be read on three several
10-49 days in each house be suspended, and this rule is hereby suspended,
10-50 and that this Act take effect and be in force from and after its
10-51 passage, and it is so enacted.
10-52 * * * * *