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 * * * * *