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                               * * * * *