1-1 AN ACT
1-2 relating to the Castro County and Ochiltree County hospital
1-3 districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 103, Acts of the 57th Legislature,
1-6 Regular Session, 1961, is amended by amending Sections 3, 4, 6, 8,
1-7 and 9 and by adding Sections 3A, 6A, 6B, 8B, and 14A to read as
1-8 follows:
1-9 Sec. 3. Within ten (10) days after such election is held the
1-10 Commissioners Court in such county shall convene and canvass the
1-11 returns of the election, and if a majority of the qualified
1-12 property taxpaying electors voting at said election voted in favor
1-13 of the proposition, the court shall so find and declare the
1-14 hospital district established and created and appoint five (5)
1-15 persons as directors of the hospital district to serve until the
1-16 first Saturday in April following the creation and establishment of
1-17 the district at which time five (5) directors shall be elected.
1-18 The three (3) directors receiving the highest vote at such first
1-19 election shall serve for two (2) years, the other two (2) directors
1-20 shall serve for one (1) year. Thereafter, all directors shall
1-21 serve for a period of two (2) years and until their successor has
1-22 been duly elected or appointed and qualified. No person shall be
1-23 appointed or elected as a member of the board of directors of said
1-24 hospital district unless he is a resident thereof and owns land
2-1 subject to taxation therein and unless at the time of such election
2-2 or appointment he shall be more than twenty-one (21) years of age.
2-3 A person may not be elected or appointed as a member of the board
2-4 of directors of the Castro County Hospital District unless the
2-5 person is a resident of the district and is at the time of election
2-6 or appointment at least 21 years of age. An employee or a medical
2-7 staff member of the Ochiltree County Hospital District may not
2-8 serve as a director of that district. Each member of the board of
2-9 directors shall qualify by executing the constitutional oath of
2-10 office and shall execute a good and sufficient bond for One
2-11 Thousand Dollars ($1,000) payable to said district conditioned upon
2-12 the faithful performance of his duties, and such oaths and bonds
2-13 shall be deposited with the depository bank of the district for
2-14 safekeeping. The Ochiltree County Hospital District may purchase
2-15 directors' bonds with district funds.
2-16 The board of directors shall organize by electing one (1) of
2-17 their number as president and one (1) of their number as secretary.
2-18 Any three (3) members of the board of directors shall constitute a
2-19 quorum and a concurrence of three (3) shall be sufficient in all
2-20 matters pertaining to the business of the district. All vacancies
2-21 in the office of director shall be filled for the unexpired term by
2-22 appointment of the remainder of the board of directors. In the
2-23 event the number of directors shall be reduced to less than three
2-24 (3) for any reason, the remaining directors shall immediately call
2-25 a special election to fill said vacancies, and upon failure to do
2-26 so a district court may, upon application of any voter or taxpayer
2-27 of the district, issue a mandate requiring that such election be
3-1 ordered by the remaining directors.
3-2 A regular election of directors shall be held on the first
3-3 Saturday in May [April] of each year and notice of such election
3-4 shall be published in a newspaper of general circulation in the
3-5 county one (1) time at least ten (10) days prior to the date of
3-6 election. A person who wishes to have the person's name printed on
3-7 the ballot as a candidate for director of the Castro County
3-8 Hospital District must file an application with the secretary of
3-9 the board of the Castro County Hospital District not later than the
3-10 45th day before the date of the election. Any person desiring his
3-11 name to be printed on the ballot as a candidate for director of the
3-12 Ochiltree County Hospital District shall file a petition, signed by
3-13 not less than twenty-five (25) qualified voters asking that such
3-14 name be printed on the ballot, with the secretary of the board of
3-15 directors of the district[. Such petition shall be filed with such
3-16 secretary] at least twenty-five (25) days prior to the date of
3-17 election.
3-18 Sec. 3A. (a) This section applies only to the Ochiltree
3-19 County Hospital District.
3-20 (b) In a general or special election of directors, a
3-21 write-in vote may not be counted unless the name written in appears
3-22 on the list of write-in candidates.
3-23 (c) To be entitled to a place on the list of write-in
3-24 candidates, a candidate must make a declaration of write-in
3-25 candidacy.
3-26 (d) A declaration of write-in candidacy must be filed with
3-27 the secretary of the board of directors not later than 5 p.m. of
4-1 the 25th day before election day. However, if a candidate whose
4-2 name is to appear on the ballot dies or is declared ineligible
4-3 after the 28th day before election day, a declaration of write-in
4-4 candidacy for the office sought by the deceased or ineligible
4-5 candidate may be filed not later than 5 p.m. of the 22nd day before
4-6 election day.
4-7 (e) Subchapter C, Chapter 2, Election Code, applies to the
4-8 election of unopposed candidates for the board of directors.
4-9 Sec. 4. The management and control of each hospital district
4-10 created pursuant to the provisions of this Act is hereby vested in
4-11 the board of directors of the district who shall serve without
4-12 compensation but may be reimbursed for actual expenses incurred in
4-13 the performance of their official duties upon the approval of such
4-14 expenses by the entire board of directors. The board of directors
4-15 of the Ochiltree County Hospital District may defend or indemnify
4-16 an officer, director, board appointee, medical staff member, or
4-17 employee of the district against or for liability, claims, or
4-18 expenses that arise from the performance of a duty in the person's
4-19 respective capacity as an officer, director, board appointee,
4-20 medical staff member, or employee of the district. The board of
4-21 directors may purchase liability insurance coverage or establish a
4-22 self-insurance program to fund indemnification under this section.
4-23 Sec. 6. The board of directors shall have the power and
4-24 authority to issue and sell as the obligations of such hospital
4-25 district, and in the name and upon the faith and credit of such
4-26 hospital district, bonds for the purchase, construction,
4-27 acquisition, repair or renovation of buildings and improvements and
5-1 equipping the same for hospital purposes and for any or all of such
5-2 purposes; provided, that a sufficient tax shall be levied to create
5-3 an interest and sinking fund to pay the interest and principal as
5-4 same matures provided said tax together with any other taxes levied
5-5 for said district shall not exceed Seventy-five Cents (75 ) on each
5-6 $100 valuation of taxable property in any one year. The Ochiltree
5-7 County Hospital District may also issue and sell bonds for health
5-8 care purposes subject to the requirements of this section. Such
5-9 bonds shall be executed in the name of the hospital district and on
5-10 its behalf by the president of the board of directors, and
5-11 countersigned by the secretary of the board of directors, and shall
5-12 be subject to the same requirements in the matter of approval
5-13 thereof by the Attorney General of the State of Texas and the
5-14 registration thereof by the Comptroller of Public Accounts of the
5-15 State of Texas as are by law provided for such approval and
5-16 registration of bonds of such county. Upon the approval of such
5-17 bonds by the Attorney General of Texas the same shall be
5-18 incontestable for any cause. Except as provided by Section 6A, no
5-19 [No] bonds shall be issued by such hospital district (except
5-20 refunding bonds) until authorized by a majority vote of the legally
5-21 qualified property taxpaying electors, residing in such hospital
5-22 district, voting at an election called and held for such purpose.
5-23 Such election may be called by the board of directors of its own
5-24 motion, shall specify the place or places where the election shall
5-25 be held, the presiding officers thereof, the purpose for which the
5-26 bonds are to be issued, the amount thereof, maximum interest rate
5-27 (not to exceed six (6%) per cent per annum) and the maximum
6-1 maturity date of such bonds (not to exceed forty (40) years from
6-2 their date of issuance). Notice of election shall be given by
6-3 publishing a substantial copy of the order calling the election in
6-4 a newspaper of general circulation in such county once a week for
6-5 two (2) consecutive weeks prior to the date of election, the date
6-6 of the first publication being at least fourteen (14) full days
6-7 prior to the date set for the election. The costs of such election
6-8 shall be paid by the hospital district.
6-9 In the manner hereinabove provided, the bonds of such
6-10 hospital district may, without the necessity of any election
6-11 therefor, be issued for the purpose of refunding and paying off any
6-12 bonded indebtedness theretofore assumed by such hospital district
6-13 and any bonds therefore issued by such hospital district; such
6-14 refunding bonds may be sold and the proceeds thereof applied to the
6-15 payment of any such outstanding bonds or may be exchanged in whole
6-16 or in part for not less than a like amount of said outstanding
6-17 bonds and interest matured thereon, but unpaid; provided the
6-18 average interest cost per annum on the refunding bonds, computed in
6-19 accordance with recognized standard bond interest cost tables,
6-20 shall not exceed the average interest cost per annum so computed,
6-21 upon the bonds to be discharged out of the proceeds of the
6-22 refunding bonds, unless the total interest cost on the refunding
6-23 bonds, computed to their respective maturity dates, is less than
6-24 the total interest cost so computed on the bonds to be discharged
6-25 out of such proceeds. In the foregoing computations, any premium
6-26 or premiums required to be paid upon the bonds to be refunded as a
6-27 condition to payment in advance of their stated maturity dates
7-1 shall be taken into account as an addition to the net interest cost
7-2 to the hospital district of the refunding bonds.
7-3 If the county in which the district is located or any city
7-4 within such county has voted bonds to provide hospital facilities;
7-5 but such bonds have not been sold and delivered at the date of the
7-6 creation of the hospital district, the authority for such bonds
7-7 shall be canceled and they shall not be sold.
7-8 Sec. 6A. (a) In selling and reissuing bonds, and in making
7-9 payments of outstanding indebtedness, the Ochiltree County Hospital
7-10 District shall comply with Chapter 503, Acts of the 54th
7-11 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
7-12 Civil Statutes), and Chapter 784, Acts of the 61st Legislature,
7-13 Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
7-14 Statutes). The interest rate for district bonds may not exceed the
7-15 maximum rate allowed under Chapter 3, Acts of the 61st Legislature,
7-16 Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
7-17 Statutes).
7-18 (b) The board of directors of the Ochiltree County Hospital
7-19 District may issue revenue bonds to purchase, construct, acquire,
7-20 repair, equip, or renovate buildings or improvements for or to
7-21 acquire sites for hospital or health care purposes. The board of
7-22 directors may also issue bonds to refund any previously issued
7-23 bonds for the same purposes. The bonds must be payable from and
7-24 secured by a pledge of all or any part of the district's revenues
7-25 from the operation of the district's facilities. The bonds may
7-26 also be secured by a mortgage or deed of trust lien on all or any
7-27 part of its property. The district shall issue the bonds in
8-1 accordance with the procedures and requirements for the issuance of
8-2 revenue bonds by county hospital authorities specified by Sections
8-3 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health
8-4 and Safety Code.
8-5 (c) Because the district is a public entity performing an
8-6 essential public function, bonds issued by the district,
8-7 transactions relating to the bonds, and profits made in the sale of
8-8 the bonds are free from taxation by the state or any city, county,
8-9 special district, or other political subdivision of the state.
8-10 Sec. 6B. The board of directors of the Ochiltree County
8-11 Hospital District may borrow money for district purposes on the
8-12 credit of the district or secured by revenues of the district.
8-13 Sec. 8. (a) The board of directors of such district shall
8-14 have the power to prescribe the method and manner of making
8-15 purchases and expenditures by and for such hospital district, and
8-16 also shall prescribe all accounting and control procedures; the
8-17 method of purchasing necessary supplies, materials and equipment;
8-18 and shall have the power to adopt a seal for such district; and may
8-19 employ a general manager, attorney, bookkeeper and architect.
8-20 (b) The board of directors of the Ochiltree County Hospital
8-21 District may appoint a qualified person as administrator of the
8-22 district. The administrator serves at the will of the board of
8-23 directors and receives compensation as determined by the board of
8-24 directors. The administrator shall supervise the work and
8-25 activities of the district and direct the general affairs of the
8-26 district subject to the limitations prescribed by the board of
8-27 directors.
9-1 (c) The board of directors of the Ochiltree County Hospital
9-2 District may employ technicians, nurses, fiscal agents,
9-3 accountants, and other necessary employees. The board of directors
9-4 may delegate to the administrator the authority to employ these
9-5 persons for the district.
9-6 (d) The board of directors of the Ochiltree County Hospital
9-7 District may appoint doctors to the medical staff or remove doctors
9-8 from the medical staff as necessary for the efficient operation of
9-9 the district. This authority includes the authority to make
9-10 temporary appointments. The board of directors may adopt policies
9-11 relating to the appointment and removal of medical staff members.
9-12 (e) All books, records, accounts, notices and minutes and
9-13 all other matters of the district and the operation of its
9-14 facilities shall, except as herein provided, be maintained at the
9-15 office of the district and there be open to public inspection at
9-16 all reasonable hours.
9-17 (f) The board of directors is specifically empowered to
9-18 adopt rules and regulations governing the operation of such
9-19 district and its facilities which rules and regulations shall
9-20 supplement but shall not contravene any of the provisions of this
9-21 Act. Such rules and regulations may, upon approval of the board of
9-22 directors, be published in booklet or pamphlet form at the expense
9-23 of the district and may be made available to any taxpayer upon
9-24 request.
9-25 Sec. 8B. (a) This section applies only to the Ochiltree
9-26 County Hospital District.
9-27 (b) The board of directors shall determine the type, number,
10-1 and location of facilities required to establish and maintain an
10-2 adequate hospital system and the type of equipment necessary for
10-3 hospital care. The hospital system may include facilities and
10-4 equipment to provide for domiciliary care and treatment of sick,
10-5 injured, or geriatric patients, outpatient clinics, rural health
10-6 clinics, convalescent home facilities, assisted living or personal
10-7 care facilities, physician's offices, home health care services,
10-8 durable medical equipment, long-term care, skilled nursing care,
10-9 intermediate nursing care, hospice care, community mental health
10-10 centers, alcohol or chemical dependency centers, or any other
10-11 facility or equipment the board considers necessary for hospital
10-12 purposes. The district may also operate or assist in the operation
10-13 of a mobile emergency medical service as part of the hospital
10-14 system.
10-15 (c) The board of directors may acquire by lease, purchase,
10-16 or lease to purchase or may construct, repair, or renovate
10-17 property, facilities, or equipment for use in the district hospital
10-18 system and may mortgage or pledge the property, facilities, or
10-19 equipment acquired as security for the payment of the purchase
10-20 price.
10-21 (d) The board of directors may lease hospital facilities on
10-22 behalf of the district.
10-23 (e) The district may operate any facilities covered by this
10-24 section or may enter into a contract with any person to manage or
10-25 operate any of those facilities.
10-26 (f) The board of directors may lease or sell all or part of
10-27 the district's property, facilities, or equipment to any public or
11-1 private entity or otherwise dispose of property, facilities, or
11-2 equipment of the district.
11-3 (g) The district, subject to the approval of the board of
11-4 directors, may provide primary care, emergency services,
11-5 preventative medical services, and other health related services
11-6 outside the district, provided that the services serve the purpose
11-7 of the district as established by this Act.
11-8 (h) The board of directors may contract with a political
11-9 subdivision or governmental agency to provide investigatory or
11-10 other services related to facilities for the medical care,
11-11 hospital, or welfare needs of the inhabitants of the district and
11-12 may contract with a hospital, hospital authority, hospital
11-13 district, emergency services district, county, municipality, or
11-14 other political subdivision of this state that is located outside
11-15 its boundaries to be reimbursed for the care and treatment of the
11-16 sick, diseased, or injured persons of that entity. The board of
11-17 directors may also contract with the state or agencies of the
11-18 federal government to be reimbursed for the treatment of sick,
11-19 diseased, or injured persons.
11-20 (i) The district may contract with, affiliate with, or enter
11-21 into another arrangement with a managed care system, a preferred
11-22 provider organization, a health maintenance organization, another
11-23 provider of alternative health care or delivery system, or a
11-24 private hospital to jointly administer or deliver health care
11-25 services. The district may spend district funds to establish and
11-26 maintain partnerships, corporations, or other entities involved in
11-27 the delivery of health care services.
12-1 (j) The district may sponsor and create a nonstock
12-2 corporation under the Texas Non-Profit Corporation Act (Article
12-3 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
12-4 contribute funds to or solicit funds for the corporation. The
12-5 corporation may use funds, other than funds paid by the corporation
12-6 to the district, only to provide health care or other services the
12-7 district may provide under this Act. The board of directors of the
12-8 hospital district shall establish adequate controls to ensure that
12-9 the corporation uses its funds as required by this subsection. The
12-10 corporation may invest corporation funds in any manner in which the
12-11 district may invest funds, including investing funds as authorized
12-12 by Chapter 2256, Government Code.
12-13 (k) The board of directors may spend district funds, enter
12-14 into agreements, and take other necessary action to recruit
12-15 physicians and other persons to serve as medical staff members or
12-16 employees of the district, including:
12-17 (1) advertising and marketing;
12-18 (2) paying travel, recruitment, and relocation
12-19 expenses;
12-20 (3) providing a loan or scholarship to a physician or
12-21 a person currently enrolled in health care education courses at an
12-22 institution of higher education who contractually agrees to become
12-23 a district employee or medical staff member; and
12-24 (4) providing office space without the payment of rent
12-25 for the space or otherwise subsidizing office space or other
12-26 facilities for a health care professional, including a physician.
12-27 (l) The board of directors may spend district funds, enter
13-1 into agreements, and take other necessary action to conduct,
13-2 participate in, or otherwise assist in providing health care
13-3 educational programs for current or prospective medical staff
13-4 members or employees of the district.
13-5 (m) The board of directors may provide retirement benefits
13-6 for employees of the district by establishing or administering a
13-7 retirement program or by participating in the Texas County and
13-8 District Retirement System or in another statewide retirement
13-9 system in which the district is eligible to participate.
13-10 Sec. 9. The fiscal year of the Ochiltree County Hospital
13-11 District [hospital districts] authorized to be established by the
13-12 provisions hereof shall commence on October 1 of each year and end
13-13 on the 30th day of September of the following year. The Castro
13-14 County Hospital District shall operate on the fiscal year
13-15 established by the board of directors of that district. The
13-16 district directors shall cause an annual independent audit to be
13-17 made of the books and records of the district, such audit to be
13-18 made covering such fiscal year, and the same shall be filed with
13-19 the Comptroller of Public Accounts of the State of Texas and at the
13-20 office of the district not later than December 31st of each year.
13-21 The board of directors shall each year cause a budget to be
13-22 prepared showing the proposed expenditures and disbursements and
13-23 the estimated receipts and collections for the following fiscal
13-24 year and shall hold a public hearing on the proposed budget after
13-25 publication of a notice of hearing in a newspaper of general
13-26 circulation in the county at least once not less than ten (10) days
13-27 prior to the date set for the hearing. Any person who is a
14-1 taxpayer of the district shall have the right to appear at the time
14-2 and place designated in the notice and be heard with reference to
14-3 any item shown in the proposed budget. The proposed budget shall
14-4 also show the amount of taxes required to be levied and collected
14-5 during such fiscal year and upon final approval of the budget, the
14-6 board of directors shall levy such tax as may be required and
14-7 certify the tax rate for such year to the county tax assessor and
14-8 collector as provided in Section 5 hereof, and it shall be the duty
14-9 of the said tax assessor and collector to assess and collect such
14-10 tax.
14-11 Sec. 14A. The board of directors of the Ochiltree County
14-12 Hospital District shall seek reimbursement, in the manner provided
14-13 by Chapter 61, Health and Safety Code, from a county, municipality,
14-14 or public hospital located outside the boundaries of the district
14-15 for the district's care for or treatment of a sick, diseased, or
14-16 injured person for whom that county, municipality, or public
14-17 hospital has an obligation to provide care. The board of directors
14-18 shall seek reimbursement under Article 104.002, Code of Criminal
14-19 Procedure, for the district's care for or treatment of a person who
14-20 is not a resident of the district and who is confined in a county
14-21 jail facility.
14-22 SECTION 2. The importance of this legislation and the
14-23 crowded condition of the calendars in both houses create an
14-24 emergency and an imperative public necessity that the
14-25 constitutional rule requiring bills to be read on three several
14-26 days in each house be suspended, and this rule is hereby suspended,
14-27 and that this Act take effect and be in force from and after its
15-1 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1878 was passed by the House on April
11, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1878 was passed by the Senate on May
12, 1997, by the following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor