By Chisum                                       H.B. No. 1878

      75R4789 SAW-F                           

                                A BILL TO BE ENTITLED

 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, 8A, 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 or Hansford County Hospital District shall file a

3-13     petition, signed by not less than twenty-five (25) qualified voters

3-14     asking that such name be printed on the ballot, with the secretary

3-15     of the board of directors of the respective district[.  Such

3-16     petition shall be filed with such secretary] at least twenty-five

3-17     (25) days prior to the date of 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 45th 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 48th 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 42nd day before

 4-6     election day.

 4-7           (e)  Subchapter B, Chapter 146, Election Code, applies to

 4-8     write-in voting in an election of directors except to the extent of

 4-9     a conflict with this section.

4-10           (f)  Subchapter C, Chapter 2, Election Code, applies to the

4-11     election of unopposed candidates for the board of directors.

4-12           Sec. 4.  The management and control of each hospital district

4-13     created pursuant to the provisions of this Act is hereby vested in

4-14     the board of directors of the district who shall serve without

4-15     compensation but may be reimbursed for actual expenses incurred in

4-16     the performance of their official duties upon the approval of such

4-17     expenses by the entire board of directors.  The board of directors

4-18     of the Ochiltree County Hospital District may defend or indemnify

4-19     an officer, director, board appointee, medical staff member, or

4-20     employee of the district against or for liability, claims, or

4-21     expenses that arise from the performance of a duty in the person's

4-22     respective capacity as an officer, director, board appointee,

4-23     medical staff member, or employee of the district.  The board of

4-24     directors may purchase liability insurance coverage or establish a

4-25     self-insurance program to fund indemnification under this section.

4-26           Sec. 6.  The board of directors shall have the power and

4-27     authority to issue and sell as the obligations of such hospital

 5-1     district, and in the name and upon the faith and credit of such

 5-2     hospital district, bonds for the purchase, construction,

 5-3     acquisition, repair or renovation of buildings and improvements and

 5-4     equipping the same for hospital purposes and for any or all of such

 5-5     purposes; provided, that a sufficient tax shall be levied to create

 5-6     an interest and sinking fund to pay the interest and principal as

 5-7     same matures provided said tax together with any other taxes levied

 5-8     for said district shall not exceed Seventy-five Cents (75 ) on each

 5-9     $100 valuation of taxable property in any one year.  The Ochiltree

5-10     County Hospital District may also issue and sell bonds for health

5-11     care purposes subject to the requirements of this section.  Such

5-12     bonds shall be executed in the name of the hospital district and on

5-13     its behalf by the president of the board of directors, and

5-14     countersigned by the secretary of the board of directors, and shall

5-15     be subject to the same requirements in the matter of approval

5-16     thereof by the Attorney General of the State of Texas and the

5-17     registration thereof by the Comptroller of Public Accounts of the

5-18     State of Texas as are by law provided for such approval and

5-19     registration of bonds of such county.  Upon the approval of such

5-20     bonds by the Attorney General of Texas the same shall be

5-21     incontestable for any cause.  Except as provided by Section 6A, no

5-22     [No] bonds shall be issued by such hospital district (except

5-23     refunding bonds) until authorized by a majority vote of the legally

5-24     qualified property taxpaying electors, residing in such hospital

5-25     district, voting at an election called and held for such purpose.

5-26     Such election may be called by the board of directors of its own

5-27     motion, shall specify the place or places where the election shall

 6-1     be held, the presiding officers thereof, the purpose for which the

 6-2     bonds are to be issued, the amount thereof, maximum interest rate

 6-3     (not to exceed six (6%) per cent per annum) and the maximum

 6-4     maturity date of such bonds (not to exceed forty (40) years from

 6-5     their date of issuance).  Notice of election shall be given by

 6-6     publishing a substantial copy of the order calling the election in

 6-7     a newspaper of general circulation in such county once a week for

 6-8     two (2) consecutive weeks prior to the date of election, the date

 6-9     of the first publication being at least fourteen (14) full days

6-10     prior to the date set for the election.  The costs of such election

6-11     shall be paid by the hospital district.

6-12           In the manner hereinabove provided, the bonds of such

6-13     hospital district may, without the necessity of any election

6-14     therefor, be issued for the purpose of refunding and paying off any

6-15     bonded indebtedness theretofore assumed by such hospital district

6-16     and any bonds therefore issued by such hospital district; such

6-17     refunding bonds may be sold and the proceeds thereof applied to the

6-18     payment of any such outstanding bonds or may be exchanged in whole

6-19     or in part for not less than a like amount of said outstanding

6-20     bonds and interest matured thereon, but unpaid; provided the

6-21     average interest cost per annum on the refunding bonds, computed in

6-22     accordance with recognized standard bond interest cost tables,

6-23     shall not exceed the average interest  cost per annum so computed,

6-24     upon the bonds to be discharged out of the proceeds of the

6-25     refunding bonds, unless the total interest cost on the refunding

6-26     bonds, computed to their respective maturity dates, is less than

6-27     the total interest cost so computed on the bonds to be discharged

 7-1     out of such proceeds.  In the foregoing computations, any premium

 7-2     or premiums required to be paid upon the bonds to be refunded as a

 7-3     condition to payment in advance of their stated maturity dates

 7-4     shall be taken into account as an addition to the net interest cost

 7-5     to the hospital district of the refunding bonds.

 7-6           If the county in which the district is located or any city

 7-7     within such county has voted bonds to provide hospital facilities;

 7-8     but such bonds have not been sold and delivered at the date of the

 7-9     creation of the hospital district, the authority for such bonds

7-10     shall be canceled and they shall not be sold.

7-11           Sec. 6A.  (a)  In selling and reissuing bonds, and in making

7-12     payments of outstanding indebtedness, the Ochiltree County Hospital

7-13     District shall comply with Chapter 503, Acts of the 54th

7-14     Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas

7-15     Civil Statutes), and Chapter 784, Acts of the 61st Legislature,

7-16     Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil

7-17     Statutes).  The interest rate for district bonds may not exceed the

7-18     maximum rate allowed under Chapter 3, Acts of the 61st Legislature,

7-19     Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil

7-20     Statutes).

7-21           (b)  The board of directors of the Ochiltree County Hospital

7-22     District may issue revenue bonds to purchase, construct, acquire,

7-23     repair, equip, or renovate buildings or improvements for or to

7-24     acquire sites for hospital or health care purposes.  The board of

7-25     directors may also issue bonds to refund any previously issued

7-26     bonds for the same purposes.  The bonds must be payable from and

7-27     secured by a pledge of all or any part of the district's revenues

 8-1     from the operation of the district's facilities.  The bonds may

 8-2     also be secured by a mortgage or deed of trust lien on all or any

 8-3     part of its property.  The district shall issue the bonds in

 8-4     accordance with the procedures and requirements for the issuance of

 8-5     revenue bonds by county hospital authorities specified by Sections

 8-6     264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health

 8-7     and Safety Code.

 8-8           (c)  Because the district is a public entity performing an

 8-9     essential public function, bonds issued by the district,

8-10     transactions relating to the bonds, and profits made in the sale of

8-11     the bonds are free from taxation by the state or any city, county,

8-12     special district, or other political subdivision of the state.

8-13           Sec. 6B.  The board of directors of the Ochiltree County

8-14     Hospital District may borrow money to pay the district's operating

8-15     expenses in an amount not to exceed the amount of tax or other

8-16     revenues that the district expects to receive during the 12-month

8-17     period following the date on which the money is borrowed.  The

8-18     board of directors may pledge all or part of those taxes or other

8-19     revenues for the repayment of the amount borrowed.

8-20           Sec. 8.  (a)  The board of directors of such district shall

8-21     have the power to prescribe the method and manner of making

8-22     purchases and expenditures by and for such hospital district, and

8-23     also shall prescribe all accounting and control procedures; the

8-24     method of purchasing necessary supplies, materials and equipment;

8-25     and shall have the power to adopt a seal for such district; and may

8-26     employ a general manager, attorney, bookkeeper and architect.

8-27           (b)  The board of directors of the Ochiltree County Hospital

 9-1     District may appoint a qualified person as administrator of the

 9-2     district.  The administrator serves at the will of the board of

 9-3     directors and receives compensation as determined by the board of

 9-4     directors.  The administrator shall supervise the work and

 9-5     activities of the district and direct the general affairs of the

 9-6     district subject to the limitations prescribed by the board of

 9-7     directors.

 9-8           (c)  The board of directors of the Ochiltree County Hospital

 9-9     District may employ technicians, nurses, fiscal agents,

9-10     accountants, and other necessary employees.  The board of directors

9-11     may delegate to the administrator the authority to employ these

9-12     persons for the district.

9-13           (d)  The board of directors of the Ochiltree County Hospital

9-14     District may appoint doctors to the medical staff or remove doctors

9-15     from the medical staff as necessary for the efficient operation of

9-16     the district.  This authority includes the authority to make

9-17     temporary appointments.  The board of directors may adopt policies

9-18     relating to the appointment and removal of medical staff members.

9-19           (e)  All books, records, accounts, notices and minutes and

9-20     all other matters of the district and the operation of its

9-21     facilities shall, except as herein provided, be maintained at the

9-22     office of the district and there be open to public inspection at

9-23     all reasonable hours.

9-24           (f)  The board of directors is specifically empowered to

9-25     adopt rules and regulations governing the operation of such

9-26     district and its facilities which rules and regulations shall

9-27     supplement but shall not contravene any of the provisions of this

 10-1    Act.  Such rules and regulations may, upon approval of the board of

 10-2    directors, be published in booklet or pamphlet form at the expense

 10-3    of the district and may be made available to any taxpayer upon

 10-4    request.

 10-5          Sec. 8A.  (a)  This section applies only to the Ochiltree

 10-6    County Hospital District.

 10-7          (b)  The board of directors shall determine the type, number,

 10-8    and location of facilities required to establish and maintain an

 10-9    adequate hospital system and the type of equipment necessary for

10-10    hospital care.  The hospital system may include facilities and

10-11    equipment to provide for domiciliary care and treatment of sick,

10-12    injured, or geriatric patients, outpatient clinics, rural health

10-13    clinics, convalescent home facilities, assisted living or personal

10-14    care facilities, physician's offices, home health care services,

10-15    durable medical equipment, long-term care, skilled nursing care,

10-16    intermediate nursing care, hospice care, community mental health

10-17    centers, alcohol or chemical dependency centers, or any other

10-18    facility or equipment the board considers necessary for hospital

10-19    purposes.  The district may also operate or assist in the operation

10-20    of a mobile emergency medical service as part of the hospital

10-21    system.

10-22          (c)  The board of directors may acquire by lease, purchase,

10-23    or lease to purchase or may construct, repair, or renovate

10-24    property, facilities, or equipment for use in the district hospital

10-25    system and may mortgage or pledge the property, facilities, or

10-26    equipment acquired as security for the payment of the purchase

10-27    price.

 11-1          (d)  The board of directors may lease hospital facilities on

 11-2    behalf of the district.

 11-3          (e)  The district may operate any facilities covered by this

 11-4    section or may enter into a contract with any person to manage or

 11-5    operate any of those facilities.

 11-6          (f)  The board of directors may lease or sell all or part of

 11-7    the district's property, facilities, or equipment to any public or

 11-8    private entity or otherwise dispose of property, facilities, or

 11-9    equipment of the district.

11-10          (g)  The district, subject to the approval of the board of

11-11    directors, may provide primary care, emergency services,

11-12    preventative medical services, and other health related services

11-13    outside the district, provided that the services serve the purpose

11-14    of the district as established by this Act.

11-15          (h)  The board of directors may contract with a political

11-16    subdivision or governmental agency to provide investigatory or

11-17    other services related to facilities for the medical care,

11-18    hospital, or welfare needs of the inhabitants of the district and

11-19    may contract with a hospital, hospital authority, hospital

11-20    district, emergency services district, county, municipality, or

11-21    other political subdivision of this state that is located outside

11-22    its boundaries to be reimbursed for the care and treatment of the

11-23    sick, diseased, or injured persons of that entity.  The board of

11-24    directors may also contract with the state or agencies of the

11-25    federal government to be reimbursed for the treatment of sick,

11-26    diseased, or injured persons.

11-27          (i)  The district may contract with, affiliate with, or enter

 12-1    into another arrangement with a managed care system, a preferred

 12-2    provider organization, a health maintenance organization, another

 12-3    provider of alternative health care or delivery system, or a

 12-4    private hospital to jointly administer or deliver health care

 12-5    services.  The district may spend district funds to establish and

 12-6    maintain partnerships, corporations, or other entities involved in

 12-7    the delivery of health care services.

 12-8          (j)  The district may sponsor and create a nonstock

 12-9    corporation under the Texas Non-Profit Corporation Act (Article

12-10    1396-1.01 et seq., Vernon's Texas Civil Statutes) and may

12-11    contribute funds to or solicit funds for the corporation.  The

12-12    corporation may use funds, other than funds paid by the corporation

12-13    to the district, only to provide health care or other services the

12-14    district may provide under this Act.  The board of directors of the

12-15    hospital district shall establish adequate controls to ensure that

12-16    the corporation uses its funds as required by this subsection.  The

12-17    corporation may invest corporation funds in any manner in which the

12-18    district may invest funds, including investing funds as authorized

12-19    by Chapter 2256, Government Code.

12-20          (k)  The board of directors may spend district funds, enter

12-21    into agreements, and take other necessary action to recruit

12-22    physicians and other persons to serve as medical staff members or

12-23    employees of the district, including:

12-24                (1)  advertising and marketing;

12-25                (2)  paying travel, recruitment, and relocation

12-26    expenses;

12-27                (3)  providing a loan or scholarship to a physician or

 13-1    a person currently enrolled in health care education courses at an

 13-2    institution of higher education who contractually agrees to become

 13-3    a district employee or medical staff member; and

 13-4                (4)  providing office space without the payment of rent

 13-5    for the space or otherwise subsidizing office space or other

 13-6    facilities for a health care professional, including a physician.

 13-7          (l)  The board of directors may spend district funds, enter

 13-8    into agreements, and take other necessary action to conduct,

 13-9    participate in, or otherwise assist in providing health care

13-10    educational programs for current or prospective medical staff

13-11    members or employees of the district.

13-12          (m)  The board of directors may provide retirement benefits

13-13    for employees of the district by establishing or administering a

13-14    retirement program or by participating in the Texas County and

13-15    District Retirement System or in another statewide retirement

13-16    system in which the district is eligible to participate.

13-17          Sec. 9.   The fiscal year of the Ochiltree County and

13-18    Hansford County hospital districts authorized to be established by

13-19    the provisions hereof shall commence on October 1 of each year and

13-20    end on the 30th day of September of the following year.  The Castro

13-21    County Hospital District shall operate on the fiscal year

13-22    established by the board of directors of that district.  The

13-23    district directors shall cause an annual independent audit to be

13-24    made of the books and records of the district, such audit to be

13-25    made covering such fiscal year, and the same shall be filed with

13-26    the Comptroller of Public Accounts of the State of Texas and at the

13-27    office of the district not later than December 31st of each year.

 14-1          The board of directors shall each year cause a budget to be

 14-2    prepared showing the proposed expenditures and disbursements and

 14-3    the estimated receipts and collections for the following fiscal

 14-4    year and shall hold a public hearing on the proposed budget after

 14-5    publication of a notice of hearing in a newspaper of general

 14-6    circulation in the county at least once not less than ten (10) days

 14-7    prior to the date set for the hearing.  Any person who is a

 14-8    taxpayer of the district shall have the right to appear at the time

 14-9    and place designated  in the notice and be heard with reference to

14-10    any item shown in the proposed budget.  The proposed budget shall

14-11    also show the amount of taxes required to be levied and collected

14-12    during such fiscal year and upon final approval of the budget, the

14-13    board of directors shall levy such tax as may be required and

14-14    certify the tax rate for such year to the county tax assessor and

14-15    collector as provided in Section 5 hereof, and it shall be the duty

14-16    of the said tax assessor and collector to assess and collect such

14-17    tax.

14-18          Sec. 14A.  The board of directors of the Ochiltree County

14-19    Hospital District shall seek reimbursement, in the manner provided

14-20    by Chapter 61, Health and Safety Code, from a county, municipality,

14-21    or public hospital located outside the boundaries of the district

14-22    for the district's care for or treatment of a sick, diseased, or

14-23    injured person for whom that county, municipality, or public

14-24    hospital has an obligation to provide care.  The board of directors

14-25    shall seek reimbursement under Article 104.002, Code of Criminal

14-26    Procedure, for the district's care for or treatment of a person who

14-27    is not a resident of the district and who is confined in a county

 15-1    jail facility.

 15-2          SECTION 2.  The importance of this legislation and the

 15-3    crowded condition of the calendars in both houses create an

 15-4    emergency and an imperative public necessity that the

 15-5    constitutional rule requiring bills to be read on three several

 15-6    days in each house be suspended, and this rule is hereby suspended,

 15-7    and that this Act take effect and be in force from and after its

 15-8    passage, and it is so enacted.