1-1 By: Chisum (Senate Sponsor - Bivins) H.B. No. 1878
1-2 (In the Senate - Received from the House April 14, 1997;
1-3 April 16, 1997, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 1, 1997, reported favorably by the
1-5 following vote: Yeas 11, Nays 0; May 1, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the Castro County and Ochiltree County hospital
1-9 districts.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Chapter 103, Acts of the 57th Legislature,
1-12 Regular Session, 1961, is amended by amending Sections 3, 4, 6, 8,
1-13 and 9 and by adding Sections 3A, 6A, 6B, 8B, and 14A to read as
1-14 follows:
1-15 Sec. 3. Within ten (10) days after such election is held the
1-16 Commissioners Court in such county shall convene and canvass the
1-17 returns of the election, and if a majority of the qualified
1-18 property taxpaying electors voting at said election voted in favor
1-19 of the proposition, the court shall so find and declare the
1-20 hospital district established and created and appoint five (5)
1-21 persons as directors of the hospital district to serve until the
1-22 first Saturday in April following the creation and establishment of
1-23 the district at which time five (5) directors shall be elected.
1-24 The three (3) directors receiving the highest vote at such first
1-25 election shall serve for two (2) years, the other two (2) directors
1-26 shall serve for one (1) year. Thereafter, all directors shall
1-27 serve for a period of two (2) years and until their successor has
1-28 been duly elected or appointed and qualified. No person shall be
1-29 appointed or elected as a member of the board of directors of said
1-30 hospital district unless he is a resident thereof and owns land
1-31 subject to taxation therein and unless at the time of such election
1-32 or appointment he shall be more than twenty-one (21) years of age.
1-33 A person may not be elected or appointed as a member of the board
1-34 of directors of the Castro County Hospital District unless the
1-35 person is a resident of the district and is at the time of election
1-36 or appointment at least 21 years of age. An employee or a medical
1-37 staff member of the Ochiltree County Hospital District may not
1-38 serve as a director of that district. Each member of the board of
1-39 directors shall qualify by executing the constitutional oath of
1-40 office and shall execute a good and sufficient bond for One
1-41 Thousand Dollars ($1,000) payable to said district conditioned upon
1-42 the faithful performance of his duties, and such oaths and bonds
1-43 shall be deposited with the depository bank of the district for
1-44 safekeeping. The Ochiltree County Hospital District may purchase
1-45 directors' bonds with district funds.
1-46 The board of directors shall organize by electing one (1) of
1-47 their number as president and one (1) of their number as secretary.
1-48 Any three (3) members of the board of directors shall constitute a
1-49 quorum and a concurrence of three (3) shall be sufficient in all
1-50 matters pertaining to the business of the district. All vacancies
1-51 in the office of director shall be filled for the unexpired term by
1-52 appointment of the remainder of the board of directors. In the
1-53 event the number of directors shall be reduced to less than three
1-54 (3) for any reason, the remaining directors shall immediately call
1-55 a special election to fill said vacancies, and upon failure to do
1-56 so a district court may, upon application of any voter or taxpayer
1-57 of the district, issue a mandate requiring that such election be
1-58 ordered by the remaining directors.
1-59 A regular election of directors shall be held on the first
1-60 Saturday in May [April] of each year and notice of such election
1-61 shall be published in a newspaper of general circulation in the
1-62 county one (1) time at least ten (10) days prior to the date of
1-63 election. A person who wishes to have the person's name printed on
1-64 the ballot as a candidate for director of the Castro County
2-1 Hospital District must file an application with the secretary of
2-2 the board of the Castro County Hospital District not later than the
2-3 45th day before the date of the election. Any person desiring his
2-4 name to be printed on the ballot as a candidate for director of the
2-5 Ochiltree County Hospital District shall file a petition, signed by
2-6 not less than twenty-five (25) qualified voters asking that such
2-7 name be printed on the ballot, with the secretary of the board of
2-8 directors of the district[. Such petition shall be filed with such
2-9 secretary] at least twenty-five (25) days prior to the date of
2-10 election.
2-11 Sec. 3A. (a) This section applies only to the Ochiltree
2-12 County Hospital District.
2-13 (b) In a general or special election of directors, a
2-14 write-in vote may not be counted unless the name written in appears
2-15 on the list of write-in candidates.
2-16 (c) To be entitled to a place on the list of write-in
2-17 candidates, a candidate must make a declaration of write-in
2-18 candidacy.
2-19 (d) A declaration of write-in candidacy must be filed with
2-20 the secretary of the board of directors not later than 5 p.m. of
2-21 the 25th day before election day. However, if a candidate whose
2-22 name is to appear on the ballot dies or is declared ineligible
2-23 after the 28th day before election day, a declaration of write-in
2-24 candidacy for the office sought by the deceased or ineligible
2-25 candidate may be filed not later than 5 p.m. of the 22nd day before
2-26 election day.
2-27 (e) Subchapter C, Chapter 2, Election Code, applies to the
2-28 election of unopposed candidates for the board of directors.
2-29 Sec. 4. The management and control of each hospital district
2-30 created pursuant to the provisions of this Act is hereby vested in
2-31 the board of directors of the district who shall serve without
2-32 compensation but may be reimbursed for actual expenses incurred in
2-33 the performance of their official duties upon the approval of such
2-34 expenses by the entire board of directors. The board of directors
2-35 of the Ochiltree County Hospital District may defend or indemnify
2-36 an officer, director, board appointee, medical staff member, or
2-37 employee of the district against or for liability, claims, or
2-38 expenses that arise from the performance of a duty in the person's
2-39 respective capacity as an officer, director, board appointee,
2-40 medical staff member, or employee of the district. The board of
2-41 directors may purchase liability insurance coverage or establish a
2-42 self-insurance program to fund indemnification under this section.
2-43 Sec. 6. The board of directors shall have the power and
2-44 authority to issue and sell as the obligations of such hospital
2-45 district, and in the name and upon the faith and credit of such
2-46 hospital district, bonds for the purchase, construction,
2-47 acquisition, repair or renovation of buildings and improvements and
2-48 equipping the same for hospital purposes and for any or all of such
2-49 purposes; provided, that a sufficient tax shall be levied to create
2-50 an interest and sinking fund to pay the interest and principal as
2-51 same matures provided said tax together with any other taxes levied
2-52 for said district shall not exceed Seventy-five Cents (75 ) on each
2-53 $100 valuation of taxable property in any one year. The Ochiltree
2-54 County Hospital District may also issue and sell bonds for health
2-55 care purposes subject to the requirements of this section. Such
2-56 bonds shall be executed in the name of the hospital district and on
2-57 its behalf by the president of the board of directors, and
2-58 countersigned by the secretary of the board of directors, and shall
2-59 be subject to the same requirements in the matter of approval
2-60 thereof by the Attorney General of the State of Texas and the
2-61 registration thereof by the Comptroller of Public Accounts of the
2-62 State of Texas as are by law provided for such approval and
2-63 registration of bonds of such county. Upon the approval of such
2-64 bonds by the Attorney General of Texas the same shall be
2-65 incontestable for any cause. Except as provided by Section 6A, no
2-66 [No] bonds shall be issued by such hospital district (except
2-67 refunding bonds) until authorized by a majority vote of the legally
2-68 qualified property taxpaying electors, residing in such hospital
2-69 district, voting at an election called and held for such purpose.
3-1 Such election may be called by the board of directors of its own
3-2 motion, shall specify the place or places where the election shall
3-3 be held, the presiding officers thereof, the purpose for which the
3-4 bonds are to be issued, the amount thereof, maximum interest rate
3-5 (not to exceed six (6%) per cent per annum) and the maximum
3-6 maturity date of such bonds (not to exceed forty (40) years from
3-7 their date of issuance). Notice of election shall be given by
3-8 publishing a substantial copy of the order calling the election in
3-9 a newspaper of general circulation in such county once a week for
3-10 two (2) consecutive weeks prior to the date of election, the date
3-11 of the first publication being at least fourteen (14) full days
3-12 prior to the date set for the election. The costs of such election
3-13 shall be paid by the hospital district.
3-14 In the manner hereinabove provided, the bonds of such
3-15 hospital district may, without the necessity of any election
3-16 therefor, be issued for the purpose of refunding and paying off any
3-17 bonded indebtedness theretofore assumed by such hospital district
3-18 and any bonds therefore issued by such hospital district; such
3-19 refunding bonds may be sold and the proceeds thereof applied to the
3-20 payment of any such outstanding bonds or may be exchanged in whole
3-21 or in part for not less than a like amount of said outstanding
3-22 bonds and interest matured thereon, but unpaid; provided the
3-23 average interest cost per annum on the refunding bonds, computed in
3-24 accordance with recognized standard bond interest cost tables,
3-25 shall not exceed the average interest cost per annum so computed,
3-26 upon the bonds to be discharged out of the proceeds of the
3-27 refunding bonds, unless the total interest cost on the refunding
3-28 bonds, computed to their respective maturity dates, is less than
3-29 the total interest cost so computed on the bonds to be discharged
3-30 out of such proceeds. In the foregoing computations, any premium
3-31 or premiums required to be paid upon the bonds to be refunded as a
3-32 condition to payment in advance of their stated maturity dates
3-33 shall be taken into account as an addition to the net interest cost
3-34 to the hospital district of the refunding bonds.
3-35 If the county in which the district is located or any city
3-36 within such county has voted bonds to provide hospital facilities;
3-37 but such bonds have not been sold and delivered at the date of the
3-38 creation of the hospital district, the authority for such bonds
3-39 shall be canceled and they shall not be sold.
3-40 Sec. 6A. (a) In selling and reissuing bonds, and in making
3-41 payments of outstanding indebtedness, the Ochiltree County Hospital
3-42 District shall comply with Chapter 503, Acts of the 54th
3-43 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
3-44 Civil Statutes), and Chapter 784, Acts of the 61st Legislature,
3-45 Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
3-46 Statutes). The interest rate for district bonds may not exceed the
3-47 maximum rate allowed under Chapter 3, Acts of the 61st Legislature,
3-48 Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
3-49 Statutes).
3-50 (b) The board of directors of the Ochiltree County Hospital
3-51 District may issue revenue bonds to purchase, construct, acquire,
3-52 repair, equip, or renovate buildings or improvements for or to
3-53 acquire sites for hospital or health care purposes. The board of
3-54 directors may also issue bonds to refund any previously issued
3-55 bonds for the same purposes. The bonds must be payable from and
3-56 secured by a pledge of all or any part of the district's revenues
3-57 from the operation of the district's facilities. The bonds may
3-58 also be secured by a mortgage or deed of trust lien on all or any
3-59 part of its property. The district shall issue the bonds in
3-60 accordance with the procedures and requirements for the issuance of
3-61 revenue bonds by county hospital authorities specified by Sections
3-62 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health
3-63 and Safety Code.
3-64 (c) Because the district is a public entity performing an
3-65 essential public function, bonds issued by the district,
3-66 transactions relating to the bonds, and profits made in the sale of
3-67 the bonds are free from taxation by the state or any city, county,
3-68 special district, or other political subdivision of the state.
3-69 Sec. 6B. The board of directors of the Ochiltree County
4-1 Hospital District may borrow money for district purposes on the
4-2 credit of the district or secured by revenues of the district.
4-3 Sec. 8. (a) The board of directors of such district shall
4-4 have the power to prescribe the method and manner of making
4-5 purchases and expenditures by and for such hospital district, and
4-6 also shall prescribe all accounting and control procedures; the
4-7 method of purchasing necessary supplies, materials and equipment;
4-8 and shall have the power to adopt a seal for such district; and may
4-9 employ a general manager, attorney, bookkeeper and architect.
4-10 (b) The board of directors of the Ochiltree County Hospital
4-11 District may appoint a qualified person as administrator of the
4-12 district. The administrator serves at the will of the board of
4-13 directors and receives compensation as determined by the board of
4-14 directors. The administrator shall supervise the work and
4-15 activities of the district and direct the general affairs of the
4-16 district subject to the limitations prescribed by the board of
4-17 directors.
4-18 (c) The board of directors of the Ochiltree County Hospital
4-19 District may employ technicians, nurses, fiscal agents,
4-20 accountants, and other necessary employees. The board of directors
4-21 may delegate to the administrator the authority to employ these
4-22 persons for the district.
4-23 (d) The board of directors of the Ochiltree County Hospital
4-24 District may appoint doctors to the medical staff or remove doctors
4-25 from the medical staff as necessary for the efficient operation of
4-26 the district. This authority includes the authority to make
4-27 temporary appointments. The board of directors may adopt policies
4-28 relating to the appointment and removal of medical staff members.
4-29 (e) All books, records, accounts, notices and minutes and
4-30 all other matters of the district and the operation of its
4-31 facilities shall, except as herein provided, be maintained at the
4-32 office of the district and there be open to public inspection at
4-33 all reasonable hours.
4-34 (f) The board of directors is specifically empowered to
4-35 adopt rules and regulations governing the operation of such
4-36 district and its facilities which rules and regulations shall
4-37 supplement but shall not contravene any of the provisions of this
4-38 Act. Such rules and regulations may, upon approval of the board of
4-39 directors, be published in booklet or pamphlet form at the expense
4-40 of the district and may be made available to any taxpayer upon
4-41 request.
4-42 Sec. 8B. (a) This section applies only to the Ochiltree
4-43 County Hospital District.
4-44 (b) The board of directors shall determine the type, number,
4-45 and location of facilities required to establish and maintain an
4-46 adequate hospital system and the type of equipment necessary for
4-47 hospital care. The hospital system may include facilities and
4-48 equipment to provide for domiciliary care and treatment of sick,
4-49 injured, or geriatric patients, outpatient clinics, rural health
4-50 clinics, convalescent home facilities, assisted living or personal
4-51 care facilities, physician's offices, home health care services,
4-52 durable medical equipment, long-term care, skilled nursing care,
4-53 intermediate nursing care, hospice care, community mental health
4-54 centers, alcohol or chemical dependency centers, or any other
4-55 facility or equipment the board considers necessary for hospital
4-56 purposes. The district may also operate or assist in the operation
4-57 of a mobile emergency medical service as part of the hospital
4-58 system.
4-59 (c) The board of directors may acquire by lease, purchase,
4-60 or lease to purchase or may construct, repair, or renovate
4-61 property, facilities, or equipment for use in the district hospital
4-62 system and may mortgage or pledge the property, facilities, or
4-63 equipment acquired as security for the payment of the purchase
4-64 price.
4-65 (d) The board of directors may lease hospital facilities on
4-66 behalf of the district.
4-67 (e) The district may operate any facilities covered by this
4-68 section or may enter into a contract with any person to manage or
4-69 operate any of those facilities.
5-1 (f) The board of directors may lease or sell all or part of
5-2 the district's property, facilities, or equipment to any public or
5-3 private entity or otherwise dispose of property, facilities, or
5-4 equipment of the district.
5-5 (g) The district, subject to the approval of the board of
5-6 directors, may provide primary care, emergency services,
5-7 preventative medical services, and other health related services
5-8 outside the district, provided that the services serve the purpose
5-9 of the district as established by this Act.
5-10 (h) The board of directors may contract with a political
5-11 subdivision or governmental agency to provide investigatory or
5-12 other services related to facilities for the medical care,
5-13 hospital, or welfare needs of the inhabitants of the district and
5-14 may contract with a hospital, hospital authority, hospital
5-15 district, emergency services district, county, municipality, or
5-16 other political subdivision of this state that is located outside
5-17 its boundaries to be reimbursed for the care and treatment of the
5-18 sick, diseased, or injured persons of that entity. The board of
5-19 directors may also contract with the state or agencies of the
5-20 federal government to be reimbursed for the treatment of sick,
5-21 diseased, or injured persons.
5-22 (i) The district may contract with, affiliate with, or enter
5-23 into another arrangement with a managed care system, a preferred
5-24 provider organization, a health maintenance organization, another
5-25 provider of alternative health care or delivery system, or a
5-26 private hospital to jointly administer or deliver health care
5-27 services. The district may spend district funds to establish and
5-28 maintain partnerships, corporations, or other entities involved in
5-29 the delivery of health care services.
5-30 (j) The district may sponsor and create a nonstock
5-31 corporation under the Texas Non-Profit Corporation Act (Article
5-32 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
5-33 contribute funds to or solicit funds for the corporation. The
5-34 corporation may use funds, other than funds paid by the corporation
5-35 to the district, only to provide health care or other services the
5-36 district may provide under this Act. The board of directors of the
5-37 hospital district shall establish adequate controls to ensure that
5-38 the corporation uses its funds as required by this subsection. The
5-39 corporation may invest corporation funds in any manner in which the
5-40 district may invest funds, including investing funds as authorized
5-41 by Chapter 2256, Government Code.
5-42 (k) The board of directors may spend district funds, enter
5-43 into agreements, and take other necessary action to recruit
5-44 physicians and other persons to serve as medical staff members or
5-45 employees of the district, including:
5-46 (1) advertising and marketing;
5-47 (2) paying travel, recruitment, and relocation
5-48 expenses;
5-49 (3) providing a loan or scholarship to a physician or
5-50 a person currently enrolled in health care education courses at an
5-51 institution of higher education who contractually agrees to become
5-52 a district employee or medical staff member; and
5-53 (4) providing office space without the payment of rent
5-54 for the space or otherwise subsidizing office space or other
5-55 facilities for a health care professional, including a physician.
5-56 (l) The board of directors may spend district funds, enter
5-57 into agreements, and take other necessary action to conduct,
5-58 participate in, or otherwise assist in providing health care
5-59 educational programs for current or prospective medical staff
5-60 members or employees of the district.
5-61 (m) The board of directors may provide retirement benefits
5-62 for employees of the district by establishing or administering a
5-63 retirement program or by participating in the Texas County and
5-64 District Retirement System or in another statewide retirement
5-65 system in which the district is eligible to participate.
5-66 Sec. 9. The fiscal year of the Ochiltree County Hospital
5-67 District [hospital districts] authorized to be established by the
5-68 provisions hereof shall commence on October 1 of each year and end
5-69 on the 30th day of September of the following year. The Castro
6-1 County Hospital District shall operate on the fiscal year
6-2 established by the board of directors of that district. The
6-3 district directors shall cause an annual independent audit to be
6-4 made of the books and records of the district, such audit to be
6-5 made covering such fiscal year, and the same shall be filed with
6-6 the Comptroller of Public Accounts of the State of Texas and at the
6-7 office of the district not later than December 31st of each year.
6-8 The board of directors shall each year cause a budget to be
6-9 prepared showing the proposed expenditures and disbursements and
6-10 the estimated receipts and collections for the following fiscal
6-11 year and shall hold a public hearing on the proposed budget after
6-12 publication of a notice of hearing in a newspaper of general
6-13 circulation in the county at least once not less than ten (10) days
6-14 prior to the date set for the hearing. Any person who is a
6-15 taxpayer of the district shall have the right to appear at the time
6-16 and place designated in the notice and be heard with reference to
6-17 any item shown in the proposed budget. The proposed budget shall
6-18 also show the amount of taxes required to be levied and collected
6-19 during such fiscal year and upon final approval of the budget, the
6-20 board of directors shall levy such tax as may be required and
6-21 certify the tax rate for such year to the county tax assessor and
6-22 collector as provided in Section 5 hereof, and it shall be the duty
6-23 of the said tax assessor and collector to assess and collect such
6-24 tax.
6-25 Sec. 14A. The board of directors of the Ochiltree County
6-26 Hospital District shall seek reimbursement, in the manner provided
6-27 by Chapter 61, Health and Safety Code, from a county, municipality,
6-28 or public hospital located outside the boundaries of the district
6-29 for the district's care for or treatment of a sick, diseased, or
6-30 injured person for whom that county, municipality, or public
6-31 hospital has an obligation to provide care. The board of directors
6-32 shall seek reimbursement under Article 104.002, Code of Criminal
6-33 Procedure, for the district's care for or treatment of a person who
6-34 is not a resident of the district and who is confined in a county
6-35 jail facility.
6-36 SECTION 2. The importance of this legislation and the
6-37 crowded condition of the calendars in both houses create an
6-38 emergency and an imperative public necessity that the
6-39 constitutional rule requiring bills to be read on three several
6-40 days in each house be suspended, and this rule is hereby suspended,
6-41 and that this Act take effect and be in force from and after its
6-42 passage, and it is so enacted.
6-43 * * * * *