By Hightower                                    H.B. No. 2294

      75R6302 SAW-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the operation of the Tyler County Hospital District.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Chapter 110, Acts of the 58th Legislature,

 1-5     Regular Session, 1963, is amended by amending Sections 2, 3, 4, 5,

 1-6     6, 7, 8, 9, 10, 11, 12, 15, and 17 and by adding Sections 21 and 22

 1-7     to read as follows:

 1-8           Sec. 2.  The District shall provide for the establishment,

 1-9     administration, maintenance, operation, and financing of a hospital

1-10     or hospital system within its boundaries and may provide any

1-11     services or facilities necessary for hospital or medical care,

1-12     including rural health clinics, outpatient clinics, nursing homes,

1-13     home health care agencies, extended care facilities, assisted

1-14     living or personal care facilities, retirement, housing, and

1-15     medical office buildings. The District [That said District hereby

1-16     provided for] shall assume full responsibility for providing

1-17     medical and hospital care for the needy residing within the

1-18     District; provided, however, that such Hospital District shall not

1-19     be created unless and until an election is duly held in the County

1-20     for such purpose, which said election may be initiated by the

1-21     Commissioners Court upon its own motion or upon a petition of fifty

1-22     (50) resident qualified [property taxpaying] voters, to be held not

1-23     less than thirty (30) days from the time said election is ordered

1-24     by the Commissioners Court.  At such election, there shall be

 2-1     submitted to the qualified property taxpaying voters the

 2-2     proposition of whether or not a Hospital District shall be created

 2-3     in the County; and a majority of the qualified property taxpaying

 2-4     electors participating in said  election voting in favor of the

 2-5     proposition shall be necessary.  The ballots for said election

 2-6     shall have printed thereon:

 2-7           "FOR the creation of a Hospital District; providing for the

 2-8     levy of a tax not to exceed seventy-five cents (75 ) on the One

 2-9     Hundred Dollar valuation; and providing for the assumption by such

2-10     District of all outstanding bonds heretofore issued by Tyler County

2-11     for hospital purposes"; and

2-12           "AGAINST the creation of a Hospital District; providing for

2-13     the levy of a tax not to exceed seventy-five cents (75 ) on the One

2-14     Hundred Dollar valuation; and providing for the assumption by such

2-15     District of all outstanding bonds heretofore issued by Tyler County

2-16     for hospital purposes."

2-17           Sec. 3.  The Commissioners Court of the County shall have the

2-18     power and authority, and it shall be its duty, to levy on all

2-19     property subject to hospital district taxation, for the benefit of

2-20     the District at the same time taxes are levied for county purposes,

2-21     using the county values and the county tax roll, a tax of not to

2-22     exceed seventy-five cents (75 ) on the One Hundred Dollar valuation

2-23     of all taxable property within the Hospital District, for the

2-24     purpose of (1) paying the interest on and creating a sinking fund

2-25     for bonds which may have been assumed or which may be issued by the

2-26     Hospital District for hospital purposes as herein provided;

2-27     (2)  providing for the operation and maintenance of the hospital or

 3-1     hospital system; and (3) when requested by the Board of Hospital

 3-2     Managers of the Hospital District and approved by the Commissioners

 3-3     Court, for the purpose of making further improvements and additions

 3-4     to the hospital system, and for the acquisition of necessary sites

 3-5     therefor, by purchase, lease or condemnation.

 3-6           [The tax so levied shall be collected on all property subject

 3-7     to Hospital District taxation by the Assessor and Collector of

 3-8     Taxes for the County on the county tax values, and in the same

 3-9     manner and under the same conditions as county taxes.  The Assessor

3-10     and Collector of Taxes shall charge and deduct from payments to the

3-11     Hospital District the fees for assessing and collecting the tax at

3-12     the rate of not exceeding two per cent (2%) of the amounts

3-13     collected as may be determined by the Commissioners Court.  Such

3-14     fees shall be deposited in the County's General Fund, and shall be

3-15     reported as fees of office of the Tax Assessor and Collector.

3-16     Interest and penalties on taxes paid to the Hospital District shall

3-17     be the same as in the case of county taxes.  Discounts shall be the

3-18     same as for county taxes.  The residue of tax collections, after

3-19     deduction of discounts and fees for assessing and collecting, shall

3-20     be deposited in the District depository; and such funds shall be

3-21     withdrawn only as provided herein.  All other income of the

3-22     Hospital District shall be deposited in like manner with the

3-23     District depository.  Warrants against the Hospital District funds

3-24     shall not require the signature of the County Clerk.]

3-25           The Commissioners Court shall have the authority to levy the

3-26     tax aforesaid for the entire year in which the said Hospital

3-27     District is established, for the purpose of securing funds to

 4-1     initiate the operation of the Hospital District, and to pay assumed

 4-2     bonds.

 4-3           Before September 1 of each year, the Board shall publish

 4-4     notice of tax rates, give notice of and conduct a public hearing as

 4-5     required by Chapter 26, Tax Code, and enter an order levying taxes

 4-6     on all property in the District subject to District taxation.

 4-7           Sec. 4.  (a)  The Commissioners Court shall have the power

 4-8     and authority to issue and sell as the general obligations of such

 4-9     Hospital District, bonds for the purchase, construction,

4-10     acquisition, repair or renovation of buildings and  improvements

4-11     and equipping same, for the acquisition or operation of a mobile

4-12     emergency medical service, for hospital purposes, and for any or

4-13     all of such purposes; provided, that a sufficient tax shall be

4-14     levied to create an interest and sinking fund to pay the interest

4-15     and principal as the bonds mature [same matures] provided said tax

4-16     together with any other taxes levied for said District shall not

4-17     exceed seventy-five cents (75 ) in any one year.  Such bonds shall

4-18     be executed in the name of the Hospital District and on its behalf

4-19     by the County Judge of the County, and countersigned by the County

4-20     Clerk, and shall be subject to the same requirements in the matter

4-21     of approval thereof by the Attorney General of the State of Texas

4-22     and the registration thereof by the Comptroller of Public Accounts

4-23     of the State of Texas as are by law provided for such approval and

4-24     registration of bonds of such County; and the approval of such

4-25     bonds by the Attorney General shall have the same force and effect

4-26     as is by law given to the Attorney General's [his] approval of

4-27     bonds of the County.  No bonds shall be issued by such Hospital

 5-1     District (except refunding bonds) until authorized by a majority

 5-2     vote of the [legally] qualified [property taxpaying] voters

 5-3     residing in such Hospital District voting at an election called and

 5-4     held in accordance with the provisions of Chapter 1, Title 22, of

 5-5     the Revised Civil Statutes of the State of Texas, 1925, as amended,

 5-6     relating to county bonds.  Such election may be called by the

 5-7     Commissioners Court on its own motion, or shall be called by it

 5-8     after request therefor by the Board of Hospital Managers of the

 5-9     District; and the same persons shall be responsible for the conduct

5-10     of such election and arrangement of all details thereof as the

5-11     persons charged therewith in connection with other county-wide

5-12     elections.  The cost of any such election shall be a charge upon

5-13     the Hospital District and its funds; and the Hospital District

5-14     shall make provision for the payment thereof before the

5-15     Commissioners Court shall be required to order such an election.

5-16           (b)  The District may issue [In the manner hereinabove

5-17     provided, the] bonds [of such Hospital District may, without the

5-18     necessity of any election therefor, be issued] for the purpose of

5-19     refunding and paying off any bonded indebtedness theretofore

5-20     assumed by the Hospital District and any bonds theretofore issued

5-21     by the Hospital District.  In issuing the bonds, the District shall

5-22     comply with Chapter 784, Acts of the 61st Legislature, Regular

5-23     Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes).

5-24     The[; such] refunding bonds may be sold and the proceeds thereof

5-25     applied to the payment of any such outstanding bonds or may be

5-26     exchanged in whole or in part for not less than a similar [like]

5-27     amount of said outstanding indebtedness.  In selling the refunding

 6-1     bonds and applying the proceeds to the payment of outstanding

 6-2     indebtedness, the District shall comply with Chapter 503, Acts of

 6-3     the 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's

 6-4     Texas Civil Statutes).  [bonds and interest matured thereon, but

 6-5     unpaid; provided the average interest cost per annum on the

 6-6     refunding bonds, computed in accordance with the recognized

 6-7     standard bond interest cost tables, shall not exceed the average

 6-8     interest cost per annum so computed upon the bonds to be discharged

 6-9     out of the proceeds of the refunding bonds, unless the total

6-10     interest cost on the refunding bonds, computed to their respective

6-11     maturity dates, is less than the total interest cost so computed on

6-12     the bonds to be discharged out of such proceeds.  In the foregoing

6-13     computations, any premium or premiums required to be paid upon the

6-14     bonds to be refunded as a condition to payment in advance of their

6-15     stated maturity dates shall be taken into account as an addition to

6-16     the net interest cost to the Hospital District of the refunding

6-17     bonds.]

6-18           (c)  The District may issue revenue bonds to purchase,

6-19     construct, repair, renovate, and acquire buildings and improvements

6-20     and to equip buildings and improvements for the hospital and the

6-21     hospital system, to acquire sites for hospital purposes, and to

6-22     acquire and operate a mobile emergency medical service to assist

6-23     the District in carrying out its purposes.  The bonds must be

6-24     payable from and secured by a pledge of all or part of the revenues

6-25     derived from the operation of the District's hospital system. The

6-26     bonds may also be secured by a mortgage or deed of trust lien on

6-27     all or part of the District property.  The District shall issue

 7-1     revenue bonds in accordance with Sections 264.042, 264.043,

 7-2     264.046, 264.047, 264.048, and 264.049, Health and Safety Code.

 7-3           (d)  The President of the Board shall execute the bonds in

 7-4     the name of the District, and the Secretary of the Board shall

 7-5     countersign the bonds in the manner provided by the Texas Uniform

 7-6     Facsimile Signature of Public Officials Act (Article 717j-1,

 7-7     Vernon's Texas Civil Statutes).

 7-8           (e)  Because the District is a public entity performing an

 7-9     essential public function, bonds issued by the District, any

7-10     transaction relating to the bonds, and profits made in the sale of

7-11     the bonds are free from taxation by the state or by any

7-12     municipality, county, special district, or political subdivision of

7-13     the state.

7-14           (f)  The District may not impose taxes to pay the principal

7-15     of or interest on revenue bonds.  The Tax Code governs the

7-16     appraisal, assessment, and collection of District taxes.  The Board

7-17     may provide for the appointment of a tax assessor-collector for the

7-18     District or may contract for the assessment and collection of taxes

7-19     as provided by the Tax Code.

7-20           (g)  District bonds must mature not later than 40 years after

7-21     the date of their issuance and must bear interest at a rate not to

7-22     exceed that provided by Chapter 3, Acts of the 61st Legislature,

7-23     Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil

7-24     Statutes).

7-25           Sec. 5.  Any lands, buildings or equipment that may be owned

7-26     by the County, and by which medical services or hospital care,

7-27     including geriatric care, are furnished to the indigent or needy

 8-1     persons of the County, shall become the property of the Hospital

 8-2     District; and title thereto shall vest in the Hospital District;

 8-3     and any funds of the County which are the proceeds of any bonds

 8-4     assumed by the Hospital District, as hereby provided, shall become

 8-5     the funds of the Hospital District; and title thereto shall vest in

 8-6     the Hospital District; and there shall vest in the Hospital

 8-7     District and become the funds of the Hospital District the unspent

 8-8     portions of any funds theretofore set up or appropriated by budget

 8-9     or otherwise by the County for the support and maintenance of the

8-10     hospital facilities for the year within which the Hospital District

8-11     comes into existence, thereby providing such Hospital District with

8-12     funds with which to maintain and operate such facilities for the

8-13     remainder of such year.  All obligations under contract legally

8-14     incurred by the County for the building of, or the support and

8-15     maintenance of, hospital facilities, prior to the creation of the

8-16     said District but outstanding at the time of the creation of the

8-17     District, shall be assumed and discharged by it without prejudice

8-18     to the rights of third parties, provided that the management and

8-19     control of the property and affairs of the present hospital system

8-20     shall continue in the Board of Managers of the present hospital

8-21     system until appointment and organization of the Board of Hospital

8-22     Managers of the Hospital District, at which time the Board of

8-23     Managers of the present hospital system shall turn over all

8-24     records, property and affairs of said hospital system to the Board

8-25     of Hospital Managers of the Hospital District.

8-26           Any outstanding bonded indebtedness incurred by the County in

8-27     the acquisition of such lands, buildings and equipment, or in the

 9-1     construction and equipping of such hospital facilities, together

 9-2     with any other outstanding bonds issued by the County for hospital

 9-3     purposes, and the proceeds of which are in whole or in part still

 9-4     unspent, shall be assumed by the Hospital District and become the

 9-5     obligation of the Hospital District; and the County shall be by the

 9-6     Hospital District relieved of any further liability for the payment

 9-7     thereof, or for providing interest and sinking fund requirements

 9-8     thereon; provided that nothing herein contained shall limit or

 9-9     affect any of the rights of any of the holders of such bonds

9-10     against the payment of the principal or interest on any of such

9-11     bonds in accordance with their respective terms.

9-12           The Commissioners Court, as soon the Hospital District is

9-13     created and authorized at the election hereinabove provided, and

9-14     there have been appointed and qualified the Board of Hospital

9-15     Managers hereinafter provided for, shall execute and deliver to the

9-16     Hospital District, to wit:  to its said Board of Hospital Managers,

9-17     an instrument in writing conveying to said Hospital District the

9-18     hospital property, including lands, buildings and equipment; and

9-19     shall transfer to said Hospital District the funds hereinabove

9-20     provided to become vested in the Hospital District, upon being

9-21     furnished the certificate of the President [Chairman] of the Board

9-22     to the fact that a depository for the District's funds has been

9-23     selected and has qualified; which funds shall, in the hands of the

9-24     Hospital District and of its Board of Hospital Managers, be used

9-25     for all or any of the same purposes as, and for no other purposes

9-26     than, the purposes for which the County could lawfully have used

9-27     the same had they remained the property and funds of such County.

 10-1          Sec. 6.  (a)  The Commissioners Court shall appoint a Board

 10-2    of Hospital Managers, consisting of six (6) members, who shall

 10-3    serve for a term of two (2) years, with overlapping terms if

 10-4    desired, and with initial appointments to terms of office arranged

 10-5    accordingly, and provided that the County Judge of the County shall

 10-6    be an ex officio member of said Board of Hospital Managers.  To

 10-7    serve as a Hospital Manager, a person must be a resident and

 10-8    qualified voter of the District.  An employee of the District may

 10-9    not serve as a Hospital Manager.  Failure of any member of the

10-10    Board of Hospital Managers to attend three (3) consecutive regular

10-11    meetings of the Board shall cause a vacancy in his office, unless

10-12    such absence is excused by formal action of the Board. The

10-13    Commissioners Court shall fill a vacancy by appointment.  The Board

10-14    of Hospital Managers shall serve without compensation, but may be

10-15    reimbursed for their actual and necessary traveling and other

10-16    expenses incurred in the performance of their duties as determined

10-17    by the Board of Hospital Managers.   Expenses reimbursed under this

10-18    section must be reported in the District's minute book or other

10-19    District records.  The duties of the Board of Hospital Managers

10-20    shall be to manage, control and administer the hospital and [or]

10-21    hospital system and the business, funds, and resources of the

10-22    Hospital District.  The Board of Hospital Managers shall have the

10-23    power and authority to sue and be sued and to promulgate rules and

10-24    regulations for the operation of the hospital or hospital system.

10-25          (b)  The Board may [shall] appoint an Administrator, an

10-26    assistant administrator, and an attorney to serve at the will of

10-27    the Board and to [a general manager, to be known as the

 11-1    Administrator of the Hospital District.  The Administrator shall

 11-2    hold office for a term not exceeding two (2) years and shall]

 11-3    receive such compensation as may be fixed by the Board.   The Board

 11-4    may require that the Administrator [The Administrator shall be

 11-5    subject to removal at any time by the Board.  The Administrator

 11-6    shall],  before assuming the Administrator's [entering into the

 11-7    discharge of his] duties, execute a bond payable to the District,

 11-8    in an [the] amount set by the Board of not less than $5,000 [Ten

 11-9    Thousand Dollars ($10,000)], conditioned  on faithful performance

11-10    of [that he shall well and faithfully perform] the Administrator's

11-11    duties  [required of him], and containing such other conditions as

11-12    the Board may require.  The Administrator shall perform all duties

11-13    [which may be] required [of him] by the Board, and shall supervise

11-14    all of the work and activities of the District, and have general

11-15    direction of the affairs of the District, within such limitations

11-16    as may be prescribed by the Board.   The Administrator [He] shall

11-17    be a person qualified by training and experience for the position

11-18    of Administrator.

11-19          (c)  The Board of Hospital Managers shall have the authority

11-20    to appoint or remove doctors from the staff and to employ such

11-21    employees of every kind and character as may be deemed advisable

11-22    for the efficient operation of the hospital or hospital system[;

11-23    provided that no contract or term of employment shall exceed the

11-24    period of two (2) years].  The Board may delegate to the

11-25    Administrator the authority to hire employees.

11-26          (d)  The Board may spend District funds to recruit

11-27    physicians, nurses, and other trained medical personnel.  The Board

 12-1    may contract with full-time medical students or other health

 12-2    occupation students enrolled in good standing in accredited medical

 12-3    schools, colleges, or universities to pay the student's tuition or

 12-4    other costs of expenses in consideration for the student's

 12-5    agreement to serve as an employee or independent contractor of the

 12-6    District on terms described in the contract.  The Board may provide

 12-7    retirement benefits for employees of the District by establishing

 12-8    or administering a retirement program, or electing to participate

 12-9    in the Texas County and District Retirement System or in any

12-10    statewide retirement system in which the District is eligible to

12-11    participate.

12-12          (e)  The Board shall determine the type, number, and location

12-13    of buildings required to establish and maintain an adequate

12-14    hospital system and the type of equipment necessary for hospital

12-15    care.  The Board may acquire by purchase or lease property,

12-16    facilities, and equipment for the District to use in the hospital

12-17    system and may mortgage or pledge the property, facilities, or

12-18    equipment acquired as security for the payment of the purchase

12-19    price.  The Board may enter into operating or management contracts

12-20    relating to hospital facilities.  The Board may transfer by lease

12-21    to individuals, companies, corporations, or other legal entities or

12-22    acquire by lease District hospital facilities and may sell or

12-23    otherwise dispose of property, facilities, and equipment.

12-24          (f)  The Board may bring suit to enforce payment of taxes and

12-25    to foreclose liens to secure the payment of taxes due the District.

12-26          (g)  The Board of Hospital Managers, with the approval of the

12-27    Commissioners Court, shall be authorized to contract with any

 13-1    county for care and treatment of the county's sick, diseased and

 13-2    injured persons, and with the State and agencies of the Federal

 13-3    Government for the care and treatment of such persons for whom the

 13-4    State and such agencies of the Federal Government are responsible.

 13-5    The Board shall seek reimbursement, in the manner provided by

 13-6    Chapter 61, Health and Safety Code, from a County, municipality, or

 13-7    public hospital located outside the boundaries of the District for

 13-8    the District's care for or treatment of a sick, diseased, or

 13-9    injured person for whom that County, municipality, or public

13-10    hospital has an obligation to provide care.  The Board shall seek

13-11    reimbursement under Article 104.002, Code of Criminal Procedure,

13-12    for the District's care for or treatment of a person who is not a

13-13    resident of the District and who is confined in a County jail

13-14    facility.  [Further, under the same conditions, the Board of

13-15    Hospital Managers may enter into such contracts with the State and

13-16    Federal Government as may be necessary to establish or continue a

13-17    retirement program for the benefit of its employees.]

13-18          [The Board of Hospital Managers may in addition to retirement

13-19    programs authorized by this Act establish such other retirement

13-20    program for the benefit of its employees as it deems necessary and

13-21    advisable.]

13-22          (h)  A majority of the Board of Hospital Managers [present]

13-23    shall constitute a quorum for the transaction of any business.

13-24    From among its members, the Board shall elect [choose] a President

13-25    [Chairman], who shall preside, and a Vice President, who shall

13-26    preside in the President's absence.  The Board shall appoint a

13-27    Secretary, who does not need to be a Hospital Manager.  Each

 14-1    officer serves a one-year term.  The Board shall fill a vacancy in

 14-2    a Board office for the unexpired term[; or in his absence a

 14-3    Chairman pro tem shall preside; and the Administrator or any member

 14-4    of the Board may be appointed Secretary.  The Board shall require

 14-5    the Secretary to keep suitable records of all proceedings of each

 14-6    meeting of the Board.  Such records shall be read and signed after

 14-7    each meeting by the Chairman or the member presiding, and attested

 14-8    by the Secretary].  The Board shall have a seal, on which shall be

 14-9    engraved the name of the Hospital District; and said seal shall be

14-10    kept by the Secretary and used in authentication of all acts of the

14-11    Board.

14-12          Sec. 7.  The Board of Hospital Managers shall have the power

14-13    to prescribe the method and manner of making purchases and

14-14    expenditures by and for such Hospital District, and also shall be

14-15    authorized to prescribe all accounting and control procedures.  The

14-16    Board shall cause an annual audit to be made of the financial

14-17    condition [books and records] of the District as soon as

14-18    practicable after the close of each fiscal year, such audit to

14-19    cover such fiscal year, and to be made by an independent public

14-20    accountant.  The Hospital District shall pay all salaries and

14-21    expenses necessarily incurred by the Board or any of its officers

14-22    and agents in performing any duties which may be prescribed or

14-23    required under this Section.  It shall be the duty of any officer,

14-24    employee or agent of the Board to perform and carry out any

14-25    function or service prescribed by the Board hereunder.

14-26          Sec. 8.  The District shall operate on a fiscal year

14-27    established by the Board.  The Board may not change the fiscal year

 15-1    when revenue bonds are outstanding or more than once in a 24-month

 15-2    period [In the event of incapacity, absence or inability of the

 15-3    Administrator to discharge any of the duties required of him, the

 15-4    Board may designate an assistant to the Administrator to discharge

 15-5    any duties or functions required of the Administrator.  Such

 15-6    assistant or other persons shall give bond and have such

 15-7    limitations upon his authority as may be fixed by the order of the

 15-8    Board].

 15-9          Sec. 9.  (a)  Once each year, as soon as practicable after

15-10    the close of the fiscal year, the Administrator of the Hospital

15-11    District shall report to the Board of Hospital Managers and the

15-12    Commissioners Court, a full sworn statement of all moneys and

15-13    choses in action received by such Administrator and how disbursed

15-14    or otherwise disposed of.  Such report shall show in detail the

15-15    operations of the District for the year.

15-16          (b)  Under the direction of the Board of Hospital Managers,

15-17    the Administrator [he] shall prepare a proposed [an] annual budget

15-18    which shall be approved by the Board of Hospital Managers.  The

15-19    Board shall publish notice of a public hearing on the proposed

15-20    budget in a newspaper of general circulation in the District one

15-21    time before the 10th day preceding the date of the hearing.  The

15-22    Board shall adopt a budget based on the proposed budget of the

15-23    Administrator.  The budget is effective only after adoption by the

15-24    Board and may be amended on the Board's approval.

15-25          Sec. 10.  The Hospital District organized in pursuance of

15-26    this Act shall have the right and power of eminent domain for the

15-27    purpose of acquiring by condemnation any and all property of any

 16-1    kind or character, real, personal or mixed, or any interest

 16-2    therein, including outright ownership of such property in fee

 16-3    simple absolute, within the boundaries of the said District,

 16-4    necessary or convenient to the exercise of the rights, powers,

 16-5    privileges and functions conferred upon it by this Act, in the

 16-6    manner provided by General Law with respect to condemnation;

 16-7    provided that the said District shall not be required to make

 16-8    deposits in the registry of the trial court of the sum required by

 16-9    Section 21.021(a), Property Code [Paragraph numbered 2 in Article

16-10    3268, Vernon's Civil Statutes, 1925], or to make the bond required

16-11    therein.  In condemnation proceedings being prosecuted by the said

16-12    District, the District shall not be required to pay in advance or

16-13    give any bond otherwise required for the issuance of a temporary

16-14    restraining order or a temporary injunction relating to a

16-15    condemnation proceeding, nor to give bond for costs or for

16-16    supersedeas or any appeal or writ of error [proceeding to any Court

16-17    of Civil Appeals, or to the Supreme Court].

16-18          Sec. 11.  Within thirty (30) days after the appointment of

16-19    the Board of Hospital Managers of the District and each two (2)

16-20    years thereafter the said Board shall select a depository for such

16-21    District to [which shall be one or the same depository theretofore

16-22    selected by the County, such depository shall] secure all funds of

16-23    the District in the manner now provided for the security of county

16-24    funds.  The Board may purchase, sell, and invest the District funds

16-25    in investments authorized by Chapter 225b, Government Code.

16-26          Sec. 12.  All [The Hospital District established or

16-27    maintained under the provisions of this Act shall be subject to

 17-1    inspection by any duly authorized representative of the State Board

 17-2    of Health and of the Commissioners Court of the County, and

 17-3    resident officers shall admit such representatives into all

 17-4    Hospital District facilities and give them access on demand to all]

 17-5    records, reports, books, papers, and accounts pertaining to the

 17-6    Hospital District shall be made available as required by Chapter

 17-7    552, Government Code.

 17-8          Sec. 15.  (a)  The District, without charge, shall provide to

 17-9    a patient residing in the District care and treatment for which the

17-10    patient or a relative of the patient who is legally responsible for

17-11    the patient's support cannot pay.  Not later than the first day of

17-12    each operating year, the District shall adopt an application

17-13    procedure to determine eligibility for assistance, as provided by

17-14    Section 61.053, Health and Safety Code.

17-15          (b)  Whenever a patient has been admitted to the facilities

17-16    of the Hospital District from the County, the Administrator shall

17-17    cause inquiry to be made as to the person's [his] financial

17-18    circumstances[,] and the financial circumstances of a relative [the

17-19    relatives] of the [such] patient who is legally responsible

17-20    [liable] for the patient's [his] support.  On finding [If he finds]

17-21    that the [such] patient or a relative who is legally responsible

17-22    for the patient's support can pay for all or any part of the [said

17-23    relatives are liable to pay for his] care and treatment provided to

17-24    the patient by the District [in whole or in part], the

17-25    Administrator shall report the finding to the Board and the Board

17-26    shall issue an order [shall be made] directing the [such] patient,

17-27    or the relative [said relatives], to pay to the Hospital District

 18-1    for the care of such patient a specified sum per week, in

 18-2    proportion to [their] financial ability, but such sum shall not

 18-3    exceed the actual per capita cost of maintenance.  The

 18-4    Administrator shall have power and authority to collect such sum

 18-5    from the estate of the patient, or the relative who is [his

 18-6    relatives] legally responsible [liable] for the patient's [his]

 18-7    support, in the manner provided by law for the collection of

 18-8    expenses of the last illness of a deceased person.  If the

 18-9    Administrator finds that the [such] patient or the relative is

18-10    [said relatives are] not able to pay, either in whole or in part,

18-11    for the patient's [his] care and treatment in the [such] hospital,

18-12    the same shall become a charge upon the Hospital District.  Should

18-13    there be a dispute as to the ability to pay, or doubt in the mind

18-14    of the Administrator concerning ability to pay, the County Court

18-15    shall hear and determine same, after calling witnesses, and shall

18-16    make such order as may be proper, from which appeal shall lie to

18-17    the District Court by either party to the dispute.

18-18          Sec. 17.  All bonds (including refunding bonds) issued by or

18-19    assumed by the District authorized to be established and created

18-20    under the provisions of this Act shall be and are declared to be

18-21    legal and authorized investments for banks, savings banks, trust

18-22    companies, fiduciaries, savings [building] and loan associations,

18-23    insurance companies, trustees, guardians, and for the sinking funds

18-24    of cities, towns, villages, counties, school districts, or other

18-25    political corporations or subdivisions of the State of Texas; and

18-26    such bonds shall be lawful and sufficient security for deposits to

18-27    the extent of their face value when accompanied by all unmatured

 19-1    coupons appurtenant thereto.

 19-2          Sec. 21.  (a)  If the Board of Hospital Managers declares

 19-3    that funds are not available to meet lawfully authorized

 19-4    obligations of the District and that an emergency exists, the Board

 19-5    may borrow money at a rate not to exceed the maximum annual

 19-6    percentage rate allowed by law for District obligations at the time

 19-7    the loan is made.

 19-8          (b)  To secure a loan, the Board may pledge:

 19-9                (1)  revenues of the District that are not pledged to

19-10    pay bonded  indebtedness of the District;

19-11                (2)  District taxes to be levied by the District in the

19-12    next 12-month period that are not pledged to pay the principal of

19-13    or interest on District bonds; or

19-14                (3)  District bonds that have been authorized but not

19-15    sold.

19-16          (c)  A loan for which taxes or bonds are pledged must mature

19-17    not later than the first anniversary of the date on which the loan

19-18    is made.  A loan for which District revenues are pledged must

19-19    mature not later than the fifth anniversary of the date on which

19-20    the loan is made.

19-21          (d)  The Board may not spend money obtained from a loan under

19-22    this section for any purpose other than the purpose for which the

19-23    Board declared an emergency and, if taxes or bonds are pledged to

19-24    pay the loan, for any purpose other than the purposes for which the

19-25    pledged taxes were levied or the pledged bonds were authorized.

19-26          Sec. 22.  (a)  The District may be dissolved only if the

19-27    dissolution is approved by a majority of the qualified voters of

 20-1    the District voting at an election called and held for that

 20-2    purpose.

 20-3          (b)  The Board may order an election on the question of

 20-4    dissolving the District and disposing of the District's assets and

 20-5    obligations.  The Board shall order an election to be held on the

 20-6    question of dissolution of the District if the Board receives a

 20-7    petition requesting an election that is signed by at least 15

 20-8    percent of the registered voters of the District.  The election

 20-9    shall be held not later than the 60th day after the date the

20-10    election is ordered.  Section 41.001(a), Election Code, does not

20-11    apply to an election ordered under this article.  The order calling

20-12    the election must state:

20-13                (1)  the nature of the election, including the

20-14    proposition that is to appear on the ballot;

20-15                (2)  the date of the election;

20-16                (3)  the hours during which the polls will be open; and

20-17                (4)  the location of the polling places.

20-18          (c)  The Board shall give notice of the election by

20-19    publishing a copy of the election order in a newspaper with general

20-20    circulation in the District once a week for two consecutive weeks.

20-21    The first publication must appear before the 35th day before the

20-22    date set for election.  The ballot for an election at which the

20-23    dissolution of the District is proposed shall be printed to permit

20-24    voting for or against the proposition:  "The dissolution of the

20-25    Tyler County Hospital District."

20-26          (d)  If a majority of the voters in the District favor

20-27    dissolution, the Board shall find that the District is dissolved

 21-1    and shall transfer the land, buildings, improvements, equipment,

 21-2    and other assets that belong to the District to a County or another

 21-3    governmental entity in the County in which the District is located

 21-4    or administer the property, assets, and debts until all funds have

 21-5    been disposed of and all District debts have been paid or settled.

 21-6          (e)  After the Board finds that the District is dissolved,

 21-7    the Board shall:

 21-8                (1)  determine the debt owed by the District; and

 21-9                (2)  impose on the property included in the District's

21-10    tax rolls a tax that is in proportion of the debt to the property

21-11    value.

21-12          (f)  If the District transfers the land, buildings,

21-13    improvements, equipment, and other assets to a County or other

21-14    governmental entity, the County or entity assumes all debts and

21-15    obligations of the District at the time of the transfer, and the

21-16    District is dissolved.

21-17          (g)  If the Board finds that the election results are not

21-18    favorable to the proposition to dissolve the District, another

21-19    dissolution election may not be held before the first anniversary

21-20    of the date of the most recent election to dissolve the District.

21-21          (h)  When all outstanding debts and obligations of the

21-22    District are paid, the Board shall order the Secretary to return

21-23    the pro rata share of all unused tax money to each District

21-24    taxpayer.  A taxpayer may request that the taxpayer's share of

21-25    surplus tax money be credited to the taxpayer's County taxes.  If a

21-26    taxpayer requests the credit, the Board shall direct the Secretary

21-27    to transmit the funds to the County tax assessor-collector.

 22-1          (i)  After the District has paid all its debts and has

 22-2    disposed of all its assets and funds as required by this section,

 22-3    the Board shall file a written report with the Commissioners Court

 22-4    of Tyler County setting forth a summary of the Board's actions in

 22-5    dissolving the District.

 22-6          (j)  Not later than the 10th day after the date it receives

 22-7    the report and determines that the requirements of this section

 22-8    have been fulfilled, the Commissioners Court shall enter an order

 22-9    dissolving the District and disbanding and releasing the Board of

22-10    Managers of the District from any further duty or obligation.

22-11          (k)  Notwithstanding any other provision of this Act, the

22-12    District may not be dissolved unless the Board provides for the

22-13    sale or transfer of the District's assets and liabilities to

22-14    another entity or person.  The dissolution of the District and the

22-15    sale or transfer of the District's assets and liabilities may not

22-16    contravene a trust indenture or bond resolution relating to the

22-17    outstanding bonds of the District.  In addition, the dissolution

22-18    and sale or transfer may not diminish or impair the rights of the

22-19    holders of any outstanding bonds, warrants, or other obligations of

22-20    the District.

22-21          (l)  The sale or transfer of the District's assets and

22-22    liabilities must satisfy the debt and bond obligations of the

22-23    District in a manner that protects the interests of the residents

22-24    of the District, including their collective property rights in the

22-25    District's assets.  Any grant from federal funds is considered an

22-26    obligation to be repaid in satisfaction.  The District may not

22-27    transfer or dispose of the District's assets except for due

 23-1    compensation unless the transfer is made to another governmental

 23-2    agency embracing the District and using the transferred assets for

 23-3    the benefit of residents formerly in the District.

 23-4          SECTION 2.  Section 13, Chapter 110, Acts of the 58th

 23-5    Legislature, Regular Session, 1963, is repealed.

 23-6          SECTION 3.  This Act takes effect September 1, 1997.

 23-7          SECTION 4.  The importance of this legislation and the

 23-8    crowded condition of the calendars in both houses create an

 23-9    emergency and an imperative public necessity that the

23-10    constitutional rule requiring bills to be read on three several

23-11    days in each house be suspended, and this rule is hereby suspended.