Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Hinojosa H.B. No. 3234
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the transfer of municipal hospital authority assets.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 262.005, Health and Safety Code, is
1-5 amended to read as follows:
1-6 Sec. 262.005. DISSOLUTION. (a) A governing body by
1-7 ordinance may dissolve an authority created by the governing body
1-8 if the governing body and the authority provide for the sale or
1-9 transfer of the authority's assets and liabilities to the
1-10 municipality or to another person.
1-11 (b) Upon dissolution, the assets of the authority, including
1-12 proceeds from the sale of a hospital, may not be transferred except
1-13 for due compensation unless such assets are transferred to another
1-14 governmental agency, such as the municipality or county, embracing
1-15 the territory of the authority, and using such transferred assets
1-16 in such a way as to provide for the health care needs of the
1-17 citizens, including indigent patients, formerly served by the
(b)] (c) The dissolution of an authority and the sale or
1-20 transfer of the authority's assets and liabilities may not:
1-21 (1) violate a trust indenture or bond resolution
1-22 relating to the outstanding bonds of the authority; or
1-23 (2) diminish or impair the rights of the holders of
1-24 outstanding bonds, warrants, or other obligations of the authority.
2-1 [ (c)] (d) Except as otherwise provided by this section, an
2-2 ordinance dissolving an authority takes effect on the 31st day
2-3 after the date the governing body adopts the ordinance.
2-4 [ (d)] (e) If before the ordinance takes effect the
2-5 municipality receives a petition requesting a referendum on the
2-6 dissolution that is signed by a number of registered voters of the
2-7 municipality equal to at least 10 percent of the number of voters
2-8 who voted in the most recent municipal election, the ordinance does
2-9 not take effect and the governing body shall order the election.
2-10 [ (e)] (f) Section 41.001(a), Election Code, requiring an
2-11 election to be held on a uniform election date, does not apply to
2-12 an election under this section. The ballot shall be printed to
2-13 provide for voting for or against the proposition: "Dissolution of
2-14 the (name of the authority)."
2-15 [ (f)] (g) If a majority of the votes in the election are
2-16 cast in favor of the proposition, the ordinance takes effect on a
2-17 date stated in the order declaring the results of the election. If
2-18 a majority of the votes in the election are cast against the
2-19 proposition, the ordinance does not take effect and the governing
2-20 body may not adopt an ordinance dissolving the authority before the
2-21 first anniversary of the date of the election. That ordinance is
2-22 also subject to the petition and election requirements of this
2-24 SECTION 2. Section 262.022, Health and Safety Code, is
2-25 amended to read as follows:
2-26 Sec. 262.022. [ ACQUISITION, OPERATION, AND LEASE OF]
2-27 HOSPITALS AND HEALTH CARE. (a) The authority may construct,
2-28 purchase, enlarge, furnish, or equip one or more hospitals. A
2-29 hospital may be located outside the municipality or municipalities.
2-30 (b) The authority may operate and maintain one or more
3-1 hospitals. The authority shall operate a hospital without the
3-2 intervention of private profit for the use and benefit of the
3-3 public unless the authority leases the hospital.
3-4 (c) The board may lease a hospital, or part of a hospital,
3-5 owned by the authority for operation by the lessee as a hospital
3-6 under terms that are satisfactory to the board and the lessee. The
3-7 lease must:
3-8 (1) be authorized by resolution of the board;
3-9 (2) be executed on behalf of the authority by the
3-10 president and secretary of the board; and
3-11 (3) have the seal of the authority impressed on the
3-13 (d) The bond resolution or trust indenture may prescribe
3-14 procedures and policies for the operation of a hospital. If a
3-15 hospital is used, operated, or acquired by a nonprofit corporation
3-16 or is leased, the authority may delegate to the nonprofit
3-17 corporation or lessee the duty to establish the procedures and
3-19 (e) The authority may transfer assets to another
3-20 governmental agency, such as the municipality or county, embracing
3-21 the territory of the authority, to fund or support items which are
3-22 related to providing for the health care needs of the citizens,
3-23 including indigent patients, served by the authority.
3-24 SECTION 3. Section 262.033, Health and Safety Code, is
3-25 amended to read as follows:
3-26 Sec. 262.033. SALE OR CLOSING OF HOSPITAL. (a) The board
3-27 may sell a hospital, or part of a hospital, owned by the authority
3-28 or close a hospital, or part of a hospital, owned or operated by
3-29 the authority. The sale or closure must:
3-30 (1) be authorized by resolution of the board;
4-1 (2) be executed on behalf of the authority by the
4-2 president and secretary of the board; and
4-3 (3) be made by a document having the seal of the
4-4 authority impressed on it.
4-5 (b) Proceeds from the sale of a hospital, or part of a
4-6 hospital, may be transferred to another governmental agency, such
4-7 as the municipality or county, embracing the territory of the
4-8 authority, and used to finance items related to providing for the
4-9 health care needs of the citizens, including indigent patients,
4-10 formerly served by the authority.
4-11 [ (b)] (c) A sale or closing may not take effect before the
4-12 expiration of the period in which a petition may be filed under
4-13 Subsection [ (c)] (d).
4-14 [ (c)] (d) The board shall order and conduct an election on
4-15 the sale or closing of a hospital if, before the 31st day after the
4-16 date the governing body authorizes the sale or closing, the board
4-17 receives a petition requesting the election signed by at least 10
4-18 percent of the qualified voters of the authority. The number of
4-19 qualified voters is determined according to the most recent
4-20 official list of registered voters.
4-21 [ (d)] (e) If a petition is filed under Subsection [ (c)] (d),
4-22 the hospital may be sold or closed only if a majority of the
4-23 qualified voters voting on the question approve the sale or
4-25 SECTION 4. The importance of this legislation and the
4-26 crowded condition of the calendars in both houses create an
4-27 emergency and an imperative public necessity that the
4-28 constitutional rule requiring bills to be read on three several
4-29 days in each house be suspended, and this rule is hereby suspended,
4-30 and that this Act take effect and be in force from and after its
5-1 passage, and it is so enacted.