1-1                                   AN ACT

 1-2     relating to the Hansford County Hospital District.

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

 1-4           SECTION 1.  Section 4, Chapter 872, Acts of the 62nd

 1-5     Legislature, Regular Session, 1971, is amended by amending

 1-6     Subsections (b) and (c) and adding Subsection (e) to read as

 1-7     follows:

 1-8           (b)  After the district has been established (as the result

 1-9     of the election for which provision is made in Section 3) and the

1-10     initial directors have been duly appointed and have qualified, the

1-11     method for thereafter selecting directors may be changed by

1-12     following the provisions of this subsection.  A petition asking

1-13     that directors of the district thereafter be elected may be

1-14     presented to the Commissioners Court of Hansford County.  If such

1-15     petition is executed by at least 250 qualified electors of the

1-16     district who own taxable property therein which has been duly

1-17     rendered for taxation on the tax rolls of the district as of the

1-18     date of the presentation to the court of such petition, it shall be

1-19     the duty of the Commissioners Court of Hansford County to order an

1-20     election on the question of whether the directors of the district

1-21     shall thereafter be elected.  Such election shall be called within

1-22     90 days after the presentation of a proper petition and notice

1-23     thereof, given as provided in Article 704, Revised [Civil] Statutes

1-24     [of Texas, 1925, as amended], and such election shall be conducted

 2-1     in accordance with the general laws of Texas pertaining to general

 2-2     elections, except as modified by the provisions of this Act.  The

 2-3     order calling the election shall specify the date, place or places

 2-4     of holding the election, the presiding judge and alternate judge

 2-5     for each voting place, and shall provide for clerks as in a county

 2-6     election.  The ballots shall be prepared to allow voting for or

 2-7     against the proposition:  "Providing the office of director of the

 2-8     Hansford County Hospital District shall hereafter be an elective

 2-9     office."  If a majority of the voters participating in the election

2-10     shall vote in favor of such proposition, each director then in

2-11     office shall continue to serve the term for which appointed, but

2-12     successors in office shall be elected for terms of two years.  No

2-13     more than one such election for the purpose of voting on the

2-14     aforesaid proposition shall be held within any three-year period.

2-15           If such proposition is sustained by a majority vote, a

2-16     regular election for directors shall be held on the first Saturday

2-17     in May [April] of each year and shall be ordered by the board.

2-18     Such order shall state the time, place, and purpose of the

2-19     election, and the board shall appoint the presiding judge, who

2-20     shall appoint an assistant judge and such clerks as may be

2-21     required, and such election shall be ordered at least 15 days prior

2-22     to the date on which it is to be held.  Any person desiring his

2-23     name to be printed on the ballot as a candidate for director shall

2-24     file a petition signed by not less than 50 qualified voters, asking

2-25     that such name be printed on the ballot, with the secretary of the

2-26     board of directors of the district.  Such petition shall be filed

2-27     with the secretary at least 25 days prior to the date of election.

 3-1     Notice of such election shall be published one time in a newspaper

 3-2     of general circulation in the area of the district at least five

 3-3     days before the election.  The term of office of each elected

 3-4     director shall be two years.  All vacancies in the office of

 3-5     director shall thereafter be filled by a majority vote of the

 3-6     remaining directors, and such appointees shall hold office for the

 3-7     unexpired term for which they were appointed.

 3-8           (c)  No person shall serve as a member of the board of

 3-9     directors unless the person [he] is a resident of the district[, a

3-10     freeholder,] and a qualified voter.  Neither the administrator nor

3-11     employee of the district shall be eligible to serve as a director.

3-12     Each member of the board of directors shall execute the

3-13     constitutional oath of office.

3-14           (e)  Subchapter C, Chapter 2, Election Code, applies to the

3-15     election of unopposed candidates for the board of directors.

3-16           SECTION 2.  Chapter 872, Acts of the 62nd Legislature,

3-17     Regular Session, 1971, is amended by adding Section 4A to read as

3-18     follows:

3-19           Sec. 4A.  (a)  In a general or special election of directors,

3-20     a write-in vote may not be counted unless the name written in

3-21     appears on the list of write-in candidates.

3-22           (b)  To be entitled to a place on the list of write-in

3-23     candidates, a candidate must make a declaration of write-in

3-24     candidacy.

3-25           (c)  A declaration of write-in candidacy must be filed with

3-26     the secretary of the board of directors not later than 5 p.m. of

3-27     the 20th day before election day.  However, if a candidate whose

 4-1     name is to appear on the ballot dies or is declared ineligible

 4-2     after the 23rd day before election day, a declaration of write-in

 4-3     candidacy for the office sought by the deceased or ineligible

 4-4     candidate may be filed not later than 5 p.m. of the 18th day before

 4-5     election day.

 4-6           (d)  Subchapter B, Chapter 146, Election Code, applies to

 4-7     write-in voting in an election of directors except to the extent of

 4-8     a conflict with this section.

 4-9           SECTION 3.  Section 5, Chapter 872, Acts of the 62nd

4-10     Legislature, Regular Session, 1971, is amended to read as follows:

4-11           Sec. 5.  (a)  The board of directors shall manage, control,

4-12     and administer the hospital system and all funds and resources of

4-13     the district, but in no event shall any operating, depreciation, or

4-14     building funds [fund reserves] be invested in any funds or

4-15     securities other than those specified in Articles 836 and 837,

4-16     Revised [Civil] Statutes, or Chapter 2256, Government Code [of

4-17     Texas, 1925, as amended].  The board is given full authority to

4-18     establish rules and regulations relating to seniority of employees

4-19     of the district, including a retirement plan based thereon, and may

4-20     give effect to previous years of service for those employees who

4-21     have been continuously employed in the operation or management of

4-22     the hospital or ancillary health care facilities acquired,

4-23     including those acquired upon the creation thereof by reason of

4-24     Section 2 of this Act, or constructed by the district.  The

4-25     district, through its board of directors, shall have the power and

4-26     authority to sue and be sued, and shall be entitled to all causes

4-27     of action and defenses enjoyed by similar authorities who perform

 5-1     only governmental functions, to promulgate rules and regulations

 5-2     governing the operation of the hospital, ancillary health care

 5-3     facilities, hospital system, and ancillary health care system, and

 5-4     the duties, functions, and responsibilities of the [its] staff,

 5-5     [and its] employees, contractors, or agents of the district.  The

 5-6     board of directors shall appoint [a] qualified persons [person] to

 5-7     be known as the administrators [administrator] or managers

 5-8     [manager] of the hospital district or of the ancillary health care

 5-9     facilities and may in its discretion appoint assistants [an

5-10     assistant] to the administrators [administrator] or managers

5-11     [manager].  Such administrators [administrator] or managers

5-12     [manager] and assistant administrators [administrator] or managers

5-13     [manager], if any, shall serve at the will of the board and shall

5-14     receive such compensation as may be fixed by the board.  The

5-15     district administrator or manager shall, upon assuming his duties,

5-16     execute a bond payable to the hospital district in an amount to be

5-17     set by the board of directors, in no event less than $5,000,

5-18     conditioned that he shall perform the duties required of him, and

5-19     containing such other conditions as the board may require.  The

5-20     district administrator or manager shall supervise all the work and

5-21     activities of the district and shall have general direction of the

5-22     affairs of the district, including overall management

5-23     responsibility for the ancillary health care facilities, subject to

5-24     the limitations as may be prescribed by the board.  The board of

5-25     directors shall have the authority to appoint to the staff such

5-26     doctors and allied health personnel as it may be deemed necessary

5-27     for the efficient operation of the district, and may provide for

 6-1     temporary appointments to the staff if warranted by circumstances.

 6-2     The board may delegate to the district administrator or manager the

 6-3     authority to employ technicians, nurses, and employees of the

 6-4     district.  Such board shall be authorized to contract with any

 6-5     other political subdivision or governmental agency whereby the

 6-6     district will provide investigatory or other services as to the

 6-7     hospital, ancillary health care, or welfare needs of the

 6-8     inhabitants of the district and shall be authorized to provide

 6-9     health care services [contract with any county or incorporated

6-10     municipality located] outside its boundaries for the care and

6-11     treatment of the sick, diseased, or injured persons of any

6-12     jurisdiction [such county or municipality], and shall have the

6-13     authority to contract with the State of Texas, another state, or a

6-14     political subdivision of this or another state, or agencies of the

6-15     federal government for the treatment of sick, diseased, or injured

6-16     persons.

6-17           (b)  The board of directors may defend or indemnify an

6-18     officer, director, board appointee, medical staff member, or

6-19     district employee against or for liability, claims, or expenses

6-20     that arise from the performance of a duty in the person's

6-21     respective capacity as an officer, director, board appointee,

6-22     medical staff member, or employee of the district, including the

6-23     performance of a duty at a district facility.  The board of

6-24     directors may purchase and maintain liability insurance coverage or

6-25     establish a self-insurance program to fund indemnification under

6-26     this section.

6-27           SECTION 4.  Section 6, Chapter 872, Acts of the 62nd

 7-1     Legislature, Regular Session, 1971, is amended to read as follows:

 7-2           Sec. 6.  The district shall be operated on the basis of a

 7-3     fiscal year as established from time to time by the board of

 7-4     directors of the district, provided such fiscal year shall not be

 7-5     changed more often than once in any 24-month period.  The board

 7-6     shall cause an independent audit to be made of the financial

 7-7     condition of the district, which, together with other records of

 7-8     the district, shall be open to inspection at the principal office

 7-9     of the district, such audit to be made covering such fiscal year,

7-10     and the same shall be filed at the office of the district as soon

7-11     as it is completed.  The district administrator or manager shall

7-12     prepare an annual budget for approval by the board of directors.

7-13     The budget shall also contain a complete financial statement of the

7-14     district showing all outstanding obligations of the district, the

7-15     cash on hand to the credit of each and every fund of the district,

7-16     the funds received from all sources during the previous year, the

7-17     funds available from all sources during the ensuing year, with

7-18     balances expected at year end of the year in which the budget is

7-19     being prepared, and estimated revenues and balances available to

7-20     cover the proposed budget and the estimated tax rate which will be

7-21     required, and the proposed expenditures and disbursements and the

7-22     estimated receipts and collections for the following fiscal year.

7-23     A public hearing on the annual budget shall be held by the board of

7-24     directors after notice of such hearing has been published one time

7-25     at least 10 days before the date set therefor.  Notice of the

7-26     budget hearing shall be published in a newspaper or newspapers

7-27     which individually or collectively provide general circulation in

 8-1     the hospital district.  Any property taxpayer of the district shall

 8-2     have the right to be present and participate in said hearing within

 8-3     such rules of decorum and procedures as may be prescribed by the

 8-4     board.  At the conclusion of the hearing, the budget, as proposed

 8-5     by the district administrator or manager, shall be acted upon by

 8-6     the board of directors.  The board of directors shall have

 8-7     authority to make such changes in the budget as in their judgment

 8-8     the law warrants and the interest of the taxpayers demands.  No

 8-9     expenditure may be made for any expense not included in the annual

8-10     budget or an amendment thereto.  The annual budget may be amended

8-11     from time to time as the circumstances may require, but the annual

8-12     budget, and all amendments thereto, shall be approved by the board

8-13     of directors.  As soon as practicable after the close of each

8-14     fiscal year, the district administrator or manager shall prepare

8-15     for the board a full sworn statement of all moneys belonging to the

8-16     district and a full account of the disbursement of same.

8-17           SECTION 5.  Section 7, Chapter 872, Acts of the 62nd

8-18     Legislature, Regular Session, 1971, is amended to read as follows:

8-19           Sec. 7.  The board of directors shall have the power and

8-20     authority to issue and sell its bonds in the name and upon the

8-21     faith and credit of such hospital district for the purchase,

8-22     construction, acquisition, repair, or renovation of buildings and

8-23     improvements and equipping the same for hospital and ancillary

8-24     health care purposes, and for any or all of such purposes.  At the

8-25     time of the issuance of any bonds by the district a tax shall be

8-26     levied by the board sufficient to create an interest and sinking

8-27     fund to pay the interest on and principal of said bonds as same

 9-1     mature, providing such tax together with any other taxes levied for

 9-2     said district shall not exceed the rate of tax voted under the

 9-3     provisions of Section 3 of this Act.  Except as provided in Section

 9-4     8, no bonds shall be issued by such hospital district until

 9-5     authorized by a majority of the electors of the district voting at

 9-6     an election called for such purpose.  The order for bond election

 9-7     shall specify the date of the election, the amount of bonds to be

 9-8     authorized, the maximum maturity thereof, the maximum rate of

 9-9     interest they are to bear, the place or places where the election

9-10     shall be held, the presiding judge and alternate judge for each

9-11     voting place and provide for clerks as in county elections.  Notice

9-12     of any bond election shall be given as provided in Article 704,

9-13     Revised [Civil] Statutes [of Texas, 1925, as amended], and shall be

9-14     conducted in accordance with the general laws of Texas pertaining

9-15     to general elections, except as modified by the provisions of this

9-16     Act.

9-17           SECTION 6.  Section 8(b), Chapter 872, Acts of the 62nd

9-18     Legislature, Regular Session, 1971, is amended to read as follows:

9-19           (b)  In addition to the power to issue bonds payable from

9-20     taxes levied by the district, as contemplated by the preceding

9-21     section, the board of directors is further authorized to issue and

9-22     to refund any previously issued revenue bonds for purchasing,

9-23     constructing, acquiring, repairing, equipping, or renovating

9-24     buildings and improvements for hospital or ancillary health care

9-25     purposes, and for acquiring sites therefor, such bonds to be

9-26     payable from and secured by a pledge of all or any part of the

9-27     revenues of the district to be derived from the operation of its

 10-1    hospital, [or] hospitals, or ancillary health care facilities, and

 10-2    such bonds may be additionally secured by a mortgage or deed of

 10-3    trust lien on any part or all of its properties.  Such bonds shall

 10-4    be issued in the manner and in accordance with the procedures and

 10-5    requirements specified for the issuance of revenue bonds by county

 10-6    hospital authorities in Sections 264.042, 264.043, 264.046,

 10-7    264.047, 264.048, and 264.049, Health and Safety Code [Sections 8,

 10-8    10, 11, 12 and 13, Chapter 122, Acts of the 58th Legislature, 1963

 10-9    (Article 4494r, Vernon's Texas Civil Statutes)].

10-10          SECTION 7.  Chapter 872, Acts of the 62nd Legislature,

10-11    Regular Session, 1971, is amended by adding Section 8A to read as

10-12    follows:

10-13          Sec. 8A.  The district may issue, sell, and deliver

10-14    obligations of the district and execute corresponding credit

10-15    agreements in the manner provided by Chapter 656, Acts of the 68th

10-16    Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas

10-17    Civil Statutes), and the Bond Procedures Act of 1981 (Article

10-18    717k-6, Vernon's Texas Civil Statutes).

10-19          SECTION 8.  Section 9, Chapter 872, Acts of the 62nd

10-20    Legislature, Regular Session, 1971, is amended to read as follows:

10-21          Sec. 9.  The board of directors is hereby given complete

10-22    discretion as to the type of buildings, both as to number and

10-23    location, either inside or outside the district, required to

10-24    establish and maintain an adequate hospital system and ancillary

10-25    health care services system.  The hospital and ancillary health

10-26    care services systems [system] may include facilities and equipment

10-27    to provide for domiciliary care and treatment of the sick, wounded,

 11-1    and injured, [facilities for] outpatient [clinic or] clinics,

 11-2    dispensaries, [facilities for] geriatric domiciliary care,

 11-3    convalescent home facilities, physicians' offices, home health

 11-4    services, durable medical equipment, long-term care, skilled

 11-5    nursing care, intermediate nursing care, hospice care, ambulatory

 11-6    surgery centers, urgent care facilities, rural health clinics,

 11-7    operation of a mobile emergency medical service, necessary nurses'

 11-8    domiciliaries and training centers, blood banks, and research

 11-9    centers or laboratories, and any other facilities or equipment

11-10    deemed necessary for the provision of hospital and ancillary health

11-11    care services [care] by the directors.  The district, through its

11-12    board of directors, is further authorized to enter into an

11-13    operating or management contract with a public or private entity

11-14    with regard to any part or all of its facilities, equipment, or

11-15    services.  The board [or a part thereof, or] may lease all or part

11-16    of its buildings, [and] facilities, or equipment upon terms and

11-17    conditions considered to be in [to] the best interest of its

11-18    inhabitants, provided that in no event shall any lease be for a

11-19    period in excess of 25 years from the date on which the lease is

11-20    made [entered].  The district shall be empowered to sell, lease, or

11-21    otherwise dispose of any real or personal property or equipment of

11-22    any nature upon terms and conditions found by the board to be in

11-23    the best interest of the district's [its] inhabitants, provided,

11-24    however, that in no event shall the board be authorized to sell or

11-25    dispose of any real property unless the board affirmatively finds

11-26    that the sale, lease, or disposition of the property is in the best

11-27    interests of the district's inhabitants [the same is not needed for

 12-1    the operation of the hospital system].

 12-2          SECTION 9.  Section 10, Chapter 872, Acts of the 62nd

 12-3    Legislature, Regular Session, 1971, is amended to read as follows:

 12-4          Sec. 10.  The board of directors of such district shall have

 12-5    the power to prescribe the method and manner of making purchases

 12-6    and expenditures by and for such hospital district, and shall also

 12-7    be authorized to prescribe all accounting and control procedures.

 12-8    All contracts for construction [or purchases] involving the

 12-9    expenditure of more than $10,000 [$2,000] may be made only after

12-10    advertising in the manner provided by Chapter 252, Local Government

12-11    Code, Section 286.078, Health and Safety Code, or Subchapter B,

12-12    Chapter 271, Local Government Code [163, Acts of the 42nd

12-13    Legislature, Regular Session, 1931, as amended (Article 2368a,

12-14    Vernon's Texas Civil Statutes)].  The provisions of Chapter 2253,

12-15    Government Code [Article 5160, Revised Civil Statutes of Texas,

12-16    1925, as amended], relating to performance and payment bonds, shall

12-17    apply to construction contracts let by the district.  The district

12-18    may acquire by purchase, lease, or lease to purchase equipment for

12-19    use in its hospital system and mortgage or pledge the property so

12-20    acquired as security for the payment of the purchase or lease

12-21    price, but any such contract shall provide for the entire

12-22    obligation of the district to be retired within five years from the

12-23    date of the contract.  Except as permitted in the preceding

12-24    sentence and as permitted by Sections 7, [and] 8, 10A, and 15(d) of

12-25    this Act, the district may incur no obligation payable from any

12-26    revenues of the district, taxes or otherwise, except those on hand

12-27    or to be on hand within the then current and following fiscal year

 13-1    of the district.

 13-2          SECTION 10.  Chapter 872, Acts of the 62nd Legislature,

 13-3    Regular Session, 1971, is amended by adding Section 10A to read as

 13-4    follows:

 13-5          Sec. 10A.  (a)  The board of directors may spend district

 13-6    funds, enter into agreements, and take other necessary action to

 13-7    recruit physicians, ancillary and allied health professionals, and

 13-8    other persons to serve on the district's medical staff or for

 13-9    employment with the district, including:

13-10                (1)  advertising and marketing;

13-11                (2)  paying travel, recruitment, and relocation

13-12    expenses;

13-13                (3)  providing a loan or scholarship to a physician or

13-14    other person enrolled in health care education courses at an

13-15    institution of higher education who contractually agrees to become

13-16    a district employee or medical staff member; and

13-17                (4)  providing office space without the payment of rent

13-18    for the space or subsidizing office space or other facilities for a

13-19    health care professional, including a physician.

13-20          (b)  The board of directors may spend district funds, enter

13-21    into agreements, and take other necessary action to conduct,

13-22    participate in, or otherwise assist in providing health care and

13-23    professional educational, development, or retraining programs for

13-24    medical staff members or employees of the district or prospective

13-25    medical staff members or employees.

13-26          (c)  The board of directors may spend district funds, enter

13-27    into agreements, acquire by lease, purchase, or lease to purchase

 14-1    facilities, supplies, and equipment, and take any other action to

 14-2    provide day-care services for the medical staff members, allied

 14-3    health professionals, officers, directors, and employees of the

 14-4    district.  As space permits, the district may also provide day-care

 14-5    services to residents of the district.

 14-6          SECTION 11.  Section 11, Chapter 872, Acts of the 62nd

 14-7    Legislature, Regular Session, 1971, is amended to read as follows:

 14-8          Sec. 11.  The board of directors of the district shall name

 14-9    one or more banks within, without (either or both), its boundaries

14-10    to serve as a depository for the funds of the district.  All funds

14-11    of the district, except those invested as provided in Section 5 of

14-12    this Act, and those transmitted to a bank or banks of payment for

14-13    bonds or obligations issued or assumed by the district, shall be

14-14    deposited as received with the depository bank and shall remain on

14-15    deposit, provided that nothing herein shall limit the power of the

14-16    board to place a portion of such funds on time deposit or purchase

14-17    certificates of deposit or make other investments as authorized by

14-18    Chapter 2256, Government Code.

14-19          SECTION 12.  Section 14, Chapter 872, Acts of the 62nd

14-20    Legislature, Regular Session, 1971, is amended to read as follows:

14-21          Sec. 14.  The district shall have the right and power of

14-22    eminent domain for the purpose of acquiring by condemnation any and

14-23    all property of any kind and character in fee simple, or any lesser

14-24    interest therein, within the boundaries of the district necessary

14-25    to the powers, rights, and privileges conferred by this Act, in the

14-26    manner provided by the general law with respect to condemnation by

14-27    counties, provided that the district shall not be required to make

 15-1    deposits in the registry of the trial court of the sum required by

 15-2    Section 21.021, Property Code [Paragraph 2, Article 3268, Revised

 15-3    Civil Statutes of Texas, 1925, as amended], or to make bond as

 15-4    therein provided.  In condemnation proceedings being prosecuted by

 15-5    the district, the district shall not be required to pay in advance

 15-6    or give bond or other security for costs in the trial court, nor to

 15-7    give any bond otherwise required for the issuance of a temporary

 15-8    restraining order or a temporary injunction nor to give bond for

 15-9    costs or for supersedeas on any appeal or writ of error.

15-10          SECTION 13.  Section 15, Chapter 872, Acts of the 62nd

15-11    Legislature, Regular Session, 1971, is amended to read as follows:

15-12          Sec. 15.  (a)  The directors shall have the authority to levy

15-13    taxes for the entire year in which the district is established as

15-14    the result of the election herein provided.  [All taxes of the

15-15    district shall be assessed and collected on county tax values as

15-16    provided in Subsection (b) of this section hereof unless the

15-17    directors, by majority vote, elect to have taxes assessed and

15-18    collected by its own tax assessor-collector under Subsection (c) of

15-19    this section hereof.  Any such election may be made prior to

15-20    December 1 annually and shall govern the manner in which taxes are

15-21    thereafter assessed and collected, until changed by a similar

15-22    resolution.]  Hospital district tax shall be levied upon all

15-23    taxable property within said district subject to hospital district

15-24    taxation.

15-25          (b)  The Tax Code governs the appraisal, assessment, and

15-26    collection of district taxes [Under this subsection, district taxes

15-27    shall be assessed and collected on county tax values in the same

 16-1    manner as provided by law with relation to county taxes.  The tax

 16-2    assessor-collector of the county in which said district is situated

 16-3    shall be charged and required to accomplish the assessment and

 16-4    collection of all taxes levied by and on behalf of the district.

 16-5    The assessor-collector of taxes shall charge and deduct from

 16-6    payments to the hospital district an amount as fees for assessing

 16-7    and collecting the taxes at a rate of not exceeding two percent of

 16-8    the amounts collected as may be determined by contract between the

 16-9    county and the district, but in no event shall the amount paid

16-10    exceed $7,500 in any one calendar year.  Such fees shall be

16-11    deposited in the officers' salary fund of the county and reported

16-12    as fees of office of the county tax assessor-collector.  Interest

16-13    and penalties on taxes paid to the hospital district shall be the

16-14    same as in the case of county taxes.  Discounts shall be the same

16-15    as allowed by the county.  The residue of tax collections after

16-16    deductions of discounts and fees for assessing and collecting shall

16-17    be deposited in the district's depository.  The bond of the county

16-18    tax assessor-collector shall stand as security for the proper

16-19    performance of his duties as assessor-collector of the district;

16-20    or, if in the judgment of the district board of directors it is

16-21    necessary, additional bond payable to the district may be required.

16-22    In all matters pertaining to the assessment, collection, and

16-23    enforcement of taxes for the district, the county tax

16-24    assessor-collector shall be authorized to act in all respects

16-25    according to the laws of the State of Texas relating to state and

16-26    county taxes].

16-27          (c)  The board may provide for the appointment of a tax

 17-1    assessor-collector for the district or may contract for the

 17-2    assessment and collection of taxes as provided by the Tax Code

 17-3    [Under this subsection, taxes shall be assessed and collected by a

 17-4    tax assessor-collector appointed by the directors, who shall also

 17-5    fix the terms of his employment, compensation, and requirement for

 17-6    bond to assure the faithful performance of his duties, but in no

 17-7    event shall such bond be for less than $5,000.  The directors shall

 17-8    also annually appoint five persons to serve as a board of

 17-9    equalization and shall fix their compensation.  Each member of the

17-10    board and the tax assessor shall be residents of the district and

17-11    own real property subject to hospital district taxation, and each

17-12    shall have the same duties, including the obligation to execute the

17-13    oath of office, as required by county officials exercising such

17-14    powers and duties.  Except as in this Act provided to the contrary,

17-15    all the provisions of Title 122, Revised Civil Statutes of Texas,

17-16    1925, as amended, shall apply to the district].

17-17          (d)  The district may borrow money to pay the district's

17-18    operating expenses in an amount not to exceed the amount of taxes

17-19    or other revenues the district expects to receive during the fiscal

17-20    year in which the money is borrowed.  The district may pledge all

17-21    or part of the taxes or other revenues received during that fiscal

17-22    year to repay the indebtedness.

17-23          SECTION 14.  Section 17, Chapter 872, Acts of the 62nd

17-24    Legislature, Regular Session, 1971, is amended to read as follows:

17-25          Sec. 17.  Whenever a patient [residing within the district]

17-26    has been admitted to the facilities of the district [thereof], the

17-27    district administrator or manager may cause inquiry to be made as

 18-1    to the patient's [his] circumstances and those of the relatives of

 18-2    such patient legally liable for the patient's [his] support.  If

 18-3    the district administrator [he] finds that such patient or said

 18-4    relatives are able to pay for the [his] care and treatment provided

 18-5    by the district to the patient in whole or in part, an order shall

 18-6    be made directing such patient or said relatives to pay the

 18-7    hospital district for the care and support of such patient a

 18-8    specified sum per week in proportion to their financial ability.

 18-9    The district administrator or manager shall have power and

18-10    authority to collect such sums from the estate of the patient or

18-11    the patient's [his] relatives legally liable for the patient's

18-12    [his] support in the manner provided by law for collection of

18-13    expenses in the last illness of a deceased person.  If the district

18-14    administrator or manager finds that such patient or said relatives

18-15    are not able to pay either in whole or in part for the [his] care

18-16    and treatment provided to the patient by the district and that

18-17    payment is not available from any other source [in such hospital],

18-18    same shall become a charge upon the hospital district as to the

18-19    amount of the inability to pay.  Should there be any dispute as to

18-20    the ability to pay or doubt in the mind of the district

18-21    administrator or manager, the board of directors shall hear and

18-22    determine the patient's ability to pay [same] after calling

18-23    witnesses, and shall make such order or orders as may be proper.

18-24    Appeals from the final order of the board shall lie to the district

18-25    court.  The substantial evidence rule shall apply.

18-26          SECTION 15.  Section 18, Chapter 872, Acts of the 62nd

18-27    Legislature, Regular Session, 1971, is amended to read as follows:

 19-1          Sec. 18.  The board of directors of the hospital district is

 19-2    authorized on behalf of the [such] district to accept donations,

 19-3    gifts, and endowments, in addition to those heretofore made to

 19-4    Hansford County for hospital and ancillary health care purposes, to

 19-5    be held in trust and administered by the board of directors for

 19-6    such purposes and under such directions, limitations, and

 19-7    provisions as may be prescribed in writing by the donor not

 19-8    inconsistent with proper management and objective of the hospital

 19-9    district.

19-10          SECTION 16.  Section 19, Chapter 872, Acts of the 62nd

19-11    Legislature, Regular Session, 1971, is amended to read as follows:

19-12          Sec. 19.  After creation of the hospital district, no

19-13    municipality or political subdivision within the boundaries of the

19-14    district shall have the power to levy taxes or issue bonds or other

19-15    obligations for hospital purposes or for providing medical care.

19-16    The said hospital district shall assume full responsibility for

19-17    providing hospital services [care] for the indigents residing

19-18    within the district.  The hospital district may assume full

19-19    responsibility for providing ancillary health care services for the

19-20    indigent residents of the district and may operate or provide for

19-21    the operation of a mobile emergency medical service.  When the

19-22    district is created and established, the county and all towns and

19-23    cities located therein shall convey and transfer to the district

19-24    title to all lands, buildings, improvements and equipment in

19-25    anywise pertaining to a hospital or hospital system which may be

19-26    jointly or separately owned by the county or any city or town

19-27    within said district.  Operating funds and reserves for operating

 20-1    expenses which are on hand and funds which have been budgeted for

 20-2    hospital purposes by the county or any city or town therein for the

 20-3    remainder of the fiscal year in which the district is established

 20-4    shall likewise be transferred to said district, as shall taxes

 20-5    theretofore levied for hospital purposes for the current year and

 20-6    all sinking funds established for payment of indebtedness assumed

 20-7    by the district.

 20-8          SECTION 17.  This Act takes effect September 1, 1997.

 20-9          SECTION 18.  The importance of this legislation and the

20-10    crowded condition of the calendars in both houses create an

20-11    emergency and an imperative public necessity that the

20-12    constitutional rule requiring bills to be read on three several

20-13    days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 3456 was passed by the House on April

         11, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 3456 on May 14, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 3456 was passed by the Senate, with

         amendments, on May 12, 1997, by the following vote:  Yeas 31, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor