1-1     By:  Chisum (Senate Sponsor - Bivins)                 H.B. No. 3456

 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 2, 1997, reported adversely, with

 1-5     favorable Committee Substitute by the following vote:  Yeas 11,

 1-6     Nays 0; May 2, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 3456                   By:  Madla

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the Hansford County Hospital District.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Sections 4(b) and (c), Chapter 872, Acts of the

1-13     62nd Legislature, Regular Session, 1971, are amended to read as

1-14     follows:

1-15           (b)  After the district has been established (as the result

1-16     of the election for which provision is made in Section 3) and the

1-17     initial directors have been duly appointed and have qualified, the

1-18     method for thereafter selecting directors may be changed by

1-19     following the provisions of this subsection.  A petition asking

1-20     that directors of the district thereafter be elected may be

1-21     presented to the Commissioners Court of Hansford County.  If such

1-22     petition is executed by at least 250 qualified electors of the

1-23     district who own taxable property therein which has been duly

1-24     rendered for taxation on the tax rolls of the district as of the

1-25     date of the presentation to the court of such petition, it shall be

1-26     the duty of the Commissioners Court of Hansford County to order an

1-27     election on the question of whether the directors of the district

1-28     shall thereafter be elected.  Such election shall be called within

1-29     90 days after the presentation of a proper petition and notice

1-30     thereof, given as provided in Article 704, Revised [Civil] Statutes

1-31     [of Texas, 1925, as amended], and such election shall be conducted

1-32     in accordance with the general laws of Texas pertaining to general

1-33     elections, except as modified by the provisions of this Act.  The

1-34     order calling the election shall specify the date, place or places

1-35     of holding the election, the presiding judge and alternate judge

1-36     for each voting place, and shall provide for clerks as in a county

1-37     election.  The ballots shall be prepared to allow voting for or

1-38     against the proposition:  "Providing the office of director of the

1-39     Hansford County Hospital District shall hereafter be an elective

1-40     office."  If a majority of the voters participating in the election

1-41     shall vote in favor of such proposition, each director then in

1-42     office shall continue to serve the term for which appointed, but

1-43     successors in office shall be elected for terms of two years.  No

1-44     more than one such election for the purpose of voting on the

1-45     aforesaid proposition shall be held within any three-year period.

1-46           If such proposition is sustained by a majority vote, a

1-47     regular election for directors shall be held on the first Saturday

1-48     in May [April] of each year and shall be ordered by the board.

1-49     Such order shall state the time, place, and purpose of the

1-50     election, and the board shall appoint the presiding judge, who

1-51     shall appoint an assistant judge and such clerks as may be

1-52     required, and such election shall be ordered at least 15 days prior

1-53     to the date on which it is to be held.  Any person desiring his

1-54     name to be printed on the ballot as a candidate for director shall

1-55     file a petition signed by not less than 50 qualified voters, asking

1-56     that such name be printed on the ballot, with the secretary of the

1-57     board of directors of the district.  Such petition shall be filed

1-58     with the secretary at least 25 days prior to the date of the

1-59     election.  Notice of such election shall be published one time in a

1-60     newspaper of general circulation in the area of the district at

1-61     least five days before the election.  The term of office of each

1-62     elected director shall be two years.  All vacancies in the office

1-63     of director shall thereafter be filled by a majority vote of the

1-64     remaining directors, and such appointees shall hold office for the

 2-1     unexpired term for which they were appointed.

 2-2           (c)  No person shall serve as a member of the board of

 2-3     directors unless the person [he] is a resident of the district[, a

 2-4     freeholder,] and a qualified voter.  Neither the administrator nor

 2-5     employee of the district shall be eligible to serve as a director.

 2-6     Each member of the board of directors shall execute the

 2-7     constitutional oath of office.

 2-8           (d)  Subchapter C, Chapter 2, Election Code, applies to the

 2-9     election of unopposed candidates for the board of directors.

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

2-11     Regular Session, 1971, is amended by adding Section 4A to read as

2-12     follows:

2-13           Sec. 4A.  (a)  In a general or special election of directors,

2-14     a write-in vote may not be counted unless the name written in

2-15     appears on the list of write-in candidates.

2-16           (b)  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           (c)  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 20th 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 23rd 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 18th day before

2-26     election day.

2-27           (d)  Subchapter B, Chapter 146, Election Code, applies to

2-28     write-in voting in an election of directors except to the extent of

2-29     a conflict with this section.

2-30           SECTION 3.  Section 5, Chapter 872, Acts of the 62nd

2-31     Legislature, Regular Session, 1971, is amended to read as follows:

2-32           Sec. 5.  (a)  The board of directors shall manage, control,

2-33     and administer the hospital system and all funds and resources of

2-34     the district, but in no event shall any operating, depreciation, or

2-35     building funds [fund reserves] be invested in any funds or

2-36     securities other than those specified in Articles 836 and 837,

2-37     Revised [Civil] Statutes, or Chapter 2256, Government Code [of

2-38     Texas, 1925, as amended].  The board is given full authority to

2-39     establish rules and regulations relating to seniority of employees

2-40     of the district, including a retirement plan based thereon, and may

2-41     give effect to previous years of service for those employees who

2-42     have been continuously employed in the operation or management of

2-43     the hospital or ancillary health care facilities acquired,

2-44     including those acquired upon the creation thereof by reason of

2-45     Section 2 of this Act, or constructed by the district.  The

2-46     district, through its board of directors, shall have the power and

2-47     authority to sue and be sued, and shall be entitled to all causes

2-48     of action and defenses enjoyed by similar authorities who perform

2-49     only governmental functions, to promulgate rules and regulations

2-50     governing the operation of the hospital, ancillary health care

2-51     facilities, hospital system, and ancillary health care system, and

2-52     the duties, functions, and responsibilities of the [its] staff,

2-53     [and its] employees, contractors, or agents of the district.  The

2-54     board of directors shall appoint [a] qualified persons [person] to

2-55     be known as the administrators [administrator] or managers

2-56     [manager] of the hospital district or of the ancillary health care

2-57     facilities and may in its discretion appoint assistants [an

2-58     assistant] to the administrators [administrator] or managers

2-59     [manager].  Such administrators [administrator] or managers

2-60     [manager] and assistant administrators [administrator] or managers

2-61     [manager], if any, shall serve at the will of the board and shall

2-62     receive such compensation as may be fixed by the board.  The

2-63     district administrator or manager shall, upon assuming his duties,

2-64     execute a bond payable to the hospital district in an amount to be

2-65     set by the board of directors, in no event less than $5,000,

2-66     conditioned that he shall perform the duties required of him, and

2-67     containing such other conditions as the board may require.  The

2-68     district administrator or manager shall supervise all the work and

2-69     activities of the district and shall have general direction of the

 3-1     affairs of the district, including overall management

 3-2     responsibility for the ancillary health care facilities, subject to

 3-3     the limitations as may be prescribed by the board.  The board of

 3-4     directors shall have the authority to appoint to the staff such

 3-5     doctors and allied health personnel as it may be deemed necessary

 3-6     for the efficient operation of the district, and may provide for

 3-7     temporary appointments to the staff if warranted by circumstances.

 3-8     The board may delegate to the district administrator or manager the

 3-9     authority to employ technicians, nurses, and employees of the

3-10     district.  Such board shall be authorized to contract with any

3-11     other political subdivision or governmental agency whereby the

3-12     district will provide investigatory or other services as to the

3-13     hospital, ancillary health care, or welfare needs of the

3-14     inhabitants of the district and shall be authorized to provide

3-15     health care services [contract with any county or incorporated

3-16     municipality located] outside its boundaries for the care and

3-17     treatment of the sick, diseased, or injured persons of any

3-18     jurisdiction [such county or municipality], and shall have the

3-19     authority to contract with the State of Texas, another state, or a

3-20     political subdivision of this or another state, or agencies of the

3-21     federal government for the treatment of sick, diseased, or injured

3-22     persons.

3-23           (b)  The board of directors may defend or indemnify an

3-24     officer, director, board appointee, medical staff member, or

3-25     district employee against or for liability, claims, or expenses

3-26     that arise from the performance of a duty in the person's

3-27     respective capacity as an officer, director, board appointee,

3-28     medical staff member, or employee of the district, including the

3-29     performance of a duty at a district facility.  The board of

3-30     directors may purchase and maintain liability insurance coverage or

3-31     establish a self-insurance program to fund indemnification under

3-32     this section.

3-33           SECTION 4.  Section 6, Chapter 872, Acts of the 62nd

3-34     Legislature, Regular Session, 1971, is amended to read as follows:

3-35           Sec. 6.  The district shall be operated on the basis of a

3-36     fiscal year as established from time to time by the board of

3-37     directors of the district, provided such fiscal year shall not be

3-38     changed more often than once in any 24-month period.  The board

3-39     shall cause an independent audit to be made of the financial

3-40     condition of the district, which, together with other records of

3-41     the district, shall be open to inspection at the principal office

3-42     of the district, such audit to be made covering such fiscal year,

3-43     and the same shall be filed at the office of the district as soon

3-44     as it is completed.  The district administrator or manager shall

3-45     prepare an annual budget for approval by the board of directors.

3-46     The budget shall also contain a complete financial statement of the

3-47     district showing all outstanding obligations of the district, the

3-48     cash on hand to the credit of each and every fund of the district,

3-49     the funds received from all sources during the previous year, the

3-50     funds available from all sources during the ensuing year, with

3-51     balances expected at year end of the year in which the budget is

3-52     being prepared, and estimated revenues and balances available to

3-53     cover the proposed budget and the estimated tax rate which will be

3-54     required, and the proposed expenditures and disbursements and the

3-55     estimated receipts and collections for the following fiscal year.

3-56     A public hearing on the annual budget shall be held by the board of

3-57     directors after notice of such hearing has been published one time

3-58     at least 10 days before the date set therefor.  Notice of the

3-59     budget hearing shall be published in a newspaper or newspapers

3-60     which individually or collectively provide general circulation in

3-61     the hospital district.  Any property taxpayer of the district shall

3-62     have the right to be present and participate in said hearing within

3-63     such rules of decorum and procedures as may be prescribed by the

3-64     board.  At the conclusion of the hearing, the budget, as proposed

3-65     by the district administrator or manager, shall be acted upon by

3-66     the board of directors.  The board of directors shall have

3-67     authority to make such changes in the budget as in their judgment

3-68     the law warrants and the interest of the taxpayers demands.  No

3-69     expenditure may be made for any expense not included in the annual

 4-1     budget or an amendment thereto.  The annual budget may be amended

 4-2     from time to time as the circumstances may require, but the annual

 4-3     budget, and all amendments thereto, shall be approved by the board

 4-4     of directors.  As soon as practicable after the close of each

 4-5     fiscal year, the district administrator or manager shall prepare

 4-6     for the board a full sworn statement of all moneys belonging to the

 4-7     district and a full account of the disbursement of same.

 4-8           SECTION 5.  Section 7, Chapter 872, Acts of the 62nd

 4-9     Legislature, Regular Session, 1971, is amended to read as follows:

4-10           Sec. 7.  The board of directors shall have the power and

4-11     authority to issue and sell its bonds in the name and upon the

4-12     faith and credit of such hospital district for the purchase,

4-13     construction, acquisition, repair, or renovation of buildings and

4-14     improvements and equipping the same for hospital and ancillary

4-15     health care purposes, and for any or all of such purposes.  At the

4-16     time of the issuance of any bonds by the district a tax shall be

4-17     levied by the board sufficient to create an interest and sinking

4-18     fund to pay the interest on and principal of said bonds as same

4-19     mature, providing such tax together with any other taxes levied for

4-20     said district shall not exceed the rate of tax voted under the

4-21     provisions of Section 3 of this Act.  Except as provided in Section

4-22     8, no bonds shall be issued by such hospital district until

4-23     authorized by a majority of the electors of the district voting at

4-24     an election called for such purpose.  The order for bond election

4-25     shall specify the date of the election, the amount of bonds to be

4-26     authorized, the maximum maturity thereof, the maximum rate of

4-27     interest they are to bear, the place or places where the election

4-28     shall be held, the presiding judge and alternate judge for each

4-29     voting place and provide for clerks as in county elections.  Notice

4-30     of any bond election shall be given as provided in Article 704,

4-31     Revised [Civil] Statutes [of Texas, 1925, as amended], and shall be

4-32     conducted in accordance with the general laws of Texas pertaining

4-33     to general elections, except as modified by the provisions of this

4-34     Act.

4-35           SECTION 6.  Section 8(b), Chapter 872, Acts of the 62nd

4-36     Legislature, Regular Session, 1971, is amended to read as follows:

4-37           (b)  In addition to the power to issue bonds payable from

4-38     taxes levied by the district, as contemplated by the preceding

4-39     section, the board of directors is further authorized to issue and

4-40     to refund any previously issued revenue bonds for purchasing,

4-41     constructing, acquiring, repairing, equipping, or renovating

4-42     buildings and improvements for hospital or ancillary health care

4-43     purposes, and for acquiring sites therefor, such bonds to be

4-44     payable from and secured by a pledge of all or any part of the

4-45     revenues of the district to be derived from the operation of its

4-46     hospital, [or] hospitals, or ancillary health care facilities, and

4-47     such bonds may be additionally secured by a mortgage or deed of

4-48     trust lien on any part or all of its properties.  Such bonds shall

4-49     be issued in the manner and in accordance with the procedures and

4-50     requirements specified for the issuance of revenue bonds by county

4-51     hospital authorities in Sections 264.042, 264.043, 264.046,

4-52     264.047, 264.048, and 264.049, Health and Safety Code [Sections 8,

4-53     10, 11, 12 and 13, Chapter 122, Acts of the 58th Legislature, 1963

4-54     (Article 4494r, Vernon's Texas Civil Statutes)].

4-55           SECTION 7.  Chapter 872, Acts of the 62nd Legislature,

4-56     Regular Session, 1971, is amended by adding Section 8A to read as

4-57     follows:

4-58           Sec. 8A.  The district may issue, sell, and deliver

4-59     obligations of the district and execute corresponding credit

4-60     agreements in the manner provided by Chapter 656, Acts of the 68th

4-61     Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas

4-62     Civil Statutes), and the Bond Procedures Act of 1981 (Article

4-63     717k-6, Vernon's Texas Civil Statutes).

4-64           SECTION 8.  Section 9, Chapter 872, Acts of the 62nd

4-65     Legislature, Regular Session, 1971, is amended to read as follows:

4-66           Sec. 9.  The board of directors is hereby given complete

4-67     discretion as to the type of buildings, both as to number and

4-68     location, either inside or outside the district, required to

4-69     establish and maintain an adequate hospital system and ancillary

 5-1     health care services system.  The hospital and ancillary health

 5-2     care services systems [system] may include facilities and equipment

 5-3     to provide for domiciliary care and treatment of the sick, wounded,

 5-4     and injured, [facilities for] outpatient [clinic or] clinics,

 5-5     dispensaries, [facilities for] geriatric domiciliary care,

 5-6     convalescent home facilities, physicians' offices, home health

 5-7     services, durable medical equipment, long-term care, skilled

 5-8     nursing care, intermediate nursing care, hospice care, ambulatory

 5-9     surgery centers, urgent care facilities, rural health clinics,

5-10     operation of a mobile emergency medical service, necessary nurses'

5-11     domiciliaries and training centers, blood banks, and research

5-12     centers or laboratories, and any other facilities or equipment

5-13     deemed necessary for the provision of hospital and ancillary health

5-14     care services [care] by the directors.  The district, through its

5-15     board of directors, is further authorized to enter into an

5-16     operating or management contract with a public or private entity

5-17     with regard to any part or all of its facilities, equipment, or

5-18     services.  The board [or a part thereof, or] may lease all or part

5-19     of its buildings, [and] facilities, or equipment upon terms and

5-20     conditions considered to be in [to] the best interest of its

5-21     inhabitants, provided that in no event shall any lease be for a

5-22     period in excess of 25 years from the date on which the lease is

5-23     made [entered].  The district shall be empowered to sell, lease, or

5-24     otherwise dispose of any real or personal property or equipment of

5-25     any nature upon terms and conditions found by the board to be in

5-26     the best interest of the district's [its] inhabitants, provided,

5-27     however, that in no event shall the board be authorized to sell or

5-28     dispose of any real property unless the board affirmatively finds

5-29     that the sale, lease, or disposition of the property is in the best

5-30     interests of the district's inhabitants [the same is not needed for

5-31     the operation of the hospital system].

5-32           SECTION 9.  Section 10, Chapter 872, Acts of the 62nd

5-33     Legislature, Regular Session, 1971, is amended to read as follows:

5-34           Sec. 10.  The board of directors of such district shall have

5-35     the power to prescribe the method and manner of making purchases

5-36     and expenditures by and for such hospital district, and shall also

5-37     be authorized to prescribe all accounting and control procedures.

5-38     All contracts for construction [or purchases] involving the

5-39     expenditure of more than $10,000 [$2,000] may be made only after

5-40     advertising in the manner provided by Chapter 252, Local Government

5-41     Code, Section 286.078, Health and Safety Code, or Subchapter B,

5-42     Chapter 271, Local Government Code [163, Acts of the 42nd

5-43     Legislature, Regular Session, 1931, as amended (Article 2368a,

5-44     Vernon's Texas Civil Statutes)].  The provisions of Chapter 2253,

5-45     Government Code [Article 5160, Revised Civil Statutes of Texas,

5-46     1925, as amended], relating to performance and payment bonds, shall

5-47     apply to construction contracts let by the district.  The district

5-48     may acquire by purchase, lease, or lease to purchase equipment for

5-49     use in its hospital system and mortgage or pledge the property so

5-50     acquired as security for the payment of the purchase or lease

5-51     price, but any such contract shall provide for the entire

5-52     obligation of the district to be retired within five years from the

5-53     date of the contract.  Except as permitted in the preceding

5-54     sentence and as permitted by Sections 7, [and] 8, 10A, and 15(d) of

5-55     this Act, the district may incur no obligation payable from any

5-56     revenues of the district, taxes or otherwise, except those on hand

5-57     or to be on hand within the then current and following fiscal year

5-58     of the district.

5-59           SECTION 10.  Chapter 872, Acts of the 62nd Legislature,

5-60     Regular Session, 1971, is amended by adding Section 10A to read as

5-61     follows:

5-62           Sec. 10A.  (a)  The board of directors may spend district

5-63     funds, enter into agreements, and take other necessary action to

5-64     recruit physicians, ancillary and allied health professionals, and

5-65     other persons to serve on the district's medical staff or for

5-66     employment with the district, including:

5-67                 (1)  advertising and marketing;

5-68                 (2)  paying travel, recruitment, and relocation

5-69     expenses;

 6-1                 (3)  providing a loan or scholarship to a physician or

 6-2     other person enrolled in health care education courses at an

 6-3     institution of higher education who contractually agrees to become

 6-4     a district employee or medical staff member; and

 6-5                 (4)  providing office space without the payment of rent

 6-6     for the space or subsidizing office space or other facilities for a

 6-7     health care professional, including a physician.

 6-8           (b)  The board of directors may spend district funds, enter

 6-9     into agreements, and take other necessary action to conduct,

6-10     participate in, or otherwise assist in providing health care and

6-11     professional educational, development, or retraining programs for

6-12     medical staff members or employees of the district or prospective

6-13     medical staff members or employees.

6-14           (c)  The board of directors may spend district funds, enter

6-15     into agreements, acquire by lease, purchase, or lease to purchase

6-16     facilities, supplies, and equipment, and take any other action to

6-17     provide day-care services for the medical staff members, allied

6-18     health professionals, officers, directors, and employees of the

6-19     district.  As space permits, the district may also provide day-care

6-20     services to residents of the district.

6-21           SECTION 11.  Section 11, Chapter 872, Acts of the 62nd

6-22     Legislature, Regular Session, 1971, is amended to read as follows:

6-23           Sec. 11.  The board of directors of the district shall name

6-24     one or more banks within, without (either or both), its boundaries

6-25     to serve as a depository for the funds of the district.  All funds

6-26     of the district, except those invested as provided in Section 5 of

6-27     this Act, and those transmitted to a bank or banks of payment for

6-28     bonds or obligations issued or assumed by the district, shall be

6-29     deposited as received with the depository bank and shall remain on

6-30     deposit, provided that nothing herein shall limit the power of the

6-31     board to place a portion of such funds on time deposit or purchase

6-32     certificates of deposit or make other investments as authorized by

6-33     Chapter 2256, Government Code.

6-34           SECTION 12.  Section 14, Chapter 872, Acts of the 62nd

6-35     Legislature, Regular Session, 1971, is amended to read as follows:

6-36           Sec. 14.  The district shall have the right and power of

6-37     eminent domain for the purpose of acquiring by condemnation any and

6-38     all property of any kind and character in fee simple, or any lesser

6-39     interest therein, within the boundaries of the district necessary

6-40     to the powers, rights, and privileges conferred by this Act, in the

6-41     manner provided by the general law with respect to condemnation by

6-42     counties, provided that the district shall not be required to make

6-43     deposits in the registry of the trial court of the sum required by

6-44     Section 21.021, Property Code [Paragraph 2, Article 3268, Revised

6-45     Civil Statutes of Texas, 1925, as amended], or to make bond as

6-46     therein provided.  In condemnation proceedings being prosecuted by

6-47     the district, the district shall not be required to pay in advance

6-48     or give bond or other security for costs in the trial court, nor to

6-49     give any bond otherwise required for the issuance of a temporary

6-50     restraining order or a temporary injunction nor to give bond for

6-51     costs or for supersedeas on any appeal or writ of error.

6-52           SECTION 13.  Section 15, Chapter 872, Acts of the 62nd

6-53     Legislature, Regular Session, 1971, is amended to read as follows:

6-54           Sec. 15.  (a)  The directors shall have the authority to levy

6-55     taxes for the entire year in which the district is established as

6-56     the result of the election herein provided.  [All taxes of the

6-57     district shall be assessed and collected on county tax values as

6-58     provided in Subsection (b) of this section hereof unless the

6-59     directors, by majority vote, elect to have taxes assessed and

6-60     collected by its own tax assessor-collector under Subsection (c) of

6-61     this section hereof.  Any such election may be made prior to

6-62     December 1 annually and shall govern the manner in which taxes are

6-63     thereafter assessed and collected, until changed by a similar

6-64     resolution.]  Hospital district tax shall be levied upon all

6-65     taxable property within said district subject to hospital district

6-66     taxation.

6-67           (b)  The Tax Code governs the appraisal, assessment, and

6-68     collection of district taxes [Under this subsection, district taxes

6-69     shall be assessed and collected on county tax values in the same

 7-1     manner as provided by law with relation to county taxes.  The tax

 7-2     assessor-collector of the county in which said district is situated

 7-3     shall be charged and required to accomplish the assessment and

 7-4     collection of all taxes levied by and on behalf of the district.

 7-5     The assessor-collector of taxes shall charge and deduct from

 7-6     payments to the hospital district an amount as fees for assessing

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

 7-8     the amounts collected as may be determined by contract between the

 7-9     county and the district, but in no event shall the amount paid

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

7-11     deposited in the officers' salary fund of the county and reported

7-12     as fees of office of the county tax assessor-collector.  Interest

7-13     and penalties on taxes paid to the hospital district shall be the

7-14     same as in the case of county taxes.  Discounts shall be the same

7-15     as allowed by the county.  The residue of tax collections after

7-16     deductions of discounts and fees for assessing and collecting shall

7-17     be deposited in the district's depository.  The bond of the county

7-18     tax assessor-collector shall stand as security for the proper

7-19     performance of his duties as assessor-collector of the district;

7-20     or, if in the judgment of the district board of directors it is

7-21     necessary, additional bond payable to the district may be required.

7-22     In all matters pertaining to the assessment, collection, and

7-23     enforcement of taxes for the district, the county tax

7-24     assessor-collector shall be authorized to act in all respects

7-25     according to the laws of the State of Texas relating to state and

7-26     county taxes].

7-27           (c)  The board may provide for the appointment of a tax

7-28     assessor-collector for the district or may contract for the

7-29     assessment and collection of taxes as provided by the Tax Code

7-30     [Under this subsection, taxes shall be assessed and collected by a

7-31     tax assessor-collector appointed by the directors, who shall also

7-32     fix the terms of his employment, compensation, and requirement for

7-33     bond to assure the faithful performance of his duties, but in no

7-34     event shall such bond be for less than $5,000.  The directors shall

7-35     also annually appoint five persons to serve as a board of

7-36     equalization and shall fix their compensation.  Each member of the

7-37     board and the tax assessor shall be residents of the district and

7-38     own real property subject to hospital district taxation, and each

7-39     shall have the same duties, including the obligation to execute the

7-40     oath of office, as required by county officials exercising such

7-41     powers and duties.  Except as in this Act provided to the contrary,

7-42     all the provisions of Title 122, Revised Civil Statutes of Texas,

7-43     1925, as amended, shall apply to the district].

7-44           (d)  The district may borrow money to pay the district's

7-45     operating expenses in an amount not to exceed the amount of taxes

7-46     or other revenues the district expects to receive during the fiscal

7-47     year in which the money is borrowed.  The district may pledge all

7-48     or part of the taxes or other revenues received during that fiscal

7-49     year to repay the indebtedness.

7-50           SECTION 14.  Section 17, Chapter 872, Acts of the 62nd

7-51     Legislature, Regular Session, 1971, is amended to read as follows:

7-52           Sec. 17.  Whenever a patient [residing within the district]

7-53     has been admitted to the facilities of the district [thereof], the

7-54     district administrator or manager may cause inquiry to be made as

7-55     to the patient's [his] circumstances and those of the relatives of

7-56     such patient legally liable for the patient's [his] support.  If

7-57     the district administrator [he] finds that such patient or said

7-58     relatives are able to pay for the [his] care and treatment provided

7-59     by the district to the patient in whole or in part, an order shall

7-60     be made directing such patient or said relatives to pay the

7-61     hospital district for the care and support of such patient a

7-62     specified sum per week in proportion to their financial ability.

7-63     The district administrator or manager shall have power and

7-64     authority to collect such sums from the estate of the patient or

7-65     the patient's [his] relatives legally liable for the patient's

7-66     [his] support in the manner provided by law for collection of

7-67     expenses in the last illness of a deceased person.  If the district

7-68     administrator or manager finds that such patient or said relatives

7-69     are not able to pay either in whole or in part for the [his] care

 8-1     and treatment provided to the patient by the district and that

 8-2     payment is not available from any other source [in such hospital],

 8-3     same shall become a charge upon the hospital district as to the

 8-4     amount of the inability to pay.  Should there be any dispute as to

 8-5     the ability to pay or doubt in the mind of the district

 8-6     administrator or manager, the board of directors shall hear and

 8-7     determine the patient's ability to pay [same] after calling

 8-8     witnesses, and shall make such order or orders as may be proper.

 8-9     Appeals from the final order of the board shall lie to the district

8-10     court.  The substantial evidence rule shall apply.

8-11           SECTION 15.  Section 18, Chapter 872, Acts of the 62nd

8-12     Legislature, Regular Session, 1971, is amended to read as follows:

8-13           Sec. 18.  The board of directors of the hospital district is

8-14     authorized on behalf of the [such] district to accept donations,

8-15     gifts, and endowments, in addition to those heretofore made to

8-16     Hansford County for hospital and ancillary health care purposes, to

8-17     be held in trust and administered by the board of directors for

8-18     such purposes and under such directions, limitations, and

8-19     provisions as may be prescribed in writing by the donor not

8-20     inconsistent with proper management and objective of the hospital

8-21     district.

8-22           SECTION 16.  Section 19, Chapter 872, Acts of the 62nd

8-23     Legislature, Regular Session, 1971, is amended to read as follows:

8-24           Sec. 19.  After creation of the hospital district, no

8-25     municipality or political subdivision within the boundaries of the

8-26     district shall have the power to levy taxes or issue bonds or other

8-27     obligations for hospital purposes or for providing medical care.

8-28     The said hospital district shall assume full responsibility for

8-29     providing hospital services [care] for the indigents residing

8-30     within the district.  The hospital district may assume full

8-31     responsibility for providing ancillary health care services for the

8-32     indigent residents of the district and may operate or provide for

8-33     the operation of a mobile emergency medical service.  When the

8-34     district is created and established, the county and all towns and

8-35     cities located therein shall convey and transfer to the district

8-36     title to all lands, buildings, improvements and equipment in

8-37     anywise pertaining to a hospital or hospital system which may be

8-38     jointly or separately owned by the county or any city or town

8-39     within said district.  Operating funds and reserves for operating

8-40     expenses which are on hand and funds which have been budgeted for

8-41     hospital purposes by the county or any city or town therein for the

8-42     remainder of the fiscal year in which the district is established

8-43     shall likewise be transferred to said district, as shall taxes

8-44     theretofore levied for hospital purposes for the current year and

8-45     all sinking funds established for payment of indebtedness assumed

8-46     by the district.

8-47           SECTION 17.  This Act takes effect September 1, 1997.

8-48           SECTION 18.  The importance of this legislation and the

8-49     crowded condition of the calendars in both houses create an

8-50     emergency and an imperative public necessity that the

8-51     constitutional rule requiring bills to be read on three several

8-52     days in each house be suspended, and this rule is hereby suspended.

8-53                                  * * * * *