AN ACT
1-1 relating to the operation of the Tyler County Hospital District.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Chapter 110, Acts of the 58th Legislature, 1963,
1-4 is amended by amending Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
1-5 15, and 17 and adding Sections 21 and 22 to read as follows:
1-6 Sec. 2. The District shall provide for the establishment,
1-7 administration, maintenance, operation, and financing of a hospital
1-8 or hospital system within its boundaries and may provide any
1-9 services or facilities necessary for hospital or medical care,
1-10 including rural health clinics, outpatient clinics, nursing homes,
1-11 home health care agencies, extended care facilities, assisted
1-12 living or personal care facilities, retirement, housing, and
1-13 medical office buildings. The District [That said District hereby
1-14 provided for] shall assume full responsibility for providing
1-15 medical and hospital care for the needy residing within the
1-16 District; provided, however, that such Hospital District shall not
1-17 be created unless and until an election is duly held in the County
1-18 for such purpose, which said election may be initiated by the
1-19 Commissioners Court upon its own motion or upon a petition of fifty
1-20 (50) resident qualified [property taxpaying] voters, to be held not
1-21 less than thirty (30) days from the time said election is ordered
1-22 by the Commissioners Court. At such election, there shall be
1-23 submitted to the qualified property taxpaying voters the
2-1 proposition of whether or not a Hospital District shall be created
2-2 in the County; and a majority of the qualified property taxpaying
2-3 electors participating in said election voting in favor of the
2-4 proposition shall be necessary. The ballots for said election
2-5 shall have printed thereon:
2-6 "FOR the creation of a Hospital District; providing for the
2-7 levy of a tax not to exceed seventy-five cents (75 ) on the One
2-8 Hundred Dollar valuation; and providing for the assumption by such
2-9 District of all outstanding bonds heretofore issued by Tyler County
2-10 for hospital purposes"; and
2-11 "AGAINST the creation of a Hospital District; providing for
2-12 the levy of a tax not to exceed seventy-five cents (75 ) on the One
2-13 Hundred Dollar valuation; and providing for the assumption by such
2-14 District of all outstanding bonds heretofore issued by Tyler County
2-15 for hospital purposes."
2-16 Sec. 3. The Commissioners Court of the County shall have the
2-17 power and authority, and it shall be its duty, to levy on all
2-18 property subject to hospital district taxation, for the benefit of
2-19 the District at the same time taxes are levied for county purposes,
2-20 using the county values and the county tax roll, a tax of not to
2-21 exceed seventy-five cents (75 ) on the One Hundred Dollar valuation
2-22 of all taxable property within the Hospital District, for the
2-23 purpose of (1) paying the interest on and creating a sinking fund
2-24 for bonds which may have been assumed or which may be issued by the
2-25 Hospital District for hospital purposes as herein provided;
3-1 (2) providing for the operation and maintenance of the hospital or
3-2 hospital system; and (3) when requested by the Board of Hospital
3-3 Managers of the Hospital District and approved by the Commissioners
3-4 Court, for the purpose of making further improvements and additions
3-5 to the hospital system, and for the acquisition of necessary sites
3-6 therefor, by purchase, lease or condemnation.
3-7 [The tax so levied shall be collected on all property subject
3-8 to Hospital District taxation by the Assessor and Collector of
3-9 Taxes for the County on the county tax values, and in the same
3-10 manner and under the same conditions as county taxes. The Assessor
3-11 and Collector of Taxes shall charge and deduct from payments to the
3-12 Hospital District the fees for assessing and collecting the tax at
3-13 the rate of not exceeding two per cent (2%) of the amounts
3-14 collected as may be determined by the Commissioners Court. Such
3-15 fees shall be deposited in the County's General Fund, and shall be
3-16 reported as fees of office of the Tax Assessor and Collector.
3-17 Interest and penalties on taxes paid to the Hospital District shall
3-18 be the same as in the case of county taxes. Discounts shall be the
3-19 same as for county taxes. The residue of tax collections, after
3-20 deduction of discounts and fees for assessing and collecting, shall
3-21 be deposited in the District depository; and such funds shall be
3-22 withdrawn only as provided herein. All other income of the
3-23 Hospital District shall be deposited in like manner with the
3-24 District depository. Warrants against the Hospital District funds
3-25 shall not require the signature of the County Clerk.]
4-1 The Commissioners Court shall have the authority to levy the
4-2 tax aforesaid for the entire year in which the said Hospital
4-3 District is established, for the purpose of securing funds to
4-4 initiate the operation of the Hospital District, and to pay assumed
4-5 bonds.
4-6 Before September 1 of each year, the Board shall publish
4-7 notice of tax rates, give notice of and conduct a public hearing as
4-8 required by Chapter 26, Tax Code, and enter an order levying taxes
4-9 on all property in the District subject to District taxation.
4-10 Sec. 4. (a) The Commissioners Court shall have the power
4-11 and authority to issue and sell as the general obligations of such
4-12 Hospital District, bonds for the purchase, construction,
4-13 acquisition, repair or renovation of buildings and improvements
4-14 and equipping same, for the acquisition or operation of a mobile
4-15 emergency medical service, for hospital purposes, and for any or
4-16 all of such purposes; provided, that a sufficient tax shall be
4-17 levied to create an interest and sinking fund to pay the interest
4-18 and principal as the bonds mature [same matures] provided said tax
4-19 together with any other taxes levied for said District shall not
4-20 exceed seventy-five cents (75 ) in any one year. Such bonds shall
4-21 be executed in the name of the Hospital District and on its behalf
4-22 by the County Judge of the County, and countersigned by the County
4-23 Clerk, and shall be subject to the same requirements in the matter
4-24 of approval thereof by the Attorney General of the State of Texas
4-25 and the registration thereof by the Comptroller of Public Accounts
5-1 of the State of Texas as are by law provided for such approval and
5-2 registration of bonds of such County; and the approval of such
5-3 bonds by the Attorney General shall have the same force and effect
5-4 as is by law given to the Attorney General's [his] approval of
5-5 bonds of the County. No bonds shall be issued by such Hospital
5-6 District (except refunding bonds) until authorized by a majority
5-7 vote of the [legally] qualified [property taxpaying] voters
5-8 residing in such Hospital District voting at an election called and
5-9 held in accordance with the provisions of Chapter 1, Title 22, of
5-10 the Revised Civil Statutes of the State of Texas, 1925, as amended,
5-11 relating to county bonds. Such election may be called by the
5-12 Commissioners Court on its own motion, or shall be called by it
5-13 after request therefor by the Board of Hospital Managers of the
5-14 District; and the same persons shall be responsible for the conduct
5-15 of such election and arrangement of all details thereof as the
5-16 persons charged therewith in connection with other county-wide
5-17 elections. The cost of any such election shall be a charge upon
5-18 the Hospital District and its funds; and the Hospital District
5-19 shall make provision for the payment thereof before the
5-20 Commissioners Court shall be required to order such an election.
5-21 (b) The District may issue [In the manner hereinabove
5-22 provided, the] bonds [of such Hospital District may, without the
5-23 necessity of any election therefor, be issued] for the purpose of
5-24 refunding and paying off any bonded indebtedness theretofore
5-25 assumed by the Hospital District and any bonds theretofore issued
6-1 by the Hospital District. In issuing the bonds, the District shall
6-2 comply with Chapter 784, Acts of the 61st Legislature, Regular
6-3 Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes).
6-4 The[; such] refunding bonds may be sold and the proceeds thereof
6-5 applied to the payment of any such outstanding bonds or may be
6-6 exchanged in whole or in part for not less than a similar [like]
6-7 amount of said outstanding indebtedness. In selling the refunding
6-8 bonds and applying the proceeds to the payment of outstanding
6-9 indebtedness, the District shall comply with Chapter 503, Acts of
6-10 the 54th Legislature, 1955 (Article 717k, Vernon's Texas Civil
6-11 Statutes) [bonds and interest matured thereon, but unpaid; provided
6-12 the average interest cost per annum on the refunding bonds,
6-13 computed in accordance with the recognized standard bond interest
6-14 cost tables, shall not exceed the average interest cost per annum
6-15 so computed upon the bonds to be discharged out of the proceeds of
6-16 the refunding bonds, unless the total interest cost on the
6-17 refunding bonds, computed to their respective maturity dates, is
6-18 less than the total interest cost so computed on the bonds to be
6-19 discharged out of such proceeds. In the foregoing computations,
6-20 any premium or premiums required to be paid upon the bonds to be
6-21 refunded as a condition to payment in advance of their stated
6-22 maturity dates shall be taken into account as an addition to the
6-23 net interest cost to the Hospital District of the refunding bonds].
6-24 (c) The District may issue revenue bonds to purchase,
6-25 construct, repair, renovate, and acquire buildings and improvements
7-1 and to equip buildings and improvements for the hospital and the
7-2 hospital system, to acquire sites for hospital purposes, and to
7-3 acquire and operate a mobile emergency medical service to assist
7-4 the District in carrying out its purposes. The bonds must be
7-5 payable from and secured by a pledge of all or part of the revenues
7-6 derived from the operation of the District's hospital system. The
7-7 bonds may also be secured by a mortgage or deed of trust lien on
7-8 all or part of the District property. The District shall issue
7-9 revenue bonds in accordance with Sections 264.042, 264.043,
7-10 264.046, 264.047, 264.048, and 264.049, Health and Safety Code.
7-11 (d) The President of the Board shall execute the bonds in
7-12 the name of the District, and the Secretary of the Board shall
7-13 countersign the bonds in the manner provided by the Texas Uniform
7-14 Facsimile Signature of Public Officials Act (Article 717j-1,
7-15 Vernon's Texas Civil Statutes).
7-16 (e) Because the District is a public entity performing an
7-17 essential public function, bonds issued by the District, any
7-18 transaction relating to the bonds, and profits made in the sale of
7-19 the bonds are free from taxation by the state or by any
7-20 municipality, county, special district, or political subdivision of
7-21 the state.
7-22 (f) The District may not impose taxes to pay the principal
7-23 of or interest on revenue bonds. The Tax Code governs the
7-24 appraisal, assessment, and collection of District taxes. The Board
7-25 may provide for the appointment of a tax assessor-collector for the
8-1 District or may contract for the assessment and collection of taxes
8-2 as provided by the Tax Code.
8-3 (g) District bonds must mature not later than 40 years after
8-4 the date of their issuance and must bear interest at a rate not to
8-5 exceed that provided by Chapter 3, Acts of the 61st Legislature,
8-6 Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
8-7 Statutes).
8-8 Sec. 5. Any lands, buildings or equipment that may be owned
8-9 by the County, and by which medical services or hospital care,
8-10 including geriatric care, are furnished to the indigent or needy
8-11 persons of the County, shall become the property of the Hospital
8-12 District; and title thereto shall vest in the Hospital District;
8-13 and any funds of the County which are the proceeds of any bonds
8-14 assumed by the Hospital District, as hereby provided, shall become
8-15 the funds of the Hospital District; and title thereto shall vest in
8-16 the Hospital District; and there shall vest in the Hospital
8-17 District and become the funds of the Hospital District the unspent
8-18 portions of any funds theretofore set up or appropriated by budget
8-19 or otherwise by the County for the support and maintenance of the
8-20 hospital facilities for the year within which the Hospital District
8-21 comes into existence, thereby providing such Hospital District with
8-22 funds with which to maintain and operate such facilities for the
8-23 remainder of such year. All obligations under contract legally
8-24 incurred by the County for the building of, or the support and
8-25 maintenance of, hospital facilities, prior to the creation of the
9-1 said District but outstanding at the time of the creation of the
9-2 District, shall be assumed and discharged by it without prejudice
9-3 to the rights of third parties, provided that the management and
9-4 control of the property and affairs of the present hospital system
9-5 shall continue in the Board of Managers of the present hospital
9-6 system until appointment and organization of the Board of Hospital
9-7 Managers of the Hospital District, at which time the Board of
9-8 Managers of the present hospital system shall turn over all
9-9 records, property and affairs of said hospital system to the Board
9-10 of Hospital Managers of the Hospital District.
9-11 Any outstanding bonded indebtedness incurred by the County in
9-12 the acquisition of such lands, buildings and equipment, or in the
9-13 construction and equipping of such hospital facilities, together
9-14 with any other outstanding bonds issued by the County for hospital
9-15 purposes, and the proceeds of which are in whole or in part still
9-16 unspent, shall be assumed by the Hospital District and become the
9-17 obligation of the Hospital District; and the County shall be by the
9-18 Hospital District relieved of any further liability for the payment
9-19 thereof, or for providing interest and sinking fund requirements
9-20 thereon; provided that nothing herein contained shall limit or
9-21 affect any of the rights of any of the holders of such bonds
9-22 against the payment of the principal or interest on any of such
9-23 bonds in accordance with their respective terms.
9-24 The Commissioners Court, as soon as the Hospital District is
9-25 created and authorized at the election hereinabove provided, and
10-1 there have been appointed and qualified the Board of Hospital
10-2 Managers hereinafter provided for, shall execute and deliver to the
10-3 Hospital District, to wit: to its said Board of Hospital Managers,
10-4 an instrument in writing conveying to said Hospital District the
10-5 hospital property, including lands, buildings and equipment; and
10-6 shall transfer to said Hospital District the funds hereinabove
10-7 provided to become vested in the Hospital District, upon being
10-8 furnished the certificate of the President [Chairman] of the Board
10-9 to the fact that a depository for the District's funds has been
10-10 selected and has qualified; which funds shall, in the hands of the
10-11 Hospital District and of its Board of Hospital Managers, be used
10-12 for all or any of the same purposes as, and for no other purposes
10-13 than, the purposes for which the County could lawfully have used
10-14 the same had they remained the property and funds of such County.
10-15 Sec. 6. (a) The Commissioners Court shall appoint a Board
10-16 of Hospital Managers, consisting of six (6) members, who shall
10-17 serve for a term of two (2) years, with overlapping terms if
10-18 desired, and with initial appointments to terms of office arranged
10-19 accordingly, and provided that the County Judge of the County shall
10-20 be an ex officio member of said Board of Hospital Managers. To
10-21 serve as a Hospital Manager, a person must be a resident and
10-22 qualified voter of the District. An employee of the District may
10-23 not serve as a Hospital Manager. Failure of any member of the
10-24 Board of Hospital Managers to attend three (3) consecutive regular
10-25 meetings of the Board shall cause a vacancy in his office, unless
11-1 such absence is excused by formal action of the Board. The
11-2 Commissioners Court shall fill a vacancy by appointment. The Board
11-3 of Hospital Managers shall serve without compensation, but may be
11-4 reimbursed for their actual and necessary traveling and other
11-5 expenses incurred in the performance of their duties as determined
11-6 by the Board of Hospital Managers. Expenses reimbursed under this
11-7 section must be reported in the District's minute book or other
11-8 District records. The duties of the Board of Hospital Managers
11-9 shall be to manage, control and administer the hospital and [or]
11-10 hospital system and the business, funds, and resources of the
11-11 Hospital District. The Board of Hospital Managers shall have the
11-12 power and authority to sue and be sued and to promulgate rules and
11-13 regulations for the operation of the hospital or hospital system.
11-14 (b) The Board may [shall] appoint an Administrator, an
11-15 assistant administrator, and an attorney to serve at the will of
11-16 the Board and to [a general manager, to be known as the
11-17 Administrator of the Hospital District. The Administrator shall
11-18 hold office for a term not exceeding two (2) years and shall]
11-19 receive such compensation as may be fixed by the Board. The Board
11-20 may require that the Administrator [shall be subject to removal at
11-21 any time by the Board. The Administrator shall], before assuming
11-22 the Administrator's [entering into the discharge of his] duties,
11-23 execute a bond payable to the District, in an [the] amount set by
11-24 the Board of not less than Five Thousand Dollars ($5,000) [Ten
11-25 Thousand Dollars ($10,000)], conditioned on faithful performance of
12-1 [that he shall well and faithfully perform] the Administrator's
12-2 duties [required of him], and containing such other conditions as
12-3 the Board may require. The Administrator shall perform all duties
12-4 [which may be] required [of him] by the Board, and shall supervise
12-5 all of the work and activities of the District, and have general
12-6 direction of the affairs of the District, within such limitations
12-7 as may be prescribed by the Board. The Administrator [He] shall be
12-8 a person qualified by training and experience for the position of
12-9 Administrator.
12-10 (c) The Board of Hospital Managers shall have the authority
12-11 to appoint or remove doctors from the staff and to employ such
12-12 employees of every kind and character as may be deemed advisable
12-13 for the efficient operation of the hospital or hospital system[;
12-14 provided that no contract or term of employment shall exceed the
12-15 period of two (2) years]. The Board may delegate to the
12-16 Administrator the authority to hire employees.
12-17 (d) The Board may spend District funds to recruit
12-18 physicians, nurses, and other trained medical personnel. The Board
12-19 may contract with full-time medical students or other health
12-20 occupation students enrolled in good standing in accredited medical
12-21 schools, colleges, or universities to pay a student's tuition or
12-22 other costs of expenses in consideration for the student's
12-23 agreement to serve as an employee or independent contractor of the
12-24 District on terms described in the contract. The Board may provide
12-25 retirement benefits for employees of the District by establishing
13-1 or administering a retirement program or by electing to participate
13-2 in the Texas County and District Retirement System or in any
13-3 statewide retirement system in which the District is eligible to
13-4 participate.
13-5 (e) The Board shall determine the type, number, and location
13-6 of buildings required to establish and maintain an adequate
13-7 hospital system and the type of equipment necessary for hospital
13-8 care. The Board may acquire by purchase or lease property,
13-9 facilities, and equipment for the District to use in the hospital
13-10 system and may mortgage or pledge the property, facilities, or
13-11 equipment acquired as security for the payment of the purchase
13-12 price. The Board may enter into construction contracts for the
13-13 District. Chapter 2253, Government Code, as it relates to
13-14 performance and payment bonds, applies to construction contracts
13-15 let by the District. The Board may enter into operating or
13-16 management contracts relating to hospital facilities. The Board
13-17 may transfer by lease to individuals, companies, corporations, or
13-18 other legal entities or acquire by lease District hospital
13-19 facilities and may sell or otherwise dispose of property,
13-20 facilities, and equipment.
13-21 (f) The Board may bring suit to enforce payment of taxes and
13-22 to foreclose liens to secure the payment of taxes due the District.
13-23 (g) The Board of Hospital Managers, with the approval of the
13-24 Commissioners Court, shall be authorized to contract with any
13-25 county for care and treatment of the county's sick, diseased and
14-1 injured persons, and with the State and agencies of the Federal
14-2 Government for the care and treatment of such persons for whom the
14-3 State and such agencies of the Federal Government are responsible.
14-4 The Board shall seek reimbursement, in the manner provided by
14-5 Chapter 61, Health and Safety Code, from a County, municipality, or
14-6 public hospital located outside the boundaries of the District for
14-7 the District's care for or treatment of a sick, diseased, or
14-8 injured person for whom that County, municipality, or public
14-9 hospital has an obligation to provide care. The Board shall seek
14-10 reimbursement under Article 104.002, Code of Criminal Procedure,
14-11 for the District's care for or treatment of a person who is not a
14-12 resident of the District and who is confined in a County jail
14-13 facility.
14-14 (h) [Further, under the same conditions, the Board of
14-15 Hospital Managers may enter into such contracts with the State and
14-16 Federal Government as may be necessary to establish or continue a
14-17 retirement program for the benefit of its employees.]
14-18 [The Board of Hospital Managers may in addition to retirement
14-19 programs authorized by this Act establish such other retirement
14-20 program for the benefit of its employees as it deems necessary and
14-21 advisable.]
14-22 A majority of the Board of Hospital Managers [present] shall
14-23 constitute a quorum for the transaction of any business. From
14-24 among its members, the Board shall elect [choose] a President
14-25 [Chairman], who shall preside, and a Vice President, who shall
15-1 preside in the President's absence. The Board shall appoint a
15-2 Secretary, who is not required to be a Hospital Manager. Each
15-3 officer serves a one-year term. The Board shall fill a vacancy in
15-4 a Board office for the unexpired term[; or in his absence a
15-5 Chairman pro tem shall preside; and the Administrator or any member
15-6 of the Board may be appointed Secretary. The Board shall require
15-7 the Secretary to keep suitable records of all proceedings of each
15-8 meeting of the Board. Such records shall be read and signed after
15-9 each meeting by the Chairman or the member presiding, and attested
15-10 by the Secretary]. The Board shall have a seal, on which shall be
15-11 engraved the name of the Hospital District; and said seal shall be
15-12 kept by the Secretary and used in authentication of all acts of the
15-13 Board.
15-14 Sec. 7. The Board of Hospital Managers shall have the power
15-15 to prescribe the method and manner of making purchases and
15-16 expenditures by and for such Hospital District, and also shall be
15-17 authorized to prescribe all accounting and control procedures. The
15-18 Board shall cause an annual audit to be made of the financial
15-19 condition [books and records] of the District as soon as
15-20 practicable after the close of each fiscal year, such audit to
15-21 cover such fiscal year, and to be made by an independent public
15-22 accountant. The Hospital District shall pay all salaries and
15-23 expenses necessarily incurred by the Board or any of its officers
15-24 and agents in performing any duties which may be prescribed or
15-25 required under this Section. It shall be the duty of any officer,
16-1 employee or agent of the Board to perform and carry out any
16-2 function or service prescribed by the Board hereunder.
16-3 Sec. 8. The District shall operate on a fiscal year
16-4 established by the Board. The Board may not change the fiscal year
16-5 when revenue bonds are outstanding or more than once in a
16-6 twenty-four-month (24-month) period. [In the event of incapacity,
16-7 absence or inability of the Administrator to discharge any of the
16-8 duties required of him, the Board may designate an assistant to the
16-9 Administrator to discharge any duties or functions required of the
16-10 Administrator. Such assistant or other persons shall give bond and
16-11 have such limitations upon his authority as may be fixed by the
16-12 order of the Board.]
16-13 Sec. 9. (a) Once each year, as soon as practicable after
16-14 the close of the fiscal year, the Administrator of the Hospital
16-15 District shall report to the Board of Hospital Managers and the
16-16 Commissioners Court, a full sworn statement of all moneys and
16-17 choses in action received by such Administrator and how disbursed
16-18 or otherwise disposed of. Such report shall show in detail the
16-19 operations of the District for the year.
16-20 (b) Under the direction of the Board of Hospital Managers,
16-21 the Administrator [he] shall prepare a proposed [an] annual budget
16-22 which shall be approved by the Board of Hospital Managers. The
16-23 Board shall publish notice of a public hearing on the proposed
16-24 budget in a newspaper of general circulation in the District one
16-25 time before the tenth (10th) day preceding the date of the hearing.
17-1 The Board shall adopt a budget based on the proposed budget of the
17-2 Administrator. The budget is effective only after adoption by the
17-3 Board and may be amended on the Board's approval.
17-4 Sec. 10. The Hospital District organized in pursuance of
17-5 this Act shall have the right and power of eminent domain for the
17-6 purpose of acquiring by condemnation any and all property of any
17-7 kind or character, real, personal or mixed, or any interest
17-8 therein, including outright ownership of such property in fee
17-9 simple absolute, within the boundaries of the said District,
17-10 necessary or convenient to the exercise of the rights, powers,
17-11 privileges and functions conferred upon it by this Act, in the
17-12 manner provided by General Law with respect to condemnation;
17-13 provided that the said District shall not be required to make
17-14 deposits in the registry of the trial court of the sum required by
17-15 Section 21.021(a), Property Code [Paragraph numbered 2 in Article
17-16 3268, Vernon's Civil Statutes, 1925], or to make the bond required
17-17 therein. In condemnation proceedings being prosecuted by the said
17-18 District, the District shall not be required to pay in advance or
17-19 give any bond otherwise required for the issuance of a temporary
17-20 restraining order or a temporary injunction relating to a
17-21 condemnation proceeding, nor to give bond for costs or for
17-22 supersedeas or any appeal or writ of error [proceeding to any Court
17-23 of Civil Appeals, or to the Supreme Court].
17-24 Sec. 11. Within thirty (30) days after the appointment of
17-25 the Board of Hospital Managers of the District and each two (2)
18-1 years thereafter the said Board shall select a depository for such
18-2 District to [which shall be one or the same depository theretofore
18-3 selected by the County, such depository shall] secure all funds of
18-4 the District in the manner now provided for the security of county
18-5 funds. The Board may purchase, sell, and invest the District funds
18-6 in investments authorized by Chapter 2256, Government Code.
18-7 Sec. 12. All [The Hospital District established or
18-8 maintained under the provisions of this Act shall be subject to
18-9 inspection by any duly authorized representative of the State Board
18-10 of Health and of the Commissioners Court of the County, and
18-11 resident officers shall admit such representatives into all
18-12 Hospital District facilities and give them access on demand to all]
18-13 records, reports, books, papers, and accounts pertaining to the
18-14 Hospital District shall be made available as required by Chapter
18-15 552, Government Code.
18-16 Sec. 15. (a) The District, without charge, shall provide to
18-17 a patient residing in the District care and treatment for which the
18-18 patient, or a relative of the patient who is legally responsible
18-19 for the patient's support, cannot pay. Not later than the first
18-20 day of each operating year, the District shall adopt an application
18-21 procedure to determine eligibility for assistance, as provided by
18-22 Section 61.053, Health and Safety Code.
18-23 (b) Whenever a patient has been admitted to the facilities
18-24 of the Hospital District from the County, the Administrator shall
18-25 cause inquiry to be made as to the person's [his] financial
19-1 circumstances[,] and the financial circumstances of a relative [the
19-2 relatives] of the [such] patient who is legally responsible
19-3 [liable] for the patient's [his] support. On finding [If he finds]
19-4 that the [such] patient or a relative who is legally responsible
19-5 for the patient's support can pay for all or any part of the [said
19-6 relatives are liable to pay for his] care and treatment provided to
19-7 the patient by the District [in whole or in part], the
19-8 Administrator shall report the finding to the Board and the Board
19-9 shall issue an order [shall be made] directing the [such] patient,
19-10 or the relative [said relatives], to pay to the Hospital District
19-11 for the care of such patient a specified sum per week, in
19-12 proportion to [their] financial ability, but such sum shall not
19-13 exceed the actual per capita cost of maintenance. The
19-14 Administrator shall have power and authority to collect such sum
19-15 from the estate of the patient, or the relative who is [his
19-16 relatives] legally responsible [liable] for the patient's [his]
19-17 support, in the manner provided by law for the collection of
19-18 expenses of the last illness of a deceased person. If the
19-19 Administrator finds that the [such] patient or the relative is
19-20 [said relatives are] not able to pay, either in whole or in part,
19-21 for the patient's [his] care and treatment in the [such] hospital,
19-22 the same shall become a charge upon the Hospital District. Should
19-23 there be a dispute as to the ability to pay, or doubt in the mind
19-24 of the Administrator concerning ability to pay, the County Court
19-25 shall hear and determine same, after calling witnesses, and shall
20-1 make such order as may be proper, from which appeal shall lie to
20-2 the District Court by either party to the dispute.
20-3 Sec. 17. All bonds (including refunding bonds) issued by or
20-4 assumed by the District authorized to be established and created
20-5 under the provisions of this Act shall be and are declared to be
20-6 legal and authorized investments for banks, savings banks, trust
20-7 companies, fiduciaries, savings [building] and loan associations,
20-8 insurance companies, trustees, guardians, and for the sinking funds
20-9 of cities, towns, villages, counties, school districts, or other
20-10 political corporations or subdivisions of the State of Texas; and
20-11 such bonds shall be lawful and sufficient security for deposits to
20-12 the extent of their face value when accompanied by all unmatured
20-13 coupons appurtenant thereto.
20-14 Sec. 21. (a) If the Board of Hospital Managers declares
20-15 that funds are not available to meet lawfully authorized
20-16 obligations of the District and that an emergency exists, the Board
20-17 may borrow money at a rate not to exceed the maximum annual
20-18 percentage rate allowed by law for District obligations at the time
20-19 the loan is made.
20-20 (b) To secure a loan, the Board may pledge:
20-21 (1) revenues of the District that are not pledged to
20-22 pay bonded indebtedness of the District;
20-23 (2) District taxes to be levied by the District in the
20-24 next twelve-month (12-month) period that are not pledged to pay the
20-25 principal of or interest on District bonds; or
21-1 (3) District bonds that have been authorized but not
21-2 sold.
21-3 (c) A loan for which taxes or bonds are pledged must mature
21-4 not later than the first anniversary of the date on which the loan
21-5 is made. A loan for which District revenues are pledged must
21-6 mature not later than the fifth (5th) anniversary of the date on
21-7 which the loan is made.
21-8 (d) The Board may not spend money obtained from a loan under
21-9 this section for any purpose other than the purpose for which the
21-10 Board declared an emergency and, if taxes or bonds are pledged to
21-11 pay the loan, for any purpose other than the purposes for which the
21-12 pledged taxes were levied or the pledged bonds were authorized.
21-13 Sec. 22. (a) The District may be dissolved only if the
21-14 dissolution is approved by a majority of the qualified voters of
21-15 the District voting at an election called and held for that
21-16 purpose.
21-17 (b) The Board may order an election on the question of
21-18 dissolving the District and disposing of the District's assets and
21-19 obligations. The Board shall order an election to be held on the
21-20 question of dissolution of the District if the Board receives a
21-21 petition requesting an election that is signed by at least fifteen
21-22 percent (15%) of the registered voters of the District. The
21-23 election shall be held not later than the sixtieth (60th) day after
21-24 the date the election is ordered. Section 41.001(a), Election
21-25 Code, does not apply to an election ordered under this article.
22-1 The order calling the election must state:
22-2 (1) the nature of the election, including the
22-3 proposition that is to appear on the ballot;
22-4 (2) the date of the election;
22-5 (3) the hours during which the polls will be open; and
22-6 (4) the location of the polling places.
22-7 (c) The Board shall give notice of the election by
22-8 publishing a copy of the election order in a newspaper with general
22-9 circulation in the District once a week for two consecutive weeks.
22-10 The first publication must appear before the thirty-fifth (35th)
22-11 day before the date set for election. The ballot for an election
22-12 at which the dissolution of the District is proposed shall be
22-13 printed to permit voting for or against the proposition: "The
22-14 dissolution of the Tyler County Hospital District."
22-15 (d) If a majority of the voters in the District favor
22-16 dissolution, the Board shall find that the District is dissolved
22-17 and shall transfer the land, buildings, improvements, equipment,
22-18 and other assets that belong to the District to a County or another
22-19 governmental entity in the County in which the District is located
22-20 or administer the property, assets, and debts until all funds have
22-21 been disposed of and all District debts have been paid or settled.
22-22 (e) After the Board finds that the District is dissolved,
22-23 the Board shall:
22-24 (1) determine the debt owed by the District; and
22-25 (2) impose on the property included in the District's
23-1 tax rolls a tax that is in proportion of the debt to the property
23-2 value.
23-3 (f) If the District transfers the land, buildings,
23-4 improvements, equipment, and other assets to a County or other
23-5 governmental entity, the County or entity assumes all debts and
23-6 obligations of the District at the time of the transfer, and the
23-7 District is dissolved.
23-8 (g) If the Board finds that the election results are not
23-9 favorable to the proposition to dissolve the District, another
23-10 dissolution election may not be held before the first anniversary
23-11 of the date of the most recent election to dissolve the District.
23-12 (h) When all outstanding debts and obligations of the
23-13 District are paid, the Board shall order the Secretary to return
23-14 the pro rata share of all unused tax money to each District
23-15 taxpayer. A taxpayer may request that the taxpayer's share of
23-16 surplus tax money be credited to the taxpayer's County taxes. If a
23-17 taxpayer requests the credit, the Board shall direct the Secretary
23-18 to transmit the funds to the County tax assessor-collector.
23-19 (i) After the District has paid all its debts and has
23-20 disposed of all its assets and funds as required by this section,
23-21 the Board shall file a written report with the Commissioners Court
23-22 of Tyler County setting forth a summary of the Board's actions in
23-23 dissolving the District.
23-24 (j) Not later than the tenth (10th) day after the date it
23-25 receives the report and determines that the requirements of this
24-1 section have been fulfilled, the Commissioners Court shall enter an
24-2 order dissolving the District and disbanding and releasing the
24-3 Board of Managers of the District from any further duty or
24-4 obligation.
24-5 (k) Notwithstanding any other provision of this Act, the
24-6 District may not be dissolved unless the Board provides for the
24-7 sale or transfer of the District's assets and liabilities to
24-8 another entity or person. The dissolution of the District and the
24-9 sale or transfer of the District's assets and liabilities may not
24-10 contravene a trust indenture or bond resolution relating to the
24-11 outstanding bonds of the District. In addition, the dissolution
24-12 and sale or transfer may not diminish or impair the rights of the
24-13 holders of any outstanding bonds, warrants, or other obligations of
24-14 the District.
24-15 (l) The sale or transfer of the District's assets and
24-16 liabilities must satisfy the debt and bond obligations of the
24-17 District in a manner that protects the interests of the residents
24-18 of the District, including their collective property rights in the
24-19 District's assets. Any grant from federal funds is considered an
24-20 obligation to be repaid in satisfaction. The District may not
24-21 transfer or dispose of the District's assets except for due
24-22 compensation unless the transfer is made to another governmental
24-23 agency embracing the District and using the transferred assets for
24-24 the benefit of residents formerly in the District.
24-25 SECTION 2. Section 13, Chapter 110, Acts of the 58th
S.B. No. 992
25-1 Legislature, 1963, is repealed.
25-2 SECTION 3. This Act takes effect September 1, 1997.
25-3 SECTION 4. The importance of this legislation and the
25-4 crowded condition of the calendars in both houses create an
25-5 emergency and an imperative public necessity that the
25-6 constitutional rule requiring bills to be read on three several
25-7 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 992 passed the Senate on
April 8, 1997, by a viva-voce vote; and that the Senate concurred
in House amendment on May 12, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 992 passed the House, with
amendment, on May 2, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor