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