1-1 By: Nixon S.B. No. 992
1-2 (In the Senate - Filed March 6, 1997; March 11, 1997, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 1, 1997, reported favorably by the following vote:
1-5 Yeas 11, Nays 0; April 1, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the operation of the Tyler County Hospital District.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Chapter 110, Acts of the 58th Legislature, 1963,
1-11 is amended by amending Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
1-12 15, and 17 and adding Sections 21 and 22 to read as follows:
1-13 Sec. 2. The District shall provide for the establishment,
1-14 administration, maintenance, operation, and financing of a hospital
1-15 or hospital system within its boundaries and may provide any
1-16 services or facilities necessary for hospital or medical care,
1-17 including rural health clinics, outpatient clinics, nursing homes,
1-18 home health care agencies, extended care facilities, assisted
1-19 living or personal care facilities, retirement, housing, and
1-20 medical office buildings. The District [That said District hereby
1-21 provided for] shall assume full responsibility for providing
1-22 medical and hospital care for the needy residing within the
1-23 District; provided, however, that such Hospital District shall not
1-24 be created unless and until an election is duly held in the County
1-25 for such purpose, which said election may be initiated by the
1-26 Commissioners Court upon its own motion or upon a petition of fifty
1-27 (50) resident qualified [property taxpaying] voters, to be held not
1-28 less than thirty (30) days from the time said election is ordered
1-29 by the Commissioners Court. At such election, there shall be
1-30 submitted to the qualified property taxpaying voters the
1-31 proposition of whether or not a Hospital District shall be created
1-32 in the County; and a majority of the qualified property taxpaying
1-33 electors participating in said election voting in favor of the
1-34 proposition shall be necessary. The ballots for said election
1-35 shall have printed thereon:
1-36 "FOR the creation of a Hospital District; providing for the
1-37 levy of a tax not to exceed seventy-five cents (75 ) on the One
1-38 Hundred Dollar valuation; and providing for the assumption by such
1-39 District of all outstanding bonds heretofore issued by Tyler County
1-40 for hospital purposes"; and
1-41 "AGAINST the creation of a Hospital District; providing for
1-42 the levy of a tax not to exceed seventy-five cents (75 ) on the One
1-43 Hundred Dollar valuation; and providing for the assumption by such
1-44 District of all outstanding bonds heretofore issued by Tyler County
1-45 for hospital purposes."
1-46 Sec. 3. The Commissioners Court of the County shall have the
1-47 power and authority, and it shall be its duty, to levy on all
1-48 property subject to hospital district taxation, for the benefit of
1-49 the District at the same time taxes are levied for county purposes,
1-50 using the county values and the county tax roll, a tax of not to
1-51 exceed seventy-five cents (75 ) on the One Hundred Dollar valuation
1-52 of all taxable property within the Hospital District, for the
1-53 purpose of (1) paying the interest on and creating a sinking fund
1-54 for bonds which may have been assumed or which may be issued by the
1-55 Hospital District for hospital purposes as herein provided;
1-56 (2) providing for the operation and maintenance of the hospital or
1-57 hospital system; and (3) when requested by the Board of Hospital
1-58 Managers of the Hospital District and approved by the Commissioners
1-59 Court, for the purpose of making further improvements and additions
1-60 to the hospital system, and for the acquisition of necessary sites
1-61 therefor, by purchase, lease or condemnation.
1-62 [The tax so levied shall be collected on all property subject
1-63 to Hospital District taxation by the Assessor and Collector of
1-64 Taxes for the County on the county tax values, and in the same
2-1 manner and under the same conditions as county taxes. The Assessor
2-2 and Collector of Taxes shall charge and deduct from payments to the
2-3 Hospital District the fees for assessing and collecting the tax at
2-4 the rate of not exceeding two per cent (2%) of the amounts
2-5 collected as may be determined by the Commissioners Court. Such
2-6 fees shall be deposited in the County's General Fund, and shall be
2-7 reported as fees of office of the Tax Assessor and Collector.
2-8 Interest and penalties on taxes paid to the Hospital District shall
2-9 be the same as in the case of county taxes. Discounts shall be the
2-10 same as for county taxes. The residue of tax collections, after
2-11 deduction of discounts and fees for assessing and collecting, shall
2-12 be deposited in the District depository; and such funds shall be
2-13 withdrawn only as provided herein. All other income of the
2-14 Hospital District shall be deposited in like manner with the
2-15 District depository. Warrants against the Hospital District funds
2-16 shall not require the signature of the County Clerk.]
2-17 The Commissioners Court shall have the authority to levy the
2-18 tax aforesaid for the entire year in which the said Hospital
2-19 District is established, for the purpose of securing funds to
2-20 initiate the operation of the Hospital District, and to pay assumed
2-21 bonds.
2-22 Before September 1 of each year, the Board shall publish
2-23 notice of tax rates, give notice of and conduct a public hearing as
2-24 required by Chapter 26, Tax Code, and enter an order levying taxes
2-25 on all property in the District subject to District taxation.
2-26 Sec. 4. (a) The Commissioners Court shall have the power
2-27 and authority to issue and sell as the general obligations of such
2-28 Hospital District, bonds for the purchase, construction,
2-29 acquisition, repair or renovation of buildings and improvements
2-30 and equipping same, for the acquisition or operation of a mobile
2-31 emergency medical service, for hospital purposes, and for any or
2-32 all of such purposes; provided, that a sufficient tax shall be
2-33 levied to create an interest and sinking fund to pay the interest
2-34 and principal as the bonds mature [same matures] provided said tax
2-35 together with any other taxes levied for said District shall not
2-36 exceed seventy-five cents (75 ) in any one year. Such bonds shall
2-37 be executed in the name of the Hospital District and on its behalf
2-38 by the County Judge of the County, and countersigned by the County
2-39 Clerk, and shall be subject to the same requirements in the matter
2-40 of approval thereof by the Attorney General of the State of Texas
2-41 and the registration thereof by the Comptroller of Public Accounts
2-42 of the State of Texas as are by law provided for such approval and
2-43 registration of bonds of such County; and the approval of such
2-44 bonds by the Attorney General shall have the same force and effect
2-45 as is by law given to the Attorney General's [his] approval of
2-46 bonds of the County. No bonds shall be issued by such Hospital
2-47 District (except refunding bonds) until authorized by a majority
2-48 vote of the [legally] qualified [property taxpaying] voters
2-49 residing in such Hospital District voting at an election called and
2-50 held in accordance with the provisions of Chapter 1, Title 22, of
2-51 the Revised Civil Statutes of the State of Texas, 1925, as amended,
2-52 relating to county bonds. Such election may be called by the
2-53 Commissioners Court on its own motion, or shall be called by it
2-54 after request therefor by the Board of Hospital Managers of the
2-55 District; and the same persons shall be responsible for the conduct
2-56 of such election and arrangement of all details thereof as the
2-57 persons charged therewith in connection with other county-wide
2-58 elections. The cost of any such election shall be a charge upon
2-59 the Hospital District and its funds; and the Hospital District
2-60 shall make provision for the payment thereof before the
2-61 Commissioners Court shall be required to order such an election.
2-62 (b) The District may issue [In the manner hereinabove
2-63 provided, the] bonds [of such Hospital District may, without the
2-64 necessity of any election therefor, be issued] for the purpose of
2-65 refunding and paying off any bonded indebtedness theretofore
2-66 assumed by the Hospital District and any bonds theretofore issued
2-67 by the Hospital District. In issuing the bonds, the District shall
2-68 comply with Chapter 784, Acts of the 61st Legislature, Regular
2-69 Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes).
3-1 The[; such] refunding bonds may be sold and the proceeds thereof
3-2 applied to the payment of any such outstanding bonds or may be
3-3 exchanged in whole or in part for not less than a similar [like]
3-4 amount of said outstanding indebtedness. In selling the refunding
3-5 bonds and applying the proceeds to the payment of outstanding
3-6 indebtedness, the District shall comply with Chapter 503, Acts of
3-7 the 54th Legislature, 1955 (Article 717k, Vernon's Texas Civil
3-8 Statutes) [bonds and interest matured thereon, but unpaid; provided
3-9 the average interest cost per annum on the refunding bonds,
3-10 computed in accordance with the recognized standard bond interest
3-11 cost tables, shall not exceed the average interest cost per annum
3-12 so computed upon the bonds to be discharged out of the proceeds of
3-13 the refunding bonds, unless the total interest cost on the
3-14 refunding bonds, computed to their respective maturity dates, is
3-15 less than the total interest cost so computed on the bonds to be
3-16 discharged out of such proceeds. In the foregoing computations,
3-17 any premium or premiums required to be paid upon the bonds to be
3-18 refunded as a condition to payment in advance of their stated
3-19 maturity dates shall be taken into account as an addition to the
3-20 net interest cost to the Hospital District of the refunding bonds].
3-21 (c) The District may issue revenue bonds to purchase,
3-22 construct, repair, renovate, and acquire buildings and improvements
3-23 and to equip buildings and improvements for the hospital and the
3-24 hospital system, to acquire sites for hospital purposes, and to
3-25 acquire and operate a mobile emergency medical service to assist
3-26 the District in carrying out its purposes. The bonds must be
3-27 payable from and secured by a pledge of all or part of the revenues
3-28 derived from the operation of the District's hospital system. The
3-29 bonds may also be secured by a mortgage or deed of trust lien on
3-30 all or part of the District property. The District shall issue
3-31 revenue bonds in accordance with Sections 264.042, 264.043,
3-32 264.046, 264.047, 264.048, and 264.049, Health and Safety Code.
3-33 (d) The President of the Board shall execute the bonds in
3-34 the name of the District, and the Secretary of the Board shall
3-35 countersign the bonds in the manner provided by the Texas Uniform
3-36 Facsimile Signature of Public Officials Act (Article 717j-1,
3-37 Vernon's Texas Civil Statutes).
3-38 (e) Because the District is a public entity performing an
3-39 essential public function, bonds issued by the District, any
3-40 transaction relating to the bonds, and profits made in the sale of
3-41 the bonds are free from taxation by the state or by any
3-42 municipality, county, special district, or political subdivision of
3-43 the state.
3-44 (f) The District may not impose taxes to pay the principal
3-45 of or interest on revenue bonds. The Tax Code governs the
3-46 appraisal, assessment, and collection of District taxes. The Board
3-47 may provide for the appointment of a tax assessor-collector for the
3-48 District or may contract for the assessment and collection of taxes
3-49 as provided by the Tax Code.
3-50 (g) District bonds must mature not later than 40 years after
3-51 the date of their issuance and must bear interest at a rate not to
3-52 exceed that provided by Chapter 3, Acts of the 61st Legislature,
3-53 Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
3-54 Statutes).
3-55 Sec. 5. Any lands, buildings or equipment that may be owned
3-56 by the County, and by which medical services or hospital care,
3-57 including geriatric care, are furnished to the indigent or needy
3-58 persons of the County, shall become the property of the Hospital
3-59 District; and title thereto shall vest in the Hospital District;
3-60 and any funds of the County which are the proceeds of any bonds
3-61 assumed by the Hospital District, as hereby provided, shall become
3-62 the funds of the Hospital District; and title thereto shall vest in
3-63 the Hospital District; and there shall vest in the Hospital
3-64 District and become the funds of the Hospital District the unspent
3-65 portions of any funds theretofore set up or appropriated by budget
3-66 or otherwise by the County for the support and maintenance of the
3-67 hospital facilities for the year within which the Hospital District
3-68 comes into existence, thereby providing such Hospital District with
3-69 funds with which to maintain and operate such facilities for the
4-1 remainder of such year. All obligations under contract legally
4-2 incurred by the County for the building of, or the support and
4-3 maintenance of, hospital facilities, prior to the creation of the
4-4 said District but outstanding at the time of the creation of the
4-5 District, shall be assumed and discharged by it without prejudice
4-6 to the rights of third parties, provided that the management and
4-7 control of the property and affairs of the present hospital system
4-8 shall continue in the Board of Managers of the present hospital
4-9 system until appointment and organization of the Board of Hospital
4-10 Managers of the Hospital District, at which time the Board of
4-11 Managers of the present hospital system shall turn over all
4-12 records, property and affairs of said hospital system to the Board
4-13 of Hospital Managers of the Hospital District.
4-14 Any outstanding bonded indebtedness incurred by the County in
4-15 the acquisition of such lands, buildings and equipment, or in the
4-16 construction and equipping of such hospital facilities, together
4-17 with any other outstanding bonds issued by the County for hospital
4-18 purposes, and the proceeds of which are in whole or in part still
4-19 unspent, shall be assumed by the Hospital District and become the
4-20 obligation of the Hospital District; and the County shall be by the
4-21 Hospital District relieved of any further liability for the payment
4-22 thereof, or for providing interest and sinking fund requirements
4-23 thereon; provided that nothing herein contained shall limit or
4-24 affect any of the rights of any of the holders of such bonds
4-25 against the payment of the principal or interest on any of such
4-26 bonds in accordance with their respective terms.
4-27 The Commissioners Court, as soon as the Hospital District is
4-28 created and authorized at the election hereinabove provided, and
4-29 there have been appointed and qualified the Board of Hospital
4-30 Managers hereinafter provided for, shall execute and deliver to the
4-31 Hospital District, to wit: to its said Board of Hospital Managers,
4-32 an instrument in writing conveying to said Hospital District the
4-33 hospital property, including lands, buildings and equipment; and
4-34 shall transfer to said Hospital District the funds hereinabove
4-35 provided to become vested in the Hospital District, upon being
4-36 furnished the certificate of the President [Chairman] of the Board
4-37 to the fact that a depository for the District's funds has been
4-38 selected and has qualified; which funds shall, in the hands of the
4-39 Hospital District and of its Board of Hospital Managers, be used
4-40 for all or any of the same purposes as, and for no other purposes
4-41 than, the purposes for which the County could lawfully have used
4-42 the same had they remained the property and funds of such County.
4-43 Sec. 6. (a) The Commissioners Court shall appoint a Board
4-44 of Hospital Managers, consisting of six (6) members, who shall
4-45 serve for a term of two (2) years, with overlapping terms if
4-46 desired, and with initial appointments to terms of office arranged
4-47 accordingly, and provided that the County Judge of the County shall
4-48 be an ex officio member of said Board of Hospital Managers. To
4-49 serve as a Hospital Manager, a person must be a resident and
4-50 qualified voter of the District. An employee of the District may
4-51 not serve as a Hospital Manager. Failure of any member of the
4-52 Board of Hospital Managers to attend three (3) consecutive regular
4-53 meetings of the Board shall cause a vacancy in his office, unless
4-54 such absence is excused by formal action of the Board. The
4-55 Commissioners Court shall fill a vacancy by appointment. The Board
4-56 of Hospital Managers shall serve without compensation, but may be
4-57 reimbursed for their actual and necessary traveling and other
4-58 expenses incurred in the performance of their duties as determined
4-59 by the Board of Hospital Managers. Expenses reimbursed under this
4-60 section must be reported in the District's minute book or other
4-61 District records. The duties of the Board of Hospital Managers
4-62 shall be to manage, control and administer the hospital and [or]
4-63 hospital system and the business, funds, and resources of the
4-64 Hospital District. The Board of Hospital Managers shall have the
4-65 power and authority to sue and be sued and to promulgate rules and
4-66 regulations for the operation of the hospital or hospital system.
4-67 (b) The Board may [shall] appoint an Administrator, an
4-68 assistant administrator, and an attorney to serve at the will of
4-69 the Board and to [a general manager, to be known as the
5-1 Administrator of the Hospital District. The Administrator shall
5-2 hold office for a term not exceeding two (2) years and shall]
5-3 receive such compensation as may be fixed by the Board. The Board
5-4 may require that the Administrator [shall be subject to removal at
5-5 any time by the Board. The Administrator shall], before assuming
5-6 the Administrator's [entering into the discharge of his] duties,
5-7 execute a bond payable to the District, in an [the] amount set by
5-8 the Board of not less than Five Thousand Dollars ($5,000) [Ten
5-9 Thousand Dollars ($10,000)], conditioned on faithful performance of
5-10 [that he shall well and faithfully perform] the Administrator's
5-11 duties [required of him], and containing such other conditions as
5-12 the Board may require. The Administrator shall perform all duties
5-13 [which may be] required [of him] by the Board, and shall supervise
5-14 all of the work and activities of the District, and have general
5-15 direction of the affairs of the District, within such limitations
5-16 as may be prescribed by the Board. The Administrator [He] shall be
5-17 a person qualified by training and experience for the position of
5-18 Administrator.
5-19 (c) The Board of Hospital Managers shall have the authority
5-20 to appoint or remove doctors from the staff and to employ such
5-21 employees of every kind and character as may be deemed advisable
5-22 for the efficient operation of the hospital or hospital system[;
5-23 provided that no contract or term of employment shall exceed the
5-24 period of two (2) years]. The Board may delegate to the
5-25 Administrator the authority to hire employees.
5-26 (d) The Board may spend District funds to recruit
5-27 physicians, nurses, and other trained medical personnel. The Board
5-28 may contract with full-time medical students or other health
5-29 occupation students enrolled in good standing in accredited medical
5-30 schools, colleges, or universities to pay a student's tuition or
5-31 other costs of expenses in consideration for the student's
5-32 agreement to serve as an employee or independent contractor of the
5-33 District on terms described in the contract. The Board may provide
5-34 retirement benefits for employees of the District by establishing
5-35 or administering a retirement program or by electing to participate
5-36 in the Texas County and District Retirement System or in any
5-37 statewide retirement system in which the District is eligible to
5-38 participate.
5-39 (e) The Board shall determine the type, number, and location
5-40 of buildings required to establish and maintain an adequate
5-41 hospital system and the type of equipment necessary for hospital
5-42 care. The Board may acquire by purchase or lease property,
5-43 facilities, and equipment for the District to use in the hospital
5-44 system and may mortgage or pledge the property, facilities, or
5-45 equipment acquired as security for the payment of the purchase
5-46 price. The Board may enter into operating or management contracts
5-47 relating to hospital facilities. The Board may transfer by lease
5-48 to individuals, companies, corporations, or other legal entities or
5-49 acquire by lease District hospital facilities and may sell or
5-50 otherwise dispose of property, facilities, and equipment.
5-51 (f) The Board may bring suit to enforce payment of taxes and
5-52 to foreclose liens to secure the payment of taxes due the District.
5-53 (g) The Board of Hospital Managers, with the approval of the
5-54 Commissioners Court, shall be authorized to contract with any
5-55 county for care and treatment of the county's sick, diseased and
5-56 injured persons, and with the State and agencies of the Federal
5-57 Government for the care and treatment of such persons for whom the
5-58 State and such agencies of the Federal Government are responsible.
5-59 The Board shall seek reimbursement, in the manner provided by
5-60 Chapter 61, Health and Safety Code, from a County, municipality, or
5-61 public hospital located outside the boundaries of the District for
5-62 the District's care for or treatment of a sick, diseased, or
5-63 injured person for whom that County, municipality, or public
5-64 hospital has an obligation to provide care. The Board shall seek
5-65 reimbursement under Article 104.002, Code of Criminal Procedure,
5-66 for the District's care for or treatment of a person who is not a
5-67 resident of the District and who is confined in a County jail
5-68 facility.
5-69 (h) [Further, under the same conditions, the Board of
6-1 Hospital Managers may enter into such contracts with the State and
6-2 Federal Government as may be necessary to establish or continue a
6-3 retirement program for the benefit of its employees.]
6-4 [The Board of Hospital Managers may in addition to retirement
6-5 programs authorized by this Act establish such other retirement
6-6 program for the benefit of its employees as it deems necessary and
6-7 advisable.]
6-8 A majority of the Board of Hospital Managers [present] shall
6-9 constitute a quorum for the transaction of any business. From
6-10 among its members, the Board shall elect [choose] a President
6-11 [Chairman], who shall preside, and a Vice President, who shall
6-12 preside in the President's absence. The Board shall appoint a
6-13 Secretary, who is not required to be a Hospital Manager. Each
6-14 officer serves a one-year term. The Board shall fill a vacancy in
6-15 a Board office for the unexpired term[; or in his absence a
6-16 Chairman pro tem shall preside; and the Administrator or any member
6-17 of the Board may be appointed Secretary. The Board shall require
6-18 the Secretary to keep suitable records of all proceedings of each
6-19 meeting of the Board. Such records shall be read and signed after
6-20 each meeting by the Chairman or the member presiding, and attested
6-21 by the Secretary]. The Board shall have a seal, on which shall be
6-22 engraved the name of the Hospital District; and said seal shall be
6-23 kept by the Secretary and used in authentication of all acts of the
6-24 Board.
6-25 Sec. 7. The Board of Hospital Managers shall have the power
6-26 to prescribe the method and manner of making purchases and
6-27 expenditures by and for such Hospital District, and also shall be
6-28 authorized to prescribe all accounting and control procedures. The
6-29 Board shall cause an annual audit to be made of the financial
6-30 condition [books and records] of the District as soon as
6-31 practicable after the close of each fiscal year, such audit to
6-32 cover such fiscal year, and to be made by an independent public
6-33 accountant. The Hospital District shall pay all salaries and
6-34 expenses necessarily incurred by the Board or any of its officers
6-35 and agents in performing any duties which may be prescribed or
6-36 required under this Section. It shall be the duty of any officer,
6-37 employee or agent of the Board to perform and carry out any
6-38 function or service prescribed by the Board hereunder.
6-39 Sec. 8. The District shall operate on a fiscal year
6-40 established by the Board. The Board may not change the fiscal year
6-41 when revenue bonds are outstanding or more than once in a
6-42 twenty-four-month (24-month) period. [In the event of incapacity,
6-43 absence or inability of the Administrator to discharge any of the
6-44 duties required of him, the Board may designate an assistant to the
6-45 Administrator to discharge any duties or functions required of the
6-46 Administrator. Such assistant or other persons shall give bond and
6-47 have such limitations upon his authority as may be fixed by the
6-48 order of the Board.]
6-49 Sec. 9. (a) Once each year, as soon as practicable after
6-50 the close of the fiscal year, the Administrator of the Hospital
6-51 District shall report to the Board of Hospital Managers and the
6-52 Commissioners Court, a full sworn statement of all moneys and
6-53 choses in action received by such Administrator and how disbursed
6-54 or otherwise disposed of. Such report shall show in detail the
6-55 operations of the District for the year.
6-56 (b) Under the direction of the Board of Hospital Managers,
6-57 the Administrator [he] shall prepare a proposed [an] annual budget
6-58 which shall be approved by the Board of Hospital Managers. The
6-59 Board shall publish notice of a public hearing on the proposed
6-60 budget in a newspaper of general circulation in the District one
6-61 time before the tenth (10th) day preceding the date of the hearing.
6-62 The Board shall adopt a budget based on the proposed budget of the
6-63 Administrator. The budget is effective only after adoption by the
6-64 Board and may be amended on the Board's approval.
6-65 Sec. 10. The Hospital District organized in pursuance of
6-66 this Act shall have the right and power of eminent domain for the
6-67 purpose of acquiring by condemnation any and all property of any
6-68 kind or character, real, personal or mixed, or any interest
6-69 therein, including outright ownership of such property in fee
7-1 simple absolute, within the boundaries of the said District,
7-2 necessary or convenient to the exercise of the rights, powers,
7-3 privileges and functions conferred upon it by this Act, in the
7-4 manner provided by General Law with respect to condemnation;
7-5 provided that the said District shall not be required to make
7-6 deposits in the registry of the trial court of the sum required by
7-7 Section 21.021(a), Property Code [Paragraph numbered 2 in Article
7-8 3268, Vernon's Civil Statutes, 1925], or to make the bond required
7-9 therein. In condemnation proceedings being prosecuted by the said
7-10 District, the District shall not be required to pay in advance or
7-11 give any bond otherwise required for the issuance of a temporary
7-12 restraining order or a temporary injunction relating to a
7-13 condemnation proceeding, nor to give bond for costs or for
7-14 supersedeas or any appeal or writ of error [proceeding to any Court
7-15 of Civil Appeals, or to the Supreme Court].
7-16 Sec. 11. Within thirty (30) days after the appointment of
7-17 the Board of Hospital Managers of the District and each two (2)
7-18 years thereafter the said Board shall select a depository for such
7-19 District to [which shall be one or the same depository theretofore
7-20 selected by the County, such depository shall] secure all funds of
7-21 the District in the manner now provided for the security of county
7-22 funds. The Board may purchase, sell, and invest the District funds
7-23 in investments authorized by Chapter 2256, Government Code.
7-24 Sec. 12. All [The Hospital District established or
7-25 maintained under the provisions of this Act shall be subject to
7-26 inspection by any duly authorized representative of the State Board
7-27 of Health and of the Commissioners Court of the County, and
7-28 resident officers shall admit such representatives into all
7-29 Hospital District facilities and give them access on demand to all]
7-30 records, reports, books, papers, and accounts pertaining to the
7-31 Hospital District shall be made available as required by Chapter
7-32 552, Government Code.
7-33 Sec. 15. (a) The District, without charge, shall provide to
7-34 a patient residing in the District care and treatment for which the
7-35 patient, or a relative of the patient who is legally responsible
7-36 for the patient's support, cannot pay. Not later than the first
7-37 day of each operating year, the District shall adopt an application
7-38 procedure to determine eligibility for assistance, as provided by
7-39 Section 61.053, Health and Safety Code.
7-40 (b) Whenever a patient has been admitted to the facilities
7-41 of the Hospital District from the County, the Administrator shall
7-42 cause inquiry to be made as to the person's [his] financial
7-43 circumstances[,] and the financial circumstances of a relative [the
7-44 relatives] of the [such] patient who is legally responsible
7-45 [liable] for the patient's [his] support. On finding [If he finds]
7-46 that the [such] patient or a relative who is legally responsible
7-47 for the patient's support can pay for all or any part of the [said
7-48 relatives are liable to pay for his] care and treatment provided to
7-49 the patient by the District [in whole or in part], the
7-50 Administrator shall report the finding to the Board and the Board
7-51 shall issue an order [shall be made] directing the [such] patient,
7-52 or the relative [said relatives], to pay to the Hospital District
7-53 for the care of such patient a specified sum per week, in
7-54 proportion to [their] financial ability, but such sum shall not
7-55 exceed the actual per capita cost of maintenance. The
7-56 Administrator shall have power and authority to collect such sum
7-57 from the estate of the patient, or the relative who is [his
7-58 relatives] legally responsible [liable] for the patient's [his]
7-59 support, in the manner provided by law for the collection of
7-60 expenses of the last illness of a deceased person. If the
7-61 Administrator finds that the [such] patient or the relative is
7-62 [said relatives are] not able to pay, either in whole or in part,
7-63 for the patient's [his] care and treatment in the [such] hospital,
7-64 the same shall become a charge upon the Hospital District. Should
7-65 there be a dispute as to the ability to pay, or doubt in the mind
7-66 of the Administrator concerning ability to pay, the County Court
7-67 shall hear and determine same, after calling witnesses, and shall
7-68 make such order as may be proper, from which appeal shall lie to
7-69 the District Court by either party to the dispute.
8-1 Sec. 17. All bonds (including refunding bonds) issued by or
8-2 assumed by the District authorized to be established and created
8-3 under the provisions of this Act shall be and are declared to be
8-4 legal and authorized investments for banks, savings banks, trust
8-5 companies, fiduciaries, savings [building] and loan associations,
8-6 insurance companies, trustees, guardians, and for the sinking funds
8-7 of cities, towns, villages, counties, school districts, or other
8-8 political corporations or subdivisions of the State of Texas; and
8-9 such bonds shall be lawful and sufficient security for deposits to
8-10 the extent of their face value when accompanied by all unmatured
8-11 coupons appurtenant thereto.
8-12 Sec. 21. (a) If the Board of Hospital Managers declares
8-13 that funds are not available to meet lawfully authorized
8-14 obligations of the District and that an emergency exists, the Board
8-15 may borrow money at a rate not to exceed the maximum annual
8-16 percentage rate allowed by law for District obligations at the time
8-17 the loan is made.
8-18 (b) To secure a loan, the Board may pledge:
8-19 (1) revenues of the District that are not pledged to
8-20 pay bonded indebtedness of the District;
8-21 (2) District taxes to be levied by the District in the
8-22 next twelve-month (12-month) period that are not pledged to pay the
8-23 principal of or interest on District bonds; or
8-24 (3) District bonds that have been authorized but not
8-25 sold.
8-26 (c) A loan for which taxes or bonds are pledged must mature
8-27 not later than the first anniversary of the date on which the loan
8-28 is made. A loan for which District revenues are pledged must
8-29 mature not later than the fifth (5th) anniversary of the date on
8-30 which the loan is made.
8-31 (d) The Board may not spend money obtained from a loan under
8-32 this section for any purpose other than the purpose for which the
8-33 Board declared an emergency and, if taxes or bonds are pledged to
8-34 pay the loan, for any purpose other than the purposes for which the
8-35 pledged taxes were levied or the pledged bonds were authorized.
8-36 Sec. 22. (a) The District may be dissolved only if the
8-37 dissolution is approved by a majority of the qualified voters of
8-38 the District voting at an election called and held for that
8-39 purpose.
8-40 (b) The Board may order an election on the question of
8-41 dissolving the District and disposing of the District's assets and
8-42 obligations. The Board shall order an election to be held on the
8-43 question of dissolution of the District if the Board receives a
8-44 petition requesting an election that is signed by at least fifteen
8-45 percent (15%) of the registered voters of the District. The
8-46 election shall be held not later than the sixtieth (60th) day after
8-47 the date the election is ordered. Section 41.001(a), Election
8-48 Code, does not apply to an election ordered under this article.
8-49 The order calling the election must state:
8-50 (1) the nature of the election, including the
8-51 proposition that is to appear on the ballot;
8-52 (2) the date of the election;
8-53 (3) the hours during which the polls will be open; and
8-54 (4) the location of the polling places.
8-55 (c) The Board shall give notice of the election by
8-56 publishing a copy of the election order in a newspaper with general
8-57 circulation in the District once a week for two consecutive weeks.
8-58 The first publication must appear before the thirty-fifth (35th)
8-59 day before the date set for election. The ballot for an election
8-60 at which the dissolution of the District is proposed shall be
8-61 printed to permit voting for or against the proposition: "The
8-62 dissolution of the Tyler County Hospital District."
8-63 (d) If a majority of the voters in the District favor
8-64 dissolution, the Board shall find that the District is dissolved
8-65 and shall transfer the land, buildings, improvements, equipment,
8-66 and other assets that belong to the District to a County or another
8-67 governmental entity in the County in which the District is located
8-68 or administer the property, assets, and debts until all funds have
8-69 been disposed of and all District debts have been paid or settled.
9-1 (e) After the Board finds that the District is dissolved,
9-2 the Board shall:
9-3 (1) determine the debt owed by the District; and
9-4 (2) impose on the property included in the District's
9-5 tax rolls a tax that is in proportion of the debt to the property
9-6 value.
9-7 (f) If the District transfers the land, buildings,
9-8 improvements, equipment, and other assets to a County or other
9-9 governmental entity, the County or entity assumes all debts and
9-10 obligations of the District at the time of the transfer, and the
9-11 District is dissolved.
9-12 (g) If the Board finds that the election results are not
9-13 favorable to the proposition to dissolve the District, another
9-14 dissolution election may not be held before the first anniversary
9-15 of the date of the most recent election to dissolve the District.
9-16 (h) When all outstanding debts and obligations of the
9-17 District are paid, the Board shall order the Secretary to return
9-18 the pro rata share of all unused tax money to each District
9-19 taxpayer. A taxpayer may request that the taxpayer's share of
9-20 surplus tax money be credited to the taxpayer's County taxes. If a
9-21 taxpayer requests the credit, the Board shall direct the Secretary
9-22 to transmit the funds to the County tax assessor-collector.
9-23 (i) After the District has paid all its debts and has
9-24 disposed of all its assets and funds as required by this section,
9-25 the Board shall file a written report with the Commissioners Court
9-26 of Tyler County setting forth a summary of the Board's actions in
9-27 dissolving the District.
9-28 (j) Not later than the tenth (10th) day after the date it
9-29 receives the report and determines that the requirements of this
9-30 section have been fulfilled, the Commissioners Court shall enter an
9-31 order dissolving the District and disbanding and releasing the
9-32 Board of Managers of the District from any further duty or
9-33 obligation.
9-34 (k) Notwithstanding any other provision of this Act, the
9-35 District may not be dissolved unless the Board provides for the
9-36 sale or transfer of the District's assets and liabilities to
9-37 another entity or person. The dissolution of the District and the
9-38 sale or transfer of the District's assets and liabilities may not
9-39 contravene a trust indenture or bond resolution relating to the
9-40 outstanding bonds of the District. In addition, the dissolution
9-41 and sale or transfer may not diminish or impair the rights of the
9-42 holders of any outstanding bonds, warrants, or other obligations of
9-43 the District.
9-44 (l) The sale or transfer of the District's assets and
9-45 liabilities must satisfy the debt and bond obligations of the
9-46 District in a manner that protects the interests of the residents
9-47 of the District, including their collective property rights in the
9-48 District's assets. Any grant from federal funds is considered an
9-49 obligation to be repaid in satisfaction. The District may not
9-50 transfer or dispose of the District's assets except for due
9-51 compensation unless the transfer is made to another governmental
9-52 agency embracing the District and using the transferred assets for
9-53 the benefit of residents formerly in the District.
9-54 SECTION 2. Section 13, Chapter 110, Acts of the 58th
9-55 Legislature, 1963, is repealed.
9-56 SECTION 3. This Act takes effect September 1, 1997.
9-57 SECTION 4. The importance of this legislation and the
9-58 crowded condition of the calendars in both houses create an
9-59 emergency and an imperative public necessity that the
9-60 constitutional rule requiring bills to be read on three several
9-61 days in each house be suspended, and this rule is hereby suspended.
9-62 * * * * *