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                                  * * * * *