SRC-JXG S.B. 1625 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1625
76R4079 MXM-FBy: Haywood
Intergovernmental Relations
3/29/1999
As Filed


DIGEST 

Under the 59th Legislature, the Act creating the Childress County Hospital
District (district) was passed. The Act has not been amended since its
creation in 1965 and no longer accurately reflects the needs of the
district. Changes are needed for the district to provide health care to the
residents of the Childress County. S.B. 1625 would ensure the district's
legislation corresponds with current Texas law, and ensure that the
district spends funds to recruit physicians and other medical personnel;
and broadens the financing option available to the district.  

PURPOSE

As proposed, S.B. 1625 updates legislation to correspond with the continued
operation and growth of the Childress County Hospital District. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 3, Chapter 647, Acts of the 59th Legislature,
Regular Session, 1965, to create Subsections (a)-(c) from existing text. 

SECTION 2. Amends Section 4, Chapter 647, Acts of the 59th Legislature,
Regular Session, 1965, to require a regular election for directors to be
held on the first Saturday in May, rather than April, of each year and to
be ordered by the Childress County Hospital District (district) board of
directors (board). Requires the election to be ordered at least 45 days,
rather than 15 days, prior to the date on which it is to be held. Provides
that any person desiring his name to be printed on the ballot as a
candidate for director to file an application with the secretary of the
board at least 31 days prior to the date of the election. Requires notice
of such election to be published one time in a newspaper of general
circulation in the areas of the district no earlier than the 30th day or
later than the 10th day before the date of the election, rather than at
least five days before the election. Entitles a director to receive actual
expenses incurred in attending to district business, provided such expenses
are reported in the district's minutes book or other district record.
Requires any person who is a resident of the district and a qualified voter
to be eligible to hold office as director of the district, except that an
employee of the district may not serve as a director. Requires the board to
appoint a secretary who is not required to be a director. Requires each
officer to serve for a term of one year. Deletes text requiring the
commissioners court to appoint seven persons to the board of the district.
Deletes text regarding a petition signed by no less than 15 qualified
voters asking that such name be printed on the ballot. Deletes text
requiring a petition to be filed with the secretary at least 25 days prior
to the election. Deletes text regarding failure of an original director.
Deletes text regarding a property owning taxpaying voter of the district.
Deletes text regarding other officers in judgment of the board. Deletes
text requiring the president to be chief executive officer of the district.
Makes conforming changes. 

SECTION 3. Amends Section 5, Chapter 647, Act of the 59th Legislature,
Regular Session, 1965, to require the board, with the assistance of the
chief executive officer, to manage, control, and administer the hospital,
hospital system, and the business, funds, and resources of the district.
Requires the chief executive officer to execute a bond in an amount to be
set by the board, but in no  event less than $25,000, conditioned on the
faithful performance of the chief executive officer's duties. Authorizes
the board to pay the bond with district funds. Authorizes the board to
purchase or lease property for the district to use in the hospital system
and to mortgage or pledge the property as security for the payment of the
purchase price. Authorizes the board to contract to provide administrative
or other personnel for the operation of the hospital facilities. Prohibits
a contract entered into under this subsection from having a term longer
than 25 years. Authorizes the board to lease district hospital facilities
to individuals, corporations, or other legal entities and to sell or
otherwise dispose of the district's property. Authorizes the board to
provide retirement benefits for district employees by establishing or
administering a retirement program or electing to participate in the Texas
County and District Retirement System or any other statewide retirement
system for which the district is eligible. Authorizes the board to spend
district funds to recruit physicians, nurses, and other trained medical
personnel. Authorizes the board to contract with one or more fulltime
medical students or other students in a health occupation, each of whom is
enrolled in and in good standing at an accredited medical school, college,
or university, to pay the student's tuition or other expenses in
consideration of the student's agreement to serve as an employee or
independent contractor for the district. Authorizes the board to institute
a suit to enforce the payment of taxes or to foreclose liens to secure the
payment of taxes due to the district. Authorizes the board to provide or
contract to provide educational programs or courses for employees and
medical staff of the district. Deletes text regarding administrator or
manager. Deletes text authorizing contracts or agreements with the State of
Texas or the Federal Government. Makes conforming changes.  

SECTION 4. Amends Section 6, Chapter 647, Acts of the 59th Legislature,
Regular Session, 1965, to require the district to be operated on a fiscal
year established by the board. Prohibits the fiscal year from being changed
when revenue bonds are outstanding or more than one time in a 24-month
period. Requires the board to cause an annual audit. Requires a public
hearing on the annual budget to be held by the board after notice has been
given in the manner provided by Chapter 551C, Government Code. Deletes text
regarding an audit on October 1 of each year and ending September 30 of the
following year. Deletes text regarding notice of the hearing to have been
published one time at least 10 days before the date set. Makes conforming
changes. 

SECTION 5. Amends Section 7, Chapter 647, Acts of the 59th Legislature,
Regular Session, 1965, to require the board of the district to have the
power and authority to issue and sell revenue bonds for the purpose of
purchasing, constructing, repairing, renovating, or acquiring buildings or
improvements, and acquiring sites to be used for hospital purposes.
Requires the board to be payable from and secured by a pledge of all or
part of the revenues derived from the operation of the district's hospital
system. Authorizes the bonds to be additionally secured by a mortgage or
deed of trust on all or part of district property. Requires revenue bonds
to be issued as provided by Sections 264.042, 264.043, 264.046, 264.047,
264.048, and 264.049, Health and Safety Code, for the issuance of revenue
bonds by county hospital authorities. Authorizes the board to issue and
sell general obligation bonds authorized by an election in the name and on
the faith and credit of the district to meet certain provisions. Prohibits
any other taxes levied for the district from exceeding the limit approved
by the voters at the election authorizing the levy of taxes. Authorizes the
district to issue general obligations bonds only if the bonds are
authorized by a majority of the qualified voters of the district voting at
an election called and held for that purpose. Authorizes the board to order
a bond election. Requires the order calling the election to state the
nature and date of the election, the hours during which the polls will be
open, the location of the polling places, the amounts of the bonds to be
authorized, and the maximum maturity of the bonds. Requires the notice of a
bond election to be given as provided for by Article 704, V.T.C.S. Requires
the board to canvass the returns and declare the results of the election.
Requires district bonds to mature no later than the 40th anniversary of the
date of issuance and to bear a rate of interest that does not exceed the
amount provided by Chapter 3, Acts of the 61st Legislature, Regular
Session, 1969 (Article 717k-2, V.T.C.S.).  Requires refunding bonds to be
issued in the manner provided by Chapter 784, Acts of the 61st Legislature,
Regular Session, 1969 (Article 717k-3, V.T.C.S.). Requires refunding bonds
to be sold and the proceeds applied to the payment of outstanding bonds to
be made in the manner specified by Chapter 503, Acts of 54th Legislature,
Regular Session, 1955 (Article 717k, V.T.C.S.). Deletes text regarding 75
cents on each $100 valuation of taxable property. Deletes text requiring
the district to make provisions on the cost of bond elections. Makes
conforming changes. 

SECTION 6. Amends Section 11, Chapter 647, Acts of the 59th Legislature,
Regular Session, 1965,  to require the district to comply with the
competitive bidding requirements contained in Chapter 252, Local Government
Code, before the district enters into a contract that requires an
expenditure of more than $15,000. Deletes text regarding purchases
involving the expenditure of more than $2,000.  

SECTION 7. Amends Section 12, Chapter 647, Acts of the 59th Legislature,
Regular Session, 1965, to delete text regarding of the district boundaries. 

SECTION 8. Amends Section 16, Chapter 647, Acts of the 59th Legislature,
Regular Session, 1965, to authorize the board to annually impose property
taxes in an amount not to exceed the limit approved by the voters at the
election authorizing the levy of taxes. Prohibits the tax rate for all
purposes from exceeding 75 cents on each $100 valuation of all taxable
property in the district. Authorizes the taxes to be used to pay for
indebtedness issued or assumed by the district and for the maintenance and
operating expenses of the district. Prohibits the district from imposing
taxes to pay the principal of or interest on revenue bonds. Provides that
the Tax Code governs the appraisal, assessment, and collection of district
taxes. Authorizes the board to provide for the appointment of a tax
assessor-collector for the district or to contract for the assessment and
collection of taxes as provided by the Tax Code. Deletes existing section
regarding hospital district taxes and the tax assessor-collector.  

SECTION 9. Amends Section 18, Chapter 647, Acts of the 59th Legislature,
Regular Session, 1965, to require the chief executive officer to cause
inquiry to be made as to the patient's circumstances and those of the
relatives of such patients legally liable for the patient's support. Makes
conforming changes.  

SECTION 10. Amends Chapter 647, Acts of the 59th Legislature, Regular
Session, 1965, by adding Section 20A, as follows: 

Sec. 20A. Authorizes the board to borrow money for district obligations at
the time of the loan. Sets forth revenue the board may pledge to secure a
loan. Requires a loan for which taxes or bonds are pledged to mature no
later than the first anniversary of the date on which the loan was made. 

SECTION 11. Amends Chapter 647, Acts of the 59th Legislature, Regular
Session, 1965, by adding Section 25, to authorize the district to be
dissolved only if the dissolution is approved by a majority of the
qualified voters of the district voting in an election called and held for
that purpose. Authorizes the board to order an election on the question of
dissolving the district and disposing of the district's assets and
obligations. Requires the board to order an election if the board receives
a petition requesting an election that is signed by a number of residents
of the district equal to at least 15 percent of the registered voters in
the district. Requires the election to be held no later than the 60th day
after the date the election is ordered. Provides that Section 41.001(a),
Election Code, does not apply to an election ordered under this section.
Requires the order calling the election to state certain information.
Requires the board to give notice of the election by publishing the
election order in a newspaper with general circulation in the district once
a week for two consecutive weeks. Requires the first publication to appear
no less than 35 days before the date set for the election. Sets forth
standard language for the ballot to permit voting for or against the
proposition. Requires the board to find that the district is dissolved, if
a majority of the votes in the election favor dissolution. Requires the
board to continue to administer the district, and another election on the
question of dissolution from being held before the first anniversary of the
most recent election to dissolve the district, if a majority of the votes
in the election do not favor dissolution. Requires the board  to transfer
or administer certain assets, if a majority of the votes in the election
favor dissolution. Provides that the county or agency assumes all debts and
obligations of the district at the time of the transfer, and the district
is dissolved, if the district transfers the land, buildings, improvements,
equipment, and other assets to a county or other governmental agency.
Requires the board to determine the debt owed by the district, and impose
on the property included in the district's tax rolls a tax that is in
proportion of the debt to the property value, after the board finds that
the district is dissolved. Requires the board to order the secretary to
return the pro rata share of all unused tax money to each district
taxpayer, when all outstanding debts and obligations of the district are
paid. 
Authorizes a taxpayer to request that the taxpayer's share of surplus tax
money be credited to the taxpayer's county taxes. Requires the board to
direct the secretary to transmit the funds to the county  tax
assessor-collector, if a taxpayer requests the credit. Requires the board
to file a written report with the commissioners court of Childress County
setting forth a summary of the board's actions in dissolving the district,
after the district has paid all its debts and has disposed of all its
assets and funds as prescribed by this section. Requires the commissioners
court of Childress County to enter an order dissolving the district and
releasing the board of the district from any further duty or obligation, no
later than the 10th day after the date it receives the report and
determines that the requirements of this section have been fulfilled.
Prohibits the district from being dissolved unless the board provides for
the sale or transfer of the district's assets and liabilities to another
person or entity. Provides that the dissolution of the district and the
sale or transfer of the district's assets and liabilities may not
contravene a trust indenture or bond resolution relating to the outstanding
bonds of the district. Provides that the dissolution and sale or transfer
does not diminish or impair the rights of a holder of an outstanding bond,
warrant, or other obligation of the district. Requires the sale or transfer
of the district's assets and liabilities to satisfy the debt and bond
obligations of the district in a manner that protects the interests of the
residents of the district. Provides that a grant from federal funds is an
obligation to be repaid in satisfaction. Prohibits the district from
transferring or disposing of the district's assets except for due
compensation unless the transfer is made to a governmental agency that
serves the district and the transferred assets are to be used for the
benefit of the residents of the district. 

SECTION 12. Emergency clause.
  Effective date: upon passage.