SRC-JJJ S.B. 1627 76(R)BILL ANALYSIS
Senate Research CenterS.B. 1627
By: Haywood
Intergovernmental Relations
6/23/1999
Enrolled
DIGEST
The Act creating the Castro County Hospital District passed in 1961 has not
been amended since its passage, and no longer accurately reflects the needs
of the district. S.B. 1627 will establish conditions regarding the Castro
County, Hansford County, and Ochiltree County hospital districts.
PURPOSE
As enrolled, S.B. 1627 establishes conditions regarding the Castro County,
Hansford County, and Ochiltree County hospital districts.
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 2, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, to delete text regarding qualified property
taxpaying.
SECTION 2. Amends Section 3, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, to prohibits an employee or a medical staff member
of the Ochiltree County or Castro County Hospital District from serving as
a director of the respective district. Requires the board of directors of
the Castro County Hospital District to organize by electing from the
membership of the board one member to serve as president, and one member to
serve as secretary. Requires a regular election of directors to be held on
the first Saturday in May of each year and notice of such election to be
published in general circulation in the county one time not later than the
30th day or later than the 10th day, rather than at least 10 days prior,
before the date of the election. Requires a person wishing to be on the
ballot as a director of the Ochiltree County Hospital District to file a
petition not later than the 25th day before, rather than at least 25 days
prior to, the date of the election. Deletes text regarding land subject to
taxation. Makes conforming and nonsubstantive changes.
SECTION 3. Amends Section 3A(a), Chapter 103, Acts of the 57th
Legislature, Regular Session, 1961, to provide that this section applies
only to the Ochiltree County and Castro County hospital districts.
SECTION 4. Amends Section 4, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, to make a conforming change.
SECTION 5. Amends Section 5, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, to require the board of directors of the Ochiltree
County or Hansford County Hospital District, upon creation of such hospital
district, to have certain powers and duties. Makes conforming changes.
SECTION 6. Amends Chapter 103, Acts of the 57th Legislature, Regular
Session, 1961, by adding Section 5A, as follows:
Sec. 5A. Provides that this section applies only to the Castro County
Hospital District. Authorizes the board of directors to annually impose
property taxes in an amount not to exceed the certain approved limits.
Prohibits the tax rate for all purposes from exceeding 75 cents on each
$100 valuation of all taxable property in the district. Sets forth
indebtedness and expenses for which the taxes may be used to pay.
Prohibits the district from imposing taxes to pay the principal of or
interest on revenue bonds issued by the district. Provides that the Tax
Code governs the appraisal, assessment, and collection of district taxes.
Authorizes the board of directors to provide for the appointment of a tax
assessor-collector for the district or to contract for the assessment and
collection of taxes.
SECTION 7. Amends Section 6, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, to require the board of directors to have the power
and authority to issue and sell general obligation bonds in the name and
upon the faith and credit of such hospital district for certain
improvements regarding the hospital. Prohibits taxes levied, at the time
of issuance of any general obligation bond, by the Castro County Hospital
District from exceeding the limit approved by voters at the election
authorizing the levy of taxes. Requires refunding of bonds issued by
Castro County Hospital District to be issued in a specific manner. Deletes
text regarding legally qualified property taxpaying. Makes conforming
changes.
SECTION 8. Amends Section 6A, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, by amending Subsection (a) and adding Subsection
(b), to authorize the board of directors of the Castro County Hospital
District to issue revenue bonds in the name and on the faith and credit of
the district for certain purposes relating to hospital improvements and
expansion. Requires the revenue bonds to be payable from and secured by a
pledge of all or part of the hospital district's operations revenues.
Authorizes the bonds to also be secured by a mortgage or deed of trust on
all or part of the district's property. Sets forth the manner in which the
bonds must be issued. Makes conforming changes.
SECTION 9. Amends Section 6B, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, to make conforming changes.
SECTION 10. Amends Section 7, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, to make conforming changes.
SECTION 11. Amends Sections 8(b), (c), and (d), Chapter 103, Acts of the
57th Legislature, Regular Session, 1961, to make conforming changes.
SECTION 12. Amends Section 8A, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, by amending Subsections (f) through (l), to
authorize the district, subject to the approval of the board of directors,
to provide certain medical and health related services provided that the
services serve the purpose of the district as established by this Act.
Authorizes the board of directors to contract with a political subdivision
or governmental agency to provide investigatory or other services related
to facilities for the medical care, hospital, or welfare needs of the
inhabitants of the district to contract with certain entities to be
reimbursed for the care and treatment of the sick, diseased, or injured
persons of that entity. Authorizes the board of directors to also contract
with the state or agencies of the federal government to be reimbursed for
the treatment of the sick, diseased, or injured. Authorizes the district
to contract with, affiliate with, or enter into another arrangement with
certain health care organizations or systems. Authorizes the district to
sponsor and create a nonprofit corporation and to contribute funds to or
solicit funds for the corporation. Authorizes the corporation to use
certain funds only to provide health care or other services the district
may provide. Requires the board of directors of the hospital to establish
adequate controls to ensure that the corporation uses its funds as
required. Authorizes the corporation to invest its funds in any manner in
which the district may invest funds. Authorizes the board of directors to
spend district funds, enter into agreements, and take certain necessary
action to recruit physicians and other persons to serve as medical staff
members or employees of the district. Authorizes the board of directors to
enlist necessary measurements to assist in providing health care
educational programs for current or prospective medical staff members or
employees of the district. Authorizes the board of directors to provide
certain retirement benefits for employees of the district.
SECTION 13. Amends Section 9, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, to make conforming changes.
SECTION 14. Amends Section 14, Chapter 103, Acts of the 57th
Legislature, Regular Session, 1961, to make conforming changes.
SECTION 15. Amends Section 14A, Chapter 103, Acts of the 57th Legislature,
Regular Session, 1961, to make conforming changes.
SECTION 16. Amends Chapter 103, Acts of the 57th Legislature, Regular
Session, 1961, by adding Sections 16A and 21, as follows:
Sec. 16A. Provides that this section applies only to the Castro County
Hospital District. Authorizes the board of directors to borrow money at a
rate not to exceed the maximum annual percentage rate allowed by law for
district obligations at the time of the loan. Authorizes the board to make
certain pledges to secure a loan. Requires a loan for which taxes are
pledged to mature not later than first anniversary of the date on which the
loan is made. Requires a loan for which district revenues are pledged to
mature not later than fifth anniversary of the date on which the loan is
made.
Sec. 21. Provides that this section applies only to the Castro County
Hospital District. Authorizes the district to be dissolved only if in a
specific election by a majority of the voters. Authorizes the board of
directors to order an election regarding the dissolving of the district and
the dissolution of its assets and obligations. Requires the board to order
an election if it receives a petition requesting the dissolution that is
signed by at least 15 percent of the registered voters in the district.
Requires the election to be held not later than the 60th day after the date
the election is ordered. Provides that Section 41.001(a), Election Code,
does not apply to this section. Sets forth certain requirements with
regard to the order calling the election. Requires the board to give
notice of the election in a publication of general circulation once a week
for two consecutive weeks, and to appear not less than 35 days before the
date set for the election. Requires the ballot for the election to be
printed to permit voting for or against the proposition. Establishes that
the district is dissolved if a majority of the votes favor dissolution.
Establishes that if the majority of votes do not favor dissolution, the
board continues to administer the district and another election may not be
held before the first anniversary of the most recent election to dissolve
the board. Sets forth requirements for dissolution. Provides that if the
district transfers certain entities to a county or other governmental
agency, that county or agency assumes all debts and obligations upon
dissolution. Sets forth requirements for the board after the district is
dissolved. Requires the board, upon payment of all outstanding debts and
obligations of the district are paid, to order the secretary to return the
pro rata share of all unused tax money to each district taxpayer.
Authorizes a taxpayer to request the taxpayer's share of the surplus to be
credited to the taxpayer's county taxes, which requires the secretary to
transmit the funds to the county tax assessor-collector. Requires the
board to file a written report with the commissioners court of Castro
County setting forth a summary of the board's actions in dissolving the
district. Requires the commissioners court of Castro County, not later than
the 10th day after the date it receives the report, to enter an order
dissolving the district and releasing the board of directors from any
further duty or obligation. 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. Prohibits the dissolution of
the district and the sale or transfer of the district's assets and
liabilities from contravening a trust indenture or bond resolution relating
to 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. Provides
that transfer of assets and liabilities must satisfy the debt and bond
obligations of the district in a manner that protects certain entities.
Provides that a grant in 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 17. Emergency clause.
Effective date: upon passage.