By Keffer H.B. No. 2416
76R4826 CMR-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the North Runnels County Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2, Chapter 206, Acts of the 61st
1-5 Legislature, Regular Session, 1969, is amended to read as follows:
1-6 Sec. 2. The district herein authorized to be created shall
1-7 take over and there shall be transferred to it the title to all
1-8 lands, buildings, improvements, and equipment in anywise pertaining
1-9 to hospitals owned by the county or by any city or town within the
1-10 district, and thereafter it shall provide for the establishment,
1-11 administration, maintenance, operation, and financing of a hospital
1-12 system within its boundaries that includes a medical care system,
1-13 rural health clinics, outpatient clinics, nursing homes, and home
1-14 health services, and may provide any services or facilities
1-15 necessary for hospital agencies, extended care facilities, and
1-16 assisted living or personal care facilities, including retirement
1-17 benefits, housing, and medical office buildings by the purchase,
1-18 construction, acquisition, repair, or renovation of buildings and
1-19 equipment and the equipping of same and the administration thereof
1-20 for hospital purposes. Such district shall assume full
1-21 responsibility for providing medical and hospital care for its
1-22 needy inhabitants and shall assume the outstanding indebtedness
1-23 which shall have been incurred by Runnels County, and any city or
1-24 town therein for hospital purposes prior to the creation of the
2-1 district.
2-2 SECTION 2. Section 4, Chapter 206, Acts of the 61st
2-3 Legislature, Regular Session, 1969, is amended to read as follows:
2-4 Sec. 4. (a) The board of directors consists of seven
2-5 directors. All [At such time as the creation of the district is
2-6 approved and the returns of the election officially canvassed, the
2-7 commissioners court of the county shall convene and appoint seven
2-8 persons as directors to serve until the first Saturday in April of
2-9 the year succeeding the year of the district's creation, at which
2-10 time seven directors shall be elected. The four directors
2-11 receiving the highest vote at such election shall serve for two
2-12 years and the other three directors shall serve for one year.
2-13 Thereafter all] directors shall serve for a period of two years and
2-14 until their successors have been duly elected and have qualified.
2-15 (b) A regular election for directors shall be held on the
2-16 first Saturday in May of each year [Successors shall be elected by
2-17 vote of the electors of the entire district]. Notice of each such
2-18 election shall be published in a newspaper or newspapers which
2-19 individually or collectively provide general circulation in the
2-20 district one time not earlier than the 30th day or later than the
2-21 10th day [at least 30 days] prior to the date of the election. The
2-22 directors shall order the regular election for directors not later
2-23 than the 45th day before election day. The election order must
2-24 state the time, place, and purpose of the election. Any person
2-25 desiring to have his name printed on the ballot as a candidate for
2-26 director shall file an application [a petition signed by at least
2-27 10 qualified property taxpaying electors asking that such name be
3-1 printed on the ballot] with the secretary of the board of
3-2 directors[. Such petition shall be filed with the secretary] at
3-3 least 31 [10] days prior to the date of the election. Vacancies in
3-4 office shall be filled for the unexpired term by the remainder of
3-5 the directors. Directors of the district shall subscribe to the
3-6 constitutional oath of office and the directors may [shall] require
3-7 all officers and employees charged with handling funds to furnish
3-8 good bonds payable to the district and conditioned upon the
3-9 faithful performance of their duties, but in no event shall such
3-10 bond be for less than $5,000. The board may pay for the bond with
3-11 district funds. The bonds submitted by officers and employees
3-12 shall be signed by surety companies authorized to do business in
3-13 the state and the premiums on the bonds shall be paid by the
3-14 district. A majority of the directors shall constitute a quorum.
3-15 (c) No person shall be appointed as a member of the board of
3-16 directors unless that person [he] is a resident of the district[, a
3-17 freeholder,] and a qualified voter. Neither the administrator, an
3-18 employee of the district, nor a member of the staff of the hospital
3-19 shall be eligible to serve as a director.
3-20 (d) The board of directors shall organize by electing one of
3-21 their number as president and one of their number as vice
3-22 president. A secretary, who need not be a director, shall [also]
3-23 be appointed [elected]. Officers shall be elected for a term of
3-24 one year and vacancies shall be filled for the unexpired term by
3-25 the board of directors. [Any four members of the board of
3-26 directors shall constitute a quorum and a concurrence of four shall
3-27 be sufficient in all matters pertaining to the business of the
4-1 district.] All members of the board of directors and officers
4-2 shall serve without compensation, but may be reimbursed for actual
4-3 expenses incurred in the performance of their official duties upon
4-4 the approval of such expenses by the board of directors and so
4-5 reported in the minute book of the district or other records of the
4-6 district.
4-7 SECTION 3. Section 5, Chapter 206, Acts of the 61st
4-8 Legislature, Regular Session, 1969, is amended to read as follows:
4-9 Sec. 5. (a) The board of directors shall manage, control,
4-10 and administer the hospital and the hospital system and the
4-11 business, [all] funds, and resources of the district, but in no
4-12 event shall any operating, depreciation, or building fund reserves
4-13 be invested in any funds or securities other than those specified
4-14 in Articles 835 or 837, Revised [Civil] Statutes or Chapter 2256,
4-15 Government Code [of Texas, 1925, as amended]. The board is given
4-16 full authority to establish rules and regulations relating to
4-17 seniority of employees of the district (including a retirement plan
4-18 based thereon) and may give effect to previous years of service for
4-19 those employees who have been continuously employed in the
4-20 operation or management of the hospital facilities acquired
4-21 (including those acquired upon the creation thereof by reason of
4-22 Section 2 of this Act) or constructed by the district. The
4-23 district, through its board of directors, shall have the power and
4-24 authority to sue and be sued, and shall be entitled to all causes
4-25 of action and defenses enjoyed by similar authorities, to
4-26 promulgate rules and regulations governing the operation of the
4-27 hospital, hospital system, its staff and its employees.
5-1 (b) The board of directors may appoint a qualified person to
5-2 be known as the administrator [or manager] of the hospital district
5-3 and may in its discretion appoint an assistant or assistants to the
5-4 administrator [or manager]. Such administrator [or manager] and
5-5 assistant administrator [or manager], if any, shall serve at the
5-6 will of the board and shall receive such compensation as may be
5-7 fixed by the board. The board may require the administrator before
5-8 [or manager shall, upon] assuming the administrator's [his] duties
5-9 to[,] execute a bond payable to the hospital district in an amount
5-10 to be set by the board of directors, in no event less than $5,000
5-11 conditioned on the faithful performance of the administrator's
5-12 [that he shall perform the] duties [required of him,] and
5-13 containing such other conditions as the board may require. The
5-14 board may pay for the bond with district funds. The administrator
5-15 [or manager] shall supervise all the work and activities of the
5-16 district and shall have general direction of the affairs of the
5-17 district, subject to the limitations as may be prescribed by the
5-18 board. The board of directors, with the administrator, shall have
5-19 the authority to appoint to or dismiss from the staff such doctors
5-20 as it may be deemed necessary for the efficient operation of the
5-21 district, and may provide for temporary appointments to the staff
5-22 if warranted by circumstances. The board may delegate to the
5-23 administrator [or manager] the authority to employ technicians,
5-24 nurses, and employees of the district.
5-25 (c) Such board shall be authorized to contract with any
5-26 other political subdivision or governmental agency whereby the
5-27 district will provide investigatory or other services as to the
6-1 hospital, or welfare needs of the inhabitants of the district and
6-2 shall be authorized to contract with any county or incorporated
6-3 municipality located outside its boundaries for the hospitalization
6-4 of the sick, diseased, or injured persons of any such county or
6-5 municipality, and shall have the authority to contract with the
6-6 State of Texas or agencies of the federal government for the
6-7 hospital treatment of sick, diseased, or injured persons.
6-8 (d) The hospital district created by this Act is authorized
6-9 to purchase from any city hospital within the district, and each
6-10 said authority is hereby authorized to sell to said hospital
6-11 district, any and all hospital facilities, including all lands,
6-12 buildings, equipment, and properties owned by them upon such terms
6-13 and for such prices as they may mutually agree. If any such
6-14 hospital authority sells its facilities to the district, that
6-15 authority shall no longer be authorized to perform hospital
6-16 services within the boundaries of the district herein authorized
6-17 nor issue bonds therefor.
6-18 (e) The board may purchase or lease property, facilities, or
6-19 equipment for the district to use in the hospital system and may
6-20 mortgage or pledge the property, facilities, or equipment as
6-21 security for the payment of the purchase price.
6-22 (f) The board may enter into one or more contracts to
6-23 provide administrative and other personnel for the operation of the
6-24 hospital facilities. The term of a contract may not exceed 25
6-25 years from the date on which the contract is entered. The board
6-26 may transfer district hospital facilities by lease to individuals,
6-27 corporations, or other legal entities and may sell or otherwise
7-1 dispose of the district's property, facilities, and equipment.
7-2 (g) The board may provide retirement benefits for the
7-3 employees of the district by establishing or administering a
7-4 retirement program or electing to participate in the Texas County
7-5 and District Retirement System or any other statewide retirement
7-6 system in which the district is eligible to participate.
7-7 (h) The board of directors may spend district funds to
7-8 recruit physicians, nurses, and other trained medical personnel.
7-9 The board may contract with one or more full-time medical students
7-10 or other students in a health occupation who are enrolled in good
7-11 standing in an accredited medical school, college, or university,
7-12 to pay the student's tuition or other expenses in consideration of
7-13 the student's contractual agreement to serve as an employee or
7-14 independent contractor for the district under terms prescribed by
7-15 the contract.
7-16 (i) The board may institute a suit to enforce the payment of
7-17 taxes and to foreclose liens to secure the payment of taxes due to
7-18 the district.
7-19 (j) The hospital district may provide services outside the
7-20 boundaries of the district.
7-21 SECTION 4. Section 6, Chapter 206, Acts of the 61st
7-22 Legislature, Regular Session, 1969, is amended to read as follows:
7-23 Sec. 6. The district shall be operated on the basis of a
7-24 fiscal year established by the board of directors. The fiscal year
7-25 may not be changed when revenue bonds are outstanding or more than
7-26 one time in a 24-month period. [commencing on July 1 of each year
7-27 and ending on June 30 of the following year, and it] The board
8-1 shall cause an annual [independent] audit to be made of the
8-2 financial condition of said district, which, together with other
8-3 records of the district, shall be open to inspection at the
8-4 principal office of the district[, such audit to be made covering
8-5 such fiscal year, and the same shall be filed at the office of the
8-6 district as soon as it is completed]. The administrator [or
8-7 manager] shall prepare an annual budget for approval by the board
8-8 of directors. The budget shall also contain a complete financial
8-9 statement of the district showing all outstanding obligations of
8-10 the district, the cash on hand to the credit of each and every fund
8-11 of the district, the funds received from all sources during the
8-12 previous year, the funds available from all sources during the
8-13 ensuing year, with balances expected at end of the year in which
8-14 the budget is being prepared, and estimated revenues and balances
8-15 available to cover the proposed budget and the estimated tax rate
8-16 which will be required, and the proposed expenditures and
8-17 disbursements and the estimated receipts and collections for the
8-18 following fiscal year. A public hearing on the annual budget shall
8-19 be held by the board of directors after notice of such hearing has
8-20 been published in accordance with the open meetings law, Chapter
8-21 551, Government Code [one time at least 10 days before the date set
8-22 therefor. Notice of the budget hearing shall be published in a
8-23 newspaper or newspapers which individually or collectively provide
8-24 general circulation in the hospital district]. Any resident
8-25 [property taxpayer] of the district shall have the right to be
8-26 present and participate in said hearing. At the conclusion of the
8-27 hearing, the budget, as proposed by the administrator, shall be
9-1 acted upon by the board of directors. The board of directors shall
9-2 have authority to make such changes in the budget as in their
9-3 judgment the law warrants and the interest of the residents
9-4 [taxpayers] demand. No expenditure may be made for any expense not
9-5 included in the annual budget or an amendment thereto. The annual
9-6 budget may be amended from time to time as the circumstances may
9-7 require, but the annual budget, and all amendments thereto, shall
9-8 be approved by the board of directors. As soon as practicable
9-9 after the close of each fiscal year, the administrator [or manager]
9-10 shall prepare for the board a full sworn statement of all money
9-11 [moneys] belonging to the district and a full account of the
9-12 disbursements of same.
9-13 SECTION 5. Section 9, Chapter 206, Acts of the 61st
9-14 Legislature, Regular Session, 1969, is amended to read as follows:
9-15 Sec. 9. (a) The board of directors may issue general
9-16 obligation [shall have the power and authority to issue and sell
9-17 its] bonds in the name and upon the faith and credit of such
9-18 hospital district to:
9-19 (1) purchase, construct, acquire, repair, or renovate
9-20 buildings or improvements;
9-21 (2) equip buildings or improvements for hospital
9-22 purposes; or
9-23 (3) acquire and operate a mobile emergency medical or
9-24 air ambulance service [for the purchase, construction, acquisition,
9-25 repair, or renovation of buildings, and improvements and equipping
9-26 the same for hospital purposes, and for any or all of such
9-27 purposes].
10-1 (b) At the time of the issuances of any general obligation
10-2 bonds by the district a tax shall be levied by the board sufficient
10-3 to create an interest and sinking fund to pay the interest on and
10-4 principal of said bonds as same mature, providing such tax,
10-5 together with any other taxes levied for said district, shall not
10-6 exceed the rate of tax approved by the voters at the election
10-7 authorizing the levy of taxes. The district may issue general
10-8 obligation bonds only if the bonds are authorized by a majority of
10-9 the qualified voters of the district voting at an election called
10-10 and held for the purpose. The board may order a bond election.
10-11 The order calling the election shall state the nature and date of
10-12 the election, the hours during which the polls will be open, the
10-13 location of the polling places, the amounts of the bonds to be
10-14 authorized, and the maximum maturity of the bonds. Notice of a
10-15 bond election shall be given as provided for by Article 704,
10-16 Revised Statutes. The board shall canvass the returns and declare
10-17 the results of the election. The election [voted under the
10-18 provisions of Section 3 of this Act. No bonds shall be issued by
10-19 such hospital district except refunding bonds until authorized by a
10-20 majority of the qualified property taxpaying electors of the
10-21 district voting at an election called for such purpose. The order
10-22 for bond election shall specify the date of the election, the
10-23 amount of bonds to be authorized, the maximum rate of interest they
10-24 are to bear, the place or places where the election shall be held,
10-25 the presiding judge and alternate judge for each voting place, and
10-26 provide for clerks as in county elections. Except as to a bond
10-27 election held pursuant to the provisions of Subsection (b) of this
11-1 section, where notice shall be given as provided in Section 3,
11-2 notice of any bond election shall be given as provided in Article
11-3 704, Revised Civil Statutes of Texas, 1925, as amended, and] shall
11-4 be conducted in accordance with the general laws of Texas
11-5 pertaining to general elections, except as modified by the
11-6 provisions of this Act.
11-7 (c) The district may issue revenue bonds for a purpose
11-8 described by Subsection (a) of this section. The bonds shall be
11-9 payable from and secured by a pledge or all or part of the revenues
11-10 derived from the operation of the district's hospital system. The
11-11 bonds may be additionally secured by a mortgage or deed of trust on
11-12 all or part of the district's property. The revenue bonds shall be
11-13 issued in the manner provided by Sections 264.042, 264.043,
11-14 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for
11-15 the issuance of revenue bonds by county hospital authorities.
11-16 (d) [(b) A separate proposition may be submitted at the
11-17 election for the creation or confirmation of the district as to
11-18 whether the board of directors, in the event the district is
11-19 created, shall be authorized to issue bonds for any one or more of
11-20 the foregoing purposes. The proposition, if submitted, shall
11-21 specify the purpose for which the bonds are to be issued, the
11-22 maximum amount of bonds then proposed to be issued, the maximum
11-23 maturity, and the maximum interest rate.]
11-24 [(c)] Refunding bonds of the district may be issued for the
11-25 purpose of refunding and paying off any outstanding indebtedness
11-26 issued. Such refunding bonds may be sold and the proceeds
11-27 therefrom applied to the payment of outstanding indebtedness, or
12-1 may be exchanged in whole or in part for not less than a like
12-2 principal amount of such outstanding indebtedness provided that, if
12-3 refunding bonds are to be exchanged for a like amount of said
12-4 outstanding indebtedness, such refunding bonds shall bear interest
12-5 at the same or lower rate than borne by the debt refunded, unless
12-6 it is shown mathematically that a saving will result in the total
12-7 amount of interest to be paid on said refunding bonds, and provided
12-8 further that if such refunding bonds are to be sold and the
12-9 proceeds thereof applied to the payment of any such outstanding
12-10 indebtedness, same shall be issued and payments made in the manner
12-11 specified by Chapter 503, Acts of the 54th Legislature, Regular
12-12 Session, 1955, as amended (Article 717k, Vernon's Texas Civil
12-13 Statutes).
12-14 (e) [(d)] Bonds of the district shall bear interest not to
12-15 exceed the amount provided by Chapter 3, Acts of the 61st
12-16 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
12-17 Civil Statutes) [six and one-half percent a year], shall mature
12-18 within 40 years of their date, shall be executed in the name of the
12-19 hospital district and in its behalf by the president of the board
12-20 and countersigned by the secretary in the manner provided by
12-21 Chapter 204, Acts of the 57th Legislature, Regular Session, 1961,
12-22 as amended (Article 717j-1, Vernon's Texas Civil Statutes), and
12-23 shall be subject to the same requirements in the matter of approval
12-24 by the Attorney General of Texas and registration by the
12-25 Comptroller of Public Accounts of the State of Texas as are by law
12-26 provided for approval and registration of bonds issued by counties.
12-27 Upon the approval of such bonds by the attorney general and
13-1 registration by the comptroller, the same shall be incontestable
13-2 for any cause.
13-3 SECTION 6. Section 10, Chapter 206, Acts of the 61st
13-4 Legislature, Regular Session, 1969, is amended to read as follows:
13-5 Sec. 10. In addition to the power to issue bonds payable
13-6 from taxes levied by the district, as contemplated by the preceding
13-7 section, the board of directors is further authorized to issue and
13-8 to refund any previously issued revenue bonds for purchasing,
13-9 constructing, acquiring, repairing, equipping, or renovating
13-10 buildings and improvements for hospital purposes, and for acquiring
13-11 sites therefor, such bonds to be payable from and secured by a
13-12 pledge of all or any part of the revenues of the district to be
13-13 derived from the operation of its hospital or hospitals, and such
13-14 bonds may be additionally secured by a mortgage or deed of trust
13-15 lien on any part or all of its properties. Such bonds shall be
13-16 issued in the manner and in accordance with the procedures and
13-17 requirements specified for the issuance of revenue bonds by county
13-18 hospital authorities in Sections 264.042, 264.043, 264.046,
13-19 264.047, and 264.048, Health and Safety Code [8, 10, 11, 12, and 13
13-20 of Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r,
13-21 Vernon's Texas Civil Statutes)].
13-22 SECTION 7. Section 11, Chapter 206, Acts of the 61st
13-23 Legislature, Regular Session, 1969, is amended to read as follows:
13-24 Sec. 11. The board of directors is hereby given complete
13-25 discretion as to the type of buildings, both as to number and
13-26 location, required to establish and maintain an adequate hospital
13-27 system. The hospital system may include facilities for domiciliary
14-1 care of the sick, wounded, and injured, facilities for out-patient
14-2 clinic or clinics, pharmacies [dispensaries], facilities for
14-3 geriatric domiciliary care, convalescent home facilities, necessary
14-4 nurses domiciliaries and training centers, blood banks, community
14-5 mental health centers, and research centers or laboratories, and
14-6 any other facilities deemed necessary for hospital care by the
14-7 directors. The district, through its board of directors, is
14-8 further authorized to enter into an operating or management
14-9 contract with regard to its facilities or a part thereof, or may
14-10 lease all or part of its buildings and facilities upon terms and
14-11 conditions considered to be to the best interest of its
14-12 inhabitants, provided that in no event shall any lease be for a
14-13 period in excess of 25 years from the date entered. The district
14-14 shall be empowered to sell or otherwise dispose of any property,
14-15 real or personal, or equipment of any nature upon terms and
14-16 conditions found by the board to be in the best interest of its
14-17 inhabitants.
14-18 SECTION 8. Section 12, Chapter 206, Acts of the 61st
14-19 Legislature, Regular Session, 1969, is amended to read as follows:
14-20 Sec. 12. The board of directors of such district shall have
14-21 the power to prescribe the method and manner of making purchases
14-22 and expenditures by and for such hospital district, and shall also
14-23 be authorized to prescribe all accounting and control procedures.
14-24 The hospital district shall comply with the bidding requirements
14-25 prescribed by Chapter 271, Local Government Code [All contracts for
14-26 construction or purchases involving the expenditure of more than
14-27 $2,000 may be made only after advertising in the manner provided by
15-1 Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931,
15-2 as amended (Article 2368a, Vernon's Texas Civil Statutes)]. The
15-3 provisions of Chapter 2253, Government Code, [Article 5160,
15-4 Revised Civil Statutes of Texas, 1925, as amended] relating to
15-5 performance and payment bonds shall apply to construction contracts
15-6 let by the district. The district may acquire equipment for use in
15-7 its hospital system and mortgage or pledge the property so acquired
15-8 as security for the payment of the purchase price, but any such
15-9 contract shall provide for the entire obligation of the district to
15-10 be retired within five years from the date of the contract. Except
15-11 as permitted in the preceding sentence and as permitted by Sections
15-12 9 and 10, the district may incur no obligation payable from any
15-13 revenues of the district, taxes or otherwise except those on hand
15-14 or to be on hand within the then current and following fiscal year
15-15 of the district.
15-16 SECTION 9. Section 13, Chapter 206, Acts of the 61st
15-17 Legislature, Regular Session, 1969, is amended to read as follows:
15-18 Sec. 13. The board of directors of the district shall name
15-19 one or more banks [within its boundaries] to serve as depository
15-20 for the funds of the district. All funds of the district, except
15-21 those invested as provided in Section 5, and those transmitted to a
15-22 bank or banks as payment for bonds or obligations issued by the
15-23 district, shall be deposited as received with the depository bank
15-24 and shall remain on deposit, provided that nothing herein shall
15-25 limit the power of the board to place a portion of such funds on
15-26 time deposit or purchase certificates of deposit. Membership on
15-27 the board of directors of an officer or director of a bank shall
16-1 not disqualify such bank from being designated as depository.
16-2 SECTION 10. Section 14, Chapter 206, Acts of the 61st
16-3 Legislature, Regular Session, 1969, is amended to read as follows:
16-4 Sec. 14. The board of directors shall annually levy a tax
16-5 [of] not to exceed the amount hereinabove permitted for the purpose
16-6 of (1) paying the interest on and creating a sinking fund for bonds
16-7 and other obligations which may be issued or assumed by the
16-8 hospital district for hospital purposes as herein provided; (2)
16-9 providing for the operation and maintenance of the hospital
16-10 district and hospital system; and (3) for the purpose of making
16-11 further improvements and additions to the hospital system, and for
16-12 the acquisition of necessary sites therefor by purchase, lease or
16-13 condemnation. In setting such tax rate the board shall take into
16-14 consideration the income of the district from sources other than
16-15 taxation. Upon determination of the amount of tax required to be
16-16 levied, the board shall make such levy and certify the same to the
16-17 tax assessor-collector of said district.
16-18 SECTION 11. Section 16, Chapter 206, Acts of the 61st
16-19 Legislature, Regular Session, 1969, is amended to read as follows:
16-20 Sec. 16. The district shall have the right and power of
16-21 eminent domain for the purpose of acquiring by condemnation any and
16-22 all property of any kind and character in fee simple, or any lessor
16-23 interest therein, within the boundaries of the district necessary
16-24 to the powers, rights, and privileges conferred by this Act, in the
16-25 manner provided by the general law with respect to condemnation by
16-26 counties, provided that the district shall not be required to make
16-27 deposits in the registry of the trial court of the sum required by
17-1 Section 21.021, Property Code [paragraph 2 of Article 3268, Revised
17-2 Civil Statutes of Texas, 1925, as amended], or to make bond as
17-3 therein provided. In condemnation proceedings being prosecuted by
17-4 the district, the district shall not be required to pay in advance
17-5 or give bond or other security for costs in the trial court, nor to
17-6 give any bond otherwise required for the issuance of a temporary
17-7 restraining order or a temporary injunction nor to give bond for
17-8 costs or for supersedeas on any appeal or writ of error.
17-9 SECTION 12. Section 17, Chapter 206, Acts of the 61st
17-10 Legislature, Regular Session, 1969, is amended to read as follows:
17-11 Sec. 17. (a) The directors shall have the authority to levy
17-12 taxes for the entire year in which the district is established as
17-13 the result of the election herein provided. All taxes of the
17-14 district shall be assessed and collected [on county tax values] as
17-15 provided in Subsection (b) [(1)] hereof [unless the directors, by
17-16 majority vote, elect to have taxes assessed and collected by its
17-17 own tax assessor-collector under Subsection (2) hereof. Any such
17-18 election may be made prior to December 1 annually and shall govern
17-19 the manner in which taxes are thereafter assessed and collected,
17-20 until changed by a similar resolution].
17-21 (b) The board of directors may annually impose property
17-22 taxes in an amount not to exceed the limit approved by the voters
17-23 at the election authorizing the levy of taxes. The tax rate for
17-24 all purposes may not exceed 75 cents on each $100 valuation of all
17-25 taxable property in the district. The taxes may be used to pay for
17-26 indebtedness issued or assumed by the district and for the
17-27 maintenance and operating expenses of the district. The district
18-1 may not impose taxes to pay the principal of or interest on revenue
18-2 bonds. The Tax Code governs the appraisal, assessment, and
18-3 collection of district taxes. The board may provide for the
18-4 appointment of a tax assessor-collector for the district or may
18-5 contract for the assessment and collection of taxes as provided by
18-6 the Tax Code [(1) Under this subsection, district taxes shall be
18-7 assessed and collected on county tax values in the same manner as
18-8 provided by law with relation to county taxes. The tax
18-9 assessor-collector of the county in which said district is situated
18-10 shall be charged and required to accomplish the assessment and
18-11 collection of all taxes levied by and on behalf of the district.
18-12 The assessor-collector of taxes shall charge and deduct from
18-13 payments to the hospital district an amount as fees for assessing
18-14 and collecting the taxes at a rate of not exceeding two percent of
18-15 the amounts collected as may be determined by the board of
18-16 directors, but in no event shall the amount paid exceed $5,000 in
18-17 any one calendar year. Such fees shall be deposited in the
18-18 officers salary fund of the county and reported as fees of office
18-19 of the county tax assessor-collector. Interest and penalties on
18-20 taxes paid to the hospital district shall be the same as in the
18-21 case of county taxes. Discounts shall be the same as allowed by
18-22 the county. The residue of tax collections after deduction of
18-23 discounts and fees for assessing and collecting shall be deposited
18-24 in the district's depository. The bond of the county tax
18-25 assessor-collector shall stand as security for the proper
18-26 performance of his duties as assessor-collector of the district;
18-27 or, if in the judgment of the district board of directors it is
19-1 necessary, additional bond payable to the district may be required.
19-2 In all matters pertaining to the assessment, collection and
19-3 enforcement of taxes for the district, the county tax
19-4 assessor-collector shall be authorized to act in all respects
19-5 according to the laws of the State of Texas relating to state and
19-6 county taxes.]
19-7 [(2) Under this subsection, taxes shall be assessed
19-8 and collected by a tax assessor-collector appointed by the
19-9 directors, who shall also fix the terms of his employment,
19-10 compensation, and requirement for bond to assure the faithful
19-11 performance of his duties, but in no event shall such bond be for
19-12 less than $5,000. The directors shall also annually appoint five
19-13 persons to serve as a board of equalization and shall fix their
19-14 compensation. Each member of the board and the tax assessor shall
19-15 be residents of the district and own real property subject to
19-16 hospital district taxation, and each shall have the same duties,
19-17 including the obligation to execute the oath of office, as required
19-18 by county officials exercising such powers and duties. Except as
19-19 in this law provided to the contrary, all the provisions of Title
19-20 122, Revised Civil Statutes of Texas, 1925, as amended, shall apply
19-21 to the district].
19-22 SECTION 13. Section 19, Chapter 206, Acts of the 61st
19-23 Legislature, Regular Session, 1969, is amended to read as follows:
19-24 Sec. 19. Whenever a patient residing within the district has
19-25 been admitted to the facilities thereof, the administrator [or
19-26 manager] may cause inquiry to be made as to the patient's [his]
19-27 circumstances and those of the relatives of such patient legally
20-1 liable for the patient's [his] support. If the administrator [he]
20-2 finds that such patient or said relatives are able to pay for the
20-3 patient's [his] care and treatment in whole or in part, an order
20-4 shall be made directing such patient or said relatives to pay to
20-5 the hospital district for the care and support of such patient a
20-6 specified sum per week in proportion to their financial ability.
20-7 The administrator [or manager] shall have power and authority to
20-8 collect such sums from the estate of the patient or the patient's
20-9 [his] relatives legally liable for the patient's [his] support in
20-10 the manner provided by law for collection of expenses in the last
20-11 illness of a deceased person. If the administrator [or manager]
20-12 finds that such patient or said relatives are not able to pay
20-13 either in whole or in part for the patient's [his] care and
20-14 treatment in such hospital, same shall become a charge upon the
20-15 hospital district as to the amount of the inability to pay. Should
20-16 there be any dispute as to the ability to pay or doubt in the mind
20-17 of the administrator [or manager], the board of directors shall
20-18 hear and determine same after calling witnesses, and shall make
20-19 such order or orders as may be proper. Appeals from the final
20-20 order of the board shall lie to the district court. The
20-21 substantial evidence rule shall apply.
20-22 SECTION 14. Chapter 206, Acts of the 61st Legislature,
20-23 Regular Session, 1969, is amended by adding Sections 20a and 20b to
20-24 read as follows:
20-25 Sec. 20a. (a) The board may borrow money at a rate not to
20-26 exceed the maximum annual percentage rate allowed by law for
20-27 district obligations at the time of the loan.
21-1 (b) To secure a loan, the board may pledge:
21-2 (1) the revenues of the district that are not pledged
21-3 to pay the bonded indebtedness of the district;
21-4 (2) district taxes to be levied by the district during
21-5 the 12-month period following the date of the pledge that are not
21-6 pledged to pay the principal of or interest on district bonds; or
21-7 (3) district bonds that have been authorized but not
21-8 sold.
21-9 (c) A loan for which taxes or bonds are pledged shall mature
21-10 not later than the first anniversary of the date on which the loan
21-11 is made. A loan for which district revenues are pledged shall
21-12 mature not later than the fifth anniversary of the date on which
21-13 the loan is made.
21-14 Sec. 20b. (a) The district may be dissolved only if the
21-15 dissolution is approved by a majority of the qualified voters of
21-16 the district voting in an election called and held for that
21-17 purpose.
21-18 (b) The board may order an election on the question of
21-19 dissolving the district and disposing of the district's assets and
21-20 obligations. The board shall order an election if the board
21-21 receives a petition requesting an election that is signed by a
21-22 number of residents of the district equal to at least 15 percent of
21-23 the registered voters in the district.
21-24 (c) The election shall be held not later than the 60th day
21-25 after the date the election is ordered. Section 41.001(a),
21-26 Election Code, does not apply to an election ordered under this
21-27 section. The order calling the election shall state:
22-1 (1) the nature of the election, including the
22-2 proposition that is to appear on the ballot;
22-3 (2) the date of the election;
22-4 (3) the hours during which the polls will be open; and
22-5 (4) the location of the polling places.
22-6 (d) The board shall give notice of the election by
22-7 publishing a substantial copy of the election order in a newspaper
22-8 of general circulation in the district once a week for two
22-9 consecutive weeks. The first publication must appear not fewer
22-10 than 35 days before the date of the election. The ballot for the
22-11 election shall be printed to permit voting for or against the
22-12 proposition: "The dissolution of the North Runnels County Hospital
22-13 District."
22-14 (e) If a majority of the votes in the election favor
22-15 dissolution, the board shall find that the district is dissolved.
22-16 If a majority of the votes in the election do not favor
22-17 dissolution, the board shall continue to administer the district,
22-18 and another election on the question of dissolution may not be held
22-19 before the first anniversary of the most recent election to
22-20 dissolve the district.
22-21 (f) If a majority of the votes in the election favor
22-22 dissolution, the board shall:
22-23 (1) transfer the land, buildings, improvements,
22-24 equipment, and other assets that belong to the district to Runnels
22-25 County or another governmental entity in Runnels County; or
22-26 (2) administer the property, assets, and debts until
22-27 all funds have been disposed of and all district debts have been
23-1 paid or settled.
23-2 (g) If the district transfers the land, buildings,
23-3 improvements, equipment, and other assets to a county or other
23-4 governmental entity, the county or entity assumes all debts and
23-5 obligations of the district at the time of the transfer, and the
23-6 district is dissolved.
23-7 (h) After the board finds that the district is dissolved,
23-8 the board shall:
23-9 (1) determine the debt owed by the district; and
23-10 (2) impose on the property included in the district's
23-11 tax rolls a tax that is in proportion of the debt to the property
23-12 value.
23-13 (i) When all outstanding debts and obligations of the
23-14 district are paid, the board shall order the secretary to return
23-15 the pro rata share of all unused tax money to each district
23-16 taxpayer.
23-17 (j) A taxpayer may request that the taxpayer's share of
23-18 surplus tax money be credited to the taxpayer's county taxes. If a
23-19 taxpayer requests the credit, the board shall direct the secretary
23-20 to transmit the funds to the county tax assessor-collector.
23-21 (k) After the district has paid all its debts and has
23-22 disposed of all its assets and funds as prescribed by this section,
23-23 the board shall file a written report with the commissioners court
23-24 of Runnels County setting forth a summary of the board's actions in
23-25 dissolving the district.
23-26 (l) Not later than the 10th day after the date it receives
23-27 the report and determines that the requirements of this section
24-1 have been fulfilled, the commissioners court of Runnels County
24-2 shall enter an order dissolving the district and releasing the
24-3 board from any further duty or obligation.
24-4 (m) Notwithstanding any other provisions of this Act, the
24-5 district may not be dissolved unless the board provides for the
24-6 sale or transfer of the district's assets and liabilities to
24-7 another person or entity. The dissolution of the district and the
24-8 sale or transfer of the district's assets and liabilities to
24-9 another person or entity may not contravene a trust indenture or
24-10 bond resolution relating to the outstanding bonds of the district.
24-11 The dissolution and sale or transfer does not diminish or impair
24-12 the rights of a holder of an outstanding bond, warrant, or other
24-13 obligation of the district.
24-14 (n) The sale or transfer of the district's assets and
24-15 liabilities must satisfy the debt and bond obligations of the
24-16 district in a manner that protects the interests of the residents
24-17 of the district, including the residents' collective property
24-18 rights in the district's assets. A grant from federal funds is an
24-19 obligation to be repaid in satisfaction. The district may not
24-20 transfer or dispose of the district's assets except for due
24-21 compensation unless the transfer is made to another governmental
24-22 entity that serves the district and the transferred assets are to
24-23 be used for the benefit of the residents of the district.
24-24 SECTION 15. The importance of this legislation and the
24-25 crowded condition of the calendars in both houses create an
24-26 emergency and an imperative public necessity that the
24-27 constitutional rule requiring bills to be read on three several
25-1 days in each house be suspended, and this rule is hereby suspended,
25-2 and that this Act take effect and be in force from and after its
25-3 passage, and it is so enacted.