1-1 By: Keffer (Senate Sponsor - Fraser) H.B. No. 2416
1-2 (In the Senate - Received from the House April 19, 1999;
1-3 April 20, 1999, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 6, 1999, reported favorably by the
1-5 following vote: Yeas 5, Nays 0; May 6, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the North Runnels County Hospital District.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 2, Chapter 206, Acts of the 61st
1-11 Legislature, Regular Session, 1969, is amended to read as follows:
1-12 Sec. 2. The district herein authorized to be created shall
1-13 take over and there shall be transferred to it the title to all
1-14 lands, buildings, improvements, and equipment in anywise pertaining
1-15 to hospitals owned by the county or by any city or town within the
1-16 district, and thereafter it shall provide for the establishment,
1-17 administration, maintenance, operation, and financing of a hospital
1-18 system that may include a medical care system, rural health
1-19 clinics, outpatient clinics, nursing homes, and home health
1-20 services, and may provide any services or facilities necessary for
1-21 hospital agencies, extended care facilities, and assisted living or
1-22 personal care facilities, including retirement benefits, housing,
1-23 and medical office buildings by the purchase, construction,
1-24 acquisition, repair, or renovation of buildings and equipment and
1-25 the equipping of same and the administration thereof for hospital
1-26 purposes. Such district shall assume full responsibility for
1-27 providing medical and hospital care for its needy inhabitants and
1-28 shall assume the outstanding indebtedness which shall have been
1-29 incurred by Runnels County, and any city or town therein for
1-30 hospital purposes prior to the creation of the district.
1-31 SECTION 2. Section 4, Chapter 206, Acts of the 61st
1-32 Legislature, Regular Session, 1969, is amended to read as follows:
1-33 Sec. 4. (a) The board of directors consists of seven
1-34 directors. All [At such time as the creation of the district is
1-35 approved and the returns of the election officially canvassed, the
1-36 commissioners court of the county shall convene and appoint seven
1-37 persons as directors to serve until the first Saturday in April of
1-38 the year succeeding the year of the district's creation, at which
1-39 time seven directors shall be elected. The four directors
1-40 receiving the highest vote at such election shall serve for two
1-41 years and the other three directors shall serve for one year.
1-42 Thereafter all] directors shall serve for a period of two years and
1-43 until their successors have been duly elected and have qualified.
1-44 (b) A regular election for directors shall be held on the
1-45 first Saturday in May of each year [Successors shall be elected by
1-46 vote of the electors of the entire district]. Notice of each such
1-47 election shall be published in a newspaper or newspapers which
1-48 individually or collectively provide general circulation in the
1-49 district one time not earlier than the 30th day or later than the
1-50 10th day [at least 30 days] prior to the date of the election. The
1-51 directors shall order the regular election for directors not later
1-52 than the 45th day before election day. The election order must
1-53 state the time, place, and purpose of the election. Any person
1-54 desiring to have his name printed on the ballot as a candidate for
1-55 director shall file an application [a petition signed by at least
1-56 10 qualified property taxpaying electors asking that such name be
1-57 printed on the ballot] with the secretary of the board of
1-58 directors[. Such petition shall be filed with the secretary] at
1-59 least 31 [10] days prior to the date of the election. Vacancies in
1-60 office shall be filled for the unexpired term by the remainder of
1-61 the directors. Directors of the district shall subscribe to the
1-62 constitutional oath of office and the directors may [shall] require
1-63 all officers and employees charged with handling funds to furnish
1-64 good bonds payable to the district and conditioned upon the
2-1 faithful performance of their duties, but in no event shall such
2-2 bond be for less than $5,000. The board may pay for the bond with
2-3 district funds. The bonds submitted by officers and employees
2-4 shall be signed by surety companies authorized to do business in
2-5 the state and the premiums on the bonds shall be paid by the
2-6 district. A majority of the directors shall constitute a quorum.
2-7 (c) No person shall be appointed as a member of the board of
2-8 directors unless that person [he] is a resident of the district[, a
2-9 freeholder,] and a qualified voter. Neither the administrator, an
2-10 employee of the district, nor a member of the staff of the hospital
2-11 shall be eligible to serve as a director.
2-12 (d) The board of directors shall organize by electing one of
2-13 their number as president and one of their number as vice
2-14 president. A secretary, who need not be a director, shall [also]
2-15 be appointed [elected]. Officers shall be elected for a term of
2-16 one year and vacancies shall be filled for the unexpired term by
2-17 the board of directors. [Any four members of the board of
2-18 directors shall constitute a quorum and a concurrence of four shall
2-19 be sufficient in all matters pertaining to the business of the
2-20 district.] All members of the board of directors and officers
2-21 shall serve without compensation, but may be reimbursed for actual
2-22 expenses incurred in the performance of their official duties upon
2-23 the approval of such expenses by the board of directors and so
2-24 reported in the minute book of the district or other records of the
2-25 district.
2-26 SECTION 3. Section 5, Chapter 206, Acts of the 61st
2-27 Legislature, Regular Session, 1969, is amended to read as follows:
2-28 Sec. 5. (a) The board of directors shall manage, control,
2-29 and administer the hospital and the hospital system and the
2-30 business, [all] funds, and resources of the district, but in no
2-31 event shall any operating, depreciation, or building fund reserves
2-32 be invested in any funds or securities other than those specified
2-33 in Articles 835 or 837, Revised [Civil] Statutes or Chapter 2256,
2-34 Government Code [of Texas, 1925, as amended]. The board is given
2-35 full authority to establish rules and regulations relating to
2-36 seniority of employees of the district (including a retirement plan
2-37 based thereon) and may give effect to previous years of service for
2-38 those employees who have been continuously employed in the
2-39 operation or management of the hospital facilities acquired
2-40 (including those acquired upon the creation thereof by reason of
2-41 Section 2 of this Act) or constructed by the district. The
2-42 district, through its board of directors, shall have the power and
2-43 authority to sue and be sued, and shall be entitled to all causes
2-44 of action and defenses enjoyed by similar authorities, to
2-45 promulgate rules and regulations governing the operation of the
2-46 hospital, hospital system, its staff and its employees.
2-47 (b) The board of directors may appoint a qualified person to
2-48 be known as the administrator [or manager] of the hospital district
2-49 and may in its discretion appoint an assistant or assistants to the
2-50 administrator [or manager]. Such administrator [or manager] and
2-51 assistant administrator [or manager], if any, shall serve at the
2-52 will of the board and shall receive such compensation as may be
2-53 fixed by the board. The board may require the administrator before
2-54 [or manager shall, upon] assuming the administrator's [his] duties
2-55 to[,] execute a bond payable to the hospital district in an amount
2-56 to be set by the board of directors, in no event less than $5,000
2-57 conditioned on the faithful performance of the administrator's
2-58 [that he shall perform the] duties [required of him,] and
2-59 containing such other conditions as the board may require. The
2-60 board may pay for the bond with district funds. The administrator
2-61 [or manager] shall supervise all the work and activities of the
2-62 district and shall have general direction of the affairs of the
2-63 district, subject to the limitations as may be prescribed by the
2-64 board. The board of directors, with the administrator, shall have
2-65 the authority to appoint to or dismiss from the staff such doctors
2-66 as it may be deemed necessary for the efficient operation of the
2-67 district, and may provide for temporary appointments to the staff
2-68 if warranted by circumstances. The board may delegate to the
2-69 administrator [or manager] the authority to employ technicians,
3-1 nurses, and employees of the district.
3-2 (c) Such board shall be authorized to contract with any
3-3 other political subdivision or governmental agency whereby the
3-4 district will provide investigatory or other services as to the
3-5 hospital, or welfare needs of the inhabitants of the district and
3-6 shall be authorized to contract with any county or incorporated
3-7 municipality located outside its boundaries for the hospitalization
3-8 of the sick, diseased, or injured persons of any such county or
3-9 municipality, and shall have the authority to contract with the
3-10 State of Texas or agencies of the federal government for the
3-11 hospital treatment of sick, diseased, or injured persons.
3-12 (d) The hospital district created by this Act is authorized
3-13 to purchase from any city hospital within the district, and each
3-14 said authority is hereby authorized to sell to said hospital
3-15 district, any and all hospital facilities, including all lands,
3-16 buildings, equipment, and properties owned by them upon such terms
3-17 and for such prices as they may mutually agree. If any such
3-18 hospital authority sells its facilities to the district, that
3-19 authority shall no longer be authorized to perform hospital
3-20 services within the boundaries of the district herein authorized
3-21 nor issue bonds therefor.
3-22 (e) The board may purchase or lease property, facilities, or
3-23 equipment for the district to use in the hospital system and may
3-24 mortgage or pledge the property, facilities, or equipment as
3-25 security for the payment of the purchase price.
3-26 (f) The board may enter into one or more contracts to
3-27 provide administrative and other personnel for the operation of the
3-28 hospital facilities. The term of a contract may not exceed 25
3-29 years from the date on which the contract is entered. The board
3-30 may transfer district hospital facilities by lease to individuals,
3-31 corporations, or other legal entities and may sell or otherwise
3-32 dispose of the district's property, facilities, and equipment.
3-33 (g) The board may provide retirement benefits for the
3-34 employees of the district by establishing or administering a
3-35 retirement program or electing to participate in the Texas County
3-36 and District Retirement System or any other statewide retirement
3-37 system in which the district is eligible to participate.
3-38 (h) The board of directors may spend district funds to
3-39 recruit physicians, nurses, and other trained medical personnel.
3-40 The board may contract with one or more full-time medical students
3-41 or other students in a health occupation who are enrolled in good
3-42 standing in an accredited medical school, college, or university,
3-43 to pay the student's tuition or other expenses in consideration of
3-44 the student's contractual agreement to serve as an employee or
3-45 independent contractor for the district under terms prescribed by
3-46 the contract.
3-47 (i) The board may institute a suit to enforce the payment of
3-48 taxes and to foreclose liens to secure the payment of taxes due to
3-49 the district.
3-50 (j) The hospital district may provide services outside the
3-51 boundaries of the district.
3-52 SECTION 4. Section 6, Chapter 206, Acts of the 61st
3-53 Legislature, Regular Session, 1969, is amended to read as follows:
3-54 Sec. 6. The district shall be operated on the basis of a
3-55 fiscal year established by the board of directors. The fiscal year
3-56 may not be changed when revenue bonds are outstanding or more than
3-57 one time in a 24-month period. The board [commencing on July 1 of
3-58 each year and ending on June 30 of the following year, and it]
3-59 shall cause an annual [independent] audit to be made of the
3-60 financial condition of said district, which, together with other
3-61 records of the district, shall be open to inspection at the
3-62 principal office of the district[, such audit to be made covering
3-63 such fiscal year, and the same shall be filed at the office of the
3-64 district as soon as it is completed]. The administrator [or
3-65 manager] shall prepare an annual budget for approval by the board
3-66 of directors. The budget shall also contain a complete financial
3-67 statement of the district showing all outstanding obligations of
3-68 the district, the cash on hand to the credit of each and every fund
3-69 of the district, the funds received from all sources during the
4-1 previous year, the funds available from all sources during the
4-2 ensuing year, with balances expected at end of the year in which
4-3 the budget is being prepared, and estimated revenues and balances
4-4 available to cover the proposed budget and the estimated tax rate
4-5 which will be required, and the proposed expenditures and
4-6 disbursements and the estimated receipts and collections for the
4-7 following fiscal year. A public hearing on the annual budget shall
4-8 be held by the board of directors after notice of such hearing has
4-9 been published in accordance with the open meetings law, Chapter
4-10 551, Government Code [one time at least 10 days before the date set
4-11 therefor. Notice of the budget hearing shall be published in a
4-12 newspaper or newspapers which individually or collectively provide
4-13 general circulation in the hospital district]. Any resident
4-14 [property taxpayer] of the district shall have the right to be
4-15 present and participate in said hearing. At the conclusion of the
4-16 hearing, the budget, as proposed by the administrator, shall be
4-17 acted upon by the board of directors. The board of directors shall
4-18 have authority to make such changes in the budget as in their
4-19 judgment the law warrants and the interest of the residents
4-20 [taxpayers] demand. No expenditure may be made for any expense not
4-21 included in the annual budget or an amendment thereto. The annual
4-22 budget may be amended from time to time as the circumstances may
4-23 require, but the annual budget, and all amendments thereto, shall
4-24 be approved by the board of directors. As soon as practicable
4-25 after the close of each fiscal year, the administrator [or manager]
4-26 shall prepare for the board a full sworn statement of all money
4-27 [moneys] belonging to the district and a full account of the
4-28 disbursements of same.
4-29 SECTION 5. Section 9, Chapter 206, Acts of the 61st
4-30 Legislature, Regular Session, 1969, is amended to read as follows:
4-31 Sec. 9. (a) The board of directors may issue general
4-32 obligation [shall have the power and authority to issue and sell
4-33 its] bonds in the name and upon the faith and credit of such
4-34 hospital district to:
4-35 (1) purchase, construct, acquire, repair, or renovate
4-36 buildings or improvements;
4-37 (2) equip buildings or improvements for hospital
4-38 purposes; or
4-39 (3) acquire and operate a mobile emergency medical or
4-40 air ambulance service [for the purchase, construction, acquisition,
4-41 repair, or renovation of buildings, and improvements and equipping
4-42 the same for hospital purposes, and for any or all of such
4-43 purposes].
4-44 (b) At the time of the issuances of any general obligation
4-45 bonds by the district a tax shall be levied by the board sufficient
4-46 to create an interest and sinking fund to pay the interest on and
4-47 principal of said bonds as same mature, providing such tax,
4-48 together with any other taxes levied for said district, shall not
4-49 exceed the rate of tax approved by the voters at the election
4-50 authorizing the levy of taxes. The district may issue general
4-51 obligation bonds only if the bonds are authorized by a majority of
4-52 the qualified voters of the district voting at an election called
4-53 and held for the purpose. The board may order a bond election.
4-54 The order calling the election shall state the nature and date of
4-55 the election, the hours during which the polls will be open, the
4-56 location of the polling places, the amounts of the bonds to be
4-57 authorized, and the maximum maturity of the bonds. Notice of a
4-58 bond election shall be given as provided for by Article 704,
4-59 Revised Statutes. The board shall canvass the returns and declare
4-60 the results of the election. The election [voted under the
4-61 provisions of Section 3 of this Act. No bonds shall be issued by
4-62 such hospital district except refunding bonds until authorized by a
4-63 majority of the qualified property taxpaying electors of the
4-64 district voting at an election called for such purpose. The order
4-65 for bond election shall specify the date of the election, the
4-66 amount of bonds to be authorized, the maximum rate of interest they
4-67 are to bear, the place or places where the election shall be held,
4-68 the presiding judge and alternate judge for each voting place, and
4-69 provide for clerks as in county elections. Except as to a bond
5-1 election held pursuant to the provisions of Subsection (b) of this
5-2 section, where notice shall be given as provided in Section 3,
5-3 notice of any bond election shall be given as provided in Article
5-4 704, Revised Civil Statutes of Texas, 1925, as amended, and] shall
5-5 be conducted in accordance with the general laws of Texas
5-6 pertaining to general elections, except as modified by the
5-7 provisions of this Act.
5-8 (c) The district may issue revenue bonds for a purpose
5-9 described by Subsection (a) of this section. The bonds shall be
5-10 payable from and secured by a pledge or all or part of the revenues
5-11 derived from the operation of the district's hospital system. The
5-12 bonds may be additionally secured by a mortgage or deed of trust on
5-13 all or part of the district's property. The revenue bonds shall be
5-14 issued in the manner provided by Sections 264.042, 264.043,
5-15 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for
5-16 the issuance of revenue bonds by county hospital authorities.
5-17 (d) [(b) A separate proposition may be submitted at the
5-18 election for the creation or confirmation of the district as to
5-19 whether the board of directors, in the event the district is
5-20 created, shall be authorized to issue bonds for any one or more of
5-21 the foregoing purposes. The proposition, if submitted, shall
5-22 specify the purpose for which the bonds are to be issued, the
5-23 maximum amount of bonds then proposed to be issued, the maximum
5-24 maturity, and the maximum interest rate.]
5-25 [(c)] Refunding bonds of the district may be issued for the
5-26 purpose of refunding and paying off any outstanding indebtedness
5-27 issued. Such refunding bonds may be sold and the proceeds
5-28 therefrom applied to the payment of outstanding indebtedness, or
5-29 may be exchanged in whole or in part for not less than a like
5-30 principal amount of such outstanding indebtedness provided that, if
5-31 refunding bonds are to be exchanged for a like amount of said
5-32 outstanding indebtedness, such refunding bonds shall bear interest
5-33 at the same or lower rate than borne by the debt refunded, unless
5-34 it is shown mathematically that a saving will result in the total
5-35 amount of interest to be paid on said refunding bonds, and provided
5-36 further that if such refunding bonds are to be sold and the
5-37 proceeds thereof applied to the payment of any such outstanding
5-38 indebtedness, same shall be issued and payments made in the manner
5-39 specified by Chapter 503, Acts of the 54th Legislature, Regular
5-40 Session, 1955, as amended (Article 717k, Vernon's Texas Civil
5-41 Statutes).
5-42 (e) [(d)] Bonds of the district shall bear interest not to
5-43 exceed the amount provided by Chapter 3, Acts of the 61st
5-44 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
5-45 Civil Statutes) [six and one-half percent a year], shall mature
5-46 within 40 years of their date, shall be executed in the name of the
5-47 hospital district and in its behalf by the president of the board
5-48 and countersigned by the secretary in the manner provided by
5-49 Chapter 204, Acts of the 57th Legislature, Regular Session, 1961,
5-50 as amended (Article 717j-1, Vernon's Texas Civil Statutes), and
5-51 shall be subject to the same requirements in the matter of approval
5-52 by the Attorney General of Texas and registration by the
5-53 Comptroller of Public Accounts of the State of Texas as are by law
5-54 provided for approval and registration of bonds issued by counties.
5-55 Upon the approval of such bonds by the attorney general and
5-56 registration by the comptroller, the same shall be incontestable
5-57 for any cause.
5-58 SECTION 6. Section 10, Chapter 206, Acts of the 61st
5-59 Legislature, Regular Session, 1969, is amended to read as follows:
5-60 Sec. 10. In addition to the power to issue bonds payable
5-61 from taxes levied by the district, as contemplated by the preceding
5-62 section, the board of directors is further authorized to issue and
5-63 to refund any previously issued revenue bonds for purchasing,
5-64 constructing, acquiring, repairing, equipping, or renovating
5-65 buildings and improvements for hospital purposes, and for acquiring
5-66 sites therefor, such bonds to be payable from and secured by a
5-67 pledge of all or any part of the revenues of the district to be
5-68 derived from the operation of its hospital or hospitals, and such
5-69 bonds may be additionally secured by a mortgage or deed of trust
6-1 lien on any part or all of its properties. Such bonds shall be
6-2 issued in the manner and in accordance with the procedures and
6-3 requirements specified for the issuance of revenue bonds by county
6-4 hospital authorities in Sections 264.042, 264.043, 264.046,
6-5 264.047, and 264.048, Health and Safety Code [8, 10, 11, 12, and 13
6-6 of Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r,
6-7 Vernon's Texas Civil Statutes)].
6-8 SECTION 7. Section 11, Chapter 206, Acts of the 61st
6-9 Legislature, Regular Session, 1969, is amended to read as follows:
6-10 Sec. 11. The board of directors is hereby given complete
6-11 discretion as to the type of buildings, both as to number and
6-12 location, required to establish and maintain an adequate hospital
6-13 system. The hospital system may include facilities for domiciliary
6-14 care of the sick, wounded, and injured, facilities for out-patient
6-15 clinic or clinics, pharmacies [dispensaries], facilities for
6-16 geriatric domiciliary care, convalescent home facilities, necessary
6-17 nurses domiciliaries and training centers, blood banks, community
6-18 mental health centers, and research centers or laboratories, and
6-19 any other facilities deemed necessary for hospital care by the
6-20 directors. The district, through its board of directors, is
6-21 further authorized to enter into an operating or management
6-22 contract with regard to its facilities or a part thereof, or may
6-23 lease all or part of its buildings and facilities upon terms and
6-24 conditions considered to be to the best interest of its
6-25 inhabitants, provided that in no event shall any lease be for a
6-26 period in excess of 25 years from the date entered. The district
6-27 shall be empowered to sell or otherwise dispose of any property,
6-28 real or personal, or equipment of any nature upon terms and
6-29 conditions found by the board to be in the best interest of its
6-30 inhabitants.
6-31 SECTION 8. Section 12, Chapter 206, Acts of the 61st
6-32 Legislature, Regular Session, 1969, is amended to read as follows:
6-33 Sec. 12. The board of directors of such district shall have
6-34 the power to prescribe the method and manner of making purchases
6-35 and expenditures by and for such hospital district, and shall also
6-36 be authorized to prescribe all accounting and control procedures.
6-37 The hospital district shall comply with the bidding requirements
6-38 prescribed by Chapter 271, Local Government Code [All contracts for
6-39 construction or purchases involving the expenditure of more than
6-40 $2,000 may be made only after advertising in the manner provided by
6-41 Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931,
6-42 as amended (Article 2368a, Vernon's Texas Civil Statutes)]. The
6-43 provisions of Chapter 2253, Government Code, [Article 5160,
6-44 Revised Civil Statutes of Texas, 1925, as amended] relating to
6-45 performance and payment bonds shall apply to construction contracts
6-46 let by the district. The district may acquire equipment for use in
6-47 its hospital system and mortgage or pledge the property so acquired
6-48 as security for the payment of the purchase price, but any such
6-49 contract shall provide for the entire obligation of the district to
6-50 be retired within five years from the date of the contract. Except
6-51 as permitted in the preceding sentence and as permitted by Sections
6-52 9 and 10, the district may incur no obligation payable from any
6-53 revenues of the district, taxes or otherwise except those on hand
6-54 or to be on hand within the then current and following fiscal year
6-55 of the district.
6-56 SECTION 9. Section 13, Chapter 206, Acts of the 61st
6-57 Legislature, Regular Session, 1969, is amended to read as follows:
6-58 Sec. 13. The board of directors of the district shall name
6-59 one or more banks [within its boundaries] to serve as depository
6-60 for the funds of the district. All funds of the district, except
6-61 those invested as provided in Section 5, and those transmitted to a
6-62 bank or banks as payment for bonds or obligations issued by the
6-63 district, shall be deposited as received with the depository bank
6-64 and shall remain on deposit, provided that nothing herein shall
6-65 limit the power of the board to place a portion of such funds on
6-66 time deposit or purchase certificates of deposit. Membership on
6-67 the board of directors of an officer or director of a bank shall
6-68 not disqualify such bank from being designated as depository.
6-69 SECTION 10. Section 14, Chapter 206, Acts of the 61st
7-1 Legislature, Regular Session, 1969, is amended to read as follows:
7-2 Sec. 14. The board of directors shall annually levy a tax
7-3 [of] not to exceed the amount hereinabove permitted for the purpose
7-4 of (1) paying the interest on and creating a sinking fund for bonds
7-5 and other obligations which may be issued or assumed by the
7-6 hospital district for hospital purposes as herein provided; (2)
7-7 providing for the operation and maintenance of the hospital
7-8 district and hospital system; and (3) for the purpose of making
7-9 further improvements and additions to the hospital system, and for
7-10 the acquisition of necessary sites therefor by purchase, lease or
7-11 condemnation. In setting such tax rate the board shall take into
7-12 consideration the income of the district from sources other than
7-13 taxation. Upon determination of the amount of tax required to be
7-14 levied, the board shall make such levy and certify the same to the
7-15 tax assessor-collector of said district.
7-16 SECTION 11. Section 16, Chapter 206, Acts of the 61st
7-17 Legislature, Regular Session, 1969, is amended to read as follows:
7-18 Sec. 16. The district shall have the right and power of
7-19 eminent domain for the purpose of acquiring by condemnation any and
7-20 all property of any kind and character in fee simple, or any lessor
7-21 interest therein, within the boundaries of the district necessary
7-22 to the powers, rights, and privileges conferred by this Act, in the
7-23 manner provided by the general law with respect to condemnation by
7-24 counties, provided that the district shall not be required to make
7-25 deposits in the registry of the trial court of the sum required by
7-26 Section 21.021, Property Code [paragraph 2 of Article 3268, Revised
7-27 Civil Statutes of Texas, 1925, as amended], or to make bond as
7-28 therein provided. In condemnation proceedings being prosecuted by
7-29 the district, the district shall not be required to pay in advance
7-30 or give bond or other security for costs in the trial court, nor to
7-31 give any bond otherwise required for the issuance of a temporary
7-32 restraining order or a temporary injunction nor to give bond for
7-33 costs or for supersedeas on any appeal or writ of error.
7-34 SECTION 12. Section 17, Chapter 206, Acts of the 61st
7-35 Legislature, Regular Session, 1969, is amended to read as follows:
7-36 Sec. 17. (a) The directors shall have the authority to levy
7-37 taxes for the entire year in which the district is established as
7-38 the result of the election herein provided. All taxes of the
7-39 district shall be assessed and collected [on county tax values] as
7-40 provided in Subsection (b) [(1)] hereof [unless the directors, by
7-41 majority vote, elect to have taxes assessed and collected by its
7-42 own tax assessor-collector under Subsection (2) hereof. Any such
7-43 election may be made prior to December 1 annually and shall govern
7-44 the manner in which taxes are thereafter assessed and collected,
7-45 until changed by a similar resolution].
7-46 (b) The board of directors may annually impose property
7-47 taxes in an amount not to exceed the limit approved by the voters
7-48 at the election authorizing the levy of taxes. The tax rate for
7-49 all purposes may not exceed 75 cents on each $100 valuation of all
7-50 taxable property in the district. The taxes may be used to pay for
7-51 indebtedness issued or assumed by the district and for the
7-52 maintenance and operating expenses of the district. The district
7-53 may not impose taxes to pay the principal of or interest on revenue
7-54 bonds. The Tax Code governs the appraisal, assessment, and
7-55 collection of district taxes. The board may provide for the
7-56 appointment of a tax assessor-collector for the district or may
7-57 contract for the assessment and collection of taxes as provided by
7-58 the Tax Code [(1) Under this subsection, district taxes shall be
7-59 assessed and collected on county tax values in the same manner as
7-60 provided by law with relation to county taxes. The tax
7-61 assessor-collector of the county in which said district is situated
7-62 shall be charged and required to accomplish the assessment and
7-63 collection of all taxes levied by and on behalf of the district.
7-64 The assessor-collector of taxes shall charge and deduct from
7-65 payments to the hospital district an amount as fees for assessing
7-66 and collecting the taxes at a rate of not exceeding two percent of
7-67 the amounts collected as may be determined by the board of
7-68 directors, but in no event shall the amount paid exceed $5,000 in
7-69 any one calendar year. Such fees shall be deposited in the
8-1 officers salary fund of the county and reported as fees of office
8-2 of the county tax assessor-collector. Interest and penalties on
8-3 taxes paid to the hospital district shall be the same as in the
8-4 case of county taxes. Discounts shall be the same as allowed by
8-5 the county. The residue of tax collections after deduction of
8-6 discounts and fees for assessing and collecting shall be deposited
8-7 in the district's depository. The bond of the county tax
8-8 assessor-collector shall stand as security for the proper
8-9 performance of his duties as assessor-collector of the district;
8-10 or, if in the judgment of the district board of directors it is
8-11 necessary, additional bond payable to the district may be required.
8-12 In all matters pertaining to the assessment, collection and
8-13 enforcement of taxes for the district, the county tax
8-14 assessor-collector shall be authorized to act in all respects
8-15 according to the laws of the State of Texas relating to state and
8-16 county taxes.]
8-17 [(2) Under this subsection, taxes shall be assessed
8-18 and collected by a tax assessor-collector appointed by the
8-19 directors, who shall also fix the terms of his employment,
8-20 compensation, and requirement for bond to assure the faithful
8-21 performance of his duties, but in no event shall such bond be for
8-22 less than $5,000. The directors shall also annually appoint five
8-23 persons to serve as a board of equalization and shall fix their
8-24 compensation. Each member of the board and the tax assessor shall
8-25 be residents of the district and own real property subject to
8-26 hospital district taxation, and each shall have the same duties,
8-27 including the obligation to execute the oath of office, as required
8-28 by county officials exercising such powers and duties. Except as
8-29 in this law provided to the contrary, all the provisions of Title
8-30 122, Revised Civil Statutes of Texas, 1925, as amended, shall apply
8-31 to the district].
8-32 SECTION 13. Section 19, Chapter 206, Acts of the 61st
8-33 Legislature, Regular Session, 1969, is amended to read as follows:
8-34 Sec. 19. Whenever a patient residing within the district has
8-35 been admitted to the facilities thereof, the administrator [or
8-36 manager] may cause inquiry to be made as to the patient's [his]
8-37 circumstances and those of the relatives of such patient legally
8-38 liable for the patient's [his] support. If the administrator [he]
8-39 finds that such patient or said relatives are able to pay for the
8-40 patient's [his] care and treatment in whole or in part, an order
8-41 shall be made directing such patient or said relatives to pay to
8-42 the hospital district for the care and support of such patient a
8-43 specified sum per week in proportion to their financial ability.
8-44 The administrator [or manager] shall have power and authority to
8-45 collect such sums from the estate of the patient or the patient's
8-46 [his] relatives legally liable for the patient's [his] support in
8-47 the manner provided by law for collection of expenses in the last
8-48 illness of a deceased person. If the administrator [or manager]
8-49 finds that such patient or said relatives are not able to pay
8-50 either in whole or in part for the patient's [his] care and
8-51 treatment in such hospital, same shall become a charge upon the
8-52 hospital district as to the amount of the inability to pay. Should
8-53 there be any dispute as to the ability to pay or doubt in the mind
8-54 of the administrator [or manager], the board of directors shall
8-55 hear and determine same after calling witnesses, and shall make
8-56 such order or orders as may be proper. Appeals from the final
8-57 order of the board shall lie to the district court. The
8-58 substantial evidence rule shall apply.
8-59 SECTION 14. Chapter 206, Acts of the 61st Legislature,
8-60 Regular Session, 1969, is amended by adding Sections 20a and 20b to
8-61 read as follows:
8-62 Sec. 20a. (a) The board may borrow money at a rate not to
8-63 exceed the maximum annual percentage rate allowed by law for
8-64 district obligations at the time of the loan.
8-65 (b) To secure a loan, the board may pledge:
8-66 (1) the revenues of the district that are not pledged
8-67 to pay the bonded indebtedness of the district;
8-68 (2) district taxes to be levied by the district during
8-69 the 12-month period following the date of the pledge that are not
9-1 pledged to pay the principal of or interest on district bonds; or
9-2 (3) district bonds that have been authorized but not
9-3 sold.
9-4 (c) A loan for which taxes or bonds are pledged shall mature
9-5 not later than the first anniversary of the date on which the loan
9-6 is made. A loan for which district revenues are pledged shall
9-7 mature not later than the fifth anniversary of the date on which
9-8 the loan is made.
9-9 Sec. 20b. (a) The district may be dissolved only if the
9-10 dissolution is approved by a majority of the qualified voters of
9-11 the district voting in an election called and held for that
9-12 purpose.
9-13 (b) The board may order an election on the question of
9-14 dissolving the district and disposing of the district's assets and
9-15 obligations. The board shall order an election if the board
9-16 receives a petition requesting an election that is signed by a
9-17 number of residents of the district equal to at least 15 percent of
9-18 the registered voters in the district.
9-19 (c) The election shall be held not later than the 60th day
9-20 after the date the election is ordered. Section 41.001(a),
9-21 Election Code, does not apply to an election ordered under this
9-22 section. The order calling the election shall state:
9-23 (1) the nature of the election, including the
9-24 proposition that is to appear on the ballot;
9-25 (2) the date of the election;
9-26 (3) the hours during which the polls will be open; and
9-27 (4) the location of the polling places.
9-28 (d) The board shall give notice of the election by
9-29 publishing a substantial copy of the election order in a newspaper
9-30 of general circulation in the district once a week for two
9-31 consecutive weeks. The first publication must appear not fewer
9-32 than 35 days before the date of the election. The ballot for the
9-33 election shall be printed to permit voting for or against the
9-34 proposition: "The dissolution of the North Runnels County Hospital
9-35 District."
9-36 (e) If a majority of the votes in the election favor
9-37 dissolution, the board shall find that the district is dissolved.
9-38 If a majority of the votes in the election do not favor
9-39 dissolution, the board shall continue to administer the district,
9-40 and another election on the question of dissolution may not be held
9-41 before the first anniversary of the most recent election to
9-42 dissolve the district.
9-43 (f) If a majority of the votes in the election favor
9-44 dissolution, the board shall:
9-45 (1) transfer the land, buildings, improvements,
9-46 equipment, and other assets that belong to the district to Runnels
9-47 County or another governmental entity in Runnels County; or
9-48 (2) administer the property, assets, and debts until
9-49 all funds have been disposed of and all district debts have been
9-50 paid or settled.
9-51 (g) If the district transfers the land, buildings,
9-52 improvements, equipment, and other assets to a county or other
9-53 governmental entity, the county or entity assumes all debts and
9-54 obligations of the district at the time of the transfer, and the
9-55 district is dissolved.
9-56 (h) After the board finds that the district is dissolved,
9-57 the board shall:
9-58 (1) determine the debt owed by the district; and
9-59 (2) impose on the property included in the district's
9-60 tax rolls a tax that is in proportion of the debt to the property
9-61 value.
9-62 (i) When all outstanding debts and obligations of the
9-63 district are paid, the board shall order the secretary to return
9-64 the pro rata share of all unused tax money to each district
9-65 taxpayer.
9-66 (j) A taxpayer may request that the taxpayer's share of
9-67 surplus tax money be credited to the taxpayer's county taxes. If a
9-68 taxpayer requests the credit, the board shall direct the secretary
9-69 to transmit the funds to the county tax assessor-collector.
10-1 (k) After the district has paid all its debts and has
10-2 disposed of all its assets and funds as prescribed by this section,
10-3 the board shall file a written report with the Commissioners Court
10-4 of Runnels County setting forth a summary of the board's actions in
10-5 dissolving the district.
10-6 (l) Not later than the 10th day after the date it receives
10-7 the report and determines that the requirements of this section
10-8 have been fulfilled, the Commissioners Court of Runnels County
10-9 shall enter an order dissolving the district and releasing the
10-10 board from any further duty or obligation.
10-11 (m) Notwithstanding any other provisions of this Act, the
10-12 district may not be dissolved unless the board provides for the
10-13 sale or transfer of the district's assets and liabilities to
10-14 another person or entity. The dissolution of the district and the
10-15 sale or transfer of the district's assets and liabilities to
10-16 another person or entity may not contravene a trust indenture or
10-17 bond resolution relating to the outstanding bonds of the district.
10-18 The dissolution and sale or transfer does not diminish or impair
10-19 the rights of a holder of an outstanding bond, warrant, or other
10-20 obligation of the district.
10-21 (n) The sale or transfer of the district's assets and
10-22 liabilities must satisfy the debt and bond obligations of the
10-23 district in a manner that protects the interests of the residents
10-24 of the district, including the residents' collective property
10-25 rights in the district's assets. A grant from federal funds is an
10-26 obligation to be repaid in satisfaction. The district may not
10-27 transfer or dispose of the district's assets except for due
10-28 compensation unless the transfer is made to another governmental
10-29 entity that serves the district and the transferred assets are to
10-30 be used for the benefit of the residents of the district.
10-31 SECTION 15. The importance of this legislation and the
10-32 crowded condition of the calendars in both houses create an
10-33 emergency and an imperative public necessity that the
10-34 constitutional rule requiring bills to be read on three several
10-35 days in each house be suspended, and this rule is hereby suspended,
10-36 and that this Act take effect and be in force from and after its
10-37 passage, and it is so enacted.
10-38 * * * * *