By Hardcastle H.B. No. 2479
76R8501 MXM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Hardeman County Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 3(d), (f), and (g), Chapter 214, Acts of
1-5 the 66th Legislature, Regular Session, 1979, are amended to read as
1-6 follows:
1-7 (d) At the election to create the district, a separate
1-8 ballot shall be submitted to the voters containing the names of all
1-9 qualified persons who filed an application with the commissioners
1-10 court at least 25 days before the election asking to have their
1-11 names placed on the ballot for the office of director. Each voter
1-12 shall vote for seven persons and the seven receiving the highest
1-13 number of votes are the first board of directors. Of those
1-14 elected, the three directors receiving the lowest number of votes
1-15 shall serve until the first Saturday in May [April] following the
1-16 election. The four directors receiving the highest number of votes
1-17 shall serve until the first Saturday in May [April] of the year
1-18 following the expiration of the terms of the other three directors.
1-19 (f) The commissioners court shall determine the seven
1-20 candidates for director receiving the highest number of votes at
1-21 the creation election and declare those persons elected to the
1-22 board. The commissioners court also shall declare the terms of
1-23 each director. Successors to the board shall be elected by vote of
1-24 the qualified electors of the entire district for two-year terms.
2-1 A regular election for directors shall be held in the first
2-2 Saturday in May under Section 41.001, Election Code. The board
2-3 shall publish notice of each election of directors in a newspaper
2-4 or newspapers that individually or collectively provide general
2-5 circulation in the district one time at least 30 days before the
2-6 date of the election. Any person desiring to have his or her name
2-7 printed on the ballot as a candidate for director shall file an
2-8 application with the secretary of the board of directors at least
2-9 45 [25] days before the election [a petition signed by at least 15
2-10 qualified electors]. The board shall canvass the returns and
2-11 declare the results. A vacancy in office shall be filled for the
2-12 unexpired term by appointment by the remainder of the board of
2-13 directors.
2-14 (g) Each member of the board shall qualify by executing the
2-15 constitutional oath of office and may be required to execute [by
2-16 executing] good and sufficient bond to be approved by the
2-17 commissioners court for $5,000 payable to the district, conditioned
2-18 upon the faithful performance of that director's duties as
2-19 director. The oath and bond shall be kept in the permanent records
2-20 of the district. The district may provide for directors' bonds
2-21 with district funds.
2-22 SECTION 2. Section 4, Chapter 214, Acts of the 66th
2-23 Legislature, Regular Session, 1979, is amended to read as follows:
2-24 Sec. 4. POWERS AND DUTIES. (a) The board shall manage,
2-25 control, and administer the hospital system and all funds and
2-26 resources of the district, but in no event shall any operating,
2-27 depreciation, or building reserves be invested in any funds or
3-1 securities other than those specified in Article 836 or 837,
3-2 Revised [Civil] Statutes [of Texas, 1925, as amended]. The
3-3 district through its board may sue and be sued and may promulgate
3-4 rules governing the operation of the hospital, hospital system, its
3-5 staff, and its employees. The board may appoint qualified persons
3-6 as administrator of the hospital district, attorney for the
3-7 district, and assistant to the administrator. The administrator,
3-8 the attorney, and the assistant administrator, if any, shall serve
3-9 at the will of the board and shall receive the compensation
3-10 determined by the board. The administrator may [shall], on
3-11 assuming his or her duties, execute a bond payable to the hospital
3-12 district in an amount to be set by the board, in no event less than
3-13 $5,000, conditioned that he or she shall perform the duties
3-14 required of him or her and containing such other conditions as the
3-15 board may require. The board may pay for the bond with district
3-16 funds. The administrator shall supervise all the work and
3-17 activities of the district and shall have general direction of the
3-18 affairs of the district, subject to the limitations as may be
3-19 prescribed by the board. The board may appoint to the staff
3-20 doctors it may deem necessary for the efficient operation of the
3-21 district and may provide for temporary appointments to the staff if
3-22 warranted by circumstances. The board may delegate to the
3-23 administrator the authority to employ technicians, nurses, and
3-24 employees of the district.
3-25 (b) The board may purchase or lease property for the
3-26 district to use in the hospital system and may mortgage or pledge
3-27 the property as security for the payment of the purchase price.
4-1 (c) The board may contract with other political subdivisions
4-2 or governmental agencies whereby the district will provide
4-3 investigatory or other services as to facilities for the medical
4-4 care, hospital, or welfare needs of the inhabitants of the district
4-5 and may contract with any county or incorporated municipality
4-6 located outside its boundaries for reimbursement for the care and
4-7 treatment of the sick, diseased, or injured persons of that county
4-8 or municipality. The district may also contract with the state or
4-9 agencies of the federal government for the reimbursement for the
4-10 treatment of sick, diseased, or injured persons.
4-11 (d) The board may enter into an interlocal contract with a
4-12 political subdivision to operate the hospital district.
4-13 (e) The board may contract to provide administrative or
4-14 other personnel for the operation of the hospital facilities. A
4-15 contract entered into under this subsection may not have a term
4-16 longer than 25 years.
4-17 (f) The board may lease district hospital facilities to
4-18 individuals, corporations, or other legal entities and may sell or
4-19 otherwise dispose of the district's property.
4-20 (g) The board may provide retirement benefits for district
4-21 employees by establishing or administering a retirement program or
4-22 electing to participate in the Texas County and District Retirement
4-23 System or any other statewide retirement system for which the
4-24 district is eligible.
4-25 (h) The board may spend district funds to recruit
4-26 physicians, nurses, and other trained medical personnel. The board
4-27 may contract with one or more full-time medical students or other
5-1 students in a health occupation, each of whom is enrolled in and in
5-2 good standing at an accredited medical school, college, or
5-3 university to pay the student's tuition or other expenses in
5-4 consideration of the student's agreement to serve as an employee or
5-5 independent contractor for the district.
5-6 (i) The board may institute a suit to enforce the payment of
5-7 taxes and to foreclose liens to secure the payment of taxes due to
5-8 the district.
5-9 SECTION 3. Section 5, Chapter 214, Acts of the 66th
5-10 Legislature, Regular Session, 1979, is amended to read as follows:
5-11 Sec. 5. BUDGET. The district shall be operated on the basis
5-12 of a fiscal year established by the board, provided the fiscal year
5-13 may not be changed during the time revenue bonds of the district
5-14 are outstanding or more than once in any 24-month period. The
5-15 board shall have an annual audit made of the financial condition of
5-16 the district, which together with other records of the district
5-17 shall be open to inspection at the principal office of the
5-18 district. The administrator shall prepare an annual budget for
5-19 approval by the board. The budget shall also contain a complete
5-20 financial statement of the district showing all outstanding
5-21 obligations of the district, the cash on hand to the credit of each
5-22 fund of the district, the funds received from all sources during
5-23 the previous year, the funds available from all sources during the
5-24 ensuing year, the balances expected at the end of the year in which
5-25 the budget is being prepared, estimated revenues and balances
5-26 available to cover the proposed budget, and the estimated tax rate
5-27 that will be required. A public hearing on the annual budget shall
6-1 be held by the board after notice has been given in the manner
6-2 provided by Subchapter C, Chapter 551, Government Code [of a
6-3 hearing has been published in a newspaper with general circulation
6-4 in the district one time at least 10 days before the date set for
6-5 the hearing]. Any person residing in the district is entitled to
6-6 be present and participate in the hearing. At the conclusion of
6-7 the hearing, the budget, as proposed by the administrator, shall be
6-8 acted on by the board. The board shall have authority to make
6-9 changes in the budget that in its judgment the law warrants and the
6-10 interest of the taxpayers demands. No expenditure may be made for
6-11 any expense not included in the annual budget or an amendment to
6-12 it. The annual budget may be amended from time to time as the
6-13 circumstances may require, but the annual budget and all amendments
6-14 to it shall be approved by the board. As soon as practicable after
6-15 the close of each fiscal year, the administrator shall prepare for
6-16 the board a full sworn statement of all money belonging to the
6-17 district and a full account of the disbursements of same.
6-18 SECTION 4. Section 6(a), Chapter 214, Acts of the 66th
6-19 Legislature, Regular Session, 1979, is amended to read as follows:
6-20 (a) The board may issue and sell its bonds in the name and
6-21 on the faith and credit of the hospital district for any purpose
6-22 related to the purchase, construction, acquisition, repair, and
6-23 renovation of buildings and improvements and equipping the same for
6-24 hospital purposes. At the time of the issuance of any bonds
6-25 payable from taxation [by the district], a tax shall be levied by
6-26 the board sufficient to create an interest and sinking fund to pay
6-27 the interest on and principal of the bonds as they mature,
7-1 providing that the tax together with any other taxes levied for the
7-2 district shall not exceed the limit approved by the voters at the
7-3 election authorizing the levy of taxes [75 cents on each $100
7-4 valuation of all taxable property located in the district subject
7-5 to hospital district taxation in any one year]. No bonds may be
7-6 issued by the hospital district except refunding bonds until
7-7 authorized by a majority of the qualified electors of the district.
7-8 The board, in ordering a bond election, shall specify the date of
7-9 the election, the amount of bonds to be authorized, the maximum
7-10 maturity of the bonds, the place or places where the election will
7-11 be held, and the presiding judge and alternate judge for each
7-12 voting place and shall provide for clerks as in county elections.
7-13 Chapter 41, [Section 9b, Texas] Election Code[, as amended (Article
7-14 2.01b, Vernon's Texas Election Code)], does not apply to a bond
7-15 election. Notice of any bond election shall be given as provided
7-16 in Article 704, Revised [Civil] Statutes [of Texas, 1925, as
7-17 amended], and the election shall be conducted in accordance with
7-18 the [Texas] Election Code, [as amended,] except as modified by the
7-19 provisions of this Act. The board shall canvass the returns and
7-20 declare the results.
7-21 SECTION 5. Section 8, Chapter 214, Acts of the 66th
7-22 Legislature, Regular Session, 1979, is amended to read as follows:
7-23 Sec. 8. REVENUE BONDS. In addition to the power to issue
7-24 bonds payable from taxes levied by the district as contemplated by
7-25 Section 6 of this Act, the board may issue revenue bonds and refund
7-26 any previously issued revenue bonds for purchasing, constructing,
7-27 acquiring, repairing, equipping, or renovating buildings and
8-1 improvements for hospital purposes, and for acquiring sites for
8-2 hospital purposes. The bonds shall be payable from and secured by
8-3 a pledge of all or any part of the revenues of the district to be
8-4 derived from the operation of its hospital or hospitals, and the
8-5 bonds may be additionally secured by a mortgage or deed of trust
8-6 lien on any part or all of its property. The bonds shall be issued
8-7 in the manner and in accordance with the procedures and
8-8 requirements specified for the issuance of revenue bonds by county
8-9 hospital authorities in Sections 264.042, 264.043, 264.046,
8-10 264.047, 264.048, and 264.049, Health and Safety Code [8, 10, 11,
8-11 12, and 13 of Chapter 122, Acts of the 58th Legislature, 1963, as
8-12 amended (Article 4494r, Vernon's Texas Civil Statutes)].
8-13 SECTION 6. Section 9(b), Chapter 214, Acts of the 66th
8-14 Legislature, Regular Session, 1979, is amended to read as follows:
8-15 (b) The board may prescribe the method and manner of making
8-16 purchases and expenditures by and for the hospital district and may
8-17 prescribe all accounting and control procedures. Contracts for
8-18 construction involving the expenditure of more than $10,000 may be
8-19 made only after advertising as [in the manner] provided by Chapter
8-20 252, Local Government Code [Chapter 163, General Laws, Acts of the
8-21 42nd Legislature, Regular Session, 1931, as amended (Article 2368a,
8-22 Vernon's Texas Civil Statutes)]. The provisions of Chapter 2253,
8-23 Government Code [Article 5160, Revised Civil Statutes of Texas,
8-24 1925, as amended], relating to performance and payment bonds shall
8-25 apply to construction contracts let by the district. The district
8-26 may acquire equipment for use in its hospital system and mortgage
8-27 or pledge the property acquired as security for the payment of the
9-1 purchase price. Except as permitted in the preceding sentence and
9-2 Sections 6, 7, and 8 of this Act, the district may incur no
9-3 obligation payable from revenues of the district, tax or otherwise,
9-4 except those on hand or to be on hand within the then current and
9-5 following fiscal years of the district.
9-6 SECTION 7. Section 13(a), Chapter 214, Acts of the 66th
9-7 Legislature, Regular Session, 1979, is amended to read as follows:
9-8 (a) The district shall have the right and power of eminent
9-9 domain for the purpose of acquiring by condemnation any and all
9-10 property of any kind and character in fee simple, or any lesser
9-11 interest in property, within the boundaries of the district
9-12 necessary or convenient to the powers, rights, and privileges
9-13 conferred by this Act, in the manner provided by the general law
9-14 with respect to condemnation by counties. The district shall not
9-15 be required to make deposits in the registry of the trial court of
9-16 the sum required by Section 21.021, Property Code [Paragraph 2,
9-17 Article 3268, Revised Civil Statutes of Texas, 1925, as amended],
9-18 or to make bond as provided in that law. In condemnation
9-19 proceedings being prosecuted by the district, the district shall
9-20 not be required to pay in advance or give bond or other security
9-21 for costs in the trial court or to give any bond otherwise required
9-22 for the issuance of a temporary restraining order or a temporary
9-23 injunction or to give bond for costs or for supersedeas on any
9-24 appeal or writ of error.
9-25 SECTION 8. Section 14, Chapter 214, Acts of the 66th
9-26 Legislature, Regular Session, 1979, is amended to read as follows:
9-27 Sec. 14. TAX ASSESSMENT AND COLLECTION. (a) The board may
10-1 levy taxes for the entire year in which the district is created as
10-2 a result of the election provided in this Act. All taxes of the
10-3 district shall be assessed and collected on county tax values as
10-4 provided in Subsection (b) of this section unless the board by
10-5 majority vote elects to have taxes assessed and collected by its
10-6 own tax assessor-collector under [Subsection (c) of] this section.
10-7 An election may be held annually before December 1 and shall govern
10-8 the manner in which taxes are subsequently assessed and collected
10-9 until changed by a similar resolution. Hospital tax shall be
10-10 levied on all taxable property within the district subject to
10-11 hospital district taxation.
10-12 (b) The board annually may impose property taxes in an
10-13 amount not to exceed the limit approved by the voters at the
10-14 election authorizing the levy of taxes. The tax rate for all
10-15 purposes may not exceed 75 cents on each $100 valuation of all
10-16 taxable property in the district [Under this subsection, district
10-17 taxes shall be assessed and collected on county tax values in the
10-18 same manner as provided by law with relation to county taxes. The
10-19 tax assessor-collector of Hardeman County shall be charged and
10-20 required to accomplish the assessment and collection of all taxes
10-21 levied by and on behalf of the district. The assessor-collector of
10-22 taxes shall charge and deduct from payments to the hospital
10-23 district an amount as fees for assessing and collecting the taxes
10-24 at a rate of one percent of the taxes assessed and one percent of
10-25 the taxes collected, but in no event shall the amount paid exceed
10-26 $5,000 in any one calendar year. These fees shall be deposited in
10-27 the officers salary fund of the county and reported as fees of
11-1 office of the county tax assessor-collector. Interest and
11-2 penalties on taxes paid to the hospital district shall be the same
11-3 as in the case of county taxes. Discounts shall be the same as
11-4 allowed by the county. The residue of tax collections after
11-5 deductions of discounts and fees for assessing and collecting shall
11-6 be deposited in the district's depository. The bonds of the county
11-7 tax assessor-collector shall stand as security for the proper
11-8 performance of his or her duties as assessor-collector of the
11-9 district; or if in the judgment of the board it is necessary,
11-10 additional bond payable to the district may be required. In all
11-11 matters pertaining to the assessment, collection, and enforcement
11-12 of taxes for the district, the county tax assessor-collector may
11-13 act in all respects according to the laws of the State of Texas
11-14 relating to state and county taxes].
11-15 (c) The taxes may be used to pay:
11-16 (1) the indebtedness issued or assumed by the
11-17 district; and
11-18 (2) the maintenance and operating expenses of the
11-19 district.
11-20 (d) The district may not impose taxes to pay the principal
11-21 of or interest on revenue bonds.
11-22 (e) The Tax Code governs the appraisal, assessment, and
11-23 collection of district taxes.
11-24 (f) The board may provide for the appointment of a tax
11-25 assessor-collector for the district or may contract for the
11-26 assessment and collection of taxes as provided by the Tax Code
11-27 [Under this subsection, taxes shall be assessed and collected by a
12-1 tax assessor-collector appointed by the board, which shall also fix
12-2 the term of his or her employment, compensation, and requirement
12-3 for bond to assure the faithful performance of his or her duties,
12-4 but in no event shall the bond be for less than $5,000. The
12-5 directors shall appoint five persons to serve as a board of
12-6 equalization for two-year terms and shall fix their compensation.
12-7 The members of the board of equalization and the tax
12-8 assessor-collector shall be residents of the district, and each
12-9 shall have the same duties, including the obligation to execute the
12-10 oath of office, as required of county officials exercising those
12-11 powers and duties. Except as provided in this law to the contrary,
12-12 all the provisions of Title 122, Revised Civil Statutes of Texas,
12-13 1925, as amended, shall apply to the district].
12-14 SECTION 9. Chapter 214, Acts of the 66th Legislature,
12-15 Regular Session, 1979, is amended by adding Section 14A to read as
12-16 follows:
12-17 Sec. 14A. BORROWING. (a) The board may borrow money for
12-18 district obligations at the time the loan is made.
12-19 (b) To secure a loan, the board may pledge:
12-20 (1) the revenues of the district that are not pledged
12-21 to pay bonded indebtedness of the district;
12-22 (2) taxes to be levied by the district in the next
12-23 12-month period that are not pledged to pay the principal of or
12-24 interest on district bonds; or
12-25 (3) district bonds that have been authorized but not
12-26 sold.
12-27 (c) A loan for which taxes or bonds are pledged must mature
13-1 not later than the first anniversary of the date on which the loan
13-2 is made. A loan for which district revenues are pledged must
13-3 mature not later than the fifth anniversary of the date on which
13-4 the loan is made.
13-5 SECTION 10. Chapter 214, Acts of the 66th Legislature,
13-6 Regular Session, 1979, is amended by adding Section 21A to read as
13-7 follows:
13-8 Sec. 21A. DISSOLUTION. (a) The district may be dissolved
13-9 only if the dissolution is approved by a majority of the qualified
13-10 voters of the district voting in an election called and held for
13-11 that purpose.
13-12 (b) The board may order an election on the question of
13-13 dissolving the district and disposing of the district's assets and
13-14 obligations. The board shall order an election if the board
13-15 receives a petition requesting an election that is signed by a
13-16 number of residents of the district equal to at least 15 percent of
13-17 the registered voters in the district.
13-18 (c) The election shall be held not later than the 60th day
13-19 after the date the election is ordered. Section 41.001(a),
13-20 Election Code, does not apply to an election ordered under this
13-21 section. The order calling the election shall state:
13-22 (1) the nature of the election, including the
13-23 proposition that is to appear on the ballot;
13-24 (2) the date of the election;
13-25 (3) the hours during which the polls will be open; and
13-26 (4) the location of the polling places.
13-27 (d) The board shall give notice of the election by
14-1 publishing the election order in a newspaper with general
14-2 circulation in the district once a week for two consecutive weeks.
14-3 The first publication must appear not less than 35 days before the
14-4 date set for the election. The ballot for the election shall be
14-5 printed to permit voting for or against the proposition: "The
14-6 dissolution of the Hardeman County Hospital District."
14-7 (e) If a majority of the votes in the election favor
14-8 dissolution, the board shall find that the district is dissolved.
14-9 If a majority of the votes in the election do not favor
14-10 dissolution, the board shall continue to administer the district,
14-11 and another election on the question of dissolution may not be held
14-12 before the first anniversary of the most recent election to
14-13 dissolve the district.
14-14 (f) If a majority of the votes in the election favor
14-15 dissolution, the board shall:
14-16 (1) transfer the land, buildings, improvements,
14-17 equipment, and other assets that belong to the district to a county
14-18 or other governmental agency in the county in which the district is
14-19 located; or
14-20 (2) administer the property, assets, and debts until
14-21 all funds have been disposed of and all district debts have been
14-22 paid or settled.
14-23 (g) If the district transfers the land, buildings,
14-24 improvements, equipment, and other assets to a county or other
14-25 governmental agency, the county or agency assumes all debts and
14-26 obligations of the district at the time of the transfer, and the
14-27 district is dissolved.
15-1 (h) After the board finds that the district is dissolved,
15-2 the board shall:
15-3 (1) determine the debt owed by the district; and
15-4 (2) impose on the property included in the district's
15-5 tax rolls a tax that is in proportion of the debt to the property
15-6 value.
15-7 (i) When all outstanding debts and obligations of the
15-8 district are paid, the board shall order the secretary to return
15-9 the pro rata share of all unused tax money to each district
15-10 taxpayer.
15-11 (j) A taxpayer may request that the taxpayer's share of
15-12 surplus tax money be credited to the taxpayer's county taxes. If a
15-13 taxpayer requests the credit, the board shall direct the secretary
15-14 to transmit the funds to the county tax assessor-collector.
15-15 (k) After the district has paid all its debts and has
15-16 disposed of all its assets and funds as prescribed by this section,
15-17 the board shall file a written report with the Commissioners Court
15-18 of Hardeman County setting forth a summary of the board's actions
15-19 in dissolving the district.
15-20 (l) Not later than the 10th day after the date it receives
15-21 the report and determines that the requirements of this section
15-22 have been fulfilled, the Commissioners Court of Hardeman County
15-23 shall enter an order dissolving the district and releasing the
15-24 board of directors of the district from any further duty or
15-25 obligation.
15-26 (m) The district may not be dissolved unless the board
15-27 provides for the sale or transfer of the district's assets and
16-1 liabilities to another person or entity. The dissolution of the
16-2 district and the sale or transfer of the district's assets or
16-3 liabilities may not contravene a trust indenture or bond resolution
16-4 relating to the outstanding bonds of the district. The dissolution
16-5 and sale or transfer does not diminish or impair the rights of a
16-6 holder of an outstanding bond, warrant, or other obligation of the
16-7 district.
16-8 (n) The sale or transfer of the district's assets and
16-9 liabilities must satisfy the debt and bond obligation of the
16-10 district in a manner that protects the interests of the residents
16-11 of the district, including the residents' collective property
16-12 rights in the district's assets. A grant from federal funds is an
16-13 obligation to be repaid in satisfaction. The district may not
16-14 transfer or dispose of the district's assets except for due
16-15 compensation unless the transfer is made to a governmental agency
16-16 that serves the district and the transferred assets are to be used
16-17 for the benefit of the residents of the district.
16-18 SECTION 11. The importance of this legislation and the
16-19 crowded condition of the calendars in both houses create an
16-20 emergency and an imperative public necessity that the
16-21 constitutional rule requiring bills to be read on three several
16-22 days in each house be suspended, and this rule is hereby suspended,
16-23 and that this Act take effect and be in force from and after its
16-24 passage, and it is so enacted.