By Hardcastle H.B. No. 2480
76R5183 MXM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Chillicothe Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 3(f) and (g), Chapter 74, Acts of the
1-5 66th Legislature, Regular Session, 1979, are amended to read as
1-6 follows:
1-7 (f) The commissioners court shall determine the seven
1-8 candidates for director receiving the highest number of votes at
1-9 the creation election and declare those persons elected to the
1-10 board. The commissioners court also shall declare the terms of
1-11 each director. Successors to the board shall be elected by vote of
1-12 the qualified electors of the entire district for two-year terms.
1-13 The board shall publish notice of each election of directors in a
1-14 newspaper or newspapers that individually or collectively provide
1-15 general circulation in the district one time at least 30 days
1-16 before the date of the election. Any person desiring to have his
1-17 or her name printed on the ballot as a candidate for director shall
1-18 file an application with the secretary of the board of directors at
1-19 least 45 [25] days before the election [a petition signed by at
1-20 least 15 qualified electors]. The board shall canvass the returns
1-21 and declare the results. A vacancy in office shall be filled for
1-22 the unexpired term by appointment by the remainder of the board of
1-23 directors.
1-24 (g) Each member of the board shall qualify by executing the
2-1 constitutional oath of office and may be required to execute [by
2-2 executing] good and sufficient bond to be approved by the
2-3 commissioners court for $5,000 payable to the district, conditioned
2-4 upon the faithful performance of that director's duties as
2-5 director. The oath and bond shall be kept in the permanent records
2-6 of the district. The district may provide for directors' bonds
2-7 with district funds.
2-8 SECTION 2. Section 4, Chapter 74, Acts of the 66th
2-9 Legislature, Regular Session, 1979, is amended to read as follows:
2-10 Sec. 4. POWERS AND DUTIES. (a) The board shall manage,
2-11 control, and administer the hospital system and all funds and
2-12 resources of the district, but in no event shall any operating,
2-13 depreciation, or building reserves be invested in any funds or
2-14 securities other than those specified in Article 836 or 837,
2-15 Revised [Civil] Statutes [of Texas, 1925, as amended]. The
2-16 district through its board may sue and be sued and may promulgate
2-17 rules governing the operation of the hospital, hospital system, its
2-18 staff, and its employees. The board may appoint qualified persons
2-19 as administrator of the hospital district, attorney for the
2-20 district, and assistant to the administrator. The administrator,
2-21 the attorney, and the assistant administrator, if any, shall serve
2-22 at the will of the board and shall receive the compensation
2-23 determined by the board. The administrator may [shall], on
2-24 assuming his or her duties, execute a bond payable to the hospital
2-25 district in an amount to be set by the board, in no event less than
2-26 $5,000, conditioned that he or she shall perform the duties
2-27 required of him or her, and containing such other conditions as the
3-1 board may require. The board may pay for the bond with district
3-2 funds. The administrator shall supervise all the work and
3-3 activities of the district and shall have general direction of the
3-4 affairs of the district, subject to the limitations as may be
3-5 prescribed by the board. The board may appoint to the staff
3-6 doctors it may deem necessary for the efficient operation of the
3-7 district and may provide for temporary appointments to the staff if
3-8 warranted by circumstances. The board may delegate to the
3-9 administrator the authority to employ technicians, nurses, and
3-10 employees of the district.
3-11 (b) The board may purchase or lease property for the
3-12 district to use in the hospital system and may mortgage or pledge
3-13 the property as security for the payment of the purchase price.
3-14 (c) The board may contract with other political subdivisions
3-15 or governmental agencies whereby the district will provide
3-16 investigatory or other services as to facilities for the medical
3-17 care, hospital, or welfare needs of the inhabitants of the district
3-18 and may contract with any county or incorporated municipality
3-19 located outside its boundaries for reimbursement for the care and
3-20 treatment of the sick, diseased, or injured persons of that county
3-21 or municipality. The district may also contract with the state or
3-22 agencies of the federal government for the reimbursement for the
3-23 treatment of sick, diseased, or injured persons.
3-24 (d) The board may enter into an interlocal contract with a
3-25 political subdivision to operate the hospital district.
3-26 (e) The board may contract to provide administrative or
3-27 other personnel for the operation of the hospital facilities. A
4-1 contract entered into under this subsection may not have a term
4-2 longer than 25 years.
4-3 (f) The board may lease district hospital facilities to
4-4 individuals, corporations, or other legal entities and may sell or
4-5 otherwise dispose of the district's property.
4-6 (g) The board may provide retirement benefits for district
4-7 employees by establishing or administering a retirement program or
4-8 electing to participate in the Texas County and District Retirement
4-9 System or any other statewide retirement system for which the
4-10 district is eligible.
4-11 (h) The board may spend district funds to recruit
4-12 physicians, nurses, and other trained medical personnel. The board
4-13 may contract with one or more full-time medical students or other
4-14 students in a health occupation, each of whom is enrolled in and in
4-15 good standing at an accredited medical school, college, or
4-16 university to pay the student's tuition or other expenses in
4-17 consideration of the student's agreement to serve as an employee or
4-18 independent contractor for the district.
4-19 (i) The board may institute a suit to enforce the payment of
4-20 taxes and to foreclose liens to secure the payment of taxes due to
4-21 the district.
4-22 SECTION 3. Section 5, Chapter 74, Acts of the 66th
4-23 Legislature, Regular Session, 1979, is amended to read as follows:
4-24 Sec. 5. BUDGET. The district shall be operated on the basis
4-25 of a fiscal year established by the board, provided the fiscal year
4-26 may not be changed during the time revenue bonds of the district
4-27 are outstanding or more than once in any 24-month period. The
5-1 board shall have an annual audit made of the financial condition of
5-2 the district, which together with other records of the district
5-3 shall be open to inspection at the principal office of the
5-4 district. The administrator shall prepare an annual budget for
5-5 approval by the board. The budget shall also contain a complete
5-6 financial statement of the district showing all outstanding
5-7 obligations of the district, the cash on hand to the credit of each
5-8 fund of the district, the funds received from all sources during
5-9 the previous year, the funds available from all sources during the
5-10 ensuing year, the balances expected at the end of the year in which
5-11 the budget is being prepared, estimated revenues and balances
5-12 available to cover the proposed budget, and the estimated tax rate
5-13 that will be required. A public hearing on the annual budget shall
5-14 be held by the board after notice has been given in the manner
5-15 provided by Subchapter C, Chapter 551, Government Code [of a
5-16 hearing has been published in a newspaper with general circulation
5-17 in the district one time at least 10 days before the date set for
5-18 the hearing]. Any person residing in the district is entitled to
5-19 be present and participate in the hearing. At the conclusion of
5-20 the hearing, the budget, as proposed by the administrator, shall be
5-21 acted on by the board. The board shall have authority to make
5-22 changes in the budget that in its judgment the law warrants and the
5-23 interest of the taxpayers demands. No expenditure may be made for
5-24 any expense not included in the annual budget or an amendment to
5-25 it. The annual budget may be amended from time to time as the
5-26 circumstances may require, but the annual budget and all amendments
5-27 to it shall be approved by the board. As soon as practicable after
6-1 the close of each fiscal year, the administrator shall prepare for
6-2 the board a full sworn statement of all money belonging to the
6-3 district and a full account of the disbursements of same.
6-4 SECTION 4. Section 6(a), Chapter 74, Acts of the 66th
6-5 Legislature, Regular Session, 1979, is amended to read as follows:
6-6 (a) The board may issue and sell its bonds in the name and
6-7 on the faith and credit of the hospital district for any purpose
6-8 related to the purchase, construction, acquisition, repair, and
6-9 renovation of buildings and improvements and equipping the same for
6-10 hospital purposes. At the time of the issuance of any bonds
6-11 payable from taxation [by the district], a tax shall be levied by
6-12 the board sufficient to create an interest and sinking fund to pay
6-13 the interest on and principal of the bonds as they mature,
6-14 providing that the tax together with any other taxes levied for the
6-15 district shall not exceed the limit approved by the voters at the
6-16 election authorizing the levy of taxes [75 cents on each $100
6-17 valuation of all taxable property located in the district subject
6-18 to hospital district taxation in any one year]. No bonds may be
6-19 issued by the hospital district except refunding bonds until
6-20 authorized by a majority of the qualified electors of the district.
6-21 The board, in ordering a bond election, shall specify the date of
6-22 the election, the amount of bonds to be authorized, the maximum
6-23 maturity of the bonds, the place or places where the election will
6-24 be held, and the presiding judge and alternate judge for each
6-25 voting place and shall provide for clerks as in county elections.
6-26 Chapter 41, [Section 9b, Texas] Election Code[, as amended (Article
6-27 2.01b, Vernon's Texas Election Code)], does not apply to a bond
7-1 election. Notice of any bond election shall be given as provided
7-2 in Article 704, Revised [Civil] Statutes [of Texas, 1925, as
7-3 amended], and the election shall be conducted in accordance with
7-4 the [Texas] Election Code, [as amended,] except as modified by the
7-5 provisions of this Act. The board shall canvass the returns and
7-6 declare the results.
7-7 SECTION 5. Section 8, Chapter 74, Acts of the 66th
7-8 Legislature, Regular Session, 1979, is amended to read as follows:
7-9 Sec. 8. REVENUE BONDS. In addition to the power to issue
7-10 bonds payable from taxes levied by the district as contemplated by
7-11 Section 6 of this Act, the board may issue revenue bonds and refund
7-12 any previously issued revenue bonds for purchasing, constructing,
7-13 acquiring, repairing, equipping, or renovating buildings and
7-14 improvements for hospital purposes, and for acquiring sites for
7-15 hospital purposes. The bonds shall be payable from and secured by
7-16 a pledge of all or any part of the revenues of the district to be
7-17 derived from the operation of its hospital or hospitals, and the
7-18 bonds may be additionally secured by a mortgage or deed of trust
7-19 lien on any part or all of its property. The bonds shall be issued
7-20 in the manner and in accordance with the procedures and
7-21 requirements specified for the issuance of revenue bonds by county
7-22 hospital authorities in Sections 264.042, 264.043, 264.046,
7-23 264.047, 264.048, and 264.049, Health and Safety Code [8, 10, 11,
7-24 12, and 13 of Chapter 122, Acts of the 58th Legislature, 1963, as
7-25 amended (Article 4494r, Vernon's Texas Civil Statutes)].
7-26 SECTION 6. Section 9(b), Chapter 74, Acts of the 66th
7-27 Legislature, Regular Session, 1979, is amended to read as follows:
8-1 (b) The board may prescribe the method and manner of making
8-2 purchases and expenditures by and for the hospital district and may
8-3 prescribe all accounting and control procedures. Contracts for
8-4 construction involving the expenditure of more than $10,000 may be
8-5 made only after advertising as [in the manner] provided by Chapter
8-6 252, Local Government Code [Chapter 163, General Laws, Acts of the
8-7 42nd Legislature, Regular Session, 1931, as amended (Article 2368a,
8-8 Vernon's Texas Civil Statutes)]. The provisions of Chapter 2253,
8-9 Government Code [Article 5160, Revised Civil Statutes of Texas,
8-10 1925, as amended], relating to performance and payment bonds shall
8-11 apply to construction contracts let by the district. The district
8-12 may acquire equipment for use in its hospital system and mortgage
8-13 or pledge the property acquired as security for the payment of the
8-14 purchase price. Except as permitted in the preceding sentence and
8-15 Sections 6 and 7 of this Act, the district may incur no obligation
8-16 payable from revenues of the district, tax or otherwise, except
8-17 those on hand or to be on hand within the then current and
8-18 following fiscal years of the district.
8-19 SECTION 7. Section 13(a), Chapter 74, Acts of the 66th
8-20 Legislature, Regular Session, 1979, is amended to read as follows:
8-21 (a) The district shall have the right and power of eminent
8-22 domain for the purpose of acquiring by condemnation any and all
8-23 property of any kind and character in fee simple, or any lesser
8-24 interest in property, within the boundaries of the district
8-25 necessary or convenient to the powers, rights, and privileges
8-26 conferred by this Act, in the manner provided by the general law
8-27 with respect to condemnation by counties. The district shall not
9-1 be required to make deposits in the registry of the trial court of
9-2 the sum required by Section 21.021, Property Code [Paragraph 2,
9-3 Article 3268, Revised Civil Statutes of Texas, 1925, as amended],
9-4 or to make bond as provided in that law. In condemnation
9-5 proceedings being prosecuted by the district, the district shall
9-6 not be required to pay in advance or give bond or other security
9-7 for costs in the trial court or to give any bond otherwise required
9-8 for the issuance of a temporary restraining order or a temporary
9-9 injunction or to give bond for costs or for supersedeas on any
9-10 appeal or writ of error.
9-11 SECTION 8. Section 14, Chapter 74, Acts of the 66th
9-12 Legislature, Regular Session, 1979, is amended to read as follows:
9-13 Sec. 14. TAX ASSESSMENT AND COLLECTION. (a) The board may
9-14 levy taxes for the entire year in which the district is created as
9-15 a result of the election provided in this Act. All taxes of the
9-16 district shall be assessed and collected on county tax values as
9-17 provided in Subsection (b) of this section unless the board, by
9-18 majority vote, elects to have taxes assessed and collected by its
9-19 own tax assessor-collector under [Subsection (c) of] this section.
9-20 An election may be held annually before December 1 and shall govern
9-21 the manner in which taxes are subsequently assessed and collected
9-22 until changed by a similar resolution. Hospital tax shall be
9-23 levied on all taxable property within the district subject to
9-24 hospital district taxation.
9-25 (b) The board annually may impose property taxes in an
9-26 amount not to exceed the limit approved by the voters at the
9-27 election authorizing the levy of taxes. The tax rate for all
10-1 purposes may not exceed 75 cents on each $100 valuation of all
10-2 taxable property in the district [Under this subsection, district
10-3 taxes shall be assessed and collected on county tax values in the
10-4 same manner as provided by law with relation to county taxes. The
10-5 tax assessor-collector of Hardeman County shall be charged and
10-6 required to accomplish the assessment and collection of all taxes
10-7 levied by and on behalf of the district. The assessor-collector of
10-8 taxes shall charge and deduct from payments to the hospital
10-9 district an amount as fees for assessing and collecting the taxes
10-10 at a rate of one percent of the taxes assessed and one percent of
10-11 the taxes collected, but in no event shall the amount paid exceed
10-12 $5,000 in any one calendar year. These fees shall be deposited in
10-13 the officers salary fund of the county and reported as fees of
10-14 office of the county tax assessor-collector. Interest and
10-15 penalties on taxes paid to the hospital district shall be the same
10-16 as in the case of county taxes. Discounts shall be the same as
10-17 allowed by the county. The residue of tax collections after
10-18 deductions of discounts and fees for assessing and collecting shall
10-19 be deposited in the district's depository. The bonds of the county
10-20 tax assessor-collector shall stand as security for the proper
10-21 performance of his or her duties as assessor-collector of the
10-22 district; or if in the judgment of the board it is necessary,
10-23 additional bond payable to the district may be required. In all
10-24 matters pertaining to the assessment, collection, and enforcement
10-25 of taxes for the district, the county tax assessor-collector may
10-26 act in all respects according to the laws of the State of Texas
10-27 relating to state and county taxes].
11-1 (c) The taxes may be used to pay:
11-2 (1) the indebtedness issued or assumed by the
11-3 district; and
11-4 (2) the maintenance and operating expenses of the
11-5 district.
11-6 (d) The district may not impose taxes to pay the principal
11-7 of or interest on revenue bonds.
11-8 (e) The Tax Code governs the appraisal, assessment, and
11-9 collection of district taxes.
11-10 (f) The board may provide for the appointment of a tax
11-11 assessor-collector for the district or may contract for the
11-12 assessment and collection of taxes as provided by the Tax Code
11-13 [Under this subsection, taxes shall be assessed and collected by a
11-14 tax assessor-collector appointed by the board, which shall also fix
11-15 the term of his or her employment, compensation, and requirement
11-16 for bond to assure the faithful performance of his or her duties,
11-17 but in no event shall the bond be for less than $5,000. The
11-18 directors shall appoint five persons to serve as a board of
11-19 equalization for two-year terms and shall fix their compensation.
11-20 The members of the board of equalization and the tax
11-21 assessor-collector shall be residents of the district, and each
11-22 shall have the same duties, including the obligation to execute the
11-23 oath of office, as required of county officials exercising those
11-24 powers and duties. Except as provided in this law to the contrary,
11-25 all the provisions of Title 122, Revised Civil Statutes of Texas,
11-26 1925, as amended, shall apply to the district].
11-27 SECTION 9. Chapter 74, Acts of the 66th Legislature, Regular
12-1 Session, 1979, is amended by adding Section 14A to read as follows:
12-2 Sec. 14A. BORROWING. (a) The board may borrow money for
12-3 district obligations at the time the loan is made.
12-4 (b) To secure a loan, the board may pledge:
12-5 (1) the revenues of the district that are not pledged
12-6 to pay bonded indebtedness of the district;
12-7 (2) taxes to be levied by the district in the next
12-8 12-month period that are not pledged to pay the principal of or
12-9 interest on district bonds; or
12-10 (3) district bonds that have been authorized but not
12-11 sold.
12-12 (c) A loan for which taxes or bonds are pledged must mature
12-13 not later than the first anniversary of the date on which the loan
12-14 is made. A loan for which district revenues are pledged must
12-15 mature not later than the fifth anniversary of the date on which
12-16 the loan is made.
12-17 SECTION 10. Chapter 74, Acts of the 66th Legislature,
12-18 Regular Session, 1979, is amended by adding Section 21A to read as
12-19 follows:
12-20 Sec. 21A. DISSOLUTION. (a) The district may be dissolved
12-21 only if the dissolution is approved by a majority of the qualified
12-22 voters of the district voting in an election called and held for
12-23 that purpose.
12-24 (b) The board may order an election on the question of
12-25 dissolving the district and disposing of the district's assets and
12-26 obligations. The board shall order an election if the board
12-27 receives a petition requesting an election that is signed by a
13-1 number of residents of the district equal to at least 15 percent of
13-2 the registered voters in the district.
13-3 (c) The election shall be held not later than the 60th day
13-4 after the date the election is ordered. Section 41.001(a),
13-5 Election Code, does not apply to an election ordered under this
13-6 section. The order calling the election shall state:
13-7 (1) the nature of the election, including the
13-8 proposition that is to appear on the ballot;
13-9 (2) the date of the election;
13-10 (3) the hours during which the polls will be open; and
13-11 (4) the location of the polling places.
13-12 (d) The board shall give notice of the election by
13-13 publishing the election order in a newspaper with general
13-14 circulation in the district once a week for two consecutive weeks.
13-15 The first publication must appear not less than 35 days before the
13-16 date set for the election. The ballot for the election shall be
13-17 printed to permit voting for or against the proposition: "The
13-18 dissolution of the Chillicothe Hospital District."
13-19 (e) If a majority of the votes in the election favor
13-20 dissolution, the board shall find that the district is dissolved.
13-21 If a majority of the votes in the election do not favor
13-22 dissolution, the board shall continue to administer the district,
13-23 and another election on the question of dissolution may not be held
13-24 before the first anniversary of the most recent election to
13-25 dissolve the district.
13-26 (f) If a majority of the votes in the election favor
13-27 dissolution, the board shall:
14-1 (1) transfer the land, buildings, improvements,
14-2 equipment, and other assets that belong to the district to a county
14-3 or other governmental agency in the county in which the district is
14-4 located; or
14-5 (2) administer the property, assets, and debts until
14-6 all funds have been disposed of and all district debts have been
14-7 paid or settled.
14-8 (g) If the district transfers the land, buildings,
14-9 improvements, equipment, and other assets to a county or other
14-10 governmental agency, the county or agency assumes all debts and
14-11 obligations of the district at the time of the transfer, and the
14-12 district is dissolved.
14-13 (h) After the board finds that the district is dissolved,
14-14 the board shall:
14-15 (1) determine the debt owed by the district; and
14-16 (2) impose on the property included in the district's
14-17 tax rolls a tax that is in proportion of the debt to the property
14-18 value.
14-19 (i) When all outstanding debts and obligations of the
14-20 district are paid, the board shall order the secretary to return
14-21 the pro rata share of all unused tax money to each district
14-22 taxpayer.
14-23 (j) A taxpayer may request that the taxpayer's share of
14-24 surplus tax money be credited to the taxpayer's county taxes. If a
14-25 taxpayer requests the credit, the board shall direct the secretary
14-26 to transmit the funds to the county tax assessor-collector.
14-27 (k) After the district has paid all its debts and has
15-1 disposed of all its assets and funds as prescribed by this section,
15-2 the board shall file a written report with the Commissioners Court
15-3 of Hardeman County setting forth a summary of the board's actions
15-4 in dissolving the district.
15-5 (l) Not later than the 10th day after the date it receives
15-6 the report and determines that the requirements of this section
15-7 have been fulfilled, the Commissioners Court of Hardeman County
15-8 shall enter an order dissolving the district and releasing the
15-9 board of directors of the district from any further duty or
15-10 obligation.
15-11 (m) The district may not be dissolved unless the board
15-12 provides for the sale or transfer of the district's assets and
15-13 liabilities to another person or entity. The dissolution of the
15-14 district and the sale or transfer of the district's assets or
15-15 liabilities may not contravene a trust indenture or bond resolution
15-16 relating to the outstanding bonds of the district. The dissolution
15-17 and sale or transfer does not diminish or impair the rights of a
15-18 holder of an outstanding bond, warrant, or other obligation of the
15-19 district.
15-20 (n) The sale or transfer of the district's assets and
15-21 liabilities must satisfy the debt and bond obligation of the
15-22 district in a manner that protects the interests of the residents
15-23 of the district, including the residents' collective property
15-24 rights in the district's assets. A grant from federal funds is an
15-25 obligation to be repaid in satisfaction. The district may not
15-26 transfer or dispose of the district's assets except for due
15-27 compensation unless the transfer is made to a governmental agency
16-1 that serves the district and the transferred assets are to be used
16-2 for the benefit of the residents of the district.
16-3 SECTION 11. The importance of this legislation and the
16-4 crowded condition of the calendars in both houses create an
16-5 emergency and an imperative public necessity that the
16-6 constitutional rule requiring bills to be read on three several
16-7 days in each house be suspended, and this rule is hereby suspended,
16-8 and that this Act take effect and be in force from and after its
16-9 passage, and it is so enacted.