By Counts                                             H.B. No. 2616
         76R4214 MDR-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the Garza County Health Care District.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 1, Chapter 502, Acts of the 60th
 1-5     Legislature, Regular Session, 1967, is amended to read as follows:
 1-6           Sec. 1.   In accordance with the provisions of Article IX,
 1-7     Section 9, Constitution of the State of Texas, this Act shall be
 1-8     operative so as to authorize the creation, establishment,
 1-9     maintenance and operation of a health care [hospital] district
1-10     within the State of Texas, to be known as the Garza County Health
1-11     Care [Hospital] District, such district to have boundaries
1-12     coextensive with the boundaries of Garza County, and said district
1-13     shall have the powers and responsibilities provided by the
1-14     aforesaid constitutional provision.
1-15           SECTION 2.  Section 3(d), Chapter 502, Acts of the 60th
1-16     Legislature, Regular Session, 1967, is amended to read as follows:
1-17           (d)  A regular election of directors shall be held on the
1-18     first Saturday in May [April] of each year and notice of such
1-19     election shall be published in a newspaper of general circulation
1-20     in the county one time at least 10 days prior to the date of the
1-21     election.  Any person desiring his name to be printed on the ballot
1-22     as a candidate for director shall file a petition, signed by not
1-23     less than 15 legally qualified voters asking that such name be
1-24     printed on the ballot, with the secretary of the board of directors
 2-1     of the district.  Such petition shall be filed with such secretary
 2-2     at least 25 days prior to the date of election.
 2-3           SECTION 3.  Section 4, Chapter 502, Acts of the 60th
 2-4     Legislature, Regular Session, 1967, is amended to read as follows:
 2-5           Sec. 4.   The management and control of such health care
 2-6     [hospital] district created pursuant to the provisions of this Act
 2-7     is hereby vested in the board of directors of the district who
 2-8     shall serve without compensation but may be reimbursed for actual
 2-9     expenses incurred in the performance of their official duties upon
2-10     the approval of such expenses by the board of directors.
2-11           SECTION 4.  Section 5, Chapter 502, Acts of the 60th
2-12     Legislature, Regular Session, 1967, is amended to read as follows:
2-13           Sec. 5.   (a)  Upon the creation of such health care
2-14     [hospital] district, the board of directors shall have the power
2-15     and authority and it shall be their duty to levy on all property
2-16     subject to health care [hospital] district taxation for the benefit
2-17     of the district at the same time taxes are levied for county
2-18     purposes, using the county values and the county tax rolls, a tax
2-19     of not to exceed 75 [25] cents on the $100 valuation of all taxable
2-20     property within the health care [hospital] district, for the
2-21     purpose of:  (1) paying the interest on and creating a sinking fund
2-22     for warrants which may be issued by the health care [hospital]
2-23     district for hospital purposes as herein provided; (2) providing
2-24     for the operation and maintenance of the health care [hospital or
2-25     hospital] system; and (3) for the purpose of making further
2-26     improvements and additions to the health care [hospital] system,
2-27     and for the acquisition of necessary sites therefor, by purchase,
 3-1     lease or condemnation.
 3-2           (b)  Not later than October 1st of each year, the board of
 3-3     directors shall levy the tax on all taxable property within the
 3-4     district which is subject to taxation and shall immediately certify
 3-5     such tax rate to the tax assessor and collector of Garza County.
 3-6     The tax so levied shall be collected on all property subject to
 3-7     health care [hospital] district taxation by the assessor and
 3-8     collector of taxes for the county on the county tax values, and in
 3-9     the same manner and under the same conditions as county taxes.  The
3-10     assessor and collector of taxes shall charge and deduct from
3-11     payments to the health care [hospital] district the fees for
3-12     assessing and collecting the tax at the rate of not exceeding five
3-13     percent on the first $10,000 and two percent on all such taxes
3-14     thereafter, but in no event in excess of $5,000 for any one fiscal
3-15     year.  Such fees shall be deposited in the county's general fund,
3-16     and shall be reported as fees of office of the tax assessor and
3-17     collector.  Interest and penalties on taxes paid to the health care
3-18     [hospital] district shall be the same as in the case of county
3-19     taxes.  Discounts shall be the same as for county taxes.  The
3-20     residue of tax collections, after deduction of discounts and fees
3-21     for assessing and collecting, shall be deposited in the district
3-22     depository and such funds shall be withdrawn only as provided
3-23     herein.  All other income of the health care [hospital] district
3-24     shall be deposited in like manner with the district depository.
3-25           (c)  The board of directors shall have the authority to levy
3-26     the tax aforesaid for the entire year in which the said health care
3-27     [hospital] district is established for the purpose of securing
 4-1     funds to initiate the operation of the health care [hospital]
 4-2     district.
 4-3           SECTION 5.  Section 6, Chapter 502, Acts of the 60th
 4-4     Legislature, Regular Session, 1967, is amended to read as follows:
 4-5           Sec. 6.   (a)  The board of directors shall have the power
 4-6     and authority to issue and sell as the obligations of the health
 4-7     care [hospital] district, and in the name and upon the faith and
 4-8     credit of the health care [hospital] district bonds for the repair
 4-9     or renovation of building and improvements and equipping the same
4-10     for health care [hospital] purposes and for any and all of such
4-11     purposes; provided, that a sufficient tax shall be levied to create
4-12     an interest and sinking fund to pay the interest and principal as
4-13     same matures, provided that the maintenance and operation tax,
4-14     together with the bond tax, shall not exceed 75 [25] cents on the
4-15     $100 valuation in any one year, or such maximum amount as may
4-16     hereafter be voted as provided in Section 7 hereof.  Such bond
4-17     shall be executed in the name of the district and on its behalf by
4-18     the president of the board of directors, and countersigned by the
4-19     secretary of the board of directors, and shall be subject to the
4-20     same requirements in the matter of approval thereof by the Attorney
4-21     General of the State of Texas and registration thereof by the
4-22     Comptroller of Public Accounts of the State of Texas as are by law
4-23     provided for such approval and registration of bonds of such
4-24     county.  Upon the approval of such bonds by the Attorney General of
4-25     Texas the same shall be incontestable for any cause.  No bonds
4-26     shall be issued by the health care [hospital] district (except
4-27     refunding bonds) until authorized by a majority vote of the legally
 5-1     qualified property taxpaying electors, residing in the health care
 5-2     [hospital] district, voting at an election called and held for such
 5-3     purpose.  Such election may be called by the board of directors on
 5-4     its own motion, shall specify the place or places where the
 5-5     election shall be held, the presiding officers thereof, the purpose
 5-6     for which the bonds are to be issued, the amount thereof, the
 5-7     maximum interest rate (not to exceed six percent per annum) and the
 5-8     maximum maturity date of such bonds (not to exceed 40 years from
 5-9     their date of issuance).  Notice of election shall be given by
5-10     publishing a substantial copy of the order calling the election in
5-11     a newspaper of general circulation in such county once a week for
5-12     two consecutive weeks prior to the date of election, the date of
5-13     the first publication being at least 14 full days prior to the date
5-14     set for the election.  The costs of such election shall be paid by
5-15     the health care [hospital] district.
5-16           (b)  In the manner hereinabove provided, the bonds of such
5-17     health care [hospital] district may, without the necessity of any
5-18     election therefor, be issued for the purpose of refunding and
5-19     paying off any bonded indebtedness theretofore issued by such
5-20     health care [hospital] district; such refunding bonds may be sold
5-21     and the proceeds thereof applied to the payment of any such
5-22     outstanding bonds or may be exchanged in whole or in part for not
5-23     less than a like amount, of said outstanding bonds and interest
5-24     matured thereon, but unpaid; provided the average interest cost per
5-25     annum on the refunding bonds, computed in accordance with
5-26     recognized standard bond interest cost tables shall not exceed the
5-27     average interest cost per annum so computed, upon the bonds to be
 6-1     discharged out of the proceeds of the refunding bonds, unless the
 6-2     total interest cost on the refunding bonds, computed to their
 6-3     respective maturity dates, is less than the total interest cost so
 6-4     computed on the bonds to be discharged out of such proceeds.  In
 6-5     the foregoing computations, any premium or premiums required to be
 6-6     paid upon the bonds to be refunded as a condition to payment in
 6-7     advance of their stated maturity dates shall be taken into account
 6-8     as an addition to the net interest cost to the health care
 6-9     [hospital] district of the refunding bonds.
6-10           (c)  [The board of directors shall not have the power and
6-11     authority to purchase, construct or acquire property in excess of
6-12     $25,000 without submitting the vote to the qualified taxpaying
6-13     voters of said district, and a majority of the legally qualified
6-14     property taxpaying electors participating in said election voting
6-15     in favor of the proposition shall be necessary.]
6-16           [(d)]  The health care [hospital] district shall not make any
6-17     contract calling for or requiring the expenditure or payment of
6-18     $15,000 [$1,000] or more out of any fund or funds of said district
6-19     creating or imposing an obligation or liability of any nature or
6-20     character upon such health care [hospital] district, without first
6-21     submitting such proposed contract to competitive bids.
6-22           SECTION 6.  Section 7, Chapter 502, Acts of the 60th
6-23     Legislature, Regular Session, 1967, is amended to read as follows:
6-24           Sec. 7.   The board of directors shall have the authority to
6-25     call an election on the question of whether or not the tax
6-26     hereinabove provided for shall be increased to a specified rate
6-27     allowed by law on the $100 valuation of all taxable property within
 7-1     the health care [hospital] district, if and when the board of
 7-2     directors determines that an increase in such tax rate is necessary
 7-3     to carry out the purposes for which the initial tax rate was
 7-4     authorized.  Said election shall be held in the same manner as the
 7-5     election for [the creation of the district and] the levy of the
 7-6     initial tax as hereinabove provided.
 7-7           SECTION 7.  Section 8(a), Chapter 502, Acts of the 60th
 7-8     Legislature, Regular Session, 1967, is amended to read as follows:
 7-9           (a)  The board of directors of the health care district shall
7-10     have the power to prescribe the method and manner of making
7-11     purchases and expenditures by and for the [hospital] district, and
7-12     also shall prescribe all accounting and control procedures; the
7-13     method of purchasing necessary supplies, materials and equipment;
7-14     and shall have the power to adopt a seal for such district; and may
7-15     employ a general manager, and such professional and clerical
7-16     assistance as may be necessary.
7-17           SECTION 8.  Section 9(a), Chapter 502, Acts of the 60th
7-18     Legislature, Regular Session, 1967, is amended to read as follows:
7-19           (a)  The fiscal year of the health care [hospital] district
7-20     authorized to be established by the provisions hereof shall
7-21     commence on October 1st of each year and end on September 30th of
7-22     the following year.  The district directors shall cause an annual
7-23     independent audit to be made of the books and records of the
7-24     district, such audit to be made covering such fiscal year, and the
7-25     same shall be filed with [the Comptroller of Public Accounts of the
7-26     State of Texas and at] the office of the district not later than
7-27     December 31st of each year.
 8-1           SECTION 9.  Section 10, Chapter 502, Acts of the 60th
 8-2     Legislature, Regular Session, 1967, is amended to read as follows:
 8-3           Sec. 10.   Within 30 days after appointment and qualification
 8-4     of the board of directors of the health care [hospital] district,
 8-5     the said directors shall by resolution designate a bank or banks
 8-6     within Garza County as the district's depository or treasurer and
 8-7     all funds of the district shall be secured in the manner now
 8-8     provided for the security of county funds.  The depository shall
 8-9     serve for a period of two years and until a successor has been
8-10     named.
8-11           SECTION 10.  Section 11, Chapter 502, Acts of the 60th
8-12     Legislature, Regular Session, 1967, is amended to read as follows:
8-13           Sec. 11.   The health care [hospital] district established or
8-14     maintained under the provisions of this Act shall be subject to
8-15     inspection by any duly authorized representative of the Texas
8-16     Department [State Board] of Health [or any State Board of Charities
8-17     (or Public Welfare) that now exists or that may be hereafter
8-18     created], and any resident officers shall admit such
8-19     representatives into all health care [hospital] district facilities
8-20     and give them access on demand to all records, reports, books,
8-21     papers, and accounts pertaining to the health care [hospital]
8-22     district.
8-23           SECTION 11.  Section 12, Chapter 502, Acts of the 60th
8-24     Legislature, Regular Session, 1967, is amended to read as follows:
8-25           Sec. 12.   After the health care [hospital] district has been
8-26     organized pursuant to this Act, neither Garza County nor any city
8-27     therein shall levy any tax for health care [hospital] purposes; and
 9-1     such [hospital] district shall be deemed to have assumed full
 9-2     responsibility for the furnishing of medical and health [hospital]
 9-3     care for the needy and indigent persons residing in said health
 9-4     care [hospital] district from the date that taxes are collected for
 9-5     the health care [hospital] district.
 9-6           SECTION 12.  Section 13, Chapter 502, Acts of the 60th
 9-7     Legislature, Regular Session, 1967, is amended to read as follows:
 9-8           Sec. 13.   Whenever a patient claiming indigence has been
 9-9     admitted to the facilities of the health care [hospital] district,
9-10     the directors shall cause inquiry to be made as to his
9-11     circumstances, and of the relatives of such patients legally liable
9-12     for his support.  If it is found that such patient or said
9-13     relatives are liable to pay for his care and treatment in whole or
9-14     in part, an order shall be made directing such patient, or said
9-15     relatives, to pay to the treasurer of the health care [hospital]
9-16     district for the support of such patient a specified sum per week,
9-17     in proportion to their financial ability, but such sum shall not
9-18     exceed the actual per capita cost of maintenance.  The district
9-19     shall have power and authority to collect such sum from the estate
9-20     of the patient, or his relatives legally liable for his support, in
9-21     the manner provided by law for the collection of expenses of the
9-22     last illness of a deceased person. If the agent designated by the
9-23     district to handle such affairs finds that such patient or said
9-24     relatives are not able to pay, either in whole or in part, for his
9-25     care and treatment in such health care facility [hospital], the
9-26     same shall become a charge upon the health care [hospital]
9-27     district.  Should there be a dispute as to the ability to pay, or
 10-1    doubt in the mind of the person designated as aforesaid, the
 10-2    district's directors shall hear and determine same, after calling
 10-3    witnesses, and shall make such order as may be proper, from which
 10-4    appeal shall lie to the district court.
 10-5          SECTION 13.  Section 14, Chapter 502, Acts of the 60th
 10-6    Legislature, Regular Session, 1967, is amended to read as follows:
 10-7          Sec. 14.   The board of directors of the health care
 10-8    [hospital] district is authorized on behalf of said health care
 10-9    [hospital] district to accept donations, gifts and endowments for
10-10    the health care [hospital] district to be held in trust and
10-11    administered by the board of directors for such purposes and under
10-12    such direction, limitations, and provisions as may be prescribed in
10-13    writing by donor, not inconsistent with proper management and
10-14    objects of the health care [hospital] district.
10-15          SECTION 14.  Section 16, Chapter 502, Acts of the 60th
10-16    Legislature, Regular Session, 1967, is amended to read as follows:
10-17          Sec. 16.   The health care [hospital] district authorized to
10-18    be created under the provisions of this Act shall be and is
10-19    declared to be political subdivision of the State of Texas, and as
10-20    a governmental agency may sue and be sued in any and all courts of
10-21    this state in the name of such district.  In addition, all property
10-22    owned by said district shall be held for public purposes and shall
10-23    be exempt from taxation of every character.
10-24          SECTION 15.   Chapter 502, Acts of the 60th Legislature,
10-25    Regular Session, 1967, is amended by adding Section 16A to read as
10-26    follows:
10-27          Sec. 16A.   (a)  The district may be dissolved and its assets
 11-1    and liabilities sold or transferred to another entity or person
 11-2    only if the dissolution and sale or transfer are approved by a
 11-3    majority of the qualified voters of the district voting in an
 11-4    election called and held for that purpose.
 11-5          (b)  The board of directors may order an election on the
 11-6    question of dissolving the district and disposing of the district's
 11-7    assets and liabilities.
 11-8          (c)  The board of directors shall order an election on the
 11-9    question of dissolving the district and disposing of the district's
11-10    assets and liabilities if the board receives a petition requesting
11-11    an election on the issue that is signed by at least 300 of the
11-12    registered voters of the district, according to the most recent
11-13    official list of registered voters.  The election shall be called
11-14    not later than the 60th day after the date the petition is
11-15    presented to the district.
11-16          (d)  The order calling the election must state:
11-17                (1)  the nature of the election, including the
11-18    proposition that is to appear on the ballot;
11-19                (2)  the date of the election;
11-20                (3)  the hours during which the polls will be open; and
11-21                (4)  the location of the polling places.
11-22          (e)  The board of directors shall give notice of the election
11-23    by publishing a substantial copy of the election order in a
11-24    newspaper with general circulation in the district once a week for
11-25    two consecutive weeks.  The first publication must appear at least
11-26    35 days before the date set for the election.
11-27          (f)  The election shall be held not less than 45 days nor
 12-1    more than 60 days after the date on which the election is ordered.
 12-2    Section 41.001(a), Election Code, does not apply to an election
 12-3    ordered under this Act.
 12-4          (g)  The ballot for the election shall be printed to permit
 12-5    voting for or against the proposition:  "The dissolution of the
 12-6    Garza County Health Care District and the ________ (transfer or
 12-7    sale, as appropriate) of its assets and liabilities in the
 12-8    following manner:  _________________."
 12-9          (h)  The board of directors shall canvass the returns of the
12-10    election.  If the board finds that the election results are
12-11    favorable to the proposition to dissolve the district and transfer
12-12    or sell its assets and liabilities, the board shall issue an order
12-13    declaring the district dissolved and shall proceed with the sale or
12-14    transfer of its assets and liabilities according to the plan
12-15    proposed on the ballot.  If the board finds that the election
12-16    results are not favorable to the proposition to dissolve the
12-17    district, the board shall continue to administer the district and
12-18    another dissolution election may not be held before the first
12-19    anniversary of the date of the most recent election at which voters
12-20    disapproved the proposition.
12-21          (i)  Notwithstanding any other provision of this Act, the
12-22    district may not be dissolved unless the board provides for the
12-23    sale or transfer of the district's assets and liabilities to
12-24    another entity or person.
12-25          (j)  The dissolution of the district and the sale or transfer
12-26    of the district's assets and liabilities may not:
12-27                (1)  contravene a trust indenture or bond resolution
 13-1    relating to the outstanding bonds of the district; or
 13-2                (2)  diminish or impair the rights of a holder of any
 13-3    outstanding bond, warrant, or other obligation of the district.
 13-4          (k)  The sale or transfer of the district's assets and
 13-5    liabilities must satisfy the debt and bond obligations of the
 13-6    district in a manner that protects the interests of the residents
 13-7    of the district, including the residents' collective property
 13-8    rights in the district's assets.  A grant from federal funds is an
 13-9    obligation that must be repaid in full.  The district may transfer
13-10    or sell the district's assets only for due compensation, unless the
13-11    transfer or sale is made to another governmental agency serving the
13-12    district and using the transferred or purchased assets for the
13-13    benefit of the residents formerly in the district.
13-14          SECTION 16.  This Act takes effect September 1, 1999.
13-15          SECTION 17.  The importance of this legislation and the
13-16    crowded condition of the calendars in both houses create an
13-17    emergency and an imperative public necessity that the
13-18    constitutional rule requiring bills to be read on three several
13-19    days in each house be suspended, and this rule is hereby suspended.