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.