By Swinford H.B. No. 3448
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Moore County Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 4, Chapter 287, Acts of the 61st
1-5 Legislature, Regular Session, 1969, is amended to read as follows:
1-6 Sec. 4. (a) In this section, "medical staff" means
1-7 physicians licensed to practice medicine in this state and holding
1-8 medical staff privileges granted by the district.
1-9 (b) The board of directors of the hospital district consists
1-10 of seven members, appointed as follows:
1-11 (1) six members appointed by the commissioners court
1-12 of the county to serve staggered three-year terms; and
1-13 (2) one member appointed by the medical staff of the
1-14 district's hospital under Subsection (d) of this section to serve a
1-15 two-year term.
1-16 (c) The member of the board of directors appointed under
1-17 Subsection (b)(2) of this section must be a member of the medical
1-18 staff of the district's hospital. If the member is no longer a
1-19 member of the medical staff, the person vacates the position.
1-20 (d) The members of the board of directors appointed under
1-21 Subsection (b)(1) of this section shall prescribe the procedures by
1-22 which the medical staff of the district's hospital shall select a
1-23 board member under this section.
1-24 (e) [Within 10 days after such election is held, or as soon
2-1 thereafter as possible, the commissioners court in such county
2-2 shall convene and canvass the returns of the election and, in the
2-3 event such election results favorably to the proposition specified
2-4 in Section 3, the commissioners court shall so find and declare the
2-5 hospital district established and created and appoint six persons
2-6 as directors of the hospital district to serve until the first
2-7 Saturday in April following the creation and establishment of the
2-8 district, at which time six directors shall be appointed by the
2-9 said commissioners court who shall also designate the length of
2-10 term for each appointee. Three of the directors then appointed
2-11 shall serve for two years; the other three directors shall serve
2-12 for one year. Thereafter, each director shall serve for a period
2-13 of two years and until his successor has been duly appointed and
2-14 has qualified.] Vacancies in office shall be filled for the
2-15 unexpired term by the same appointing entity that appointed the
2-16 vacating member [commissioners court. Each member of the board of
2-17 directors shall execute a good and sufficient bond for $5,000
2-18 payable to said district conditioned upon the faithful performance
2-19 of his duties, and each bond shall be purchased at the expense of
2-20 the district; nothing herein shall prohibit covering each of the
2-21 directors under a single blanket public officials' bond. Each
2-22 member of the board of directors shall execute the constitutional
2-23 oath of office].
2-24 (f) [(b)] No person shall be appointed as a member of the
2-25 board of directors unless the person [he] is a resident of the
2-26 district[, a freeholder,] and a qualified voter. Except as
2-27 provided by Subsections (b)(2) and (c) of this section, a district
3-1 [Neither the] administrator, [an] employee, or [of the district,
3-2 nor] a member of the medical staff is not [of the hospital shall
3-3 be] eligible to serve as a director.
3-4 (g) [(c)] The board of directors shall organize by electing
3-5 one of their number as president and one of their number as vice
3-6 president. A secretary, who need not be a director, shall also be
3-7 elected. Officers shall be elected for a term of one year and
3-8 vacancies shall be filled for the unexpired term by the board of
3-9 directors. Any four members of the board of directors shall
3-10 constitute a quorum and a concurrence of four shall be sufficient
3-11 in all matters pertaining to the business of the district. All
3-12 members of the board of directors and officers shall serve without
3-13 compensation, but may be reimbursed for actual expenses incurred in
3-14 the performance of their official duties upon the approval of such
3-15 expenses by the board of directors and so reported in the minute
3-16 book of the district or other records of the district.
3-17 SECTION 2. Section 5, Chapter 287, Acts of the 61st
3-18 Legislature, Regular Session, 1969, is amended to read as follows:
3-19 Sec. 5. The board of directors shall manage, control, and
3-20 administer the hospital system and all funds and resources of the
3-21 district, but in no event shall any operating, depreciation, or
3-22 building fund reserves be invested in any funds or securities
3-23 authorized by law, including Chapter 2256, Government Code [other
3-24 than those specified in Articles 836 and 837, Revised Civil
3-25 Statutes of Texas, 1925, as amended]. The board is given full
3-26 authority to establish rules and regulations relating to seniority
3-27 of employees of the district, including a retirement plan based
4-1 thereon, and may give effect to previous years of service for those
4-2 employees who have been continuously employed in the operation or
4-3 management of the hospital facilities acquired, including those
4-4 acquired upon the creation thereof by reason of Section 2 of this
4-5 Act, or constructed by the district. The district, through its
4-6 board of directors, shall have the power and authority to sue and
4-7 be sued, and shall be entitled to all causes of action and defenses
4-8 enjoyed by similar authorities, to promulgate rules and regulations
4-9 governing the operation of the hospital, hospital system, its
4-10 staff, and its employees. The board of directors shall appoint a
4-11 qualified person to be known as the administrator or manager of the
4-12 hospital district and may in its discretion appoint an assistant to
4-13 the administrator or manager. Such administrator or manager and
4-14 assistant administrator or manager, if any, shall serve at the will
4-15 of the board and shall receive such compensation as may be fixed by
4-16 the board. The administrator or manager shall, upon assuming his
4-17 duties, execute a bond payable to the hospital district in an
4-18 amount to be set by the board of directors, in no event less than
4-19 $500,000 [$5,000] conditioned that he shall perform the duties
4-20 required of him, and containing such other conditions as the board
4-21 may require. The administrator or manager shall supervise all the
4-22 work and activities of the district and shall have general
4-23 direction of the affairs of the district, subject to the
4-24 limitations as may be prescribed by the board. The board of
4-25 directors shall have the authority to appoint to the staff such
4-26 doctors as it may be deemed necessary for the efficient operation
4-27 of the district, and may provide for temporary appointments to the
5-1 staff if warranted by circumstances. The board may delegate to the
5-2 administrator or manager the authority to employ technicians,
5-3 nurses, and employees of the district. Such board shall be
5-4 authorized to contract with any other public or private entity,
5-5 including a county, municipality, hospital district, or any other
5-6 political subdivision, or a charitable organization, to provide
5-7 health care or related services inside or outside of the district
5-8 [political subdivision or governmental agency whereby the district
5-9 will provide investigatory or other services as to the hospital, or
5-10 welfare needs of the inhabitants of the district and shall be
5-11 authorized to contract with any county or incorporated municipality
5-12 located outside its boundaries for the care and treatment of the
5-13 sick, diseased, or injured persons of any such county or
5-14 municipality, and shall have the authority to contract with the
5-15 State of Texas or agencies of the federal government for the
5-16 treatment of sick, diseased, or injured persons].
5-17 SECTION 3. Chapter 287, Acts of the 61st Legislature,
5-18 Regular Session, 1969, is amended by adding Section 5A to read as
5-19 follows:
5-20 Sec. 5A. (a) The board shall require reimbursement from:
5-21 (1) a county, municipality, or public hospital located
5-22 outside the district's boundaries, for the district's care and
5-23 treatment of a sick, diseased, or injured person of that county,
5-24 municipality, or public hospital as provided by Chapter 61, Health
5-25 and Safety Code;
5-26 (2) the office of the sheriff of Moore County for the
5-27 district's care and treatment of a person confined in a Moore
6-1 County jail facility who is not indigent and does not reside in the
6-2 district; or
6-3 (3) the police department of a municipality located in
6-4 Moore County for the district's care and treatment of a person
6-5 confined in a jail facility in that municipality who is not
6-6 indigent and does not reside in the district.
6-7 (b) The board may contract with this or any other state, the
6-8 United States, or an agency or political subdivision of those
6-9 entities, to reimburse the district for the care and treatment of a
6-10 sick, diseased, or injured person.
6-11 (c) The board may contract with any municipality, county,
6-12 special district, state, the United States, or an agency or
6-13 political subdivision of those entities, or a charitable or other
6-14 private entity inside or outside the district for the district to
6-15 furnish a mobile emergency medical service or to provide for the
6-16 investigatory or welfare needs of inhabitants of the district or of
6-17 persons for whom the public or private entity has an obligation to
6-18 provide care.
6-19 SECTION 4. Section 6, Chapter 287, Acts of the 61st
6-20 Legislature, Regular Session, 1969, is amended to read as follows:
6-21 Sec. 6. The district shall be operated on the basis of a
6-22 fiscal year commencing on July 1 of each year and ending on June 30
6-23 of the following year, and it shall cause an independent audit to
6-24 be made of the financial condition of said district, which,
6-25 together with other records of the district, shall be open to
6-26 inspection at the principal office of the district, such audit to
6-27 be made covering such fiscal year, and the same shall be filed at
7-1 the office of the district as soon as it is completed. The
7-2 administrator or manager shall prepare an annual budget for
7-3 approval by the board of directors. The budget shall also contain
7-4 a complete financial statement of the district showing all
7-5 outstanding obligations of the district, the cash on hand to the
7-6 credit of each and every fund of the district, the funds received
7-7 from all sources during the previous year, the funds available from
7-8 all sources during the ensuing year, with balances expected at year
7-9 end of the year in which the budget is being prepared, and
7-10 estimated revenues and balances available to cover the proposed
7-11 budget and the estimated tax rate which will be required, and the
7-12 proposed expenditures and disbursements and the estimated receipts
7-13 and collections for the following fiscal year. A public hearing on
7-14 the annual budget shall be held by the board of directors after
7-15 notice of such hearing has been published one time at least 10 days
7-16 before the date set therefor. Notice of the budget hearing shall
7-17 be published in a newspaper or newspapers which individually or
7-18 collectively provide general circulation in the hospital district.
7-19 Any resident [property taxpayer] of the district shall have the
7-20 right to be present and participate in said hearing. At the
7-21 conclusion of the hearing, the budget, as proposed by the
7-22 administrator, shall be acted upon by the board of directors. The
7-23 board of directors shall have authority to make such changes in the
7-24 budget as in their sole judgment and discretion, applicable federal
7-25 and state [the] law warrants and allows, and the interest of the
7-26 residents of the district requires in furtherance of hospital
7-27 purposes [taxpayers demands]. No expenditure may be made for any
8-1 expense not included in the annual budget or an amendment thereto.
8-2 The annual budget may be amended from time to time as the
8-3 circumstances may require, but the annual budget, and all
8-4 amendments thereto, shall be approved by the board of directors.
8-5 As soon as practicable after the close of each fiscal year, the
8-6 administrator or manager shall prepare for the board a full sworn
8-7 statement of all moneys belonging to the district and a full
8-8 account of the disbursement of same.
8-9 SECTION 5. Section 7(a), Chapter 287, Acts of the 61st
8-10 Legislature, Regular Session, 1969, is amended to read as follows:
8-11 (a) The board of directors shall have the power and
8-12 authority to issue and sell [its] bonds, certificates of
8-13 obligation, or any other type of financing authorized by the laws
8-14 of this state, including that type of financing authorized by
8-15 Chapter 271, Local Government Code, in the name and upon the faith
8-16 and credit of such hospital district for the purchase,
8-17 construction, acquisition, repair, or renovation of buildings and
8-18 improvements and equipping the same for hospital purposes, and for
8-19 any or all of such purposes. At the time of the issuance of any
8-20 bonds by the district a tax shall be levied by the board sufficient
8-21 to create an interest and sinking fund to pay the interest on and
8-22 principal of said bonds as same mature, providing such tax together
8-23 with any other taxes levied for said district shall not exceed the
8-24 rate of tax voted under the provisions of Section 3 of this Act.
8-25 No bonds shall be issued by such hospital district except refunding
8-26 bonds until authorized by a majority of the qualified electors of
8-27 the district who own taxable property therein and who have duly
9-1 rendered the same for taxation voting at an election called for
9-2 such purpose. The order for bond election shall specify the date
9-3 of the election, the amount of bonds to be authorized, the maximum
9-4 maturity thereof, the maximum rate of interest they are to bear,
9-5 the place or places where the election shall be held, the presiding
9-6 judge and alternate judge for each voting place and provide for
9-7 clerks as in county elections. Notice of any bond election shall
9-8 be given as provided in Article 704, Revised Civil Statutes of
9-9 Texas, 1925, as amended, and shall be conducted in accordance with
9-10 the general laws of Texas pertaining to general elections, except
9-11 as modified by the provisions of this Act.
9-12 SECTION 6. Section 10, Chapter 287, Acts of the 61st
9-13 Legislature, Regular Session, 1969, is amended to read as follows:
9-14 Sec. 10. The board of directors of such district shall have
9-15 the power to prescribe the method and manner of making purchases
9-16 and expenditures by and for such hospital district, and shall also
9-17 be authorized to prescribe all accounting and control procedures.
9-18 All contracts for construction or purchases involving the
9-19 expenditure of more than $15,000 [$2,000] may be made only after
9-20 advertising in the manner provided by Subchapter B, Chapter 271,
9-21 Local Government Code [Chapter 163, Acts of the 42nd Legislature,
9-22 Regular Session, 1931, as amended (Article 2368a, Vernon's Texas
9-23 Civil Statutes)]. Section 271.059, Local Government Code [The
9-24 provisions of Article 5160, Revised Civil Statutes of Texas, 1925,
9-25 as amended], relating to performance and payment bonds, applies
9-26 [shall apply] to construction contracts let by the district. The
9-27 district may acquire equipment for use in its hospital system and
10-1 mortgage or pledge the property so acquired as security for the
10-2 payment of the purchase price[, but any such contract shall provide
10-3 for the entire obligation of the district to be retired within five
10-4 years from the date of the contract]. Except as permitted in the
10-5 preceding sentence and as permitted by Sections 7 and 8 of this
10-6 Act, the district may incur no obligation payable from any revenues
10-7 of the district, taxes or otherwise, except those on hand or to be
10-8 on hand within the then current and following fiscal year of the
10-9 district.
10-10 SECTION 7. Section 11, Chapter 287, Acts of the 61st
10-11 Legislature, Regular Session, 1969, is amended to read as follows:
10-12 Sec. 11. The board of directors of the district shall name
10-13 one or more depositories [banks within its boundaries to serve as
10-14 depository] for the funds of the district. All funds of the
10-15 district, except those invested as provided in Section 5 of this
10-16 Act, and those transmitted to a bank or banks of payment for bonds
10-17 or obligations issued or assumed by the district, shall be
10-18 deposited as received with the depository [bank] and shall remain
10-19 on deposit, provided that nothing herein shall limit the power of
10-20 the board to place a portion of such funds on time deposit or other
10-21 forms of deposit or purchase certificates of deposit.
10-22 SECTION 8. Section 15, Chapter 287, Acts of the 61st
10-23 Legislature, Regular Session, 1969, is amended to read as follows:
10-24 Sec. 15. The directors shall have the authority to levy
10-25 taxes for the entire year in which the district is established as
10-26 the result of the election herein provided. All taxes of the
10-27 district shall be assessed and collected on appraisal district
11-1 [county] tax values as provided in Subsection (a) of this section
11-2 hereof unless the directors, by majority vote, elect to have taxes
11-3 assessed and collected by its own tax assessor-collector under
11-4 Subsection (b) of this section hereof. Any such election may be
11-5 made prior to December 1 annually and shall govern the manner in
11-6 which taxes are thereafter assessed and collected, until changed by
11-7 a similar resolution. Hospital tax shall be levied upon all
11-8 taxable property within said district subject to hospital district
11-9 taxation.
11-10 (a) Under this subsection, district taxes shall be assessed
11-11 and collected on appraisal district [county] tax values in the same
11-12 manner as provided by law with relation to county taxes. The tax
11-13 assessor-collector [of the county in which said district is
11-14 situated] shall be charged and required to accomplish the
11-15 assessment and collection of all taxes levied by and on behalf of
11-16 the district. The assessor-collector of taxes shall charge and
11-17 deduct from payments to the hospital district an amount as fees for
11-18 assessing and collecting the taxes at a rate [of not exceeding two
11-19 percent of the amounts collected] as may be determined by the board
11-20 of directors [, but in no event shall the amount paid exceed $5,000
11-21 in any one calendar year]. [Such fees shall be deposited in the
11-22 officers' salary fund of the county and reported as fees of office
11-23 of the county tax assessor-collector.] Interest and penalties on
11-24 taxes paid to the hospital district shall be the same as in the
11-25 case of county taxes. Discounts shall be the same as allowed by
11-26 the county. The residue of tax collections [after deductions of
11-27 discounts and fees for assessing and collecting] shall be deposited
12-1 in the district's depository. The bond of the [county] tax
12-2 assessor-collector shall stand as security for the proper
12-3 performance of the assessor-collector's [his] duties as
12-4 assessor-collector of the district; or, if in the judgment of the
12-5 district board of directors it is necessary, additional bond
12-6 payable to the district may be required. In all matters pertaining
12-7 to the assessment, collection, and enforcement of taxes for the
12-8 district, the [county] tax assessor-collector shall be authorized
12-9 to act in all respects according to the laws of the State of Texas
12-10 relating to state and county taxes.
12-11 (b) Under this subsection, taxes shall be assessed and
12-12 collected by a tax assessor-collector appointed by the directors,
12-13 who shall also fix the terms of the assessor-collector's [his]
12-14 employment, compensation and requirement for bond to assure the
12-15 faithful performance of the assessor-collector's [his] duties, but
12-16 in no event shall such bond be for less than $100,000 [$5,000. The
12-17 directors shall also annually appoint five persons to serve as a
12-18 board of equalization and shall fix their compensation. Each
12-19 member of the board and the tax assessor shall be residents of the
12-20 district and own real property subject to hospital district
12-21 taxation, and each shall have the same duties, including the
12-22 obligation to execute the oath of office, as required by county
12-23 officials exercising such powers and duties. Except as in this Act
12-24 provided to the contrary, all the provisions of Title 122, Revised
12-25 Civil Statutes of Texas, 1925, as amended, shall apply to the
12-26 district].
12-27 SECTION 9. Section 17, Chapter 287, Acts of the 61st
13-1 Legislature, Regular Session, 1969, is amended to read as follows:
13-2 Sec. 17. (a) Whenever a patient residing within the
13-3 district has been admitted to the facilities thereof, the
13-4 administrator or manager may cause inquiry to be made as to the
13-5 patient's [his] circumstances and those of the relatives of such
13-6 patient legally liable for the patient's [his] support. If the
13-7 administrator [he] finds that such patient or the patient's [said]
13-8 relatives are able to pay for the patient's [his] care and
13-9 treatment in whole or in part, an order shall be made directing
13-10 such patient or said relatives to pay to the hospital district for
13-11 the care and support of such patient a specified sum per week in
13-12 proportion to their financial ability. The administrator or
13-13 manager shall have power and authority to collect such sums from
13-14 the estate of the patient or the patient's [his] relatives legally
13-15 liable for the patient's [his] support in the manner provided by
13-16 law for collection of expenses in the last illness of a deceased
13-17 person. If the administrator or manager finds that such patient or
13-18 the patient's [said] relatives are not able to pay either in whole
13-19 or in part for the patient's [his] care and treatment in such
13-20 hospital, same shall become a charge upon the hospital district as
13-21 to the amount of the inability to pay. Should there be any dispute
13-22 as to the ability to pay or doubt in the mind of the administrator
13-23 or manager, the board of directors shall hear and determine same
13-24 after calling witnesses, and shall make such order or orders as may
13-25 be proper. Appeals from the final order of the board shall lie to
13-26 the district court. The substantial evidence rule shall apply.
13-27 (b) Not later than the beginning of each operating year, the
14-1 district shall adopt an application procedure to determine
14-2 eligibility for assistance, as provided by Section 61.053, Health
14-3 and Safety Code.
14-4 SECTION 10. Chapter 287, Acts of the 61st Legislature,
14-5 Regular Session, 1969, is amended by adding Section 25 to read as
14-6 follows:
14-7 Sec. 25. (a) In this section, "long-term lease" means a
14-8 lease for a term that exceeds 10 years.
14-9 (b) The board of directors may not sell a hospital owned and
14-10 operated by the hospital district, including real property, or
14-11 lease the hospital under a long-term lease that relinquishes
14-12 control of the hospital to the lessee unless:
14-13 (1) the agreement for the sale or lease of the
14-14 hospital provides for indigent care in the district;
14-15 (2) in the event of a sale of the hospital, the board
14-16 has published notice of the proposed sale twice in a newspaper with
14-17 general circulation in Moore County, with the first publication
14-18 occurring not later than the 61st day before the date of the
14-19 proposed sale, and the second publication occurring not earlier
14-20 than the 30th day or later than the eighth day before the date of
14-21 the proposed sale; and
14-22 (3) the majority of the votes cast by qualified voters
14-23 of the district at an election called and held for that purpose
14-24 under the Election Code approve the sale or lease, as appropriate.
14-25 (c) Notice required by Subsection (b)(2) of this section
14-26 must include the:
14-27 (1) date of the proposed sale;
15-1 (2) name and address of the proposed buyer; and
15-2 (3) proposed purchase price.
15-3 SECTION 11. (a) To succeed the directors of the Moore
15-4 County Hospital District who were appointed by the commissioners
15-5 court and whose terms expire in 2000, the Moore County
15-6 Commissioners Court shall appoint two directors to serve terms
15-7 expiring April 1, 2002, and one director to serve a term expiring
15-8 April 1, 2003.
15-9 (b) To succeed the directors of the Moore County Hospital
15-10 District who were appointed by the commissioners court and whose
15-11 terms expire in 2001, the Moore County Commissioners Court shall
15-12 appoint one director to serve a term expiring April 1, 2003, and
15-13 two directors to serve terms expiring April 1, 2004.
15-14 (c) Subsequent appointees of the Moore County Commissioners
15-15 Court serve three-year terms.
15-16 SECTION 12. As soon as possible after the effective date of
15-17 this Act, the medical staff of the Moore County Hospital District's
15-18 hospital shall appoint one director of the district in the manner
15-19 provided by Section 4, Chapter 287, Acts of the 61st Legislature,
15-20 Regular Session, 1969, as amended by this Act.
15-21 SECTION 13. The changes in law made by this Act to Section
15-22 10, Chapter 287, Acts of the 61st Legislature, Regular Session,
15-23 1969, apply only to a request for competitive bids made by the
15-24 board of directors of the Moore County Hospital District on or
15-25 after the effective date of this Act. A request for competitive
15-26 bids by a board made before the effective date of this Act is
15-27 covered by the law in effect when the board submitted the request
16-1 for competitive bids, and the former law is continued in effect for
16-2 that purpose.
16-3 SECTION 14. This Act takes effect September 1, 1999.
16-4 SECTION 15. The importance of this legislation and the
16-5 crowded condition of the calendars in both houses create an
16-6 emergency and an imperative public necessity that the
16-7 constitutional rule requiring bills to be read on three several
16-8 days in each house be suspended, and this rule is hereby suspended.