By Swinford H.B. No. 3448
76R7688 MXM-F
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. Sections 4(a) and (b), Chapter 287, Acts of the
1-5 61st Legislature, Regular Session, 1969, are amended to read as
1-6 follows:
1-7 (a) In this section, "medical staff" means physicians
1-8 licensed to practice medicine in this state and holding medical
1-9 staff privileges granted by the district.
1-10 (b) The board of directors of the hospital district consists
1-11 of seven members, appointed as follows:
1-12 (1) six members appointed by the commissioners court
1-13 of the county to serve staggered three-year terms; and
1-14 (2) one member appointed by the medical staff of the
1-15 district's hospital under Subsection (d) of this section to serve a
1-16 two-year term.
1-17 (c) The member of the board of directors appointed under
1-18 Subsection (b)(2) of this section must be a member of the medical
1-19 staff of the district's hospital. If the member is no longer a
1-20 member of the medical staff, the person vacates the position.
1-21 (d) The members of the board of directors appointed under
1-22 Subsection (b)(1) of this section shall prescribe the procedures by
1-23 which the medical staff of the district's hospital shall select a
1-24 board member under this section.
2-1 (e) [Within 10 days after such election is held, or as soon
2-2 thereafter as possible, the commissioners court in such county
2-3 shall convene and canvass the returns of the election and, in the
2-4 event such election results favorably to the proposition specified
2-5 in Section 3, the commissioners court shall so find and declare the
2-6 hospital district established and created and appoint six persons
2-7 as directors of the hospital district to serve until the first
2-8 Saturday in April following the creation and establishment of the
2-9 district, at which time six directors shall be appointed by the
2-10 said commissioners court who shall also designate the length of
2-11 term for each appointee. Three of the directors then appointed
2-12 shall serve for two years; the other three directors shall serve
2-13 for one year. Thereafter, each director shall serve for a period
2-14 of two years and until his successor has been duly appointed and
2-15 has qualified.] Vacancies in office shall be filled for the
2-16 unexpired term by the same appointing entity that appointed the
2-17 vacating member [commissioners court]. [Each member of the board
2-18 of directors shall execute a good and sufficient bond for $5,000
2-19 payable to said district conditioned upon the faithful performance
2-20 of his duties, and each bond shall be purchased at the expense of
2-21 the district; nothing herein shall prohibit covering each of the
2-22 directors under a single blanket public officials' bond. Each
2-23 member of the board of directors shall execute the constitutional
2-24 oath of office.]
2-25 (f) [(b)] No person shall be appointed as a member of the
2-26 board of directors unless the person [he] is a resident of the
2-27 district[, a freeholder,] and a qualified voter. Except as
3-1 provided by Subsections (b)(2) and (c) of this section, a district
3-2 [Neither the] administrator, [an] employee, or [of the district,
3-3 nor] a member of the medical staff is not [of the hospital shall
3-4 be] eligible to serve as a director.
3-5 SECTION 2. Section 5, Chapter 287, Acts of the 61st
3-6 Legislature, Regular Session, 1969, is amended to read as follows:
3-7 Sec. 5. The board of directors shall manage, control, and
3-8 administer the hospital system and all funds and resources of the
3-9 district, but in no event shall any operating, depreciation, or
3-10 building fund reserves be invested in any funds or securities
3-11 authorized by law, including Chapter 2256, Government Code [other
3-12 than those specified in Articles 836 and 837, Revised Civil
3-13 Statutes of Texas, 1925, as amended]. The board is given full
3-14 authority to establish rules and regulations relating to seniority
3-15 of employees of the district, including a retirement plan based
3-16 thereon, and may give effect to previous years of service for those
3-17 employees who have been continuously employed in the operation or
3-18 management of the hospital facilities acquired, including those
3-19 acquired upon the creation thereof by reason of Section 2 of this
3-20 Act, or constructed by the district. The district, through its
3-21 board of directors, shall have the power and authority to sue and
3-22 be sued, and shall be entitled to all causes of action and defenses
3-23 enjoyed by similar authorities, to promulgate rules and regulations
3-24 governing the operation of the hospital, hospital system, its
3-25 staff, and its employees. The board of directors shall appoint a
3-26 qualified person to be known as the administrator or manager of the
3-27 hospital district and may in its discretion appoint an assistant to
4-1 the administrator or manager. Such administrator or manager and
4-2 assistant administrator or manager, if any, shall serve at the will
4-3 of the board and shall receive such compensation as may be fixed by
4-4 the board. The administrator or manager shall, upon assuming his
4-5 duties, execute a bond payable to the hospital district in an
4-6 amount to be set by the board of directors, in no event less than
4-7 $500,000 [$5,000] conditioned that he shall perform the duties
4-8 required of him, and containing such other conditions as the board
4-9 may require. The administrator or manager shall supervise all the
4-10 work and activities of the district and shall have general
4-11 direction of the affairs of the district, subject to the
4-12 limitations as may be prescribed by the board. The board of
4-13 directors shall have the authority to appoint to the staff such
4-14 doctors as it may be deemed necessary for the efficient operation
4-15 of the district, and may provide for temporary appointments to the
4-16 staff if warranted by circumstances. The board may delegate to the
4-17 administrator or manager the authority to employ technicians,
4-18 nurses, and employees of the district. Such board shall be
4-19 authorized to contract with any other public or private entity,
4-20 including a county, municipality, hospital district, or any other
4-21 political subdivision, or a charitable organization, to provide
4-22 health care or related services inside or outside of the district
4-23 [political subdivision or governmental agency whereby the district
4-24 will provide investigatory or other services as to the hospital, or
4-25 welfare needs of the inhabitants of the district and shall be
4-26 authorized to contract with any county or incorporated municipality
4-27 located outside its boundaries for the care and treatment of the
5-1 sick, diseased, or injured persons of any such county or
5-2 municipality, and shall have the authority to contract with the
5-3 State of Texas or agencies of the federal government for the
5-4 treatment of sick, diseased, or injured persons].
5-5 SECTION 3. Section 6, Chapter 287, Acts of the 61st
5-6 Legislature, Regular Session, 1969, is amended to read as follows:
5-7 Sec. 6. The district shall be operated on the basis of a
5-8 fiscal year commencing on July 1 of each year and ending on June 30
5-9 of the following year, and it shall cause an independent audit to
5-10 be made of the financial condition of said district, which,
5-11 together with other records of the district, shall be open to
5-12 inspection at the principal office of the district, such audit to
5-13 be made covering such fiscal year, and the same shall be filed at
5-14 the office of the district as soon as it is completed. The
5-15 administrator or manager shall prepare an annual budget for
5-16 approval by the board of directors. The budget shall also contain
5-17 a complete financial statement of the district showing all
5-18 outstanding obligations of the district, the cash on hand to the
5-19 credit of each and every fund of the district, the funds received
5-20 from all sources during the previous year, the funds available from
5-21 all sources during the ensuing year, with balances expected at year
5-22 end of the year in which the budget is being prepared, and
5-23 estimated revenues and balances available to cover the proposed
5-24 budget and the estimated tax rate which will be required, and the
5-25 proposed expenditures and disbursements and the estimated receipts
5-26 and collections for the following fiscal year. A public hearing on
5-27 the annual budget shall be held by the board of directors after
6-1 notice of such hearing has been published one time at least 10 days
6-2 before the date set therefor. Notice of the budget hearing shall
6-3 be published in a newspaper or newspapers which individually or
6-4 collectively provide general circulation in the hospital district.
6-5 Any resident [property taxpayer] of the district shall have the
6-6 right to be present and participate in said hearing. At the
6-7 conclusion of the hearing, the budget, as proposed by the
6-8 administrator, shall be acted upon by the board of directors. The
6-9 board of directors shall have authority to make such changes in the
6-10 budget as in their sole judgment and discretion, applicable federal
6-11 and state [the] law warrants and allows, and the interest of the
6-12 residents of the district requires in furtherance of hospital
6-13 purposes [taxpayers demands]. No expenditure may be made for any
6-14 expense not included in the annual budget or an amendment thereto.
6-15 The annual budget may be amended from time to time as the
6-16 circumstances may require, but the annual budget, and all
6-17 amendments thereto, shall be approved by the board of directors.
6-18 As soon as practicable after the close of each fiscal year, the
6-19 administrator or manager shall prepare for the board a full sworn
6-20 statement of all moneys belonging to the district and a full
6-21 account of the disbursement of same.
6-22 SECTION 4. Section 7(a), Chapter 287, Acts of the 61st
6-23 Legislature, Regular Session, 1969, is amended to read as follows:
6-24 (a) The board of directors shall have the power and
6-25 authority to issue and sell [its] bonds, certificates of
6-26 obligation, or any other type of financing authorized by the laws
6-27 of this state, including that type of financing authorized by
7-1 Chapter 271, Local Government Code, in the name and upon the faith
7-2 and credit of such hospital district for the purchase,
7-3 construction, acquisition, repair, or renovation of buildings and
7-4 improvements and equipping the same for hospital purposes, and for
7-5 any or all of such purposes. At the time of the issuance of any
7-6 bonds by the district a tax shall be levied by the board sufficient
7-7 to create an interest and sinking fund to pay the interest on and
7-8 principal of said bonds as same mature, providing such tax together
7-9 with any other taxes levied for said district shall not exceed the
7-10 rate of tax voted under the provisions of Section 3 of this Act.
7-11 No bonds shall be issued by such hospital district except refunding
7-12 bonds until authorized by a majority of the qualified electors of
7-13 the district who own taxable property therein and who have duly
7-14 rendered the same for taxation voting at an election called for
7-15 such purpose. The order for bond election shall specify the date
7-16 of the election, the amount of bonds to be authorized, the maximum
7-17 maturity thereof, the maximum rate of interest they are to bear,
7-18 the place or places where the election shall be held, the presiding
7-19 judge and alternate judge for each voting place and provide for
7-20 clerks as in county elections. Notice of any bond election shall
7-21 be given as provided in Article 704, Revised Civil Statutes of
7-22 Texas, 1925, as amended, and shall be conducted in accordance with
7-23 the general laws of Texas pertaining to general elections, except
7-24 as modified by the provisions of this Act.
7-25 SECTION 5. Section 10, Chapter 287, Acts of the 61st
7-26 Legislature, Regular Session, 1969, is amended to read as follows:
7-27 Sec. 10. The board of directors of such district shall have
8-1 the power to prescribe the method and manner of making purchases
8-2 and expenditures by and for such hospital district, and shall also
8-3 be authorized to prescribe all accounting and control procedures.
8-4 All contracts for construction or purchases involving the
8-5 expenditure of more than $15,000 [$2,000] may be made only after
8-6 advertising in the manner provided by Subchapter B, Chapter 271,
8-7 Local Government Code [Chapter 163, Acts of the 42nd Legislature,
8-8 Regular Session, 1931, as amended (Article 2368a, Vernon's Texas
8-9 Civil Statutes)]. Section 271.059, Local Government Code [The
8-10 provisions of Article 5160, Revised Civil Statutes of Texas, 1925,
8-11 as amended], relating to performance and payment bonds, applies
8-12 [shall apply] to construction contracts let by the district. The
8-13 district may acquire equipment for use in its hospital system and
8-14 mortgage or pledge the property so acquired as security for the
8-15 payment of the purchase price[, but any such contract shall provide
8-16 for the entire obligation of the district to be retired within five
8-17 years from the date of the contract]. Except as permitted in the
8-18 preceding sentence and as permitted by Sections 7 and 8 of this
8-19 Act, the district may incur no obligation payable from any revenues
8-20 of the district, taxes or otherwise, except those on hand or to be
8-21 on hand within the then current and following fiscal year of the
8-22 district.
8-23 SECTION 6. Section 11, Chapter 287, Acts of the 61st
8-24 Legislature, Regular Session, 1969, is amended to read as follows:
8-25 Sec. 11. The board of directors of the district shall name
8-26 one or more depositories [banks within its boundaries to serve as
8-27 depository] for the funds of the district. All funds of the
9-1 district, except those invested as provided in Section 5 of this
9-2 Act, and those transmitted to a bank or banks of payment for bonds
9-3 or obligations issued or assumed by the district, shall be
9-4 deposited as received with the depository [bank] and shall remain
9-5 on deposit, provided that nothing herein shall limit the power of
9-6 the board to place a portion of such funds on time deposit or other
9-7 forms of deposit or purchase certificates of deposit.
9-8 SECTION 7. Section 15, Chapter 287, Acts of the 61st
9-9 Legislature, Regular Session, 1969, is amended to read as follows:
9-10 Sec. 15. The directors shall have the authority to levy
9-11 taxes for the entire year in which the district is established as
9-12 the result of the election herein provided. All taxes of the
9-13 district shall be assessed and collected on appraisal district
9-14 [county] tax values as provided in Subsection (a) of this section
9-15 hereof unless the directors, by majority vote, elect to have taxes
9-16 assessed and collected by its own tax assessor-collector under
9-17 Subsection (b) of this section hereof. Any such election may be
9-18 made prior to December 1 annually and shall govern the manner in
9-19 which taxes are thereafter assessed and collected, until changed by
9-20 a similar resolution. Hospital tax shall be levied upon all
9-21 taxable property within said district subject to hospital district
9-22 taxation.
9-23 (a) Under this subsection, district taxes shall be assessed
9-24 and collected on appraisal district [county] tax values in the same
9-25 manner as provided by law with relation to county taxes. The tax
9-26 assessor-collector [of the county in which said district is
9-27 situated] shall be charged and required to accomplish the
10-1 assessment and collection of all taxes levied by and on behalf of
10-2 the district. The assessor-collector of taxes shall charge and
10-3 deduct from payments to the hospital district an amount as fees for
10-4 assessing and collecting the taxes at a rate [of not exceeding two
10-5 percent of the amounts collected] as may be determined by the board
10-6 of directors [, but in no event shall the amount paid exceed $5,000
10-7 in any one calendar year]. [Such fees shall be deposited in the
10-8 officers' salary fund of the county and reported as fees of office
10-9 of the county tax assessor-collector.] Interest and penalties on
10-10 taxes paid to the hospital district shall be the same as in the
10-11 case of county taxes. Discounts shall be the same as allowed by
10-12 the county. The residue of tax collections [after deductions of
10-13 discounts and fees for assessing and collecting] shall be deposited
10-14 in the district's depository. The bond of the [county] tax
10-15 assessor-collector shall stand as security for the proper
10-16 performance of the assessor-collector's [his] duties as
10-17 assessor-collector of the district; or, if in the judgment of the
10-18 district board of directors it is necessary, additional bond
10-19 payable to the district may be required. In all matters pertaining
10-20 to the assessment, collection, and enforcement of taxes for the
10-21 district, the [county] tax assessor-collector shall be authorized
10-22 to act in all respects according to the laws of the State of Texas
10-23 relating to state and county taxes.
10-24 (b) Under this subsection, taxes shall be assessed and
10-25 collected by a tax assessor-collector appointed by the directors,
10-26 who shall also fix the terms of the assessor-collector's [his]
10-27 employment, compensation and requirement for bond to assure the
11-1 faithful performance of the assessor-collector's [his] duties, but
11-2 in no event shall such bond be for less than $100,000 [$5,000. The
11-3 directors shall also annually appoint five persons to serve as a
11-4 board of equalization and shall fix their compensation. Each
11-5 member of the board and the tax assessor shall be residents of the
11-6 district and own real property subject to hospital district
11-7 taxation, and each shall have the same duties, including the
11-8 obligation to execute the oath of office, as required by county
11-9 officials exercising such powers and duties. Except as in this Act
11-10 provided to the contrary, all the provisions of Title 122, Revised
11-11 Civil Statutes of Texas, 1925, as amended, shall apply to the
11-12 district].
11-13 (c) The board shall require reimbursement from:
11-14 (1) a county, municipality, or public hospital located
11-15 outside the district's boundaries, for the district's care and
11-16 treatment of a sick, diseased, or injured person of that county,
11-17 municipality, or public hospital as provided by Chapter 61, Health
11-18 and Safety Code;
11-19 (2) the sheriff of Moore County for the district's
11-20 care and treatment of a person confined in a Moore County jail
11-21 facility and who does not reside in the district; or
11-22 (3) the police chief of a municipality located in
11-23 Moore County for the district's care and treatment of a person
11-24 confined in a jail facility in that municipality and who does not
11-25 reside in the district.
11-26 (d) The board may contract with this or any other state, the
11-27 United States, or an agency or political subdivision of those
12-1 entities, to reimburse the district for the care and treatment of a
12-2 sick, diseased, or injured person.
12-3 (e) The board may contract with any municipality, county,
12-4 special district, state, the United States, or an agency or
12-5 political subdivision of those entities, or a charitable or other
12-6 private entity inside or outside the district for the district to
12-7 furnish a mobile emergency medical service or to provide for the
12-8 investigatory or welfare needs of inhabitants of the district or of
12-9 persons for whom the public or private entity has an obligation to
12-10 provide care.
12-11 SECTION 8. Section 17, Chapter 287, Acts of the 61st
12-12 Legislature, Regular Session, 1969, is amended to read as follows:
12-13 Sec. 17. (a) Whenever a patient residing within the
12-14 district has been admitted to the facilities thereof, the
12-15 administrator or manager may cause inquiry to be made as to the
12-16 patient's [his] circumstances and those of the relatives of such
12-17 patient legally liable for the patient's [his] support. If the
12-18 administrator [he] finds that such patient or the patient's [said]
12-19 relatives are able to pay for the patient's [his] care and
12-20 treatment in whole or in part, an order shall be made directing
12-21 such patient or said relatives to pay to the hospital district for
12-22 the care and support of such patient a specified sum per week in
12-23 proportion to their financial ability. The administrator or
12-24 manager shall have power and authority to collect such sums from
12-25 the estate of the patient or the patient's [his] relatives legally
12-26 liable for the patient's [his] support in the manner provided by
12-27 law for collection of expenses in the last illness of a deceased
13-1 person. If the administrator or manager finds that such patient or
13-2 the patient's [said] relatives are not able to pay either in whole
13-3 or in part for the patient's [his] care and treatment in such
13-4 hospital, same shall become a charge upon the hospital district as
13-5 to the amount of the inability to pay. Should there be any dispute
13-6 as to the ability to pay or doubt in the mind of the administrator
13-7 or manager, the board of directors shall hear and determine same
13-8 after calling witnesses, and shall make such order or orders as may
13-9 be proper. Appeals from the final order of the board shall lie to
13-10 the district court. The substantial evidence rule shall apply.
13-11 (b) Not later than the beginning of each operating year, the
13-12 district shall adopt an application procedure to determine
13-13 eligibility for assistance, as provided by Section 61.053, Health
13-14 and Safety Code.
13-15 SECTION 9. Chapter 287, Acts of the 61st Legislature,
13-16 Regular Session, 1969, is amended by adding Section 25 to read as
13-17 follows:
13-18 Sec. 25. (a) In this section, "long-term lease" means a
13-19 lease for a term that exceeds 10 years.
13-20 (b) The board of directors may not sell a hospital owned and
13-21 operated by the hospital district, including real property, or
13-22 lease the hospital under a long-term lease that relinquishes
13-23 control of the hospital to the lessee unless:
13-24 (1) the agreement for the sale or lease of the
13-25 hospital provides for indigent care in the district;
13-26 (2) in the event of a sale of the hospital, the board
13-27 has published notice of the proposed sale twice in a newspaper with
14-1 general circulation in Moore County, with the first publication
14-2 occurring not later than the 61st day before the date of the
14-3 proposed sale, and the second publication occurring not earlier
14-4 than the 30th day or later than the eighth day before the date of
14-5 the proposed sale; and
14-6 (3) the majority of the votes cast by qualified voters
14-7 of the district at an election called and held for that purpose
14-8 under the Election Code approve the sale or lease, as appropriate.
14-9 (c) Notice required by Subsection (b)(2) of this section
14-10 must include the:
14-11 (1) date of the proposed sale;
14-12 (2) name and address of the proposed buyer; and
14-13 (3) proposed purchase price.
14-14 SECTION 10. (a) To succeed the directors of the Moore
14-15 County Hospital District who were appointed by the commissioners
14-16 court and whose terms expire in 2000, the Moore County
14-17 Commissioners Court shall appoint two directors to serve terms
14-18 expiring April 1, 2002, and one director to serve a term expiring
14-19 April 1, 2003.
14-20 (b) To succeed the directors of the Moore County Hospital
14-21 District who were appointed by the commissioners court and whose
14-22 terms expire in 2001, the Moore County Commissioners Court shall
14-23 appoint one director to serve a term expiring April 1, 2003, and
14-24 two directors to serve terms expiring April 1, 2004.
14-25 (c) Subsequent appointees of the Moore County Commissioners
14-26 Court serve three-year terms.
14-27 SECTION 11. As soon as possible after the effective date of
15-1 this Act, the medical staff of the Moore County Hospital District's
15-2 hospital shall appoint one director of the district in the manner
15-3 provided by Section 4, Chapter 287, Acts of the 61st Legislature,
15-4 Regular Session, 1969, as amended by this Act.
15-5 SECTION 12. The changes in law made by this Act to Section
15-6 10, Chapter 287, Acts of the 61st Legislature, Regular Session,
15-7 1969, apply only to a request for competitive bids made by the
15-8 board of directors of the Moore County Hospital District on or
15-9 after the effective date of this Act. A request for competitive
15-10 bids by a board made before the effective date of this Act is
15-11 covered by the law in effect when the board submitted the request
15-12 for competitive bids, and the former law is continued in effect for
15-13 that purpose.
15-14 SECTION 13. This Act takes effect September 1, 1999.
15-15 SECTION 14. The importance of this legislation and the
15-16 crowded condition of the calendars in both houses create an
15-17 emergency and an imperative public necessity that the
15-18 constitutional rule requiring bills to be read on three several
15-19 days in each house be suspended, and this rule is hereby suspended.