1-1 By: Swinford (Senate Sponsor - Bivins) H.B. No. 3448
1-2 (In the Senate - Received from the House April 26, 1999;
1-3 April 27, 1999, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 13, 1999, reported favorably by
1-5 the following vote: Yeas 5, Nays 0; May 13, 1999, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the Moore County Hospital District.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 4, Chapter 287, Acts of the 61st
1-12 Legislature, Regular Session, 1969, is amended to read as follows:
1-13 Sec. 4. (a) In this section, "medical staff" means
1-14 physicians licensed to practice medicine in this state and holding
1-15 medical staff privileges granted by the district.
1-16 (b) The board of directors of the hospital district consists
1-17 of seven members, appointed as follows:
1-18 (1) six members appointed by the commissioners court
1-19 of the county to serve staggered three-year terms; and
1-20 (2) one member appointed by the medical staff of the
1-21 district's hospital under Subsection (d) of this section to serve a
1-22 two-year term.
1-23 (c) The member of the board of directors appointed under
1-24 Subsection (b)(2) of this section must be a member of the medical
1-25 staff of the district's hospital. If the member is no longer a
1-26 member of the medical staff, the person vacates the position.
1-27 (d) The members of the board of directors appointed under
1-28 Subsection (b)(1) of this section shall prescribe the procedures by
1-29 which the medical staff of the district's hospital shall select a
1-30 board member under this section.
1-31 (e) [Within 10 days after such election is held, or as soon
1-32 thereafter as possible, the commissioners court in such county
1-33 shall convene and canvass the returns of the election and, in the
1-34 event such election results favorably to the proposition specified
1-35 in Section 3, the commissioners court shall so find and declare the
1-36 hospital district established and created and appoint six persons
1-37 as directors of the hospital district to serve until the first
1-38 Saturday in April following the creation and establishment of the
1-39 district, at which time six directors shall be appointed by the
1-40 said commissioners court who shall also designate the length of
1-41 term for each appointee. Three of the directors then appointed
1-42 shall serve for two years; the other three directors shall serve
1-43 for one year. Thereafter, each director shall serve for a period
1-44 of two years and until his successor has been duly appointed and
1-45 has qualified.] Vacancies in office shall be filled for the
1-46 unexpired term by the same appointing entity that appointed the
1-47 vacating member [commissioners court. Each member of the board of
1-48 directors shall execute a good and sufficient bond for $5,000
1-49 payable to said district conditioned upon the faithful performance
1-50 of his duties, and each bond shall be purchased at the expense of
1-51 the district; nothing herein shall prohibit covering each of the
1-52 directors under a single blanket public officials' bond. Each
1-53 member of the board of directors shall execute the constitutional
1-54 oath of office].
1-55 (f) [(b)] No person shall be appointed as a member of the
1-56 board of directors unless the person [he] is a resident of the
1-57 district[, a freeholder,] and a qualified voter. Except as
1-58 provided by Subsections (b)(2) and (c) of this section, a district
1-59 [Neither the] administrator, [an] employee, or [of the district,
1-60 nor] a member of the medical staff is not [of the hospital shall
1-61 be] eligible to serve as a director.
1-62 (g) [(c)] The board of directors shall organize by electing
1-63 one of their number as president and one of their number as vice
1-64 president. A secretary, who need not be a director, shall also be
2-1 elected. Officers shall be elected for a term of one year and
2-2 vacancies shall be filled for the unexpired term by the board of
2-3 directors. Any four members of the board of directors shall
2-4 constitute a quorum and a concurrence of four shall be sufficient
2-5 in all matters pertaining to the business of the district. All
2-6 members of the board of directors and officers shall serve without
2-7 compensation, but may be reimbursed for actual expenses incurred in
2-8 the performance of their official duties upon the approval of such
2-9 expenses by the board of directors and so reported in the minute
2-10 book of the district or other records of the district.
2-11 SECTION 2. Section 5, Chapter 287, Acts of the 61st
2-12 Legislature, Regular Session, 1969, is amended to read as follows:
2-13 Sec. 5. The board of directors shall manage, control, and
2-14 administer the hospital system and all funds and resources of the
2-15 district, but in no event shall any operating, depreciation, or
2-16 building fund reserves be invested in any funds or securities
2-17 authorized by law, including Chapter 2256, Government Code [other
2-18 than those specified in Articles 836 and 837, Revised Civil
2-19 Statutes of Texas, 1925, as amended]. The board is given full
2-20 authority to establish rules and regulations relating to seniority
2-21 of employees of the district, including a retirement plan based
2-22 thereon, and may give effect to previous years of service for those
2-23 employees who have been continuously employed in the operation or
2-24 management of the hospital facilities acquired, including those
2-25 acquired upon the creation thereof by reason of Section 2 of this
2-26 Act, or constructed by the district. The district, through its
2-27 board of directors, shall have the power and authority to sue and
2-28 be sued, and shall be entitled to all causes of action and defenses
2-29 enjoyed by similar authorities, to promulgate rules and regulations
2-30 governing the operation of the hospital, hospital system, its
2-31 staff, and its employees. The board of directors shall appoint a
2-32 qualified person to be known as the administrator or manager of the
2-33 hospital district and may in its discretion appoint an assistant to
2-34 the administrator or manager. Such administrator or manager and
2-35 assistant administrator or manager, if any, shall serve at the will
2-36 of the board and shall receive such compensation as may be fixed by
2-37 the board. The administrator or manager shall, upon assuming his
2-38 duties, execute a bond payable to the hospital district in an
2-39 amount to be set by the board of directors, in no event less than
2-40 $500,000 [$5,000] conditioned that he shall perform the duties
2-41 required of him, and containing such other conditions as the board
2-42 may require. The administrator or manager shall supervise all the
2-43 work and activities of the district and shall have general
2-44 direction of the affairs of the district, subject to the
2-45 limitations as may be prescribed by the board. The board of
2-46 directors shall have the authority to appoint to the staff such
2-47 doctors as it may be deemed necessary for the efficient operation
2-48 of the district, and may provide for temporary appointments to the
2-49 staff if warranted by circumstances. The board may delegate to the
2-50 administrator or manager the authority to employ technicians,
2-51 nurses, and employees of the district. Such board shall be
2-52 authorized to contract with any other public or private entity,
2-53 including a county, municipality, hospital district, or any other
2-54 political subdivision, or a charitable organization, to provide
2-55 health care or related services inside or outside of the district
2-56 [political subdivision or governmental agency whereby the district
2-57 will provide investigatory or other services as to the hospital, or
2-58 welfare needs of the inhabitants of the district and shall be
2-59 authorized to contract with any county or incorporated municipality
2-60 located outside its boundaries for the care and treatment of the
2-61 sick, diseased, or injured persons of any such county or
2-62 municipality, and shall have the authority to contract with the
2-63 State of Texas or agencies of the federal government for the
2-64 treatment of sick, diseased, or injured persons].
2-65 SECTION 3. Chapter 287, Acts of the 61st Legislature,
2-66 Regular Session, 1969, is amended by adding Section 5A to read as
2-67 follows:
2-68 Sec. 5A. (a) The board shall require reimbursement from:
2-69 (1) a county, municipality, or public hospital located
3-1 outside the district's boundaries, for the district's care and
3-2 treatment of a sick, diseased, or injured person of that county,
3-3 municipality, or public hospital as provided by Chapter 61, Health
3-4 and Safety Code;
3-5 (2) the office of the sheriff of Moore County for the
3-6 district's care and treatment of a person confined in a Moore
3-7 County jail facility who is not indigent and does not reside in the
3-8 district; or
3-9 (3) the police department of a municipality located in
3-10 Moore County for the district's care and treatment of a person
3-11 confined in a jail facility in that municipality who is not
3-12 indigent and does not reside in the district.
3-13 (b) The board may contract with this or any other state, the
3-14 United States, or an agency or political subdivision of those
3-15 entities, to reimburse the district for the care and treatment of a
3-16 sick, diseased, or injured person.
3-17 (c) The board may contract with any municipality, county,
3-18 special district, state, the United States, or an agency or
3-19 political subdivision of those entities, or a charitable or other
3-20 private entity inside or outside the district for the district to
3-21 furnish a mobile emergency medical service or to provide for the
3-22 investigatory or welfare needs of inhabitants of the district or of
3-23 persons for whom the public or private entity has an obligation to
3-24 provide care.
3-25 SECTION 4. Section 6, Chapter 287, Acts of the 61st
3-26 Legislature, Regular Session, 1969, is amended to read as follows:
3-27 Sec. 6. The district shall be operated on the basis of a
3-28 fiscal year commencing on July 1 of each year and ending on June 30
3-29 of the following year, and it shall cause an independent audit to
3-30 be made of the financial condition of said district, which,
3-31 together with other records of the district, shall be open to
3-32 inspection at the principal office of the district, such audit to
3-33 be made covering such fiscal year, and the same shall be filed at
3-34 the office of the district as soon as it is completed. The
3-35 administrator or manager shall prepare an annual budget for
3-36 approval by the board of directors. The budget shall also contain
3-37 a complete financial statement of the district showing all
3-38 outstanding obligations of the district, the cash on hand to the
3-39 credit of each and every fund of the district, the funds received
3-40 from all sources during the previous year, the funds available from
3-41 all sources during the ensuing year, with balances expected at year
3-42 end of the year in which the budget is being prepared, and
3-43 estimated revenues and balances available to cover the proposed
3-44 budget and the estimated tax rate which will be required, and the
3-45 proposed expenditures and disbursements and the estimated receipts
3-46 and collections for the following fiscal year. A public hearing on
3-47 the annual budget shall be held by the board of directors after
3-48 notice of such hearing has been published one time at least 10 days
3-49 before the date set therefor. Notice of the budget hearing shall
3-50 be published in a newspaper or newspapers which individually or
3-51 collectively provide general circulation in the hospital district.
3-52 Any resident [property taxpayer] of the district shall have the
3-53 right to be present and participate in said hearing. At the
3-54 conclusion of the hearing, the budget, as proposed by the
3-55 administrator, shall be acted upon by the board of directors. The
3-56 board of directors shall have authority to make such changes in the
3-57 budget as in their sole judgment and discretion, applicable federal
3-58 and state [the] law warrants and allows, and the interest of the
3-59 residents of the district requires in furtherance of hospital
3-60 purposes [taxpayers demands]. No expenditure may be made for any
3-61 expense not included in the annual budget or an amendment thereto.
3-62 The annual budget may be amended from time to time as the
3-63 circumstances may require, but the annual budget, and all
3-64 amendments thereto, shall be approved by the board of directors.
3-65 As soon as practicable after the close of each fiscal year, the
3-66 administrator or manager shall prepare for the board a full sworn
3-67 statement of all moneys belonging to the district and a full
3-68 account of the disbursement of same.
3-69 SECTION 5. Section 7(a), Chapter 287, Acts of the 61st
4-1 Legislature, Regular Session, 1969, is amended to read as follows:
4-2 (a) The board of directors shall have the power and
4-3 authority to issue and sell [its] bonds, certificates of
4-4 obligation, or any other type of financing authorized by the laws
4-5 of this state, including that type of financing authorized by
4-6 Chapter 271, Local Government Code, in the name and upon the faith
4-7 and credit of such hospital district for the purchase,
4-8 construction, acquisition, repair, or renovation of buildings and
4-9 improvements and equipping the same for hospital purposes, and for
4-10 any or all of such purposes. At the time of the issuance of any
4-11 bonds by the district a tax shall be levied by the board sufficient
4-12 to create an interest and sinking fund to pay the interest on and
4-13 principal of said bonds as same mature, providing such tax together
4-14 with any other taxes levied for said district shall not exceed the
4-15 rate of tax voted under the provisions of Section 3 of this Act.
4-16 No bonds shall be issued by such hospital district except refunding
4-17 bonds until authorized by a majority of the qualified electors of
4-18 the district who own taxable property therein and who have duly
4-19 rendered the same for taxation voting at an election called for
4-20 such purpose. The order for bond election shall specify the date
4-21 of the election, the amount of bonds to be authorized, the maximum
4-22 maturity thereof, the maximum rate of interest they are to bear,
4-23 the place or places where the election shall be held, the presiding
4-24 judge and alternate judge for each voting place and provide for
4-25 clerks as in county elections. Notice of any bond election shall
4-26 be given as provided in Article 704, Revised Civil Statutes of
4-27 Texas, 1925, as amended, and shall be conducted in accordance with
4-28 the general laws of Texas pertaining to general elections, except
4-29 as modified by the provisions of this Act.
4-30 SECTION 6. Section 10, Chapter 287, Acts of the 61st
4-31 Legislature, Regular Session, 1969, is amended to read as follows:
4-32 Sec. 10. The board of directors of such district shall have
4-33 the power to prescribe the method and manner of making purchases
4-34 and expenditures by and for such hospital district, and shall also
4-35 be authorized to prescribe all accounting and control procedures.
4-36 All contracts for construction or purchases involving the
4-37 expenditure of more than $15,000 [$2,000] may be made only after
4-38 advertising in the manner provided by Subchapter B, Chapter 271,
4-39 Local Government Code [Chapter 163, Acts of the 42nd Legislature,
4-40 Regular Session, 1931, as amended (Article 2368a, Vernon's Texas
4-41 Civil Statutes)]. Section 271.059, Local Government Code [The
4-42 provisions of Article 5160, Revised Civil Statutes of Texas, 1925,
4-43 as amended], relating to performance and payment bonds, applies
4-44 [shall apply] to construction contracts let by the district. The
4-45 district may acquire equipment for use in its hospital system and
4-46 mortgage or pledge the property so acquired as security for the
4-47 payment of the purchase price[, but any such contract shall provide
4-48 for the entire obligation of the district to be retired within five
4-49 years from the date of the contract]. Except as permitted in the
4-50 preceding sentence and as permitted by Sections 7 and 8 of this
4-51 Act, the district may incur no obligation payable from any revenues
4-52 of the district, taxes or otherwise, except those on hand or to be
4-53 on hand within the then current and following fiscal year of the
4-54 district.
4-55 SECTION 7. Section 11, Chapter 287, Acts of the 61st
4-56 Legislature, Regular Session, 1969, is amended to read as follows:
4-57 Sec. 11. The board of directors of the district shall name
4-58 one or more depositories [banks within its boundaries to serve as
4-59 depository] for the funds of the district. All funds of the
4-60 district, except those invested as provided in Section 5 of this
4-61 Act, and those transmitted to a bank or banks of payment for bonds
4-62 or obligations issued or assumed by the district, shall be
4-63 deposited as received with the depository [bank] and shall remain
4-64 on deposit, provided that nothing herein shall limit the power of
4-65 the board to place a portion of such funds on time deposit or other
4-66 forms of deposit or purchase certificates of deposit.
4-67 SECTION 8. Section 15, Chapter 287, Acts of the 61st
4-68 Legislature, Regular Session, 1969, is amended to read as follows:
4-69 Sec. 15. The directors shall have the authority to levy
5-1 taxes for the entire year in which the district is established as
5-2 the result of the election herein provided. All taxes of the
5-3 district shall be assessed and collected on appraisal district
5-4 [county] tax values as provided in Subsection (a) of this section
5-5 hereof unless the directors, by majority vote, elect to have taxes
5-6 assessed and collected by its own tax assessor-collector under
5-7 Subsection (b) of this section hereof. Any such election may be
5-8 made prior to December 1 annually and shall govern the manner in
5-9 which taxes are thereafter assessed and collected, until changed by
5-10 a similar resolution. Hospital tax shall be levied upon all
5-11 taxable property within said district subject to hospital district
5-12 taxation.
5-13 (a) Under this subsection, district taxes shall be assessed
5-14 and collected on appraisal district [county] tax values in the same
5-15 manner as provided by law with relation to county taxes. The tax
5-16 assessor-collector [of the county in which said district is
5-17 situated] shall be charged and required to accomplish the
5-18 assessment and collection of all taxes levied by and on behalf of
5-19 the district. The assessor-collector of taxes shall charge and
5-20 deduct from payments to the hospital district an amount as fees for
5-21 assessing and collecting the taxes at a rate [of not exceeding two
5-22 percent of the amounts collected] as may be determined by the board
5-23 of directors [, but in no event shall the amount paid exceed $5,000
5-24 in any one calendar year]. [Such fees shall be deposited in the
5-25 officers' salary fund of the county and reported as fees of office
5-26 of the county tax assessor-collector.] Interest and penalties on
5-27 taxes paid to the hospital district shall be the same as in the
5-28 case of county taxes. Discounts shall be the same as allowed by
5-29 the county. The residue of tax collections [after deductions of
5-30 discounts and fees for assessing and collecting] shall be deposited
5-31 in the district's depository. The bond of the [county] tax
5-32 assessor-collector shall stand as security for the proper
5-33 performance of the assessor-collector's [his] duties as
5-34 assessor-collector of the district; or, if in the judgment of the
5-35 district board of directors it is necessary, additional bond
5-36 payable to the district may be required. In all matters pertaining
5-37 to the assessment, collection, and enforcement of taxes for the
5-38 district, the [county] tax assessor-collector shall be authorized
5-39 to act in all respects according to the laws of the State of Texas
5-40 relating to state and county taxes.
5-41 (b) Under this subsection, taxes shall be assessed and
5-42 collected by a tax assessor-collector appointed by the directors,
5-43 who shall also fix the terms of the assessor-collector's [his]
5-44 employment, compensation and requirement for bond to assure the
5-45 faithful performance of the assessor-collector's [his] duties, but
5-46 in no event shall such bond be for less than $100,000 [$5,000. The
5-47 directors shall also annually appoint five persons to serve as a
5-48 board of equalization and shall fix their compensation. Each
5-49 member of the board and the tax assessor shall be residents of the
5-50 district and own real property subject to hospital district
5-51 taxation, and each shall have the same duties, including the
5-52 obligation to execute the oath of office, as required by county
5-53 officials exercising such powers and duties. Except as in this Act
5-54 provided to the contrary, all the provisions of Title 122, Revised
5-55 Civil Statutes of Texas, 1925, as amended, shall apply to the
5-56 district].
5-57 SECTION 9. Section 17, Chapter 287, Acts of the 61st
5-58 Legislature, Regular Session, 1969, is amended to read as follows:
5-59 Sec. 17. (a) Whenever a patient residing within the
5-60 district has been admitted to the facilities thereof, the
5-61 administrator or manager may cause inquiry to be made as to the
5-62 patient's [his] circumstances and those of the relatives of such
5-63 patient legally liable for the patient's [his] support. If the
5-64 administrator [he] finds that such patient or the patient's [said]
5-65 relatives are able to pay for the patient's [his] care and
5-66 treatment in whole or in part, an order shall be made directing
5-67 such patient or said relatives to pay to the hospital district for
5-68 the care and support of such patient a specified sum per week in
5-69 proportion to their financial ability. The administrator or
6-1 manager shall have power and authority to collect such sums from
6-2 the estate of the patient or the patient's [his] relatives legally
6-3 liable for the patient's [his] support in the manner provided by
6-4 law for collection of expenses in the last illness of a deceased
6-5 person. If the administrator or manager finds that such patient or
6-6 the patient's [said] relatives are not able to pay either in whole
6-7 or in part for the patient's [his] care and treatment in such
6-8 hospital, same shall become a charge upon the hospital district as
6-9 to the amount of the inability to pay. Should there be any dispute
6-10 as to the ability to pay or doubt in the mind of the administrator
6-11 or manager, the board of directors shall hear and determine same
6-12 after calling witnesses, and shall make such order or orders as may
6-13 be proper. Appeals from the final order of the board shall lie to
6-14 the district court. The substantial evidence rule shall apply.
6-15 (b) Not later than the beginning of each operating year, the
6-16 district shall adopt an application procedure to determine
6-17 eligibility for assistance, as provided by Section 61.053, Health
6-18 and Safety Code.
6-19 SECTION 10. Chapter 287, Acts of the 61st Legislature,
6-20 Regular Session, 1969, is amended by adding Section 25 to read as
6-21 follows:
6-22 Sec. 25. (a) In this section, "long-term lease" means a
6-23 lease for a term that exceeds 10 years.
6-24 (b) The board of directors may not sell a hospital owned and
6-25 operated by the hospital district, including real property, or
6-26 lease the hospital under a long-term lease that relinquishes
6-27 control of the hospital to the lessee unless:
6-28 (1) the agreement for the sale or lease of the
6-29 hospital provides for indigent care in the district;
6-30 (2) in the event of a sale of the hospital, the board
6-31 has published notice of the proposed sale twice in a newspaper with
6-32 general circulation in Moore County, with the first publication
6-33 occurring not later than the 61st day before the date of the
6-34 proposed sale, and the second publication occurring not earlier
6-35 than the 30th day or later than the eighth day before the date of
6-36 the proposed sale; and
6-37 (3) the majority of the votes cast by qualified voters
6-38 of the district at an election called and held for that purpose
6-39 under the Election Code approve the sale or lease, as appropriate.
6-40 (c) Notice required by Subsection (b)(2) of this section
6-41 must include the:
6-42 (1) date of the proposed sale;
6-43 (2) name and address of the proposed buyer; and
6-44 (3) proposed purchase price.
6-45 SECTION 11. (a) To succeed the directors of the Moore
6-46 County Hospital District who were appointed by the commissioners
6-47 court and whose terms expire in 2000, the Moore County
6-48 Commissioners Court shall appoint two directors to serve terms
6-49 expiring April 1, 2002, and one director to serve a term expiring
6-50 April 1, 2003.
6-51 (b) To succeed the directors of the Moore County Hospital
6-52 District who were appointed by the commissioners court and whose
6-53 terms expire in 2001, the Moore County Commissioners Court shall
6-54 appoint one director to serve a term expiring April 1, 2003, and
6-55 two directors to serve terms expiring April 1, 2004.
6-56 (c) Subsequent appointees of the Moore County Commissioners
6-57 Court serve three-year terms.
6-58 SECTION 12. As soon as possible after the effective date of
6-59 this Act, the medical staff of the Moore County Hospital District's
6-60 hospital shall appoint one director of the district in the manner
6-61 provided by Section 4, Chapter 287, Acts of the 61st Legislature,
6-62 Regular Session, 1969, as amended by this Act.
6-63 SECTION 13. The changes in law made by this Act to Section
6-64 10, Chapter 287, Acts of the 61st Legislature, Regular Session,
6-65 1969, apply only to a request for competitive bids made by the
6-66 board of directors of the Moore County Hospital District on or
6-67 after the effective date of this Act. A request for competitive
6-68 bids by a board made before the effective date of this Act is
6-69 covered by the law in effect when the board submitted the request
7-1 for competitive bids, and the former law is continued in effect for
7-2 that purpose.
7-3 SECTION 14. This Act takes effect September 1, 1999.
7-4 SECTION 15. The importance of this legislation and the
7-5 crowded condition of the calendars in both houses create an
7-6 emergency and an imperative public necessity that the
7-7 constitutional rule requiring bills to be read on three several
7-8 days in each house be suspended, and this rule is hereby suspended.
7-9 * * * * *