76R12022 E
By Solis of Cameron H.B. No. 3505
Substitute the following for H.B. No. 3505:
By Uresti C.S.H.B. No. 3505
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation and operation of health services
1-3 districts; granting the power of eminent domain and the authority
1-4 to issue bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle D, Title 4, Health and Safety Code, is
1-7 amended by adding Chapter 287 to read as follows:
1-8 CHAPTER 287. HEALTH SERVICES DISTRICTS
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 287.001. DEFINITIONS. In this chapter:
1-11 (1) "Board" means the board of directors of a
1-12 district.
1-13 (2) "District" means a health services district
1-14 created under this chapter.
1-15 (3) "Director" means a member of the board.
1-16 Sec. 287.002. DISTRICT AUTHORIZATION. A health services
1-17 district may be created and established and, if created, must be
1-18 maintained, operated, and financed in the manner provided by this
1-19 chapter.
1-20 (Sections 287.003-287.020 reserved for expansion)
1-21 SUBCHAPTER B. CREATION OF DISTRICT
1-22 Sec. 287.021. CREATION BY CONCURRENT ORDERS. (a) Except as
1-23 provided by Subsection (b), a county or hospital district and one
1-24 or more other counties or hospital districts may create a health
2-1 services district by adopting concurrent orders.
2-2 (b) A county that is in the service area of a hospital
2-3 district may not be a party to the creation of a health services
2-4 district or to a contract with a health services district. The
2-5 hospital district that serves the county may create and contract
2-6 with the health services district for its service area.
2-7 (c) A concurrent order to create a health services district
2-8 must:
2-9 (1) be approved by the governing body of each creating
2-10 county and hospital district;
2-11 (2) contain identical provisions; and
2-12 (3) define the boundaries of the district to be
2-13 coextensive with the combined boundaries of each creating county
2-14 and hospital district.
2-15 Sec. 287.022. CONTRACT TERMS. (a) A county or hospital
2-16 district that creates a district under this chapter shall contract
2-17 with the district to provide, at a minimum, the health care
2-18 services the county or hospital district is required to provide by
2-19 law or under the constitution. A contract with a county or
2-20 hospital district that created the health services district under
2-21 this chapter must:
2-22 (1) state the term of the contract, not to exceed six
2-23 years;
2-24 (2) specify the purpose, terms, rights, and duties of
2-25 the district, as authorized by this chapter;
2-26 (3) specify the financial contributions to be made by
2-27 each party to the contract to fund the district, as described by
3-1 Section 287.024; and
3-2 (4) specify the land, buildings, improvements,
3-3 equipment, and other assets owned by a party to the contract that
3-4 the district will be required to manage and operate.
3-5 (b) Chapter 791, Government Code, does not apply to a
3-6 contract made under this chapter.
3-7 Sec. 287.023. PURPOSE AND DUTIES. A health services
3-8 district shall:
3-9 (1) provide health care services to indigent residents
3-10 of the district;
3-11 (2) provide health care services to nonindigent
3-12 residents of the district on a sliding-fee scale;
3-13 (3) acquire or construct buildings and improvements
3-14 necessary for providing health care services to residents of the
3-15 district;
3-16 (4) manage the funds contributed to the district by
3-17 each county or hospital district that contracts with the district;
3-18 (5) manage and operate the land, buildings,
3-19 improvements, equipment, and other assets for which the district
3-20 assumes responsibility for management and operation under the
3-21 contract or that are acquired or constructed by the district;
3-22 (6) plan and coordinate with public and private health
3-23 care providers and entities for the long-term provision of health
3-24 care services to residents of the district; and
3-25 (7) ensure the provision of quality health care by
3-26 health care providers employed by or under contract with the
3-27 district.
4-1 Sec. 287.024. FUNDING. (a) Each county or hospital
4-2 district that contracts with the district shall contribute to the
4-3 district for its operation:
4-4 (1) a specified dollar amount from or a percentage of
4-5 the contracting entity's operating budget and reserves;
4-6 (2) state assistance received under Chapter 61;
4-7 (3) federal matching funds received under the Medicaid
4-8 disproportionate share program; and
4-9 (4) any funds that are:
4-10 (A) received under the Agreement Regarding
4-11 Disposition of Settlement Proceeds dated July 18, 1998, or July 24,
4-12 1998, and filed in the United States District Court, Eastern
4-13 District of Texas, in the case styled The State of Texas v. The
4-14 American Tobacco Company, et al., No. 5-96CV-91; and
4-15 (B) received on or after the date on which the
4-16 district is created and before the district is dissolved.
4-17 (b) The district shall maintain an accounting of the funds
4-18 received from each county or hospital district that contracts with
4-19 the district.
4-20 (c) The district may commingle and administer the financial
4-21 contributions of all parties to the contract for district purposes.
4-22 (Sections 287.025-287.040 reserved for expansion)
4-23 SUBCHAPTER C. DISTRICT ADMINISTRATION
4-24 Sec. 287.041. BOARD OF DIRECTORS. (a) Each county or
4-25 hospital district that creates the district shall appoint two
4-26 directors to the board.
4-27 (b) In addition to the directors appointed to the board
5-1 under Subsection (a), the creating counties and hospital districts
5-2 shall agree on and collectively appoint one additional director.
5-3 (c) Directors serve staggered two-year terms, with as near
5-4 as possible to one-half of the directors' terms expiring each year.
5-5 Sec. 287.042. QUALIFICATIONS FOR OFFICE. (a) To be
5-6 eligible to serve as a director, a person must be:
5-7 (1) a resident of the county or hospital district that
5-8 appoints the person, if the person is appointed under Section
5-9 287.041(a); or
5-10 (2) a resident of the district if the person is
5-11 appointed under Section 287.041(b).
5-12 (b) An employee of the district may not serve as a director.
5-13 Sec. 287.043. BOND. (a) Before assuming the duties of the
5-14 office, each director must execute a bond for $5,000 payable to the
5-15 district, conditioned on the faithful performance of the person's
5-16 duties as director.
5-17 (b) The bond shall be kept in the permanent records of the
5-18 district.
5-19 (c) The board may pay for directors' bonds with district
5-20 funds.
5-21 Sec. 287.044. BOARD VACANCY. A vacancy in the office of
5-22 director shall be filled for the unexpired term in the same manner
5-23 as the original appointment.
5-24 Sec. 287.045. OFFICERS. (a) The board shall elect from
5-25 among its members a president and a vice president.
5-26 (b) The board shall appoint a secretary who need not be a
5-27 director.
6-1 Sec. 287.046. OFFICERS' TERMS; VACANCY. (a) Each officer
6-2 of the board serves for a term of one year.
6-3 (b) The board shall fill a vacancy in a board office for the
6-4 unexpired term.
6-5 Sec. 287.047. COMPENSATION. (a) Directors and officers
6-6 serve without compensation but may be reimbursed for actual
6-7 expenses incurred in the performance of official duties.
6-8 (b) Expenses reimbursed under this section must be:
6-9 (1) reported in the district's minute book or other
6-10 district records; and
6-11 (2) approved by the board.
6-12 Sec. 287.048. VOTING REQUIREMENT. A majority of the members
6-13 of the board voting must concur in a matter relating to the
6-14 business of the district.
6-15 Sec. 287.049. ADMINISTRATOR AND ADDITIONAL STAFF. (a) The
6-16 board may appoint qualified persons as administrator of the
6-17 district and as additional administrative staff members as the
6-18 board considers necessary for the efficient operation of the
6-19 district.
6-20 (b) The administrator and other administrative staff members
6-21 serve at the will of the board.
6-22 (c) The administrator and other administrative staff members
6-23 are entitled to compensation as determined by the board.
6-24 (d) Before assuming the administrator's duties, the
6-25 administrator shall execute a bond payable to the health services
6-26 district in an amount not less than $5,000 as determined by the
6-27 board, conditioned on the faithful performance of the
7-1 administrator's duties under this chapter. The board may pay for
7-2 the bond with district funds.
7-3 Sec. 287.050. APPOINTMENTS TO STAFF. The board may:
7-4 (1) appoint to the staff any doctors the board
7-5 considers necessary for the efficient operation of the district;
7-6 and
7-7 (2) make temporary appointments the board considers
7-8 necessary.
7-9 Sec. 287.051. TECHNICIANS, NURSES, AND OTHER DISTRICT
7-10 EMPLOYEES. (a) The district may employ or contract for services
7-11 with technicians, nurses, fiscal agents, accountants, architects,
7-12 attorneys, and other necessary employees.
7-13 (b) The board may delegate to the administrator the
7-14 authority to employ persons for the district.
7-15 Sec. 287.052. GENERAL DUTIES OF ADMINISTRATOR. The
7-16 administrator shall:
7-17 (1) supervise the work and activities of the district;
7-18 and
7-19 (2) direct the general affairs of the district,
7-20 subject to the limitations prescribed by the board.
7-21 Sec. 287.053. RETIREMENT BENEFITS. The board may provide
7-22 retirement benefits for employees of the district by:
7-23 (1) establishing or administering a retirement
7-24 program; or
7-25 (2) electing to participate in the Texas County and
7-26 District Retirement System or in any other statewide retirement
7-27 system in which the district is eligible to participate.
8-1 (Sections 287.054-287.070 reserved for expansion
8-2 SUBCHAPTER D. POWERS AND DUTIES
8-3 Sec. 287.071. RESPONSIBILITY OF GOVERNMENTAL ENTITY. On
8-4 creation of a district, a county or hospital district in which the
8-5 district is located shall transfer to the district:
8-6 (1) management and operation of any land, buildings,
8-7 improvements, and equipment related to the health care system
8-8 located wholly in the district that are owned by the county or
8-9 hospital district in which the district is located, as specified in
8-10 the contract with the counties and hospital districts that created
8-11 the district; and
8-12 (2) operating funds and reserves for operating
8-13 expenses and funds that have been budgeted by the county or
8-14 hospital district in which the district is located to provide
8-15 medical care for residents of the district, as specified in the
8-16 contract with the counties and hospital districts that created the
8-17 district.
8-18 Sec. 287.072. DISTRICT RESPONSIBILITIES. On creation of a
8-19 district, the district assumes the duties required under Section
8-20 287.023 and any additional duties specified in the contract with
8-21 the counties and hospital districts that created the district.
8-22 Sec. 287.073. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
8-23 board shall manage, control, and administer the health care system
8-24 and the funds and resources of the district that are transferred
8-25 under Section 287.071.
8-26 Sec. 287.074. DISTRICT RULES. The board may adopt rules
8-27 governing the operation of the district and the duties, functions,
9-1 and responsibilities of district staff and employees.
9-2 Sec. 287.075. METHODS AND PROCEDURES. The board may
9-3 prescribe:
9-4 (1) the method of making purchases and expenditures by
9-5 and for the district; and
9-6 (2) accounting and control procedures for the
9-7 district.
9-8 Sec. 287.076. HEALTH CARE PROPERTY, FACILITIES, AND
9-9 EQUIPMENT. (a) The board shall determine:
9-10 (1) the type, number, and location of buildings
9-11 required to establish and maintain an adequate health care system;
9-12 and
9-13 (2) the type of equipment necessary for health care.
9-14 (b) The board may:
9-15 (1) acquire property, facilities, and equipment for
9-16 the district for use in the health care system;
9-17 (2) mortgage or pledge the property, facilities, or
9-18 equipment acquired as security for the payment of the purchase
9-19 price;
9-20 (3) transfer by lease to physicians, individuals,
9-21 companies, corporations, or other legal entities or acquire by
9-22 lease district health care facilities;
9-23 (4) sell or otherwise dispose of property, facilities,
9-24 or equipment acquired by the district; and
9-25 (5) contract with a state agency to provide facilities
9-26 and health care services.
9-27 Sec. 287.077. CONSTRUCTION CONTRACTS. (a) The board may
10-1 enter into construction contracts for the district.
10-2 (b) The board may enter into construction contracts that
10-3 involve spending more than $10,000 only after competitive bidding
10-4 as provided by Subchapter B, Chapter 271, Local Government Code.
10-5 (c) Chapter 2253, Government Code, as it relates to
10-6 performance and payment bonds, applies to construction contracts
10-7 let by the district.
10-8 Sec. 287.078. DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
10-9 The board may enter into operating or management contracts relating
10-10 to health care facilities owned by the district or for which the
10-11 district assumes responsibility for managing and operating under
10-12 the terms of the contract with the counties and hospital districts
10-13 that created the district.
10-14 Sec. 287.079. EMINENT DOMAIN. (a) A district may exercise
10-15 the power of eminent domain to acquire a fee simple or other
10-16 interest in property located in the territory of the district if
10-17 the property interest is necessary to the exercise of the rights or
10-18 authority conferred by this chapter.
10-19 (b) A district must exercise the power of eminent domain in
10-20 the manner provided by Chapter 21, Property Code, but the district
10-21 is not required to deposit in the trial court money or a bond as
10-22 provided by Section 21.021(a), Property Code.
10-23 (c) In a condemnation proceeding brought by a district, the
10-24 district is not required to:
10-25 (1) pay in advance or give bond or other security for
10-26 costs in the trial court;
10-27 (2) give bond for the issuance of a temporary
11-1 restraining order or a temporary injunction; or
11-2 (3) give bond for costs or supersedeas on an appeal or
11-3 writ of error.
11-4 Sec. 287.080. EXPENSES FOR MOVING FACILITIES OF RAILROADS OR
11-5 UTILITIES. If, in exercising the power of eminent domain, the
11-6 board requires relocating, raising, lowering, rerouting, changing
11-7 the grade, or altering the construction of any railroad, highway,
11-8 pipeline, or electric transmission and electric distribution,
11-9 telegraph, or telephone lines, conduits, poles, or facilities, the
11-10 district must bear the actual cost of relocating, raising,
11-11 lowering, rerouting, changing the grade, or altering the
11-12 construction to provide comparable replacement without enhancement
11-13 of a facility, after deducting the net salvage value derived from
11-14 the old facility.
11-15 Sec. 287.081. PAYMENT FOR HEALTH CARE SERVICES. (a) The
11-16 district without charge shall supply to a patient residing in the
11-17 district the care and treatment for which the patient, the
11-18 patient's guardian out of the estate of the patient, or a relative
11-19 of the patient who is legally responsible for the patient's support
11-20 cannot pay. In determining the type and degree of care and
11-21 treatment required by a patient, a health care professional
11-22 employed by or under contract with the district may not consider
11-23 that the patient or the patient's relative who is responsible for
11-24 the patient's support cannot pay for the care and treatment of the
11-25 patient.
11-26 (b) Not later than the first day of each operating year, the
11-27 district shall adopt an application procedure to determine
12-1 eligibility for assistance that complies with Section 61.053.
12-2 (c) The administrator of the district may have an inquiry
12-3 made into the financial circumstances of:
12-4 (1) a patient residing in the district and admitted to
12-5 a district facility, including the size of the patient's estate;
12-6 and
12-7 (2) a relative of the patient who is legally
12-8 responsible for the patient's support, including the size of the
12-9 relative's estate.
12-10 (d) The board may adopt a sliding-fee scale for health care
12-11 services provided to a patient who can pay for some, but not all,
12-12 of the care and treatment provided by the district. The fees for
12-13 health care services provided to a patient described by this
12-14 subsection must be based on the income level and size of the estate
12-15 of the patient or relative of the patient who is legally
12-16 responsible for the patient's support.
12-17 (e) A county that created and contracted with the district
12-18 may credit a district expenditure for the care and treatment of an
12-19 eligible county resident to the same extent and in the same manner
12-20 the county would be able to claim the expenditure under Chapter 61
12-21 if the county made the expenditure.
12-22 (f) The board shall adopt rules regarding the collection of
12-23 money that is owed to the district for health care services
12-24 provided to a patient who is determined to be able to pay for all
12-25 or any part of the services from a patient, a patient's estate, or
12-26 a relative who is legally responsible for the patient's support.
12-27 Sec. 287.082. REIMBURSEMENT FOR SERVICES. (a) The board
13-1 shall require reimbursement from a county, municipality, or public
13-2 hospital located outside the boundaries of the district for the
13-3 district's care and treatment of a sick, diseased, or injured
13-4 person of that county, municipality, or public hospital as provided
13-5 by Chapter 61.
13-6 (b) The board shall require reimbursement from the sheriff
13-7 or police chief of a county or municipality for the district's care
13-8 and treatment of a person confined in a jail facility of the county
13-9 or municipality who is not a resident of the district.
13-10 (c) The board may contract with the state or federal
13-11 government for the state or federal government to reimburse the
13-12 district for treatment of a sick, diseased, or injured person.
13-13 Sec. 287.083. SERVICE CONTRACTS. The board may contract
13-14 with a municipality, county, special district, or other political
13-15 subdivision of the state or with a state or federal agency for the
13-16 district to:
13-17 (1) furnish a mobile emergency medical service; or
13-18 (2) provide for the investigatory or welfare needs of
13-19 inhabitants of the district.
13-20 Sec. 287.084. GIFTS, GRANTS, AND ENDOWMENTS. On behalf of
13-21 the district, the board may accept gifts, grants, and endowments to
13-22 be held in trust for any purpose and under any direction,
13-23 limitation, or provision prescribed in writing by the donor that is
13-24 consistent with the proper management of the district.
13-25 Sec. 287.085. AUTHORITY TO SUE AND BE SUED. The board may
13-26 sue and be sued on behalf of the district.
13-27 (Sections 287.086-287.100 reserved for expansion
14-1 SUBCHAPTER E. DISSOLUTION OF DISTRICT
14-2 Sec. 287.101. DISSOLUTION. A district shall be dissolved if
14-3 the contract with the counties and hospital districts that created
14-4 the district expires and is not renewed.
14-5 Sec. 287.102. TRANSFER OF ASSETS AFTER DISSOLUTION. (a) If
14-6 the district is dissolved, the board shall:
14-7 (1) transfer the land, buildings, improvements,
14-8 equipment, and other assets acquired by the district to the county
14-9 or other governmental entity in which the property is located; or
14-10 (2) administer the property, assets, and debts in
14-11 accordance with Section 287.103.
14-12 (b) If the district transfers its land, buildings,
14-13 improvements, equipment, and other assets to a county or other
14-14 governmental entity, the county or entity assumes all debts and
14-15 obligations of the district related to the land, buildings,
14-16 improvements, equipment, or assets at the time of the transfer, and
14-17 the district is dissolved.
14-18 Sec. 287.103. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS
14-19 AFTER DISSOLUTION. (a) If the district does not transfer its
14-20 land, buildings, improvements, equipment, and other assets to a
14-21 county or another governmental entity in the district, the board
14-22 shall continue to control and administer the property, debts, and
14-23 assets of the district until all funds have been disposed of and
14-24 all district debts have been paid or settled.
14-25 (b) If, after administering the property and assets, the
14-26 board determines that the district's property and assets are
14-27 insufficient to pay the debts of the district, the district shall
15-1 transfer the remaining debts to the counties and hospital districts
15-2 that created the district in proportion to the funds contributed to
15-3 the district by each county or hospital district.
15-4 (c) If, after administering the property and assets, the
15-5 board determines that unused funds remain, the board shall transfer
15-6 the unused funds to the counties and hospital districts that
15-7 created the district in proportion to the funds contributed to the
15-8 district by each county or hospital district.
15-9 Sec. 287.104. ACCOUNTING. After the district has paid all
15-10 its debts and has disposed of all its assets and funds as
15-11 prescribed by Sections 287.102 and 287.103, the board shall provide
15-12 an accounting to each county and hospital district that created and
15-13 contracted with the district. The accounting must show the manner
15-14 in which the assets and debts of the district were distributed.
15-15 (Sections 287.105-287.120 reserved for expansion
15-16 SUBCHAPTER F. DISTRICT FINANCES
15-17 Sec. 287.121. FISCAL YEAR. (a) The district operates on
15-18 the fiscal year established by the board.
15-19 (b) The fiscal year may not be changed if revenue bonds of
15-20 the district are outstanding or more than once in a 24-month
15-21 period.
15-22 Sec. 287.122. ANNUAL AUDIT. (a) The board annually shall
15-23 have an audit made of the financial condition of the district.
15-24 (b) A copy of the audit must be provided to each county and
15-25 hospital district that created and contracted with the district.
15-26 Sec. 287.123. DISTRICT AUDIT AND RECORDS. The annual audit
15-27 and other district records are open to inspection during regular
16-1 business hours at the principal office of the district.
16-2 Sec. 287.124. ANNUAL BUDGET. (a) The administrator of the
16-3 district shall prepare a proposed annual budget for the district.
16-4 (b) The proposed budget must contain a complete financial
16-5 statement, including a statement of:
16-6 (1) the outstanding obligations of the district;
16-7 (2) the amount of cash on hand to the credit of each
16-8 fund of the district;
16-9 (3) the amount of money received by the district from
16-10 all sources during the previous year;
16-11 (4) the amount of money available to the district from
16-12 all sources during the ensuing year;
16-13 (5) the amount of the balances expected at the end of
16-14 the year in which the budget is being prepared; and
16-15 (6) the estimated amount of revenues and balances
16-16 available to cover the proposed budget.
16-17 Sec. 287.125. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
16-18 board shall hold a public hearing on the proposed annual budget.
16-19 (b) The board shall publish notice of the hearing in a
16-20 newspaper of general circulation in the district not later than the
16-21 10th day before the date of the hearing.
16-22 (c) Any resident of the district is entitled to be present
16-23 and participate at the hearing.
16-24 (d) At the conclusion of the hearing, the board shall adopt
16-25 a budget by acting on the budget proposed by the administrator.
16-26 The board may make any changes in the proposed budget that in its
16-27 judgment the interests of the residents of the district demand.
17-1 (e) The budget is effective only after adoption by the
17-2 board.
17-3 Sec. 287.126. AMENDING BUDGET. After adoption, the annual
17-4 budget may be amended on the board's approval.
17-5 Sec. 287.127. LIMITATION OF EXPENDITURES. (a) Money may
17-6 not be spent for an expense not included in the annual budget or an
17-7 amendment to it.
17-8 (b) The annual budget for administrative expenses may not
17-9 exceed 10 percent of the total annual budget of the district
17-10 unless, after notice and hearing in the same manner as required for
17-11 the adoption of the annual budget under Section 287.125, the board
17-12 approves an amendment to increase the budget for administrative
17-13 expenses.
17-14 Sec. 287.128. SWORN STATEMENT. As soon as practicable after
17-15 the close of the fiscal year, the administrator shall prepare for
17-16 the board a sworn statement of the amount of money that belongs to
17-17 the district and an account of the disbursements of that money.
17-18 Sec. 287.129. SPENDING AND INVESTMENT LIMITATIONS. (a)
17-19 Except for construction contracts under Section 287.077(a) or as
17-20 provided by Sections 287.142 and 287.143, the district may not
17-21 incur a debt payable from revenues of the district other than the
17-22 revenues on hand or to be on hand in the current and immediately
17-23 following fiscal year of the district.
17-24 (b) The board may invest operating, depreciation, or
17-25 building reserves only in funds or securities specified by Article
17-26 836 or 837, Revised Statutes.
17-27 Sec. 287.130. DEPOSITORY. (a) The board shall name at
18-1 least one bank to serve as depository for district funds.
18-2 (b) District funds, other than those invested as provided by
18-3 Section 287.129(b) and those transmitted to a bank of payment for
18-4 bonds or obligations issued or assumed by the district, shall be
18-5 deposited as received with the depository bank and must remain on
18-6 deposit. This subsection does not limit the power of the board to
18-7 place a portion of district funds on time deposit or to purchase
18-8 certificates of deposit.
18-9 (c) Before the district deposits funds in a bank in an
18-10 amount that exceeds the maximum amount secured by the Federal
18-11 Deposit Insurance Corporation, the bank must execute a bond or
18-12 other security in an amount sufficient to secure from loss the
18-13 district funds that exceed the amount secured by the Federal
18-14 Deposit Insurance Corporation.
18-15 Sec. 287.131. AD VALOREM TAXATION. A district may not
18-16 impose an ad valorem tax.
18-17 (Sections 287.132-287.140 reserved for expansion
18-18 SUBCHAPTER G. BONDS
18-19 Sec. 287.141. GENERAL OBLIGATION BONDS. A district may not
18-20 issue general obligation bonds.
18-21 Sec. 287.142. REVENUE BONDS. (a) The board may issue
18-22 revenue bonds to:
18-23 (1) purchase, construct, acquire, repair, equip, or
18-24 renovate buildings or improvements for district purposes;
18-25 (2) acquire sites to be used for district purposes; or
18-26 (3) acquire and operate a mobile emergency medical
18-27 service to assist the district in carrying out its purposes.
19-1 (b) The bonds must be payable from and secured by a pledge
19-2 of all or part of the revenues derived from the operation of the
19-3 district's health care system. The bonds may be additionally
19-4 secured by a mortgage or deed of trust lien on all or part of
19-5 district property.
19-6 (c) The bonds must be issued in the manner provided by
19-7 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049
19-8 for issuance of revenue bonds by county hospital authorities.
19-9 Sec. 287.143. REFUNDING BONDS. (a) Refunding bonds of the
19-10 district may be issued to refund an outstanding indebtedness the
19-11 district has issued or assumed.
19-12 (b) The bonds must be issued in the manner provided by
19-13 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
19-14 (Article 717k-3, Vernon's Texas Civil Statutes).
19-15 (c) The refunding bonds may be sold and the proceeds applied
19-16 to the payment of outstanding indebtedness or may be exchanged in
19-17 whole or in part for not less than a similar principal amount of
19-18 outstanding indebtedness. If the refunding bonds are to be sold
19-19 and the proceeds applied to the payment of outstanding
19-20 indebtedness, the refunding bonds must be issued and payments made
19-21 in the manner provided by Chapter 503, Acts of the 54th
19-22 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
19-23 Civil Statutes).
19-24 Sec. 287.144. INTEREST AND MATURITY. District bonds must
19-25 mature not later than the 50th anniversary of the date of their
19-26 issuance and must bear interest at a rate not to exceed that
19-27 provided by Chapter 3, Acts of the 61st Legislature, Regular
20-1 Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes).
20-2 Sec. 287.145. EXECUTION OF BONDS. The president of the
20-3 board shall execute the bonds in the name of the district, and the
20-4 secretary of the board shall countersign the bonds in the manner
20-5 provided by the Texas Uniform Facsimile Signature of Public
20-6 Officials Act (Article 717j-1, Vernon's Texas Civil Statutes).
20-7 Sec. 287.146. APPROVAL AND REGISTRATION OF BONDS. (a)
20-8 District bonds are subject to the same requirements with regard to
20-9 approval by the attorney general and registration by the
20-10 comptroller as the law provides for approval and registration of
20-11 bonds issued by counties.
20-12 (b) On approval by the attorney general and registration by
20-13 the comptroller, the bonds are incontestable for any cause.
20-14 Sec. 287.147. BONDS AS INVESTMENTS. District bonds and
20-15 indebtedness assumed by the district are legal and authorized
20-16 investments for:
20-17 (1) banks;
20-18 (2) savings banks;
20-19 (3) trust companies;
20-20 (4) savings and loan associations;
20-21 (5) insurance companies;
20-22 (6) fiduciaries;
20-23 (7) trustees;
20-24 (8) guardians; and
20-25 (9) sinking funds of municipalities, counties, school
20-26 districts, and other political subdivisions of the state and other
20-27 public funds of the state and its agencies, including the permanent
21-1 school fund.
21-2 Sec. 287.148. BONDS AS SECURITY FOR DEPOSITS. District
21-3 bonds are eligible to secure deposits of public funds of the state
21-4 and of municipalities, counties, school districts, and other
21-5 political subdivisions of the state. The bonds are lawful and
21-6 sufficient security for deposits to the extent of their value if
21-7 accompanied by all unmatured coupons.
21-8 Sec. 287.149. TAX STATUS OF BONDS. Because the district
21-9 created under this chapter is a public entity performing an
21-10 essential public function, bonds issued by the district, any
21-11 transaction relating to the bonds, and profits made in the sale of
21-12 the bonds are free from taxation by the state or by any
21-13 municipality, county, special district, or other political
21-14 subdivision of the state.
21-15 SECTION 2. This Act takes effect September 1, 1999.
21-16 SECTION 3. The importance of this legislation and the
21-17 crowded condition of the calendars in both houses create an
21-18 emergency and an imperative public necessity that the
21-19 constitutional rule requiring bills to be read on three several
21-20 days in each house be suspended, and this rule is hereby suspended.