By Solis of Cameron H.B. No. 3505
76R8791 KLA-D
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 CONTRACT. (a) Except as provided
1-23 by Subsection (b), two or more political subdivisions of this
1-24 state, including a hospital district, may create a health services
2-1 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
2-10 political subdivision;
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 political
2-14 subdivision.
2-15 Sec. 287.022. CONTRACT TERMS. (a) A political subdivision
2-16 that creates a district under this chapter shall contract with the
2-17 district to provide, at a minimum, the health care services the
2-18 political subdivision is required to provide by law or under the
2-19 constitution. A contract with a political subdivision that created
2-20 the health services district under this chapter must:
2-21 (1) state the term of the contract, not to exceed six
2-22 years;
2-23 (2) specify the purpose, terms, rights, and duties of
2-24 the district, as authorized by this chapter;
2-25 (3) specify the financial contributions to be made by
2-26 each party to the contract to fund the district, as described by
2-27 Section 287.024; and
3-1 (4) specify the land, buildings, improvements,
3-2 equipment, and other assets owned by a party to the contract that
3-3 the district will be required to manage and operate.
3-4 (b) Chapter 791, Government Code, does not apply to a
3-5 contract made under this chapter.
3-6 Sec. 287.023. PURPOSE AND DUTIES. A health services
3-7 district shall:
3-8 (1) provide health care services to indigent residents
3-9 of the district;
3-10 (2) provide health care services to non-indigent
3-11 residents of the district on a sliding-fee scale;
3-12 (3) manage the funds contributed to the district by
3-13 each political subdivision that contracts with the district;
3-14 (4) manage and operate the land, buildings,
3-15 improvements, equipment, and other assets for which the district
3-16 assumes responsibility for management and operation under the
3-17 contract or that are acquired by the district; and
3-18 (5) plan and coordinate with public and private health
3-19 care providers and entities for the long-term provision of health
3-20 care services to residents of the district.
3-21 Sec. 287.024. FUNDING. (a) Each political subdivision that
3-22 contracts with the district shall contribute to the district for
3-23 its operation:
3-24 (1) a specified dollar amount from or a percentage of
3-25 the contracting entity's operating budget and reserves;
3-26 (2) state assistance received under Chapter 61;
3-27 (3) federal matching funds received under the Medicaid
4-1 disproportionate share program; and
4-2 (4) any funds received under the Agreement Regarding
4-3 Disposition of Settlement Proceeds dated July 18, 1998, or July 24,
4-4 1998, and filed in the United States District Court, Eastern
4-5 District of Texas, in the case styled The State of Texas v. The
4-6 American Tobacco Company, et al., No. 5-96CV-91.
4-7 (b) The district shall maintain an accounting of the funds
4-8 received from each political subdivision that contracts with the
4-9 district.
4-10 (c) The district may commingle and administer the financial
4-11 contributions of all parties to the contract for district purposes.
4-12 (Sections 287.025-287.040 reserved for expansion)
4-13 SUBCHAPTER C. DISTRICT ADMINISTRATION
4-14 Sec. 287.041. BOARD OF DIRECTORS. (a) Each political
4-15 subdivision that creates the district shall appoint two directors
4-16 to the board.
4-17 (b) In addition to the directors appointed to the board
4-18 under Subsection (a), the political subdivisions shall agree on and
4-19 collectively appoint one additional director.
4-20 (c) Directors serve staggered two-year terms, with as near
4-21 as possible to one-half of the directors' terms expiring each year.
4-22 Sec. 287.042. QUALIFICATIONS FOR OFFICE. (a) To be
4-23 eligible to serve as a director, a person must be:
4-24 (1) a resident of the political subdivision that
4-25 appoints the person, if the person is appointed under Section
4-26 287.041(a); or
4-27 (2) a resident of the district if the person is
5-1 appointed under Section 287.041(b).
5-2 (b) An employee of the district may not serve as a director.
5-3 Sec. 287.043. BOND. (a) Before assuming the duties of the
5-4 office, each director must execute a bond for $5,000 payable to the
5-5 district, conditioned on the faithful performance of the person's
5-6 duties as director.
5-7 (b) The bond shall be kept in the permanent records of the
5-8 district.
5-9 (c) The board may pay for directors' bonds with district
5-10 funds.
5-11 Sec. 287.044. BOARD VACANCY. A vacancy in the office of
5-12 director shall be filled for the unexpired term in the same manner
5-13 as the original appointment.
5-14 Sec. 287.045. OFFICERS. (a) The board shall elect from
5-15 among its members a president and a vice president.
5-16 (b) The board shall appoint a secretary who need not be a
5-17 director.
5-18 Sec. 287.046. OFFICERS' TERMS; VACANCY. (a) Each officer
5-19 of the board serves for a term of one year.
5-20 (b) The board shall fill a vacancy in a board office for the
5-21 unexpired term.
5-22 Sec. 287.047. COMPENSATION. (a) Directors and officers
5-23 serve without compensation but may be reimbursed for actual
5-24 expenses incurred in the performance of official duties.
5-25 (b) Expenses reimbursed under this section must be:
5-26 (1) reported in the district's minute book or other
5-27 district records; and
6-1 (2) approved by the board.
6-2 Sec. 287.048. VOTING REQUIREMENT. A majority of the members
6-3 of the board voting must concur in a matter relating to the
6-4 business of the district.
6-5 Sec. 287.049. ADMINISTRATOR, ASSISTANT ADMINISTRATOR, AND
6-6 ATTORNEY. (a) The board may appoint qualified persons as
6-7 administrator of the district, assistant administrator, and
6-8 attorney for the district.
6-9 (b) The administrator, assistant administrator, and attorney
6-10 serve at the will of the board.
6-11 (c) The administrator, assistant administrator, and attorney
6-12 are entitled to compensation as determined by the board.
6-13 (d) Before assuming the administrator's duties, the
6-14 administrator shall execute a bond payable to the health services
6-15 district in an amount not less than $5,000 as determined by the
6-16 board, conditioned on the faithful performance of the
6-17 administrator's duties under this chapter. The board may pay for
6-18 the bond with district funds.
6-19 Sec. 287.050. APPOINTMENTS TO STAFF. The board may:
6-20 (1) appoint to the staff any doctors the board
6-21 considers necessary for the efficient operation of the district;
6-22 and
6-23 (2) make temporary appointments the board considers
6-24 necessary.
6-25 Sec. 287.051. TECHNICIANS, NURSES, AND OTHER DISTRICT
6-26 EMPLOYEES. (a) The district may employ technicians, nurses,
6-27 fiscal agents, accountants, architects, additional attorneys, and
7-1 other necessary employees.
7-2 (b) The board may delegate to the administrator the
7-3 authority to employ persons for the district.
7-4 Sec. 287.052. GENERAL DUTIES OF ADMINISTRATOR. The
7-5 administrator shall:
7-6 (1) supervise the work and activities of the district;
7-7 and
7-8 (2) direct the general affairs of the district,
7-9 subject to the limitations prescribed by the board.
7-10 Sec. 287.053. RETIREMENT BENEFITS. The board may provide
7-11 retirement benefits for employees of the district by:
7-12 (1) establishing or administering a retirement
7-13 program; or
7-14 (2) electing to participate in the Texas County and
7-15 District Retirement System or in any other statewide retirement
7-16 system in which the district is eligible to participate.
7-17 (Sections 287.054-287.070 reserved for expansion
7-18 SUBCHAPTER D. POWERS AND DUTIES
7-19 Sec. 287.071. RESPONSIBILITY OF GOVERNMENTAL ENTITY. On
7-20 creation of a district, a county, municipality, hospital district,
7-21 or other governmental entity in which the district is located shall
7-22 transfer to the district:
7-23 (1) management and operation of any land, buildings,
7-24 improvements, and equipment related to the hospital system located
7-25 wholly in the district that are owned by the county, municipality,
7-26 hospital district, or other governmental entity in which the
7-27 district is located, as specified in the contract with the
8-1 political subdivisions that created the district; and
8-2 (2) operating funds and reserves for operating
8-3 expenses and funds that have been budgeted by the county,
8-4 municipality, hospital district, or other governmental entity in
8-5 which the district is located to provide medical care for residents
8-6 of the district, as specified in the contract with the political
8-7 subdivisions that created the district.
8-8 Sec. 287.072. DISTRICT RESPONSIBILITIES. On creation of a
8-9 district, the district assumes the duties required under Section
8-10 287.023 and any additional duties specified in the contract with
8-11 the political subdivisions that created the district.
8-12 Sec. 287.073. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
8-13 board shall manage, control, and administer the hospital system and
8-14 the funds and resources of the district that are transferred under
8-15 Section 287.071.
8-16 Sec. 287.074. DISTRICT RULES. The board may adopt rules
8-17 governing the operation of the district and the duties, functions,
8-18 and responsibilities of district staff and employees.
8-19 Sec. 287.075. METHODS AND PROCEDURES. The board may
8-20 prescribe:
8-21 (1) the method of making purchases and expenditures by
8-22 and for the district; and
8-23 (2) accounting and control procedures for the
8-24 district.
8-25 Sec. 287.076. HOSPITAL PROPERTY, FACILITIES, AND EQUIPMENT.
8-26 (a) The board shall determine:
8-27 (1) the type, number, and location of buildings
9-1 required to establish and maintain an adequate hospital system; and
9-2 (2) the type of equipment necessary for hospital care.
9-3 (b) The board may:
9-4 (1) acquire property, facilities, and equipment for
9-5 the district for use in the hospital system;
9-6 (2) mortgage or pledge the property, facilities, or
9-7 equipment acquired as security for the payment of the purchase
9-8 price;
9-9 (3) transfer by lease to physicians, individuals,
9-10 companies, corporations, or other legal entities or acquire by
9-11 lease district hospital facilities;
9-12 (4) sell or otherwise dispose of property, facilities,
9-13 or equipment acquired by the district; and
9-14 (5) contract with a state agency to provide facilities
9-15 and health care services.
9-16 Sec. 287.077. CONSTRUCTION CONTRACTS. (a) The board may
9-17 enter into construction contracts for the district.
9-18 (b) The board may enter into construction contracts that
9-19 involve spending more than $10,000 only after competitive bidding
9-20 as provided by Subchapter B, Chapter 271, Local Government Code.
9-21 (c) Chapter 2253, Government Code, as it relates to
9-22 performance and payment bonds, applies to construction contracts
9-23 let by the district.
9-24 Sec. 287.078. DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
9-25 The board may enter into operating or management contracts relating
9-26 to hospital facilities owned by the district or for which the
9-27 district assumes responsibility for managing and operating under
10-1 the terms of the contract with the political subdivisions that
10-2 created the district.
10-3 Sec. 287.079. EMINENT DOMAIN. (a) A district may exercise
10-4 the power of eminent domain to acquire a fee simple or other
10-5 interest in property located in the territory of the district if
10-6 the property interest is necessary to the exercise of the rights or
10-7 authority conferred by this chapter.
10-8 (b) A district must exercise the power of eminent domain in
10-9 the manner provided by Chapter 21, Property Code, but the district
10-10 is not required to deposit in the trial court money or a bond as
10-11 provided by Section 21.021(a), Property Code.
10-12 (c) In a condemnation proceeding brought by a district, the
10-13 district is not required to:
10-14 (1) pay in advance or give bond or other security for
10-15 costs in the trial court;
10-16 (2) give bond for the issuance of a temporary
10-17 restraining order or a temporary injunction; or
10-18 (3) give bond for costs or supersedeas on an appeal or
10-19 writ of error.
10-20 Sec. 287.080. EXPENSES FOR MOVING FACILITIES OF RAILROADS OR
10-21 UTILITIES. If, in exercising the power of eminent domain, the
10-22 board requires relocating, raising, lowering, rerouting, changing
10-23 the grade, or altering the construction of any railroad, highway,
10-24 pipeline, or electric transmission and electric distribution,
10-25 telegraph, or telephone lines, conduits, poles, or facilities, the
10-26 district must bear the actual cost of relocating, raising,
10-27 lowering, rerouting, changing the grade, or altering the
11-1 construction to provide comparable replacement without enhancement
11-2 of a facility, after deducting the net salvage value derived from
11-3 the old facility.
11-4 Sec. 287.081. PAYMENT FOR HEALTH CARE SERVICES. (a) The
11-5 district without charge shall supply to a patient residing in the
11-6 district the care and treatment that the patient or a relative of
11-7 the patient who is legally responsible for the patient's support
11-8 cannot pay.
11-9 (b) Not later than the first day of each operating year, the
11-10 district shall adopt an application procedure to determine
11-11 eligibility for assistance that complies with Section 61.053.
11-12 (c) The administrator of the district may have an inquiry
11-13 made into the financial circumstances of:
11-14 (1) a patient residing in the district and admitted to
11-15 a district facility; and
11-16 (2) a relative of the patient who is legally
11-17 responsible for the patient's support.
11-18 (d) On finding that a patient or a relative of the patient
11-19 legally responsible for the patient's support can pay for all or
11-20 any part of the care and treatment provided by the district, the
11-21 administrator shall report that finding to the board, and the board
11-22 shall issue an order directing the patient or the relative to pay
11-23 the district each week a specified amount that the individual is
11-24 able to pay.
11-25 (e) The board may adopt a sliding-fee scale for health care
11-26 services provided to a patient who can pay for some, but not all,
11-27 of the care and treatment provided by the district.
12-1 (f) Notwithstanding Section 61.036, a county that created
12-2 and contracted with the district may credit a district expenditure
12-3 for the care and treatment of a county resident who qualifies for
12-4 payment on the sliding-fee scale adopted under Subsection (e)
12-5 toward eligibility for state assistance even if the resident does
12-6 not meet the eligibility standards under Chapter 61.
12-7 (g) The administrator may collect money owed to the district
12-8 from the estate of a patient or from that of a relative who was
12-9 legally responsible for the patient's support in the manner
12-10 provided by law for collection of expenses in the last illness of a
12-11 deceased person.
12-12 (h) If there is a dispute relating to an individual's
12-13 ability to pay or if the administrator has any doubt concerning an
12-14 individual's ability to pay, the board shall call witnesses, hear
12-15 and resolve the question, and issue a final order. An appeal from
12-16 a final order of the board must be made to a district court in the
12-17 county in which the district is located, and the substantial
12-18 evidence rule applies.
12-19 Sec. 287.082. REIMBURSEMENT FOR SERVICES. (a) The board
12-20 shall require reimbursement from a county, municipality, or public
12-21 hospital located outside the boundaries of the district for the
12-22 district's care and treatment of a sick, diseased, or injured
12-23 person of that county, municipality, or public hospital as provided
12-24 by Chapter 61.
12-25 (b) The board shall require reimbursement from the sheriff
12-26 or police chief of a county or municipality for the district's care
12-27 and treatment of a person confined in a jail facility of the county
13-1 or municipality who is not a resident of the district.
13-2 (c) The board may contract with the state or federal
13-3 government for the state or federal government to reimburse the
13-4 district for treatment of a sick, diseased, or injured person.
13-5 Sec. 287.083. SERVICE CONTRACTS. The board may contract
13-6 with a municipality, county, special district, or other political
13-7 subdivision of the state or with a state or federal agency for the
13-8 district to:
13-9 (1) furnish a mobile emergency medical service; or
13-10 (2) provide for the investigatory or welfare needs of
13-11 inhabitants of the district.
13-12 Sec. 287.084. GIFTS AND ENDOWMENTS. On behalf of the
13-13 district, the board may accept gifts and endowments to be held in
13-14 trust for any purpose and under any direction, limitation, or
13-15 provision prescribed in writing by the donor that is consistent
13-16 with the proper management of the district.
13-17 Sec. 287.085. AUTHORITY TO SUE AND BE SUED. The board may
13-18 sue and be sued on behalf of the district.
13-19 (Sections 287.086-287.100 reserved for expansion
13-20 SUBCHAPTER E. DISSOLUTION OF DISTRICT
13-21 Sec. 287.101. DISSOLUTION. A district shall be dissolved if
13-22 the contract with the political subdivisions that created the
13-23 district expires and is not renewed.
13-24 Sec. 287.102. TRANSFER OF ASSETS AFTER DISSOLUTION. (a) If
13-25 the district is dissolved, the board shall:
13-26 (1) transfer the land, buildings, improvements,
13-27 equipment, and other assets acquired by the district to the county
14-1 or other governmental entity in which the property is located; or
14-2 (2) administer the property, assets, and debts in
14-3 accordance with Section 287.103.
14-4 (b) If the district transfers its land, buildings,
14-5 improvements, equipment, and other assets to a county or other
14-6 governmental entity, the county or entity assumes all debts and
14-7 obligations of the district related to the land, buildings,
14-8 improvements, equipment, or assets at the time of the transfer, and
14-9 the district is dissolved.
14-10 Sec. 287.103. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS
14-11 AFTER DISSOLUTION. (a) If the district does not transfer its
14-12 land, buildings, improvements, equipment, and other assets to a
14-13 county or another governmental entity in the district, the board
14-14 shall continue to control and administer the property, debts, and
14-15 assets of the district until all funds have been disposed of and
14-16 all district debts have been paid or settled.
14-17 (b) If, after administering the property and assets, the
14-18 board determines that the district's property and assets are
14-19 insufficient to pay the debts of the district, the district shall
14-20 transfer the remaining debts to the political subdivisions that
14-21 created the district in proportion to the funds contributed to the
14-22 district by that political subdivision.
14-23 (c) If, after administering the property and assets, the
14-24 board determines that unused funds remain, the board shall transfer
14-25 the unused funds to the political subdivisions that created the
14-26 district in proportion to the funds contributed to the district by
14-27 each political subdivision.
15-1 Sec. 287.104. ACCOUNTING. After the district has paid all
15-2 its debts and has disposed of all its assets and funds as
15-3 prescribed by Sections 287.102 and 287.103, the board shall provide
15-4 an accounting to each political subdivision that created and
15-5 contracted with the district. The accounting must show the manner
15-6 in which the assets and debts of the district were distributed.
15-7 (Sections 287.105-287.120 reserved for expansion
15-8 SUBCHAPTER F. DISTRICT FINANCES
15-9 Sec. 287.121. FISCAL YEAR. (a) The district operates on
15-10 the fiscal year established by the board.
15-11 (b) The fiscal year may not be changed if revenue bonds of
15-12 the district are outstanding or more than once in a 24-month
15-13 period.
15-14 Sec. 287.122. ANNUAL AUDIT. (a) The board annually shall
15-15 have an audit made of the financial condition of the district.
15-16 (b) A copy of the audit must be provided to each political
15-17 subdivision that created and contracted with the district.
15-18 Sec. 287.123. DISTRICT AUDIT AND RECORDS. The annual audit
15-19 and other district records are open to inspection during regular
15-20 business hours at the principal office of the district.
15-21 Sec. 287.124. ANNUAL BUDGET. (a) The administrator of the
15-22 district shall prepare a proposed annual budget for the district.
15-23 (b) The proposed budget must contain a complete financial
15-24 statement, including a statement of:
15-25 (1) the outstanding obligations of the district;
15-26 (2) the amount of cash on hand to the credit of each
15-27 fund of the district;
16-1 (3) the amount of money received by the district from
16-2 all sources during the previous year;
16-3 (4) the amount of money available to the district from
16-4 all sources during the ensuing year;
16-5 (5) the amount of the balances expected at the end of
16-6 the year in which the budget is being prepared; and
16-7 (6) the estimated amount of revenues and balances
16-8 available to cover the proposed budget.
16-9 Sec. 287.125. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
16-10 board shall hold a public hearing on the proposed annual budget.
16-11 (b) The board shall publish notice of the hearing in a
16-12 newspaper of general circulation in the district not later than the
16-13 10th day before the date of the hearing.
16-14 (c) Any resident of the district is entitled to be present
16-15 and participate at the hearing.
16-16 (d) At the conclusion of the hearing, the board shall adopt
16-17 a budget by acting on the budget proposed by the administrator.
16-18 The board may make any changes in the proposed budget that in its
16-19 judgment the interests of the residents of the district demand.
16-20 (e) The budget is effective only after adoption by the
16-21 board.
16-22 Sec. 287.126. AMENDING BUDGET. After adoption, the annual
16-23 budget may be amended on the board's approval.
16-24 Sec. 287.127. LIMITATION OF EXPENDITURES. Money may not be
16-25 spent for an expense not included in the annual budget or an
16-26 amendment to it.
16-27 Sec. 287.128. SWORN STATEMENT. As soon as practicable after
17-1 the close of the fiscal year, the administrator shall prepare for
17-2 the board a sworn statement of the amount of money that belongs to
17-3 the district and an account of the disbursements of that money.
17-4 Sec. 287.129. SPENDING AND INVESTMENT LIMITATIONS. (a)
17-5 Except for construction contracts under Section 287.077(a) or as
17-6 provided by Sections 287.142 and 287.143, the district may not
17-7 incur a debt payable from revenues of the district other than the
17-8 revenues on hand or to be on hand in the current and immediately
17-9 following fiscal year of the district.
17-10 (b) The board may invest operating, depreciation, or
17-11 building reserves only in funds or securities specified by Article
17-12 836 or 837, Revised Statutes.
17-13 Sec. 287.130. DEPOSITORY. (a) The board shall name at
17-14 least one bank to serve as depository for district funds.
17-15 (b) District funds, other than those invested as provided by
17-16 Section 287.129(b) and those transmitted to a bank of payment for
17-17 bonds or obligations issued or assumed by the district, shall be
17-18 deposited as received with the depository bank and must remain on
17-19 deposit. This subsection does not limit the power of the board to
17-20 place a portion of district funds on time deposit or to purchase
17-21 certificates of deposit.
17-22 (c) Before the district deposits funds in a bank in an
17-23 amount that exceeds the maximum amount secured by the Federal
17-24 Deposit Insurance Corporation, the bank must execute a bond or
17-25 other security in an amount sufficient to secure from loss the
17-26 district funds that exceed the amount secured by the Federal
17-27 Deposit Insurance Corporation.
18-1 Sec. 287.131. AD VALOREM TAXATION. A district may not
18-2 impose an ad valorem tax.
18-3 (Sections 287.132-287.140 reserved for expansion
18-4 SUBCHAPTER G. BONDS
18-5 Sec. 287.141. GENERAL OBLIGATION BONDS. A district may not
18-6 issue general obligation bonds.
18-7 Sec. 287.142. REVENUE BONDS. (a) The board may issue
18-8 revenue bonds to:
18-9 (1) purchase, construct, acquire, repair, equip, or
18-10 renovate buildings or improvements for district purposes;
18-11 (2) acquire sites to be used for district purposes; or
18-12 (3) acquire and operate a mobile emergency medical
18-13 service to assist the district in carrying out its purposes.
18-14 (b) The bonds must be payable from and secured by a pledge
18-15 of all or part of the revenues derived from the operation of the
18-16 district's hospital system. The bonds may be additionally secured
18-17 by a mortgage or deed of trust lien on all or part of district
18-18 property.
18-19 (c) The bonds must be issued in the manner provided by
18-20 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049
18-21 for issuance of revenue bonds by county hospital authorities.
18-22 Sec. 287.143. REFUNDING BONDS. (a) Refunding bonds of the
18-23 district may be issued to refund an outstanding indebtedness the
18-24 district has issued or assumed.
18-25 (b) The bonds must be issued in the manner provided by
18-26 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
18-27 (Article 717k-3, Vernon's Texas Civil Statutes).
19-1 (c) The refunding bonds may be sold and the proceeds applied
19-2 to the payment of outstanding indebtedness or may be exchanged in
19-3 whole or in part for not less than a similar principal amount of
19-4 outstanding indebtedness. If the refunding bonds are to be sold
19-5 and the proceeds applied to the payment of outstanding
19-6 indebtedness, the refunding bonds must be issued and payments made
19-7 in the manner provided by Chapter 503, Acts of the 54th
19-8 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
19-9 Civil Statutes).
19-10 Sec. 287.144. INTEREST AND MATURITY. District bonds must
19-11 mature not later than the 50th anniversary of the date of their
19-12 issuance and must bear interest at a rate not to exceed that
19-13 provided by Chapter 3, Acts of the 61st Legislature, Regular
19-14 Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes).
19-15 Sec. 287.145. EXECUTION OF BONDS. The president of the
19-16 board shall execute the bonds in the name of the district, and the
19-17 secretary of the board shall countersign the bonds in the manner
19-18 provided by the Texas Uniform Facsimile Signature of Public
19-19 Officials Act (Article 717j-1, Vernon's Texas Civil Statutes).
19-20 Sec. 287.146. APPROVAL AND REGISTRATION OF BONDS. (a)
19-21 District bonds are subject to the same requirements with regard to
19-22 approval by the attorney general and registration by the
19-23 comptroller as the law provides for approval and registration of
19-24 bonds issued by counties.
19-25 (b) On approval by the attorney general and registration by
19-26 the comptroller, the bonds are incontestable for any cause.
19-27 Sec. 287.147. BONDS AS INVESTMENTS. District bonds and
20-1 indebtedness assumed by the district are legal and authorized
20-2 investments for:
20-3 (1) banks;
20-4 (2) savings banks;
20-5 (3) trust companies;
20-6 (4) savings and loan associations;
20-7 (5) insurance companies;
20-8 (6) fiduciaries;
20-9 (7) trustees;
20-10 (8) guardians; and
20-11 (9) sinking funds of municipalities, counties, school
20-12 districts, and other political subdivisions of the state and other
20-13 public funds of the state and its agencies, including the permanent
20-14 school fund.
20-15 Sec. 287.148. BONDS AS SECURITY FOR DEPOSITS. District
20-16 bonds are eligible to secure deposits of public funds of the state
20-17 and of municipalities, counties, school districts, and other
20-18 political subdivisions of the state. The bonds are lawful and
20-19 sufficient security for deposits to the extent of their value if
20-20 accompanied by all unmatured coupons.
20-21 Sec. 287.149. TAX STATUS OF BONDS. Because the district
20-22 created under this chapter is a public entity performing an
20-23 essential public function, bonds issued by the district, any
20-24 transaction relating to the bonds, and profits made in the sale of
20-25 the bonds are free from taxation by the state or by any
20-26 municipality, county, special district, or other political
20-27 subdivision of the state.
21-1 SECTION 2. This Act takes effect September 1, 1999.
21-2 SECTION 3. The importance of this legislation and the
21-3 crowded condition of the calendars in both houses create an
21-4 emergency and an imperative public necessity that the
21-5 constitutional rule requiring bills to be read on three several
21-6 days in each house be suspended, and this rule is hereby suspended.