By Chisum H.B. No. 3595
76R8991 MXM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Castro County, Hansford County, and Ochiltree
1-3 County hospital districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2, Chapter 103, Acts of the 57th
1-6 Legislature, Regular Session, 1961, is amended to read as follows:
1-7 Sec. 2. Each of the counties to which this Act applies may
1-8 be constituted a hospital district as hereinafter set out, and may
1-9 take over the hospital or hospital system, either owned separately
1-10 by a county or jointly with a city within such county, or may
1-11 provide for the establishment of a hospital or hospital system to
1-12 furnish medical and hospital care to needy persons residing in said
1-13 hospital district; provided, however, that such hospital district
1-14 shall not be created unless and until an election is duly held in
1-15 such county for such purpose, which said election may be initiated
1-16 by the Commissioners Court of each of such counties upon its own
1-17 motion or upon a petition of one hundred (100) resident [qualified
1-18 property taxpaying] electors, to be held not less than thirty (30)
1-19 days from the time said election is ordered by the Commissioners
1-20 Court. At said election there shall be submitted to the [qualified
1-21 property taxpaying] electors the proposition of whether or not a
1-22 hospital district shall be created in the county; and a majority of
1-23 the [qualified property taxpaying] electors participating in said
1-24 election voting in favor of the proposition shall be necessary.
2-1 The ballots shall have printed thereon:
2-2 "FOR the creation of a hospital district; providing for the
2-3 levy of a tax not to exceed Seventy-five Cents (75 ) on the One
2-4 Hundred Dollars ($100.00) valuation"; and
2-5 "AGAINST the creation of a hospital district; providing for
2-6 the levy of a tax not to exceed Seventy-five Cents (75 ) on the One
2-7 Hundred Dollars ($100.00) valuation."
2-8 If such county or city located therein, either or both of
2-9 them, has any outstanding bonds theretofore issued for hospital
2-10 purposes (which by the provisions of Section 7 of this Act are
2-11 required to be assumed by the hospital district), then the ballots
2-12 for such election shall, instead of the foregoing, have printed
2-13 thereon:
2-14 "FOR the creation of a hospital district; providing for the
2-15 levy of a tax not to exceed Seventy-five Cents (75 ) on the One
2-16 Hundred Dollars ($100.00) valuation; and providing for the
2-17 assumption by such district of all outstanding bonds heretofore
2-18 issued by ____________ County, and by any city in said county for
2-19 hospital purposes"; and
2-20 "AGAINST the creation of a hospital district; providing for
2-21 the levy of a tax not to exceed Seventy-five Cents (75 ) on the One
2-22 Hundred Dollars ($100.00) valuation; and providing for the
2-23 assumption by such district of all outstanding bonds heretofore
2-24 issued by ___________ County, and by any city in said county for
2-25 hospital purposes."
2-26 SECTION 2. Section 3, Chapter 103, Acts of the 57th
2-27 Legislature, Regular Session, 1961, is amended to read as follows:
3-1 Sec. 3. (a) Within ten (10) days after such election is
3-2 held the Commissioners Court in such county shall convene and
3-3 canvass the returns of the election, and if a majority of the
3-4 [qualified property taxpaying] electors voting at said election
3-5 voted in favor of the proposition, the court shall so find and
3-6 declare the hospital district established and created and appoint
3-7 five (5) persons as directors of the hospital district to serve
3-8 until the first Saturday in April following the creation and
3-9 establishment of the district at which time five (5) directors
3-10 shall be elected. The three (3) directors receiving the highest
3-11 vote at such first election shall serve for two (2) years, the
3-12 other two (2) directors shall serve for one (1) year. Thereafter,
3-13 all directors shall serve for a period of two (2) years and until
3-14 their successor has been duly elected or appointed and qualified.
3-15 (b) A person may not [No person shall] be appointed or
3-16 elected as a member of the board of directors of said hospital
3-17 district unless the person [he] is a resident thereof [and owns
3-18 land subject to taxation therein] and, [unless] at the time of such
3-19 election or appointment, the person is [he shall be] more than
3-20 twenty-one (21) years of age. A person may not be elected or
3-21 appointed as a member of the board of directors of the Castro
3-22 County Hospital District unless the person is a resident of the
3-23 district and is at the time of election or appointment at least 21
3-24 years of age. An employee or a medical staff member of the
3-25 Ochiltree County or Castro County Hospital District may not serve
3-26 as a director of the respective [that] district.
3-27 (c) Each member of the board of directors shall qualify by
4-1 executing the constitutional oath of office and shall execute a
4-2 good and sufficient bond for One Thousand Dollars ($1,000) payable
4-3 to said district conditioned upon the faithful performance of the
4-4 member's [his] duties, and such oaths and bonds shall be deposited
4-5 with the depository bank of the district for safekeeping. The
4-6 Ochiltree County or Castro County Hospital District may purchase
4-7 directors' bonds with district funds.
4-8 (d) The board of directors of the Hansford County and
4-9 Ochiltree County Hospital District shall organize by electing one
4-10 (1) of their number as president and one (1) of their number as
4-11 secretary. The board of directors of the Castro County Hospital
4-12 District shall organize by electing from the membership of the
4-13 board one member to serve as president, one member to serve as vice
4-14 president, and one member to serve as secretary. Any three (3)
4-15 members of the board of directors shall constitute a quorum and a
4-16 concurrence of three (3) shall be sufficient in all matters
4-17 pertaining to the business of the district. All vacancies in the
4-18 office of director shall be filled for the unexpired term by
4-19 appointment of the remainder of the board of directors. In the
4-20 event the number of directors shall be reduced to less than three
4-21 (3) for any reason, the remaining directors shall immediately call
4-22 a special election to fill said vacancies, and upon failure to do
4-23 so a district court may, upon application of any voter or taxpayer
4-24 of the district, issue a mandate requiring that such election be
4-25 ordered by the remaining directors.
4-26 (e) A regular election of directors shall be held on the
4-27 first Saturday in May of each year and notice of such election
5-1 shall be published in a newspaper of general circulation in the
5-2 county one (1) time not earlier than the 30th day or later than the
5-3 10th day before [at least ten (10) days prior to] the date of the
5-4 election. A person who wishes to have the person's name printed on
5-5 the ballot as a candidate for director of the Castro County
5-6 Hospital District must file an application with the secretary of
5-7 the board of the Castro County Hospital District not later than the
5-8 45th day before the date of the election. A person who wishes to
5-9 have the person's [Any person desiring his] name [to be] printed on
5-10 the ballot as a candidate for director of the Ochiltree County
5-11 Hospital District shall file a petition, signed by not less than
5-12 twenty-five (25) qualified voters asking that such name be printed
5-13 on the ballot, with the secretary of the board of directors of the
5-14 district not later than the 25th day before [at least twenty-five
5-15 (25) days prior to] the date of the election.
5-16 SECTION 3. Section 3A(a), Chapter 103, Acts of the 57th
5-17 Legislature, Regular Session, 1961, is amended to read as follows:
5-18 (a) This section applies only to the Ochiltree County and
5-19 Castro County hospital districts [Hospital District].
5-20 SECTION 4. Section 4, Chapter 103, Acts of the 57th
5-21 Legislature, Regular Session, 1961, is amended to read as follows:
5-22 Sec. 4. The management and control of each hospital district
5-23 created pursuant to the provisions of this Act is hereby vested in
5-24 the board of directors of the district who shall serve without
5-25 compensation but may be reimbursed for actual expenses incurred in
5-26 the performance of their official duties upon the approval of such
5-27 expenses by the entire board of directors. The board of directors
6-1 of the Ochiltree County or Castro County Hospital District may
6-2 defend or indemnify an officer, director, board appointee, medical
6-3 staff member, or employee of the district against or for liability,
6-4 claims, or expenses that arise from the performance of a duty in
6-5 the person's respective capacity as an officer, director, board
6-6 appointee, medical staff member, or employee of the district. The
6-7 board of directors may purchase liability insurance coverage or
6-8 establish a self-insurance program to fund indemnification under
6-9 this section.
6-10 SECTION 5. Section 5, Chapter 103, Acts of the 57th
6-11 Legislature, Regular Session, 1961, is amended to read as follows:
6-12 Sec. 5. (a) Upon the creation of such hospital district,
6-13 the board of directors of the Ochiltree County or Hansford County
6-14 Hospital District shall have the power and authority and it shall
6-15 be their duty to levy on all property subject to hospital district
6-16 taxation for the benefit of the district at the same time taxes are
6-17 levied for county purposes, using the county values and the county
6-18 tax roll, a tax of not to exceed Seventy-five Cents (75 ) on the
6-19 One Hundred Dollars ($100.00) valuation of all taxable property
6-20 within the hospital district, for the purpose of:
6-21 (1) paying the interest on and creating a sinking fund
6-22 for bonds which may have been assumed or which may be issued by the
6-23 hospital district for hospital purposes as herein provided;
6-24 (2) providing for the operation and maintenance of the
6-25 hospital or hospital system; and
6-26 (3) [for the purpose of] making further improvements
6-27 and additions to the hospital system, and for the acquisition of
7-1 necessary sites therefor, by purchase, lease or condemnation.
7-2 (b) Not later than October 1 of each year, the board of
7-3 directors of the Ochiltree County or Hansford County Hospital
7-4 District shall levy the tax on all taxable property within the
7-5 district which is subject to taxation and shall immediately certify
7-6 such tax rate to the tax assessor and collector of the county in
7-7 which the district is located. The tax so levied shall be
7-8 collected on all property subject to hospital district taxation by
7-9 the assessor and collector of taxes for the county on the county
7-10 tax values, and in the same manner and under the same conditions as
7-11 county taxes. The assessor and collector of taxes shall charge and
7-12 deduct from payments to the hospital district the fees for
7-13 assessing and collecting the tax at the rate of not exceeding one
7-14 (1%) per cent of the amounts collected as may be determined by the
7-15 board of directors but in no event in excess of Five Thousand
7-16 Dollars ($5,000.00) for any one (1) fiscal year. Such fees shall
7-17 be deposited in the county's general fund, and shall be reported as
7-18 fees of office of the tax assessor and collector. Interest and
7-19 penalties on taxes paid to the hospital district shall be the same
7-20 as in the case of county taxes. Discounts shall be the same as for
7-21 county taxes. The residue of tax collections, after deduction of
7-22 discounts and fees for assessing and collecting, shall be deposited
7-23 in the district depository; and such funds shall be withdrawn only
7-24 as provided herein. All other income of the hospital district
7-25 shall be deposited in like manner with the district depository.
7-26 (c) The board of directors of the Ochiltree County or
7-27 Hansford County Hospital District shall have the authority to levy
8-1 the tax aforesaid for the entire year in which the said hospital
8-2 district is established, for the purpose of securing funds to
8-3 initiate the operation of the hospital district, and to pay assumed
8-4 bonds.
8-5 SECTION 6. Chapter 103, Acts of the 57th Legislature,
8-6 Regular Session, 1961, is amended by adding Section 5A to read as
8-7 follows:
8-8 Sec. 5A. (a) This section applies only to the Castro County
8-9 Hospital District.
8-10 (b) The board of directors annually may impose property
8-11 taxes in an amount not to exceed the limit approved by the voters
8-12 at the election authorizing the levy of taxes.
8-13 (c) The tax rate for all purposes may not exceed 75 cents on
8-14 each $100 valuation of all taxable property in the district.
8-15 (d) The taxes may be used to pay:
8-16 (1) the indebtedness issued or assumed by the
8-17 district; or
8-18 (2) the maintenance and operating expenses of the
8-19 district.
8-20 (e) The district may not impose taxes to pay the principal
8-21 of or interest on revenue bonds issued by the district.
8-22 (f) The Tax Code governs the appraisal, assessment, and
8-23 collection of district taxes.
8-24 (g) The board of directors may provide for the appointment
8-25 of a tax assessor-collector for the district or may contract for
8-26 the assessment and collection of taxes as provided by the Tax Code.
8-27 SECTION 7. Section 6, Chapter 103, Acts of the 57th
9-1 Legislature, Regular Session, 1961, is amended to read as follows:
9-2 Sec. 6. (a) The board of directors shall have the power and
9-3 authority to issue and sell as the obligations of such hospital
9-4 district, and in the name and upon the faith and credit of such
9-5 hospital district, general obligation bonds for the purchase,
9-6 construction, acquisition, repair or renovation of buildings and
9-7 improvements and equipping the same for hospital purposes and for
9-8 any or all of such purposes.
9-9 (b) At the time of issuance of any general obligation
9-10 bond,[; provided, that] a sufficient tax shall be levied to create
9-11 an interest and sinking fund to pay the interest and principal as
9-12 same matures provided said tax together with any other taxes levied
9-13 for said district shall not exceed Seventy-five Cents (75 ) on each
9-14 $100 valuation of taxable property in any one year. Taxes levied
9-15 by the Castro County Hospital District may not exceed the limit
9-16 approved by the voters at the election authorizing the levy of
9-17 taxes. The Ochiltree County Hospital District may also issue and
9-18 sell bonds for health care purposes subject to the requirements of
9-19 this section.
9-20 (c) General obligation [Such] bonds shall be executed in the
9-21 name of the hospital district and on its behalf by the president of
9-22 the board of directors, and countersigned by the secretary of the
9-23 board of directors, and shall be subject to the same requirements
9-24 in the matter of approval thereof by the Attorney General of the
9-25 State of Texas and the registration thereof by the Comptroller of
9-26 Public Accounts of the State of Texas as are by law provided for
9-27 such approval and registration of bonds of such county. Upon the
10-1 approval of such bonds by the Attorney General of Texas the same
10-2 shall be incontestable for any cause.
10-3 (d) Except as provided by Section 6A, no bonds shall be
10-4 issued by such hospital district (except refunding bonds) until
10-5 authorized by a majority vote of the [legally qualified property
10-6 taxpaying] electors[,] residing in such hospital district, voting
10-7 at an election called and held for such purpose. Such election may
10-8 be called by the board of directors of its own motion, shall
10-9 specify the place or places where the election shall be held, the
10-10 presiding officers thereof, the purpose for which the bonds are to
10-11 be issued, the amount thereof, maximum interest rate (not to exceed
10-12 six (6%) per cent per annum) and the maximum maturity date of such
10-13 bonds (not to exceed forty (40) years from their date of issuance).
10-14 Notice of election shall be given by publishing a substantial copy
10-15 of the order calling the election in a newspaper of general
10-16 circulation in such county once a week for two (2) consecutive
10-17 weeks prior to the date of election, the date of the first
10-18 publication being at least fourteen (14) full days prior to the
10-19 date set for the election. The costs of such election shall be
10-20 paid by the hospital district.
10-21 (e) The [In the manner hereinabove provided, the] bonds of
10-22 such hospital district may, without the necessity of any election
10-23 therefor, be issued for the purpose of refunding and paying off any
10-24 bonded indebtedness theretofore assumed by such hospital district
10-25 and any bonds therefore issued by such hospital district.
10-26 Refunding bonds issued by the Castro County Hospital District must
10-27 be issued in the manner provided by Chapter 784, Acts of the 61st
11-1 Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas
11-2 Civil Statutes). The[; such] refunding bonds may be sold and the
11-3 proceeds thereof applied to the payment of any such outstanding
11-4 bonds or may be exchanged in whole or in part for not less than a
11-5 like amount of said outstanding bonds and interest matured thereon,
11-6 but unpaid; provided the average interest cost per annum on the
11-7 refunding bonds, computed in accordance with recognized standard
11-8 bond interest cost tables, shall not exceed the average interest
11-9 cost per annum so computed, upon the bonds to be discharged out of
11-10 the proceeds of the refunding bonds, unless the total interest cost
11-11 on the refunding bonds, computed to their respective maturity
11-12 dates, is less than the total interest cost so computed on the
11-13 bonds to be discharged out of such proceeds. In the foregoing
11-14 computations, any premium or premiums required to be paid upon the
11-15 bonds to be refunded as a condition to payment in advance of their
11-16 stated maturity dates shall be taken into account as an addition to
11-17 the net interest cost to the hospital district of the refunding
11-18 bonds.
11-19 (f) If the county in which the district is located or any
11-20 city within such county has voted bonds to provide hospital
11-21 facilities,[;] but such bonds have not been sold and delivered at
11-22 the date of the creation of the hospital district, the authority
11-23 for such bonds shall be canceled and they shall not be sold.
11-24 SECTION 8. Section 6A, Chapter 103, Acts of the 57th
11-25 Legislature, Regular Session, 1961, is amended by amending
11-26 Subsection (a) and by adding Subsection (d) to read as follows:
11-27 (a) In selling and reissuing bonds, and in making payments
12-1 of outstanding indebtedness, the Ochiltree County and Castro County
12-2 hospital districts [Hospital District] shall comply with Chapter
12-3 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
12-4 717k, Vernon's Texas Civil Statutes), and Chapter 784, Acts of the
12-5 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's
12-6 Texas Civil Statutes). The interest rate for district bonds may
12-7 not exceed the maximum rate allowed under Chapter 3, Acts of the
12-8 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
12-9 Texas Civil Statutes).
12-10 (d) The board of directors of the Castro County Hospital
12-11 District may issue revenue bonds in the name and on the faith and
12-12 credit of the district to purchase, construct, repair, renovate, or
12-13 acquire buildings or improvements, equip buildings and improvements
12-14 for hospital purposes, and acquire real property for hospital
12-15 purposes. The revenue bonds issued under this subsection must be
12-16 payable from and secured by a pledge of all or part of the Castro
12-17 County Hospital District's revenues from operations of the hospital
12-18 system. The bonds may also be secured by a mortgage or deed of
12-19 trust on all or part of the district's property. The revenue bonds
12-20 must be issued in the manner provided by Sections 264.042, 264.043,
12-21 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for
12-22 the issuance of revenue bonds by county hospital authorities.
12-23 SECTION 9. Section 6B, Chapter 103, Acts of the 57th
12-24 Legislature, Regular Session, 1961, is amended to read as follows:
12-25 Sec. 6B. The board of directors of the Ochiltree County or
12-26 Castro County Hospital District may borrow money for district
12-27 purposes on the credit of the district or secured by revenues of
13-1 the district.
13-2 SECTION 10. Section 7, Chapter 103, Acts of the 57th
13-3 Legislature, Regular Session, 1961, is amended to read as follows:
13-4 Sec. 7. (a) Any lands, buildings or equipment that may be
13-5 jointly or separately owned by the county and city within the
13-6 boundaries of the district and by which medical services or
13-7 hospital care, including geriatric care, are furnished to needy
13-8 persons of the city and county, shall become the property of the
13-9 hospital district; and title thereto shall vest in the hospital;
13-10 and any funds of such city and county, or either, which are the
13-11 proceeds of any bonds assumed by the hospital district, as hereby
13-12 provided, shall become the funds of the hospital district; and
13-13 title thereto shall vest in the hospital district; and there shall
13-14 vest in the hospital district and become the funds of the hospital
13-15 district the unspent portions of any funds theretofore set up or
13-16 appropriated by budget or otherwise by such city or the county, or
13-17 either of them, for the support and maintenance of the hospital
13-18 facilities for the year within which the hospital district comes
13-19 into existence, thereby providing such hospital district with funds
13-20 with which to maintain and operate such facilities for the
13-21 remainder of such year. All obligations under contract legally
13-22 incurred by such city or county, or either of them, for the
13-23 building of, or the support and maintenance of, hospital
13-24 facilities, prior to the creation of the said district but
13-25 outstanding at the time of the creation of the district, shall be
13-26 assumed and discharged by the hospital district without prejudice
13-27 to the rights of third parties, provided that the management and
14-1 control of the property and affairs of the present hospital system
14-2 shall continue in the board of managers of such system until
14-3 appointment and organization of the board of directors of the
14-4 hospital district, at which time the board of managers of the
14-5 present hospital system or systems shall turn over all records,
14-6 property and affairs of said hospital system to the board of
14-7 directors of the hospital district and shall cease to exist.
14-8 (b) Any outstanding bonded indebtedness incurred by such
14-9 city or county, either or both of them, in the acquisition of such
14-10 lands, buildings and equipment, or in the construction and
14-11 equipping of such hospital facilities, together with any other
14-12 outstanding bonds issued by either of them for hospital purposes,
14-13 and the proceeds of which are in whole or in part still unspent,
14-14 shall be assumed by the hospital district and become the obligation
14-15 of the hospital district; and the city or county, either or both of
14-16 them, that issued such bonds, shall be by the hospital district
14-17 relieved of any further liability for the payment thereof, or for
14-18 providing interest and sinking fund requirements thereon; provided
14-19 that nothing herein contained shall limit or affect any of the
14-20 rights of any of the holders of such bonds against the city or the
14-21 county, as the case may be, in the event of default in the payment
14-22 of the principal or interest on any of such bonds in accordance
14-23 with their respective terms.
14-24 (c) The Commissioners Court and the city, where a hospital
14-25 or hospital system is jointly operated, or the Commissioners Court,
14-26 where the county owns the hospital or hospital system, as the case
14-27 may be, as soon as the hospital district is created and authorized
15-1 at the election hereinabove provided, and there have been appointed
15-2 and qualified the board of hospital managers as hereinbefore
15-3 provided, shall execute and deliver to the hospital district,
15-4 to-wit: to its said board of directors, an instrument in writing
15-5 conveying to said hospital district the hospital property,
15-6 including lands, buildings and equipment; and shall transfer to
15-7 said hospital district the funds hereinabove provided to become
15-8 vested in the hospital district, upon being furnished the
15-9 certificate of the chairman of the board to the fact that a
15-10 depository for the district's funds has been selected and has
15-11 qualified; which funds shall, in the hands of the hospital district
15-12 and of its board of directors be used for all or any of the same
15-13 purposes as, and for no other purposes than, the purposes for which
15-14 the county or the city transferring such funds could lawfully have
15-15 used the same had they remained the property and funds of such
15-16 county or city.
15-17 SECTION 11. Sections 8(b), (c), and (d), Chapter 103, Acts
15-18 of the 57th Legislature, Regular Session, 1961, are amended to read
15-19 as follows:
15-20 (b) The board of directors of the Ochiltree County or Castro
15-21 County Hospital District may appoint a qualified person as
15-22 administrator of the district. The administrator serves at the
15-23 will of the board of directors and receives compensation as
15-24 determined by the board of directors. The administrator shall
15-25 supervise the work and activities of the district and direct the
15-26 general affairs of the district subject to the limitations
15-27 prescribed by the board of directors.
16-1 (c) The board of directors of the Ochiltree County or Castro
16-2 County Hospital District may employ technicians, nurses, fiscal
16-3 agents, accountants, and other necessary employees. The board of
16-4 directors may delegate to the administrator the authority to employ
16-5 these persons for the district.
16-6 (d) The board of directors of the Ochiltree County or Castro
16-7 County Hospital District may appoint doctors to the medical staff
16-8 or remove doctors from the medical staff as necessary for the
16-9 efficient operation of the district. This authority includes the
16-10 authority to make temporary appointments. The board of directors
16-11 may adopt policies relating to the appointment and removal of
16-12 medical staff members.
16-13 SECTION 12. Section 8A, Chapter 103, Acts of the 57th
16-14 Legislature, Regular Session, 1961, is amended by adding
16-15 Subsections (f) through (l) to read as follows:
16-16 (f) The district, subject to the approval of the board of
16-17 directors, may provide primary care, emergency services,
16-18 preventative medical services, and other health-related services
16-19 outside the district, provided that the services serve the purpose
16-20 of the district as established by this Act.
16-21 (g) The board of directors may contract with a political
16-22 subdivision or governmental agency to provide investigatory or
16-23 other services related to facilities for the medical care,
16-24 hospital, or welfare needs of the inhabitants of the district and
16-25 may contract with a hospital, hospital authority, hospital
16-26 district, emergency services district, county, municipality, or
16-27 other political subdivision of this state that is located outside
17-1 its boundaries to be reimbursed for the care and treatment of the
17-2 sick, diseased, or injured persons of that entity. The board of
17-3 directors may also contract with the state or agencies of the
17-4 federal government to be reimbursed for the treatment of sick,
17-5 diseased, or injured persons.
17-6 (h) The district may contract with, affiliate with, or enter
17-7 into another arrangement with a managed care system, a preferred
17-8 provider organization, a health maintenance organization, another
17-9 provider of alternative health care or delivery system, or a
17-10 private hospital to jointly administer or deliver health care
17-11 services. The district may spend district funds to establish and
17-12 maintain partnerships, corporations, or other entities involved in
17-13 the delivery of health care services.
17-14 (i) The district may sponsor and create a non-profit
17-15 corporation under the Texas Non-Profit Corporation Act (Article
17-16 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
17-17 contribute funds to or solicit funds for the corporation. The
17-18 corporation may use funds, other than funds paid by the corporation
17-19 to the district, only to provide health care or other services the
17-20 district may provide under this Act. The board of directors of the
17-21 hospital district shall establish adequate controls to ensure that
17-22 the corporation uses its funds as required by this subsection. The
17-23 corporation may invest corporation funds in any manner in which the
17-24 district may invest funds, including investing funds as authorized
17-25 by Chapter 2256, Government Code.
17-26 (j) The board of directors may spend district funds, enter
17-27 into agreements, and take other necessary action to recruit
18-1 physicians and other persons to serve as medical staff members or
18-2 employees of the district, including:
18-3 (1) advertising and marketing;
18-4 (2) paying travel, recruitment, and relocation
18-5 expenses;
18-6 (3) providing a loan or scholarship to a physician or
18-7 a person currently enrolled in health care education courses at an
18-8 institution of higher education who contractually agrees to become
18-9 a district employee or medical staff member; and
18-10 (4) providing office space without the payment of rent
18-11 for the space or otherwise subsidizing office space or other
18-12 facilities for a health care professional, including a physician.
18-13 (k) The board of directors may spend district funds, enter
18-14 into agreements, and take other necessary action to conduct,
18-15 participate in, or otherwise assist in providing health care
18-16 educational programs for current or prospective medical staff
18-17 members or employees of the district.
18-18 (l) The board of directors may provide retirement benefits
18-19 for employees of the district by:
18-20 (1) establishing or administering a retirement
18-21 program; or
18-22 (2) participating in the Texas County and District
18-23 Retirement System or in any other statewide retirement system in
18-24 which the district is eligible to participate.
18-25 SECTION 13. Section 9, Chapter 103, Acts of the 57th
18-26 Legislature, Regular Session, 1961, is amended to read as follows:
18-27 Sec. 9. (a) The fiscal year of the Ochiltree County
19-1 Hospital District authorized to be established by the provisions
19-2 hereof shall commence on October 1 of each year and end on the 30th
19-3 day of September of the following year. The Castro County Hospital
19-4 District shall operate on the fiscal year established by the board
19-5 of directors of that district. The district directors shall cause
19-6 an annual independent audit to be made of the books and records of
19-7 the district, such audit to be made covering such fiscal year, and
19-8 the same shall be filed with the Comptroller of Public Accounts of
19-9 the State of Texas and at the office of the district not later than
19-10 December 31st of each year.
19-11 (b) The board of directors shall each year cause a budget to
19-12 be prepared showing the proposed expenditures and disbursements and
19-13 the estimated receipts and collections for the following fiscal
19-14 year and shall hold a public hearing on the proposed budget after
19-15 publication of a notice of hearing in a newspaper of general
19-16 circulation in the county at least once not less than ten (10) days
19-17 prior to the date set for the hearing. Any person who is a
19-18 taxpayer of the district shall have the right to appear at the time
19-19 and place designated in the notice and be heard with reference to
19-20 any item shown in the proposed budget. The proposed budget shall
19-21 also show the amount of taxes required to be levied and collected
19-22 during such fiscal year and upon final approval of the budget, the
19-23 board of directors shall levy such tax as may be required and
19-24 certify the tax rate for such year to the county tax assessor and
19-25 collector as provided in Section 5 hereof, and it shall be the duty
19-26 of the said tax assessor and collector to assess and collect such
19-27 tax.
20-1 SECTION 14. Section 14, Chapter 103, Acts of the 57th
20-2 Legislature, Regular Session, 1961, is amended to read as follows:
20-3 Sec. 14. Whenever a patient has been admitted to the
20-4 facilities of the hospital district from the county in which the
20-5 district is situated, the directors shall cause inquiry to be made
20-6 as to the patient's [his] circumstances, and of the relatives of
20-7 such patient legally liable for the patient's [his] support. If
20-8 the patient [he] finds that such patient or said relatives are
20-9 liable to pay for the patient's [his] care and treatment in whole
20-10 or in part, an order shall be made directing such patient, or said
20-11 relatives, to pay to the treasurer of the hospital district for the
20-12 support of such patient a specified sum per week, in proportion to
20-13 their financial ability, but such sum shall not exceed the actual
20-14 per capita cost of maintenance. The district shall have power and
20-15 authority to collect such sum from the estate of the patient, or
20-16 the patient's [his] relatives legally liable for the patient's
20-17 [his] support, in the manner provided by law for the collection of
20-18 expenses of the last illness of a deceased person. If the agent
20-19 designated by the district to handle such affairs finds that such
20-20 patient or said relatives are not able to pay, either in whole or
20-21 in part, for the patient's [his] care and treatment in such
20-22 hospital, the same shall become a charge upon the hospital
20-23 district. Should there be a dispute as to the ability to pay, or
20-24 doubt in the mind of the person designated as aforesaid, the
20-25 district's directors shall hear and determine same, after calling
20-26 witnesses, and shall make such order as may be proper, from which
20-27 appeal shall lie to the district court by either party to the
21-1 dispute.
21-2 SECTION 15. Section 14A, Chapter 103, Acts of the 57th
21-3 Legislature, Regular Session, 1961, is amended to read as follows:
21-4 Sec. 14A. (a) This section applies only to the Ochiltree
21-5 County and Castro County hospital districts.
21-6 (b) The board of directors of the district [Ochiltree County
21-7 Hospital District] shall seek reimbursement, in the manner provided
21-8 by Chapter 61, Health and Safety Code, from a county, municipality,
21-9 or public hospital located outside the boundaries of the district
21-10 for the district's care for or treatment of a sick, diseased, or
21-11 injured person for whom that county, municipality, or public
21-12 hospital has an obligation to provide care. The board of directors
21-13 shall seek reimbursement under Article 104.002, Code of Criminal
21-14 Procedure, for the district's care for or treatment of a person who
21-15 is not a resident of the district and who is confined in a county
21-16 jail facility.
21-17 SECTION 16. Chapter 103, Acts of the 57th Legislature,
21-18 Regular Session, 1961, is amended by adding Sections 16A and 21 to
21-19 read as follows:
21-20 Sec. 16A. (a) This section applies only to the Castro
21-21 County Hospital District.
21-22 (b) The board of directors may borrow money at a rate not to
21-23 exceed the maximum annual percentage rate allowed by law for
21-24 district obligations at the time of the loan.
21-25 (c) To secure a loan, the board may pledge:
21-26 (1) the revenues of the district that are not pledged
21-27 to pay bonded indebtedness of the district;
22-1 (2) taxes to be levied by the district in the next 12
22-2 months that are not pledged to pay the principal of or interest on
22-3 district bonds; or
22-4 (3) district bonds that have been authorized but not
22-5 sold.
22-6 (d) A loan for which taxes or bonds are pledged must mature
22-7 not later than the first anniversary of the date on which the loan
22-8 was made. A loan for which district revenues are pledged must
22-9 mature not later than the fifth anniversary of the date on which
22-10 the loan is made.
22-11 Sec. 21. (a) This section applies only to the Castro County
22-12 Hospital District.
22-13 (b) The district may be dissolved only if the dissolution is
22-14 approved by a majority of the voters of the district voting in an
22-15 election called and held for that purpose.
22-16 (c) The board of directors may order an election on the
22-17 question of dissolving the district and disposing of the district's
22-18 assets and obligations. The board shall order an election if the
22-19 board receives a petition requesting an election that is signed by
22-20 a number of residents of the district equal to at least 15 percent
22-21 of the registered voters in the district.
22-22 (d) The election shall be held not later than the 60th day
22-23 after the date the election is ordered. Section 41.001(a),
22-24 Election Code, does not apply to an election ordered under this
22-25 section. The order calling the election shall state:
22-26 (1) the nature of the election, including the
22-27 proposition that is to appear on the ballot;
23-1 (2) the date of the election;
23-2 (3) the hours during which the polls will be open; and
23-3 (4) the location of the polling places.
23-4 (e) The board shall give notice of the election by
23-5 publishing the election order in a newspaper with general
23-6 circulation in the district once a week for two consecutive weeks.
23-7 The first publication must appear not less than 35 days before the
23-8 date set for the election. The ballot for the election shall be
23-9 printed to permit voting for or against the proposition: "The
23-10 dissolution of the Castro County Hospital District."
23-11 (f) If a majority of the votes in the election favor
23-12 dissolution, the board shall find that the district is dissolved.
23-13 If a majority of the votes in the election do not favor
23-14 dissolution, the board shall continue to administer the district,
23-15 and another election on the question of dissolution may not be held
23-16 before the first anniversary of the most recent election to
23-17 dissolve the district.
23-18 (g) If a majority of the votes in the election favor
23-19 dissolution, the board shall:
23-20 (1) transfer the land, buildings, improvements,
23-21 equipment, and other assets that belong to the district to a county
23-22 or other governmental agency in the county in which the district is
23-23 located; or
23-24 (2) administer the property, assets, and debts until
23-25 all funds have been disposed of and all district debts have been
23-26 paid or settled.
23-27 (h) If the district transfers the land, buildings,
24-1 improvements, equipment, and other assets to a county or other
24-2 governmental agency, the county or agency assumes all debts and
24-3 obligations of the district at the time of the transfer, and the
24-4 district is dissolved.
24-5 (i) After the board finds that the district is dissolved,
24-6 the board shall:
24-7 (1) determine the debt owed by the district; and
24-8 (2) impose on the property included in the district's
24-9 tax rolls a tax that is in proportion of the debt to the property
24-10 value.
24-11 (j) When all outstanding debts and obligations of the
24-12 district are paid, the board shall order the secretary to return
24-13 the pro rata share of all unused tax money to each district
24-14 taxpayer.
24-15 (k) A taxpayer may request that the taxpayer's share of
24-16 surplus tax money be credited to the taxpayer's county taxes. If a
24-17 taxpayer requests the credit, the board shall direct the secretary
24-18 to transmit the funds to the county tax assessor-collector.
24-19 (l) After the district has paid all its debts and has
24-20 disposed of all its assets and funds as prescribed by this section,
24-21 the board shall file a written report with the commissioners court
24-22 of Castro County setting forth a summary of the board's actions in
24-23 dissolving the district.
24-24 (m) Not later than the 10th day after the date it receives
24-25 the report and determines that the requirements of this section
24-26 have been fulfilled, the commissioners court of Castro County shall
24-27 enter an order dissolving the district and releasing the board of
25-1 directors of the district from any further duty or obligation.
25-2 (n) The district may not be dissolved unless the board
25-3 provides for the sale or transfer of the district's assets and
25-4 liabilities to another person or entity. The dissolution of the
25-5 district and the sale or transfer of the district's assets and
25-6 liabilities may not contravene a trust indenture or bond resolution
25-7 relating to the outstanding bonds of the district. The dissolution
25-8 and sale or transfer does not diminish or impair the rights of a
25-9 holder of an outstanding bond, warrant, or other obligation of the
25-10 district.
25-11 (o) The sale or transfer of the district's assets and
25-12 liabilities must satisfy the debt and bond obligations of the
25-13 district in a manner that protects the interests of the residents
25-14 of the district, including the residents' collective property
25-15 rights in the district's assets. A grant from federal funds is an
25-16 obligation to be repaid in satisfaction. The district may not
25-17 transfer or dispose of the district's assets except for due
25-18 compensation unless the transfer is made to a governmental agency
25-19 that serves the district and the transferred assets are to be used
25-20 for the benefit of the residents of the district.
25-21 SECTION 17. The importance of this legislation and the
25-22 crowded condition of the calendars in both houses create an
25-23 emergency and an imperative public necessity that the
25-24 constitutional rule requiring bills to be read on three several
25-25 days in each house be suspended, and this rule is hereby suspended,
25-26 and that this Act take effect and be in force from and after its
25-27 passage, and it is so enacted.