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.