By Gallego H.B. No. 3771
76R9880 KLA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the name, powers, duties, and operations of the
1-3 Maverick County Hospital District.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. (a) The name of the Hospital District of
1-6 Maverick County is changed to the Maverick County Hospital
1-7 District.
1-8 (b) A reference in Chapter 172, Acts of the 59th
1-9 Legislature, Regular Session, 1965, or in other law to the Hospital
1-10 District of Maverick County means the Maverick County Hospital
1-11 District.
1-12 SECTION 2. Section 3, Chapter 172, Acts of the 59th
1-13 Legislature, Regular Session, 1965, is amended to read as follows:
1-14 Sec. 3. PURPOSE OF DISTRICT. The District authorized to be
1-15 created by this Act is charged with the responsibility of
1-16 undertaking any measure, consistent with Section 9, Article IX,
1-17 Texas Constitution, and this Act, that the Board of Directors
1-18 determines is necessary to provide [establishing a hospital or a
1-19 hospital system within its boundaries to furnish] hospital and
1-20 medical care to the residents of the District. After this District
1-21 is created as provided in Section 4 of this Act, no other
1-22 municipality or political subdivision of this state may levy taxes
1-23 or issue bonds or other obligations of indebtedness for the purpose
1-24 of providing hospital service or medical care within the District.
2-1 This District shall undertake any measure, consistent with Section
2-2 9, Article IX, Texas Constitution, and this Act, that the Board of
2-3 Directors determines is necessary to provide all necessary hospital
2-4 and medical care for the needy inhabitants of the District.
2-5 SECTION 3. Section 5, Chapter 172, Acts of the 59th
2-6 Legislature, Regular Session, 1965, is amended to read as follows:
2-7 Sec. 5. BOARD OF DIRECTORS, CREATION. (a) The management
2-8 and control of the District is vested in a Board of Directors which
2-9 consists of five (5) members, to be elected by the qualified
2-10 electors of the District [who own taxable property within the
2-11 District and who have duly rendered that property for taxation].
2-12 (b) To qualify for election to the Board, a person must be:
2-13 (1) [be at least 21 years of age;]
2-14 [(2) have been] a resident of the District [for at
2-15 least two years]; and
2-16 (2) [(3) be] a qualified voter [;]
2-17 [(4) own taxable property within the District and have
2-18 duly rendered that property for taxation].
2-19 (c) A person may not serve on the Board if the person is:
2-20 (1) a party to a contract with the District to perform
2-21 services for the District for compensation; or
2-22 (2) an employee of the District [Following the
2-23 creation of the District, as provided in Section 4 of this Act, the
2-24 commissioners court shall appoint the first Board of Directors. The
2-25 three (3) directors first appointed and named shall serve for two
2-26 years and the remaining two (2) directors appointed and named shall
2-27 serve for one year].
3-1 (d) Each [Thereafter, each] year on the first Tuesday after
3-2 the first Monday in November [of September] an election must [is
3-3 to] be held for the purpose of electing the appropriate number of
3-4 successor directors [to the Board. At the first election held under
3-5 this provision there shall be elected two (2) directors to serve in
3-6 the place of the two (2) appointed by the commissioners court for
3-7 terms of one year. Their election shall be for terms of two years.
3-8 At the second election held under this provision there shall be
3-9 elected three (3) directors to serve in the place of the three (3)
3-10 appointed by the commissioners court for terms of two years. Their
3-11 election shall be for terms of two years].
3-12 (e) An [All] elected director [directors] shall serve for a
3-13 four [two] year term. In every case, a director [the directors]
3-14 shall serve until a [their] successor has been elected and
3-15 qualified for the office, and in every case a director shall be
3-16 eligible for re-election.
3-17 (f) A vacancy on the Board of Directors shall be filled by
3-18 appointment for the unexpired term by a unanimous vote of the
3-19 remaining directors. The person appointed must have the
3-20 qualifications required by this section.
3-21 (g) A majority of the membership of the Board of Directors
3-22 constitutes a quorum for the transaction of business, and a
3-23 concurrence of a majority of the directors voting is sufficient in
3-24 any matter relating to the business of the District.
3-25 SECTION 4. Section 8(c), Chapter 172, Acts of the 59th
3-26 Legislature, Regular Session, 1965, is amended to read as follows:
3-27 (c) The Board may use the proceeds of this tax for the
4-1 following purposes[, only]:
4-2 (1) paying the interest on and creating a sinking fund
4-3 for bonds issued under the provisions of this Act;
4-4 (2) providing for the operation and maintenance of the
4-5 hospital district and the hospital system;
4-6 (3) making improvements and additions to the hospital
4-7 system;
4-8 (4) acquiring sites for the additions to the hospital
4-9 system; and
4-10 (5) paying the indebtedness issued or assumed by the
4-11 District.
4-12 SECTION 5. Sections 9(c) and (d), Chapter 172, Acts of the
4-13 59th Legislature, Regular Session, 1965, are amended to read as
4-14 follows:
4-15 (c) Bonds issued by the Board must bear interest at a rate
4-16 not to exceed that provided by Chapter 3, Acts of the 61st
4-17 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
4-18 Civil Statutes). The Board of Directors shall not issue any bond
4-19 which matures more than 50 [40] years from the date of issuance.
4-20 (d) The Board of Directors shall not issue any general
4-21 obligation bonds until a majority of the qualified electors of [who
4-22 own taxable property within] the District [and who have duly
4-23 rendered that property for taxation] voting in an election for this
4-24 purpose vote for the issuance of these bonds. In any election held
4-25 for the purpose of approving the issuance of general obligation
4-26 bonds, the Board shall canvass the returns and declare the results
4-27 of the election.
5-1 SECTION 6. Section 10, Chapter 172, Acts of the 59th
5-2 Legislature, Regular Session, 1965, is amended to read as follows:
5-3 Sec. 10. BONDS, ISSUANCE, AND REDEMPTION[, AND REFUND]. (a)
5-4 [After a majority of those persons voting at the election vote for
5-5 the levy of a tax, the Board may issue bonds, the total of the face
5-6 value not to exceed the amount specified in the order of the
5-7 election.]
5-8 [(b)] The president of the Board shall execute the bonds in
5-9 the name of and on behalf of the hospital district. The secretary
5-10 of the Board of Directors shall countersign the bonds. The Attorney
5-11 General of the State of Texas shall approve the bonds if they meet
5-12 the same requirements as provided by law for bonds issued by a
5-13 county. The bonds are to be registered by the Comptroller of Public
5-14 Accounts of the State of Texas in the same manner as provided by
5-15 law for the registration of bonds issued by a county. After
5-16 approval and registration the bonds are incontestable for any
5-17 reason.
5-18 (b) [(c)] The Board may not issue any general obligation
5-19 bonds unless a sufficient tax is levied to create an interest and
5-20 sinking fund to pay the interest and principal as it matures.
5-21 (c) [(d)] All bonds issued by the District may be made
5-22 optional for redemption prior to their maturity date in the
5-23 discretion of the Board.
5-24 (d) The District may issue revenue bonds to:
5-25 (1) acquire, construct, repair, renovate, or equip
5-26 buildings and improvements for hospital purposes; and
5-27 (2) acquire real property for District purposes.
6-1 (e) The revenue bonds issued under Subsection (d) must be
6-2 payable from and secured by a pledge of all or part of the
6-3 District's revenues from operations of the hospital system.
6-4 (f) The revenue bonds issued under Subsection (d) must be
6-5 issued in accordance with Sections 264.042, 264.043, 264.044,
6-6 264.045, 264.046, 264.047, 264.048, and 264.049, Health and Safety
6-7 Code, for the issuance of revenue bonds by county hospital
6-8 authorities.
6-9 (g) The District may issue refunding bonds to refund an
6-10 outstanding indebtedness the District has issued or assumed. The
6-11 bonds must be issued in the manner provided by Chapter 784, Acts of
6-12 the 61st Legislature, Regular Session, 1969 (Article 717k-3,
6-13 Vernon's Texas Civil Statutes). The refunding bonds may be sold and
6-14 the proceeds applied to the payment of outstanding indebtedness or
6-15 may be exchanged in whole or in part for not less than a similar
6-16 principal amount of outstanding indebtedness. If the refunding
6-17 bonds are to be sold and the proceeds applied to the payment of
6-18 outstanding indebtedness, the refunding bonds must be issued and
6-19 payments made in the manner provided by Chapter 503, Acts of the
6-20 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's
6-21 Texas Civil Statutes).
6-22 (h) District bonds and indebtedness assumed by the District
6-23 are legal and authorized investments for:
6-24 (1) banks;
6-25 (2) savings banks;
6-26 (3) trust companies;
6-27 (4) savings and loan associations;
7-1 (5) insurance companies;
7-2 (6) fiduciaries;
7-3 (7) trustees;
7-4 (8) guardians; and
7-5 (9) sinking funds of municipalities, counties, school
7-6 districts, and other political subdivisions and public funds of the
7-7 state, including the permanent school fund.
7-8 (i) District bonds are eligible to secure deposits of public
7-9 funds of the state and of municipalities, counties, school
7-10 districts, and other political subdivisions of the state. The
7-11 bonds are lawful and sufficient security for deposits to the extent
7-12 of their value, if accompanied by all unmatured coupons.
7-13 (j) Since the District created under this Act is a public
7-14 entity performing an essential public function, bonds issued by the
7-15 District, any transaction relating to the bonds, and profits made
7-16 in the sale of the bonds are free from taxation by the state or by
7-17 any municipality, county, special district, or other political
7-18 subdivision of the state.
7-19 [(e) The Board may elect to refund and pay off any validly
7-20 issued and outstanding bonds issued by the District. However, the
7-21 refund bonds issued must bear interest at the same or a lower rate
7-22 than the bonds being refunded unless it is shown mathematically
7-23 that a savings will result in the total interest to be paid.]
7-24 SECTION 7. Section 11, Chapter 172, Acts of the 59th
7-25 Legislature, Regular Session, 1965, is amended to read as follows:
7-26 Sec. 11. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.
7-27 (a) The Board of Directors has full power to manage and control
8-1 the District. Any provision of this Act which provides a specific
8-2 power or duty does not limit the general authority of the District
8-3 to carry out the purposes of this Act.
8-4 (b) The Board shall keep all books, records, accounts,
8-5 notices, minutes, and other matters of the District and its
8-6 operation at the office of the District. The Board shall make
8-7 these items available for public inspection at reasonable times.
8-8 (c) The Board shall adopt rules for the efficient operation
8-9 of the District and its facilities which are not inconsistent with
8-10 this Act. The Board shall publish these rules and regulations in
8-11 book form and furnish copies to interested persons upon request and
8-12 at the expense of the District.
8-13 (d) The Board shall require an annual independent audit of
8-14 the books and records of the District and shall file a copy of the
8-15 audit with [the Comptroller of Public Accounts and a copy with] the
8-16 District and shall provide a copy of the audit at each public
8-17 library located in the District not later than January [December] 1
8-18 of each year.
8-19 (e) The Board may:
8-20 (1) prescribe the method of making purchases and
8-21 expenditures and the manner of accounting and control used by the
8-22 District; and
8-23 (2) authorize the appointment, engagement, or
8-24 employment of:
8-25 (A) [employ an attorney, general manager,
8-26 bookkeeper, architect, and other] employees necessary for the
8-27 efficient operation of the District; and
9-1 (B) [(3) employ] an administrator to manage the
9-2 operations of the District [hospital system, who may hire necessary
9-3 personnel to perform the services provided by the system].
9-4 (f) A person who is appointed, engaged, or employed under
9-5 Subsection (e)(2) serves at the will of the Board and is subject to
9-6 the rules adopted by the Board.
9-7 (g) The Board may require that, before assuming the duties
9-8 as administrator, a person shall execute a bond payable to the
9-9 District of not less than $10,000, as determined by the Board,
9-10 conditioned on the faithful performance of the person's duties as
9-11 administrator under this Act. The Board may pay for the bond with
9-12 District funds.
9-13 (h) [(f)] The Board may accept donations, gifts, and
9-14 endowments for the District. The Board shall hold all donations,
9-15 gifts, and endowments in trust and shall administer them under any
9-16 direction, limitation, or provisions as may be prescribed in
9-17 writing by the donor, as long as it is not inconsistent with the
9-18 proper management of the District.
9-19 (i) [(g)] The Board may enter into any contract with a
9-20 municipality or other political subdivision or with a state or
9-21 federal agency to provide hospital and medical care for needy
9-22 persons who reside outside the District.
9-23 (j) The Board shall require:
9-24 (1) reimbursement from the sheriff of Maverick County
9-25 or the police chief of a municipality in the District for the
9-26 District's care and treatment of a person confined in a jail
9-27 facility of the county or municipality who is not a resident of the
10-1 District; and
10-2 (2) reimbursement from a county, municipal, or other
10-3 public hospital located outside the boundaries of the District for
10-4 the District's care and treatment of a patient of that hospital, as
10-5 provided by Chapter 61, Health and Safety Code.
10-6 (k) The Board may appoint to or remove a physician from the
10-7 staff of any hospital or hospital system that is a component of the
10-8 District's operations as the Board considers necessary for the
10-9 efficient operation of the District. The Board may adopt rules
10-10 relating to the method of appointing or removing members of the
10-11 medical staff, including methods for making temporary appointments.
10-12 (l) The Board may, consistent with applicable federal and
10-13 state laws, recruit and retain physicians, nurses, technicians, and
10-14 other professional personnel through:
10-15 (1) scholarship programs;
10-16 (2) agreements for future services;
10-17 (3) shared personnel;
10-18 (4) bonuses; and
10-19 (5) any other method the Board determines is
10-20 necessary.
10-21 (m) The Board may provide retirement benefits for employees
10-22 of the District by:
10-23 (1) establishing or administering a retirement
10-24 program; or
10-25 (2) electing to participate in the Texas County and
10-26 District Retirement System or in any other statewide retirement
10-27 system in which the District is eligible to participate.
11-1 (n) The Board may determine the type and extent of hospital
11-2 and medical care services offered by the District.
11-3 (o) The Board may lease or acquire property, facilities, and
11-4 equipment for the use of the District and may mortgage or pledge
11-5 the property, facilities, or equipment as security for the payment
11-6 of the purchase price.
11-7 (p) The Board may sell, lease, or otherwise dispose of
11-8 property, facilities, or equipment on behalf of the District. Sale
11-9 or other disposal of the property, facilities, or equipment must be
11-10 at a public sale and at a price and on the terms the Board
11-11 determines are most advantageous to the District. The Board may
11-12 donate surplus personal property or equipment to another
11-13 governmental entity or to any charitable organization.
11-14 (q) The Board may enter into construction contracts on
11-15 behalf of the District. A construction contract awarded by the
11-16 District for more than $15,000 must be competitively bid, as
11-17 provided by Subchapter B, Chapter 271, Local Government Code.
11-18 Chapter 2253, Government Code, applies to construction contracts
11-19 let by the District.
11-20 (r) The Board may enter into operating or management
11-21 contracts with respect to any of the hospital services or medical
11-22 care that the District may provide.
11-23 (s) The Board may facilitate achievement of the purpose of
11-24 the District by creating a charitable organization to provide or
11-25 arrange for hospital and health care services, develop resources
11-26 for hospital and health care services, and provide ancillary
11-27 support services for the District. A charitable organization
12-1 created by the Board under this subsection is a unit of local
12-2 government for purposes of Chapter 101, Civil Practice and Remedies
12-3 Code.
12-4 (t) The Board, on behalf of the District, may sponsor and
12-5 create a nonprofit corporation under the Texas Non-Profit
12-6 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
12-7 Statutes) and may contribute funds to or solicit funds for the
12-8 corporation. The corporation may use funds, other than funds paid
12-9 by the corporation to the District, only to provide health care or
12-10 other services the District may provide under this Act. The Board
12-11 shall establish adequate controls to ensure that the corporation
12-12 uses its funds as required by this subsection. The corporation may
12-13 invest corporation funds in any manner in which the District may
12-14 invest funds, including investing funds as authorized by Chapter
12-15 2256, Government Code.
12-16 (u) In this section, "charitable organization" means an
12-17 organization that is exempt from federal income tax under Section
12-18 501(a) of the Internal Revenue Code of 1986, as amended, by being
12-19 listed as an exempt organization in Section 501(c)(3) or 501(c)(4)
12-20 of the code.
12-21 SECTION 8. Section 12, Chapter 172, Acts of the 59th
12-22 Legislature, Regular Session, 1965, is amended by amending
12-23 Subsections (b) and (d) and by adding Subsection (e) to read as
12-24 follows:
12-25 (b) The administrator [Board] shall prepare a proposed
12-26 budget showing:
12-27 (1) the proposed expenditures and disbursements;
13-1 (2) the estimated receipts and collections for the
13-2 next fiscal year; and
13-3 (3) the amount of taxes required to be levied and
13-4 collected during the next fiscal year to meet the proposed budget.
13-5 (d) Any resident of the District [person who owns taxable
13-6 property within the District and has duly rendered that property
13-7 for taxation] is entitled to appear at the hearing and be heard
13-8 with reference to any item in the proposed budget.
13-9 (e) At the conclusion of the hearing, the Board shall adopt
13-10 a budget for the District that includes any changes to the
13-11 administrator's proposed budget that the Board determines are in
13-12 the best interest of the District.
13-13 SECTION 9. Sections 13(c)-(g), Chapter 172, Acts of the 59th
13-14 Legislature, Regular Session, 1965, are amended to read as follows:
13-15 (c) If the patient or a relative of the patient who is
13-16 legally liable for his support is able to pay for this care in
13-17 whole or in part, the Board shall order the patient or his
13-18 relatives to pay to the District [treasurer] each week an amount
13-19 specified in the order. The amount must be in proportion to the
13-20 ability to pay.
13-21 (d) The administrator [District] may collect this amount
13-22 from the estate of the patient, or from his relatives who are
13-23 liable for his support, in the manner provided by law for the
13-24 collection of expenses of the last illness of a deceased person.
13-25 (e) If the District [investigator] finds that neither the
13-26 patient, nor a relative who is legally liable for his support, is
13-27 able to pay in whole or in part for this care, the expense of this
14-1 care becomes a charge on the District.
14-2 (f) If there is a dispute as to the ability to pay, [or a
14-3 doubt in the mind of the investigator,] the Board shall hear and
14-4 determine the question, after calling witnesses, and make the
14-5 proper order based on its findings.
14-6 (g) A party to the hearing who is not satisfied with the
14-7 result of the order[,] may appeal to the district court, and the
14-8 substantial evidence rule applies to that appeal. [The appeal is
14-9 de novo as that term is used in appeals from the justice courts to
14-10 the county court.]
14-11 SECTION 10. The changes in law made by this Act to the
14-12 qualifications of and the prohibitions applying to members of the
14-13 Board of Directors of the Maverick County Hospital District do not
14-14 affect the entitlement of a member serving on the Board immediately
14-15 before the effective date of this Act to continue to carry out the
14-16 functions of the Board for the remainder of the member's term. The
14-17 changes in law apply only to a member appointed or elected on or
14-18 after the effective date of this Act. This Act does not prohibit a
14-19 person who is a member of the Board on the effective date of this
14-20 Act from being reappointed or reelected to the Board if the person
14-21 has the qualifications required for membership under Section 5,
14-22 Chapter 172, Acts of the 59th Legislature, Regular Session, 1965,
14-23 as amended by this Act.
14-24 SECTION 11. The change in law made by this Act to the term
14-25 of a director on the Board of Directors of the Maverick County
14-26 Hospital District does not apply to the term of a director elected
14-27 in an election held in 2000 or 2001 for the election of directors.
15-1 A director elected in an election held in 2000 shall serve a
15-2 two-year term, and a director elected in an election held in 2001
15-3 shall serve a three-year term. Successor directors shall serve
15-4 four-year terms.
15-5 SECTION 12. The importance of this legislation and the
15-6 crowded condition of the calendars in both houses create an
15-7 emergency and an imperative public necessity that the
15-8 constitutional rule requiring bills to be read on three several
15-9 days in each house be suspended, and this rule is hereby suspended,
15-10 and that this Act take effect and be in force from and after its
15-11 passage, and it is so enacted.