By Gallego H.B. No. 3771
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
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
2-1 municipality or political subdivision of this state may levy taxes
2-2 or issue bonds or other obligations of indebtedness for the purpose
2-3 of providing hospital service or medical care within the District.
2-4 This District shall undertake any measure, consistent with Section
2-5 9, Article IX, Texas Constitution, and this Act, that the Board of
2-6 Directors determines is necessary to provide all necessary hospital
2-7 and medical care for the needy inhabitants of the District.
2-8 SECTION 3. Section 5, Chapter 172, Acts of the 59th
2-9 Legislature, Regular Session, 1965, is amended to read as follows:
2-10 Sec. 5. BOARD OF DIRECTORS, CREATION. (a) The management
2-11 and control of the District is vested in a Board of Directors which
2-12 consists of five (5) members, to be elected by the qualified
2-13 electors of the District [who own taxable property within the
2-14 District and who have duly rendered that property for taxation].
2-15 (b) To qualify for election to the Board, a person must be:
2-16 (1) [be at least 21 years of age;]
2-17 [(2) have been] a resident of the District [for at
2-18 least two years]; and
2-19 (2) [(3) be] a qualified voter [;]
2-20 [(4) own taxable property within the District and have
2-21 duly rendered that property for taxation].
2-22 (c) A person may not serve on the Board if the person:
2-23 (1) is a party to a contract with the District to
2-24 perform services for the District for compensation; or
2-25 (2) is an employee of the District [Following the
3-1 creation of the District, as provided in Section 4 of this Act, the
3-2 commissioners court shall appoint the first Board of Directors. The
3-3 three (3) directors first appointed and named shall serve for two
3-4 years and the remaining two (2) directors appointed and named shall
3-5 serve for one year].
3-6 (d) Each [Thereafter, each] year on the first Tuesday after
3-7 the first Monday in November [of September] an election must [is
3-8 to] be held for the purpose of electing the appropriate number of
3-9 successor directors [to the Board. At the first election held under
3-10 this provision there shall be elected two (2) directors to serve in
3-11 the place of the two (2) appointed by the commissioners court for
3-12 terms of one year. Their election shall be for terms of two years.
3-13 At the second election held under this provision there shall be
3-14 elected three (3) directors to serve in the place of the three (3)
3-15 appointed by the commissioners court for terms of two years. Their
3-16 election shall be for terms of two years].
3-17 (e) An [All] elected director [directors] shall serve for a
3-18 four [two] year term in the following manner:
3-19 (1) in an election held in the year 2000 for the
3-20 election of directors serving a term that expires on that year, the
3-21 term shall be a two-year term;
3-22 (2) in an election held in the year 2001 for the
3-23 election of directors serving a term that expires on that year, the
3-24 term shall be a three-year term; and
3-25 (3) every election for a member of the board of
4-1 directors held after 2001 shall be for a term of four-years. In
4-2 every case, a director [the directors] shall serve until a [their]
4-3 successor has been elected and qualified for the office, and in
4-4 every case a director shall be eligible for re-election.
4-5 (f) A vacancy on the Board of Directors shall be filled by
4-6 appointment for the unexpired term by a unanimous vote of the
4-7 remaining directors. The person appointed must have the
4-8 qualifications required by this section.
4-9 (g) A majority of the membership of the Board of Directors
4-10 constitutes a quorum for the transaction of business, and a
4-11 concurrence of a majority of the directors voting is sufficient in
4-12 any matter relating to the business of the District.
4-13 SECTION 4. Section 8(c), Chapter 172, Acts of the 59th
4-14 Legislature, Regular Session, 1965, is amended to read as follows:
4-15 (c) The Board may use the proceeds of this tax for the
4-16 following purposes[, only]:
4-17 (1) paying the interest on and creating a sinking fund
4-18 for bonds issued under the provisions of this Act;
4-19 (2) providing for the operation and maintenance of the
4-20 hospital district and the hospital system;
4-21 (3) making improvements and additions to the hospital
4-22 system;
4-23 (4) acquiring sites for the additions to the hospital
4-24 system; and
4-25 (5) paying the indebtedness issued or assumed by the
5-1 District.
5-2 SECTION 5. Sections 9(c) and (d), Chapter 172, Acts of the
5-3 59th Legislature, Regular Session, 1965, are amended to read as
5-4 follows:
5-5 (c) Bonds issued by the Board must bear interest at a rate
5-6 not to exceed that provided by Chapter 3, Acts of the 61st
5-7 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
5-8 Civil Statutes). The Board of Directors shall not issue any bond
5-9 which matures more than 50 [40] years from the date of issuance.
5-10 (d) The Board of Directors shall not issue any general
5-11 obligation bonds until a majority of the qualified electors of [who
5-12 own taxable property within] the District [and who have duly
5-13 rendered that property for taxation] voting in an election for this
5-14 purpose vote for the issuance of these bonds. In any election held
5-15 for the purpose of approving the issuance of general obligation
5-16 bonds, the Board shall canvass the returns and declare the results
5-17 of the election.
5-18 SECTION 6. Section 10, Chapter 172, Acts of the 59th
5-19 Legislature, Regular Session, 1965, is amended to read as follows:
5-20 Sec. 10. BONDS, ISSUANCE, AND REDEMPTION[, AND REFUND]. (a)
5-21 [After a majority of those persons voting at the election vote for
5-22 the levy of a tax, the Board may issue bonds, the total of the face
5-23 value not to exceed the amount specified in the order of the
5-24 election.]
5-25 [(b)] The president of the Board shall execute the bonds in
6-1 the name of and on behalf of the hospital district. The secretary
6-2 of the Board of Directors shall countersign the bonds. The Attorney
6-3 General of the State of Texas shall approve the bonds if they meet
6-4 the same requirements as provided by law for bonds issued by a
6-5 county. The bonds are to be registered by the Comptroller of Public
6-6 Accounts of the State of Texas in the same manner as provided by
6-7 law for the registration of bonds issued by a county. After
6-8 approval and registration the bonds are incontestable for any
6-9 reason.
6-10 (b) [(c)] The Board may not issue any general obligation
6-11 bonds unless a sufficient tax is levied to create an interest and
6-12 sinking fund to pay the interest and principal as it matures.
6-13 (c) [(d)] All bonds issued by the District may be made
6-14 optional for redemption prior to their maturity date in the
6-15 discretion of the Board.
6-16 [(e) The Board may elect to refund and pay off any validly
6-17 issued and outstanding bonds issued by the District. However, the
6-18 refund bonds issued must bear interest at the same or a lower rate
6-19 than the bonds being refunded unless it is shown mathematically
6-20 that a savings will result in the total interest to be paid.]
6-21 (d) The District may issue revenue bonds to:
6-22 (1) acquire, construct, repair, renovate, or equip
6-23 buildings and improvements for hospital purposes; and
6-24 (2) acquire real property for District purposes.
6-25 (e) The revenue bonds issued under Subsection (d) must be
7-1 payable from and secured by a pledge of all or part of the
7-2 District's revenues from operations of the hospital system.
7-3 (f) The revenue bonds issued under Subsection (d) must be
7-4 issued in accordance with Sections 264.042, 264.043, 264.044,
7-5 264.045, 264.046, 264.047, 264.048, and 264.049, Health and Safety
7-6 Code, for the issuance of revenue bonds by county hospital
7-7 authorities.
7-8 (g) The District may issue refunding bonds to refund an
7-9 outstanding indebtedness the District has issued or assumed. The
7-10 bonds must be issued in the manner provided by Chapter 784, Acts of
7-11 the 61st Legislature, Regular Session, 1969 (Article 717k-3,
7-12 Vernon's Texas Civil Statutes). The refunding bonds may be sold and
7-13 the proceeds applied to the payment of outstanding indebtedness or
7-14 may be exchanged in whole or in part for not less than a similar
7-15 principal amount of outstanding indebtedness. If the refunding
7-16 bonds are to be sold and the proceeds applied to the payment of
7-17 outstanding indebtedness, the refunding bonds must be issued and
7-18 payments made in the manner provided by Chapter 503, Acts of the
7-19 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's
7-20 Texas Civil Statutes).
7-21 (h) District bonds and indebtedness assumed by the District
7-22 are legal and authorized investments for:
7-23 (1) banks;
7-24 (2) savings banks;
7-25 (3) trust companies;
8-1 (4) savings and loan associations;
8-2 (5) insurance companies;
8-3 (6) fiduciaries;
8-4 (7) trustees;
8-5 (8) guardians; and
8-6 (9) sinking funds of municipalities, counties, school
8-7 districts, and other political subdivisions and public funds of the
8-8 state, including the permanent school fund.
8-9 (i) District bonds are eligible to secure deposits of public
8-10 funds of the state and of municipalities, counties, school
8-11 districts, and other political subdivisions of the state. The
8-12 bonds are lawful and sufficient security for deposits to the extent
8-13 of their value, if accompanied by all unmatured coupons.
8-14 (j) Since the District created under this Act is a public
8-15 entity performing an essential public function, bonds issued by the
8-16 District, any transaction relating to the bonds, and profits made
8-17 in the sale of the bonds are free from taxation by the state or by
8-18 any municipality, county, special district, or other political
8-19 subdivision of the state.
8-20 SECTION 7. Section 11, Chapter 172, Acts of the 59th
8-21 Legislature, Regular Session, 1965, is amended to read as follows:
8-22 Sec. 11. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.
8-23 (a) The Board of Directors has full power to manage and control
8-24 the District. Any provision of this Act which provides a specific
8-25 power or duty does not limit the general authority of the District
9-1 to carry out the purposes of this Act.
9-2 (b) The Board shall keep all books, records, accounts,
9-3 notices, minutes, and other matters of the District and its
9-4 operation at the office of the District. The Board shall make
9-5 these items available for public inspection at reasonable times.
9-6 (c) The Board shall adopt rules for the efficient operation
9-7 of the District and its facilities which are not inconsistent with
9-8 this Act. The Board shall publish these rules and regulations in
9-9 book form and furnish copies to interested persons upon request and
9-10 at the expense of the District.
9-11 (d) The Board shall require an annual independent audit of
9-12 the books and records of the District and shall file a copy with
9-13 the District and each public library in the District no later than
9-14 January 1st of each year [and shall file a copy of the audit with
9-15 the Comptroller of Public Accounts and a copy with the District not
9-16 later than December 1 of each year].
9-17 (e) The Board may:
9-18 (1) prescribe the method of making purchases and
9-19 expenditures and the manner of accounting and control used by the
9-20 District; and
9-21 (2) authorize the appointment, engagement or
9-22 employment of [employ]:
9-23 (A) [an attorney, general manager, bookkeeper,
9-24 architect and other,] employees necessary for the efficient
9-25 operation of the District; and
10-1 (B) [(3) employ] an administrator to manage the
10-2 operations of the District [hospital system, who may] and hire
10-3 [necessary] personnel necessary for the efficient operation of the
10-4 District [to perform the services provided by the system].
10-5 (f) A person who is appointed, engaged, or employed under
10-6 Subsection (e)(2) serves at the will of the Board subject to the
10-7 rules adopted by the Board.
10-8 (g) The Board may require that, before assuming the duties
10-9 as administrator, a person shall execute a bond payable to the
10-10 District of not less than $10,000, as determined by the Board,
10-11 conditioned on the faithful performance of the person's duties as
10-12 administrator under this Act. The Board may pay for the bond with
10-13 District funds.
10-14 (h) [(f)] The Board may accept donations, gifts, and
10-15 endowments for the District. The Board shall hold all donations,
10-16 gifts, and endowments in trust and shall administer them under any
10-17 direction, limitation, or provisions as may be prescribed in
10-18 writing by the donor, as long as it is not inconsistent with the
10-19 proper management of the District.
10-20 (i) [(g)] The Board may enter into any contract with a
10-21 municipality or other political subdivision or with a state or
10-22 federal agency to provide hospital and medical care for needy
10-23 persons who reside outside the District.
10-24 (j) The Board shall require:
10-25 (1) reimbursement from the sheriff of Maverick County
11-1 or the police chief of a municipality in the District for the
11-2 District's care and treatment of a person confined in a jail
11-3 facility of the county or municipality who is not a resident of the
11-4 District; and
11-5 (2) reimbursement from a county, municipal, or other
11-6 public hospital located outside the boundaries of the District for
11-7 the District's care and treatment of a patient of that hospital, as
11-8 provided by Chapter 61, Health and Safety Code.
11-9 (k) The Board may appoint to or remove a physician from the
11-10 staff of any hospital or hospital system that is a component of the
11-11 District's operations as the Board considers necessary for the
11-12 efficient operation of the District. The Board may adopt rules
11-13 relating to the method of appointing or removing members of the
11-14 medical staff, including methods for making temporary appointments.
11-15 (l) The Board may, consistent with applicable federal and
11-16 state laws, recruit and retain physicians, nurses, technicians, and
11-17 other professional personnel through the use of:
11-18 (1) scholarship programs;
11-19 (2) agreements for future services;
11-20 (3) shared personnel;
11-21 (4) bonuses; and
11-22 (5) any other method the Board determines is
11-23 necessary.
11-24 (m) The Board may provide retirement benefits for employees
11-25 of the District by:
12-1 (1) establishing or administering a retirement
12-2 program; or
12-3 (2) electing to participate in the Texas County and
12-4 District Retirement System or in any other statewide retirement
12-5 system in which the District is eligible to participate.
12-6 (n) The Board may determine the type and extent of hospital
12-7 and medical care services offered by the District.
12-8 (o) The Board may lease or acquire property, facilities, and
12-9 equipment for the use of the District and may mortgage or pledge
12-10 the property, facilities, or equipment as security for the payment
12-11 of the purchase price.
12-12 (p) The Board may sell, lease, or otherwise dispose of
12-13 property, facilities, or equipment on behalf of the District. Sale
12-14 or other disposal of the property, facilities, or equipment shall
12-15 be at a public sale and at a price and on the terms the Board
12-16 determines are most advantageous to the District. The Board may
12-17 donate surplus personal property or equipment to another
12-18 governmental entity or to any charitable organization. For
12-19 purposes of this subsection, "charitable organization" means an
12-20 organization that is exempt from federal income tax under Section
12-21 5.01(a) of the Internal Revenue Code of 1986, as amended, by being
12-22 listed as an exempt organization in Section 501(c)(3) or 501(c)(4)
12-23 of the code.
12-24 (q) The Board may enter into construction contracts on
12-25 behalf of the District. A construction contract awarded by the
13-1 District for more than $15,000 must be competitively bid, as
13-2 provided by Subchapter B, Chapter 271, Local Government Code.
13-3 Chapter 2253, Government Code, applies to construction contracts
13-4 let by the District.
13-5 (r) The Board may enter into operating or management
13-6 contracts with respect to any of the hospital services or medical
13-7 care that the District may provide.
13-8 (s) The Board may facilitate achievement of the purpose of
13-9 the District by creating a charitable organization to provide or
13-10 arrange for hospital and health care services, develop resources
13-11 for hospital and health care services, and provide ancillary
13-12 support services for the District. For purposes of this
13-13 subsection, "charitable organization" has the same meaning as in
13-14 subsection (p). A charitable organization created by the Board
13-15 under this subsection is a unit of local government for purposes of
13-16 Chapter 101, Civil Practice and Remedies Code.
13-17 SECTION 8. Section 12, Chapter 172, Acts of the 59th
13-18 Legislature, Regular Session, 1965, is amended by amending
13-19 Subsections (b) and (d) and by adding Subsection (e) to read as
13-20 follows:
13-21 (b) The administrator [Board] shall prepare a proposed
13-22 budget showing:
13-23 (1) the proposed expenditures and disbursements;
13-24 (2) the estimated receipts and collections for the
13-25 next fiscal year; and
14-1 (3) the amount of taxes required to be levied and
14-2 collected during the next fiscal year to meet the proposed budget.
14-3 (d) Any resident of the District [person who owns taxable
14-4 property within the District and has duly rendered that property
14-5 for taxation] is entitled to appear at the hearing and be heard
14-6 with reference to any item in the proposed budget.
14-7 (e) At the conclusion of the hearing, the Board shall adopt
14-8 a budget for the District that includes any changes to the
14-9 administrator's proposed budget that the Board determines are in
14-10 the best interest of the District.
14-11 SECTION 9. Sections 13(c)-(g), Chapter 172, Acts of the 59th
14-12 Legislature, Regular Session, 1965, are amended to read as follows:
14-13 (c) If the patient or a relative of the patient who is
14-14 legally liable for his support is able to pay for this care in
14-15 whole or in part, the Board shall order the patient or his
14-16 relatives to pay to the District [treasurer] each week an amount
14-17 specified in the order. The amount must be in proportion to the
14-18 ability to pay.
14-19 (d) The administrator [District] may collect this amount
14-20 from the estate of the patient, or from his relatives who are
14-21 liable for his support, in the manner provided by law for the
14-22 collection of expenses of the last illness of a deceased person.
14-23 (e) If the District [investigator] finds that neither the
14-24 patient, nor a relative who is legally liable for his support, is
14-25 able to pay in whole or in part for this care the expense of this
15-1 care becomes a charge on the District.
15-2 (f) If there is a dispute as to the ability to pay, [or a
15-3 doubt in the mind of the investigator,] the Board shall hear and
15-4 determine the question, after calling witnesses, and make the
15-5 proper order based on its findings.
15-6 (g) A party to the hearing who is not satisfied with the
15-7 result of the order[,] may appeal to the district court, and the
15-8 substantial evidence rule applies to that appeal. [The appeal is
15-9 de novo as that term is used in appeals from the justice courts to
15-10 the county court.]
15-11 SECTION 10. The importance of this legislation and the
15-12 crowded condition of the calendars in both houses create an
15-13 emergency and an imperative public necessity that the
15-14 constitutional rule requiring bills to be read on three several
15-15 days in each house be suspended, and this rule is hereby suspended,
15-16 and that this Act take effect and be in force from and after its
15-17 passage, and it is so enacted.