1-1 By: Gallego (Senate Sponsor - Madla) H.B. No. 3771
1-2 (In the Senate - Received from the House April 26, 1999;
1-3 April 27, 1999, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 6, 1999, reported favorably by the
1-5 following vote: Yeas 5, Nays 0; May 6, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the name, powers, duties, and operations of the
1-9 Maverick County Hospital District.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. (a) The name of the Hospital District of
1-12 Maverick County is changed to the Maverick County Hospital
1-13 District.
1-14 (b) A reference in Chapter 172, Acts of the 59th
1-15 Legislature, Regular Session, 1965, or in other law to the Hospital
1-16 District of Maverick County means the Maverick County Hospital
1-17 District.
1-18 SECTION 2. Section 3, Chapter 172, Acts of the 59th
1-19 Legislature, Regular Session, 1965, is amended to read as follows:
1-20 Sec. 3. PURPOSE OF DISTRICT. The District authorized to be
1-21 created by this Act is charged with the responsibility of
1-22 undertaking any measure, consistent with Section 9, Article IX,
1-23 Texas Constitution, and this Act, that the Board of Directors
1-24 determines is necessary to provide [establishing a hospital or a
1-25 hospital system within its boundaries to furnish] hospital and
1-26 medical care to the residents of the District. After this District
1-27 is created as provided in Section 4 of this Act, no other
1-28 municipality or political subdivision of this state may levy taxes
1-29 or issue bonds or other obligations of indebtedness for the purpose
1-30 of providing hospital service or medical care within the District.
1-31 This District shall undertake any measure, consistent with Section
1-32 9, Article IX, Texas Constitution, and this Act, that the Board of
1-33 Directors determines is necessary to provide all necessary hospital
1-34 and medical care for the needy inhabitants of the District.
1-35 SECTION 3. Section 5, Chapter 172, Acts of the 59th
1-36 Legislature, Regular Session, 1965, is amended to read as follows:
1-37 Sec. 5. BOARD OF DIRECTORS, CREATION. (a) The management
1-38 and control of the District is vested in a Board of Directors which
1-39 consists of five (5) members, to be elected by the qualified
1-40 electors of the District [who own taxable property within the
1-41 District and who have duly rendered that property for taxation].
1-42 (b) To qualify for election to the Board, a person must be:
1-43 (1) [be at least 21 years of age;]
1-44 [(2) have been] a resident of the District [for at
1-45 least two years]; and
1-46 (2) [(3) be] a qualified voter [;]
1-47 [(4) own taxable property within the District and have
1-48 duly rendered that property for taxation].
1-49 (c) A person may not serve on the Board if the person is:
1-50 (1) a party to a contract with the District to perform
1-51 services for the District for compensation; or
1-52 (2) an employee of the District [Following the
1-53 creation of the District, as provided in Section 4 of this Act, the
1-54 commissioners court shall appoint the first Board of Directors. The
1-55 three (3) directors first appointed and named shall serve for two
1-56 years and the remaining two (2) directors appointed and named shall
1-57 serve for one year].
1-58 (d) Each [Thereafter, each] year on the first Tuesday after
1-59 the first Monday in November [of September] an election must [is
1-60 to] be held for the purpose of electing the appropriate number of
1-61 successor directors [to the Board. At the first election held under
1-62 this provision there shall be elected two (2) directors to serve in
1-63 the place of the two (2) appointed by the commissioners court for
1-64 terms of one year. Their election shall be for terms of two years.
2-1 At the second election held under this provision there shall be
2-2 elected three (3) directors to serve in the place of the three (3)
2-3 appointed by the commissioners court for terms of two years. Their
2-4 election shall be for terms of two years].
2-5 (e) An [All] elected director [directors] shall serve for a
2-6 four [two] year term. In every case, a director [the directors]
2-7 shall serve until a [their] successor has been elected and
2-8 qualified for the office, and in every case a director shall be
2-9 eligible for re-election.
2-10 (f) A vacancy on the Board of Directors shall be filled by
2-11 appointment for the unexpired term by a unanimous vote of the
2-12 remaining directors. The person appointed must have the
2-13 qualifications required by this section.
2-14 (g) A majority of the membership of the Board of Directors
2-15 constitutes a quorum for the transaction of business, and a
2-16 concurrence of a majority of the directors voting is sufficient in
2-17 any matter relating to the business of the District.
2-18 SECTION 4. Section 8(c), Chapter 172, Acts of the 59th
2-19 Legislature, Regular Session, 1965, is amended to read as follows:
2-20 (c) The Board may use the proceeds of this tax for the
2-21 following purposes[, only]:
2-22 (1) paying the interest on and creating a sinking fund
2-23 for bonds issued under the provisions of this Act;
2-24 (2) providing for the operation and maintenance of the
2-25 hospital district and the hospital system;
2-26 (3) making improvements and additions to the hospital
2-27 system;
2-28 (4) acquiring sites for the additions to the hospital
2-29 system; and
2-30 (5) paying the indebtedness issued or assumed by the
2-31 District.
2-32 SECTION 5. Sections 9(c) and (d), Chapter 172, Acts of the
2-33 59th Legislature, Regular Session, 1965, are amended to read as
2-34 follows:
2-35 (c) Bonds issued by the Board must bear interest at a rate
2-36 not to exceed that provided by Chapter 3, Acts of the 61st
2-37 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
2-38 Civil Statutes). The Board of Directors shall not issue any bond
2-39 which matures more than 50 [40] years from the date of issuance.
2-40 (d) The Board of Directors shall not issue any general
2-41 obligation bonds until a majority of the qualified electors of [who
2-42 own taxable property within] the District [and who have duly
2-43 rendered that property for taxation] voting in an election for this
2-44 purpose vote for the issuance of these bonds. In any election held
2-45 for the purpose of approving the issuance of general obligation
2-46 bonds, the Board shall canvass the returns and declare the results
2-47 of the election.
2-48 SECTION 6. Section 10, Chapter 172, Acts of the 59th
2-49 Legislature, Regular Session, 1965, is amended to read as follows:
2-50 Sec. 10. BONDS, ISSUANCE, AND REDEMPTION[, AND REFUND]. (a)
2-51 [After a majority of those persons voting at the election vote for
2-52 the levy of a tax, the Board may issue bonds, the total of the face
2-53 value not to exceed the amount specified in the order of the
2-54 election.]
2-55 [(b)] The president of the Board shall execute the bonds in
2-56 the name of and on behalf of the hospital district. The secretary
2-57 of the Board of Directors shall countersign the bonds. The Attorney
2-58 General of the State of Texas shall approve the bonds if they meet
2-59 the same requirements as provided by law for bonds issued by a
2-60 county. The bonds are to be registered by the Comptroller of Public
2-61 Accounts of the State of Texas in the same manner as provided by
2-62 law for the registration of bonds issued by a county. After
2-63 approval and registration the bonds are incontestable for any
2-64 reason.
2-65 (b) [(c)] The Board may not issue any general obligation
2-66 bonds unless a sufficient tax is levied to create an interest and
2-67 sinking fund to pay the interest and principal as it matures.
2-68 (c) [(d)] All bonds issued by the District may be made
2-69 optional for redemption prior to their maturity date in the
3-1 discretion of the Board.
3-2 (d) The District may issue revenue bonds to:
3-3 (1) acquire, construct, repair, renovate, or equip
3-4 buildings and improvements for hospital purposes; and
3-5 (2) acquire real property for District purposes.
3-6 (e) The revenue bonds issued under Subsection (d) must be
3-7 payable from and secured by a pledge of all or part of the
3-8 District's revenues from operations of the hospital system.
3-9 (f) The revenue bonds issued under Subsection (d) must be
3-10 issued in accordance with Sections 264.042, 264.043, 264.044,
3-11 264.045, 264.046, 264.047, 264.048, and 264.049, Health and Safety
3-12 Code, for the issuance of revenue bonds by county hospital
3-13 authorities.
3-14 (g) The District may issue refunding bonds to refund an
3-15 outstanding indebtedness the District has issued or assumed. The
3-16 bonds must be issued in the manner provided by Chapter 784, Acts of
3-17 the 61st Legislature, Regular Session, 1969 (Article 717k-3,
3-18 Vernon's Texas Civil Statutes). The refunding bonds may be sold and
3-19 the proceeds applied to the payment of outstanding indebtedness or
3-20 may be exchanged in whole or in part for not less than a similar
3-21 principal amount of outstanding indebtedness. If the refunding
3-22 bonds are to be sold and the proceeds applied to the payment of
3-23 outstanding indebtedness, the refunding bonds must be issued and
3-24 payments made in the manner provided by Chapter 503, Acts of the
3-25 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's
3-26 Texas Civil Statutes).
3-27 (h) District bonds and indebtedness assumed by the District
3-28 are legal and authorized investments for:
3-29 (1) banks;
3-30 (2) savings banks;
3-31 (3) trust companies;
3-32 (4) savings and loan associations;
3-33 (5) insurance companies;
3-34 (6) fiduciaries;
3-35 (7) trustees;
3-36 (8) guardians; and
3-37 (9) sinking funds of municipalities, counties, school
3-38 districts, and other political subdivisions and public funds of the
3-39 state, including the permanent school fund.
3-40 (i) District bonds are eligible to secure deposits of public
3-41 funds of the state and of municipalities, counties, school
3-42 districts, and other political subdivisions of the state. The
3-43 bonds are lawful and sufficient security for deposits to the extent
3-44 of their value, if accompanied by all unmatured coupons.
3-45 (j) Since the District created under this Act is a public
3-46 entity performing an essential public function, bonds issued by the
3-47 District, any transaction relating to the bonds, and profits made
3-48 in the sale of the bonds are free from taxation by the state or by
3-49 any municipality, county, special district, or other political
3-50 subdivision of the state.
3-51 [(e) The Board may elect to refund and pay off any validly
3-52 issued and outstanding bonds issued by the District. However, the
3-53 refund bonds issued must bear interest at the same or a lower rate
3-54 than the bonds being refunded unless it is shown mathematically
3-55 that a savings will result in the total interest to be paid.]
3-56 SECTION 7. Section 11, Chapter 172, Acts of the 59th
3-57 Legislature, Regular Session, 1965, is amended to read as follows:
3-58 Sec. 11. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.
3-59 (a) The Board of Directors has full power to manage and control
3-60 the District. Any provision of this Act which provides a specific
3-61 power or duty does not limit the general authority of the District
3-62 to carry out the purposes of this Act.
3-63 (b) The Board shall keep all books, records, accounts,
3-64 notices, minutes, and other matters of the District and its
3-65 operation at the office of the District. The Board shall make
3-66 these items available for public inspection at reasonable times.
3-67 (c) The Board shall adopt rules for the efficient operation
3-68 of the District and its facilities which are not inconsistent with
3-69 this Act. The Board shall publish these rules and regulations in
4-1 book form and furnish copies to interested persons upon request and
4-2 at the expense of the District.
4-3 (d) The Board shall require an annual independent audit of
4-4 the books and records of the District and shall file a copy of the
4-5 audit with [the Comptroller of Public Accounts and a copy with] the
4-6 District and shall provide a copy of the audit at each public
4-7 library located in the District not later than January [December] 1
4-8 of each year.
4-9 (e) The Board may:
4-10 (1) prescribe the method of making purchases and
4-11 expenditures and the manner of accounting and control used by the
4-12 District; and
4-13 (2) authorize the appointment, engagement, or
4-14 employment of:
4-15 (A) [employ an attorney, general manager,
4-16 bookkeeper, architect, and other] employees necessary for the
4-17 efficient operation of the District; and
4-18 (B) [(3) employ] an administrator to manage the
4-19 operations of the District [hospital system, who may hire necessary
4-20 personnel to perform the services provided by the system].
4-21 (f) A person who is appointed, engaged, or employed under
4-22 Subsection (e)(2) serves at the will of the Board and is subject to
4-23 the rules adopted by the Board.
4-24 (g) The Board may require that, before assuming the duties
4-25 as administrator, a person shall execute a bond payable to the
4-26 District of not less than $10,000, as determined by the Board,
4-27 conditioned on the faithful performance of the person's duties as
4-28 administrator under this Act. The Board may pay for the bond with
4-29 District funds.
4-30 (h) [(f)] The Board may accept donations, gifts, and
4-31 endowments for the District. The Board shall hold all donations,
4-32 gifts, and endowments in trust and shall administer them under any
4-33 direction, limitation, or provisions as may be prescribed in
4-34 writing by the donor, as long as it is not inconsistent with the
4-35 proper management of the District.
4-36 (i) [(g)] The Board may enter into any contract with a
4-37 municipality or other political subdivision or with a state or
4-38 federal agency to provide hospital and medical care for needy
4-39 persons who reside outside the District.
4-40 (j) The Board shall require:
4-41 (1) reimbursement from the sheriff of Maverick County
4-42 or the police chief of a municipality in the District for the
4-43 District's care and treatment of a person confined in a jail
4-44 facility of the county or municipality who is not a resident of the
4-45 District; and
4-46 (2) reimbursement from a county, municipal, or other
4-47 public hospital located outside the boundaries of the District for
4-48 the District's care and treatment of a patient of that hospital, as
4-49 provided by Chapter 61, Health and Safety Code.
4-50 (k) The Board may appoint to or remove a physician from the
4-51 staff of any hospital or hospital system that is a component of the
4-52 District's operations as the Board considers necessary for the
4-53 efficient operation of the District. The Board may adopt rules
4-54 relating to the method of appointing or removing members of the
4-55 medical staff, including methods for making temporary appointments.
4-56 (l) The Board may, consistent with applicable federal and
4-57 state laws, recruit and retain physicians, nurses, technicians, and
4-58 other professional personnel through:
4-59 (1) scholarship programs;
4-60 (2) agreements for future services;
4-61 (3) shared personnel;
4-62 (4) bonuses; and
4-63 (5) any other method the Board determines is
4-64 necessary.
4-65 (m) The Board may provide retirement benefits for employees
4-66 of the District by:
4-67 (1) establishing or administering a retirement
4-68 program; or
4-69 (2) electing to participate in the Texas County and
5-1 District Retirement System or in any other statewide retirement
5-2 system in which the District is eligible to participate.
5-3 (n) The Board may determine the type and extent of hospital
5-4 and medical care services offered by the District.
5-5 (o) The Board may lease or acquire property, facilities, and
5-6 equipment for the use of the District and may mortgage or pledge
5-7 the property, facilities, or equipment as security for the payment
5-8 of the purchase price.
5-9 (p) The Board may sell, lease, or otherwise dispose of
5-10 property, facilities, or equipment on behalf of the District. Sale
5-11 or other disposal of the property, facilities, or equipment must be
5-12 at a public sale and at a price and on the terms the Board
5-13 determines are most advantageous to the District. The Board may
5-14 donate surplus personal property or equipment to another
5-15 governmental entity or to any charitable organization.
5-16 (q) The Board may enter into construction contracts on
5-17 behalf of the District. A construction contract awarded by the
5-18 District for more than $15,000 must be competitively bid, as
5-19 provided by Subchapter B, Chapter 271, Local Government Code.
5-20 Chapter 2253, Government Code, applies to construction contracts
5-21 let by the District.
5-22 (r) The Board may enter into operating or management
5-23 contracts with respect to any of the hospital services or medical
5-24 care that the District may provide.
5-25 (s) The Board may facilitate achievement of the purpose of
5-26 the District by creating a charitable organization to provide or
5-27 arrange for hospital and health care services, develop resources
5-28 for hospital and health care services, and provide ancillary
5-29 support services for the District. A charitable organization
5-30 created by the Board under this subsection is a unit of local
5-31 government for purposes of Chapter 101, Civil Practice and Remedies
5-32 Code.
5-33 (t) The Board, on behalf of the District, may sponsor and
5-34 create a nonprofit corporation under the Texas Non-Profit
5-35 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
5-36 Statutes) and may contribute funds to or solicit funds for the
5-37 corporation. The corporation may use funds, other than funds paid
5-38 by the corporation to the District, only to provide health care or
5-39 other services the District may provide under this Act. The Board
5-40 shall establish adequate controls to ensure that the corporation
5-41 uses its funds as required by this subsection. The corporation may
5-42 invest corporation funds in any manner in which the District may
5-43 invest funds, including investing funds as authorized by Chapter
5-44 2256, Government Code.
5-45 (u) In this section, "charitable organization" means an
5-46 organization that is exempt from federal income tax under Section
5-47 501(a) of the Internal Revenue Code of 1986, as amended, by being
5-48 listed as an exempt organization in Section 501(c)(3) or 501(c)(4)
5-49 of the code.
5-50 SECTION 8. Section 12, Chapter 172, Acts of the 59th
5-51 Legislature, Regular Session, 1965, is amended by amending
5-52 Subsections (b) and (d) and by adding Subsection (e) to read as
5-53 follows:
5-54 (b) The administrator [Board] shall prepare a proposed
5-55 budget showing:
5-56 (1) the proposed expenditures and disbursements;
5-57 (2) the estimated receipts and collections for the
5-58 next fiscal year; and
5-59 (3) the amount of taxes required to be levied and
5-60 collected during the next fiscal year to meet the proposed budget.
5-61 (d) Any resident of the District [person who owns taxable
5-62 property within the District and has duly rendered that property
5-63 for taxation] is entitled to appear at the hearing and be heard
5-64 with reference to any item in the proposed budget.
5-65 (e) At the conclusion of the hearing, the Board shall adopt
5-66 a budget for the District that includes any changes to the
5-67 administrator's proposed budget that the Board determines are in
5-68 the best interest of the District.
5-69 SECTION 9. Sections 13(c)-(g), Chapter 172, Acts of the 59th
6-1 Legislature, Regular Session, 1965, are amended to read as follows:
6-2 (c) If the patient or a relative of the patient who is
6-3 legally liable for his support is able to pay for this care in
6-4 whole or in part, the Board shall order the patient or his
6-5 relatives to pay to the District [treasurer] each week an amount
6-6 specified in the order. The amount must be in proportion to the
6-7 ability to pay.
6-8 (d) The administrator [District] may collect this amount
6-9 from the estate of the patient, or from his relatives who are
6-10 liable for his support, in the manner provided by law for the
6-11 collection of expenses of the last illness of a deceased person.
6-12 (e) If the District [investigator] finds that neither the
6-13 patient, nor a relative who is legally liable for his support, is
6-14 able to pay in whole or in part for this care, the expense of this
6-15 care becomes a charge on the District.
6-16 (f) If there is a dispute as to the ability to pay, [or a
6-17 doubt in the mind of the investigator,] the Board shall hear and
6-18 determine the question, after calling witnesses, and make the
6-19 proper order based on its findings.
6-20 (g) A party to the hearing who is not satisfied with the
6-21 result of the order[,] may appeal to the district court, and the
6-22 substantial evidence rule applies to that appeal. [The appeal is
6-23 de novo as that term is used in appeals from the justice courts to
6-24 the county court.]
6-25 SECTION 10. The changes in law made by this Act to the
6-26 qualifications of and the prohibitions applying to members of the
6-27 Board of Directors of the Maverick County Hospital District do not
6-28 affect the entitlement of a member serving on the Board immediately
6-29 before the effective date of this Act to continue to carry out the
6-30 functions of the Board for the remainder of the member's term. The
6-31 changes in law apply only to a member appointed or elected on or
6-32 after the effective date of this Act. This Act does not prohibit a
6-33 person who is a member of the Board on the effective date of this
6-34 Act from being reappointed or reelected to the Board if the person
6-35 has the qualifications required for membership under Section 5,
6-36 Chapter 172, Acts of the 59th Legislature, Regular Session, 1965,
6-37 as amended by this Act.
6-38 SECTION 11. The change in law made by this Act to the term
6-39 of a director on the Board of Directors of the Maverick County
6-40 Hospital District does not apply to the term of a director elected
6-41 in an election held in 2000 or 2001 for the election of directors.
6-42 A director elected in an election held in 2000 shall serve a
6-43 two-year term, and a director elected in an election held in 2001
6-44 shall serve a three-year term. Successor directors shall serve
6-45 four-year terms.
6-46 SECTION 12. The importance of this legislation and the
6-47 crowded condition of the calendars in both houses create an
6-48 emergency and an imperative public necessity that the
6-49 constitutional rule requiring bills to be read on three several
6-50 days in each house be suspended, and this rule is hereby suspended,
6-51 and that this Act take effect and be in force from and after its
6-52 passage, and it is so enacted.
6-53 * * * * *