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                                  * * * * *