By Madla                                               S.B. No. 933
         76R5786 KLA-F                           
                                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 is not qualified for election to the Board if
2-20     the person is:
2-21                 (1)  a physician who has staff privileges at a District
2-22     facility;
2-23                 (2)  a member of the medical staff at a District
2-24     facility; or
2-25                 (3)  employed by the District to perform services for
2-26     the District for compensation [Following the creation of the
2-27     District, as provided in Section 4 of this Act, the commissioners
 3-1     court shall appoint the first Board of Directors.  The three (3)
 3-2     directors first appointed and named shall serve for two years and
 3-3     the remaining two (2) directors appointed and named shall serve for
 3-4     one year].
 3-5           (d)  Each [Thereafter, each] year on the first Tuesday after
 3-6     the first Monday in November [of September] an election must [is
 3-7     to] be held for the purpose of electing the appropriate number of
 3-8     successor directors [to the Board.  At the first election held
 3-9     under this provision there shall be elected two (2) directors to
3-10     serve in the place of the two (2) appointed by the commissioners
3-11     court for terms of one year.  Their election shall be for terms of
3-12     two years.  At the second election held under this provision there
3-13     shall be elected three (3) directors to serve in the place of the
3-14     three (3) appointed by the commissioners court for terms of two
3-15     years. Their election shall be for terms of two years].
3-16           (e)  An [All] elected director [directors] shall serve for a
3-17     two year term.  In every case, a director [the directors] shall
3-18     serve until a [their] successor has been elected and qualified for
3-19     the office, and in every case a director shall be eligible for
3-20     re-election.
3-21           (f)  A vacancy on the Board of Directors shall be filled by
3-22     appointment for the unexpired term by a unanimous vote of the
3-23     remaining directors.  The person appointed must have the
3-24     qualifications required by this section.
3-25           (g)  A majority of the membership of the Board of Directors
3-26     constitutes a quorum for the transaction of business, and a
3-27     concurrence of a majority of the directors voting is sufficient in
 4-1     any matter relating to the business of the District.
 4-2           SECTION 4.  Section 8(c), Chapter 172, Acts of the 59th
 4-3     Legislature, Regular Session, 1965, is amended to read as follows:
 4-4           (c)  The Board may use the proceeds of this tax for the
 4-5     following purposes[, only]:
 4-6                 (1)  paying the interest on and creating a sinking fund
 4-7     for bonds issued under the provisions of this Act;
 4-8                 (2)  providing for the operation and maintenance of the
 4-9     hospital district and the hospital system;
4-10                 (3)  making improvements and additions to the hospital
4-11     system;
4-12                 (4)  acquiring sites for the additions to the hospital
4-13     system; and
4-14                 (5)  paying the indebtedness issued or assumed by the
4-15     District.
4-16           SECTION 5.  Sections 9(c) and (d), Chapter 172, Acts of the
4-17     59th Legislature, Regular Session, 1965, are amended to read as
4-18     follows:
4-19           (c)  Bonds issued by the Board must bear interest at a rate
4-20     not to exceed that provided by Chapter 3, Acts of the 61st
4-21     Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
4-22     Civil Statutes).  The Board of Directors shall not issue any bond
4-23     which matures more than 50 [40] years from the date of issuance.
4-24           (d)  The Board of Directors shall not issue any general
4-25     obligation bonds until a majority of the qualified electors of [who
4-26     own taxable property within] the District [and who have duly
4-27     rendered that property for taxation] voting in an election for this
 5-1     purpose vote for the issuance of these bonds. In any election held
 5-2     for the purpose of approving the issuance of general obligation
 5-3     bonds, the Board shall canvass the returns and declare the results
 5-4     of the election.
 5-5           SECTION 6.  Section 10, Chapter 172, Acts of the 59th
 5-6     Legislature, Regular Session, 1965, is amended to read as follows:
 5-7           Sec. 10.  BONDS, ISSUANCE, AND REDEMPTION[, AND REFUND]. (a)
 5-8     [After a majority of those persons voting at the election vote for
 5-9     the levy of a tax, the Board may issue bonds, the total of the face
5-10     value not to exceed the amount specified in the order of the
5-11     election.]
5-12           [(b)]  The president of the Board shall execute the bonds in
5-13     the name of and on behalf of the hospital district.  The secretary
5-14     of the Board of Directors shall countersign the bonds.  The
5-15     Attorney General of the State of Texas shall approve the bonds if
5-16     they meet the same requirements as provided by law for bonds issued
5-17     by a county.  The bonds are to be registered by the Comptroller of
5-18     Public Accounts of the State of Texas in the same manner as
5-19     provided by law for the registration of bonds issued by a county.
5-20     After approval and registration the bonds are incontestable for any
5-21     reason.
5-22           (b) [(c)]  The Board may not issue any general obligation
5-23     bonds unless a sufficient tax is levied to create an interest and
5-24     sinking fund to pay the interest and principal as it matures.
5-25           (c) [(d)]  All bonds issued by the District may be made
5-26     optional for redemption prior to their maturity date in the
5-27     discretion of the Board.
 6-1           [(e)  The Board may elect to refund and pay off any validly
 6-2     issued and outstanding bonds issued by the District.  However, the
 6-3     refund bonds issued must bear interest at the same or a lower rate
 6-4     than the bonds being refunded unless it is shown mathematically
 6-5     that a savings will result in the total interest to be paid.]
 6-6           (d)  The District may issue revenue bonds to:
 6-7                 (1)  acquire, construct, repair, renovate, or equip
 6-8     buildings and improvements for hospital purposes; and
 6-9                 (2)  acquire real property for District purposes.
6-10           (e)  The revenue bonds issued under Subsection (d) must be
6-11     payable from and secured by a pledge of all or part of the
6-12     District's revenues from operations of the hospital system.  The
6-13     bonds may also be secured by a mortgage or deed of trust lien on
6-14     all or part of the District's property.
6-15           (f)  The revenue bonds issued under Subsection (d) must be
6-16     issued in accordance with Sections 264.042, 264.043, 264.044,
6-17     264.045, 264.046, 264.047, 264.048, and 264.049, Health and Safety
6-18     Code, for the issuance of revenue bonds by county hospital
6-19     authorities.
6-20           (g)  The District may issue refunding bonds to refund an
6-21     outstanding indebtedness the District has issued or assumed.  The
6-22     bonds must be issued in the manner provided by Chapter 784, Acts of
6-23     the 61st Legislature, Regular Session, 1969 (Article 717k-3,
6-24     Vernon's Texas Civil Statutes).  The refunding bonds may be sold
6-25     and the proceeds applied to the payment of outstanding indebtedness
6-26     or may be exchanged in whole or in part for not less than a similar
6-27     principal amount of outstanding indebtedness.  If the refunding
 7-1     bonds are to be sold and the proceeds applied to the payment of
 7-2     outstanding indebtedness, the refunding bonds must be issued and
 7-3     payments made in the manner provided by Chapter 503, Acts of the
 7-4     54th Legislature, Regular Session, 1955 (Article 717k, Vernon's
 7-5     Texas Civil Statutes).
 7-6           (h)  District bonds and indebtedness assumed by the District
 7-7     are legal and authorized investments for:
 7-8                 (1)  banks;
 7-9                 (2)  savings banks;
7-10                 (3)  trust companies;
7-11                 (4)  savings and loan associations;
7-12                 (5)  insurance companies;
7-13                 (6)  fiduciaries;
7-14                 (7)  trustees;
7-15                 (8)  guardians; and
7-16                 (9)  sinking funds of municipalities, counties, school
7-17     districts, and other political subdivisions and public funds of the
7-18     state, including the permanent school fund.
7-19           (i)  District bonds are eligible to secure deposits of public
7-20     funds of the state and of municipalities, counties, school
7-21     districts, and other political subdivisions of the state.  The
7-22     bonds are lawful and sufficient security for deposits to the extent
7-23     of their value, if accompanied by all unmatured coupons.
7-24           (j)  Since the District created under this Act is a public
7-25     entity performing an essential public function, bonds issued by the
7-26     District, any transaction relating to the bonds, and profits made
7-27     in the sale of the bonds are free from taxation by the state or by
 8-1     any municipality, county, special district, or other political
 8-2     subdivision of the state.
 8-3           SECTION 7.  Section 11, Chapter 172, Acts of the 59th
 8-4     Legislature, Regular Session, 1965, is amended to read as follows:
 8-5           Sec. 11.  POWERS AND DUTIES OF THE BOARD OF DIRECTORS.  (a)
 8-6     The Board of Directors has full power to manage and control the
 8-7     District.  Any provision of this Act which provides a specific
 8-8     power or duty does not limit the general authority of the District
 8-9     to carry out the purposes of this Act.
8-10           (b)  The Board shall keep all books, records, accounts,
8-11     notices, minutes, and other matters of the District and its
8-12     operation at the office of the District.  The Board shall make
8-13     these items available for public inspection at reasonable times.
8-14           (c)  The Board shall adopt rules for the efficient operation
8-15     of the District and its facilities which are not inconsistent with
8-16     this Act.  The Board shall publish these rules and regulations in
8-17     book form and furnish copies to interested persons upon request and
8-18     at the expense of the District.
8-19           (d)  The Board shall require an annual independent audit of
8-20     the books and records of the District [and shall file a copy of the
8-21     audit with the Comptroller of Public Accounts and a copy with the
8-22     District not later than December 1 of each year].
8-23           (e)  The Board may:
8-24                 (1)  prescribe the method of making purchases and
8-25     expenditures and the manner of accounting and control used by the
8-26     District; and
8-27                 (2)  appoint, engage, or employ:
 9-1                       (A)  technicians, nurses, fiscal agents,
 9-2     accountants, attorneys, a [an attorney,] general manager,
 9-3     bookkeepers, architects [bookkeeper, architect], and other
 9-4     employees necessary for the efficient operation of the District;
 9-5     and
 9-6                       (B) [(3)  employ] an administrator to manage the
 9-7     operations of the District [hospital system], who may hire
 9-8     necessary personnel to support the operations of the District
 9-9     [perform the services provided by the system].
9-10           (f)  A person who is appointed, engaged, or employed under
9-11     Subsection(e)(2)(A) serves at the will of the Board and is entitled
9-12     to compensation, as determined by the Board.
9-13           (g)  The Board may delegate its authority under Subsection
9-14     (e)(2)(A) to the administrator.
9-15           (h)  The Board may require that, before assuming the duties
9-16     as administrator, a person shall execute a bond payable to the
9-17     District of not less than $10,000, as determined by the Board,
9-18     conditioned on the faithful performance of the person's duties as
9-19     administrator under this Act.  The Board may pay for the bond with
9-20     District funds.
9-21           (i) [(f)]  The Board may accept donations, gifts, and
9-22     endowments for the District.  The Board shall hold all donations,
9-23     gifts, and endowments in trust and shall administer them under any
9-24     direction, limitation, or provisions as may be prescribed in
9-25     writing by the donor, as long as it is not inconsistent with the
9-26     proper management of the District.
9-27           (j) [(g)]  The Board may enter into any contract with a
 10-1    municipality or other political subdivision or with a state or
 10-2    federal agency to provide hospital and medical care for needy
 10-3    persons who reside outside the District.
 10-4          (k)  The Board shall require:
 10-5                (1)  reimbursement from the sheriff of Maverick County
 10-6    or the police chief of a municipality in the District for the
 10-7    District's care and treatment of a person confined in a jail
 10-8    facility of the county or municipality who is not a resident of the
 10-9    District; and
10-10                (2)  reimbursement from a county, municipal, or other
10-11    public hospital located outside the boundaries of the District for
10-12    the District's care and treatment of a patient of that hospital, as
10-13    provided by Chapter 61, Health and Safety Code.
10-14          (l)  The Board may appoint to or remove a physician from the
10-15    staff of any hospital or hospital system that is a component of the
10-16    District's operations as the Board considers necessary for the
10-17    efficient operation of the District.  The Board may adopt policies
10-18    relating to the method of appointing or removing members of the
10-19    medical staff, including methods for making temporary appointments.
10-20          (m)  The Board may, consistent with applicable federal and
10-21    state laws, employ innovative methods to recruit physicians,
10-22    nurses, technicians, and other professional personnel.  The methods
10-23    may include:
10-24                (1)  scholarship programs;
10-25                (2)  agreements for future services;
10-26                (3)  shared personnel;
10-27                (4)  bonuses; and
 11-1                (5)  any other method the Board determines is
 11-2    necessary.
 11-3          (n)  The Board may provide retirement benefits for employees
 11-4    of the District by:
 11-5                (1)  establishing or administering a retirement
 11-6    program; or
 11-7                (2)  electing to participate in the Texas County and
 11-8    District Retirement System or in any other statewide retirement
 11-9    system in which the District is eligible to participate.
11-10          (o)  The Board may determine the type and extent of hospital
11-11    and medical care services offered by the District.
11-12          (p)  The Board may lease or acquire property, facilities, and
11-13    equipment for the use of the District and may mortgage or pledge
11-14    the property, facilities, or equipment as security for the payment
11-15    of the purchase price or for any other obligation of the District.
11-16          (q)  The Board may sell, lease, or otherwise dispose of
11-17    property, facilities, or equipment on behalf of the District.  Sale
11-18    or other disposal of the property, facilities, or equipment may be
11-19    at a public or private sale and must be at a price and on the terms
11-20    the Board determines are most advantageous to the district.
11-21          (r)  The Board may enter into construction contracts on
11-22    behalf of the District.  A construction contract awarded by the
11-23    District for more than $15,000 must be competitively bid, as
11-24    provided by Subchapter B, Chapter 271, Local Government Code.
11-25    Chapter 2253, Government Code, applies to construction contracts
11-26    let by the District.
11-27          (s)  The Board may enter into operating or management
 12-1    contracts with respect to any of the hospital services or medical
 12-2    care that the District may provide.
 12-3          (t)  The Board may facilitate achievement of the purpose of
 12-4    the District by creating a charitable organization to provide or
 12-5    arrange for hospital and health care services, develop resources
 12-6    for hospital and health care services, and provide ancillary
 12-7    support services for the District.  For purposes of this
 12-8    subsection, "charitable organization" means an organization that is
 12-9    exempt from federal income tax under Section 5.01(a) of the
12-10    Internal Revenue Code of 1986, as amended, by being listed as an
12-11    exempt organization in Section 501(c)(3) or  501(c)(4) of the code.
12-12    A charitable organization created by the Board under this
12-13    subsection is a unit of local government for purposes of Chapter
12-14    101, Civil Practice and Remedies Code.
12-15          SECTION 8.  Section 12, Chapter 172, Acts of the 59th
12-16    Legislature, Regular Session, 1965, is amended by amending
12-17    Subsections (b) and (d) and by adding Subsection (e) to read as
12-18    follows:
12-19          (b)  The administrator [Board] shall prepare a proposed
12-20    budget showing:
12-21                (1)  the proposed expenditures and disbursements;
12-22                (2)  the estimated receipts and collections for the
12-23    next fiscal year; and
12-24                (3)  the amount of taxes required to be levied and
12-25    collected during the next fiscal year to meet the proposed budget.
12-26          (d)  Any resident of the District [person who owns taxable
12-27    property within the District and has duly rendered that property
 13-1    for taxation] is entitled to appear at the hearing and be heard
 13-2    with reference to any item in the proposed budget.
 13-3          (e)  At the conclusion of the hearing, the Board shall adopt
 13-4    a budget for the District that includes any changes to the
 13-5    administrator's proposed budget that the Board determines are in
 13-6    the best interest of the District.
 13-7          SECTION 9.  Sections 13(c)-(g), Chapter 172, Acts of the 59th
 13-8    Legislature, Regular Session, 1965, are amended to read as follows:
 13-9          (c)  If the patient or a relative of the patient who is
13-10    legally liable for his support is able to pay for this care in
13-11    whole or in part, the administrator [Board] shall order the patient
13-12    or his relatives to pay to the treasurer each week an amount
13-13    specified in the order.  The amount must be in proportion to the
13-14    ability to pay.
13-15          (d)  The administrator [District] may collect this amount
13-16    from the estate of the patient, or from his relatives who are
13-17    liable for his support, in the manner provided by law for the
13-18    collection of expenses of the last illness of a deceased person.
13-19          (e)  [If the investigator finds that neither the patient, nor
13-20    a relative who is legally liable for his support, is able to pay in
13-21    whole or in part for this care the expense of this care becomes a
13-22    charge on the District.]
13-23          [(f)]  If there is a dispute as to the ability to pay, or a
13-24    doubt in the mind of the investigator, the Board shall hear and
13-25    determine the question, after calling witnesses, and make the
13-26    proper order based on its findings.
13-27          (f) [(g)]  A party to the hearing who is not satisfied with
 14-1    the result of the order[,] may appeal to the district court, and
 14-2    the substantial evidence rule applies to that appeal.  [The appeal
 14-3    is de novo as that term is used in appeals from the justice courts
 14-4    to the county court.]
 14-5          SECTION 10.  The importance of this legislation and the
 14-6    crowded condition of the calendars in both houses create an
 14-7    emergency and an imperative public necessity that the
 14-8    constitutional rule requiring bills to be read on three several
 14-9    days in each house be suspended, and this rule is hereby suspended,
14-10    and that this Act take effect and be in force from and after its
14-11    passage, and it is so enacted.