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.