By: Brown S.B. No. 1595
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the operation of the Angleton-Danbury Hospital District
1-2 of Brazoria County, Texas; authorizing the issuance of bonds.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2, Chapter 120, Acts of the 60th
1-5 Legislature, Regular Session, 1967, is amended to read as follows:
1-6 Sec. 2. (a) The District hereby authorized to be created
1-7 shall provide for the establishment of a hospital or hospital
1-8 system within its boundaries to furnish health care services
1-9 [medical and hospital care] to persons residing in said District by
1-10 the purchase, construction, acquisition, repair or renovation of
1-11 buildings and improvements and the equipping of same and the
1-12 administration thereof for hospital purposes. Such District shall
1-13 assume full responsibility for providing medical and hospital care
1-14 for its needy inhabitants. Since there is no hospital, hospital
1-15 system or hospital facilities of any nature presently owned by
1-16 Brazoria County or any city or town within the boundaries of said
1-17 District, no provisions are made herein for the transfer of
1-18 properties or equipment or the assumption of outstanding
1-19 indebtedness heretofore incurred for hospital purposes. After
1-20 establishment of such District, no other municipality or political
1-21 subdivision in Brazoria County shall have the power to levy taxes
1-22 or issue bonds or other obligations for hospital purposes or for
1-23 providing medical care within the boundaries of the District.
1-24 (b) The hospital system may include facilities and equipment
2-1 to provide for domiciliary care and treatment of sick, injured, or
2-2 geriatric patients, outpatient clinics, rural health clinics,
2-3 convalescent home facilities, assisted living or personal care
2-4 facilities, physicians' offices, home health care services, durable
2-5 medical equipment, long-term care, skilled nursing care,
2-6 intermediate nursing care, preventive care services, ancillary
2-7 support, pharmacies, hospice care, community mental health centers,
2-8 alcohol or chemical dependency centers, or any other facility or
2-9 equipment the Board of Directors considers necessary or appropriate
2-10 for providing health care services. The District may also operate
2-11 or assist in the operation of a mobile emergency medical service as
2-12 part of the hospital system.
2-13 SECTION 2. Section 4, Chapter 120, Acts of the 60th
2-14 Legislature, Regular Session, 1967, is amended to read as follows:
2-15 Sec. 4. For the purpose of electing a District Board of
2-16 Directors, said District is hereby divided into the following three
2-17 (3) areas: Area Angleton, which shall be composed of all that
2-18 territory within Brazoria County Voting Precincts Nos. 1, 2 and 5
2-19 which lies within the boundaries of the Angleton Independent School
2-20 District and that part of Brazoria County Voting Precinct No. 6
2-21 which is west of Chocolate Bayou and within the boundaries of said
2-22 Angleton Independent School District; Area Danbury, which shall be
2-23 composed of all that territory comprising the Danbury Independent
2-24 School District; and Area Rosharon, which shall be composed of all
2-25 that territory within Brazoria County Voting Precinct No. 9 which
2-26 is not within the boundaries of the Danbury Independent School
3-1 District and all that territory within Brazoria County Voting
3-2 Precinct No. 21 which is not within the boundaries of the Manvel
3-3 Independent School District. The boundaries of said areas shall be
3-4 fixed as of January 1, 1967, and subsequent changes of the
3-5 boundaries of county voting precincts and/or school districts shall
3-6 not affect or change the boundaries of said areas as herein set
3-7 forth.
3-8 The management and control of said District is hereby and
3-9 shall be vested in a Board of Directors, which Board shall be
3-10 composed of nine (9) persons. Except for the first Board of
3-11 Directors, one member shall be a resident of [and own taxable
3-12 property in] Area Angleton (said member to be known as "Director,
3-13 Position No. 1"); one member shall be a resident of [and own
3-14 taxable property in] Area Angleton (said member to be known as
3-15 "Director, Position No. 2"); one member shall be a resident of [and
3-16 own taxable property in] Area Angleton (said member to be known as
3-17 "Director, Position No. 3"); one member shall be a resident of [and
3-18 own taxable property in] Area Angleton (said member to be known as
3-19 "Director, Position No. 4"); one member shall be a resident of [and
3-20 own taxable property in] Area Angleton (said member to be known as
3-21 "Director, Position No. 5"); one member shall be a resident of [and
3-22 own taxable property in] Area Danbury (said member to be known as
3-23 "Director, Position No. 6"); one member shall be a resident of [and
3-24 own taxable property in] Area Danbury (said member to be known as
3-25 "Director, Position No. 7"); one member shall be a resident of [and
3-26 own taxable property in] Area Rosharon (said member to be known as
4-1 "Director, Position No. 8"); and one member shall be a resident of
4-2 [and own taxable property in] the District at large (said member to
4-3 be known as "Director, Position No. 9"). At all directors
4-4 elections, all qualified voters in the District shall be permitted
4-5 to vote for directors.
4-6 Each [The following persons are hereby appointed to serve as
4-7 the District's first Board of Directors: George Kennedy, Leerie
4-8 Giese, James Holcombe, Frank T. Smith, Al Waldrep, E. E. Brewer, W.
4-9 B. Jolley, Mrs. Edith Gundy and Clyde W. Neal. As soon as
4-10 practicable after the effective date of this Act, each] member of
4-11 the [said] Board shall execute the Constitutional oath of office
4-12 and by making a good and sufficient bond, to be approved by the
4-13 Commissioners Court of Brazoria County, Texas, for $5,000 payable
4-14 to said District and conditioned upon the faithful performance of
4-15 his duties as such Director, and such oaths and bonds shall be kept
4-16 in the permanent records of said District. The [Except for said
4-17 first Board of Directors, the] bonds of said Directors shall be
4-18 approved by the District's Board of Directors. [Said first Board
4-19 of Directors shall serve until the first election of Directors, as
4-20 provided in this Act, and until their successors are elected and
4-21 qualified.]
4-22 At said creation and tax levy election mentioned in Section 3
4-23 hereof, there shall also be submitted to the resident qualified
4-24 electors of said proposed District a separate ballot containing the
4-25 names of all qualified persons who shall file their applications
4-26 with the Secretary of the District's Board of Directors, not later
5-1 than twenty (20) days prior to the date set for said election, to
5-2 have their names placed on said ballot for election to the
5-3 District's Board of Directors. Each said application shall
5-4 designate the number of the Director's position for which said
5-5 application is made. The offices of Directors of Positions Nos. 1,
5-6 3, 5, 7 and 9 shall be filled by the five persons respectively
5-7 receiving the largest number of votes cast for Director for each
5-8 respective position, and said persons shall serve until the second
5-9 Tuesday in January 1968, and until their successors are elected and
5-10 qualified. At that time a general election shall be held in said
5-11 District, and the five persons respectively receiving the largest
5-12 number of votes cast for Director for each respective position
5-13 shall serve for two years and until their successors are elected
5-14 and qualified. The offices of Directors of Positions Nos. 2, 4, 6
5-15 and 8 shall be filled by the four persons respectively receiving
5-16 the largest number of votes cast for Director for each respective
5-17 position, and said persons shall serve until the second Tuesday in
5-18 January 1969, and until their successors are elected and qualified.
5-19 At that time a general election shall be held in said District, and
5-20 the four persons respectively receiving the largest number of votes
5-21 cast for each respective position shall serve for two years and
5-22 until their successors are elected and qualified. Thereafter, a
5-23 general election shall be held in said District each year for five
5-24 Directors and four Directors, respectively, and the term of office
5-25 of each such Director shall be for a term of two years and until
5-26 his successor is elected and qualified.
6-1 SECTION 3. Section 7A, Chapter 120, Acts of the 60th
6-2 Legislature, Regular Session, 1967, is amended to read as follows:
6-3 Sec. 7A. (a) The board of directors may enter into an
6-4 operating, management, or consulting contract to obtain management
6-5 or consulting services for the District or for any portion of the
6-6 District. The contract must provide that the board retains
6-7 responsibility for and control of the District's operation. A
6-8 company providing services to the District under an operating,
6-9 management, or consulting contract, and the officers, directors,
6-10 and employees of the company, while performing services under the
6-11 contract for the benefit of the District, shall be solely employees
6-12 of the District regarding the issue of the immunity or liability of
6-13 the company and its officers, directors, and employees, and shall
6-14 have immunity or limited liability under laws applicable to
6-15 employees of the hospital district (whether statutory or common
6-16 law) to the extent an employee of the hospital district would be so
6-17 entitled under the same circumstances.
6-18 (b) The District, subject to the approval of the Board of
6-19 Directors, may provide primary care, emergency services, preventive
6-20 medical services, and other health-related services outside the
6-21 District, provided that the services serve the purpose of the
6-22 District as established by this Act.
6-23 (c) The Board of Directors may spend District funds, enter
6-24 into agreements, and take other necessary action to recruit
6-25 physicians and other persons to serve as medical staff members or
6-26 employees of the District, including:
7-1 (1) advertising and marketing;
7-2 (2) paying travel, recruitment, and relocation
7-3 expenses; and
7-4 (3) providing a loan or scholarship to a physician, or
7-5 a person currently enrolled in health care education courses at an
7-6 institution of higher education, who contractually agrees to become
7-7 a District employee or medical staff member.
7-8 (d) The Board of Directors may spend District funds, enter
7-9 into agreements, and take other necessary action to conduct,
7-10 participate in, or otherwise assist in providing health care
7-11 educational programs for current or prospective medical staff
7-12 members or employees of the District.
7-13 (e) The Board of Directors may provide retirement benefits
7-14 for employees of the District by establishing or administering a
7-15 retirement program or by participating in the Texas County and
7-16 District Retirement System or in another statewide retirement
7-17 system in which the District is eligible to participate.
7-18 SECTION 4. Section 9, Chapter 120, Acts of the 60th
7-19 Legislature, Regular Session, 1967, is amended to read as follows:
7-20 Sec. 9. The Tax Code governs the appraisal, assessment, and
7-21 collection of District taxes. The Board of Directors may provide
7-22 for the appointment of a tax assessor-collector for the District or
7-23 may contract for the assessment and collection of taxes as provided
7-24 by the Tax Code [board of directors of the district shall designate
7-25 as its assessor and collector of taxes for the district the county
7-26 tax assessor-collector and the board of directors may require that
8-1 all of the property in the district subject to district taxation
8-2 shall be assessed at a greater rate of value than the same property
8-3 is assessed for state and county purposes, provided that the
8-4 aggregate total of the assessed valuation of all such property
8-5 shall not exceed a sum equal to 150% of the aggregate total of the
8-6 assessed valuation of all such property as reflected by the tax
8-7 rolls of Brazoria County for the calendar year 1970; except that
8-8 when the aggregate total of the assessed valuation of all such
8-9 property as assessed for state and county purposes shall have
8-10 reached a sum equal to 150% of the aggregate total of the assessed
8-11 valuation of all such property as reflected by the tax rolls of
8-12 Brazoria County for the calendar year 1970, then thereafter the tax
8-13 rolls of Brazoria County as they relate to such property shall be
8-14 and shall constitute the tax rolls for the district and all tax
8-15 valuations for the district and for the county shall thereafter be
8-16 the same. Not later than October 1 of each year the board of
8-17 directors shall levy the tax on all property within the district
8-18 which is subject to taxation and shall immediately certify the rate
8-19 of such tax to the county tax assessor collector. The tax so
8-20 levied shall be collected by said assessor collector in the same
8-21 manner and under the same conditions as Brazoria County taxes.]
8-22 [The board of directors of the district shall pay annually to
8-23 Brazoria County an amount equal to 1 1/2% of the amount of taxes
8-24 annually collected by said county tax assessor collector on behalf
8-25 of the district. The county tax assessor collector shall turn over
8-26 all district taxes collected by him to the official depository of
9-1 the district.]
9-2 [The tax collections shall be deposited in the district's
9-3 depository and may be withdrawn as directed by said district's
9-4 board of directors. All other income of such district shall be
9-5 deposited in said depository. Said board shall have authority to
9-6 levy said tax for the entire year in which said district is
9-7 established to obtain funds to initiate the operation of the
9-8 district].
9-9 SECTION 5. Section 12, Chapter 120, Acts of the 60th
9-10 Legislature, Regular Session, 1967, is amended to read as follows:
9-11 Sec. 12. The Board of Directors shall have the power and
9-12 authority to issue and sell, as the obligations of such District,
9-13 and in the name and upon the faith and credit of such District,
9-14 bonds for the purchase, construction, acquisition, repair or
9-15 renovation of buildings and improvements and equipping the same for
9-16 hospital purposes and for any or all of such purposes. Said bonds
9-17 shall be sold at such time or times, in such manner, at such price
9-18 and on such terms as may be determined by said Board. A sufficient
9-19 annual tax shall be levied to create an interest and sinking fund
9-20 to pay the interest on and principal of said bonds as same mature,
9-21 providing said tax together with any other taxes levied for said
9-22 District shall not exceed a rate of seventy-five cents (75 ) on the
9-23 $100 valuation of all taxable property within said District in any
9-24 one year. Such bonds shall be executed in the name of the District
9-25 and on its behalf by the president of the Board of Directors,
9-26 countersigned by the secretary of said Board, and shall be subject
10-1 to the same requirements in the manner of approval thereof by the
10-2 Attorney General of the State of Texas and the registration thereof
10-3 by the Comptroller of Public Accounts of the State of Texas as are
10-4 by law provided for such approval and registration of bonds of
10-5 counties of this state. Upon the approval of such bonds by the
10-6 Attorney General of Texas and registration by the Comptroller, the
10-7 same shall be incontestable for any cause. Until such time as the
10-8 bond proceeds are needed to carry out the bond purpose, such
10-9 proceeds may be invested in securities of the United States
10-10 Government and Federal Agencies or may be placed on time deposit or
10-11 in Certificates of Deposit, any or all. No bonds (except refunding
10-12 bonds) shall be issued by such District until authorized by a
10-13 majority vote of the duly qualified resident electors of said
10-14 District [who own taxable property within said District and who
10-15 have duly rendered the same for taxation,] voting in an election
10-16 called and held for such purpose. Such election shall be called by
10-17 the Board of Directors on its own motion (except as provided in
10-18 Section 6), and the order calling said election shall specify the
10-19 date of same, the place or places where the election shall be held,
10-20 the presiding officers thereof, the purpose for which the bonds are
10-21 to be issued, the amount thereof, maximum interest (not to exceed
10-22 six per cent (6%) per anum), and the maximum maturity date of such
10-23 bonds (not to exceed forty (40) years from their date or dates of
10-24 issuance). Notice of said election shall be given by publishing a
10-25 substantial copy of the order calling the election in a newspaper
10-26 of general circulation within the area of such District as provided
11-1 by Section 4.003(a)(1), Election Code [once a week for two (2)
11-2 consecutive weeks, the date of the first publication to be at least
11-3 fourteen (14) days prior to the date set for said election]. Said
11-4 bonds may be made optional for redemption prior to their maturity
11-5 date at the discretion of the Board of Directors. The District
11-6 may, without election, issue bonds to refund and/or pay off any
11-7 validly issued and outstanding District bonds, provided that such
11-8 refunding bonds shall bear interest at the same rate or at a lesser
11-9 rate than the bonds being refunded, unless it be shown
11-10 mathematically that a savings will result in the total amount of
11-11 interest to be paid.
11-12 SECTION 6. Section 12A, Chapter 120, Acts of the 60th
11-13 Legislature, Regular Session, 1967, is amended by adding Subsection
11-14 (e) to read as follows:
11-15 (e) The Board of Directors may issue revenue bonds for the
11-16 purpose of purchasing, constructing, repairing, renovating, or
11-17 acquiring buildings, sites, or improvements and for the purpose of
11-18 equipping buildings, sites, and improvements for hospitals and the
11-19 hospital system. The bonds must be payable from and secured by a
11-20 pledge of all or part of the revenues derived from the operation of
11-21 the District's hospital system. The bonds may be additionally
11-22 secured by a mortgage or deed of trust on all or part of the
11-23 District property. The District shall issue revenue bonds in
11-24 accordance with Sections 264.042, 264.043, 264.046, 264.047,
11-25 264.048, and 264.049, Health and Safety Code.
11-26 SECTION 7. Chapter 120, Acts of the 60th Legislature,
12-1 Regular Session, 1967, is amended by adding Section 12B to read as
12-2 follows:
12-3 Sec. 12B. (a) The Board of Directors may borrow money for
12-4 District obligations.
12-5 (b) To secure a loan, the Board may pledge:
12-6 (1) revenues of the District that are not pledged to
12-7 pay the bonded indebtedness of the District;
12-8 (2) taxes to be levied by the District in the next
12-9 12-month period that are not pledged to pay the principal of or
12-10 interest on District bonds; or
12-11 (3) District bonds that have been authorized but not
12-12 sold.
12-13 (c) A loan for which taxes or bonds are pledged must mature
12-14 not later than the first anniversary of the date on which the loan
12-15 is made. A loan for which District revenues are pledged must
12-16 mature not later than the fifth anniversary of the date on which
12-17 the loan is made.
12-18 SECTION 8. Chapter 120, Acts of the 60th Legislature,
12-19 Regular Session, 1967, is amended by adding Section 20 to read as
12-20 follows:
12-21 Sec. 20. (a) The District may be dissolved only if the
12-22 dissolution is approved by a majority of the qualified voters of
12-23 the District voting in an election called and held for that
12-24 purpose.
12-25 (b) The Board of Directors may order an election on the
12-26 question of dissolving the District and disposing of the District's
13-1 assets and obligations. The Board shall order an election on the
13-2 question of dissolution of the District if the Board receives a
13-3 petition requesting an election that is signed by a number of
13-4 residents of the District equal to at least 15 percent of the
13-5 registered voters in the District.
13-6 (c) The election shall be held not later than the 60th day
13-7 after the date the election is ordered. Section 41.001(a),
13-8 Election Code, does not apply to an election ordered under this
13-9 section. The order calling the election must state:
13-10 (1) the nature of the election, including the
13-11 proposition that is to appear on the ballot;
13-12 (2) the date of the election;
13-13 (3) the hours during which the polls will be open; and
13-14 (4) the location of the polling places.
13-15 (d) The Board of Directors shall give notice of the election
13-16 by publishing a substantial copy of the election order in a
13-17 newspaper with general circulation in the District once a week for
13-18 two consecutive weeks. The first publication must appear at least
13-19 35 days before the date set for election. The ballot for the
13-20 election shall be printed to permit voting for or against the
13-21 proposition: "The dissolution of the Angleton-Danbury Hospital
13-22 District of Brazoria County, Texas."
13-23 (e) If a majority of the votes in the election favor
13-24 dissolution, the Board of Directors shall find that the District is
13-25 dissolved. If a majority of the votes in the election do not favor
13-26 dissolution, the Board shall continue to administer the District
14-1 and another election on the question of dissolution may not be held
14-2 before the first anniversary of the most recent election to
14-3 dissolve the District.
14-4 (f) If a majority of the votes in the election favor
14-5 dissolution, the Board of Directors shall:
14-6 (1) transfer the land, buildings, improvements,
14-7 equipment, and other assets that belong to the District to Brazoria
14-8 County or another governmental agency in Brazoria County; or
14-9 (2) administer the property, assets, and debts until
14-10 all funds have been disposed of and all District debts have been
14-11 paid or settled.
14-12 (g) If the District transfers the land, buildings,
14-13 improvements, equipment, and other assets to Brazoria County or
14-14 another governmental agency, the county or agency assumes all debts
14-15 and obligations of the District at the time of the transfer, and
14-16 the District is dissolved.
14-17 (h) After the Board of Directors finds that the District is
14-18 dissolved, the Board shall:
14-19 (1) determine the debt owed by the District; and
14-20 (2) impose on the property included in the District's
14-21 tax rolls a tax that is in proportion of the debt to the property
14-22 value.
14-23 (i) When all outstanding debts and obligations of the
14-24 District are paid, the Board of Directors shall order the secretary
14-25 to return the pro rata share of all unused tax money to each
14-26 District taxpayer.
15-1 (j) A taxpayer may request that the taxpayer's share of
15-2 surplus tax money be credited to the taxpayer's county taxes. If a
15-3 taxpayer requests the credit, the Board of Directors shall direct
15-4 the secretary to transmit the funds to the county tax
15-5 assessor-collector.
15-6 (k) After the District has paid all its debts and has
15-7 disposed of all its assets and funds as prescribed by this section,
15-8 the Board of Directors shall file a written report with the
15-9 Commissioners Court of Brazoria County setting forth a summary of
15-10 the Board's actions in dissolving the District.
15-11 (l) Not later than the 10th day after the date it receives
15-12 the report and determines that the requirements of this section
15-13 have been fulfilled, the Commissioners Court of Brazoria County
15-14 shall enter an order dissolving the District and releasing the
15-15 Board of Directors from any further duty or obligation.
15-16 (m) Notwithstanding any other provision of this section, the
15-17 District may not be dissolved unless the Board provides for the
15-18 sale or transfer of the District's assets and liabilities to
15-19 another person or entity. The dissolution of the District and the
15-20 sale or transfer of the District's assets or liabilities may not
15-21 contravene a trust indenture or bond resolution relating to the
15-22 outstanding bonds of the District. The dissolution and sale or
15-23 transfer does not diminish or impair the rights of a holder of an
15-24 outstanding bond, warrant, or other obligation of the District.
15-25 (n) The sale or transfer of the District's assets and
15-26 liabilities must satisfy the debt and bond obligations of the
16-1 District in a manner that protects the interests of the residents
16-2 of the District, including the residents' collective property
16-3 rights in the District's assets. A grant from federal funds is an
16-4 obligation to be repaid in satisfaction. The District may not
16-5 transfer or dispose of the District's assets except for due
16-6 compensation unless the transfer is made to another governmental
16-7 agency that serves the District and the transferred assets are to
16-8 be used for the benefit of the residents of the District.
16-9 SECTION 9. This Act takes effect September 1, 1999.
16-10 SECTION 10. The importance of this legislation and the
16-11 crowded condition of the calendars in both houses create an
16-12 emergency and an imperative public necessity that the
16-13 constitutional rule requiring bills to be read on three several
16-14 days in each house be suspended, and this rule is hereby suspended.