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.