1-1 By: Brown S.B. No. 1595
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; March 29, 1999, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 5, Nays 0;
1-6 March 29, 1999, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1595 By: Moncrief
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the operation of the Angleton-Danbury Hospital District
1-11 of Brazoria County, Texas; authorizing the issuance of bonds.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 2, Chapter 120, Acts of the 60th
1-14 Legislature, Regular Session, 1967, is amended to read as follows:
1-15 Sec. 2. (a) The District hereby authorized to be created
1-16 shall provide for the establishment of a hospital or hospital
1-17 system within its boundaries to furnish health care services
1-18 [medical and hospital care] to persons residing in said District by
1-19 the purchase, construction, acquisition, repair or renovation of
1-20 buildings and improvements and the equipping of same and the
1-21 administration thereof for hospital purposes. Such District shall
1-22 assume full responsibility for providing medical and hospital care
1-23 for its needy inhabitants. Since there is no hospital, hospital
1-24 system or hospital facilities of any nature presently owned by
1-25 Brazoria County or any city or town within the boundaries of said
1-26 District, no provisions are made herein for the transfer of
1-27 properties or equipment or the assumption of outstanding
1-28 indebtedness heretofore incurred for hospital purposes. After
1-29 establishment of such District, no other municipality or political
1-30 subdivision in Brazoria County shall have the power to levy taxes
1-31 or issue bonds or other obligations for hospital purposes or for
1-32 providing medical care within the boundaries of the District.
1-33 (b) The hospital system may include facilities and equipment
1-34 to provide for domiciliary care and treatment of sick, injured, or
1-35 geriatric patients, outpatient clinics, rural health clinics,
1-36 convalescent home facilities, assisted living or personal care
1-37 facilities, physicians' offices, home health care services, durable
1-38 medical equipment, long-term care, skilled nursing care,
1-39 intermediate nursing care, preventive care services, ancillary
1-40 support, pharmacies, hospice care, community mental health centers,
1-41 alcohol or chemical dependency centers, or any other facility or
1-42 equipment the Board of Directors considers necessary or appropriate
1-43 for providing health care services. The District may also operate
1-44 or assist in the operation of a mobile emergency medical service as
1-45 part of the hospital system.
1-46 SECTION 2. Section 4, Chapter 120, Acts of the 60th
1-47 Legislature, Regular Session, 1967, is amended to read as follows:
1-48 Sec. 4. For the purpose of electing a District Board of
1-49 Directors, said District is hereby divided into the following three
1-50 (3) areas: Area Angleton, which shall be composed of all that
1-51 territory within Brazoria County Voting Precincts Nos. 1, 2 and 5
1-52 which lies within the boundaries of the Angleton Independent School
1-53 District and that part of Brazoria County Voting Precinct No. 6
1-54 which is west of Chocolate Bayou and within the boundaries of said
1-55 Angleton Independent School District; Area Danbury, which shall be
1-56 composed of all that territory comprising the Danbury Independent
1-57 School District; and Area Rosharon, which shall be composed of all
1-58 that territory within Brazoria County Voting Precinct No. 9 which
1-59 is not within the boundaries of the Danbury Independent School
1-60 District and all that territory within Brazoria County Voting
1-61 Precinct No. 21 which is not within the boundaries of the Manvel
1-62 Independent School District. The boundaries of said areas shall be
1-63 fixed as of January 1, 1967, and subsequent changes of the
1-64 boundaries of county voting precincts and/or school districts shall
2-1 not affect or change the boundaries of said areas as herein set
2-2 forth.
2-3 The management and control of said District is hereby and
2-4 shall be vested in a Board of Directors, which Board shall be
2-5 composed of nine (9) persons. Except for the first Board of
2-6 Directors, one member shall be a resident of [and own taxable
2-7 property in] Area Angleton (said member to be known as "Director,
2-8 Position No. 1"); one member shall be a resident of [and own
2-9 taxable property in] Area Angleton (said member to be known as
2-10 "Director, Position No. 2"); one member shall be a resident of [and
2-11 own taxable property in] Area Angleton (said member to be known as
2-12 "Director, Position No. 3"); one member shall be a resident of [and
2-13 own taxable property in] Area Angleton (said member to be known as
2-14 "Director, Position No. 4"); one member shall be a resident of [and
2-15 own taxable property in] Area Angleton (said member to be known as
2-16 "Director, Position No. 5"); one member shall be a resident of [and
2-17 own taxable property in] Area Danbury (said member to be known as
2-18 "Director, Position No. 6"); one member shall be a resident of [and
2-19 own taxable property in] Area Danbury (said member to be known as
2-20 "Director, Position No. 7"); one member shall be a resident of [and
2-21 own taxable property in] Area Rosharon (said member to be known as
2-22 "Director, Position No. 8"); and one member shall be a resident of
2-23 [and own taxable property in] the District at large (said member to
2-24 be known as "Director, Position No. 9"). At all directors
2-25 elections, all qualified voters in the District shall be permitted
2-26 to vote for directors.
2-27 Each [The following persons are hereby appointed to serve as
2-28 the District's first Board of Directors: George Kennedy, Leerie
2-29 Giese, James Holcombe, Frank T. Smith, Al Waldrep, E. E. Brewer, W.
2-30 B. Jolley, Mrs. Edith Gundy and Clyde W. Neal. As soon as
2-31 practicable after the effective date of this Act, each] member of
2-32 the [said] Board shall execute the Constitutional oath of office
2-33 and by making a good and sufficient bond, to be approved by the
2-34 Commissioners Court of Brazoria County, Texas, for $5,000 payable
2-35 to said District and conditioned upon the faithful performance of
2-36 his duties as such Director, and such oaths and bonds shall be kept
2-37 in the permanent records of said District. The [Except for said
2-38 first Board of Directors, the] bonds of said Directors shall be
2-39 approved by the District's Board of Directors. [Said first Board
2-40 of Directors shall serve until the first election of Directors, as
2-41 provided in this Act, and until their successors are elected and
2-42 qualified.]
2-43 At said creation and tax levy election mentioned in Section 3
2-44 hereof, there shall also be submitted to the resident qualified
2-45 electors of said proposed District a separate ballot containing the
2-46 names of all qualified persons who shall file their applications
2-47 with the Secretary of the District's Board of Directors, not later
2-48 than twenty (20) days prior to the date set for said election, to
2-49 have their names placed on said ballot for election to the
2-50 District's Board of Directors. Each said application shall
2-51 designate the number of the Director's position for which said
2-52 application is made. The offices of Directors of Positions Nos. 1,
2-53 3, 5, 7 and 9 shall be filled by the five persons respectively
2-54 receiving the largest number of votes cast for Director for each
2-55 respective position, and said persons shall serve until the second
2-56 Tuesday in January 1968, and until their successors are elected and
2-57 qualified. At that time a general election shall be held in said
2-58 District, and the five persons respectively receiving the largest
2-59 number of votes cast for Director for each respective position
2-60 shall serve for two years and until their successors are elected
2-61 and qualified. The offices of Directors of Positions Nos. 2, 4, 6
2-62 and 8 shall be filled by the four persons respectively receiving
2-63 the largest number of votes cast for Director for each respective
2-64 position, and said persons shall serve until the second Tuesday in
2-65 January 1969, and until their successors are elected and qualified.
2-66 At that time a general election shall be held in said District, and
2-67 the four persons respectively receiving the largest number of votes
2-68 cast for each respective position shall serve for two years and
2-69 until their successors are elected and qualified. Thereafter, a
3-1 general election shall be held in said District each year for five
3-2 Directors and four Directors, respectively, and the term of office
3-3 of each such Director shall be for a term of two years and until
3-4 his successor is elected and qualified.
3-5 SECTION 3. Section 7A, Chapter 120, Acts of the 60th
3-6 Legislature, Regular Session, 1967, is amended to read as follows:
3-7 Sec. 7A. (a) The board of directors may enter into an
3-8 operating, management, or consulting contract to obtain management
3-9 or consulting services for the District or for any portion of the
3-10 District. The contract must provide that the board retains
3-11 responsibility for and control of the District's operation. A
3-12 company providing services to the District under an operating,
3-13 management, or consulting contract, and the officers, directors,
3-14 and employees of the company, while performing services under the
3-15 contract for the benefit of the District, shall be solely employees
3-16 of the District regarding the issue of the immunity or liability of
3-17 the company and its officers, directors, and employees, and shall
3-18 have immunity or limited liability under laws applicable to
3-19 employees of the hospital district (whether statutory or common
3-20 law) to the extent an employee of the hospital district would be so
3-21 entitled under the same circumstances.
3-22 (b) The District, subject to the approval of the Board of
3-23 Directors, may provide primary care, emergency services, preventive
3-24 medical services, and other health-related services outside the
3-25 District, provided that the services serve the purpose of the
3-26 District as established by this Act.
3-27 (c) The Board of Directors may spend District funds, enter
3-28 into agreements, and take other necessary action to recruit
3-29 physicians and other persons to serve as medical staff members or
3-30 employees of the District, including:
3-31 (1) advertising and marketing;
3-32 (2) paying travel, recruitment, and relocation
3-33 expenses; and
3-34 (3) providing a loan or scholarship to a physician, or
3-35 a person currently enrolled in health care education courses at an
3-36 institution of higher education, who contractually agrees to become
3-37 a District employee or medical staff member.
3-38 (d) The Board of Directors may spend District funds, enter
3-39 into agreements, and take other necessary action to conduct,
3-40 participate in, or otherwise assist in providing health care
3-41 educational programs for current or prospective medical staff
3-42 members or employees of the District.
3-43 (e) The Board of Directors may provide retirement benefits
3-44 for employees of the District by establishing or administering a
3-45 retirement program or by participating in the Texas County and
3-46 District Retirement System or in another statewide retirement
3-47 system in which the District is eligible to participate.
3-48 SECTION 4. Section 9, Chapter 120, Acts of the 60th
3-49 Legislature, Regular Session, 1967, is amended to read as follows:
3-50 Sec. 9. The Tax Code governs the appraisal, assessment, and
3-51 collection of District taxes. The Board of Directors may provide
3-52 for the appointment of a tax assessor-collector for the District or
3-53 may contract for the assessment and collection of taxes as provided
3-54 by the Tax Code [board of directors of the district shall designate
3-55 as its assessor and collector of taxes for the district the county
3-56 tax assessor-collector and the board of directors may require that
3-57 all of the property in the district subject to district taxation
3-58 shall be assessed at a greater rate of value than the same property
3-59 is assessed for state and county purposes, provided that the
3-60 aggregate total of the assessed valuation of all such property
3-61 shall not exceed a sum equal to 150% of the aggregate total of the
3-62 assessed valuation of all such property as reflected by the tax
3-63 rolls of Brazoria County for the calendar year 1970; except that
3-64 when the aggregate total of the assessed valuation of all such
3-65 property as assessed for state and county purposes shall have
3-66 reached a sum equal to 150% of the aggregate total of the assessed
3-67 valuation of all such property as reflected by the tax rolls of
3-68 Brazoria County for the calendar year 1970, then thereafter the tax
3-69 rolls of Brazoria County as they relate to such property shall be
4-1 and shall constitute the tax rolls for the district and all tax
4-2 valuations for the district and for the county shall thereafter be
4-3 the same. Not later than October 1 of each year the board of
4-4 directors shall levy the tax on all property within the district
4-5 which is subject to taxation and shall immediately certify the rate
4-6 of such tax to the county tax assessor collector. The tax so
4-7 levied shall be collected by said assessor collector in the same
4-8 manner and under the same conditions as Brazoria County taxes.]
4-9 [The board of directors of the district shall pay annually to
4-10 Brazoria County an amount equal to 1 1/2% of the amount of taxes
4-11 annually collected by said county tax assessor collector on behalf
4-12 of the district. The county tax assessor collector shall turn over
4-13 all district taxes collected by him to the official depository of
4-14 the district.]
4-15 [The tax collections shall be deposited in the district's
4-16 depository and may be withdrawn as directed by said district's
4-17 board of directors. All other income of such district shall be
4-18 deposited in said depository. Said board shall have authority to
4-19 levy said tax for the entire year in which said district is
4-20 established to obtain funds to initiate the operation of the
4-21 district].
4-22 SECTION 5. Section 12, Chapter 120, Acts of the 60th
4-23 Legislature, Regular Session, 1967, is amended to read as follows:
4-24 Sec. 12. The Board of Directors shall have the power and
4-25 authority to issue and sell, as the obligations of such District,
4-26 and in the name and upon the faith and credit of such District,
4-27 bonds for the purchase, construction, acquisition, repair or
4-28 renovation of buildings and improvements and equipping the same for
4-29 hospital purposes and for any or all of such purposes. Said bonds
4-30 shall be sold at such time or times, in such manner, at such price
4-31 and on such terms as may be determined by said Board. A sufficient
4-32 annual tax shall be levied to create an interest and sinking fund
4-33 to pay the interest on and principal of said bonds as same mature,
4-34 providing said tax together with any other taxes levied for said
4-35 District shall not exceed a rate of seventy-five cents (75 ) on the
4-36 $100 valuation of all taxable property within said District in any
4-37 one year. Such bonds shall be executed in the name of the District
4-38 and on its behalf by the president of the Board of Directors,
4-39 countersigned by the secretary of said Board, and shall be subject
4-40 to the same requirements in the manner of approval thereof by the
4-41 Attorney General of the State of Texas and the registration thereof
4-42 by the Comptroller of Public Accounts of the State of Texas as are
4-43 by law provided for such approval and registration of bonds of
4-44 counties of this state. Upon the approval of such bonds by the
4-45 Attorney General of Texas and registration by the Comptroller, the
4-46 same shall be incontestable for any cause. Until such time as the
4-47 bond proceeds are needed to carry out the bond purpose, such
4-48 proceeds may be invested in securities of the United States
4-49 Government and Federal Agencies or may be placed on time deposit or
4-50 in Certificates of Deposit, any or all. No bonds (except refunding
4-51 bonds) shall be issued by such District until authorized by a
4-52 majority vote of the duly qualified resident electors of said
4-53 District [who own taxable property within said District and who
4-54 have duly rendered the same for taxation,] voting in an election
4-55 called and held for such purpose. Such election shall be called by
4-56 the Board of Directors on its own motion (except as provided in
4-57 Section 6), and the order calling said election shall specify the
4-58 date of same, the place or places where the election shall be held,
4-59 the presiding officers thereof, the purpose for which the bonds are
4-60 to be issued, the amount thereof, maximum interest (not to exceed
4-61 six per cent (6%) per anum), and the maximum maturity date of such
4-62 bonds (not to exceed forty (40) years from their date or dates of
4-63 issuance). Notice of said election shall be given by publishing a
4-64 substantial copy of the order calling the election in a newspaper
4-65 of general circulation within the area of such District as provided
4-66 by Section 4.003(a)(1), Election Code [once a week for two (2)
4-67 consecutive weeks, the date of the first publication to be at least
4-68 fourteen (14) days prior to the date set for said election]. Said
4-69 bonds may be made optional for redemption prior to their maturity
5-1 date at the discretion of the Board of Directors. The District
5-2 may, without election, issue bonds to refund and/or pay off any
5-3 validly issued and outstanding District bonds, provided that such
5-4 refunding bonds shall bear interest at the same rate or at a lesser
5-5 rate than the bonds being refunded, unless it be shown
5-6 mathematically that a savings will result in the total amount of
5-7 interest to be paid.
5-8 SECTION 6. Section 12A, Chapter 120, Acts of the 60th
5-9 Legislature, Regular Session, 1967, is amended by adding Subsection
5-10 (e) to read as follows:
5-11 (e) The Board of Directors may issue revenue bonds for the
5-12 purpose of purchasing, constructing, repairing, renovating, or
5-13 acquiring buildings, sites, or improvements and for the purpose of
5-14 equipping buildings, sites, and improvements for hospitals and the
5-15 hospital system. The bonds must be payable from and secured by a
5-16 pledge of all or part of the revenues derived from the operation of
5-17 the District's hospital system. The bonds may be additionally
5-18 secured by a mortgage or deed of trust on all or part of the
5-19 District property. The District shall issue revenue bonds in
5-20 accordance with Sections 264.042, 264.043, 264.046, 264.047,
5-21 264.048, and 264.049, Health and Safety Code.
5-22 SECTION 7. Chapter 120, Acts of the 60th Legislature,
5-23 Regular Session, 1967, is amended by adding Section 12B to read as
5-24 follows:
5-25 Sec. 12B. (a) The Board of Directors may borrow money for
5-26 District obligations.
5-27 (b) To secure a loan, the Board may pledge:
5-28 (1) revenues of the District that are not pledged to
5-29 pay the bonded indebtedness of the District;
5-30 (2) taxes to be levied by the District in the next
5-31 12-month period that are not pledged to pay the principal of or
5-32 interest on District bonds; or
5-33 (3) District bonds that have been authorized but not
5-34 sold.
5-35 (c) A loan for which taxes or bonds are pledged must mature
5-36 not later than the first anniversary of the date on which the loan
5-37 is made. A loan for which District revenues are pledged must
5-38 mature not later than the fifth anniversary of the date on which
5-39 the loan is made.
5-40 SECTION 8. Chapter 120, Acts of the 60th Legislature,
5-41 Regular Session, 1967, is amended by adding Section 20 to read as
5-42 follows:
5-43 Sec. 20. (a) The District may be dissolved only if the
5-44 dissolution is approved by a majority of the qualified voters of
5-45 the District voting in an election called and held for that
5-46 purpose.
5-47 (b) The Board of Directors may order an election on the
5-48 question of dissolving the District and disposing of the District's
5-49 assets and obligations. The Board shall order an election on the
5-50 question of dissolution of the District if the Board receives a
5-51 petition requesting an election that is signed by a number of
5-52 residents of the District equal to at least 15 percent of the
5-53 registered voters in the District.
5-54 (c) The election shall be held not later than the 60th day
5-55 after the date the election is ordered. Section 41.001(a),
5-56 Election Code, does not apply to an election ordered under this
5-57 section. The order calling the election must state:
5-58 (1) the nature of the election, including the
5-59 proposition that is to appear on the ballot;
5-60 (2) the date of the election;
5-61 (3) the hours during which the polls will be open; and
5-62 (4) the location of the polling places.
5-63 (d) The Board of Directors shall give notice of the election
5-64 by publishing a substantial copy of the election order in a
5-65 newspaper with general circulation in the District once a week for
5-66 two consecutive weeks. The first publication must appear at least
5-67 35 days before the date set for election. The ballot for the
5-68 election shall be printed to permit voting for or against the
5-69 proposition: "The dissolution of the Angleton-Danbury Hospital
6-1 District of Brazoria County, Texas."
6-2 (e) If a majority of the votes in the election favor
6-3 dissolution, the Board of Directors shall find that the District is
6-4 dissolved. If a majority of the votes in the election do not favor
6-5 dissolution, the Board shall continue to administer the District
6-6 and another election on the question of dissolution may not be held
6-7 before the first anniversary of the most recent election to
6-8 dissolve the District.
6-9 (f) If a majority of the votes in the election favor
6-10 dissolution, the Board of Directors shall:
6-11 (1) transfer the land, buildings, improvements,
6-12 equipment, and other assets that belong to the District to Brazoria
6-13 County or another governmental agency in Brazoria County; or
6-14 (2) administer the property, assets, and debts until
6-15 all funds have been disposed of and all District debts have been
6-16 paid or settled.
6-17 (g) If the District transfers the land, buildings,
6-18 improvements, equipment, and other assets to Brazoria County or
6-19 another governmental agency, the county or agency assumes all debts
6-20 and obligations of the District at the time of the transfer, and
6-21 the District is dissolved.
6-22 (h) After the Board of Directors finds that the District is
6-23 dissolved, the Board shall:
6-24 (1) determine the debt owed by the District; and
6-25 (2) impose on the property included in the District's
6-26 tax rolls a tax that is in proportion of the debt to the property
6-27 value.
6-28 (i) When all outstanding debts and obligations of the
6-29 District are paid, the Board of Directors shall order the secretary
6-30 to return the pro rata share of all unused tax money to each
6-31 District taxpayer.
6-32 (j) A taxpayer may request that the taxpayer's share of
6-33 surplus tax money be credited to the taxpayer's county taxes. If a
6-34 taxpayer requests the credit, the Board of Directors shall direct
6-35 the secretary to transmit the funds to the county tax
6-36 assessor-collector.
6-37 (k) After the District has paid all its debts and has
6-38 disposed of all its assets and funds as prescribed by this section,
6-39 the Board of Directors shall file a written report with the
6-40 Commissioners Court of Brazoria County setting forth a summary of
6-41 the Board's actions in dissolving the District.
6-42 (l) Not later than the 10th day after the date it receives
6-43 the report and determines that the requirements of this section
6-44 have been fulfilled, the Commissioners Court of Brazoria County
6-45 shall enter an order dissolving the District and releasing the
6-46 Board of Directors from any further duty or obligation.
6-47 (m) Notwithstanding any other provision of this section, the
6-48 District may not be dissolved unless the Board provides for the
6-49 sale or transfer of the District's assets and liabilities to
6-50 another person or entity. The dissolution of the District and the
6-51 sale or transfer of the District's assets or liabilities may not
6-52 contravene a trust indenture or bond resolution relating to the
6-53 outstanding bonds of the District. The dissolution and sale or
6-54 transfer does not diminish or impair the rights of a holder of an
6-55 outstanding bond, warrant, or other obligation of the District.
6-56 (n) The sale or transfer of the District's assets and
6-57 liabilities must satisfy the debt and bond obligations of the
6-58 District in a manner that protects the interests of the residents
6-59 of the District, including the residents' collective property
6-60 rights in the District's assets. A grant from federal funds is an
6-61 obligation to be repaid in satisfaction. The District may not
6-62 transfer or dispose of the District's assets except for due
6-63 compensation unless the transfer is made to another governmental
6-64 agency that serves the District and the transferred assets are to
6-65 be used for the benefit of the residents of the District.
6-66 SECTION 9. This Act takes effect September 1, 1999.
6-67 SECTION 10. The importance of this legislation and the
6-68 crowded condition of the calendars in both houses create an
6-69 emergency and an imperative public necessity that the
7-1 constitutional rule requiring bills to be read on three several
7-2 days in each house be suspended, and this rule is hereby suspended.
7-3 * * * * *