By: Lucio S.B. No. 1615
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation and operation of health services
1-2 districts; granting the authority to issue bonds.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle D, Title 4, Health and Safety Code, is
1-5 amended by adding Chapter 287 to read as follows:
1-6 CHAPTER 287. HEALTH SERVICES DISTRICTS
1-7 SUBCHAPTER A. GENERAL PROVISIONS
1-8 Sec. 287.001. DEFINITIONS. In this chapter:
1-9 (1) "Board" means the board of directors of a
1-10 district.
1-11 (2) "District" means a health services district
1-12 created under this chapter.
1-13 (3) "Director" means a member of the board.
1-14 Sec. 287.002. DISTRICT AUTHORIZATION. A health services
1-15 district may be created and established and, if created, must be
1-16 maintained, operated, and financed in the manner provided by this
1-17 chapter.
1-18 (Sections 287.003-287.020 reserved for expansion)
1-19 SUBCHAPTER B. CREATION OF DISTRICT
1-20 Sec. 287.021. CREATION BY CONCURRENT ORDERS. (a) Except as
1-21 provided by Subsection (b), a county or hospital district and one
1-22 or more other counties or hospital districts may create a health
1-23 services district by adopting concurrent orders.
1-24 (b) A county or portion of a county that is in the
2-1 boundaries of a hospital district may not be a party to the
2-2 creation of a health services district or to a contract with a
2-3 health services district. The hospital district that serves the
2-4 county or portion of the county may create and contract with the
2-5 health services district for the boundaries of the hospital
2-6 district.
2-7 (c) A concurrent order to create a health services district
2-8 must:
2-9 (1) be approved by the governing body of each creating
2-10 county and hospital district;
2-11 (2) contain identical provisions; and
2-12 (3) define the boundaries of the district to be
2-13 coextensive with the combined boundaries of each creating county
2-14 and hospital district.
2-15 (d) A concurrent order to create a health services district
2-16 adopted by a hospital district for which the tax rate is set by the
2-17 commissioners court of the county in which the hospital district
2-18 operates must be approved by the commissioners court of that
2-19 county.
2-20 Sec. 287.022. CONTRACT TERMS. (a) A county or hospital
2-21 district that creates a district under this chapter shall contract
2-22 with the district to provide, at a minimum, the health care
2-23 services the county or hospital district is required to provide by
2-24 law or under the constitution. A contract with a county or
2-25 hospital district that created the health services district under
2-26 this chapter must:
3-1 (1) state the term of the contract, not to exceed six
3-2 years;
3-3 (2) specify the purpose, terms, rights, and duties of
3-4 the district, as authorized by this chapter;
3-5 (3) specify the financial contributions to be made by
3-6 each party to the contract to fund the district, as described by
3-7 Section 287.024; and
3-8 (4) specify the land, buildings, improvements,
3-9 equipment, and other assets owned by a party to the contract that
3-10 the district will be required to manage and operate.
3-11 (b) Chapter 791, Government Code, does not apply to a
3-12 contract made under this chapter.
3-13 Sec. 287.023. PURPOSE AND DUTIES. (a) A health services
3-14 district shall:
3-15 (1) provide health care services to indigent residents
3-16 of the district;
3-17 (2) manage the funds contributed to the district by
3-18 each county or hospital district that contracts with the district;
3-19 and
3-20 (3) plan and coordinate with public and private health
3-21 care providers and entities for the long-term provision of health
3-22 care services to residents of the district.
3-23 (b) A health services district may:
3-24 (1) provide health care services on a sliding-fee
3-25 scale to residents of the district who do not meet the basic income
3-26 and resources requirements established under Sections 61.006 and
4-1 61.008 to be eligible for assistance under Chapter 61 but who are
4-2 unable to pay for the full cost of health care services; and
4-3 (2) assume responsibility for management and operation
4-4 of the land, buildings, improvements, equipment, and other assets
4-5 that are acquired by the district or for which the district agrees
4-6 to assume responsibility under the terms of the contract.
4-7 Sec. 287.024. FUNDING. (a) Each county or hospital
4-8 district that contracts with the district shall contribute to the
4-9 district for its operation:
4-10 (1) a specified dollar amount from or a percentage of
4-11 the contracting entity's operating budget and reserves if the
4-12 contracting entity is a hospital district;
4-13 (2) a specified percentage, not less than the
4-14 percentage required under Section 61.037 for state assistance, of
4-15 the contracting entity's general revenue levy for each state fiscal
4-16 year for the term of the contract, if the contracting entity is a
4-17 county;
4-18 (3) state assistance received under Chapter 61;
4-19 (4) federal matching funds received by a hospital
4-20 district under the Medicaid disproportionate share program; and
4-21 (5) any funds that are:
4-22 (A) received under the Agreement Regarding
4-23 Disposition of Settlement Proceeds dated July 18, 1998, or
4-24 July 24, 1998, and filed in the United States District Court,
4-25 Eastern District of Texas, in the case styled The State of Texas v.
4-26 The American Tobacco Company, et al., No. 5-96CV-91; and
5-1 (B) received on or after the date on which the
5-2 district is created and before the district is dissolved.
5-3 (b) The district shall maintain an accounting of the funds
5-4 received from each county or hospital district that contracts with
5-5 the district.
5-6 (c) The district may administer the financial contributions
5-7 of all parties to the contract for district purposes.
5-8 (Sections 287.025-287.040 reserved for expansion)
5-9 SUBCHAPTER C. DISTRICT ADMINISTRATION
5-10 Sec. 287.041. BOARD OF DIRECTORS. (a) A county or hospital
5-11 district that creates the district and has a population of 125,000
5-12 or more shall appoint one director to the board for every 125,000
5-13 persons in the population of the county or hospital district,
5-14 rounded to the nearest 125,000.
5-15 (b) A county or hospital district that creates the district
5-16 and has a population of less than 125,000 may appoint one director
5-17 to the board.
5-18 (c) The county judges of a county that creates the district
5-19 shall appoint the directors to the board on behalf of the county.
5-20 The board of directors of a hospital district that creates the
5-21 district shall appoint the directors to the board on behalf of the
5-22 hospital district.
5-23 (d) Directors serve staggered two-year terms, with as near
5-24 as possible to one-half of the directors' terms expiring each year.
5-25 (e) The number of directors appointed to the board by each
5-26 county or hospital district that creates the district is determined
6-1 at the time of the initial appointment of directors under this
6-2 section and does not vary with subsequent variations in the
6-3 population of the county or hospital district.
6-4 Sec. 287.042. QUALIFICATIONS FOR OFFICE. (a) To be
6-5 eligible to serve as a director, a person must be a resident of the
6-6 county or hospital district that appoints the person under Section
6-7 287.041.
6-8 (b) An employee of the district may not serve as a director.
6-9 Sec. 287.043. BOND. (a) Before assuming the duties of the
6-10 office, each director must execute a bond for $5,000 payable to the
6-11 district, conditioned on the faithful performance of the person's
6-12 duties as director.
6-13 (b) The bond shall be kept in the permanent records of the
6-14 district.
6-15 (c) The board may pay for directors' bonds with district
6-16 funds.
6-17 Sec. 287.044. BOARD VACANCY. A vacancy in the office of
6-18 director shall be filled for the unexpired term in the same manner
6-19 as the original appointment.
6-20 Sec. 287.045. OFFICERS. (a) The board shall elect from
6-21 among its members a president and a vice president.
6-22 (b) The board shall appoint a secretary, who need not be a
6-23 director.
6-24 Sec. 287.046. OFFICERS' TERMS; VACANCY. (a) Each officer
6-25 of the board serves for a term of one year.
6-26 (b) The board shall fill a vacancy in a board office for the
7-1 unexpired term.
7-2 Sec. 287.047. COMPENSATION. (a) Directors and officers
7-3 serve without compensation but may be reimbursed for actual
7-4 expenses incurred in the performance of official duties.
7-5 (b) Expenses reimbursed under this section must be:
7-6 (1) reported in the district's minute book or other
7-7 district records; and
7-8 (2) approved by the board.
7-9 Sec. 287.048. VOTING REQUIREMENT. A majority of the members
7-10 of the board voting must concur in a matter relating to the
7-11 business of the district.
7-12 Sec. 287.049. ADMINISTRATOR AND ADDITIONAL STAFF. (a) The
7-13 board may appoint qualified persons as administrator of the
7-14 district and as additional administrative staff members as the
7-15 board considers necessary for the efficient operation of the
7-16 district.
7-17 (b) The administrator and other administrative staff members
7-18 serve at the will of the board.
7-19 (c) The administrator and other administrative staff members
7-20 are entitled to compensation as determined by the board.
7-21 (d) Before assuming the administrator's duties, the
7-22 administrator shall execute a bond payable to the health services
7-23 district in an amount not less than $5,000 as determined by the
7-24 board, conditioned on the faithful performance of the
7-25 administrator's duties under this chapter. The board may pay for
7-26 the bond with district funds.
8-1 Sec. 287.050. APPOINTMENTS TO STAFF. The board may:
8-2 (1) appoint to the staff any doctors the board
8-3 considers necessary for the efficient operation of the district;
8-4 and
8-5 (2) make temporary appointments the board considers
8-6 necessary.
8-7 Sec. 287.051. TECHNICIANS, NURSES, AND OTHER DISTRICT
8-8 EMPLOYEES. (a) The district may employ technicians, nurses,
8-9 fiscal agents, accountants, architects, additional attorneys, and
8-10 other necessary employees.
8-11 (b) The board may delegate to the administrator the
8-12 authority to employ persons for the district.
8-13 Sec. 287.052. GENERAL DUTIES OF ADMINISTRATOR. The
8-14 administrator shall:
8-15 (1) supervise the work and activities of the district;
8-16 and
8-17 (2) direct the general affairs of the district,
8-18 subject to the limitations prescribed by the board.
8-19 Sec. 287.053. RETIREMENT BENEFITS. The board may provide
8-20 retirement benefits for employees of the district by:
8-21 (1) establishing or administering a retirement
8-22 program; or
8-23 (2) electing to participate in the Texas County and
8-24 District Retirement System or in any other statewide retirement
8-25 system in which the district is eligible to participate.
9-1 (Sections 287.054-287.070 reserved for expansion
9-2 SUBCHAPTER D. POWERS AND DUTIES
9-3 Sec. 287.071. RESPONSIBILITY OF GOVERNMENTAL ENTITY. On
9-4 creation of a district, a county or hospital district that creates
9-5 the district may transfer to the district:
9-6 (1) management and operation of any land, buildings,
9-7 improvements, and equipment related to the health care system
9-8 located wholly in the district that are owned by the county or
9-9 hospital district in which the district is located, as specified in
9-10 the contract with the counties and hospital districts that created
9-11 the district; and
9-12 (2) operating funds and reserves for operating
9-13 expenses and funds that have been budgeted by the county or
9-14 hospital district in which the district is located to provide
9-15 medical care for residents of the district, as specified in the
9-16 contract with the counties and hospital districts that created the
9-17 district.
9-18 Sec. 287.072. DISTRICT RESPONSIBILITIES. On creation of a
9-19 district, the district assumes the duties required under Section
9-20 287.023 and any additional duties specified in the contract with
9-21 the counties and hospital districts that created the district.
9-22 Sec. 287.073. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
9-23 board shall manage, control, and administer the health care system
9-24 and the funds and resources of the district that are transferred
9-25 under Section 287.071.
9-26 Sec. 287.074. DISTRICT RULES. The board may adopt rules
10-1 governing the operation of the district and the duties, functions,
10-2 and responsibilities of district staff and employees.
10-3 Sec. 287.075. METHODS AND PROCEDURES. The board may
10-4 prescribe:
10-5 (1) the method of making purchases and expenditures by
10-6 and for the district; and
10-7 (2) accounting and control procedures for the
10-8 district.
10-9 Sec. 287.076. HEALTH CARE PROPERTY, FACILITIES, AND
10-10 EQUIPMENT. (a) The board shall determine:
10-11 (1) the type, number, and location of buildings
10-12 required to establish and maintain an adequate health care system;
10-13 and
10-14 (2) the type of equipment necessary for health care.
10-15 (b) The board may:
10-16 (1) acquire property, facilities, and equipment for
10-17 the district for use in the health care system;
10-18 (2) mortgage or pledge the property, facilities, or
10-19 equipment acquired as security for the payment of the purchase
10-20 price;
10-21 (3) transfer by lease to physicians, individuals,
10-22 companies, corporations, or other legal entities or acquire by
10-23 lease district health care facilities;
10-24 (4) sell or otherwise dispose of property, facilities,
10-25 or equipment acquired by the district; and
10-26 (5) contract with a state agency or other qualified
11-1 provider to provide services.
11-2 Sec. 287.077. CONSTRUCTION CONTRACTS. (a) The board may
11-3 enter into construction contracts for the district.
11-4 (b) The board may enter into construction contracts that
11-5 involve spending more than $10,000 only after competitive bidding
11-6 as provided by Subchapter B, Chapter 271, Local Government Code.
11-7 (c) Chapter 2253, Government Code, as it relates to
11-8 performance and payment bonds, applies to construction contracts
11-9 let by the district.
11-10 Sec. 287.078. DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
11-11 The board may enter into operating or management contracts relating
11-12 to health care facilities owned by the district or for which the
11-13 district assumes responsibility for managing and operating under
11-14 the terms of the contract with the counties and hospital districts
11-15 that created the district.
11-16 Sec. 287.079. PAYMENT FOR HEALTH CARE SERVICES. (a) The
11-17 district without charge shall supply to a patient residing in the
11-18 district the care and treatment that the patient or a relative of
11-19 the patient who is legally responsible for the patient's support
11-20 cannot pay.
11-21 (b) Not later than the first day of each operating year, the
11-22 district shall adopt an application procedure to determine
11-23 eligibility for assistance that complies with Section 61.053.
11-24 (c) The administrator of the district may have an inquiry
11-25 made into the financial circumstances of:
11-26 (1) a patient residing in the district and admitted to
12-1 a district facility; and
12-2 (2) a relative of the patient who is legally
12-3 responsible for the patient's support.
12-4 (d) The board may adopt a sliding-fee scale for health care
12-5 services provided to a patient who can pay for some, but not all,
12-6 of the care and treatment provided by the district.
12-7 (e) A county that created and contracted with the district
12-8 may credit a district expenditure for the care and treatment of an
12-9 eligible county resident to the same extent and in the same manner
12-10 the county would be able to claim the expenditure under Chapter 61
12-11 if the county made the expenditure.
12-12 (f) The board shall adopt rules regarding the collection of
12-13 money that is owed to the district for health care services
12-14 provided to a patient who is determined to be able to pay for all
12-15 or any part of the services from a patient, a patient's estate, or
12-16 a relative who is legally responsible for the patient's support.
12-17 Sec. 287.080. REIMBURSEMENT FOR SERVICES. (a) The board
12-18 shall require reimbursement from a county, municipality, or public
12-19 hospital located outside the boundaries of the district for the
12-20 district's care and treatment of a sick, diseased, or injured
12-21 person of that county, municipality, or public hospital as provided
12-22 by Chapter 61.
12-23 (b) The board shall require reimbursement from the sheriff
12-24 or police chief of a county or municipality for the district's care
12-25 and treatment of a person confined in a jail facility of the county
12-26 or municipality who is not a resident of the district, as
13-1 determined in the same manner as the person's residence is
13-2 determined under Chapter 61.
13-3 (c) The board may contract with a state or federal agency or
13-4 political subdivision of the state to provide health care services.
13-5 Sec. 287.081. SERVICE CONTRACTS. The board may contract
13-6 with a municipality, county, special district, or other political
13-7 subdivision of the state or with a state or federal agency for the
13-8 district to:
13-9 (1) furnish a mobile emergency medical service; or
13-10 (2) provide for the investigatory or welfare needs of
13-11 inhabitants of the district.
13-12 Sec. 287.082. GIFTS AND ENDOWMENTS. On behalf of the
13-13 district, the board may accept gifts and endowments to be held in
13-14 trust for any purpose and under any direction, limitation, or
13-15 provision prescribed in writing by the donor that is consistent
13-16 with the proper management of the district.
13-17 Sec. 287.083. AUTHORITY TO SUE AND BE SUED. The board may
13-18 sue and be sued on behalf of the district.
13-19 (Sections 287.084-287.100 reserved for expansion
13-20 SUBCHAPTER E. DISSOLUTION OF DISTRICT
13-21 Sec. 287.101. DISSOLUTION. A district shall be dissolved
13-22 if:
13-23 (1) the contract with the counties and hospital
13-24 districts that created the district expires and is not renewed; or
13-25 (2) the counties and hospital districts that created
13-26 the district adopt concurrent orders to terminate the contract and
14-1 dissolve the district and the concurrent orders:
14-2 (A) are approved by the governing bodies of each
14-3 county and hospital district; and
14-4 (B) contain identical provisions.
14-5 Sec. 287.102. TRANSFER OF ASSETS AFTER DISSOLUTION. (a) If
14-6 the district is dissolved, the board shall:
14-7 (1) transfer the land, buildings, improvements,
14-8 equipment, and other assets acquired by the district to the county
14-9 or hospital district in which the property is located; or
14-10 (2) administer the property, assets, and debts in
14-11 accordance with Section 287.103.
14-12 (b) If the district transfers its land, buildings,
14-13 improvements, equipment, and other assets to a county or hospital
14-14 district, the county or hospital district assumes all debts and
14-15 obligations of the district related to the land, buildings,
14-16 improvements, equipment, or assets at the time of the transfer, and
14-17 the district is dissolved.
14-18 Sec. 287.103. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS
14-19 AFTER DISSOLUTION. (a) If the district does not transfer its
14-20 land, buildings, improvements, equipment, and other assets to a
14-21 county or hospital district in the district, the board shall
14-22 continue to control and administer the property, debts, and assets
14-23 of the district until all funds have been disposed of and all
14-24 district debts have been paid or settled.
14-25 (b) If, after administering the property and assets, the
14-26 board determines that the district's property and assets are
15-1 insufficient to pay the debts of the district, the district shall
15-2 transfer the remaining debts to the counties and hospital districts
15-3 that created the district in proportion to the funds contributed to
15-4 the district by each county or hospital district.
15-5 (c) If, after administering the property and assets, the
15-6 board determines that unused funds remain, the board shall transfer
15-7 the unused funds to the counties and hospital districts that
15-8 created the district in proportion to the funds contributed to the
15-9 district by each county or hospital district.
15-10 Sec. 287.104. ACCOUNTING. After the district has paid all
15-11 its debts and has disposed of all its assets and funds as
15-12 prescribed by Sections 287.102 and 287.103, the board shall provide
15-13 an accounting to each county and hospital district that created and
15-14 contracted with the district. The accounting must show the manner
15-15 in which the assets and debts of the district were distributed.
15-16 (Sections 287.105-287.120 reserved for expansion
15-17 SUBCHAPTER F. DISTRICT FINANCES
15-18 Sec. 287.121. FISCAL YEAR. (a) The district operates on
15-19 the fiscal year established by the board.
15-20 (b) The fiscal year may not be changed if revenue bonds of
15-21 the district are outstanding or more than once in a 24-month
15-22 period.
15-23 Sec. 287.122. ANNUAL AUDIT. (a) The board annually shall
15-24 have an independent audit made of the financial condition of the
15-25 district.
15-26 (b) A copy of the audit must be provided to:
16-1 (1) each county and hospital district that created and
16-2 contracted with the district;
16-3 (2) each state and federal agency with which the
16-4 district contracts; and
16-5 (3) each other entity that contributes substantial
16-6 funds to the district.
16-7 Sec. 287.123. DISTRICT AUDIT AND RECORDS. The annual audit
16-8 and other district records are open to inspection during regular
16-9 business hours at the principal office of the district.
16-10 Sec. 287.124. ANNUAL BUDGET. (a) The administrator of the
16-11 district shall prepare a proposed annual budget for the district.
16-12 (b) The proposed budget must contain a complete financial
16-13 statement, including a statement of:
16-14 (1) the outstanding obligations of the district;
16-15 (2) the amount of cash on hand to the credit of each
16-16 fund of the district;
16-17 (3) the amount of money received by the district from
16-18 all sources during the previous year;
16-19 (4) the amount of money available to the district from
16-20 all sources during the ensuing year;
16-21 (5) the amount of the balances expected at the end of
16-22 the year in which the budget is being prepared; and
16-23 (6) the estimated amount of revenues and balances
16-24 available to cover the proposed budget.
16-25 Sec. 287.125. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
16-26 board shall hold a public hearing on the proposed annual budget.
17-1 (b) The board shall publish notice of the hearing in a
17-2 newspaper of general circulation in the district not later than the
17-3 10th day before the date of the hearing.
17-4 (c) Any resident of the district is entitled to be present
17-5 and participate at the hearing.
17-6 (d) At the conclusion of the hearing, the board shall adopt
17-7 a budget by acting on the budget proposed by the administrator.
17-8 The board may make any changes in the proposed budget that in its
17-9 judgment the interests of the residents of the district demand.
17-10 (e) The budget is effective only after adoption by the
17-11 board.
17-12 Sec. 287.126. AMENDING BUDGET. After adoption, the annual
17-13 budget may be amended on the board's approval.
17-14 Sec. 287.127. LIMITATION OF EXPENDITURES. Money may not be
17-15 spent for an expense not included in the annual budget or an
17-16 amendment to it.
17-17 Sec. 287.128. SWORN STATEMENT. As soon as practicable after
17-18 the close of the fiscal year, the administrator shall prepare for
17-19 the board a sworn statement of the amount of money that belongs to
17-20 the district and an account of the disbursements of that money.
17-21 Sec. 287.129. SPENDING AND INVESTMENT LIMITATIONS.
17-22 (a) Except for construction contracts under Section 287.077(a) or
17-23 as provided by Sections 287.142 and 287.143, the district may not
17-24 incur a debt payable from revenues of the district other than the
17-25 revenues on hand or to be on hand in the current and immediately
17-26 following fiscal year of the district.
18-1 (b) The board may invest operating, depreciation, or
18-2 building reserves only in funds or securities specified by Article
18-3 836 or 837, Revised Statutes.
18-4 Sec. 287.130. DEPOSITORY. (a) The board shall name at
18-5 least one bank to serve as depository for district funds.
18-6 (b) District funds, other than those invested as provided by
18-7 Section 287.129(b) and those transmitted to a bank of payment for
18-8 bonds or obligations issued or assumed by the district, shall be
18-9 deposited as received with the depository bank and must remain on
18-10 deposit. This subsection does not limit the power of the board to
18-11 place a portion of district funds on time deposit or to purchase
18-12 certificates of deposit.
18-13 (c) Before the district deposits funds in a bank in an
18-14 amount that exceeds the maximum amount secured by the Federal
18-15 Deposit Insurance Corporation, the bank must execute a bond or
18-16 other security in an amount sufficient to secure from loss the
18-17 district funds that exceed the amount secured by the Federal
18-18 Deposit Insurance Corporation.
18-19 Sec. 287.131. AD VALOREM TAXATION. A district may not
18-20 impose an ad valorem tax.
18-21 (Sections 287.132-287.140 reserved for expansion
18-22 SUBCHAPTER G. BONDS
18-23 Sec. 287.141. GENERAL OBLIGATION BONDS. A district may not
18-24 issue general obligation bonds.
18-25 Sec. 287.142. REVENUE BONDS. (a) The board may issue
18-26 revenue bonds to:
19-1 (1) purchase, construct, acquire, repair, equip, or
19-2 renovate buildings or improvements for district purposes;
19-3 (2) acquire sites to be used for district purposes; or
19-4 (3) acquire and operate a mobile emergency medical
19-5 service to assist the district in carrying out its purposes.
19-6 (b) The bonds must be payable from and secured by a pledge
19-7 of all or part of the revenues derived from the operation of the
19-8 district. The bonds may be additionally secured by a mortgage or
19-9 deed of trust lien on all or part of district property.
19-10 (c) The bonds must be issued in the manner provided by
19-11 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049
19-12 for issuance of revenue bonds by county hospital authorities.
19-13 (d) Revenue derived from the operation of the district and
19-14 pledged to the repayment of revenue bonds issued by the district
19-15 must be used to repay the principal and interest owed on the bonds
19-16 before being used to repay any other obligation of the district,
19-17 including money owed to physicians who are employed by or who
19-18 contract with the district.
19-19 Sec. 287.143. REFUNDING BONDS. (a) Refunding bonds of the
19-20 district may be issued to refund an outstanding indebtedness the
19-21 district has issued or assumed.
19-22 (b) The bonds must be issued in the manner provided by
19-23 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
19-24 (Article 717k-3, Vernon's Texas Civil Statutes).
19-25 (c) The refunding bonds may be sold and the proceeds applied
19-26 to the payment of outstanding indebtedness or may be exchanged in
20-1 whole or in part for not less than a similar principal amount of
20-2 outstanding indebtedness. If the refunding bonds are to be sold
20-3 and the proceeds applied to the payment of outstanding
20-4 indebtedness, the refunding bonds must be issued and payments made
20-5 in the manner provided by Chapter 503, Acts of the 54th
20-6 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
20-7 Civil Statutes).
20-8 Sec. 287.144. INTEREST AND MATURITY. District bonds must
20-9 mature not later than the 50th anniversary of the date of their
20-10 issuance and must bear interest at a rate not to exceed that
20-11 provided by Chapter 3, Acts of the 61st Legislature, Regular
20-12 Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes).
20-13 Sec. 287.145. EXECUTION OF BONDS. The president of the
20-14 board shall execute the bonds in the name of the district, and the
20-15 secretary of the board shall countersign the bonds in the manner
20-16 provided by the Texas Uniform Facsimile Signature of Public
20-17 Officials Act (Article 717j-1, Vernon's Texas Civil Statutes).
20-18 Sec. 287.146. APPROVAL AND REGISTRATION OF BONDS.
20-19 (a) District bonds are subject to the same requirements with
20-20 regard to approval by the attorney general and registration by the
20-21 comptroller as the law provides for approval and registration of
20-22 bonds issued by counties.
20-23 (b) On approval by the attorney general and registration by
20-24 the comptroller, the bonds are incontestable for any cause.
20-25 Sec. 287.147. BONDS AS INVESTMENTS. District bonds and
20-26 indebtedness assumed by the district are legal and authorized
21-1 investments for:
21-2 (1) banks;
21-3 (2) savings banks;
21-4 (3) trust companies;
21-5 (4) savings and loan associations;
21-6 (5) insurance companies;
21-7 (6) fiduciaries;
21-8 (7) trustees;
21-9 (8) guardians; and
21-10 (9) sinking funds of municipalities, counties, school
21-11 districts, and other political subdivisions of the state and other
21-12 public funds of the state and its agencies, including the permanent
21-13 school fund.
21-14 Sec. 287.148. BONDS AS SECURITY FOR DEPOSITS. District
21-15 bonds are eligible to secure deposits of public funds of the state
21-16 and of municipalities, counties, school districts, and other
21-17 political subdivisions of the state. The bonds are lawful and
21-18 sufficient security for deposits to the extent of their value if
21-19 accompanied by all unmatured coupons.
21-20 Sec. 287.149. TAX STATUS OF BONDS. Because the district
21-21 created under this chapter is a public entity performing an
21-22 essential public function, bonds issued by the district, any
21-23 transaction relating to the bonds, and profits made in the sale of
21-24 the bonds are free from taxation by the state or by any
21-25 municipality, county, special district, or other political
21-26 subdivision of the state.
22-1 SECTION 2. This Act takes effect September 1, 1999.
22-2 SECTION 3. The importance of this legislation and the
22-3 crowded condition of the calendars in both houses create an
22-4 emergency and an imperative public necessity that the
22-5 constitutional rule requiring bills to be read on three several
22-6 days in each house be suspended, and this rule is hereby suspended.