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 (c) A health services district may not:
4-8 (1) establish, conduct, or maintain an institution as
4-9 defined by Section 242.002; or
4-10 (2) establish or operate a personal care facility as
4-11 defined by Section 247.002.
4-12 Sec. 287.024. FUNDING. (a) Each county or hospital
4-13 district that contracts with the district shall contribute to the
4-14 district for its operation:
4-15 (1) a specified dollar amount from or a percentage of
4-16 the contracting entity's operating budget and reserves if the
4-17 contracting entity is a hospital district;
4-18 (2) a specified percentage, not less than the
4-19 percentage required under Section 61.037 for state assistance, of
4-20 the contracting entity's general revenue levy for each state fiscal
4-21 year for the term of the contract, if the contracting entity is a
4-22 county;
4-23 (3) state assistance received under Chapter 61;
4-24 (4) federal matching funds received by a hospital
4-25 district under the Medicaid disproportionate share program; and
4-26 (5) any funds that are:
5-1 (A) received under the Agreement Regarding
5-2 Disposition of Settlement Proceeds dated July 18, 1998, or
5-3 July 24, 1998, and filed in the United States District Court,
5-4 Eastern District of Texas, in the case styled The State of Texas v.
5-5 The American Tobacco Company, et al., No. 5-96CV-91; and
5-6 (B) received on or after the date on which the
5-7 district is created and before the district is dissolved.
5-8 (b) The district shall maintain an accounting of the funds
5-9 received from each county or hospital district that contracts with
5-10 the district.
5-11 (c) The district may administer the financial contributions
5-12 of all parties to the contract for district purposes.
5-13 (Sections 287.025-287.040 reserved for expansion)
5-14 SUBCHAPTER C. DISTRICT ADMINISTRATION
5-15 Sec. 287.041. BOARD OF DIRECTORS. (a) A county or hospital
5-16 district that creates the district and has a population of 125,000
5-17 or more shall appoint one director to the board for every 125,000
5-18 persons in the population of the county or hospital district,
5-19 rounded to the nearest 125,000.
5-20 (b) A county or hospital district that creates the district
5-21 and has a population of less than 125,000 may appoint one director
5-22 to the board.
5-23 (c) The county judges of a county that creates the district
5-24 shall appoint the directors to the board on behalf of the county.
5-25 The board of directors of a hospital district that creates the
5-26 district shall appoint the directors to the board on behalf of the
6-1 hospital district.
6-2 (d) Directors serve staggered two-year terms, with as near
6-3 as possible to one-half of the directors' terms expiring each year.
6-4 (e) The number of directors appointed to the board by each
6-5 county or hospital district that creates the district is determined
6-6 at the time of the initial appointment of directors under this
6-7 section and does not vary with subsequent variations in the
6-8 population of the county or hospital district.
6-9 Sec. 287.042. QUALIFICATIONS FOR OFFICE. (a) To be
6-10 eligible to serve as a director, a person must be a resident of the
6-11 county or hospital district that appoints the person under Section
6-12 287.041.
6-13 (b) An employee of the district may not serve as a director.
6-14 Sec. 287.043. BOND. (a) Before assuming the duties of the
6-15 office, each director must execute a bond for $5,000 payable to the
6-16 district, conditioned on the faithful performance of the person's
6-17 duties as director.
6-18 (b) The bond shall be kept in the permanent records of the
6-19 district.
6-20 (c) The board may pay for directors' bonds with district
6-21 funds.
6-22 Sec. 287.044. BOARD VACANCY. A vacancy in the office of
6-23 director shall be filled for the unexpired term in the same manner
6-24 as the original appointment.
6-25 Sec. 287.045. OFFICERS. (a) The board shall elect from
6-26 among its members a president and a vice president.
7-1 (b) The board shall appoint a secretary, who need not be a
7-2 director.
7-3 Sec. 287.046. OFFICERS' TERMS; VACANCY. (a) Each officer
7-4 of the board serves for a term of one year.
7-5 (b) The board shall fill a vacancy in a board office for the
7-6 unexpired term.
7-7 Sec. 287.047. COMPENSATION. (a) Directors and officers
7-8 serve without compensation but may be reimbursed for actual
7-9 expenses incurred in the performance of official duties.
7-10 (b) Expenses reimbursed under this section must be:
7-11 (1) reported in the district's minute book or other
7-12 district records; and
7-13 (2) approved by the board.
7-14 Sec. 287.048. VOTING REQUIREMENT. A majority of the members
7-15 of the board voting must concur in a matter relating to the
7-16 business of the district.
7-17 Sec. 287.049. ADMINISTRATOR AND ADDITIONAL STAFF. (a) The
7-18 board may appoint qualified persons as administrator of the
7-19 district and as additional administrative staff members as the
7-20 board considers necessary for the efficient operation of the
7-21 district.
7-22 (b) The administrator and other administrative staff members
7-23 serve at the will of the board.
7-24 (c) The administrator and other administrative staff members
7-25 are entitled to compensation as determined by the board.
7-26 (d) Before assuming the administrator's duties, the
8-1 administrator shall execute a bond payable to the health services
8-2 district in an amount not less than $5,000 as determined by the
8-3 board, conditioned on the faithful performance of the
8-4 administrator's duties under this chapter. The board may pay for
8-5 the bond with district funds.
8-6 Sec. 287.050. APPOINTMENTS TO STAFF. The board may:
8-7 (1) appoint to the staff any doctors the board
8-8 considers necessary for the efficient operation of the district;
8-9 and
8-10 (2) make temporary appointments the board considers
8-11 necessary.
8-12 Sec. 287.051. TECHNICIANS, NURSES, AND OTHER DISTRICT
8-13 EMPLOYEES. (a) The district may employ technicians, nurses,
8-14 fiscal agents, accountants, architects, additional attorneys, and
8-15 other necessary employees.
8-16 (b) The board may delegate to the administrator the
8-17 authority to employ persons for the district.
8-18 Sec. 287.052. GENERAL DUTIES OF ADMINISTRATOR. The
8-19 administrator shall:
8-20 (1) supervise the work and activities of the district;
8-21 and
8-22 (2) direct the general affairs of the district,
8-23 subject to the limitations prescribed by the board.
8-24 Sec. 287.053. RETIREMENT BENEFITS. The board may provide
8-25 retirement benefits for employees of the district by:
8-26 (1) establishing or administering a retirement
9-1 program; or
9-2 (2) electing to participate in the Texas County and
9-3 District Retirement System or in any other statewide retirement
9-4 system in which the district is eligible to participate.
9-5 (Sections 287.054-287.070 reserved for expansion
9-6 SUBCHAPTER D. POWERS AND DUTIES
9-7 Sec. 287.071. RESPONSIBILITY OF GOVERNMENTAL ENTITY. On
9-8 creation of a district, a county or hospital district that creates
9-9 the district may transfer to the district:
9-10 (1) management and operation of any land, buildings,
9-11 improvements, and equipment related to the health care system
9-12 located wholly in the district that are owned by the county or
9-13 hospital district in which the district is located, as specified in
9-14 the contract with the counties and hospital districts that created
9-15 the district; and
9-16 (2) operating funds and reserves for operating
9-17 expenses and funds that have been budgeted by the county or
9-18 hospital district in which the district is located to provide
9-19 medical care for residents of the district, as specified in the
9-20 contract with the counties and hospital districts that created the
9-21 district.
9-22 Sec. 287.072. DISTRICT RESPONSIBILITIES. On creation of a
9-23 district, the district assumes the duties required under Section
9-24 287.023 and any additional duties specified in the contract with
9-25 the counties and hospital districts that created the district.
9-26 Sec. 287.073. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
10-1 board shall manage, control, and administer the health care system
10-2 and the funds and resources of the district that are transferred
10-3 under Section 287.071.
10-4 Sec. 287.074. DISTRICT RULES. The board may adopt rules
10-5 governing the operation of the district and the duties, functions,
10-6 and responsibilities of district staff and employees.
10-7 Sec. 287.075. METHODS AND PROCEDURES. The board may
10-8 prescribe:
10-9 (1) the method of making purchases and expenditures by
10-10 and for the district; and
10-11 (2) accounting and control procedures for the
10-12 district.
10-13 Sec. 287.076. HEALTH CARE PROPERTY, FACILITIES, AND
10-14 EQUIPMENT. (a) The board shall determine:
10-15 (1) the type, number, and location of buildings
10-16 required to establish and maintain an adequate health care system;
10-17 and
10-18 (2) the type of equipment necessary for health care.
10-19 (b) The board may:
10-20 (1) acquire property, facilities, and equipment for
10-21 the district for use in the health care system;
10-22 (2) mortgage or pledge the property, facilities, or
10-23 equipment acquired as security for the payment of the purchase
10-24 price;
10-25 (3) transfer by lease to physicians, individuals,
10-26 companies, corporations, or other legal entities or acquire by
11-1 lease district health care facilities;
11-2 (4) sell or otherwise dispose of property, facilities,
11-3 or equipment acquired by the district; and
11-4 (5) contract with a state agency or other qualified
11-5 provider to provide services.
11-6 Sec. 287.077. CONSTRUCTION CONTRACTS. (a) The board may
11-7 enter into construction contracts for the district.
11-8 (b) The board may enter into construction contracts that
11-9 involve spending more than $10,000 only after competitive bidding
11-10 as provided by Subchapter B, Chapter 271, Local Government Code.
11-11 (c) Chapter 2253, Government Code, as it relates to
11-12 performance and payment bonds, applies to construction contracts
11-13 let by the district.
11-14 Sec. 287.078. DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
11-15 The board may enter into operating or management contracts relating
11-16 to health care facilities owned by the district or for which the
11-17 district assumes responsibility for managing and operating under
11-18 the terms of the contract with the counties and hospital districts
11-19 that created the district.
11-20 Sec. 287.079. PAYMENT FOR HEALTH CARE SERVICES. (a) The
11-21 district without charge shall supply to a patient residing in the
11-22 district the care and treatment that the patient or a relative of
11-23 the patient who is legally responsible for the patient's support
11-24 cannot pay.
11-25 (b) Not later than the first day of each operating year, the
11-26 district shall adopt an application procedure to determine
12-1 eligibility for assistance that complies with Section 61.053.
12-2 (c) The administrator of the district may have an inquiry
12-3 made into the financial circumstances of:
12-4 (1) a patient residing in the district and admitted to
12-5 a district facility; and
12-6 (2) a relative of the patient who is legally
12-7 responsible for the patient's support.
12-8 (d) The board may adopt a sliding-fee scale for health care
12-9 services provided to a patient who can pay for some, but not all,
12-10 of the care and treatment provided by the district.
12-11 (e) A county that created and contracted with the district
12-12 may credit a district expenditure for the care and treatment of an
12-13 eligible county resident to the same extent and in the same manner
12-14 the county would be able to claim the expenditure under Chapter 61
12-15 if the county made the expenditure.
12-16 (f) The board shall adopt rules regarding the collection of
12-17 money that is owed to the district for health care services
12-18 provided to a patient who is determined to be able to pay for all
12-19 or any part of the services from a patient, a patient's estate, or
12-20 a relative who is legally responsible for the patient's support.
12-21 Sec. 287.080. REIMBURSEMENT FOR SERVICES. (a) The board
12-22 shall require reimbursement from a county, municipality, or public
12-23 hospital located outside the boundaries of the district for the
12-24 district's care and treatment of a sick, diseased, or injured
12-25 person of that county, municipality, or public hospital as provided
12-26 by Chapter 61.
13-1 (b) The board shall require reimbursement from the sheriff
13-2 or police chief of a county or municipality for the district's care
13-3 and treatment of a person confined in a jail facility of the county
13-4 or municipality who is not a resident of the district, as
13-5 determined in the same manner as the person's residence is
13-6 determined under Chapter 61.
13-7 (c) The board may contract with a state or federal agency or
13-8 political subdivision of the state to provide health care services.
13-9 Sec. 287.081. SERVICE CONTRACTS. The board may contract
13-10 with a municipality, county, special district, or other political
13-11 subdivision of the state or with a state or federal agency for the
13-12 district to:
13-13 (1) furnish a mobile emergency medical service; or
13-14 (2) provide for the investigatory or welfare needs of
13-15 inhabitants of the district.
13-16 Sec. 287.082. GIFTS AND ENDOWMENTS. On behalf of the
13-17 district, the board may accept gifts and endowments to be held in
13-18 trust for any purpose and under any direction, limitation, or
13-19 provision prescribed in writing by the donor that is consistent
13-20 with the proper management of the district.
13-21 Sec. 287.083. AUTHORITY TO SUE AND BE SUED. The board may
13-22 sue and be sued on behalf of the district.
13-23 (Sections 287.084-287.100 reserved for expansion
13-24 SUBCHAPTER E. DISSOLUTION OF DISTRICT
13-25 Sec. 287.101. DISSOLUTION. (a) A district shall be
13-26 dissolved if:
14-1 (1) the contract with the counties and hospital
14-2 districts that created the district expires and is not renewed; or
14-3 (2) the counties and hospital districts that created
14-4 the district adopt concurrent orders to terminate the contract and
14-5 dissolve the district and the concurrent orders:
14-6 (A) are approved by the governing bodies of each
14-7 county and hospital district; and
14-8 (B) contain identical provisions.
14-9 (b) The governing body of a county or hospital district may
14-10 adopt orders to terminate the contract with the district and end
14-11 the county's or hospital district's participation in the district.
14-12 The county or hospital district must give written notice to the
14-13 district at least one fiscal year, as established by the board
14-14 under Section 287.121, before terminating the contract and ending
14-15 participation in the district. On termination of the contract with
14-16 the district, the district shall transfer to the county or hospital
14-17 district all unspent funds contributed by the county or hospital
14-18 district to the district and the land, buildings, improvements,
14-19 equipment, and other assets acquired by the district that are
14-20 located in the county or hospital district. The termination of the
14-21 contract by a county or hospital district does not affect the
14-22 operation of the district with respect to each other county or
14-23 hospital district that created the district.
14-24 Sec. 287.102. TRANSFER OF ASSETS AFTER DISSOLUTION. (a) If
14-25 the district is dissolved, the board shall:
14-26 (1) transfer the land, buildings, improvements,
15-1 equipment, and other assets acquired by the district to the county
15-2 or hospital district in which the property is located; or
15-3 (2) administer the property, assets, and debts in
15-4 accordance with Section 287.103.
15-5 (b) If the district transfers its land, buildings,
15-6 improvements, equipment, and other assets to a county or hospital
15-7 district, the county or hospital district assumes all debts and
15-8 obligations of the district related to the land, buildings,
15-9 improvements, equipment, or assets at the time of the transfer, and
15-10 the district is dissolved.
15-11 Sec. 287.103. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS
15-12 AFTER DISSOLUTION. (a) If the district does not transfer its
15-13 land, buildings, improvements, equipment, and other assets to a
15-14 county or hospital district in the district, the board shall
15-15 continue to control and administer the property, debts, and assets
15-16 of the district until all funds have been disposed of and all
15-17 district debts have been paid or settled.
15-18 (b) If, after administering the property and assets, the
15-19 board determines that the district's property and assets are
15-20 insufficient to pay the debts of the district, the district shall
15-21 transfer the remaining debts to the counties and hospital districts
15-22 that created the district in proportion to the funds contributed to
15-23 the district by each county or hospital district.
15-24 (c) If, after administering the property and assets, the
15-25 board determines that unused funds remain, the board shall transfer
15-26 the unused funds to the counties and hospital districts that
16-1 created the district in proportion to the funds contributed to the
16-2 district by each county or hospital district.
16-3 Sec. 287.104. ACCOUNTING. After the district has paid all
16-4 its debts and has disposed of all its assets and funds as
16-5 prescribed by Sections 287.102 and 287.103, the board shall provide
16-6 an accounting to each county and hospital district that created and
16-7 contracted with the district. The accounting must show the manner
16-8 in which the assets and debts of the district were distributed.
16-9 (Sections 287.105-287.120 reserved for expansion
16-10 SUBCHAPTER F. DISTRICT FINANCES
16-11 Sec. 287.121. FISCAL YEAR. (a) The district operates on
16-12 the fiscal year established by the board.
16-13 (b) The fiscal year may not be changed if revenue bonds of
16-14 the district are outstanding or more than once in a 24-month
16-15 period.
16-16 Sec. 287.122. ANNUAL AUDIT. (a) The board annually shall
16-17 have an independent audit made of the financial condition of the
16-18 district.
16-19 (b) A copy of the audit must be provided to:
16-20 (1) each county and hospital district that created and
16-21 contracted with the district;
16-22 (2) each state and federal agency with which the
16-23 district contracts; and
16-24 (3) each other entity that contributes substantial
16-25 funds to the district.
16-26 Sec. 287.123. DISTRICT AUDIT AND RECORDS. The annual audit
17-1 and other district records are open to inspection during regular
17-2 business hours at the principal office of the district.
17-3 Sec. 287.124. ANNUAL BUDGET. (a) The administrator of the
17-4 district shall prepare a proposed annual budget for the district.
17-5 (b) The proposed budget must contain a complete financial
17-6 statement, including a statement of:
17-7 (1) the outstanding obligations of the district;
17-8 (2) the amount of cash on hand to the credit of each
17-9 fund of the district;
17-10 (3) the amount of money received by the district from
17-11 all sources during the previous year;
17-12 (4) the amount of money available to the district from
17-13 all sources during the ensuing year;
17-14 (5) the amount of the balances expected at the end of
17-15 the year in which the budget is being prepared; and
17-16 (6) the estimated amount of revenues and balances
17-17 available to cover the proposed budget.
17-18 Sec. 287.125. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
17-19 board shall hold a public hearing on the proposed annual budget.
17-20 (b) The board shall publish notice of the hearing in a
17-21 newspaper of general circulation in the district not later than the
17-22 10th day before the date of the hearing.
17-23 (c) Any resident of the district is entitled to be present
17-24 and participate at the hearing.
17-25 (d) At the conclusion of the hearing, the board shall adopt
17-26 a budget by acting on the budget proposed by the administrator.
18-1 The board may make any changes in the proposed budget that in its
18-2 judgment the interests of the residents of the district demand.
18-3 (e) The budget is effective only after adoption by the
18-4 board.
18-5 Sec. 287.126. AMENDING BUDGET. After adoption, the annual
18-6 budget may be amended on the board's approval.
18-7 Sec. 287.127. LIMITATION OF EXPENDITURES. Money may not be
18-8 spent for an expense not included in the annual budget or an
18-9 amendment to it.
18-10 Sec. 287.128. SWORN STATEMENT. As soon as practicable after
18-11 the close of the fiscal year, the administrator shall prepare for
18-12 the board a sworn statement of the amount of money that belongs to
18-13 the district and an account of the disbursements of that money.
18-14 Sec. 287.129. SPENDING AND INVESTMENT LIMITATIONS.
18-15 (a) Except for construction contracts under Section 287.077(a) or
18-16 as provided by Sections 287.142 and 287.143, the district may not
18-17 incur a debt payable from revenues of the district other than the
18-18 revenues on hand or to be on hand in the current and immediately
18-19 following fiscal year of the district.
18-20 (b) The board may invest operating, depreciation, or
18-21 building reserves only in funds or securities specified by Article
18-22 836 or 837, Revised Statutes.
18-23 Sec. 287.130. DEPOSITORY. (a) The board shall name at
18-24 least one bank to serve as depository for district funds.
18-25 (b) District funds, other than those invested as provided by
18-26 Section 287.129(b) and those transmitted to a bank of payment for
19-1 bonds or obligations issued or assumed by the district, shall be
19-2 deposited as received with the depository bank and must remain on
19-3 deposit. This subsection does not limit the power of the board to
19-4 place a portion of district funds on time deposit or to purchase
19-5 certificates of deposit.
19-6 (c) Before the district deposits funds in a bank in an
19-7 amount that exceeds the maximum amount secured by the Federal
19-8 Deposit Insurance Corporation, the bank must execute a bond or
19-9 other security in an amount sufficient to secure from loss the
19-10 district funds that exceed the amount secured by the Federal
19-11 Deposit Insurance Corporation.
19-12 Sec. 287.131. AD VALOREM TAXATION. A district may not
19-13 impose an ad valorem tax.
19-14 (Sections 287.132-287.140 reserved for expansion
19-15 SUBCHAPTER G. BONDS
19-16 Sec. 287.141. GENERAL OBLIGATION BONDS. A district may not
19-17 issue general obligation bonds.
19-18 Sec. 287.142. REVENUE BONDS. (a) The board may issue
19-19 revenue bonds to:
19-20 (1) purchase, construct, acquire, repair, equip, or
19-21 renovate buildings or improvements for district purposes;
19-22 (2) acquire sites to be used for district purposes; or
19-23 (3) acquire and operate a mobile emergency medical
19-24 service to assist the district in carrying out its purposes.
19-25 (b) The bonds must be payable from and secured by a pledge
19-26 of all or part of the revenues derived from the operation of the
20-1 district. The bonds may be additionally secured by a mortgage or
20-2 deed of trust lien on all or part of district property.
20-3 (c) The bonds must be issued in the manner provided by
20-4 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049
20-5 for issuance of revenue bonds by county hospital authorities.
20-6 (d) Revenue derived from the operation of the district and
20-7 pledged to the repayment of revenue bonds issued by the district
20-8 must be used to repay the principal and interest owed on the bonds
20-9 before being used to repay any other obligation of the district,
20-10 including money owed to physicians who are employed by or who
20-11 contract with the district.
20-12 Sec. 287.143. REFUNDING BONDS. (a) Refunding bonds of the
20-13 district may be issued to refund an outstanding indebtedness the
20-14 district has issued or assumed.
20-15 (b) The bonds must be issued in the manner provided by
20-16 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
20-17 (Article 717k-3, Vernon's Texas Civil Statutes).
20-18 (c) The refunding bonds may be sold and the proceeds applied
20-19 to the payment of outstanding indebtedness or may be exchanged in
20-20 whole or in part for not less than a similar principal amount of
20-21 outstanding indebtedness. If the refunding bonds are to be sold
20-22 and the proceeds applied to the payment of outstanding
20-23 indebtedness, the refunding bonds must be issued and payments made
20-24 in the manner provided by Chapter 503, Acts of the 54th
20-25 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
20-26 Civil Statutes).
21-1 Sec. 287.144. INTEREST AND MATURITY. District bonds must
21-2 mature not later than the 50th anniversary of the date of their
21-3 issuance and must bear interest at a rate not to exceed that
21-4 provided by Chapter 3, Acts of the 61st Legislature, Regular
21-5 Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes).
21-6 Sec. 287.145. EXECUTION OF BONDS. The president of the
21-7 board shall execute the bonds in the name of the district, and the
21-8 secretary of the board shall countersign the bonds in the manner
21-9 provided by the Texas Uniform Facsimile Signature of Public
21-10 Officials Act (Article 717j-1, Vernon's Texas Civil Statutes).
21-11 Sec. 287.146. APPROVAL AND REGISTRATION OF BONDS.
21-12 (a) District bonds are subject to the same requirements with
21-13 regard to approval by the attorney general and registration by the
21-14 comptroller as the law provides for approval and registration of
21-15 bonds issued by counties.
21-16 (b) On approval by the attorney general and registration by
21-17 the comptroller, the bonds are incontestable for any cause.
21-18 Sec. 287.147. BONDS AS INVESTMENTS. District bonds and
21-19 indebtedness assumed by the district are legal and authorized
21-20 investments for:
21-21 (1) banks;
21-22 (2) savings banks;
21-23 (3) trust companies;
21-24 (4) savings and loan associations;
21-25 (5) insurance companies;
21-26 (6) fiduciaries;
22-1 (7) trustees;
22-2 (8) guardians; and
22-3 (9) sinking funds of municipalities, counties, school
22-4 districts, and other political subdivisions of the state and other
22-5 public funds of the state and its agencies, including the permanent
22-6 school fund.
22-7 Sec. 287.148. BONDS AS SECURITY FOR DEPOSITS. District
22-8 bonds are eligible to secure deposits of public funds of the state
22-9 and of municipalities, counties, school districts, and other
22-10 political subdivisions of the state. The bonds are lawful and
22-11 sufficient security for deposits to the extent of their value if
22-12 accompanied by all unmatured coupons.
22-13 Sec. 287.149. TAX STATUS OF BONDS. Because the district
22-14 created under this chapter is a public entity performing an
22-15 essential public function, bonds issued by the district, any
22-16 transaction relating to the bonds, and profits made in the sale of
22-17 the bonds are free from taxation by the state or by any
22-18 municipality, county, special district, or other political
22-19 subdivision of the state.
22-20 SECTION 2. This Act takes effect September 1, 1999.
22-21 SECTION 3. The importance of this legislation and the
22-22 crowded condition of the calendars in both houses create an
22-23 emergency and an imperative public necessity that the
22-24 constitutional rule requiring bills to be read on three several
22-25 days in each house be suspended, and this rule is hereby suspended.
S.B. No. 1615
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1615 passed the Senate on
May 10, 1999, by a viva-voce vote; May 27, 1999, Senate refused to
concur in House amendments and requested appointment of Conference
Committee; May 28, 1999, House granted request of the Senate;
May 30, 1999, Senate adopted Conference Committee Report by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1615 passed the House, with
amendments, on May 22, 1999, by a non-record vote; May 28, 1999,
House granted request of the Senate for appointment of Conference
Committee; May 30, 1999, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor