By: Haywood S.B. No. 1624
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the Hardeman County Hospital District.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subsections (f) and (g), Section 3, Chapter 214,
1-4 Acts of the 66th Legislature, Regular Session, 1979, are amended to
1-5 read as follows:
1-6 (f) The commissioners court shall determine the seven
1-7 candidates for director receiving the highest number of votes at
1-8 the creation election and declare those persons elected to the
1-9 board. The commissioners court also shall declare the terms of
1-10 each director. Successors to the board shall be elected by vote of
1-11 the qualified electors of the entire district for two-year terms.
1-12 The board shall publish notice of each election of directors in a
1-13 newspaper or newspapers that individually or collectively provide
1-14 general circulation in the district one time at least 30 days
1-15 before the date of the election. Any person desiring to have his
1-16 or her name printed on the ballot as a candidate for director shall
1-17 file an application with the secretary of the board of directors at
1-18 least 45 [25] days before the election [a petition signed by at
1-19 least 15 qualified electors]. The board shall canvass the returns
1-20 and declare the results. A vacancy in office shall be filled for
1-21 the unexpired term by appointment by the remainder of the board of
1-22 directors.
1-23 (g) Each member of the board shall qualify by executing the
1-24 constitutional oath of office and may be required to execute [by
2-1 executing] good and sufficient bond to be approved by the
2-2 commissioners court for $5,000 payable to the district, conditioned
2-3 upon the faithful performance of that director's duties as
2-4 director. The oath and bond shall be kept in the permanent records
2-5 of the district. The district may provide for directors' bonds
2-6 with district funds.
2-7 SECTION 2. Sections 4 and 5, Chapter 214, Acts of the 66th
2-8 Legislature, Regular Session, 1979, are amended to read as follows:
2-9 Sec. 4. POWERS AND DUTIES. (a) The board shall manage,
2-10 control, and administer the hospital system and all funds and
2-11 resources of the district, but in no event shall any operating,
2-12 depreciation, or building reserves be invested in any funds or
2-13 securities other than those specified in Article 836 or 837,
2-14 Revised [Civil] Statutes [of Texas, 1925, as amended]. The
2-15 district through its board may sue and be sued and may promulgate
2-16 rules governing the operation of the hospital, hospital system, its
2-17 staff, and its employees. The board may appoint qualified persons
2-18 as administrator of the hospital district, attorney for the
2-19 district, and assistant to the administrator. The administrator,
2-20 the attorney, and the assistant administrator, if any, shall serve
2-21 at the will of the board and shall receive the compensation
2-22 determined by the board. The administrator may [shall], on
2-23 assuming his or her duties, execute a bond payable to the hospital
2-24 district in an amount to be set by the board, in no event less than
2-25 $5,000, conditioned that he or she shall perform the duties
2-26 required of him or her and containing such other conditions as the
3-1 board may require. The board may pay for the bond with district
3-2 funds. The administrator shall supervise all the work and
3-3 activities of the district and shall have general direction of the
3-4 affairs of the district, subject to the limitations as may be
3-5 prescribed by the board. The board may appoint to the staff
3-6 doctors it may deem necessary for the efficient operation of the
3-7 district and may provide for temporary appointments to the staff if
3-8 warranted by circumstances. The board may delegate to the
3-9 administrator the authority to employ technicians, nurses, and
3-10 employees of the district.
3-11 (b) The board may purchase or lease property, facilities,
3-12 and equipment for the district to use in the hospital system and
3-13 may mortgage or pledge the property, facilities, or equipment as
3-14 security for the payment of the purchase price.
3-15 (c) The board may contract with other political subdivisions
3-16 or governmental agencies whereby the district will provide
3-17 investigatory or other services as to facilities for the medical
3-18 care, hospital, or welfare needs of the inhabitants of the district
3-19 and may contract with any county or incorporated municipality
3-20 located outside its boundaries for reimbursement for the care and
3-21 treatment of the sick, diseased, or injured persons of that county
3-22 or municipality. The district may also contract with the state or
3-23 agencies of the federal government for the reimbursement for the
3-24 treatment of sick, diseased, or injured persons.
3-25 (d) The board may enter into an interlocal agreement with
3-26 another political subdivision for the purpose of operating the
4-1 hospital district.
4-2 (e) The board may also enter into a contract or contracts to
4-3 provide administrative and other personnel for the operation of the
4-4 hospital facilities, but in no event may a contract be for a period
4-5 in excess of 25 years from the date the contract is entered into.
4-6 The board may transfer district hospital facilities by lease to
4-7 individuals, corporations, or other legal entities and may sell or
4-8 otherwise dispose of the district's property, facilities, and
4-9 equipment.
4-10 (f) The board may provide retirement benefits for the
4-11 employees of the district by establishing or administering a
4-12 retirement program or electing to participate in the Texas County
4-13 and District Retirement System or any other statewide retirement
4-14 system in which the district is eligible to participate.
4-15 (g) The board may spend district funds to recruit
4-16 physicians, nurses, and other trained medical personnel. The board
4-17 may contract with one or more full-time medical students or other
4-18 students in a health occupation, each of whom must be enrolled in
4-19 good standing in an accredited medical school, college, or
4-20 university, to pay the student's tuition or other expenses in
4-21 consideration of the student's contractual agreement to serve as an
4-22 employee or independent contractor for the district under terms
4-23 provided in the contract.
4-24 (h) The board may institute a suit to enforce the payment of
4-25 taxes and to foreclose liens to secure the payment of taxes due the
4-26 district.
5-1 Sec. 5. BUDGET. The district shall be operated on the basis
5-2 of a fiscal year established by the board, provided the fiscal year
5-3 may not be changed during the time revenue bonds of the district
5-4 are outstanding or more than once in any 24-month period. The
5-5 board shall have an annual audit made of the financial condition of
5-6 the district, which together with other records of the district
5-7 shall be open to inspection at the principal office of the
5-8 district. The administrator shall prepare an annual budget for
5-9 approval by the board. The budget shall also contain a complete
5-10 financial statement of the district showing all outstanding
5-11 obligations of the district, the cash on hand to the credit of each
5-12 fund of the district, the funds received from all sources during
5-13 the previous year, the funds available from all sources during the
5-14 ensuing year, the balances expected at the end of the year in which
5-15 the budget is being prepared, estimated revenues and balances
5-16 available to cover the proposed budget, and the estimated tax rate
5-17 that will be required. A public hearing on the annual budget shall
5-18 be held by the board after notice of a hearing has been published
5-19 in accordance with Chapter 551, Government Code [a newspaper with
5-20 general circulation in the district one time at least 10 days
5-21 before the date set for the hearing]. Any person residing in the
5-22 district is entitled to be present and participate in the hearing.
5-23 At the conclusion of the hearing, the budget, as proposed by the
5-24 administrator, shall be acted on by the board. The board shall
5-25 have authority to make changes in the budget that in its judgment
5-26 the law warrants and the interest of the taxpayers demands. No
6-1 expenditure may be made for any expense not included in the annual
6-2 budget or an amendment to it. The annual budget may be amended
6-3 from time to time as the circumstances may require, but the annual
6-4 budget and all amendments to it shall be approved by the board. As
6-5 soon as practicable after the close of each fiscal year, the
6-6 administrator shall prepare for the board a full sworn statement of
6-7 all money belonging to the district and a full account of the
6-8 disbursements of same.
6-9 SECTION 3. Subsection (a), Section 6, Chapter 214, Acts of
6-10 the 66th Legislature, Regular Session, 1979, is amended to read as
6-11 follows:
6-12 (a) The board may issue and sell its bonds in the name and
6-13 on the faith and credit of the hospital district for any purpose
6-14 related to the purchase, construction, acquisition, repair, and
6-15 renovation of buildings and improvements and equipping the same for
6-16 hospital purposes. At the time of the issuance of any bonds
6-17 payable from taxation [by the district], a tax shall be levied by
6-18 the board sufficient to create an interest and sinking fund to pay
6-19 the interest on and principal of the bonds as they mature,
6-20 providing that the tax together with any other taxes levied for the
6-21 district shall not exceed the limit approved by the voters at the
6-22 election authorizing the levy of taxes [75 cents on each $100
6-23 valuation of all taxable property located in the district subject
6-24 to hospital district taxation in any one year]. No bonds may be
6-25 issued by the hospital district except refunding bonds until
6-26 authorized by a majority of the qualified electors of the district.
7-1 The board, in ordering a bond election, shall specify the date of
7-2 the election, the amount of bonds to be authorized, the maximum
7-3 maturity of the bonds, the place or places where the election will
7-4 be held, and the presiding judge and alternate judge for each
7-5 voting place and shall provide for clerks as in county elections.
7-6 Section 41.001, [9b, Texas] Election Code, [as amended (Article
7-7 2.01b, Vernon's Texas Election Code),] does not apply to a bond
7-8 election. Notice of any bond election shall be given as provided
7-9 in Article 704, Revised [Civil] Statutes [of Texas, 1925, as
7-10 amended], and the election shall be conducted in accordance with
7-11 the [Texas] Election Code[, as amended], except as modified by the
7-12 provisions of this Act. The board shall canvass the returns and
7-13 declare the results.
7-14 SECTION 4. Section 8, Chapter 214, Acts of the 66th
7-15 Legislature, Regular Session, 1979, is amended to read as follows:
7-16 Sec. 8. REVENUE BONDS. In addition to the power to issue
7-17 bonds payable from taxes levied by the district as contemplated by
7-18 Section 6 of this Act, the board may issue revenue bonds and refund
7-19 any previously issued revenue bonds for purchasing, constructing,
7-20 acquiring, repairing, equipping, or renovating buildings and
7-21 improvements for hospital purposes, and for acquiring sites for
7-22 hospital purposes. The bonds shall be payable from and secured by
7-23 a pledge of all or any part of the revenues of the district to be
7-24 derived from the operation of its hospital or hospitals, and the
7-25 bonds may be additionally secured by a mortgage or deed or trust
7-26 lien on any part or all of its property. The bonds shall be issued
8-1 in the manner and in accordance with the procedures and
8-2 requirements specified for the issuance of revenue bonds by county
8-3 hospital authorities in Sections 264.042, 264.043, 264.046,
8-4 264.047, 264.048, and 264.049, Health and Safety Code [8, 10, 11,
8-5 12, and 13 of Chapter 122, Acts of the 58th Legislature, 1963, as
8-6 amended (Article 4494r, Vernon's Texas Civil Statutes)].
8-7 SECTION 5. Subsection (b), Section 9, Chapter 214, Acts of
8-8 the 66th Legislature, Regular Session, 1979, is amended to read as
8-9 follows:
8-10 (b) The board may prescribe the method and manner of making
8-11 purchases and expenditures by and for the hospital district and may
8-12 prescribe all accounting and control procedures. Contracts for
8-13 construction involving the expenditure of more than $10,000 may be
8-14 made only after advertising in the manner provided by Section
8-15 252.021, Local Government Code [Chapter 163, General Laws, Acts of
8-16 the 42nd Legislature, Regular Session, 1931, as amended (Article
8-17 2368a, Vernon's Texas Civil Statutes)]. The provisions of Chapter
8-18 2253, Government Code [Article 5160, Revised Civil Statutes of
8-19 Texas, 1925, as amended], relating to performance and payment bonds
8-20 shall apply to construction contracts let by the district. The
8-21 district may acquire equipment for use in its hospital system and
8-22 mortgage or pledge the property acquired as security for the
8-23 payment of the purchase price. Except as permitted in the
8-24 preceding sentence and Sections 6, 7, and 8 of this Act, the
8-25 district may incur no obligation payable from revenues of the
8-26 district, tax or otherwise, except those on hand or to be on hand
9-1 within the then current and following fiscal years of the
9-2 district.
9-3 SECTION 6. Subsection (a), Section 13, Chapter 214, Acts of
9-4 the 66th Legislature, Regular Session, 1979, is amended to read as
9-5 follows:
9-6 (a) The district shall have the right and power of eminent
9-7 domain for the purpose of acquiring by condemnation any and all
9-8 property of any kind and character in fee simple, or any lesser
9-9 interest in property, within the boundaries of the district
9-10 necessary or convenient to the powers, rights, and privileges
9-11 conferred by this Act, in the manner provided by the general law
9-12 with respect to condemnation by counties. The district shall not
9-13 be required to make deposits in the registry of the trial court of
9-14 the sum required by Section 21.021, Property Code [Paragraph 2,
9-15 Article 3268, Revised Civil Statutes of Texas, 1925, as amended],
9-16 or to make bond as provided in that law. In condemnation
9-17 proceedings being prosecuted by the district, the district shall
9-18 not be required to pay in advance or give bond or other security
9-19 for costs in the trial court or to give any bond otherwise required
9-20 for the issuance of a temporary restraining order or a temporary
9-21 injunction or to give bond for costs or for supersedeas on any
9-22 appeal or writ of error.
9-23 SECTION 7. Section 14, Chapter 214, Acts of the 66th
9-24 Legislature, Regular Session, 1979, is amended to read as follows:
9-25 Sec. 14. TAX ASSESSMENT AND COLLECTION. (a) The board may
9-26 levy taxes for the entire year in which the district is created as
10-1 a result of the election provided in this Act. All taxes of the
10-2 district shall be assessed and collected on county tax values as
10-3 provided in Subsection (b) of this section unless the board by
10-4 majority vote elects to have taxes assessed and collected by its
10-5 own tax assessor-collector under Subsection (b) [(c)] of this
10-6 section. An election may be held annually before December 1 and
10-7 shall govern the manner in which taxes are subsequently assessed
10-8 and collected until changed by a similar resolution. Hospital tax
10-9 shall be levied on all taxable property within the district subject
10-10 to hospital district taxation.
10-11 (b) The board may annually impose property taxes in an
10-12 amount not to exceed the limit approved by the voters at the
10-13 election authorizing the levy of taxes. The tax rate for all
10-14 purposes may not exceed 75 cents on each $100 valuation of all
10-15 taxable property in the district. The taxes may be used to pay for
10-16 indebtedness issued or assumed by the district and for the
10-17 maintenance and operation expenses of the district. The district
10-18 may not impose taxes to pay the principal of or interest on revenue
10-19 bonds. The Tax Code governs the appraisal, assessment, and
10-20 collection of district taxes. The board may provide for the
10-21 appointment of a tax assessor-collector of the district or may
10-22 contract for the assessment and collection of taxes as provided by
10-23 the Tax Code. [Under this subsection, district taxes shall be
10-24 assessed and collected on county tax values in the same manner as
10-25 provided by law with relation to county taxes. The tax
10-26 assessor-collector of Hardeman County shall be charged and required
11-1 to accomplish the assessment and collection of all taxes levied by
11-2 and on behalf of the district. The assessor-collector of taxes
11-3 shall charge and deduct from payments to the hospital district an
11-4 amount as fees for assessing and collecting the taxes at a rate of
11-5 one percent of the taxes assessed and one percent of the taxes
11-6 collected, but in no event shall the amount paid exceed $5,000 in
11-7 any one calendar year. These fees shall be deposited in the
11-8 officers salary fund of the county and reported as fees of office
11-9 of the county tax assessor-collector. Interest and penalties on
11-10 taxes paid to the hospital district shall be the same as in the
11-11 case of county taxes. Discounts shall be the same as allowed by
11-12 the county. The residue of tax collections after deductions of
11-13 discounts and fees for assessing and collecting shall be deposited
11-14 in the district's depository. The bonds of the county tax
11-15 assessor-collector shall stand as security for the proper
11-16 performance of his or her duties as assessor-collector of the
11-17 district; or if in the judgment of the board it is necessary,
11-18 additional bond payable to the district may be required. In all
11-19 matters pertaining to the assessment, collection, and enforcement
11-20 of taxes for the district, the county tax assessor-collector may
11-21 act in all respects according to the laws of the State of Texas
11-22 relating to state and county taxes.]
11-23 [(c) Under this subsection, taxes shall be assessed and
11-24 collected by a tax assessor-collector appointed by the board, which
11-25 shall also fix the term of his or her employment, compensation, and
11-26 requirement for bond to assure the faithful performance of his or
12-1 her duties, but in no event shall the bond be for less than $5,000.
12-2 The directors shall appoint five persons to serve as a board of
12-3 equalization for two-year terms and shall fix their compensation.
12-4 The members of the board of equalization and the tax
12-5 assessor-collector shall be residents of the district, and each
12-6 shall have the same duties, including the obligation to execute the
12-7 oath of office, as required of county officials exercising those
12-8 powers and duties. Except as provided in this law to the contrary,
12-9 all the provisions of Title 122, Revised Civil Statutes of Texas,
12-10 1925, as amended, shall apply to the district.]
12-11 SECTION 8. Chapter 214, Acts of the 66th Legislature,
12-12 Regular Session, 1979, is amended by adding Sections 16a, 16b, and
12-13 16c to read as follows:
12-14 Sec. 16a. EMERGENCY LOANS. (a) If the board declares that
12-15 funds are not available to meet the lawfully authorized obligations
12-16 of the district and that an emergency exists, the board may borrow
12-17 money at a rate not to exceed the maximum annual percentage rate
12-18 allowed by law for district obligations at the time of the loan.
12-19 (b) To secure an emergency loan, the board may pledge:
12-20 (1) the revenues of the district that are not pledged
12-21 to pay the bonded indebtedness of the district;
12-22 (2) district taxes to be levied by the district during
12-23 the 12-month period following the date of the pledge that are not
12-24 pledged to pay the principal of or interest on district bonds; or
12-25 (3) district bonds that have been authorized but not
12-26 sold.
13-1 (c) An emergency loan for which taxes or bonds are pledged
13-2 shall mature not later than the first anniversary of the date on
13-3 which the loan is made. An emergency loan for which district
13-4 revenues are pledged shall mature not later than the fifth
13-5 anniversary of the date on which the loan is made.
13-6 (d) The board may not spend money obtained from a loan under
13-7 this section for any purpose other than the purpose for which the
13-8 board declared an emergency. If taxes or bonds are pledged to pay
13-9 the loan, the board may not spend the loan proceeds for a purpose
13-10 other than the purpose for which the taxes were levied or the bonds
13-11 were authorized.
13-12 Sec. 16b. OTHER LOANS. (a) The board may borrow money at a
13-13 rate not to exceed the maximum annual percentage rate allowed by
13-14 law for district obligations at the time of the loan.
13-15 (b) To secure a loan, the board may pledge:
13-16 (1) the revenues of the district that are not pledged
13-17 to pay the bonded indebtedness of the district;
13-18 (2) district taxes to be levied by the district during
13-19 the 12-month period following the date of the pledge that are not
13-20 pledged to pay the principal of or interest on district bonds; or
13-21 (3) district bonds that have been authorized but not
13-22 sold.
13-23 (c) A loan for which taxes or bonds are pledged shall mature
13-24 not later than the first anniversary of the date on which the loan
13-25 is made. A loan for which district revenues are pledged shall
13-26 mature not later than the fifth anniversary of the date on which
14-1 the loan is made.
14-2 Sec. 16c. DISSOLUTION. (a) The district may be dissolved
14-3 only if the dissolution is approved by a majority of the qualified
14-4 voters of the district voting in an election called and held for
14-5 that purpose.
14-6 (b) The board may order an election on the question of
14-7 dissolving the district and disposing of the district's assets and
14-8 obligations. The board shall order an election if the board
14-9 receives a petition requesting an election that is signed by a
14-10 number of residents of the district equal to at least 15 percent of
14-11 the registered voters in the district.
14-12 (c) The election shall be held not later than the 60th day
14-13 after the date the election is ordered. Section 41.001(a),
14-14 Election Code, does not apply to an election ordered under this
14-15 section. The order calling the election shall state:
14-16 (1) the nature of the election, including the
14-17 proposition that is to appear on the ballot;
14-18 (2) the date of the election;
14-19 (3) the hours during which the polls will be open; and
14-20 (4) the location of the polling places.
14-21 (d) The board shall give notice of the election by
14-22 publishing a substantial copy of the election order in a newspaper
14-23 with general circulation in the district once a week for two
14-24 consecutive weeks. The first publication must appear not less than
14-25 35 days before the date set for the election. The ballot for the
14-26 election shall be printed to permit voting for or against the
15-1 proposition: "The dissolution of the Hardeman County Hospital
15-2 District."
15-3 (e) If a majority of the votes in the election favor
15-4 dissolution, the board shall find that the district is dissolved.
15-5 If a majority of the votes in the election do not favor
15-6 dissolution, the board shall continue to administer the district,
15-7 and another election on the question of dissolution may not be held
15-8 before the first anniversary of the most recent election to
15-9 dissolve the district.
15-10 (f) If a majority of the votes in the election favor
15-11 dissolution, the board shall:
15-12 (1) transfer the land, buildings, improvements,
15-13 equipment, and other assets that belong to the district to a county
15-14 or another governmental entity in the county in which the district
15-15 is located; or
15-16 (2) administer the property, assets, and debts until
15-17 all funds have been disposed of and all district debts have been
15-18 paid or settled.
15-19 (g) If the district transfers the land, buildings,
15-20 improvements, equipment, and other assets to a county or other
15-21 governmental entity, the county or entity assumes all debts and
15-22 obligations of the district at the time of the transfer, and the
15-23 district is dissolved.
15-24 (h) After the board finds that the district is dissolved the
15-25 board shall:
15-26 (1) determine the debt owed by the district; and
16-1 (2) impose on the property included in the district's
16-2 tax rolls a tax that is in proportion of the debt to the property
16-3 value.
16-4 (i) When all outstanding debts and obligations of the
16-5 district are paid, the board shall order the secretary to return
16-6 the pro rata share of all unused tax money to each district
16-7 taxpayer.
16-8 (j) A taxpayer may request that the taxpayer's share of
16-9 surplus tax money be credited to the taxpayer's county taxes. If
16-10 the taxpayer requests the credit, the board shall direct the
16-11 secretary to transmit the funds to the county tax
16-12 assessor-collector.
16-13 (k) After the district has paid all its debts and has
16-14 disposed of all its assets and funds as prescribed by this section,
16-15 the board shall file a written report with the Commissioners Court
16-16 of Hardeman County setting forth a summary of the board's actions
16-17 in dissolving the district.
16-18 (l) Not later than the 10th day after the date it receives
16-19 the report and determines that the requirements of this section
16-20 have been fulfilled, the Commissioners Court of Hardeman County
16-21 shall enter an order dissolving the district and releasing the
16-22 board from any further duty or obligation.
16-23 (m) Notwithstanding any other provision of this Act, the
16-24 district may not be dissolved unless the board provides for the
16-25 sale or transfer of the district's assets and liabilities to
16-26 another person or entity. The dissolution of the district and the
17-1 sale or transfer of the district's assets or liabilities may not
17-2 contravene a trust indenture or bond resolution relating to the
17-3 outstanding bonds of the district. The dissolution and sale or
17-4 transfer does not diminish or impair the rights of a holder of an
17-5 outstanding bond, warrant, or other obligation of the district.
17-6 (n) The sale or transfer of the district's assets and
17-7 liabilities must satisfy the debt and bond obligations of the
17-8 district in a manner that protects the interests of the residents
17-9 of the district, including the residents' collective property
17-10 rights in the district's assets. A grant from federal funds is an
17-11 obligation to be repaid in satisfaction. The district may not
17-12 transfer or dispose of the district's assets except for due
17-13 compensation unless the transfer is made to another governmental
17-14 entity that serves the district and the transferred assets are to
17-15 be used for the benefit of the residents of the district.
17-16 SECTION 9. This Act takes effect September 1, 1999.
17-17 SECTION 10. The importance of this legislation and the
17-18 crowded condition of the calendars in both houses create an
17-19 emergency and an imperative public necessity that the
17-20 constitutional rule requiring bills to read on three several days
17-21 in each house be suspended, and this rule is hereby suspended.