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 (d), (f), and (g), Section 3, Chapter
1-4 214, Acts of the 66th Legislature, Regular Session, 1979, are
1-5 amended to read as follows:
1-6 (d) At the election to create the district, a separate
1-7 ballot shall be submitted to the voters containing the names of all
1-8 qualified persons who filed an application with the commissioners
1-9 court at least 25 days before the election asking to have their
1-10 names placed on the ballot for the office of director. Each voter
1-11 shall vote for seven persons and the seven receiving the highest
1-12 number of votes are the first board of directors. Of those
1-13 elected, the three directors receiving the lowest number of votes
1-14 shall serve until the first Saturday in May [April] following the
1-15 election. The four directors receiving the highest number of votes
1-16 shall serve until the first Saturday in May [April] of the year
1-17 following the expiration of the terms of the other three directors.
1-18 (f) The commissioners court shall determine the seven
1-19 candidates for director receiving the highest number of votes at
1-20 the creation election and declare those persons elected to the
1-21 board. The commissioners court also shall declare the terms of
1-22 each director. Successors to the board shall be elected by vote of
1-23 the qualified electors of the entire district for two-year terms.
1-24 A regular election for directors shall be held as provided by
2-1 Section 41.001, Election Code. The board shall publish notice of
2-2 each election of directors in a newspaper or newspapers that
2-3 individually or collectively provide general circulation in the
2-4 district one time at least 30 days before the date of the election.
2-5 Any person desiring to have his or her name printed on the ballot
2-6 as a candidate for director shall file an application with the
2-7 secretary of the board of directors at least 45 [25] days before
2-8 the election [a petition signed by at least 15 qualified electors].
2-9 The board shall canvass the returns and declare the results. A
2-10 vacancy in office shall be filled for the unexpired term by
2-11 appointment by the remainder of the board of directors.
2-12 (g) Each member of the board shall qualify by executing the
2-13 constitutional oath of office and may be required to execute [by
2-14 executing] good and sufficient bond to be approved by the
2-15 commissioners court for $5,000 payable to the district, conditioned
2-16 upon the faithful performance of that director's duties as
2-17 director. The oath and bond shall be kept in the permanent records
2-18 of the district. The district may provide for directors' bonds
2-19 with district funds.
2-20 SECTION 2. Section 4, Chapter 214, Acts of the 66th
2-21 Legislature, Regular Session, 1979, is amended to read as follows:
2-22 Sec. 4. POWERS AND DUTIES. (a) The board shall manage,
2-23 control, and administer the hospital system and all funds and
2-24 resources of the district, but in no event shall any operating,
2-25 depreciation, or building reserves be invested in any funds or
2-26 securities other than those specified in Article 836 or 837,
3-1 Revised [Civil] Statutes [of Texas, 1925, as amended]. The
3-2 district through its board may sue and be sued and may promulgate
3-3 rules governing the operation of the hospital, hospital system, its
3-4 staff, and its employees. The board may appoint qualified persons
3-5 as administrator of the hospital district, attorney for the
3-6 district, and assistant to the administrator. The administrator,
3-7 the attorney, and the assistant administrator, if any, shall serve
3-8 at the will of the board and shall receive the compensation
3-9 determined by the board. The administrator may [shall], on
3-10 assuming his or her duties, execute a bond payable to the hospital
3-11 district in an amount to be set by the board, in no event less than
3-12 $5,000, conditioned that he or she shall perform the duties
3-13 required of him or her and containing such other conditions as the
3-14 board may require. The board may pay for the bond with district
3-15 funds. The administrator shall supervise all the work and
3-16 activities of the district and shall have general direction of the
3-17 affairs of the district, subject to the limitations as may be
3-18 prescribed by the board. The board may appoint to the staff
3-19 doctors it may deem necessary for the efficient operation of the
3-20 district and may provide for temporary appointments to the staff if
3-21 warranted by circumstances. The board may delegate to the
3-22 administrator the authority to employ technicians, nurses, and
3-23 employees of the district.
3-24 (b) The board may purchase or lease property, including
3-25 facilities or equipment, for the district to use in the hospital
3-26 system and may mortgage or pledge the property as security for the
4-1 payment of the purchase price.
4-2 (c) The board may contract with other political subdivisions
4-3 or governmental agencies whereby the district will provide
4-4 investigatory or other services as to facilities for the medical
4-5 care, hospital, or welfare needs of the inhabitants of the district
4-6 and may contract with any county or incorporated municipality
4-7 located outside its boundaries for reimbursement for the care and
4-8 treatment of the sick, diseased, or injured persons of that county
4-9 or municipality. The district may also contract with the state or
4-10 agencies of the federal government for the reimbursement for the
4-11 treatment of sick, diseased, or injured persons.
4-12 (d) The board may enter into an interlocal agreement with
4-13 another political subdivision to operate the hospital district.
4-14 (e) The board may contract to provide administrative or
4-15 other personnel for the operation of the hospital facilities. A
4-16 contract entered into under this subsection may not have a term
4-17 longer than 25 years.
4-18 (f) The board may lease district hospital facilities to
4-19 individuals, corporations, or other legal entities and may sell or
4-20 otherwise dispose of the district's property.
4-21 (g) The board may provide retirement benefits for district
4-22 employees by establishing or administering a retirement program or
4-23 electing to participate in the Texas County and District Retirement
4-24 System or any other statewide retirement system for which the
4-25 district is eligible.
4-26 (h) The board may spend district funds to recruit
5-1 physicians, nurses, and other trained medical personnel. The board
5-2 may contract with one or more full-time medical students or other
5-3 students in a health occupation, each of whom is enrolled in and in
5-4 good standing at an accredited medical school, college, or
5-5 university, to pay the student's tuition or other expenses in
5-6 consideration of the student's agreement to serve as an employee or
5-7 independent contractor for the district.
5-8 (i) The board may institute a suit to enforce the payment of
5-9 taxes and to foreclose liens to secure the payment of taxes due to
5-10 the district.
5-11 SECTION 3. Section 5, Chapter 214, Acts of the 66th
5-12 Legislature, Regular Session, 1979, is amended to read as follows:
5-13 Sec. 5. BUDGET. The district shall be operated on the basis
5-14 of a fiscal year established by the board, provided the fiscal year
5-15 may not be changed during the time revenue bonds of the district
5-16 are outstanding or more than once in any 24-month period. The
5-17 board shall have an annual audit made of the financial condition of
5-18 the district, which together with other records of the district
5-19 shall be open to inspection at the principal office of the
5-20 district. The administrator shall prepare an annual budget for
5-21 approval by the board. The budget shall also contain a complete
5-22 financial statement of the district showing all outstanding
5-23 obligations of the district, the cash on hand to the credit of each
5-24 fund of the district, the funds received from all sources during
5-25 the previous year, the funds available from all sources during the
5-26 ensuing year, the balances expected at the end of the year in which
6-1 the budget is being prepared, estimated revenues and balances
6-2 available to cover the proposed budget, and the estimated tax rate
6-3 that will be required. A public hearing on the annual budget shall
6-4 be held by the board after notice has been given in the manner
6-5 provided by Subchapter C, Chapter 551, Government Code [of a
6-6 hearing has been published in a newspaper with general circulation
6-7 in the district one time at least 10 days before the date set for
6-8 the hearing]. Any person residing in the district is entitled to
6-9 be present and participate in the hearing. At the conclusion of
6-10 the hearing, the budget, as proposed by the administrator, shall be
6-11 acted on by the board. The board shall have authority to make
6-12 changes in the budget that in its judgment the law warrants and the
6-13 interest of the taxpayers demands. No expenditure may be made for
6-14 any expense not included in the annual budget or an amendment to
6-15 it. The annual budget may be amended from time to time as the
6-16 circumstances may require, but the annual budget and all amendments
6-17 to it shall be approved by the board. As soon as practicable after
6-18 the close of each fiscal year, the administrator shall prepare for
6-19 the board a full sworn statement of all money belonging to the
6-20 district and a full account of the disbursements of same.
6-21 SECTION 4. Subsection (a), Section 6, Chapter 214, Acts of
6-22 the 66th Legislature, Regular Session, 1979, is amended to read as
6-23 follows:
6-24 (a) The board may issue and sell its bonds in the name and
6-25 on the faith and credit of the hospital district for any purpose
6-26 related to the purchase, construction, acquisition, repair, and
7-1 renovation of buildings and improvements and equipping the same for
7-2 hospital purposes. At the time of the issuance of any bonds
7-3 payable from taxation [by the district], a tax shall be levied by
7-4 the board sufficient to create an interest and sinking fund to pay
7-5 the interest on and principal of the bonds as they mature,
7-6 providing that the tax together with any other taxes levied for the
7-7 district shall not exceed the limit approved by the voters at the
7-8 election authorizing the levy of taxes [75 cents on each $100
7-9 valuation of all taxable property located in the district subject
7-10 to hospital district taxation in any one year]. No bonds may be
7-11 issued by the hospital district except refunding bonds until
7-12 authorized by a majority of the qualified electors of the district.
7-13 The board, in ordering a bond election, shall specify the date of
7-14 the election, the amount of bonds to be authorized, the maximum
7-15 maturity of the bonds, the place or places where the election will
7-16 be held, and the presiding judge and alternate judge for each
7-17 voting place and shall provide for clerks as in county elections.
7-18 Chapter 41, [Section 9b, Texas] Election Code[, as amended (Article
7-19 2.01b, Vernon's Texas Election Code)], does not apply to a bond
7-20 election. Notice of any bond election shall be given as provided
7-21 in Article 704, Revised [Civil] Statutes [of Texas, 1925, as
7-22 amended], and the election shall be conducted in accordance with
7-23 the [Texas] Election Code, [as amended,] except as modified by the
7-24 provisions of this Act. The board shall canvass the returns and
7-25 declare the results.
7-26 SECTION 5. Section 8, Chapter 214, Acts of the 66th
8-1 Legislature, Regular Session, 1979, is amended to read as follows:
8-2 Sec. 8. REVENUE BONDS. In addition to the power to issue
8-3 bonds payable from taxes levied by the district as contemplated by
8-4 Section 6 of this Act, the board may issue revenue bonds and refund
8-5 any previously issued revenue bonds for purchasing, constructing,
8-6 acquiring, repairing, equipping, or renovating buildings and
8-7 improvements for hospital purposes, and for acquiring sites for
8-8 hospital purposes. The bonds shall be payable from and secured by
8-9 a pledge of all or any part of the revenues of the district to be
8-10 derived from the operation of its hospital or hospitals, and the
8-11 bonds may be additionally secured by a mortgage or deed of trust
8-12 lien on any part or all of its property. The bonds shall be issued
8-13 in the manner and in accordance with the procedures and
8-14 requirements specified for the issuance of revenue bonds by county
8-15 hospital authorities in Sections 264.042, 264.043, 264.046,
8-16 264.047, 264.048, and 264.049, Health and Safety Code [8, 10, 11,
8-17 12, and 13 of Chapter 122, Acts of the 58th Legislature, 1963, as
8-18 amended (Article 4494r, Vernon's Texas Civil Statutes)].
8-19 SECTION 6. Subsection (b), Section 9, Chapter 214, Acts of
8-20 the 66th Legislature, Regular Session, 1979, is amended to read as
8-21 follows:
8-22 (b) The board may prescribe the method and manner of making
8-23 purchases and expenditures by and for the hospital district and may
8-24 prescribe all accounting and control procedures. Contracts for
8-25 construction involving the expenditure of more than $15,000
8-26 [$10,000] may be made only after advertising as [in the manner]
9-1 provided by Subchapter B, Chapter 271, Local Government Code
9-2 [Chapter 163, General Laws, Acts of the 42nd Legislature, Regular
9-3 Session, 1931, as amended (Article 2368a, Vernon's Texas Civil
9-4 Statutes)]. The provisions of Chapter 2253, Government Code
9-5 [Article 5160, Revised Civil Statutes of Texas, 1925, as amended],
9-6 relating to performance and payment bonds shall apply to
9-7 construction contracts let by the district. The district may
9-8 acquire equipment for use in its hospital system and mortgage or
9-9 pledge the property acquired as security for the payment of the
9-10 purchase price. Except as permitted in the preceding sentence and
9-11 Sections 6, 7, and 8 of this Act, the district may incur no
9-12 obligation payable from revenues of the district, tax or otherwise,
9-13 except those on hand or to be on hand within the then current and
9-14 following fiscal years of the district.
9-15 SECTION 7. Subsection (a), Section 13, Chapter 214, Acts of
9-16 the 66th Legislature, Regular Session, 1979, is amended to read as
9-17 follows:
9-18 (a) The district shall have the right and power of eminent
9-19 domain for the purpose of acquiring by condemnation any and all
9-20 property of any kind and character in fee simple, or any lesser
9-21 interest in property, within the boundaries of the district
9-22 necessary or convenient to the powers, rights, and privileges
9-23 conferred by this Act, in the manner provided by the general law
9-24 with respect to condemnation by counties. The district shall not
9-25 be required to make deposits in the registry of the trial court of
9-26 the sum required by Section 21.021, Property Code [Paragraph 2,
10-1 Article 3268, Revised Civil Statutes of Texas, 1925, as amended],
10-2 or to make bond as provided in that law. In condemnation
10-3 proceedings being prosecuted by the district, the district shall
10-4 not be required to pay in advance or give bond or other security
10-5 for costs in the trial court or to give any bond otherwise required
10-6 for the issuance of a temporary restraining order or a temporary
10-7 injunction or to give bond for costs or for supersedeas on any
10-8 appeal or writ of error.
10-9 SECTION 8. Section 14, Chapter 214, Acts of the 66th
10-10 Legislature, Regular Session, 1979, is amended to read as follows:
10-11 Sec. 14. TAX ASSESSMENT AND COLLECTION. (a) The board may
10-12 levy taxes for the entire year in which the district is created as
10-13 a result of the election provided in this Act. All taxes of the
10-14 district shall be assessed and collected on county tax values as
10-15 provided in Subsection (b) of this section unless the board by
10-16 majority vote elects to have taxes assessed and collected by its
10-17 own tax assessor-collector under [Subsection (c) of] this section.
10-18 An election may be held annually before December 1 and shall govern
10-19 the manner in which taxes are subsequently assessed and collected
10-20 until changed by a similar resolution. Hospital tax shall be
10-21 levied on all taxable property within the district subject to
10-22 hospital district taxation.
10-23 (b) The board annually may impose property taxes in an
10-24 amount not to exceed the limit approved by the voters at the
10-25 election authorizing the levy of taxes. The tax rate for all
10-26 purposes may not exceed 75 cents on each $100 valuation of all
11-1 taxable property in the district [Under this subsection, district
11-2 taxes shall be assessed and collected on county tax values in the
11-3 same manner as provided by law with relation to county taxes. The
11-4 tax assessor-collector of Hardeman County shall be charged and
11-5 required to accomplish the assessment and collection of all taxes
11-6 levied by and on behalf of the district. The assessor-collector of
11-7 taxes shall charge and deduct from payments to the hospital
11-8 district an amount as fees for assessing and collecting the taxes
11-9 at a rate of one percent of the taxes assessed and one percent of
11-10 the taxes collected, but in no event shall the amount paid exceed
11-11 $5,000 in any one calendar year. These fees shall be deposited in
11-12 the officers salary fund of the county and reported as fees of
11-13 office of the county tax assessor-collector. Interest and
11-14 penalties on taxes paid to the hospital district shall be the same
11-15 as in the case of county taxes. Discounts shall be the same as
11-16 allowed by the county. The residue of tax collections after
11-17 deductions of discounts and fees for assessing and collecting shall
11-18 be deposited in the district's depository. The bonds of the county
11-19 tax assessor-collector shall stand as security for the proper
11-20 performance of his or her duties as assessor-collector of the
11-21 district; or if in the judgment of the board it is necessary,
11-22 additional bond payable to the district may be required. In all
11-23 matters pertaining to the assessment, collection, and enforcement
11-24 of taxes for the district, the county tax assessor-collector may
11-25 act in all respects according to the laws of the State of Texas
11-26 relating to state and county taxes].
12-1 (c) The taxes may be used to pay:
12-2 (1) the indebtedness issued or assumed by the
12-3 district; and
12-4 (2) the maintenance and operating expenses of the
12-5 district.
12-6 (d) The district may not impose taxes to pay the principal
12-7 of or interest on revenue bonds.
12-8 (e) The Tax Code governs the appraisal, assessment, and
12-9 collection of district taxes.
12-10 (f) The board may provide for the appointment of a tax
12-11 assessor-collector for the district or may contract for the
12-12 assessment and collection of taxes as provided by the Tax Code
12-13 [Under this subsection, taxes shall be assessed and collected by a
12-14 tax assessor-collector appointed by the board, which shall also fix
12-15 the term of his or her employment, compensation, and requirement
12-16 for bond to assure the faithful performance of his or her duties,
12-17 but in no event shall the bond be for less than $5,000. The
12-18 directors shall appoint five persons to serve as a board of
12-19 equalization for two-year terms and shall fix their compensation.
12-20 The members of the board of equalization and the tax
12-21 assessor-collector shall be residents of the district, and each
12-22 shall have the same duties, including the obligation to execute the
12-23 oath of office, as required of county officials exercising those
12-24 powers and duties. Except as provided in this law to the contrary,
12-25 all the provisions of Title 122, Revised Civil Statutes of Texas,
12-26 1925, as amended, shall apply to the district].
13-1 SECTION 9. Chapter 214, Acts of the 66th Legislature,
13-2 Regular Session, 1979, is amended by adding Section 14A to read as
13-3 follows:
13-4 Sec. 14A. BORROWING. (a) The board may borrow money for
13-5 district obligations at the time the loan is made.
13-6 (b) To secure a loan, the board may pledge:
13-7 (1) the revenues of the district that are not pledged
13-8 to pay bonded indebtedness of the district;
13-9 (2) taxes to be levied by the district in the next
13-10 12-month period that are not pledged to pay the principal of or
13-11 interest on district bonds; or
13-12 (3) district bonds that have been authorized but not
13-13 sold.
13-14 (c) A loan for which taxes or bonds are pledged must mature
13-15 not later than the first anniversary of the date on which the loan
13-16 is made. A loan for which district revenues are pledged must
13-17 mature not later than the fifth anniversary of the date on which
13-18 the loan is made.
13-19 SECTION 10. Chapter 214, Acts of the 66th Legislature,
13-20 Regular Session, 1979, is amended by adding Section 21A to read as
13-21 follows:
13-22 Sec. 21A. DISSOLUTION. (a) The district may be dissolved
13-23 only if the dissolution is approved by a majority of the qualified
13-24 voters of the district voting in an election called and held for
13-25 that purpose.
13-26 (b) The board may order an election on the question of
14-1 dissolving the district and disposing of the district's assets and
14-2 obligations. The board shall order an election if the board
14-3 receives a petition requesting an election that is signed by a
14-4 number of residents of the district equal to at least 15 percent of
14-5 the registered voters in the district.
14-6 (c) The election shall be held not later than the 60th day
14-7 after the date the election is ordered. Section 41.001(a),
14-8 Election Code, does not apply to an election ordered under this
14-9 section. The order calling the election shall state:
14-10 (1) the nature of the election, including the
14-11 proposition that is to appear on the ballot;
14-12 (2) the date of the election;
14-13 (3) the hours during which the polls will be open; and
14-14 (4) the location of the polling places.
14-15 (d) The board shall give notice of the election by
14-16 publishing the election order in a newspaper with general
14-17 circulation in the district once a week for two consecutive weeks.
14-18 The first publication must appear not less than 35 days before the
14-19 date set for the election. The ballot for the election shall be
14-20 printed to permit voting for or against the proposition: "The
14-21 dissolution of the Hardeman County Hospital District."
14-22 (e) If a majority of the votes in the election favor
14-23 dissolution, the board shall find that the district is dissolved.
14-24 If a majority of the votes in the election do not favor
14-25 dissolution, the board shall continue to administer the district,
14-26 and another election on the question of dissolution may not be held
15-1 before the first anniversary of the most recent election to
15-2 dissolve the district.
15-3 (f) If a majority of the votes in the election favor
15-4 dissolution, the board shall:
15-5 (1) transfer the land, buildings, improvements,
15-6 equipment, and other assets that belong to the district to a county
15-7 or other governmental agency in the county in which the district is
15-8 located; or
15-9 (2) administer the property, assets, and debts until
15-10 all funds have been disposed of and all district debts have been
15-11 paid or settled.
15-12 (g) If the district transfers the land, buildings,
15-13 improvements, equipment, and other assets to a county or other
15-14 governmental agency, the county or agency assumes all debts and
15-15 obligations of the district at the time of the transfer, and the
15-16 district is dissolved.
15-17 (h) After the board finds that the district is dissolved,
15-18 the board shall:
15-19 (1) determine the debt owed by the district; and
15-20 (2) impose on the property included in the district's
15-21 tax rolls a tax that is in proportion of the debt to the property
15-22 value.
15-23 (i) When all outstanding debts and obligations of the
15-24 district are paid, the board shall order the secretary to return
15-25 the pro rata share of all unused tax money to each district
15-26 taxpayer.
16-1 (j) A taxpayer may request that the taxpayer's share of
16-2 surplus tax money be credited to the taxpayer's county taxes. If a
16-3 taxpayer requests the credit, the board shall direct the secretary
16-4 to transmit the funds to the county tax assessor-collector.
16-5 (k) After the district has paid all its debts and has
16-6 disposed of all its assets and funds as prescribed by this section,
16-7 the board shall file a written report with the Commissioners Court
16-8 of Hardeman County setting forth a summary of the board's actions
16-9 in dissolving the district.
16-10 (l) Not later than the 10th day after the date it receives
16-11 the report and determines that the requirements of this section
16-12 have been fulfilled, the Commissioners Court of Hardeman County
16-13 shall enter an order dissolving the district and releasing the
16-14 board of directors of the district from any further duty or
16-15 obligation.
16-16 (m) Notwithstanding any other provision of this section, the
16-17 district may not be dissolved unless the board provides for the
16-18 sale or transfer of the district's assets and liabilities to
16-19 another person or entity. The dissolution of the district and the
16-20 sale or transfer of the district's assets or liabilities may not
16-21 contravene a trust indenture or bond resolution relating to the
16-22 outstanding bonds of the district. The dissolution and sale or
16-23 transfer does not diminish or impair the rights of a holder of an
16-24 outstanding bond, warrant, or other obligation of the district.
16-25 (n) The sale or transfer of the district's assets and
16-26 liabilities must satisfy the debt and bond obligation of the
17-1 district in a manner that protects the interests of the residents
17-2 of the district, including the residents' collective property
17-3 rights in the district's assets. A grant from federal funds is an
17-4 obligation to be repaid in satisfaction. The district may not
17-5 transfer or dispose of the district's assets except for due
17-6 compensation unless the transfer is made to a governmental agency
17-7 that serves the district and the transferred assets are to be used
17-8 for the benefit of the residents of the district.
17-9 SECTION 11. This Act takes effect September 1, 1999.
17-10 SECTION 12. The changes in law made by this Act to
17-11 Subsection (b), Section 9, Chapter 214, Acts of the 66th
17-12 Legislature, Regular Session, 1979, apply only to a request for
17-13 competitive bids made by the board of directors of the Hardeman
17-14 County Hospital District on or after the effective date of this
17-15 Act. A request for competitive bids by a board made before the
17-16 effective date of this Act is covered by the law in effect when the
17-17 board submitted the request for competitive bids, and the former
17-18 law is continued in effect for that purpose.
17-19 SECTION 13. The importance of this legislation and the
17-20 crowded condition of the calendars in both houses create an
17-21 emergency and an imperative public necessity that the
17-22 constitutional rule requiring bills to be read on three several
17-23 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1624 passed the Senate on
April 8, 1999, by the following vote: Yeas 30, Nays 0; and that
the Senate concurred in House amendment on May 21, 1999, by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1624 passed the House, with
amendment, on May 19, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor