AN ACT
1-1 relating to the Chillicothe 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 74,
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 [provides] general circulation in the district one time at least 30
1-15 days before the date of the election. Any person desiring to have
1-16 his or her name printed on the ballot as a candidate for director
1-17 shall file an application with the secretary of the board of
1-18 directors at least 45 [25] days before the election [a petition
1-19 signed by at least 15 qualified electors]. The board shall canvass
1-20 the returns and declare the results. A vacancy in office shall be
1-21 filled for the unexpired term by appointment by the remainder of
1-22 the board of 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,
2-3 conditioned upon the faithful performance of that director's duties
2-4 as director. The oath and bond shall be kept in the permanent
2-5 records of the district. The district may provide for directors'
2-6 bonds with district funds.
2-7 SECTION 2. Section 4, Chapter 74, Acts of the 66th
2-8 Legislature, Regular Session, 1979, is 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, including
3-12 facilities or equipment, for the district to use in the hospital
3-13 system and may mortgage or pledge the property as security for the
3-14 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 to operate the hospital district.
4-1 (e) The board may contract to provide administrative or
4-2 other personnel for the operation of the hospital facilities. A
4-3 contract entered into under this subsection may not have a term
4-4 longer than 25 years.
4-5 (f) The board may lease district hospital facilities to
4-6 individuals, corporations, or other legal entities and may sell or
4-7 otherwise dispose of the district's property.
4-8 (g) The board may provide retirement benefits for district
4-9 employees by establishing or administering a retirement program or
4-10 electing to participate in the Texas County and District Retirement
4-11 System or any other statewide retirement system for which the
4-12 district is eligible.
4-13 (h) The board may spend district funds to recruit
4-14 physicians, nurses, and other trained medical personnel. The board
4-15 may contract with one or more full-time medical students or other
4-16 students in a health occupation, each of whom is enrolled in and in
4-17 good standing at an accredited medical school, college, or
4-18 university to pay the student's tuition or other expenses in
4-19 consideration of the student's agreement to serve as an employee or
4-20 independent contractor for the district.
4-21 (i) The board may institute a suit to enforce the payment of
4-22 taxes and to foreclose liens to secure the payment of taxes due to
4-23 the district.
4-24 SECTION 3. Section 5, Chapter 74, Acts of the 66th
4-25 Legislature, Regular Session, 1979, is amended to read as follows:
4-26 Sec. 5. BUDGET. The district shall be operated on the basis
5-1 of a fiscal year established by the board, provided the fiscal year
5-2 may not be changed during the time revenue bonds of the district
5-3 are outstanding or more than once in any 24-month period. The
5-4 board shall have an annual audit made of the financial condition of
5-5 the district, which together with other records of the district
5-6 shall be open to inspection at the principal office of the
5-7 district. The administrator shall prepare an annual budget for
5-8 approval by the board. The budget shall also contain a complete
5-9 financial statement of the district showing all outstanding
5-10 obligations of the district, the cash on hand to the credit of each
5-11 fund of the district, the funds received from all sources during
5-12 the previous year, the funds available from all sources during the
5-13 ensuing year, the balances expected at the end of the year in which
5-14 the budget is being prepared, estimated revenues and balances
5-15 available to cover the proposed budget, and the estimated tax rate
5-16 that will be required. A public hearing on the annual budget shall
5-17 be held by the board after notice has been given in the manner
5-18 provided by Subchapter C, Chapter 551, Government Code [of a
5-19 hearing has been published in a newspaper with general circulation
5-20 in the district one time at least 10 days before the date set for
5-21 the hearing]. Any person residing in the district is entitled to
5-22 be present and participate in the hearing. At the conclusion of
5-23 the hearing, the budget, as proposed by the administrator, shall be
5-24 acted on by the board. The board shall have authority to make
5-25 changes in the budget that in its judgment the law warrants and the
5-26 interest of the taxpayers demands. No expenditure may be made for
6-1 any expense not included in the annual budget or an amendment to
6-2 it. The annual budget may be amended from time to time as the
6-3 circumstances may require, but the annual budget and all amendments
6-4 to it shall be approved by the board. As soon as practicable after
6-5 the close of each fiscal year, the administrator shall prepare for
6-6 the board a full sworn statement of all money belonging to the
6-7 district and a full account of the disbursements of same.
6-8 SECTION 4. Subsection (a), Section 6, Chapter 74, Acts of
6-9 the 66th Legislature, Regular Session, 1979, is amended to read as
6-10 follows:
6-11 (a) The board may issue and sell its bonds in the name and
6-12 on the faith and credit of the hospital district for any purpose
6-13 related to the purchase, construction, acquisition, repair, and
6-14 renovation of buildings and improvements and equipping the same for
6-15 hospital purposes. At the time of the issuance of any bonds
6-16 payable from taxation [by the district], a tax shall be levied by
6-17 the board sufficient to create an interest and sinking fund to pay
6-18 the interest on and principal of the bonds as they mature,
6-19 providing that the tax together with any other taxes levied for the
6-20 district shall not exceed the limit approved by the voters at the
6-21 election authorizing the levy of taxes [75 cents on each $100
6-22 valuation of all taxable property located in the district subject
6-23 to hospital district taxation in any one year]. No bonds may be
6-24 issued by the hospital district except refunding bonds until
6-25 authorized by a majority of the qualified electors of the district.
6-26 The board, in ordering a bond election, shall specify the date of
7-1 the election, the amount of bonds to be authorized, the maximum
7-2 maturity of the bonds, the place or places where the election will
7-3 be held, and the presiding judge and alternate judge for each
7-4 voting place and shall provide for clerks as in county elections.
7-5 Chapter 41, [Section 9b, Texas] Election Code[, as amended (Article
7-6 2.01b, Vernon's Texas Election Code)], does not apply to a bond
7-7 election. Notice of any bond election shall be given as provided
7-8 in Article 704, Revised [Civil] Statutes [of Texas, 1925, as
7-9 amended], and the election shall be conducted in accordance with
7-10 the [Texas] Election Code, [as amended,] except as modified by the
7-11 provisions of this Act. The board shall canvass the returns and
7-12 declare the results.
7-13 SECTION 5. Section 8, Chapter 74, Acts of the 66th
7-14 Legislature, Regular Session, 1979, is amended to read as follows:
7-15 Sec. 8. REVENUE BONDS. In addition to the power to issue
7-16 bonds payable from taxes levied by the district as contemplated by
7-17 Section 6 of this Act, the board may issue revenue bonds and refund
7-18 any previously issued revenue bonds for purchasing, constructing,
7-19 acquiring, repairing, equipping, or renovating buildings and
7-20 improvements for hospital purposes, and for acquiring sites for
7-21 hospital purposes. The bonds shall be payable from and secured by
7-22 a pledge of all or any part of the revenues of the district to be
7-23 derived from the operation of its hospital or hospitals, and the
7-24 bonds may be additionally secured by a mortgage or deed of trust
7-25 lien on any part or all of its property. The bonds shall be issued
7-26 in the manner and in accordance with the procedures and
8-1 requirements specified for the issuance of revenue bonds by county
8-2 hospital authorities in Sections 264.042, 264.043, 264.046,
8-3 264.047, 264.048, and 264.049, Health and Safety Code [8, 10, 11,
8-4 12, and 13 of Chapter 122, Acts of the 58th Legislature, 1963, as
8-5 amended (Article 4494r, Vernon's Texas Civil Statutes)].
8-6 SECTION 6. Subsection (b), Section 9, Chapter 74, Acts of
8-7 the 66th Legislature, Regular Session, 1979, is amended to read as
8-8 follows:
8-9 (b) The board may prescribe the method and manner of making
8-10 purchases and expenditures by and for the hospital district and may
8-11 prescribe all accounting and control procedures. Contracts for
8-12 construction involving the expenditure of more than $15,000
8-13 [$10,000] may be made only after advertising as [in the manner]
8-14 provided by Subchapter B, Chapter 271, Local Government Code
8-15 [Chapter 163, General Laws, Acts of the 42nd Legislature, Regular
8-16 Session, 1931, as amended (Article 2368a, Vernon's Texas Civil
8-17 Statutes)]. The provisions of Chapter 2253, Government Code
8-18 [Article 5160, Revised Civil Statutes of Texas, 1925, as amended],
8-19 relating to performance and payment bonds shall apply to
8-20 construction contracts let by the district. The district may
8-21 acquire equipment for use in its hospital system and mortgage or
8-22 pledge the property acquired as security for the payment of the
8-23 purchase price. Except as permitted in the preceding sentence and
8-24 Sections 6 and 7 of this Act, the district may incur no obligation
8-25 payable from revenues of the district, tax or otherwise, except
8-26 those on hand or to be on hand within the then current and
9-1 following fiscal years of the district.
9-2 SECTION 7. Subsection (a), Section 13, Chapter 74, Acts of
9-3 the 66th Legislature, Regular Session, 1979, is amended to read as
9-4 follows:
9-5 (a) The district shall have the right and power of eminent
9-6 domain for the purpose of acquiring by condemnation any and all
9-7 property of any kind and character in fee simple, or any lesser
9-8 interest in property, within the boundaries of the district
9-9 necessary or convenient to the powers, rights, and privileges
9-10 conferred by this Act, in the manner provided by the general law
9-11 with respect to condemnation by counties. The district shall not
9-12 be required to make deposits in the registry of the trial court of
9-13 the sum required by Section 21.021, Property Code [Paragraph 2,
9-14 Article 3268, Revised Civil Statutes of Texas, 1925, as amended],
9-15 or to make bond as provided in that law. In condemnation
9-16 proceedings being prosecuted by the district, the district shall
9-17 not be required to pay in advance or give bond or other security
9-18 for costs in the trial court or to give any bond otherwise required
9-19 for the issuance of a temporary restraining order or a temporary
9-20 injunction or to give bond for costs or for supersedeas on any
9-21 appeal or writ of error.
9-22 SECTION 8. Section 14, Chapter 74, Acts of the 66th
9-23 Legislature, Regular Session, 1979, is amended to read as follows:
9-24 Sec. 14. TAX ASSESSMENT AND COLLECTION. (a) The board may
9-25 levy taxes for the entire year in which the district is created as
9-26 a result of the election provided in this Act. All taxes of the
10-1 district shall be assessed and collected on county tax values as
10-2 provided in Subsection (b) of this section unless the board, by
10-3 majority vote, elects to have taxes assessed and collected by its
10-4 own tax assessor-collector under [Subsection (c) of] this section.
10-5 An election may be held annually before December 1 and shall govern
10-6 the manner in which taxes are subsequently assessed and collected
10-7 until changed by a similar resolution. Hospital tax shall be
10-8 levied on all taxable property within the district subject to
10-9 hospital district taxation.
10-10 (b) The board annually may impose property taxes in an
10-11 amount not to exceed the limit approved by the voters at the
10-12 election authorizing the levy of taxes. The tax rate for all
10-13 purposes may not exceed 75 cents on each $100 valuation of all
10-14 taxable property in the district [Under this subsection, district
10-15 taxes shall be assessed and collected on county tax values in the
10-16 same manner as provided by law with relation to county taxes. The
10-17 tax assessor-collector of Hardeman County shall be charged and
10-18 required to accomplish the assessment and collection of all taxes
10-19 levied by and on behalf of the district. The assessor-collector of
10-20 taxes shall charge and deduct from payments to the hospital
10-21 district an amount as fees for assessing and collecting the taxes
10-22 at a rate of one percent of the taxes assessed and one percent of
10-23 the taxes collected, but in no event shall the amount paid exceed
10-24 $5,000 in any one calendar year. These fees shall be deposited in
10-25 the officers salary fund of the county and reported as fees of
10-26 office of the county tax assessor-collector. Interest and
11-1 penalties on taxes paid to the hospital district shall be the same
11-2 as in the case of county taxes. Discounts shall be the same as
11-3 allowed by the county. The residue of tax collections after
11-4 deductions of discounts and fees for assessing and collecting shall
11-5 be deposited in the district's depository. The bonds of the county
11-6 tax assessor-collector shall stand as security for the proper
11-7 performance of his or her duties as assessor-collector of the
11-8 district; or if in the judgment of the board it is necessary,
11-9 additional bond payable to the district may be required. In all
11-10 matters pertaining to the assessment, collection, and enforcement
11-11 of taxes for the district, the county tax assessor-collector may
11-12 act in all respects according to the laws of the State of Texas
11-13 relating to state and county taxes].
11-14 (c) The taxes may be used to pay:
11-15 (1) the indebtedness issued or assumed by the
11-16 district; and
11-17 (2) the maintenance and operating expenses of the
11-18 district.
11-19 (d) The district may not impose taxes to pay the principal
11-20 of or interest on revenue bonds.
11-21 (e) The Tax Code governs the appraisal, assessment, and
11-22 collection of district taxes.
11-23 (f) The board may provide for the appointment of a tax
11-24 assessor-collector for the district or may contract for the
11-25 assessment and collection of taxes as provided by the Tax Code
11-26 [Under this subsection, taxes shall be assessed and collected by a
12-1 tax assessor-collector appointed by the board, which shall also fix
12-2 the term of his or her employment, compensation, and requirement
12-3 for bond to assure the faithful performance of his or her duties,
12-4 but in no event shall the bond be for less than $5,000. The
12-5 directors shall appoint five persons to serve as a board of
12-6 equalization for two-year terms and shall fix their compensation.
12-7 The members of the board of equalization and the tax
12-8 assessor-collector shall be residents of the district, and each
12-9 shall have the same duties, including the obligation to execute the
12-10 oath of office, as required of county officials exercising those
12-11 powers and duties. Except as provided in this law to the contrary,
12-12 all the provisions of Title 122, Revised Civil Statutes of Texas,
12-13 1925, as amended, shall apply to the district].
12-14 SECTION 9. Chapter 74, Acts of the 66th Legislature, Regular
12-15 Session, 1979, is amended by adding Section 14A to read as follows:
12-16 Sec. 14A. BORROWING. (a) The board may borrow money for
12-17 district obligations at the time the loan is made.
12-18 (b) To secure a loan, the board may pledge:
12-19 (1) the revenues of the district that are not pledged
12-20 to pay bonded indebtedness of the district;
12-21 (2) taxes to be levied by the district in the next
12-22 12-month period that are not pledged to pay the principal of or
12-23 interest on district bonds; or
12-24 (3) district bonds that have been authorized but not
12-25 sold.
12-26 (c) A loan for which taxes or bonds are pledged must mature
13-1 not later than the first anniversary of the date on which the loan
13-2 is made. A loan for which district revenues are pledged must
13-3 mature not later than the fifth anniversary of the date on which
13-4 the loan is made.
13-5 SECTION 10. Chapter 74, Acts of the 66th Legislature,
13-6 Regular Session, 1979, is amended by adding Section 21A to read as
13-7 follows:
13-8 Sec. 21A. DISSOLUTION. (a) The district may be dissolved
13-9 only if the dissolution is approved by a majority of the qualified
13-10 voters of the district voting in an election called and held for
13-11 that purpose.
13-12 (b) The board may order an election on the question of
13-13 dissolving the district and disposing of the district's assets and
13-14 obligations. The board shall order an election if the board
13-15 receives a petition requesting an election that is signed by a
13-16 number of residents of the district equal to at least 15 percent of
13-17 the registered voters in the district.
13-18 (c) The election shall be held not later than the 60th day
13-19 after the date the election is ordered. Section 41.001(a),
13-20 Election Code, does not apply to an election ordered under this
13-21 section. The order calling the election shall state:
13-22 (1) the nature of the election, including the
13-23 proposition that is to appear on the ballot;
13-24 (2) the date of the election;
13-25 (3) the hours during which the polls will be open; and
13-26 (4) the location of the polling places.
14-1 (d) The board shall give notice of the election by
14-2 publishing the election order in a newspaper with general
14-3 circulation in the district once a week for two consecutive weeks.
14-4 The first publication must appear not less than 35 days before the
14-5 date set for the election. The ballot for the election shall be
14-6 printed to permit voting for or against the proposition: "The
14-7 dissolution of the Chillicothe Hospital District."
14-8 (e) If a majority of the votes in the election favor
14-9 dissolution, the board shall find that the district is dissolved.
14-10 If a majority of the votes in the election do not favor
14-11 dissolution, the board shall continue to administer the district,
14-12 and another election on the question of dissolution may not be held
14-13 before the first anniversary of the most recent election to
14-14 dissolve the district.
14-15 (f) If a majority of the votes in the election favor
14-16 dissolution, the board shall:
14-17 (1) transfer the land, buildings, improvements,
14-18 equipment, and other assets that belong to the district to a county
14-19 or other governmental agency in the county in which the district is
14-20 located; or
14-21 (2) administer the property, assets, and debts until
14-22 all funds have been disposed of and all district debts have been
14-23 paid or settled.
14-24 (g) If the district transfers the land, buildings,
14-25 improvements, equipment, and other assets to a county or other
14-26 governmental agency, the county or agency assumes all debts and
15-1 obligations of the district at the time of the transfer, and the
15-2 district is dissolved.
15-3 (h) After the board finds that the district is dissolved,
15-4 the board shall:
15-5 (1) determine the debt owed by the district; and
15-6 (2) impose on the property included in the district's
15-7 tax rolls a tax that is in proportion of the debt to the property
15-8 value.
15-9 (i) When all outstanding debts and obligations of the
15-10 district are paid, the board shall order the secretary to return
15-11 the pro rata share of all unused tax money to each district
15-12 taxpayer.
15-13 (j) A taxpayer may request that the taxpayer's share of
15-14 surplus tax money be credited to the taxpayer's county taxes. If a
15-15 taxpayer requests the credit, the board shall direct the secretary
15-16 to transmit the funds to the county tax assessor-collector.
15-17 (k) After the district has paid all its debts and has
15-18 disposed of all its assets and funds as prescribed by this section,
15-19 the board shall file a written report with the Commissioners Court
15-20 of Hardeman County setting forth a summary of the board's actions
15-21 in dissolving the district.
15-22 (l) Not later than the 10th day after the date it receives
15-23 the report and determines that the requirements of this section
15-24 have been fulfilled, the Commissioners Court of Hardeman County
15-25 shall enter an order dissolving the district and releasing the
15-26 board of directors of the district from any further duty or
16-1 obligation.
16-2 (m) Notwithstanding any other provision of this section, the
16-3 district may not be dissolved unless the board provides for the
16-4 sale or transfer of the district's assets and liabilities to
16-5 another person or entity. The dissolution of the district and the
16-6 sale or transfer of the district's assets or liabilities may not
16-7 contravene a trust indenture or bond resolution relating to the
16-8 outstanding bonds of the district. The dissolution and sale or
16-9 transfer does not diminish or impair the rights of a holder of an
16-10 outstanding bond, warrant, or other obligation of the district.
16-11 (n) The sale or transfer of the district's assets and
16-12 liabilities must satisfy the debt and bond obligation of the
16-13 district in a manner that protects the interests of the residents
16-14 of the district, including the residents' collective property
16-15 rights in the district's assets. A grant from federal funds is an
16-16 obligation to be repaid in satisfaction. The district may not
16-17 transfer or dispose of the district's assets except for due
16-18 compensation unless the transfer is made to a governmental agency
16-19 that serves the district and the transferred assets are to be used
16-20 for the benefit of the residents of the district.
16-21 SECTION 11. This Act takes effect September 1, 1999.
16-22 SECTION 12. The changes in law made by this Act to
16-23 Subsection (b), Section 9, Chapter 74, Acts of the 66th
16-24 Legislature, Regular Session, 1979, apply only to a request for
16-25 competitive bids made by the board of directors of the Chillicothe
16-26 Hospital District on or after the effective date of this Act. A
17-1 request for competitive bids by a board made before the effective
17-2 date of this Act is covered by the law in effect when the board
17-3 submitted the request for competitive bids, and the former law is
17-4 continued in effect for that purpose.
17-5 SECTION 13. The importance of this legislation and the
17-6 crowded condition of the calendars in both houses create an
17-7 emergency and an imperative public necessity that the
17-8 constitutional rule requiring bills to be read on three several
17-9 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. 1626 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. 1626 passed the House, with
amendment, on May 19, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor