By: Haywood S.B. No. 1626
99S0837/1
A BILL TO BE ENTITLED
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 provides
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,
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. Sections 4 and 5, Chapter 74, 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 doctors
3-6 it may deem necessary for the efficient operation of the district
3-7 and may provide for temporary appointments to the staff if
3-8 warranted by circumstances.
3-9 (b) The board may purchase or lease property, facilities,
3-10 and equipment for the district to use in the hospital system and
3-11 may mortgage or pledge the property, facilities, or equipment as
3-12 security for the payment of the purchase price.
3-13 (c) The board may delegate to the administrator the
3-14 authority to employ technicians, nurses, and employees of the
3-15 district.
3-16 (d) The board may contract with other political subdivisions
3-17 or governmental agencies whereby the district will provide
3-18 investigatory or other services as to facilities for the medical
3-19 care, hospital, or welfare needs of the inhabitants of the district
3-20 and may contract with any county or incorporated municipality
3-21 located outside its boundaries for reimbursement for the care and
3-22 treatment of the sick, diseased, or injured persons of that county
3-23 or municipality. The district may also contract with the state or
3-24 agencies of the federal government for the reimbursement for the
3-25 treatment of sick, diseased, or injured persons.
3-26 (e) The board may enter into an interlocal agreement with
4-1 another political subdivision for the purpose of operating the
4-2 hospital district.
4-3 (f) The board may also enter into a contract or contracts to
4-4 provide administrative and other personnel for the operation of the
4-5 hospital facilities, but in no event may a contract be for a period
4-6 in excess of 25 years from the date the contract is entered into.
4-7 The board may transfer district hospital facilities by lease to
4-8 individuals, corporations, or other legal entities and may sell or
4-9 otherwise dispose of the district's property, facilities, and
4-10 equipment.
4-11 (g) The board may provide retirement benefits for the
4-12 employees of the district by establishing or administering a
4-13 retirement program or electing to participate in the Texas County
4-14 and District Retirement System or any other statewide retirement
4-15 system in which the district is eligible to participate.
4-16 (h) The board may spend district funds to recruit
4-17 physicians, nurses, and other trained medical personnel. The board
4-18 may contract with one or more full-time medical students or other
4-19 students in a health occupation, each of whom must be enrolled in
4-20 good standing in an accredited medical school, college, or
4-21 university, to pay the student's tuition or other expenses in
4-22 consideration of the student's contractual agreement to serve as an
4-23 employee or independent contractor for the district under terms
4-24 provided in the contract.
4-25 (i) The board may institute a suit to enforce the payment of
4-26 taxes and to forclose liens to secure the payment of taxes due the
5-1 district.
5-2 Sec. 5. BUDGET. The district shall be operated on the basis
5-3 of a fiscal year established by the board, provided the fiscal year
5-4 may not be changed during the time revenue bonds of the district
5-5 are outstanding or more than once in any 24-month period. The
5-6 board shall have an annual audit made of the financial condition of
5-7 the district, which together with other records of the district
5-8 shall be open to inspection at the principal office of the
5-9 district. The administrator shall prepare an annual budget for
5-10 approval by the board. The budget shall also contain a complete
5-11 financial statement of the district showing all outstanding
5-12 obligations of the district, the cash on hand to the credit of each
5-13 fund of the district, the funds received from all sources during
5-14 the previous year, the funds available from all sources during the
5-15 ensuing year, the balances expected at the end of the year in which
5-16 the budget is being prepared, estimated revenues and balances
5-17 available to cover the proposed budget, and the estimated tax rate
5-18 that will be required. A public hearing on the annual budget shall
5-19 be held by the board after notice of a hearing has been published
5-20 in accordance with Chapter 551, Government Code [a newspaper with
5-21 general circulation in the district one time at least 10 days
5-22 before the date set for the hearing]. Any person residing in the
5-23 district is entitled to be present and participate in the hearing.
5-24 At the conclusion of the hearing, the budget, as proposed by the
5-25 administrator, shall be acted on by the board. The board shall
5-26 have authority to make changes in the budget that in its judgment
6-1 the law warrants and the interest of the taxpayers demands. No
6-2 expenditure may be made for any expense not included in the annual
6-3 budget or an amendment to it. The annual budget may be amended
6-4 from time to time as the circumstances may require, but the annual
6-5 budget and all amendments to it shall be approved by the board. As
6-6 soon as practicable after the close of each fiscal year, the
6-7 administrator shall prepare for the board a full sworn statement of
6-8 all money belonging to the district and a full account of the
6-9 disbursements of same.
6-10 SECTION 3. Subsection (a), Section 6, Chapter 74, Acts of
6-11 the 66th Legislature, Regular Session, 1979, is amended to read as
6-12 follows:
6-13 (a) The board may issue and sell its bonds in the name and
6-14 on the faith and credit of the hospital district for any purpose
6-15 related to the purchase, construction, acquisition, repair, and
6-16 renovation of buildings and improvements and equipping the same for
6-17 hospital purposes. At the time of the issuance of any bonds
6-18 payable from taxation [by the district], a tax shall be levied by
6-19 the board sufficient to create an interest and sinking fund to pay
6-20 the interest on and principal of the bonds as they mature,
6-21 providing that the tax together with any other taxes levied for the
6-22 district shall not exceed the limit approved by the voters at the
6-23 election authorizing the levy of taxes [75 cents on each $100
6-24 valuation of all taxable property located in the district subject
6-25 to hospital district taxation in any one year]. No bonds may be
6-26 issued by the hospital district except refunding bonds until
7-1 authorized by the majority of the qualified electors of the
7-2 district. The board, in ordering a bond election, shall specify
7-3 the date of the election, the amount of bonds to be authorized, the
7-4 maximum maturity of the bonds, the place or places where the
7-5 election will be held, and the presiding judge and alternate judge
7-6 for each voting place and shall provide for clerks as in county
7-7 elections. Section 41.001, [9b, Texas] Election Code, [as amended
7-8 (Article 2.01b, Vernon's Texas Election Code),] does not apply to a
7-9 bond election. Notice of any bond election shall be given as
7-10 provided in Article 704, Revised [Civil] Statutes [of Texas, 1925,
7-11 as amended], and the election shall be conducted in accordance with
7-12 the Texas Election Code, [as amended,] except as modified by the
7-13 provisions of this Act. The board shall canvass the returns and
7-14 declare the results.
7-15 SECTION 4. Section 8, Chapter 74, Acts of the 66th
7-16 Legislature, Regular Session, 1979, is amended to read as follows:
7-17 Sec. 8. REVENUE BONDS. In addition to the power to issue
7-18 bonds payable from taxes levied by the district as contemplated by
7-19 Section 6 of this Act, the board may issue revenue bonds and refund
7-20 any previously issued revenue bonds for purchasing, constructing,
7-21 acquiring, repairing, equipping, or renovating buildings and
7-22 improvements for hospital purposes, and for acquiring sites for
7-23 hospital purposes. The bonds shall be payable from and secured by
7-24 a pledge of all or any part of the revenues of the district to be
7-25 derived from the operation of its hospital or hospitals, and the
7-26 bonds may be additionally secured by a mortgage or deed of trust
8-1 lien on any part or all of its property. The bonds shall be issued
8-2 in the manner and in accordance with the procedures and
8-3 requirements specified for the issuance of revenue bonds by county
8-4 hospital authorities in Sections 264.042, 264.043, 264.046,
8-5 264.047, 264.048, and 264.049, Texas Health and Safety Code
8-6 [Sections 8, 10, 11, 12, and 13 of Chapter 122, Acts of the 58th
8-7 Legislature, 1963, as amended (Article 4494r, Vernon's Texas Civil
8-8 Statutes)].
8-9 SECTION 5. Subsection (b), Section 9, Chapter 74, Acts of
8-10 the 66th Legislature, Regular Session, 1979, is amended to read as
8-11 follows:
8-12 (b) The board may prescribe the method and manner of making
8-13 purchases and expenditures by and for the hospital district and may
8-14 prescribe all accounting and control procedures. Contracts for
8-15 construction involving the expenditure of more than $10,000 may be
8-16 made only after advertising in the manner provided by Section
8-17 252.041, Local Government Code [Chapter 163, General Laws, Acts of
8-18 the 42nd Legislature, Regular Session, 1931, as amended (Article
8-19 2368a, Vernon's Texas Civil Statutes)]. The provisions of Chapter
8-20 2253, Government Code [Article 5160, Revised Civil Statutes of
8-21 Texas, 1925, as amended], relating to performance and payment bonds
8-22 shall apply to construction contracts let by the district. The
8-23 district may acquire equipment for use in its hospital system and
8-24 mortgage or pledge the property acquired as security for the
8-25 payment of the purchase price. Except as permitted in the
8-26 preceding sentence and Sections 6 and 7 of this Act, the district
9-1 may incur no obligation payable from revenues of the district, tax
9-2 or otherwise, except those on hand or to be on hand within the then
9-3 current and following fiscal years of the district.
9-4 SECTION 6. Subsection (a), Section 13, Chapter 74, Acts of
9-5 the 66th Legislature, Regular Session, 1979, is amended to read as
9-6 follows:
9-7 (a) The district shall have the right and power of eminent
9-8 domain for the purpose of acquiring by condemnation any and all
9-9 property of any kind and character in fee simple, or any lesser
9-10 interest in property, within the boundaries of the district
9-11 necessary or convenient to the powers, rights, and privileges
9-12 conferred by this Act, in the manner provided by the general law
9-13 with respect to condemnation by counties. The district shall not
9-14 be required to make deposits in the registry of the trial court of
9-15 the sum required by Section 21.021, Property Code, [Paragraph 2,
9-16 Article 3268, Revised Civil Statutes of Texas, 1925, as amended],
9-17 or to make bond as provided in that law. In condemnation
9-18 proceedings being prosecuted by the district, the district shall
9-19 not be required to pay in advance or give bond or other security
9-20 for costs in the trial court or to give any bond otherwise required
9-21 for the issuance of a temporary restraining order or a temporary
9-22 injunction or to give bond for costs or for supersedeas on any
9-23 appeal or writ of error.
9-24 SECTION 7. Section 14, Chapter 74, Acts of the 66th
9-25 Legislature, Regular Session, 1979, is amended to read as follows:
9-26 Sec. 14. TAX ASSESSMENT AND COLLECTION. (a) The board may
10-1 levy taxes for the entire year in which the district is created as
10-2 a result of the election provided in this Act. All taxes of the
10-3 district shall be assessed and collected on county tax values as
10-4 provided in Subsection (b) of this section unless the board, by
10-5 majority vote, elects to have taxes assessed and collected by its
10-6 own tax assessor-collector under Subsection (c) of this section.
10-7 An election may be held annually before December 1 and shall govern
10-8 the manner in which taxes are subsequently assessed and collected
10-9 until changed by a similar resolution. Hospital tax shall be
10-10 levied on all taxable property within the district subject to
10-11 hospital district taxation.
10-12 (b) The board may annually impose property taxes in an
10-13 amount not to exceed the limit approved by the voters at the
10-14 election authorizing the levy of taxes. The tax rate for all
10-15 purposes may not exceed 75 cents on each $100 valuation of all
10-16 taxable property in the district. The taxes may be used to pay for
10-17 indebtedness issued or assumed by the district and for the
10-18 maintenance and operation expenses of the district. The district
10-19 may not impose taxes to pay the principal of or interest on revenue
10-20 bonds. The Tax Code governs the appraisal, assessment, and
10-21 collection of district taxes. The board may provide for the
10-22 appointment of a tax assessor-collector of the district or may
10-23 contract for the assessment and collection of taxes as provided by
10-24 the Tax Code. [Under this subsection, district taxes shall be
10-25 assessed and collected on county tax values in the same manner as
10-26 provided by law with relation to county taxes. The tax
11-1 assessor-collector of Hardeman County shall be charged and required
11-2 to accomplish the assessment and collection of all taxes levied by
11-3 and on behalf of the district. The assessor-collector of taxes
11-4 shall charge and deduct from payments to the hospital district an
11-5 amount as fees for assessing and collecting the taxes at a rate of
11-6 one percent of the taxes assessed and one percent of the taxes
11-7 collected, but in no event shall the amount paid exceed $5,000 in
11-8 any one calendar year. These fees shall be deposited in the
11-9 officers salary fund of the county and reported as fees of office
11-10 of the county tax assessor collector. Interest and penalties on
11-11 taxes paid to the hospital district shall be the same as in the
11-12 case of county taxes. Discounts shall be the same as allowed by
11-13 the county. The residue of tax collections after deductions of
11-14 discounts and fees for assessing and collecting shall be deposited
11-15 in the district's depository. The bonds of the county tax
11-16 assessor-collector shall stand as security for the proper
11-17 performance of his or her duties as assessor-collector of the
11-18 district; or if in the judgment of the board it is necessary,
11-19 additional bond payable to the district may be required. In all
11-20 matters pertaining to the assessment, collection, and enforcement
11-21 of taxes for the district, the county tax assessor-collector may
11-22 act in all respects according to the laws of the State of Texas
11-23 relating to state and county taxes.]
11-24 [(c) Under this subsection, taxes shall be assessed and
11-25 collected by a tax assessor-collector appointed by the board, which
11-26 shall also fix the term of his or her employment, compensation, and
12-1 requirement for bond to assure the faithful performance of his or
12-2 her duties, but in no event shall the bond be for less than $5,000.
12-3 The directors shall appoint five persons to serve as a board of
12-4 equalization for two-year terms and shall fix their compensation.
12-5 The members of the board of equalization and the tax
12-6 assessor-collector shall be residents of the district, and each
12-7 shall have the same duties, including the obligation to execute the
12-8 oath of office, as required of county officials exercising those
12-9 powers and duties. Except as provided in this law to the contrary,
12-10 all the provisions of Title 122, Revised Civil Statutes of Texas,
12-11 1925, as amended, shall apply to the district.]
12-12 SECTION 8. Chapter 74, Acts of the 66th Legislature, Regular
12-13 Session, 1929, is amended by adding Sections 16a, 16b, and 16c to
12-14 read as follows:
12-15 Sec. 16a. EMERGENCY LOANS. (a) If the board declares that
12-16 funds are not available to meet the lawfully authorized obligations
12-17 of the district and that an emergency exists, the board may borrow
12-18 money at a rate not to exceed the maximum annual percentage rate
12-19 allowed by law for district obligations at the time of the loan.
12-20 (b) To secure an emergency loan, the board may pledge:
12-21 (1) the revenues of the district that are not pledged
12-22 to pay the bonded indebtedness of the district;
12-23 (2) district taxes to be levied by the district during
12-24 the 12-month period following the date of the pledge that are not
12-25 pledged to pay the principal of or interest on district bonds; or
12-26 (3) district bonds that have been authorized but not
13-1 sold.
13-2 (c) An emergency loan for which taxes or bonds are pledged
13-3 shall mature not later than the first anniversary of the date on
13-4 which the loan is made. An emergency loan for which district
13-5 revenues are pledged shall mature not later than the fifth
13-6 anniversary of the date on which the loan is made.
13-7 (d) The board may not spend money obtained from a loan under
13-8 this section for any purpose other than the purpose for which the
13-9 board declared an emergency. If taxes or bonds are pledged to pay
13-10 the loan, the board may not spend the loan proceeds for a purpose
13-11 other than the purpose for which the taxes were levied or the bonds
13-12 were authorized.
13-13 Sec. 16b. OTHER LOANS. (a) The board may borrow money at a
13-14 rate not to exceed the maximum annual percentage rate allowed by
13-15 law for district obligations at the time of the loan.
13-16 (b) To secure a loan, the board may pledge:
13-17 (1) the revenues of the district that are not pledged
13-18 to pay the bonded indebtedness of the district;
13-19 (2) district taxes to be levied by the district during
13-20 the 12-month period following the date of the pledge that are not
13-21 pledged to pay the principal of or interest on district bonds; or
13-22 (3) district bonds that have been authorized but not
13-23 sold.
13-24 (c) A loan for which taxes or bonds are pledged shall mature
13-25 not later than the first anniversary of the date on which the loan
13-26 is made. A loan for which district revenues are pledged shall
14-1 mature not later than the fifth anniversary of the date on which
14-2 the loan is made.
14-3 Sec. 16c. DISSOLUTION. (a) The district may be dissolved
14-4 only if the dissolution is approved by a majority of the qualified
14-5 voters of the district voting in an election called and held for
14-6 that purpose.
14-7 (b) The board may order an election on the question of
14-8 dissolving the district and disposing of the district's assets and
14-9 obligations. The board shall order an election if the board
14-10 receives a petition requesting an election that is signed by a
14-11 number of residents of the district equal to at least 15 percent of
14-12 the registered voters in the district.
14-13 (c) The election shall be held not later than the 60th day
14-14 after the date the election is ordered. Section 41.001(a),
14-15 Election Code, does not apply to an election ordered under this
14-16 section. The order calling the election shall state:
14-17 (1) the nature of the election, including the
14-18 proposition that is to appear on the ballot;
14-19 (2) the date of the election;
14-20 (3) the hours during which the polls will be open; and
14-21 (4) the location of the polling places.
14-22 (d) The board shall give notice of the election by
14-23 publishing a substantial copy of the election order in a newspaper
14-24 with general circulation in the district once a week for two
14-25 consecutive weeks. The first publication must appear not less than
14-26 35 days before the date set for the election. The ballot for the
15-1 election shall be printed to permit voting for or against the
15-2 proposition: "The dissolution of the Chillicothe Hospital
15-3 District."
15-4 (e) If a majority of the votes in the election favor
15-5 dissolution, the board shall find that the district is dissolved.
15-6 If a majority of the votes in the election do not favor
15-7 dissolution, the board shall continue to administer the district,
15-8 and another election on the question of dissolution may not be held
15-9 before the first anniversary of the most recent election to
15-10 dissolve the district.
15-11 (f) If a majority of the votes in the election favor
15-12 dissolution, the board shall:
15-13 (1) transfer the land, buildings, improvements,
15-14 equipment, and other assets that belong to the district to a county
15-15 or another governmental entity in the county in which the district
15-16 is located; or
15-17 (2) administer the property, assets, and debts until
15-18 all funds have been disposed of and all district debts have been
15-19 paid or settled.
15-20 (g) If the district transfers the land, buildings,
15-21 improvements, equipment, and other assets to a county or other
15-22 governmental entity, the county or entity assumes all debts and
15-23 obligations of the district at the time of the transfer, and the
15-24 district is dissolved.
15-25 (h) After the board finds that the district is dissolved,
15-26 the board shall:
16-1 (1) determine the debt owed by the district; and
16-2 (2) impose on the property included in the district's
16-3 tax rolls a tax that is in proportion of the debt to the property
16-4 value.
16-5 (i) When all outstanding debts and obligations of the
16-6 district are paid, the board shall order the secretary to return
16-7 the pro rata share of all unused tax money to each district
16-8 taxpayer.
16-9 (j) A taxpayer may request that the taxpayer's share of
16-10 surplus tax money be credited to the taxpayer's county taxes. If
16-11 the taxpayer requests the credit, the board shall direct the
16-12 secretary to transmit the funds to the county tax
16-13 assessor-collector.
16-14 (k) After the district has paid all its debts and has
16-15 disposed of all its assets and funds as prescribed by this section,
16-16 the board shall file a written report with the Commissioners Court
16-17 of Hardeman County setting forth a summary of the board's actions
16-18 in dissolving the district.
16-19 (l) Not later than the 10th day after the date it receives
16-20 the report and determines that the requirements of this section
16-21 have been fulfilled, the Commissioners Court of Hardeman County
16-22 shall enter an order dissolving the district and releasing the
16-23 board from any further duty or obligation.
16-24 (m) Notwithstanding any other provision of this Act, the
16-25 district may not be dissolved unless the board provides for the
16-26 sale or transfer of the district's assets and liabilities to
17-1 another person or entity. The dissolution of the district and the
17-2 sale or transfer of the district's assets or liabilities may not
17-3 contravene a trust indenture or bond resolution relating to the
17-4 outstanding bonds of the district. The dissolution and sale or
17-5 transfer does not diminish or impair the rights of a holder of an
17-6 outstanding bond, warrant, or other obligation of the district.
17-7 (n) The sale or transfer of the district's assets and
17-8 liabilities must satisfy the debt and bond obligations of the
17-9 district in a manner that protects the interests of the residents
17-10 of the district, including the residents' collective property
17-11 rights in the district's assets. A grant from federal funds is an
17-12 obligation to be repaid in satisfaction. The district may not
17-13 transfer or dispose of the district's assets except for due
17-14 compensation unless the transfer is made to another governmental
17-15 entity that serves the district and the transferred assets are to
17-16 be used for the benefit of the residents of the district.
17-17 SECTION 9. This Act takes effect September 1, 1999.
17-18 SECTION 10. The importance of this legislation and the
17-19 crowded condition of the calendars in both houses create an
17-20 emergency and an imperative public necessity that the
17-21 constitutional rule requiring bills to be read on three several
17-22 days in each house be suspended, and this rule is hereby suspended.