AN ACT
1-1 relating to the Castro County, Hansford County, and Ochiltree
1-2 County hospital districts; authorizing the issuance of bonds and
1-3 the imposition of taxes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2, Chapter 103, Acts of the 57th
1-6 Legislature, Regular Session, 1961, is amended to read as follows:
1-7 Sec. 2. Each of the counties to which this Act applies may
1-8 be constituted a hospital district as hereinafter set out, and may
1-9 take over the hospital or hospital system, either owned separately
1-10 by a county or jointly with a city within such county, or may
1-11 provide for the establishment of a hospital or hospital system to
1-12 furnish medical and hospital care to needy persons residing in said
1-13 hospital district; provided, however, that such hospital district
1-14 shall not be created unless and until an election is duly held in
1-15 such county for such purpose, which said election may be initiated
1-16 by the Commissioners Court of each of such counties upon its own
1-17 motion or upon a petition of one hundred (100) resident [qualified
1-18 property taxpaying] electors, to be held not less than thirty (30)
1-19 days from the time said election is ordered by the Commissioners
1-20 Court. At said election there shall be submitted to the [qualified
1-21 property taxpaying] electors the proposition of whether or not a
1-22 hospital district shall be created in the county; and a majority of
1-23 the [qualified property taxpaying] electors participating in said
1-24 election voting in favor of the proposition shall be necessary.
2-1 The ballots shall have printed thereon:
2-2 "FOR the creation of a hospital district; providing for the
2-3 levy of a tax not to exceed Seventy-five Cents (75 ) on the One
2-4 Hundred Dollars ($100.00) valuation"; and
2-5 "AGAINST the creation of a hospital district; providing for
2-6 the levy of a tax not to exceed Seventy-five Cents (75 ) on the One
2-7 Hundred Dollars ($100.00) valuation."
2-8 If such county or city located therein, either or both of
2-9 them, has any outstanding bonds theretofore issued for hospital
2-10 purposes (which by the provisions of Section 7 of this Act are
2-11 required to be assumed by the hospital district), then the ballots
2-12 for such election shall, instead of the foregoing, have printed
2-13 thereon:
2-14 "FOR the creation of a hospital district; providing for the
2-15 levy of a tax not to exceed Seventy-five Cents (75 ) on the One
2-16 Hundred Dollars ($100.00) valuation; and providing for the
2-17 assumption by such district of all outstanding bonds heretofore
2-18 issued by ____________ County, and by any city in said county for
2-19 hospital purposes"; and
2-20 "AGAINST the creation of a hospital district; providing for
2-21 the levy of a tax not to exceed Seventy-five Cents (75 ) on the One
2-22 Hundred Dollars ($100.00) valuation; and providing for the
2-23 assumption by such district of all outstanding bonds heretofore
2-24 issued by ___________ County, and by any city in said county for
2-25 hospital purposes."
2-26 SECTION 2. Section 3, Chapter 103, Acts of the 57th
3-1 Legislature, Regular Session, 1961, is amended to read as follows:
3-2 Sec. 3. (a) Within ten (10) days after such election is
3-3 held the Commissioners Court in such county shall convene and
3-4 canvass the returns of the election, and if a majority of the
3-5 [qualified property taxpaying] electors voting at said election
3-6 voted in favor of the proposition, the court shall so find and
3-7 declare the hospital district established and created and appoint
3-8 five (5) persons as directors of the hospital district to serve
3-9 until the first Saturday in April following the creation and
3-10 establishment of the district at which time five (5) directors
3-11 shall be elected. The three (3) directors receiving the highest
3-12 vote at such first election shall serve for two (2) years, the
3-13 other two (2) directors shall serve for one (1) year. Thereafter,
3-14 all directors shall serve for a period of two (2) years and until
3-15 their successor has been duly elected or appointed and qualified.
3-16 (b) A person may not [No person shall] be appointed or
3-17 elected as a member of the board of directors of said hospital
3-18 district unless the person [he] is a resident thereof [and owns
3-19 land subject to taxation therein] and, [unless] at the time of such
3-20 election or appointment, the person is [he shall be] more than
3-21 twenty-one (21) years of age. A person may not be elected or
3-22 appointed as a member of the board of directors of the Castro
3-23 County Hospital District unless the person is a resident of the
3-24 district and is at the time of election or appointment at least 21
3-25 years of age. An employee or a medical staff member of the
3-26 Ochiltree County or Castro County Hospital District may not serve
4-1 as a director of the respective [that] district.
4-2 (c) Each member of the board of directors shall qualify by
4-3 executing the constitutional oath of office and shall execute a
4-4 good and sufficient bond for One Thousand Dollars ($1,000) payable
4-5 to said district conditioned upon the faithful performance of the
4-6 member's [his] duties, and such oaths and bonds shall be deposited
4-7 with the depository bank of the district for safekeeping. The
4-8 Ochiltree County or Castro County Hospital District may purchase
4-9 directors' bonds with district funds.
4-10 (d) The board of directors of the Hansford County and
4-11 Ochiltree County hospital districts shall organize by electing one
4-12 (1) of their number as president and one (1) of their number as
4-13 secretary. The board of directors of the Castro County Hospital
4-14 District shall organize by electing from the membership of the
4-15 board one member to serve as president, one member to serve as vice
4-16 president, and one member to serve as secretary. Any three (3)
4-17 members of the board of directors shall constitute a quorum and a
4-18 concurrence of three (3) shall be sufficient in all matters
4-19 pertaining to the business of the district. All vacancies in the
4-20 office of director shall be filled for the unexpired term by
4-21 appointment of the remainder of the board of directors. In the
4-22 event the number of directors shall be reduced to less than three
4-23 (3) for any reason, the remaining directors shall immediately call
4-24 a special election to fill said vacancies, and upon failure to do
4-25 so a district court may, upon application of any voter or taxpayer
4-26 of the district, issue a mandate requiring that such election be
5-1 ordered by the remaining directors.
5-2 (e) A regular election of directors shall be held on the
5-3 first Saturday in May of each year and notice of such election
5-4 shall be published in a newspaper of general circulation in the
5-5 county one (1) time not earlier than the 30th day or later than the
5-6 10th day before [at least ten (10) days prior to] the date of the
5-7 election. A person who wishes to have the person's name printed on
5-8 the ballot as a candidate for director of the Castro County
5-9 Hospital District must file an application with the secretary of
5-10 the board of the Castro County Hospital District not later than the
5-11 45th day before the date of the election. A [Any] person who
5-12 wishes to have the person's [desiring his] name [to be] printed on
5-13 the ballot as a candidate for director of the Ochiltree County
5-14 Hospital District shall file a petition, signed by not less than
5-15 twenty-five (25) qualified voters asking that such name be printed
5-16 on the ballot, with the secretary of the board of directors of the
5-17 district not later than the 25th day before [at least twenty-five
5-18 (25) days prior to] the date of the election.
5-19 SECTION 3. Subsection (a), Section 3A, Chapter 103, Acts of
5-20 the 57th Legislature, Regular Session, 1961, is amended to read as
5-21 follows:
5-22 (a) This section applies only to the Ochiltree County and
5-23 Castro County hospital districts [Hospital District].
5-24 SECTION 4. Section 4, Chapter 103, Acts of the 57th
5-25 Legislature, Regular Session, 1961, is amended to read as follows:
5-26 Sec. 4. The management and control of each hospital district
6-1 created pursuant to the provisions of this Act is hereby vested in
6-2 the board of directors of the district who shall serve without
6-3 compensation but may be reimbursed for actual expenses incurred in
6-4 the performance of their official duties upon the approval of such
6-5 expenses by the entire board of directors. The board of directors
6-6 of the Ochiltree County or Castro County Hospital District may
6-7 defend or indemnify an officer, director, board appointee, medical
6-8 staff member, or employee of the district against or for liability,
6-9 claims, or expenses that arise from the performance of a duty in
6-10 the person's respective capacity as an officer, director, board
6-11 appointee, medical staff member, or employee of the district. The
6-12 board of directors may purchase liability insurance coverage or
6-13 establish a self-insurance program to fund indemnification under
6-14 this section.
6-15 SECTION 5. Section 5, Chapter 103, Acts of the 57th
6-16 Legislature, Regular Session, 1961, is amended to read as follows:
6-17 Sec. 5. (a) Upon the creation of such hospital district,
6-18 the board of directors of the Ochiltree County or Hansford County
6-19 Hospital District shall have the power and authority and it shall
6-20 be their duty to levy on all property subject to hospital district
6-21 taxation for the benefit of the district at the same time taxes are
6-22 levied for county purposes, using the county values and the county
6-23 tax roll, a tax of not to exceed Seventy-five Cents (75 ) on the
6-24 One Hundred Dollars ($100.00) valuation of all taxable property
6-25 within the hospital district, for the purpose of:
6-26 (1) paying the interest on and creating a sinking fund
7-1 for bonds which may have been assumed or which may be issued by the
7-2 hospital district for hospital purposes as herein provided;
7-3 (2) providing for the operation and maintenance of the
7-4 hospital or hospital system; and
7-5 (3) [for the purpose of] making further improvements
7-6 and additions to the hospital system, and for the acquisition of
7-7 necessary sites therefor, by purchase, lease or condemnation.
7-8 (b) Not later than October 1 of each year, the board of
7-9 directors of the Ochiltree County or Hansford County Hospital
7-10 District shall levy the tax on all taxable property within the
7-11 district which is subject to taxation and shall immediately certify
7-12 such tax rate to the tax assessor and collector of the county in
7-13 which the district is located. The tax so levied shall be
7-14 collected on all property subject to hospital district taxation by
7-15 the assessor and collector of taxes for the county on the county
7-16 tax values, and in the same manner and under the same conditions as
7-17 county taxes. The assessor and collector of taxes shall charge and
7-18 deduct from payments to the hospital district the fees for
7-19 assessing and collecting the tax at the rate of not exceeding one
7-20 (1%) per cent of the amounts collected as may be determined by the
7-21 board of directors but in no event in excess of Five Thousand
7-22 Dollars ($5,000.00) for any one (1) fiscal year. Such fees shall
7-23 be deposited in the county's general fund, and shall be reported as
7-24 fees of office of the tax assessor and collector. Interest and
7-25 penalties on taxes paid to the hospital district shall be the same
7-26 as in the case of county taxes. Discounts shall be the same as for
8-1 county taxes. The residue of tax collections, after deduction of
8-2 discounts and fees for assessing and collecting, shall be deposited
8-3 in the district depository; and such funds shall be withdrawn only
8-4 as provided herein. All other income of the hospital district
8-5 shall be deposited in like manner with the district depository.
8-6 (c) The board of directors of the Ochiltree County or
8-7 Hansford County Hospital District shall have the authority to levy
8-8 the tax aforesaid for the entire year in which the said hospital
8-9 district is established, for the purpose of securing funds to
8-10 initiate the operation of the hospital district, and to pay assumed
8-11 bonds.
8-12 SECTION 6. Chapter 103, Acts of the 57th Legislature,
8-13 Regular Session, 1961, is amended by adding Section 5A to read as
8-14 follows:
8-15 Sec. 5A. (a) This section applies only to the Castro County
8-16 Hospital District.
8-17 (b) The board of directors annually may impose property
8-18 taxes in an amount not to exceed the limit approved by the voters
8-19 at the election authorizing the levy of taxes.
8-20 (c) The tax rate for all purposes may not exceed 75 cents on
8-21 each $100 valuation of all taxable property in the district.
8-22 (d) The taxes may be used to pay:
8-23 (1) the indebtedness issued or assumed by the
8-24 district; or
8-25 (2) the maintenance and operating expenses of the
8-26 district.
9-1 (e) The district may not impose taxes to pay the principal
9-2 of or interest on revenue bonds issued by the district.
9-3 (f) The Tax Code governs the appraisal, assessment, and
9-4 collection of district taxes.
9-5 (g) The board of directors may provide for the appointment
9-6 of a tax assessor-collector for the district or may contract for
9-7 the assessment and collection of taxes as provided by the Tax Code.
9-8 SECTION 7. Section 6, Chapter 103, Acts of the 57th
9-9 Legislature, Regular Session, 1961, is amended to read as follows:
9-10 Sec. 6. (a) The board of directors shall have the power and
9-11 authority to issue and sell as the obligations of such hospital
9-12 district, and in the name and upon the faith and credit of such
9-13 hospital district, general obligation bonds for the purchase,
9-14 construction, acquisition, repair or renovation of buildings and
9-15 improvements and equipping the same for hospital purposes and for
9-16 any or all of such purposes.
9-17 (b) At the time of issuance of any general obligation
9-18 bond,[; provided, that] a sufficient tax shall be levied to create
9-19 an interest and sinking fund to pay the interest and principal as
9-20 same matures provided said tax together with any other taxes levied
9-21 for said district shall not exceed Seventy-five Cents (75 ) on each
9-22 $100 valuation of taxable property in any one year. Taxes levied
9-23 by the Castro County Hospital District may not exceed the limit
9-24 approved by the voters at the election authorizing the levy of
9-25 taxes. The Ochiltree County Hospital District may also issue and
9-26 sell bonds for health care purposes subject to the requirements of
10-1 this section.
10-2 (c) General obligation [Such] bonds shall be executed in the
10-3 name of the hospital district and on its behalf by the president of
10-4 the board of directors, and countersigned by the secretary of the
10-5 board of directors, and shall be subject to the same requirements
10-6 in the matter of approval thereof by the Attorney General of the
10-7 State of Texas and the registration thereof by the Comptroller of
10-8 Public Accounts of the State of Texas as are by law provided for
10-9 such approval and registration of bonds of such county. Upon the
10-10 approval of such bonds by the Attorney General of Texas the same
10-11 shall be incontestable for any cause.
10-12 (d) Except as provided by Section 6A, no bonds shall be
10-13 issued by such hospital district (except refunding bonds) until
10-14 authorized by a majority vote of the [legally qualified property
10-15 taxpaying] electors[,] residing in such hospital district, voting
10-16 at an election called and held for such purpose. Such election may
10-17 be called by the board of directors of its own motion, shall
10-18 specify the place or places where the election shall be held, the
10-19 presiding officers thereof, the purpose for which the bonds are to
10-20 be issued, the amount thereof, maximum interest rate (not to exceed
10-21 six (6%) per cent per annum) and the maximum maturity date of such
10-22 bonds (not to exceed forty (40) years from their date of issuance).
10-23 Notice of election shall be given by publishing a substantial copy
10-24 of the order calling the election in a newspaper of general
10-25 circulation in such county once a week for two (2) consecutive
10-26 weeks prior to the date of election, the date of the first
11-1 publication being at least fourteen (14) full days prior to the
11-2 date set for the election. The costs of such election shall be
11-3 paid by the hospital district.
11-4 (e) The [In the manner hereinabove provided, the] bonds of
11-5 such hospital district may, without the necessity of any election
11-6 therefor, be issued for the purpose of refunding and paying off any
11-7 bonded indebtedness theretofore assumed by such hospital district
11-8 and any bonds therefore issued by such hospital district.
11-9 Refunding bonds issued by the Castro County Hospital District must
11-10 be issued in the manner provided by Chapter 784, Acts of the 61st
11-11 Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas
11-12 Civil Statutes). The[; such] refunding bonds may be sold and the
11-13 proceeds thereof applied to the payment of any such outstanding
11-14 bonds or may be exchanged in whole or in part for not less than a
11-15 like amount of said outstanding bonds and interest matured thereon,
11-16 but unpaid; provided the average interest cost per annum on the
11-17 refunding bonds, computed in accordance with recognized standard
11-18 bond interest cost tables, shall not exceed the average interest
11-19 cost per annum so computed, upon the bonds to be discharged out of
11-20 the proceeds of the refunding bonds, unless the total interest cost
11-21 on the refunding bonds, computed to their respective maturity
11-22 dates, is less than the total interest cost so computed on the
11-23 bonds to be discharged out of such proceeds. In the foregoing
11-24 computations, any premium or premiums required to be paid upon the
11-25 bonds to be refunded as a condition to payment in advance of their
11-26 stated maturity dates shall be taken into account as an addition to
12-1 the net interest cost to the hospital district of the refunding
12-2 bonds.
12-3 (f) If the county in which the district is located or any
12-4 city within such county has voted bonds to provide hospital
12-5 facilities,[;] but such bonds have not been sold and delivered at
12-6 the date of the creation of the hospital district, the authority
12-7 for such bonds shall be canceled and they shall not be sold.
12-8 SECTION 8. Section 6A, Chapter 103, Acts of the 57th
12-9 Legislature, Regular Session, 1961, is amended by amending
12-10 Subsection (a) and by adding Subsection (d) to read as follows:
12-11 (a) In selling and reissuing bonds, and in making payments
12-12 of outstanding indebtedness, the Ochiltree County and Castro County
12-13 hospital districts [Hospital District] shall comply with Chapter
12-14 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
12-15 717k, Vernon's Texas Civil Statutes), and Chapter 784, Acts of the
12-16 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's
12-17 Texas Civil Statutes). The interest rate for district bonds may
12-18 not exceed the maximum rate allowed under Chapter 3, Acts of the
12-19 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
12-20 Texas Civil Statutes).
12-21 (d) The board of directors of the Castro County Hospital
12-22 District may issue revenue bonds in the name and on the faith and
12-23 credit of the district to purchase, construct, repair, renovate, or
12-24 acquire buildings or improvements, equip buildings and improvements
12-25 for hospital purposes, and acquire real property for hospital
12-26 purposes. The revenue bonds issued under this subsection must be
13-1 payable from and secured by a pledge of all or part of the Castro
13-2 County Hospital District's revenues from operations of the hospital
13-3 system. The bonds may also be secured by a mortgage or deed of
13-4 trust on all or part of the district's property. The revenue bonds
13-5 must be issued in the manner provided by Sections 264.042, 264.043,
13-6 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for
13-7 the issuance of revenue bonds by county hospital authorities.
13-8 SECTION 9. Section 6B, Chapter 103, Acts of the 57th
13-9 Legislature, Regular Session, 1961, is amended to read as follows:
13-10 Sec. 6B. The board of directors of the Ochiltree County or
13-11 Castro County Hospital District may borrow money for district
13-12 purposes on the credit of the district or secured by revenues of
13-13 the district.
13-14 SECTION 10. Section 7, Chapter 103, Acts of the 57th
13-15 Legislature, Regular Session, 1961, is amended to read as follows:
13-16 Sec. 7. (a) Any lands, buildings or equipment that may be
13-17 jointly or separately owned by the county and city within the
13-18 boundaries of the district and by which medical services or
13-19 hospital care, including geriatric care, are furnished to needy
13-20 persons of the city and county, shall become the property of the
13-21 hospital district; and title thereto shall vest in the hospital;
13-22 and any funds of such city and county, or either, which are the
13-23 proceeds of any bonds assumed by the hospital district, as hereby
13-24 provided, shall become the funds of the hospital district; and
13-25 title thereto shall vest in the hospital district; and there shall
13-26 vest in the hospital district and become the funds of the hospital
14-1 district the unspent portions of any funds theretofore set up or
14-2 appropriated by budget or otherwise by such city or the county, or
14-3 either of them, for the support and maintenance of the hospital
14-4 facilities for the year within which the hospital district comes
14-5 into existence, thereby providing such hospital district with funds
14-6 with which to maintain and operate such facilities for the
14-7 remainder of such year. All obligations under contract legally
14-8 incurred by such city or county, or either of them, for the
14-9 building of, or the support and maintenance of, hospital
14-10 facilities, prior to the creation of the said district but
14-11 outstanding at the time of the creation of the district, shall be
14-12 assumed and discharged by the hospital district without prejudice
14-13 to the rights of third parties, provided that the management and
14-14 control of the property and affairs of the present hospital system
14-15 shall continue in the board of managers of such system until
14-16 appointment and organization of the board of directors of the
14-17 hospital district, at which time the board of managers of the
14-18 present hospital system or systems shall turn over all records,
14-19 property and affairs of said hospital system to the board of
14-20 directors of the hospital district and shall cease to exist.
14-21 (b) Any outstanding bonded indebtedness incurred by such
14-22 city or county, either or both of them, in the acquisition of such
14-23 lands, buildings and equipment, or in the construction and
14-24 equipping of such hospital facilities, together with any other
14-25 outstanding bonds issued by either of them for hospital purposes,
14-26 and the proceeds of which are in whole or in part still unspent,
15-1 shall be assumed by the hospital district and become the obligation
15-2 of the hospital district; and the city or county, either or both of
15-3 them, that issued such bonds, shall be by the hospital district
15-4 relieved of any further liability for the payment thereof, or for
15-5 providing interest and sinking fund requirements thereon; provided
15-6 that nothing herein contained shall limit or affect any of the
15-7 rights of any of the holders of such bonds against the city or the
15-8 county, as the case may be, in the event of default in the payment
15-9 of the principal or interest on any of such bonds in accordance
15-10 with their respective terms.
15-11 (c) The Commissioners Court and the city, where a hospital
15-12 or hospital system is jointly operated, or the Commissioners Court,
15-13 where the county owns the hospital or hospital system, as the case
15-14 may be, as soon as the hospital district is created and authorized
15-15 at the election hereinabove provided, and there have been appointed
15-16 and qualified the board of hospital managers as hereinbefore
15-17 provided, shall execute and deliver to the hospital district,
15-18 to-wit: to its said board of directors, an instrument in writing
15-19 conveying to said hospital district the hospital property,
15-20 including lands, buildings and equipment; and shall transfer to
15-21 said hospital district the funds hereinabove provided to become
15-22 vested in the hospital district, upon being furnished the
15-23 certificate of the chairman of the board to the fact that a
15-24 depository for the district's funds has been selected and has
15-25 qualified; which funds shall, in the hands of the hospital district
15-26 and of its board of directors be used for all or any of the same
16-1 purposes as, and for no other purposes than, the purposes for which
16-2 the county or the city transferring such funds could lawfully have
16-3 used the same had they remained the property and funds of such
16-4 county or city.
16-5 SECTION 11. Subsections (b), (c), and (d), Section 8,
16-6 Chapter 103, Acts of the 57th Legislature, Regular Session, 1961,
16-7 are amended to read as follows:
16-8 (b) The board of directors of the Ochiltree County or Castro
16-9 County Hospital District may appoint a qualified person as
16-10 administrator of the district. The administrator serves at the
16-11 will of the board of directors and receives compensation as
16-12 determined by the board of directors. The administrator shall
16-13 supervise the work and activities of the district and direct the
16-14 general affairs of the district subject to the limitations
16-15 prescribed by the board of directors.
16-16 (c) The board of directors of the Ochiltree County or Castro
16-17 County Hospital District may employ technicians, nurses, fiscal
16-18 agents, accountants, and other necessary employees. The board of
16-19 directors may delegate to the administrator the authority to employ
16-20 these persons for the district.
16-21 (d) The board of directors of the Ochiltree County or Castro
16-22 County Hospital District may appoint doctors to the medical staff
16-23 or remove doctors from the medical staff as necessary for the
16-24 efficient operation of the district. This authority includes the
16-25 authority to make temporary appointments. The board of directors
16-26 may adopt policies relating to the appointment and removal of
17-1 medical staff members.
17-2 SECTION 12. Section 8A, Chapter 103, Acts of the 57th
17-3 Legislature, Regular Session, 1961, is amended by adding
17-4 Subsections (f) through (l) to read as follows:
17-5 (f) The district, subject to the approval of the board of
17-6 directors, may provide primary care, emergency services,
17-7 preventative medical services, and other health-related services
17-8 outside the district, provided that the services serve the purpose
17-9 of the district as established by this Act.
17-10 (g) The board of directors may contract with a political
17-11 subdivision or governmental agency to provide investigatory or
17-12 other services related to facilities for the medical care,
17-13 hospital, or welfare needs of the inhabitants of the district and
17-14 may contract with a hospital, hospital authority, hospital
17-15 district, emergency services district, county, municipality, or
17-16 other political subdivision of this state that is located outside
17-17 its boundaries to be reimbursed for the care and treatment of the
17-18 sick, diseased, or injured persons of that entity. The board of
17-19 directors may also contract with the state or agencies of the
17-20 federal government to be reimbursed for the treatment of sick,
17-21 diseased, or injured persons.
17-22 (h) The district may contract with, affiliate with, or enter
17-23 into another arrangement with a managed care system, a preferred
17-24 provider organization, a health maintenance organization, another
17-25 provider of alternative health care or delivery system, or a
17-26 private hospital to jointly administer or deliver health care
18-1 services. The district may spend district funds to establish and
18-2 maintain partnerships, corporations, or other entities involved in
18-3 the delivery of health care services.
18-4 (i) The district may sponsor and create a non-profit
18-5 corporation under the Texas Non-Profit Corporation Act (Article
18-6 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
18-7 contribute funds to or solicit funds for the corporation. The
18-8 corporation may use funds, other than funds paid by the corporation
18-9 to the district, only to provide health care or other services the
18-10 district may provide under this Act. The board of directors of the
18-11 hospital district shall establish adequate controls to ensure that
18-12 the corporation uses its funds as required by this subsection. The
18-13 corporation may invest corporation funds in any manner in which the
18-14 district may invest funds, including investing funds as authorized
18-15 by Chapter 2256, Government Code.
18-16 (j) The board of directors may spend district funds, enter
18-17 into agreements, and take other necessary action to recruit
18-18 physicians and other persons to serve as medical staff members or
18-19 employees of the district, including:
18-20 (1) advertising and marketing;
18-21 (2) paying travel, recruitment, and relocation
18-22 expenses;
18-23 (3) providing a loan or scholarship to a physician or
18-24 a person currently enrolled in health care education courses at an
18-25 institution of higher education who contractually agrees to become
18-26 a district employee or medical staff member; and
19-1 (4) providing office space without the payment of rent
19-2 for the space or otherwise subsidizing office space or other
19-3 facilities for a health care professional, including a physician.
19-4 (k) The board of directors may spend district funds, enter
19-5 into agreements, and take other necessary action to conduct,
19-6 participate in, or otherwise assist in providing health care
19-7 educational programs for current or prospective medical staff
19-8 members or employees of the district.
19-9 (l) The board of directors may provide retirement benefits
19-10 for employees of the district by:
19-11 (1) establishing or administering a retirement
19-12 program; or
19-13 (2) participating in the Texas County and District
19-14 Retirement System or in any other statewide retirement system in
19-15 which the district is eligible to participate.
19-16 SECTION 13. Section 9, Chapter 103, Acts of the 57th
19-17 Legislature, Regular Session, 1961, is amended to read as follows:
19-18 Sec. 9. (a) The fiscal year of the Ochiltree County
19-19 Hospital District authorized to be established by the provisions
19-20 hereof shall commence on October 1 of each year and end on the 30th
19-21 day of September of the following year. The Castro County Hospital
19-22 District shall operate on the fiscal year established by the board
19-23 of directors of that district. The district directors shall cause
19-24 an annual independent audit to be made of the books and records of
19-25 the district, such audit to be made covering such fiscal year, and
19-26 the same shall be filed with the Comptroller of Public Accounts of
20-1 the State of Texas and at the office of the district not later than
20-2 December 31st of each year.
20-3 (b) The board of directors shall each year cause a budget to
20-4 be prepared showing the proposed expenditures and disbursements and
20-5 the estimated receipts and collections for the following fiscal
20-6 year and shall hold a public hearing on the proposed budget after
20-7 publication of a notice of hearing in a newspaper of general
20-8 circulation in the county at least once not less than ten (10) days
20-9 prior to the date set for the hearing. Any person who is a
20-10 taxpayer of the district shall have the right to appear at the time
20-11 and place designated in the notice and be heard with reference to
20-12 any item shown in the proposed budget. The proposed budget shall
20-13 also show the amount of taxes required to be levied and collected
20-14 during such fiscal year and upon final approval of the budget, the
20-15 board of directors shall levy such tax as may be required and
20-16 certify the tax rate for such year to the county tax assessor and
20-17 collector as provided in Section 5 hereof, and it shall be the duty
20-18 of the said tax assessor and collector to assess and collect such
20-19 tax.
20-20 SECTION 14. Section 14, Chapter 103, Acts of the 57th
20-21 Legislature, Regular Session, 1961, is amended to read as follows:
20-22 Sec. 14. Whenever a patient has been admitted to the
20-23 facilities of the hospital district from the county in which the
20-24 district is situated, the directors shall cause inquiry to be made
20-25 as to the patient's [his] circumstances, and of the relatives of
20-26 such patient legally liable for the patient's [his] support. If
21-1 the patient [he] finds that such patient or said relatives are
21-2 liable to pay for the patient's [his] care and treatment in whole
21-3 or in part, an order shall be made directing such patient, or said
21-4 relatives, to pay to the treasurer of the hospital district for the
21-5 support of such patient a specified sum per week, in proportion to
21-6 their financial ability, but such sum shall not exceed the actual
21-7 per capita cost of maintenance. The district shall have power and
21-8 authority to collect such sum from the estate of the patient, or
21-9 the patient's [his] relatives legally liable for the patient's
21-10 [his] support, in the manner provided by law for the collection of
21-11 expenses of the last illness of a deceased person. If the agent
21-12 designated by the district to handle such affairs finds that such
21-13 patient or said relatives are not able to pay, either in whole or
21-14 in part, for the patient's [his] care and treatment in such
21-15 hospital, the same shall become a charge upon the hospital
21-16 district. Should there be a dispute as to the ability to pay, or
21-17 doubt in the mind of the person designated as aforesaid, the
21-18 district's directors shall hear and determine same, after calling
21-19 witnesses, and shall make such order as may be proper, from which
21-20 appeal shall lie to the district court by either party to the
21-21 dispute.
21-22 SECTION 15. Section 14A, Chapter 103, Acts of the 57th
21-23 Legislature, Regular Session, 1961, is amended to read as follows:
21-24 Sec. 14A. (a) This section applies only to the Ochiltree
21-25 County and Castro County hospital districts.
21-26 (b) The board of directors of the district [Ochiltree County
22-1 Hospital District] shall seek reimbursement, in the manner provided
22-2 by Chapter 61, Health and Safety Code, from a county, municipality,
22-3 or public hospital located outside the boundaries of the district
22-4 for the district's care for or treatment of a sick, diseased, or
22-5 injured person for whom that county, municipality, or public
22-6 hospital has an obligation to provide care. The board of directors
22-7 shall seek reimbursement under Article 104.002, Code of Criminal
22-8 Procedure, for the district's care for or treatment of a person who
22-9 is not a resident of the district and who is confined in a county
22-10 jail facility.
22-11 SECTION 16. Chapter 103, Acts of the 57th Legislature,
22-12 Regular Session, 1961, is amended by adding Sections 16A and 21 to
22-13 read as follows:
22-14 Sec. 16A. (a) This section applies only to the Castro
22-15 County Hospital District.
22-16 (b) The board of directors may borrow money at a rate not to
22-17 exceed the maximum annual percentage rate allowed by law for
22-18 district obligations at the time of the loan.
22-19 (c) To secure a loan, the board of directors may pledge:
22-20 (1) the revenues of the district that are not pledged
22-21 to pay bonded indebtedness of the district;
22-22 (2) taxes to be levied by the district in the next 12
22-23 months that are not pledged to pay the principal of or interest on
22-24 district bonds; or
22-25 (3) district bonds that have been authorized but not
22-26 sold.
23-1 (d) A loan for which taxes or bonds are pledged must mature
23-2 not later than the first anniversary of the date on which the loan
23-3 was made. A loan for which district revenues are pledged must
23-4 mature not later than the fifth anniversary of the date on which
23-5 the loan was made.
23-6 Sec. 21. (a) This section applies only to the Castro County
23-7 Hospital District.
23-8 (b) The district may be dissolved only if the dissolution is
23-9 approved by a majority of the voters of the district voting in an
23-10 election called and held for that purpose.
23-11 (c) The board of directors may order an election on the
23-12 question of dissolving the district and disposing of the district's
23-13 assets and obligations. The board shall order an election if the
23-14 board receives a petition requesting an election that is signed by
23-15 a number of residents of the district equal to at least 15 percent
23-16 of the registered voters in the district.
23-17 (d) The election shall be held not later than the 60th day
23-18 after the date the election is ordered. Section 41.001(a),
23-19 Election Code, does not apply to an election ordered under this
23-20 section. The order calling the election shall state:
23-21 (1) the nature of the election, including the
23-22 proposition that is to appear on the ballot;
23-23 (2) the date of the election;
23-24 (3) the hours during which the polls will be open; and
23-25 (4) the locations of the polling places.
23-26 (e) The board of directors shall give notice of the election
24-1 by publishing the election order in a newspaper with general
24-2 circulation in the district once a week for two consecutive weeks.
24-3 The first publication must appear not less than 35 days before the
24-4 date set for the election. The ballot for the election shall be
24-5 printed to permit voting for or against the proposition: "The
24-6 dissolution of the Castro County Hospital District."
24-7 (f) If a majority of the votes in the election favor
24-8 dissolution, the board of directors shall find that the district is
24-9 dissolved. If a majority of the votes in the election do not
24-10 favor dissolution, the board shall continue to administer the
24-11 district, and another election on the question of dissolution may
24-12 not be held before the first anniversary of the most recent
24-13 election to dissolve the district.
24-14 (g) If a majority of the votes in the election favor
24-15 dissolution, the board of directors shall:
24-16 (1) transfer the land, buildings, improvements,
24-17 equipment, and other assets that belong to the district to a county
24-18 or other governmental agency in the county in which the district is
24-19 located; or
24-20 (2) administer the property, assets, and debts until
24-21 all funds have been disposed of and all district debts have been
24-22 paid or settled.
24-23 (h) If the district transfers the land, buildings,
24-24 improvements, equipment, and other assets to a county or other
24-25 governmental agency, the county or agency assumes all debts and
24-26 obligations of the district at the time of the transfer, and the
25-1 district is dissolved.
25-2 (i) After the board of directors finds that the district is
25-3 dissolved, the board shall:
25-4 (1) determine the debt owed by the district; and
25-5 (2) impose on the property included in the district's
25-6 tax rolls a tax that is in proportion of the debt to the property
25-7 value.
25-8 (j) When all outstanding debts and obligations of the
25-9 district are paid, the board of directors shall order the secretary
25-10 to return the pro rata share of all unused tax money to each
25-11 district taxpayer.
25-12 (k) A taxpayer may request that the taxpayer's share of
25-13 surplus tax money be credited to the taxpayer's county taxes. If a
25-14 taxpayer requests the credit, the board of directors shall direct
25-15 the secretary to transmit the funds to the county tax
25-16 assessor-collector.
25-17 (l) After the district has paid all its debts and has
25-18 disposed of all its assets and funds as prescribed by this section,
25-19 the board of directors shall file a written report with the
25-20 commissioners court of Castro County setting forth a summary of the
25-21 board's actions in dissolving the district.
25-22 (m) Not later than the 10th day after the date it receives
25-23 the report and determines that the requirements of this section
25-24 have been fulfilled, the commissioners court of Castro County shall
25-25 enter an order dissolving the district and releasing the board of
25-26 directors of the district from any further duty or obligation.
26-1 (n) The district may not be dissolved unless the board of
26-2 directors provides for the sale or transfer of the district's
26-3 assets and liabilities to another person or entity. The
26-4 dissolution of the district and the sale or transfer of the
26-5 district's assets and liabilities may not contravene a trust
26-6 indenture or bond resolution relating to the outstanding bonds of
26-7 the district. The dissolution and sale or transfer does not
26-8 diminish or impair the rights of a holder of an outstanding bond,
26-9 warrant, or other obligation of the district.
26-10 (o) The sale or transfer of the district's assets and
26-11 liabilities must satisfy the debt and bond obligations of the
26-12 district in a manner that protects the interests of the residents
26-13 of the district, including the residents' collective property
26-14 rights in the district's assets. A grant from federal funds is an
26-15 obligation to be repaid in satisfaction. The district may not
26-16 transfer or dispose of the district's assets except for due
26-17 compensation unless the transfer is made to a governmental agency
26-18 that serves the district and the transferred assets are to be used
26-19 for the benefit of the residents of the district.
26-20 SECTION 17. The importance of this legislation and the
26-21 crowded condition of the calendars in both houses create an
26-22 emergency and an imperative public necessity that the
26-23 constitutional rule requiring bills to be read on three several
26-24 days in each house be suspended, and this rule is hereby suspended,
26-25 and that this Act take effect and be in force from and after its
26-26 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1627 passed the Senate on
April 8, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1627 passed the House on
May 4, 1999, by the following vote: Yeas 144, Nays 0, two present
not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor