1-1 By: Haywood S.B. No. 1627
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; March 31, 1999, reported favorably by the following
1-5 vote: Yeas 5, Nays 0; March 31, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the Castro County, Hansford County, and Ochiltree
1-9 County hospital districts; authorizing the issuance of bonds and
1-10 the imposition of taxes.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 2, Chapter 103, Acts of the 57th
1-13 Legislature, Regular Session, 1961, is amended to read as follows:
1-14 Sec. 2. Each of the counties to which this Act applies may
1-15 be constituted a hospital district as hereinafter set out, and may
1-16 take over the hospital or hospital system, either owned separately
1-17 by a county or jointly with a city within such county, or may
1-18 provide for the establishment of a hospital or hospital system to
1-19 furnish medical and hospital care to needy persons residing in said
1-20 hospital district; provided, however, that such hospital district
1-21 shall not be created unless and until an election is duly held in
1-22 such county for such purpose, which said election may be initiated
1-23 by the Commissioners Court of each of such counties upon its own
1-24 motion or upon a petition of one hundred (100) resident [qualified
1-25 property taxpaying] electors, to be held not less than thirty (30)
1-26 days from the time said election is ordered by the Commissioners
1-27 Court. At said election there shall be submitted to the [qualified
1-28 property taxpaying] electors the proposition of whether or not a
1-29 hospital district shall be created in the county; and a majority of
1-30 the [qualified property taxpaying] electors participating in said
1-31 election voting in favor of the proposition shall be necessary.
1-32 The ballots shall have printed thereon:
1-33 "FOR the creation of a hospital district; providing for the
1-34 levy of a tax not to exceed Seventy-five Cents (75 ) on the One
1-35 Hundred Dollars ($100.00) valuation"; and
1-36 "AGAINST the creation of a hospital district; providing for
1-37 the levy of a tax not to exceed Seventy-five Cents (75 ) on the One
1-38 Hundred Dollars ($100.00) valuation."
1-39 If such county or city located therein, either or both of
1-40 them, has any outstanding bonds theretofore issued for hospital
1-41 purposes (which by the provisions of Section 7 of this Act are
1-42 required to be assumed by the hospital district), then the ballots
1-43 for such election shall, instead of the foregoing, have printed
1-44 thereon:
1-45 "FOR the creation of a hospital district; providing for the
1-46 levy of a tax not to exceed Seventy-five Cents (75 ) on the One
1-47 Hundred Dollars ($100.00) valuation; and providing for the
1-48 assumption by such district of all outstanding bonds heretofore
1-49 issued by ____________ County, and by any city in said county for
1-50 hospital purposes"; and
1-51 "AGAINST the creation of a hospital district; providing for
1-52 the levy of a tax not to exceed Seventy-five Cents (75 ) on the One
1-53 Hundred Dollars ($100.00) valuation; and providing for the
1-54 assumption by such district of all outstanding bonds heretofore
1-55 issued by ___________ County, and by any city in said county for
1-56 hospital purposes."
1-57 SECTION 2. Section 3, Chapter 103, Acts of the 57th
1-58 Legislature, Regular Session, 1961, is amended to read as follows:
1-59 Sec. 3. (a) Within ten (10) days after such election is
1-60 held the Commissioners Court in such county shall convene and
1-61 canvass the returns of the election, and if a majority of the
1-62 [qualified property taxpaying] electors voting at said election
1-63 voted in favor of the proposition, the court shall so find and
1-64 declare the hospital district established and created and appoint
2-1 five (5) persons as directors of the hospital district to serve
2-2 until the first Saturday in April following the creation and
2-3 establishment of the district at which time five (5) directors
2-4 shall be elected. The three (3) directors receiving the highest
2-5 vote at such first election shall serve for two (2) years, the
2-6 other two (2) directors shall serve for one (1) year. Thereafter,
2-7 all directors shall serve for a period of two (2) years and until
2-8 their successor has been duly elected or appointed and qualified.
2-9 (b) A person may not [No person shall] be appointed or
2-10 elected as a member of the board of directors of said hospital
2-11 district unless the person [he] is a resident thereof [and owns
2-12 land subject to taxation therein] and, [unless] at the time of such
2-13 election or appointment, the person is [he shall be] more than
2-14 twenty-one (21) years of age. A person may not be elected or
2-15 appointed as a member of the board of directors of the Castro
2-16 County Hospital District unless the person is a resident of the
2-17 district and is at the time of election or appointment at least 21
2-18 years of age. An employee or a medical staff member of the
2-19 Ochiltree County or Castro County Hospital District may not serve
2-20 as a director of the respective [that] district.
2-21 (c) Each member of the board of directors shall qualify by
2-22 executing the constitutional oath of office and shall execute a
2-23 good and sufficient bond for One Thousand Dollars ($1,000) payable
2-24 to said district conditioned upon the faithful performance of the
2-25 member's [his] duties, and such oaths and bonds shall be deposited
2-26 with the depository bank of the district for safekeeping. The
2-27 Ochiltree County or Castro County Hospital District may purchase
2-28 directors' bonds with district funds.
2-29 (d) The board of directors of the Hansford County and
2-30 Ochiltree County hospital districts shall organize by electing one
2-31 (1) of their number as president and one (1) of their number as
2-32 secretary. The board of directors of the Castro County Hospital
2-33 District shall organize by electing from the membership of the
2-34 board one member to serve as president, one member to serve as vice
2-35 president, and one member to serve as secretary. Any three (3)
2-36 members of the board of directors shall constitute a quorum and a
2-37 concurrence of three (3) shall be sufficient in all matters
2-38 pertaining to the business of the district. All vacancies in the
2-39 office of director shall be filled for the unexpired term by
2-40 appointment of the remainder of the board of directors. In the
2-41 event the number of directors shall be reduced to less than three
2-42 (3) for any reason, the remaining directors shall immediately call
2-43 a special election to fill said vacancies, and upon failure to do
2-44 so a district court may, upon application of any voter or taxpayer
2-45 of the district, issue a mandate requiring that such election be
2-46 ordered by the remaining directors.
2-47 (e) A regular election of directors shall be held on the
2-48 first Saturday in May of each year and notice of such election
2-49 shall be published in a newspaper of general circulation in the
2-50 county one (1) time not earlier than the 30th day or later than the
2-51 10th day before [at least ten (10) days prior to] the date of the
2-52 election. A person who wishes to have the person's name printed on
2-53 the ballot as a candidate for director of the Castro County
2-54 Hospital District must file an application with the secretary of
2-55 the board of the Castro County Hospital District not later than the
2-56 45th day before the date of the election. A [Any] person who
2-57 wishes to have the person's [desiring his] name [to be] printed on
2-58 the ballot as a candidate for director of the Ochiltree County
2-59 Hospital District shall file a petition, signed by not less than
2-60 twenty-five (25) qualified voters asking that such name be printed
2-61 on the ballot, with the secretary of the board of directors of the
2-62 district not later than the 25th day before [at least twenty-five
2-63 (25) days prior to] the date of the election.
2-64 SECTION 3. Subsection (a), Section 3A, Chapter 103, Acts of
2-65 the 57th Legislature, Regular Session, 1961, is amended to read as
2-66 follows:
2-67 (a) This section applies only to the Ochiltree County and
2-68 Castro County hospital districts [Hospital District].
2-69 SECTION 4. Section 4, Chapter 103, Acts of the 57th
3-1 Legislature, Regular Session, 1961, is amended to read as follows:
3-2 Sec. 4. The management and control of each hospital district
3-3 created pursuant to the provisions of this Act is hereby vested in
3-4 the board of directors of the district who shall serve without
3-5 compensation but may be reimbursed for actual expenses incurred in
3-6 the performance of their official duties upon the approval of such
3-7 expenses by the entire board of directors. The board of directors
3-8 of the Ochiltree County or Castro County Hospital District may
3-9 defend or indemnify an officer, director, board appointee, medical
3-10 staff member, or employee of the district against or for liability,
3-11 claims, or expenses that arise from the performance of a duty in
3-12 the person's respective capacity as an officer, director, board
3-13 appointee, medical staff member, or employee of the district. The
3-14 board of directors may purchase liability insurance coverage or
3-15 establish a self-insurance program to fund indemnification under
3-16 this section.
3-17 SECTION 5. Section 5, Chapter 103, Acts of the 57th
3-18 Legislature, Regular Session, 1961, is amended to read as follows:
3-19 Sec. 5. (a) Upon the creation of such hospital district,
3-20 the board of directors of the Ochiltree County or Hansford County
3-21 Hospital District shall have the power and authority and it shall
3-22 be their duty to levy on all property subject to hospital district
3-23 taxation for the benefit of the district at the same time taxes are
3-24 levied for county purposes, using the county values and the county
3-25 tax roll, a tax of not to exceed Seventy-five Cents (75 ) on the
3-26 One Hundred Dollars ($100.00) valuation of all taxable property
3-27 within the hospital district, for the purpose of:
3-28 (1) paying the interest on and creating a sinking fund
3-29 for bonds which may have been assumed or which may be issued by the
3-30 hospital district for hospital purposes as herein provided;
3-31 (2) providing for the operation and maintenance of the
3-32 hospital or hospital system; and
3-33 (3) [for the purpose of] making further improvements
3-34 and additions to the hospital system, and for the acquisition of
3-35 necessary sites therefor, by purchase, lease or condemnation.
3-36 (b) Not later than October 1 of each year, the board of
3-37 directors of the Ochiltree County or Hansford County Hospital
3-38 District shall levy the tax on all taxable property within the
3-39 district which is subject to taxation and shall immediately certify
3-40 such tax rate to the tax assessor and collector of the county in
3-41 which the district is located. The tax so levied shall be
3-42 collected on all property subject to hospital district taxation by
3-43 the assessor and collector of taxes for the county on the county
3-44 tax values, and in the same manner and under the same conditions as
3-45 county taxes. The assessor and collector of taxes shall charge and
3-46 deduct from payments to the hospital district the fees for
3-47 assessing and collecting the tax at the rate of not exceeding one
3-48 (1%) per cent of the amounts collected as may be determined by the
3-49 board of directors but in no event in excess of Five Thousand
3-50 Dollars ($5,000.00) for any one (1) fiscal year. Such fees shall
3-51 be deposited in the county's general fund, and shall be reported as
3-52 fees of office of the tax assessor and collector. Interest and
3-53 penalties on taxes paid to the hospital district shall be the same
3-54 as in the case of county taxes. Discounts shall be the same as for
3-55 county taxes. The residue of tax collections, after deduction of
3-56 discounts and fees for assessing and collecting, shall be deposited
3-57 in the district depository; and such funds shall be withdrawn only
3-58 as provided herein. All other income of the hospital district
3-59 shall be deposited in like manner with the district depository.
3-60 (c) The board of directors of the Ochiltree County or
3-61 Hansford County Hospital District shall have the authority to levy
3-62 the tax aforesaid for the entire year in which the said hospital
3-63 district is established, for the purpose of securing funds to
3-64 initiate the operation of the hospital district, and to pay assumed
3-65 bonds.
3-66 SECTION 6. Chapter 103, Acts of the 57th Legislature,
3-67 Regular Session, 1961, is amended by adding Section 5A to read as
3-68 follows:
3-69 Sec. 5A. (a) This section applies only to the Castro County
4-1 Hospital District.
4-2 (b) The board of directors annually may impose property
4-3 taxes in an amount not to exceed the limit approved by the voters
4-4 at the election authorizing the levy of taxes.
4-5 (c) The tax rate for all purposes may not exceed 75 cents on
4-6 each $100 valuation of all taxable property in the district.
4-7 (d) The taxes may be used to pay:
4-8 (1) the indebtedness issued or assumed by the
4-9 district; or
4-10 (2) the maintenance and operating expenses of the
4-11 district.
4-12 (e) The district may not impose taxes to pay the principal
4-13 of or interest on revenue bonds issued by the district.
4-14 (f) The Tax Code governs the appraisal, assessment, and
4-15 collection of district taxes.
4-16 (g) The board of directors may provide for the appointment
4-17 of a tax assessor-collector for the district or may contract for
4-18 the assessment and collection of taxes as provided by the Tax Code.
4-19 SECTION 7. Section 6, Chapter 103, Acts of the 57th
4-20 Legislature, Regular Session, 1961, is amended to read as follows:
4-21 Sec. 6. (a) The board of directors shall have the power and
4-22 authority to issue and sell as the obligations of such hospital
4-23 district, and in the name and upon the faith and credit of such
4-24 hospital district, general obligation bonds for the purchase,
4-25 construction, acquisition, repair or renovation of buildings and
4-26 improvements and equipping the same for hospital purposes and for
4-27 any or all of such purposes.
4-28 (b) At the time of issuance of any general obligation
4-29 bond,[; provided, that] a sufficient tax shall be levied to create
4-30 an interest and sinking fund to pay the interest and principal as
4-31 same matures provided said tax together with any other taxes levied
4-32 for said district shall not exceed Seventy-five Cents (75 ) on each
4-33 $100 valuation of taxable property in any one year. Taxes levied
4-34 by the Castro County Hospital District may not exceed the limit
4-35 approved by the voters at the election authorizing the levy of
4-36 taxes. The Ochiltree County Hospital District may also issue and
4-37 sell bonds for health care purposes subject to the requirements of
4-38 this section.
4-39 (c) General obligation [Such] bonds shall be executed in the
4-40 name of the hospital district and on its behalf by the president of
4-41 the board of directors, and countersigned by the secretary of the
4-42 board of directors, and shall be subject to the same requirements
4-43 in the matter of approval thereof by the Attorney General of the
4-44 State of Texas and the registration thereof by the Comptroller of
4-45 Public Accounts of the State of Texas as are by law provided for
4-46 such approval and registration of bonds of such county. Upon the
4-47 approval of such bonds by the Attorney General of Texas the same
4-48 shall be incontestable for any cause.
4-49 (d) Except as provided by Section 6A, no bonds shall be
4-50 issued by such hospital district (except refunding bonds) until
4-51 authorized by a majority vote of the [legally qualified property
4-52 taxpaying] electors[,] residing in such hospital district, voting
4-53 at an election called and held for such purpose. Such election may
4-54 be called by the board of directors of its own motion, shall
4-55 specify the place or places where the election shall be held, the
4-56 presiding officers thereof, the purpose for which the bonds are to
4-57 be issued, the amount thereof, maximum interest rate (not to exceed
4-58 six (6%) per cent per annum) and the maximum maturity date of such
4-59 bonds (not to exceed forty (40) years from their date of issuance).
4-60 Notice of election shall be given by publishing a substantial copy
4-61 of the order calling the election in a newspaper of general
4-62 circulation in such county once a week for two (2) consecutive
4-63 weeks prior to the date of election, the date of the first
4-64 publication being at least fourteen (14) full days prior to the
4-65 date set for the election. The costs of such election shall be
4-66 paid by the hospital district.
4-67 (e) The [In the manner hereinabove provided, the] bonds of
4-68 such hospital district may, without the necessity of any election
4-69 therefor, be issued for the purpose of refunding and paying off any
5-1 bonded indebtedness theretofore assumed by such hospital district
5-2 and any bonds therefore issued by such hospital district.
5-3 Refunding bonds issued by the Castro County Hospital District must
5-4 be issued in the manner provided by Chapter 784, Acts of the 61st
5-5 Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas
5-6 Civil Statutes). The[; such] refunding bonds may be sold and the
5-7 proceeds thereof applied to the payment of any such outstanding
5-8 bonds or may be exchanged in whole or in part for not less than a
5-9 like amount of said outstanding bonds and interest matured thereon,
5-10 but unpaid; provided the average interest cost per annum on the
5-11 refunding bonds, computed in accordance with recognized standard
5-12 bond interest cost tables, shall not exceed the average interest
5-13 cost per annum so computed, upon the bonds to be discharged out of
5-14 the proceeds of the refunding bonds, unless the total interest cost
5-15 on the refunding bonds, computed to their respective maturity
5-16 dates, is less than the total interest cost so computed on the
5-17 bonds to be discharged out of such proceeds. In the foregoing
5-18 computations, any premium or premiums required to be paid upon the
5-19 bonds to be refunded as a condition to payment in advance of their
5-20 stated maturity dates shall be taken into account as an addition to
5-21 the net interest cost to the hospital district of the refunding
5-22 bonds.
5-23 (f) If the county in which the district is located or any
5-24 city within such county has voted bonds to provide hospital
5-25 facilities,[;] but such bonds have not been sold and delivered at
5-26 the date of the creation of the hospital district, the authority
5-27 for such bonds shall be canceled and they shall not be sold.
5-28 SECTION 8. Section 6A, Chapter 103, Acts of the 57th
5-29 Legislature, Regular Session, 1961, is amended by amending
5-30 Subsection (a) and by adding Subsection (d) to read as follows:
5-31 (a) In selling and reissuing bonds, and in making payments
5-32 of outstanding indebtedness, the Ochiltree County and Castro County
5-33 hospital districts [Hospital District] shall comply with Chapter
5-34 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
5-35 717k, Vernon's Texas Civil Statutes), and Chapter 784, Acts of the
5-36 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's
5-37 Texas Civil Statutes). The interest rate for district bonds may
5-38 not exceed the maximum rate allowed under Chapter 3, Acts of the
5-39 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
5-40 Texas Civil Statutes).
5-41 (d) The board of directors of the Castro County Hospital
5-42 District may issue revenue bonds in the name and on the faith and
5-43 credit of the district to purchase, construct, repair, renovate, or
5-44 acquire buildings or improvements, equip buildings and improvements
5-45 for hospital purposes, and acquire real property for hospital
5-46 purposes. The revenue bonds issued under this subsection must be
5-47 payable from and secured by a pledge of all or part of the Castro
5-48 County Hospital District's revenues from operations of the hospital
5-49 system. The bonds may also be secured by a mortgage or deed of
5-50 trust on all or part of the district's property. The revenue bonds
5-51 must be issued in the manner provided by Sections 264.042, 264.043,
5-52 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for
5-53 the issuance of revenue bonds by county hospital authorities.
5-54 SECTION 9. Section 6B, Chapter 103, Acts of the 57th
5-55 Legislature, Regular Session, 1961, is amended to read as follows:
5-56 Sec. 6B. The board of directors of the Ochiltree County or
5-57 Castro County Hospital District may borrow money for district
5-58 purposes on the credit of the district or secured by revenues of
5-59 the district.
5-60 SECTION 10. Section 7, Chapter 103, Acts of the 57th
5-61 Legislature, Regular Session, 1961, is amended to read as follows:
5-62 Sec. 7. (a) Any lands, buildings or equipment that may be
5-63 jointly or separately owned by the county and city within the
5-64 boundaries of the district and by which medical services or
5-65 hospital care, including geriatric care, are furnished to needy
5-66 persons of the city and county, shall become the property of the
5-67 hospital district; and title thereto shall vest in the hospital;
5-68 and any funds of such city and county, or either, which are the
5-69 proceeds of any bonds assumed by the hospital district, as hereby
6-1 provided, shall become the funds of the hospital district; and
6-2 title thereto shall vest in the hospital district; and there shall
6-3 vest in the hospital district and become the funds of the hospital
6-4 district the unspent portions of any funds theretofore set up or
6-5 appropriated by budget or otherwise by such city or the county, or
6-6 either of them, for the support and maintenance of the hospital
6-7 facilities for the year within which the hospital district comes
6-8 into existence, thereby providing such hospital district with funds
6-9 with which to maintain and operate such facilities for the
6-10 remainder of such year. All obligations under contract legally
6-11 incurred by such city or county, or either of them, for the
6-12 building of, or the support and maintenance of, hospital
6-13 facilities, prior to the creation of the said district but
6-14 outstanding at the time of the creation of the district, shall be
6-15 assumed and discharged by the hospital district without prejudice
6-16 to the rights of third parties, provided that the management and
6-17 control of the property and affairs of the present hospital system
6-18 shall continue in the board of managers of such system until
6-19 appointment and organization of the board of directors of the
6-20 hospital district, at which time the board of managers of the
6-21 present hospital system or systems shall turn over all records,
6-22 property and affairs of said hospital system to the board of
6-23 directors of the hospital district and shall cease to exist.
6-24 (b) Any outstanding bonded indebtedness incurred by such
6-25 city or county, either or both of them, in the acquisition of such
6-26 lands, buildings and equipment, or in the construction and
6-27 equipping of such hospital facilities, together with any other
6-28 outstanding bonds issued by either of them for hospital purposes,
6-29 and the proceeds of which are in whole or in part still unspent,
6-30 shall be assumed by the hospital district and become the obligation
6-31 of the hospital district; and the city or county, either or both of
6-32 them, that issued such bonds, shall be by the hospital district
6-33 relieved of any further liability for the payment thereof, or for
6-34 providing interest and sinking fund requirements thereon; provided
6-35 that nothing herein contained shall limit or affect any of the
6-36 rights of any of the holders of such bonds against the city or the
6-37 county, as the case may be, in the event of default in the payment
6-38 of the principal or interest on any of such bonds in accordance
6-39 with their respective terms.
6-40 (c) The Commissioners Court and the city, where a hospital
6-41 or hospital system is jointly operated, or the Commissioners Court,
6-42 where the county owns the hospital or hospital system, as the case
6-43 may be, as soon as the hospital district is created and authorized
6-44 at the election hereinabove provided, and there have been appointed
6-45 and qualified the board of hospital managers as hereinbefore
6-46 provided, shall execute and deliver to the hospital district,
6-47 to-wit: to its said board of directors, an instrument in writing
6-48 conveying to said hospital district the hospital property,
6-49 including lands, buildings and equipment; and shall transfer to
6-50 said hospital district the funds hereinabove provided to become
6-51 vested in the hospital district, upon being furnished the
6-52 certificate of the chairman of the board to the fact that a
6-53 depository for the district's funds has been selected and has
6-54 qualified; which funds shall, in the hands of the hospital district
6-55 and of its board of directors be used for all or any of the same
6-56 purposes as, and for no other purposes than, the purposes for which
6-57 the county or the city transferring such funds could lawfully have
6-58 used the same had they remained the property and funds of such
6-59 county or city.
6-60 SECTION 11. Subsections (b), (c), and (d), Section 8,
6-61 Chapter 103, Acts of the 57th Legislature, Regular Session, 1961,
6-62 are amended to read as follows:
6-63 (b) The board of directors of the Ochiltree County or Castro
6-64 County Hospital District may appoint a qualified person as
6-65 administrator of the district. The administrator serves at the
6-66 will of the board of directors and receives compensation as
6-67 determined by the board of directors. The administrator shall
6-68 supervise the work and activities of the district and direct the
6-69 general affairs of the district subject to the limitations
7-1 prescribed by the board of directors.
7-2 (c) The board of directors of the Ochiltree County or Castro
7-3 County Hospital District may employ technicians, nurses, fiscal
7-4 agents, accountants, and other necessary employees. The board of
7-5 directors may delegate to the administrator the authority to employ
7-6 these persons for the district.
7-7 (d) The board of directors of the Ochiltree County or Castro
7-8 County Hospital District may appoint doctors to the medical staff
7-9 or remove doctors from the medical staff as necessary for the
7-10 efficient operation of the district. This authority includes the
7-11 authority to make temporary appointments. The board of directors
7-12 may adopt policies relating to the appointment and removal of
7-13 medical staff members.
7-14 SECTION 12. Section 8A, Chapter 103, Acts of the 57th
7-15 Legislature, Regular Session, 1961, is amended by adding
7-16 Subsections (f) through (l) to read as follows:
7-17 (f) The district, subject to the approval of the board of
7-18 directors, may provide primary care, emergency services,
7-19 preventative medical services, and other health-related services
7-20 outside the district, provided that the services serve the purpose
7-21 of the district as established by this Act.
7-22 (g) The board of directors may contract with a political
7-23 subdivision or governmental agency to provide investigatory or
7-24 other services related to facilities for the medical care,
7-25 hospital, or welfare needs of the inhabitants of the district and
7-26 may contract with a hospital, hospital authority, hospital
7-27 district, emergency services district, county, municipality, or
7-28 other political subdivision of this state that is located outside
7-29 its boundaries to be reimbursed for the care and treatment of the
7-30 sick, diseased, or injured persons of that entity. The board of
7-31 directors may also contract with the state or agencies of the
7-32 federal government to be reimbursed for the treatment of sick,
7-33 diseased, or injured persons.
7-34 (h) The district may contract with, affiliate with, or enter
7-35 into another arrangement with a managed care system, a preferred
7-36 provider organization, a health maintenance organization, another
7-37 provider of alternative health care or delivery system, or a
7-38 private hospital to jointly administer or deliver health care
7-39 services. The district may spend district funds to establish and
7-40 maintain partnerships, corporations, or other entities involved in
7-41 the delivery of health care services.
7-42 (i) The district may sponsor and create a non-profit
7-43 corporation under the Texas Non-Profit Corporation Act (Article
7-44 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
7-45 contribute funds to or solicit funds for the corporation. The
7-46 corporation may use funds, other than funds paid by the corporation
7-47 to the district, only to provide health care or other services the
7-48 district may provide under this Act. The board of directors of the
7-49 hospital district shall establish adequate controls to ensure that
7-50 the corporation uses its funds as required by this subsection. The
7-51 corporation may invest corporation funds in any manner in which the
7-52 district may invest funds, including investing funds as authorized
7-53 by Chapter 2256, Government Code.
7-54 (j) The board of directors may spend district funds, enter
7-55 into agreements, and take other necessary action to recruit
7-56 physicians and other persons to serve as medical staff members or
7-57 employees of the district, including:
7-58 (1) advertising and marketing;
7-59 (2) paying travel, recruitment, and relocation
7-60 expenses;
7-61 (3) providing a loan or scholarship to a physician or
7-62 a person currently enrolled in health care education courses at an
7-63 institution of higher education who contractually agrees to become
7-64 a district employee or medical staff member; and
7-65 (4) providing office space without the payment of rent
7-66 for the space or otherwise subsidizing office space or other
7-67 facilities for a health care professional, including a physician.
7-68 (k) The board of directors may spend district funds, enter
7-69 into agreements, and take other necessary action to conduct,
8-1 participate in, or otherwise assist in providing health care
8-2 educational programs for current or prospective medical staff
8-3 members or employees of the district.
8-4 (l) The board of directors may provide retirement benefits
8-5 for employees of the district by:
8-6 (1) establishing or administering a retirement
8-7 program; or
8-8 (2) participating in the Texas County and District
8-9 Retirement System or in any other statewide retirement system in
8-10 which the district is eligible to participate.
8-11 SECTION 13. Section 9, Chapter 103, Acts of the 57th
8-12 Legislature, Regular Session, 1961, is amended to read as follows:
8-13 Sec. 9. (a) The fiscal year of the Ochiltree County
8-14 Hospital District authorized to be established by the provisions
8-15 hereof shall commence on October 1 of each year and end on the 30th
8-16 day of September of the following year. The Castro County Hospital
8-17 District shall operate on the fiscal year established by the board
8-18 of directors of that district. The district directors shall cause
8-19 an annual independent audit to be made of the books and records of
8-20 the district, such audit to be made covering such fiscal year, and
8-21 the same shall be filed with the Comptroller of Public Accounts of
8-22 the State of Texas and at the office of the district not later than
8-23 December 31st of each year.
8-24 (b) The board of directors shall each year cause a budget to
8-25 be prepared showing the proposed expenditures and disbursements and
8-26 the estimated receipts and collections for the following fiscal
8-27 year and shall hold a public hearing on the proposed budget after
8-28 publication of a notice of hearing in a newspaper of general
8-29 circulation in the county at least once not less than ten (10) days
8-30 prior to the date set for the hearing. Any person who is a
8-31 taxpayer of the district shall have the right to appear at the time
8-32 and place designated in the notice and be heard with reference to
8-33 any item shown in the proposed budget. The proposed budget shall
8-34 also show the amount of taxes required to be levied and collected
8-35 during such fiscal year and upon final approval of the budget, the
8-36 board of directors shall levy such tax as may be required and
8-37 certify the tax rate for such year to the county tax assessor and
8-38 collector as provided in Section 5 hereof, and it shall be the duty
8-39 of the said tax assessor and collector to assess and collect such
8-40 tax.
8-41 SECTION 14. Section 14, Chapter 103, Acts of the 57th
8-42 Legislature, Regular Session, 1961, is amended to read as follows:
8-43 Sec. 14. Whenever a patient has been admitted to the
8-44 facilities of the hospital district from the county in which the
8-45 district is situated, the directors shall cause inquiry to be made
8-46 as to the patient's [his] circumstances, and of the relatives of
8-47 such patient legally liable for the patient's [his] support. If
8-48 the patient [he] finds that such patient or said relatives are
8-49 liable to pay for the patient's [his] care and treatment in whole
8-50 or in part, an order shall be made directing such patient, or said
8-51 relatives, to pay to the treasurer of the hospital district for the
8-52 support of such patient a specified sum per week, in proportion to
8-53 their financial ability, but such sum shall not exceed the actual
8-54 per capita cost of maintenance. The district shall have power and
8-55 authority to collect such sum from the estate of the patient, or
8-56 the patient's [his] relatives legally liable for the patient's
8-57 [his] support, in the manner provided by law for the collection of
8-58 expenses of the last illness of a deceased person. If the agent
8-59 designated by the district to handle such affairs finds that such
8-60 patient or said relatives are not able to pay, either in whole or
8-61 in part, for the patient's [his] care and treatment in such
8-62 hospital, the same shall become a charge upon the hospital
8-63 district. Should there be a dispute as to the ability to pay, or
8-64 doubt in the mind of the person designated as aforesaid, the
8-65 district's directors shall hear and determine same, after calling
8-66 witnesses, and shall make such order as may be proper, from which
8-67 appeal shall lie to the district court by either party to the
8-68 dispute.
8-69 SECTION 15. Section 14A, Chapter 103, Acts of the 57th
9-1 Legislature, Regular Session, 1961, is amended to read as follows:
9-2 Sec. 14A. (a) This section applies only to the Ochiltree
9-3 County and Castro County hospital districts.
9-4 (b) The board of directors of the district [Ochiltree County
9-5 Hospital District] shall seek reimbursement, in the manner provided
9-6 by Chapter 61, Health and Safety Code, from a county, municipality,
9-7 or public hospital located outside the boundaries of the district
9-8 for the district's care for or treatment of a sick, diseased, or
9-9 injured person for whom that county, municipality, or public
9-10 hospital has an obligation to provide care. The board of directors
9-11 shall seek reimbursement under Article 104.002, Code of Criminal
9-12 Procedure, for the district's care for or treatment of a person who
9-13 is not a resident of the district and who is confined in a county
9-14 jail facility.
9-15 SECTION 16. Chapter 103, Acts of the 57th Legislature,
9-16 Regular Session, 1961, is amended by adding Sections 16A and 21 to
9-17 read as follows:
9-18 Sec. 16A. (a) This section applies only to the Castro
9-19 County Hospital District.
9-20 (b) The board of directors may borrow money at a rate not to
9-21 exceed the maximum annual percentage rate allowed by law for
9-22 district obligations at the time of the loan.
9-23 (c) To secure a loan, the board of directors may pledge:
9-24 (1) the revenues of the district that are not pledged
9-25 to pay bonded indebtedness of the district;
9-26 (2) taxes to be levied by the district in the next 12
9-27 months that are not pledged to pay the principal of or interest on
9-28 district bonds; or
9-29 (3) district bonds that have been authorized but not
9-30 sold.
9-31 (d) A loan for which taxes or bonds are pledged must mature
9-32 not later than the first anniversary of the date on which the loan
9-33 was made. A loan for which district revenues are pledged must
9-34 mature not later than the fifth anniversary of the date on which
9-35 the loan was made.
9-36 Sec. 21. (a) This section applies only to the Castro County
9-37 Hospital District.
9-38 (b) The district may be dissolved only if the dissolution is
9-39 approved by a majority of the voters of the district voting in an
9-40 election called and held for that purpose.
9-41 (c) The board of directors may order an election on the
9-42 question of dissolving the district and disposing of the district's
9-43 assets and obligations. The board shall order an election if the
9-44 board receives a petition requesting an election that is signed by
9-45 a number of residents of the district equal to at least 15 percent
9-46 of the registered voters in the district.
9-47 (d) The election shall be held not later than the 60th day
9-48 after the date the election is ordered. Section 41.001(a),
9-49 Election Code, does not apply to an election ordered under this
9-50 section. The order calling the election shall state:
9-51 (1) the nature of the election, including the
9-52 proposition that is to appear on the ballot;
9-53 (2) the date of the election;
9-54 (3) the hours during which the polls will be open; and
9-55 (4) the locations of the polling places.
9-56 (e) The board of directors shall give notice of the election
9-57 by publishing the election order in a newspaper with general
9-58 circulation in the district once a week for two consecutive weeks.
9-59 The first publication must appear not less than 35 days before the
9-60 date set for the election. The ballot for the election shall be
9-61 printed to permit voting for or against the proposition: "The
9-62 dissolution of the Castro County Hospital District."
9-63 (f) If a majority of the votes in the election favor
9-64 dissolution, the board of directors shall find that the district is
9-65 dissolved. If a majority of the votes in the election do not
9-66 favor dissolution, the board shall continue to administer the
9-67 district, and another election on the question of dissolution may
9-68 not be held before the first anniversary of the most recent
9-69 election to dissolve the district.
10-1 (g) If a majority of the votes in the election favor
10-2 dissolution, the board of directors shall:
10-3 (1) transfer the land, buildings, improvements,
10-4 equipment, and other assets that belong to the district to a county
10-5 or other governmental agency in the county in which the district is
10-6 located; or
10-7 (2) administer the property, assets, and debts until
10-8 all funds have been disposed of and all district debts have been
10-9 paid or settled.
10-10 (h) If the district transfers the land, buildings,
10-11 improvements, equipment, and other assets to a county or other
10-12 governmental agency, the county or agency assumes all debts and
10-13 obligations of the district at the time of the transfer, and the
10-14 district is dissolved.
10-15 (i) After the board of directors finds that the district is
10-16 dissolved, the board shall:
10-17 (1) determine the debt owed by the district; and
10-18 (2) impose on the property included in the district's
10-19 tax rolls a tax that is in proportion of the debt to the property
10-20 value.
10-21 (j) When all outstanding debts and obligations of the
10-22 district are paid, the board of directors shall order the secretary
10-23 to return the pro rata share of all unused tax money to each
10-24 district taxpayer.
10-25 (k) A taxpayer may request that the taxpayer's share of
10-26 surplus tax money be credited to the taxpayer's county taxes. If a
10-27 taxpayer requests the credit, the board of directors shall direct
10-28 the secretary to transmit the funds to the county tax
10-29 assessor-collector.
10-30 (l) After the district has paid all its debts and has
10-31 disposed of all its assets and funds as prescribed by this section,
10-32 the board of directors shall file a written report with the
10-33 commissioners court of Castro County setting forth a summary of the
10-34 board's actions in dissolving the district.
10-35 (m) Not later than the 10th day after the date it receives
10-36 the report and determines that the requirements of this section
10-37 have been fulfilled, the commissioners court of Castro County shall
10-38 enter an order dissolving the district and releasing the board of
10-39 directors of the district from any further duty or obligation.
10-40 (n) The district may not be dissolved unless the board of
10-41 directors provides for the sale or transfer of the district's
10-42 assets and liabilities to another person or entity. The
10-43 dissolution of the district and the sale or transfer of the
10-44 district's assets and liabilities may not contravene a trust
10-45 indenture or bond resolution relating to the outstanding bonds of
10-46 the district. The dissolution and sale or transfer does not
10-47 diminish or impair the rights of a holder of an outstanding bond,
10-48 warrant, or other obligation of the district.
10-49 (o) The sale or transfer of the district's assets and
10-50 liabilities must satisfy the debt and bond obligations of the
10-51 district in a manner that protects the interests of the residents
10-52 of the district, including the residents' collective property
10-53 rights in the district's assets. A grant from federal funds is an
10-54 obligation to be repaid in satisfaction. The district may not
10-55 transfer or dispose of the district's assets except for due
10-56 compensation unless the transfer is made to a governmental agency
10-57 that serves the district and the transferred assets are to be used
10-58 for the benefit of the residents of the district.
10-59 SECTION 17. The importance of this legislation and the
10-60 crowded condition of the calendars in both houses create an
10-61 emergency and an imperative public necessity that the
10-62 constitutional rule requiring bills to be read on three several
10-63 days in each house be suspended, and this rule is hereby suspended,
10-64 and that this Act take effect and be in force from and after its
10-65 passage, and it is so enacted.
10-66 * * * * *