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                                 * * * * *