By: Ratliff S.B. No. 1840
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the powers of the Hopkins County Hospital District.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 3, Chapter 43, Acts of the 57th
1-4 Legislature, 1st Called Session, 1961, is amended to read as
1-5 follows:
1-6 Sec. 3. The board of directors consists of seven (7)
1-7 directors who serve staggered three-year terms. A director shall
1-8 continue to serve until a successor has been duly elected or
1-9 appointed and qualified. No person shall be appointed or elected
1-10 as a member of the board of directors of said hospital district
1-11 unless he is a resident and a qualified voter thereof [and owns
1-12 land subject to taxation therein] and unless at the time of such
1-13 election or appointment he shall be more than twenty-one (21) years
1-14 of age. An employee of the Hopkins County Hospital District may
1-15 not serve as a director of that district. Each member of the board
1-16 of directors shall qualify by executing the constitutional oath of
1-17 office and shall execute a good and sufficient bond for One
1-18 Thousand Dollars ($1,000) payable to said district conditioned upon
1-19 the faithful performance of his duties, and such oaths and bonds
1-20 shall be deposited with the depository bank of the district for
1-21 safekeeping.
1-22 The board of directors shall elect a president, a vice
1-23 president, and a secretary. A majority of the full membership of
1-24 the board of directors shall constitute a quorum and a concurrence
2-1 of a majority shall be sufficient in all matters pertaining to the
2-2 business of the district. All vacancies in the office of director
2-3 shall be filled for the unexpired term by appointment of the
2-4 remainder of the board of directors. In the event the number of
2-5 directors shall be reduced to less than the number that constitutes
2-6 a majority for any reason, the remaining directors shall
2-7 immediately call a special election to fill said vacancies, and
2-8 upon failure to do so a district court may, upon application of any
2-9 voter or taxpayer of the district, issue a mandate requiring that
2-10 such election be ordered by the remaining directors.
2-11 A regular election of directors shall be held on the first
2-12 Saturday in May of each year and notice of such election shall be
2-13 published in a newspaper of general circulation in the county one
2-14 (1) time at least ten (10) days prior to the date of election. Any
2-15 person desiring his name to be printed on the ballot as a candidate
2-16 for director shall file an application with the secretary of the
2-17 board of directors of the district. Such application shall be
2-18 filed with such secretary at least forty-five (45) days prior to
2-19 the date of election.
2-20 SECTION 2. Section 5, Chapter 43, Acts of the 57th
2-21 Legislature, 1st Called Session, 1961, is amended to read as
2-22 follows:
2-23 Sec. 5. (a) Upon the creation of such hospital district,
2-24 the board of directors shall have the power and authority and it
2-25 shall be their duty to levy on all property subject to hospital
2-26 district taxation for the benefit of the district at the same time
3-1 taxes are levied for county purposes, using the county values and
3-2 the county tax roll, a tax of not to exceed twenty-five cents (25 )
3-3 on the One Hundred Dollar valuation of all taxable property within
3-4 the hospital district. The taxes may be used to pay the
3-5 indebtedness issued or assumed by the district and for the
3-6 maintenance and operation of the district. The Tax Code governs
3-7 the appraisal, assessment, and collection of district taxes. The
3-8 county tax assessor-collector is the tax assessor-collector for the
3-9 district.
3-10 The tax collections shall be deposited in the district
3-11 depository; and such funds shall be withdrawn only as provided
3-12 herein. All other income of the hospital district shall be
3-13 deposited in like manner with the district depository.
3-14 The board of directors shall have the authority to levy the
3-15 tax aforesaid for the entire year in which the said hospital
3-16 district is established for the purpose of securing funds to
3-17 initiate the operation of the hospital district, and to pay assumed
3-18 bonds.
3-19 (b) The Tax Code governs the appraisal, assessment, and
3-20 collection of district taxes. The board may provide for the
3-21 appointment of a tax assessor-collector for the district or may
3-22 contract for the assessment and collection of taxes as provided by
3-23 the Tax Code.
3-24 SECTION 3. Chapter 43, Acts of the 57th Legislature, 1st
3-25 Called Session, 1961, is amended by adding Section 6C to read as
3-26 follows:
4-1 Sec. 6C. The board has complete discretion to determine the
4-2 type, number, and location, either inside or outside the district,
4-3 of facilities required to establish and maintain an adequate
4-4 hospital system and ancillary health care system, and the type of
4-5 equipment necessary for hospital care and ancillary health care,
4-6 including domiciliary care and treatment of sick or injured
4-7 patients, geriatric services, outpatient clinics, rural health
4-8 clinics, convalescent home facilities, physician's offices, home
4-9 health services, durable medical equipment, long-term care, skilled
4-10 nursing care, intermediate nursing care, hospice care, ambulatory
4-11 surgery centers, urgent care facilities, operation of a mobile
4-12 emergency medical service, extended care facilities, assisted
4-13 living facilities, and any other facility or equipment the board
4-14 considers necessary for the delivery of hospital, medical, and
4-15 ancillary health care services. The board may acquire by lease,
4-16 purchase, or lease to purchase property, facilities, supplies, and
4-17 equipment for the district for use in the hospital system and
4-18 ancillary health care system and may mortgage or pledge the
4-19 property, facilities, supplies, or equipment acquired as security
4-20 for the payment of the purchase price. The board, on behalf of the
4-21 district, may lease, sell, or otherwise dispose of the district's
4-22 property, all or part of the hospital facilities, ancillary
4-23 facilities, other facilities, supplies, or equipment to a public or
4-24 private entity, but only to the extent necessary to maintain an
4-25 adequate hospital system for the residents of Hopkins County.
4-26 SECTION 4. Chapter 43, Acts of the 57th Legislature, 1st
5-1 Called Session, 1961, is amended by adding Section 6D to read as
5-2 follows:
5-3 Sec. 6D. (a) The district may issue revenue bonds to:
5-4 (1) purchase, construct, acquire, repair, or renovate
5-5 buildings or improvements for hospital purposes, including
5-6 necessary equipment and furnishings, and the hospital system;
5-7 (2) acquire sites to be used for hospital purposes; or
5-8 (3) acquire and operate a mobile emergency medical or
5-9 air ambulance service to assist the district in carrying out its
5-10 hospital purpose.
5-11 (b) The bonds may be secured by a mortgage or deed of trust
5-12 lien on all or part of district property. The district may not
5-13 impose taxes to pay the principal of or interest on revenue bonds.
5-14 (c) The bonds must be issued in the manner provided by
5-15 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
5-16 Health and Safety Code, for issuance of revenue bonds by county
5-17 hospital authorities.
5-18 (d) Because the district is a public entity performing an
5-19 essential public function, bonds issued by the district,
5-20 transactions relating to the bonds, and profits made in the sale of
5-21 the bonds are free from taxation by the state or any city, county,
5-22 special district, or other political subdivision of the state.
5-23 SECTION 5. Chapter 43, Acts of the 57th Legislature, 1st
5-24 Called Session, 1961, is amended by adding Section 7A to read as
5-25 follows:
5-26 Sec. 7A. (a) The board, on behalf of the district, may
6-1 enter into a joint ownership arrangement with one or more public or
6-2 private entities for the:
6-3 (1) provision of management or operating services; and
6-4 (2) ownership of all or part of real property,
6-5 facilities, equipment, or supplies.
6-6 (b) The board must determine the arrangement is in the
6-7 district's best interest and is for a public purpose of the
6-8 district before the board enters into an arrangement under this
6-9 section.
6-10 SECTION 6. Chapter 43, Acts of the 57th Legislature, 1st
6-11 Called Session, 1961, is amended by adding Section 8B to read as
6-12 follows:
6-13 Sec. 8B. (a) If the hospital board of directors declares
6-14 that funds are not currently available to meet lawfully authorized
6-15 obligations of the district, the board may, by majority vote,
6-16 borrow money to satisfy those obligations in an amount not to
6-17 exceed, at any one time in the aggregate, 10 percent of the annual
6-18 operational expenses of the district for the prior fiscal year and,
6-19 in addition, the board may, by unanimous vote, borrow money to
6-20 satisfy obligations that exceed 10 percent of annual operating
6-21 expenses of the district for the prior fiscal year.
6-22 (b) To secure a loan, the board may pledge:
6-23 (1) revenues of the district that are not pledged to
6-24 pay bonded indebtedness of the district; or
6-25 (2) district taxes to be levied by the district in the
6-26 next 12-month period that are not pledged to pay the principal of
7-1 or interest on district bonds.
7-2 (c) A loan for which taxes are pledged must mature and be
7-3 paid not later than the first anniversary of the date on which the
7-4 loan is made.
7-5 (d) The board may not spend money obtained from a loan under
7-6 this section for any purpose other than the purpose declared by the
7-7 board and, if taxes are pledged to pay the loan, for any purpose
7-8 other than the purposes for which the pledged taxes were levied.
7-9 SECTION 7. Section 14, Chapter 43, Acts of the 57th
7-10 Legislature, 1st Called Session, 1961, is amended to read as
7-11 follows:
7-12 Sec. 14. (a) The district shall, without charge, supply to
7-13 a patient residing in the district the care and treatment that the
7-14 patient or a relative of the patient who is legally responsible for
7-15 the patient's support cannot pay.
7-16 (b) Not later than the beginning of each operating year, the
7-17 district shall adopt an application procedure to determine
7-18 eligibility for assistance, as provided by Section 61.053, Health
7-19 and Safety Code.
7-20 (c) Whenever a patient has been admitted to the facilities
7-21 of the hospital district, the directors shall cause inquiry to be
7-22 made as to his circumstances, and of the relatives of such patient
7-23 legally liable for his support.
7-24 (d) If he finds that such patient or said relatives are
7-25 liable to pay for his care and treatment in whole or in part, an
7-26 order shall be made directing such patient, or said relatives, to
8-1 pay to the treasurer of the hospital district for the support of
8-2 such patient a specified sum per week, in proportion to their
8-3 financial ability, but such sum shall not exceed the actual per
8-4 capita cost of maintenance.
8-5 (e) The district shall have power and authority to collect
8-6 such sum from the estate of the patient, or his relatives legally
8-7 liable for his support, in the manner provided by law for the
8-8 collection of expenses of the last illness of a deceased person.
8-9 (f) [If the agent designated by the district to handle such
8-10 affairs finds that such patient or said relatives are not able to
8-11 pay, either in whole or in part, for his care and treatment in such
8-12 hospital, the same shall become a charge upon the hospital
8-13 district.] Should there be a dispute as to the ability to pay, or
8-14 doubt in the mind of the person designated as aforesaid, the
8-15 district's directors shall hear and determine same, after calling
8-16 witnesses, and shall make such order as may be proper, from which
8-17 appeal shall lie to the district court by either party to the
8-18 dispute.
8-19 SECTION 8. Chapter 43, Acts of the 57th Legislature, 1st
8-20 Called Session, 1961, is amended by adding Section 21 to read as
8-21 follows:
8-22 Sec. 21. (a) The district may be dissolved and its assets
8-23 and liabilities sold or transferred to another entity or person
8-24 only if the dissolution and transfer are approved by a majority of
8-25 the qualified voters of the territory of the district voting at an
8-26 election called and held for that purpose.
9-1 (b) A majority of the directors may order an election to be
9-2 held on the question of dissolution of the district and the
9-3 transfer of its assets and liabilities.
9-4 (c) On presentation of a petition for a dissolution election
9-5 signed by at least 500 of the registered voters of the territory of
9-6 the district, according to the most recent official list of
9-7 registered voters, the directors shall order an election to be held
9-8 on the question of dissolution of the district and transfer of its
9-9 assets. The election shall be called not later than the 60th day
9-10 after the date the petition is presented to the district.
9-11 (d) The order calling the election must state:
9-12 (1) the nature of the election, including the
9-13 proposition that is to appear on the ballot;
9-14 (2) the date of the election;
9-15 (3) the hours during which the polls will be open; and
9-16 (4) the location of the polling places.
9-17 (e) The directors shall give notice of the election by
9-18 publishing a substantial copy of the election order in a newspaper
9-19 with general circulation in the district once a week for two
9-20 consecutive weeks. The first publication must appear at least 35
9-21 days before the date set for election.
9-22 (f) The election shall be held not less than 45 days after
9-23 the date on which the election is ordered.
9-24 (g) Section 41.001(a), Election Code, does not apply to an
9-25 election ordered under this section.
9-26 (h) The ballot for an election at which the dissolution of
10-1 the district is proposed shall be printed to permit voting for or
10-2 against the proposition: "The dissolution of the Hopkins County
10-3 Hospital District and the transfer of its assets and liabilities in
10-4 the following manner: ________________________ (insert provisions
10-5 for transfer)."
10-6 (i) The directors shall canvass the returns of the election.
10-7 (j) If the directors find that the election results are
10-8 favorable to the proposition to dissolve the district and transfer
10-9 its assets and liabilities, they shall issue an order declaring the
10-10 district dissolved and shall proceed with the sale or transfer of
10-11 its assets and liabilities according to the plan proposed on the
10-12 ballot.
10-13 (k) If the directors find that the election results are not
10-14 favorable to the proposition to dissolve the district and transfer
10-15 its assets and liabilities, another dissolution election may not be
10-16 held before the first anniversary of the date of the election at
10-17 which voters disapproved the proposition.
10-18 (l) Notwithstanding any other provision of this section, the
10-19 district may not be dissolved unless the board provides for the
10-20 sale or transfer of the district's assets and liabilities to
10-21 another entity or person. The dissolution of the district and the
10-22 sale or transfer of the district's assets and liabilities may not
10-23 contravene a trust indenture or bond resolution relating to the
10-24 outstanding bonds of the district. In addition, the dissolution
10-25 and sale or transfer may not diminish or impair the rights of the
10-26 holders of any outstanding bonds, warrants, or other obligations of
11-1 the district.
11-2 (m) The sale or transfer of the district's assets and
11-3 liabilities must satisfy the debt and bond obligations of the
11-4 district in a manner that protects the interests of the residents
11-5 of the district, including their collective property rights in the
11-6 district's assets. Any grant from federal funds is considered an
11-7 obligation to be repaid in satisfaction. The district may not
11-8 transfer or dispose of the district's assets except for due
11-9 compensation unless the transfer is made to another governmental
11-10 agency embracing the district and using the transferred assets for
11-11 the benefit of residents formerly in the district.
11-12 SECTION 9. This Act takes effect September 1, 1999.
11-13 SECTION 10. The importance of this legislation and the
11-14 crowded condition of the calendars in both houses create an
11-15 emergency and an imperative public necessity that the
11-16 constitutional rule requiring bills to be read on three several
11-17 days in each house be suspended, and this rule is hereby suspended.
11-18 COMMITTEE AMENDMENT NO. 1
11-19 Amend S.B. No. 1840 in SECTION 8 of the bill, in added
11-20 Subsection (c), Section 21, Chapter 43, Acts of the 57th
11-21 Legislature, 1st Called Session, 1961 (senate engrossment, page 9,
11-22 line 5), by striking "at least 500 of the registered voters of the
11-23 territory of" and substituting "a number of registered voters of
11-24 the district equal to at least 15 percent of the registered voters
11-25 residing in".
11-26 76R14841 CMR-D Farabee