By Ratliff                                            S.B. No. 1840
         76R10692 CMR-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the powers of the Hopkins County Hospital District.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 3, Chapter 43, Acts of the 57th
 1-5     Legislature, 1st Called Session, 1961, is amended to read as
 1-6     follows:
 1-7           Sec. 3.  The board of directors consists of seven (7)
 1-8     directors who serve staggered three-year terms.  A director shall
 1-9     continue to serve until a successor has been duly elected or
1-10     appointed and qualified.  No person shall be appointed or elected
1-11     as a member of the board of directors of said hospital district
1-12     unless he is a resident and a qualified voter thereof [and owns
1-13     land subject to taxation therein] and unless at the time of such
1-14     election or appointment he shall be more than twenty-one (21) years
1-15     of age. An employee of the Hopkins County  Hospital District may
1-16     not serve as a director of that district.  Each member of the board
1-17     of directors shall qualify by executing the constitutional oath of
1-18     office and shall execute a good and sufficient bond for One
1-19     Thousand Dollars ($1,000) payable to said district conditioned upon
1-20     the faithful performance of his duties, and such oaths and bonds
1-21     shall be deposited with the depository bank of the district for
1-22     safekeeping.
1-23           The board of directors shall elect a president, a vice
1-24     president, and a secretary.  A majority of the full membership of
 2-1     the board of directors shall constitute a quorum and a concurrence
 2-2     of a majority shall be sufficient in all matters pertaining to the
 2-3     business of the district.  All vacancies in the office of director
 2-4     shall be filled for the unexpired term by appointment of the
 2-5     remainder of the board of directors. In the event the number of
 2-6     directors shall be reduced to less than the number that constitutes
 2-7     a majority for any reason, the remaining directors shall
 2-8     immediately call a special election to fill said vacancies, and
 2-9     upon failure to do so a district court may, upon application of any
2-10     voter or taxpayer of the district, issue a mandate requiring that
2-11     such election be ordered by the remaining directors.
2-12           A regular election of directors shall be held on the first
2-13     Saturday in May of each year and notice of such election shall be
2-14     published in a newspaper of general circulation in the county one
2-15     (1) time at least ten (10) days prior to the date of election.  Any
2-16     person desiring his name to be printed on the ballot as a candidate
2-17     for director shall file an application with the secretary of the
2-18     board of directors of the district.  Such application shall be
2-19     filed with such secretary at least forty-five (45) days prior to
2-20     the date of election.
2-21           SECTION 2.  Section 5, Chapter 43, Acts of the 57th
2-22     Legislature, 1st Called Session, 1961, is amended to read as
2-23     follows:
2-24           Sec. 5.  (a)  Upon the creation of such hospital district,
2-25     the board of directors shall have the power and authority and it
2-26     shall be their duty to levy on all property subject to hospital
2-27     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:
3-27           Sec. 6C.  The board has complete discretion to determine the
 4-1     type, number, and location, either inside or outside the district,
 4-2     of facilities required to establish and maintain an adequate
 4-3     hospital system and ancillary health care system, and the type of
 4-4     equipment necessary for hospital care and ancillary health care,
 4-5     including domiciliary care and treatment of sick or injured
 4-6     patients, geriatric services, outpatient clinics, rural health
 4-7     clinics, convalescent home facilities, physician's offices, home
 4-8     health services, durable medical equipment, long-term care, skilled
 4-9     nursing care, intermediate nursing care, hospice care, ambulatory
4-10     surgery centers, urgent care facilities, operation of a mobile
4-11     emergency medical service, extended care facilities, assisted
4-12     living facilities, and any other facility or equipment the board
4-13     considers necessary for the delivery of hospital, medical, and
4-14     ancillary health care services.  The board may acquire by lease,
4-15     purchase, or lease to purchase property, facilities, supplies,  and
4-16     equipment for the district for use in the hospital system and
4-17     ancillary health care system and may mortgage or pledge the
4-18     property, facilities, supplies, or equipment acquired as security
4-19     for the payment of the purchase price.  The board, on behalf of the
4-20     district, may lease, sell, or otherwise dispose of the district's
4-21     property, all or part of the hospital facilities, ancillary
4-22     facilities, other facilities, supplies, or equipment to a public or
4-23     private entity, but only to the extent necessary to maintain an
4-24     adequate hospital system for the residents of Hopkins County.
4-25           SECTION 4.  Chapter 43, Acts of the 57th Legislature, 1st
4-26     Called Session, 1961, is amended by adding Section 6D to read as
4-27     follows:
 5-1           Sec. 6D.  (a)  The district may issue revenue bonds to:
 5-2                 (1)  purchase, construct, acquire, repair, or renovate
 5-3     buildings or improvements for hospital purposes, including
 5-4     necessary equipment and furnishings, and the hospital system;
 5-5                 (2)  acquire sites to be used for hospital purposes; or
 5-6                 (3)  acquire and operate a mobile emergency medical or
 5-7     air ambulance service to assist the district in carrying out its
 5-8     hospital purpose.
 5-9           (b)  The bonds may be secured by a mortgage or deed of trust
5-10     lien on all or part of district property.  The district may not
5-11     impose taxes to pay the principal of or interest on revenue bonds.
5-12           (c)  The bonds must be issued in the manner provided by
5-13     Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
5-14     Health and Safety Code, for issuance of revenue bonds by county
5-15     hospital authorities.
5-16           (d)  Because the district is a public entity performing an
5-17     essential public function, bonds issued by the district,
5-18     transactions relating to the bonds, and profits made in the sale of
5-19     the bonds are free from taxation by the state or any city, county,
5-20     special district, or other political subdivision of the state.
5-21           SECTION 5.  Chapter 43, Acts of the 57th Legislature, 1st
5-22     Called Session, 1961, is amended by adding Section 7A to read as
5-23     follows:
5-24           Sec. 7A.  (a)  The board, on behalf of the district, may
5-25     enter into a joint ownership arrangement with one or more public or
5-26     private entities for the:
5-27                 (1)  provision of management or operating services; and
 6-1                 (2)  ownership of all or part of real property,
 6-2     facilities, equipment, or supplies.
 6-3           (b)  The board must determine the arrangement is in the
 6-4     district's best interest and is for a public purpose of the
 6-5     district before the board enters into an arrangement under this
 6-6     section.
 6-7           SECTION 6.  Chapter 43, Acts of the 57th Legislature, 1st
 6-8     Called Session, 1961, is amended by adding Section 8B to read as
 6-9     follows:
6-10           Sec. 8B.  (a)  If the hospital board of directors declares
6-11     that funds are not currently available to meet lawfully authorized
6-12     obligations of the district, the board may, by majority vote,
6-13     borrow money to satisfy those obligations in an amount not to
6-14     exceed, at any one time in the aggregate, 10 percent of the annual
6-15     operational expenses of the district for the prior fiscal year and,
6-16     in addition, the board may, by unanimous vote, borrow money to
6-17     satisfy obligations that exceed 10 percent of annual operating
6-18     expenses of the district for the prior fiscal year.
6-19           (b)  To secure a loan, the board may pledge:
6-20                 (1)  revenues of the district that are not pledged to
6-21     pay bonded indebtedness of the district; or
6-22                 (2)  district taxes to be levied by the district in the
6-23     next 12-month period that are not pledged to pay the principal of
6-24     or interest on district bonds.
6-25           (c)  A loan for which taxes are pledged must mature and be
6-26     paid not later than the first anniversary of the date on which the
6-27     loan is made.
 7-1           (d)  The board may not spend money obtained from a loan under
 7-2     this section for any purpose other than the purpose declared by the
 7-3     board and, if taxes are pledged to pay the loan, for any purpose
 7-4     other than the purposes for which the pledged taxes were levied.
 7-5           SECTION 7.  Section 14, Chapter 43, Acts of the 57th
 7-6     Legislature, 1st Called Session, 1961, is amended to read as
 7-7     follows:
 7-8           Sec. 14.  (a)  The district shall, without charge, supply to
 7-9     a patient residing in the district the care and treatment that the
7-10     patient or a relative of the patient who is legally responsible for
7-11     the patient's support cannot pay.
7-12           (b)  Not later than the beginning of each operating year, the
7-13     district shall adopt an application procedure to determine
7-14     eligibility for assistance, as provided by Section 61.053, Health
7-15     and Safety Code.
7-16           (c)  Whenever a patient has been admitted to the facilities
7-17     of the hospital district, the directors shall cause inquiry to be
7-18     made as to his circumstances, and of the relatives of such patient
7-19     legally liable for his support.
7-20           (d)  If he finds that such patient or said relatives are
7-21     liable to pay for his care and treatment in whole or in part, an
7-22     order shall be made directing such patient, or said relatives, to
7-23     pay to the treasurer of the hospital district for the support of
7-24     such patient a specified sum per week, in proportion to their
7-25     financial ability, but such sum shall not exceed the actual per
7-26     capita cost of maintenance.
7-27           (e)  The district shall have power and authority to collect
 8-1     such sum from the estate of the patient, or his relatives legally
 8-2     liable for his support, in the manner provided by law for the
 8-3     collection of expenses of the last illness of a deceased person.
 8-4           (f)  [If the agent designated by the district to handle such
 8-5     affairs finds that such patient or said relatives are not able to
 8-6     pay, either in whole or in part, for his care and  treatment in
 8-7     such hospital, the same shall become a charge upon the hospital
 8-8     district.] Should there be a dispute as to the ability to pay, or
 8-9     doubt in the mind of the person designated as aforesaid, the
8-10     district's directors shall hear and determine same, after calling
8-11     witnesses, and shall make such order as may be proper, from which
8-12     appeal shall lie to the district court by either party to the
8-13     dispute.
8-14           SECTION 8.  Chapter 43, Acts of the 57th Legislature, 1st
8-15     Called Session, 1961, is amended by adding Section 21 to read as
8-16     follows:
8-17           Sec. 21.  (a)  The district may be dissolved and its assets
8-18     and liabilities sold or transferred to another entity or person
8-19     only if the dissolution and transfer are approved by a majority of
8-20     the qualified voters of the territory of the district voting at an
8-21     election called and held for that purpose.
8-22           (b)  A majority of the directors may order an election to be
8-23     held on the question of dissolution of the district and the
8-24     transfer of its assets and liabilities.
8-25           (c)  On presentation of a petition for a dissolution election
8-26     signed by at least 500 of the registered voters of the territory of
8-27     the district, according to the most recent official list of
 9-1     registered voters, the directors shall order an election to be held
 9-2     on the question of dissolution of the district and transfer of its
 9-3     assets.  The election shall be called not later than the 60th day
 9-4     after the date the petition is presented to the district.
 9-5           (d)  The order calling the election must state:
 9-6                 (1)  the nature of the election, including the
 9-7     proposition that is to appear on the ballot;
 9-8                 (2)  the date of the election;
 9-9                 (3)  the hours during which the polls will be open; and
9-10                 (4)  the location of the polling places.
9-11           (e)  The directors shall give notice of the election by
9-12     publishing a substantial copy of the election order in a newspaper
9-13     with general circulation in the district once a week for two
9-14     consecutive weeks.  The first publication must appear at least 35
9-15     days before the date set for election.
9-16           (f)  The election shall be held not less than 45 days after
9-17     the date on which the election is ordered.
9-18           (g)  Section 41.001(a), Election Code, does not apply to an
9-19     election ordered under this section.
9-20           (h)  The ballot for an election at which the dissolution of
9-21     the district is proposed shall be printed to permit voting for or
9-22     against the proposition:  "The dissolution of the Hopkins County
9-23     Hospital District and the transfer of its assets and liabilities in
9-24     the following manner: ________________________ (insert provisions
9-25     for transfer)."
9-26           (i)  The directors shall canvass the returns of the election.
9-27           (j)  If the directors find that the election results are
 10-1    favorable to the proposition to dissolve the district and transfer
 10-2    its assets and liabilities, they shall issue an order declaring the
 10-3    district dissolved and shall proceed with the sale or transfer of
 10-4    its assets and liabilities according to the plan proposed on the
 10-5    ballot.
 10-6          (k)  If the directors find that the election results are not
 10-7    favorable to the proposition to dissolve the district and transfer
 10-8    its assets and liabilities, another dissolution election may not be
 10-9    held before the first anniversary of the date of the election at
10-10    which voters disapproved the proposition.
10-11          (l)  Notwithstanding any other provision of this section, the
10-12    district may not be dissolved unless the board provides for the
10-13    sale or transfer of the district's assets and liabilities to
10-14    another entity or person.  The dissolution of the district and the
10-15    sale or transfer of the district's assets and liabilities may not
10-16    contravene a trust indenture or bond resolution relating to the
10-17    outstanding bonds of the district.  In addition, the dissolution
10-18    and sale or transfer may not diminish or impair the rights of the
10-19    holders of any outstanding bonds, warrants, or other obligations of
10-20    the district.
10-21          (m)  The sale or transfer of the district's assets and
10-22    liabilities must satisfy the debt and bond obligations of the
10-23    district in a manner that protects the interests of the residents
10-24    of the district, including their collective property rights in the
10-25    district's assets.  Any grant from federal funds is considered an
10-26    obligation to be repaid in satisfaction.  The district may not
10-27    transfer or dispose of the district's assets except for due
 11-1    compensation unless the transfer is made to another governmental
 11-2    agency embracing the district and using the transferred assets for
 11-3    the benefit of residents formerly in the district.
 11-4          SECTION 9.  This Act takes effect September 1, 1999.
 11-5          SECTION 10.  The importance of this legislation and the
 11-6    crowded condition of the calendars in both houses create an
 11-7    emergency and an imperative public necessity that the
 11-8    constitutional rule requiring bills to be read on three several
 11-9    days in each house be suspended, and this rule is hereby suspended.