1-1 By: Ratliff S.B. No. 1840
1-2 (In the Senate - Filed March 26, 1999; March 29, 1999, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 15, 1999, reported favorably by the following
1-5 vote: Yeas 5, Nays 0; April 15, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the powers of the Hopkins County Hospital District.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 3, Chapter 43, Acts of the 57th
1-11 Legislature, 1st Called Session, 1961, is amended to read as
1-12 follows:
1-13 Sec. 3. The board of directors consists of seven (7)
1-14 directors who serve staggered three-year terms. A director shall
1-15 continue to serve until a successor has been duly elected or
1-16 appointed and qualified. No person shall be appointed or elected
1-17 as a member of the board of directors of said hospital district
1-18 unless he is a resident and a qualified voter thereof [and owns
1-19 land subject to taxation therein] and unless at the time of such
1-20 election or appointment he shall be more than twenty-one (21) years
1-21 of age. An employee of the Hopkins County Hospital District may
1-22 not serve as a director of that district. Each member of the board
1-23 of directors shall qualify by executing the constitutional oath of
1-24 office and shall execute a good and sufficient bond for One
1-25 Thousand Dollars ($1,000) payable to said district conditioned upon
1-26 the faithful performance of his duties, and such oaths and bonds
1-27 shall be deposited with the depository bank of the district for
1-28 safekeeping.
1-29 The board of directors shall elect a president, a vice
1-30 president, and a secretary. A majority of the full membership of
1-31 the board of directors shall constitute a quorum and a concurrence
1-32 of a majority shall be sufficient in all matters pertaining to the
1-33 business of the district. All vacancies in the office of director
1-34 shall be filled for the unexpired term by appointment of the
1-35 remainder of the board of directors. In the event the number of
1-36 directors shall be reduced to less than the number that constitutes
1-37 a majority for any reason, the remaining directors shall
1-38 immediately call a special election to fill said vacancies, and
1-39 upon failure to do so a district court may, upon application of any
1-40 voter or taxpayer of the district, issue a mandate requiring that
1-41 such election be ordered by the remaining directors.
1-42 A regular election of directors shall be held on the first
1-43 Saturday in May of each year and notice of such election shall be
1-44 published in a newspaper of general circulation in the county one
1-45 (1) time at least ten (10) days prior to the date of election. Any
1-46 person desiring his name to be printed on the ballot as a candidate
1-47 for director shall file an application with the secretary of the
1-48 board of directors of the district. Such application shall be
1-49 filed with such secretary at least forty-five (45) days prior to
1-50 the date of election.
1-51 SECTION 2. Section 5, Chapter 43, Acts of the 57th
1-52 Legislature, 1st Called Session, 1961, is amended to read as
1-53 follows:
1-54 Sec. 5. (a) Upon the creation of such hospital district,
1-55 the board of directors shall have the power and authority and it
1-56 shall be their duty to levy on all property subject to hospital
1-57 district taxation for the benefit of the district at the same time
1-58 taxes are levied for county purposes, using the county values and
1-59 the county tax roll, a tax of not to exceed twenty-five cents (25 )
1-60 on the One Hundred Dollar valuation of all taxable property within
1-61 the hospital district. The taxes may be used to pay the
1-62 indebtedness issued or assumed by the district and for the
1-63 maintenance and operation of the district. The Tax Code governs
1-64 the appraisal, assessment, and collection of district taxes. The
2-1 county tax assessor-collector is the tax assessor-collector for the
2-2 district.
2-3 The tax collections shall be deposited in the district
2-4 depository; and such funds shall be withdrawn only as provided
2-5 herein. All other income of the hospital district shall be
2-6 deposited in like manner with the district depository.
2-7 The board of directors shall have the authority to levy the
2-8 tax aforesaid for the entire year in which the said hospital
2-9 district is established for the purpose of securing funds to
2-10 initiate the operation of the hospital district, and to pay assumed
2-11 bonds.
2-12 (b) The Tax Code governs the appraisal, assessment, and
2-13 collection of district taxes. The board may provide for the
2-14 appointment of a tax assessor-collector for the district or may
2-15 contract for the assessment and collection of taxes as provided by
2-16 the Tax Code.
2-17 SECTION 3. Chapter 43, Acts of the 57th Legislature, 1st
2-18 Called Session, 1961, is amended by adding Section 6C to read as
2-19 follows:
2-20 Sec. 6C. The board has complete discretion to determine the
2-21 type, number, and location, either inside or outside the district,
2-22 of facilities required to establish and maintain an adequate
2-23 hospital system and ancillary health care system, and the type of
2-24 equipment necessary for hospital care and ancillary health care,
2-25 including domiciliary care and treatment of sick or injured
2-26 patients, geriatric services, outpatient clinics, rural health
2-27 clinics, convalescent home facilities, physician's offices, home
2-28 health services, durable medical equipment, long-term care, skilled
2-29 nursing care, intermediate nursing care, hospice care, ambulatory
2-30 surgery centers, urgent care facilities, operation of a mobile
2-31 emergency medical service, extended care facilities, assisted
2-32 living facilities, and any other facility or equipment the board
2-33 considers necessary for the delivery of hospital, medical, and
2-34 ancillary health care services. The board may acquire by lease,
2-35 purchase, or lease to purchase property, facilities, supplies, and
2-36 equipment for the district for use in the hospital system and
2-37 ancillary health care system and may mortgage or pledge the
2-38 property, facilities, supplies, or equipment acquired as security
2-39 for the payment of the purchase price. The board, on behalf of the
2-40 district, may lease, sell, or otherwise dispose of the district's
2-41 property, all or part of the hospital facilities, ancillary
2-42 facilities, other facilities, supplies, or equipment to a public or
2-43 private entity, but only to the extent necessary to maintain an
2-44 adequate hospital system for the residents of Hopkins County.
2-45 SECTION 4. Chapter 43, Acts of the 57th Legislature, 1st
2-46 Called Session, 1961, is amended by adding Section 6D to read as
2-47 follows:
2-48 Sec. 6D. (a) The district may issue revenue bonds to:
2-49 (1) purchase, construct, acquire, repair, or renovate
2-50 buildings or improvements for hospital purposes, including
2-51 necessary equipment and furnishings, and the hospital system;
2-52 (2) acquire sites to be used for hospital purposes; or
2-53 (3) acquire and operate a mobile emergency medical or
2-54 air ambulance service to assist the district in carrying out its
2-55 hospital purpose.
2-56 (b) The bonds may be secured by a mortgage or deed of trust
2-57 lien on all or part of district property. The district may not
2-58 impose taxes to pay the principal of or interest on revenue bonds.
2-59 (c) The bonds must be issued in the manner provided by
2-60 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
2-61 Health and Safety Code, for issuance of revenue bonds by county
2-62 hospital authorities.
2-63 (d) Because the district is a public entity performing an
2-64 essential public function, bonds issued by the district,
2-65 transactions relating to the bonds, and profits made in the sale of
2-66 the bonds are free from taxation by the state or any city, county,
2-67 special district, or other political subdivision of the state.
2-68 SECTION 5. Chapter 43, Acts of the 57th Legislature, 1st
2-69 Called Session, 1961, is amended by adding Section 7A to read as
3-1 follows:
3-2 Sec. 7A. (a) The board, on behalf of the district, may
3-3 enter into a joint ownership arrangement with one or more public or
3-4 private entities for the:
3-5 (1) provision of management or operating services; and
3-6 (2) ownership of all or part of real property,
3-7 facilities, equipment, or supplies.
3-8 (b) The board must determine the arrangement is in the
3-9 district's best interest and is for a public purpose of the
3-10 district before the board enters into an arrangement under this
3-11 section.
3-12 SECTION 6. Chapter 43, Acts of the 57th Legislature, 1st
3-13 Called Session, 1961, is amended by adding Section 8B to read as
3-14 follows:
3-15 Sec. 8B. (a) If the hospital board of directors declares
3-16 that funds are not currently available to meet lawfully authorized
3-17 obligations of the district, the board may, by majority vote,
3-18 borrow money to satisfy those obligations in an amount not to
3-19 exceed, at any one time in the aggregate, 10 percent of the annual
3-20 operational expenses of the district for the prior fiscal year and,
3-21 in addition, the board may, by unanimous vote, borrow money to
3-22 satisfy obligations that exceed 10 percent of annual operating
3-23 expenses of the district for the prior fiscal year.
3-24 (b) To secure a loan, the board may pledge:
3-25 (1) revenues of the district that are not pledged to
3-26 pay bonded indebtedness of the district; or
3-27 (2) district taxes to be levied by the district in the
3-28 next 12-month period that are not pledged to pay the principal of
3-29 or interest on district bonds.
3-30 (c) A loan for which taxes are pledged must mature and be
3-31 paid not later than the first anniversary of the date on which the
3-32 loan is made.
3-33 (d) The board may not spend money obtained from a loan under
3-34 this section for any purpose other than the purpose declared by the
3-35 board and, if taxes are pledged to pay the loan, for any purpose
3-36 other than the purposes for which the pledged taxes were levied.
3-37 SECTION 7. Section 14, Chapter 43, Acts of the 57th
3-38 Legislature, 1st Called Session, 1961, is amended to read as
3-39 follows:
3-40 Sec. 14. (a) The district shall, without charge, supply to
3-41 a patient residing in the district the care and treatment that the
3-42 patient or a relative of the patient who is legally responsible for
3-43 the patient's support cannot pay.
3-44 (b) Not later than the beginning of each operating year, the
3-45 district shall adopt an application procedure to determine
3-46 eligibility for assistance, as provided by Section 61.053, Health
3-47 and Safety Code.
3-48 (c) Whenever a patient has been admitted to the facilities
3-49 of the hospital district, the directors shall cause inquiry to be
3-50 made as to his circumstances, and of the relatives of such patient
3-51 legally liable for his support.
3-52 (d) If he finds that such patient or said relatives are
3-53 liable to pay for his care and treatment in whole or in part, an
3-54 order shall be made directing such patient, or said relatives, to
3-55 pay to the treasurer of the hospital district for the support of
3-56 such patient a specified sum per week, in proportion to their
3-57 financial ability, but such sum shall not exceed the actual per
3-58 capita cost of maintenance.
3-59 (e) The district shall have power and authority to collect
3-60 such sum from the estate of the patient, or his relatives legally
3-61 liable for his support, in the manner provided by law for the
3-62 collection of expenses of the last illness of a deceased person.
3-63 (f) [If the agent designated by the district to handle such
3-64 affairs finds that such patient or said relatives are not able to
3-65 pay, either in whole or in part, for his care and treatment in such
3-66 hospital, the same shall become a charge upon the hospital
3-67 district.] Should there be a dispute as to the ability to pay, or
3-68 doubt in the mind of the person designated as aforesaid, the
3-69 district's directors shall hear and determine same, after calling
4-1 witnesses, and shall make such order as may be proper, from which
4-2 appeal shall lie to the district court by either party to the
4-3 dispute.
4-4 SECTION 8. Chapter 43, Acts of the 57th Legislature, 1st
4-5 Called Session, 1961, is amended by adding Section 21 to read as
4-6 follows:
4-7 Sec. 21. (a) The district may be dissolved and its assets
4-8 and liabilities sold or transferred to another entity or person
4-9 only if the dissolution and transfer are approved by a majority of
4-10 the qualified voters of the territory of the district voting at an
4-11 election called and held for that purpose.
4-12 (b) A majority of the directors may order an election to be
4-13 held on the question of dissolution of the district and the
4-14 transfer of its assets and liabilities.
4-15 (c) On presentation of a petition for a dissolution election
4-16 signed by at least 500 of the registered voters of the territory of
4-17 the district, according to the most recent official list of
4-18 registered voters, the directors shall order an election to be held
4-19 on the question of dissolution of the district and transfer of its
4-20 assets. The election shall be called not later than the 60th day
4-21 after the date the petition is presented to the district.
4-22 (d) The order calling the election must state:
4-23 (1) the nature of the election, including the
4-24 proposition that is to appear on the ballot;
4-25 (2) the date of the election;
4-26 (3) the hours during which the polls will be open; and
4-27 (4) the location of the polling places.
4-28 (e) The directors shall give notice of the election by
4-29 publishing a substantial copy of the election order in a newspaper
4-30 with general circulation in the district once a week for two
4-31 consecutive weeks. The first publication must appear at least 35
4-32 days before the date set for election.
4-33 (f) The election shall be held not less than 45 days after
4-34 the date on which the election is ordered.
4-35 (g) Section 41.001(a), Election Code, does not apply to an
4-36 election ordered under this section.
4-37 (h) The ballot for an election at which the dissolution of
4-38 the district is proposed shall be printed to permit voting for or
4-39 against the proposition: "The dissolution of the Hopkins County
4-40 Hospital District and the transfer of its assets and liabilities in
4-41 the following manner: ________________________ (insert provisions
4-42 for transfer)."
4-43 (i) The directors shall canvass the returns of the election.
4-44 (j) If the directors find that the election results are
4-45 favorable to the proposition to dissolve the district and transfer
4-46 its assets and liabilities, they shall issue an order declaring the
4-47 district dissolved and shall proceed with the sale or transfer of
4-48 its assets and liabilities according to the plan proposed on the
4-49 ballot.
4-50 (k) If the directors find that the election results are not
4-51 favorable to the proposition to dissolve the district and transfer
4-52 its assets and liabilities, another dissolution election may not be
4-53 held before the first anniversary of the date of the election at
4-54 which voters disapproved the proposition.
4-55 (l) Notwithstanding any other provision of this section, the
4-56 district may not be dissolved unless the board provides for the
4-57 sale or transfer of the district's assets and liabilities to
4-58 another entity or person. The dissolution of the district and the
4-59 sale or transfer of the district's assets and liabilities may not
4-60 contravene a trust indenture or bond resolution relating to the
4-61 outstanding bonds of the district. In addition, the dissolution
4-62 and sale or transfer may not diminish or impair the rights of the
4-63 holders of any outstanding bonds, warrants, or other obligations of
4-64 the district.
4-65 (m) The sale or transfer of the district's assets and
4-66 liabilities must satisfy the debt and bond obligations of the
4-67 district in a manner that protects the interests of the residents
4-68 of the district, including their collective property rights in the
4-69 district's assets. Any grant from federal funds is considered an
5-1 obligation to be repaid in satisfaction. The district may not
5-2 transfer or dispose of the district's assets except for due
5-3 compensation unless the transfer is made to another governmental
5-4 agency embracing the district and using the transferred assets for
5-5 the benefit of residents formerly in the district.
5-6 SECTION 9. This Act takes effect September 1, 1999.
5-7 SECTION 10. The importance of this legislation and the
5-8 crowded condition of the calendars in both houses create an
5-9 emergency and an imperative public necessity that the
5-10 constitutional rule requiring bills to be read on three several
5-11 days in each house be suspended, and this rule is hereby suspended.
5-12 * * * * *