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                                  * * * * *