AN ACT
1-1 relating to the powers, duties, and operations of the Nacogdoches
1-2 County Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 7, 9, and 10, Chapter 431, Acts of the
1-5 60th Legislature, Regular Session, 1967, are amended to read as
1-6 follows:
1-7 Sec. 7. (a) The board of directors shall have the power and
1-8 authority to issue and sell its bonds in the name and upon the
1-9 faith and credit of such hospital district for the purchase,
1-10 construction, acquisition, repair or renovation of buildings and
1-11 improvements and equipping the same for hospital purposes, and for
1-12 any or all of such purposes. At the time of issuance of any bonds
1-13 by the district a tax shall be levied by the board sufficient to
1-14 create an interest and sinking fund to pay the interest on and
1-15 principal of said bonds as same mature, providing such tax together
1-16 with any other taxes levied for said district shall not exceed 75
1-17 cents on each $100 valuation of taxable property in any one year,
1-18 within the district subject to hospital district taxation. No
1-19 bonds shall be issued by such hospital district except refunding
1-20 bonds until authorized by a majority of the qualified electors of
1-21 the district voting at an election called for such purpose. The
1-22 order for bond election shall specify the date of the election, the
1-23 amount of bonds to be authorized, the maximum maturity thereof, the
1-24 maximum rate of interest they are to bear, the place or places
2-1 where the election shall be held, the presiding judge and alternate
2-2 judge for each voting place and provide for clerks as in county
2-3 elections. Notice of any bond election (except one held under the
2-4 provisions of Section 8, in which instance notice shall be given as
2-5 provided in Section 3) shall be given as provided in Article 704,
2-6 Revised Statutes, and shall be conducted in accordance with the
2-7 general laws of Texas pertaining to general elections, except as
2-8 modified by the provisions of this Act.
2-9 (b) Refunding bonds of the district may be issued for the
2-10 purpose of refunding and paying off any outstanding indebtedness it
2-11 has issued or assumed. Such refunding bonds may be sold and the
2-12 proceeds thereof applied to the payment of outstanding
2-13 indebtedness, or may be exchanged in whole or in part for not less
2-14 than a like principal amount of such outstanding indebtedness
2-15 provided that, if refunding bonds are to be exchanged for a like
2-16 amount of said outstanding indebtedness, such refunding bonds shall
2-17 bear interest at the same or lower rate than borne by the debt
2-18 refunded, unless it is shown mathematically that a saving will
2-19 result in the total amount of interest to be paid on said refunding
2-20 bonds, and provided further that if such refunding bonds are to be
2-21 sold and the proceeds thereof applied to the payment of any such
2-22 outstanding indebtedness, same shall be issued and payments made in
2-23 the manner specified by Chapter 503, Acts of the 54th Legislature,
2-24 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).
2-25 (c) Bonds of the district shall bear interest not to exceed
2-26 six percent per annum, shall mature within 40 years of their date,
3-1 shall be executed in the name of the hospital district and in its
3-2 behalf by the president of the board and countersigned by the
3-3 secretary in the manner provided by Chapter 204, Acts of the 57th
3-4 Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas
3-5 Civil Statutes), as amended, and shall be subject to the same
3-6 requirements in the matter of approval by the Attorney General of
3-7 Texas and registration by the Comptroller of Public Accounts of the
3-8 State of Texas as are by law provided for approval and registration
3-9 of bonds issued by counties. Upon the approval of such bonds by
3-10 the attorney general and registration by the comptroller, the same
3-11 shall be incontestable for any cause.
3-12 (d) Notwithstanding Subsections (a), (b), and (c), the board
3-13 may issue and sell its bonds, notes, or other obligations payable
3-14 from the sales and use tax revenues of the district to acquire land
3-15 for the hospital system or for the purchase, construction,
3-16 acquisition, repair, or renovation of buildings, improvements, and
3-17 equipment related to the hospital system.
3-18 Sec. 9. (a) The board shall determine:
3-19 (1) the type, number, and location of buildings
3-20 required to establish and maintain an adequate hospital system; and
3-21 (2) the type of equipment necessary for hospital care.
3-22 (b) The board may:
3-23 (1) acquire real property, facilities, and equipment
3-24 for the district for use in the hospital system in the manner
3-25 determined by the board;
3-26 (2) lease to physicians, individuals, companies,
4-1 corporations, or other legal entities or acquire by lease or by
4-2 lease-purchase agreement real property, facilities, or equipment
4-3 for use in the hospital system on terms determined by the board to
4-4 be in the best interest of its residents; and
4-5 (3) sell or otherwise dispose of district real
4-6 property, facilities, or equipment on terms determined by the board
4-7 to be in the best interest of its residents [The board of directors
4-8 is hereby given complete discretion as to the type of buildings
4-9 (both as to number and location) required to establish and maintain
4-10 an adequate hospital system].
4-11 (c) The hospital system may include domiciliary care and
4-12 treatment of the sick, wounded and injured, out-patient clinic or
4-13 clinics, dispensaries, geriatric domiciliary care and treatment,
4-14 convalescent home facilities, necessary nurses, domiciliaries and
4-15 training centers, blood banks, community mental health centers, and
4-16 research centers or laboratories, and any other facilities deemed
4-17 necessary for hospital care by the directors.
4-18 (d) The district, through its board of directors, is further
4-19 authorized to enter into an operating or management contract with
4-20 regard to its facilities or a part thereof[, or may lease all or
4-21 part of the buildings, facilities, and other property owned by it
4-22 upon terms and conditions considered to be to the best interest of
4-23 its inhabitants, provided that in no event shall any lease be for a
4-24 period in excess of 25 years from the date entered. The district
4-25 shall be empowered to sell or otherwise dispose of any property
4-26 (real or personal) or equipment of any nature upon terms and
5-1 conditions found by the board to be in the best interest of its
5-2 inhabitants].
5-3 Sec. 10. (a) Except as provided by Subsection (i), the
5-4 [The] board of directors of such district shall have the power to
5-5 prescribe the method and manner of making purchases and
5-6 expenditures by and for such hospital district, and also shall be
5-7 authorized to prescribe all accounting and control procedures. In
5-8 making purchases, the board may determine the method of purchase
5-9 that provides the best value to the district, including:
5-10 (1) competitive bidding;
5-11 (2) competitive sealed proposals;
5-12 (3) catalogue purchase;
5-13 (4) a group purchasing program; or
5-14 (5) an open market contract.
5-15 (b) In determining what is the best value to the district,
5-16 the board shall consider:
5-17 (1) the purchase price;
5-18 (2) the reputation of the vendor and of the vendor's
5-19 goods or services;
5-20 (3) the quality of the vendor's goods or services;
5-21 (4) the extent to which the goods or services meet the
5-22 district's needs;
5-23 (5) the vendor's past relationship with the district;
5-24 (6) the total long-term cost to the district of
5-25 acquiring the vendor's goods or services; and
5-26 (7) any other relevant factor that a private business
6-1 entity would consider in selecting a vendor.
6-2 (c) The state auditor may audit purchases of goods or
6-3 services by the district.
6-4 (d) The board may adopt rules and procedures for the
6-5 acquisition of goods or services.
6-6 (e) To the extent of any conflict, this section prevails
6-7 over any other law relating to the purchasing of goods and
6-8 services.
6-9 (f) Except as otherwise provided by this section, Chapters
6-10 2151 and 2254, Government Code, do not apply to purchases of goods
6-11 and services made under this section.
6-12 (g) The board may incur obligations, including a lease or
6-13 lease-purchase agreement for real property, facilities, or
6-14 equipment for use in the hospital system payable from the pledged
6-15 sales and use tax revenues of the district.
6-16 (h) Pending receipt of accounts receivable, the board may
6-17 borrow money for the payment of maintenance and operating expenses
6-18 of the district. A loan obtained by the district must be repaid
6-19 not later than one year after the date on which the loan is made.
6-20 (i) All contracts for construction or purchases of equipment
6-21 involving the expenditure of more than $25,000 [$10,000] may be
6-22 made only after advertising in the manner provided by Subchapter B,
6-23 Chapter 271, Local Government Code. The provisions of Article 5160
6-24 relating to performance and payment bonds shall apply to
6-25 construction contracts let by the district.
6-26 (j) The district may acquire equipment for use in its
7-1 hospital system and mortgage or pledge the property so acquired as
7-2 security for the payment of the purchase price, but any such
7-3 contract shall provide for the entire obligation of the district to
7-4 be retired within five years from the date of the contract.
7-5 (k) The district may allocate a portion of its annual sales
7-6 and use tax revenue, not to exceed one-fourth of one percent, to
7-7 encourage economic development in the district as described by
7-8 Section 52-a, Article III, Texas Constitution.
7-9 (l) Except as permitted by this section and as permitted by
7-10 Sections 7 and 8, the district may incur no obligation payable from
7-11 any revenues of the district (taxes or otherwise) except those on
7-12 hand or to be on hand within the then current and following fiscal
7-13 year of the district.
7-14 SECTION 2. The importance of this legislation and the
7-15 crowded condition of the calendars in both houses create an
7-16 emergency and an imperative public necessity that the
7-17 constitutional rule requiring bills to be read on three several
7-18 days in each house be suspended, and this rule is hereby suspended,
7-19 and that this Act take effect and be in force from and after its
7-20 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1881 passed the Senate on
May 4, 1999, by the following vote: Yeas 30, Nays 0; and that the
Senate concurred in House amendment on May 25, 1999, by the
following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1881 passed the House, with
amendment, on May 22, 1999, by the following vote: Yeas 144,
Nays 0, two present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor