1-1 By: Nixon S.B. No. 1881
1-2 (In the Senate - Filed April 22, 1999; April 23, 1999, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 29, 1999, reported favorably by the following
1-5 vote: Yeas 4, Nays 0; April 29, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the powers, duties, and operations of the Nacogdoches
1-9 County Hospital District.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Sections 7, 9, and 10, Chapter 431, Acts of the
1-12 60th Legislature, Regular Session, 1967, are amended to read as
1-13 follows:
1-14 Sec. 7. (a) The board of directors shall have the power and
1-15 authority to issue and sell its bonds in the name and upon the
1-16 faith and credit of such hospital district for the purchase,
1-17 construction, acquisition, repair or renovation of buildings and
1-18 improvements and equipping the same for hospital purposes, and for
1-19 any or all of such purposes. At the time of issuance of any bonds
1-20 by the district a tax shall be levied by the board sufficient to
1-21 create an interest and sinking fund to pay the interest on and
1-22 principal of said bonds as same mature, providing such tax together
1-23 with any other taxes levied for said district shall not exceed 75
1-24 cents on each $100 valuation of taxable property in any one year,
1-25 within the district subject to hospital district taxation. No
1-26 bonds shall be issued by such hospital district except refunding
1-27 bonds until authorized by a majority of the qualified electors of
1-28 the district voting at an election called for such purpose. The
1-29 order for bond election shall specify the date of the election, the
1-30 amount of bonds to be authorized, the maximum maturity thereof, the
1-31 maximum rate of interest they are to bear, the place or places
1-32 where the election shall be held, the presiding judge and alternate
1-33 judge for each voting place and provide for clerks as in county
1-34 elections. Notice of any bond election (except one held under the
1-35 provisions of Section 8, in which instance notice shall be given as
1-36 provided in Section 3) shall be given as provided in Article 704,
1-37 Revised Statutes, and shall be conducted in accordance with the
1-38 general laws of Texas pertaining to general elections, except as
1-39 modified by the provisions of this Act.
1-40 (b) Refunding bonds of the district may be issued for the
1-41 purpose of refunding and paying off any outstanding indebtedness it
1-42 has issued or assumed. Such refunding bonds may be sold and the
1-43 proceeds thereof applied to the payment of outstanding
1-44 indebtedness, or may be exchanged in whole or in part for not less
1-45 than a like principal amount of such outstanding indebtedness
1-46 provided that, if refunding bonds are to be exchanged for a like
1-47 amount of said outstanding indebtedness, such refunding bonds shall
1-48 bear interest at the same or lower rate than borne by the debt
1-49 refunded, unless it is shown mathematically that a saving will
1-50 result in the total amount of interest to be paid on said refunding
1-51 bonds, and provided further that if such refunding bonds are to be
1-52 sold and the proceeds thereof applied to the payment of any such
1-53 outstanding indebtedness, same shall be issued and payments made in
1-54 the manner specified by Chapter 503, Acts of the 54th Legislature,
1-55 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).
1-56 (c) Bonds of the district shall bear interest not to exceed
1-57 six percent per annum, shall mature within 40 years of their date,
1-58 shall be executed in the name of the hospital district and in its
1-59 behalf by the president of the board and countersigned by the
1-60 secretary in the manner provided by Chapter 204, Acts of the 57th
1-61 Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas
1-62 Civil Statutes), as amended, and shall be subject to the same
1-63 requirements in the matter of approval by the Attorney General of
1-64 Texas and registration by the Comptroller of Public Accounts of the
2-1 State of Texas as are by law provided for approval and registration
2-2 of bonds issued by counties. Upon the approval of such bonds by
2-3 the attorney general and registration by the comptroller, the same
2-4 shall be incontestable for any cause.
2-5 (d) Notwithstanding Subsections (a), (b), and (c), the board
2-6 may issue and sell its bonds, notes, or other obligations payable
2-7 from the sales and use tax revenues of the district to acquire land
2-8 for the hospital system or for the purchase, construction,
2-9 acquisition, repair, or renovation of buildings, improvements, and
2-10 equipment related to the hospital system.
2-11 Sec. 9. (a) The board shall determine:
2-12 (1) the type, number, and location of buildings
2-13 required to establish and maintain an adequate hospital system; and
2-14 (2) the type of equipment necessary for hospital care.
2-15 (b) The board may:
2-16 (1) acquire real property, facilities, and equipment
2-17 for the district for use in the hospital system in the manner
2-18 determined by the board;
2-19 (2) lease to physicians, individuals, companies,
2-20 corporations, or other legal entities or acquire by lease or by
2-21 lease-purchase agreement real property, facilities, or equipment
2-22 for use in the hospital system on terms determined by the board to
2-23 be in the best interest of its residents; and
2-24 (3) sell or otherwise dispose of district real
2-25 property, facilities, or equipment on terms determined by the board
2-26 to be in the best interest of its residents [The board of directors
2-27 is hereby given complete discretion as to the type of buildings
2-28 (both as to number and location) required to establish and maintain
2-29 an adequate hospital system].
2-30 (c) The hospital system may include domiciliary care and
2-31 treatment of the sick, wounded and injured, out-patient clinic or
2-32 clinics, dispensaries, geriatric domiciliary care and treatment,
2-33 convalescent home facilities, necessary nurses, domiciliaries and
2-34 training centers, blood banks, community mental health centers, and
2-35 research centers or laboratories, and any other facilities deemed
2-36 necessary for hospital care by the directors.
2-37 (d) The district, through its board of directors, is further
2-38 authorized to enter into an operating or management contract with
2-39 regard to its facilities or a part thereof[, or may lease all or
2-40 part of the buildings, facilities, and other property owned by it
2-41 upon terms and conditions considered to be to the best interest of
2-42 its inhabitants, provided that in no event shall any lease be for a
2-43 period in excess of 25 years from the date entered. The district
2-44 shall be empowered to sell or otherwise dispose of any property
2-45 (real or personal) or equipment of any nature upon terms and
2-46 conditions found by the board to be in the best interest of its
2-47 inhabitants].
2-48 Sec. 10. (a) The board of directors of such district shall
2-49 have the power to prescribe the method and manner of making
2-50 purchases and expenditures and entering into contracts for
2-51 construction by and for such hospital district, and also shall be
2-52 authorized to prescribe all accounting and control procedures. In
2-53 purchasing goods or services or entering into contracts for
2-54 construction, the board may determine the method that provides the
2-55 best value to the district, including:
2-56 (1) competitive bidding;
2-57 (2) competitive sealed proposals;
2-58 (3) catalogue purchase;
2-59 (4) a group purchasing program; or
2-60 (5) an open market contract.
2-61 (b) In determining what is the best value to the district,
2-62 the board shall consider:
2-63 (1) the purchase price;
2-64 (2) the reputation of the vendor and of the vendor's
2-65 goods or services;
2-66 (3) the quality of the vendor's goods or services;
2-67 (4) the extent to which the goods or services meet the
2-68 district's needs;
2-69 (5) the vendor's past relationship with the district;
3-1 (6) the total long-term cost to the district of
3-2 acquiring the vendor's goods or services; and
3-3 (7) any other relevant factor that a private business
3-4 entity would consider in selecting a vendor.
3-5 (c) The state auditor may audit purchases of goods or
3-6 services by the district.
3-7 (d) The board may adopt rules and procedures for the
3-8 acquisition of goods or services.
3-9 (e) To the extent of any conflict, this section prevails
3-10 over any other law relating to the purchasing of goods and
3-11 services.
3-12 (f) Except as otherwise provided by this section, Chapters
3-13 2151 and 2254, Government Code, do not apply to purchases of goods
3-14 and services made under this section.
3-15 (g) The board may incur obligations, including a lease or
3-16 lease-purchase agreement for real property, facilities, or
3-17 equipment for use in the hospital system payable from the pledged
3-18 sales and use tax revenues of the district.
3-19 (h) Pending receipt of accounts receivable, the board may
3-20 borrow money for the payment of maintenance and operating expenses
3-21 of the district. A loan obtained by the district must be repaid
3-22 not later than one year after the date on which the loan is made.
3-23 (i) [All contracts for construction or purchases involving
3-24 the expenditure of more than $10,000 may be made only after
3-25 advertising in the manner provided by Subchapter B, Chapter 271,
3-26 Local Government Code.] The provisions of Article 5160 relating to
3-27 performance and payment bonds shall apply to construction contracts
3-28 let by the district.
3-29 (j) The district may acquire equipment for use in its
3-30 hospital system and mortgage or pledge the property so acquired as
3-31 security for the payment of the purchase price, but any such
3-32 contract shall provide for the entire obligation of the district to
3-33 be retired within five years from the date of the contract.
3-34 (k) The district may allocate a portion of its annual sales
3-35 and use tax revenue, not to exceed one-fourth of one percent, to
3-36 encourage economic development in the district as described by
3-37 Section 52-a, Article III, Texas Constitution.
3-38 (l) Except as permitted by this section and as permitted by
3-39 Sections 7 and 8, the district may incur no obligation payable from
3-40 any revenues of the district (taxes or otherwise) except those on
3-41 hand or to be on hand within the then current and following fiscal
3-42 year of the district.
3-43 SECTION 2. The importance of this legislation and the
3-44 crowded condition of the calendars in both houses create an
3-45 emergency and an imperative public necessity that the
3-46 constitutional rule requiring bills to be read on three several
3-47 days in each house be suspended, and this rule is hereby suspended,
3-48 and that this Act take effect and be in force from and after its
3-49 passage, and it is so enacted.
3-50 * * * * *