By Christian H.B. No. 170
77R7270 YDB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Nacogdoches County Hospital District.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 7, Chapter 431, Acts of the 60th
1-5 Legislature, Regular Session, 1967, is amended to read as follows:
1-6 Sec. 7. (a) The board of directors shall have the power and
1-7 authority to issue and sell its bonds in the name and upon the
1-8 faith and credit of such hospital district for the purchase,
1-9 construction, acquisition, repair or renovation of buildings and
1-10 improvements and equipping the same for hospital purposes, and for
1-11 any or all of such purposes. At the time of issuance of any bonds
1-12 by the district a tax shall be levied by the board sufficient to
1-13 create an interest and sinking fund to pay the interest on and
1-14 principal of said bonds as same mature, providing such tax together
1-15 with any other taxes levied for said district shall not exceed 75
1-16 cents on each $100 valuation of taxable property in any one year,
1-17 within the district subject to hospital district taxation. No
1-18 bonds shall be issued by such hospital district except refunding
1-19 bonds until authorized by a majority of the qualified electors of
1-20 the district voting at an election called for such purpose. The
1-21 order for bond election shall specify the date of the election, the
1-22 amount of bonds to be authorized, the maximum maturity thereof, the
1-23 maximum rate of interest they are to bear, the place or places
1-24 where the election shall be held, the presiding judge and alternate
2-1 judge for each voting place and provide for clerks as in county
2-2 elections. Notice of any bond election (except one held under the
2-3 provisions of Section 8, in which instance notice shall be given as
2-4 provided in Section 3) shall be given as provided by Section
2-5 1251.003, Government Code [in Article 704, Revised Statutes], and
2-6 shall be conducted in accordance with the general laws of Texas
2-7 pertaining to general elections, except as modified by the
2-8 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) A public security issued by the district must bear
2-26 interest at a rate not to exceed the maximum interest rate allowed
2-27 by Chapter 1204, Government Code. Bonds of the district [shall
3-1 bear interest not to exceed six percent per annum,] shall mature
3-2 within 40 years of their date, shall be executed [in the name of
3-3 the hospital district and in its behalf by the president of the
3-4 board and countersigned by the secretary] in the manner provided by
3-5 Chapter 618, Government Code [Chapter 204, Acts of the 57th
3-6 Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas
3-7 Civil Statutes), as amended], and shall be subject to the [same]
3-8 requirements of Chapter 1202, Government Code [in the matter of
3-9 approval by the Attorney General of Texas and registration by the
3-10 Comptroller of Public Accounts of the State of Texas as are by law
3-11 provided for approval and registration of bonds issued by counties.
3-12 Upon the approval of such bonds by the attorney general and
3-13 registration by the comptroller, the same shall be incontestable
3-14 for any cause].
3-15 (d) Notwithstanding Subsections (a), (b), and (c), the board
3-16 may issue and sell its bonds, notes, or other obligations payable
3-17 from the sales and use tax revenues of the district to acquire land
3-18 for the hospital system or for the purchase, construction,
3-19 acquisition, repair, or renovation of buildings, improvements, and
3-20 equipment related to the hospital system.
3-21 SECTION 2. Section 17, Chapter 431, Acts of the 60th
3-22 Legislature, Regular Session, 1967, is amended to read as follows:
3-23 Sec. 17. (a) The application procedure to determine
3-24 eligibility for indigent health care must be adopted not later than
3-25 the beginning of each operating year and must comply with Chapter
3-26 61, Health and Safety Code.
3-27 (b) Whenever a patient residing within the district has been
4-1 admitted to a district facility [the facilities thereof], the
4-2 administrator or manager may cause inquiry to be made as to the
4-3 patient's financial [his] circumstances and the financial
4-4 circumstances [those] of the relatives of such patient legally
4-5 liable for the patient's [his] support.
4-6 (c) If the administrator or manager [he] finds that such
4-7 patient or said relatives are able to pay for the patient's [his]
4-8 care and treatment in whole or in part, the administrator or
4-9 manager [an order] shall issue an order [be made] directing such
4-10 patient or said relatives to pay to the hospital district for the
4-11 care and support of such patient a specified sum for an agreed term
4-12 regarding payment that is [per week] in proportion to their
4-13 financial ability.
4-14 (d) The administrator or manager shall have power and
4-15 authority to collect such sums from the estate of the patient or
4-16 the patient's [his] relatives legally liable for the patient's
4-17 [his] support in the manner provided by law for collection of
4-18 expenses in the last illness of a deceased person.
4-19 (e) If the administrator or manager finds that such patient
4-20 or said relatives are not able to pay either in whole or in part
4-21 for the patient's [his] care and treatment in such hospital, same
4-22 shall become a charge upon the hospital district as to the amount
4-23 of the inability to pay.
4-24 (f) Should there be any dispute as to the ability to pay or
4-25 doubt in the mind of the administrator or manager, the board of
4-26 directors shall hear and determine same after calling witnesses,
4-27 and shall make such order or orders as may be proper. Appeals from
5-1 the final order of the board shall lie to the district court. The
5-2 substantial evidence rule shall apply.
5-3 SECTION 3. Section 18, Chapter 431, Acts of the 60th
5-4 Legislature, Regular Session, 1967, is amended to read as follows:
5-5 Sec. 18. (a) The board of directors of the hospital
5-6 district is authorized on behalf of such district to accept
5-7 donations, gifts and endowments to be held in trust and
5-8 administered by the board of directors for such purposes and under
5-9 such directions, limitations and provisions as may be prescribed in
5-10 writing by the donor not inconsistent with proper management and
5-11 object of the hospital district.
5-12 (b) The board of directors may facilitate achievement of the
5-13 purpose of the district by creating a charitable organization to
5-14 provide or arrange for hospital and health care services, develop
5-15 resources for hospital and health care services, and provide
5-16 ancillary support services for the district. For purposes of this
5-17 subsection, "charitable organization" means an organization
5-18 eligible for an exemption from federal income tax under Section
5-19 501(a) of the Internal Revenue Code of 1986, as amended, by being
5-20 listed as an exempt organization in Section 501(c)(3) or (4) of the
5-21 code. A charitable organization created by the board under this
5-22 subsection is a unit of local government for the purposes of
5-23 Chapter 101, Civil Practice and Remedies Code.
5-24 (c) In addition to any other powers granted to the board of
5-25 directors by this Act or other law, the board of directors, on
5-26 behalf of the district, may sponsor and create a nonprofit
5-27 corporation under the Texas Non-Profit Corporation Act (Article
6-1 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
6-2 contribute funds to or solicit funds for the corporation. The
6-3 corporation may use funds, other than funds paid by the corporation
6-4 to the district, only to provide health care or other services the
6-5 district may provide under this Act. The board of directors shall
6-6 establish adequate controls to ensure that the corporation uses its
6-7 funds as required by this subsection. The corporation may invest
6-8 corporation funds in any manner in which the district may invest
6-9 funds, including investing funds as authorized by Chapter 2256,
6-10 Government Code.
6-11 SECTION 4. This Act takes effect September 1, 2001.