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.