1-1     By:  Christian (Senate Sponsor - Staples)              H.B. No. 170
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 10, 2001, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; May 10, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the Nacogdoches County Hospital District.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 7, Chapter 431, Acts of the 60th
1-12     Legislature, Regular Session, 1967, is amended to read as follows:
1-13           Sec. 7.  (a)  The board of directors shall have the power and
1-14     authority to issue and sell its bonds in the name and upon the
1-15     faith and credit of such hospital district for the purchase,
1-16     construction, acquisition, repair or renovation of buildings and
1-17     improvements and equipping the same for hospital purposes, and for
1-18     any or all of such purposes.  At the time of issuance of any bonds
1-19     by the district a tax shall be levied by the board sufficient to
1-20     create an interest and sinking fund to pay the interest on and
1-21     principal of said bonds as same mature, providing such tax together
1-22     with any other taxes levied for said district shall not exceed 75
1-23     cents on each $100 valuation of taxable property in any one year,
1-24     within the district subject to hospital district taxation.  No
1-25     bonds shall be issued by such hospital district except refunding
1-26     bonds until authorized by a majority of the qualified electors of
1-27     the district voting at an election called for such purpose.  The
1-28     order for bond election shall specify the date of the election, the
1-29     amount of bonds to be authorized, the maximum maturity thereof, the
1-30     maximum rate of interest they are to bear, the place or places
1-31     where the election shall be held, the presiding judge and alternate
1-32     judge for each voting place and provide for clerks as in county
1-33     elections.  Notice of any bond election (except one held under the
1-34     provisions of Section 8, in which instance notice shall be given as
1-35     provided in Section 3) shall be given as provided by Section
1-36     1251.003, Government Code [in Article 704, Revised Statutes], and
1-37     shall be conducted in accordance with the general laws of Texas
1-38     pertaining to general elections, except as modified by the
1-39     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)  A public security issued by the district must bear
1-57     interest at a rate not to exceed the maximum interest rate allowed
1-58     by Chapter 1204, Government Code.  Bonds of the district [shall
1-59     bear interest not to exceed six percent per annum,] shall mature
1-60     within 40 years of their date, shall be executed [in the name of
1-61     the hospital district and in its behalf by the president of the
1-62     board and countersigned by the secretary] in the manner provided by
1-63     Chapter 618, Government Code [Chapter 204, Acts of the 57th
1-64     Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas
 2-1     Civil Statutes), as amended], and shall be subject to the [same]
 2-2     requirements of Chapter 1202, Government Code [in the matter of
 2-3     approval by the Attorney General of Texas and registration by the
 2-4     Comptroller of Public Accounts of the State of Texas as are by law
 2-5     provided for approval and registration of bonds issued by counties.
 2-6     Upon the approval of such bonds by the attorney general and
 2-7     registration by the comptroller, the same shall be incontestable
 2-8     for any cause].
 2-9           (d)  Notwithstanding Subsections (a), (b), and (c), the board
2-10     may issue and sell its bonds, notes, or other obligations payable
2-11     from the sales and use tax revenues of the district to acquire land
2-12     for the hospital system or for the purchase, construction,
2-13     acquisition, repair, or renovation of buildings, improvements, and
2-14     equipment related to the hospital system.
2-15           SECTION 2.  Section 17, Chapter 431, Acts of the 60th
2-16     Legislature, Regular Session, 1967, is amended to read as follows:
2-17           Sec. 17.  (a)  The application procedure to determine
2-18     eligibility for indigent health care must be adopted not later than
2-19     the beginning of each operating year and must comply with Chapter
2-20     61, Health and Safety Code.
2-21           (b)  Whenever a patient residing within the district has been
2-22     admitted to a district facility [the facilities thereof], the
2-23     administrator or manager may cause inquiry to be made as to the
2-24     patient's financial [his] circumstances and the financial
2-25     circumstances [those] of the relatives of such patient legally
2-26     liable for the patient's [his] support.
2-27           (c)  If the administrator or manager [he] finds that such
2-28     patient or said relatives are able to pay for the patient's [his]
2-29     care and treatment in whole or in part, the administrator or
2-30     manager [an order] shall issue an order [be made] directing such
2-31     patient or said relatives to pay to the hospital district for the
2-32     care and support of such patient a specified sum for an agreed term
2-33     regarding payment that is [per week] in proportion to their
2-34     financial ability.
2-35           (d)  The administrator or manager shall have power and
2-36     authority to collect such sums from the estate of the patient or
2-37     the patient's [his] relatives legally liable for the patient's
2-38     [his] support in the manner provided by law for collection of
2-39     expenses in the last illness of a deceased person.
2-40           (e)  If the administrator or manager finds that such patient
2-41     or said relatives are not able to pay either in whole or in part
2-42     for the patient's [his] care and treatment in such hospital, same
2-43     shall become a charge upon the hospital district as to the amount
2-44     of the inability to pay.
2-45           (f)  Should there be any dispute as to the ability to pay or
2-46     doubt in the mind of the administrator or manager, the board of
2-47     directors shall hear and determine same after calling witnesses,
2-48     and shall make such order or orders as may be proper.  Appeals from
2-49     the final order of the board shall lie to the district court.  The
2-50     substantial evidence rule shall apply.
2-51           SECTION 3.  Section 18, Chapter 431, Acts of the 60th
2-52     Legislature, Regular Session, 1967, is amended to read as follows:
2-53           Sec. 18.  (a)  The board of directors of the hospital
2-54     district is authorized on behalf of such district to accept
2-55     donations, gifts and endowments to be held in trust and
2-56     administered by the board of directors for such purposes and under
2-57     such directions, limitations and provisions as may be prescribed in
2-58     writing by the donor not inconsistent with proper management and
2-59     object of the hospital district.
2-60           (b)  The board of directors may facilitate achievement of the
2-61     purpose of the district by creating a charitable organization to
2-62     provide or arrange for hospital and health care services, develop
2-63     resources for hospital and health care services, and provide
2-64     ancillary support services for the district.  For purposes of this
2-65     subsection, "charitable organization" means an organization
2-66     eligible for an exemption from federal income tax under Section
2-67     501(a) of the Internal Revenue Code of 1986, as amended, by being
2-68     listed as an exempt organization in Section 501(c)(3) or (4) of the
2-69     code.  A charitable organization created by the board under this
 3-1     subsection is a unit of local government for the purposes of
 3-2     Chapter 101, Civil Practice and Remedies Code.
 3-3           (c)  In addition to any other powers granted to the board of
 3-4     directors by this Act or other law, the board of directors, on
 3-5     behalf of the district, may sponsor and create a nonprofit
 3-6     corporation under the Texas Non-Profit Corporation Act (Article
 3-7     1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
 3-8     contribute funds to or solicit funds for the corporation.  The
 3-9     corporation may use funds, other than funds paid by the corporation
3-10     to the district, only to provide health care or other services the
3-11     district may provide under this Act. The board of directors shall
3-12     establish adequate controls to ensure that the corporation uses its
3-13     funds as required by this subsection. The corporation may invest
3-14     corporation funds in any manner in which the district may invest
3-15     funds, including investing funds as authorized by Chapter 2256,
3-16     Government Code.
3-17           SECTION 4.  This Act takes effect September 1, 2001.
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