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.
3-18 * * * * *