1-1 AN ACT
1-2 relating to the powers and duties of Stonewall County Hospital
1-3 District.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 54, Acts of the 58th Legislature, Regular
1-6 Session, 1963, is amended by adding Section 2A to read as follows:
1-7 Sec. 2A. A county, municipality, or other governmental
1-8 entity in which the District is located may not levy taxes or issue
1-9 bonds or other obligations for hospital purposes or for providing
1-10 medical care for the residents of the District.
1-11 SECTION 2. Section 3, Chapter 54, Acts of the 58th
1-12 Legislature, Regular Session, 1963, is amended to read as follows:
1-13 Sec. 3. (a) Within ten (10) days after such election is held
1-14 the Commissioners Court in such County shall convene and canvass
1-15 the returns of the election, and if a majority of the qualified
1-16 property taxpaying electors voting at said election voted in favor
1-17 of the proposition, the Court shall so find and declare the
1-18 Hospital District established and created and appoint five (5)
1-19 persons as directors of the Hospital District to serve until the
1-20 first Saturday in April following the creation and establishment of
1-21 the District at which time five (5) directors shall be elected.
1-22 The three (3) directors receiving the highest vote at such first
1-23 election shall serve for two (2) years, the other two (2) directors
1-24 shall serve for one year. Thereafter, all directors shall serve
2-1 for a period of two (2) years and until their successor has been
2-2 duly elected or appointed and qualified. [No person shall be
2-3 appointed or elected as a member of the board of directors of said
2-4 Hospital District unless he is a resident thereof and owns land
2-5 subject to taxation therein and unless at the time of such election
2-6 or appointment he shall be more than twenty-one (21) years of age.]
2-7 Each member of the board of directors shall qualify by executing
2-8 the constitutional [consitutional] oath of office [and shall
2-9 execute a good and sufficient bond for One Thousand Dollars
2-10 ($1,000) payable to said District conditioned upon the faithful
2-11 performance of his duties, and such oaths and bonds shall be
2-12 deposited with the depository bank of the District for
2-13 safekeeping].
2-14 (b) The board of directors shall organize by electing one
2-15 (1) of their number as president and one (1) of their number as
2-16 vice president [secretary]. The directors shall also elect one
2-17 person who is not required to be a director to serve as secretary
2-18 and treasurer. Each officer serves a one-year term. Any three (3)
2-19 members of the board of directors shall constitute a quorum and a
2-20 concurrence of three (3) shall be sufficient in all matters
2-21 pertaining to the business of the District. All vacancies in the
2-22 office of director shall be filled for the unexpired term by a
2-23 majority vote [appointment] of the remainder of the board of
2-24 directors. In the event the number of directors shall be reduced
2-25 to less than three (3) for any reason, the remaining directors
2-26 shall immediately call a special election to fill said vacancies,
2-27 and upon failure to do so a district court may, upon application of
3-1 any qualified voter or taxpayer of the District, issue a mandate
3-2 requiring that such election be ordered by the remaining directors.
3-3 (c) The board of directors shall order a [A] regular
3-4 election of directors to [shall] be held on the first Saturday in
3-5 May [April] of each year. The board of directors shall issue the
3-6 order at least 45 days before the date of the election. The order
3-7 must state the time, place, and purpose of the election. The board
3-8 of directors shall appoint the presiding judge, who shall appoint
3-9 the assistant judge and the clerks as may be required. Notice [and
3-10 notice] of such election shall be published in a newspaper of
3-11 general circulation in the District [County] one (1) time at least
3-12 ten (10) days prior to the date of election. Any person desiring
3-13 that person's [his] name to be printed on the ballot as a candidate
3-14 for director shall file an application [a petition, signed by not
3-15 less than twenty-five (25) qualified voters asking that such name
3-16 be printed on the ballot,] with the secretary of the board of
3-17 directors of the District[. Such petition shall be filed with such
3-18 secretary] at least 31 [twenty-five (25)] days prior to the date of
3-19 election.
3-20 (d) To be eligible to be a candidate for or to serve as a
3-21 director, a person must be a resident of the District and a
3-22 qualified voter. An employee of the District may not serve as a
3-23 director.
3-24 SECTION 3. Section 4, Chapter 54, Acts of the 58th
3-25 Legislature, Regular Session, 1963, is amended to read as follows:
3-26 Sec. 4. (a) The management and control of each Hospital
3-27 District created pursuant to the provisions of this Act is hereby
4-1 vested in the board of directors of the District, who shall serve
4-2 without compensation but may be reimbursed for actual expenses
4-3 incurred in the performance of their official duties, provided the
4-4 expenses are reported in the District's minutes and approved [upon
4-5 the approval of such expenses] by the [entire] board of directors.
4-6 (b) The board of directors shall appoint a qualified person
4-7 as administrator of the District and may appoint an assistant
4-8 administrator. The administrator and assistant administrator serve
4-9 at the will of the board of directors. The administrator and
4-10 assistant administrator are entitled to compensation as determined
4-11 by the board of directors. Before assuming the administrator's
4-12 duties, the administrator shall execute a bond payable to the
4-13 Hospital District in an amount of not less than $5,000 as
4-14 determined by the board of directors, conditioned on the faithful
4-15 performance of the administrator's duties under this Act and any
4-16 other condition the board of directors may prescribe. The board of
4-17 directors may pay for the bond with District funds.
4-18 (c) The administrator shall supervise the work and
4-19 activities of the District and direct the general affairs of the
4-20 District, subject to the limitations prescribed by the board of
4-21 directors.
4-22 (d) The District may appoint physicians to the staff and
4-23 employ technicians, nurses, fiscal agents, accountants, architects,
4-24 attorneys, and other necessary employees. The board of directors
4-25 may delegate to the administrator the authority to employ persons
4-26 for the District.
4-27 (e) The board of directors may contract with any other
5-1 public or private entity, including the federal government, this
5-2 state, a county, a municipality, a hospital district, or any other
5-3 political subdivision, or a charitable organization, to provide
5-4 health care or related services inside or outside the District.
5-5 (f) The board of directors shall determine the type, number,
5-6 and location of buildings required to establish and maintain an
5-7 adequate hospital system and the type of equipment necessary for
5-8 hospital care. The board of directors may establish and equip a
5-9 clinic as part of the hospital system.
5-10 (g) The board of directors may acquire property, facilities,
5-11 and equipment for the District for use in the hospital system or
5-12 mortgage or pledge the property, facilities, or equipment acquired
5-13 as security for the payment of the purchase price. The board of
5-14 directors may transfer by lease to individuals, companies,
5-15 corporations, or other legal entities or acquire by lease District
5-16 hospital facilities and sell or otherwise dispose of District
5-17 property, facilities, or equipment.
5-18 (h) The board of directors may enter into operating or
5-19 management contracts relating to hospital facilities. The term of
5-20 a contract may not exceed 25 years from the date the contract is
5-21 entered into.
5-22 (i) The board of directors may provide retirement benefits
5-23 for employees of the District by establishing or administering a
5-24 retirement program or electing to participate in the Texas County
5-25 and District Retirement System or in any other statewide retirement
5-26 system in which the District is eligible to participate.
5-27 (j) The board of directors may spend District funds to
6-1 recruit physicians, nurses, and other trained medical personnel.
6-2 (k) The board of directors may institute a suit to enforce
6-3 the payment of taxes and to foreclose liens to secure the payment
6-4 of taxes due to the District.
6-5 (l) The board of directors may provide or contract for the
6-6 provision of educational programs or courses for employees and
6-7 medical staff of the District.
6-8 (m) The board of directors may institute a suit to collect
6-9 amounts owed the District by patients who have not been determined
6-10 to be unable to pay under Section 11 of this Act.
6-11 SECTION 4. Section 5, Chapter 54, Acts of the 58th
6-12 Legislature, Regular Session, 1963, is amended to read as follows:
6-13 Sec. 5. (a) The [Upon the creation of such Hospital
6-14 District, the] board of directors may annually [shall have the
6-15 power and authority and it shall be their duty to] levy on all
6-16 property subject to hospital district taxation for the benefit of
6-17 the District [at the same time taxes are levied for County
6-18 purposes, using the County values and the County tax roll,] a tax
6-19 in an amount not to exceed the limit approved by the voters. The
6-20 tax rate for all purposes may not [of not to] exceed Seventy-five
6-21 Cents (75 ) on the One Hundred Dollars valuation of all taxable
6-22 property within the Hospital District, for the purpose of: (1)
6-23 paying the indebtedness assumed or [interest on and creating a
6-24 sinking fund for bonds which may be] issued by the Hospital
6-25 District [for hospital purposes as herein provided]; (2) providing
6-26 for the operation and maintenance of the Hospital District and
6-27 hospital system; and (3) for the purpose of making further
7-1 improvements and additions to the hospital system, and for the
7-2 acquisition of necessary sites therefor, by purchase, lease or
7-3 condemnation.
7-4 (b) The district may not impose taxes to pay the principal
7-5 of or interest on revenue bonds issued by the district.
7-6 (c) The Tax Code governs the appraisal, assessment, and
7-7 collection of District taxes. The board of directors may provide
7-8 for the appointment of a tax assessor-collector for the District or
7-9 may contract for the assessment and collection of taxes as provided
7-10 by the Tax Code. [Not later than October 1st of each year, the
7-11 board of directors shall levy the tax on all taxable property
7-12 within the District which is subject to taxation and shall
7-13 immediately certify such tax rate to the tax assessor and collector
7-14 of the county in which the District is located. The tax so levied
7-15 shall be collected on all property subject to hospital district
7-16 taxation by the assessor and collector of taxes for the county on
7-17 the county tax values, and in the same manner and under the same
7-18 conditions as county taxes. The assessor and collector of taxes
7-19 shall charge and deduct from payments to the Hospital District the
7-20 fees for assessing and collecting the tax at the rate of not
7-21 exceeding one per cent (1%) of the amounts collected as may be
7-22 determined by the board of directors but in no event in excess of
7-23 Five Thousand Dollars ($5,000) for any one (1) fiscal year. Such
7-24 fees shall be deposited in the county's general fund, and shall be
7-25 reported as fees of office of the tax assessor and collector.
7-26 Interest and penalties on taxes paid to the Hospital District shall
7-27 be the same as in the case of county taxes. Discounts shall be the
8-1 same as for county taxes. The residue of tax collections, after
8-2 deduction of discounts and fees for assessing and collecting, shall
8-3 be deposited in the District depository; and such funds shall be
8-4 withdrawn only as provided herein. All other income of the
8-5 Hospital District shall be deposited in like manner with the
8-6 District depository.]
8-7 [The board of directors shall have the authority to levy the
8-8 tax aforesaid for the entire year in which the said Hospital
8-9 District is established, for the purpose of securing funds to
8-10 initiate the operation of the Hospital District.]
8-11 SECTION 5. Section 6, Chapter 54, Acts of the 58th
8-12 Legislature, Regular Session, 1963, is amended to read as follows:
8-13 Sec. 6. (a) The board of directors may issue and sell bonds
8-14 authorized by an election in the name and on the faith and credit
8-15 of the Hospital District to purchase, construct, acquire, repair,
8-16 or renovate buildings or improvements, equip buildings or
8-17 improvements for hospital purposes, or acquire and operate a mobile
8-18 emergency medical or air ambulance service.
8-19 (b) At the time the bonds are issued by the District, the
8-20 board of directors shall levy a tax. The tax must be sufficient to
8-21 create an interest and sinking fund to pay the principal of and
8-22 interest on the bonds as they mature. In any year, the tax
8-23 together with any other tax the District levies may not exceed the
8-24 limit approved by the voters at the election authorizing the levy
8-25 of taxes.
8-26 (c) The District may issue general obligation bonds only if
8-27 the bonds are authorized by a majority of the qualified voters of
9-1 the District voting at an election called and held for that
9-2 purpose. The board of directors may order a bond election.
9-3 (d) The bond election shall be conducted as provided by
9-4 Chapter 1251, Government Code.
9-5 (e) Bonds of the district shall bear interest not to exceed
9-6 six percent per year, mature within 40 years of their date, be
9-7 executed in the name of the Hospital District and in its behalf by
9-8 the president of the board of directors and countersigned by the
9-9 secretary in the manner provided by Chapter 618, Government Code
9-10 (Uniform Facsimile Signature of Public Officials Act), and shall be
9-11 subject to the same requirements in the matter of approval by the
9-12 attorney general and registration by the comptroller as are by law
9-13 provided for approval and registration of bonds issued by counties.
9-14 Upon the approval of such bonds by the attorney general and
9-15 registration by the comptroller, the bonds shall be incontestable
9-16 for any cause. [The board of directors shall have the power and
9-17 authority to issue and sell as the obligations of such Hospital
9-18 District, and in the name and upon the faith and credit of such
9-19 Hospital District, bonds for the purchase, construction,
9-20 acquisition, repair or renovation of buildings and improvements and
9-21 equipping the same for hospital purposes and for any or all of such
9-22 purposes; provided, that a sufficient tax shall be levied to create
9-23 an interest and sinking fund to pay the interest and principal as
9-24 same matures providing said tax together with any other taxes
9-25 levied for said District shall not exceed Seventy-five Cents (75 )
9-26 and any one (1) year. Such bonds shall be executed in the name of
9-27 the Hospital District and on its behalf by the president of the
10-1 board of directors, and countersigned by the secretary of the board
10-2 of directors, and shall be subject to the same requirements in the
10-3 matter of approval thereof by the Attorney General of the State of
10-4 Texas and the registration thereof by the Comptroller of Public
10-5 Accounts of the State of Texas as are by law provided for such
10-6 approval and registration of bonds of counties of this State. Upon
10-7 the approval of such bonds by the Attorney General of Texas and
10-8 registration by the Comptroller the same shall be incontestable for
10-9 any cause. No bonds shall be issued by such Hospital District
10-10 (except refunding bonds) until authorized by a majority vote of the
10-11 legally qualified property taxpaying electors, residing in such
10-12 Hospital District, voting at an election called and held for such
10-13 purpose. Such election may be called by the board of directors on
10-14 its own motion, and the order calling said election shall specify
10-15 the date of the election, the place or places where the election
10-16 shall be held, the presiding officers thereof, the purpose for
10-17 which the bonds are to be issued, the amount thereof, maximum
10-18 interest rate (not to exceed six per cent (6%) per annum) and the
10-19 maximum maturity date of such bonds (not to exceed forty (40) years
10-20 from their date of issuance). Notice of election shall be given by
10-21 publishing a substantial copy of the order calling the election in
10-22 a newspaper of general circulation in such County once a week for
10-23 two (2) consecutive weeks prior to the date of election, the date
10-24 of the first publication being at least fourteen (14) full days
10-25 prior to the date set for the election. The cost of such election
10-26 shall be paid by the Hospital District.]
10-27 [The bonds of the District may be made optional for
11-1 redemption prior to their maturity date at the discretion of the
11-2 board of directors.]
11-3 [The District may without an election issue the bonds to
11-4 refund and pay off any validly issued and outstanding bonds
11-5 heretofore issued by the District, provided any such refund bonds
11-6 shall bear interest at the same rate or at a lesser rate than the
11-7 bonds being refunded unless it be shown mathematically that a
11-8 savings will result in the total amount of interest to be paid.]
11-9 SECTION 6. Chapter 54, Acts of the 58th Legislature, Regular
11-10 Session, 1963, is amended by adding Section 6A to read as follows:
11-11 Sec. 6A. (a) The board of directors may issue revenue bonds
11-12 to purchase, construct, acquire, repair, equip, or renovate
11-13 buildings or improvements for hospital purposes, acquire sites to
11-14 be used for hospital purposes, or acquire and operate a mobile
11-15 emergency medical or air ambulance service to assist the District
11-16 in carrying out its hospital purposes.
11-17 (b) The bonds must be payable from and secured by a pledge
11-18 of all or part of the revenues derived from the operation of the
11-19 District's hospital system. The bonds may be additionally secured
11-20 by a mortgage or deed of trust lien on all or part of District
11-21 property.
11-22 (c) The bonds must be issued in the manner provided by
11-23 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
11-24 Health and Safety Code, for issuance of revenue bonds by county
11-25 hospital authorities.
11-26 SECTION 7. Section 7, Chapter 54, Acts of the 58th
11-27 Legislature, Regular Session, 1963, is amended to read as follows:
12-1 Sec. 7. (a) The board of directors of such District shall
12-2 have the power to prescribe the method and manner of making
12-3 purchases and expenditures by and for such Hospital District, and
12-4 also shall prescribe all accounting and control procedures; the
12-5 method of purchasing necessary supplies, materials and equipment;
12-6 and shall have the power to adopt a seal for such District[; and
12-7 may employ a general manager, attorney, bookkeeper, architect, and
12-8 any other employees deemed necessary for the efficient operation of
12-9 the Hospital District]. The District shall comply with the bidding
12-10 requirements of Chapter 271, Local Government Code. Except as
12-11 permitted by this Act, the District may not incur an obligation
12-12 payable from any revenue of the District except revenue currently
12-13 held by the District or revenue that will be held by the District
12-14 in the then current fiscal year of the District.
12-15 (b) All books, records, accounts, notices and minutes and
12-16 all other matters of the District and the operation of its
12-17 facilities shall, except as herein provided, be maintained at the
12-18 office of the District and there be open to public inspection at
12-19 all reasonable hours.
12-20 (c) The board of directors is specifically empowered to
12-21 adopt rules and regulations governing the operation of such
12-22 District and its facilities which rules and regulations shall
12-23 supplement but shall not contravene any of the provisions of this
12-24 Act. Such rules and regulations may, upon approval of the board of
12-25 directors, be published in booklet or pamphlet form at the expense
12-26 of the District and may be made available to any taxpayer upon
12-27 request.
13-1 SECTION 8. Section 8, Chapter 54, Acts of the 58th
13-2 Legislature, Regular Session, 1963, is amended to read as follows:
13-3 Sec. 8. (a) The District operates on the fiscal year
13-4 established by the board of directors. The fiscal year may not be
13-5 changed if revenue bonds of the District are outstanding or more
13-6 than once in a 24-month period. [The fiscal year of the Hospital
13-7 District authorized to be established by the provisions hereof
13-8 shall commence on October 1st of each year and end on the 30th day
13-9 of September of the following year.] The district directors shall
13-10 cause an annual [independent] audit to be made of the books and
13-11 records of the District, such audit to be made covering such fiscal
13-12 year[, and the same shall be filed with the Comptroller of Public
13-13 Accounts of the State of Texas and at the office of the District
13-14 not later than December 31st of each year]. The annual audit and
13-15 other District records are open to inspection during regular
13-16 business hours at the principal office of the District.
13-17 (b) The board of directors shall each year cause a budget to
13-18 be prepared showing the proposed expenditures and disbursements and
13-19 the estimated receipts and collections for the following fiscal
13-20 year and shall hold a public hearing on the proposed budget after
13-21 publication of a notice of hearing in a newspaper of general
13-22 circulation in the County at least once not less than ten (10) days
13-23 prior to the date set for the hearing. Money may not be spent for
13-24 any expense not included in the annual budget or an amendment to
13-25 the budget. The annual budget may be amended as necessary, but the
13-26 annual budget and all amendments to it must be approved by the
13-27 board of directors. As soon as practicable after the close of each
14-1 fiscal year, the administrator shall prepare for the board of
14-2 directors a full sworn statement of all money belonging to the
14-3 District and a full account of the disbursements of that money.
14-4 (c) Any person who is a taxpayer of the District shall have
14-5 the right to appear at the time and place designated in the notice
14-6 and be heard with reference to any item shown in the proposed
14-7 budget. The proposed budget shall also show the amount of taxes
14-8 required to be levied and collected during such fiscal year and
14-9 upon final approval of the budget, the board of directors shall
14-10 levy such tax as may be required and certify the tax rate for such
14-11 year to the county tax assessor and collector as provided in
14-12 Section 5 hereof, and it shall be the duty of the said tax assessor
14-13 and collector to assess and collect such tax.
14-14 SECTION 9. Section 9, Chapter 54, Acts of the 58th
14-15 Legislature, Regular Session, 1963, is amended to read as follows:
14-16 Sec. 9. A Hospital District organized in pursuance of this
14-17 Act shall have the right and power of eminent domain for the
14-18 purpose of acquiring by condemnation any and all property of any
14-19 kind or character, real, personal or mixed, or any interest
14-20 therein, including outright ownership of such property in fee
14-21 simple absolute, within the boundaries of the said District,
14-22 necessary or convenient to the exercise of the rights, power,
14-23 privileges and functions conferred upon it by this Act, in the
14-24 manner provided by General Law with respect to condemnation;
14-25 provided that the said District shall not be required to make
14-26 deposits in the registry of the trial court of the sum required by
14-27 Section 21.021, Property Code [Paragraph No. 2 in Article 3268,
15-1 Vernon's Annotated Civil Statutes, 1925], or to make the bond
15-2 required therein. In condemnation proceedings being prosecuted by
15-3 the said District, the District shall not be required to pay in
15-4 advance or to give bond or other security for costs in the trial
15-5 court, nor to give any bond otherwise required for the issuance of
15-6 a temporary restraining order or a temporary injunction relating to
15-7 a condemnation proceeding, nor to give bond for costs or for
15-8 supersedeas on any appeal or writ of error proceeding to any Court
15-9 of Civil Appeals, or to the Supreme Court.
15-10 SECTION 10. Section 10, Chapter 54, Acts of the 58th
15-11 Legislature, Regular Session, 1963, is amended to read as follows:
15-12 Sec. 10. (a) Within thirty (30) days after appointment and
15-13 qualification of the board of directors of a Hospital District, the
15-14 said directors shall by resolution designate a bank or banks
15-15 [within the county in which the District is located] as the
15-16 District's depository or treasurer [and all funds of the District
15-17 shall be secured in the manner now provided for the security of
15-18 county funds. The depository shall serve for a period of two (2)
15-19 years until a successor has been named].
15-20 (b) District money shall be deposited as received with the
15-21 depository bank or banks, except that sufficient money shall be
15-22 remitted to the bank or banks for the payment of principal of and
15-23 interest on the outstanding bonds of the District or other
15-24 obligations assumed by it. The District shall remit money for
15-25 payment of obligations so that the money is received on or before
15-26 the date of maturity of the principal and interest to be paid.
15-27 Money in the depository bank or banks that is not insured by the
16-1 Federal Deposit Insurance Corporation shall be secured in the
16-2 manner provided by law for security of county money. Membership on
16-3 the board of directors by an officer or director of a bank does not
16-4 disqualify that bank from being designated as depository.
16-5 SECTION 11. Sections 11-16, Chapter 54, Acts of the 58th
16-6 Legislature, Regular Session, 1963, are amended to read as follows:
16-7 Sec. 11. [The Hospital District established or maintained
16-8 under provisions of this Act shall be subject to inspection by any
16-9 duly authorized representative of the State Board of Health or any
16-10 State Board of Charities (or Public Welfare) that may hereafter be
16-11 created, and resident officers shall admit such representatives
16-12 into all Hospital District facilities and give them access on
16-13 demand to all records, reports, books, papers and accounts
16-14 pertaining to the Hospital District.]
16-15 [Sec. 12. Except as herein provided, Stonewall County, or any
16-16 city or town within the Hospital District, shall not levy any tax
16-17 against any property within the Hospital District for hospital
16-18 purposes; and such Hospital District shall assume full
16-19 responsibility for the furnishing of medical and hospital care for
16-20 the needy and indigent persons residing in said Hospital District
16-21 from the date that taxes are collected for the Hospital District.]
16-22 [Sec. 13.] Whenever a patient residing in the Hospital
16-23 District has been admitted to the facilities of the Hospital
16-24 District, the administrator [directors] shall cause inquiry to be
16-25 made as to the patient's [his] circumstances, and of the relatives
16-26 of such patient legally liable for the patient's [his] support. If
16-27 the administrator finds [they find] that such patient or said
17-1 relatives are liable to pay for the patient's [his] care and
17-2 treatment in whole or in part, an order shall be made directing
17-3 such patient, or said relatives, to pay to the treasurer of the
17-4 Hospital District for the support of such patient a specified sum
17-5 per week, in proportion to their financial ability[, but such sum
17-6 shall not exceed the actual per capita cost of maintenance]. The
17-7 administrator [District] shall have power and authority to collect
17-8 such sum from the estate of the patient, or the patient's [his]
17-9 relatives legally liable for the patient's [his] support, in the
17-10 manner provided by law for the collection of expenses of the last
17-11 illness of a deceased person. If the administrator [agent
17-12 designated by the District to handle such affairs] finds that such
17-13 patient or said relatives are not able to pay, either in whole or
17-14 in part, for the patient's [his] care and treatment in such
17-15 hospital, the amount the patient or relatives cannot pay [same]
17-16 shall become a charge upon the Hospital District. Should there be
17-17 a dispute as to the ability to pay, or doubt in the mind of the
17-18 administrator [person designated as aforesaid], the District's
17-19 directors shall hear and determine same, after calling witnesses,
17-20 and shall make such order as may be proper, from which appeal shall
17-21 lie to the District Court by either party to the dispute.
17-22 Sec. 12 [14]. Said board of directors of the Hospital
17-23 District is authorized on behalf of said Hospital District to
17-24 accept donations, gifts and endowments for the Hospital District to
17-25 be held in trust and administered by the board of directors for
17-26 such purposes and under such directions, limitations, and
17-27 provisions as may be prescribed in writing by donor, not
18-1 inconsistent with proper management and objects of Hospital
18-2 District.
18-3 Sec. 13 [15]. All bonds issued by or indebtedness assumed by
18-4 the District authorized to be established and created under the
18-5 provisions of this Act shall be and are declared to be legal and
18-6 authorized investments for banks, savings banks, trust companies,
18-7 building and loan associations, savings and loan associations,
18-8 insurance companies, fiduciaries, trustees, guardians, and for the
18-9 sinking funds of cities, towns, villages, counties, school
18-10 districts, or other political corporations or subdivisions of the
18-11 State of Texas and for all public funds of the state or its
18-12 agencies, including the state permanent school fund. The [; and
18-13 such] bonds and indebtedness are eligible to secure deposits of
18-14 public funds of the state and of municipalities, counties, school
18-15 districts, and other subdivisions or corporations of the state and
18-16 are [shall be] lawful and sufficient security for deposits to the
18-17 extent of their face value when accompanied by all unmatured
18-18 coupons appurtenant thereto.
18-19 Sec. 14 [16]. The Hospital District created under the
18-20 provisions of this Act shall be and is declared to be a political
18-21 subdivision of the State of Texas, and as a governmental agency may
18-22 sue and be sued in any and all courts of this State in the name of
18-23 such District.
18-24 SECTION 12. Chapter 54, Acts of the 58th Legislature,
18-25 Regular Session, 1963, is amended by adding Sections 15, 15A, and
18-26 15B to read as follows:
18-27 Sec. 15. (a) If the board of directors determines that money
19-1 is not available to meet the lawful obligations of the District and
19-2 that an emergency exists, the board of directors may borrow money
19-3 at a rate of interest not to exceed the maximum annual percentage
19-4 rate allowed by law for District obligations at the time of the
19-5 loan.
19-6 (b) To secure a loan, the board of directors may pledge:
19-7 (1) the revenues of the District that are not pledged
19-8 to pay the bond indebtedness of the District;
19-9 (2) tax revenue to be collected by the District during
19-10 the 12-month period following the date of the pledge that has not
19-11 been pledged to pay the principal of or interest on district bonds;
19-12 or
19-13 (3) District bonds that have been authorized but have
19-14 not been sold.
19-15 (c) A loan for which tax revenue or bonds are pledged shall
19-16 mature not later than the third anniversary of the date on which
19-17 the loan was made. A loan for which other District revenues are
19-18 pledged shall mature not later than the fifth anniversary of the
19-19 date on which the loan was made.
19-20 (d) The board of directors may not use loan proceeds
19-21 obtained under this section for any purpose other than the purpose
19-22 for which the board of directors determined an emergency existed.
19-23 If tax revenue or bonds are pledged to pay the loan, the board of
19-24 directors may not use the loan proceeds for a purpose other than
19-25 the purpose for which the taxes were levied or the bonds were
19-26 authorized.
19-27 Sec. 15A. (a) The board of directors may borrow money at a
20-1 rate of interest not to exceed the maximum annual percentage rate
20-2 allowed by law for District obligations at the time of the loan.
20-3 (b) To secure a loan, the board of directors may pledge:
20-4 (1) the revenues of the District that are not pledged
20-5 to pay the bond indebtedness of the District;
20-6 (2) tax revenue to be collected by the District during
20-7 the 12-month period following the date of the pledge that has not
20-8 been pledged to pay the principal of or interest on District bonds;
20-9 or
20-10 (3) District bonds that have been authorized but have
20-11 not been sold.
20-12 (c) A loan for which tax revenue or bonds are pledged shall
20-13 mature not later than the third anniversary of the date on which
20-14 the loan was made. A loan for which other District revenues are
20-15 pledged shall mature not later than the fifth anniversary of the
20-16 date on which the loan was made.
20-17 Sec. 15B. (a) The District may be dissolved only if the
20-18 dissolution is approved by a majority of the qualified voters of
20-19 the District voting in an election called and held for that
20-20 purpose.
20-21 (b) The board of directors may order an election on the
20-22 question of dissolving the District and disposing of the District's
20-23 assets and obligations. The board of directors shall order an
20-24 election if the board of directors receives a petition requesting
20-25 an election that is signed by a number of residents of the District
20-26 equal to at least 15 percent of the registered voters in the
20-27 District.
21-1 (c) The election shall be held not later than the 60th day
21-2 after the date the election is ordered. Section 41.001(a),
21-3 Election Code, does not apply to an election ordered under this
21-4 section. The order calling the election shall state:
21-5 (1) the nature of the election, including the
21-6 proposition that is to appear on the ballot;
21-7 (2) the date of the election;
21-8 (3) the hours during which the polls will be open; and
21-9 (4) the location of the polling places.
21-10 (d) The board of directors shall give notice of the election
21-11 by publishing the election order in a newspaper with general
21-12 circulation in the District once a week for two consecutive weeks.
21-13 The first publication must appear not less than 35 days before the
21-14 date set for the election. The ballot for the election shall be
21-15 printed to permit voting for or against the proposition: "The
21-16 dissolution of the Stonewall County Hospital District."
21-17 (e) If a majority of the votes in the election favor
21-18 dissolution, the board of directors shall find that the District is
21-19 dissolved. If a majority of the votes in the election do not favor
21-20 dissolution, the board of directors shall continue to administer
21-21 the District, and another election on the question of dissolution
21-22 may not be held before the first anniversary of the most recent
21-23 election to dissolve the District.
21-24 (f) If a majority of the votes in the election favor
21-25 dissolution, the board of directors shall:
21-26 (1) transfer the land, buildings, improvements,
21-27 equipment, and other assets that belong to the District to a county
22-1 or other governmental agency in Stonewall County;
22-2 (2) sell the assets and liabilities to another person
22-3 or entity; or
22-4 (3) administer the property, assets, and debts until
22-5 all money has been disposed of and all District debts have been
22-6 paid or settled.
22-7 (g) If the District transfers the land, buildings,
22-8 improvements, equipment, and other assets to a county or other
22-9 governmental agency, the county or agency assumes all debts and
22-10 obligations of the District at the time of the transfer, and the
22-11 District is dissolved.
22-12 (h) After the board of directors finds that the District is
22-13 dissolved, the board of directors shall:
22-14 (1) determine any remaining debt owed by the District;
22-15 and
22-16 (2) impose on the property included in the District's
22-17 tax rolls a tax that is in proportion of the debt to the property
22-18 value.
22-19 (i) When remaining outstanding debts and obligations of the
22-20 District are paid, the board of directors shall order the secretary
22-21 to return the pro rata share of all unused tax money to each
22-22 District taxpayer.
22-23 (j) A taxpayer may request that the taxpayer's share of
22-24 surplus tax money be credited to the taxpayer's county taxes. If a
22-25 taxpayer requests the credit, the board of directors shall direct
22-26 the secretary to transmit the money to the county tax
22-27 assessor-collector.
23-1 (k) After the District has paid all its debts and has
23-2 disposed of all its assets and money as prescribed by this section,
23-3 the board of directors shall file a written report with the
23-4 Commissioners Court of Stonewall County setting forth a summary of
23-5 the board of directors' actions in dissolving the District.
23-6 (l) Not later than the 10th day after the date it receives
23-7 the report and determines that the requirements of this section
23-8 have been fulfilled, the Commissioners Court of Stonewall County
23-9 shall enter an order dissolving the District and releasing the
23-10 board of directors of the District from any further duty or
23-11 obligation.
23-12 (m) The District may not be dissolved unless the board of
23-13 directors provides for the sale or transfer of the District's
23-14 assets and liabilities to another person or entity. The
23-15 dissolution of the District and the sale or transfer of the
23-16 District's assets and liabilities may not contravene a trust
23-17 indenture or bond resolution relating to the outstanding bonds of
23-18 the District. The dissolution and sale or transfer does not
23-19 diminish or impair the rights of a holder of an outstanding bond,
23-20 warrant, or other obligation of the District.
23-21 (n) The sale or transfer of the District's assets and
23-22 liabilities must satisfy the debt and bond obligations of the
23-23 District in a manner that protects the interests of the residents
23-24 of the District, including the residents' collective property
23-25 rights in the District's assets. A grant from federal funds is an
23-26 obligation to be repaid in satisfaction. The District may not
23-27 transfer or dispose of the District's assets except for due
24-1 compensation unless the transfer is made to a governmental agency
24-2 that serves the District and the transferred assets are to be used
24-3 for the benefit of the residents of the District.
24-4 SECTION 13. Chapter 54, Acts of the 58th Legislature,
24-5 Regular Session, 1963, is amended by adding Section 16 to read as
24-6 follows:
24-7 Sec. 16. The state may not become obligated for the support
24-8 or maintenance of the Stonewall County Hospital District created
24-9 under this Act, and the legislature may not make a direct
24-10 appropriation for the construction, maintenance, or improvement of
24-11 a facility of the District.
24-12 SECTION 14. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1512 was passed by the House on April
20, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1512 was passed by the Senate on May
15, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not
voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor