By Counts                                             H.B. No. 1512
         77R4039 JMG-D                           
                                A BILL TO BE ENTITLED
 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 consitutional oath of office [and shall execute a good and
 2-9     sufficient bond for One Thousand Dollars ($1,000) payable to said
2-10     District conditioned upon the faithful performance of his duties,
2-11     and such oaths and bonds shall be deposited with the depository
2-12     bank of the District for safekeeping].
2-13           (b)  The board of directors shall organize by electing one
2-14     (1) of their number as president and one (1) of their number as
2-15     vice president [secretary].  The directors shall also elect one
2-16     person who is not required to be a director to serve as secretary
2-17     and treasurer.  Each officer serves a one-year term.  Any three (3)
2-18     members of the board of directors shall constitute a quorum and a
2-19     concurrence of three (3) shall be sufficient in all matters
2-20     pertaining to the business of the District.  All vacancies in the
2-21     office of director shall be filled for the unexpired term by a
2-22     majority vote [appointment] of the remainder of the board of
2-23     directors.  In the event the number of directors shall be reduced
2-24     to less than three (3) for any reason, the remaining directors
2-25     shall immediately call a special election to fill said vacancies,
2-26     and upon failure to do so a district court may, upon application of
2-27     any qualified voter or taxpayer of the District, issue a mandate
 3-1     requiring that such election be ordered by the remaining directors.
 3-2           (c)  The board of directors shall order a [A] regular
 3-3     election of directors to [shall] be held on the first Saturday in
 3-4     May [April] of each year.  The board of directors shall issue the
 3-5     order at least 45 days before the date of the election.  The order
 3-6     must state the time, place, and purpose of the election.  The board
 3-7     of directors shall appoint the presiding judge, who shall appoint
 3-8     the assistant judge and the clerks as may be required.  Notice [and
 3-9     notice] of such election shall be published in a newspaper of
3-10     general circulation in the District [County] one (1) time at least
3-11     ten (10) days prior to the date of election.  Any person desiring
3-12     that person's [his] name to be printed on the ballot as a candidate
3-13     for director shall file an application [a petition, signed by not
3-14     less than twenty-five (25) qualified voters asking that such name
3-15     be printed on the ballot,] with the secretary of the board of
3-16     directors of the District[.  Such petition shall be filed with such
3-17     secretary] at least 31 [twenty-five (25)] days prior to the date of
3-18     election.
3-19           (d)  To be eligible to be a candidate for or to serve as a
3-20     director, a person must be a resident of the District and a
3-21     qualified voter.  An employee of the District may not serve as a
3-22     director.
3-23           SECTION 3.  Section 4, Chapter 54, Acts of the 58th
3-24     Legislature, Regular Session, 1963, is amended to read as follows:
3-25           Sec. 4. (a)  The management and control of each Hospital
3-26     District created pursuant to the provisions of this Act is hereby
3-27     vested in the board of directors of the District, who shall serve
 4-1     without compensation but may be reimbursed for actual expenses
 4-2     incurred in the performance of their official duties, provided the
 4-3     expenses are reported in the District's minutes and approved [upon
 4-4     the approval of such expenses] by the [entire] board of directors.
 4-5           (b)  The board of directors shall appoint a qualified person
 4-6     as administrator of the District and may appoint an assistant
 4-7     administrator.  The administrator and assistant administrator serve
 4-8     at the will of the board of directors.  The administrator and
 4-9     assistant administrator are entitled to compensation as determined
4-10     by the board of directors.  Before assuming the administrator's
4-11     duties, the administrator shall execute a bond payable to the
4-12     Hospital District in an amount of not less than $5,000 as
4-13     determined by the board of directors, conditioned on the faithful
4-14     performance of the administrator's duties under this Act and any
4-15     other condition the board of directors may prescribe.  The board of
4-16     directors may pay for the bond with District funds.
4-17           (c)  The administrator shall supervise the work and
4-18     activities of the District and direct the general affairs of the
4-19     District, subject to the limitations prescribed by the board of
4-20     directors.
4-21           (d)  The District may appoint physicians to the staff and
4-22     employ technicians, nurses, fiscal agents, accountants, architects,
4-23     attorneys, and other necessary employees.  The board of directors
4-24     may delegate to the administrator the authority to employ persons
4-25     for the District.
4-26           (e)  The board of directors may contract with any other
4-27     public or private entity, including the federal government, this
 5-1     state, a county, a municipality, a hospital district, or any other
 5-2     political subdivision, or a charitable organization, to provide
 5-3     health care or related services inside or outside the District.
 5-4           (f)  The board of directors shall determine the type, number,
 5-5     and location of buildings required to establish and maintain an
 5-6     adequate hospital system and the type of equipment necessary for
 5-7     hospital care.  The board of directors may establish and equip a
 5-8     clinic as part of the hospital system.
 5-9           (g)  The board of directors may acquire property, facilities,
5-10     and equipment for the District for use in the hospital system or
5-11     mortgage or pledge the property, facilities, or equipment acquired
5-12     as security for the payment of the purchase price.  The board of
5-13     directors may transfer by lease to individuals, companies,
5-14     corporations, or other legal entities or acquire by lease District
5-15     hospital facilities and sell or otherwise dispose of District
5-16     property, facilities, or equipment.
5-17           (h)  The board of directors may enter into operating or
5-18     management contracts relating to hospital facilities.  The term of
5-19     a contract may not exceed 25 years from the date the contract is
5-20     entered into.
5-21           (i)  The board of directors may provide retirement benefits
5-22     for employees of the District by establishing or administering a
5-23     retirement program or electing to participate in the Texas County
5-24     and District Retirement System or in any other statewide retirement
5-25     system in which the District is eligible to participate.
5-26           (j)  The board of directors may spend District funds to
5-27     recruit physicians, nurses, and other trained medical personnel.
 6-1           (k)  The board of directors may institute a suit to enforce
 6-2     the payment of taxes and to foreclose liens to secure the payment
 6-3     of taxes due to the District.
 6-4           (l)  The board of directors may provide or contract for the
 6-5     provision of educational programs or courses for employees and
 6-6     medical staff of the District.
 6-7           (m)  The board of directors may institute a suit to collect
 6-8     amounts owed the District by patients who have not been determined
 6-9     to be unable to pay under Section 11 of this Act.
6-10           SECTION 4.  Section 5, Chapter 54, Acts of the 58th
6-11     Legislature, Regular Session, 1963, is amended to read as follows:
6-12           Sec. 5. (a)  The [Upon the creation of such Hospital
6-13     District, the] board of directors [shall have the power and
6-14     authority and it] shall annually [be their duty to] levy on all
6-15     property subject to hospital district taxation for the benefit of
6-16     the District [at the same time taxes are levied for County
6-17     purposes, using the County values and the County tax roll,] a tax
6-18     in an amount not to exceed the limit approved by the voters.  The
6-19     tax rate for all purposes may not [of not to] exceed Seventy-five
6-20     Cents (75 ) on the One Hundred Dollars valuation of all taxable
6-21     property within the Hospital District, for the purpose of:  (1)
6-22     paying the indebtedness assumed or [interest on and creating a
6-23     sinking fund for bonds which may be] issued by the Hospital
6-24     District [for hospital purposes as herein provided]; (2) providing
6-25     for the operation and maintenance of the Hospital District and
6-26     hospital system; and (3) for the purpose of making further
6-27     improvements and additions to the hospital system, and for the
 7-1     acquisition of necessary sites therefor, by purchase, lease or
 7-2     condemnation.
 7-3           (b)  The district may not impose taxes to pay the principal
 7-4     of or interest on revenue bonds issued by the district.
 7-5           (c)  The Tax Code governs the appraisal, assessment, and
 7-6     collection of District taxes.  The board of directors may provide
 7-7     for the appointment of a tax assessor-collector for the District or
 7-8     may contract for the assessment and collection of taxes as provided
 7-9     by the Tax Code.  [Not later than October 1st of each year, the
7-10     board of directors shall levy the tax on all taxable property
7-11     within the District which is subject to taxation and shall
7-12     immediately certify such tax rate to the tax assessor and collector
7-13     of the county in which the District is located.  The tax so levied
7-14     shall be collected on all property subject to hospital district
7-15     taxation by the assessor and collector of taxes for the county on
7-16     the county tax values, and in the same manner and under the same
7-17     conditions as county taxes.  The assessor and collector of taxes
7-18     shall charge and deduct from payments to the Hospital District the
7-19     fees for assessing and collecting the tax at the rate of not
7-20     exceeding one per cent (1%) of the amounts collected as may be
7-21     determined by the board of directors but in no event in excess of
7-22     Five Thousand Dollars ($5,000) for any one (1) fiscal year.  Such
7-23     fees shall be deposited in the county's general fund, and shall be
7-24     reported as fees of office of the tax assessor and collector.
7-25     Interest and penalties on taxes paid to the Hospital District shall
7-26     be the same as in the case of county taxes.  Discounts shall be the
7-27     same as for county taxes.  The residue of tax collections, after
 8-1     deduction of discounts and fees for assessing and collecting, shall
 8-2     be deposited in the District depository; and such funds shall be
 8-3     withdrawn only as provided herein.  All other income of the
 8-4     Hospital District shall be deposited in like manner with the
 8-5     District depository.]
 8-6           [The board of directors shall have the authority to levy the
 8-7     tax aforesaid for the entire year in which the said Hospital
 8-8     District is established, for the purpose of securing funds to
 8-9     initiate the operation of the Hospital District.]
8-10           SECTION 5.  Section 6, Chapter 54, Acts of the 58th
8-11     Legislature, Regular Session, 1963, is amended to read as follows:
8-12           Sec. 6. (a)  The board of directors may issue and sell bonds
8-13     authorized by an election in the name and on the faith and credit
8-14     of the Hospital District to purchase, construct, acquire, repair,
8-15     or renovate buildings or improvements, equip buildings or
8-16     improvements for hospital purposes, or acquire and operate a mobile
8-17     emergency medical or air ambulance service.
8-18           (b)  At the time the bonds are issued by the District, the
8-19     board of directors shall levy a tax.  The tax must be sufficient to
8-20     create an interest and sinking fund to pay the principal of and
8-21     interest on the bonds as they mature.  In any year, the tax
8-22     together with any other tax the District levies may not exceed the
8-23     limit approved by the voters at the election authorizing the levy
8-24     of taxes.
8-25           (c)  The District may issue general obligation bonds only if
8-26     the bonds are authorized by a majority of the qualified voters of
8-27     the District voting at an election called and held for that
 9-1     purpose.  The board of directors may order a bond election.
 9-2           (d)  The bond election shall be conducted as provided by
 9-3     Chapter 1251, Government Code.
 9-4           (e)  Bonds of the district shall bear interest not to exceed
 9-5     six percent per year, mature within 40 years of their date, be
 9-6     executed in the name of the Hospital District and in its behalf by
 9-7     the president of the board of directors and countersigned by the
 9-8     secretary in the manner provided by Chapter 618, Government Code
 9-9     (Uniform Facsimile Signature of Public Officials Act), and shall be
9-10     subject to the same requirements in the matter of approval by the
9-11     attorney general and registration by the comptroller as are by law
9-12     provided for approval and registration of bonds issued by counties.
9-13     Upon the approval of such bonds by the attorney general and
9-14     registration by the comptroller, the bonds shall be incontestable
9-15     for any cause.  [The board of directors shall have the power and
9-16     authority to issue and sell as the obligations of such Hospital
9-17     District, and in the name and upon the faith and credit of such
9-18     Hospital District, bonds for the purchase, construction,
9-19     acquisition, repair or renovation of buildings and improvements and
9-20     equipping the same for hospital purposes and for any or all of such
9-21     purposes; provided, that a sufficient tax shall be levied to create
9-22     an interest and sinking fund to pay the interest and principal as
9-23     same matures providing said tax together with any other taxes
9-24     levied for said District shall not exceed Seventy-five Cents (75 )
9-25     and any one (1) year.  Such bonds shall be executed in the name of
9-26     the Hospital District and on its behalf by the president of the
9-27     board of directors, and countersigned by the secretary of the board
 10-1    of directors, and shall be subject to the same requirements in the
 10-2    matter of approval thereof by the Attorney General of the State of
 10-3    Texas and the registration thereof by the Comptroller of Public
 10-4    Accounts of the State of Texas as are by law provided for such
 10-5    approval and registration of bonds of counties of this State.  Upon
 10-6    the approval of such bonds by the Attorney General of Texas and
 10-7    registration by the Comptroller the same shall be incontestable for
 10-8    any cause.  No bonds shall be issued by such Hospital District
 10-9    (except refunding bonds) until authorized by a majority vote of the
10-10    legally qualified property taxpaying electors, residing in such
10-11    Hospital District, voting at an election called and held for such
10-12    purpose.  Such election may be called by the board of directors on
10-13    its own motion, and the order calling said election shall specify
10-14    the date of the election, the place or places where the election
10-15    shall be held, the presiding officers thereof, the purpose for
10-16    which the bonds are to be issued, the amount thereof, maximum
10-17    interest rate (not to exceed six per cent (6%) per annum) and the
10-18    maximum maturity date of such bonds (not to exceed forty (40) years
10-19    from their date of issuance).  Notice of election shall be given by
10-20    publishing a substantial copy of the order calling the election in
10-21    a newspaper of general circulation in such County once a week for
10-22    two (2) consecutive weeks prior to the date of election, the date
10-23    of the first publication being at least fourteen (14) full days
10-24    prior to the date set for the election.  The cost of such election
10-25    shall be paid by the Hospital District.]
10-26          [The bonds of the District may be made optional for
10-27    redemption prior to their maturity date at the discretion of the
 11-1    board of directors.]
 11-2          [The District may without an election issue the bonds to
 11-3    refund and pay off any validly issued and outstanding bonds
 11-4    heretofore issued by the District, provided any such refund bonds
 11-5    shall bear interest at the same rate or at a lesser rate than the
 11-6    bonds being refunded unless it be shown mathematically that a
 11-7    savings will result in the total amount of interest to be paid.]
 11-8          SECTION 6.  Chapter 54, Acts of the 58th Legislature, Regular
 11-9    Session, 1963, is amended by adding Section 6A to read as follows:
11-10          Sec. 6A.  (a)  The board of directors may issue revenue bonds
11-11    to purchase, construct, acquire, repair, equip, or renovate
11-12    buildings or improvements for hospital purposes, acquire sites to
11-13    be used for hospital purposes, or acquire and operate a mobile
11-14    emergency medical or air ambulance service to assist the District
11-15    in carrying out its hospital purposes.
11-16          (b)  The bonds must be payable from and secured by a pledge
11-17    of all or part of the revenues derived from the operation of the
11-18    District's hospital system.  The bonds may be additionally secured
11-19    by a mortgage or deed of trust lien on all or part of District
11-20    property.
11-21          (c)  The bonds must be issued in the manner provided by
11-22    Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
11-23    Health and Safety Code, for issuance of revenue bonds by county
11-24    hospital authorities.
11-25          SECTION 7.  Section 7, Chapter 54, Acts of the 58th
11-26    Legislature, Regular Session, 1963, is amended to read as follows:
11-27          Sec. 7.  (a)  The board of directors of such District shall
 12-1    have the power to prescribe the method and manner of making
 12-2    purchases and expenditures by and for such Hospital District, and
 12-3    also shall prescribe all accounting and control procedures; the
 12-4    method of purchasing necessary supplies, materials and equipment;
 12-5    and shall have the power to adopt a seal for such District[; and
 12-6    may employ a general manager, attorney, bookkeeper, architect, and
 12-7    any other employees deemed necessary for the efficient operation of
 12-8    the Hospital District].  The District shall comply with the bidding
 12-9    requirements of Chapter 271, Local Government Code.  Except as
12-10    permitted by this Act, the District may not incur an obligation
12-11    payable from any revenue of the District except revenue currently
12-12    held by the District or revenue that will be held by the District
12-13    in the then current fiscal year of the District.
12-14          (b)  All books, records, accounts, notices and minutes and
12-15    all other matters of the District and the operation of its
12-16    facilities shall, except as herein provided, be maintained at the
12-17    office of the District and there be open to public inspection at
12-18    all reasonable hours.
12-19          (c)  The board of directors is specifically empowered to
12-20    adopt rules and regulations governing the operation of such
12-21    District and its facilities which rules and regulations shall
12-22    supplement but shall not contravene any of the provisions of this
12-23    Act.  Such rules and regulations may, upon approval of the board of
12-24    directors, be published in booklet or pamphlet form at the expense
12-25    of the District and may be made available to any taxpayer upon
12-26    request.
12-27          SECTION 8.  Section 8, Chapter 54, Acts of the 58th
 13-1    Legislature, Regular Session, 1963, is amended to read as follows:
 13-2          Sec. 8.  (a)  The District operates on the fiscal year
 13-3    established by the board of directors.  The fiscal year may not be
 13-4    changed if revenue bonds of the District are outstanding or more
 13-5    than once in a 24-month period.  [The fiscal year of the Hospital
 13-6    District authorized to be established by the provisions hereof
 13-7    shall commence on October 1st of each year and end on the 30th day
 13-8    of September of the following year.]  The district directors shall
 13-9    cause an annual [independent] audit to be made of the books and
13-10    records of the District, such audit to be made covering such fiscal
13-11    year[, and the same shall be filed with the Comptroller of Public
13-12    Accounts of the State of Texas and at the office of the District
13-13    not later than December 31st of each year].  The annual audit and
13-14    other District records are open to inspection during regular
13-15    business hours at the principal office of the District.
13-16          (b)  The board of directors shall each year cause a budget to
13-17    be prepared showing the proposed expenditures and disbursements and
13-18    the estimated receipts and collections for the following fiscal
13-19    year and shall hold a public hearing on the proposed budget after
13-20    publication of a notice of hearing in a newspaper of general
13-21    circulation in the County at least once not less than ten (10) days
13-22    prior to the date set for the hearing.  Money may not be spent for
13-23    any expense not included in the annual budget or an amendment to
13-24    the budget.  The annual budget may be amended as necessary, but the
13-25    annual budget and all amendments to it must be approved by the
13-26    board of directors.  As soon as practicable after the close of each
13-27    fiscal year, the administrator shall prepare for the board of
 14-1    directors a full sworn statement of all money belonging to the
 14-2    District and a full account of the disbursements of that money.
 14-3          (c)  Any person who is a taxpayer of the District shall have
 14-4    the right to appear at the time and place designated in the notice
 14-5    and be heard with reference to any item shown in the proposed
 14-6    budget.  The proposed budget shall also show the amount of taxes
 14-7    required to be levied and collected during such fiscal year and
 14-8    upon final approval of the budget, the board of directors shall
 14-9    levy such tax as may be required and certify the tax rate for such
14-10    year to the county tax assessor and collector as provided in
14-11    Section 5 hereof, and it shall be the duty of the said tax assessor
14-12    and collector to assess and collect such tax.
14-13          SECTION 9. Section 9, Chapter 54, Acts of the 58th
14-14    Legislature, Regular Session, 1963, is amended to read as follows:
14-15          Sec. 9. A Hospital District organized in pursuance of this
14-16    Act shall have the right and power of eminent domain for the
14-17    purpose of acquiring by condemnation any and all property of any
14-18    kind or character, real, personal or mixed, or any interest
14-19    therein, including outright ownership of such property in fee
14-20    simple absolute, within the boundaries of the said District,
14-21    necessary or convenient to the exercise of the rights, power,
14-22    privileges and functions conferred upon it by this Act, in the
14-23    manner provided by General Law with respect to condemnation;
14-24    provided that the said District shall not be required to make
14-25    deposits in the registry of the trial court of the sum required by
14-26    Section 21.021, Property Code [Paragraph No. 2 in Article 3268,
14-27    Vernon's Annotated Civil Statutes, 1925], or to make the bond
 15-1    required therein.  In condemnation proceedings being prosecuted by
 15-2    the said District, the District shall not be required to pay in
 15-3    advance or to give bond or other security for costs in the trial
 15-4    court, nor to give any bond otherwise required for the issuance of
 15-5    a temporary restraining order or a temporary injunction relating to
 15-6    a condemnation proceeding, nor to give bond for costs or for
 15-7    supersedeas on any appeal or writ of error proceeding to any Court
 15-8    of Civil Appeals, or to the Supreme Court.
 15-9          SECTION 10.  Section 10, Chapter 54, Acts of the 58th
15-10    Legislature, Regular Session, 1963, is amended to read as follows:
15-11          Sec. 10. (a)  Within thirty (30) days after appointment and
15-12    qualification of the board of directors of a Hospital District, the
15-13    said directors shall by resolution designate a bank or banks
15-14    [within the county in which the District is located] as the
15-15    District's depository or treasurer [and all funds of the District
15-16    shall be secured in the manner now provided for the security of
15-17    county funds.  The depository shall serve for a period of two (2)
15-18    years until a successor has been named].
15-19          (b)  District money shall be deposited as received with the
15-20    depository bank or banks, except that sufficient money shall be
15-21    remitted to the bank or banks for the payment of principal of and
15-22    interest on the outstanding bonds of the District or other
15-23    obligations assumed by it.  The District shall remit money for
15-24    payment of obligations so that the money is received on or before
15-25    the date of maturity of the principal and interest to be paid.
15-26    Money in the depository bank or banks that is not insured by the
15-27    Federal Deposit Insurance Corporation shall be secured in the
 16-1    manner provided by law for security of county money. Membership on
 16-2    the board of directors by an officer or director of a bank does not
 16-3    disqualify that bank from being designated as depository.
 16-4          SECTION 11.  Sections 11-16, Chapter 54, Acts of the 58th
 16-5    Legislature, Regular Session, 1963, are amended to read as follows:
 16-6          Sec. 11. [The Hospital District established or maintained
 16-7    under provisions of this Act shall be subject to inspection by any
 16-8    duly authorized representative of the State Board of Health or any
 16-9    State Board of Charities (or Public Welfare) that may hereafter be
16-10    created, and resident officers shall admit such representatives
16-11    into all Hospital District facilities and give them access on
16-12    demand to all records, reports, books, papers and accounts
16-13    pertaining to the Hospital District.]
16-14          [Sec. 12. Except as herein provided, Stonewall County, or any
16-15    city or town within the Hospital District, shall not levy any tax
16-16    against any property within the Hospital District for hospital
16-17    purposes; and such Hospital District shall assume full
16-18    responsibility for the furnishing of medical and hospital care for
16-19    the needy and indigent persons residing in said Hospital District
16-20    from the date that taxes are collected for the Hospital District.]
16-21          [Sec. 13.] Whenever a patient residing in the Hospital
16-22    District has been admitted to the facilities of the Hospital
16-23    District, the administrator [directors] shall cause inquiry to be
16-24    made as to the patient's [his] circumstances, and of the relatives
16-25    of such patient legally liable for the patient's [his] support.  If
16-26    the administrator finds [they find] that such patient or said
16-27    relatives are liable to pay for the patient's [his] care and
 17-1    treatment in whole or in part, an order shall be made directing
 17-2    such patient, or said relatives, to pay to the treasurer of the
 17-3    Hospital District for the support of such patient a specified sum
 17-4    per week, in proportion to their financial ability[, but such sum
 17-5    shall not exceed the actual per capita cost of maintenance].  The
 17-6    administrator [District] shall have power and authority to collect
 17-7    such sum from the estate of the patient, or the patient's [his]
 17-8    relatives legally liable for the patient's [his] support, in the
 17-9    manner provided by law for the collection of expenses of the last
17-10    illness of a deceased person.  If the administrator [agent
17-11    designated by the District to handle such affairs] finds that such
17-12    patient or said relatives are not able to pay, either in whole or
17-13    in part, for the patient's [his] care and treatment in such
17-14    hospital, the amount the patient or relatives cannot pay [same]
17-15    shall become a charge upon the Hospital District.  Should there be
17-16    a dispute as to the ability to pay, or doubt in the mind of the
17-17    administrator [person designated as aforesaid], the District's
17-18    directors shall hear and determine same, after calling witnesses,
17-19    and shall make such order as may be proper, from which appeal shall
17-20    lie to the District Court by either party to the dispute.
17-21          Sec. 12 [14]. Said board of directors of the Hospital
17-22    District is authorized on behalf of said Hospital District to
17-23    accept donations, gifts and endowments for the Hospital District to
17-24    be held in trust and administered by the board of directors for
17-25    such purposes and under such directions, limitations, and
17-26    provisions as may be prescribed in writing by donor, not
17-27    inconsistent with proper management and objects of Hospital
 18-1    District.
 18-2          Sec. 13 [15]. All bonds issued by or indebtedness assumed by
 18-3    the District authorized to be established and created under the
 18-4    provisions of this Act shall be and are declared to be legal and
 18-5    authorized investments for banks, savings banks, trust companies,
 18-6    building and loan associations, savings and loan associations,
 18-7    insurance companies, fiduciaries, trustees, guardians, and for the
 18-8    sinking funds of cities, towns, villages, counties, school
 18-9    districts, or other political corporations or subdivisions of the
18-10    State of Texas and for all public funds of the state or its
18-11    agencies, including the state permanent school fund.  The [; and
18-12    such] bonds and indebtedness are eligible to secure deposits of
18-13    public funds of the state and of municipalities, counties, school
18-14    districts, and other subdivisions or corporations of the state and
18-15    are [shall be] lawful and sufficient security for deposits to the
18-16    extent of their face value when accompanied by all unmatured
18-17    coupons appurtenant thereto.
18-18          Sec. 14 [16]. The Hospital District created under the
18-19    provisions of this Act shall be and is declared to be a political
18-20    subdivision of the State of Texas, and as a governmental agency may
18-21    sue and be sued in any and all courts of this State in the name of
18-22    such District.
18-23          SECTION 12.  Chapter 54, Acts of the 58th Legislature,
18-24    Regular Session, 1963, is amended by adding Sections 15, 15A, and
18-25    15B to read as follows:
18-26          Sec. 15. (a)  If the board of directors determines that money
18-27    is not available to meet the lawful obligations of the District and
 19-1    that an emergency exists, the board of directors may borrow money
 19-2    at a rate of interest not to exceed the maximum annual percentage
 19-3    rate allowed by law for District obligations at the time of the
 19-4    loan.
 19-5          (b)  To secure a loan, the board of directors may pledge:
 19-6                (1)  the revenues of the District that are not pledged
 19-7    to pay the bond indebtedness of the District;
 19-8                (2)  tax revenue to be collected by the District during
 19-9    the 12-month period following the date of the pledge that has not
19-10    been pledged to pay the principal of or interest on district bonds;
19-11    or
19-12                (3)  District bonds that have been authorized but have
19-13    not been sold.
19-14          (c)  A loan for which tax revenue or bonds are pledged shall
19-15    mature not later than the third anniversary of the date on which
19-16    the loan was made.  A loan for which other District revenues are
19-17    pledged shall mature not later than the fifth anniversary of the
19-18    date on which the loan was made.
19-19          (d)  The board of directors may not use loan proceeds
19-20    obtained under this section for any purpose other than the purpose
19-21    for which the board of directors determined an emergency existed.
19-22    If tax revenue or bonds are pledged to pay the loan, the board of
19-23    directors may not use the loan proceeds for a purpose other than
19-24    the purpose for which the taxes were levied or the bonds were
19-25    authorized.
19-26          Sec. 15A. (a)  The board of directors may borrow money at a
19-27    rate of interest not to exceed the maximum annual percentage rate
 20-1    allowed by law for District obligations at the time of the loan.
 20-2          (b)  To secure a loan, the board of directors may pledge:
 20-3                (1)  the revenues of the District that are not pledged
 20-4    to pay the bond indebtedness of the District;
 20-5                (2)  tax revenue to be collected by the District during
 20-6    the 12-month period following the date of the pledge that has not
 20-7    been pledged to pay the principal of or interest on District bonds;
 20-8    or
 20-9                (3)  District bonds that have been authorized but have
20-10    not been sold.
20-11          (c)  A loan for which tax revenue or bonds are pledged shall
20-12    mature not later than the third anniversary of the date on which
20-13    the loan was made.  A loan for which other District revenues are
20-14    pledged shall mature not later than the fifth anniversary of the
20-15    date on which the loan was made.
20-16          Sec. 15B. (a)  The District may be dissolved only if the
20-17    dissolution is approved by a majority of the qualified voters of
20-18    the District voting in an election called and held for that
20-19    purpose.
20-20          (b)  The board of directors may order an election on the
20-21    question of dissolving the District and disposing of the District's
20-22    assets and obligations.  The board of directors shall order an
20-23    election if the board of directors receives a petition requesting
20-24    an election that is signed by a number of residents of the District
20-25    equal to at least 15 percent of the registered voters in the
20-26    District.
20-27          (c)  The election shall be held not later than the 60th day
 21-1    after the date the election is ordered.  Section 41.001(a),
 21-2    Election Code, does not apply to an election ordered under this
 21-3    section.  The order calling the election shall state:
 21-4                (1)  the nature of the election, including the
 21-5    proposition that is to appear on the ballot;
 21-6                (2)  the date of the election;
 21-7                (3)  the hours during which the polls will be open; and
 21-8                (4)  the location of the polling places.
 21-9          (d)  The board of directors shall give notice of the election
21-10    by publishing the election order in a newspaper with general
21-11    circulation in the District once a week for two consecutive weeks.
21-12    The first publication must appear not less than 35 days before the
21-13    date set for the election.  The ballot for the election shall be
21-14    printed to permit voting for or against the proposition:  "The
21-15    dissolution of the Stonewall County Hospital District."
21-16          (e)  If a majority of the votes in the election favor
21-17    dissolution, the board of directors shall find that the District is
21-18    dissolved.  If a majority of the votes in the election do not favor
21-19    dissolution, the board of directors shall continue to administer
21-20    the District, and another election on the question of dissolution
21-21    may not be held before the first anniversary of the most recent
21-22    election to dissolve the District.
21-23          (f)  If a majority of the votes in the election favor
21-24    dissolution, the board of directors shall:
21-25                (1)  transfer the land, buildings, improvements,
21-26    equipment, and other assets that belong to the District to a county
21-27    or other governmental agency in Stonewall County;
 22-1                (2)  sell the assets and liabilities to another person
 22-2    or entity; or
 22-3                (3)  administer the property, assets, and debts until
 22-4    all money has been disposed of and all District debts have been
 22-5    paid or settled.
 22-6          (g)  If the District transfers the land, buildings,
 22-7    improvements, equipment, and other assets to a  county or other
 22-8    governmental agency, the county or agency assumes all debts and
 22-9    obligations of the District at the time of the transfer, and the
22-10    District is dissolved.
22-11          (h)  After the board of directors finds that the District is
22-12    dissolved, the board of directors shall:
22-13                (1)  determine any remaining debt owed by the District;
22-14    and
22-15                (2)  impose on the property included in the District's
22-16    tax rolls a tax that is in proportion of the debt to the property
22-17    value.
22-18          (i)  When remaining outstanding debts and obligations of the
22-19    District are paid, the board of directors shall order the secretary
22-20    to return the pro rata share of all unused tax money to each
22-21    District taxpayer.
22-22          (j)  A taxpayer may request that the taxpayer's share of
22-23    surplus tax money be credited to the taxpayer's county taxes.  If a
22-24    taxpayer requests the credit, the board of directors shall direct
22-25    the secretary to transmit the money to the county tax
22-26    assessor-collector.
22-27          (k)  After the District has paid all its debts and has
 23-1    disposed of all its assets and money as prescribed by this section,
 23-2    the board of directors shall file a written report with the
 23-3    Commissioners Court of Stonewall County setting forth a summary of
 23-4    the board of directors' actions in dissolving the District.
 23-5          (l)  Not later than the 10th day after the date it receives
 23-6    the report and determines that the requirements of this section
 23-7    have been fulfilled, the Commissioners Court of Stonewall County
 23-8    shall enter an order dissolving the District and releasing the
 23-9    board of directors of the District from any further duty or
23-10    obligation.
23-11          (m)  The District may not be dissolved unless the board of
23-12    directors provides for the sale or transfer of the District's
23-13    assets and liabilities to another person or entity.  The
23-14    dissolution of the District and the sale or transfer of the
23-15    District's assets and liabilities may not contravene a trust
23-16    indenture or bond resolution relating to the outstanding bonds of
23-17    the District.  The dissolution and sale or transfer does not
23-18    diminish or impair the rights of a holder of an outstanding bond,
23-19    warrant, or other obligation of the District.
23-20          (n)  The sale or transfer of the District's assets and
23-21    liabilities must satisfy the debt and bond obligations of the
23-22    District in a manner that protects the interests of the residents
23-23    of the District, including the residents' collective property
23-24    rights in the District's assets.  A grant from federal funds is an
23-25    obligation to be repaid in satisfaction.  The District may not
23-26    transfer or dispose of the District's assets except for due
23-27    compensation unless the transfer is made to a governmental agency
 24-1    that serves the District and the transferred assets are to be used
 24-2    for the benefit of the residents of the District.
 24-3          SECTION 13.  Chapter 54, Acts of the 58th Legislature,
 24-4    Regular Session, 1963, is amended by adding Section 16 to read as
 24-5    follows:
 24-6          Sec. 16. The state may not become obligated for the support
 24-7    or maintenance of the Stonewall County Hospital District created
 24-8    under this Act, and the legislature may not make a direct
 24-9    appropriation for the construction, maintenance, or improvement of
24-10    a facility of the District.
24-11          SECTION 14.  This Act takes effect September 1, 2001.
24-12                         COMMITTEE AMENDMENT NO. 1
24-13          Amend H.B. No. 1512, on page 6, by striking lines 13 and 14
24-14    and substituting "[District, the] board of directors may annually
24-15    [shall have the power and authority and it shall be their duty to]
24-16    levy on all".
24-17    77R7903 JMG-D                                      Lewis of Tarrant