1-1 By: Counts (Senate Sponsor - Haywood) H.B. No. 1512
1-2 (In the Senate - Received from the House April 23, 2001;
1-3 April 24, 2001, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 4, 2001, reported favorably by the
1-5 following vote: Yeas 6, Nays 0; May 4, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the powers and duties of Stonewall County Hospital
1-9 District.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Chapter 54, Acts of the 58th Legislature, Regular
1-12 Session, 1963, is amended by adding Section 2A to read as follows:
1-13 Sec. 2A. A county, municipality, or other governmental
1-14 entity in which the District is located may not levy taxes or issue
1-15 bonds or other obligations for hospital purposes or for providing
1-16 medical care for the residents of the District.
1-17 SECTION 2. Section 3, Chapter 54, Acts of the 58th
1-18 Legislature, Regular Session, 1963, is amended to read as follows:
1-19 Sec. 3. (a) Within ten (10) days after such election is held
1-20 the Commissioners Court in such County shall convene and canvass
1-21 the returns of the election, and if a majority of the qualified
1-22 property taxpaying electors voting at said election voted in favor
1-23 of the proposition, the Court shall so find and declare the
1-24 Hospital District established and created and appoint five (5)
1-25 persons as directors of the Hospital District to serve until the
1-26 first Saturday in April following the creation and establishment of
1-27 the District at which time five (5) directors shall be elected.
1-28 The three (3) directors receiving the highest vote at such first
1-29 election shall serve for two (2) years, the other two (2) directors
1-30 shall serve for one year. Thereafter, all directors shall serve
1-31 for a period of two (2) years and until their successor has been
1-32 duly elected or appointed and qualified. [No person shall be
1-33 appointed or elected as a member of the board of directors of said
1-34 Hospital District unless he is a resident thereof and owns land
1-35 subject to taxation therein and unless at the time of such election
1-36 or appointment he shall be more than twenty-one (21) years of age.]
1-37 Each member of the board of directors shall qualify by executing
1-38 the constitutional [consitutional] oath of office [and shall
1-39 execute a good and sufficient bond for One Thousand Dollars
1-40 ($1,000) payable to said District conditioned upon the faithful
1-41 performance of his duties, and such oaths and bonds shall be
1-42 deposited with the depository bank of the District for
1-43 safekeeping].
1-44 (b) The board of directors shall organize by electing one
1-45 (1) of their number as president and one (1) of their number as
1-46 vice president [secretary]. The directors shall also elect one
1-47 person who is not required to be a director to serve as secretary
1-48 and treasurer. Each officer serves a one-year term. Any three (3)
1-49 members of the board of directors shall constitute a quorum and a
1-50 concurrence of three (3) shall be sufficient in all matters
1-51 pertaining to the business of the District. All vacancies in the
1-52 office of director shall be filled for the unexpired term by a
1-53 majority vote [appointment] of the remainder of the board of
1-54 directors. In the event the number of directors shall be reduced
1-55 to less than three (3) for any reason, the remaining directors
1-56 shall immediately call a special election to fill said vacancies,
1-57 and upon failure to do so a district court may, upon application of
1-58 any qualified voter or taxpayer of the District, issue a mandate
1-59 requiring that such election be ordered by the remaining directors.
1-60 (c) The board of directors shall order a [A] regular
1-61 election of directors to [shall] be held on the first Saturday in
1-62 May [April] of each year. The board of directors shall issue the
1-63 order at least 45 days before the date of the election. The order
1-64 must state the time, place, and purpose of the election. The board
2-1 of directors shall appoint the presiding judge, who shall appoint
2-2 the assistant judge and the clerks as may be required. Notice [and
2-3 notice] of such election shall be published in a newspaper of
2-4 general circulation in the District [County] one (1) time at least
2-5 ten (10) days prior to the date of election. Any person desiring
2-6 that person's [his] name to be printed on the ballot as a candidate
2-7 for director shall file an application [a petition, signed by not
2-8 less than twenty-five (25) qualified voters asking that such name
2-9 be printed on the ballot,] with the secretary of the board of
2-10 directors of the District[. Such petition shall be filed with such
2-11 secretary] at least 31 [twenty-five (25)] days prior to the date of
2-12 election.
2-13 (d) To be eligible to be a candidate for or to serve as a
2-14 director, a person must be a resident of the District and a
2-15 qualified voter. An employee of the District may not serve as a
2-16 director.
2-17 SECTION 3. Section 4, Chapter 54, Acts of the 58th
2-18 Legislature, Regular Session, 1963, is amended to read as follows:
2-19 Sec. 4. (a) The management and control of each Hospital
2-20 District created pursuant to the provisions of this Act is hereby
2-21 vested in the board of directors of the District, who shall serve
2-22 without compensation but may be reimbursed for actual expenses
2-23 incurred in the performance of their official duties, provided the
2-24 expenses are reported in the District's minutes and approved [upon
2-25 the approval of such expenses] by the [entire] board of directors.
2-26 (b) The board of directors shall appoint a qualified person
2-27 as administrator of the District and may appoint an assistant
2-28 administrator. The administrator and assistant administrator serve
2-29 at the will of the board of directors. The administrator and
2-30 assistant administrator are entitled to compensation as determined
2-31 by the board of directors. Before assuming the administrator's
2-32 duties, the administrator shall execute a bond payable to the
2-33 Hospital District in an amount of not less than $5,000 as
2-34 determined by the board of directors, conditioned on the faithful
2-35 performance of the administrator's duties under this Act and any
2-36 other condition the board of directors may prescribe. The board of
2-37 directors may pay for the bond with District funds.
2-38 (c) The administrator shall supervise the work and
2-39 activities of the District and direct the general affairs of the
2-40 District, subject to the limitations prescribed by the board of
2-41 directors.
2-42 (d) The District may appoint physicians to the staff and
2-43 employ technicians, nurses, fiscal agents, accountants, architects,
2-44 attorneys, and other necessary employees. The board of directors
2-45 may delegate to the administrator the authority to employ persons
2-46 for the District.
2-47 (e) The board of directors may contract with any other
2-48 public or private entity, including the federal government, this
2-49 state, a county, a municipality, a hospital district, or any other
2-50 political subdivision, or a charitable organization, to provide
2-51 health care or related services inside or outside the District.
2-52 (f) The board of directors shall determine the type, number,
2-53 and location of buildings required to establish and maintain an
2-54 adequate hospital system and the type of equipment necessary for
2-55 hospital care. The board of directors may establish and equip a
2-56 clinic as part of the hospital system.
2-57 (g) The board of directors may acquire property, facilities,
2-58 and equipment for the District for use in the hospital system or
2-59 mortgage or pledge the property, facilities, or equipment acquired
2-60 as security for the payment of the purchase price. The board of
2-61 directors may transfer by lease to individuals, companies,
2-62 corporations, or other legal entities or acquire by lease District
2-63 hospital facilities and sell or otherwise dispose of District
2-64 property, facilities, or equipment.
2-65 (h) The board of directors may enter into operating or
2-66 management contracts relating to hospital facilities. The term of
2-67 a contract may not exceed 25 years from the date the contract is
2-68 entered into.
2-69 (i) The board of directors may provide retirement benefits
3-1 for employees of the District by establishing or administering a
3-2 retirement program or electing to participate in the Texas County
3-3 and District Retirement System or in any other statewide retirement
3-4 system in which the District is eligible to participate.
3-5 (j) The board of directors may spend District funds to
3-6 recruit physicians, nurses, and other trained medical personnel.
3-7 (k) The board of directors may institute a suit to enforce
3-8 the payment of taxes and to foreclose liens to secure the payment
3-9 of taxes due to the District.
3-10 (l) The board of directors may provide or contract for the
3-11 provision of educational programs or courses for employees and
3-12 medical staff of the District.
3-13 (m) The board of directors may institute a suit to collect
3-14 amounts owed the District by patients who have not been determined
3-15 to be unable to pay under Section 11 of this Act.
3-16 SECTION 4. Section 5, Chapter 54, Acts of the 58th
3-17 Legislature, Regular Session, 1963, is amended to read as follows:
3-18 Sec. 5. (a) The [Upon the creation of such Hospital
3-19 District, the] board of directors may annually [shall have the
3-20 power and authority and it shall be their duty to] levy on all
3-21 property subject to hospital district taxation for the benefit of
3-22 the District [at the same time taxes are levied for County
3-23 purposes, using the County values and the County tax roll,] a tax
3-24 in an amount not to exceed the limit approved by the voters. The
3-25 tax rate for all purposes may not [of not to] exceed Seventy-five
3-26 Cents (75 ) on the One Hundred Dollars valuation of all taxable
3-27 property within the Hospital District, for the purpose of: (1)
3-28 paying the indebtedness assumed or [interest on and creating a
3-29 sinking fund for bonds which may be] issued by the Hospital
3-30 District [for hospital purposes as herein provided]; (2) providing
3-31 for the operation and maintenance of the Hospital District and
3-32 hospital system; and (3) for the purpose of making further
3-33 improvements and additions to the hospital system, and for the
3-34 acquisition of necessary sites therefor, by purchase, lease or
3-35 condemnation.
3-36 (b) The district may not impose taxes to pay the principal
3-37 of or interest on revenue bonds issued by the district.
3-38 (c) The Tax Code governs the appraisal, assessment, and
3-39 collection of District taxes. The board of directors may provide
3-40 for the appointment of a tax assessor-collector for the District or
3-41 may contract for the assessment and collection of taxes as provided
3-42 by the Tax Code. [Not later than October 1st of each year, the
3-43 board of directors shall levy the tax on all taxable property
3-44 within the District which is subject to taxation and shall
3-45 immediately certify such tax rate to the tax assessor and collector
3-46 of the county in which the District is located. The tax so levied
3-47 shall be collected on all property subject to hospital district
3-48 taxation by the assessor and collector of taxes for the county on
3-49 the county tax values, and in the same manner and under the same
3-50 conditions as county taxes. The assessor and collector of taxes
3-51 shall charge and deduct from payments to the Hospital District the
3-52 fees for assessing and collecting the tax at the rate of not
3-53 exceeding one per cent (1%) of the amounts collected as may be
3-54 determined by the board of directors but in no event in excess of
3-55 Five Thousand Dollars ($5,000) for any one (1) fiscal year. Such
3-56 fees shall be deposited in the county's general fund, and shall be
3-57 reported as fees of office of the tax assessor and collector.
3-58 Interest and penalties on taxes paid to the Hospital District shall
3-59 be the same as in the case of county taxes. Discounts shall be the
3-60 same as for county taxes. The residue of tax collections, after
3-61 deduction of discounts and fees for assessing and collecting, shall
3-62 be deposited in the District depository; and such funds shall be
3-63 withdrawn only as provided herein. All other income of the
3-64 Hospital District shall be deposited in like manner with the
3-65 District depository.]
3-66 [The board of directors shall have the authority to levy the
3-67 tax aforesaid for the entire year in which the said Hospital
3-68 District is established, for the purpose of securing funds to
3-69 initiate the operation of the Hospital District.]
4-1 SECTION 5. Section 6, Chapter 54, Acts of the 58th
4-2 Legislature, Regular Session, 1963, is amended to read as follows:
4-3 Sec. 6. (a) The board of directors may issue and sell bonds
4-4 authorized by an election in the name and on the faith and credit
4-5 of the Hospital District to purchase, construct, acquire, repair,
4-6 or renovate buildings or improvements, equip buildings or
4-7 improvements for hospital purposes, or acquire and operate a mobile
4-8 emergency medical or air ambulance service.
4-9 (b) At the time the bonds are issued by the District, the
4-10 board of directors shall levy a tax. The tax must be sufficient to
4-11 create an interest and sinking fund to pay the principal of and
4-12 interest on the bonds as they mature. In any year, the tax
4-13 together with any other tax the District levies may not exceed the
4-14 limit approved by the voters at the election authorizing the levy
4-15 of taxes.
4-16 (c) The District may issue general obligation bonds only if
4-17 the bonds are authorized by a majority of the qualified voters of
4-18 the District voting at an election called and held for that
4-19 purpose. The board of directors may order a bond election.
4-20 (d) The bond election shall be conducted as provided by
4-21 Chapter 1251, Government Code.
4-22 (e) Bonds of the district shall bear interest not to exceed
4-23 six percent per year, mature within 40 years of their date, be
4-24 executed in the name of the Hospital District and in its behalf by
4-25 the president of the board of directors and countersigned by the
4-26 secretary in the manner provided by Chapter 618, Government Code
4-27 (Uniform Facsimile Signature of Public Officials Act), and shall be
4-28 subject to the same requirements in the matter of approval by the
4-29 attorney general and registration by the comptroller as are by law
4-30 provided for approval and registration of bonds issued by counties.
4-31 Upon the approval of such bonds by the attorney general and
4-32 registration by the comptroller, the bonds shall be incontestable
4-33 for any cause. [The board of directors shall have the power and
4-34 authority to issue and sell as the obligations of such Hospital
4-35 District, and in the name and upon the faith and credit of such
4-36 Hospital District, bonds for the purchase, construction,
4-37 acquisition, repair or renovation of buildings and improvements and
4-38 equipping the same for hospital purposes and for any or all of such
4-39 purposes; provided, that a sufficient tax shall be levied to create
4-40 an interest and sinking fund to pay the interest and principal as
4-41 same matures providing said tax together with any other taxes
4-42 levied for said District shall not exceed Seventy-five Cents (75 )
4-43 and any one (1) year. Such bonds shall be executed in the name of
4-44 the Hospital District and on its behalf by the president of the
4-45 board of directors, and countersigned by the secretary of the board
4-46 of directors, and shall be subject to the same requirements in the
4-47 matter of approval thereof by the Attorney General of the State of
4-48 Texas and the registration thereof by the Comptroller of Public
4-49 Accounts of the State of Texas as are by law provided for such
4-50 approval and registration of bonds of counties of this State. Upon
4-51 the approval of such bonds by the Attorney General of Texas and
4-52 registration by the Comptroller the same shall be incontestable for
4-53 any cause. No bonds shall be issued by such Hospital District
4-54 (except refunding bonds) until authorized by a majority vote of the
4-55 legally qualified property taxpaying electors, residing in such
4-56 Hospital District, voting at an election called and held for such
4-57 purpose. Such election may be called by the board of directors on
4-58 its own motion, and the order calling said election shall specify
4-59 the date of the election, the place or places where the election
4-60 shall be held, the presiding officers thereof, the purpose for
4-61 which the bonds are to be issued, the amount thereof, maximum
4-62 interest rate (not to exceed six per cent (6%) per annum) and the
4-63 maximum maturity date of such bonds (not to exceed forty (40) years
4-64 from their date of issuance). Notice of election shall be given by
4-65 publishing a substantial copy of the order calling the election in
4-66 a newspaper of general circulation in such County once a week for
4-67 two (2) consecutive weeks prior to the date of election, the date
4-68 of the first publication being at least fourteen (14) full days
4-69 prior to the date set for the election. The cost of such election
5-1 shall be paid by the Hospital District.]
5-2 [The bonds of the District may be made optional for
5-3 redemption prior to their maturity date at the discretion of the
5-4 board of directors.]
5-5 [The District may without an election issue the bonds to
5-6 refund and pay off any validly issued and outstanding bonds
5-7 heretofore issued by the District, provided any such refund bonds
5-8 shall bear interest at the same rate or at a lesser rate than the
5-9 bonds being refunded unless it be shown mathematically that a
5-10 savings will result in the total amount of interest to be paid.]
5-11 SECTION 6. Chapter 54, Acts of the 58th Legislature, Regular
5-12 Session, 1963, is amended by adding Section 6A to read as follows:
5-13 Sec. 6A. (a) The board of directors may issue revenue bonds
5-14 to purchase, construct, acquire, repair, equip, or renovate
5-15 buildings or improvements for hospital purposes, acquire sites to
5-16 be used for hospital purposes, or acquire and operate a mobile
5-17 emergency medical or air ambulance service to assist the District
5-18 in carrying out its hospital purposes.
5-19 (b) The bonds must be payable from and secured by a pledge
5-20 of all or part of the revenues derived from the operation of the
5-21 District's hospital system. The bonds may be additionally secured
5-22 by a mortgage or deed of trust lien on all or part of District
5-23 property.
5-24 (c) The bonds must be issued in the manner provided by
5-25 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
5-26 Health and Safety Code, for issuance of revenue bonds by county
5-27 hospital authorities.
5-28 SECTION 7. Section 7, Chapter 54, Acts of the 58th
5-29 Legislature, Regular Session, 1963, is amended to read as follows:
5-30 Sec. 7. (a) The board of directors of such District shall
5-31 have the power to prescribe the method and manner of making
5-32 purchases and expenditures by and for such Hospital District, and
5-33 also shall prescribe all accounting and control procedures; the
5-34 method of purchasing necessary supplies, materials and equipment;
5-35 and shall have the power to adopt a seal for such District[; and
5-36 may employ a general manager, attorney, bookkeeper, architect, and
5-37 any other employees deemed necessary for the efficient operation of
5-38 the Hospital District]. The District shall comply with the bidding
5-39 requirements of Chapter 271, Local Government Code. Except as
5-40 permitted by this Act, the District may not incur an obligation
5-41 payable from any revenue of the District except revenue currently
5-42 held by the District or revenue that will be held by the District
5-43 in the then current fiscal year of the District.
5-44 (b) All books, records, accounts, notices and minutes and
5-45 all other matters of the District and the operation of its
5-46 facilities shall, except as herein provided, be maintained at the
5-47 office of the District and there be open to public inspection at
5-48 all reasonable hours.
5-49 (c) The board of directors is specifically empowered to
5-50 adopt rules and regulations governing the operation of such
5-51 District and its facilities which rules and regulations shall
5-52 supplement but shall not contravene any of the provisions of this
5-53 Act. Such rules and regulations may, upon approval of the board of
5-54 directors, be published in booklet or pamphlet form at the expense
5-55 of the District and may be made available to any taxpayer upon
5-56 request.
5-57 SECTION 8. Section 8, Chapter 54, Acts of the 58th
5-58 Legislature, Regular Session, 1963, is amended to read as follows:
5-59 Sec. 8. (a) The District operates on the fiscal year
5-60 established by the board of directors. The fiscal year may not be
5-61 changed if revenue bonds of the District are outstanding or more
5-62 than once in a 24-month period. [The fiscal year of the Hospital
5-63 District authorized to be established by the provisions hereof
5-64 shall commence on October 1st of each year and end on the 30th day
5-65 of September of the following year.] The district directors shall
5-66 cause an annual [independent] audit to be made of the books and
5-67 records of the District, such audit to be made covering such fiscal
5-68 year[, and the same shall be filed with the Comptroller of Public
5-69 Accounts of the State of Texas and at the office of the District
6-1 not later than December 31st of each year]. The annual audit and
6-2 other District records are open to inspection during regular
6-3 business hours at the principal office of the District.
6-4 (b) The board of directors shall each year cause a budget to
6-5 be prepared showing the proposed expenditures and disbursements and
6-6 the estimated receipts and collections for the following fiscal
6-7 year and shall hold a public hearing on the proposed budget after
6-8 publication of a notice of hearing in a newspaper of general
6-9 circulation in the County at least once not less than ten (10) days
6-10 prior to the date set for the hearing. Money may not be spent for
6-11 any expense not included in the annual budget or an amendment to
6-12 the budget. The annual budget may be amended as necessary, but the
6-13 annual budget and all amendments to it must be approved by the
6-14 board of directors. As soon as practicable after the close of each
6-15 fiscal year, the administrator shall prepare for the board of
6-16 directors a full sworn statement of all money belonging to the
6-17 District and a full account of the disbursements of that money.
6-18 (c) Any person who is a taxpayer of the District shall have
6-19 the right to appear at the time and place designated in the notice
6-20 and be heard with reference to any item shown in the proposed
6-21 budget. The proposed budget shall also show the amount of taxes
6-22 required to be levied and collected during such fiscal year and
6-23 upon final approval of the budget, the board of directors shall
6-24 levy such tax as may be required and certify the tax rate for such
6-25 year to the county tax assessor and collector as provided in
6-26 Section 5 hereof, and it shall be the duty of the said tax assessor
6-27 and collector to assess and collect such tax.
6-28 SECTION 9. Section 9, Chapter 54, Acts of the 58th
6-29 Legislature, Regular Session, 1963, is amended to read as follows:
6-30 Sec. 9. A Hospital District organized in pursuance of this
6-31 Act shall have the right and power of eminent domain for the
6-32 purpose of acquiring by condemnation any and all property of any
6-33 kind or character, real, personal or mixed, or any interest
6-34 therein, including outright ownership of such property in fee
6-35 simple absolute, within the boundaries of the said District,
6-36 necessary or convenient to the exercise of the rights, power,
6-37 privileges and functions conferred upon it by this Act, in the
6-38 manner provided by General Law with respect to condemnation;
6-39 provided that the said District shall not be required to make
6-40 deposits in the registry of the trial court of the sum required by
6-41 Section 21.021, Property Code [Paragraph No. 2 in Article 3268,
6-42 Vernon's Annotated Civil Statutes, 1925], or to make the bond
6-43 required therein. In condemnation proceedings being prosecuted by
6-44 the said District, the District shall not be required to pay in
6-45 advance or to give bond or other security for costs in the trial
6-46 court, nor to give any bond otherwise required for the issuance of
6-47 a temporary restraining order or a temporary injunction relating to
6-48 a condemnation proceeding, nor to give bond for costs or for
6-49 supersedeas on any appeal or writ of error proceeding to any Court
6-50 of Civil Appeals, or to the Supreme Court.
6-51 SECTION 10. Section 10, Chapter 54, Acts of the 58th
6-52 Legislature, Regular Session, 1963, is amended to read as follows:
6-53 Sec. 10. (a) Within thirty (30) days after appointment and
6-54 qualification of the board of directors of a Hospital District, the
6-55 said directors shall by resolution designate a bank or banks
6-56 [within the county in which the District is located] as the
6-57 District's depository or treasurer [and all funds of the District
6-58 shall be secured in the manner now provided for the security of
6-59 county funds. The depository shall serve for a period of two (2)
6-60 years until a successor has been named].
6-61 (b) District money shall be deposited as received with the
6-62 depository bank or banks, except that sufficient money shall be
6-63 remitted to the bank or banks for the payment of principal of and
6-64 interest on the outstanding bonds of the District or other
6-65 obligations assumed by it. The District shall remit money for
6-66 payment of obligations so that the money is received on or before
6-67 the date of maturity of the principal and interest to be paid.
6-68 Money in the depository bank or banks that is not insured by the
6-69 Federal Deposit Insurance Corporation shall be secured in the
7-1 manner provided by law for security of county money. Membership on
7-2 the board of directors by an officer or director of a bank does not
7-3 disqualify that bank from being designated as depository.
7-4 SECTION 11. Sections 11-16, Chapter 54, Acts of the 58th
7-5 Legislature, Regular Session, 1963, are amended to read as follows:
7-6 Sec. 11. [The Hospital District established or maintained
7-7 under provisions of this Act shall be subject to inspection by any
7-8 duly authorized representative of the State Board of Health or any
7-9 State Board of Charities (or Public Welfare) that may hereafter be
7-10 created, and resident officers shall admit such representatives
7-11 into all Hospital District facilities and give them access on
7-12 demand to all records, reports, books, papers and accounts
7-13 pertaining to the Hospital District.]
7-14 [Sec. 12. Except as herein provided, Stonewall County, or any
7-15 city or town within the Hospital District, shall not levy any tax
7-16 against any property within the Hospital District for hospital
7-17 purposes; and such Hospital District shall assume full
7-18 responsibility for the furnishing of medical and hospital care for
7-19 the needy and indigent persons residing in said Hospital District
7-20 from the date that taxes are collected for the Hospital District.]
7-21 [Sec. 13.] Whenever a patient residing in the Hospital
7-22 District has been admitted to the facilities of the Hospital
7-23 District, the administrator [directors] shall cause inquiry to be
7-24 made as to the patient's [his] circumstances, and of the relatives
7-25 of such patient legally liable for the patient's [his] support. If
7-26 the administrator finds [they find] that such patient or said
7-27 relatives are liable to pay for the patient's [his] care and
7-28 treatment in whole or in part, an order shall be made directing
7-29 such patient, or said relatives, to pay to the treasurer of the
7-30 Hospital District for the support of such patient a specified sum
7-31 per week, in proportion to their financial ability[, but such sum
7-32 shall not exceed the actual per capita cost of maintenance]. The
7-33 administrator [District] shall have power and authority to collect
7-34 such sum from the estate of the patient, or the patient's [his]
7-35 relatives legally liable for the patient's [his] support, in the
7-36 manner provided by law for the collection of expenses of the last
7-37 illness of a deceased person. If the administrator [agent
7-38 designated by the District to handle such affairs] finds that such
7-39 patient or said relatives are not able to pay, either in whole or
7-40 in part, for the patient's [his] care and treatment in such
7-41 hospital, the amount the patient or relatives cannot pay [same]
7-42 shall become a charge upon the Hospital District. Should there be
7-43 a dispute as to the ability to pay, or doubt in the mind of the
7-44 administrator [person designated as aforesaid], the District's
7-45 directors shall hear and determine same, after calling witnesses,
7-46 and shall make such order as may be proper, from which appeal shall
7-47 lie to the District Court by either party to the dispute.
7-48 Sec. 12 [14]. Said board of directors of the Hospital
7-49 District is authorized on behalf of said Hospital District to
7-50 accept donations, gifts and endowments for the Hospital District to
7-51 be held in trust and administered by the board of directors for
7-52 such purposes and under such directions, limitations, and
7-53 provisions as may be prescribed in writing by donor, not
7-54 inconsistent with proper management and objects of Hospital
7-55 District.
7-56 Sec. 13 [15]. All bonds issued by or indebtedness assumed by
7-57 the District authorized to be established and created under the
7-58 provisions of this Act shall be and are declared to be legal and
7-59 authorized investments for banks, savings banks, trust companies,
7-60 building and loan associations, savings and loan associations,
7-61 insurance companies, fiduciaries, trustees, guardians, and for the
7-62 sinking funds of cities, towns, villages, counties, school
7-63 districts, or other political corporations or subdivisions of the
7-64 State of Texas and for all public funds of the state or its
7-65 agencies, including the state permanent school fund. The [; and
7-66 such] bonds and indebtedness are eligible to secure deposits of
7-67 public funds of the state and of municipalities, counties, school
7-68 districts, and other subdivisions or corporations of the state and
7-69 are [shall be] lawful and sufficient security for deposits to the
8-1 extent of their face value when accompanied by all unmatured
8-2 coupons appurtenant thereto.
8-3 Sec. 14 [16]. The Hospital District created under the
8-4 provisions of this Act shall be and is declared to be a political
8-5 subdivision of the State of Texas, and as a governmental agency may
8-6 sue and be sued in any and all courts of this State in the name of
8-7 such District.
8-8 SECTION 12. Chapter 54, Acts of the 58th Legislature,
8-9 Regular Session, 1963, is amended by adding Sections 15, 15A, and
8-10 15B to read as follows:
8-11 Sec. 15. (a) If the board of directors determines that money
8-12 is not available to meet the lawful obligations of the District and
8-13 that an emergency exists, the board of directors may borrow money
8-14 at a rate of interest not to exceed the maximum annual percentage
8-15 rate allowed by law for District obligations at the time of the
8-16 loan.
8-17 (b) To secure a loan, the board of directors may pledge:
8-18 (1) the revenues of the District that are not pledged
8-19 to pay the bond indebtedness of the District;
8-20 (2) tax revenue to be collected by the District during
8-21 the 12-month period following the date of the pledge that has not
8-22 been pledged to pay the principal of or interest on district bonds;
8-23 or
8-24 (3) District bonds that have been authorized but have
8-25 not been sold.
8-26 (c) A loan for which tax revenue or bonds are pledged shall
8-27 mature not later than the third anniversary of the date on which
8-28 the loan was made. A loan for which other District revenues are
8-29 pledged shall mature not later than the fifth anniversary of the
8-30 date on which the loan was made.
8-31 (d) The board of directors may not use loan proceeds
8-32 obtained under this section for any purpose other than the purpose
8-33 for which the board of directors determined an emergency existed.
8-34 If tax revenue or bonds are pledged to pay the loan, the board of
8-35 directors may not use the loan proceeds for a purpose other than
8-36 the purpose for which the taxes were levied or the bonds were
8-37 authorized.
8-38 Sec. 15A. (a) The board of directors may borrow money at a
8-39 rate of interest not to exceed the maximum annual percentage rate
8-40 allowed by law for District obligations at the time of the loan.
8-41 (b) To secure a loan, the board of directors may pledge:
8-42 (1) the revenues of the District that are not pledged
8-43 to pay the bond indebtedness of the District;
8-44 (2) tax revenue to be collected by the District during
8-45 the 12-month period following the date of the pledge that has not
8-46 been pledged to pay the principal of or interest on District bonds;
8-47 or
8-48 (3) District bonds that have been authorized but have
8-49 not been sold.
8-50 (c) A loan for which tax revenue or bonds are pledged shall
8-51 mature not later than the third anniversary of the date on which
8-52 the loan was made. A loan for which other District revenues are
8-53 pledged shall mature not later than the fifth anniversary of the
8-54 date on which the loan was made.
8-55 Sec. 15B. (a) The District may be dissolved only if the
8-56 dissolution is approved by a majority of the qualified voters of
8-57 the District voting in an election called and held for that
8-58 purpose.
8-59 (b) The board of directors may order an election on the
8-60 question of dissolving the District and disposing of the District's
8-61 assets and obligations. The board of directors shall order an
8-62 election if the board of directors receives a petition requesting
8-63 an election that is signed by a number of residents of the District
8-64 equal to at least 15 percent of the registered voters in the
8-65 District.
8-66 (c) The election shall be held not later than the 60th day
8-67 after the date the election is ordered. Section 41.001(a),
8-68 Election Code, does not apply to an election ordered under this
8-69 section. The order calling the election shall state:
9-1 (1) the nature of the election, including the
9-2 proposition that is to appear on the ballot;
9-3 (2) the date of the election;
9-4 (3) the hours during which the polls will be open; and
9-5 (4) the location of the polling places.
9-6 (d) The board of directors shall give notice of the election
9-7 by publishing the election order in a newspaper with general
9-8 circulation in the District once a week for two consecutive weeks.
9-9 The first publication must appear not less than 35 days before the
9-10 date set for the election. The ballot for the election shall be
9-11 printed to permit voting for or against the proposition: "The
9-12 dissolution of the Stonewall County Hospital District."
9-13 (e) If a majority of the votes in the election favor
9-14 dissolution, the board of directors shall find that the District is
9-15 dissolved. If a majority of the votes in the election do not favor
9-16 dissolution, the board of directors shall continue to administer
9-17 the District, and another election on the question of dissolution
9-18 may not be held before the first anniversary of the most recent
9-19 election to dissolve the District.
9-20 (f) If a majority of the votes in the election favor
9-21 dissolution, the board of directors shall:
9-22 (1) transfer the land, buildings, improvements,
9-23 equipment, and other assets that belong to the District to a county
9-24 or other governmental agency in Stonewall County;
9-25 (2) sell the assets and liabilities to another person
9-26 or entity; or
9-27 (3) administer the property, assets, and debts until
9-28 all money has been disposed of and all District debts have been
9-29 paid or settled.
9-30 (g) If the District transfers the land, buildings,
9-31 improvements, equipment, and other assets to a county or other
9-32 governmental agency, the county or agency assumes all debts and
9-33 obligations of the District at the time of the transfer, and the
9-34 District is dissolved.
9-35 (h) After the board of directors finds that the District is
9-36 dissolved, the board of directors shall:
9-37 (1) determine any remaining debt owed by the District;
9-38 and
9-39 (2) impose on the property included in the District's
9-40 tax rolls a tax that is in proportion of the debt to the property
9-41 value.
9-42 (i) When remaining outstanding debts and obligations of the
9-43 District are paid, the board of directors shall order the secretary
9-44 to return the pro rata share of all unused tax money to each
9-45 District taxpayer.
9-46 (j) A taxpayer may request that the taxpayer's share of
9-47 surplus tax money be credited to the taxpayer's county taxes. If a
9-48 taxpayer requests the credit, the board of directors shall direct
9-49 the secretary to transmit the money to the county tax
9-50 assessor-collector.
9-51 (k) After the District has paid all its debts and has
9-52 disposed of all its assets and money as prescribed by this section,
9-53 the board of directors shall file a written report with the
9-54 Commissioners Court of Stonewall County setting forth a summary of
9-55 the board of directors' actions in dissolving the District.
9-56 (l) Not later than the 10th day after the date it receives
9-57 the report and determines that the requirements of this section
9-58 have been fulfilled, the Commissioners Court of Stonewall County
9-59 shall enter an order dissolving the District and releasing the
9-60 board of directors of the District from any further duty or
9-61 obligation.
9-62 (m) The District may not be dissolved unless the board of
9-63 directors provides for the sale or transfer of the District's
9-64 assets and liabilities to another person or entity. The
9-65 dissolution of the District and the sale or transfer of the
9-66 District's assets and liabilities may not contravene a trust
9-67 indenture or bond resolution relating to the outstanding bonds of
9-68 the District. The dissolution and sale or transfer does not
9-69 diminish or impair the rights of a holder of an outstanding bond,
10-1 warrant, or other obligation of the District.
10-2 (n) The sale or transfer of the District's assets and
10-3 liabilities must satisfy the debt and bond obligations of the
10-4 District in a manner that protects the interests of the residents
10-5 of the District, including the residents' collective property
10-6 rights in the District's assets. A grant from federal funds is an
10-7 obligation to be repaid in satisfaction. The District may not
10-8 transfer or dispose of the District's assets except for due
10-9 compensation unless the transfer is made to a governmental agency
10-10 that serves the District and the transferred assets are to be used
10-11 for the benefit of the residents of the District.
10-12 SECTION 13. Chapter 54, Acts of the 58th Legislature,
10-13 Regular Session, 1963, is amended by adding Section 16 to read as
10-14 follows:
10-15 Sec. 16. The state may not become obligated for the support
10-16 or maintenance of the Stonewall County Hospital District created
10-17 under this Act, and the legislature may not make a direct
10-18 appropriation for the construction, maintenance, or improvement of
10-19 a facility of the District.
10-20 SECTION 14. This Act takes effect September 1, 2001.
10-21 * * * * *