By King of Parker H.B. No. 3132 77R11467 YDB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the dissolution of the Gainesville Hospital District 1-3 and the Muenster Hospital District and the creation of the Cooke 1-4 County Hospital District. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 ARTICLE 1. CHANGES RELATING TO GAINESVILLE HOSPITAL DISTRICT 1-7 SECTION 1.01. Chapter 211, Acts of the 64th Legislature, 1-8 Regular Session, 1975, is amended by adding Section 1A to read as 1-9 follows: 1-10 Sec. 1A. On the dissolution of the Gainesville Hospital 1-11 District and the approval of the creation of the Cooke County 1-12 Hospital District, a reference in this Act or in any other law to 1-13 the Gainesville Hospital District means the Cooke County Hospital 1-14 District. 1-15 SECTION 1.02. Chapter 211, Acts of the 64th Legislature, 1-16 Regular Session, 1975, is amended by adding Section 18A to read as 1-17 follows: 1-18 Sec. 18A. DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF 1-19 MUENSTER HOSPITAL DISTRICT AND CREATION OF COOKE COUNTY HOSPITAL 1-20 DISTRICT. (a) Notwithstanding the provisions of any other section 1-21 of this Act, the Gainesville Hospital District may be dissolved as 1-22 provided by this section. 1-23 (b) The board of directors may order an election on the 1-24 question of the dissolution of the Gainesville Hospital District, 2-1 creation of the Cooke County Hospital District, transfer of the 2-2 Gainesville Hospital District's assets and obligations to the Cooke 2-3 County Hospital District, and assumption by the Cooke County 2-4 Hospital District of the Gainesville Hospital District's 2-5 outstanding debts. 2-6 (c) The board shall order an election if: 2-7 (1) the board has reasonable grounds to conclude that 2-8 the board of the Muenster Hospital District will order an election 2-9 under Section 20c, Chapter 477, Acts of the 59th Legislature, 2-10 Regular Session, 1965; or 2-11 (2) the board receives a petition requesting an 2-12 election on the question of the dissolution of the Gainesville 2-13 Hospital District, creation of the Cooke County Hospital District, 2-14 and transfer of assets that is signed by at least 15 percent of the 2-15 registered voters in the Gainesville Hospital District. 2-16 (d) If the board of directors orders an election under this 2-17 section, it shall promptly notify the board of directors of the 2-18 Muenster Hospital District of the election order. 2-19 (e) The election shall be held not less than 45 or more than 2-20 60 days after the date on which an election is ordered and shall be 2-21 held on the same date that the separate election in the Muenster 2-22 Hospital District is held. The board of directors shall cooperate 2-23 with the board of directors of the Muenster Hospital District in 2-24 setting the date of the elections. Section 41.001(a), Election 2-25 Code, does not apply to an election ordered under this section. 2-26 (f) The ballot for the election shall be printed to permit 2-27 voting for or against the proposition: "The dissolution of the 3-1 Gainesville Hospital District and creation of the Cooke County 3-2 Hospital District, providing for the levy of a tax not to exceed 75 3-3 cents on each $100 valuation on all taxable property in the Cooke 3-4 County Hospital District, and providing for the transfer to and 3-5 assumption by the Cooke County Hospital District of all outstanding 3-6 bonds and indebtedness issued or refunded for hospital purposes by 3-7 the Gainesville Hospital District and the transfer of the existing 3-8 Gainesville Hospital District's assets to the Cooke County Hospital 3-9 District." 3-10 (g) Except as provided by Subsections (e) and (f) of this 3-11 section, the election shall be held in accordance with the 3-12 applicable provisions of the Election Code. 3-13 (h) The Gainesville Hospital District is dissolved if: 3-14 (1) a majority of the voters in the Gainesville 3-15 Hospital District voting in the election held under this section 3-16 favor the proposition; and 3-17 (2) a majority of the voters in the Muenster Hospital 3-18 District voting in an election held on the same date under Section 3-19 20c, Chapter 477, Acts of the 59th Legislature, Regular Session, 3-20 1965, favor the dissolution of the Muenster Hospital District, the 3-21 creation of the Cooke County Hospital District, the transfer of the 3-22 assets of the Muenster Hospital District to the Cooke County 3-23 Hospital District, and the assumption of the assets and obligations 3-24 of the Muenster Hospital District by the Cooke County Hospital 3-25 District. 3-26 (i) The Gainesville Hospital District is not dissolved and 3-27 the board of directors shall continue to administer the Gainesville 4-1 Hospital District if a majority of the voters in either the 4-2 Gainesville Hospital District or the Muenster Hospital District do 4-3 not favor the proposition on which they voted. 4-4 (j) If the Gainesville Hospital District is dissolved under 4-5 this section, the board of directors shall orderly transfer the 4-6 assets and obligations of the Gainesville Hospital District to the 4-7 Cooke County Hospital District not later than the 180th day after 4-8 the date of the election. 4-9 (k) The board of directors may not hold an election on the 4-10 question of dissolution under this section and the creation of the 4-11 Cooke County Hospital District before the first anniversary of the 4-12 most recent election held under this section concerning the 4-13 dissolution and the creation of the Cooke County Hospital District. 4-14 ARTICLE 2. CHANGES RELATING TO MUENSTER HOSPITAL DISTRICT 4-15 SECTION 2.01. Chapter 477, Acts of the 59th Legislature, 4-16 Regular Session, 1965, is amended by adding Section 1A to read as 4-17 follows: 4-18 Sec. 1A. On the dissolution of the Muenster Hospital District 4-19 and the approval of the creation of the Cooke County Hospital 4-20 District, a reference in this Act or in any other law to the 4-21 Muenster Hospital District means the Cooke County Hospital 4-22 District. 4-23 SECTION 2.02. Section 20b(e), Chapter 477, Acts of the 59th 4-24 Legislature, Regular Session, 1965, is amended to read as follows: 4-25 (e) If a majority of the votes in the election favor 4-26 dissolution, the Board shall find that the District is dissolved. 4-27 If a majority of the votes in the election do not favor 5-1 dissolution, the Board shall continue to administer the District, 5-2 and another election on the question of dissolution under this 5-3 section may not be held before the first anniversary of the most 5-4 recent election held under this section to dissolve the District. 5-5 SECTION 2.03. Chapter 477, Acts of the 59th Legislature, 5-6 Regular Session, 1965, is amended by adding Section 20c to read as 5-7 follows: 5-8 Sec. 20c. DISSOLUTION OF DISTRICT IN EVENT OF DISSOLUTION OF 5-9 GAINESVILLE HOSPITAL DISTRICT AND CREATION OF COOKE COUNTY HOSPITAL 5-10 DISTRICT. (a) Notwithstanding any other provision of this Act, the 5-11 Muenster Hospital District may be dissolved as provided by this 5-12 section. 5-13 (b) The Board of Directors may order an election on the 5-14 question of the dissolution of the Muenster Hospital District, 5-15 creation of the Cooke County Hospital District, transfer of the 5-16 Muenster Hospital District's assets and obligations to the Cooke 5-17 County Hospital District, and assumption by the Cooke County 5-18 Hospital District of the Muenster Hospital District's outstanding 5-19 debts. 5-20 (c) The Board shall order an election if: 5-21 (1) the Board has reasonable grounds to conclude that 5-22 the Board of Directors of the Gainesville Hospital District will 5-23 order an election under Section 18A, Chapter 211, Acts of the 64th 5-24 Legislature, Regular Session, 1975; or 5-25 (2) the Board receives a petition requesting an 5-26 election on the question of the dissolution of the Muenster 5-27 Hospital District, creation of the Cooke County Hospital District, 6-1 and transfer of assets that is signed by at least 15 percent of the 6-2 registered voters in the Muenster Hospital District. 6-3 (d) If the Board of Directors orders an election under this 6-4 section, it shall promptly notify the Board of Directors of the 6-5 Gainesville Hospital District of the election order. 6-6 (e) The election shall be held not less than 45 or more than 6-7 60 days after the date on which an election is ordered and shall be 6-8 held on the same date that the separate election in the Gainesville 6-9 Hospital District is held. The Board of Directors shall cooperate 6-10 with the Board of Directors of the Gainesville Hospital District in 6-11 setting the date of the elections. Section 41.001(a), Election 6-12 Code, does not apply to an election ordered under this section. 6-13 (f) The ballot for the election shall be printed to permit 6-14 voting for or against the proposition: "The dissolution of the 6-15 Muenster Hospital District and creation of the Cooke County 6-16 Hospital District, providing for the levy of a tax not to exceed 75 6-17 cents on each $100 valuation on all taxable property in the Cooke 6-18 County Hospital District, and providing for the transfer to and 6-19 assumption by the Cooke County Hospital District of all outstanding 6-20 bonds and indebtedness issued or refunded for hospital purposes by 6-21 the Muenster Hospital District and the transfer of the existing 6-22 Muenster Hospital District's assets to the Cooke County Hospital 6-23 District." 6-24 (g) Except as provided by Subsections (e) and (f) of this 6-25 section, the election shall be held in accordance with the 6-26 applicable provisions of the Election Code. 6-27 (h) The Muenster Hospital District is dissolved if: 7-1 (1) a majority of the voters in the Muenster Hospital 7-2 District voting in the election held under this section favor the 7-3 proposition; and 7-4 (2) a majority of the voters in the Gainesville 7-5 Hospital District voting in an election held on the same date under 7-6 Section 18A, Chapter 211, Acts of the 64th Legislature, Regular 7-7 Session, 1975, favor the dissolution of the Gainesville Hospital 7-8 District, the creation of the Cooke County Hospital District, the 7-9 transfer of the assets of the Gainesville Hospital District to 7-10 Cooke County Hospital District, and the assumption of the assets 7-11 and obligations of the Gainesville Hospital District by the Cooke 7-12 County Hospital District. 7-13 (i) The Muenster Hospital District is not dissolved and the 7-14 Board of Directors shall continue to administer the Muenster 7-15 Hospital District if a majority of the voters in either district do 7-16 not favor the proposition on which they voted. 7-17 (j) If the Muenster Hospital District is dissolved under 7-18 this section, the Board of Directors shall orderly transfer the 7-19 assets and obligations of the Muenster Hospital District to the 7-20 Cooke County Hospital District not later than the 180th day after 7-21 the date of the election. 7-22 (k) The Board of Directors may not hold an election on the 7-23 question of dissolution under this section and the creation of the 7-24 Cooke County Hospital District before the first anniversary of the 7-25 most recent election held under this section concerning the 7-26 dissolution and the creation of the Cooke County Hospital District. 7-27 ARTICLE 3. CREATION OF COOKE COUNTY HOSPITAL DISTRICT 8-1 SECTION 3.01. (a) In accordance with Section 9, Article IX, 8-2 Texas Constitution, this article authorizes the creation, 8-3 establishment, administration, maintenance, operation, and 8-4 financing of a hospital district in this state with boundaries 8-5 coextensive with the boundaries of Cooke County as they existed on 8-6 November 15, 1999. 8-7 (b) The district is to be known as "Cooke County Hospital 8-8 District," and it has the rights, powers, and duties provided in 8-9 this article. 8-10 SECTION 3.02. (a) The Cooke County Hospital District may not 8-11 be created unless the creation, the assumption of debt, and the 8-12 levy of taxes are approved by a majority of the voters at an 8-13 election held in the Gainesville Hospital District and by a 8-14 majority of the voters at a separate election held in the Muenster 8-15 Hospital District. 8-16 (b) The election in the Gainesville Hospital District and 8-17 the election in the Muenster Hospital District shall be held on the 8-18 same day and must be held before the fifth anniversary of the 8-19 effective date of this Act. 8-20 SECTION 3.03. (a) If the Cooke County Hospital District is 8-21 created in accordance with Section 18A, Chapter 211, Acts of the 8-22 64th Legislature, Regular Session, 1975, and Section 20c, Chapter 8-23 477, Acts of the 59th Legislature, Regular Session, 1965, the 8-24 following nine persons shall serve as temporary directors of the 8-25 Cooke County Hospital District: 8-26 (1) David Hutcherson; 8-27 (2) Karla Metzler; 9-1 (3) Harrison Wellman; 9-2 (4) Dave Sanders; 9-3 (5) Jerry Parr; 9-4 (6) Don Flusche; 9-5 (7) Gerald Hess; 9-6 (8) Charles Bayer; and 9-7 (9) Werner Becker, Jr. 9-8 (b) A vacancy on the temporary board of directors shall be 9-9 filled by the Commissioners Court of Cooke County. 9-10 (c) The temporary board shall serve as the directors of the 9-11 Cooke County Hospital District until elected directors take office. 9-12 SECTION 3.04. (a) If the Cooke County Hospital District is 9-13 created, directors shall be elected at an election to be held on 9-14 the first Saturday in May following the date the Cooke County 9-15 Hospital District is created. 9-16 (b) The temporary directors may postpone the election date 9-17 for one year or until a subsequent uniform election date if the 9-18 temporary directors determine that there is not sufficient time to 9-19 comply with the requirements of law. 9-20 (c) Two directors shall be elected from each of 9-21 Commissioners Precincts Numbers 1, 2, 3, and 4 of Cooke County, 9-22 and one director shall be elected from the district at large. 9-23 (d) At the initial election of directors following creation 9-24 of the Cooke County Hospital District, the two candidates receiving 9-25 the highest number of votes from each commissioners precinct are 9-26 the directors for that precinct, and the candidate receiving the 9-27 highest number of votes from the district at large is the director 10-1 for the district at large. 10-2 (e) The directors elected at the initial election of 10-3 directors following creation of the Cooke County Hospital District 10-4 shall draw lots to determine which three directors shall serve 10-5 one-year terms, which three directors shall serve two-year terms, 10-6 and which three directors shall serve three-year terms. 10-7 SECTION 3.05. (a) After the initial election of directors 10-8 following creation, an election shall be held each year on the 10-9 first Saturday in May, and the appropriate number of successor 10-10 directors shall be elected for three-year terms. 10-11 (b) Notice of each election shall be published in a 10-12 newspaper of general circulation in the district in accordance with 10-13 Section 4.003, Election Code. Any person desiring to have the 10-14 person's name printed on the ballot as a candidate for director 10-15 shall file an application with the secretary of the board of 10-16 directors. The application shall be filed with the secretary at 10-17 least 60 days before the date of the election. The application 10-18 must specify the commissioners precinct the candidate wishes to 10-19 represent or that the candidate wishes to represent the district at 10-20 large. 10-21 (c) Vacancies in office shall be filled for the unexpired 10-22 term by the remainder of the board of directors. 10-23 SECTION 3.06. A person may not be appointed or elected as a 10-24 member of the temporary or permanent board of directors unless the 10-25 person is a resident of the district, a qualified voter, and, if 10-26 elected from a commissioners precinct, a resident of the precinct. 10-27 The following persons are not eligible to serve as a director: 11-1 (1) an administrator; 11-2 (2) any other employee of the district; or 11-3 (3) an individual who was employed by the district 11-4 within 24 months before the date of election or appointment. 11-5 SECTION 3.07. (a) The district authorized by this article 11-6 to be created shall take over and there shall be transferred to the 11-7 district title to all land, buildings, improvements, and equipment 11-8 pertaining to the hospitals or hospital system that may be located 11-9 within or outside the district and owned by Cooke County or a 11-10 municipality in the district, and after that date the district 11-11 shall provide for the establishment of a hospital system by the 11-12 purchase, construction, acquisition, repair, and renovation of 11-13 buildings and equipment, equipping the buildings, and the 11-14 administration of the district for hospital purposes. 11-15 (b) The district shall assume the outstanding indebtedness 11-16 incurred by the Gainesville Hospital District or the Muenster 11-17 Hospital District to provide medical care for residents of the 11-18 district before the creation of the district. 11-19 SECTION 3.08. (a) The board of directors, both temporary 11-20 and permanent, shall organize by electing one of the members as 11-21 president and one as vice president. A secretary, who need not be 11-22 a director, shall also be elected. Officers shall be elected for a 11-23 term of one year and vacancies shall be filled for the unexpired 11-24 term by the board. 11-25 (b) When a quorum is present, a majority of the members of 11-26 the board of directors voting must concur in a matter pertaining to 11-27 the business of the district. A quorum of the board shall be 12-1 required to transact the business of the district. A majority of 12-2 the members of the board constitutes a quorum. 12-3 (c) All members of the board of directors and officers shall 12-4 serve without compensation, but may be reimbursed for actual 12-5 expenses incurred in the performance of the member's official 12-6 duties as approved by the board and reported in the minute book of 12-7 the district or other records of the district. 12-8 SECTION 3.09. (a) The board of directors shall manage, 12-9 control, and administer the hospital system and the business of and 12-10 all funds and resources of the district, and the operating, 12-11 depreciation, or building reserves shall be invested in accordance 12-12 with Chapter 2256, Government Code. 12-13 (b) The district, through its board of directors, may sue 12-14 and be sued and adopt rules governing the operation of the 12-15 hospital, hospital system, and the district's staff and employees. 12-16 (c) The board of directors shall appoint one or more 12-17 qualified persons as the administrators of the hospital district 12-18 and may appoint one or more assistants to the administrators. The 12-19 administrators and assistant administrators, if any, serve at the 12-20 will of the board and receive compensation as may be fixed by the 12-21 board. Each administrator shall, on assuming the administrator's 12-22 duties, execute a bond payable to the hospital district in an 12-23 amount set by the board, but not less than $5,000, conditioned on 12-24 the faithful performance of the duties required of the 12-25 administrator and containing other conditions as the board may 12-26 require. The board may pay for the bond with district funds. The 12-27 administrators shall supervise all the work and activities of the 13-1 district, subject to the limitations prescribed by the board. 13-2 (d) The board of directors shall have the authority to 13-3 appoint to the staff any doctors the board considers necessary for 13-4 the efficient operation of the district if warranted by 13-5 circumstances. The board shall have the authority to employ and 13-6 may delegate to the administrators the authority to employ persons 13-7 for the district, including technicians, nurses, fiscal agents, 13-8 accountants, architects, persons providing professional or staff 13-9 assistance, and other necessary employees. 13-10 (e) The board of directors may contract with any other 13-11 political subdivision or governmental agency for the district to 13-12 provide investigatory or other services as to the medical, 13-13 hospital, or welfare needs of the residents of the district. The 13-14 district may contract with any county or municipality located 13-15 outside the district's boundaries for the care and treatment of the 13-16 sick, diseased, or injured persons of the county or municipality, 13-17 and may contract with the state or agencies of the federal 13-18 government for the state or federal government to reimburse the 13-19 district for the treatment of the sick, diseased, or injured 13-20 persons. The board may delegate to the administrators the 13-21 authority to contract with a person for the district. 13-22 SECTION 3.10. (a) The district shall operate on the basis 13-23 of fiscal years established from time to time by the board of 13-24 directors, provided that a fiscal year may not be changed during 13-25 the time revenue bonds of the district are outstanding or more than 13-26 once in any 24-month period. 13-27 (b) The board of directors shall cause an annual audit to be 14-1 made of the financial affairs of the district, which shall be open 14-2 to inspection at the principal office of the district. 14-3 (c) The administrators shall prepare an annual budget for 14-4 approval by the board of directors. The budget shall contain a 14-5 complete financial statement of the district showing: 14-6 (1) all outstanding obligations of the district; 14-7 (2) the cash on hand to the credit of each fund of the 14-8 district; 14-9 (3) the amount of money received by the district from 14-10 all sources during the previous year; 14-11 (4) the funds available from all sources during the 14-12 ensuing year, with balances expected at year end of the year in 14-13 which the budget is being prepared; and 14-14 (5) estimated revenues and balances available to cover 14-15 the proposed budget and the estimated tax rate that will be 14-16 required. 14-17 (d) A public hearing on the annual budget shall be held by 14-18 the board of directors after notice of the hearing has been 14-19 published one time in a newspaper of general circulation in the 14-20 district at least 10 days before the date set for the hearing. Any 14-21 person residing in the district shall have the right to be present 14-22 and participate in the hearing. 14-23 (e) The budget, as proposed by the administrator, shall be 14-24 acted on by the board of directors. The board shall have authority 14-25 to make changes in the budget as the board determines the law 14-26 warrants and the interests of the taxpayers demand. 14-27 (f) The annual budget may be amended from time to time with 15-1 the approval of the board of directors. 15-2 SECTION 3.11. (a) The board of directors shall have the 15-3 power and authority to issue and sell bonds in the name and on the 15-4 faith and credit of the hospital district for: 15-5 (1) the purchase, construction, acquisition, repair, 15-6 and renovation of buildings or improvements; 15-7 (2) equipping the buildings and improvements for 15-8 hospital and health care services related purposes; or 15-9 (3) acquiring and operating a skilled nursing unit, 15-10 convalescent facility, nursing home, assisted living facility, or 15-11 other related health care facility. 15-12 (b) At the time bonds are issued by the district, a tax 15-13 shall be levied by the board of directors sufficient to create an 15-14 interest and sinking fund to pay the interest on and principal of 15-15 the bonds as the bonds mature, provided that the tax together with 15-16 any other taxes levied for the district may not exceed the limit 15-17 approved by the voters at the election authorizing the levy of 15-18 taxes. 15-19 (c) Bonds may not be issued by the district except for 15-20 revenue or refunding bonds until authorized by a majority of the 15-21 electors of the district. 15-22 (d) The order for a bond election shall specify: 15-23 (1) the nature and date of the election; 15-24 (2) the location of the polling places; 15-25 (3) the hours during which the polls will be open; 15-26 and 15-27 (4) the amount of bonds to be authorized and the 16-1 maximum maturity of the bonds. 16-2 (e) Notice of a bond election shall be given as provided by 16-3 Section 1251.003, Government Code, and shall be conducted in 16-4 accordance with the Election Code, except as modified by the 16-5 provisions of this article. 16-6 SECTION 3.12. (a) Refunding bonds of the district may be 16-7 issued for the purpose of refunding and paying off any outstanding 16-8 indebtedness the district has issued or assumed. 16-9 (b) Refunding bonds may be sold and the proceeds from the 16-10 bonds may be applied to the payment of outstanding indebtedness or 16-11 may be exchanged in whole or in part for not less than a similar 16-12 principal amount of the outstanding indebtedness. 16-13 (c) If the refunding bonds are to be sold and the proceeds 16-14 from the bonds are to be applied to the payment of any outstanding 16-15 indebtedness, the refunding bonds shall be issued and payments made 16-16 in the manner specified by Chapter 1207, Government Code. 16-17 SECTION 3.13. Bonds issued by the district must: 16-18 (1) mature not later than the 40th anniversary of the 16-19 date of issuance; 16-20 (2) be executed in the manner provided by Chapter 618, 16-21 Government Code; 16-22 (3) bear a rate of interest that does not exceed the 16-23 amount prescribed by Chapter 1204, Government Code; and 16-24 (4) be subject to the requirements of Chapter 1202, 16-25 Government Code. 16-26 SECTION 3.14. (a) In addition to being granted the power to 16-27 issue bonds payable from taxes levied by the district under Section 17-1 3.12 of this article, the board of directors may issue and refund 17-2 any previously issued revenue bond to: 17-3 (1) purchase, construct, acquire, repair, equip, or 17-4 renovate a building or improvement for hospital and related 17-5 purposes; 17-6 (2) acquire a site for hospital purposes; or 17-7 (3) acquire and operate a facility described by 17-8 Section 3.11(a)(3) of this article to assist the district in 17-9 carrying out the district's hospital purposes. 17-10 (b) Bonds authorized under this section shall be payable 17-11 from and secured by a pledge of all or any part of the revenues of 17-12 the district to be derived from the operation of the district's 17-13 hospital system, and may be additionally secured by a mortgage or 17-14 deed of trust lien on any part or all of the district's properties. 17-15 (c) Bonds shall be issued in the manner and in accordance 17-16 with the procedures and requirements specified for the issuance of 17-17 revenue bonds by a county hospital authority under Chapter 264, 17-18 Health and Safety Code. 17-19 SECTION 3.15. (a) The board of directors has complete 17-20 discretion as to the type of buildings, both in number and 17-21 location, required to establish and maintain an adequate hospital 17-22 system and the type of equipment necessary for hospital care. The 17-23 hospital system may include: 17-24 (1) domiciliary care and treatment of the sick, 17-25 wounded, and injured; 17-26 (2) outpatient clinics; 17-27 (3) pharmacies; 18-1 (4) geriatric domiciliary care and treatment; 18-2 (5) convalescent home facilities; 18-3 (6) necessary nurses, domiciliaries, and training 18-4 centers; 18-5 (7) research centers and laboratories; and 18-6 (8) any other facilities determined by the board to be 18-7 necessary for hospital and related health care. 18-8 (b) Notwithstanding Subsection (a) of this section, the 18-9 district shall provide full-time health care services and 18-10 facilities in the city of Muenster, including, at a minimum, 18-11 physician offices and services, outpatient medical care, 18-12 comprehensive laboratory services, and comprehensive radiology 18-13 services, including ultrasound, mammography, and computerized 18-14 tomography, at Muenster Memorial Hospital or its successor facility 18-15 and nursing home care at St. Richard's Villa. If the district does 18-16 not construct a new acute care hospital facility, the district 18-17 shall continue to operate an acute care hospital facility located 18-18 in the city of Muenster until the district constructs a new 18-19 hospital facility to serve the residents of the city of Muenster. 18-20 (c) If a resident of the district prevails in an action 18-21 brought against the district for the district's alleged failure to 18-22 comply with Subsection (b) of this section, the resident is 18-23 entitled to recover reasonable attorney's fees from the district. 18-24 (d) The district, through its board of directors, may enter 18-25 into an operating or management contract with regard to all or part 18-26 of the district's facilities or may lease all or part of the 18-27 district's buildings and facilities on terms and conditions 19-1 considered to be in the best interest of the residents of the 19-2 district. A lease under this subsection may not be for a period 19-3 that exceeds 25 years. 19-4 (e) The district may sell or otherwise dispose of any 19-5 property, real or personal, or equipment of any nature on terms and 19-6 conditions found by the board of directors to be in the best 19-7 interest of the residents of the district. 19-8 (f) The board of directors may prescribe the method and 19-9 manner of making purchases and expenditures by and for the district 19-10 and may prescribe all accounting and control procedures. 19-11 (g) A contract for construction may be made only after 19-12 competitive bidding as provided by Subchapter B, Chapter 271, Local 19-13 Government Code. 19-14 (h) The provisions of Chapter 2253, Government Code, 19-15 relating to performance and payment bonds apply to construction 19-16 contracts let by the district. 19-17 (i) The district may acquire property, facilities, and 19-18 equipment for use in the hospital system and may mortgage or pledge 19-19 the property, facilities, or equipment acquired by the district as 19-20 security for the payment of the purchase price. 19-21 (j) The board of directors shall name one or more banks to 19-22 serve as depository for the funds of the district. All funds of 19-23 the district, except those invested as provided in Section 3.09(a) 19-24 of this article and those transmitted to a bank for payment for 19-25 bonds or obligations issued or assumed by the district, shall be 19-26 deposited as received with the depository bank and shall remain on 19-27 deposit. Nothing in this subsection may limit the power of the 20-1 board to place a portion of the board's funds on time deposit or to 20-2 purchase certificates of deposit or other investments permitted by 20-3 Chapter 2256, Government Code. 20-4 (k) Before the district deposits the district's funds in a 20-5 bank in an amount that exceeds the maximum amount secured by the 20-6 Federal Deposit Insurance Corporation, the bank must execute a bond 20-7 or other security in an amount sufficient to secure from loss the 20-8 district funds that exceed the amount secured by the Federal 20-9 Deposit Insurance Corporation. 20-10 SECTION 3.16. (a) The board of directors may provide 20-11 retirement benefits for employees of the district by establishing 20-12 or administering a retirement program or electing to participate in 20-13 the Texas County and District Retirement System or in any other 20-14 statewide retirement system in which the district is eligible to 20-15 participate. 20-16 (b) The board of directors may institute a suit to enforce 20-17 the payment of taxes or to foreclose liens to secure the payment of 20-18 taxes due the district. 20-19 (c) The district, subject to the approval of the board of 20-20 directors, may provide primary care, emergency services, preventive 20-21 medical services, and other health-related services outside the 20-22 boundaries of the district, provided the services serve the purpose 20-23 of the district as established by this article. 20-24 (d) The board of directors may also contract with the state 20-25 or agencies of the federal government to be reimbursed for the 20-26 treatment of sick, diseased, or injured persons. 20-27 (e) The district may contract with, affiliate with, or enter 21-1 into another arrangement with a managed care system, a preferred 21-2 provider organization, a health maintenance organization, another 21-3 provider of alternative health care or delivery system, or a 21-4 private hospital to jointly administer or deliver health care 21-5 services. The district may spend district funds to establish and 21-6 maintain partnerships, corporations, or other entities involved in 21-7 the delivery of health care services. 21-8 (f) The district may sponsor and create a nonprofit 21-9 corporation under the Texas Non-Profit Corporation Act (Article 21-10 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may 21-11 contribute funds to or solicit funds for the corporation. The 21-12 corporation may use funds, other than funds paid by the corporation 21-13 to the district, only to provide health care or other services the 21-14 district is authorized to provide under this article. The board of 21-15 directors of the hospital district shall establish adequate 21-16 controls to ensure that the corporation uses its funds as required 21-17 by this subsection. The corporation may invest corporation funds in 21-18 any manner in which the district may invest funds, including 21-19 investing funds as authorized by Chapter 2256, Government Code. 21-20 (g) The board of directors may spend district funds, enter 21-21 into agreements, and take other necessary action to recruit 21-22 physicians and other persons to serve as medical staff members or 21-23 employees of the district, including: 21-24 (1) advertising and marketing; 21-25 (2) paying travel, recruitment, and relocation 21-26 expenses; 21-27 (3) providing a loan or scholarship to a physician or 22-1 a person currently enrolled in health care education courses at an 22-2 institution of higher education who contractually agrees to become 22-3 a district employee or medical staff member; or 22-4 (4) contracting with one or more full-time medical 22-5 students or other students in a health occupation, enrolled in and 22-6 in good standing at an accredited medical school, college, or 22-7 university, to pay the student's tuition or other expenses in 22-8 consideration of the student's agreement to serve as an employee or 22-9 independent contractor for the district. 22-10 (h) The board of directors may spend district funds, enter 22-11 into agreements, and take other necessary action to conduct, 22-12 participate in, or otherwise assist in providing health care 22-13 educational programs for current or prospective medical staff 22-14 members or employees of the district. 22-15 SECTION 3.17. (a) The board of directors shall annually 22-16 levy a tax in an amount not to exceed the limit approved by the 22-17 voters for the purpose of paying: 22-18 (1) the indebtedness assumed or issued by the 22-19 district; or 22-20 (2) the maintenance and operating expenses of the 22-21 district. 22-22 (b) A tax levied under this section may not be levied to pay 22-23 the principal of or interest on revenue bonds issued under Section 22-24 3.14 of this article. 22-25 (c) In setting a tax rate under this section, the board of 22-26 directors shall consider the income of the district from sources 22-27 other than taxation. On determining the amount of tax required to 23-1 be levied, the board shall make the levy and certify the levy to 23-2 the tax assessor-collector. 23-3 SECTION 3.18. (a) Bonds issued and indebtedness assumed by 23-4 the district are a legal and authorized investment of a bank, 23-5 savings bank, trust company, savings and loan association, 23-6 insurance company, fiduciary, trustee, guardian, or sinking fund of 23-7 a municipality, school district, or other political subdivision of 23-8 the state, and for all public funds of the state or an agency of 23-9 the state, including the state permanent school fund. 23-10 (b) Bonds issued or indebtedness assumed by the district is 23-11 eligible to secure the deposit of public funds of the state and the 23-12 public funds of a municipality, school district, or other political 23-13 subdivision of the state, and is lawful and sufficient security for 23-14 those deposits to the extent of the value of the bonds or 23-15 indebtedness when accompanied by all unmatured coupons. 23-16 SECTION 3.19. (a) The district has the right and power of 23-17 eminent domain for the purpose of acquiring by condemnation any and 23-18 all property of any kind and character in fee simple, or any lesser 23-19 interest in the property, within the boundaries of the district if 23-20 necessary to the exercise of the rights or authority conferred by 23-21 this article in the manner provided by the general law with respect 23-22 to condemnation by counties. 23-23 (b) The district is not required to deposit in the trial 23-24 court money or bond as provided by Section 21.021, Property Code. 23-25 (c) In a condemnation proceeding prosecuted by the district, 23-26 the district is not required to: 23-27 (1) pay in advance or give bond or other security for 24-1 costs in the trial court; 24-2 (2) give any bond otherwise required for the issuance 24-3 of a temporary restraining order or a temporary injunction; or 24-4 (3) give bond for costs or for supersedeas on an 24-5 appeal or writ of error. 24-6 SECTION 3.20. (a) The board of directors may levy taxes for 24-7 the entire year in which the district is established as a result of 24-8 the initial election provided under this article. 24-9 (b) The Tax Code governs the appraisal, assessment, and 24-10 collection of district taxes. 24-11 (c) The board of directors may provide for the appointment 24-12 of a tax assessor-collector for the district or may contract for 24-13 the assessment and collection of taxes as provided by the Tax Code. 24-14 SECTION 3.21. (a) The district shall provide without charge 24-15 to a patient residing in the district the medical care and 24-16 treatment that the patient or a relative of the patient who is 24-17 legally responsible for the patient's support cannot pay. 24-18 (b) Each operating year, the district shall adopt an 24-19 application procedure to determine eligibility for assistance as 24-20 provided by Section 61.053, Health and Safety Code. 24-21 (c) An administrator may cause an inquiry to be made 24-22 regarding the financial circumstances of a patient under Subsection 24-23 (a) of this section residing in the district and admitted to a 24-24 district facility and of the relatives of the patient legally 24-25 responsible for the patient's support. If the patient or relative 24-26 is found to be able to pay for all or part of the care and 24-27 treatment, the administrator shall issue an order directing the 25-1 patient or the relative to pay to the district for the care and 25-2 support of the patient a specified sum each week in an amount that 25-3 the individual is able to pay. The administrator may collect sums 25-4 under this subsection from the estate of the patient or a relative 25-5 who is legally responsible for the patient's support in the manner 25-6 provided by law for collection of expenses in the last illness of a 25-7 deceased person. 25-8 (d) In the case of a dispute regarding the ability to pay, 25-9 the board of directors shall call witnesses, conduct a hearing, and 25-10 issue a final order. An appeal from a final order of the board 25-11 under this subsection shall be made to the district court in Cooke 25-12 County. The substantial evidence rule applies to an appeal under 25-13 this subsection. 25-14 SECTION 3.22. The board of directors, on behalf of the 25-15 district, may accept donations, gifts, and endowments to be held in 25-16 trust and administered by the board for purposes and under 25-17 directions, limitations, and provisions prescribed in writing by 25-18 the donor that are not inconsistent with the proper management of 25-19 the district. 25-20 SECTION 3.23. (a) If the board of directors declares that 25-21 funds are not available to meet the lawfully authorized obligations 25-22 of the district and that an emergency exists, the board may borrow 25-23 money at a rate not to exceed the maximum annual percentage rate 25-24 allowed by law for district obligations at the time of the loan. 25-25 (b) To secure a loan, the board may pledge: 25-26 (1) revenues of the district that are not pledged to 25-27 pay the bonded indebtedness of the district; 26-1 (2) district taxes to be levied by the district during 26-2 the 12-month period following the date of the pledge that are not 26-3 pledged to pay the principal of or interest on district bonds; or 26-4 (3) district bonds that have been authorized but not 26-5 sold. 26-6 (c) A loan for which taxes or bonds are pledged shall mature 26-7 not later than the first anniversary of the date on which the loan 26-8 is made. A loan for which district revenues are pledged shall 26-9 mature not later than the fifth anniversary of the date on which 26-10 the loan is made. 26-11 (d) The board of directors may not spend money obtained from 26-12 a loan under this section for any purpose other than the purpose 26-13 for which the board declared an emergency. If taxes or bonds are 26-14 pledged to pay the loan, the board may not spend the revenue other 26-15 than for the purpose for which the taxes were levied or the bonds 26-16 were authorized. 26-17 SECTION 3.24. (a) After the district is created, a county, 26-18 municipality, or political subdivision in or partly in the district 26-19 may not levy taxes or issue bonds or other obligations for hospital 26-20 purposes or for providing medical care for the residents of the 26-21 district. 26-22 (b) The district shall assume full responsibility for the 26-23 operation of all hospital facilities and for the furnishing of 26-24 medical and hospital care for the district's needy residents. 26-25 (c) When the district is created and established, the county 26-26 and all municipalities located in or partly in the district shall 26-27 convey and transfer to the district title to all land, buildings, 27-1 improvements, and equipment that pertain to a hospital or hospital 27-2 system located in the district owned by the county, municipality, 27-3 or other governmental entity. 27-4 (d) Operating funds and reserves for operating expenses that 27-5 have been budgeted by the county, municipality, or other 27-6 governmental entity in which the district is located to provide 27-7 medical care for residents of the district for the remainder of the 27-8 fiscal year in which the district is established, taxes levied for 27-9 hospital purposes for the current year, and all funds established 27-10 for payment of indebtedness assumed by the district shall be 27-11 transferred to the district. 27-12 SECTION 3.25. The support and maintenance of the district 27-13 may not become a charge against or an obligation of the state. A 27-14 direct appropriation by the legislature may not be made for the 27-15 construction, maintenance, or improvement of any of the facilities 27-16 of the district. 27-17 SECTION 3.26. In administering this article, the district is 27-18 performing an essential public function, and any bonds issued by 27-19 the board and the transfer and the issuance from the bonds, 27-20 including any profits made in the sale of the bonds, are exempt 27-21 from taxation by the state or any municipality or political 27-22 subdivision of the state. 27-23 SECTION 3.27. Proof of publication of the notice required in 27-24 the enactment of this Act under the provisions of Section 9, 27-25 Article IX, Texas Constitution, has been made in the manner and 27-26 form provided by law pertaining to the enactment of local and 27-27 special laws, and the notice is found and declared proper and 28-1 sufficient to satisfy the requirement. 28-2 ARTICLE 4. EFFECTIVE DATE 28-3 SECTION 4.01. This Act takes effect immediately if it 28-4 receives a vote of two-thirds of all the members elected to each 28-5 house, as provided by Section 39, Article III, Texas Constitution. 28-6 If this Act does not receive the vote necessary for immediate 28-7 effect, this Act takes effect September 1, 2001.