77R11467 YDB-D
By King of Parker H.B. No. 3132
Substitute the following for H.B. No. 3132:
By Farabee C.S.H.B. No. 3132
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.