77R14734 YDB-F
By Dunnam H.B. No. 3691
Substitute the following for H.B. No. 3691:
By Ramsay C.S.H.B. No. 3691
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of a hospital district to be known as the
1-4 West Medical District; authorizing a tax; and granting the
1-5 authority to issue and refund bonds.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1. GENERAL PROVISIONS
1-8 SECTION 1.01. DEFINITIONS. In this Act:
1-9 (1) "District" means the West Medical District.
1-10 (2) "Board" means the board of directors of the
1-11 district.
1-12 (3) "Director" means a member of the board.
1-13 SECTION 1.02. DISTRICT AUTHORIZATION. A hospital district
1-14 to be known as the West Medical District may be created and
1-15 established and, if created, must be maintained, operated, and
1-16 financed in the manner provided by Section 9, Article IX, Texas
1-17 Constitution, and by this Act.
1-18 SECTION 1.03. BOUNDARIES. The boundaries of the district
1-19 are coextensive with the boundaries of the West Independent School
1-20 District in McLennan County.
1-21 SECTION 1.04. ELECTION CODE PROVISIONS. Section 41.001(a),
1-22 Election Code, does not apply to an election ordered under this
1-23 Act.
1-24 ARTICLE 2. TEMPORARY DIRECTORS
2-1 SECTION 2.01. TEMPORARY DIRECTORS. On the effective date of
2-2 this Act, the following persons become temporary directors of the
2-3 district:
2-4 (1) John Crowder;
2-5 (2) Roby Urbanovsky;
2-6 (3) Larry Sparks;
2-7 (4) Jeanette Karlik;
2-8 (5) Robby Payne;
2-9 (6) Tommy Muska; and
2-10 (7) Kirk Wines.
2-11 SECTION 2.02. VACANCY IN OFFICE. The directors remaining
2-12 after a vacancy in the office of a temporary director shall fill
2-13 the vacancy by appointment by majority vote.
2-14 ARTICLE 3. CREATION OF DISTRICT
2-15 SECTION 3.01. CREATION ELECTION. The district may be
2-16 created and a tax may be authorized only if the creation and the
2-17 tax are approved by a majority of the qualified voters of the
2-18 territory of the proposed district voting at an election called and
2-19 held for that purpose.
2-20 SECTION 3.02. ORDERING ELECTION. (a) A majority of the
2-21 temporary directors of the district may order a creation election
2-22 to be held as prescribed by Subsection (c) of this section.
2-23 (b) On presentation of a petition for a creation election
2-24 signed by at least 50 of the registered voters of the territory of
2-25 the proposed district, according to the most recent official list
2-26 of registered voters, the temporary directors shall order an
2-27 election to be held as prescribed by Subsection (c) of this
3-1 section. The election shall be called not later than the 60th day
3-2 after the date the petition is presented to the district.
3-3 (c) The election order must call for an election to be held
3-4 in the territory within the West Independent School District
3-5 boundaries in McLennan County.
3-6 SECTION 3.03. ELECTION ORDER. The order calling the
3-7 election must state:
3-8 (1) the nature of the election, including the
3-9 proposition that is to appear on the ballot;
3-10 (2) the date of the election;
3-11 (3) the hours during which the polls will be open; and
3-12 (4) the location of the polling places.
3-13 SECTION 3.04. NOTICE. The temporary directors shall give
3-14 notice of the election by publishing a substantial copy of the
3-15 election order in a newspaper of general circulation in the
3-16 proposed district once a week for two consecutive weeks. The first
3-17 publication must appear at least 35 days before the date set for
3-18 the election.
3-19 SECTION 3.05. ELECTION DATE. The election shall be held not
3-20 less than 45 days or more than 60 days after the date on which the
3-21 election is ordered.
3-22 SECTION 3.06. BALLOT PROPOSITION. The ballot for the
3-23 election shall be printed to permit voting for or against the
3-24 proposition: "The creation of a hospital district to be known as
3-25 the West Medical District and the levy of annual taxes for hospital
3-26 purposes at a rate not to exceed 75 cents on each $100 valuation of
3-27 all taxable property in the district."
4-1 SECTION 3.07. CANVASSING RETURNS. (a) The temporary
4-2 directors shall meet and canvass the returns of the election.
4-3 (b) If a majority of the votes cast at the election favor
4-4 creation of the district, the temporary directors shall declare the
4-5 district created and shall enter the results in their minutes.
4-6 (c) If the creation of the district is defeated, the
4-7 temporary directors may call and hold another creation election,
4-8 but another creation election may not be called and held before the
4-9 first anniversary of the date of the most recent creation election.
4-10 SECTION 3.08. EXPIRATION OF ACT. If the creation of the
4-11 district is not approved at an election held before the fifth
4-12 anniversary of the effective date of this Act, this Act expires.
4-13 ARTICLE 4. DISTRICT ADMINISTRATION
4-14 SECTION 4.01. BOARD OF DIRECTORS. (a) The district is
4-15 governed by a board of seven directors.
4-16 (b) From the time the creation of the district is approved
4-17 until the elected directors take office, the temporary directors
4-18 serve as directors of the district.
4-19 SECTION 4.02. INITIAL DIRECTORS ELECTION. (a) Directors
4-20 shall be elected at an election to be held on the first Saturday in
4-21 May following the creation of the district.
4-22 (b) At the initial election of directors following creation
4-23 of the district, members of the board of directors shall be elected
4-24 at large on a single ballot, with the seven candidates receiving
4-25 the highest number of votes being elected as directors. The
4-26 directors elected at the initial election shall draw lots to
4-27 determine which two directors shall serve one-year terms, which two
5-1 directors shall serve two-year terms, and which three directors
5-2 shall serve three-year terms.
5-3 SECTION 4.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF
5-4 OFFICE; ELECTION DATE. (a) After the initial election of
5-5 directors following creation of the district, an election shall be
5-6 held on the first Saturday in May each year to elect the
5-7 appropriate number of successor directors.
5-8 (b) The directors shall be elected at large.
5-9 (c) Except as provided by Section 4.02(b) of this Act, each
5-10 director is elected for a three-year term.
5-11 SECTION 4.04. NOTICE OF ELECTION. Notice of each election
5-12 of directors shall be published in a newspaper of general
5-13 circulation in the district in accordance with Chapter 4, Election
5-14 Code.
5-15 SECTION 4.05. APPLICATION. A person who wishes to have the
5-16 person's name printed on the ballot as a candidate for director
5-17 must file an application with the secretary of the board of
5-18 directors in accordance with Chapter 144, Election Code.
5-19 SECTION 4.06. QUALIFICATIONS FOR OFFICE. (a) To be
5-20 eligible to be a candidate for or to serve as a director, a person
5-21 must be:
5-22 (1) a resident of the district; and
5-23 (2) a qualified voter.
5-24 (b) An employee of the district may not serve as a director.
5-25 SECTION 4.07. BOND. (a) Before assuming the duties of the
5-26 office, each director must execute a bond for $5,000 payable to the
5-27 district, conditioned on the faithful performance of the person's
6-1 duties as director.
6-2 (b) The bond shall be kept in the permanent records of the
6-3 district.
6-4 (c) The board may pay for the director's bond with district
6-5 funds.
6-6 SECTION 4.08. BOARD VACANCY. A vacancy in the office of
6-7 director shall be filled for the unexpired term by appointment by
6-8 the remaining directors.
6-9 SECTION 4.09. OFFICERS; OFFICERS' TERMS; VACANCY. (a) The
6-10 board shall elect from among its members a president and a vice
6-11 president.
6-12 (b) The board shall appoint a secretary, who need not be a
6-13 director.
6-14 (c) Each officer of the board serves for a term of one year.
6-15 (d) The board shall fill a vacancy in a board office for the
6-16 unexpired term.
6-17 SECTION 4.10. COMPENSATION. (a) Directors and officers
6-18 serve without compensation but may be reimbursed for actual
6-19 expenses incurred in the performance of official duties.
6-20 (b) Expenses reimbursed under this section must be:
6-21 (1) reported in the district's minute book or other
6-22 district records; and
6-23 (2) approved by the board.
6-24 SECTION 4.11. QUORUM; VOTING REQUIREMENT. (a) A majority
6-25 of the membership of the board constitutes a quorum for the
6-26 transaction of business.
6-27 (b) When a quorum is present, a majority of the members of
7-1 the board voting must concur in a matter relating to the business
7-2 of the district.
7-3 SECTION 4.12. ADMINISTRATOR AND ASSISTANT ADMINISTRATOR.
7-4 (a) The board may appoint a qualified person as administrator of
7-5 the district and may in its discretion appoint an assistant to the
7-6 administrator.
7-7 (b) The administrator and assistant administrator, if any,
7-8 serve at the will of the board.
7-9 (c) The administrator and assistant administrator, if any,
7-10 are entitled to compensation as determined by the board.
7-11 (d) The administrator shall supervise all the work and
7-12 activities of the district and shall have general direction of the
7-13 affairs of the district, subject to any limitations the board may
7-14 prescribe.
7-15 (e) Before assuming the duties of administrator, the
7-16 administrator shall execute a bond payable to the hospital district
7-17 in an amount not less than $5,000 as determined by the board,
7-18 conditioned on the administrator's performing the administrator's
7-19 duties required under this Act. The board may pay for the bond
7-20 with district funds.
7-21 (f) The board may delegate to the administrator the
7-22 authority to employ or contract with persons for the district.
7-23 SECTION 4.13. APPOINTMENTS TO STAFF. The board may:
7-24 (1) appoint to the staff any doctors the board
7-25 considers necessary for the efficient operation of the district;
7-26 and
7-27 (2) make temporary appointments the board considers
8-1 necessary.
8-2 SECTION 4.14. TECHNICIANS, NURSES, AND OTHER DISTRICT
8-3 EMPLOYEES. The district may employ or contract with technicians,
8-4 nurses, fiscal agents, accountants, architects, attorneys, and
8-5 other necessary employees.
8-6 ARTICLE 5. POWERS AND DUTIES
8-7 SECTION 5.01. RESPONSIBILITY OF GOVERNMENTAL ENTITY. (a)
8-8 On creation of the district, the West Hospital Authority may, in
8-9 the authority's sole discretion, convey or transfer to the
8-10 district:
8-11 (1) title to any land, buildings, improvements, or
8-12 equipment related to the hospital system that is owned by the West
8-13 Hospital Authority;
8-14 (2) operating funds and reserves for operating
8-15 expenses and funds that have been budgeted by the West Hospital
8-16 Authority to provide medical care for residents of the district for
8-17 the remainder of the fiscal year in which the district is
8-18 established; and
8-19 (3) accounts receivable of the West Hospital Authority
8-20 for medical care provided for residents of the district.
8-21 (b) The West Hospital Authority shall convey or transfer to
8-22 the district funds established for payment of indebtedness assumed
8-23 by the district.
8-24 (c) Except as provided by Subsection (b) of this section,
8-25 nothing in this Act requires the West Hospital Authority to convey
8-26 or transfer any funds or interest in property to the district.
8-27 (d) On creation of the district, McLennan County may
9-1 transfer to the district:
9-2 (1) any taxes levied by McLennan County for hospital
9-3 purposes for residents of the district for the year in which the
9-4 district is created; or
9-5 (2) any accounts receivable of McLennan County for
9-6 medical care provided for residents of the district.
9-7 SECTION 5.02. LIMITATION ON GOVERNMENTAL ENTITY. On or
9-8 after creation of the district, another governmental entity,
9-9 including a county or municipality, in which the district is
9-10 located may not levy taxes or issue bonds or other obligations for
9-11 hospital purposes or for providing medical care for the residents
9-12 of the district.
9-13 SECTION 5.03. DISTRICT RESPONSIBILITIES. (a) On creation
9-14 of the district, the district:
9-15 (1) assumes full responsibility for operating hospital
9-16 facilities and for furnishing medical and hospital care for the
9-17 district's needy inhabitants;
9-18 (2) assumes any outstanding indebtedness incurred by a
9-19 county, municipality, or other governmental entity in which all or
9-20 part of the district is located in providing hospital care for
9-21 residents of the territory of the district before the district's
9-22 creation; and
9-23 (3) may operate or provide for the operation of a
9-24 mobile emergency medical service.
9-25 (b) If part of a county, municipality, or other governmental
9-26 entity is included in the district and part is not included in the
9-27 district, the amount of indebtedness the district assumes under
10-1 Subsection (a)(2) of this section is the portion of the total
10-2 outstanding indebtedness of the county, municipality, or other
10-3 entity for hospital care for all residents of the county,
10-4 municipality, or other entity that the value of taxable property in
10-5 the district bears to the total value of taxable property in the
10-6 county, municipality, or other entity according to the last
10-7 preceding approved assessment rolls of the county, municipality, or
10-8 other entity before the district is confirmed.
10-9 SECTION 5.04. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
10-10 board shall manage, control, and administer the hospital system and
10-11 the funds and resources of the district.
10-12 SECTION 5.05. DISTRICT RULES. The board may adopt rules
10-13 governing the operations of the hospital and hospital system and
10-14 the duties, functions, and responsibilities of district staff and
10-15 employees.
10-16 SECTION 5.06. METHODS AND PROCEDURES. The board may
10-17 prescribe:
10-18 (1) the method of making purchases and expenditures by
10-19 and for the district; and
10-20 (2) accounting and control procedures for the
10-21 district.
10-22 SECTION 5.07. HOSPITAL PROPERTY, FACILITIES, EQUIPMENT, AND
10-23 SERVICES. (a) The board shall determine the type, number, and
10-24 location of buildings required to establish and maintain an
10-25 adequate hospital system and the type of equipment necessary for
10-26 hospital care.
10-27 (b) The board has complete discretion as to the type and
11-1 extent of services the district will offer. The district may
11-2 provide any services or facilities the board finds necessary for
11-3 hospital or medical care, including:
11-4 (1) emergency medical services;
11-5 (2) primary care clinics;
11-6 (3) outpatient clinics;
11-7 (4) home health agencies;
11-8 (5) pharmacies;
11-9 (6) nursing facilities;
11-10 (7) assisted living facilities;
11-11 (8) blood banks;
11-12 (9) community mental health centers;
11-13 (10) alcohol or chemical dependency centers;
11-14 (11) minor emergency centers;
11-15 (12) research centers; or
11-16 (13) laboratories.
11-17 (c) The board may:
11-18 (1) acquire property, facilities, and equipment for
11-19 the district for use in the hospital system;
11-20 (2) mortgage or pledge the property, facilities, or
11-21 equipment acquired as security for the payment of the purchase
11-22 price;
11-23 (3) transfer by lease to physicians, individuals,
11-24 companies, corporations, or other legal entities or acquire by
11-25 lease district hospital facilities; and
11-26 (4) sell or otherwise dispose of property, facilities,
11-27 or equipment.
12-1 SECTION 5.08. CONSTRUCTION CONTRACTS. (a) The board may
12-2 enter into construction contracts on behalf of the district.
12-3 (b) A contract for construction in excess of the amount
12-4 provided by Section 271.024, Local Government Code, may be made
12-5 only after competitive bidding as provided by Subchapter B, Chapter
12-6 271, Local Government Code.
12-7 (c) Chapter 2253, Government Code, as it relates to
12-8 performance and payment bonds, applies to construction contracts
12-9 let by the district.
12-10 SECTION 5.09. DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
12-11 The board may enter into operating or management contracts relating
12-12 to hospital facilities on behalf of the district.
12-13 SECTION 5.10. INDIGENT CARE. (a) The district shall supply
12-14 care and treatment without charge to a patient who resides in the
12-15 district if the patient or relative who is legally responsible for
12-16 the patient's support cannot pay for the care and treatment.
12-17 (b) The board shall determine the health care services to be
12-18 provided to residents eligible for assistance under this section to
12-19 fulfill the district's obligations under Section 9, Article IX,
12-20 Texas Constitution, and Section 61.055, Health and Safety Code.
12-21 The board may enter into a contract with another entity to fulfill
12-22 its obligations under this Act, Section 9, Article IX, Texas
12-23 Constitution, and Section 61.055, Health and Safety Code.
12-24 (c) Not later than the first day of each operating year, the
12-25 district shall adopt an application procedure to determine
12-26 eligibility for assistance, as provided by Section 61.053, Health
12-27 and Safety Code.
13-1 (d) The administrator of the district may have an inquiry
13-2 made into the financial circumstances of:
13-3 (1) a patient residing in the district and admitted to
13-4 a district facility; and
13-5 (2) a relative of the patient who is legally
13-6 responsible for the patient's support.
13-7 (e) On finding that the patient or a relative of the patient
13-8 legally responsible for the patient's support can pay for all or
13-9 any part of the care and treatment provided by the district, the
13-10 administrator shall report that finding to the board, and the board
13-11 shall issue an order directing the patient or the relative to pay
13-12 the district each week a specified amount that the individual is
13-13 able to pay.
13-14 (f) The administrator may collect money owed to the district
13-15 from the estate of the patient or from that of a relative who was
13-16 legally responsible for the patient's support in the manner
13-17 provided by law for collection of expenses in the last illness of a
13-18 deceased person.
13-19 (g) If there is a dispute relating to an individual's
13-20 ability to pay or if the administrator has any doubt concerning the
13-21 individual's ability to pay, the board shall call witnesses, hear
13-22 and resolve the question, and issue a final order. An appeal from
13-23 a final order of the board must be made to a district court in the
13-24 county in which the district is located, and the substantial
13-25 evidence rule applies.
13-26 SECTION 5.11. REIMBURSEMENT FOR SERVICES. (a) The board
13-27 shall require reimbursement from a county, municipality, or public
14-1 hospital located outside the boundaries of the district for the
14-2 district's care and treatment of a sick, diseased, or injured
14-3 person of that county, municipality, or public hospital as provided
14-4 by Chapter 61, Health and Safety Code.
14-5 (b) The board shall require reimbursement from the sheriff
14-6 or police chief of a county or municipality for the district's care
14-7 and treatment of a person confined in a jail facility of the county
14-8 or municipality who is not a resident of the district.
14-9 (c) The board may contract with state or federal government
14-10 for the state or federal government to reimburse the district for
14-11 treatment of a sick, diseased, or injured person.
14-12 SECTION 5.12. SERVICE CONTRACTS. The board may contract
14-13 with a municipality, county, special district, or other political
14-14 subdivision of the state or with a state or federal agency for the
14-15 district to:
14-16 (1) furnish a mobile emergency medical service; or
14-17 (2) provide for the investigatory or welfare needs of
14-18 inhabitants of the district.
14-19 SECTION 5.13. GIFTS AND ENDOWMENTS. On behalf of the
14-20 district, the board may accept gifts and endowments to be held in
14-21 trust for any purpose and under any direction, limitation, or
14-22 provision prescribed in writing by the donor that is consistent
14-23 with the proper management of the district.
14-24 SECTION 5.14. AUTHORITY TO SUE AND BE SUED. The board may
14-25 sue and be sued on behalf of the district.
14-26 SECTION 5.15. RETIREMENT BENEFITS. The board may provide
14-27 retirement benefits for the employees of the district by
15-1 establishing or administering a retirement program or electing to
15-2 participate in any statewide retirement system in which the
15-3 district is eligible to participate.
15-4 SECTION 5.16. RECRUITMENT OF STAFF AND EMPLOYEES. The board
15-5 may spend district funds, enter into agreements, and take other
15-6 necessary action to recruit physicians, nurses, and other persons
15-7 to serve as medical staff members or employees of the district,
15-8 including:
15-9 (1) advertising and marketing;
15-10 (2) paying travel, recruitment, and relocation
15-11 expenses;
15-12 (3) providing a loan or scholarship to a physician or
15-13 a person currently enrolled in health care education courses at an
15-14 institution of higher education who contractually agrees to become
15-15 a district employee or medical staff member; or
15-16 (4) contracting with one or more full-time medical
15-17 students or other students in a health occupation, each of whom
15-18 shall be enrolled in and in good standing at an accredited medical
15-19 school, college, or university, to pay the student's tuition or
15-20 other expenses in consideration of the student's agreement to serve
15-21 as an employee or independent contractor for the district.
15-22 SECTION 5.17. NONPROFIT CORPORATION. The district may
15-23 sponsor and create a nonprofit corporation under the Texas
15-24 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
15-25 Texas Civil Statutes), and may contribute funds to or solicit funds
15-26 for the corporation. The corporation may use district funds only
15-27 to provide health care or other services the district is authorized
16-1 to provide under this Act. The board shall establish adequate
16-2 controls to ensure that the corporation uses its funds as required
16-3 by law. The corporation may invest corporation funds in any manner
16-4 in which the district may invest funds, including investing funds
16-5 as authorized by Chapter 2256, Government Code.
16-6 ARTICLE 6. DISTRICT FINANCES
16-7 SECTION 6.01. FISCAL YEAR. (a) The district operates on
16-8 the fiscal year established by the board.
16-9 (b) The fiscal year may not be changed if revenue bonds of
16-10 the district are outstanding or more than once in a 24-month
16-11 period.
16-12 SECTION 6.02. ANNUAL AUDIT. The board annually shall have
16-13 an audit made of the financial condition of the district.
16-14 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit
16-15 and other district records are open to inspection during regular
16-16 business hours at the principal office of the district.
16-17 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the
16-18 district shall prepare a proposed annual budget for the district.
16-19 (b) The proposed budget must contain a complete financial
16-20 statement, including a statement of:
16-21 (1) the outstanding obligations of the district;
16-22 (2) the amount of cash on hand to the credit of each
16-23 fund of the district;
16-24 (3) the amount of money received by the district from
16-25 all sources during the previous year;
16-26 (4) the amount of money available to the district from
16-27 all sources during the ensuing year;
17-1 (5) the amount of the balances expected at the end of
17-2 the year in which the budget is being prepared;
17-3 (6) the estimated amount of revenues and balances
17-4 available to cover the proposed budget; and
17-5 (7) the estimated tax rate that will be required.
17-6 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
17-7 board shall hold a public hearing on the proposed annual budget.
17-8 (b) The board shall publish notice of the hearing in a
17-9 newspaper of general circulation in the district not later than the
17-10 10th day before the date of the hearing.
17-11 (c) Any resident of the district is entitled to be present
17-12 and participate at the hearing.
17-13 (d) At the conclusion of the hearing, the board shall adopt
17-14 a budget by acting on the budget proposed by the administrator.
17-15 The board may make any changes in the proposed budget that in its
17-16 judgment the interests of the taxpayers demand.
17-17 (e) The budget is effective only after adoption by the
17-18 board.
17-19 SECTION 6.06. AMENDING BUDGET. After adoption, the annual
17-20 budget may be amended on the board's approval.
17-21 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be
17-22 spent for an expense not included in the annual budget or an
17-23 amendment to it.
17-24 SECTION 6.08. SWORN STATEMENT. As soon as practicable after
17-25 the close of the fiscal year, the administrator shall prepare for
17-26 the board a sworn statement of the amount of money that belongs to
17-27 the district and an account of the disbursements of that money.
18-1 SECTION 6.09. BORROWING MONEY. (a) The district may borrow
18-2 money at a rate not to exceed the minimum annual percentage rate
18-3 allowed by law for district obligations at the time of the loan.
18-4 (b) To secure a loan, the board may pledge:
18-5 (1) the revenues of the district that are not pledged
18-6 to pay the bonded indebtedness of the district;
18-7 (2) district taxes to be levied by the district during
18-8 the 12-month period following the date of the pledge that are not
18-9 pledged to pay the principal of or interest on district bonds; or
18-10 (3) district bonds that have been authorized but not
18-11 sold.
18-12 (c) A loan for which taxes or bonds are pledged shall mature
18-13 not later than the first anniversary of the date on which the loan
18-14 is made. A loan for which district revenues are pledged shall
18-15 mature not later than the fifth anniversary of the date on which
18-16 the loan is made.
18-17 SECTION 6.10. DEPOSITORY. (a) The board shall name at
18-18 least one bank to serve as depository for district funds.
18-19 (b) District funds, other than those transmitted to a bank
18-20 for payment of bonds or obligations issued or assumed by the
18-21 district, shall be deposited as received with the depository bank
18-22 and must remain on deposit. This subsection does not limit the
18-23 power of the board to place a portion of district funds on time
18-24 deposit or to purchase certificates of deposit.
18-25 (c) Before the district deposits funds in a bank in an
18-26 amount that exceeds the maximum amount secured by the Federal
18-27 Deposit Insurance Corporation, the bank must execute a bond or
19-1 other security in an amount sufficient to secure from loss the
19-2 district funds that exceed the amount secured by the Federal
19-3 Deposit Insurance Corporation.
19-4 ARTICLE 7. BONDS
19-5 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue
19-6 and sell bonds authorized by an election in the name and on the
19-7 faith and credit of the hospital district to:
19-8 (1) purchase, construct, acquire, repair, or renovate
19-9 buildings or improvements;
19-10 (2) equip buildings or improvements for hospital
19-11 purposes; or
19-12 (3) acquire and operate a mobile emergency medical
19-13 service.
19-14 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the
19-15 bonds are issued by the district, the board shall levy a tax.
19-16 (b) The tax must be sufficient to create an interest and
19-17 sinking fund to pay the principal of and interest on the bonds as
19-18 the bonds mature.
19-19 (c) In any year, the tax together with any other tax the
19-20 district levies may not exceed the limit approved by the voters at
19-21 the election authorizing the levy of taxes.
19-22 SECTION 7.03. BOND ELECTION. (a) The district may issue
19-23 general obligation bonds only if the bonds are authorized by a
19-24 majority of the qualified voters of the district voting at an
19-25 election called and held for that purpose under this section.
19-26 (b) The board may order a bond election. The order calling
19-27 the election must state:
20-1 (1) the nature and date of the election;
20-2 (2) the hours during which the polls will be open;
20-3 (3) the location of the polling places;
20-4 (4) the amounts of bonds to be authorized; and
20-5 (5) the maximum maturity of the bonds.
20-6 (c) Notice of a bond election shall be given as provided by
20-7 Chapter 1251, Government Code.
20-8 (d) The board shall canvass the returns and declare the
20-9 results of the election.
20-10 SECTION 7.04. REVENUE BONDS. (a) The board may issue bonds
20-11 to:
20-12 (1) purchase, construct, acquire, repair, equip, or
20-13 renovate buildings or improvements for hospital purposes;
20-14 (2) acquire sites to be used for hospital purposes; or
20-15 (3) acquire and operate a mobile emergency medical
20-16 service to assist the district in carrying out the district's
20-17 hospital purpose.
20-18 (b) The bonds must be payable from and secured by a pledge
20-19 of all or part of the revenues derived from the operation of the
20-20 district's hospital system. The bonds may be additionally secured
20-21 by a mortgage or deed of trust lien on all or part of district
20-22 property.
20-23 (c) The bonds must be issued in the manner provided by
20-24 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
20-25 Health and Safety Code, for issuance of revenue bonds by county
20-26 hospital authorities.
20-27 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the
21-1 district may be issued to refund and pay off any outstanding
21-2 indebtedness the district has issued or assumed.
21-3 (b) The bonds must be issued in the manner provided by
21-4 Chapter 1207, Government Code.
21-5 SECTION 7.06. INTEREST AND MATURITY. District bonds must
21-6 mature not later than the 50th anniversary of the date of their
21-7 issuance and must bear interest at a rate not to exceed that
21-8 provided by Chapter 1204, Government Code.
21-9 SECTION 7.07. EXECUTION OF BONDS. The president of the board
21-10 shall execute the bonds in the name of the district, and the
21-11 secretary of the board shall countersign the bonds in the manner
21-12 provided by Chapter 618, Government Code.
21-13 SECTION 7.08. APPROVAL AND REGISTRATION OF BONDS. (a)
21-14 District bonds are subject to the same requirements with regard to
21-15 approval by the attorney general and registration by the
21-16 comptroller as the law provides for approval and registration of
21-17 bonds issued by counties.
21-18 (b) On approval by the attorney general and registration by
21-19 the comptroller, the bonds are incontestable for any cause.
21-20 SECTION 7.09. BONDS AS INVESTMENTS. District bonds and
21-21 indebtedness assumed by the district are legal and authorized
21-22 investments for:
21-23 (1) banks;
21-24 (2) savings banks;
21-25 (3) trust companies;
21-26 (4) savings and loan associations;
21-27 (5) insurance companies;
22-1 (6) fiduciaries;
22-2 (7) trustees;
22-3 (8) guardians; and
22-4 (9) sinking funds of municipalities, counties, school
22-5 districts, and other political subdivisions of the state and other
22-6 public funds of the state and its agencies, including the permanent
22-7 school fund.
22-8 SECTION 7.10. BONDS AS SECURITY FOR DEPOSITS. District bonds
22-9 are eligible to secure deposits of public funds of the state and of
22-10 municipalities, counties, school districts, and other political
22-11 subdivisions of the state. The bonds are lawful and sufficient
22-12 security for deposits to the extent of their value if accompanied
22-13 by all unmatured coupons.
22-14 SECTION 7.11. TAX STATUS OF BONDS. Because the district
22-15 created under this Act is a public entity performing an essential
22-16 public function, bonds issued by the district, any transaction
22-17 relating to the bonds, and profits made in the sale of the bonds
22-18 are free from taxation by the state or by any municipality, county,
22-19 special district, or other political subdivision of the state.
22-20 ARTICLE 8. TAXES
22-21 SECTION 8.01. LEVY OF TAXES. (a) The board annually may
22-22 impose property taxes in an amount not to exceed the limit approved
22-23 by the voters at the election authorizing the levy of taxes.
22-24 (b) The tax rate for all purposes may not exceed 75 cents on
22-25 each $100 valuation of all taxable property in the district.
22-26 (c) The taxes may be used to pay:
22-27 (1) the indebtedness issued or assumed by the
23-1 district; and
23-2 (2) the maintenance and operating expenses of the
23-3 district.
23-4 (d) The district may not impose taxes to pay the principal
23-5 of or interest on revenue bonds issued under this Act.
23-6 SECTION 8.02. BOARD AUTHORITY. The board may impose taxes
23-7 for the entire year in which the district is created.
23-8 SECTION 8.03. ADOPTING TAX RATE. In adopting the tax rate,
23-9 the board shall consider the income of the district from sources
23-10 other than taxation.
23-11 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) The Tax
23-12 Code governs the appraisal, assessment, and collection of district
23-13 taxes.
23-14 (b) The board may provide for the appointment of a tax
23-15 assessor-collector for the district or may contract for the
23-16 assessment and collection of taxes as provided by the Tax Code.
23-17 ARTICLE 9. DISSOLUTION OF DISTRICT
23-18 SECTION 9.01. DISSOLUTION ELECTION. The district may be
23-19 dissolved only if the dissolution is approved by a majority of the
23-20 qualified voters of the district voting in an election called and
23-21 held for that purpose.
23-22 SECTION 9.02. ORDERING ELECTION. (a) The board may order an
23-23 election on the question of dissolving the district and disposing
23-24 of the district's assets and obligations.
23-25 (b) The board shall order an election on the question of
23-26 dissolving the district and disposing of the district's assets and
23-27 obligations if the board receives a petition requesting an election
24-1 that is signed by a number of registered voters of the district
24-2 equal to at least 15 percent of the registered voters in the
24-3 district.
24-4 SECTION 9.03. ELECTION ORDER. The order calling the election
24-5 must state:
24-6 (1) the nature of the election, including the
24-7 proposition that is to appear on the ballot;
24-8 (2) the date of the election;
24-9 (3) the hours during which the polls will be open; and
24-10 (4) the location of the polling places.
24-11 SECTION 9.04. NOTICE. The board shall give notice of the
24-12 election by publishing a substantial copy of the election order in
24-13 a newspaper with general circulation in the district once a week
24-14 for two consecutive weeks. The first publication must appear at
24-15 least 35 days before the date set for the election.
24-16 SECTION 9.05. ELECTION DATE. (a) The election shall be held
24-17 not later than the 60th day after the date the election is ordered.
24-18 (b) Section 41.001, Election Code, does not apply to an
24-19 election ordered under this section.
24-20 SECTION 9.06. BALLOT PROPOSITION. The ballot for an election
24-21 at which the dissolution of the district is proposed shall be
24-22 printed to permit voting for or against the proposition: "The
24-23 dissolution of the West Medical District."
24-24 SECTION 9.07. CANVASSING RETURNS. (a) The board shall
24-25 canvass the returns of the election.
24-26 (b) If a majority of the votes in the election favor
24-27 dissolution, the board shall find that the district is dissolved.
25-1 (c) If a majority of the votes in the election do not favor
25-2 dissolution, the board shall continue to administer the district,
25-3 and another election on the question of dissolution may not be held
25-4 before the first anniversary of the date of the most recent
25-5 election to dissolve the district.
25-6 SECTION 9.08. DISSOLUTION PROCEDURES. (a) If a majority of
25-7 the votes in the election favor dissolution, the board shall:
25-8 (1) transfer the land, buildings, improvements,
25-9 equipment, and other assets that belong to the district to a county
25-10 or another governmental entity in the county in which the district
25-11 is located;
25-12 (2) sell the assets and liabilities to another person
25-13 or entity; or
25-14 (3) administer the property, assets, and debts until
25-15 all funds have been disposed of and all district debts have been
25-16 paid or settled.
25-17 (b) If the district transfers the land, buildings,
25-18 improvements, equipment, and other assets to a county or other
25-19 governmental entity, the county or entity assumes all debts and
25-20 obligations of the district at the time of the transfer, at which
25-21 time the district is dissolved. If the district does not transfer
25-22 the land, buildings, improvements, equipment, and other assets to a
25-23 county or other governmental entity, or sell those assets and the
25-24 liabilities to another person, the board shall administer the
25-25 property, assets, and debts of the district until all funds have
25-26 been disposed of and all district debts have been paid or settled,
25-27 at which time the district is dissolved.
26-1 (c) After the board finds that the district is dissolved,
26-2 the board shall:
26-3 (1) determine the debt owed by the district; and
26-4 (2) impose on the property included in the district's
26-5 tax rolls a tax that is in proportion of the debt to the property
26-6 value.
26-7 (d) When all outstanding debts and obligations of the
26-8 district are paid, the board shall order the secretary to return
26-9 the pro rata share of all unused tax money to each district
26-10 taxpayer.
26-11 (e) A taxpayer may request that the taxpayer's share of
26-12 surplus tax money be credited to the taxpayer's county taxes. If a
26-13 taxpayer requests the credit, the board shall direct the secretary
26-14 to transmit the funds to the county tax assessor-collector.
26-15 (f) After the district has paid all of the district's debts
26-16 and has disposed of all of the district's assets and funds as
26-17 prescribed by this section, the board shall file a written report
26-18 with the Commissioners Court of McLennan County setting forth a
26-19 summary of the board's actions in dissolving the district.
26-20 (g) Not later than the 10th day after the date it receives
26-21 the report and determines that the requirements of this section
26-22 have been fulfilled, the Commissioners Court of McLennan County
26-23 shall enter an order dissolving the district and releasing the
26-24 board from any further duty or obligation.
26-25 SECTION 9.09. SALE OR TRANSFER OF ASSETS. (a) The district
26-26 may provide for the sale or transfer of the district's assets and
26-27 liabilities to another entity or person and the district's
27-1 subsequent dissolution. The dissolution of the district and the
27-2 sale or transfer of the district's assets and liabilities to
27-3 another person or entity may not contravene a trust indenture or
27-4 bond resolution relating to the outstanding bonds of the district.
27-5 The dissolution and sale or transfer does not diminish or impair
27-6 the rights of a holder of an outstanding bond, warrant, or other
27-7 obligation of the district.
27-8 (b) The sale or transfer of the district's assets and
27-9 liabilities must satisfy the debt and bond obligations of the
27-10 district in a manner that protects the interests of the residents
27-11 of the district, including the residents' collective property
27-12 rights in the district's assets. Any grant from federal funds is
27-13 considered an obligation to be repaid in satisfaction. The
27-14 district may not transfer or dispose of the district's assets
27-15 except for due compensation unless the transfer is made to another
27-16 governmental agency that serves the district and the transferred
27-17 assets are to be used for the benefit of residents of the district.
27-18 ARTICLE 10. MISCELLANEOUS
27-19 SECTION 10.01. LIMITATION ON STATE ASSISTANCE. The state may
27-20 not become obligated for the support or maintenance of a hospital
27-21 district created under this Act, nor may the legislature make a
27-22 direct appropriation for the construction, maintenance, or
27-23 improvement of a facility of the district.
27-24 SECTION 10.02. REQUIRED PUBLICATION. Proof of publication of
27-25 the notice required in the enactment of this Act under the
27-26 provisions of Section 9, Article IX, Texas Constitution, has been
27-27 made in the manner and form provided by law pertaining to the
28-1 enactment of local and special laws, and the notice is found and
28-2 declared proper and sufficient to satisfy the requirement.
28-3 SECTION 10.03. EFFECTIVE DATE. This Act takes effect
28-4 immediately if it receives a vote of two-thirds of all the members
28-5 elected to each house, as provided by Section 39, Article III,
28-6 Texas Constitution. If this Act does not receive the vote
28-7 necessary for immediate effect, this Act takes effect September 1,
28-8 2001.