By Dunnam H.B. No. 3691 77R10139 YDB-F 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; granting the authority to 1-5 issue and refund bonds; and granting the power of eminent domain. 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. EMINENT DOMAIN. (a) The district may 12-14 exercise the power of eminent domain to acquire a fee simple or 12-15 other interest in property located in the territory of the district 12-16 if the property interest is necessary to the exercise of the rights 12-17 or authority conferred by this Act. 12-18 (b) The district must exercise the power of eminent domain 12-19 in the manner provided by Chapter 21, Property Code, but the 12-20 district is not required to deposit in the trial court money or 12-21 bond as provided by Section 21.021(a), Property Code. 12-22 (c) In a condemnation proceeding brought by the district, 12-23 the district is not required to: 12-24 (1) pay in advance or give bond or other security for 12-25 costs in the trial court; 12-26 (2) give bond for the issuance of a temporary 12-27 restraining order or a temporary injunction; or 13-1 (3) give bond for costs or supersedeas on an appeal or 13-2 writ of error. 13-3 SECTION 5.11. EXPENSES FOR MOVING FACILITIES OF RAILROADS 13-4 AND UTILITIES. If, in exercising the power of eminent domain, the 13-5 board requires relocating, raising, lowering, rerouting, changing 13-6 the grade, or altering the construction of any railroad, highway, 13-7 pipeline, or electric transmission and electric distribution, 13-8 telegraph, or telephone lines, conduits, poles, or facilities, the 13-9 district must bear the actual cost of relocating, raising, 13-10 lowering, rerouting, changing the grade, or altering the 13-11 construction to provide comparable replacement without enhancement 13-12 of a facility, after deducting the net salvage value derived from 13-13 the old facility. 13-14 SECTION 5.12. INDIGENT CARE. (a) The district shall supply 13-15 care and treatment without charge to a patient who resides in the 13-16 district if the patient or relative who is legally responsible for 13-17 the patient's support cannot pay for the care and treatment. 13-18 (b) The board shall determine the health care services to be 13-19 provided to residents eligible for assistance under this section to 13-20 fulfill the district's obligations under Section 9, Article IX, 13-21 Texas Constitution, and Section 61.055, Health and Safety Code. 13-22 The board may enter into a contract with another entity to fulfill 13-23 its obligations under this Act, Section 9, Article IX, Texas 13-24 Constitution, and Section 61.055, Health and Safety Code. 13-25 (c) Not later than the first day of each operating year, the 13-26 district shall adopt an application procedure to determine 13-27 eligibility for assistance, as provided by Section 61.053, Health 14-1 and Safety Code. 14-2 (d) The administrator of the district may have an inquiry 14-3 made into the financial circumstances of: 14-4 (1) a patient residing in the district and admitted to 14-5 a district facility; and 14-6 (2) a relative of the patient who is legally 14-7 responsible for the patient's support. 14-8 (e) On finding that the patient or a relative of the patient 14-9 legally responsible for the patient's support can pay for all or 14-10 any part of the care and treatment provided by the district, the 14-11 administrator shall report that finding to the board, and the board 14-12 shall issue an order directing the patient or the relative to pay 14-13 the district each week a specified amount that the individual is 14-14 able to pay. 14-15 (f) The administrator may collect money owed to the district 14-16 from the estate of the patient or from that of a relative who was 14-17 legally responsible for the patient's support in the manner 14-18 provided by law for collection of expenses in the last illness of a 14-19 deceased person. 14-20 (g) If there is a dispute relating to an individual's 14-21 ability to pay or if the administrator has any doubt concerning the 14-22 individual's ability to pay, the board shall call witnesses, hear 14-23 and resolve the question, and issue a final order. An appeal from 14-24 a final order of the board must be made to a district court in the 14-25 county in which the district is located, and the substantial 14-26 evidence rule applies. 14-27 SECTION 5.13. REIMBURSEMENT FOR SERVICES. (a) The board 15-1 shall require reimbursement from a county, municipality, or public 15-2 hospital located outside the boundaries of the district for the 15-3 district's care and treatment of a sick, diseased, or injured 15-4 person of that county, municipality, or public hospital as provided 15-5 by Chapter 61, Health and Safety Code. 15-6 (b) The board shall require reimbursement from the sheriff 15-7 or police chief of a county or municipality for the district's care 15-8 and treatment of a person confined in a jail facility of the county 15-9 or municipality who is not a resident of the district. 15-10 (c) The board may contract with state or federal government 15-11 for the state or federal government to reimburse the district for 15-12 treatment of a sick, diseased, or injured person. 15-13 SECTION 5.14. SERVICE CONTRACTS. The board may contract 15-14 with a municipality, county, special district, or other political 15-15 subdivision of the state or with a state or federal agency for the 15-16 district to: 15-17 (1) furnish a mobile emergency medical service; or 15-18 (2) provide for the investigatory or welfare needs of 15-19 inhabitants of the district. 15-20 SECTION 5.15. GIFTS AND ENDOWMENTS. On behalf of the 15-21 district, the board may accept gifts and endowments to be held in 15-22 trust for any purpose and under any direction, limitation, or 15-23 provision prescribed in writing by the donor that is consistent 15-24 with the proper management of the district. 15-25 SECTION 5.16. AUTHORITY TO SUE AND BE SUED. The board may 15-26 sue and be sued on behalf of the district. 15-27 SECTION 5.17. RETIREMENT BENEFITS. The board may provide 16-1 retirement benefits for the employees of the district by 16-2 establishing or administering a retirement program or electing to 16-3 participate in any statewide retirement system in which the 16-4 district is eligible to participate. 16-5 SECTION 5.18. RECRUITMENT OF STAFF AND EMPLOYEES. The board 16-6 may spend district funds, enter into agreements, and take other 16-7 necessary action to recruit physicians, nurses, and other persons 16-8 to serve as medical staff members or employees of the district, 16-9 including: 16-10 (1) advertising and marketing; 16-11 (2) paying travel, recruitment, and relocation 16-12 expenses; 16-13 (3) providing a loan or scholarship to a physician or 16-14 a person currently enrolled in health care education courses at an 16-15 institution of higher education who contractually agrees to become 16-16 a district employee or medical staff member; or 16-17 (4) contracting with one or more full-time medical 16-18 students or other students in a health occupation, each of whom 16-19 shall be enrolled in and in good standing at an accredited medical 16-20 school, college, or university, to pay the student's tuition or 16-21 other expenses in consideration of the student's agreement to serve 16-22 as an employee or independent contractor for the district. 16-23 SECTION 5.19. NONPROFIT CORPORATION. The district may 16-24 sponsor and create a nonprofit corporation under the Texas 16-25 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's 16-26 Texas Civil Statutes), and may contribute funds to or solicit funds 16-27 for the corporation. The corporation may use district funds only 17-1 to provide health care or other services the district is authorized 17-2 to provide under this Act. The board shall establish adequate 17-3 controls to ensure that the corporation uses its funds as required 17-4 by law. The corporation may invest corporation funds in any manner 17-5 in which the district may invest funds, including investing funds 17-6 as authorized by Chapter 2256, Government Code. 17-7 ARTICLE 6. DISTRICT FINANCES 17-8 SECTION 6.01. FISCAL YEAR. (a) The district operates on 17-9 the fiscal year established by the board. 17-10 (b) The fiscal year may not be changed if revenue bonds of 17-11 the district are outstanding or more than once in a 24-month 17-12 period. 17-13 SECTION 6.02. ANNUAL AUDIT. The board annually shall have 17-14 an audit made of the financial condition of the district. 17-15 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit 17-16 and other district records are open to inspection during regular 17-17 business hours at the principal office of the district. 17-18 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the 17-19 district shall prepare a proposed annual budget for the district. 17-20 (b) The proposed budget must contain a complete financial 17-21 statement, including a statement of: 17-22 (1) the outstanding obligations of the district; 17-23 (2) the amount of cash on hand to the credit of each 17-24 fund of the district; 17-25 (3) the amount of money received by the district from 17-26 all sources during the previous year; 17-27 (4) the amount of money available to the district from 18-1 all sources during the ensuing year; 18-2 (5) the amount of the balances expected at the end of 18-3 the year in which the budget is being prepared; 18-4 (6) the estimated amount of revenues and balances 18-5 available to cover the proposed budget; and 18-6 (7) the estimated tax rate that will be required. 18-7 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The 18-8 board shall hold a public hearing on the proposed annual budget. 18-9 (b) The board shall publish notice of the hearing in a 18-10 newspaper of general circulation in the district not later than the 18-11 10th day before the date of the hearing. 18-12 (c) Any resident of the district is entitled to be present 18-13 and participate at the hearing. 18-14 (d) At the conclusion of the hearing, the board shall adopt 18-15 a budget by acting on the budget proposed by the administrator. 18-16 The board may make any changes in the proposed budget that in its 18-17 judgment the interests of the taxpayers demand. 18-18 (e) The budget is effective only after adoption by the 18-19 board. 18-20 SECTION 6.06. AMENDING BUDGET. After adoption, the annual 18-21 budget may be amended on the board's approval. 18-22 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be 18-23 spent for an expense not included in the annual budget or an 18-24 amendment to it. 18-25 SECTION 6.08. SWORN STATEMENT. As soon as practicable after 18-26 the close of the fiscal year, the administrator shall prepare for 18-27 the board a sworn statement of the amount of money that belongs to 19-1 the district and an account of the disbursements of that money. 19-2 SECTION 6.09. BORROWING MONEY. (a) The district may borrow 19-3 money at a rate not to exceed the minimum annual percentage rate 19-4 allowed by law for district obligations at the time of the loan. 19-5 (b) To secure a loan, the board may pledge: 19-6 (1) the revenues of the district that are not pledged 19-7 to pay the bonded indebtedness of the district; 19-8 (2) district taxes to be levied by the district during 19-9 the 12-month period following the date of the pledge that are not 19-10 pledged to pay the principal of or interest on district bonds; or 19-11 (3) district bonds that have been authorized but not 19-12 sold. 19-13 (c) A loan for which taxes or bonds are pledged shall mature 19-14 not later than the first anniversary of the date on which the loan 19-15 is made. A loan for which district revenues are pledged shall 19-16 mature not later than the fifth anniversary of the date on which 19-17 the loan is made. 19-18 SECTION 6.10. DEPOSITORY. (a) The board shall name at 19-19 least one bank to serve as depository for district funds. 19-20 (b) District funds, other than those transmitted to a bank 19-21 for payment of bonds or obligations issued or assumed by the 19-22 district, shall be deposited as received with the depository bank 19-23 and must remain on deposit. This subsection does not limit the 19-24 power of the board to place a portion of district funds on time 19-25 deposit or to purchase certificates of deposit. 19-26 (c) Before the district deposits funds in a bank in an 19-27 amount that exceeds the maximum amount secured by the Federal 20-1 Deposit Insurance Corporation, the bank must execute a bond or 20-2 other security in an amount sufficient to secure from loss the 20-3 district funds that exceed the amount secured by the Federal 20-4 Deposit Insurance Corporation. 20-5 ARTICLE 7. BONDS 20-6 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue 20-7 and sell bonds authorized by an election in the name and on the 20-8 faith and credit of the hospital district to: 20-9 (1) purchase, construct, acquire, repair, or renovate 20-10 buildings or improvements; 20-11 (2) equip buildings or improvements for hospital 20-12 purposes; or 20-13 (3) acquire and operate a mobile emergency medical 20-14 service. 20-15 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the 20-16 bonds are issued by the district, the board shall levy a tax. 20-17 (b) The tax must be sufficient to create an interest and 20-18 sinking fund to pay the principal of and interest on the bonds as 20-19 the bonds mature. 20-20 (c) In any year, the tax together with any other tax the 20-21 district levies may not exceed the limit approved by the voters at 20-22 the election authorizing the levy of taxes. 20-23 SECTION 7.03. BOND ELECTION. (a) The district may issue 20-24 general obligation bonds only if the bonds are authorized by a 20-25 majority of the qualified voters of the district voting at an 20-26 election called and held for that purpose under this section. 20-27 (b) The board may order a bond election. The order calling 21-1 the election must state: 21-2 (1) the nature and date of the election; 21-3 (2) the hours during which the polls will be open; 21-4 (3) the location of the polling places; 21-5 (4) the amounts of bonds to be authorized; and 21-6 (5) the maximum maturity of the bonds. 21-7 (c) Notice of a bond election shall be given as provided by 21-8 Chapter 1251, Government Code. 21-9 (d) The board shall canvass the returns and declare the 21-10 results of the election. 21-11 SECTION 7.04. REVENUE BONDS. (a) The board may issue bonds 21-12 to: 21-13 (1) purchase, construct, acquire, repair, equip, or 21-14 renovate buildings or improvements for hospital purposes; 21-15 (2) acquire sites to be used for hospital purposes; or 21-16 (3) acquire and operate a mobile emergency medical 21-17 service to assist the district in carrying out the district's 21-18 hospital purpose. 21-19 (b) The bonds must be payable from and secured by a pledge 21-20 of all or part of the revenues derived from the operation of the 21-21 district's hospital system. The bonds may be additionally secured 21-22 by a mortgage or deed of trust lien on all or part of district 21-23 property. 21-24 (c) The bonds must be issued in the manner provided by 21-25 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, 21-26 Health and Safety Code, for issuance of revenue bonds by county 21-27 hospital authorities. 22-1 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the 22-2 district may be issued to refund and pay off any outstanding 22-3 indebtedness the district has issued or assumed. 22-4 (b) The bonds must be issued in the manner provided by 22-5 Chapter 1207, Government Code. 22-6 SECTION 7.06. INTEREST AND MATURITY. District bonds must 22-7 mature not later than the 50th anniversary of the date of their 22-8 issuance and must bear interest at a rate not to exceed that 22-9 provided by Chapter 1204, Government Code. 22-10 SECTION 7.07. EXECUTION OF BONDS. The president of the board 22-11 shall execute the bonds in the name of the district, and the 22-12 secretary of the board shall countersign the bonds in the manner 22-13 provided by Chapter 618, Government Code. 22-14 SECTION 7.08. APPROVAL AND REGISTRATION OF BONDS. (a) 22-15 District bonds are subject to the same requirements with regard to 22-16 approval by the attorney general and registration by the 22-17 comptroller as the law provides for approval and registration of 22-18 bonds issued by counties. 22-19 (b) On approval by the attorney general and registration by 22-20 the comptroller, the bonds are incontestable for any cause. 22-21 SECTION 7.09. BONDS AS INVESTMENTS. District bonds and 22-22 indebtedness assumed by the district are legal and authorized 22-23 investments for: 22-24 (1) banks; 22-25 (2) savings banks; 22-26 (3) trust companies; 22-27 (4) savings and loan associations; 23-1 (5) insurance companies; 23-2 (6) fiduciaries; 23-3 (7) trustees; 23-4 (8) guardians; and 23-5 (9) sinking funds of municipalities, counties, school 23-6 districts, and other political subdivisions of the state and other 23-7 public funds of the state and its agencies, including the permanent 23-8 school fund. 23-9 SECTION 7.10. BONDS AS SECURITY FOR DEPOSITS. District bonds 23-10 are eligible to secure deposits of public funds of the state and of 23-11 municipalities, counties, school districts, and other political 23-12 subdivisions of the state. The bonds are lawful and sufficient 23-13 security for deposits to the extent of their value if accompanied 23-14 by all unmatured coupons. 23-15 SECTION 7.11. TAX STATUS OF BONDS. Because the district 23-16 created under this Act is a public entity performing an essential 23-17 public function, bonds issued by the district, any transaction 23-18 relating to the bonds, and profits made in the sale of the bonds 23-19 are free from taxation by the state or by any municipality, county, 23-20 special district, or other political subdivision of the state. 23-21 ARTICLE 8. TAXES 23-22 SECTION 8.01. LEVY OF TAXES. (a) The board annually may 23-23 impose property taxes in an amount not to exceed the limit approved 23-24 by the voters at the election authorizing the levy of taxes. 23-25 (b) The tax rate for all purposes may not exceed 75 cents on 23-26 each $100 valuation of all taxable property in the district. 23-27 (c) The taxes may be used to pay: 24-1 (1) the indebtedness issued or assumed by the 24-2 district; and 24-3 (2) the maintenance and operating expenses of the 24-4 district. 24-5 (d) The district may not impose taxes to pay the principal 24-6 of or interest on revenue bonds issued under this Act. 24-7 SECTION 8.02. BOARD AUTHORITY. The board may impose taxes 24-8 for the entire year in which the district is created. 24-9 SECTION 8.03. ADOPTING TAX RATE. In adopting the tax rate, 24-10 the board shall consider the income of the district from sources 24-11 other than taxation. 24-12 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) The Tax 24-13 Code governs the appraisal, assessment, and collection of district 24-14 taxes. 24-15 (b) The board may provide for the appointment of a tax 24-16 assessor-collector for the district or may contract for the 24-17 assessment and collection of taxes as provided by the Tax Code. 24-18 ARTICLE 9. DISSOLUTION OF DISTRICT 24-19 SECTION 9.01. DISSOLUTION ELECTION. The district may be 24-20 dissolved only if the dissolution is approved by a majority of the 24-21 qualified voters of the district voting in an election called and 24-22 held for that purpose. 24-23 SECTION 9.02. ORDERING ELECTION. (a) The board may order an 24-24 election on the question of dissolving the district and disposing 24-25 of the district's assets and obligations. 24-26 (b) The board shall order an election on the question of 24-27 dissolving the district and disposing of the district's assets and 25-1 obligations if the board receives a petition requesting an election 25-2 that is signed by a number of registered voters of the district 25-3 equal to at least 15 percent of the registered voters in the 25-4 district. 25-5 SECTION 9.03. ELECTION ORDER. The order calling the election 25-6 must state: 25-7 (1) the nature of the election, including the 25-8 proposition that is to appear on the ballot; 25-9 (2) the date of the election; 25-10 (3) the hours during which the polls will be open; and 25-11 (4) the location of the polling places. 25-12 SECTION 9.04. NOTICE. The board shall give notice of the 25-13 election by publishing a substantial copy of the election order in 25-14 a newspaper with general circulation in the district once a week 25-15 for two consecutive weeks. The first publication must appear at 25-16 least 35 days before the date set for the election. 25-17 SECTION 9.05. ELECTION DATE. (a) The election shall be held 25-18 not later than the 60th day after the date the election is ordered. 25-19 (b) Section 41.001, Election Code, does not apply to an 25-20 election ordered under this section. 25-21 SECTION 9.06. BALLOT PROPOSITION. The ballot for an election 25-22 at which the dissolution of the district is proposed shall be 25-23 printed to permit voting for or against the proposition: "The 25-24 dissolution of the West Medical District." 25-25 SECTION 9.07. CANVASSING RETURNS. (a) The board shall 25-26 canvass the returns of the election. 25-27 (b) If a majority of the votes in the election favor 26-1 dissolution, the board shall find that the district is dissolved. 26-2 (c) If a majority of the votes in the election do not favor 26-3 dissolution, the board shall continue to administer the district, 26-4 and another election on the question of dissolution may not be held 26-5 before the first anniversary of the date of the most recent 26-6 election to dissolve the district. 26-7 SECTION 9.08. DISSOLUTION PROCEDURES. (a) If a majority of 26-8 the votes in the election favor dissolution, the board shall: 26-9 (1) transfer the land, buildings, improvements, 26-10 equipment, and other assets that belong to the district to a county 26-11 or another governmental entity in the county in which the district 26-12 is located; 26-13 (2) sell the assets and liabilities to another person 26-14 or entity; or 26-15 (3) administer the property, assets, and debts until 26-16 all funds have been disposed of and all district debts have been 26-17 paid or settled. 26-18 (b) If the district transfers the land, buildings, 26-19 improvements, equipment, and other assets to a county or other 26-20 governmental entity, the county or entity assumes all debts and 26-21 obligations of the district at the time of the transfer, at which 26-22 time the district is dissolved. If the district does not transfer 26-23 the land, buildings, improvements, equipment, and other assets to a 26-24 county or other governmental entity, or sell those assets and the 26-25 liabilities to another person, the board shall administer the 26-26 property, assets, and debts of the district until all funds have 26-27 been disposed of and all district debts have been paid or settled, 27-1 at which time the district is dissolved. 27-2 (c) After the board finds that the district is dissolved, 27-3 the board shall: 27-4 (1) determine the debt owed by the district; and 27-5 (2) impose on the property included in the district's 27-6 tax rolls a tax that is in proportion of the debt to the property 27-7 value. 27-8 (d) When all outstanding debts and obligations of the 27-9 district are paid, the board shall order the secretary to return 27-10 the pro rata share of all unused tax money to each district 27-11 taxpayer. 27-12 (e) A taxpayer may request that the taxpayer's share of 27-13 surplus tax money be credited to the taxpayer's county taxes. If a 27-14 taxpayer requests the credit, the board shall direct the secretary 27-15 to transmit the funds to the county tax assessor-collector. 27-16 (f) After the district has paid all of the district's debts 27-17 and has disposed of all of the district's assets and funds as 27-18 prescribed by this section, the board shall file a written report 27-19 with the Commissioners Court of McLennan County setting forth a 27-20 summary of the board's actions in dissolving the district. 27-21 (g) Not later than the 10th day after the date it receives 27-22 the report and determines that the requirements of this section 27-23 have been fulfilled, the Commissioners Court of McLennan County 27-24 shall enter an order dissolving the district and releasing the 27-25 board from any further duty or obligation. 27-26 SECTION 9.09. SALE OR TRANSFER OF ASSETS. (a) The district 27-27 may provide for the sale or transfer of the district's assets and 28-1 liabilities to another entity or person and the district's 28-2 subsequent dissolution. The dissolution of the district and the 28-3 sale or transfer of the district's assets and liabilities to 28-4 another person or entity may not contravene a trust indenture or 28-5 bond resolution relating to the outstanding bonds of the district. 28-6 The dissolution and sale or transfer does not diminish or impair 28-7 the rights of a holder of an outstanding bond, warrant, or other 28-8 obligation of the district. 28-9 (b) The sale or transfer of the district's assets and 28-10 liabilities must satisfy the debt and bond obligations of the 28-11 district in a manner that protects the interests of the residents 28-12 of the district, including the residents' collective property 28-13 rights in the district's assets. Any grant from federal funds is 28-14 considered an obligation to be repaid in satisfaction. The 28-15 district may not transfer or dispose of the district's assets 28-16 except for due compensation unless the transfer is made to another 28-17 governmental agency that serves the district and the transferred 28-18 assets are to be used for the benefit of residents of the district. 28-19 ARTICLE 10. MISCELLANEOUS 28-20 SECTION 10.01. LIMITATION ON STATE ASSISTANCE. The state may 28-21 not become obligated for the support or maintenance of a hospital 28-22 district created under this Act, nor may the legislature make a 28-23 direct appropriation for the construction, maintenance, or 28-24 improvement of a facility of the district. 28-25 SECTION 10.02. REQUIRED PUBLICATION. Proof of publication of 28-26 the notice required in the enactment of this Act under the 28-27 provisions of Section 9, Article IX, Texas Constitution, has been 29-1 made in the manner and form provided by law pertaining to the 29-2 enactment of local and special laws, and the notice is found and 29-3 declared proper and sufficient to satisfy the requirement. 29-4 SECTION 10.03. EFFECTIVE DATE. This Act takes effect 29-5 immediately if it receives a vote of two-thirds of all the members 29-6 elected to each house, as provided by Section 39, Article III, 29-7 Texas Constitution. If this Act does not receive the vote 29-8 necessary for immediate effect, this Act takes effect September 1, 29-9 2001.