1-1     By:  Dunnam (Senate Sponsor - Sibley)                 H.B. No. 3691
 1-2           (In the Senate - Received from the House May 9, 2001;
 1-3     May 10, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 4, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the creation, administration, powers, duties,
1-10     operation, and financing of a hospital district to be known as the
1-11     West Medical District; authorizing a tax; and granting the
1-12     authority to issue and refund bonds.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14                       ARTICLE 1.  GENERAL PROVISIONS
1-15           SECTION 1.01.  DEFINITIONS.  In this Act:
1-16                 (1)  "District" means the West Medical District.
1-17                 (2)  "Board" means the board of directors of the
1-18     district.
1-19                 (3)  "Director" means a member of the board.
1-20           SECTION 1.02.  DISTRICT AUTHORIZATION.  A hospital district
1-21     to be known as the West Medical District may be created and
1-22     established and, if created, must be maintained, operated, and
1-23     financed in the manner provided by Section 9, Article IX, Texas
1-24     Constitution, and by this Act.
1-25           SECTION 1.03.  BOUNDARIES.  The boundaries of the district
1-26     are coextensive with the boundaries of the West Independent School
1-27     District in McLennan County.
1-28           SECTION 1.04.  ELECTION CODE PROVISIONS. Section 41.001(a),
1-29     Election Code, does not apply to an election ordered under this
1-30     Act.
1-31                       ARTICLE 2.  TEMPORARY DIRECTORS
1-32           SECTION 2.01.  TEMPORARY DIRECTORS.  On the effective date of
1-33     this Act, the following persons become temporary directors of the
1-34     district:
1-35                 (1)  John Crowder;
1-36                 (2)  Roby Urbanovsky;
1-37                 (3)  Larry Sparks;
1-38                 (4)  Jeanette Karlik;
1-39                 (5)  Robby Payne;
1-40                 (6)  Tommy Muska; and
1-41                 (7)  Kirk Wines.
1-42           SECTION 2.02.  VACANCY IN OFFICE.  The directors remaining
1-43     after a vacancy in the office of a temporary director shall fill
1-44     the vacancy by appointment by majority vote.
1-45                      ARTICLE 3.  CREATION OF DISTRICT
1-46           SECTION 3.01.  CREATION ELECTION.  The district may be
1-47     created and a tax may be authorized only if the creation and the
1-48     tax are approved by a majority of the qualified voters of the
1-49     territory of the proposed district voting at an election called and
1-50     held for that purpose.
1-51           SECTION 3.02.  ORDERING ELECTION.  (a)  A majority of the
1-52     temporary directors of the district may order a creation election
1-53     to be held as prescribed by Subsection (c) of this section.
1-54           (b)  On presentation of a petition for a creation election
1-55     signed by at least 50 of the registered voters of the territory of
1-56     the proposed district, according to the most recent official list
1-57     of registered voters, the temporary directors shall order an
1-58     election to be held as prescribed by Subsection (c) of this
1-59     section.  The election shall be called not later than the 60th day
1-60     after the date the petition is presented to the district.
1-61           (c)  The election order must call for an election to be held
1-62     in the territory within the West Independent School District
1-63     boundaries in McLennan County.
1-64           SECTION 3.03.  ELECTION ORDER.  The order calling the
 2-1     election must state:
 2-2                 (1)  the nature of the election, including the
 2-3     proposition that is to appear on the ballot;
 2-4                 (2)  the date of the election;
 2-5                 (3)  the hours during which the polls will be open; and
 2-6                 (4)  the location of the polling places.
 2-7           SECTION 3.04.  NOTICE.  The temporary directors shall give
 2-8     notice of the election by publishing a substantial copy of the
 2-9     election order in a newspaper of general circulation in the
2-10     proposed district once a week for two consecutive weeks.  The first
2-11     publication must appear at least 35 days before the date set for
2-12     the election.
2-13           SECTION 3.05.  ELECTION DATE.  The election shall be held not
2-14     less than 45 days or more than 60 days after the date on which the
2-15     election is ordered.
2-16           SECTION 3.06.  BALLOT PROPOSITION.  The ballot for the
2-17     election shall be printed to permit voting for or against the
2-18     proposition:  "The creation of a hospital district to be known as
2-19     the West Medical District and the levy of annual taxes for hospital
2-20     purposes at a rate not to exceed 75 cents on each $100 valuation of
2-21     all taxable property in the district."
2-22           SECTION 3.07.  CANVASSING RETURNS.  (a)  The temporary
2-23     directors shall meet and canvass the returns of the election.
2-24           (b)  If a majority of the votes cast at the election favor
2-25     creation of the district, the temporary directors shall declare the
2-26     district created and shall enter the results in their minutes.
2-27           (c)  If the creation of the district is defeated, the
2-28     temporary directors may call and hold another creation election,
2-29     but another creation election may not be called and held before the
2-30     first anniversary of the date of the most recent creation election.
2-31           SECTION 3.08.  EXPIRATION OF ACT.  If the creation of the
2-32     district is not approved at an election held before the fifth
2-33     anniversary of the effective date of this Act, this Act expires.
2-34                     ARTICLE 4.  DISTRICT ADMINISTRATION
2-35           SECTION 4.01.  BOARD OF DIRECTORS.  (a)  The district is
2-36     governed by a board of seven directors.
2-37           (b)  From the time the creation of the district is approved
2-38     until the elected directors take office, the temporary directors
2-39     serve as directors of the district.
2-40           SECTION 4.02.  INITIAL DIRECTORS ELECTION.  (a)  Directors
2-41     shall be elected at an election to be held on the first Saturday in
2-42     May following the creation of the district.
2-43           (b)  At the initial election of directors following creation
2-44     of the district, members of the board of directors shall be elected
2-45     at large on a single ballot, with the seven candidates receiving
2-46     the highest number of votes being elected as directors.  The
2-47     directors elected at the initial election shall draw lots to
2-48     determine which two directors shall serve one-year terms, which two
2-49     directors shall serve two-year terms, and which three directors
2-50     shall serve three-year terms.
2-51           SECTION 4.03.  METHOD OF ELECTION; STAGGERED TERMS; TERM OF
2-52     OFFICE; ELECTION DATE.  (a)  After the initial election of
2-53     directors following creation of the district, an election shall be
2-54     held on the first Saturday in May each year to elect the
2-55     appropriate number of successor directors.
2-56           (b)  The directors shall be elected at large.
2-57           (c)  Except as provided by Section 4.02(b) of this Act, each
2-58     director is elected for a three-year term.
2-59           SECTION 4.04.  NOTICE OF ELECTION.  Notice of each election
2-60     of directors shall be published in a newspaper of general
2-61     circulation in the district in accordance with Chapter 4, Election
2-62     Code.
2-63           SECTION 4.05.  APPLICATION.  A person who wishes to have the
2-64     person's name printed on the ballot as a candidate for director
2-65     must file an application with the secretary of the board of
2-66     directors in accordance with Chapter 144, Election Code.
2-67           SECTION 4.06.  QUALIFICATIONS FOR OFFICE.  (a)  To be
2-68     eligible to be a candidate for or to serve as a director, a person
2-69     must be:
 3-1                 (1)  a resident of the district; and
 3-2                 (2)  a qualified voter.
 3-3           (b)  An employee of the district may not serve as a director.
 3-4           SECTION 4.07.  BOND.  (a)  Before assuming the duties of the
 3-5     office, each director must execute a bond for $5,000 payable to the
 3-6     district, conditioned on the faithful performance of the person's
 3-7     duties as director.
 3-8           (b)  The bond shall be kept in the permanent records of the
 3-9     district.
3-10           (c)  The board may pay for the director's bond with district
3-11     funds.
3-12           SECTION 4.08.  BOARD VACANCY.  A vacancy in the office of
3-13     director shall be filled for the unexpired term by appointment by
3-14     the remaining directors.
3-15           SECTION 4.09.  OFFICERS; OFFICERS' TERMS; VACANCY.  (a)  The
3-16     board shall elect from among its members a president and a vice
3-17     president.
3-18           (b)  The board shall appoint a secretary, who need not be a
3-19     director.
3-20           (c)  Each officer of the board serves for a term of one year.
3-21           (d)  The board shall fill a vacancy in a board office for the
3-22     unexpired term.
3-23           SECTION 4.10.  COMPENSATION.  (a)  Directors and officers
3-24     serve without compensation but may be reimbursed for actual
3-25     expenses incurred in the performance of official duties.
3-26           (b)  Expenses reimbursed under this section must be:
3-27                 (1)  reported in the district's minute book or other
3-28     district records; and
3-29                 (2)  approved by the board.
3-30           SECTION 4.11.  QUORUM; VOTING REQUIREMENT.  (a)  A majority
3-31     of the membership of the board constitutes a quorum for the
3-32     transaction of business.
3-33           (b)  When a quorum is present, a majority of the members of
3-34     the board voting must concur in a matter relating to the business
3-35     of the district.
3-36           SECTION 4.12.  ADMINISTRATOR AND ASSISTANT ADMINISTRATOR.
3-37     (a)  The board may appoint a qualified person as administrator of
3-38     the district and may in its discretion appoint an assistant to the
3-39     administrator.
3-40           (b)  The administrator and assistant administrator, if any,
3-41     serve at the will of the board.
3-42           (c)  The administrator and assistant administrator, if any,
3-43     are entitled to compensation as determined by the board.
3-44           (d)  The administrator shall supervise all the work and
3-45     activities of the district and shall have general direction of the
3-46     affairs of the district, subject to any limitations the board may
3-47     prescribe.
3-48           (e)  Before assuming the duties of administrator, the
3-49     administrator shall execute a bond payable to the hospital district
3-50     in an amount not less than $5,000 as determined by the board,
3-51     conditioned on the administrator's performing the administrator's
3-52     duties required under this Act.  The board may pay for the bond
3-53     with district funds.
3-54           (f)  The board may delegate to the administrator the
3-55     authority to employ or contract with persons for the district.
3-56           SECTION 4.13.  APPOINTMENTS TO STAFF.  The board may:
3-57                 (1)  appoint to the staff any doctors the board
3-58     considers necessary for the efficient operation of the district;
3-59     and
3-60                 (2)  make temporary appointments the board considers
3-61     necessary.
3-62           SECTION 4.14.  TECHNICIANS, NURSES, AND OTHER DISTRICT
3-63     EMPLOYEES.  The district may employ or contract with technicians,
3-64     nurses, fiscal agents, accountants, architects, attorneys, and
3-65     other necessary employees.
3-66                        ARTICLE 5.  POWERS AND DUTIES
3-67           SECTION 5.01.  RESPONSIBILITY OF GOVERNMENTAL ENTITY.  (a)
3-68     On creation of the district, the West Hospital Authority may, in
3-69     the authority's sole discretion, convey or transfer to the
 4-1     district:
 4-2                 (1)  title to any land, buildings, improvements, or
 4-3     equipment related to the hospital system that is owned by the West
 4-4     Hospital Authority;
 4-5                 (2)  operating funds and reserves for operating
 4-6     expenses and funds that have been budgeted by the West Hospital
 4-7     Authority to provide medical care for residents of the district for
 4-8     the remainder of the fiscal year in which the district is
 4-9     established; and
4-10                 (3)  accounts receivable of the West Hospital Authority
4-11     for medical care provided for residents of the district.
4-12           (b)  The West Hospital Authority shall convey or transfer to
4-13     the district funds established for payment of indebtedness assumed
4-14     by the district.
4-15           (c)  Except as provided by Subsection (b) of this section,
4-16     nothing in this Act requires the West Hospital Authority to convey
4-17     or transfer any funds or interest in property to the district.
4-18           (d)  On creation of the district, McLennan County may
4-19     transfer to the district:
4-20                 (1)  any taxes levied by McLennan County for hospital
4-21     purposes for residents of the district for the year in which the
4-22     district is created; or
4-23                 (2)  any accounts receivable of McLennan County for
4-24     medical care provided for residents of the district.
4-25           SECTION 5.02.  LIMITATION ON GOVERNMENTAL ENTITY.   On or
4-26     after creation of the district, another governmental entity,
4-27     including a county or municipality, in which the district is
4-28     located may not levy taxes or issue bonds or other obligations for
4-29     hospital purposes or for providing medical care for the residents
4-30     of the district.
4-31           SECTION 5.03.  DISTRICT RESPONSIBILITIES.  (a)  On creation
4-32     of the district, the district:
4-33                 (1)  assumes full responsibility for operating hospital
4-34     facilities and for furnishing medical and hospital care for the
4-35     district's needy inhabitants;
4-36                 (2)  assumes any outstanding indebtedness incurred by a
4-37     county, municipality, or other governmental entity in which all or
4-38     part of the district is located in providing hospital care for
4-39     residents of the territory of the district before the district's
4-40     creation; and
4-41                 (3)  may operate or provide for the operation of a
4-42     mobile emergency medical service.
4-43           (b)  If part of a county, municipality, or other governmental
4-44     entity is included in the district and part is not included in the
4-45     district, the amount of indebtedness the district assumes under
4-46     Subsection (a)(2) of this section is the portion of the total
4-47     outstanding indebtedness of the county, municipality, or other
4-48     entity for hospital care for all residents of the county,
4-49     municipality, or other entity that the value of taxable property in
4-50     the district bears to the total value of taxable property in the
4-51     county, municipality, or other entity according to the last
4-52     preceding approved assessment rolls of the county, municipality, or
4-53     other entity before the district is confirmed.
4-54           SECTION 5.04.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The
4-55     board shall manage, control, and administer the hospital system and
4-56     the funds and resources of the district.
4-57           SECTION 5.05.  DISTRICT RULES.  The board may adopt rules
4-58     governing the operations of the hospital and hospital system and
4-59     the duties, functions, and responsibilities of district staff and
4-60     employees.
4-61           SECTION 5.06.  METHODS AND PROCEDURES.  The board may
4-62     prescribe:
4-63                 (1)  the method of making purchases and expenditures by
4-64     and for the district; and
4-65                 (2)  accounting and control procedures for the
4-66     district.
4-67           SECTION 5.07.  HOSPITAL PROPERTY, FACILITIES, EQUIPMENT, AND
4-68     SERVICES.  (a)  The board shall determine the type, number, and
4-69     location of buildings required to establish and maintain an
 5-1     adequate hospital system and the type of equipment necessary for
 5-2     hospital care.
 5-3           (b)  The board has complete discretion as to the type and
 5-4     extent of services the district will offer.  The district may
 5-5     provide any services or facilities the board finds necessary for
 5-6     hospital or medical care, including:
 5-7                 (1)  emergency medical services;
 5-8                 (2)  primary care clinics;
 5-9                 (3)  outpatient clinics;
5-10                 (4)  home health agencies;
5-11                 (5)  pharmacies;
5-12                 (6)  nursing facilities;
5-13                 (7)  assisted living facilities;
5-14                 (8)  blood banks;
5-15                 (9)  community mental health centers;
5-16                 (10)  alcohol or chemical dependency centers;
5-17                 (11)  minor emergency centers;
5-18                 (12)  research centers; or
5-19                 (13)  laboratories.
5-20           (c)  The board may:
5-21                 (1)  acquire property, facilities, and equipment for
5-22     the district for use in the hospital system;
5-23                 (2)  mortgage or pledge the property, facilities, or
5-24     equipment acquired as security for the payment of the purchase
5-25     price;
5-26                 (3)  transfer by lease to physicians, individuals,
5-27     companies, corporations, or other legal entities or acquire by
5-28     lease district hospital facilities; and
5-29                 (4)  sell or otherwise dispose of property, facilities,
5-30     or equipment.
5-31           SECTION 5.08.  CONSTRUCTION CONTRACTS.  (a)  The board may
5-32     enter into construction contracts on behalf of the district.
5-33           (b)  A contract for construction in excess of the amount
5-34     provided by Section 271.024, Local Government Code, may be made
5-35     only after competitive bidding as provided by Subchapter B, Chapter
5-36     271, Local Government Code.
5-37           (c)  Chapter 2253, Government Code, as it relates to
5-38     performance and payment bonds, applies to construction contracts
5-39     let by the district.
5-40           SECTION 5.09.  DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
5-41     The board may enter into operating or management contracts relating
5-42     to hospital facilities on behalf of the district.
5-43           SECTION 5.10.  INDIGENT CARE.  (a)  The district shall supply
5-44     care and treatment without charge to a patient who resides in the
5-45     district if the patient or relative who is legally responsible for
5-46     the patient's support cannot pay for the care and treatment.
5-47           (b)  The board shall determine the health care services to be
5-48     provided to residents eligible for assistance under this section to
5-49     fulfill the district's obligations under Section 9, Article IX,
5-50     Texas Constitution, and Section 61.055, Health and Safety Code.
5-51     The board may enter into a contract with another entity to fulfill
5-52     its obligations under this Act, Section 9, Article IX, Texas
5-53     Constitution, and Section 61.055, Health and Safety Code.
5-54           (c)  Not later than the first day of each operating year, the
5-55     district shall adopt an application procedure to determine
5-56     eligibility for assistance, as provided by Section 61.053, Health
5-57     and Safety Code.
5-58           (d)  The administrator of the district may have an inquiry
5-59     made into the financial circumstances of:
5-60                 (1)  a patient residing in the district and admitted to
5-61     a district facility; and
5-62                 (2)  a relative of the patient who is legally
5-63     responsible for the patient's support.
5-64           (e)  On finding that the patient or a relative of the patient
5-65     legally responsible for the patient's support can pay for all or
5-66     any part of the care and treatment provided by the district, the
5-67     administrator shall report that finding to the board, and the board
5-68     shall issue an order directing the patient or the relative to pay
5-69     the district each week a specified amount that the individual is
 6-1     able to pay.
 6-2           (f)  The administrator may collect money owed to the district
 6-3     from the estate of the patient or from that of a relative who was
 6-4     legally responsible for the patient's support in the manner
 6-5     provided by law for collection of expenses in the last illness of a
 6-6     deceased person.
 6-7           (g)  If there is a dispute relating to an individual's
 6-8     ability to pay or if the administrator has any doubt concerning the
 6-9     individual's ability to pay, the board shall call witnesses, hear
6-10     and resolve the question, and issue a final order.  An appeal from
6-11     a final order of the board must be made to a district court in the
6-12     county in which the district is located, and the substantial
6-13     evidence rule applies.
6-14           SECTION 5.11.  REIMBURSEMENT FOR SERVICES.  (a)  The board
6-15     shall require reimbursement from a county, municipality, or public
6-16     hospital located outside the boundaries of the district for the
6-17     district's care and treatment of a sick, diseased, or injured
6-18     person of that county, municipality, or public hospital as provided
6-19     by Chapter 61, Health and Safety Code.
6-20           (b)  The board shall require reimbursement from the sheriff
6-21     or police chief of a county or municipality for the district's care
6-22     and treatment of a person confined in a jail facility of the county
6-23     or municipality who is not a resident of the district.
6-24           (c)  The board may contract with state or federal government
6-25     for the state or federal government to reimburse the district for
6-26     treatment of a sick, diseased, or injured person.
6-27           SECTION 5.12.  SERVICE CONTRACTS.  The board may contract
6-28     with a  municipality, county, special district, or other political
6-29     subdivision of the state or with a state or federal agency for the
6-30     district to:
6-31                 (1)  furnish a mobile emergency medical service; or
6-32                 (2)  provide for the investigatory or welfare needs of
6-33     inhabitants of the district.
6-34           SECTION 5.13.  GIFTS AND ENDOWMENTS.  On behalf of the
6-35     district, the board may accept gifts and endowments to be held in
6-36     trust for any purpose and under any direction, limitation, or
6-37     provision prescribed in writing by the donor that is consistent
6-38     with the proper management of the district.
6-39           SECTION 5.14.  AUTHORITY TO SUE AND BE SUED.  The board may
6-40     sue and be sued on behalf of the district.
6-41           SECTION 5.15.  RETIREMENT BENEFITS.   The board may provide
6-42     retirement benefits for the employees of the district by
6-43     establishing or administering a retirement program or electing to
6-44     participate in any statewide retirement system in which the
6-45     district is eligible to participate.
6-46           SECTION 5.16.  RECRUITMENT OF STAFF AND EMPLOYEES. The board
6-47     may spend district funds, enter into agreements, and take other
6-48     necessary action to recruit physicians, nurses, and other persons
6-49     to serve as medical staff members or employees of the district,
6-50     including:
6-51                 (1)  advertising and marketing;
6-52                 (2)  paying travel, recruitment, and relocation
6-53     expenses;
6-54                 (3)  providing a loan or scholarship to a physician or
6-55     a person currently enrolled in health care education courses at an
6-56     institution of higher education who contractually agrees to become
6-57     a district employee or medical staff member; or
6-58                 (4)  contracting with one or more full-time medical
6-59     students or other students in a health occupation, each of whom
6-60     shall be enrolled in and in good standing at an accredited medical
6-61     school, college, or university, to pay the student's tuition or
6-62     other expenses in consideration of the student's agreement to serve
6-63     as an employee or independent contractor for the district.
6-64           SECTION 5.17.  NONPROFIT CORPORATION. The district may
6-65     sponsor and create a nonprofit corporation under the Texas
6-66     Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
6-67     Texas Civil Statutes), and may contribute funds to or solicit funds
6-68     for the corporation.  The corporation may use district funds only
6-69     to provide health care or other services the district is authorized
 7-1     to provide under this Act.  The board shall establish adequate
 7-2     controls to ensure that the corporation uses its funds as required
 7-3     by law.  The corporation may invest corporation funds in any manner
 7-4     in which the district may invest funds, including investing funds
 7-5     as authorized by Chapter 2256, Government Code.
 7-6                        ARTICLE 6.  DISTRICT FINANCES
 7-7           SECTION 6.01.  FISCAL YEAR.  (a)  The district operates on
 7-8     the fiscal year established by the board.
 7-9           (b)  The fiscal year may not be changed if revenue bonds of
7-10     the district are outstanding or more than once in a 24-month
7-11     period.
7-12           SECTION 6.02.  ANNUAL AUDIT.  The board annually shall have
7-13     an audit made of the financial condition of the district.
7-14           SECTION 6.03.  DISTRICT AUDIT AND RECORDS.  The annual audit
7-15     and other district records are open to inspection during regular
7-16     business hours at the principal office of the district.
7-17           SECTION 6.04.  ANNUAL BUDGET.  (a)  The administrator of the
7-18     district shall prepare a proposed annual budget for the district.
7-19           (b)  The proposed budget must contain a complete financial
7-20     statement, including a statement of:
7-21                 (1)  the outstanding obligations of the district;
7-22                 (2)  the amount of cash on hand to the credit of each
7-23     fund of the district;
7-24                 (3)  the amount of money received by the district from
7-25     all sources during the previous year;
7-26                 (4)  the amount of money available to the district from
7-27     all sources during the ensuing year;
7-28                 (5)  the amount of the balances expected at the end of
7-29     the year in which the budget is being prepared;
7-30                 (6)  the estimated amount of revenues and balances
7-31     available to cover the proposed budget; and
7-32                 (7)  the estimated tax rate that will be required.
7-33           SECTION 6.05.  NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  The
7-34     board shall hold a public hearing on the proposed annual budget.
7-35           (b)  The board shall publish notice of the hearing in a
7-36     newspaper of general circulation in the district not later than the
7-37     10th day before the date of the hearing.
7-38           (c)  Any resident of the district is entitled to be present
7-39     and participate at the hearing.
7-40           (d)  At the conclusion of the hearing, the board shall adopt
7-41     a budget by acting on the budget proposed by the administrator.
7-42     The board may make any changes in the proposed budget that in its
7-43     judgment the interests of the taxpayers demand.
7-44           (e)  The budget is effective only after adoption by the
7-45     board.
7-46           SECTION 6.06.  AMENDING BUDGET.  After adoption, the annual
7-47     budget may be amended on the board's approval.
7-48           SECTION 6.07.  LIMITATION ON EXPENDITURES.  Money may not be
7-49     spent for an expense not included in the annual budget or an
7-50     amendment to it.
7-51           SECTION 6.08.  SWORN STATEMENT.  As soon as practicable after
7-52     the close of the fiscal year, the administrator shall prepare for
7-53     the board a sworn statement of the amount of money that belongs to
7-54     the district and an account of the disbursements of that money.
7-55           SECTION 6.09.  BORROWING MONEY.  (a)  The district may borrow
7-56     money at a rate not to exceed the minimum annual percentage rate
7-57     allowed by law for district obligations at the time of the loan.
7-58           (b)  To secure a loan, the board may pledge:
7-59                 (1)  the revenues of the district that are not pledged
7-60     to pay the bonded indebtedness of the district;
7-61                 (2)  district taxes to be levied by the district during
7-62     the 12-month period following the date of the pledge that are not
7-63     pledged to pay the principal of or interest on district bonds; or
7-64                 (3)  district bonds that have been authorized but not
7-65     sold.
7-66           (c)  A loan for which taxes or bonds are pledged shall mature
7-67     not later than the first anniversary of the date on which the loan
7-68     is made.  A loan for which district revenues are pledged shall
7-69     mature not later than the fifth anniversary of the date on which
 8-1     the loan is made.
 8-2           SECTION 6.10.  DEPOSITORY.  (a)  The board shall name at
 8-3     least one bank to serve as depository for district funds.
 8-4           (b)  District funds, other than those transmitted to a bank
 8-5     for payment of bonds or obligations issued or assumed by the
 8-6     district, shall be deposited as received with the depository bank
 8-7     and must remain on deposit.  This subsection does not limit the
 8-8     power of the board to place a portion of district funds on time
 8-9     deposit or to purchase certificates of deposit.
8-10           (c)  Before the district deposits funds in a bank in an
8-11     amount that exceeds the maximum amount secured by the Federal
8-12     Deposit Insurance Corporation, the bank must execute a bond or
8-13     other security in an amount sufficient to secure from loss the
8-14     district funds that exceed the amount secured by the Federal
8-15     Deposit Insurance Corporation.
8-16                              ARTICLE 7.  BONDS
8-17           SECTION 7.01.  GENERAL OBLIGATION BONDS.  The board may issue
8-18     and sell bonds authorized by an election in the name and on the
8-19     faith and credit of the hospital district to:
8-20                 (1)  purchase, construct, acquire, repair, or renovate
8-21     buildings or improvements;
8-22                 (2)  equip buildings or improvements for hospital
8-23     purposes; or
8-24                 (3)  acquire and operate a mobile emergency medical
8-25     service.
8-26           SECTION 7.02.  TAXES TO PAY BONDS.  (a)  At the time the
8-27     bonds are issued by the district, the board shall levy a tax.
8-28           (b)  The tax must be sufficient to create an interest and
8-29     sinking fund to pay the principal of and interest on the bonds as
8-30     the bonds mature.
8-31           (c)  In any year, the tax together with any other tax the
8-32     district levies may not exceed the limit approved by the voters at
8-33     the election authorizing the levy of taxes.
8-34           SECTION 7.03.  BOND ELECTION.  (a)  The district may issue
8-35     general obligation bonds only if the bonds are authorized by a
8-36     majority of the qualified voters of the district voting at an
8-37     election called and held for that purpose under this section.
8-38           (b)  The board may order a bond election.  The order calling
8-39     the election must state:
8-40                 (1)  the nature and date of the election;
8-41                 (2)  the hours during which the polls will be open;
8-42                 (3)  the location of the polling places;
8-43                 (4)  the amounts of bonds to be authorized; and
8-44                 (5)  the maximum maturity of the bonds.
8-45           (c)  Notice of a bond election shall be given as provided by
8-46     Chapter 1251, Government Code.
8-47           (d)  The board shall canvass the returns and declare the
8-48     results of the election.
8-49           SECTION 7.04.  REVENUE BONDS.  (a)  The board may issue bonds
8-50     to:
8-51                 (1)  purchase, construct, acquire, repair, equip, or
8-52     renovate buildings or improvements for hospital purposes;
8-53                 (2)  acquire sites to be used for hospital purposes; or
8-54                 (3)  acquire and operate a mobile emergency medical
8-55     service to assist the district in carrying out the district's
8-56     hospital purpose.
8-57           (b)  The bonds must be payable from and secured by a pledge
8-58     of all or part of the revenues derived from the operation of the
8-59     district's hospital system.  The bonds may be additionally secured
8-60     by a mortgage or deed of trust lien on all or part of district
8-61     property.
8-62           (c)  The bonds must be issued in the manner provided by
8-63     Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
8-64     Health and Safety Code, for issuance of revenue bonds by county
8-65     hospital authorities.
8-66           SECTION 7.05.  REFUNDING BONDS.  (a)  Refunding bonds of the
8-67     district may be issued to refund and pay off any outstanding
8-68     indebtedness the district has issued or assumed.
8-69           (b)  The bonds must be issued in the manner provided by
 9-1     Chapter 1207, Government Code.
 9-2           SECTION 7.06.  INTEREST AND MATURITY. District bonds must
 9-3     mature not later than the 50th anniversary of the date of their
 9-4     issuance and must bear interest at a rate not to exceed that
 9-5     provided by Chapter 1204, Government Code.
 9-6           SECTION 7.07.  EXECUTION OF BONDS. The president of the board
 9-7     shall execute the bonds in the name of the district, and the
 9-8     secretary of the board shall countersign the bonds in the manner
 9-9     provided by Chapter 618, Government Code.
9-10           SECTION 7.08.  APPROVAL AND REGISTRATION OF BONDS. (a)
9-11     District bonds are subject to the same requirements with regard to
9-12     approval by the attorney general and registration by the
9-13     comptroller as the law provides for approval and registration of
9-14     bonds issued by counties.
9-15           (b)  On approval by the attorney general and registration by
9-16     the comptroller, the bonds are incontestable for any cause.
9-17           SECTION 7.09.  BONDS AS INVESTMENTS. District bonds and
9-18     indebtedness assumed by the district are legal and authorized
9-19     investments for:
9-20                 (1)  banks;
9-21                 (2)  savings banks;
9-22                 (3)  trust companies;
9-23                 (4)  savings and loan associations;
9-24                 (5)  insurance companies;
9-25                 (6)  fiduciaries;
9-26                 (7)  trustees;
9-27                 (8)  guardians; and
9-28                 (9)  sinking funds of municipalities, counties, school
9-29     districts, and other political subdivisions of the state and other
9-30     public funds of the state and its agencies, including the permanent
9-31     school fund.
9-32           SECTION 7.10.  BONDS AS SECURITY FOR DEPOSITS. District bonds
9-33     are eligible to secure deposits of public funds of the state and of
9-34     municipalities, counties, school districts, and other political
9-35     subdivisions of the state.  The bonds are lawful and sufficient
9-36     security for deposits to the extent of their value if accompanied
9-37     by all unmatured coupons.
9-38           SECTION 7.11.  TAX STATUS OF BONDS. Because the district
9-39     created under this Act is a public entity performing an essential
9-40     public function, bonds issued by the district, any transaction
9-41     relating to the bonds, and profits made in the sale of the bonds
9-42     are free from taxation by the state or by any municipality, county,
9-43     special district, or other political subdivision of the state.
9-44                              ARTICLE 8.  TAXES
9-45           SECTION 8.01.  LEVY OF TAXES. (a)  The board annually may
9-46     impose property taxes in an amount not to exceed the limit approved
9-47     by the voters at the election authorizing the levy of taxes.
9-48           (b)  The tax rate for all purposes may not exceed 75 cents on
9-49     each $100 valuation of all taxable property in the district.
9-50           (c)  The taxes may be used to pay:
9-51                 (1)  the indebtedness issued or assumed by the
9-52     district; and
9-53                 (2)  the maintenance and operating expenses of the
9-54     district.
9-55           (d)  The district may not impose taxes to pay the principal
9-56     of or interest on revenue bonds issued under this Act.
9-57           SECTION 8.02.  BOARD AUTHORITY. The board may impose taxes
9-58     for the entire year in which the district is created.
9-59           SECTION 8.03.  ADOPTING TAX RATE. In adopting the tax rate,
9-60     the board shall consider the income of the district from sources
9-61     other than taxation.
9-62           SECTION 8.04.  TAX ASSESSMENT AND COLLECTION. (a)  The Tax
9-63     Code governs the appraisal, assessment, and collection of district
9-64     taxes.
9-65           (b)  The board may provide for the appointment of a tax
9-66     assessor-collector for the district or may contract for the
9-67     assessment and collection of taxes as provided by the Tax Code.
9-68                     ARTICLE 9.  DISSOLUTION OF DISTRICT
9-69           SECTION 9.01.  DISSOLUTION ELECTION. The district may be
 10-1    dissolved only if the dissolution is approved by a majority of the
 10-2    qualified voters of the district voting in an election called and
 10-3    held for that purpose.
 10-4          SECTION 9.02.  ORDERING ELECTION. (a)  The board may order an
 10-5    election on the question of dissolving the district and disposing
 10-6    of the district's assets and obligations.
 10-7          (b)  The board shall order an election on the question of
 10-8    dissolving the district and disposing of the district's assets and
 10-9    obligations if the board receives a petition requesting an election
10-10    that is signed by a number of registered voters of the district
10-11    equal to at least 15 percent of the registered voters in the
10-12    district.
10-13          SECTION 9.03.  ELECTION ORDER. The order calling the election
10-14    must state:
10-15                (1)  the nature of the election, including the
10-16    proposition that is to appear on the ballot;
10-17                (2)  the date of the election;
10-18                (3)  the hours during which the polls will be open; and
10-19                (4)  the location of the polling places.
10-20          SECTION 9.04.  NOTICE. The board shall give notice of the
10-21    election by publishing a substantial copy of the election order in
10-22    a newspaper with general circulation in the district once a week
10-23    for two consecutive weeks.  The first publication must appear at
10-24    least 35 days before the date set for the election.
10-25          SECTION 9.05.  ELECTION DATE. (a)  The election shall be held
10-26    not later than the 60th day after the date the election is ordered.
10-27          (b)  Section 41.001, Election Code, does not apply to an
10-28    election ordered under this section.
10-29          SECTION 9.06.  BALLOT PROPOSITION. The ballot for an election
10-30    at which the dissolution of the district is proposed shall be
10-31    printed to permit voting for or against the proposition:  "The
10-32    dissolution of the West Medical District."
10-33          SECTION 9.07.  CANVASSING RETURNS. (a)  The board shall
10-34    canvass the returns of the election.
10-35          (b)  If a majority of the votes in the election favor
10-36    dissolution, the board shall find that the district is dissolved.
10-37          (c)  If a majority of the votes in the election do not favor
10-38    dissolution, the board shall continue to administer the district,
10-39    and another election on the question of dissolution may not be held
10-40    before the first anniversary of the date of the most recent
10-41    election to dissolve the district.
10-42          SECTION 9.08.  DISSOLUTION PROCEDURES.  (a)  If a majority of
10-43    the votes in the election favor dissolution, the board shall:
10-44                (1)  transfer the land, buildings, improvements,
10-45    equipment, and other assets that belong to the district to a county
10-46    or another governmental entity in the county in which the district
10-47    is located;
10-48                (2)  sell the assets and liabilities to another person
10-49    or entity; or
10-50                (3)  administer the property, assets, and debts until
10-51    all funds  have been disposed of and all district debts have been
10-52    paid or settled.
10-53          (b)  If the district transfers the land, buildings,
10-54    improvements, equipment, and other assets to a county or other
10-55    governmental entity, the county or entity assumes all debts and
10-56    obligations of the district at the time of the transfer, at which
10-57    time the district is dissolved.  If the district does not transfer
10-58    the land, buildings, improvements, equipment, and other assets to a
10-59    county or other governmental entity, or sell those assets and the
10-60    liabilities to another person, the board shall administer the
10-61    property, assets, and debts of the district until all funds have
10-62    been disposed of and all district debts have been paid or settled,
10-63    at which time the district is dissolved.
10-64          (c)  After the board finds that the district is dissolved,
10-65    the board shall:
10-66                (1)  determine the debt owed by the district; and
10-67                (2)  impose on the property included in the district's
10-68    tax rolls a tax that is in proportion of the debt to the property
10-69    value.
 11-1          (d)  When all outstanding debts and obligations of the
 11-2    district are paid, the board shall order the secretary to return
 11-3    the pro rata share of all unused tax money to each district
 11-4    taxpayer.
 11-5          (e)  A taxpayer may request that the taxpayer's share of
 11-6    surplus tax money be credited to the taxpayer's county taxes.  If a
 11-7    taxpayer requests the credit, the board shall direct the secretary
 11-8    to transmit the funds to the county tax assessor-collector.
 11-9          (f)  After the district has paid all of the district's debts
11-10    and has disposed of all of the district's assets and funds as
11-11    prescribed by this section, the board shall file a written report
11-12    with the Commissioners Court of McLennan County setting forth a
11-13    summary of the board's actions in dissolving the district.
11-14          (g)  Not later than the 10th day after the date it receives
11-15    the report and determines that the requirements of this section
11-16    have been fulfilled, the Commissioners Court of McLennan County
11-17    shall enter an order dissolving the district and releasing the
11-18    board from any further duty or obligation.
11-19          SECTION 9.09.  SALE OR TRANSFER OF ASSETS. (a)  The district
11-20    may provide for the sale or transfer of the district's assets and
11-21    liabilities to another entity or person and the district's
11-22    subsequent dissolution.  The dissolution of the district and the
11-23    sale or transfer of the district's assets and liabilities to
11-24    another person or entity may not contravene a trust indenture or
11-25    bond resolution relating to the outstanding bonds of the district.
11-26    The dissolution and sale or transfer does not diminish or impair
11-27    the rights of a holder of an outstanding bond, warrant, or other
11-28    obligation of the district.
11-29          (b)  The sale or transfer of the district's assets and
11-30    liabilities must satisfy the debt and bond obligations of the
11-31    district in a manner that protects the interests of the residents
11-32    of the district, including the residents' collective property
11-33    rights in the district's assets.  Any grant from federal funds is
11-34    considered an obligation to be repaid in satisfaction.  The
11-35    district may not transfer or dispose of the district's assets
11-36    except for due compensation unless the transfer is made to another
11-37    governmental agency that serves the district and the transferred
11-38    assets are to be used for the benefit of residents of the district.
11-39                        ARTICLE 10.  MISCELLANEOUS
11-40          SECTION 10.01.  LIMITATION ON STATE ASSISTANCE. The state may
11-41    not become obligated for the support or maintenance of a hospital
11-42    district created under this Act, nor may the legislature make a
11-43    direct appropriation for the construction, maintenance, or
11-44    improvement of a facility of the district.
11-45          SECTION 10.02.  REQUIRED PUBLICATION. Proof of publication of
11-46    the notice required in the enactment of this Act under the
11-47    provisions of Section 9, Article IX, Texas Constitution, has been
11-48    made in the manner and form provided by law pertaining to the
11-49    enactment of local and special laws, and the notice is found and
11-50    declared proper and sufficient to satisfy the requirement.
11-51          SECTION 10.03.  EFFECTIVE DATE. This Act takes effect
11-52    immediately if it receives a vote of two-thirds of all the members
11-53    elected to each house, as provided by Section 39, Article III,
11-54    Texas Constitution.  If this Act does not receive the vote
11-55    necessary for immediate effect, this Act takes effect September 1,
11-56    2001.
11-57                                 * * * * *