By: Sibley S.B. No. 1824 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. 2-1 ARTICLE 2. TEMPORARY DIRECTORS 2-2 SECTION 2.01. TEMPORARY DIRECTORS. On the effective date of 2-3 this Act, the following persons become temporary directors of the 2-4 district: 2-5 (1) John Crowder; 2-6 (2) Roby Urbanovsky; 2-7 (3) Larry Sparks; 2-8 (4) Jeanette Karlik; 2-9 (5) Robby Payne; 2-10 (6) Tommy Muska; and 2-11 (7) Kirk Wines. 2-12 SECTION 2.02. VACANCY IN OFFICE. The directors remaining 2-13 after a vacancy in the office of a temporary director shall fill 2-14 the vacancy by appointment by majority vote. 2-15 ARTICLE 3. CREATION OF DISTRICT 2-16 SECTION 3.01. CREATION ELECTION. The district may be 2-17 created and a tax may be authorized only if the creation and the 2-18 tax are approved by a majority of the qualified voters of the 2-19 territory of the proposed district voting at an election called and 2-20 held for that purpose. 2-21 SECTION 3.02. ORDERING ELECTION. (a) A majority of the 2-22 temporary directors of the district may order a creation election 2-23 to be held as prescribed by Subsection (c) of this section. 2-24 (b) On presentation of a petition for a creation election 2-25 signed by at least 50 of the registered voters of the territory of 2-26 the proposed district, according to the most recent official list 3-1 of registered voters, the temporary directors shall order an 3-2 election to be held as prescribed by Subsection (c) of this 3-3 section. The election shall be called not later than the 60th day 3-4 after the date the petition is presented to the district. 3-5 (c) The election order must call for an election to be held 3-6 in the territory within the West Independent School District 3-7 boundaries in McLennan County. 3-8 SECTION 3.03. ELECTION ORDER. The order calling the 3-9 election must state: 3-10 (1) the nature of the election, including the 3-11 proposition that is to appear on the ballot; 3-12 (2) the date of the election; 3-13 (3) the hours during which the polls will be open; and 3-14 (4) the location of the polling places. 3-15 SECTION 3.04. NOTICE. The temporary directors shall give 3-16 notice of the election by publishing a substantial copy of the 3-17 election order in a newspaper of general circulation in the 3-18 proposed district once a week for two consecutive weeks. The first 3-19 publication must appear at least 35 days before the date set for 3-20 the election. 3-21 SECTION 3.05. ELECTION DATE. The election shall be held not 3-22 less than 45 days or more than 60 days after the date on which the 3-23 election is ordered. 3-24 SECTION 3.06. BALLOT PROPOSITION. The ballot for the 3-25 election shall be printed to permit voting for or against the 3-26 proposition: "The creation of a hospital district to be known as 4-1 the West Medical District and the levy of annual taxes for hospital 4-2 purposes at a rate not to exceed 75 cents on each $100 valuation of 4-3 all taxable property in the district." 4-4 SECTION 3.07. CANVASSING RETURNS. (a) The temporary 4-5 directors shall meet and canvass the returns of the election. 4-6 (b) If a majority of the votes cast at the election favor 4-7 creation of the district, the temporary directors shall declare the 4-8 district created and shall enter the results in their minutes. 4-9 (c) If the creation of the district is defeated, the 4-10 temporary directors may call and hold another creation election, 4-11 but another creation election may not be called and held before the 4-12 first anniversary of the date of the most recent creation election. 4-13 SECTION 3.08. EXPIRATION OF ACT. If the creation of the 4-14 district is not approved at an election held before the fifth 4-15 anniversary of the effective date of this Act, this Act expires. 4-16 ARTICLE 4. DISTRICT ADMINISTRATION 4-17 SECTION 4.01. BOARD OF DIRECTORS. (a) The district is 4-18 governed by a board of seven directors. 4-19 (b) From the time the creation of the district is approved 4-20 until the elected directors take office, the temporary directors 4-21 serve as directors of the district. 4-22 SECTION 4.02. INITIAL DIRECTORS ELECTION. (a) Directors 4-23 shall be elected at an election to be held on the first Saturday in 4-24 May following the creation of the district. 4-25 (b) At the initial election of directors following creation 4-26 of the district, members of the board of directors shall be elected 5-1 at large on a single ballot, with the seven candidates receiving 5-2 the highest number of votes being elected as directors. The 5-3 directors elected at the initial election shall draw lots to 5-4 determine which two directors shall serve one-year terms, which two 5-5 directors shall serve two-year terms, and which three directors 5-6 shall serve three-year terms. 5-7 SECTION 4.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF 5-8 OFFICE; ELECTION DATE. (a) After the initial election of 5-9 directors following creation of the district, an election shall be 5-10 held on the first Saturday in May each year to elect the 5-11 appropriate number of successor directors. 5-12 (b) The directors shall be elected at large. 5-13 (c) Except as provided by Subsection (b), Section 4.02 of 5-14 this Act, each director is elected for a three-year term. 5-15 SECTION 4.04. NOTICE OF ELECTION. Notice of each election 5-16 of directors shall be published in a newspaper of general 5-17 circulation in the district in accordance with Chapter 4, Election 5-18 Code. 5-19 SECTION 4.05. APPLICATION. A person who wishes to have the 5-20 person's name printed on the ballot as a candidate for director 5-21 must file an application with the secretary of the board of 5-22 directors in accordance with Chapter 144, Election Code. 5-23 SECTION 4.06. QUALIFICATIONS FOR OFFICE. (a) To be 5-24 eligible to be a candidate for or to serve as a director, a person 5-25 must be: 5-26 (1) a resident of the district; and 6-1 (2) a qualified voter. 6-2 (b) An employee of the district may not serve as a director. 6-3 SECTION 4.07. BOND. (a) Before assuming the duties of the 6-4 office, each director must execute a bond for $5,000 payable to the 6-5 district, conditioned on the faithful performance of the person's 6-6 duties as director. 6-7 (b) The bond shall be kept in the permanent records of the 6-8 district. 6-9 (c) The board may pay for the director's bond with district 6-10 funds. 6-11 SECTION 4.08. BOARD VACANCY. A vacancy in the office of 6-12 director shall be filled for the unexpired term by appointment by 6-13 the remaining directors. 6-14 SECTION 4.09. OFFICERS; OFFICERS' TERMS; VACANCY. (a) The 6-15 board shall elect from among its members a president and a vice 6-16 president. 6-17 (b) The board shall appoint a secretary, who need not be a 6-18 director. 6-19 (c) Each officer of the board serves for a term of one year. 6-20 (d) The board shall fill a vacancy in a board office for the 6-21 unexpired term. 6-22 SECTION 4.10. COMPENSATION. (a) Directors and officers 6-23 serve without compensation but may be reimbursed for actual 6-24 expenses incurred in the performance of official duties. 6-25 (b) Expenses reimbursed under this section must be: 6-26 (1) reported in the district's minute book or other 7-1 district records; and 7-2 (2) approved by the board. 7-3 SECTION 4.11. QUORUM; VOTING REQUIREMENT. (a) A majority 7-4 of the membership of the board constitutes a quorum for the 7-5 transaction of business. 7-6 (b) When a quorum is present, a majority of the members of 7-7 the board voting must concur in a matter relating to the business 7-8 of the district. 7-9 SECTION 4.12. ADMINISTRATOR AND ASSISTANT ADMINISTRATOR. 7-10 (a) The board may appoint a qualified person as administrator of 7-11 the district and may in its discretion appoint an assistant to the 7-12 administrator. 7-13 (b) The administrator and assistant administrator, if any, 7-14 serve at the will of the board. 7-15 (c) The administrator and assistant administrator, if any, 7-16 are entitled to compensation as determined by the board. 7-17 (d) The administrator shall supervise all the work and 7-18 activities of the district and shall have general direction of the 7-19 affairs of the district, subject to any limitations the board may 7-20 prescribe. 7-21 (e) Before assuming the duties of administrator, the 7-22 administrator shall execute a bond payable to the district in an 7-23 amount not less than $5,000 as determined by the board, conditioned 7-24 on the administrator's performing the administrator's duties 7-25 required under this Act. The board may pay for the bond with 7-26 district funds. 8-1 (f) The board may delegate to the administrator the 8-2 authority to employ or contract with persons for the district. 8-3 SECTION 4.13. APPOINTMENTS TO STAFF. The board may: 8-4 (1) appoint to the staff any doctors the board 8-5 considers necessary for the efficient operation of the district; 8-6 and 8-7 (2) make temporary appointments the board considers 8-8 necessary. 8-9 SECTION 4.14. TECHNICIANS, NURSES, AND OTHER DISTRICT 8-10 EMPLOYEES. The district may employ or contract with technicians, 8-11 nurses, fiscal agents, accountants, architects, attorneys, and 8-12 other necessary employees. 8-13 ARTICLE 5. POWERS AND DUTIES 8-14 SECTION 5.01. RESPONSIBILITY OF GOVERNMENTAL ENTITY. 8-15 (a) On creation of the district, the West Hospital Authority may, 8-16 in the authority's sole discretion, convey or transfer to the 8-17 district: 8-18 (1) title to any land, buildings, improvements, or 8-19 equipment related to the hospital system that is owned by the West 8-20 Hospital Authority; 8-21 (2) operating funds and reserves for operating 8-22 expenses and funds that have been budgeted by the West Hospital 8-23 Authority to provide medical care for residents of the district for 8-24 the remainder of the fiscal year in which the district is 8-25 established; and 8-26 (3) accounts receivable of the West Hospital Authority 9-1 for medical care provided for residents of the district. 9-2 (b) The West Hospital Authority shall convey or transfer to 9-3 the district funds established for payment of indebtedness assumed 9-4 by the district. 9-5 (c) Except as provided by Subsection (b) of this section, 9-6 nothing in this Act requires the West Hospital Authority to convey 9-7 or transfer any funds or interest in property to the district. 9-8 (d) On creation of the district, McLennan County may 9-9 transfer to the district: 9-10 (1) any taxes levied by McLennan County for hospital 9-11 purposes for residents of the district for the year in which the 9-12 district is created; or 9-13 (2) any accounts receivable of McLennan County for 9-14 medical care provided for residents of the district. 9-15 SECTION 5.02. LIMITATION ON GOVERNMENTAL ENTITY. On or 9-16 after creation of the district, another governmental entity, 9-17 including a county or municipality, in which the district is 9-18 located may not levy taxes or issue bonds or other obligations for 9-19 hospital purposes or for providing medical care for the residents 9-20 of the district. 9-21 SECTION 5.03. DISTRICT RESPONSIBILITIES. (a) On creation 9-22 of the district, the district: 9-23 (1) assumes full responsibility for operating hospital 9-24 facilities and for furnishing medical and hospital care for the 9-25 district's needy inhabitants; 9-26 (2) assumes any outstanding indebtedness incurred by a 10-1 county, municipality, or other governmental entity in which all or 10-2 part of the district is located in providing hospital care for 10-3 residents of the territory of the district before the district's 10-4 creation; and 10-5 (3) may operate or provide for the operation of a 10-6 mobile emergency medical service. 10-7 (b) If part of a county, municipality, or other governmental 10-8 entity is included in the district and part is not included in the 10-9 district, the amount of indebtedness the district assumes under 10-10 Subdivision (2), Subsection (a) of this section, is the portion of 10-11 the total outstanding indebtedness of the county, municipality, or 10-12 other entity for hospital care for all residents of the county, 10-13 municipality, or other entity that the value of taxable property in 10-14 the district bears to the total value of taxable property in the 10-15 county, municipality, or other entity according to the last 10-16 preceding approved assessment rolls of the county, municipality, or 10-17 other entity before the district is confirmed. 10-18 SECTION 5.04. MANAGEMENT, CONTROL, AND ADMINISTRATION. The 10-19 board shall manage, control, and administer the hospital system and 10-20 the funds and resources of the district. 10-21 SECTION 5.05. DISTRICT RULES. The board may adopt rules 10-22 governing the operations of the hospital and hospital system and 10-23 the duties, functions, and responsibilities of district staff and 10-24 employees. 10-25 SECTION 5.06. METHODS AND PROCEDURES. The board may 10-26 prescribe: 11-1 (1) the method of making purchases and expenditures by 11-2 and for the district; and 11-3 (2) accounting and control procedures for the 11-4 district. 11-5 SECTION 5.07. HOSPITAL PROPERTY, FACILITIES, EQUIPMENT, AND 11-6 SERVICES. (a) The board shall determine the type, number, and 11-7 location of buildings required to establish and maintain an 11-8 adequate hospital system and the type of equipment necessary for 11-9 hospital care. 11-10 (b) The board has complete discretion as to the type and 11-11 extent of services the district will offer. The district may 11-12 provide any services or facilities the board finds necessary for 11-13 hospital or medical care, including: 11-14 (1) emergency medical services; 11-15 (2) primary care clinics; 11-16 (3) outpatient clinics; 11-17 (4) home health agencies; 11-18 (5) pharmacies; 11-19 (6) nursing facilities; 11-20 (7) assisted living facilities; 11-21 (8) blood banks; 11-22 (9) community mental health centers; 11-23 (10) alcohol or chemical dependency centers; 11-24 (11) minor emergency centers; 11-25 (12) research centers; or 11-26 (13) laboratories. 12-1 (c) The board may: 12-2 (1) acquire property, facilities, and equipment for 12-3 the district for use in the hospital system; 12-4 (2) mortgage or pledge the property, facilities, or 12-5 equipment acquired as security for the payment of the purchase 12-6 price; 12-7 (3) transfer by lease to physicians, individuals, 12-8 companies, corporations, or other legal entities or acquire by 12-9 lease district hospital facilities; and 12-10 (4) sell or otherwise dispose of property, facilities, 12-11 or equipment. 12-12 SECTION 5.08. CONSTRUCTION CONTRACTS. (a) The board may 12-13 enter into construction contracts on behalf of the district. 12-14 (b) A contract for construction in excess of the amount 12-15 provided by Section 271.024, Local Government Code, may be made 12-16 only after competitive bidding as provided by Subchapter B, Chapter 12-17 271, Local Government Code. 12-18 (c) Chapter 2253, Government Code, as it relates to 12-19 performance and payment bonds, applies to construction contracts 12-20 let by the district. 12-21 SECTION 5.09. DISTRICT OPERATING AND MANAGEMENT CONTRACTS. 12-22 The board may enter into operating or management contracts relating 12-23 to hospital facilities on behalf of the district. 12-24 SECTION 5.10. EMINENT DOMAIN. (a) The district may 12-25 exercise the power of eminent domain to acquire a fee simple or 12-26 other interest in property located in the territory of the district 13-1 if the property interest is necessary to the exercise of the rights 13-2 or authority conferred by this Act. 13-3 (b) The district must exercise the power of eminent domain 13-4 in the manner provided by Chapter 21, Property Code, but the 13-5 district is not required to deposit in the trial court money or 13-6 bond as provided by Section 21.021(a), Property Code. 13-7 (c) In a condemnation proceeding brought by the district, 13-8 the district is not required to: 13-9 (1) pay in advance or give bond or other security for 13-10 costs in the trial court; 13-11 (2) give bond for the issuance of a temporary 13-12 restraining order or a temporary injunction; or 13-13 (3) give bond for costs or supersedeas on an appeal or 13-14 writ of error. 13-15 SECTION 5.11. EXPENSES FOR MOVING FACILITIES OF RAILROADS 13-16 AND UTILITIES. If, in exercising the power of eminent domain, the 13-17 board requires relocating, raising, lowering, rerouting, changing 13-18 the grade, or altering the construction of any railroad, highway, 13-19 pipeline, or electric transmission and electric distribution, 13-20 telegraph, or telephone lines, conduits, poles, or facilities, the 13-21 district must bear the actual cost of relocating, raising, 13-22 lowering, rerouting, changing the grade, or altering the 13-23 construction to provide comparable replacement without enhancement 13-24 of a facility, after deducting the net salvage value derived from 13-25 the old facility. 13-26 SECTION 5.12. INDIGENT CARE. (a) The district shall supply 14-1 care and treatment without charge to a patient who resides in the 14-2 district if the patient or relative who is legally responsible for 14-3 the patient's support cannot pay for the care and treatment. 14-4 (b) The board shall determine the health care services to be 14-5 provided to residents eligible for assistance under this section to 14-6 fulfill the district's obligations under Section 9, Article IX, 14-7 Texas Constitution, and Section 61.055, Health and Safety Code. 14-8 The board may enter into a contract with another entity to fulfill 14-9 its obligations under this Act, Section 9, Article IX, Texas 14-10 Constitution, and Section 61.055, Health and Safety Code. 14-11 (c) Not later than the first day of each operating year, the 14-12 district shall adopt an application procedure to determine 14-13 eligibility for assistance, as provided by Section 61.053, Health 14-14 and Safety Code. 14-15 (d) The administrator of the district may have an inquiry 14-16 made into the financial circumstances of: 14-17 (1) a patient residing in the district and admitted to 14-18 a district facility; and 14-19 (2) a relative of the patient who is legally 14-20 responsible for the patient's support. 14-21 (e) On finding that the patient or a relative of the patient 14-22 legally responsible for the patient's support can pay for all or 14-23 any part of the care and treatment provided by the district, the 14-24 administrator shall report that finding to the board, and the board 14-25 shall issue an order directing the patient or the relative to pay 14-26 the district each week a specified amount that the individual is 15-1 able to pay. 15-2 (f) The administrator may collect money owed to the district 15-3 from the estate of the patient or from that of a relative who was 15-4 legally responsible for the patient's support in the manner 15-5 provided by law for collection of expenses in the last illness of a 15-6 deceased person. 15-7 (g) If there is a dispute relating to an individual's 15-8 ability to pay or if the administrator has any doubt concerning the 15-9 individual's ability to pay, the board shall call witnesses, hear 15-10 and resolve the question, and issue a final order. An appeal from 15-11 a final order of the board must be made to a district court in the 15-12 county in which the district is located, and the substantial 15-13 evidence rule applies. 15-14 SECTION 5.13. REIMBURSEMENT FOR SERVICES. (a) The board 15-15 shall require reimbursement from a county, municipality, or public 15-16 hospital located outside the boundaries of the district for the 15-17 district's care and treatment of a sick, diseased, or injured 15-18 person of that county, municipality, or public hospital as provided 15-19 by Chapter 61, Health and Safety Code. 15-20 (b) The board shall require reimbursement from the sheriff 15-21 or police chief of a county or municipality for the district's care 15-22 and treatment of a person confined in a jail facility of the county 15-23 or municipality who is not a resident of the district. 15-24 (c) The board may contract with the state or federal 15-25 government for the state or federal government to reimburse the 15-26 district for treatment of a sick, diseased, or injured person. 16-1 SECTION 5.14. SERVICE CONTRACTS. The board may contract 16-2 with a municipality, county, special district, or other political 16-3 subdivision of the state or with a state or federal agency for the 16-4 district to: 16-5 (1) furnish a mobile emergency medical service; or 16-6 (2) provide for the investigatory or welfare needs of 16-7 inhabitants of the district. 16-8 SECTION 5.15. GIFTS AND ENDOWMENTS. On behalf of the 16-9 district, the board may accept gifts and endowments to be held in 16-10 trust for any purpose and under any direction, limitation, or 16-11 provision prescribed in writing by the donor that is consistent 16-12 with the proper management of the district. 16-13 SECTION 5.16. AUTHORITY TO SUE AND BE SUED. The board may 16-14 sue and be sued on behalf of the district. 16-15 SECTION 5.17. RETIREMENT BENEFITS. The board may provide 16-16 retirement benefits for the employees of the district by 16-17 establishing or administering a retirement program or electing to 16-18 participate in any statewide retirement system in which the 16-19 district is eligible to participate. 16-20 SECTION 5.18. RECRUITMENT OF STAFF AND EMPLOYEES. The board 16-21 may spend district funds, enter into agreements, and take other 16-22 necessary action to recruit physicians, nurses, and other persons 16-23 to serve as medical staff members or employees of the district, 16-24 including: 16-25 (1) advertising and marketing; 16-26 (2) paying travel, recruitment, and relocation 17-1 expenses; 17-2 (3) providing a loan or scholarship to a physician or 17-3 a person currently enrolled in health care education courses at an 17-4 institution of higher education who contractually agrees to become 17-5 a district employee or medical staff member; or 17-6 (4) contracting with one or more full-time medical 17-7 students or other students in a health occupation, each of whom 17-8 shall be enrolled in and in good standing at an accredited medical 17-9 school, college, or university, to pay the student's tuition or 17-10 other expenses in consideration of the student's agreement to serve 17-11 as an employee or independent contractor for the district. 17-12 SECTION 5.19. NONPROFIT CORPORATION. The district may 17-13 sponsor and create a nonprofit corporation under the Texas 17-14 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's 17-15 Texas Civil Statutes), and may contribute funds to or solicit funds 17-16 for the corporation. The corporation may use district funds only 17-17 to provide health care or other services the district is authorized 17-18 to provide under this Act. The board shall establish adequate 17-19 controls to ensure that the corporation uses its funds as required 17-20 by law. The corporation may invest corporation funds in any manner 17-21 in which the district may invest funds, including investing funds 17-22 as authorized by Chapter 2256, Government Code. 17-23 ARTICLE 6. DISTRICT FINANCES 17-24 SECTION 6.01. FISCAL YEAR. (a) The district operates on 17-25 the fiscal year established by the board. 17-26 (b) The fiscal year may not be changed if revenue bonds of 18-1 the district are outstanding or more than once in a 24-month 18-2 period. 18-3 SECTION 6.02. ANNUAL AUDIT. The board annually shall have 18-4 an audit made of the financial condition of the district. 18-5 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit 18-6 and other district records are open to inspection during regular 18-7 business hours at the principal office of the district. 18-8 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the 18-9 district shall prepare a proposed annual budget for the district. 18-10 (b) The proposed budget must contain a complete financial 18-11 statement, including a statement of: 18-12 (1) the outstanding obligations of the district; 18-13 (2) the amount of cash on hand to the credit of each 18-14 fund of the district; 18-15 (3) the amount of money received by the district from 18-16 all sources during the previous year; 18-17 (4) the amount of money available to the district from 18-18 all sources during the ensuing year; 18-19 (5) the amount of the balances expected at the end of 18-20 the year in which the budget is being prepared; 18-21 (6) the estimated amount of revenues and balances 18-22 available to cover the proposed budget; and 18-23 (7) the estimated tax rate that will be required. 18-24 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The 18-25 board shall hold a public hearing on the proposed annual budget. 18-26 (b) The board shall publish notice of the hearing in a 19-1 newspaper of general circulation in the district not later than the 19-2 10th day before the date of the hearing. 19-3 (c) Any resident of the district is entitled to be present 19-4 and participate at the hearing. 19-5 (d) At the conclusion of the hearing, the board shall adopt 19-6 a budget by acting on the budget proposed by the administrator. 19-7 The board may make any changes in the proposed budget that in its 19-8 judgment the interests of the taxpayers demand. 19-9 (e) The budget is effective only after adoption by the 19-10 board. 19-11 SECTION 6.06. AMENDING BUDGET. After adoption, the annual 19-12 budget may be amended on the board's approval. 19-13 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be 19-14 spent for an expense not included in the annual budget or an 19-15 amendment to it. 19-16 SECTION 6.08. SWORN STATEMENT. As soon as practicable after 19-17 the close of the fiscal year, the administrator shall prepare for 19-18 the board a sworn statement of the amount of money that belongs to 19-19 the district and an account of the disbursements of that money. 19-20 SECTION 6.09. BORROWING MONEY. (a) The district may borrow 19-21 money at a rate not to exceed the minimum annual percentage rate 19-22 allowed by law for district obligations at the time of the loan. 19-23 (b) To secure a loan, the board may pledge: 19-24 (1) the revenues of the district that are not pledged 19-25 to pay the bonded indebtedness of the district; 19-26 (2) district taxes to be levied by the district during 20-1 the 12-month period following the date of the pledge that are not 20-2 pledged to pay the principal of or interest on district bonds; or 20-3 (3) district bonds that have been authorized but not 20-4 sold. 20-5 (c) A loan for which taxes or bonds are pledged shall mature 20-6 not later than the first anniversary of the date on which the loan 20-7 is made. A loan for which district revenues are pledged shall 20-8 mature not later than the fifth anniversary of the date on which 20-9 the loan is made. 20-10 SECTION 6.10. DEPOSITORY. (a) The board shall name at 20-11 least one bank to serve as depository for district funds. 20-12 (b) District funds, other than those transmitted to a bank 20-13 for payment of bonds or obligations issued or assumed by the 20-14 district, shall be deposited as received with the depository bank 20-15 and must remain on deposit. This subsection does not limit the 20-16 power of the board to place a portion of district funds on time 20-17 deposit or to purchase certificates of deposit. 20-18 (c) Before the district deposits funds in a bank in an 20-19 amount that exceeds the maximum amount secured by the Federal 20-20 Deposit Insurance Corporation, the bank must execute a bond or 20-21 other security in an amount sufficient to secure from loss the 20-22 district funds that exceed the amount secured by the Federal 20-23 Deposit Insurance Corporation. 20-24 ARTICLE 7. BONDS 20-25 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue 20-26 and sell bonds authorized by an election in the name and on the 21-1 faith and credit of the district to: 21-2 (1) purchase, construct, acquire, repair, or renovate 21-3 buildings or improvements; 21-4 (2) equip buildings or improvements for hospital 21-5 purposes; or 21-6 (3) acquire and operate a mobile emergency medical 21-7 service. 21-8 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the 21-9 bonds are issued by the district, the board shall levy a tax. 21-10 (b) The tax must be sufficient to create an interest and 21-11 sinking fund to pay the principal of and interest on the bonds as 21-12 the bonds mature. 21-13 (c) In any year, the tax together with any other tax the 21-14 district levies may not exceed the limit approved by the voters at 21-15 the election authorizing the levy of taxes. 21-16 SECTION 7.03. BOND ELECTION. (a) The district may issue 21-17 general obligation bonds only if the bonds are authorized by a 21-18 majority of the qualified voters of the district voting at an 21-19 election called and held for that purpose under this section. 21-20 (b) The board may order a bond election. The order calling 21-21 the election must state: 21-22 (1) the nature and date of the election; 21-23 (2) the hours during which the polls will be open; 21-24 (3) the location of the polling places; 21-25 (4) the amounts of bonds to be authorized; and 21-26 (5) the maximum maturity of the bonds. 22-1 (c) Notice of a bond election shall be given as provided by 22-2 Chapter 1251, Government Code. 22-3 (d) The board shall canvass the returns and declare the 22-4 results of the election. 22-5 SECTION 7.04. REVENUE BONDS. (a) The board may issue bonds 22-6 to: 22-7 (1) purchase, construct, acquire, repair, equip, or 22-8 renovate buildings or improvements for hospital purposes; 22-9 (2) acquire sites to be used for hospital purposes; or 22-10 (3) acquire and operate a mobile emergency medical 22-11 service to assist the district in carrying out the district's 22-12 hospital purpose. 22-13 (b) The bonds must be payable from and secured by a pledge 22-14 of all or part of the revenues derived from the operation of the 22-15 district's hospital system. The bonds may be additionally secured 22-16 by a mortgage or deed of trust lien on all or part of district 22-17 property. 22-18 (c) The bonds must be issued in the manner provided by 22-19 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, 22-20 Health and Safety Code, for issuance of revenue bonds by county 22-21 hospital authorities. 22-22 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the 22-23 district may be issued to refund and pay off any outstanding 22-24 indebtedness the district has issued or assumed. 22-25 (b) The bonds must be issued in the manner provided by 22-26 Chapter 1207, Government Code. 23-1 SECTION 7.06. INTEREST AND MATURITY. District bonds must 23-2 mature not later than the 50th anniversary of the date of their 23-3 issuance and must bear interest at a rate not to exceed that 23-4 provided by Chapter 1204, Government Code. 23-5 SECTION 7.07. EXECUTION OF BONDS. The president of the 23-6 board shall execute the bonds in the name of the district, and the 23-7 secretary of the board shall countersign the bonds in the manner 23-8 provided by Chapter 618, Government Code. 23-9 SECTION 7.08. APPROVAL AND REGISTRATION OF BONDS. 23-10 (a) District bonds are subject to the same requirements with 23-11 regard to approval by the attorney general and registration by the 23-12 comptroller as the law provides for approval and registration of 23-13 bonds issued by counties. 23-14 (b) On approval by the attorney general and registration by 23-15 the comptroller, the bonds are incontestable for any cause. 23-16 SECTION 7.09. BONDS AS INVESTMENTS. District bonds and 23-17 indebtedness assumed by the district are legal and authorized 23-18 investments for: 23-19 (1) banks; 23-20 (2) savings banks; 23-21 (3) trust companies; 23-22 (4) savings and loan associations; 23-23 (5) insurance companies; 23-24 (6) fiduciaries; 23-25 (7) trustees; 23-26 (8) guardians; and 24-1 (9) sinking funds of municipalities, counties, school 24-2 districts, and other political subdivisions of the state and other 24-3 public funds of the state and its agencies, including the permanent 24-4 school fund. 24-5 SECTION 7.10. BONDS AS SECURITY FOR DEPOSITS. District 24-6 bonds are eligible to secure deposits of public funds of the state 24-7 and of municipalities, counties, school districts, and other 24-8 political subdivisions of the state. The bonds are lawful and 24-9 sufficient security for deposits to the extent of their value if 24-10 accompanied by all unmatured coupons. 24-11 SECTION 7.11. TAX STATUS OF BONDS. Because the district 24-12 created under this Act is a public entity performing an essential 24-13 public function, bonds issued by the district, any transaction 24-14 relating to the bonds, and profits made in the sale of the bonds 24-15 are free from taxation by the state or by any municipality, county, 24-16 special district, or other political subdivision of the state. 24-17 ARTICLE 8. TAXES 24-18 SECTION 8.01. LEVY OF TAXES. (a) The board annually may 24-19 impose property taxes in an amount not to exceed the limit approved 24-20 by the voters at the election authorizing the levy of taxes. 24-21 (b) The tax rate for all purposes may not exceed 75 cents on 24-22 each $100 valuation of all taxable property in the district. 24-23 (c) The taxes may be used to pay: 24-24 (1) the indebtedness issued or assumed by the 24-25 district; and 24-26 (2) the maintenance and operating expenses of the 25-1 district. 25-2 (d) The district may not impose taxes to pay the principal 25-3 of or interest on revenue bonds issued under this Act. 25-4 SECTION 8.02. BOARD AUTHORITY. The board may impose taxes 25-5 for the entire year in which the district is created. 25-6 SECTION 8.03. ADOPTING TAX RATE. In adopting the tax rate, 25-7 the board shall consider the income of the district from sources 25-8 other than taxation. 25-9 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) The Tax 25-10 Code governs the appraisal, assessment, and collection of district 25-11 taxes. 25-12 (b) The board may provide for the appointment of a tax 25-13 assessor-collector for the district or may contract for the 25-14 assessment and collection of taxes as provided by the Tax Code. 25-15 ARTICLE 9. DISSOLUTION OF DISTRICT 25-16 SECTION 9.01. DISSOLUTION ELECTION. The district may be 25-17 dissolved only if the dissolution is approved by a majority of the 25-18 qualified voters of the district voting in an election called and 25-19 held for that purpose. 25-20 SECTION 9.02. ORDERING ELECTION. (a) The board may order 25-21 an election on the question of dissolving the district and 25-22 disposing of the district's assets and obligations. 25-23 (b) The board shall order an election on the question of 25-24 dissolving the district and disposing of the district's assets and 25-25 obligations if the board receives a petition requesting an election 25-26 that is signed by a number of registered voters of the district 26-1 equal to at least 15 percent of the registered voters in the 26-2 district. 26-3 SECTION 9.03. ELECTION ORDER. The order calling the 26-4 election must state: 26-5 (1) the nature of the election, including the 26-6 proposition that is to appear on the ballot; 26-7 (2) the date of the election; 26-8 (3) the hours during which the polls will be open; and 26-9 (4) the location of the polling places. 26-10 SECTION 9.04. NOTICE. The board shall give notice of the 26-11 election by publishing a substantial copy of the election order in 26-12 a newspaper with general circulation in the district once a week 26-13 for two consecutive weeks. The first publication must appear at 26-14 least 35 days before the date set for the election. 26-15 SECTION 9.05. ELECTION DATE. (a) The election shall be 26-16 held not later than the 60th day after the date the election is 26-17 ordered. 26-18 (b) Section 41.001, Election Code, does not apply to an 26-19 election ordered under this section. 26-20 SECTION 9.06. BALLOT PROPOSITION. The ballot for an 26-21 election at which the dissolution of the district is proposed shall 26-22 be printed to permit voting for or against the proposition: "The 26-23 dissolution of the West Medical District." 26-24 SECTION 9.07. CANVASSING RETURNS. (a) The board shall 26-25 canvass the returns of the election. 26-26 (b) If a majority of the votes in the election favor 27-1 dissolution, the board shall find that the district is dissolved. 27-2 (c) If a majority of the votes in the election do not favor 27-3 dissolution, the board shall continue to administer the district, 27-4 and another election on the question of dissolution may not be held 27-5 before the first anniversary of the date of the most recent 27-6 election to dissolve the district. 27-7 SECTION 9.08. DISSOLUTION PROCEDURES. (a) If a majority of 27-8 the votes in the election favor dissolution, the board shall: 27-9 (1) transfer the land, buildings, improvements, 27-10 equipment, and other assets that belong to the district to a county 27-11 or another governmental entity in the county in which the district 27-12 is located; 27-13 (2) sell the assets and liabilities to another person 27-14 or entity; or 27-15 (3) administer the property, assets, and debts until 27-16 all funds have been disposed of and all district debts have been 27-17 paid or settled. 27-18 (b) If the district transfers the land, buildings, 27-19 improvements, equipment, and other assets to a county or other 27-20 governmental entity, the county or entity assumes all debts and 27-21 obligations of the district at the time of the transfer, at which 27-22 time the district is dissolved. If the district does not transfer 27-23 the land, buildings, improvements, equipment, and other assets to a 27-24 county or other governmental entity, or sell those assets and the 27-25 liabilities to another person, the board shall administer the 27-26 property, assets, and debts of the district until all funds have 28-1 been disposed of and all district debts have been paid or settled, 28-2 at which time the district is dissolved. 28-3 (c) After the board finds that the district is dissolved, 28-4 the board shall: 28-5 (1) determine the debt owed by the district; and 28-6 (2) impose on the property included in the district's 28-7 tax rolls a tax that is in proportion of the debt to the property 28-8 value. 28-9 (d) When all outstanding debts and obligations of the 28-10 district are paid, the board shall order the secretary to return 28-11 the pro rata share of all unused tax money to each district 28-12 taxpayer. 28-13 (e) A taxpayer may request that the taxpayer's share of 28-14 surplus tax money be credited to the taxpayer's county taxes. If a 28-15 taxpayer requests the credit, the board shall direct the secretary 28-16 to transmit the funds to the county tax assessor-collector. 28-17 (f) After the district has paid all of the district's debts 28-18 and has disposed of all of the district's assets and funds as 28-19 prescribed by this section, the board shall file a written report 28-20 with the Commissioners Court of McLennan County setting forth a 28-21 summary of the board's actions in dissolving the district. 28-22 (g) Not later than the 10th day after the date it receives 28-23 the report and determines that the requirements of this section 28-24 have been fulfilled, the Commissioners Court of McLennan County 28-25 shall enter an order dissolving the district and releasing the 28-26 board from any further duty or obligation. 29-1 SECTION 9.09. SALE OR TRANSFER OF ASSETS. (a) The district 29-2 may provide for the sale or transfer of the district's assets and 29-3 liabilities to another entity or person and the district's 29-4 subsequent dissolution. The dissolution of the district and the 29-5 sale or transfer of the district's assets and liabilities to 29-6 another person or entity may not contravene a trust indenture or 29-7 bond resolution relating to the outstanding bonds of the district. 29-8 The dissolution and sale or transfer does not diminish or impair 29-9 the rights of a holder of an outstanding bond, warrant, or other 29-10 obligation of the district. 29-11 (b) The sale or transfer of the district's assets and 29-12 liabilities must satisfy the debt and bond obligations of the 29-13 district in a manner that protects the interests of the residents 29-14 of the district, including the residents' collective property 29-15 rights in the district's assets. Any grant from federal funds is 29-16 considered an obligation to be repaid in satisfaction. The 29-17 district may not transfer or dispose of the district's assets 29-18 except for due compensation unless the transfer is made to another 29-19 governmental agency that serves the district and the transferred 29-20 assets are to be used for the benefit of residents of the district. 29-21 ARTICLE 10. MISCELLANEOUS 29-22 SECTION 10.01. LIMITATION ON STATE ASSISTANCE. The state 29-23 may not become obligated for the support or maintenance of a 29-24 hospital district created under this Act, nor may the legislature 29-25 make a direct appropriation for the construction, maintenance, or 29-26 improvement of a facility of the district. 30-1 SECTION 10.02. REQUIRED PUBLICATION. Proof of publication 30-2 of the notice required in the enactment of this Act under the 30-3 provisions of Section 9, Article IX, Texas Constitution, has been 30-4 made in the manner and form provided by law pertaining to the 30-5 enactment of local and special laws, and the notice is found and 30-6 declared proper and sufficient to satisfy the requirement. 30-7 SECTION 10.03. EFFECTIVE DATE. This Act takes effect 30-8 immediately if it receives a vote of two-thirds of all the members 30-9 elected to each house, as provided by Section 39, Article III, 30-10 Texas Constitution. If this Act does not receive the vote 30-11 necessary for immediate effect, this Act takes effect September 1, 30-12 2001.