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.