By Sibley S.B. No. 1824
77R10139 YDB-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of a hospital district to be known as the
1-4 West Medical District; authorizing a tax; granting the authority to
1-5 issue and refund bonds; and granting the power of eminent domain.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1. GENERAL PROVISIONS
1-8 SECTION 1.01. DEFINITIONS. In this Act:
1-9 (1) "District" means the West Medical District.
1-10 (2) "Board" means the board of directors of the
1-11 district.
1-12 (3) "Director" means a member of the board.
1-13 SECTION 1.02. DISTRICT AUTHORIZATION. A hospital district
1-14 to be known as the West Medical District may be created and
1-15 established and, if created, must be maintained, operated, and
1-16 financed in the manner provided by Section 9, Article IX, Texas
1-17 Constitution, and by this Act.
1-18 SECTION 1.03. BOUNDARIES. The boundaries of the district
1-19 are coextensive with the boundaries of the West Independent School
1-20 District in McLennan County.
1-21 SECTION 1.04. ELECTION CODE PROVISIONS. Section 41.001(a),
1-22 Election Code, does not apply to an election ordered under this
1-23 Act.
1-24 ARTICLE 2. TEMPORARY DIRECTORS
2-1 SECTION 2.01. TEMPORARY DIRECTORS. On the effective date of
2-2 this Act, the following persons become temporary directors of the
2-3 district:
2-4 (1) John Crowder;
2-5 (2) Roby Urbanovsky;
2-6 (3) Larry Sparks;
2-7 (4) Jeanette Karlik;
2-8 (5) Robby Payne;
2-9 (6) Tommy Muska; and
2-10 (7) Kirk Wines.
2-11 SECTION 2.02. VACANCY IN OFFICE. The directors remaining
2-12 after a vacancy in the office of a temporary director shall fill
2-13 the vacancy by appointment by majority vote.
2-14 ARTICLE 3. CREATION OF DISTRICT
2-15 SECTION 3.01. CREATION ELECTION. The district may be
2-16 created and a tax may be authorized only if the creation and the
2-17 tax are approved by a majority of the qualified voters of the
2-18 territory of the proposed district voting at an election called and
2-19 held for that purpose.
2-20 SECTION 3.02. ORDERING ELECTION. (a) A majority of the
2-21 temporary directors of the district may order a creation election
2-22 to be held as prescribed by Subsection (c) of this section.
2-23 (b) On presentation of a petition for a creation election
2-24 signed by at least 50 of the registered voters of the territory of
2-25 the proposed district, according to the most recent official list
2-26 of registered voters, the temporary directors shall order an
2-27 election to be held as prescribed by Subsection (c) of this
3-1 section. The election shall be called not later than the 60th day
3-2 after the date the petition is presented to the district.
3-3 (c) The election order must call for an election to be held
3-4 in the territory within the West Independent School District
3-5 boundaries in McLennan County.
3-6 SECTION 3.03. ELECTION ORDER. The order calling the
3-7 election must state:
3-8 (1) the nature of the election, including the
3-9 proposition that is to appear on the ballot;
3-10 (2) the date of the election;
3-11 (3) the hours during which the polls will be open; and
3-12 (4) the location of the polling places.
3-13 SECTION 3.04. NOTICE. The temporary directors shall give
3-14 notice of the election by publishing a substantial copy of the
3-15 election order in a newspaper of general circulation in the
3-16 proposed district once a week for two consecutive weeks. The first
3-17 publication must appear at least 35 days before the date set for
3-18 the election.
3-19 SECTION 3.05. ELECTION DATE. The election shall be held not
3-20 less than 45 days or more than 60 days after the date on which the
3-21 election is ordered.
3-22 SECTION 3.06. BALLOT PROPOSITION. The ballot for the
3-23 election shall be printed to permit voting for or against the
3-24 proposition: "The creation of a hospital district to be known as
3-25 the West Medical District and the levy of annual taxes for hospital
3-26 purposes at a rate not to exceed 75 cents on each $100 valuation of
3-27 all taxable property in the district."
4-1 SECTION 3.07. CANVASSING RETURNS. (a) The temporary
4-2 directors shall meet and canvass the returns of the election.
4-3 (b) If a majority of the votes cast at the election favor
4-4 creation of the district, the temporary directors shall declare the
4-5 district created and shall enter the results in their minutes.
4-6 (c) If the creation of the district is defeated, the
4-7 temporary directors may call and hold another creation election,
4-8 but another creation election may not be called and held before the
4-9 first anniversary of the date of the most recent creation election.
4-10 SECTION 3.08. EXPIRATION OF ACT. If the creation of the
4-11 district is not approved at an election held before the fifth
4-12 anniversary of the effective date of this Act, this Act expires.
4-13 ARTICLE 4. DISTRICT ADMINISTRATION
4-14 SECTION 4.01. BOARD OF DIRECTORS. (a) The district is
4-15 governed by a board of seven directors.
4-16 (b) From the time the creation of the district is approved
4-17 until the elected directors take office, the temporary directors
4-18 serve as directors of the district.
4-19 SECTION 4.02. INITIAL DIRECTORS ELECTION. (a) Directors
4-20 shall be elected at an election to be held on the first Saturday in
4-21 May following the creation of the district.
4-22 (b) At the initial election of directors following creation
4-23 of the district, members of the board of directors shall be elected
4-24 at large on a single ballot, with the seven candidates receiving
4-25 the highest number of votes being elected as directors. The
4-26 directors elected at the initial election shall draw lots to
4-27 determine which two directors shall serve one-year terms, which two
5-1 directors shall serve two-year terms, and which three directors
5-2 shall serve three-year terms.
5-3 SECTION 4.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF
5-4 OFFICE; ELECTION DATE. (a) After the initial election of
5-5 directors following creation of the district, an election shall be
5-6 held on the first Saturday in May each year to elect the
5-7 appropriate number of successor directors.
5-8 (b) The directors shall be elected at large.
5-9 (c) Except as provided by Section 4.02(b) of this Act, each
5-10 director is elected for a three-year term.
5-11 SECTION 4.04. NOTICE OF ELECTION. Notice of each election
5-12 of directors shall be published in a newspaper of general
5-13 circulation in the district in accordance with Chapter 4, Election
5-14 Code.
5-15 SECTION 4.05. APPLICATION. A person who wishes to have the
5-16 person's name printed on the ballot as a candidate for director
5-17 must file an application with the secretary of the board of
5-18 directors in accordance with Chapter 144, Election Code.
5-19 SECTION 4.06. QUALIFICATIONS FOR OFFICE. (a) To be
5-20 eligible to be a candidate for or to serve as a director, a person
5-21 must be:
5-22 (1) a resident of the district; and
5-23 (2) a qualified voter.
5-24 (b) An employee of the district may not serve as a director.
5-25 SECTION 4.07. BOND. (a) Before assuming the duties of the
5-26 office, each director must execute a bond for $5,000 payable to the
5-27 district, conditioned on the faithful performance of the person's
6-1 duties as director.
6-2 (b) The bond shall be kept in the permanent records of the
6-3 district.
6-4 (c) The board may pay for the director's bond with district
6-5 funds.
6-6 SECTION 4.08. BOARD VACANCY. A vacancy in the office of
6-7 director shall be filled for the unexpired term by appointment by
6-8 the remaining directors.
6-9 SECTION 4.09. OFFICERS; OFFICERS' TERMS; VACANCY. (a) The
6-10 board shall elect from among its members a president and a vice
6-11 president.
6-12 (b) The board shall appoint a secretary, who need not be a
6-13 director.
6-14 (c) Each officer of the board serves for a term of one year.
6-15 (d) The board shall fill a vacancy in a board office for the
6-16 unexpired term.
6-17 SECTION 4.10. COMPENSATION. (a) Directors and officers
6-18 serve without compensation but may be reimbursed for actual
6-19 expenses incurred in the performance of official duties.
6-20 (b) Expenses reimbursed under this section must be:
6-21 (1) reported in the district's minute book or other
6-22 district records; and
6-23 (2) approved by the board.
6-24 SECTION 4.11. QUORUM; VOTING REQUIREMENT. (a) A majority
6-25 of the membership of the board constitutes a quorum for the
6-26 transaction of business.
6-27 (b) When a quorum is present, a majority of the members of
7-1 the board voting must concur in a matter relating to the business
7-2 of the district.
7-3 SECTION 4.12. ADMINISTRATOR AND ASSISTANT ADMINISTRATOR.
7-4 (a) The board may appoint a qualified person as administrator of
7-5 the district and may in its discretion appoint an assistant to the
7-6 administrator.
7-7 (b) The administrator and assistant administrator, if any,
7-8 serve at the will of the board.
7-9 (c) The administrator and assistant administrator, if any,
7-10 are entitled to compensation as determined by the board.
7-11 (d) The administrator shall supervise all the work and
7-12 activities of the district and shall have general direction of the
7-13 affairs of the district, subject to any limitations the board may
7-14 prescribe.
7-15 (e) Before assuming the duties of administrator, the
7-16 administrator shall execute a bond payable to the hospital district
7-17 in an amount not less than $5,000 as determined by the board,
7-18 conditioned on the administrator's performing the administrator's
7-19 duties required under this Act. The board may pay for the bond
7-20 with district funds.
7-21 (f) The board may delegate to the administrator the
7-22 authority to employ or contract with persons for the district.
7-23 SECTION 4.13. APPOINTMENTS TO STAFF. The board may:
7-24 (1) appoint to the staff any doctors the board
7-25 considers necessary for the efficient operation of the district;
7-26 and
7-27 (2) make temporary appointments the board considers
8-1 necessary.
8-2 SECTION 4.14. TECHNICIANS, NURSES, AND OTHER DISTRICT
8-3 EMPLOYEES. The district may employ or contract with technicians,
8-4 nurses, fiscal agents, accountants, architects, attorneys, and
8-5 other necessary employees.
8-6 ARTICLE 5. POWERS AND DUTIES
8-7 SECTION 5.01. RESPONSIBILITY OF GOVERNMENTAL ENTITY. (a)
8-8 On creation of the district, the West Hospital Authority may, in
8-9 the authority's sole discretion, convey or transfer to the
8-10 district:
8-11 (1) title to any land, buildings, improvements, or
8-12 equipment related to the hospital system that is owned by the West
8-13 Hospital Authority;
8-14 (2) operating funds and reserves for operating
8-15 expenses and funds that have been budgeted by the West Hospital
8-16 Authority to provide medical care for residents of the district for
8-17 the remainder of the fiscal year in which the district is
8-18 established; and
8-19 (3) accounts receivable of the West Hospital Authority
8-20 for medical care provided for residents of the district.
8-21 (b) The West Hospital Authority shall convey or transfer to
8-22 the district funds established for payment of indebtedness assumed
8-23 by the district.
8-24 (c) Except as provided by Subsection (b) of this section,
8-25 nothing in this Act requires the West Hospital Authority to convey
8-26 or transfer any funds or interest in property to the district.
8-27 (d) On creation of the district, McLennan County may
9-1 transfer to the district:
9-2 (1) any taxes levied by McLennan County for hospital
9-3 purposes for residents of the district for the year in which the
9-4 district is created; or
9-5 (2) any accounts receivable of McLennan County for
9-6 medical care provided for residents of the district.
9-7 SECTION 5.02. LIMITATION ON GOVERNMENTAL ENTITY. On or
9-8 after creation of the district, another governmental entity,
9-9 including a county or municipality, in which the district is
9-10 located may not levy taxes or issue bonds or other obligations for
9-11 hospital purposes or for providing medical care for the residents
9-12 of the district.
9-13 SECTION 5.03. DISTRICT RESPONSIBILITIES. (a) On creation
9-14 of the district, the district:
9-15 (1) assumes full responsibility for operating hospital
9-16 facilities and for furnishing medical and hospital care for the
9-17 district's needy inhabitants;
9-18 (2) assumes any outstanding indebtedness incurred by a
9-19 county, municipality, or other governmental entity in which all or
9-20 part of the district is located in providing hospital care for
9-21 residents of the territory of the district before the district's
9-22 creation; and
9-23 (3) may operate or provide for the operation of a
9-24 mobile emergency medical service.
9-25 (b) If part of a county, municipality, or other governmental
9-26 entity is included in the district and part is not included in the
9-27 district, the amount of indebtedness the district assumes under
10-1 Subsection (a)(2) of this section is the portion of the total
10-2 outstanding indebtedness of the county, municipality, or other
10-3 entity for hospital care for all residents of the county,
10-4 municipality, or other entity that the value of taxable property in
10-5 the district bears to the total value of taxable property in the
10-6 county, municipality, or other entity according to the last
10-7 preceding approved assessment rolls of the county, municipality, or
10-8 other entity before the district is confirmed.
10-9 SECTION 5.04. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
10-10 board shall manage, control, and administer the hospital system and
10-11 the funds and resources of the district.
10-12 SECTION 5.05. DISTRICT RULES. The board may adopt rules
10-13 governing the operations of the hospital and hospital system and
10-14 the duties, functions, and responsibilities of district staff and
10-15 employees.
10-16 SECTION 5.06. METHODS AND PROCEDURES. The board may
10-17 prescribe:
10-18 (1) the method of making purchases and expenditures by
10-19 and for the district; and
10-20 (2) accounting and control procedures for the
10-21 district.
10-22 SECTION 5.07. HOSPITAL PROPERTY, FACILITIES, EQUIPMENT, AND
10-23 SERVICES. (a) The board shall determine the type, number, and
10-24 location of buildings required to establish and maintain an
10-25 adequate hospital system and the type of equipment necessary for
10-26 hospital care.
10-27 (b) The board has complete discretion as to the type and
11-1 extent of services the district will offer. The district may
11-2 provide any services or facilities the board finds necessary for
11-3 hospital or medical care, including:
11-4 (1) emergency medical services;
11-5 (2) primary care clinics;
11-6 (3) outpatient clinics;
11-7 (4) home health agencies;
11-8 (5) pharmacies;
11-9 (6) nursing facilities;
11-10 (7) assisted living facilities;
11-11 (8) blood banks;
11-12 (9) community mental health centers;
11-13 (10) alcohol or chemical dependency centers;
11-14 (11) minor emergency centers;
11-15 (12) research centers; or
11-16 (13) laboratories.
11-17 (c) The board may:
11-18 (1) acquire property, facilities, and equipment for
11-19 the district for use in the hospital system;
11-20 (2) mortgage or pledge the property, facilities, or
11-21 equipment acquired as security for the payment of the purchase
11-22 price;
11-23 (3) transfer by lease to physicians, individuals,
11-24 companies, corporations, or other legal entities or acquire by
11-25 lease district hospital facilities; and
11-26 (4) sell or otherwise dispose of property, facilities,
11-27 or equipment.
12-1 SECTION 5.08. CONSTRUCTION CONTRACTS. (a) The board may
12-2 enter into construction contracts on behalf of the district.
12-3 (b) A contract for construction in excess of the amount
12-4 provided by Section 271.024, Local Government Code, may be made
12-5 only after competitive bidding as provided by Subchapter B, Chapter
12-6 271, Local Government Code.
12-7 (c) Chapter 2253, Government Code, as it relates to
12-8 performance and payment bonds, applies to construction contracts
12-9 let by the district.
12-10 SECTION 5.09. DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
12-11 The board may enter into operating or management contracts relating
12-12 to hospital facilities on behalf of the district.
12-13 SECTION 5.10. EMINENT DOMAIN. (a) The district may
12-14 exercise the power of eminent domain to acquire a fee simple or
12-15 other interest in property located in the territory of the district
12-16 if the property interest is necessary to the exercise of the rights
12-17 or authority conferred by this Act.
12-18 (b) The district must exercise the power of eminent domain
12-19 in the manner provided by Chapter 21, Property Code, but the
12-20 district is not required to deposit in the trial court money or
12-21 bond as provided by Section 21.021(a), Property Code.
12-22 (c) In a condemnation proceeding brought by the district,
12-23 the district is not required to:
12-24 (1) pay in advance or give bond or other security for
12-25 costs in the trial court;
12-26 (2) give bond for the issuance of a temporary
12-27 restraining order or a temporary injunction; or
13-1 (3) give bond for costs or supersedeas on an appeal or
13-2 writ of error.
13-3 SECTION 5.11. EXPENSES FOR MOVING FACILITIES OF RAILROADS
13-4 AND UTILITIES. If, in exercising the power of eminent domain, the
13-5 board requires relocating, raising, lowering, rerouting, changing
13-6 the grade, or altering the construction of any railroad, highway,
13-7 pipeline, or electric transmission and electric distribution,
13-8 telegraph, or telephone lines, conduits, poles, or facilities, the
13-9 district must bear the actual cost of relocating, raising,
13-10 lowering, rerouting, changing the grade, or altering the
13-11 construction to provide comparable replacement without enhancement
13-12 of a facility, after deducting the net salvage value derived from
13-13 the old facility.
13-14 SECTION 5.12. INDIGENT CARE. (a) The district shall supply
13-15 care and treatment without charge to a patient who resides in the
13-16 district if the patient or relative who is legally responsible for
13-17 the patient's support cannot pay for the care and treatment.
13-18 (b) The board shall determine the health care services to be
13-19 provided to residents eligible for assistance under this section to
13-20 fulfill the district's obligations under Section 9, Article IX,
13-21 Texas Constitution, and Section 61.055, Health and Safety Code.
13-22 The board may enter into a contract with another entity to fulfill
13-23 its obligations under this Act, Section 9, Article IX, Texas
13-24 Constitution, and Section 61.055, Health and Safety Code.
13-25 (c) Not later than the first day of each operating year, the
13-26 district shall adopt an application procedure to determine
13-27 eligibility for assistance, as provided by Section 61.053, Health
14-1 and Safety Code.
14-2 (d) The administrator of the district may have an inquiry
14-3 made into the financial circumstances of:
14-4 (1) a patient residing in the district and admitted to
14-5 a district facility; and
14-6 (2) a relative of the patient who is legally
14-7 responsible for the patient's support.
14-8 (e) On finding that the patient or a relative of the patient
14-9 legally responsible for the patient's support can pay for all or
14-10 any part of the care and treatment provided by the district, the
14-11 administrator shall report that finding to the board, and the board
14-12 shall issue an order directing the patient or the relative to pay
14-13 the district each week a specified amount that the individual is
14-14 able to pay.
14-15 (f) The administrator may collect money owed to the district
14-16 from the estate of the patient or from that of a relative who was
14-17 legally responsible for the patient's support in the manner
14-18 provided by law for collection of expenses in the last illness of a
14-19 deceased person.
14-20 (g) If there is a dispute relating to an individual's
14-21 ability to pay or if the administrator has any doubt concerning the
14-22 individual's ability to pay, the board shall call witnesses, hear
14-23 and resolve the question, and issue a final order. An appeal from
14-24 a final order of the board must be made to a district court in the
14-25 county in which the district is located, and the substantial
14-26 evidence rule applies.
14-27 SECTION 5.13. REIMBURSEMENT FOR SERVICES. (a) The board
15-1 shall require reimbursement from a county, municipality, or public
15-2 hospital located outside the boundaries of the district for the
15-3 district's care and treatment of a sick, diseased, or injured
15-4 person of that county, municipality, or public hospital as provided
15-5 by Chapter 61, Health and Safety Code.
15-6 (b) The board shall require reimbursement from the sheriff
15-7 or police chief of a county or municipality for the district's care
15-8 and treatment of a person confined in a jail facility of the county
15-9 or municipality who is not a resident of the district.
15-10 (c) The board may contract with state or federal government
15-11 for the state or federal government to reimburse the district for
15-12 treatment of a sick, diseased, or injured person.
15-13 SECTION 5.14. SERVICE CONTRACTS. The board may contract
15-14 with a municipality, county, special district, or other political
15-15 subdivision of the state or with a state or federal agency for the
15-16 district to:
15-17 (1) furnish a mobile emergency medical service; or
15-18 (2) provide for the investigatory or welfare needs of
15-19 inhabitants of the district.
15-20 SECTION 5.15. GIFTS AND ENDOWMENTS. On behalf of the
15-21 district, the board may accept gifts and endowments to be held in
15-22 trust for any purpose and under any direction, limitation, or
15-23 provision prescribed in writing by the donor that is consistent
15-24 with the proper management of the district.
15-25 SECTION 5.16. AUTHORITY TO SUE AND BE SUED. The board may
15-26 sue and be sued on behalf of the district.
15-27 SECTION 5.17. RETIREMENT BENEFITS. The board may provide
16-1 retirement benefits for the employees of the district by
16-2 establishing or administering a retirement program or electing to
16-3 participate in any statewide retirement system in which the
16-4 district is eligible to participate.
16-5 SECTION 5.18. RECRUITMENT OF STAFF AND EMPLOYEES. The board
16-6 may spend district funds, enter into agreements, and take other
16-7 necessary action to recruit physicians, nurses, and other persons
16-8 to serve as medical staff members or employees of the district,
16-9 including:
16-10 (1) advertising and marketing;
16-11 (2) paying travel, recruitment, and relocation
16-12 expenses;
16-13 (3) providing a loan or scholarship to a physician or
16-14 a person currently enrolled in health care education courses at an
16-15 institution of higher education who contractually agrees to become
16-16 a district employee or medical staff member; or
16-17 (4) contracting with one or more full-time medical
16-18 students or other students in a health occupation, each of whom
16-19 shall be enrolled in and in good standing at an accredited medical
16-20 school, college, or university, to pay the student's tuition or
16-21 other expenses in consideration of the student's agreement to serve
16-22 as an employee or independent contractor for the district.
16-23 SECTION 5.19. NONPROFIT CORPORATION. The district may
16-24 sponsor and create a nonprofit corporation under the Texas
16-25 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
16-26 Texas Civil Statutes), and may contribute funds to or solicit funds
16-27 for the corporation. The corporation may use district funds only
17-1 to provide health care or other services the district is authorized
17-2 to provide under this Act. The board shall establish adequate
17-3 controls to ensure that the corporation uses its funds as required
17-4 by law. The corporation may invest corporation funds in any manner
17-5 in which the district may invest funds, including investing funds
17-6 as authorized by Chapter 2256, Government Code.
17-7 ARTICLE 6. DISTRICT FINANCES
17-8 SECTION 6.01. FISCAL YEAR. (a) The district operates on
17-9 the fiscal year established by the board.
17-10 (b) The fiscal year may not be changed if revenue bonds of
17-11 the district are outstanding or more than once in a 24-month
17-12 period.
17-13 SECTION 6.02. ANNUAL AUDIT. The board annually shall have
17-14 an audit made of the financial condition of the district.
17-15 SECTION 6.03. DISTRICT AUDIT AND RECORDS. The annual audit
17-16 and other district records are open to inspection during regular
17-17 business hours at the principal office of the district.
17-18 SECTION 6.04. ANNUAL BUDGET. (a) The administrator of the
17-19 district shall prepare a proposed annual budget for the district.
17-20 (b) The proposed budget must contain a complete financial
17-21 statement, including a statement of:
17-22 (1) the outstanding obligations of the district;
17-23 (2) the amount of cash on hand to the credit of each
17-24 fund of the district;
17-25 (3) the amount of money received by the district from
17-26 all sources during the previous year;
17-27 (4) the amount of money available to the district from
18-1 all sources during the ensuing year;
18-2 (5) the amount of the balances expected at the end of
18-3 the year in which the budget is being prepared;
18-4 (6) the estimated amount of revenues and balances
18-5 available to cover the proposed budget; and
18-6 (7) the estimated tax rate that will be required.
18-7 SECTION 6.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
18-8 board shall hold a public hearing on the proposed annual budget.
18-9 (b) The board shall publish notice of the hearing in a
18-10 newspaper of general circulation in the district not later than the
18-11 10th day before the date of the hearing.
18-12 (c) Any resident of the district is entitled to be present
18-13 and participate at the hearing.
18-14 (d) At the conclusion of the hearing, the board shall adopt
18-15 a budget by acting on the budget proposed by the administrator.
18-16 The board may make any changes in the proposed budget that in its
18-17 judgment the interests of the taxpayers demand.
18-18 (e) The budget is effective only after adoption by the
18-19 board.
18-20 SECTION 6.06. AMENDING BUDGET. After adoption, the annual
18-21 budget may be amended on the board's approval.
18-22 SECTION 6.07. LIMITATION ON EXPENDITURES. Money may not be
18-23 spent for an expense not included in the annual budget or an
18-24 amendment to it.
18-25 SECTION 6.08. SWORN STATEMENT. As soon as practicable after
18-26 the close of the fiscal year, the administrator shall prepare for
18-27 the board a sworn statement of the amount of money that belongs to
19-1 the district and an account of the disbursements of that money.
19-2 SECTION 6.09. BORROWING MONEY. (a) The district may borrow
19-3 money at a rate not to exceed the minimum annual percentage rate
19-4 allowed by law for district obligations at the time of the loan.
19-5 (b) To secure a loan, the board may pledge:
19-6 (1) the revenues of the district that are not pledged
19-7 to pay the bonded indebtedness of the district;
19-8 (2) district taxes to be levied by the district during
19-9 the 12-month period following the date of the pledge that are not
19-10 pledged to pay the principal of or interest on district bonds; or
19-11 (3) district bonds that have been authorized but not
19-12 sold.
19-13 (c) A loan for which taxes or bonds are pledged shall mature
19-14 not later than the first anniversary of the date on which the loan
19-15 is made. A loan for which district revenues are pledged shall
19-16 mature not later than the fifth anniversary of the date on which
19-17 the loan is made.
19-18 SECTION 6.10. DEPOSITORY. (a) The board shall name at
19-19 least one bank to serve as depository for district funds.
19-20 (b) District funds, other than those transmitted to a bank
19-21 for payment of bonds or obligations issued or assumed by the
19-22 district, shall be deposited as received with the depository bank
19-23 and must remain on deposit. This subsection does not limit the
19-24 power of the board to place a portion of district funds on time
19-25 deposit or to purchase certificates of deposit.
19-26 (c) Before the district deposits funds in a bank in an
19-27 amount that exceeds the maximum amount secured by the Federal
20-1 Deposit Insurance Corporation, the bank must execute a bond or
20-2 other security in an amount sufficient to secure from loss the
20-3 district funds that exceed the amount secured by the Federal
20-4 Deposit Insurance Corporation.
20-5 ARTICLE 7. BONDS
20-6 SECTION 7.01. GENERAL OBLIGATION BONDS. The board may issue
20-7 and sell bonds authorized by an election in the name and on the
20-8 faith and credit of the hospital district to:
20-9 (1) purchase, construct, acquire, repair, or renovate
20-10 buildings or improvements;
20-11 (2) equip buildings or improvements for hospital
20-12 purposes; or
20-13 (3) acquire and operate a mobile emergency medical
20-14 service.
20-15 SECTION 7.02. TAXES TO PAY BONDS. (a) At the time the
20-16 bonds are issued by the district, the board shall levy a tax.
20-17 (b) The tax must be sufficient to create an interest and
20-18 sinking fund to pay the principal of and interest on the bonds as
20-19 the bonds mature.
20-20 (c) In any year, the tax together with any other tax the
20-21 district levies may not exceed the limit approved by the voters at
20-22 the election authorizing the levy of taxes.
20-23 SECTION 7.03. BOND ELECTION. (a) The district may issue
20-24 general obligation bonds only if the bonds are authorized by a
20-25 majority of the qualified voters of the district voting at an
20-26 election called and held for that purpose under this section.
20-27 (b) The board may order a bond election. The order calling
21-1 the election must state:
21-2 (1) the nature and date of the election;
21-3 (2) the hours during which the polls will be open;
21-4 (3) the location of the polling places;
21-5 (4) the amounts of bonds to be authorized; and
21-6 (5) the maximum maturity of the bonds.
21-7 (c) Notice of a bond election shall be given as provided by
21-8 Chapter 1251, Government Code.
21-9 (d) The board shall canvass the returns and declare the
21-10 results of the election.
21-11 SECTION 7.04. REVENUE BONDS. (a) The board may issue bonds
21-12 to:
21-13 (1) purchase, construct, acquire, repair, equip, or
21-14 renovate buildings or improvements for hospital purposes;
21-15 (2) acquire sites to be used for hospital purposes; or
21-16 (3) acquire and operate a mobile emergency medical
21-17 service to assist the district in carrying out the district's
21-18 hospital purpose.
21-19 (b) The bonds must be payable from and secured by a pledge
21-20 of all or part of the revenues derived from the operation of the
21-21 district's hospital system. The bonds may be additionally secured
21-22 by a mortgage or deed of trust lien on all or part of district
21-23 property.
21-24 (c) The bonds must be issued in the manner provided by
21-25 Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
21-26 Health and Safety Code, for issuance of revenue bonds by county
21-27 hospital authorities.
22-1 SECTION 7.05. REFUNDING BONDS. (a) Refunding bonds of the
22-2 district may be issued to refund and pay off any outstanding
22-3 indebtedness the district has issued or assumed.
22-4 (b) The bonds must be issued in the manner provided by
22-5 Chapter 1207, Government Code.
22-6 SECTION 7.06. INTEREST AND MATURITY. District bonds must
22-7 mature not later than the 50th anniversary of the date of their
22-8 issuance and must bear interest at a rate not to exceed that
22-9 provided by Chapter 1204, Government Code.
22-10 SECTION 7.07. EXECUTION OF BONDS. The president of the board
22-11 shall execute the bonds in the name of the district, and the
22-12 secretary of the board shall countersign the bonds in the manner
22-13 provided by Chapter 618, Government Code.
22-14 SECTION 7.08. APPROVAL AND REGISTRATION OF BONDS. (a)
22-15 District bonds are subject to the same requirements with regard to
22-16 approval by the attorney general and registration by the
22-17 comptroller as the law provides for approval and registration of
22-18 bonds issued by counties.
22-19 (b) On approval by the attorney general and registration by
22-20 the comptroller, the bonds are incontestable for any cause.
22-21 SECTION 7.09. BONDS AS INVESTMENTS. District bonds and
22-22 indebtedness assumed by the district are legal and authorized
22-23 investments for:
22-24 (1) banks;
22-25 (2) savings banks;
22-26 (3) trust companies;
22-27 (4) savings and loan associations;
23-1 (5) insurance companies;
23-2 (6) fiduciaries;
23-3 (7) trustees;
23-4 (8) guardians; and
23-5 (9) sinking funds of municipalities, counties, school
23-6 districts, and other political subdivisions of the state and other
23-7 public funds of the state and its agencies, including the permanent
23-8 school fund.
23-9 SECTION 7.10. BONDS AS SECURITY FOR DEPOSITS. District bonds
23-10 are eligible to secure deposits of public funds of the state and of
23-11 municipalities, counties, school districts, and other political
23-12 subdivisions of the state. The bonds are lawful and sufficient
23-13 security for deposits to the extent of their value if accompanied
23-14 by all unmatured coupons.
23-15 SECTION 7.11. TAX STATUS OF BONDS. Because the district
23-16 created under this Act is a public entity performing an essential
23-17 public function, bonds issued by the district, any transaction
23-18 relating to the bonds, and profits made in the sale of the bonds
23-19 are free from taxation by the state or by any municipality, county,
23-20 special district, or other political subdivision of the state.
23-21 ARTICLE 8. TAXES
23-22 SECTION 8.01. LEVY OF TAXES. (a) The board annually may
23-23 impose property taxes in an amount not to exceed the limit approved
23-24 by the voters at the election authorizing the levy of taxes.
23-25 (b) The tax rate for all purposes may not exceed 75 cents on
23-26 each $100 valuation of all taxable property in the district.
23-27 (c) The taxes may be used to pay:
24-1 (1) the indebtedness issued or assumed by the
24-2 district; and
24-3 (2) the maintenance and operating expenses of the
24-4 district.
24-5 (d) The district may not impose taxes to pay the principal
24-6 of or interest on revenue bonds issued under this Act.
24-7 SECTION 8.02. BOARD AUTHORITY. The board may impose taxes
24-8 for the entire year in which the district is created.
24-9 SECTION 8.03. ADOPTING TAX RATE. In adopting the tax rate,
24-10 the board shall consider the income of the district from sources
24-11 other than taxation.
24-12 SECTION 8.04. TAX ASSESSMENT AND COLLECTION. (a) The Tax
24-13 Code governs the appraisal, assessment, and collection of district
24-14 taxes.
24-15 (b) The board may provide for the appointment of a tax
24-16 assessor-collector for the district or may contract for the
24-17 assessment and collection of taxes as provided by the Tax Code.
24-18 ARTICLE 9. DISSOLUTION OF DISTRICT
24-19 SECTION 9.01. DISSOLUTION ELECTION. The district may be
24-20 dissolved only if the dissolution is approved by a majority of the
24-21 qualified voters of the district voting in an election called and
24-22 held for that purpose.
24-23 SECTION 9.02. ORDERING ELECTION. (a) The board may order an
24-24 election on the question of dissolving the district and disposing
24-25 of the district's assets and obligations.
24-26 (b) The board shall order an election on the question of
24-27 dissolving the district and disposing of the district's assets and
25-1 obligations if the board receives a petition requesting an election
25-2 that is signed by a number of registered voters of the district
25-3 equal to at least 15 percent of the registered voters in the
25-4 district.
25-5 SECTION 9.03. ELECTION ORDER. The order calling the election
25-6 must state:
25-7 (1) the nature of the election, including the
25-8 proposition that is to appear on the ballot;
25-9 (2) the date of the election;
25-10 (3) the hours during which the polls will be open; and
25-11 (4) the location of the polling places.
25-12 SECTION 9.04. NOTICE. The board shall give notice of the
25-13 election by publishing a substantial copy of the election order in
25-14 a newspaper with general circulation in the district once a week
25-15 for two consecutive weeks. The first publication must appear at
25-16 least 35 days before the date set for the election.
25-17 SECTION 9.05. ELECTION DATE. (a) The election shall be held
25-18 not later than the 60th day after the date the election is ordered.
25-19 (b) Section 41.001, Election Code, does not apply to an
25-20 election ordered under this section.
25-21 SECTION 9.06. BALLOT PROPOSITION. The ballot for an election
25-22 at which the dissolution of the district is proposed shall be
25-23 printed to permit voting for or against the proposition: "The
25-24 dissolution of the West Medical District."
25-25 SECTION 9.07. CANVASSING RETURNS. (a) The board shall
25-26 canvass the returns of the election.
25-27 (b) If a majority of the votes in the election favor
26-1 dissolution, the board shall find that the district is dissolved.
26-2 (c) If a majority of the votes in the election do not favor
26-3 dissolution, the board shall continue to administer the district,
26-4 and another election on the question of dissolution may not be held
26-5 before the first anniversary of the date of the most recent
26-6 election to dissolve the district.
26-7 SECTION 9.08. DISSOLUTION PROCEDURES. (a) If a majority of
26-8 the votes in the election favor dissolution, the board shall:
26-9 (1) transfer the land, buildings, improvements,
26-10 equipment, and other assets that belong to the district to a county
26-11 or another governmental entity in the county in which the district
26-12 is located;
26-13 (2) sell the assets and liabilities to another person
26-14 or entity; or
26-15 (3) administer the property, assets, and debts until
26-16 all funds have been disposed of and all district debts have been
26-17 paid or settled.
26-18 (b) If the district transfers the land, buildings,
26-19 improvements, equipment, and other assets to a county or other
26-20 governmental entity, the county or entity assumes all debts and
26-21 obligations of the district at the time of the transfer, at which
26-22 time the district is dissolved. If the district does not transfer
26-23 the land, buildings, improvements, equipment, and other assets to a
26-24 county or other governmental entity, or sell those assets and the
26-25 liabilities to another person, the board shall administer the
26-26 property, assets, and debts of the district until all funds have
26-27 been disposed of and all district debts have been paid or settled,
27-1 at which time the district is dissolved.
27-2 (c) After the board finds that the district is dissolved,
27-3 the board shall:
27-4 (1) determine the debt owed by the district; and
27-5 (2) impose on the property included in the district's
27-6 tax rolls a tax that is in proportion of the debt to the property
27-7 value.
27-8 (d) When all outstanding debts and obligations of the
27-9 district are paid, the board shall order the secretary to return
27-10 the pro rata share of all unused tax money to each district
27-11 taxpayer.
27-12 (e) A taxpayer may request that the taxpayer's share of
27-13 surplus tax money be credited to the taxpayer's county taxes. If a
27-14 taxpayer requests the credit, the board shall direct the secretary
27-15 to transmit the funds to the county tax assessor-collector.
27-16 (f) After the district has paid all of the district's debts
27-17 and has disposed of all of the district's assets and funds as
27-18 prescribed by this section, the board shall file a written report
27-19 with the Commissioners Court of McLennan County setting forth a
27-20 summary of the board's actions in dissolving the district.
27-21 (g) Not later than the 10th day after the date it receives
27-22 the report and determines that the requirements of this section
27-23 have been fulfilled, the Commissioners Court of McLennan County
27-24 shall enter an order dissolving the district and releasing the
27-25 board from any further duty or obligation.
27-26 SECTION 9.09. SALE OR TRANSFER OF ASSETS. (a) The district
27-27 may provide for the sale or transfer of the district's assets and
28-1 liabilities to another entity or person and the district's
28-2 subsequent dissolution. The dissolution of the district and the
28-3 sale or transfer of the district's assets and liabilities to
28-4 another person or entity may not contravene a trust indenture or
28-5 bond resolution relating to the outstanding bonds of the district.
28-6 The dissolution and sale or transfer does not diminish or impair
28-7 the rights of a holder of an outstanding bond, warrant, or other
28-8 obligation of the district.
28-9 (b) The sale or transfer of the district's assets and
28-10 liabilities must satisfy the debt and bond obligations of the
28-11 district in a manner that protects the interests of the residents
28-12 of the district, including the residents' collective property
28-13 rights in the district's assets. Any grant from federal funds is
28-14 considered an obligation to be repaid in satisfaction. The
28-15 district may not transfer or dispose of the district's assets
28-16 except for due compensation unless the transfer is made to another
28-17 governmental agency that serves the district and the transferred
28-18 assets are to be used for the benefit of residents of the district.
28-19 ARTICLE 10. MISCELLANEOUS
28-20 SECTION 10.01. LIMITATION ON STATE ASSISTANCE. The state may
28-21 not become obligated for the support or maintenance of a hospital
28-22 district created under this Act, nor may the legislature make a
28-23 direct appropriation for the construction, maintenance, or
28-24 improvement of a facility of the district.
28-25 SECTION 10.02. REQUIRED PUBLICATION. Proof of publication of
28-26 the notice required in the enactment of this Act under the
28-27 provisions of Section 9, Article IX, Texas Constitution, has been
29-1 made in the manner and form provided by law pertaining to the
29-2 enactment of local and special laws, and the notice is found and
29-3 declared proper and sufficient to satisfy the requirement.
29-4 SECTION 10.03. EFFECTIVE DATE. This Act takes effect
29-5 immediately if it receives a vote of two-thirds of all the members
29-6 elected to each house, as provided by Section 39, Article III,
29-7 Texas Constitution. If this Act does not receive the vote
29-8 necessary for immediate effect, this Act takes effect September 1,
29-9 2001.