1-1     By:  Sibley                                           S.B. No. 1824
 1-2           (In the Senate - Filed April 23, 2001; April 23, 2001, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; May 2, 2001, reported favorably by the following vote:
 1-5     Yeas 6, Nays 0; May 2, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the creation, administration, powers, duties,
 1-9     operation, and financing of a hospital district to be known as the
1-10     West Medical District; authorizing a tax; granting the authority to
1-11     issue and refund bonds; and granting the power of eminent domain.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13                       ARTICLE 1.  GENERAL PROVISIONS
1-14           SECTION 1.01.  DEFINITIONS.  In this Act:
1-15                 (1)  "District" means the West Medical District.
1-16                 (2)  "Board" means the board of directors of the
1-17     district.
1-18                 (3)  "Director" means a member of the board.
1-19           SECTION 1.02.  DISTRICT AUTHORIZATION.  A hospital district
1-20     to be known as the West Medical District may be created and
1-21     established and, if created, must be maintained, operated, and
1-22     financed in the manner provided by Section 9, Article IX, Texas
1-23     Constitution, and by this Act.
1-24           SECTION 1.03.  BOUNDARIES.  The boundaries of the district
1-25     are coextensive with the boundaries of the West Independent School
1-26     District in McLennan County.
1-27           SECTION 1.04.  ELECTION CODE PROVISIONS.  Section 41.001(a),
1-28     Election Code, does not apply to an election ordered under this
1-29     Act.
1-30                       ARTICLE 2.  TEMPORARY DIRECTORS
1-31           SECTION 2.01.  TEMPORARY DIRECTORS.  On the effective date of
1-32     this Act, the following persons become temporary directors of the
1-33     district:
1-34                 (1)  John Crowder;
1-35                 (2)  Roby Urbanovsky;
1-36                 (3)  Larry Sparks;
1-37                 (4)  Jeanette Karlik;
1-38                 (5)  Robby Payne;
1-39                 (6)  Tommy Muska; and
1-40                 (7)  Kirk Wines.
1-41           SECTION 2.02.  VACANCY IN OFFICE.  The directors remaining
1-42     after a vacancy in the office of a temporary director shall fill
1-43     the vacancy by appointment by majority vote.
1-44                      ARTICLE 3.  CREATION OF DISTRICT
1-45           SECTION 3.01.  CREATION ELECTION.  The district may be
1-46     created and a tax may be authorized only if the creation and the
1-47     tax are approved by a majority of the qualified voters of the
1-48     territory of the proposed district voting at an election called and
1-49     held for that purpose.
1-50           SECTION 3.02.  ORDERING ELECTION.  (a)  A majority of the
1-51     temporary directors of the district may order a creation election
1-52     to be held as prescribed by Subsection (c) of this section.
1-53           (b)  On presentation of a petition for a creation election
1-54     signed by at least 50 of the registered voters of the territory of
1-55     the proposed district, according to the most recent official list
1-56     of registered voters, the temporary directors shall order an
1-57     election to be held as prescribed by Subsection (c) of this
1-58     section.  The election shall be called not later than the 60th day
1-59     after the date the petition is presented to the district.
1-60           (c)  The election order must call for an election to be held
1-61     in the territory within the West Independent School District
1-62     boundaries in McLennan County.
1-63           SECTION 3.03.  ELECTION ORDER.  The order calling the
1-64     election must state:
 2-1                 (1)  the nature of the election, including the
 2-2     proposition that is to appear on the ballot;
 2-3                 (2)  the date of the election;
 2-4                 (3)  the hours during which the polls will be open; and
 2-5                 (4)  the location of the polling places.
 2-6           SECTION 3.04.  NOTICE.  The temporary directors shall give
 2-7     notice of the election by publishing a substantial copy of the
 2-8     election order in a newspaper of general circulation in the
 2-9     proposed district once a week for two consecutive weeks.  The first
2-10     publication must appear at least 35 days before the date set for
2-11     the election.
2-12           SECTION 3.05.  ELECTION DATE.  The election shall be held not
2-13     less than 45 days or more than 60 days after the date on which the
2-14     election is ordered.
2-15           SECTION 3.06.  BALLOT PROPOSITION.  The ballot for the
2-16     election shall be printed to permit voting for or against the
2-17     proposition:  "The creation of a hospital district to be known as
2-18     the West Medical District and the levy of annual taxes for hospital
2-19     purposes at a rate not to exceed 75 cents on each $100 valuation of
2-20     all taxable property in the district."
2-21           SECTION 3.07.  CANVASSING RETURNS.  (a)  The temporary
2-22     directors shall meet and canvass the returns of the election.
2-23           (b)  If a majority of the votes cast at the election favor
2-24     creation of the district, the temporary directors shall declare the
2-25     district created and shall enter the results in their minutes.
2-26           (c)  If the creation of the district is defeated, the
2-27     temporary directors may call and hold another creation election,
2-28     but another creation election may not be called and held before the
2-29     first anniversary of the date of the most recent creation election.
2-30           SECTION 3.08.  EXPIRATION OF ACT.  If the creation of the
2-31     district is not approved at an election held before the fifth
2-32     anniversary of the effective date of this Act, this Act expires.
2-33                     ARTICLE 4.  DISTRICT ADMINISTRATION
2-34           SECTION 4.01.  BOARD OF DIRECTORS. (a)  The district is
2-35     governed by a board of seven directors.
2-36           (b)  From the time the creation of the district is approved
2-37     until the elected directors take office, the temporary directors
2-38     serve as directors of the district.
2-39           SECTION 4.02.  INITIAL DIRECTORS ELECTION.  (a)  Directors
2-40     shall be elected at an election to be held on the first Saturday in
2-41     May following the creation of the district.
2-42           (b)  At the initial election of directors following creation
2-43     of the district, members of the board of directors shall be elected
2-44     at large on a single ballot, with the seven candidates receiving
2-45     the highest number of votes being elected as directors.  The
2-46     directors elected at the initial election shall draw lots to
2-47     determine which two directors shall serve one-year terms, which two
2-48     directors shall serve two-year terms, and which three directors
2-49     shall serve three-year terms.
2-50           SECTION 4.03.  METHOD OF ELECTION; STAGGERED TERMS; TERM OF
2-51     OFFICE; ELECTION DATE.  (a)  After the initial election of
2-52     directors following creation of the district, an election shall be
2-53     held on the first Saturday in May each year to elect the
2-54     appropriate number of successor directors.
2-55           (b)  The directors shall be elected at large.
2-56           (c)  Except as provided by Subsection (b), Section 4.02 of
2-57     this Act, each director is elected for a three-year term.
2-58           SECTION 4.04.  NOTICE OF ELECTION.  Notice of each election
2-59     of directors shall be published in a newspaper of general
2-60     circulation in the district in accordance with Chapter 4, Election
2-61     Code.
2-62           SECTION 4.05.  APPLICATION.  A person who wishes to have the
2-63     person's name printed on the ballot as a candidate for director
2-64     must file an application with the secretary of the board of
2-65     directors in accordance with Chapter 144, Election Code.
2-66           SECTION 4.06.  QUALIFICATIONS FOR OFFICE.  (a)  To be
2-67     eligible to be a candidate for or to serve as a director, a person
2-68     must be:
2-69                 (1)  a resident of the district; and
 3-1                 (2)  a qualified voter.
 3-2           (b)  An employee of the district may not serve as a director.
 3-3           SECTION 4.07.  BOND.  (a)  Before assuming the duties of the
 3-4     office, each director must execute a bond for $5,000 payable to the
 3-5     district, conditioned on the faithful performance of the person's
 3-6     duties as director.
 3-7           (b)  The bond shall be kept in the permanent records of the
 3-8     district.
 3-9           (c)  The board may pay for the director's bond with district
3-10     funds.
3-11           SECTION 4.08.  BOARD VACANCY.  A vacancy in the office of
3-12     director shall be filled for the unexpired term by appointment by
3-13     the remaining directors.
3-14           SECTION 4.09.  OFFICERS; OFFICERS' TERMS; VACANCY.  (a)  The
3-15     board shall elect from among its members a president and a vice
3-16     president.
3-17           (b)  The board shall appoint a secretary, who need not be a
3-18     director.
3-19           (c)  Each officer of the board serves for a term of one year.
3-20           (d)  The board shall fill a vacancy in a board office for the
3-21     unexpired term.
3-22           SECTION 4.10.  COMPENSATION.  (a)  Directors and officers
3-23     serve without compensation but may be reimbursed for actual
3-24     expenses incurred in the performance of official duties.
3-25           (b)  Expenses reimbursed under this section must be:
3-26                 (1)  reported in the district's minute book or other
3-27     district records; and
3-28                 (2)  approved by the board.
3-29           SECTION 4.11.  QUORUM; VOTING REQUIREMENT.  (a)  A majority
3-30     of the membership of the board constitutes a quorum for the
3-31     transaction of business.
3-32           (b)  When a quorum is present, a majority of the members of
3-33     the board voting must concur in a matter relating to the business
3-34     of the district.
3-35           SECTION 4.12.  ADMINISTRATOR AND ASSISTANT ADMINISTRATOR.
3-36     (a)  The board may appoint a qualified person as administrator of
3-37     the district and may in its discretion appoint an assistant to the
3-38     administrator.
3-39           (b)  The administrator and assistant administrator, if any,
3-40     serve at the will of the board.
3-41           (c)  The administrator and assistant administrator, if any,
3-42     are entitled to compensation as determined by the board.
3-43           (d)  The administrator shall supervise all the work and
3-44     activities of the district and shall have general direction of the
3-45     affairs of the district, subject to any limitations the board may
3-46     prescribe.
3-47           (e)  Before assuming the duties of administrator, the
3-48     administrator shall execute a bond payable to the district in an
3-49     amount not less than $5,000 as determined by the board, conditioned
3-50     on the administrator's performing the administrator's duties
3-51     required under this Act.  The board may pay for the bond with
3-52     district funds.
3-53           (f)  The board may delegate to the administrator the
3-54     authority to employ or contract with persons for the district.
3-55           SECTION 4.13.  APPOINTMENTS TO STAFF.  The board may:
3-56                 (1)  appoint to the staff any doctors the board
3-57     considers necessary for the efficient operation of the district;
3-58     and
3-59                 (2)  make temporary appointments the board considers
3-60     necessary.
3-61           SECTION 4.14.  TECHNICIANS, NURSES, AND OTHER DISTRICT
3-62     EMPLOYEES.  The district may employ or contract with technicians,
3-63     nurses, fiscal agents, accountants, architects, attorneys, and
3-64     other necessary employees.
3-65                        ARTICLE 5.  POWERS AND DUTIES
3-66           SECTION 5.01.  RESPONSIBILITY OF GOVERNMENTAL ENTITY.
3-67     (a)  On creation of the district, the West Hospital Authority may,
3-68     in the authority's sole discretion, convey or transfer to the
3-69     district:
 4-1                 (1)  title to any land, buildings, improvements, or
 4-2     equipment related to the hospital system that is owned by the West
 4-3     Hospital Authority;
 4-4                 (2)  operating funds and reserves for operating
 4-5     expenses and funds that have been budgeted by the West Hospital
 4-6     Authority to provide medical care for residents of the district for
 4-7     the remainder of the fiscal year in which the district is
 4-8     established; and
 4-9                 (3)  accounts receivable of the West Hospital Authority
4-10     for medical care provided for residents of the district.
4-11           (b)  The West Hospital Authority shall convey or transfer to
4-12     the district funds established for payment of indebtedness assumed
4-13     by the district.
4-14           (c)  Except as provided by Subsection (b) of this section,
4-15     nothing in this Act requires the West Hospital Authority to convey
4-16     or transfer any funds or interest in property to the district.
4-17           (d)  On creation of the district, McLennan County may
4-18     transfer to the district:
4-19                 (1)  any taxes levied by McLennan County for hospital
4-20     purposes for residents of the district for the year in which the
4-21     district is created; or
4-22                 (2)  any accounts receivable of McLennan County for
4-23     medical care provided for residents of the district.
4-24           SECTION 5.02.  LIMITATION ON GOVERNMENTAL ENTITY.  On or
4-25     after creation of the district, another governmental entity,
4-26     including a county or municipality, in which the district is
4-27     located may not levy taxes or issue bonds or other obligations for
4-28     hospital purposes or for providing medical care for the residents
4-29     of the district.
4-30           SECTION 5.03.  DISTRICT RESPONSIBILITIES.  (a)  On creation
4-31     of the district, the district:
4-32                 (1)  assumes full responsibility for operating hospital
4-33     facilities and for furnishing medical and hospital care for the
4-34     district's needy inhabitants;
4-35                 (2)  assumes any outstanding indebtedness incurred by a
4-36     county, municipality, or other governmental entity in which all or
4-37     part of the district is located in providing hospital care for
4-38     residents of the territory of the district before the district's
4-39     creation; and
4-40                 (3)  may operate or provide for the operation of a
4-41     mobile emergency medical service.
4-42           (b)  If part of a county, municipality, or other governmental
4-43     entity is included in the district and part is not included in the
4-44     district, the amount of indebtedness the district assumes under
4-45     Subdivision (2), Subsection (a) of this section, is the portion of
4-46     the total outstanding indebtedness of the county, municipality, or
4-47     other entity for hospital care for all residents of the county,
4-48     municipality, or other entity that the value of taxable property in
4-49     the district bears to the total value of taxable property in the
4-50     county, municipality, or other entity according to the last
4-51     preceding approved assessment rolls of the county, municipality, or
4-52     other entity before the district is confirmed.
4-53           SECTION 5.04.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The
4-54     board shall manage, control, and administer the hospital system and
4-55     the funds and resources of the district.
4-56           SECTION 5.05.  DISTRICT RULES.  The board may adopt rules
4-57     governing the operations of the hospital and hospital system and
4-58     the duties, functions, and responsibilities of district staff and
4-59     employees.
4-60           SECTION 5.06.  METHODS AND PROCEDURES.  The board may
4-61     prescribe:
4-62                 (1)  the method of making purchases and expenditures by
4-63     and for the district; and
4-64                 (2)  accounting and control procedures for the
4-65     district.
4-66           SECTION 5.07.  HOSPITAL PROPERTY, FACILITIES, EQUIPMENT, AND
4-67     SERVICES.  (a)  The board shall determine the type, number, and
4-68     location of buildings required to establish and maintain an
4-69     adequate hospital system and the type of equipment necessary for
 5-1     hospital care.
 5-2           (b)  The board has complete discretion as to the type and
 5-3     extent of services the district will offer.  The district may
 5-4     provide any services or facilities the board finds necessary for
 5-5     hospital or medical care, including:
 5-6                 (1)  emergency medical services;
 5-7                 (2)  primary care clinics;
 5-8                 (3)  outpatient clinics;
 5-9                 (4)  home health agencies;
5-10                 (5)  pharmacies;
5-11                 (6)  nursing facilities;
5-12                 (7)  assisted living facilities;
5-13                 (8)  blood banks;
5-14                 (9)  community mental health centers;
5-15                 (10)  alcohol or chemical dependency centers;
5-16                 (11)  minor emergency centers;
5-17                 (12)  research centers; or
5-18                 (13)  laboratories.
5-19           (c)  The board may:
5-20                 (1)  acquire property, facilities, and equipment for
5-21     the district for use in the hospital system;
5-22                 (2)  mortgage or pledge the property, facilities, or
5-23     equipment acquired as security for the payment of the purchase
5-24     price;
5-25                 (3)  transfer by lease to physicians, individuals,
5-26     companies, corporations, or other legal entities or acquire by
5-27     lease district hospital facilities; and
5-28                 (4)  sell or otherwise dispose of property, facilities,
5-29     or equipment.
5-30           SECTION 5.08.  CONSTRUCTION CONTRACTS.  (a)  The board may
5-31     enter into construction contracts on behalf of the district.
5-32           (b)  A contract for construction in excess of the amount
5-33     provided by Section 271.024, Local Government Code, may be made
5-34     only after competitive bidding as provided by Subchapter B, Chapter
5-35     271, Local Government Code.
5-36           (c)  Chapter 2253, Government Code, as it relates to
5-37     performance and payment bonds, applies to construction contracts
5-38     let by the district.
5-39           SECTION 5.09.  DISTRICT OPERATING AND MANAGEMENT CONTRACTS.
5-40     The board may enter into operating or management contracts relating
5-41     to hospital facilities on behalf of the district.
5-42           SECTION 5.10.  EMINENT DOMAIN.  (a)  The district may
5-43     exercise the power of eminent domain to acquire a fee simple or
5-44     other interest in property located in the territory of the district
5-45     if the property interest is necessary to the exercise of the rights
5-46     or authority conferred by this Act.
5-47           (b)  The district must exercise the power of eminent domain
5-48     in the manner provided by Chapter 21, Property Code,  but the
5-49     district is not required to deposit in the trial court money or
5-50     bond as provided by Section 21.021(a), Property Code.
5-51           (c)  In a condemnation proceeding brought by the district,
5-52     the district is not required to:
5-53                 (1)  pay in advance or give bond or other security for
5-54     costs in the trial court;
5-55                 (2)  give bond for the issuance of a temporary
5-56     restraining order or a temporary injunction; or
5-57                 (3)  give bond for costs or supersedeas on an appeal or
5-58     writ of error.
5-59           SECTION 5.11.  EXPENSES FOR MOVING FACILITIES OF RAILROADS
5-60     AND UTILITIES.  If, in exercising the power of eminent domain, the
5-61     board requires relocating, raising, lowering, rerouting, changing
5-62     the grade, or altering the construction of any railroad, highway,
5-63     pipeline, or electric transmission and electric distribution,
5-64     telegraph, or telephone lines, conduits, poles, or facilities, the
5-65     district must bear the actual cost of relocating, raising,
5-66     lowering, rerouting, changing the grade, or altering the
5-67     construction to provide comparable replacement without enhancement
5-68     of a facility, after deducting the net salvage value derived from
5-69     the old facility.
 6-1           SECTION 5.12.  INDIGENT CARE.  (a)  The district shall supply
 6-2     care and treatment without charge to a patient who resides in the
 6-3     district if the patient or relative who is legally responsible for
 6-4     the patient's support cannot pay for the care and treatment.
 6-5           (b)  The board shall determine the health care services to be
 6-6     provided to residents eligible for assistance under this section to
 6-7     fulfill the district's obligations under Section 9, Article IX,
 6-8     Texas Constitution, and Section 61.055, Health and Safety Code.
 6-9     The board may enter into a contract with another entity to fulfill
6-10     its obligations under this Act, Section 9, Article IX, Texas
6-11     Constitution, and Section 61.055, Health and Safety Code.
6-12           (c)  Not later than the first day of each operating year, the
6-13     district shall adopt an application procedure to determine
6-14     eligibility for assistance, as provided by Section 61.053, Health
6-15     and Safety Code.
6-16           (d)  The administrator of the district may have an inquiry
6-17     made into the financial circumstances of:
6-18                 (1)  a patient residing in the district and admitted to
6-19     a district facility; and
6-20                 (2)  a relative of the patient who is legally
6-21     responsible for the patient's support.
6-22           (e)  On finding that the patient or a relative of the patient
6-23     legally responsible for the patient's support can pay for all or
6-24     any part of the care and treatment provided by the district, the
6-25     administrator shall report that finding to the board, and the board
6-26     shall issue an order directing the patient or the relative to pay
6-27     the district each week a specified amount that the individual is
6-28     able to pay.
6-29           (f)  The administrator may collect money owed to the district
6-30     from the estate of the patient or from that of a relative who was
6-31     legally responsible for the patient's support in the manner
6-32     provided by law for collection of expenses in the last illness of a
6-33     deceased person.
6-34           (g)  If there is a dispute relating to an individual's
6-35     ability to pay or if the administrator has any doubt concerning the
6-36     individual's ability to pay, the board shall call witnesses, hear
6-37     and resolve the question, and issue a final order.  An appeal from
6-38     a final order of the board must be made to a district court in the
6-39     county in which the district is located, and the substantial
6-40     evidence rule applies.
6-41           SECTION 5.13.  REIMBURSEMENT FOR SERVICES.  (a)  The board
6-42     shall require reimbursement from a county, municipality, or public
6-43     hospital located outside the boundaries of the district for the
6-44     district's care and treatment of a sick, diseased, or injured
6-45     person of that county, municipality, or public hospital as provided
6-46     by Chapter 61, Health and Safety Code.
6-47           (b)  The board shall require reimbursement from the sheriff
6-48     or police chief of a county or municipality for the district's care
6-49     and treatment of a person confined in a jail facility of the county
6-50     or municipality who is not a resident of the district.
6-51           (c)  The board may contract with the state or federal
6-52     government for the state or federal government to reimburse the
6-53     district for treatment of a sick, diseased, or injured person.
6-54           SECTION 5.14.  SERVICE CONTRACTS.  The board may contract
6-55     with a municipality, county, special district, or other political
6-56     subdivision of the state or with a state or federal agency for the
6-57     district to:
6-58                 (1)  furnish a mobile emergency medical service; or
6-59                 (2)  provide for the investigatory or welfare needs of
6-60     inhabitants of the district.
6-61           SECTION 5.15.  GIFTS AND ENDOWMENTS.  On behalf of the
6-62     district, the board may accept gifts and endowments to be held in
6-63     trust for any purpose and under any direction, limitation, or
6-64     provision prescribed in writing by the donor that is consistent
6-65     with the proper management of the district.
6-66           SECTION 5.16.  AUTHORITY TO SUE AND BE SUED.  The board may
6-67     sue and be sued on behalf of the district.
6-68           SECTION 5.17.  RETIREMENT BENEFITS.  The board may provide
6-69     retirement benefits for the employees of the district by
 7-1     establishing or administering a retirement program or electing to
 7-2     participate in any statewide retirement system in which the
 7-3     district is eligible to participate.
 7-4           SECTION 5.18.  RECRUITMENT OF STAFF AND EMPLOYEES.  The board
 7-5     may spend district funds, enter into agreements, and take other
 7-6     necessary action to recruit physicians, nurses, and other persons
 7-7     to serve as medical staff members or employees of the district,
 7-8     including:
 7-9                 (1)  advertising and marketing;
7-10                 (2)  paying travel, recruitment, and relocation
7-11     expenses;
7-12                 (3)  providing a loan or scholarship to a physician or
7-13     a person currently enrolled in health care education courses at an
7-14     institution of higher education who contractually agrees to become
7-15     a district employee or medical staff member; or
7-16                 (4)  contracting with one or more full-time medical
7-17     students or other students in a health occupation, each of whom
7-18     shall be enrolled in and in good standing at an accredited medical
7-19     school, college, or university, to pay the student's tuition or
7-20     other expenses in consideration of the student's agreement to serve
7-21     as an employee or independent contractor for the district.
7-22           SECTION 5.19.  NONPROFIT CORPORATION.  The district may
7-23     sponsor and create a nonprofit corporation under the Texas
7-24     Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
7-25     Texas Civil Statutes), and may contribute funds to or solicit funds
7-26     for the corporation.  The corporation may use district funds only
7-27     to provide health care or other services the district is authorized
7-28     to provide under this Act.  The board shall establish adequate
7-29     controls to ensure that the corporation uses its funds as required
7-30     by law.  The corporation may invest corporation funds in any manner
7-31     in which the district may invest funds, including investing funds
7-32     as authorized by Chapter 2256, Government Code.
7-33                        ARTICLE 6.  DISTRICT FINANCES
7-34           SECTION 6.01.  FISCAL YEAR.  (a)  The district operates on
7-35     the fiscal year established by the board.
7-36           (b)  The fiscal year may not be changed if revenue bonds of
7-37     the district are outstanding or more than once in a 24-month
7-38     period.
7-39           SECTION 6.02.  ANNUAL AUDIT.  The board annually shall have
7-40     an audit made of the financial condition of the district.
7-41           SECTION 6.03.  DISTRICT AUDIT AND RECORDS.  The annual audit
7-42     and other district records are open to inspection during regular
7-43     business hours at the principal office of the district.
7-44           SECTION 6.04.  ANNUAL BUDGET.  (a)  The administrator of the
7-45     district shall prepare a proposed annual budget for the district.
7-46           (b)  The proposed budget must contain a complete financial
7-47     statement, including a statement of:
7-48                 (1)  the outstanding obligations of the district;
7-49                 (2)  the amount of cash on hand to the credit of each
7-50     fund of the district;
7-51                 (3)  the amount of money received by the district from
7-52     all sources during the previous year;
7-53                 (4)  the amount of money available to the district from
7-54     all sources during the ensuing year;
7-55                 (5)  the amount of the balances expected at the end of
7-56     the year in which the budget is being prepared;
7-57                 (6)  the estimated amount of revenues and balances
7-58     available to cover the proposed budget; and
7-59                 (7)  the estimated tax rate that will be required.
7-60           SECTION 6.05.  NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  The
7-61     board shall hold a public hearing on the proposed annual budget.
7-62           (b)  The board shall publish notice of the hearing in a
7-63     newspaper of general circulation in the district not later than the
7-64     10th day before the date of the hearing.
7-65           (c)  Any resident of the district is entitled to be present
7-66     and participate at the hearing.
7-67           (d)  At the conclusion of the hearing, the board shall adopt
7-68     a budget by acting on the budget proposed by the administrator.
7-69     The board may make any changes in the proposed budget that in its
 8-1     judgment the interests of the taxpayers demand.
 8-2           (e)  The budget is effective only after adoption by the
 8-3     board.
 8-4           SECTION 6.06.  AMENDING BUDGET.  After adoption, the annual
 8-5     budget may be amended on the board's approval.
 8-6           SECTION 6.07.  LIMITATION ON EXPENDITURES.  Money may not be
 8-7     spent for an expense not included in the annual budget or an
 8-8     amendment to it.
 8-9           SECTION 6.08.  SWORN STATEMENT.  As soon as practicable after
8-10     the close of the fiscal year, the administrator shall prepare for
8-11     the board a sworn statement of the amount of money that belongs to
8-12     the district and an account of the disbursements of that money.
8-13           SECTION 6.09.  BORROWING MONEY.  (a)  The district may borrow
8-14     money at a rate not to exceed the minimum annual percentage rate
8-15     allowed by law for district obligations at the time of the loan.
8-16           (b)  To secure a loan, the board may pledge:
8-17                 (1)  the revenues of the district that are not pledged
8-18     to pay the bonded indebtedness of the district;
8-19                 (2)  district taxes to be levied by the district during
8-20     the 12-month period following the date of the pledge that are not
8-21     pledged to pay the principal of or interest on district bonds; or
8-22                 (3)  district bonds that have been authorized but not
8-23     sold.
8-24           (c)  A loan for which taxes or bonds are pledged shall mature
8-25     not later than the first anniversary of the date on which the loan
8-26     is made.  A loan for which district revenues are pledged shall
8-27     mature not later than the fifth anniversary of the date on which
8-28     the loan is made.
8-29           SECTION 6.10.  DEPOSITORY.  (a)  The board shall name at
8-30     least one bank to serve as depository for district funds.
8-31           (b)  District funds, other than those transmitted to a bank
8-32     for payment of bonds or obligations issued or assumed by the
8-33     district, shall be deposited as received with the depository bank
8-34     and must remain on deposit.  This subsection does not limit the
8-35     power of the board to place a portion of district funds on time
8-36     deposit or to purchase certificates of deposit.
8-37           (c)  Before the district deposits funds in a bank in an
8-38     amount that exceeds the maximum amount secured by the Federal
8-39     Deposit Insurance Corporation, the bank must execute a bond or
8-40     other security in an amount sufficient to secure from loss the
8-41     district funds that exceed the amount secured by the Federal
8-42     Deposit Insurance Corporation.
8-43                              ARTICLE 7.  BONDS
8-44           SECTION 7.01.  GENERAL OBLIGATION BONDS.  The board may issue
8-45     and sell bonds authorized by an election in the name and on the
8-46     faith and credit of the district to:
8-47                 (1)  purchase, construct, acquire, repair, or renovate
8-48     buildings or improvements;
8-49                 (2)  equip buildings or improvements for hospital
8-50     purposes; or
8-51                 (3)  acquire and operate a mobile emergency medical
8-52     service.
8-53           SECTION 7.02.  TAXES TO PAY BONDS.  (a)  At the time the
8-54     bonds are issued by the district, the board shall levy a tax.
8-55           (b)  The tax must be sufficient to create an interest and
8-56     sinking fund to pay the principal of and interest on the bonds as
8-57     the bonds mature.
8-58           (c)  In any year, the tax together with any other tax the
8-59     district levies may not exceed the limit approved by the voters at
8-60     the election authorizing the levy of taxes.
8-61           SECTION 7.03.  BOND ELECTION.  (a)  The district may issue
8-62     general obligation bonds only if the bonds are authorized by a
8-63     majority of the qualified voters of the district voting at an
8-64     election called and held for that purpose under this section.
8-65           (b)  The board may order a bond election.  The order calling
8-66     the election must state:
8-67                 (1)  the nature and date of the election;
8-68                 (2)  the hours during which the polls will be open;
8-69                 (3)  the location of the polling places;
 9-1                 (4)  the amounts of bonds to be authorized; and
 9-2                 (5)  the maximum maturity of the bonds.
 9-3           (c)  Notice of a bond election shall be given as provided by
 9-4     Chapter 1251, Government Code.
 9-5           (d)  The board shall canvass the returns and declare the
 9-6     results of the election.
 9-7           SECTION 7.04.  REVENUE BONDS.  (a)  The board may issue bonds
 9-8     to:
 9-9                 (1)  purchase, construct, acquire, repair, equip, or
9-10     renovate buildings or improvements for hospital purposes;
9-11                 (2)  acquire sites to be used for hospital purposes; or
9-12                 (3)  acquire and operate a mobile emergency medical
9-13     service to assist the district in carrying out the district's
9-14     hospital purpose.
9-15           (b)  The bonds must be payable from and secured by a pledge
9-16     of all or part of the revenues derived from the operation of the
9-17     district's hospital system.  The bonds may be additionally secured
9-18     by a mortgage or deed of trust lien on all or part of district
9-19     property.
9-20           (c)  The bonds must be issued in the manner provided by
9-21     Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
9-22     Health and Safety Code, for issuance of revenue bonds by county
9-23     hospital authorities.
9-24           SECTION 7.05.  REFUNDING BONDS.  (a)  Refunding bonds of the
9-25     district may be issued to refund and pay off any outstanding
9-26     indebtedness the district has issued or assumed.
9-27           (b)  The bonds must be issued in the manner provided by
9-28     Chapter 1207, Government Code.
9-29           SECTION 7.06.  INTEREST AND MATURITY.  District bonds must
9-30     mature not later than the 50th anniversary of the date of their
9-31     issuance and must bear interest at a rate not to exceed that
9-32     provided by Chapter 1204, Government Code.
9-33           SECTION 7.07.  EXECUTION OF BONDS.  The president of the
9-34     board shall execute the bonds in the name of the district, and the
9-35     secretary of the board shall countersign the bonds in the manner
9-36     provided by Chapter 618, Government Code.
9-37           SECTION 7.08.  APPROVAL AND REGISTRATION OF BONDS.
9-38     (a)  District bonds are subject to the same requirements with
9-39     regard to approval by the attorney general and registration by the
9-40     comptroller as the law provides for approval and registration of
9-41     bonds issued by counties.
9-42           (b)  On approval by the attorney general and registration by
9-43     the comptroller, the bonds are incontestable for any cause.
9-44           SECTION 7.09.  BONDS AS INVESTMENTS.  District bonds and
9-45     indebtedness assumed by the district are legal and authorized
9-46     investments for:
9-47                 (1)  banks;
9-48                 (2)  savings banks;
9-49                 (3)  trust companies;
9-50                 (4)  savings and loan associations;
9-51                 (5)  insurance companies;
9-52                 (6)  fiduciaries;
9-53                 (7)  trustees;
9-54                 (8)  guardians; and
9-55                 (9)  sinking funds of municipalities, counties, school
9-56     districts, and other political subdivisions of the state and other
9-57     public funds of the state and its agencies, including the permanent
9-58     school fund.
9-59           SECTION 7.10.  BONDS AS SECURITY FOR DEPOSITS.  District
9-60     bonds are eligible to secure deposits of public funds of the state
9-61     and of municipalities, counties, school districts, and other
9-62     political subdivisions of the state.  The bonds are lawful and
9-63     sufficient security for deposits to the extent of their value if
9-64     accompanied by all unmatured coupons.
9-65           SECTION 7.11.  TAX STATUS OF BONDS.  Because the district
9-66     created under this Act is a public entity performing an essential
9-67     public function, bonds issued by the district, any transaction
9-68     relating to the bonds, and profits made in the sale of the bonds
9-69     are free from taxation by the state or by any municipality, county,
 10-1    special district, or other political subdivision of the state.
 10-2                             ARTICLE 8.  TAXES
 10-3          SECTION 8.01.  LEVY OF TAXES.  (a)  The board annually may
 10-4    impose property taxes in an amount not to exceed the limit approved
 10-5    by the voters at the election authorizing the levy of taxes.
 10-6          (b)  The tax rate for all purposes may not exceed 75 cents on
 10-7    each $100 valuation of all taxable property in the district.
 10-8          (c)  The taxes may be used to pay:
 10-9                (1)  the indebtedness issued or assumed by the
10-10    district; and
10-11                (2)  the maintenance and operating expenses of the
10-12    district.
10-13          (d)  The district may not impose taxes to pay the principal
10-14    of or interest on revenue bonds issued under this Act.
10-15          SECTION 8.02.  BOARD AUTHORITY.  The board may impose taxes
10-16    for the entire year in which the district is created.
10-17          SECTION 8.03.  ADOPTING TAX RATE.  In adopting the tax rate,
10-18    the board shall consider the income of the district from sources
10-19    other than taxation.
10-20          SECTION 8.04.  TAX ASSESSMENT AND COLLECTION.  (a)  The Tax
10-21    Code governs the appraisal, assessment, and collection of district
10-22    taxes.
10-23          (b)  The board may provide for the appointment of a tax
10-24    assessor-collector for the district or may contract for the
10-25    assessment and collection of taxes as provided by the Tax Code.
10-26                    ARTICLE 9.  DISSOLUTION OF DISTRICT
10-27          SECTION 9.01.  DISSOLUTION ELECTION. The district may be
10-28    dissolved only if the dissolution is approved by a majority of the
10-29    qualified voters of the district voting in an election called and
10-30    held for that purpose.
10-31          SECTION 9.02.  ORDERING ELECTION.  (a)  The board may order
10-32    an election on the question of dissolving the district and
10-33    disposing of the district's assets and obligations.
10-34          (b)  The board shall order an election on the question of
10-35    dissolving the district and disposing of the district's assets and
10-36    obligations if the board receives a petition requesting an election
10-37    that is signed by a number of registered voters of the district
10-38    equal to at least 15 percent of the registered voters in the
10-39    district.
10-40          SECTION 9.03.  ELECTION ORDER.  The order calling the
10-41    election must state:
10-42                (1)  the nature of the election, including the
10-43    proposition that is to appear on the ballot;
10-44                (2)  the date of the election;
10-45                (3)  the hours during which the polls will be open; and
10-46                (4)  the location of the polling places.
10-47          SECTION 9.04.  NOTICE.  The board shall give notice of the
10-48    election by publishing a substantial copy of the election order in
10-49    a newspaper with general circulation in the district once a week
10-50    for two consecutive weeks.  The first publication must appear at
10-51    least 35 days before the date set for the election.
10-52          SECTION 9.05.  ELECTION DATE.  (a)  The election shall be
10-53    held not later than the 60th day after the date the election is
10-54    ordered.
10-55          (b)  Section 41.001, Election Code, does not apply to an
10-56    election ordered under this section.
10-57          SECTION 9.06.  BALLOT PROPOSITION.  The ballot for an
10-58    election at which the dissolution of the district is proposed shall
10-59    be printed to permit voting for or against the proposition: "The
10-60    dissolution of the West Medical District."
10-61          SECTION 9.07.  CANVASSING RETURNS.  (a)  The board shall
10-62    canvass the returns of the election.
10-63          (b)  If a majority of the votes in the election favor
10-64    dissolution, the board shall find that the district is dissolved.
10-65          (c)  If a majority of the votes in the election do not favor
10-66    dissolution, the board shall continue to administer the district,
10-67    and another election on the question of dissolution may not be held
10-68    before the first anniversary of the date of the most recent
10-69    election to dissolve the district.
 11-1          SECTION 9.08.  DISSOLUTION PROCEDURES.  (a)  If a majority of
 11-2    the votes in the election favor dissolution, the board shall:
 11-3                (1)  transfer the land, buildings, improvements,
 11-4    equipment, and other assets that belong to the district to a county
 11-5    or another governmental entity in the county in which the district
 11-6    is located;
 11-7                (2)  sell the assets and liabilities to another person
 11-8    or entity; or
 11-9                (3)  administer the property, assets, and debts until
11-10    all funds have been disposed of and all district debts have been
11-11    paid or settled.
11-12          (b)  If the district transfers the land, buildings,
11-13    improvements, equipment, and other assets to a county or other
11-14    governmental entity, the county or entity assumes all debts and
11-15    obligations of the district at the time of the transfer, at which
11-16    time the district is dissolved.  If the district does not transfer
11-17    the land, buildings, improvements, equipment, and other assets to a
11-18    county or other governmental entity, or sell those assets and the
11-19    liabilities to another person, the board shall administer the
11-20    property, assets, and debts of the district until all funds have
11-21    been disposed of and all district debts have been paid or settled,
11-22    at which time the district is dissolved.
11-23          (c)  After the board finds that the district is dissolved,
11-24    the board shall:
11-25                (1)  determine the debt owed by the district; and
11-26                (2)  impose on the property included in the district's
11-27    tax rolls a tax that is in proportion of the debt to the property
11-28    value.
11-29          (d)  When all outstanding debts and obligations of the
11-30    district are paid, the board shall order the secretary to return
11-31    the pro rata share of all unused tax money to each district
11-32    taxpayer.
11-33          (e)  A taxpayer may request that the taxpayer's share of
11-34    surplus tax money be credited to the taxpayer's county taxes.  If a
11-35    taxpayer requests the credit, the board shall direct the secretary
11-36    to transmit the funds to the county tax assessor-collector.
11-37          (f)  After the district has paid all of the district's debts
11-38    and has disposed of all of the district's assets and funds as
11-39    prescribed by this section, the board shall file a written report
11-40    with the Commissioners Court of McLennan County setting forth a
11-41    summary of the board's actions in dissolving the district.
11-42          (g)  Not later than the 10th day after the date it receives
11-43    the report and determines that the requirements of this section
11-44    have been fulfilled, the Commissioners Court of McLennan County
11-45    shall enter an order dissolving the district and releasing the
11-46    board from any further duty or obligation.
11-47          SECTION 9.09.  SALE OR TRANSFER OF ASSETS.  (a)  The district
11-48    may provide for the sale or transfer of the district's assets and
11-49    liabilities to another entity or person and the district's
11-50    subsequent dissolution.  The dissolution of the district and the
11-51    sale or transfer of the district's assets and liabilities to
11-52    another person or entity may not contravene a trust indenture or
11-53    bond resolution relating to the outstanding bonds of the district.
11-54    The dissolution and sale or transfer does not diminish or impair
11-55    the rights of a holder of an outstanding bond, warrant, or other
11-56    obligation of the district.
11-57          (b)  The sale or transfer of the district's assets and
11-58    liabilities must satisfy the debt and bond obligations of the
11-59    district in a manner that protects the interests of the residents
11-60    of the district, including the residents' collective property
11-61    rights in the district's assets.  Any grant from federal funds is
11-62    considered an obligation to be repaid in satisfaction.  The
11-63    district may not transfer or dispose of the district's assets
11-64    except for due compensation unless the transfer is made to another
11-65    governmental agency that serves the district and the transferred
11-66    assets are to be used for the benefit of residents of the district.
11-67                        ARTICLE 10.  MISCELLANEOUS
11-68          SECTION 10.01.  LIMITATION ON STATE ASSISTANCE.  The state
11-69    may not become obligated for the support or maintenance of a
 12-1    hospital district created under this Act, nor may the legislature
 12-2    make a direct appropriation for the construction, maintenance, or
 12-3    improvement of a facility of the district.
 12-4          SECTION 10.02.  REQUIRED PUBLICATION.  Proof of publication
 12-5    of the notice required in the enactment of this Act under the
 12-6    provisions of Section 9, Article IX, Texas Constitution, has been
 12-7    made in the manner and form provided by law pertaining to the
 12-8    enactment of local and special laws, and the notice is found and
 12-9    declared proper and sufficient to satisfy the requirement.
12-10          SECTION 10.03.  EFFECTIVE DATE.  This Act takes effect
12-11    immediately if it receives a vote of two-thirds of all the members
12-12    elected to each house, as provided by Section 39, Article III,
12-13    Texas Constitution.  If this Act does not receive the vote
12-14    necessary for immediate effect, this Act takes effect September 1,
12-15    2001.
12-16                                 * * * * *