78R1578 EMT-D
By: Bivins S.B. No. 570
A BILL TO BE ENTITLED
AN ACT
relating to the Hemphill County Hospital District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4(c), Chapter 424, Acts of the 66th
Legislature, Regular Session, 1979, is amended to read as follows:
(c) At the time the creation of the district is approved and
the returns of the election are officially canvassed, the persons
then serving as temporary directors shall become permanent
directors of the district, shall take the constitutional oath of
office, and shall divide themselves into two classes, namely:
class one, two persons to serve until the first Saturday in April
following the election at which the creation of the district is
approved, and class two, three persons to serve until the first
Saturday in April of the next succeeding year. Successors shall be
elected by vote of the qualified voters of the entire district for
two-year terms. Notice of an [a director's] election of directors
shall be published one time at least 30 days before the date of the
election in a newspaper or newspapers which individually or
collectively have general circulation in the district. A [Any]
person who wishes [desiring] to have the person's [his or her] name
printed on the ballot as a candidate for director must [shall] file
an application with the secretary of the board of directors not
later than the 45th day [a petition signed by at least 10 qualified
voters residing in the district asking that his or her name be
printed on the ballot. The petition shall be filed with the
secretary at least 35 days] before the date of the election.
Subchapter C, Chapter 2, Election Code, applies to the election of
unopposed candidates for the board of directors. Vacancies in
office shall be filled for the unexpired term by the remainder of
the board of directors.
SECTION 2. Section 5, Chapter 424, Acts of the 66th
Legislature, Regular Session, 1979, is amended to read as follows:
Sec. 5. POWERS AND DUTIES. (a) The board of directors
shall manage, control, and administer the hospital system and
ancillary health care system and all funds and resources of the
district, but in no event shall any operating, depreciation, or
building reserves be invested in any funds or securities other than
those specified in Subchapter A, Chapter 2256, Government Code
[Article 836 or 837, Revised Civil Statutes of Texas, 1925, as
amended].
(b) The district, through its board of directors, may sue
and be sued and may adopt [promulgate] rules governing the
operation of the district, the hospital system and ancillary health
care system, its staff, and its employees.
(c) The board of directors shall appoint a qualified person
to serve as administrator or manager of the hospital system and
ancillary health care system and may, in its discretion, appoint an
assistant to the administrator or manager. The administrator or
manager, and assistant administrator or manager, if any, shall
serve at the will of the board and shall receive compensation fixed
by the board. The administrator or manager shall, on assuming the
person's [his or her] duties, execute a bond payable to the hospital
district in an amount to be set by the board of directors, in no
event less than $5,000, conditioned that the person [he or she]
shall perform the duties required of the person [him or her], and
containing other conditions the board may require. The
administrator or manager shall supervise all the work and
activities of the district and shall have general direction of the
affairs of the district, subject to the limitations prescribed by
the board.
(d) The board of directors may appoint to the staff doctors
it considers [deems] necessary for the efficient operation of the
hospital system and ancillary health care system and may provide
for temporary appointments to the staff if warranted by
circumstances.
(e) The board of directors may delegate to the administrator
or manager the authority to employ technicians, nurses, and other
employees of the hospital system and ancillary health care system
and the district.
(f) The board of directors may contract with any other
political subdivision or governmental agency whereby the district
will provide investigatory or other services as to the medical,
hospital, or welfare needs of the inhabitants of the district and
may contract with any county, incorporated city or town, the State
of Texas, or agencies of the federal government for the treatment of
sick, diseased, or injured persons.
SECTION 3. Section 6, Chapter 424, Acts of the 66th
Legislature, Regular Session, 1979, is amended to read as follows:
Sec. 6. BUDGET AND ANNUAL AUDIT. (a) The district shall be
operated on the basis of a fiscal year established by the board of
directors, provided the fiscal year may not be changed more than
once in any 24–month period.
(b) As soon as practicable after the end of each district
fiscal year, the [The] board of directors shall have an annual audit
made of the finances [financial condition] of the district which,
together with other records of the district, shall be open to
inspection at the principal office of the district. The board shall
select a qualified independent accounting firm to perform the
audit. The audit must contain a detailed accounting of
disbursements.
(c) The administrator or manager shall prepare an annual
budget for approval by the board of directors.
(d) The budget shall also contain a complete financial
statement of the district showing:
(1) all outstanding obligations of the district;
(2) [,] the cash on hand to the credit of each fund of
the district;
(3) [,] the funds received from all sources during the
previous year;
(4) [,] the funds available from all sources during
the ensuing year;
(5) [,] the balances expected at year end of the year
in which the budget is being prepared;
(6) [,] estimated revenues and balances available to
cover the proposed budget; [,] and
(7) the estimated tax rate that will be required.
(e) A public hearing on the annual budget shall be held by
the board of directors after notice of a hearing has been published
in a newspaper of general circulation in the district one time at
least 10 days before the date set for the hearing. Any person
residing in the district may be present and participate in the
hearing. At the conclusion of the hearing, the budget, as proposed
by the administrator or manager, shall be acted on by the board of
directors.
(f) The board of directors may make changes in the budget
which in their judgment the law warrants and the interest of the
taxpayers demands. No expenditure may be made for any expense not
included in the annual budget or an amendment to it. The annual
budget may be amended from time to time as circumstances require,
but the annual budget and all amendments to it shall be approved by
the board of directors. [As soon as practicable after the close of
each fiscal year, the administrator or manager shall prepare for
the board a full sworn statement of all money belonging to the
district and a full account of disbursements.]
SECTION 4. Chapter 424, Acts of the 66th Legislature,
Regular Session, 1979, is amended by adding Section 6A to read as
follows:
Sec. 6A. EMERGENCY ACTION. (a) In an emergency, the
administrator or manager may take any lawful action necessary to
preserve district assets or protect patient health and safety.
(b) As soon as practicable after any action is taken, the
administrator or manager shall report the emergency action to the
board of directors, and the board shall amend the annual budget to
reflect the costs of the action, if any.
SECTION 5. Section 7(a), Chapter 424, Acts of the 66th
Legislature, Regular Session, 1979, is amended to read as follows:
(a) The board of directors may issue and sell its bonds in
the name and on the faith and credit of the hospital district for
the purchase, construction, acquisition, repair, and renovation of
buildings and improvements, and equipping them for hospital and
ancillary health care purposes. At the time of the issuance of any
bonds by the district, the board shall levy a tax sufficient to
create an interest and sinking fund to pay the interest on and
principal of the bonds as they mature, providing the tax together
with any other taxes levied for the district may not exceed 75 cents
on each $100 valuation of all taxable property located in the
district subject to hospital district taxation in any one year. No
bonds payable from taxes may be issued by the hospital district
except refunding bonds until authorized by a majority of the
electors of the district. The order for a bond election shall
specify the date of the election, the amount of bonds to be
authorized, the maximum maturity of the bonds, the place or places
where the election will be held, and the presiding judge and
alternate judge for each voting place, and shall provide for clerks
as in county elections. Notice of a bond election shall be given by
publishing a substantial copy of the election order in a newspaper
of general circulation in the district once a week for two
consecutive weeks, the date of the first publication to appear at
least 30 days before the date set for the election, and the bond
election shall be conducted in accordance with the Texas Election
Code, as amended, except as modified by the provisions of this Act.
SECTION 6. Section 8, Chapter 424, Acts of the 66th
Legislature, Regular Session, 1979, is amended to read as follows:
Sec. 8. REVENUE BONDS. In addition to the power to issue
bonds payable from taxes levied by the district, as contemplated by
Section 7 of this Act, the board of directors may issue and refund
any previously issued revenue bonds for purchasing, constructing,
acquiring, repairing, equipping, or renovating buildings and
improvements for hospital and ancillary health care purposes, and
for acquiring sites for hospital and ancillary health care
purposes, the bonds to be payable from and secured by a pledge of
all or part of the revenues of the district to be derived from the
operation of its hospital, [or] hospital system, or ancillary
health care system, and the bonds may be additionally secured by a
mortgage or deed of trust lien on any part or all of its property.
The bonds shall be issued in the manner and in accordance with the
procedures and requirements specified for the issuance of revenue
bonds by county hospital authorities in Sections 264.042, 264.043,
and 264.046-264.049, Health and Safety Code [8 and 10 through 13 of
Chapter 122, Acts of the 58th Legislature, Regular Session, 1963,
as amended (Article 4494r, Vernon's Texas Civil Statutes)].
SECTION 7. Section 9, Chapter 424, Acts of the 66th
Legislature, Regular Session, 1979, is amended to read as follows:
Sec. 9. REFUNDING BONDS. Without an election the board of
directors may issue refunding bonds of the district payable from
taxes or revenues for the purpose of refunding any outstanding
legal indebtedness the district has issued, incurred, or assumed.
The refunding bonds may be sold and the proceeds applied to the
payment of outstanding indebtedness or may be exchanged in whole or
in part for not less than the principal amount of the outstanding
indebtedness being refunded. Refunding bonds shall be issued in
conformity with Chapter 1207, Government Code [503, Acts of the
54th Legislature, Regular Session, 1955, as amended (Article 717k,
Vernon's Texas Civil Statutes), or Chapter 784, Acts of the 61st
Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas
Civil Statutes)], or any other general law of the state authorizing
refunding bonds and applicable to hospital districts.
SECTION 8. Section 10, Chapter 424, Acts of the 66th
Legislature, Regular Session, 1979, is amended to read as follows:
Sec. 10. BOND REQUIREMENTS. Bonds of the district payable
from taxes or revenues must:
(1) [shall] mature not later than the 40th anniversary
[within 40 years] of the [their] date of issuance;
(2) [,] be executed in the name of the hospital
district and on the district's [in its] behalf by the president of
the board of directors, and [be] countersigned by the secretary in
the manner provided by Chapter 618, Government Code;
(3) [204, Acts of the 57th Legislature, Regular
Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil
Statutes), shall] bear interest at a rate not to exceed that
prescribed by Chapter 1204, Government Code; and
(4) [3, Acts of the 61st Legislature, Regular Session,
1969, as amended (Article 717k-2, Vernon's Texas Civil Statutes),
and shall] be subject to the [same] requirements of Chapter 1202,
Government Code [in the manner of approval by the attorney general
and registration by the comptroller of public accounts as are by law
provided for approval and registration of bonds issued by counties.
On the approval of the bonds by the attorney general and
registration by the comptroller, they shall be incontestable for
any cause].
SECTION 9. Section 11, Chapter 424, Acts of the 66th
Legislature, Regular Session, 1979, is amended to read as follows:
Sec. 11. DISTRICT PROPERTY. (a) The board of directors has
complete discretion [as] to determine the type, number, and
location, either inside or outside the district, of facilities and
services [buildings] required to establish and maintain an adequate
hospital system and ancillary health care system. The hospital
system and ancillary health care system may include equipment,
facilities, and services considered [deemed] necessary for
hospital care and ancillary health care by the directors, including
domiciliary care and treatment of sick or injured patients,
geriatric services, outpatient clinics, rural health clinics,
convalescent home facilities, physician's offices, home health
services, long-term care, skilled nursing care, intermediate
nursing care, assisted living facilities, hospice care, ambulatory
surgery centers, urgent care facilities, and operation of a mobile
emergency medical service.
(b) The board of directors may enter into an operating or
management contract with one or more public or private entities
with regard to all or part of district [its] facilities and
services. The board, on behalf of the district, may enter into a
joint ownership arrangement with a public or private entity to
provide management or operating services if the board determines
that the joint ownership arrangement is in the district's best
interests and does not violate Article III, Section 52, Texas
Constitution [or a part of them, or may lease all or part of the
buildings, facilities, and other property owned by it on terms and
conditions considered to be in the best interest of its
inhabitants, provided that any lease may not be for a period longer
than 40 years from the date entered].
(c) The board of directors, on behalf of the district, may
lease or sell or otherwise dispose of all or part of the district's
property of any nature, including the district's hospital,
ancillary health care facilities or other facilities, buildings,
supplies, or equipment, to a public or private entity [property or
equipment of any nature] on terms and conditions found by the board
to be in the best interest of its inhabitants.
(d) [(b)] The board of directors of the district may
prescribe the method of making purchases and expenditures by and
for the hospital district and prescribe all accounting and control
procedures. All contracts for construction shall be made [or
purchase involving the expenditure of more than $5,000 may be made
only after advertising] in the manner provided by Subchapter B,
Chapter 271, Local Government Code [Chapter 163, General Laws, Acts
of the 42nd Legislature, Regular Session, 1931, as amended (Article
2368a, Vernon's Texas Civil Statutes). The provisions of Article
5160, Revised Civil Statutes of Texas, 1925, as amended, relating
to performance and payment bonds shall apply to construction
contracts let by the district].
(e) The board of directors, on behalf of the district, may
acquire by lease, purchase, or lease to purchase property,
facilities, supplies, and equipment for the district for use in the
[its] hospital system and ancillary health care system and may
mortgage or pledge the property, facilities, supplies, or equipment
[so] acquired as security for the payment of the purchase price.
Except as permitted in the preceding sentence and Sections 7, 8, and
9 of this Act, the district may incur no obligation payable from any
revenues of the district, tax or otherwise, except those on hand or
to be on hand within the current and following fiscal year of the
district.
SECTION 10. Section 16, Chapter 424, Acts of the 66th
Legislature, Regular Session, 1979, is amended to read as follows:
Sec. 16. TAX ASSESSMENT AND COLLECTION. (a) The directors
may levy taxes for the entire year in which the district is
established as a result of the election provided in this Act. [All
taxes of the district shall be assessed and collected on county tax
values as provided in Subsection (b) of this section unless the
directors, by majority vote, elect to have taxes assessed and
collected by the district's own tax assessor-collector under
Subsection (c) of this section. A determination by the board of
directors pertaining to the assessment and collection of taxes
shall be made before December 1 annually and shall govern the manner
in which taxes are subsequently assessed and collected, until
changed by a similar action by the board.] Hospital taxes shall be
levied on all taxable property within the district subject to
hospital district taxation.
(b) The Tax Code governs the appraisal, assessment, and
collection of district taxes [Under this subsection, district taxes
shall be assessed and collected on county tax values in the same
manner as provided by law with relation to county taxes. The tax
assessor-collector of the county in which the district is located
shall be charged with and required to accomplish the assessment and
collection of all taxes levied by and on behalf of the district.
The county assessor-collector of taxes shall charge and deduct from
payments to the hospital district an amount as fees for assessing
and collecting the taxes at a rate of one percent of the taxes
assessed and one percent of the taxes collected, but in no event
shall the amount paid exceed $5,000 in any one calendar year. These
fees shall be deposited in the officers salary fund of the county
and reported as fees of the office of the county tax
assessor-collector. Interest and penalties on taxes paid to the
hospital district shall be the same as in the case of county taxes.
Discounts shall be the same as allowed by the county. The residue
of tax collections after deductions of discounts and fees for
assessing and collecting shall be deposited in the district's
depository. The bond of the county tax assessor-collector shall
stand as security for the proper performance of his or her duties as
assessor-collector of the district, or if in the judgment of the
board of directors it is necessary, additional bond payable to the
district may be required. In all matters pertaining to the
assessment, collection, and enforcement of taxes for the district,
the county tax assessor-collector may act in all respects according
to the laws of the State of Texas relating to state and county
taxes].
(c) The board of directors may provide for the appointment
of a tax assessor-collector for the district or may contract for the
assessment and collection of taxes as provided by the Tax Code
[Under this subsection, taxes shall be assessed and collected by a
tax assessor-collector appointed by the board, which shall also fix
the term of his or her employment, compensation, and requirement
for bond to assure the faithful performance of his or her duties,
but in no event may the bond be for less than $5,000. The directors
shall annually appoint five persons to serve as a board of
equalization and shall fix their compensation. Each member of the
board and the tax assessor-collector must be residents of the
district, and each shall have the same duties, including the
obligation to take the oath of office, as required by county
officials exercising those powers and duties. Except as provided
in this law to the contrary, all the provisions of Title 122,
Revised Civil Statutes of Texas, 1925, as amended, shall apply to
the district].
SECTION 11. Section 18, Chapter 424, Acts of the 66th
Legislature, Regular Session, 1979, is amended to read as follows:
Sec. 18. INDIGENT CARE. (a) Not later than the first day
of each operating year, the district shall adopt an application
procedure to determine eligibility for assistance, as provided by
Section 61.053, Health and Safety Code.
(b) Whenever a patient residing in the district has been
admitted to the facilities of the district, the administrator or
manager may have an inquiry made as to the patient's [his or her]
circumstances and those of the relatives of the patient legally
liable for the patient's [his or her] support. If the administrator
or manager [he or she] finds that the patient or the patient's [his
or her] relatives are able to pay for the patient's [his or] care
and treatment wholly or partly [in whole or in part], an order shall
be made directing the patient or the patient's [his or her]
relatives to pay to the hospital district for the care and support
of the patient a specified sum per week in proportion to their
financial ability.
(c) The administrator or manager may collect money owed to
the district [shall have the power and authority to collect these
sums] from the estate of the patient or from the patient's [his or
her] relatives legally liable for the patient's [his or her]
support in the manner provided by law for collection of expenses in
the last illness of a deceased person.
(d) If the administrator or manager finds that the patient
or the patient's [his or her] relatives are not able to pay either
wholly or partly [in whole or in part] for the patient's [his or
her] care and treatment in the hospital, they shall become a charge
on the hospital district as to the amount of the inability to pay.
(e) If [Should] there is [be] a dispute as to the ability to
pay or doubt in the mind of the administrator or manager, the board
of directors shall hear and resolve the dispute and issue its final
order after calling witnesses.
(f) Appeals from a final order of the board of directors
must be made [shall lie] to the district court. The substantial
evidence rule shall apply.
SECTION 12. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2003.