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By: Barrientos S.B. No. 1791
A BILL TO BE ENTITLED
AN ACT
relating to the property tax rate levied by a hospital district, the
appointment of boards of directors of certain hospital districts,
and the transfer of municipal and county hospital property and
funds and related obligations to a hospital district.
SECTION 1 Sec. 281.004, Health and Safety Code, is amended
by to read as follows:
Sec. 281.004. BALLOT PROPOSITIONS. (a) Except as provided
by Subsection (b), the ballot for an election under this chapter
shall be printed to provide for voting for or against the
proposition: "The creation of a hospital district and the levy of a
tax not to exceed _________ (insert the amount prescribed by the
petition, not to exceed 75 cents) on each $100 of the taxable value
of property taxable by the district."
(b) If the county or a municipality in the county has any
outstanding bonds issued for hospital purposes, the ballot for an
election under this chapter shall be printed to provide for voting
for or against the proposition: "The creation of a hospital
district, the levy of a tax not to exceed _________ (insert the
amount prescribed by the petition, not to exceed 75 cents) on each
$100 of the taxable value of property taxable by the district, and
the assumption by the district of all outstanding bonds previously
issued for hospital purposes by ____________ County and by any
municipality in the county."
SECTION 2. Sec. 281.021, Health and Safety Code, is amended
by adding Subsection (d) to read as follows:
(d) If prescribed by the petition presented under Section
281.003, the commissioners court of a county with a population of
more than 650,000 in which a district is created under this chapter
shall appoint four directors of a nine-member board, the governing
body of the principal municipality in the county shall appoint four
directors of a nine-member board, and the commissioners court and
the principal municipality governing body shall jointly appoint one
director of a nine-member board.
SECTION 3. Sec. 281.022, Health and Safety Code, is amended
by adding Subsection (c) to read as follows:
(c) The members of a board appointed under Section
281.021(d) shall serve staggered four-year terms, with as near as
possible to one-fourth of the directors' terms expiring each year
equally divided among the appointing authorities. The initial
directors appointed under Section 281.021(d) shall draw lots to
determine which director serves for one-, two-, three- and
four-year terms.
SECTION 4. Sec. 281.041, Health and Safety Code, is amended
to read as follows:
Sec. 281.041. TRANSFER OF COUNTY AND MUNICIPAL HOSPITAL
PROPERTY AND FUNDS. (a) Except as provided in Subsection (e), on
[On] the creation of a district under this chapter and the
appointment and qualification of the district board, the county
owning the hospital or hospital system, [or] the county and
municipality jointly operating a hospital or hospital system, or
the municipality owning or operating a hospital or hospital system
shall execute and deliver to the district board a written
instrument conveying to the district the title to land, buildings,
and equipment jointly or separately owned by the county and
municipality and used to provide medical services or hospital care,
including geriatric care, to indigent or needy persons of the
county or municipality.
(b) On the creation of a district under this chapter and the
appointment and qualification of the district board, the county
owning the hospital or hospital system, [or] the county and
municipality jointly operating a hospital or hospital system, or
the municipality owning or operating a hospital or hospital system
shall, on the receipt of a certificate executed by the board's
chairman stating that a depository for the district has been chosen
and qualified, transfer to the district:
(1) all joint or separate county and municipal funds
that are the proceeds of any bonds assumed by the district under
Section 281.044; and
(2) all unexpended joint or separate county and
municipal funds that have been established or appropriated by the
county or municipality to support and maintain the hospital
facilities for the year in which the district is created, to be used
by the district to operate and maintain those facilities for the
remainder of the year.
(c) Funds transferred to the district under this section may
be used only for a purpose for which the county or the municipality
that transferred the funds could lawfully have used the funds if the
funds had remained the property and funds of the county or
municipality.
(d) On the creation of the district, the board of managers
of the county or municipal hospital system shall continue to manage
and control the property and affairs of that system until the board
of the district is appointed and organized. At that time, the
county or municipal board of managers shall transfer to the
district board all county and municipal hospital system records,
property, and affairs and shall cease to exist.
(e) No county or municipality transferring property or
funds under this section is required to transfer to the district:
(1) any medical facilities used primarily for the
treatment of inmates of a jail or other correctional facilities,
including juvenile justice facilities;
(2) any property owned by the municipality that is
used in connection with the provision of utility services
(including electricity, water, wastewater, and sewer services);
(3) any real property or other assets relating to
medical clinic facilities on which construction has begun but is
not complete on the date on which the directors have qualified;
(4) any building and related land owned by the county
or municipality used for purposes both related and unrelated to the
hospital or hospital system, except that:
(A) if the county or municipality retains
ownership of the building and related land, it shall lease the
hospital-related space in the building to the District for an
initial term of three years unless a shorter term is mutually agreed
to by all parties; or
(B) if the county or municipality transfers
ownership of the building and related land to the district, the
district shall lease the non-hospital-related space in the building
to the county or municipality for an initial term of three years
unless a shorter term is mutually agreed to by all parties;
(5) any assets the transfer of which would violate
federal or state law unless the consent of the appropriate agency is
obtained, including centers designated as "Federally Qualified
Health Center" without appropriate approvals that the transfer of
the center to the district would not jeopardize the federal
designation;
(6) any facilities related to public health functions
other than a hospital or hospital district, except that a county or
municipality may transfer the facilities and their related
functions to the district by mutual agreement;
(7) any ambulance services, emergency medical
services, search and rescue services, or medical transport services
owned or operated by the county or municipality, except that a
county or municipality owning or operating such services may
transfer all or part of those services and their related buildings
and equipment to the district as determined by mutual agreement
SECTION 5. Sec. 281.043, Health and Safety Code, is amended
to read as follows:
Sec. 281.043. ASSUMPTION OF CONTRACT OBLIGATIONS. On the
creation of the district, the district assumes, without prejudice
to the rights of third parties, any outstanding contract
obligations legally incurred by the county or municipality, or
both, for the construction, support, [or] maintenance or operation
of hospital facilities and the provision of health care services or
hospital care, including mental health care, to indigent residents
of the county or municipality before the creation of the district.
SECTION 6. 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.