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By: Barrientos, Wentworth S.B. No. 1905
(In the Senate - Filed April 8, 2003; April 9, 2003, read
first time and referred to Committee on Intergovernmental
Relations; April 24, 2003, reported favorably by the following
vote: Yeas 4, Nays 0; April 24, 2003, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the creation, administration, and operation of and the
property tax rate imposed by certain countywide hospital districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 281.002, Health and Safety Code, is
amended by adding Subsection (c) to read as follows:
(c) A county with at least 190,000 inhabitants that has
within its boundaries a municipality that owns and operates a
hospital or hospital system for indigent or needy persons may
create a countywide hospital district and take over the hospital or
hospital system to furnish medical aid and hospital care to
indigent and needy persons residing in the district.
SECTION 2. Section 281.004, Health and Safety Code, is
amended 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 3. Section 281.021, Health and Safety Code, is
amended by adding Subsection (d) to read as follows:
(d) If a district is created under this chapter in Travis
County, the district shall be governed by a nine-member board of
hospital managers, appointed as follows:
(1) the Commissioners Court of Travis County shall
appoint four members;
(2) the Austin City Council shall appoint four
members; and
(3) the Commissioners Court of Travis County and the
Austin City Council shall jointly appoint one member.
SECTION 4. Section 281.022, Health and Safety Code, is
amended by adding Subsection (c) to read as follows:
(c) The members of a board of hospital managers appointed
under Section 281.021(d) serve staggered four-year terms, with as
near as possible to one-fourth of the members' terms expiring each
year. The terms of the members appointed under that section are as
follows:
(1) the members appointed solely by the Austin City
Council shall draw lots to determine which member serves a one-year
term, which member serves a two-year term, which member serves a
three-year term, and which member serves a four-year term;
(2) the members appointed solely by the Commissioners
Court of Travis County shall draw lots to determine which member
serves a one-year term, which member serves a two-year term, which
member serves a three-year term, and which member serves a
four-year term; and
(3) the member appointed jointly by the Austin City
Council and the Commissioners Court of Travis County serves a
four-year term.
SECTION 5. Section 281.041, Health and Safety Code, is
amended by amending Subsections (a) and (b) and adding Subsections
(e) and (f) to read as follows:
(a) Except as provided by 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.
(e) A county or municipality transferring property or funds
under this section is not required to transfer to the district:
(1) a medical facility used primarily for the
treatment of inmates of a jail or any other correctional
facilities, including juvenile justice facilities;
(2) 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 related to a
medical clinic facility on which construction has begun, but has
not been completed, by the date on which the board members have been
appointed and qualified to serve;
(4) a building and related land owned by the county or
municipality that are used for purposes related or unrelated to the
hospital or hospital system, except that:
(A) if the county or municipality retains
ownership of the building and related land, the county or
municipality shall lease the space used for hospital or hospital
system purposes to the district for an initial term of three years
unless a shorter term is otherwise agreed to by the district and the
transferring entity; or
(B) if the county or municipality transfers the
building and related land to the district, the district shall lease
to the transferring entity the space not used for hospital or
hospital system purposes for an initial term of three years unless a
shorter term is otherwise agreed to by the district and the
transferring entity;
(5) any or all of the public health services and
related facilities of the county or municipality, other than a
hospital or hospital district, unless the transfer of the public
health services or a related facility to the district is mutually
agreed to by the district and the transferring entity; or
(6) an ambulance service, emergency medical service,
search and rescue service, or medical transport service that is
owned or operated by the county or municipality, or unless the
transfer of all or part of the service and related buildings and
equipment to the district is mutually agreed to by the district and
the transferring entity.
(f) A transfer of an asset under this section, including a
federally qualified health center, that would violate federal or
state law unless a waiver or other authorization or approval is
granted by a federal or state agency may not occur until the
required waiver, authorization, or approval is obtained. A
facility designated as a federally qualified health center under 42
U.S.C. Section 1396d(l)(2)(B), as amended, may not be transferred
to the district until the district board has confirmed that the
transfer will not jeopardize the federal designation of that
facility.
SECTION 6. Section 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 7. 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.
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