79R2676 KEG-F
By: Laney H.B. No. 1017
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the Lockney General Hospital
District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4, Chapter 58, Acts of the 63rd
Legislature, Regular Session, 1973, is amended to read as follows:
Sec. 4. (a) [Upon the effective date of this Act, the
Commissioners Court of Floyd County shall appoint five temporary
directors for the district. Each of the directors shall subscribe
to the constitutional oath of office. Should any of the directors
named by the court refuse to act or for any reason fail to qualify as
herein required or should a vacancy in office occur, the
commissioners court shall fill such vacancy. The terms of office of
the first three directors named by the court shall expire on the
first Tuesday in April, 1975, and the terms of the last two
directors named by the court shall expire on the first Tuesday in
April, 1974.] A regular election for directors shall be held on the
May uniform election date under Section 41.001, Election Code,
[first Tuesday in April in] each year [beginning in 1974], and
directors shall be elected at that time and in each succeeding year.
The regular election for directors shall be ordered by the board and
such order shall state the time, place, and purpose of the election.
The board shall appoint the presiding judge who shall appoint an
assistant judge and such clerks as may be required. The election
shall be ordered in accordance with Section 3.005, Election Code
[at least 15 days prior to the date on which the election is to be
held]. Any person desiring the person's [his] name to be printed on
the ballot as a candidate for director shall file an application [a
petition, signed by not less than 10 qualified voters, asking that
such name be printed on the ballot,] with the secretary of the board
of directors of the district in accordance with Chapter 144,
Election Code. [Such petition shall be filed with the secretary at
least 25 days prior to the date of election.] Notice of the
election shall be published one time in a newspaper of general
circulation in the area of the district in accordance with Section
4.003, Election Code [at least five days before the election]. All
vacancies in office[, other than for the failure of four or more of
the original directors herein appointed to qualify,] shall be
filled by a majority vote of the remaining directors and such
appointees shall hold office for the unexpired term for which they
were appointed.
(b) No director shall be entitled to compensation, but shall
be entitled to reimbursement of [receive his] actual expenses
incurred in attending to the district's business, provided such
expenses are approved by the remainder of the board. Any person who
is a resident [property-owning taxpaying] voter of the district and
who is not an employee of the district shall be eligible to hold
office as director of the district but no director may serve more
than three successive terms. The board of directors shall elect
from its number a president, vice-president, secretary, and such
other officers as in the judgment of the board are necessary. [The
president shall be the chief executive officer of the district and
shall have the same right to vote as any other director.] The
vice-president shall perform all duties and exercise all powers
conferred by this Act upon the president when the president is
absent or fails and declines to act.
(c) [The directors initially named and their successors in
office shall hold office as temporary directors until such time as
the creation of the district has been approved at an election as
herein provided or for a period of two years, whichever period is
shorter. At such time as the creation of the district is so
approved and the returns of the election officially canvassed, the
persons acting as temporary directors shall become permanent
directors whose terms shall expire as hereinabove provided.] Each
[permanent] director[, and his successors in office,] shall qualify
by executing the constitutional oath of office.
SECTION 2. Section 5, Chapter 58, Acts of the 63rd
Legislature, Regular Session, 1973, is amended to read as follows:
Sec. 5. (a) The board of directors shall manage, control,
and administer the hospital system and all funds and resources of
the district, but in no event shall any operating, depreciation, or
building fund 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 shall have
the power and authority to sue and be sued, to promulgate rules and
regulations governing the operation of the hospital, hospital
system, its staff, and its employees.
(c) The board of directors shall appoint a qualified person
to be known as the administrator or manager of the hospital district
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 such compensation as may be fixed by the
board. The administrator or manager shall, upon assuming the
administrator's or manager's [his] 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
administrator or manager [he] shall perform the duties required of
the administrator or manager [him], and containing such other
conditions as the board may require. The board of directors may pay
for the bond with district funds. 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 as may be prescribed by the board.
(d) The board of directors shall have the authority to
appoint to the staff physicians, dentists, and podiatrists as the
board determines are [such doctors as it may be deemed] necessary
for the efficient operation of the district, and may provide for
temporary appointments to the staff if warranted by circumstances.
The board may delegate to the administrator or manager the
authority to employ technicians, nurses, and employees of the
district. The board shall be authorized to 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
shall be authorized to contract with any county or incorporated
municipality located outside its boundaries for the care and
treatment of the sick, diseased, or injured persons of any such
county or municipality, and shall have the authority to contract
with the State of Texas or agencies of the federal government for
the treatment of the sick, diseased, or injured persons.
(e) The board may spend district money, enter into
agreements, and take other necessary action to recruit physicians
and other persons to serve as medical staff members or district
employees. The actions may include:
(1) advertising and marketing;
(2) paying travel, recruitment, and relocation
expenses;
(3) providing a loan or scholarship to a physician or a
person currently enrolled in health care education courses at an
institution of higher education who contracts to become a medical
staff member or district employee; or
(4) contracting with a full-time medical student or
other student in a health occupation who is enrolled in and in good
standing at an accredited medical school, college, or university to
pay the student's tuition or other expenses for the consideration
of the student agreeing to serve as an employee or independent
contractor for the district.
SECTION 3. Chapter 58, Acts of the 63rd Legislature,
Regular Session, 1973, is amended by adding Section 5A to read as
follows:
Sec. 5A. (a) The district may create and sponsor a
nonprofit corporation under the Business Organizations Code and may
contribute money to or solicit money for the corporation.
(a-1) On or before December 31, 2009, the district may
create and sponsor a nonprofit corporation under the Texas
Non-Profit Corporation Act (Article 1396-1.01, et seq., Vernon's
Texas Civil Statutes) or the Business Organizations Code, as
applicable, and may contribute money to or solicit money for the
corporation.
(b) A corporation created under this section may use money
contributed by the district only to provide health care or other
services the district is authorized to provide under this Act.
(c) The corporation may invest the corporation's money in
any manner in which the district may invest the district's money,
including investing money as authorized by Chapter 2256, Government
Code.
(d) The board shall establish controls to ensure that the
corporation uses its money as required by this section.
(e) This subsection and Subsection (a-1) expire December
31, 2009.
SECTION 4. Section 7, Chapter 58, Acts of the 63rd
Legislature, Regular Session, 1973, is amended to read as follows:
Sec. 7. The board of directors shall have the power and
authority to issue and sell general obligation bonds in the name and
upon the faith and credit of the district for the purchase,
construction, acquisition, repair, or renovation of buildings and
improvements and equipping the same for hospital purposes, and for
any or all of such purposes. At the time of the issuance of any
general obligation bonds, [except revenue bonds issued under
Section 8(b) hereof,] a tax shall be levied by the board sufficient
to create an interest and sinking fund to pay the interest on and
principal of said bonds, as same mature, providing such tax
together with any other taxes levied for said district shall not
exceed the limit approved by the voters at the election authorizing
the imposition of taxes [rate of tax voted under the provisions of
Section 3 of this Act]. General obligation bonds may not [Except as
provided in Section 8, no bonds shall] be issued by or on behalf of
the hospital district until authorized by a majority of the
qualified electors of the district. The order for the bond election
and the publication of notice for the election must be provided in
accordance with Chapter 1251, Government Code. The election [shall
specify the date of the election, the amount of bonds to be
authorized, the maximum maturity thereof, the maximum rate of
interest they are to bear, the place or places where the election
shall be held, the presiding judge and alternate judge for each
voting place, and the clerks as in county elections. Notice of any
bond election shall be published as provided in Article 704,
Revised Civil Statutes of Texas, 1925, as amended, and] shall be
conducted in accordance with the general laws of this state [Texas]
pertaining to general elections, except as modified by the
provisions of this Act[, provided, however, an election to
authorize the issuance of bonds may be held at the same time as the
election for which provision is made in Section 3 of this Act, and
in such event notice of a bond election may be given in the manner
provided in Section 3 of this Act].
SECTION 5. Section 8, Chapter 58, Acts of the 63rd
Legislature, Regular Session, 1973, is amended to read as follows:
Sec. 8. (a) Refunding bonds may be issued by the board of
directors for the purpose of refunding and paying off any
outstanding indebtedness it has issued or assumed. Such refunding
bonds may be sold and the proceeds thereof applied to the payment of
outstanding indebtedness, or may be exchanged in whole or in part
for not less than a like principal amount of such outstanding
indebtedness. If such refunding bonds are to be sold and the
proceeds thereof applied to the payment of any such outstanding
indebtedness, same shall be issued and payments made in accordance
with Chapter 1207, Government Code [the manner specified by Chapter
503, Acts of the 54th Legislature, 1955, as amended (Article 717k,
Vernon's Texas Civil Statutes)]. Refunding bonds shall not bear
interest in excess of the rate permitted by Chapter 1204,
Government Code [Chapter 784, Acts of the 61st Legislature, Regular
Session, 1969, as amended (Article 717k-3, Vernon's Texas Civil
Statutes)].
(b) The [In addition to the power to issue bonds payable
from taxes levied by the district, as contemplated by the preceding
section, the] board is [further] authorized to issue, and to refund
any previously issued, revenue bonds for purchasing, constructing,
acquiring, repairing, equipping, or renovating buildings and
improvements for hospital purposes, and for acquiring sites
therefor, such bonds to be payable from and secured by a pledge of
all or any part of the revenues of the district to be derived from
the operation of its hospital or hospitals, and such bonds may be
additionally secured by a mortgage or deed of trust lien on any part
or all of its properties. Such 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 [Sections 8, 10, 11, 12, and 13, Chapter 122, Acts of the 58th
Legislature, 1963 (Article 4494r, Vernon's Texas Civil Statutes)].
SECTION 6. Section 9, Chapter 58, Acts of the 63rd
Legislature, Regular Session, 1973, is amended to read as follows:
Sec. 9. (a) Bonds of the district must mature not later
than the 40th anniversary of the date of issuance and must bear a
rate of interest that does not exceed the amount provided by Chapter
1204, Government Code [Bonds of the district shall mature within 40
years of their date and may bear interest at a rate or rates not to
exceed that prescribed by Chapter 3, Acts of the 61st Legislature,
Regular Session, 1969, as amended (Article 717k-2, Vernon's Texas
Civil Statutes)].
(b) Bonds shall be executed in the name of the hospital
district and on [in] its behalf by the president of the board and
countersigned by the secretary of the board in the manner provided
by Chapter 618, Government Code [Chapter 204, Acts of the 57th
Legislature, Regular Session, 1961, as amended (Article 717j-1,
Vernon's Texas Civil Statutes)], and shall be subject to the same
requirements in the matter of approval by the Attorney General of
Texas and registration by the Comptroller of Public Accounts of the
State of Texas as are by law provided for approval and registration
of bonds issued by counties. Upon the approval of such bonds by the
attorney general and registration by the comptroller, the same
shall be incontestable for any cause.
SECTION 7. Section 11, Chapter 58, Acts of the 63rd
Legislature, Regular Session, 1973, is amended to read as follows:
Sec. 11. The board of directors of the district shall have
the power to prescribe the method and manner of making purchases and
expenditures by and for the district, and shall also be authorized
to prescribe all accounting and control procedures. All contracts
for construction involving an [the] expenditure in excess of the
amount provided by Section 271.024, Local Government Code, must
comply with the competitive bidding requirements as provided by
Subchapter B, Chapter 271, Local Government Code [of more than
$2,000 may be made only after advertising in the manner provided by
Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931,
as amended (Article 2368a, Vernon's Texas Civil Statutes)]. The
provisions of Chapter 2253, Government Code [Article 5160, Revised
Civil Statutes of Texas, 1925], relating to performance and payment
bonds shall apply to construction contracts let by the district.
The district may acquire equipment for use in its hospital system
and mortgage or pledge the property so acquired as security for the
payment of the purchase price, but any such contract shall provide
for the entire obligation of the district to be retired within five
years from the date of the contract. Except as permitted in the
preceding sentence and as permitted by Sections 7 and 8 of this Act,
the board may not incur any obligation payable from any revenues of
the district, taxes or otherwise, except from funds on hand or to be
on hand within the then current and following fiscal year of the
district.
SECTION 8. Section 15, Chapter 58, Acts of the 63rd
Legislature, Regular Session, 1973, is amended to read as follows:
Sec. 15. (a) The district shall have the right and power of
eminent domain for the purpose of acquiring by condemnation any and
all property of any kind and character in fee simple, or any lesser
interest therein, within the boundaries of the district necessary
to the powers, rights, and privileges conferred by this Act, in the
manner provided by the general law with respect to condemnation by
counties.
(b) The district is not required to deposit in the trial
court money or bond as provided by Section 21.021, Property Code.[,
provided that the district shall not be required to make deposits in
the registry of the trial court of the sum required by Paragraph 2
of Article 3268, Revised Civil Statutes of Texas, 1925, or to make
bond as therein provided.]
(c) In condemnation proceedings being prosecuted by the
district, the district shall not be required to pay in advance or
give bond or other security for costs in the trial court, nor to
give any bond otherwise required for the issuance of a temporary
restraining order or a temporary injunction or to give bond for
costs or for supersedeas or any appeal or writ of error.
SECTION 9. Section 16, Chapter 58, Acts of the 63rd
Legislature, Regular Session, 1973, is amended to read as follows:
Sec. 16. (a) The Tax Code governs the appraisal,
assessment, and collection of district taxes.
(b) The board 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.
[The directors shall have the authority to levy taxes for the entire
year in which the district is established as the result of the
election herein provided. All taxes of the district shall be
assessed and collected by the assessor-collector appointed by the
directors, who shall also fix the terms of his employment,
compensation, and requirement for bond to assure the faithful
performance of his duties, but in no event shall such bond be for
less than $5,000. The directors shall also annually appoint five
persons to serve as a board of equalization and shall fix their
compensation. The tax assessor and collector need not be a resident
of the district. Each member of the board shall be a resident of the
district. Members of the board and tax assessor and collector shall
have the same duties, including the obligation to execute the oath
of office, as required by county officials exercising such powers
and duties. Except as in this law provided to the contrary, all the
provisions of Title 122, Revised Civil Statutes of Texas, 1925, as
amended, shall apply to the district.]
SECTION 10. Chapter 58, Acts of the 63rd Legislature,
Regular Session, 1973, is amended by adding Section 27 to read as
follows:
Sec. 27. (a) The district may be dissolved only if the
dissolution is approved by a majority of the registered voters of
the district voting in an election held for that purpose.
(b) The board may order an election on the question of
dissolving the district and disposing of the district's assets and
obligations. The board shall order an election if the board
receives a petition requesting an election that is signed by at
least 15 percent of the registered voters in the district.
(c) An election ordered under this section shall be held not
later than the 60th day after the date the election is ordered.
Section 41.001, Election Code, does not apply to an election
ordered under this section.
(d) The order calling an election under this section must
state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(e) The board shall give notice of the election by
publishing a substantial copy of the election order in a newspaper
with general circulation in the district once a week for two
consecutive weeks. The first publication must appear not later
than the 35th day before the date set for the election.
(f) The ballot for the election must be printed to permit
voting for or against the proposition: "The dissolution of the
Lockney General Hospital District."
(g) If a majority of the votes in the election favor
dissolution, the board shall find that the district is dissolved.
If a majority of the votes in the election do not favor dissolution,
the board shall continue to administer the district, and another
election on the question of dissolution may not be held before the
first anniversary of the most recent election to dissolve the
district.
(h) If a majority of the votes in the election favor
dissolution, the board shall:
(1) transfer the land, buildings, improvements,
equipment, and other assets that belong to the district to Floyd
County or another governmental entity in Floyd County; or
(2) administer the property, assets, and debts until
all money has been disposed of and all district debts have been paid
or settled.
(i) If the district transfers the land, buildings,
improvements, equipment, and other assets to Floyd County or
another governmental entity, the county or entity assumes all debts
and obligations of the district at the time of the transfer, and the
district is dissolved.
(j) If the district does not transfer the land, buildings,
improvements, equipment, and other assets to a county or other
governmental entity, the board shall administer the property,
assets, and debts of the district until all funds have been disposed
of and all district debts have been paid or settled, at which time
the district is dissolved.
(k) After the board finds that the district is dissolved,
the board shall:
(1) determine any remaining debt owed by the district;
and
(2) impose on the property included in the district's
tax rolls a tax that is in proportion of the debt to the property
value.
(l) When all outstanding debts and obligations of the
district are paid, the board shall order the secretary to return to
each district taxpayer the taxpayer's pro rata share of all unused
tax money.
(m) A taxpayer may request that the taxpayer's share of
surplus tax money be credited to the taxpayer's county taxes. If a
taxpayer requests the credit, the board shall direct the secretary
to transmit the money to the county tax assessor-collector.
(n) After the district has paid all its debts and has
disposed of all its assets and money as prescribed by this section,
the board shall file a written report with the Commissioners Court
of Floyd County summarizing the board's actions in dissolving the
district.
(o) Not later than the 10th day after the date it receives
the report and determines that the requirements of this section
have been fulfilled, the Commissioners Court of Floyd County shall
enter an order dissolving the district and releasing the board of
directors of the district from any further duty or obligation.
SECTION 11. Sections 3 and 23, Chapter 58, Acts of the 63rd
Legislature, Regular Session, 1973, are repealed.
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, 2005.