H.B. No. 2814
AN ACT
relating to the powers and duties of the Sweeny Hospital District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2, Chapter 135, Acts of the 58th
Legislature, Regular Session, 1963, is amended to read as follows:
Sec. 2. The hospital district herein authorized to be
created, shall provide for the establishment of a hospital system
to furnish medical and hospital care to persons residing in said
hospital district by the purchase, construction, acquisition,
repair, or renovation of buildings and improvements; and the
equipping of same and the administration thereof for hospital
purposes. Such district shall assume full responsibility for
providing medical and hospital care for its needy inhabitants.
[Such hospital district shall not be created nor shall such tax
therein be authorized unless and until such creation and such taxes
are approved by a majority of the qualified property taxpaying
electors of the district voting in an election called for such
purpose. Such election may be initiated by election judges, who
shall be O. K. Hitchcock, Earl Wells, Bobby W. Brown, George
Sparkman and Roy Walby upon their own motion or upon a petition of
one hundred (100) resident qualified property taxpaying electors,
residing within the boundaries of the proposed hospital district,
to be held not less than thirty (30) days nor more than sixty (60)
days from the time said election is ordered by the election judges.
[The order calling the election shall specify the time and
place or places of holding same, the form of ballot and the
presiding judge for each voting place. At such election there shall
be submitted to the qualified property taxpaying electors the
proposition of whether or not Sweeny Hospital District shall be
created with authority to levy annual taxes at a rate not to exceed
seventy-five cents (75¢) on the One Hundred Dollar ($100) valuation
of all taxable property within such district for the purpose of
meeting the requirements of the district's bonds and its
maintenance and operating expenses, and a majority of the qualified
property taxpaying electors of the district voting in said election
in favor of the proposition shall be sufficient for its adoption.
The ballots shall have printed thereon the following:
["FOR the creation of the Sweeny Hospital District; providing
for the levy of annual taxes not to exceed seventy-five cents (75¢)
on the One Hundred Dollar ($100) valuation of all taxable property
within such District."
["AGAINST the creation of the Sweeny Hospital District;
providing for the levy of annual taxes not to exceed seventy-five
cents (75¢) on the One Hundred Dollar ($100) valuation of all
taxable property within such District."
[Notice of election shall be given by publishing a
substantial copy of the election order in a newspaper of general
circulation in Sweeny Hospital District once a week for two (2)
consecutive weeks, the first publication to appear at least
fourteen (14) days prior to the date established for the election.
[The failure of any such election shall not operate to
prohibit the calling and holding of subsequent elections for the
same purpose.]
SECTION 2. Section 3, Chapter 135, Acts of the 58th
Legislature, Regular Session, 1963, is amended to read as follows:
Sec. 3. (a) The board of directors of the district
consists of seven persons elected as provided by this section.
Directors [Within ten (10) days after such election is held the
election judges shall convene and canvass the returns of the
election, and if a majority of the qualified property taxpaying
electors voting at said election voted in favor of the proposition,
they shall so find and declare the hospital district established
and created and O. K. Hitchcock, Earl Wells, Bobby W. Brown, George
Sparkman and Roy Walby shall be the directors of the district to
serve until the first Saturday in April following the creation and
establishment of the district at which time five (5) directors
shall be elected. The three (3) directors receiving the highest
vote at such first election shall serve for two (2) years, the other
two (2) directors shall serve for one (1) year. On the effective
date of this amendment, the board of directors shall appoint two (2)
new members to the board, one (1) to serve until the first Saturday
in April, 1974, and one (1) to serve until the first Saturday in
April, 1975. Thereafter, all directors] shall serve for a period of
two (2) years and until their successor has been duly elected or
appointed and qualified. No person shall be appointed or elected as
a director [member of the board of directors of said hospital
district] unless the person [he] is a resident of the district
[thereof] and at least 18 [unless at the time of such election or
appointment he shall be more than twenty-one (21)] years of age. An
employee of the district may not serve as a director. Each
director [member of the board of directors] shall qualify by
executing the constitutional oath of office and shall execute a
good and sufficient bond for One Thousand Dollars ($1,000) payable
to said district conditioned upon the faithful performance of the
director's [his] duties, and such oaths and bonds shall be
deposited with the depository bank of the district for safekeeping.
(b) The board of directors shall organize by electing one
(1) of their number as president and one (1) of their number as
secretary. The board may elect or appoint other officers as the
board determines are necessary. The board shall prescribe the
powers and duties of any officer position created under this
subsection in addition to the positions of president and secretary.
Any four (4) members of the board of directors shall constitute a
quorum and a concurrence of four (4) shall be sufficient in all
matters pertaining to the business of the district. All vacancies
in the office of director shall be filled for the unexpired term by
appointment of the remainder of the board of directors. In the
event the number of directors shall be reduced to less than four (4)
for any reason, the remaining directors shall immediately call a
special election to fill said vacancies, and upon failure to do so a
district court may, upon application of any voter or taxpayer of the
district, issue a mandate requiring that such election be ordered
by the remaining directors.
(c) A regular election of directors shall be held on the
[first Saturday in] May uniform election date under Section 41.001,
Election Code, [of] each year. Notice [and notice] of the [such]
election shall be published in a newspaper of general circulation
in the county in accordance with Section 4.003, Election Code [one
(1) time at least ten (10) days prior to the date of election]. 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 twenty-five (25) 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 such secretary
not later than 5 p.m. of the 45th day before the date of election.]
SECTION 3. Section 5, Chapter 135, Acts of the 58th
Legislature, Regular Session, 1963, is amended to read as follows:
Sec. 5. (a) Upon the creation of such hospital district,
the board of directors shall have the power and authority and it
shall be their duty to levy on all property subject to hospital
district taxation for the benefit of the district at the same time
taxes are levied for county purposes, using the county values and
the county tax roll, a tax of not to exceed seventy-five cents (75¢)
on the One Hundred Dollar ($100) valuation of all taxable property
within the hospital district, for the purpose of: (1) paying the
interest on and creating a sinking fund for bonds which may be
issued by the hospital district for hospital purposes as herein
provided; (2) providing for the operation and maintenance of the
hospital district and hospital system; and (3) for the purpose of
making further improvements and additions to the hospital system,
and for the acquisition of necessary sites therefor, by purchase,
lease or condemnation.
(b) The Tax Code governs the appraisal, assessment, and
collection of district 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.
[Not later than October 1st of each year, the board of directors
shall levy the tax on all taxable property within the district which
is subject to taxation and shall immediately certify such tax rate
to the tax assessor and collector of the county in which the
district is located. The tax so levied shall be collected on all
property subject to hospital district taxation by the assessor and
collector of taxes for the county on the county tax values, and in
the same manner and under the same conditions as county taxes. The
assessor and collector of taxes shall charge and deduct from
payments to the hospital district the fees for assessing and
collecting the tax at the rate of not exceeding one percent (1%) of
the amounts collected as may be determined by the board of directors
but in no event in excess of Five Thousand Dollars ($5,000) for any
one (1) fiscal year. Such fees shall be deposited in the county's
general fund, and shall be reported as fees of office of the tax
assessor and collector. Interest and penalties on taxes paid to the
hospital district shall be the same as for county taxes. The
residue of tax collections, after deduction of discounts and fees
for assessing and collecting, shall be deposited in the district
depository; and such funds shall be withdrawn only as provided
herein. All other income of the hospital district shall be
deposited in like manner with the district depository.
[The board of directors shall have the authority to levy the
tax aforesaid for the entire year in which the said hospital
district is established, for the purpose of securing funds to
initiate the operation of the hospital district.]
SECTION 4. Section 6, Chapter 135, Acts of the 58th
Legislature, Regular Session, 1963, is amended to read as follows:
Sec. 6. (a) The board of directors shall have the power and
authority to issue and sell general obligation bonds [as the
obligations of such hospital district, and] in the name and upon the
faith and credit of the [such hospital] district[, bonds] 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]; provided, that a
sufficient tax shall be levied to create an interest and sinking
fund to pay the interest and principal as same matures providing
said tax together with any other taxes levied for said district
shall not exceed 75 cents on each $100 valuation [seventy-five
cents (75¢)] in any [one (1)] year.
(b) Such bonds shall be executed in the name of the hospital
district and on its behalf by the president of the board of
directors, and countersigned by the secretary of the board of
directors, and shall be subject to the same requirements in the
matter of approval thereof by the Attorney General of the State of
Texas and the registration thereof by the Comptroller of Public
Accounts of the State of Texas as are by law provided for such
approval and registration of bonds of counties of this state. Upon
the approval of such bonds by the Attorney General of Texas and
registration by the Comptroller the same shall be incontestable for
any cause.
(c) General obligation bonds may not [No bonds shall] be
issued by the [such hospital] district [(except refunding bonds)]
until authorized by a majority of the qualified voters of the
district [vote of the legally qualified property taxpaying
electors, residing in such hospital district,] voting at an
election called and held for that [such] purpose. Such election may
be ordered [called] by the board of directors in accordance with
Chapter 1251, Government Code [on its own motion, and the order
calling said election shall specify the date of the election, the
place or places where the election shall be held, the presiding
officers thereof, the purpose for which the bonds are to be issued,
the amount thereof, maximum interest rate (not to exceed six
percent (6%) per annum) and the maximum maturity date of such bonds
(not to exceed forty (40) years from their date of issuance)].
Notice of election shall be given as provided by Chapter 1251,
Government Code [by publishing a substantial copy of the order
calling the election in a newspaper of general circulation in such
county once a week for two (2) consecutive weeks prior to the date
of election, the date of the first publication being at least
fourteen (14) full days prior to the date set for the election].
The cost of such election shall be paid by the hospital district.
(d) The board of directors may issue refunding bonds in
accordance with Chapter 1207, Government Code, to refund any [The
bonds of the district may be made optional for redemption prior to
their maturity date at the discretion of the board of directors.
The district may without an election issue the bonds to refund and
pay off any validly issued and] outstanding bonds [heretofore or
hereafter] issued by the district[, provided any such refund bonds
shall bear interest at the same rate or at a lesser rate than the
bonds being refunded unless it be shown mathematically that a
savings will result in the total amount of interest to be paid].
(e) The board of directors may issue revenue bonds to
purchase, construct, acquire, repair, renovate, or equip
buildings, sites, or improvements for district purposes. The bonds
must be payable from and secured by a pledge of all or part of the
revenues derived from the operation of the district's hospital
system. Revenue bonds issued under this subsection may be
additionally secured by a mortgage or deed of trust lien on all or
part of the district property. The revenue bonds must be issued in
the manner provided by Sections 264.042, 264.043, 264.046, 264.047,
264.048, and 264.049, Health and Safety Code.
SECTION 5. Section 7, Chapter 135, Acts of the 58th
Legislature, Regular Session, 1963, is amended to read as follows:
Sec. 7. (a) The board of directors [of such district]
shall have the power to prescribe the method and manner of making
purchases and expenditures by and for such hospital district, and
also shall prescribe all accounting and control procedures; the
method of purchasing necessary supplies, materials and equipment;
and shall have the power to adopt a seal for such district; and may
employ a general manager, attorney, bookkeeper, architect, and any
other employees deemed necessary for the efficient operation of the
hospital district.
(b) All books, records, accounts, notices and minutes and
all other matters of the district and the operation of its
facilities shall, except as herein provided, be maintained at the
office of the district and there be open to public inspection at all
reasonable hours.
(c) The board of directors is specifically empowered to
adopt rules and regulations governing the operation of such
district and its facilities which rules and regulations shall
supplement but shall not contravene any of the provisions of this
Act. Such rules and regulations may, upon approval of the board of
directors, be published in booklet or pamphlet form at the expense
of the district and may be made available to any taxpayer upon
request.
(d) The board of directors may spend district funds, enter
into agreements, and take other necessary action to recruit
physicians as independent contractors to serve as medical staff
members and to recruit other persons to serve as employees of the
district, including:
(1) advertising and marketing;
(2) paying travel, recruitment, and relocation
expenses;
(3) providing a loan or scholarship to:
(A) a physician currently enrolled in health care
education courses at an institution of higher education who
contractually agrees to serve as an independent contractor on the
medical staff of the district; or
(B) a person, other than a physician, currently
enrolled in health care education courses at an institution of
higher education who contractually agrees to become a district
employee;
(4) contracting with one or more full-time medical
students each of whom must be enrolled and in good standing at an
accredited medical school, college, or university, to pay the
student's tuition or other expenses in consideration of the
student's agreement to serve as an independent contractor on the
medical staff of the district; or
(5) contracting with one or more full-time students,
other than medical students, in a health occupation each of whom
must be enrolled and in good standing at an accredited medical
school, college, or university, to pay the student's tuition or
other expenses in consideration of the student's agreement to serve
as an employee or independent contractor for the district.
SECTION 6. Chapter 135, Acts of the 58th Legislature,
Regular Session, 1963, is amended by adding Section 7A to read as
follows:
Sec. 7A. (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 7. Section 8, Chapter 135, Acts of the 58th
Legislature, Regular Session, 1963, is amended to read as follows:
Sec. 8. (a) The district operates on the fiscal year
established by the board of directors. The fiscal year may not be
changed if revenue bonds of the district are outstanding or more
than once in a 24-month period. [The fiscal year of the hospital
district authorized to be established by the provisions hereof
shall commence on October 1st of each year and end on the 30th day of
September of the following year.]
(b) The board of [district] directors shall cause an annual
independent audit to be made of the books and records of the
district[, such audit to be made covering such fiscal year, and the
same shall be filed with the Comptroller of Public Accounts of the
State of Texas and at the office of the district not later than
December 31st of each year].
(c) The board of directors shall each year cause a budget to
be prepared showing the proposed expenditures and disbursements and
the estimated receipts and collections for the following fiscal
year and shall hold a public hearing on the proposed budget after
publication of a notice of hearing in a newspaper of general
circulation in the county at least once not less than ten (10) days
prior to the date set for the hearing. Any person who is a resident
[taxpayer] of the district shall have the right to appear at the
time and place designated in the notice and be heard with reference
to any item shown in the proposed budget. The proposed budget shall
also show the amount of taxes required to be levied and collected
during such fiscal year and upon final approval of the budget, the
board of directors shall levy such tax as may be required and
certify the tax rate for such year to the county tax assessor and
collector as provided in Section 5 hereof, and it shall be the duty
of the said tax assessor and collector to assess and collect such
tax.
SECTION 8. Section 9, Chapter 135, Acts of the 58th
Legislature, Regular Session, 1963, is amended to read as follows:
Sec. 9. The [A hospital] district [organized in pursuance
of this Act] shall have the right and power of eminent domain for
the purpose of acquiring by condemnation any and all property of any
kind or character, real, personal or mixed, or any interest
therein, including outright ownership of such property in fee
simple absolute, within the boundaries of the said district,
necessary or convenient to the exercise of the rights, power,
privileges and functions conferred upon it by this Act [, in the
manner provided by General Law with respect to condemnation;
provided that the said district shall not be required to make
deposits in the registry of the trial court of the sum required by
Paragraph No. 2 in Article 3268, Vernon's Annotated Civil Statutes,
1925, or to make the bond required therein]. The district must
exercise the power of eminent domain in the manner provided by
Chapter 21, Property Code, but the district is not required to
deposit in the trial court money or a bond as provided by Section
21.021(a), Property Code. In condemnation proceedings being
prosecuted by the said district, the district shall not be required
to pay in advance or to 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
relating to a condemnation proceeding, nor to give bond for costs or
for supersedeas on any appeal or writ of error proceeding to any
Court of Civil Appeals, or to the Supreme Court.
SECTION 9. Chapter 135, Acts of the 58th Legislature,
Regular Session, 1963, is amended by adding Section 9A to read as
follows:
Sec. 9A. (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 of directors 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 a
number of registered voters of the district equal to 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 of directors 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
Sweeny Hospital District."
(g) If a majority of the votes in the election favor
dissolution, the board of directors 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 of directors shall:
(1) transfer the land, buildings, improvements,
equipment, and other assets that belong to the district to Brazoria
County or another governmental entity in Brazoria 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 Brazoria 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 of directors 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 of directors finds that the district is
dissolved, the board shall:
(1) determine any 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 of directors 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 of directors 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 of directors shall file a written report with the
Commissioners Court of Brazoria County setting forth a summary of
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 Brazoria County
shall enter an order dissolving the district and releasing the
board of directors of the district from any further duty or
obligation.
SECTION 10. Section 6a, Chapter 135, Acts of the 58th
Legislature, Regular Session, 1963, is repealed.
SECTION 11. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2814 was passed by the House on April
14, 2005, by the following vote: Yeas 140, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2814 was passed by the Senate on May
3, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor