79R6731 HLT-D
By: Hardcastle H.B. No. 3486
A BILL TO BE ENTITLED
AN ACT
relating to the Nocona Hospital District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4, Chapter 868, Acts of the 62nd
Legislature, Regular Session, 1971, is amended to read as follows:
Sec. 4. (a) The board of directors consists of seven
persons elected as provided by this section [Upon the effective
date of this Act, the following seven persons, C. S. McCall, Richard
Bailey, L. D. Thompson, Doyle Powell, Jack Mercer, Robert R. Smith,
and Tommy L. Uselton, shall be and are hereby constituted the
temporary or provisional directors of said district. Each
temporary or provisional director shall subscribe to the
constitutional oath of office].
(b) A regular election for directors shall be held annually
on the May uniform election date under Section 41.001, Election
Code. Four directors shall be elected in odd-numbered years and
three directors shall be elected in even-numbered years. Directors
are elected at large and shall serve staggered two-year terms. A
director continues to serve until a successor has been elected or
appointed and qualified [Temporary directors shall serve for a
period of two years or until the creation of the district is
confirmed at an election, whichever date shall first occur. Any
vacancy in the office of temporary director, whether by reason of a
failure to qualify or the occurring of a vacancy prior to the
confirmation of the district at the election provided, shall be
filled by appointment made by the County Judge of Montague County].
(c) [At such time as the creation of the district is
approved and the returns of the election officially canvassed, the
persons then serving as temporary directors shall become permanent
directors of the district, shall execute the constitutional oath of
office as such, and divide themselves into two classes: Class One,
three persons to serve until the first Saturday in April next
following; Class Two, four persons to serve until the first
Saturday in April of the following year. Successors shall be
elected by vote of the electors of the entire district for two-year
terms.] Notice of each regular [such] election of directors shall
be published in accordance with Section 4.003, Election Code [a
newspaper or newspapers which individually or collectively provide
general circulation in the district one time at least 30 days prior
to the date of the election]. Any person desiring to have the
person's [his] name printed on the ballot as a candidate for
director shall file an application in accordance with Chapter 144,
Election Code [a petition signed by at least ten qualified
taxpaying electors asking that such name be printed on the ballot
with the secretary of the board of directors. Such petition shall
be filed with the secretary at least 30 days prior to the date of the
election].
(d) Vacancies in office shall be filled for the unexpired
term by the remainder of the board of directors.
(e) [(d)] No person shall be appointed or elected as a
member of the [temporary or permanent] board of directors unless
the person [he] is a resident of the district[, a freeholder,] and a
qualified voter. Neither the chief executive officer
[administrator], an employee of the district, nor a member of the
medical staff of the hospital is [shall be] eligible to serve as a
director.
(f) [(e)] The board of directors[, temporary and
permanent,] shall organize by electing one of their number as
president and one of their number as vice president. A secretary,
who need not be a director, shall also be elected. Officers shall
be elected for a term of one year and vacancies shall be filled for
the unexpired term by the board of directors[, temporary or
permanent]. Any five members of the board of directors shall
constitute a quorum and a concurrence of five shall be sufficient in
all matters pertaining to the business of the district. All members
of the board of directors and officers shall serve without
compensation, but may be reimbursed for actual expenses incurred in
the performance of their official duties upon the approval of such
expenses by the board of directors and so reported in the minute
book of the district or other records of the district.
SECTION 2. Section 5, Chapter 868, Acts of the 62nd
Legislature, Regular Session, 1971, 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
[Articles 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 chief executive officer [administrator or
manager] of the hospital district and may in its discretion appoint
an assistant to the chief executive officer [administrator or
manager]. The chief executive officer [Such administrator or
manager] and assistant to the chief executive officer
[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 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 Five
Thousand Dollars ($5,000), conditioned that he shall perform the
duties required of him, and containing such other conditions as the
board may require.] The chief executive officer [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 has [shall have] the authority to
appoint to the medical staff [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.
(e) The board may delegate to the chief executive officer
[administrator or manager] the authority to employ technicians,
nurses, and employees of the district.
(f) The [Such] 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
hospitalization 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
hospitalization 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 hospital treatment of sick, diseased, or injured
persons.
SECTION 3. Section 6, Chapter 868, Acts of the 62nd
Legislature, Regular Session, 1971, is amended to read as follows:
Sec. 6. (a) The district shall be operated on the basis of a
fiscal year established by the board of directors. The board of
directors may not change the fiscal year if revenue bonds of the
district are outstanding or more than once in a 24-month period.
The board [commencing on July 1 of each year and ending on June 30 of
the following year, and it] shall cause an audit to be made of the
financial condition of the [said] district, which together with
other records of the district shall be open to inspection at the
principal office of the district.
(b) The chief executive officer [administrator or manager]
shall prepare an annual budget for approval by the board of
directors. The budget shall also contain a complete financial
statement of the district showing all outstanding obligations of
the district, the cash on hand to the credit of each and every fund
of the district, the funds received from all sources during the
previous year, the funds available from all sources during the
ensuing year, with balances expected at year end of the year in
which the budget is being prepared, and estimated revenues and
balances available to cover the proposed budget and the estimated
tax rate which will be required.
(c) A public hearing on the annual budget shall be held by
the board of directors after notice of the [such] hearing has been
published in accordance with Chapter 551, Government Code [one (1)
time at least ten (10) days before the date set therefor]. Any
resident [property taxpayer] of the district shall have the right
to be present and to be heard at the [participate in said] hearing.
At the conclusion of the hearing, the budget, as proposed by the
chief executive officer [administrator], shall be acted upon by the
board of directors. The board of directors shall have authority to
make such changes in the budget as in their judgment the law
warrants and the interest of the taxpayers demand. No expenditure
may be made for any expense not included in the annual budget or an
amendment thereto. The annual budget may be amended from time to
time as the circumstances may require, but the annual budget, and
all amendments thereto, shall be approved by the board of
directors. As soon as practicable after the close of each fiscal
year, the chief executive officer [administrator or manager] shall
prepare for the board a full sworn statement of all moneys belonging
to the district and a full account of the disbursements of same.
SECTION 4. Section 7, Chapter 868, Acts of the 62nd
Legislature, Regular Session, 1971, is amended to read as follows:
Sec. 7. (a) The board of directors shall have the power and
authority to issue and sell general obligation [its] bonds in the
name and upon the faith and credit of the [such hospital] 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.
(b) At the time of the issuance of any general obligation
bonds by the district 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 [nature], providing such tax
together with any other taxes levied for the [said] district shall
not exceed Seventy-five cents (75¢) on each One Hundred Dollars
($100) valuation of taxable property in any one year, upon all
taxable property situated within the hospital district, subject to
hospital district taxation.
(c) General obligation [No] bonds may not [shall] be issued
by the [such hospital] district [except refunding bonds] until
authorized by a majority of the voters [qualified electors] of the
district [who own taxable property therein and who have duly
rendered the same for taxation] voting at an election called for
such purpose. 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 place or places where the election
shall be held, the presiding judge and alternate judge for each
voting place and provide for clerks as in county elections. Notice
of any bond election (except one held under the provisions of
Section 8, in which instance notice shall be given as provided in
Section 3) 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.
(d) The district may issue refunding bonds in accordance
with Chapter 1207, Government Code [Refunding bonds of the district
may be issued 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 provided that, if refunding bonds are to be exchanged
for a like amount of said outstanding indebtedness, the Comptroller
of Public Accounts shall register the refunding bonds upon
cancellation of the bonds refunded, and provided further that 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 the manner specified by Article 717k,
Revised Civil Statutes of Texas, 1925, as amended].
(e) Bonds of the district shall bear interest at a rate not
to exceed the rate permitted by Chapter 1204, Government Code
[Article 717k—2, except that refunding bonds shall bear interest at
a rate not in excess of that permitted by Article 717k—3]. All
bonds shall mature within forty (40) years of their date, shall be
executed in the name of the hospital district and in its behalf by
the president of the board and countersigned by the secretary in the
manner provided by Chapter 618, Government Code [Article 717j—1,
Revised Civil Statutes of Texas, 1925, as amended], and shall be
subject to the same requirements in the manner 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 bonds [same] shall be incontestable for any
cause.
SECTION 5. Section 9, Chapter 868, Acts of the 62nd
Legislature, Regular Session, 1971, is amended to read as follows:
Sec. 9. In addition to the power to issue bonds payable from
taxes levied by the district, as contemplated by the preceding
section, the board of directors 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 and 10 through
13 of Chapter 122, Acts of the 58th Legislature, Regular Session,
1963 (codified as Article 4494r, Vernon's Texas Civil Statutes)].
SECTION 6. Section 10, Chapter 868, Acts of the 62nd
Legislature, Regular Session, 1971, is amended to read as follows:
Sec. 10. (a) The board of directors is hereby given
complete discretion as to the type of buildings (both as to number
and location) required to establish and maintain an adequate
hospital system. The hospital system may include residential
[domiciliary] care and treatment of the sick, wounded and injured,
outpatient clinic or clinics, dispensaries, nursing [geriatric
domiciliary care and treatment, convalescent] home facilities,
necessary nurses, [domiciliaries and] training centers, blood
banks, community mental health centers and research centers or
laboratories, and any other facilities deemed necessary for
hospital care by the directors.
(b) The district, through its board of directors, is further
authorized to enter into an operating or management contract with
regard to its facilities or a part thereof, or may lease all or part
of its buildings and facilities upon terms and conditions
considered to be to the best interest of its inhabitants, provided
that in no event shall any lease be for a period in excess of
twenty-five (25) years from the date entered.
(c) The district shall be empowered to sell or otherwise
dispose of any property (real or personal) or equipment of any
nature upon terms and conditions found by the board to be in the
best interest of its inhabitants.
(d) 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 shall also be
authorized to prescribe all accounting and control procedures. A
contract for construction that requires expenditures in excess of
the amount provided by Section 271.024, Local Government Code, may
be entered into only after competitive bidding as provided by
Subchapter B, Chapter 271, Local Government Code [All contracts for
construction involving the expenditure of more than Ten Thousand
Dollars ($10,000) may be made only after advertising in the manner
provided by Article 2368a, Revised Civil Statutes of Texas, 1925,
as amended]. The provisions of Chapter 2253, Government Code,
[Article 5160] 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 (5) years from
the date of the contract. Except as permitted in the preceding
sentence and as permitted by Sections 7[, 8] and 9, 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 then
current and following fiscal year of the district.
SECTION 7. Section 14, Chapter 868, Acts of the 62nd
Legislature, Regular Session, 1971, is amended to read as follows:
Sec. 14. 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
or convenient to the powers, rights, and privileges conferred by
this Act. 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
required by Section 21.021(a), Property Code[, in the manner
provided by the general law with respect to condemnation by
counties, 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,
as amended, or to make bond as therein provided]. 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 nor to give bond for costs or for supersedeas on any
appeal or writ of error.
SECTION 8. Section 15, Chapter 868, Acts of the 62nd
Legislature, Regular Session, 1971, is amended to read as follows:
Sec. 15. [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 on county tax values as
provided in Subsection (a) hereof unless the directors, by majority
vote, elect to have taxes assessed and collected by its own tax
assessor-collector under Subsection (b) hereof. Any such election
may be made prior to December 1 annually and shall govern the manner
in which taxes are thereafter assessed and collected, until changed
by a similar resolution. Hospital tax shall be levied upon all
taxable property within said district subject to hospital district
taxation.]
(a) The board of directors annually may impose property
taxes in an amount not to exceed 75 cents on each $100 valuation of
all taxable property in the district [Under this subsection,
district taxes shall be assessed and collected on county tax values
with the area of the district in the same manner as provided by law
with relation to county taxes. The Tax Assessor-Collector of the
county in which said district is situated shall be charged and
required to accomplish the assessment and collection of all taxes
levied by and on behalf of the district. The 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 (1%) of the taxes assessed and one percent
(1%) of the taxes collected, but in no event shall the amount paid
exceed Five Thousand Dollars ($5,000) in any one calendar year.
Such fees shall be deposited in the officers salary fund of the
county and reported as fees of 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 deduction 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 duties as
assessor-collector of the district; or, if in the judgment of the
district 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 shall be authorized to
act in all respects according to the laws of the State of Texas
relating to state and county taxes].
(b) The district may impose the tax to pay:
(1) the indebtedness issued or assumed by the
district; and
(2) the maintenance and operating expenses of the
district [Under this subsection, taxes shall be assessed and
collected by a tax assessor-collector appointed by the directors,
who shall also fix the term 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 Five
Thousand Dollars ($5,000). The directors shall also annually
appoint five persons to serve as a Board of Equalization and shall
fix their compensation. Each member of the board of equalization
and the tax assessor shall be residents of the district and own real
property subject to hospital district taxation, and each 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
provisions of Title 122, Revised Civil Statutes of Texas, 1925, as
amended, shall apply to the district].
(c) The Tax Code governs the appraisal, assessment, and
collection of district taxes.
(d) 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.
SECTION 9. Section 17, Chapter 868, Acts of the 62nd
Legislature, Regular Session, 1971, is amended to read as follows:
Sec. 17. The district shall provide health care and
treatment to indigent persons in accordance with policies and
procedures adopted by the board of directors [Whenever a patient
residing within the district has been admitted to the facilities
thereof, the administrator or manager may cause inquiry to be made
as to his circumstances and those of the relatives of such patient
legally liable for his support. If he finds that such patient or
said relatives are able to pay for his care and treatment in whole
or in part, an order shall be made directing such patient or said
relatives to pay to the hospital district for the care and support
of such patient a specified sum per week in proportion to their
financial ability. The administrator or manager shall have the
power and authority to collect such sums from the estate of the
patient or his relatives legally liable for his support in the
manner provided by law for collection of expenses in the last
illness of a deceased person. If the administrator or manager finds
that such patient or said relatives are not able to pay either in
whole or in part for his care and treatment in such hospital, same
shall become a charge upon the hospital district as to the amount of
the inability to pay. Should there be any dispute as to the ability
to pay or doubt in the mind of the administrator or manager, the
board of directors shall hear and determine same after calling
witnesses, and shall make such order or orders as may be proper.
Appeals from a final order of the board shall lie to the district
court. The substantial evidence rule shall apply].
SECTION 10. Chapter 868, Acts of the 62nd Legislature,
Regular Session, 1971, is amended by adding Section 19A to read as
follows:
Sec. 19A. (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
Nocona 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 Montague
County or another governmental entity in Montague 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 Montague 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 Montague County or
another 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 Montague 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 Montague 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, 8, and 22, Chapter 868, Acts of the
62nd Legislature, Regular Session, 1971, 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.