By: Duncan S.B. No. 1754
A BILL TO BE ENTITLED
AN ACT
relating to the Childress County Hospital District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4, Chapter 647, Acts of the 59th
Legislature, Regular Session, 1965, is amended to read as follows:
Sec. 4. (a) The [Within ten (10) days after such election
is held, the Commissioners Court of said County shall convene and
canvass the returns thereof, and in the event such election results
favorably to the proposition specified in Section 3 hereof, such]
District is [shall be] governed by a Board of Directors composed [to
consist] of seven (7) members elected as provided by this Act. The
Directors serve staggered terms of [Upon creation of the District
as above-provided, the Commissioners Court shall appoint seven (7)
persons as Directors to serve until the first Saturday in April of
the calendar year following the creation of the District, at which
time seven Directors shall be elected from the County at large. The
four (4) Directors receiving the highest number of votes shall
serve for two years, the remaining three (3) shall serve for one
year. Thereafter, the term of all Directors shall be] two years.
Three Directors shall be elected in even-numbered years and four
Directors shall be elected in odd-numbered years. Directors are
elected at large.
(b) A regular election for Directors shall be held on the
May uniform election date under Section 41.001, Election Code,
[first Saturday in April of] each year [and shall be ordered by the
Board]. [Such order shall state the time, place and purpose of the
election, and the Board shall appoint the presiding judge, who
shall appoint an assistant judge and such clerks as may be required,
and such election shall be ordered at least fifteen (15) days prior
to the date on which it is to be held. Any person desiring his name
to be printed on the ballot as a candidate for Director shall file a
petition signed by not less than fifteen (15) qualified voters
asking that such name be printed on the ballot, with the secretary
of the Board of Directors of the District. Such petition shall be
filed with the secretary at least twenty-five (25) days prior to the
date of election. Notice of such election shall be published one
(1) time in a newspaper of general circulation in the area of the
District at least five (5) days before the election.] All vacancies
in office [(other than for the failure of an original Director
herein appointed to qualify)] shall be filled by a majority vote of
the remaining Directors, and such appointees shall hold office for
the unexpired terms for which they were appointed.
(c) A [No] Director is not [shall be] entitled to
compensation, but is [shall be] entitled to reimbursement for
[receive his] actual expenses incurred in attending to the
District's business, provided that the [such] expenses are reported
in the District's minute book or other District records and
approved by the remainder of the Board.
(d) Any person who is a resident of the District and a
qualified [property owning taxpaying] voter [of the District] shall
be eligible to hold office as Director of the District, except that
an employee of the District may not serve as a Director.
(e) The Board of Directors shall elect from its number a
president and[,] vice president and shall appoint a[,] secretary
who is not required to be a Director[, and such other officers as in
the judgment of the Board are necessary]. The president has [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.
(f) Any four members of the Board shall constitute a quorum
and the concurrence of four Directors shall be sufficient in all
matters pertaining to the business of the District. The Board shall
require the keeping of a true account of all its meetings and
proceedings and shall preserve all contracts, records, notices,
duplicate vouchers, duplicate receipts, and all accounts and
records of the District at its principal office, where same shall be
open to public inspection at all reasonable times.
SECTION 2. Section 5, Chapter 647, Acts of the 59th
Legislature, Regular Session, 1965, is amended to read as follows:
Sec. 5. (a) The Board of Directors shall manage, control
and administer the hospitals and hospital system of the District.
The District through its Board of Directors shall have the power and
authority to sue and be sued and to promulgate rules and regulations
for the operation of the District. The members of the Board of
Directors shall be individually liable only for their individual
misapplication of public funds.
(b) The Board of Directors shall appoint a qualified person
to be known as the chief executive officer [Administrator or
Manager] of the hospital district, who [and] may in the person's own
[its] discretion appoint an assistant to the chief executive
officer. The chief executive officer [Administrator or Manager.
Such Administrator or Manager and assistant administrator or
assistant manager, if any,] shall receive [such] compensation as
may be fixed by the Board, and the Board may execute an employment
contract with the chief executive officer. In [such Administrator
or Manager and assistant administrator or assistant manager, but
in] no event may the [any such] contract be for more than three (3)
years, but the contract [same] may be renewed or extended annually.
(c) The Board of Directors may delegate to the chief
executive officer the authority to manage, control, and administer
the hospital, the hospital system, and the business, funds, and
resources of the District under the oversight of 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, but in no event less than Twenty-five Thousand
Dollars ($25,000), 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 keep abreast of and be informed on the latest methods
of hospital administration and the care of hospital patients, and
shall supervise all the work and activities of the District and
shall have general direction of the affairs of the District,
subject to such limitations as may be prescribed by the Board.
(d) The Board of Directors shall authorize the chief
executive officer [have the authority to employ, or may provide
that the Administrator or Manager shall have the authority] to
employ, for the efficient operation of the District, nurses,
technicians, and other employees of the District.
(e) The Board of Directors 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 and agencies of
the Federal Government for the treatment of sick, diseased or
injured persons for whom the State of Texas or the Federal
Government is [are] responsible.
(f) The Board of Directors may purchase or lease property,
facilities, and equipment for the District to use in the hospital
system and may mortgage or pledge the property, facilities, or
equipment as security for the payment of the purchase price.
(g) The Board of Directors may enter into a contract or
contracts to provide administrative and other personnel for the
operation of the hospital facilities. The term of the contract may
not exceed 25 years. The Board may also lease District hospital
facilities to individuals, corporations, or other legal entities
and may sell or otherwise dispose of the District's property,
facilities, or equipment.
(h) The Board of Directors may spend District money to
recruit physicians, nurses, and other trained medical personnel.
The Board may contract with one or more full-time medical students
or other students in a health occupation, each of whom is enrolled
in and in good standing at an accredited medical school, college, or
university, to pay, under the terms of the contract, 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.
(i) The Board of Directors may institute a suit to enforce
the payment of taxes and to foreclose liens to secure the payment of
taxes due to the District.
(j) The Board of Directors may provide or contract for the
provision of educational programs or courses for employees and
medical staff of the District.
(k) The Board of Directors may institute a suit to collect
amounts owed to the District by patients who have not been
determined to be unable to pay under Section 18.
(l) The Board of Directors may provide retirement benefits
for employees of the District by:
(1) establishing or administering a retirement
program; or
(2) electing to participate in the Texas County and
District Retirement System or in any other statewide retirement
system in which the District is eligible to participate [is also
authorized to enter into such contracts or agreements with the
State of Texas or the Federal Government as may be required to
establish or continue a retirement program for the benefit of the
District's employees].
SECTION 3. Section 6, Chapter 647, Acts of the 59th
Legislature, Regular Session, 1965, is amended to read as follows:
Sec. 6. The District shall be operated on a fiscal year to
be established by the Board of Directors. The fiscal year may not
be changed when revenue bonds are outstanding or more than one time
in a 24–month period. The Board [commencing on October 1 of each
year and ending on September 30 of the following year, and it] shall
cause an annual audit to be made of the financial condition of said
District, which shall at all times be open to inspection at the
principal office of the District. In addition, the chief executive
officer [Administrator or Manager] shall prepare an annual budget
for approval by the Board of Directors of said District. 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]. No expenditure may be made for
any expense not included in the original annual budget or an
amendment to the budget [thereto]. The annual budget may be amended
from time to time, as the circumstances may require, but the annual
budget[,] and all amendments to the budget [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 647, Acts of the 59th
Legislature, Regular Session, 1965, is amended to read as follows:
Sec. 7. (a) The Board of Directors of the hospital
district may [shall have the power and authority to] issue and sell
general obligation bonds authorized by an election [its bonds] in
the name and upon the faith and credit of such hospital district,
for hospital or hospital system purposes, to:
(1) purchase, construct, acquire, repair, or renovate
buildings or improvements;
(2) equip buildings or improvements; or
(3) acquire and operate a mobile emergency medical or
air ambulance service [for the purchase, construction,
acquisition, repair or renovation of improvements and equipping the
same for hospitals and the hospital system, as determined by the
Board, and for any and all of such purposes].
(b) At the time of the issuance of any general obligation
[such] bonds a tax shall be levied by the Board sufficient to create
an interest and sinking fund and 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 levy of
taxes. The District may issue general obligation bonds only if the
bonds are authorized by a majority of the voters of the District
voting in an election held for that purpose. Section 41.001(a),
Election Code, does not apply to a bond election ordered by the
Board. A bond election shall be conducted in accordance with
Chapter 1251, Government Code, except as otherwise provided in this
Act [seventy-five cents (75¢) on each one hundred dollar valuation
of taxable property in any one year].
(c) Such bonds shall be executed in the name of the hospital
district and in its behalf by the president of the Board and
attested by the secretary, as provided by Chapter 618, Government
Code [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.
(d) 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.
(e) [No bonds shall be issued by such hospital district
except refunding bonds until authorized by a majority of the
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. Except as provided in Section 8,
such election shall be called by the Board of Directors and held in
accordance with the provisions of Chapter 1, Title 22 of the Revised
Civil Statutes of Texas, as amended, and except as therein
otherwise provided, shall be conducted in accordance with the
General Laws of Texas pertaining to elections. The District shall
make provisions for defraying the costs of all elections called and
held under the provisions of this Act. The bond election order
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, and the presiding officers thereof.] The bonds of
the District may be issued for the purpose of refunding and paying
off any bonds issued or assumed by such District. Refunding bonds
shall be issued in accordance with Chapter 1207, Government Code.
(f) The Board of Directors may issue and sell revenue bonds
in the name and on the faith and credit of the District to purchase,
construct, acquire, repair, renovate, or equip buildings or
improvements for hospitals and the hospital system and to acquire
sites to be used for hospital purposes. The bonds shall 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. The bonds may
be additionally secured by a mortgage or deed of trust on all or
part of the District's property. The revenue bonds shall 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, for the
issuance of revenue bonds by county hospital authorities [Such
refunding bonds may be sold and the proceeds thereof applied to the
payment of outstanding bonds, or may be exchanged in whole or in
part for not less than a like principal amount of such outstanding
bonds, provided that, if refunding bonds are to be exchanged for a
like amount of said outstanding bonds, such refunding bonds shall
bear interest at the same or lower rate than borne by the bonds
refunded, unless it is shown mathematically that a saving will
result in the total amount of interest to be paid on said refunding
bonds, and provided further that if such refunding bonds are to be
sold and the proceeds thereof applied to the payment of any such
outstanding bonds or other refundable indebtedness, same shall be
issued and payments made in the manner specified by Article 717k,
Vernon's Texas Civil Statutes].
SECTION 5. Section 11, Chapter 647, Acts of the 59th
Legislature, Regular Session, 1965, is amended to read as follows:
Sec. 11. 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 be
authorized to prescribe all accounting and control procedures and
to make such rules and regulations as may be required to carry out
the provisions of this Act. A contract for construction that
requires expenditures in excess of the amount prescribed by Section
271.024, Local Government Code, may be made only after competitive
bidding as provided by Subchapter B, Chapter 271, Local Government
Code [All purchases involving the expenditure of more than Two
Thousand Dollars ($2,000) may be made only after advertising in the
manner provided by Article 2368a, Vernon's Texas Civil Statutes, as
amended].
SECTION 6. Section 12, Chapter 647, Acts of the 59th
Legislature, Regular Session, 1965, is amended to read as follows:
Sec. 12. The Board of Directors of the District shall name
one or more banks [within its boundaries] to serve as depository for
the funds of the District. All such funds shall, as derived and
collected, be immediately deposited with such depository bank or
banks, except that sufficient funds shall be remitted to the bank or
banks for the payment of principal of and interest on the
outstanding bonds of the District or other obligations assumed by
it and in time that such money may be received by said bank or banks
for payment on or prior to the date of maturity of such principal
and interest so to be paid. To the extent that funds in the
depository bank or banks are not insured by the Federal Deposit
Insurance Corporation, they shall be secured in the manner provided
by law for security of county funds. Membership on the Board of
Directors of an officer or director of a bank disqualifies the
[shall not disqualify such] bank from being designated as
depository for the District's funds.
SECTION 7. Section 16, Chapter 647, Acts of the 59th
Legislature, Regular Session, 1965, is amended to read as follows:
Sec. 16. (a) The Board of Directors may annually impose
property taxes in an amount not to exceed the limit approved by the
voters at the election authorizing the imposition of taxes. The tax
rate for all purposes may not exceed 75 cents on each $100 valuation
of all taxable property in the District. The taxes may be used to
pay for indebtedness issued or assumed by the District and for the
maintenance and operating expenses of the District. The District
may not impose taxes to pay the principal of or interest on revenue
bonds.
(b) The Tax Code governs the appraisal, assessment, and
collection of District taxes. 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 District taxes shall be assessed and collected on
county tax values in the same manner as provided by law with
relation to county taxes upon all taxable property within said
District, subject to hospital district taxation. The Tax
Assessor-Collector of Childress County 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 the dues for assessing and collecting the taxes at a rate
of not to exceed one per cent (1%) for assessing, and one per cent
(1%) for collecting, each based upon the amount collected, but in no
event shall such fee to the Tax Assessor-Collector 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 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 Board of Directors shall have the authority to levy the
aforesaid tax for the entire year in which said District is
established as the result of the election herein provided. 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 Board of Directors of the
District 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].
SECTION 8. Section 18, Chapter 647, Acts of the 59th
Legislature, Regular Session, 1965, is amended to read as follows:
Sec. 18. (a) Whenever a patient residing within the
District has been admitted to a district facility [the facilities
thereof], the chief executive officer [Administrator or Manager]
shall have an [cause] inquiry [to be] made as to the patient's [his]
circumstances and the circumstances [those] of the relatives of the
[such] patient legally liable for the patient's [his] support.
(b) If the chief executive officer [he] finds that the
[such] patient or the patient's [said] relatives are able to pay for
the patient's [his] care and treatment wholly or partly, the chief
executive officer [in whole or in part, an order] shall issue an
order [be made] directing the [such] patient or the patient's
[said] relatives to pay to the hospital district for the support of
the [such] patient a specified sum per week in proportion to the
[their] financial ability of the patient or the patient's
relatives. A patient or the patient's relative may not be required
to pay an amount greater than[, but such sum shall not exceed] the
actual per capita cost of maintenance.
(c) The chief executive officer may collect money owed to
the District [Administrator or Manager shall have power and
authority to collect such sums] from the estate of the patient or
from the patient's [his] relatives legally liable for the patient's
[his] support in the manner provided by law for collection of
expenses in the last illness of a deceased person.
(d) If the chief executive officer [Administrator or
Manager] finds that the [such] patient or the patient's [said]
relatives are not able to pay either wholly or partly [in whole or
in part] for the patient's [his] care and treatment in the [such]
hospital, the cost of the patient's care [same] shall become a
charge on [upon] the hospital district as to the amount of the
inability to pay.
(e) If [Should] there is [be] any dispute as to the ability
to pay or doubt in the mind of the chief executive officer
[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
must be made [shall lie] to the District Court. The substantial
evidence rule shall apply.
SECTION 9. Chapter 647, Acts of the 59th Legislature,
Regular Session, 1965, is amended by adding Sections 20A, 20B, and
21A to read as follows:
Sec. 20A. (a) The Board of Directors may borrow money at a
rate not to exceed the maximum annual percentage rate allowed by law
for District obligations at the time the loan is made if the Board
declares that:
(1) money is not available to meet authorized
obligations of the District; and
(2) an emergency exists.
(b) To secure a loan, the Board of Directors may pledge:
(1) District revenues that are not pledged to pay
bonded indebtedness of the District;
(2) District taxes to be imposed in the next 12-month
period that are not pledged to pay the principal of or interest on
District bonds; or
(3) District bonds that have been authorized but not
sold.
(c) A loan for which District taxes or bonds are pledged
must mature not later than the first anniversary of the date the
loan is made. A loan for which District revenues are pledged must
mature not later than the fifth anniversary of the date the loan is
made.
(d) The Board of Directors may not spend money obtained from
a loan under this section for any purpose other than:
(1) the purpose for which the Board declared an
emergency; and
(2) if District taxes or bonds are pledged to pay the
loan, the purpose for which the pledged taxes were imposed or the
pledged bonds were authorized.
Sec. 20B. (a) The Board may borrow money at a rate not to
exceed the maximum annual percentage rate allowed by law for
District obligations at the time the loan is made.
(b) To secure a loan, the Board may pledge:
(1) District revenues that are not pledged to pay
bonded indebtedness of the District;
(2) District taxes to be imposed in the next 12-month
period that are not pledged to pay the principal of or interest on
District bonds; or
(3) District bonds that have been authorized but not
sold.
(c) A loan for which District taxes or bonds are pledged
must mature not later than the first anniversary of the date the
loan is made. A loan for which district revenues are pledged must
mature not later than the fifth anniversary of the date the loan is
made.
Sec. 21A. (a) The District may be dissolved only if the
dissolution is approved by a majority of the qualified voters of the
District voting in an election called and 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 residents of the District equal to at least 15 percent of
the registered voters in the District.
(c) The election shall be held not later than the 60th day
after the date the election is ordered. Section 41.001(a),
Election Code, does not apply to an election ordered under this
section. The order calling the election shall 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.
(d) 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 less
than 35 days before the date set for the election. The ballot for
the election shall be printed to permit voting for or against the
proposition: "The dissolution of the Childress County Hospital
District."
(e) 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.
(f) 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 a county
or another governmental entity in the county in which the District
is located;
(2) sell the assets and liabilities to another person
or entity; or
(3) administer the property, assets, and debts until
all funds have been disposed of and all District debts have been
paid or settled.
(g) If the District transfers the land, buildings,
improvements, equipment, and other assets to a county or other
governmental entity, the county or entity assumes all debts and
obligations of the District at the time of the transfer, at which
time the District is dissolved. If the District does not transfer
the land, buildings, improvements, equipment, and other assets to a
county or other governmental entity, or sell those assets and the
liabilities to another person, 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.
(h) After the Board of Directors finds that the District is
dissolved, the Board shall:
(1) determine the 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.
(i) When all outstanding debts and obligations of the
District are paid, the Board of Directors shall order the secretary
to return the pro rata share of all unused tax money to each
District taxpayer.
(j) 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 funds to the county tax
assessor-collector.
(k) After the District has paid all its debts and has
disposed of all its assets and funds as prescribed by this section,
the Board of Directors shall file a written report with the
Commissioners Court of Childress County setting forth a summary of
the Board's actions in dissolving the District.
(l) 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 Childress County
shall enter an order dissolving the District and releasing the
Board of Directors of the District from any further duty or
obligation.
(m) The District may provide for the sale or transfer of the
District's assets and liabilities to another person or entity and
the District's subsequent dissolution. The dissolution of the
District and the sale or transfer of the District's assets and
liabilities to another person or entity may not contravene a trust
indenture or bond resolution relating to the outstanding bonds of
the District. The dissolution and sale or transfer does not
diminish or impair the rights of a holder of an outstanding bond,
warrant, or other obligation of the District.
(n) The sale or transfer of the District's assets and
liabilities must satisfy the debt and bond obligations of the
District in a manner that protects the interests of the residents of
the District, including the residents' collective property rights
in the District's assets. A grant from federal funds is an
obligation to be repaid in satisfaction. The District may not
transfer or dispose of the District's assets except for due
compensation unless the transfer is made to another governmental
entity that serves the District and the transferred assets are to be
used for the benefit of the residents of the District.
SECTION 10. 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.