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A BILL TO BE ENTITLED
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AN ACT
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relating to the powers and duties of the Electra Hospital District. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 4(c) and (e), Chapter 513, Acts of the |
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63rd Legislature, Regular Session, 1973, are amended to read as |
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follows: |
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(c) The district is governed by a board of seven directors |
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elected at large by place for staggered three-year terms. A |
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director's election shall be held each year on the May uniform |
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election date prescribed by Section 41.001, Election Code. [At
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such time as the creation of the district is approved and the
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returns of the election officially canvassed, the persons then
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serving as temporary directors shall become permanent directors of
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the district, shall execute the constitutional oath of office as
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such, and shall divide themselves into two classes:
Class One,
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three persons, to serve until the first Saturday in April next
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following;
Class Two, four persons to serve until the first
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Saturday in April of the following year.
Successors shall be
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elected by vote of the electors of the entire district for two-year
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terms.] Notice of each election shall be published in a newspaper |
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or newspapers which individually or collectively provide general |
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circulation in the district in accordance with Section 4.003, |
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Election Code [one time at least 30 days prior to the date of the
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election]. Any person desiring to have that person's [his] name |
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printed on the ballot as a candidate for director shall file an |
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application [a petition signed by at least 10 electors asking that
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such name be printed on the ballot] with the secretary of the board |
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of directors in accordance with Chapter 144, Election Code. [The
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petition shall be filed with the secretary at least 30 days prior to
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the date of the election.] Vacancies in office shall be filled for |
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the unexpired term by the remainder of the board of directors. |
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(e) The board of directors[, temporary and permanent,] |
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shall organize by electing one of their number as president and one |
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of their number as vice-president. A secretary, who need not be a |
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director, shall also be elected. Officers shall be elected for a |
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term of one year and vacancies shall be filled for the unexpired |
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term by the board of directors[, temporary or permanent]. Any four |
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[five] members of the board of directors shall constitute a quorum |
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and a concurrence of four [five] shall be sufficient in all matters |
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pertaining to the business of the district. All members of the |
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board of directors and officers shall serve without compensation, |
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but may be reimbursed for actual expenses incurred in the |
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performance of their official duties on the approval of such |
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expenses by the board of directors and so reported in the minute |
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book of the district or other records of the district. |
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SECTION 2. Section 5, Chapter 513, Acts of the 63rd |
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Legislature, Regular Session, 1973, is amended to read as follows: |
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Sec. 5. The board of directors shall manage, control, and |
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administer the hospital system and all funds and resources of the |
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district, but in no event shall any operating, depreciation, or |
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building reserves be invested in any funds or securities other than |
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those specified in Subchapter A, Chapter 2256, Government Code |
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[Article 836 or 837, Revised Civil Statutes of Texas, 1925, as
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amended]. The district, through its board of directors, shall have |
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the power and authority to sue and be sued, to promulgate rules and |
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regulations governing the operation of the hospital, hospital |
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system, its staff, and its employees. The board of directors shall |
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appoint a qualified person to be known as the administrator [or
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manager] of the hospital district [and may in its discretion
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appoint an assistant to the administrator or manager]. The |
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administrator [or manager and assistant administrator or manager,
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if any,] shall serve at the will of the board and shall receive such |
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compensation as may be fixed by the board. [The administrator or
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manager shall, on assuming his duties, execute a bond payable to the
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hospital district in an amount to be set by the board of directors,
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in no event less than $5,000, conditioned that he shall perform the
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duties required of him, and containing such other conditions as the
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board may require.] The administrator [or manager] shall supervise |
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all the work and activities of the district and shall have general |
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direction of the affairs of the district, subject to the |
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limitations as may be prescribed by the board. The board of |
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directors shall have the authority to appoint to the staff such |
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doctors as the board considers [it may be deemed] necessary for the |
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efficient operation of the district, and may provide for temporary |
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appointments to the staff if warranted by circumstances. The board |
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may delegate to the administrator [or manager] the authority to |
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employ technicians, nurses, and employees of the district. The |
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board shall be authorized to contract with any other political |
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subdivision or governmental agency whereby the district will |
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provide investigatory or other services regarding [as to] the |
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medical, hospital, or welfare needs of the inhabitants of the |
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district and shall be authorized to contract with any county or |
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incorporated municipality located outside its boundaries for the |
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care and treatment of the sick, diseased, or injured persons of any |
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such county or municipality, and shall have the authority to |
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contract with the State of Texas, or agencies of the federal |
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government for the treatment of sick, diseased, or injured persons. |
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SECTION 3. Chapter 513, Acts of the 63rd Legislature, |
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Regular Session, 1973, is amended by adding Section 5A to read as |
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follows: |
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Sec. 5A. (a) The district may create and sponsor a |
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nonprofit corporation under the Business Organizations Code and may |
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contribute money to or solicit money for the corporation. |
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(b) A corporation created under this section may use money |
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contributed by the district only to provide health care or other |
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services the district is authorized to provide under this Act. |
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(c) A corporation created under this section may enter into |
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a joint venture with any public or private entity or individual to |
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provide health care or other services the district is authorized to |
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provide under this Act. |
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(d) A corporation created under this section may invest the |
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corporation's money in any manner in which the district may invest |
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the district's money, including investing money as authorized by |
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Chapter 2256, Government Code. |
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(e) The board of directors shall establish controls to |
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ensure that the corporation uses its money as required by this |
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section. |
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SECTION 4. Section 6, Chapter 513, Acts of the 63rd |
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Legislature, Regular Session, 1973, is amended to read as follows: |
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Sec. 6. The district shall be operated on the basis of a |
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fiscal year as established from time to time by the board of |
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directors, provided such fiscal year may not be changed during the |
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time revenue bonds of the district are outstanding or more than once |
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in any 24-month period. The board shall cause an audit to be made of |
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the financial condition of the district, which together with other |
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records of the district shall be open to inspection at the principal |
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office of the district. The administrator [or manager] shall |
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prepare an annual budget for approval by the board of directors. |
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The budget shall also contain a complete financial statement of the |
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district showing all outstanding obligations of the district, the |
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cash on hand to the credit of each and every fund of the district, |
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the funds received from all sources during the previous year, the |
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funds available from all sources during the ensuing year, with |
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balances expected at year end of the year in which the budget is |
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being prepared, and estimated revenues and balances available to |
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cover the proposed budget and the estimated tax rate which will be |
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required. A public hearing on the annual budget shall be held by |
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the board of directors after notice of such hearing has been |
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published one time at least 10 days before the date set therefor. |
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Any person residing in the district shall have the right to be |
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present and participate in the hearing. At the conclusion of the |
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hearing, the budget, as proposed by the administrator, shall be |
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acted on by the board of directors. The board of directors shall |
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have authority to make such changes in the budget as in their |
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judgment the law warrants and the interest of the taxpayers |
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demands. No expenditure may be made for any expense not included in |
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the annual budget or an amendment thereto. The annual budget may be |
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amended from time to time as the circumstances may require, but the |
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annual budget, and all amendments thereto, shall be approved by the |
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board of directors. As soon as practicable after the close of each |
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fiscal year, the administrator [or manager] shall prepare for the |
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board a full sworn statement of all money belonging to the district |
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and a full account of the disbursements of same. |
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SECTION 5. Section 10(b), Chapter 513, Acts of the 63rd |
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Legislature, Regular Session, 1973, is amended to read as follows: |
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(b) The board of directors of the district shall have the |
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power to prescribe the method and manner of making purchases and |
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expenditures by and for the hospital district, and shall also be |
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authorized to prescribe all accounting and control procedures. A |
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construction contract that involves an [All contracts for
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construction involving the] expenditure of more than the amount |
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provided by Section 271.024, Local Government Code, may be made |
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only after competitive bidding as provided by Subchapter B, Chapter |
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271, Local Government Code [of more than $10,000 may be made only
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after advertising in the manner provided by Chapter 163, Acts of the
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42nd Legislature, Regular Session, 1931, as amended (Article 2368a,
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Vernon's Texas Civil Statutes)]. The provisions of Chapter 2253, |
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Government Code, [Article 5160, Revised Civil Statutes of Texas,
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1925,] relating to performance and payment bonds shall apply to |
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construction contracts let by the district. The district may |
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acquire equipment for use in its hospital system and mortgage or |
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pledge the property so acquired as security for the payment of the |
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purchase price, but any such contract shall provide for the entire |
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obligation of the district to be retired within five years from the |
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date of the contract. Except as permitted in the preceding sentence |
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and as permitted by Sections 7, 8, and 9, the district may incur no |
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obligation payable from any revenues of the district, tax or |
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otherwise, except those on hand or to be on hand within the then |
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current and following fiscal year of the district. |
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SECTION 6. Section 17, Chapter 513, Acts of the 63rd |
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Legislature, Regular Session, 1973, is amended to read as follows: |
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Sec. 17. Whenever a patient residing within the district |
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has been admitted to the facilities thereof, the administrator [or
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manager] may cause inquiry to be made as to his circumstances and |
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those of the relatives of the patient legally liable for his |
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support. If he finds that the patient or his relatives are able to |
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pay for his care and treatment in whole or in part, an order shall be |
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made directing the patient or his relatives to pay to the hospital |
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district for the care and support of such patient a specified sum |
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per week in proportion to their financial ability. The |
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administrator [or manager] shall have the power and authority to |
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collect such sums from the estate of the patient or his relatives |
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legally liable for his support in the manner provided by law for |
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collection of expenses in the last illness of a deceased person. If |
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the administrator [or manager] finds that the patient or his |
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relatives are not able to pay either in whole or in part for his care |
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and treatment in the hospital, same shall become a charge on the |
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hospital district as to the amount of the inability to pay. Should |
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there be any dispute as to the ability to pay or doubt in the mind of |
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the administrator [or manager], the board of directors shall hear |
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and determine same after calling witnesses, and shall make such |
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order or orders as may be proper. Appeals from a final order of the |
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board shall lie to the district court. The substantial evidence |
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rule shall apply. |
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SECTION 7. Chapter 513, Acts of the 63rd Legislature, |
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Regular Session, 1973, is amended by adding Section 18A to read as |
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follows: |
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Sec. 18A. (a) The district may be dissolved only on |
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approval of a majority of the district voters voting in an election |
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held for that purpose. |
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(b) The board of directors may order an election on the |
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question of dissolving the district and disposing of the district's |
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assets. The board shall order an election if the board receives a |
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petition requesting an election that is signed by a number of |
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registered voters of the district equal to at least 20 percent of |
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the registered voters in the district. |
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(c) An election on dissolution of the district shall be held |
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not later than the 62nd day after the date the election is ordered. |
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Section 41.001, Election Code, does not apply to an election |
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ordered under this section. |
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(d) The order calling the election shall state: |
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(1) the nature of the election, including the |
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proposition to appear on the ballot; |
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(2) the date of the election; |
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(3) the hours during which the polls will be open; and |
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(4) the location of the polling places. |
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(e) The board shall give notice of the election by |
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publishing once a week for two consecutive weeks a substantial copy |
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of the election order in a newspaper with general circulation in the |
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district. The first publication must appear not later than the 35th |
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day before the date set for the election. |
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(f) The ballot for the election shall be printed to permit |
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voting for or against the proposition: "The dissolution of the |
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Electra County Hospital District." |
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(g) If a majority of the votes in the election favor |
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dissolution, the board shall order that the district be dissolved. |
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If a majority of the votes in the election do not favor dissolution, |
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the board shall continue to administer the district and another |
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election on the question of dissolution may not be held before the |
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first anniversary of the date of the most recent election to |
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dissolve the district. |
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(h) If a majority of the votes in the election favor |
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dissolution, the board shall: |
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(1) transfer the land, buildings, improvements, |
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equipment, and other assets that belong to the district to Wichita |
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County or another governmental entity in Wichita County; or |
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(2) administer the property, assets, and debts until |
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all funds have been disposed of and all district debts have been |
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paid or settled. |
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(i) If the district makes the transfer under Subsection |
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(h)(1) of this section, the county or entity assumes all debts and |
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obligations of the district at the time of the transfer, at which |
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time the district is dissolved. |
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(j) If the district does not make the transfer under |
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Subsection (h)(1) of this section, the board shall administer the |
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property, assets, and debts of the district until all funds have |
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been disposed of and all district debts have been paid or settled, |
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at which time the district is dissolved. |
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(k) After the board finds that the district is dissolved, |
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the board shall: |
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(1) determine the debt owed by the district; and |
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(2) impose on the property included in the district's |
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tax rolls a tax that is in proportion of the debt to the property |
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value. |
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(l) On the payment of all outstanding debts and obligations |
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of the district, the board shall order the secretary to return to |
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each district taxpayer the taxpayer's pro rata share of all unused |
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tax money. A taxpayer may request that the taxpayer's share of |
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surplus tax money be credited to the taxpayer's county taxes. If a |
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taxpayer requests the credit, the board shall direct the secretary |
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to transmit the funds to the county tax assessor-collector. |
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(m) After the district has paid all its debts and has |
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disposed of all district assets and funds as prescribed by this |
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section, the board shall file a written report with the |
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Commissioners Court of Wichita County summarizing the board's |
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actions in dissolving the district. Not later than the 10th day |
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after the date the commissioners court receives the report and |
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determines that the requirements of this section have been |
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fulfilled, the commissioners court shall enter an order dissolving |
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the district and releasing the board from any further duty of |
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obligation. |
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SECTION 8. (a) The members of the board of directors of the |
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Electra Hospital District serving on the effective date of this Act |
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shall draw lots to determine in which place each director serves. |
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The three directors whose terms expire in 2008 shall draw lots for |
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Places 1, 2, and 3. The four directors whose terms expire in 2009 |
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shall draw lots for Places 4, 5, 6, and 7. |
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(b) The election of the board of directors of the district |
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scheduled before the effective date of this Act to be held in May |
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2008 must be held, and the directors elected for Places 1, 2, and 3 |
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at that election shall serve two-year terms. |
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(c) The election of the board of directors scheduled before |
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the effective date of this Act to be held in May 2009 must be held, |
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and the directors elected for Places 4 and 5 at that election shall |
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serve three-year terms. The directors elected for Places 6 and 7 at |
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that election shall serve two-year terms. |
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(d) The directors elected at the election to be held in May |
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2010, May 2011, and May 2012 shall serve three-year terms. |
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SECTION 9. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |