82R4208 CJC-F

By: Craddick H.B. No. 850

A BILL TO BE ENTITLED

AN ACT

relating to the Rankin County Hospital District.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 3, Chapter 182, Acts of the 60th

Legislature, Regular Session, 1967, is amended to read as follows:

Sec. 3. BOARD [CREATION OF DIRECTORS]. (a) [Within 10 days

after such election is held, the commissioners court in such county

shall convene and canvass the returns of the election and if a

majority of qualified property taxpaying electors voting at said

election vote in favor of the proposition, the court shall so find

and declare the hospital district established and created.] The

[management and control of the district is vested in a] board of

directors [which] consists of five members elected from the

district at large. Directors serve staggered two-year terms unless

four-year terms are established under Section 285.081, Health and

Safety Code.

(b) A person may not be elected or appointed as a director

unless the person is:

(1) a resident of the district; and

(2) at least 21 years of age.

(c) An employee of the district may not serve as a director

[, to be elected by the qualified electors who own taxable property

within the district and who have duly rendered that property for

taxation. To qualify for the election to the board, a person must:

[1. be at least 21 years of age;

[2. have been a resident of the district for at least two

years;

[3. be a qualified voter;

[4. own taxable property within the district and have duly

rendered that property for taxation;

[5. shall not be an officer of any political subdivision or

the State of Texas or the County of Upton, whether such office be

elective or by appointment].

(d) Before assuming the duties of the office of director,

each [Not less than 15 nor more than 25 days after the district is

declared established and created the commissioners court shall call

an election for the five directors who will serve as the district's

first board of directors, this election to be held on a date not

more than 30 days after the day of the passage of the commissioners

court order calling same but on such date as will permit publication

of an election notice in a newspaper of general circulation in the

district one time not less than 14 days prior to such election date.

Any candidate desiring to be voted upon as a first director shall,

no later than five days subsequent to the day of passage of the

commissioners court order calling the election, present a petition

to that court signed by such candidate requesting that his name be

placed upon the official ballot. The regular term of each director

shall be for two years but at the first called election, the three

directors receiving the highest vote at such election shall serve

for two years and the other two directors shall serve for one year.

The first year terms shall be ended on the date of the first annual

elections as hereinafter provided. Each] member of the board of

directors shall [qualify by executing the constitutional oath of

office and shall] execute a [good and sufficient commercial] bond

for $1,000 payable to the [said] district conditioned upon the

faithful performance of the director's [his] duties, and such

[oaths and] bonds shall be deposited with the depository bank of the

district for safekeeping. The cost of this bond shall be an expense

of the hospital district.

(e) The board of directors shall elect from among its

members a president and vice president [organize by election a

chairman, who shall preside; or in his absence a chairman pro tem

shall preside; and the administrator or any member of the board may

be appointed secretary]. The board shall appoint a secretary, who

need not be a director.

(f) A [Any three members of the board of directors shall

constitute a quorum and a] concurrence of three directors is [shall

be] sufficient in all matters pertaining to the business of the

district. [The board shall require the secretary to keep suitable

records of all proceedings of each meeting of the board. Such

records shall be read and signed after each meeting by the chairman

or the member presiding, and attested by the secretary. The board

shall have a seal, on which shall be engraved the name of the

hospital district; and said seal shall be kept by the secretary and

used in authentication of all acts of the board.]

(g) All district records, including books, accounts,

notices, minutes, and all other matters of the district and the

operation of its facilities, shall be:

(1) maintained at the district office; and

(2) open to public inspection at the district office

at all reasonable hours.

(h) All vacancies in the office of director shall be filled

by appointment of the remainder of the board of directors until the

next election for directors and at such election the directors

shall be elected for the unexpired term.

(i) Unless four-year terms are established under Section

285.081, Health and Safety Code, a [A] regular election of

directors shall be held on the uniform election date in May of each

year to elect the appropriate number of directors. Notice of the

[first Saturday of April of each year and notice of such] election

shall be published in accordance with Section 4.003, Election Code,

in a newspaper of general circulation in the county [one time at

least 30 days prior to the date of election. Any person desiring

his name to be printed on the ballot as a candidate for director

shall file an application to have his name placed on the ballot with

the secretary of the board of directors of the district. Such

application shall be filed with the secretary at least 25 days prior

to the date of the election].

SECTION 2. Section 4, Chapter 182, Acts of the 60th

Legislature, Regular Session, 1967, is amended to read as follows:

Sec. 4. ADMINISTRATOR. (a) The board may appoint a

qualified person as district administrator.

(b) The district administrator serves at the will of the

board and receives the compensation determined by the board. [The

board shall appoint a general manager, to be known as the

administrator of the hospital district. The administrator shall

hold office at the pleasure of the board and shall receive such

compensation as may be fixed by the board.] The administrator shall

be subject to removal at any time by the board.

(c) The administrator shall, before entering into the

discharge of the administrator's [his] duties, execute a bond

payable to the district, in the amount of not less than $10,000

conditioned that the administrator [he] shall well and faithfully

perform the duties required [of him], and containing such other

conditions as the board may require. The board may pay for the bond

with district money.

(d) The administrator shall perform all duties which may be

required of the administrator [him] by the board, and shall

supervise all of the work and activities of the district and have

general direction of the affairs of the district within such

limitations as may be prescribed by the board. [Said administrator

shall not be a member of the board and shall be a qualified

practitioner of medicine or be specifically trained for work of

such character.]

(e) The board of directors, with the approval of the

commissioners court, shall be authorized to contract with any

county other than Upton County for care and treatment of the

county's sick, diseased and injured persons, and with the state and

agencies of the federal government for the care and treatment of

such persons for whom the state and such agencies of the federal

government are responsible. Further, under the same conditions,

the board of directors may enter into such contracts with the state

and federal government as may be necessary to establish or continue

a retirement program for the benefit of its employees.

(f) The board of directors may in addition to retirement

programs authorized by this Act establish such other retirement

program for the benefit of its employees as it deems necessary and

advisable.

SECTION 3. Section 7, Chapter 182, Acts of the 60th

Legislature, Regular Session, 1967, is amended to read as follows:

Sec. 7. [AUTHORIZATION OF] BONDS. (a) The board of

directors may [shall have the power and authority to] issue and sell

as the obligations of such hospital district, and in the name and

upon the faith and credit of such hospital district, general

obligation bonds for the purchase, construction, acquisition,

repair or renovation of buildings and improvements and equipping

the same for hospital purposes and for any or all of such purposes.

(b) At the time general obligation bonds are issued by the

district, the board shall impose an ad valorem [; provided, that a

sufficient] tax at a rate sufficient [shall be levied] to create an

interest and sinking fund to pay the principal of and interest on

the bonds as the bonds mature. Such [interest and principal as same

matures provided said] tax together with any other taxes levied for

said district shall not exceed 75 cents per $100 valuation of

taxable property in the district in any one year.

(c) The board's presiding officer shall execute the general

obligation bonds in the district's name. The board secretary shall

countersign the bonds.

(d) The district may issue general obligation bonds only if

the bonds are [Such bonds shall be executed in the name of the

hospital district and on its behalf by the chairman of the board of

directors and countersigned by the secretary of the board of

directors, and shall be subject to the same requirements in the

matter of approval thereof by the Attorney General of the State of

Texas and the registration thereof by the Comptroller of Public

Accounts of the State of Texas as are by law provided. Upon the

approval of such bonds by the Attorney General of Texas the same

shall be incontestable for any cause. No bonds shall be issued by

such hospital district (except refunding bonds) until] authorized

by a majority of the district voters [vote of the legally qualified

property taxpaying voters, residing in such hospital district,]

voting at an election [called and] held for such purpose. The board

may order the election on its own motion. The order calling the

election must [Such election may be called by the board of directors

of its own motion, shall] specify the place or places where the

election shall be held, the presiding officers thereof, the purpose

for which the bonds are to be issued, the amount of the bonds to be

authorized [thereof], maximum interest rate, [(not to exceed six

percent per annum)] and the maximum maturity date of such bonds (not

to exceed 40 years from their date of issuance). Notice of election

shall be given by publishing a substantial copy of the order calling

the election in a newspaper of general circulation in such district

once a week for two consecutive weeks prior to the date of election,

the date of the first publication being at least 20 full days prior

to the date set for the election. The costs of such election shall

be paid by the hospital district.

(e) The board may, without an election, issue refunding

bonds to refund outstanding bonds issued or assumed by the

district. A refunding bond may be:

(1) sold, with the proceeds of the refunding bond

applied to the payment of the bonds to be refunded; or

(2) exchanged wholly or partly for not less than a

similar amount of outstanding bonds and the unpaid matured interest

on the bonds.

(f) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire real property for hospital purposes.

(g) Revenue bonds must be payable from and secured by a

pledge of all or part of the revenue derived from the operation of

the district's hospital system. Revenue bonds may be additionally

secured by a mortgage or deed of trust on all or part of district

property. Revenue bonds must be issued in the manner provided by

Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,

Health and Safety Code, for issuance of revenue bonds by a county

hospital authority.

(h) In addition to the authority to issue general obligation

and revenue bonds under this section, the board may provide for the

security and payment of district bonds from a pledge of a

combination of ad valorem taxes as authorized by Subsection (b) of

this section and revenue and other sources as authorized by

Subsection (g) of this section.

(i) The district may use the proceeds of bonds issued under

this section to pay:

(1) any expense the board determines is reasonable and

necessary to issue, sell, and deliver the bonds;

(2) interest payments on the bonds during a period of

acquisition or construction of a project or facility to be provided

through the bonds, not to exceed five years;

(3) costs related to the operation and maintenance of

a project or facility to be provided through the bonds:

(A) during an estimated period of acquisition or

construction, not to exceed five years; and

(B) for one year after the project or facility is

acquired or constructed;

(4) costs related to the financing of the bond funds,

including debt service reserve and contingency funds;

(5) costs related to the bond issuance;

(6) costs related to the acquisition of land or

interests in land for a project or facility to be provided through

the bonds; and

(7) construction costs of a project or facility to be

provided through the bonds, including the payment of related

professional services and expenses. [In the manner hereinabove

provided, the bonds of such hospital district may, without the

necessity of any election therefor, be issued for the purpose of

refunding and paying off any bonded indebtedness theretofore

assumed by such hospital district; such refunding bonds may be sold

and the proceeds thereof applied to the payment of any such

outstanding bonds or may be exchanged in whole or in part for not

less than a like amount of said outstanding bonds and interest

matured thereon, but unpaid; provided the average interest cost per

annum on the refunding bonds, computed in accordance with

recognized standard bond interest cost per annum so computed, upon

the bonds to be discharged out of the proceeds of the refunding

bonds, unless the total interest cost on the refunding bonds,

computed to their respective maturity dates, is less than the total

interest so computed on the bonds to be discharged out of such

proceeds. In the foregoing computations, any premium or premiums

required to be paid upon the bonds to be refunded as a condition to

payment in advance of their stated maturity dates shall be taken

into account as an addition to the net interest cost to the hospital

district of the refunding bonds.]

SECTION 4. Chapter 182, Acts of the 60th Legislature,

Regular Session, 1967, is amended by adding Section 7A to read as

follows:

Sec. 7A. AUTHORITY TO BORROW MONEY. (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 revenue that is not pledged to pay the

district's bonded indebtedness;

(2) tax revenue to be collected by the district during

the 12-month period following the date of the pledge that is 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 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 revenue is pledged must mature not later

than the fifth anniversary of the date the loan is made.

SECTION 5. Section 10, Chapter 182, Acts of the 60th

Legislature, Regular Session, 1967, is amended to read as follows:

Sec. 10. DISTRICT DEPOSITORY. (a) The board of directors of

the district shall select [name] one or more banks [within the

district] to serve as a depository for [the funds of the] district

money. [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 of payment on or prior to

the date of maturity of such principal and interest so to be paid.]

To the extent that money [funds] in a [the] depository bank is [or

banks are] not insured by the Federal Deposit Insurance

Corporation, the money must [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 shall not

disqualify such bank from being designated as a depository.

(b) The board may invest operating, depreciation, or

building reserves only in funds or securities specified by Chapter

2256, Government Code.

SECTION 6. Section 13, Chapter 182, Acts of the 60th

Legislature, Regular Session, 1967, is amended to read as follows:

Sec. 13. METHODS AND PROCEDURES; CONSTRUCTION CONTRACTS.

(a) The board may prescribe the method of making purchases and

expenditures by and for the district.

(b) The board may prescribe accounting and control

procedures for the district.

(c) The board may enter into purchase or construction

contracts on behalf of the district; however, the board may enter

into construction [or purchase] contracts that involve spending

more than the amount provided by Section 271.024, Local Government

Code, [$10,000] only after advertising as provided by Subchapter B,

Chapter 271 [Chapter 252], Local Government Code.

(d) Chapter 2253, Government Code [Article 5160, Revised

Statutes], applies to construction contracts let by the district.

SECTION 7. 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, 2011.