S.B. No. 310
 
 
 
 
AN ACT
  relating to the Dallam-Hartley Counties Hospital District.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1018.061, Special District Local Laws
  Code, is amended by amending Subsection (c) and adding Subsection
  (d) to read as follows:
         (c)  Except as provided by Section 1018.0615, the [The] board
  may delegate to the district administrator the authority to hire
  district employees, including technicians and nurses.
         (d)  The board may employ physicians, but only as provided by
  Section 1018.0615.  The board may employ other health care
  providers as the board considers necessary for the efficient
  operation of the district.
         SECTION 2.  Subchapter B, Chapter 1018, Special District
  Local Laws Code, is amended by adding Section 1018.0615 to read as
  follows:
         Sec. 1018.0615.  EMPLOYMENT OF PHYSICIANS. (a)  The board
  may employ a physician and retain all or part of the professional
  income generated by the physician for medical services provided at
  a hospital or other health care facility owned or operated by the
  district if the board satisfies the requirements of this section.
         (b)  The board shall:
               (1)  appoint a chief medical officer for the district;
  and
               (2)  adopt, maintain, and enforce policies to ensure
  that a physician employed by the district exercises the physician's
  independent medical judgment in providing care to patients.
         (c)  The policies adopted under this section must include:
               (1)  policies relating to:
                     (A)  credentialing;
                     (B)  quality assurance;
                     (C)  utilization review;
                     (D)  peer review; and
                     (E)  medical decision-making; and
               (2)  the implementation of a complaint mechanism to
  process and resolve complaints regarding interference or attempted
  interference with a physician's independent medical judgment.
         (d)  The policies adopted under this section:
               (1)  must be approved by the chief medical officer of
  the district; and
               (2)  shall prevail over a conflicting policy of the
  district.
         (e)  For all matters relating to the practice of medicine,
  each physician employed by the board shall ultimately report to the
  chief medical officer of the district.
         (f)  The chief medical officer will report immediately to the
  Texas Medical Board any action or event that the chief medical
  officer reasonably and in good faith believes constitutes a
  compromise of the independent medical judgment of a physician in
  caring for a patient.
         (g)  The board may not delegate to the district administrator
  the authority to hire a physician.
         (h)  This section may not be construed as authorizing the
  board to supervise or control the practice of medicine as
  prohibited under Subtitle B, Title 3, Occupations Code.
         SECTION 3.  Section 1018.161, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1018.161.  GENERAL AUTHORITY TO BORROW MONEY; SECURITY.
  (a)  The board may borrow money at a rate [for district operating
  expenses in an amount] not to exceed the maximum annual percentage
  rate allowed by law for district obligations at the time the loan is
  made [amount of tax or other revenue the district expects to receive
  during the fiscal year in which the money is borrowed].
         (b)  To secure a loan, the board may pledge:
               (1)  district revenue that is not pledged to pay the
  district's bonded indebtedness;
               (2)  a district tax to be imposed 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 [To repay
  the debt, the district may pledge all or part of the tax or other
  revenue received during the fiscal year in which the board borrows
  money under this section].
         SECTION 4.  Subchapter E, Chapter 1018, Special District
  Local Laws Code, is amended by adding Sections 1018.209 and
  1018.210 to read as follows:
         Sec. 1018.209.  ADDITIONAL MEANS OF SECURING REPAYMENT OF
  BONDS. In addition to the authority to issue general obligation
  bonds and revenue bonds under this subchapter, 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 Section
  1018.202 and revenue and other sources authorized by Section
  1018.206.
         Sec. 1018.210.  USE OF BOND PROCEEDS. The district may use
  the proceeds of bonds issued under this subchapter 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)  costs of construction of a project or facility to
  be provided through the bonds, including the payment of related
  professional services and expenses.
         SECTION 5.  Chapter 1018, Special District Local Laws Code,
  is amended by adding Subchapter G to read as follows:
  SUBCHAPTER G.  DISSOLUTION
         Sec. 1018.301.  DISSOLUTION; ELECTION. (a)  The district
  may be dissolved only on approval of a majority of the district
  voters voting in an election held for that purpose.
         (b)  The board may order an election on the question of
  dissolving the district and disposing of the district's assets and
  obligations.
         (c)  The board shall order an election if the board receives
  a petition requesting an election that is signed by at least 15
  percent of the registered voters in the district.
         (d)  The order calling the election must state:
               (1)  the nature of the election, including the
  proposition 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)  Section 41.001(a), Election Code, does not apply to an
  election ordered under this section.
         Sec. 1018.302.  NOTICE OF ELECTION. (a)  The board shall
  give notice of an election under this subchapter by publishing once
  a week for two consecutive weeks a substantial copy of the election
  order in a newspaper with general circulation in the district.
         (b)  The first publication of the notice must appear not
  later than the 35th day before the date set for the election.
         Sec. 1018.303.  BALLOT. The ballot for an election under
  this subchapter must be printed to permit voting for or against the
  proposition:  "The dissolution of the Dallam-Hartley Counties
  Hospital District."
         Sec. 1018.304.  ELECTION RESULTS. (a)  If a majority of the
  votes in an election under this subchapter favor dissolution, the
  board shall find that the district is dissolved.
         (b)  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 date of the most recent election
  on the question of dissolution.
         Sec. 1018.305.  TRANSFER OF ADMINISTRATION OF ASSETS.
  (a)  If a majority of the votes in the election held under this
  subchapter favor dissolution, the board shall:
               (1)  transfer the land, buildings, improvements,
  equipment, and other assets that belong to the district to Dallam
  County or Hartley County or another governmental entity in Dallam
  County or Hartley 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.
         (b)  If the district makes the transfer under Subsection
  (a)(1), the county or entity assumes all debts and obligations of
  the district at the time of the transfer, and the district is
  dissolved.
         (c)  If Subsection (a)(1) does not apply and the board
  administers the property, assets, and debts of the district under
  Subsection (a)(2), the district is dissolved when all money has
  been disposed of and all district debts have been paid or settled.
         Sec. 1018.306.  IMPOSITION OF TAX AND RETURN OF SURPLUS
  TAXES. (a)  After the board 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.
         (b)  On the payment of all outstanding debts and obligations
  of the district, the board shall order the secretary to return to
  each district taxpayer the taxpayer's pro rata share of all unused
  tax money.
         (c)  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 shall direct the secretary
  to transmit the money to the appropriate county tax
  assessor-collector.
         Sec. 1018.307.  REPORT; DISSOLUTION ORDER. (a)  After the
  district has paid all district debts and has disposed of all
  district money and other assets as prescribed by this subchapter,
  the board shall file a written report with the Commissioners Courts
  of Dallam and Hartley Counties summarizing the board's actions in
  dissolving the district.
         (b)  Not later than the 10th day after the date the
  Commissioners Court of Dallam County receives the report and
  determines that the requirements of this subchapter have been
  fulfilled, the commissioners court shall enter an order approving
  dissolution of the district and releasing the board from any
  further duty or obligation as to Dallam County.
         (c)  Not later than the 10th day after the date the
  Commissioners Court of Hartley County receives the report and
  determines that the requirements of this subchapter have been
  fulfilled, the commissioners court shall enter an order approving
  dissolution of the district and releasing the board from any
  further duty or obligation as to Hartley County.
         (d)  Dissolution under this section is complete on entry of
  the later of the two orders described by Subsections (b) and (c).
         SECTION 6.  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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 310 passed the Senate on
  March 31, 2011, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 310 passed the House on
  May 20, 2011, by the following vote:  Yeas 149, Nays 0, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor