By: Duncan S.B. No. 2517
A BILL TO BE ENTITLED
AN ACT
relating to the dissolution of the Ballinger Memorial Hospital
District and the North Runnels County Hospital District and the
creation of the Runnels County Hospital District; granting the
authority to impose a tax and issue bonds; granting the power of
eminent domain.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. DISSOLUTION OF BALLINGER MEMORIAL HOSPITAL DISTRICT ON
CREATION OF RUNNELS COUNTY HOSPITAL DISTRICT
SECTION 1.01. Chapter 1004, Special District Local Laws
Code, is amended by adding Subchapter D-1 to read as follows:
SUBCHAPTER D-1. DISSOLUTION OF BALLINGER MEMORIAL HOSPITAL
DISTRICT ON CREATION OF RUNNELS COUNTY HOSPITAL DISTRICT
Sec. 1004.171. DISSOLUTION; ELECTION. (a) The board may
order an election on the question of the dissolution of the
district, creation of the Runnels County Hospital District,
transfer of the district's assets and obligations to the Runnels
County Hospital District, and assumption of the district's
outstanding debts by the Runnels County Hospital District.
(b) The board shall order the election if:
(1) the board receives a petition requesting an
election that is signed by at least 50 of the district's registered
voters; or
(2) the board receives notice that the board of
directors of the North Runnels County Hospital District intends to
order an election to dissolve the North Runnels County Hospital
District and create the Runnels County Hospital District under
Section 20c, Chapter 206, Acts of the 61st Legislature, Regular
Session, 1969.
(c) If the board intends to hold an election under this
subchapter, the board shall notify the board of directors of the
North Runnels County Hospital District and the Runnels County
Commissioners Court of that intention.
(d) The election held under this subchapter shall be held on
the same date as the election to dissolve the North Runnels County
Hospital District and create the Runnels County Hospital District
under Section 20c, Chapter 206, Acts of the 61st Legislature,
Regular Session, 1969, and the election in the portion of the county
not included in a hospital district to create the Runnels County
Hospital District. The board shall coordinate with the board of
directors of the North Runnels County Hospital District and the
Commissioners Court of Runnels County in setting the election date
under this section.
(e) The order calling the election must state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(f) Section 41.001, Election Code, does not apply to an
election ordered under this section.
Sec. 1004.172. NOTICE OF ELECTION. (a) The board shall
give notice of an election under this subchapter 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.
(b) The first publication must appear not later than the
35th day before the date set for the election.
Sec. 1004.173. BALLOT. The ballot for an election under
this subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the Ballinger Memorial Hospital
District and the creation of the Runnels County Hospital District,
providing for the imposition of an ad valorem tax at a rate not to
exceed ____ cents (insert any rate not to exceed 75 cents) on each
$100 valuation of taxable property in Runnels County, and providing
for the transfer to and assumption by the Runnels County Hospital
District of all outstanding bonds and other obligations issued for
hospital purposes by the Ballinger Memorial Hospital District,
Runnels County, and any part of a municipality located in Runnels
County, and the transfer of the existing Ballinger Memorial
Hospital District's assets to the Runnels County Hospital
District."
Sec. 1004.174. ELECTION RESULTS. (a) The board shall find
that the district is dissolved if:
(1) a majority of the votes in an election under this
subchapter favor dissolution of the district and creation of the
Runnels County Hospital District;
(2) a majority of the votes in an election held on the
same date under Section 20c, Chapter 206, Acts of the 61st
Legislature, Regular Session, 1969, favor dissolution of the North
Runnels County Hospital District and creation of the Runnels County
Hospital District; and
(3) a cumulative majority of the votes in all three
elections held on the question of creating the Runnels County
Hospital District favor creation of the district.
(b) If a majority of the votes in either election under
Subdivision (a)(1) or (2) do not favor dissolution of the district
and creation of the Runnels County Hospital District, or if a
cumulative majority of the votes in all three elections held on the
question of creating the Runnels County Hospital District do not
favor creation of the district, the board shall continue to
administer the district, and another election on the question of
dissolution under this subchapter may not be held before the first
anniversary of the date of the most recent election under this
subchapter to dissolve the district.
Sec. 1004.175. TRANSFER OR ADMINISTRATION OF ASSETS.
(a) If a majority of the votes in both elections under Sections
1004.174(a)(1) and (2) favor dissolution of the district and
creation of the Runnels County Hospital District, and a cumulative
majority of the votes in all three elections held on the question of
creating the Runnels County Hospital District favor creation of the
district, the board shall transfer the land, buildings,
improvements, equipment, and other assets belonging to the district
to the Runnels County Hospital District.
(b) On the date the district makes the transfer under
Subsection (a), the Runnels County Hospital District assumes all
debts and obligations of the district at the time of the transfer.
The district is dissolved at the time of the transfer and the board
is released from any further duty or obligation.
SECTION 1.02. On the dissolution of the Ballinger Memorial
Hospital District and the approval of the creation of the Runnels
County Hospital District, a reference in any law to the Ballinger
Memorial Hospital District means the Runnels County Hospital
District.
SECTION 1.03. (a) An election to dissolve the Ballinger
Memorial Hospital District and create the Runnels County Hospital
District must be held not later than the fifth anniversary of the
effective date of this Act.
(b) If the dissolution of the Ballinger Memorial Hospital
District and creation of the Runnels County Hospital District are
not approved at an election held not later than the fifth
anniversary of the effective date of this Act, Subchapter D-1,
Chapter 1004, Special District Local Laws Code, as added by this
article, expires.
ARTICLE 2. DISSOLUTION OF NORTH RUNNELS COUNTY HOSPITAL DISTRICT
ON CREATION OF RUNNELS COUNTY HOSPITAL DISTRICT
SECTION 2.01. Chapter 206, Acts of the 61st Legislature,
Regular Session, 1969, is amended by adding Section 20c to read as
follows:
Sec. 20c. (a) The board may order an election on the
question of the dissolution of the district, creation of the
Runnels County Hospital District, transfer of the district's assets
and obligations to the Runnels County Hospital District, and
assumption of the district's outstanding debts by the Runnels
County Hospital District.
(b) The board shall order the election if:
(1) the board receives a petition requesting an
election that is signed by at least 50 of the district's registered
voters; or
(2) the board receives notice that the board of
directors of the Ballinger Memorial Hospital District intends to
order an election to dissolve the Ballinger Memorial Hospital
District and create the Runnels County Hospital District under
Subchapter D-1, Chapter 1004, Special District Local Laws Code.
(c) If the board intends to hold an election under this
section, the board shall notify the board of directors of the
Ballinger Memorial Hospital District and the Runnels County
Commissioners Court of that intention. The election held under
this section shall be held on the same date as the election to
dissolve the Ballinger Memorial Hospital District and create the
Runnels County Hospital District under Subchapter D-1, Chapter
1004, Special District Local Laws Code, and the election in the
portion of the county not included in a hospital district to create
the Runnels County Hospital District. The board shall coordinate
with the board of directors of the Ballinger Memorial Hospital
District and the Commissioners Court of Runnels County in setting
the election date under this section.
(d) The order calling the election must state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(e) Section 41.001, Election Code, does not apply to an
election ordered under this section.
(f) The board shall give notice of an election under this
subchapter by publishing a substantial copy of the election order
in a newspaper with general circulation in the district once a week
for two consecutive weeks. The first publication must appear not
later than the 35th day before the date set for the election.
(g) The ballot for an election under this subchapter must be
printed to permit voting for or against the proposition: "The
dissolution of the North Runnels County Hospital District and the
creation of the Runnels County Hospital District, providing for the
imposition of an ad valorem tax at a rate not to exceed ____ cents
(insert any rate not to exceed 75 cents) on each $100 valuation of
taxable property in Runnels County, and providing for the transfer
to and assumption by the Runnels County Hospital District of all
outstanding bonds and other obligations issued for hospital
purposes by the North Runnels County Hospital District, Runnels
County, and any part of a municipality located in Runnels County,
and the transfer of the existing North Runnels County Hospital
District's assets to the Runnels County Hospital District."
(h) The board shall find that the district is dissolved if:
(1) a majority of the votes in an election under this
section favor dissolution of the district and creation of the
Runnels County Hospital District;
(2) a majority of the votes in an election held on the
same date under Subchapter D-1, Chapter 1004, Special District
Local Laws Code, favor dissolution of the Ballinger Memorial
Hospital District and creation of the Runnels County Hospital
District; and
(3) a cumulative majority of the votes in all three
elections held on the question of creating the Runnels County
Hospital District favor creation of the district.
(i) If a majority of the votes in either election under
Subdivision (h)(1) or (2) of this section do not favor dissolution
of the district and creation of the Runnels County Hospital
District, or if a cumulative majority of the votes in all three
elections held on the question of creating the Runnels County
Hospital District do not favor creation of the district, the board
shall continue to administer the district, and another election on
the question of dissolution under this section may not be held
before the first anniversary of the date of the most recent election
under this section to dissolve the district.
(j) If a majority of the votes in both elections under
Subdivisions (h)(1) and (2) of this section favor dissolution of
the district and creation of the Runnels County Hospital District,
and a cumulative majority of the votes in all three elections held
on the question of creating the Runnels County Hospital District
favor creation of the district, the board shall transfer the land,
buildings, improvements, equipment, and other assets belonging to
the district to the Runnels County Hospital District.
(k) On the date the district makes the transfer under
Subsection (j) of this section, the Runnels County Hospital
District assumes all debts and obligations of the district at the
time of the transfer. The district is dissolved at the time of the
transfer and the board is released from any further duty or
obligation.
SECTION 2.02. On the dissolution of the North Runnels
County Hospital District and the approval of the creation of the
Runnels County Hospital District, a reference in any law to the
North Runnels County Hospital District means the Runnels County
Hospital District.
SECTION 2.03. (a) An election to dissolve the North
Runnels County Hospital District and create the Runnels County
Hospital District must be held not later than the fifth anniversary
of the effective date of this Act.
(b) If the dissolution of the North Runnels County Hospital
District and creation of the Runnels County Hospital District are
not approved at an election held not later than the fifth
anniversary of the effective date of this Act, Section 20c, Chapter
206, Acts of the 61st Legislature, Regular Session, 1969, as added
by this article, expires.
ARTICLE 3. CREATION OF RUNNELS COUNTY HOSPITAL DISTRICT
SECTION 3.01. Subtitle A, Title 3, Special District Local
Laws Code, is amended by adding Chapter 1072 to read as follows:
CHAPTER 1072. RUNNELS COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1072.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "Director" means a member of the board.
(3) "District" means the Runnels County Hospital
District.
Sec. 1072.002. AUTHORITY FOR OPERATION. The Runnels County
Hospital District operates and is financed as provided by Section
9, Article IX, Texas Constitution, and by this chapter.
Sec. 1072.003. ESSENTIAL PUBLIC FUNCTION. The district is
a public entity performing an essential public function.
Sec. 1072.004. DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Runnels County,
Texas.
Sec. 1072.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The state may not be obligated for the support or
maintenance of the district.
Sec. 1072.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE.
The legislature may not make a direct appropriation for the
construction, maintenance, or improvement of a district facility.
[Sections 1072.007-1072.020 reserved for expansion]
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 1072.021. (a) The Commissioners Court of Runnels
County shall order an election for the registered voters of Runnels
County who do not reside in the Ballinger Memorial Hospital
District or the North Runnels County Hospital District on the
question of creating the Runnels County Hospital District if the
commissioners court receives notice that:
(1) the board of directors of the Ballinger Memorial
Hospital District intends to order an election to dissolve the
Ballinger Memorial Hospital District and create the Runnels County
Hospital District under Subchapter D-1, Chapter 1004; and
(2) the board of directors of the North Runnels County
Hospital District intends to order an election to dissolve the
North Runnels County Hospital District and create the Runnels
County Hospital District under Section 20c, Chapter 206, Acts of
the 61st Legislature, Regular Session, 1969.
(b) The Commissioners Court of Runnels County shall notify
the boards of directors of the Ballinger Memorial Hospital District
and the North Runnels County Hospital District that the
commissioners court intends to hold the election under this
section.
(c) The election held under this section shall be held on
the same date as the elections to dissolve the Ballinger Memorial
Hospital District and the North Runnels County Hospital District
and to create the Runnels County Hospital District. The
Commissioners Court of Runnels County shall coordinate with the
boards of directors of the Ballinger Memorial Hospital District and
the North Runnels County Hospital District in setting the election
date under this section.
(d) The order calling the election under this section must
state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(e) Section 41.001, Election Code, does not apply to an
election ordered under this section.
(f) The Commissioners Court of Runnels County shall give
notice of an election under this section by publishing a
substantial copy of the election order in a newspaper with general
circulation in Runnels County once a week for two consecutive
weeks. The first publication must appear not later than the 35th
day before the date set for the election.
(g) The ballot for an election under this section must be
printed to permit voting for or against the proposition: "The
creation of the Runnels County Hospital District, providing for the
imposition of an ad valorem tax at a rate not to exceed ___ cents
(insert any rate not to exceed 75 cents) on each $100 valuation of
taxable property in Runnels County.
(h) The Commissioners Court of Runnels County shall find
that the Runnels County Hospital District is created if:
(1) a majority of the votes in an election held on the
same date under Subchapter D-1, Chapter 1004, favor dissolution of
the Ballinger Memorial Hospital District and creation of the
Runnels County Hospital District;
(2) a majority of the votes in an election held on the
same date under Section 20c, Chapter 206, Acts of the 61st
Legislature, Regular Session, 1969, favor dissolution of the North
Runnels County Hospital District and creation of the Runnels County
Hospital District; and
(3) a cumulative majority of the votes held in the
election called by the commissioners court and in the elections
described by Subdivisions (1) and (2) favor creation of the Runnels
County Hospital District.
Sec. 1072.022. TEMPORARY DIRECTORS. (a) If the creation
of the district is approved at the elections held under Subchapter
D-1, Chapter 1004, Section 20c, Chapter 206, Acts of the 61st
Legislature, Regular Session, 1969, and Section 1072.021, the
following persons shall serve as temporary directors of the Runnels
County Hospital District:
(1) Lewis Bergman;
(2) Charles Brown;
(3) Mike Dankworth;
(4) Rodney Flanagan;
(5) Bill Hunter;
(6) Paul Sklenarik;
(7) Dewey Whitfield.
(b) The temporary board shall serve as the temporary
directors of the district until the initial elected directors take
office under Section 1072.025.
(c) A vacancy on the temporary board of directors shall be
filled by the Commissioners Court of Runnels County.
(d) To serve as a temporary director, a person must be:
(1) a resident of the district; and
(2) a qualified voter.
(e) An employee of the district may not serve as a temporary
director.
Sec. 1072.023. TEMPORARY OFFICERS. (a) The temporary
board shall elect a president and a vice president from among the
temporary directors.
(b) The temporary board shall appoint a secretary, who need
not be a temporary director.
(c) The temporary board shall fill a vacancy in a board
office for the remainder of the unexpired term.
Sec. 1072.024. ELECTION OF INITIAL ELECTED DIRECTORS.
(a) The temporary directors shall hold an election to elect seven
initial directors on the first uniform election date in May that
occurs after the date the district is created. One initial director
shall be elected from each commissioners precinct of Runnels County
and three initial directors shall be elected from the district at
large.
(b) The temporary directors may postpone the election under
Subsection (a) for not more than one year or until the next uniform
election date if the temporary directors determine that there is
not sufficient time to comply with the requirements of this section
or if the temporary directors determine that it is in the best
interests of the district to maintain the temporary directors for
another year.
(c) Notice of the election of the initial directors shall be
published at least once in a newspaper of general circulation in the
district in accordance with Section 4.003(a), Election Code.
Sec. 1072.025. INITIAL ELECTED DIRECTORS. (a) The
candidate receiving the highest number of votes from each
commissioners precinct of Runnels County is the initial elected
director for that precinct, and the three candidates receiving the
highest number of votes from the district at large are the initial
elected directors for the district at large.
(b) Initial elected directors serve three-year terms.
(c) To be a candidate for or to serve as an initial elected
director, a person must be:
(1) a resident of the district; and
(2) a qualified voter.
(d) An employee of the district may not serve as an initial
elected director.
Sec. 1072.026. INITIAL ELECTED OFFICERS. (a) The initial
elected board shall elect a president and a vice president from
among the initial elected directors.
(b) The initial elected board shall appoint a secretary, who
need not be an initial elected director.
(c) The initial elected board shall fill a vacancy in a
board office for the remainder of the unexpired term.
Sec. 1072.027. PROCEDURE FOR ELECTION OF PERMANENT
DIRECTORS. Not later than the date the terms of the initial elected
directors expire, the initial elected board shall adopt a procedure
for the election of directors under Section 1072.051. The
procedure must provide for appropriate representation of the
residents of the district and must provide for the first election of
permanent directors to occur on the first uniform election date in
May that occurs at the end of the initial directors' terms.
[Sections 1072.028-1072.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1072.051. BOARD ELECTION; TERM. (a) The board
consists of seven directors elected in the manner prescribed by the
initial directors under Section 1072.026.
(b) An election shall be held each year on the uniform
election date in May to elect the appropriate number of directors.
(c) Directors serve staggered three-year terms.
Sec. 1072.052. NOTICE. Notice of the directors' election
shall be published at least once in a newspaper with general
circulation in the district in accordance with Section 4.003(a),
Election Code.
Sec. 1072.053. QUALIFICATIONS FOR OFFICE. (a) To be a
candidate for or to serve as a director, a person must be:
(1) a resident of the district; and
(2) a qualified voter.
(b) An administrator or an employee of the district may not
serve as a director.
Sec. 1072.054. DIRECTOR'S BOND. (a) Before assuming the
duties of office, each director must execute a bond in the amount of
$5,000 payable to the district and conditioned on the faithful
performance of the director's duties.
(b) The bond shall be kept in the permanent records of the
district.
(c) The board may pay for a director's bond with district
money.
Sec. 1072.055. BOARD VACANCY. If a vacancy occurs in the
office of director, the remaining directors shall appoint a
director for the remainder of the unexpired term.
Sec. 1072.056. OFFICERS. (a) The board shall elect a
president and a vice president from among the directors.
(b) The board shall appoint a secretary, who need not be a
director.
(c) Each officer of the board serves a one-year term.
(d) The board shall fill a vacancy in a board office for the
remainder of the unexpired term.
Sec. 1072.057. COMPENSATION; REIMBURSEMENT. A director or
officer serves without compensation but may be reimbursed for
actual expenses incurred in the performance of official duties.
The expenses must be:
(1) reported in the district's records; and
(2) approved by the board.
Sec. 1072.058. VOTING REQUIREMENT. A concurrence of a
majority of the directors voting is necessary in matters relating
to district business.
Sec. 1072.059. DISTRICT ADMINISTRATOR; ADMINISTRATOR'S
BOND. (a) The board may appoint a qualified person as district
administrator.
(b) The district administrator serves at the will of the
board.
(c) The district administrator is entitled to compensation
determined by the board.
(d) Before assuming the duties of district administrator,
the administrator must execute a bond payable to the district in an
amount not less than $5,000, as determined by the board,
conditioned on the faithful performance of the administrator's
duties.
(e) The board may pay for the bond with district money.
Sec. 1072.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
Subject to the limitations prescribed by the board, the district
administrator shall:
(1) supervise the work and activities of the district;
and
(2) direct the general affairs of the district.
Sec. 1072.061. ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
(a) The board may appoint qualified persons as assistant district
administrator and attorney for the district.
(b) The assistant district administrator and attorney for
the district serve at the will of the board.
(c) The assistant district administrator and attorney for
the district are entitled to compensation determined by the board.
Sec. 1072.062. EMPLOYEES. (a) The district may employ
nurses, technicians, fiscal agents, accountants, architects,
additional attorneys, and other necessary employees.
(b) The board may delegate to the district administrator the
authority to employ persons for the district.
Sec. 1072.063. RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.
The board may spend district money, enter into agreements, and take
other necessary actions to recruit physicians and other persons to
serve as medical staff members or district employees. The actions
may include:
(1) advertising and marketing;
(2) paying travel, recruitment, and relocation
expenses;
(3) providing a loan or scholarship to a physician or a
person currently enrolled in health care education courses at an
institution of higher education who contracts to become a medical
staff member or district employee; or
(4) contracting with a full-time medical student or
other student in a health occupation who is enrolled in and in good
standing at an accredited medical school, college, or university to
pay the student's tuition or other expenses for the consideration
of the student agreeing to serve as an employee or independent
contractor for the district.
Sec. 1072.064. APPOINTMENT AND REMOVAL OF MEDICAL STAFF.
The board may:
(1) appoint to the medical staff any doctor the board
considers necessary for the efficient operation of the district;
(2) remove any doctor from the medical staff, after
due process, if the board considers the doctor's removal necessary
for the efficient operation of the district; and
(3) make temporary appointments to the medical staff
as the board considers necessary.
Sec. 1072.065. RETIREMENT BENEFITS. The board may provide
retirement benefits for district employees by:
(1) establishing or administering a retirement
program; or
(2) participating in:
(A) the Texas County and District Retirement
System; or
(B) another statewide retirement system in which
the district is eligible to participate.
[Sections 1072.066-1072.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1072.101. DISTRICT RESPONSIBILITY. The district has
full responsibility for operating hospital facilities and
providing medical and hospital care for the district's needy
residents.
Sec. 1072.102. MANAGEMENT, CONTROL, AND ADMINISTRATION.
The board shall manage, control, and administer the hospital system
and the money and resources of the district.
Sec. 1072.103. RULES. The board may adopt rules governing:
(1) the operation of the hospital and hospital system;
and
(2) the duties, functions, and responsibilities of
district staff and employees.
Sec. 1072.104. PURCHASING AND ACCOUNTING PROCEDURES. The
board may prescribe:
(1) the method of making purchases and expenditures by
and for the district; and
(2) accounting and control procedures for the
district.
Sec. 1072.105. PROVISION OF CERTAIN HEALTH SERVICES.
(a) The district may operate or provide for the operation of a
mobile emergency medical service.
(b) The district may operate or provide for home health
services, long-term care, skilled nursing care, intermediate
nursing care, or hospice care.
Sec. 1072.106. DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT. (a) The board shall determine:
(1) the type, number, and location of buildings
required to maintain an adequate hospital system; and
(2) the type of equipment necessary for hospital care.
(b) The board may:
(1) acquire property, facilities, and equipment for
the district for use in the hospital system;
(2) mortgage or pledge the property, facilities, or
equipment as security for payment of the purchase price;
(3) sell or otherwise dispose of property, facilities,
or equipment for the district; or
(4) lease hospital facilities for the district.
Sec. 1072.107. OPERATING AND MANAGEMENT CONTRACTS. The
board may enter into operating or management contracts relating to
hospital facilities for the district.
Sec. 1072.108. SERVICE CONTRACTS. (a) The board may
contract with a public or private hospital, a political subdivision
of the state, or a state or federal agency for the district to
provide a mobile emergency medical service or other health care
services needed to provide for the investigatory or welfare needs
of residents of the district.
(b) The board may contract with a person to receive or
supply the services the board considers necessary for the effective
operation of the district.
Sec. 1072.109. EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in property located in district territory if the
interest is necessary for the district to exercise the rights or
authority conferred by this chapter.
(b) The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except that the
district is not required to deposit with the trial court money or a
bond as provided by Section 21.021(a), Property Code.
(c) In a condemnation proceeding brought by the district,
the district is not required to:
(1) pay in advance or provide bond or other security
for costs in the trial court;
(2) provide bond for the issuance of a temporary
restraining order or a temporary injunction; or
(3) provide a bond for costs or a supersedeas bond on
an appeal or writ of error.
Sec. 1072.110. COST OF RELOCATING OR ALTERING PROPERTY. In
exercising the power of eminent domain, if the board requires
relocating, raising, lowering, rerouting, changing the grade, or
altering the construction of any railroad, highway, pipeline, or
electric transmission and electric distribution, telegraph, or
telephone line, conduit, pole, or facility, the district shall pay
the actual cost of that activity to provide a comparable
replacement, without enhancement of facilities, after deducting
the net salvage value derived from the old facility.
Sec. 1072.111. GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust for any
purpose and under any direction, limitation, or provision in
writing by the donor that is consistent with the proper management
of the district.
Sec. 1072.112. PAYMENT FOR TREATMENT; PROCEDURES.
(a) When a person who resides in the district is admitted as a
patient to a district facility, the district administrator may have
an inquiry made into the financial circumstances of:
(1) the patient; and
(2) a relative of the patient who is legally
responsible for the patient's support.
(b) To the extent that the patient or a relative of the
patient who is legally responsible for the patient's support cannot
pay for care and treatment provided by the district, the district
shall supply the care and treatment without charging the patient or
the patient's relative.
(c) On determining that the patient or a relative legally
responsible for the patient's support can pay for all or part of the
care and treatment provided by the district, the district
administrator shall report that determination to the board, and the
board shall issue an order directing the patient or the relative to
pay the district a specified amount each week. The amount must be
based on the person's ability to pay.
(d) The district administrator may collect money owed to the
district from the patient's estate or from that of a relative
legally responsible for the patient's support in the manner
provided by law for the collection of expenses in the last illness
of a deceased person.
(e) If there is a dispute relating to a person's ability to
pay or if the district administrator has any doubt concerning a
person's ability to pay, the board shall call witnesses, hear and
resolve the question, and issue a final order. The order may be
appealed to a district court in the county in which the district is
located. The substantial evidence rule applies to an appeal under
this subsection.
Sec. 1072.113. REIMBURSEMENT FOR SERVICES. (a) The board
shall require a county, municipality, or public hospital located
outside of the district to reimburse the district for the
district's care and treatment of a sick or injured person of that
county, municipality, or hospital, as provided by Chapter 61,
Health and Safety Code.
(b) The board shall require the sheriff of Runnels County to
reimburse the district for the district's care and treatment of a
person who is confined in a jail facility of Runnels County and is
not a resident of the district.
(c) On behalf of the district, the board may contract with
the state or federal government for that government to reimburse
the district for treatment of a sick or injured person.
Sec. 1072.114. NONPROFIT CORPORATION. (a) The district
may create and sponsor a nonprofit corporation under the Business
Organizations Code and may contribute money to or solicit money for
the corporation.
(b) A corporation created under this section may use money
contributed by the district only to provide health care or other
services the district is authorized to provide under this chapter.
(c) The corporation may invest the corporation's money in
any manner in which the district may invest the district's money,
including investing money as authorized by Chapter 2256, Government
Code.
(d) The board shall establish controls to ensure that the
corporation uses its money as required by this section.
Sec. 1072.115. AUTHORITY TO SUE AND BE SUED. The board may
sue and be sued on behalf of the district.
Sec. 1072.116. CONSTRUCTION CONTRACTS; ADVERTISING FOR
CERTAIN CONSTRUCTION CONTRACTS. (a) The board may enter into a
construction contract on the district's behalf.
(b) The board may enter into a construction contract only
after competitive bidding as provided by Subchapter B, Chapter 271,
Local Government Code, if the amount of the contract is greater than
the amount provided by Section 271.024 of that code.
[Sections 1072.117-1072.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1072.151. BUDGET. (a) The district administrator
shall prepare a proposed annual budget for the district.
(b) The proposed budget must contain a complete financial
statement, including a statement of:
(1) the outstanding obligations of the district;
(2) the amount of cash on hand to the credit of each
fund of the district;
(3) the amount of money received by the district from
all sources during the previous year;
(4) the amount of money available to the district from
all sources during the ensuing year;
(5) the amount of the balances expected at the end of
the year in which the budget is being prepared;
(6) the estimated amount of revenues and balances
available to cover the proposed budget; and
(7) the estimated tax rate required.
Sec. 1072.152. NOTICE; HEARING; ADOPTION OF BUDGET.
(a) The board shall hold a public hearing on the proposed budget.
(b) The board shall publish notice of the hearing in a
newspaper with general circulation in the district not later than
the 10th day before the date of the hearing.
(c) Any district resident is entitled to be present and
participate at the hearing.
(d) At the conclusion of the hearing, the board shall adopt
a budget by acting on the budget proposed by the district
administrator. The board may make a change in the proposed budget
that the board determines to be in the interests of the taxpayers.
(e) The budget is effective only after adoption by the
board.
Sec. 1072.153. AMENDMENT OF BUDGET. After the budget is
adopted, the budget may be amended on the board's approval.
Sec. 1072.154. FISCAL YEAR. (a) The district operates
according to a fiscal year established by the board.
(b) The fiscal year may not be changed:
(1) during a period in which revenue bonds of the
district are outstanding; or
(2) more than once in a 24-month period.
Sec. 1072.155. ANNUAL AUDIT. The board shall have an annual
audit made of the financial condition of the district.
Sec. 1072.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT
RECORDS. The annual audit and other district records are open to
inspection during regular business hours at the principal office of
the district.
Sec. 1072.157. FINANCIAL REPORT. As soon as practicable
after the close of each fiscal year, the district administrator
shall prepare for the board a sworn statement of the amount of
district money and an account of the disbursement of that money.
Sec. 1072.158. SHORT-TERM FINANCING. The district may
borrow money through short-term financing.
Sec. 1072.159. DEBT LIMITATION. Except as provided by
Chapter 1207, Government Code, and Sections 1072.116, 1072.201, and
1072.204, the district may not incur a debt payable from district
revenue other than revenue available in the current fiscal year and
the immediately following fiscal year of the district.
Sec. 1072.160. DEPOSITORY. (a) The board shall select at
least one bank to serve as a depository for district money.
(b) The board may solicit bids from local financial
institutions to determine which institution may serve as a
depository for district money.
(c) District money, other than money invested as provided by
Section 1072.161 and money transmitted to a bank for payment of
bonds or obligations issued or assumed by the district, shall be
deposited as received with the depository bank and shall remain on
deposit. This subsection does not limit the board's power to place
part of the district's money on time deposit or to purchase
certificates of deposit.
(d) The district may deposit money with a bank in an amount
that exceeds the maximum amount secured by the Federal Deposit
Insurance Corporation only if the bank first executes a bond or
other security in an amount sufficient to secure from loss the
district money that exceeds the amount secured by the Federal
Deposit Insurance Corporation.
Sec. 1072.161. RESTRICTION ON INVESTMENT. The board may
invest operating, depreciation, or building reserves only in funds
or securities specified by Chapter 2256, Government Code.
[Sections 1072.162-1072.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 1072.201. GENERAL OBLIGATION BONDS. If authorized by
an election, the board may issue and sell general obligation bonds
in the name and on the faith and credit of the district to:
(1) purchase, construct, acquire, repair, or renovate
buildings or improvements;
(2) equip buildings or improvements for hospital
purposes; or
(3) acquire and operate a mobile emergency medical
service.
Sec. 1072.202. TAX TO PAY GENERAL OBLIGATION BONDS.
(a) At the time general obligation bonds are issued by the
district under Section 1072.201, the board shall impose an ad
valorem tax in an amount sufficient to create an interest and
sinking fund to pay the principal of and interest on the bonds as
the bonds mature.
(b) The tax required by this section together with any other
tax the district imposes in any year may not exceed the limit
approved by the voters at the election authorizing the imposition
of taxes.
Sec. 1072.203. GENERAL OBLIGATION BOND ELECTION. (a) The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the voters voting in an election held
for that purpose.
(b) The board may order a bond election. The order calling
the election must specify:
(1) the nature and date of the election;
(2) the hours during which the polls will be open;
(3) the location of polling places;
(4) the amounts of the bonds to be authorized; and
(5) the maximum maturity of the bonds.
(c) Notice of a bond election must be given as provided by
Chapter 1251, Government Code.
(d) The board shall declare the results of the election.
Sec. 1072.204. REVENUE BONDS. (a) The board may issue
revenue bonds to:
(1) acquire, purchase, construct, repair, renovate,
or equip buildings or improvements for hospital purposes;
(2) acquire sites to be used for hospital purposes; or
(3) acquire and operate a mobile emergency medical
service to assist the district in carrying out its hospital
purposes.
(b) The bonds must 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.
(c) The bonds may be additionally secured by a mortgage or
deed of trust lien on all or part of the district property.
(d) The 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 county
hospital authorities.
Sec. 1072.205. MATURITY. District bonds must mature not
later than 40 years after the date of their issuance.
Sec. 1072.206. EXECUTION OF BONDS. (a) The board
president shall execute district bonds in the district's name.
(b) The board secretary shall countersign the bonds in the
manner provided by Chapter 618, Government Code.
Sec. 1072.207. BONDS NOT SUBJECT TO TAXATION. The
following are not subject to taxation by the state or by a political
subdivision of the state:
(1) bonds issued by the district;
(2) any transaction relating to the bonds; and
(3) profits made in the sale of the bonds.
[Sections 1072.208-1072.250 reserved for expansion]
SUBCHAPTER F. AD VALOREM TAX
Sec. 1072.251. IMPOSITION OF AD VALOREM TAX. (a) The
board shall impose a tax on all property in the district subject to
hospital district taxation.
(b) The tax may be used to pay:
(1) indebtedness issued or assumed by the district;
and
(2) the maintenance and operating expenses of the
district.
(c) The district may not impose a tax to pay the principal of
or interest on revenue bonds issued under this chapter.
Sec. 1072.252. TAX RATE. (a) The board may impose an
annual tax at a rate not to exceed the limit approved by the voters
at the election authorizing the imposition of a tax.
(b) The tax rate on all taxable property in the district for
all purposes may not exceed 75 cents on each $100 valuation of the
property according to the most recent certified tax appraisal roll
of the district.
(c) In setting the tax rate, the board shall consider
district income from sources other than taxation.
Sec. 1072.253. TAX ASSESSOR-COLLECTOR. 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.
[Sections 1072.254-1072.300 reserved for expansion]
SUBCHAPTER G. DISSOLUTION
Sec. 1072.301. DISSOLUTION; ELECTION. (a) The district
may be dissolved only on approval of a majority of the 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 district's registered voters.
(d) The order calling the election must state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(e) Section 41.001, Election Code, does not apply to an
election ordered under this section.
Sec. 1072.302. NOTICE OF ELECTION. (a) The board shall
give notice of an election under this subchapter 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.
(b) The first publication must appear not later than the
35th day before the date set for the election.
Sec. 1072.303. BALLOT. The ballot for an election under
this subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the North Runnels County Hospital
District."
Sec. 1072.304. ELECTION RESULTS. (a) If a majority of the
votes in an election under this subchapter favor dissolution, the
board shall order that the district be dissolved.
(b) If a majority of the votes in an election under this
subchapter 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 to dissolve the district.
Sec. 1072.305. TRANSFER OR ADMINISTRATION OF ASSETS.
(a) If a majority of the votes in an election under this subchapter
favor dissolution, the board shall:
(1) transfer the land, buildings, improvements,
equipment, and other assets belonging to the district to Runnels
County or another governmental entity in Runnels County; or
(2) administer the property, assets, and debts of the
district until all money has been disposed of and all district debts
have been paid or settled.
(b) If the district makes a transfer under Subsection
(a)(1), the county or governmental entity assumes all debts and
obligations of the district at the time of the transfer. The
district is dissolved at the time of the transfer.
(c) If the district 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. 1072.306. IMPOSITION OF TAX AND RETURN OF SURPLUS
TAXES. (a) After the board determines 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 funds to the county tax assessor-collector.
Sec. 1072.307. REPORT; DISSOLUTION ORDER. (a) After the
district has paid all its debts and has disposed of all its money
and other assets as prescribed by this subchapter, the board shall
file a written report with the Commissioners Court of Runnels
County summarizing the board's actions in dissolving the district.
(b) Not later than the 10th day after the date the
Commissioners Court of Runnels County receives the report and
determines that the requirements of this subchapter have been
fulfilled, the commissioners court shall enter an order dissolving
the district and releasing the board from any further duty or
obligation.
SECTION 3.02. The members of the board of directors of the
Runnels County Hospital District elected at the first election held
under Section 1072.051, Special District Local Laws Code, as added
by this Act, shall draw lots to determine the terms each director
serves. Three directors shall serve two-year terms and four
directors shall serve three-year terms. Successor directors shall
serve three-year terms.
SECTION 3.03. If the creation of the Runnels County
Hospital District is not approved at an election held not later than
the fifth anniversary of the effective date of this Act, Chapter
1072, Special District Local Laws Code, as added by this article,
expires.
ARTICLE 4. EFFECTIVE DATE
SECTION 4.01. 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, 2009.