Texas 2011 - 82nd Regular

Texas House Bill HB850 Compare Versions

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1	1	By: Craddick (Senate Sponsor - Duncan) H.B. No. 850
2	2	(In the Senate - Received from the House March 31, 2011;
3	3	May 4, 2011, read first time and referred to Committee on
4	4	Intergovernmental Relations; May 19, 2011, reported favorably by
5	5	the following vote: Yeas 5, Nays 0; May 19, 2011, sent to
6	6	printer.)
7	7
8	8
9	9	A BILL TO BE ENTITLED
10	10	AN ACT
11	11	relating to the Rankin County Hospital District.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 3, Chapter 182, Acts of the 60th
14	14	Legislature, Regular Session, 1967, is amended to read as follows:
15	15	Sec. 3. BOARD [CREATION OF DIRECTORS]. (a) [Within 10 days
16	16	after such election is held, the commissioners court in such county
17	17	shall convene and canvass the returns of the election and if a
18	18	majority of qualified property taxpaying electors voting at said
19	19	election vote in favor of the proposition, the court shall so find
20	20	and declare the hospital district established and created.] The
21	21	[management and control of the district is vested in a] board of
22	22	directors [which] consists of five members elected from the
23	23	district at large. Directors serve staggered two-year terms unless
24	24	four-year terms are established under Section 285.081, Health and
25	25	Safety Code.
26	26	(b) A person may not be elected or appointed as a director
27	27	unless the person is:
28	28	(1) a resident of the district; and
29	29	(2) at least 21 years of age.
30	30	(c) An employee of the district may not serve as a director
31	31	[, to be elected by the qualified electors who own taxable property
32	32	within the district and who have duly rendered that property for
33	33	taxation. To qualify for the election to the board, a person must:
34	34	[1. be at least 21 years of age;
35	35	[2. have been a resident of the district for at least two
36	36	years;
37	37	[3. be a qualified voter;
38	38	[4. own taxable property within the district and have duly
39	39	rendered that property for taxation;
40	40	[5. shall not be an officer of any political subdivision or
41	41	the State of Texas or the County of Upton, whether such office be
42	42	elective or by appointment].
43	43	(d) Before assuming the duties of the office of director,
44	44	each [Not less than 15 nor more than 25 days after the district is
45	45	declared established and created the commissioners court shall call
46	46	an election for the five directors who will serve as the district's
47	47	first board of directors, this election to be held on a date not
48	48	more than 30 days after the day of the passage of the commissioners
49	49	court order calling same but on such date as will permit publication
50	50	of an election notice in a newspaper of general circulation in the
51	51	district one time not less than 14 days prior to such election date.
52	52	Any candidate desiring to be voted upon as a first director shall,
53	53	no later than five days subsequent to the day of passage of the
54	54	commissioners court order calling the election, present a petition
55	55	to that court signed by such candidate requesting that his name be
56	56	placed upon the official ballot. The regular term of each director
57	57	shall be for two years but at the first called election, the three
58	58	directors receiving the highest vote at such election shall serve
59	59	for two years and the other two directors shall serve for one year.
60	60	The first year terms shall be ended on the date of the first annual
61	61	elections as hereinafter provided. Each] member of the board of
62	62	directors shall [qualify by executing the constitutional oath of
63	63	office and shall] execute a [good and sufficient commercial] bond
64	64	for $1,000 payable to the [said] district conditioned upon the
65	65	faithful performance of the director's [his] duties, and such
66	66	[oaths and] bonds shall be deposited with the depository bank of the
67	67	district for safekeeping. The cost of this bond shall be an expense
68	68	of the hospital district.
69	69	(e) The board of directors shall elect from among its
70	70	members a president and vice president [organize by election a
71	71	chairman, who shall preside; or in his absence a chairman pro tem
72	72	shall preside; and the administrator or any member of the board may
73	73	be appointed secretary]. The board shall appoint a secretary, who
74	74	need not be a director.
75	75	(f) A [Any three members of the board of directors shall
76	76	constitute a quorum and a] concurrence of three directors is [shall
77	77	be] sufficient in all matters pertaining to the business of the
78	78	district. [The board shall require the secretary to keep suitable
79	79	records of all proceedings of each meeting of the board. Such
80	80	records shall be read and signed after each meeting by the chairman
81	81	or the member presiding, and attested by the secretary. The board
82	82	shall have a seal, on which shall be engraved the name of the
83	83	hospital district; and said seal shall be kept by the secretary and
84	84	used in authentication of all acts of the board.]
85	85	(g) All district records, including books, accounts,
86	86	notices, minutes, and all other matters of the district and the
87	87	operation of its facilities, shall be:
88	88	(1) maintained at the district office; and
89	89	(2) open to public inspection at the district office
90	90	at all reasonable hours.
91	91	(h) All vacancies in the office of director shall be filled
92	92	by appointment of the remainder of the board of directors until the
93	93	next election for directors and at such election the directors
94	94	shall be elected for the unexpired term.
95	95	(i) Unless four-year terms are established under Section
96	96	285.081, Health and Safety Code, a [A] regular election of
97	97	directors shall be held on the uniform election date in May of each
98	98	year to elect the appropriate number of directors. Notice of the
99	99	[first Saturday of April of each year and notice of such] election
100	100	shall be published in accordance with Section 4.003, Election Code,
101	101	in a newspaper of general circulation in the county [one time at
102	102	least 30 days prior to the date of election. Any person desiring
103	103	his name to be printed on the ballot as a candidate for director
104	104	shall file an application to have his name placed on the ballot with
105	105	the secretary of the board of directors of the district. Such
106	106	application shall be filed with the secretary at least 25 days prior
107	107	to the date of the election].
108	108	SECTION 2. Section 4, Chapter 182, Acts of the 60th
109	109	Legislature, Regular Session, 1967, is amended to read as follows:
110	110	Sec. 4. ADMINISTRATOR. (a) The board may appoint a
111	111	qualified person as district administrator.
112	112	(b) The district administrator serves at the will of the
113	113	board and receives the compensation determined by the board. [The
114	114	board shall appoint a general manager, to be known as the
115	115	administrator of the hospital district. The administrator shall
116	116	hold office at the pleasure of the board and shall receive such
117	117	compensation as may be fixed by the board.] The administrator shall
118	118	be subject to removal at any time by the board.
119	119	(c) The administrator shall, before entering into the
120	120	discharge of the administrator's [his] duties, execute a bond
121	121	payable to the district, in the amount of not less than $10,000
122	122	conditioned that the administrator [he] shall well and faithfully
123	123	perform the duties required [of him], and containing such other
124	124	conditions as the board may require. The board may pay for the bond
125	125	with district money.
126	126	(d) The administrator shall perform all duties which may be
127	127	required of the administrator [him] by the board, and shall
128	128	supervise all of the work and activities of the district and have
129	129	general direction of the affairs of the district within such
130	130	limitations as may be prescribed by the board. [Said administrator
131	131	shall not be a member of the board and shall be a qualified
132	132	practitioner of medicine or be specifically trained for work of
133	133	such character.]
134	134	(e) The board of directors, with the approval of the
135	135	commissioners court, shall be authorized to contract with any
136	136	county other than Upton County for care and treatment of the
137	137	county's sick, diseased and injured persons, and with the state and
138	138	agencies of the federal government for the care and treatment of
139	139	such persons for whom the state and such agencies of the federal
140	140	government are responsible. Further, under the same conditions,
141	141	the board of directors may enter into such contracts with the state
142	142	and federal government as may be necessary to establish or continue
143	143	a retirement program for the benefit of its employees.
144	144	(f) The board of directors may in addition to retirement
145	145	programs authorized by this Act establish such other retirement
146	146	program for the benefit of its employees as it deems necessary and
147	147	advisable.
148	148	SECTION 3. Section 7, Chapter 182, Acts of the 60th
149	149	Legislature, Regular Session, 1967, is amended to read as follows:
150	150	Sec. 7. [AUTHORIZATION OF] BONDS. (a) The board of
151	151	directors may [shall have the power and authority to] issue and sell
152	152	as the obligations of such hospital district, and in the name and
153	153	upon the faith and credit of such hospital district, general
154	154	obligation bonds for the purchase, construction, acquisition,
155	155	repair or renovation of buildings and improvements and equipping
156	156	the same for hospital purposes and for any or all of such purposes.
157	157	(b) At the time general obligation bonds are issued by the
158	158	district, the board shall impose an ad valorem [; provided, that a
159	159	sufficient] tax at a rate sufficient [shall be levied] to create an
160	160	interest and sinking fund to pay the principal of and interest on
161	161	the bonds as the bonds mature. Such [interest and principal as same
162	162	matures provided said] tax together with any other taxes levied for
163	163	said district shall not exceed 75 cents per $100 valuation of
164	164	taxable property in the district in any one year.
165	165	(c) The board's presiding officer shall execute the general
166	166	obligation bonds in the district's name. The board secretary shall
167	167	countersign the bonds.
168	168	(d) The district may issue general obligation bonds only if
169	169	the bonds are [Such bonds shall be executed in the name of the
170	170	hospital district and on its behalf by the chairman of the board of
171	171	directors and countersigned by the secretary of the board of
172	172	directors, and shall be subject to the same requirements in the
173	173	matter of approval thereof by the Attorney General of the State of
174	174	Texas and the registration thereof by the Comptroller of Public
175	175	Accounts of the State of Texas as are by law provided. Upon the
176	176	approval of such bonds by the Attorney General of Texas the same
177	177	shall be incontestable for any cause. No bonds shall be issued by
178	178	such hospital district (except refunding bonds) until] authorized
179	179	by a majority of the district voters [vote of the legally qualified
180	180	property taxpaying voters, residing in such hospital district,]
181	181	voting at an election [called and] held for such purpose. The board
182	182	may order the election on its own motion. The order calling the
183	183	election must [Such election may be called by the board of directors
184	184	of its own motion, shall] specify the place or places where the
185	185	election shall be held, the presiding officers thereof, the purpose
186	186	for which the bonds are to be issued, the amount of the bonds to be
187	187	authorized [thereof], maximum interest rate, [(not to exceed six
188	188	percent per annum)] and the maximum maturity date of such bonds (not
189	189	to exceed 40 years from their date of issuance). Notice of election
190	190	shall be given by publishing a substantial copy of the order calling
191	191	the election in a newspaper of general circulation in such district
192	192	once a week for two consecutive weeks prior to the date of election,
193	193	the date of the first publication being at least 20 full days prior
194	194	to the date set for the election. The costs of such election shall
195	195	be paid by the hospital district.
196	196	(e) The board may, without an election, issue refunding
197	197	bonds to refund outstanding bonds issued or assumed by the
198	198	district. A refunding bond may be:
199	199	(1) sold, with the proceeds of the refunding bond
200	200	applied to the payment of the bonds to be refunded; or
201	201	(2) exchanged wholly or partly for not less than a
202	202	similar amount of outstanding bonds and the unpaid matured interest
203	203	on the bonds.
204	204	(f) The board may issue revenue bonds to:
205	205	(1) purchase, construct, acquire, repair, or renovate
206	206	buildings or improvements;
207	207	(2) equip buildings or improvements for hospital
208	208	purposes; or
209	209	(3) acquire real property for hospital purposes.
210	210	(g) Revenue bonds must be payable from and secured by a
211	211	pledge of all or part of the revenue derived from the operation of
212	212	the district's hospital system. Revenue bonds may be additionally
213	213	secured by a mortgage or deed of trust on all or part of district
214	214	property. Revenue bonds must be issued in the manner provided by
215	215	Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
216	216	Health and Safety Code, for issuance of revenue bonds by a county
217	217	hospital authority.
218	218	(h) In addition to the authority to issue general obligation
219	219	and revenue bonds under this section, the board may provide for the
220	220	security and payment of district bonds from a pledge of a
221	221	combination of ad valorem taxes as authorized by Subsection (b) of
222	222	this section and revenue and other sources as authorized by
223	223	Subsection (g) of this section.
224	224	(i) The district may use the proceeds of bonds issued under
225	225	this section to pay:
226	226	(1) any expense the board determines is reasonable and
227	227	necessary to issue, sell, and deliver the bonds;
228	228	(2) interest payments on the bonds during a period of
229	229	acquisition or construction of a project or facility to be provided
230	230	through the bonds, not to exceed five years;
231	231	(3) costs related to the operation and maintenance of
232	232	a project or facility to be provided through the bonds:
233	233	(A) during an estimated period of acquisition or
234	234	construction, not to exceed five years; and
235	235	(B) for one year after the project or facility is
236	236	acquired or constructed;
237	237	(4) costs related to the financing of the bond funds,
238	238	including debt service reserve and contingency funds;
239	239	(5) costs related to the bond issuance;
240	240	(6) costs related to the acquisition of land or
241	241	interests in land for a project or facility to be provided through
242	242	the bonds; and
243	243	(7) construction costs of a project or facility to be
244	244	provided through the bonds, including the payment of related
245	245	professional services and expenses. [In the manner hereinabove
246	246	provided, the bonds of such hospital district may, without the
247	247	necessity of any election therefor, be issued for the purpose of
248	248	refunding and paying off any bonded indebtedness theretofore
249	249	assumed by such hospital district; such refunding bonds may be sold
250	250	and the proceeds thereof applied to the payment of any such
251	251	outstanding bonds or may be exchanged in whole or in part for not
252	252	less than a like amount of said outstanding bonds and interest
253	253	matured thereon, but unpaid; provided the average interest cost per
254	254	annum on the refunding bonds, computed in accordance with
255	255	recognized standard bond interest cost per annum so computed, upon
256	256	the bonds to be discharged out of the proceeds of the refunding
257	257	bonds, unless the total interest cost on the refunding bonds,
258	258	computed to their respective maturity dates, is less than the total
259	259	interest so computed on the bonds to be discharged out of such
260	260	proceeds. In the foregoing computations, any premium or premiums
261	261	required to be paid upon the bonds to be refunded as a condition to
262	262	payment in advance of their stated maturity dates shall be taken
263	263	into account as an addition to the net interest cost to the hospital
264	264	district of the refunding bonds.]
265	265	SECTION 4. Chapter 182, Acts of the 60th Legislature,
266	266	Regular Session, 1967, is amended by adding Section 7A to read as
267	267	follows:
268	268	Sec. 7A. AUTHORITY TO BORROW MONEY. (a) The board may
269	269	borrow money at a rate not to exceed the maximum annual percentage
270	270	rate allowed by law for district obligations at the time the loan is
271	271	made.
272	272	(b) To secure a loan, the board may pledge:
273	273	(1) district revenue that is not pledged to pay the
274	274	district's bonded indebtedness;
275	275	(2) tax revenue to be collected by the district during
276	276	the 12-month period following the date of the pledge that is not
277	277	pledged to pay the principal of or interest on district bonds; or
278	278	(3) district bonds that have been authorized but not
279	279	sold.
280	280	(c) A loan for which taxes or bonds are pledged must mature
281	281	not later than the first anniversary of the date the loan is made. A
282	282	loan for which district revenue is pledged must mature not later
283	283	than the fifth anniversary of the date the loan is made.
284	284	SECTION 5. Section 10, Chapter 182, Acts of the 60th
285	285	Legislature, Regular Session, 1967, is amended to read as follows:
286	286	Sec. 10. DISTRICT DEPOSITORY. (a) The board of directors of
287	287	the district shall select [name] one or more banks [within the
288	288	district] to serve as a depository for [the funds of the] district
289	289	money. [All such funds shall, as derived and collected, be
290	290	immediately deposited with such depository bank or banks except
291	291	that sufficient funds shall be remitted to the bank or banks for the
292	292	payment of principal of and interest on the outstanding bonds of the
293	293	district or other obligations assumed by it and in time that such
294	294	money may be received by said bank or banks of payment on or prior to
295	295	the date of maturity of such principal and interest so to be paid.]
296	296	To the extent that money [funds] in a [the] depository bank is [or
297	297	banks are] not insured by the Federal Deposit Insurance
298	298	Corporation, the money must [they shall] be secured in the manner
299	299	provided by law for security of county funds. Membership on the
300	300	board of directors of an officer or director of a bank shall not
301	301	disqualify such bank from being designated as a depository.
302	302	(b) The board may invest operating, depreciation, or
303	303	building reserves only in funds or securities specified by Chapter
304	304	2256, Government Code.
305	305	SECTION 6. Section 13, Chapter 182, Acts of the 60th
306	306	Legislature, Regular Session, 1967, is amended to read as follows:
307	307	Sec. 13. METHODS AND PROCEDURES; CONSTRUCTION CONTRACTS.
308	308	(a) The board may prescribe the method of making purchases and
309	309	expenditures by and for the district.
310	310	(b) The board may prescribe accounting and control
311	311	procedures for the district.
312	312	(c) The board may enter into purchase or construction
313	313	contracts on behalf of the district; however, the board may enter
314	314	into construction [or purchase] contracts that involve spending
315	315	more than the amount provided by Section 271.024, Local Government
316	316	Code, [$10,000] only after advertising as provided by Subchapter B,
317	317	Chapter 271 [Chapter 252], Local Government Code.
318	318	(d) Chapter 2253, Government Code [Article 5160, Revised
319	319	Statutes], applies to construction contracts let by the district.
320	320	SECTION 7. This Act takes effect immediately if it receives
321	321	a vote of two-thirds of all the members elected to each house, as
322	322	provided by Section 39, Article III, Texas Constitution. If this
323	323	Act does not receive the vote necessary for immediate effect, this
324	324	Act takes effect September 1, 2011.
325	325	* * * * *