Texas 2011 - 82nd Regular

Texas Senate Bill SB559 Compare Versions

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1	1	By: Duncan S.B. No. 559
2	2	(Craddick)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the Rankin County Hospital District.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 3, Chapter 182, Acts of the 60th
10	10	Legislature, Regular Session, 1967, is amended to read as follows:
11	11	Sec. 3. BOARD [CREATION OF DIRECTORS]. (a) [Within 10
12	12	days after such election is held, the commissioners court in such
13	13	county shall convene and canvass the returns of the election and if
14	14	a majority of qualified property taxpaying electors voting at said
15	15	election vote in favor of the proposition, the court shall so find
16	16	and declare the hospital district established and created.] The
17	17	[management and control of the district is vested in a] board of
18	18	directors [which] consists of five members elected from the
19	19	district at large. Directors serve staggered two-year terms unless
20	20	four-year terms are established under Section 285.081, Health and
21	21	Safety Code.
22	22	(b) A person may not be elected or appointed as a director
23	23	unless the person is:
24	24	(1) a resident of the district; and
25	25	(2) at least 21 years of age.
26	26	(c) An employee of the district may not serve as a
27	27	director[, to be elected by the qualified electors who own taxable
28	28	property within the district and who have duly rendered that
29	29	property for taxation. To qualify for the election to the board, a
30	30	person must:
31	31	[1. be at least 21 years of age;
32	32	[2. have been a resident of the district for at least two
33	33	years;
34	34	[3. be a qualified voter;
35	35	[4. own taxable property within the district and have duly
36	36	rendered that property for taxation;
37	37	[5. shall not be an officer of any political subdivision or
38	38	the State of Texas or the County of Upton, whether such office be
39	39	elective or by appointment].
40	40	(d) Before assuming the duties of the office of director,
41	41	each [Not less than 15 nor more than 25 days after the district is
42	42	declared established and created the commissioners court shall call
43	43	an election for the five directors who will serve as the district's
44	44	first board of directors, this election to be held on a date not
45	45	more than 30 days after the day of the passage of the commissioners
46	46	court order calling same but on such date as will permit publication
47	47	of an election notice in a newspaper of general circulation in the
48	48	district one time not less than 14 days prior to such election date.
49	49	Any candidate desiring to be voted upon as a first director shall,
50	50	no later than five days subsequent to the day of passage of the
51	51	commissioners court order calling the election, present a petition
52	52	to that court signed by such candidate requesting that his name be
53	53	placed upon the official ballot. The regular term of each director
54	54	shall be for two years but at the first called election, the three
55	55	directors receiving the highest vote at such election shall serve
56	56	for two years and the other two directors shall serve for one year.
57	57	The first year terms shall be ended on the date of the first annual
58	58	elections as hereinafter provided. Each] member of the board of
59	59	directors shall [qualify by executing the constitutional oath of
60	60	office and shall] execute a [good and sufficient commercial] bond
61	61	for $1,000 payable to the [said] district conditioned upon the
62	62	faithful performance of the director's [his] duties, and such
63	63	[oaths and] bonds shall be deposited with the depository bank of the
64	64	district for safekeeping. The cost of this bond shall be an expense
65	65	of the hospital district.
66	66	(e) The board of directors shall elect from among its
67	67	members a president and vice president [organize by election a
68	68	chairman, who shall preside; or in his absence a chairman pro tem
69	69	shall preside; and the administrator or any member of the board may
70	70	be appointed secretary]. The board shall appoint a secretary, who
71	71	need not be a director.
72	72	(f) A [Any three members of the board of directors shall
73	73	constitute a quorum and a] concurrence of three directors is [shall
74	74	be] sufficient in all matters pertaining to the business of the
75	75	district[. The board shall require the secretary to keep suitable
76	76	records of all proceedings of each meeting of the board. Such
77	77	records shall be read and signed after each meeting by the chairman
78	78	or the member presiding, and attested by the secretary. The board
79	79	shall have a seal, on which shall be engraved the name of the
80	80	hospital district; and said seal shall be kept by the secretary and
81	81	used in authentication of all acts of the board].
82	82	(g) All district records, including books, accounts,
83	83	notices, minutes, and all other matters of the district and the
84	84	operation of its facilities, shall be:
85	85	(1) maintained at the district office; and
86	86	(2) open to public inspection at the district office
87	87	at all reasonable hours.
88	88	(h) All vacancies in the office of director shall be filled
89	89	by appointment of the remainder of the board of directors until the
90	90	next election for directors and at such election the directors
91	91	shall be elected for the unexpired term.
92	92	(i) Unless four-year terms are established under Section
93	93	285.081, Health and Safety Code, a [A] regular election of
94	94	directors shall be held on the uniform election date in May of each
95	95	year to elect the appropriate number of directors. Notice of the
96	96	[first Saturday of April of each year and notice of such] election
97	97	shall be published in accordance with Section 4.003, Election Code,
98	98	in a newspaper of general circulation in the county [one time at
99	99	least 30 days prior to the date of election. Any person desiring
100	100	his name to be printed on the ballot as a candidate for director
101	101	shall file an application to have his name placed on the ballot with
102	102	the secretary of the board of directors of the district. Such
103	103	application shall be filed with the secretary at least 25 days prior
104	104	to the date of the election].
105	105	SECTION 2. Section 4, Chapter 182, Acts of the 60th
106	106	Legislature, Regular Session, 1967, is amended to read as follows:
107	107	Sec. 4. ADMINISTRATOR. (a) The board of directors may
108	108	appoint a qualified person as district administrator.
109	109	(b) The district administrator serves at the will of the
110	110	board and receives the compensation determined [The board shall
111	111	appoint a general manager, to be known as the administrator of the
112	112	hospital district. The administrator shall hold office at the
113	113	pleasure of the board and shall receive such compensation as may be
114	114	fixed] by the board. The administrator shall be subject to removal
115	115	at any time by the board.
116	116	(c) The administrator shall, before entering into the
117	117	discharge of the administrator's [his] duties, execute a bond
118	118	payable to the district, in the amount of not less than $10,000
119	119	conditioned that the administrator [he] shall well and faithfully
120	120	perform the duties required [of him], and containing such other
121	121	conditions as the board may require. The board may pay for the bond
122	122	with district money.
123	123	(d) The administrator shall perform all duties which may be
124	124	required of the administrator [him] by the board, and shall
125	125	supervise all of the work and activities of the district and have
126	126	general direction of the affairs of the district within such
127	127	limitations as may be prescribed by the board. [Said administrator
128	128	shall not be a member of the board and shall be a qualified
129	129	practitioner of medicine or be specifically trained for work of
130	130	such character.]
131	131	(e) The board of directors, with the approval of the
132	132	commissioners court, shall be authorized to contract with any
133	133	county other than Upton County for care and treatment of the
134	134	county's sick, diseased and injured persons, and with the state and
135	135	agencies of the federal government for the care and treatment of
136	136	such persons for whom the state and such agencies of the federal
137	137	government are responsible. Further, under the same conditions,
138	138	the board of directors may enter into such contracts with the state
139	139	and federal government as may be necessary to establish or continue
140	140	a retirement program for the benefit of its employees.
141	141	(f) The board of directors may in addition to retirement
142	142	programs authorized by this Act establish such other retirement
143	143	program for the benefit of its employees as it deems necessary and
144	144	advisable.
145	145	SECTION 3. Section 7, Chapter 182, Acts of the 60th
146	146	Legislature, Regular Session, 1967, is amended to read as follows:
147	147	Sec. 7. [AUTHORIZATION OF] BONDS. (a) The board of
148	148	directors may [shall have the power and authority to] issue and sell
149	149	as the obligations of such hospital district, and in the name and
150	150	upon the faith and credit of such hospital district, general
151	151	obligation bonds for the purchase, construction, acquisition,
152	152	repair or renovation of buildings and improvements and equipping
153	153	the same for hospital purposes and for any or all of such purposes.
154	154	(b) At the time general obligation bonds are issued by the
155	155	district, the board shall impose an ad valorem[; provided, that a
156	156	sufficient] tax at a rate sufficient [shall be levied] to create an
157	157	interest and sinking fund to pay the principal of and interest on
158	158	the bonds as the bonds mature. Such [interest and principal as same
159	159	matures provided said] tax together with any other taxes levied for
160	160	said district shall not exceed 75 cents per $100 valuation of
161	161	taxable property in the district in any one year.
162	162	(c) The board's presiding officer shall execute the general
163	163	obligation bonds in the district's name. The board secretary shall
164	164	countersign the bonds.
165	165	(d) The district may issue general obligation bonds only if
166	166	the bonds are [Such bonds shall be executed in the name of the
167	167	hospital district and on its behalf by the chairman of the board of
168	168	directors and countersigned by the secretary of the board of
169	169	directors, and shall be subject to the same requirements in the
170	170	matter of approval thereof by the Attorney General of the State of
171	171	Texas and the registration thereof by the Comptroller of Public
172	172	Accounts of the State of Texas as are by law provided. Upon the
173	173	approval of such bonds by the Attorney General of Texas the same
174	174	shall be incontestable for any cause. No bonds shall be issued by
175	175	such hospital district (except refunding bonds) until] authorized
176	176	by a majority of the district voters [vote of the legally qualified
177	177	property taxpaying voters, residing in such hospital district,]
178	178	voting at an election [called and] held for such purpose. The board
179	179	may order the election on its own motion. The order calling the
180	180	election must [Such election may be called by the board of directors
181	181	of its own motion, shall] specify the place or places where the
182	182	election shall be held, the presiding officers thereof, the purpose
183	183	for which the bonds are to be issued, the amount of the bonds to be
184	184	authorized [thereof], the maximum interest rate, [(not to exceed
185	185	six percent per annum)] and the maximum maturity date of such bonds
186	186	(not to exceed 40 years from their date of issuance). Notice of
187	187	election shall be given by publishing a substantial copy of the
188	188	order calling the election in a newspaper of general circulation in
189	189	such district once a week for two consecutive weeks prior to the
190	190	date of election, the date of the first publication being at least
191	191	20 full days prior to the date set for the election. The costs of
192	192	such election shall be paid by the hospital district.
193	193	(e) The board may, without an election, issue refunding
194	194	bonds to refund outstanding bonds issued or assumed by the
195	195	district. A refunding bond may be:
196	196	(1) sold, with the proceeds of the refunding bond
197	197	applied to the payment of the bonds to be refunded; or
198	198	(2) exchanged wholly or partly for not less than a
199	199	similar amount of outstanding bonds and the unpaid matured interest
200	200	on the bonds.
201	201	(f) The board may issue revenue bonds to:
202	202	(1) purchase, construct, acquire, repair, or renovate
203	203	buildings or improvements;
204	204	(2) equip buildings or improvements for hospital
205	205	purposes; or
206	206	(3) acquire real property for hospital purposes.
207	207	(g) Revenue bonds must be payable from and secured by a
208	208	pledge of all or part of the revenue derived from the operation of
209	209	the district's hospital system. Revenue bonds may be additionally
210	210	secured by a mortgage or deed of trust on all or part of district
211	211	property. Revenue bonds must be issued in the manner provided by
212	212	Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
213	213	Health and Safety Code, for issuance of revenue bonds by a county
214	214	hospital authority.
215	215	(h) In addition to the authority to issue general obligation
216	216	and revenue bonds under this section, the board may provide for the
217	217	security and payment of district bonds from a pledge of a
218	218	combination of ad valorem taxes as authorized by Subsection (b) of
219	219	this section and revenue and other sources as authorized by
220	220	Subsection (g) of this section.
221	221	(i) The district may use the proceeds of bonds issued under
222	222	this section to pay:
223	223	(1) any expense the board determines is reasonable and
224	224	necessary to issue, sell, and deliver the bonds;
225	225	(2) interest payments on the bonds during a period of
226	226	acquisition or construction of a project or facility to be provided
227	227	through the bonds, not to exceed five years;
228	228	(3) costs related to the operation and maintenance of
229	229	a project or facility to be provided through the bonds:
230	230	(A) during an estimated period of acquisition or
231	231	construction, not to exceed five years; and
232	232	(B) for one year after the project or facility is
233	233	acquired or constructed;
234	234	(4) costs related to the financing of the bond funds,
235	235	including debt service reserve and contingency funds;
236	236	(5) costs related to the bond issuance;
237	237	(6) costs related to the acquisition of land or
238	238	interests in land for a project or facility to be provided through
239	239	the bonds; and
240	240	(7) construction costs of a project or facility to be
241	241	provided through the bonds, including the payment of related
242	242	professional services and expenses. [In the manner hereinabove
243	243	provided, the bonds of such hospital district may, without the
244	244	necessity of any election therefor, be issued for the purpose of
245	245	refunding and paying off any bonded indebtedness theretofore
246	246	assumed by such hospital district; such refunding bonds may be sold
247	247	and the proceeds thereof applied to the payment of any such
248	248	outstanding bonds or may be exchanged in whole or in part for not
249	249	less than a like amount of said outstanding bonds and interest
250	250	matured thereon, but unpaid; provided the average interest cost per
251	251	annum on the refunding bonds, computed in accordance with
252	252	recognized standard bond interest cost per annum so computed, upon
253	253	the bonds to be discharged out of the proceeds of the refunding
254	254	bonds, unless the total interest cost on the refunding bonds,
255	255	computed to their respective maturity dates, is less than the total
256	256	interest so computed on the bonds to be discharged out of such
257	257	proceeds. In the foregoing computations, any premium or premiums
258	258	required to be paid upon the bonds to be refunded as a condition to
259	259	payment in advance of their stated maturity dates shall be taken
260	260	into account as an addition to the net interest cost to the hospital
261	261	district of the refunding bonds.]
262	262	SECTION 4. Chapter 182, Acts of the 60th Legislature,
263	263	Regular Session, 1967, is amended by adding Section 7A to read as
264	264	follows:
265	265	Sec. 7A. AUTHORITY TO BORROW MONEY. (a) The board of
266	266	directors may borrow money at a rate not to exceed the maximum
267	267	annual percentage rate allowed by law for district obligations at
268	268	the time the loan is made.
269	269	(b) To secure a loan, the board may pledge:
270	270	(1) district revenue that is not pledged to pay the
271	271	district's bonded indebtedness;
272	272	(2) tax revenue to be collected by the district during
273	273	the 12-month period following the date of the pledge that is not
274	274	pledged to pay the principal of or interest on district bonds; or
275	275	(3) district bonds that have been authorized but not
276	276	sold.
277	277	(c) A loan for which taxes or bonds are pledged must mature
278	278	not later than the first anniversary of the date the loan is made. A
279	279	loan for which district revenue is pledged must mature not later
280	280	than the fifth anniversary of the date the loan is made.
281	281	SECTION 5. Section 10, Chapter 182, Acts of the 60th
282	282	Legislature, Regular Session, 1967, is amended to read as follows:
283	283	Sec. 10. DISTRICT DEPOSITORY. (a) The board of directors
284	284	of the district shall select [name] one or more banks [within the
285	285	district] to serve as a depository for [the funds of the] district
286	286	money. [All such funds shall, as derived and collected, be
287	287	immediately deposited with such depository bank or banks except
288	288	that sufficient funds shall be remitted to the bank or banks for the
289	289	payment of principal of and interest on the outstanding bonds of the
290	290	district or other obligations assumed by it and in time that such
291	291	money may be received by said bank or banks of payment on or prior to
292	292	the date of maturity of such principal and interest so to be paid.]
293	293	To the extent that money [funds] in a [the] depository bank is [or
294	294	banks are] not insured by the Federal Deposit Insurance
295	295	Corporation, the money must [they shall] be secured in the manner
296	296	provided by law for security of county funds. Membership on the
297	297	board of directors of an officer or director of a bank shall not
298	298	disqualify such bank from being designated as a depository.
299	299	(b) The board may invest operating, depreciation, or
300	300	building reserves only in funds or securities specified by Chapter
301	301	2256, Government Code.
302	302	SECTION 6. Section 13, Chapter 182, Acts of the 60th
303	303	Legislature, Regular Session, 1967, is amended to read as follows:
304	304	Sec. 13. METHODS AND PROCEDURES; CONSTRUCTION CONTRACTS.
305	305	(a) The board may prescribe the method of making purchases and
306	306	expenditures by and for the district.
307	307	(b) The board may prescribe accounting and control
308	308	procedures for the district.
309	309	(c) The board may enter into purchase or construction
310	310	contracts on behalf of the district; however, the board may enter
311	311	into construction [or purchase] contracts that involve spending
312	312	more than the amount provided by Section 271.024, Local Government
313	313	Code, [$10,000] only after advertising as provided by Subchapter B,
314	314	Chapter 271 [252], Local Government Code.
315	315	(d) Chapter 2253, Government Code [Article 5160, Revised
316	316	Statutes], applies to construction contracts let by the district.
317	317	SECTION 7. This Act takes effect immediately if it receives
318	318	a vote of two-thirds of all the members elected to each house, as
319	319	provided by Section 39, Article III, Texas Constitution. If this
320	320	Act does not receive the vote necessary for immediate effect, this
321	321	Act takes effect September 1, 2011.