88R1238 JCG-D
By: Craddick H.B. No. 492
A BILL TO BE ENTITLED
AN ACT
relating to the creation and operation of mental health services
districts by the Midland County Hospital District of Midland
County, Texas, and the Ector County Hospital District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 7, Health and Safety Code, is
amended by adding Chapter 579 to read as follows:
CHAPTER 579. MENTAL HEALTH SERVICES DISTRICTS CREATED BY CERTAIN
HOSPITAL DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 579.001. PURPOSE. The purpose of this chapter is to
authorize certain hospital districts to create a special district
to provide mental health services to the residents of the district.
Sec. 579.002. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of a
district.
(2) "Director" means a member of the board.
(3) "District" means a mental health services district
created by a hospital district under this chapter.
(4) "Hospital district" means a hospital district
created under the authority of Sections 4-11, Article IX, Texas
Constitution.
Sec. 579.003. APPLICABILITY. This chapter applies only to
the:
(1) Midland County Hospital District of Midland
County, Texas; and
(2) Ector County Hospital District.
SUBCHAPTER B. CREATION AND DISSOLUTION OF DISTRICT
Sec. 579.051. CREATION BY CONCURRENT ORDERS. (a) The
hospital districts to which this chapter applies may create a
district by adopting concurrent orders.
(b) A concurrent order to create a district must:
(1) be approved by the governing body of each creating
hospital district;
(2) contain identical provisions; and
(3) define the boundaries of the district to be
coextensive with the combined boundaries of each creating hospital
district.
Sec. 579.052. CONTRACT TERMS. (a) Each creating hospital
district shall contract with the district to provide mental health
services to the hospital district's residents. The contract must:
(1) state the term of the contract;
(2) specify the purpose, terms, rights, and duties of
the district, as authorized by this chapter;
(3) specify the financial contributions to be made by
each party to the contract to fund the district; and
(4) specify the land, buildings, improvements,
equipment, and other assets owned by a party to the contract that
the district will be required to manage and operate, if any.
(b) Chapter 791, Government Code, does not apply to a
contract made under this chapter.
Sec. 579.053. DISSOLUTION. A district shall be dissolved
if the creating hospital districts adopt concurrent orders to
dissolve the district and the concurrent orders contain identical
provisions.
Sec. 579.054. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS
AFTER DISSOLUTION. (a) After dissolution of a district under
Section 579.053, the board shall continue to control and administer
any property, debts, and assets of the district until all funds have
been disposed of and all district debts have been paid or settled.
(b) If, after administering any property and assets, the
board determines that the district's property and assets are
insufficient to pay the debts of the district, the district shall
transfer the remaining debts to the creating hospital districts in
proportion to the funds contributed to the district by each
hospital district.
(c) If, after complying with Subsection (b) and
administering the property and assets, the board determines that
unused funds remain, the board shall transfer the unused funds to
the creating hospital districts in proportion to the funds
contributed to the district by each hospital district.
Sec. 579.055. ACCOUNTING AFTER DISSOLUTION. After the
district has paid all its debts and has disposed of all its assets
and funds as prescribed by Section 579.054, the board shall provide
an accounting to each creating hospital district. The accounting
must show the manner in which the assets and debts of the district
were distributed.
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 579.101. BOARD OF DIRECTORS; TERMS; VACANCY. (a) The
board consists of six appointed directors. Each creating hospital
district shall appoint three directors to the board.
(b) Directors serve staggered two-year terms, with one-half
of the directors' terms expiring each year.
(c) A vacancy in the office of director shall be filled for
the unexpired term in the same manner as the original appointment.
Sec. 579.102. OFFICERS; TIE VOTE. (a) The board shall elect
from among its members a president. The president may vote and may
cast an additional vote to break a tie.
(b) The board shall appoint a secretary, who need not be a
director.
(c) Each officer of the board serves for a term of one year.
(d) The board shall fill a vacancy in a board office for the
unexpired term.
Sec. 579.103. QUALIFICATIONS FOR OFFICE. (a) To be
eligible to serve as a director, a person must be a resident of the
hospital district that appoints the person under Section 579.101.
(b) An employee of the district may not serve as a director.
Sec. 579.104. COMPENSATION. (a) Directors and officers
serve without compensation but may be reimbursed for actual
expenses incurred in the performance of official duties.
(b) Expenses reimbursed under this section must be:
(1) reported in the district's minute book or other
district records; and
(2) approved by the board.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 579.151. TRANSFER OF CERTAIN RESPONSIBILITIES OF
CREATING HOSPITAL DISTRICT. On creation of a district, each
creating hospital district may transfer to the district:
(1) management and operation of any real property,
improvements, and equipment located wholly in the district that are
owned by the creating hospital district and are used to provide
mental health services, as specified in the contract under Section
579.052; and
(2) operating funds and reserves for operating
expenses and funds that have been budgeted by the creating hospital
district to provide mental health services for residents of the
district, as specified in the contract under Section 579.052.
Sec. 579.152. POWERS AND DUTIES. A district may, if
necessary to provide mental health services to the residents of the
creating hospital districts:
(1) acquire and hold title to, construct, operate,
manage, and maintain real property, including improvements to real
property;
(2) acquire, operate, manage, and maintain equipment
and other personal property;
(3) enter into and perform contracts;
(4) appoint and employ officers, agents, and
employees;
(5) sue and be sued;
(6) seek and accept gifts, grants, and donations; and
(7) perform other acts necessary to accomplish the
purpose of the district.
Sec. 579.153. RULES. The board may adopt rules governing
the operation of the district and the duties, functions, and
responsibilities of the district's staff and employees.
Sec. 579.154. DISTRICT ADMINISTRATOR; ASSISTANT
ADMINISTRATOR. (a) The board shall appoint a qualified person as
district administrator.
(b) The board may appoint assistant administrators.
(c) The district administrator and any assistant
administrator serve at the will of the board and are entitled to the
compensation determined by the board.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 579.201. DISTRICT FUNDING; LIMITATION. (a) Each
creating hospital district shall provide funding for the district's
operation as specified in the contract under Section 579.052.
(b) The district may not impose a tax or issue bonds or other
obligations.
Sec. 579.202. BUDGET. (a) The district administrator shall
prepare an annual budget for approval by the board.
(b) The proposed budget must contain a complete financial
statement of:
(1) the outstanding obligations of the district;
(2) the cash on hand in each district fund;
(3) the money received by the district from all
sources during the previous year;
(4) the money available to the district from all
sources during the ensuing year;
(5) the balances expected at the end of the year in
which the budget is being prepared;
(6) the estimated revenue and balances available to
cover the proposed budget; and
(7) the proposed expenditures and disbursements and
the estimated receipts and collections for the following fiscal
year.
(c) The board shall provide in each annual budget for the
payment of all operation and maintenance expenses of the district.
Sec. 579.203. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
board shall hold a public hearing on the proposed annual budget.
(b) At least 10 days before the date of the hearing, the
board shall publish notice of the hearing in a newspaper of general
circulation in the district.
(c) Any resident of the district 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 any changes in the proposed
budget that the board judges to be in the interest of the district's
residents and that the law warrants.
(e) The budget is effective only after adoption by the
board.
Sec. 579.204. AMENDMENTS TO BUDGET. The budget may be
amended as required by circumstances. The board must approve all
amendments.
Sec. 579.205. RESTRICTION ON EXPENDITURES. Money may be
spent only for an expense included in the budget or an amendment to
the budget.
Sec. 579.206. FISCAL YEAR. The district operates according
to a fiscal year that begins on October 1 and ends on September 30.
The board may change the fiscal year.
Sec. 579.207. AUDIT. The board shall have an independent
audit made of the district's financial condition for each fiscal
year.
Sec. 579.208. INSPECTION OF AUDIT AND DISTRICT RECORDS.
The audit and other district records shall be open to inspection at
the principal office of each creating hospital district.
Sec. 579.209. FINANCIAL REPORT. As soon as practicable
after the close of each fiscal year, the district administrator
shall prepare for the board:
(1) a complete sworn statement of all district money;
and
(2) a complete account of the disbursements of that
money.
SECTION 2. Subchapter C, Chapter 1024, Special District
Local Laws Code, is amended by adding Section 1024.118 to read as
follows:
Sec. 1024.118. MENTAL HEALTH SERVICES. (a) The district
may provide mental health services, including by contract in the
manner prescribed by Chapter 579, Health and Safety Code.
(b) The district's provision of mental health services does
not prohibit another political subdivision of this state from
providing, or taxing to provide for, mental health services inside
the boundaries of the district, as provided by Section 13, Article
IX, Texas Constitution.
SECTION 3. Subchapter C, Chapter 1061, Special District
Local Laws Code, is amended by adding Section 1061.122 to read as
follows:
Sec. 1061.122. MENTAL HEALTH SERVICES. (a) The district
may provide mental health services, including by contract in the
manner prescribed by Chapter 579, Health and Safety Code.
(b) The district's provision of mental health services does
not prohibit another political subdivision of this state from
providing, or taxing to provide for, mental health services inside
the boundaries of the district, as provided by Section 13, Article
IX, Texas Constitution.
SECTION 4. In making the initial appointment of directors
under Section 579.101, Health and Safety Code, as added by this Act,
the creating hospital districts shall jointly determine which three
directors serve one-year terms and which three directors serve
two-year terms. Thereafter, all directors appointed under Section
579.101, Health and Safety Code, as added by this Act, are appointed
to serve two-year terms.
SECTION 5. This Act takes effect September 1, 2023.