82R4208 CJC-F
	By: Craddick	H.B. No. 850

	A BILL TO BE ENTITLED
	AN ACT
	relating to the Rankin County Hospital District.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 3, Chapter 182, Acts of the 60th
	Legislature, Regular Session, 1967, is amended to read as follows:
	Sec. 3.  BOARD [CREATION OF DIRECTORS].  (a) [Within 10 days
	after such election is held, the commissioners court in such county
	shall convene and canvass the returns of the election and if a
	majority of qualified property taxpaying electors voting at said
	election vote in favor of the proposition, the court shall so find
	and declare the hospital district established and created.] The
	[management and control of the district is vested in a] board of
	directors [which] consists of five members elected from the
	district at large.  Directors serve staggered two-year terms unless
	four-year terms are established under Section 285.081, Health and
	Safety Code.
	(b)  A person may not be elected or appointed as a director
	unless the person is:
	(1)  a resident of the district; and
	(2)  at least 21 years of age.
	(c)  An employee of the district may not serve as a director
	[, to be elected by the qualified electors who own taxable property
	within the district and who have duly rendered that property for
	taxation.   To qualify for the election to the board, a person must:
	[1. be at least 21 years of age;
	[2.   have been a resident of the district for at least two
	years;
	[3. be a qualified voter;
	[4.   own taxable property within the district and have duly
	rendered that property for taxation;
	[5.   shall not be an officer of any political subdivision or
	the State of Texas or the County of Upton, whether such office be
	elective or by appointment].
	(d)  Before assuming the duties of the office of director,
	each [Not less than 15 nor more than 25 days after the district is
	declared established and created the commissioners court shall call
	an election for the five directors who will serve as the district's
	first board of directors, this election to be held on a date not
	more than 30 days after the day of the passage of the commissioners
	court order calling same but on such date as will permit publication
	of an election notice in a newspaper of general circulation in the
	district one time not less than 14 days prior to such election date.
	Any candidate desiring to be voted upon as a first director shall,
	no later than five days subsequent to the day of passage of the
	commissioners court order calling the election, present a petition
	to that court signed by such candidate requesting that his name be
	placed upon the official ballot.   The regular term of each director
	shall be for two years but at the first called election, the three
	directors receiving the highest vote at such election shall serve
	for two years and the other two directors shall serve for one year.
	The first year terms shall be ended on the date of the first annual
	elections as hereinafter provided.   Each] member of the board of
	directors shall [qualify by executing the constitutional oath of
	office and shall] execute a [good and sufficient commercial] bond
	for $1,000 payable to the [said] district conditioned upon the
	faithful performance of the director's [his] duties, and such
	[oaths and] bonds shall be deposited with the depository bank of the
	district for safekeeping.  The cost of this bond shall be an expense
	of the hospital district.
	(e)  The board of directors shall elect from among its
	members a president and vice president [organize by election a
	chairman, who shall preside; or in his absence a chairman pro tem
	shall preside; and the administrator or any member of the board may
	be appointed secretary].  The board shall appoint a secretary, who
	need not be a director.
	(f)  A [Any three members of the board of directors shall
	constitute a quorum and a] concurrence of three directors is [shall
	be] sufficient in all matters pertaining to the business of the
	district.  [The board shall require the secretary to keep suitable
	records of all proceedings of each meeting of the board.   Such
	records shall be read and signed after each meeting by the chairman
	or the member presiding, and attested by the secretary.   The board
	shall have a seal, on which shall be engraved the name of the
	hospital district; and said seal shall be kept by the secretary and
	used in authentication of all acts of the board.]
	(g)  All district records, including books, accounts,
	notices, minutes, and all other matters of the district and the
	operation of its facilities, shall be:
	(1)  maintained at the district office; and
	(2)  open to public inspection at the district office
	at all reasonable hours.
	(h)  All vacancies in the office of director shall be filled
	by appointment of the remainder of the board of directors until the
	next election for directors and at such election the directors
	shall be elected for the unexpired term.
	(i)  Unless four-year terms are established under Section
	285.081, Health and Safety Code, a [A] regular election of
	directors shall be held on the uniform election date in May of each
	year to elect the appropriate number of directors.  Notice of the
	[first Saturday of April of each year and notice of such] election
	shall be published in accordance with Section 4.003, Election Code,
	in a newspaper of general circulation in the county [one time at
	least 30 days prior to the date of election. Any person desiring
	his name to be printed on the ballot as a candidate for director
	shall file an application to have his name placed on the ballot with
	the secretary of the board of directors of the district. Such
	application shall be filed with the secretary at least 25 days prior
	to the date of the election].
	SECTION 2.  Section 4, Chapter 182, Acts of the 60th
	Legislature, Regular Session, 1967, is amended to read as follows:
	Sec. 4.  ADMINISTRATOR.  (a) The board may appoint a
	qualified person as district administrator.
	(b)  The district administrator serves at the will of the
	board and receives the compensation determined by the board. [The
	board shall appoint a general manager, to be known as the
	administrator of the hospital district.   The administrator shall
	hold office at the pleasure of the board and shall receive such
	compensation as may be fixed by the board.]  The administrator shall
	be subject to removal at any time by the board.
	(c)  The administrator shall, before entering into the
	discharge of the administrator's [his] duties, execute a bond
	payable to the district, in the amount of not less than $10,000
	conditioned that the administrator [he] shall well and faithfully
	perform the duties required [of him], and containing such other
	conditions as the board may require.  The board may pay for the bond
	with district money.
	(d)  The administrator shall perform all duties which may be
	required of the administrator [him] by the board, and shall
	supervise all of the work and activities of the district and have
	general direction of the affairs of the district within such
	limitations as may be prescribed by the board.  [Said administrator
	shall not be a member of the board and shall be a qualified
	practitioner of medicine or be specifically trained for work of
	such character.]
	(e)  The board of directors, with the approval of the
	commissioners court, shall be authorized to contract with any
	county other than Upton County for care and treatment of the
	county's sick, diseased and injured persons, and with the state and
	agencies of the federal government for the care and treatment of
	such persons for whom the state and such agencies of the federal
	government are responsible.  Further, under the same conditions,
	the board of directors may enter into such contracts with the state
	and federal government as may be necessary to establish or continue
	a retirement program for the benefit of its employees.
	(f)  The board of directors may in addition to retirement
	programs authorized by this Act establish such other retirement
	program for the benefit of its employees as it deems necessary and
	advisable.
	SECTION 3.  Section 7, Chapter 182, Acts of the 60th
	Legislature, Regular Session, 1967, is amended to read as follows:
	Sec. 7.  [AUTHORIZATION OF] BONDS.  (a) The board of
	directors may [shall have the power and authority to] issue and sell
	as the obligations of such hospital district, and in the name and
	upon the faith and credit of such hospital district, general
	obligation bonds for the purchase, construction, acquisition,
	repair or renovation of buildings and improvements and equipping
	the same for hospital purposes and for any or all of such purposes.
	(b)  At the time general obligation bonds are issued by the
	district, the board shall impose an ad valorem [; provided, that a
	sufficient] tax at a rate sufficient [shall be levied] to create an
	interest and sinking fund to pay the principal of and interest on
	the bonds as the bonds mature. Such [interest and principal as same
	matures provided said] tax together with any other taxes levied for
	said district shall not exceed 75 cents per $100 valuation of
	taxable property in the district in any one year.
	(c)  The board's presiding officer shall execute the general
	obligation bonds in the district's name. The board secretary shall
	countersign the bonds.
	(d)  The district may issue general obligation bonds only if
	the bonds are [Such bonds shall be executed in the name of the
	hospital district and on its behalf by the chairman of the board of
	directors and countersigned by the secretary of the board of
	directors, and shall be subject to the same requirements in the
	matter of approval thereof by the Attorney General of the State of
	Texas and the registration thereof by the Comptroller of Public
	Accounts of the State of Texas as are by law provided.   Upon the
	approval of such bonds by the Attorney General of Texas the same
	shall be incontestable for any cause.   No bonds shall be issued by
	such hospital district (except refunding bonds) until] authorized
	by a majority of the district voters [vote of the legally qualified
	property taxpaying voters, residing in such hospital district,]
	voting at an election [called and] held for such purpose.  The board
	may order the election on its own motion. The order calling the
	election must [Such election may be called by the board of directors
	of its own motion, shall] specify the place or places where the
	election shall be held, the presiding officers thereof, the purpose
	for which the bonds are to be issued, the amount of the bonds to be
	authorized [thereof], maximum interest rate, [(not to exceed six
	percent per annum)] and the maximum maturity date of such bonds (not
	to exceed 40 years from their date of issuance).  Notice of election
	shall be given by publishing a substantial copy of the order calling
	the election in a newspaper of general circulation in such district
	once a week for two consecutive weeks prior to the date of election,
	the date of the first publication being at least 20 full days prior
	to the date set for the election.  The costs of such election shall
	be paid by the hospital district.
	(e)  The board may, without an election, issue refunding
	bonds to refund outstanding bonds issued or assumed by the
	district. A refunding bond may be:
	(1)  sold, with the proceeds of the refunding bond
	applied to the payment of the bonds to be refunded; or
	(2)  exchanged wholly or partly for not less than a
	similar amount of outstanding bonds and the unpaid matured interest
	on the bonds.
	(f)  The board may issue revenue bonds to:
	(1)  purchase, construct, acquire, repair, or renovate
	buildings or improvements;
	(2)  equip buildings or improvements for hospital
	purposes; or
	(3)  acquire real property for hospital purposes.
	(g)  Revenue bonds must be payable from and secured by a
	pledge of all or part of the revenue derived from the operation of
	the district's hospital system. Revenue bonds may be additionally
	secured by a mortgage or deed of trust on all or part of district
	property. Revenue 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 a county
	hospital authority.
	(h)  In addition to the authority to issue general obligation
	and revenue bonds under this section, the board may provide for the
	security and payment of district bonds from a pledge of a
	combination of ad valorem taxes as authorized by Subsection (b) of
	this section and revenue and other sources as authorized by
	Subsection (g) of this section.
	(i)  The district may use the proceeds of bonds issued under
	this section to pay:
	(1)  any expense the board determines is reasonable and
	necessary to issue, sell, and deliver the bonds;
	(2)  interest payments on the bonds during a period of
	acquisition or construction of a project or facility to be provided
	through the bonds, not to exceed five years;
	(3)  costs related to the operation and maintenance of
	a project or facility to be provided through the bonds:
	(A)  during an estimated period of acquisition or
	construction, not to exceed five years; and
	(B)  for one year after the project or facility is
	acquired or constructed;
	(4)  costs related to the financing of the bond funds,
	including debt service reserve and contingency funds;
	(5)  costs related to the bond issuance;
	(6)  costs related to the acquisition of land or
	interests in land for a project or facility to be provided through
	the bonds; and
	(7)  construction costs of a project or facility to be
	provided through the bonds, including the payment of related
	professional services and expenses.  [In the manner hereinabove
	provided, the bonds of such hospital district may, without the
	necessity of any election therefor, be issued for the purpose of
	refunding and paying off any bonded indebtedness theretofore
	assumed by such hospital district; such refunding bonds may be sold
	and the proceeds thereof applied to the payment of any such
	outstanding bonds or may be exchanged in whole or in part for not
	less than a like amount of said outstanding bonds and interest
	matured thereon, but unpaid; provided the average interest cost per
	annum on the refunding bonds, computed in accordance with
	recognized standard bond interest cost per annum so computed, upon
	the bonds to be discharged out of the proceeds of the refunding
	bonds, unless the total interest cost on the refunding bonds,
	computed to their respective maturity dates, is less than the total
	interest so computed on the bonds to be discharged out of such
	proceeds.   In the foregoing computations, any premium or premiums
	required to be paid upon the bonds to be refunded as a condition to
	payment in advance of their stated maturity dates shall be taken
	into account as an addition to the net interest cost to the hospital
	district of the refunding bonds.]
	SECTION 4.  Chapter 182, Acts of the 60th Legislature,
	Regular Session, 1967, is amended by adding Section 7A to read as
	follows:
	Sec. 7A.  AUTHORITY TO BORROW MONEY.  (a)  The board may
	borrow money at a rate not to exceed the maximum annual percentage
	rate allowed by law for district obligations at the time the loan is
	made.
	(b)  To secure a loan, the board may pledge:
	(1)  district revenue that is not pledged to pay the
	district's bonded indebtedness;
	(2)  tax revenue to be collected by the district during
	the 12-month period following the date of the pledge that is not
	pledged to pay the principal of or interest on district bonds; or
	(3)  district bonds that have been authorized but not
	sold.
	(c)  A loan for which taxes or bonds are pledged must mature
	not later than the first anniversary of the date the loan is made. A
	loan for which district revenue is pledged must mature not later
	than the fifth anniversary of the date the loan is made.
	SECTION 5.  Section 10, Chapter 182, Acts of the 60th
	Legislature, Regular Session, 1967, is amended to read as follows:
	Sec. 10.  DISTRICT DEPOSITORY. (a) The board of directors of
	the district shall select [name] one or more banks [within the
	district] to serve as a depository for [the funds of the] district
	money.  [All such funds shall, as derived and collected, be
	immediately deposited with such depository bank or banks except
	that sufficient funds shall be remitted to the bank or banks for the
	payment of principal of and interest on the outstanding bonds of the
	district or other obligations assumed by it and in time that such
	money may be received by said bank or banks of payment on or prior to
	the date of maturity of such principal and interest so to be paid.]
	To the extent that money [funds] in a [the] depository bank is [or
	banks are] not insured by the Federal Deposit Insurance
	Corporation, the money must [they shall] be secured in the manner
	provided by law for security of county funds.  Membership on the
	board of directors of an officer or director of a bank shall not
	disqualify such bank from being designated as a depository.
	(b)  The board may invest operating, depreciation, or
	building reserves only in funds or securities specified by Chapter
	2256, Government Code.
	SECTION 6.  Section 13, Chapter 182, Acts of the 60th
	Legislature, Regular Session, 1967, is amended to read as follows:
	Sec. 13.  METHODS AND PROCEDURES; CONSTRUCTION CONTRACTS.
	(a)  The board may prescribe the method of making purchases and
	expenditures by and for the district.
	(b)  The board may prescribe accounting and control
	procedures for the district.
	(c)  The board may enter into purchase or construction
	contracts on behalf of the district; however, the board may enter
	into construction [or purchase] contracts that involve spending
	more than the amount provided by Section 271.024, Local Government
	Code, [$10,000] only after advertising as provided by Subchapter B,
	Chapter 271 [Chapter 252], Local Government Code.
	(d)  Chapter 2253, Government Code [Article 5160, Revised
	Statutes], applies to construction contracts let by the district.
	SECTION 7.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2011.