HBA-MPA S.B. 1595 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1595 By: Brown County Affairs 4/26/1999 Engrossed BACKGROUND AND PURPOSE The Act creating the Angleton-Danbury Hospital District (district) was passed by the 60th Legislature in 1967, to provide health care services to the district's residents. In 1991, the Act was amended. However, more changes are needed to expand health care services, including funding and equipping clinics and wellness centers, funds to recruit physicians, a financing option to issue revenue bonds and borrow funds needed for the operation of the district. S.B.1595 revises the Angleton-Danbury Hospital District of Brazoria County legislation for the continued operation and growth of the district to provide vital health care services to its residents. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2, Chapter 120, Acts of the 60th Legislature, Regular Session, 1967, as follows: Sec. 2. (a) Requires the Angleton-Danbury Hospital District (district) to provide for the establishment of a hospital or hospital system within its boundaries to furnish health care services, rather than medical and hospital care, to persons residing in the district. (b) Authorizes the hospital system to include facilities and equipment to provide for domiciliary care and treatment of sick, injured, or geriatric patients, outpatient clinics, rural health clinics, convalescent home facilities, assisted living or personal care facilities, physicians' offices, home health care services, durable medical equipment, long-term care, skilled nursing care, intermediate nursing care, preventive care services, ancillary support, pharmacies, hospice care, community mental health centers, alcohol or chemical dependency centers, or any other facility or equipment the board of directors (board) considers necessary or appropriate for providing health care services. Authorizes the district to also operate or assist in the operation of a mobile emergency medical service as part of the hospital system. SECTION 2. Amends Section 4, Chapter 120, Acts of the 60th Legislature, Regular Session, 1967, to delete text requiring that members of the board own taxable property; names of the district's first board of directors; and the board of director's election. Makes conforming changes. SECTION 3. Amends Section 7A, Chapter 120, Acts of the 60th Legislature, Regular Session, 1967, to authorize the district, subject to approval of the board, to provide primary care, emergency services, preventive medical services, and other health-related services outside the district. Provides that the services serve the purpose of the district as established by this chapter. Authorizes the board to spend funds to enter into agreements, and take other necessary action to recruit physicians and other persons to serve as medical staff members including specified expenses. Authorizes the board to participate in, or otherwise assist in providing health care educational programs for current or prospective medical staff members or employees of the district. Authorizes the board to provide retirement benefits for employees of the district by establishing or administering a retirement program or by participating in the Texas County and District Retirement System or in another statewide retirement system in which the district is eligible to participate. SECTION 4. Amends Section 9, Chapter 120, Acts of the 60th Legislature, Regular Session, 1967, to provide that the Tax Code governs appraisals, assessment, and collection of district taxes. Authorizes the board to provide for the appointment of the assessor-collector of taxes as provided by the Tax Code. Deletes existing section regarding taxable property for the district and tax collection. SECTION 5. Amends Section 12, Chapter 120, Acts of the 60th Legislature, Regular Session, 1967, to require notice of bond election to be given by publishing a substantial copy of the order calling the election in the newspaper of general circulation within the area of the district as provided by Section 4.003(a)(1) (Method of Giving Notice), Election Code, rather than once a week for two consecutive weeks or at least 14 days prior to the date set for the election. Deletes text regarding taxable properties within the district. SECTION 6. Amends Section 12A, Chapter 120, Acts of the 60th Legislature, Regular Session, 1967, by adding Subsection (e), to allow the Board of Directors to issue revenue bonds for the purposes of purchasing, constructing, repairing, renovating, or acquiring buildings, sites, or improvements and for the purpose of equipping buildings, sites, and improvements for hospitals and the hospital system. Requires the revenue bonds to be issued in the manner and in accordance with the procedures and requirements specified for the issuance of revenue bonds by county hospital authorities in Sections 264.042 (Form and Procedure), 264.043 (Terms), 264.046 (Junior Lien Bonds; Parity Bonds), 264.047 (Bond Proceeds; Investment of Funds), 264.048 (Refunding Bonds), and 264.049 (Approval and Registration of Bonds), Health and Safety Code. SECTION 7. Amends Chapter 120, Acts of the 60th Legislature, Regular Session, 1967, by adding Section 12B, as follows: Sec. 12B. (a) Authorizes the board to borrow money for district obligations at the time the loan is made. (b) Authorizes the board, in order to secure a loan, to pledge the revenues of the district that are not pledged to pay bonded indebtedness of the district, to pledge taxes to be levied by the district in the next 12-month period that are not pledged to pay the principal of or interest on district bonds, or to pledge district bonds that have been authorized but not sold. (c) Provides that a loan for which taxes or bonds are pledged must mature no later than the first anniversary on which the loan is made. Provides that a loan for which district revenues are pledged must mature no later than the fifth anniversary on which the loan is made. SECTION 8. Amends Chapter 120, Acts of the 60th Legislature, Regular Session, 1967, by adding Section 20, as follows: Sec. 20. (a) Authorizes the district to be dissolved only if the dissolution is approved by a majority of the qualified voters of the district voting in an election called and held for that purpose. (b) Authorizes the board to order an election on the question of dissolving the district and disposing of the district's assets and obligations. Requires the board to order an election if the board receives a petition requesting an election that is signed by a number of residents of the district equal to at least 15 percent of the registered voters in the district. (c) Requires the election to be held no later than 60 days after the election is ordered. Sets forth that Section 41.001(a), Election Code, does not apply to an election ordered under this section. Specifies requirements for the order calling the election. Section 41.001(a) specifies the dates for general and special elections. (d) Requires the board to give notice of the election by publishing the election order in a newspaper with general circulation in the district once a week for two consecutive weeks. Provides that the first publication must appear not less than 35 days before the date set for the election. Specifies requirements for the printing of the ballot for the election. (e) Requires the board, if a majority of the votes in the election favor dissolution, to find that the district is dissolved. Requires the board, if a majority of the votes in the election do not favor dissolution, to continue to administer the district, and prohibits another election on the question of dissolution from being held before the first anniversary of the most recent election to dissolve the district. (f) Specifies requirements for the board regarding the dispensation of property, assets, and debts, if a majority of the votes in the election favor dissolution. (g) Provides that if the district transfers the land, buildings, improvements, equipment, and other assets to a county or other governmental agency, the county or agency assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved. (h) Specifies requirements for the board regarding the resolution of debts after finding that the district is dissolved. (i) Requires the board, when all outstanding debts and obligations of the district are paid, to order the secretary to return the pro rata share of all unused tax money to each district taxpayer. (j) Authorizes a taxpayer to request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes. Requires the board, if a taxpayer requests the credit, to direct the secretary to transmit the funds to the county tax assessor-collector. (k) Requires the board, after the district has paid all its debts and has disposed of all its assets and funds as prescribed by this section, to file a written report with the Commissioners Court of Brazoria County setting forth a summary of the board's actions in dissolving the district. (l) Requires the Commissioners Court of Brazoria County, no later than 10 days after the date it receives the report and determines that the requirements of this section have been fulfilled, to enter an order dissolving the district and releasing the board of directors of the district from any further duty or obligation. (m) Prohibits the district from being dissolved, notwithstanding any other provision of this section, unless the board provides for the sale or transfer of the district's assets and liabilities to another person or entity. Prohibits the dissolution of the district and the sale or transfer of the district's assets or liabilities from contravening a trust indenture or bond resolution relating to the outstanding bonds of the district. Sets forth that the dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district. (n) Provides that the sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of the residents of the district, including the residents' collective property rights in the district's assets. Provides that a grant from federal funds is an obligation to be repaid in satisfaction. Prohibits the district from transferring or disposing of the district's assets except for due compensation unless the transfer is made to a governmental agency that serves the district and the transferred assets are to be used for the benefit of the residents of the district. SECTION 9. Effective date: September 1, 1999. SECTION 10.Emergency clause.