------------------------------------------------------------------------------------------ ¦ REFERENCE TITLE: healthcare districts ¦ ------------------------------------------------------------------------------------------ ¦ ¦ ¦ ¦ ¦ ¦ ¦ State of Arizona ¦ ¦ House of Representatives ¦ ¦ Forty-fifth Legislature ¦ ¦ First Regular Session ¦ ¦ 2001 ¦ ------------------------------------------------------------------------------------------ ¦ HB 2454 ¦ ------------------------------------------------------------------------------------------ ¦ Introduced by ¦ ¦ Representatives Hanson, Pearce, Gullett, Nelson, Allen: Cannell, Chase, Miranda, ¦ ¦ Pickens, Tom ¦ ------------------------------------------------------------------------------------------
AN ACT
AMENDING TITLE 48, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 23; RELATING TO HEALTHCARE DISTRICTS.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 48, Arizona Revised Statutes, is amended by adding chapter 23, to read:
CHAPTER 23
HEALTHCARE DISTRICTS
ARTICLE 1. ORGANIZATION
48-3801. Definitions
IN THIS CHAPTER, UNLESS THE CONTEXT OTHERWISE REQUIRES:
1. "BOARD" MEANS THE BOARD OF DIRECTORS OF A HEALTHCARE DISTRICT.
2. "COUNTY" MEANS THE COUNTY IN WHICH A HEALTHCARE DISTRICT IS ORGANIZED.
3. "DISTRICT" MEANS A HEALTHCARE DISTRICT ORGANIZED PURSUANT TO THIS CHAPTER.
48-3802. Organization
THE BOARD OF SUPERVISORS OF ANY COUNTY MAY ESTABLISH A HEALTHCARE DISTRICT, TO INCLUDE BOTH THE INCORPORATED AND UNINCORPORATED AREAS OF THE COUNTY, IF THE BOARD OF SUPERVISORS DETERMINES THAT THE PUBLIC HEALTH, CONVENIENCE, NECESSITY OR WELFARE WILL BE PROMOTED BY ESTABLISHING THE DISTRICT. THE BOUNDARIES OF THE DISTRICT SHALL BE COTERMINOUS WITH THE BOUNDARIES OF THE COUNTY.
48-3803. Board of directors
A. THE COUNTY BOARD OF SUPERVISORS SHALL SERVE AS THE BOARD OF DIRECTORS OF THE DISTRICT.
B. THE DIRECTORS SHALL NOT RECEIVE COMPENSATION FOR THEIR SERVICES AS SUCH, BUT ARE ENTITLED TO REIMBURSEMENT FOR THEIR NECESSARY EXPENSES IN ATTENDING DISTRICT MEETINGS AND TRAVELING IN AND OUT OF THIS STATE IF NECESSARY TO CONDUCT THE AFFAIRS OF THE DISTRICT.
48-3804. District as municipal corporation
A. A HEALTHCARE DISTRICT IS A TAX LEVYING PUBLIC IMPROVEMENT DISTRICT AND A MUNICIPAL CORPORATION FOR ALL PURPOSES OF ARTICLE XIII, SECTION 7, CONSTITUTION OF ARIZONA, TO THE EXTENT OF THE POWERS, PRIVILEGES AND IMMUNITIES CONFERRED BY THIS CHAPTER OR GRANTED GENERALLY TO MUNICIPAL CORPORATIONS BY THE CONSTITUTION AND STATUTES OF THIS STATE
B. THE BOARD IS REGARDED AS PERFORMING A GOVERNMENTAL FUNCTION IN CARRYING OUT THE PURPOSES OF THIS CHAPTER AND THE DISTRICT'S PROPERTY, BONDS, DEBTS, INCOME, INTEREST AND OTHER ASSETS AND LIABILITIES ARE EXEMPT FROM TAXATION.
48-3805. Administrative powers and duties
A. THE BOARD OF DIRECTORS, ON BEHALF OF THE DISTRICT, MAY:
1. ADOPT AND USE A CORPORATE SEAL.
2. SUE AND BE SUED.
3. ENTER INTO CONTRACTS, INCLUDING INTERGOVERNMENTAL AGREEMENTS UNDER TITLE 11, CHAPTER 7, ARTICLE 3, AS NECESSARY TO CARRY OUT THE PURPOSES AND REQUIREMENTS OF THIS CHAPTER.
4. ENTER INTO AGREEMENTS WITH OTHER HEALTH CARE ENTITIES AND OTHER ORGANIZATIONS, FOUNDATIONS OR PROVIDERS FOR ALL OR PART OF THE DISTRICT'S SERVICES OR FACILITIES, AS APPROPRIATE, FOR PROVIDING, MAINTAINING, ESTABLISHING OR ENHANCING HEALTH CARE SERVICES TO THE PUBLIC.
5. EMPLOY A CHIEF EXECUTIVE OFFICER AND OTHER NECESSARY OFFICERS AND EMPLOYEES, OR CONTRACT FOR OTHER MANAGEMENT PERSONNEL, AND PRESCRIBE THE TERMS AND CONDITIONS OF THEIR EMPLOYMENT AS NECESSARY TO CARRY OUT THE PURPOSES OF THE DISTRICT.
6. ACQUIRE AND OPERATE, MAINTAIN, LEASE, ENCUMBER AND DISPOSE OF REAL AND PERSONAL PROPERTY AND INTERESTS IN PROPERTY.
7. ADMINISTER TRUSTS DECLARED OR ESTABLISHED FOR THE DISTRICT, RECEIVE AND HOLD, IN TRUST OR OTHERWISE, PROPERTY LOCATED IN OR OUT OF THIS STATE AND, IF NOT OTHERWISE PROVIDED, DISPOSE OF THE PROPERTY FOR THE BENEFIT OF THE DISTRICT.
8. RETAIN LEGAL COUNSEL, WITH THE APPROVAL OF THE COUNTY ATTORNEY, AND SUCH OTHER PROFESSIONAL CONSULTANTS AS NECESSARY TO CARRY OUT THE PURPOSES OF THE DISTRICT.
9. USE ANY REVENUES RECEIVED BY THE DISTRICT FOR ANY PURPOSE OF THIS CHAPTER.
B. THE BOARD SHALL:
1. APPOINT FROM AMONG ITS MEMBERS A CHAIRMAN, A SECRETARY AND OTHER OFFICERS THAT ARE NECESSARY TO CONDUCT ITS BUSINESS. THE COUNTY TREASURER IS DESIGNATED EX OFFICIO AS THE TREASURER OF A DISTRICT ESTABLISHED UNDER THIS CHAPTER.
2. KEEP AND MAINTAIN A COMPLETE AND ACCURATE RECORD OF ALL OF ITS PROCEEDINGS. ALL PROCEEDINGS OF THE BOARD SHALL BE OPEN TO THE PUBLIC PURSUANT TO TITLE 38, CHAPTER 3, ARTICLE 3.1.
3. ADOPT ADMINISTRATIVE RULES NECESSARY TO ADMINISTER AND OPERATE THE DISTRICT AND ANY PROPERTY UNDER ITS JURISDICTION, INCLUDING AN EMPLOYEE MERIT SYSTEM AND COMPETITIVE PROCUREMENT PROCESS.
48-3806. Conflicts of interest; violation; classification
A. THE DIRECTORS, OFFICERS AND EMPLOYEES OF THE DISTRICT ARE SUBJECT TO TITLE 38, CHAPTER 3, ARTICLE 8, RELATING TO CONFLICTS OF INTEREST.
B. A DIRECTOR, OFFICER OR EMPLOYEE OF THE DISTRICT SHALL NOT HAVE ANY DIRECT OR INDIRECT FINANCIAL INTEREST IN ANY PROPERTY OWNED, OPERATED, PURCHASED OR CONSTRUCTED BY THE DISTRICT.
C. A PERSON WHO VIOLATES THIS SECTION IS GUILTY OF A CLASS 1 MISDEMEANOR.
48-3807. Indemnity coverage for benefits, losses and claims
THE BOARD MAY PROCURE INSURANCE OR ESTABLISH A SELF-INSURANCE PROGRAM TO MANAGE AND ADMINISTER A SYSTEM FOR DIRECT PAYMENT OF BENEFITS, LOSSES OR CLAIMS, OR ANY COMBINATION OF INSURANCE AND DIRECT PAYMENTS, AS PROVIDED BY SECTION 11-981 FOR EMPLOYEES AND OFFICERS OF THE DISTRICT OR FOR EMPLOYEES AND OFFICERS OF THE COUNTY.
48-3808. Public and confidential records
A. A DISTRICT SHALL DISCLOSE AND MAKE AVAILABLE RECORDS AND OTHER MATTERS IN THE SAME MANNER AS IS REQUIRED OF A PUBLIC BODY PURSUANT TO TITLE 39, CHAPTER 1, EXCEPT THAT THE DISTRICT IS NOT REQUIRED TO DISCLOSE OR MAKE AVAILABLE ANY RECORDS OR OTHER MATTERS THAT:
1. IDENTIFY THE CARE OR TREATMENT OF AN INDIVIDUAL PATIENT WHO RECEIVES SERVICES PROVIDED BY THE DISTRICT, INCLUDING BILLINGS, UNLESS THE PATIENT OR PATIENT'S REPRESENTATIVE CONSENTS TO THE DISCLOSURE IN WRITING.
2. REVEAL PROPRIETARY INFORMATION PROVIDED TO THE DISTRICT BY A NONGOVERNMENTAL SOURCE. FOR PURPOSES OF THIS PARAGRAPH, "NONGOVERNMENTAL" MEANS AN ENTITY OTHER THAN THE UNITED STATES GOVERNMENT, AN AGENCY OR INSTRUMENTALITY OF THE UNITED STATES GOVERNMENT OR A PUBLIC BODY AS DEFINED IN SECTION 39-121.01.
3. WOULD CAUSE DEMONSTRABLE AND MATERIAL HARM TO THE DISTRICT AND THAT WOULD PLACE IT AT A COMPETITIVE DISADVANTAGE IN THE MARKETPLACE.
4. WOULD VIOLATE AN EXCEPTION, PRIVILEGE OR CONFIDENTIALITY GRANTED OR IMPOSED BY STATUTE OR COMMON LAW.
B. THIS SECTION DOES NOT APPLY TO REPORTS OF STATISTICAL AND DEMOGRAPHIC DATA REQUIRED BY SECTION 36-125.05.
48-3809. Dissolution of district
A. A MAJORITY OF THE BOARD OF DIRECTORS MAY PROPOSE THAT THE DISTRICT BE DISSOLVED, BUT ONLY IF ALL CONTRACTUAL OBLIGATIONS AND DEBTS OF THE DISTRICT ARE SATISFIED OR THE COUNTY OR ANOTHER GOVERNMENTAL ENTITY OR ENTITIES ACCEPT DEDICATION OF ALL DISTRICT ASSETS AND LIABILITIES.
B. IF A DISTRICT IS DISSOLVED, ALL PROPERTY AND OTHER ASSETS OF THE DISTRICT BECOME THE PROPERTY OF THE COUNTY.
ARTICLE 2. ASSUMPTION OF HEALTH CARE RESPONSIBILITIES OF COUNTY
48-3831. Providing county health care services
A. THE DISTRICT AND THE COUNTY IN WHICH THE DISTRICT IS LOCATED MAY CONTRACT FOR THE DISTRICT TO PROVIDE AT LEAST THE HEALTH CARE SERVICES THE COUNTY IS REQUIRED TO PROVIDE UNDER THE CONSTITUTION AND STATUTES OF THIS STATE. ANY SUCH CONTRACT MUST STATE:
1. THE TERM OF THE CONTRACT, NOT TO EXCEED TWENTY-FIVE YEARS.
2. THE PURPOSE, TERMS, RIGHTS AND DUTIES OF THE DISTRICT AS AUTHORIZED BY THIS CHAPTER.
3. THE FINANCIAL CONTRIBUTIONS TO BE MADE BY EACH PARTY TO THE CONTRACT.
B. SECTION 42-17106 DOES NOT APPLY TO ANY COVENANT OR UNDERTAKING IN ANY CONTRACT AUTHORIZED BY THIS SECTION. ANY SUCH COVENANT OR UNDERTAKING CONSTITUTES A LAWFUL, LONG-TERM CONTRACT FOR ALL PURPOSES OF THE CONSTITUTION AND STATUTES OF THIS STATE.
48-3832. Conveyance of county property to district
A. THE BOARD OF SUPERVISORS OF THE COUNTY IN WHICH A DISTRICT IS ORGANIZED MAY TRANSFER TO THE DISTRICT, BY LEASE OR CONVEYANCE, ALL TITLE OR INTERESTS IN ASSETS, PROPERTY, OBLIGATIONS AND CONTRACTS HELD BY THE COUNTY AT THE TIME THE DISTRICT IS ORGANIZED IN ADDITION TO ALL DEPOSITS, OPERATING MONIES AND RESERVES AS REQUIRED BY LAW.
B. FOR THE PURPOSE OF ANY COVENANT, CONDITION OR RESOLUTION THAT MAY APPLY TO ANY REAL OR PERSONAL PROPERTY THAT IS LEASED OR TRANSFERRED TO THE DISTRICT, THE PROPERTY IS CONSIDERED TO BE USED FOR COUNTY HOSPITAL PURPOSES CONSISTENT WITH ANY DEED RESTRICTIONS APPLICABLE TO THE PROPERTY.
48-3833. Healthcare district advisory board
A. THE BOARD OF DIRECTORS SHALL APPOINT A HEALTHCARE DISTRICT ADVISORY BOARD HAVING THE SAME POWERS AND DUTIES AND BE COMPRISED OF THE SAME NUMBER AND QUALIFICATIONS AS A HOSPITAL BOARD ESTABLISHED PURSUANT TO TITLE 36, CHAPTER 1, ARTICLE 4, EXCEPT THAT THE ADVISORY BOARD SHALL REPORT TO THE DISTRICT BOARD OF DIRECTORS.
B. THE BOARD OF DIRECTORS MAY DELEGATE TO THE ADVISORY BOARD AUTHORITY FOR ESTABLISHING PATIENT CHARGES FOR SERVICES.
48-3834. Honoring outstanding county debt obligations
A. THE DISTRICT SHALL:
1. HONOR ALL COVENANTS AND OBLIGATIONS MADE BY THE ORGANIZING COUNTY PURSUANT TO TITLE 35, CHAPTER 3, ARTICLE 7 WITH RESPECT TO ASSETS TRANSFERRED BY THE COUNTY TO THE DISTRICT.
2. ASSUME AND PERFORM ALL COVENANTS, CONDITIONS AND REQUIREMENTS UNDERTAKEN BY THE COUNTY PURSUANT TO TITLE 35, CHAPTER 3, ARTICLE 7 WITH RESPECT TO BONDS ISSUED TO ACQUIRE ANY ASSET TRANSFERRED TO THE DISTRICT.
3. COMPLY WITH ALL COVENANTS AND CONDITIONS AGAINST PRIVATE USE, PRIVATE SECURITY INTERESTS AND PRIVATE LOANS CONTAINED IN ANY INSTRUMENT OR PROCEEDING THAT PERTAINS TO ISSUING BONDS, NOTES OR OTHER OBLIGATIONS OF THE COUNTY ISSUED TO ORIGINALLY ACQUIRE, CONSTRUCT OR PURCHASE ASSETS TRANSFERRED TO THE DISTRICT BY THE COUNTY.
B. NOTWITHSTANDING ANY OTHER LAW, ANY ACTION TAKEN BY THE DISTRICT IN VIOLATION OF THIS SECTION IS VOID.
ARTICLE 3. DISTRICT FINANCES
48-3851. District budget
A. NOT LATER THAN JUNE 30 OF EACH YEAR THE BOARD OF DIRECTORS SHALL HOLD A PUBLIC HEARING TO ADOPT AND SUBMIT TO THE CLERK OF THE COUNTY BOARD OF SUPERVISORS A BUDGET FOR THE FOLLOWING FISCAL YEAR THAT INCLUDES:
1. RECEIPTS DURING THE PAST FISCAL YEAR.
2. EXPENDITURES DURING THE PAST FISCAL YEAR.
3. ESTIMATES OF AMOUNTS NECESSARY FOR EXPENSES DURING THE FOLLOWING FISCAL YEAR INCLUDING AMOUNTS PROPOSED FOR:
(a) COSTS OF MAINTAINING, OPERATING AND MANAGING THE DISTRICT.
(b) PROMOTIONAL AND MARKETING EXPENSES OF THE DISTRICT FOR THE FOLLOWING YEAR.
4. ANTICIPATED REVENUE TO THE DISTRICT IN THE FOLLOWING FISCAL YEAR.
5. A COMPLETE ASSET AND LIABILITY STATEMENT.
6. A STATEMENT OF PROFIT OR LOSS FROM OPERATIONS.
7. CASH ON HAND AS OF THE DATE THE BUDGET IS ADOPTED AND THE ANTICIPATED BALANCE AT THE END OF THE CURRENT FISCAL YEAR.
8. AN ITEMIZED STATEMENT OF COMMITMENTS, RESERVES AND ANTICIPATED OBLIGATIONS FOR THE FOLLOWING FISCAL YEAR.
B. THE BOARD MAY AMEND THE BUDGET ON A FINDING OF GOOD CAUSE.
48-3852. Transaction privilege tax
A. THE BOARD OF DIRECTORS BY RESOLUTION MAY LEVY, AND IF LEVIED, THE DEPARTMENT OF REVENUE SHALL COLLECT, A TRANSACTION PRIVILEGE TAX PURSUANT TO THIS SECTION TO BE USED AND SPENT FOR THE PURPOSES DESCRIBED IN THIS CHAPTER. THE BOARD SHALL SET THE RATE OF THE TAX AT NOT MORE THAN TWO PER CENT OF THE TAX RATE PRESCRIBED BY SECTION 42-5010, SUBSECTION A THAT APPLIED ON THE DATE THE TAX IS LEVIED. THE BOARD SHALL LEVY THE TAX ON EACH PERSON ENGAGING IN THE DISTRICT IN A BUSINESS TAXED UNDER TITLE 42, CHAPTER 5, ARTICLE 1.
B. EACH MONTH THE STATE TREASURER SHALL REMIT TO THE DISTRICT TREASURER THE NET REVENUES COLLECTED UNDER SUBSECTION A OF THIS SECTION DURING THE PRECEDING MONTH. THE DISTRICT TREASURER SHALL DEPOSIT THE MONIES IN THE DISTRICT'S ACCOUNTS AND SHALL ACCOUNT FOR ALL EXPENDITURES.
C. IN LIEU OF A TRANSACTION PRIVILEGE TAX PURSUANT TO SUBSECTION A OF THIS SECTION, THE BOARD BY RESOLUTION MAY LEVY A DISTRICT AD VALOREM PROPERTY TAX IN THE SAME MANNER AND AT THE SAME TIME AS OTHER COUNTY SECONDARY PROPERTY TAXES ARE LEVIED. THE TAX SHALL NOT EXCEED TWENTY-FIVE CENTS PER ONE HUNDRED DOLLARS OF ASSESSED VALUATION AND SHALL BE LEVIED ON ALL TAXABLE PROPERTY IN THE COUNTY, INCLUDING PROPERTY IN INCORPORATED CITIES AND TOWNS IN THE COUNTY. THE DISTRICT SHALL DEPOSIT ALL MONIES COLLECTED PURSUANT TO THIS SUBSECTION IN A SEPARATE ACCOUNT AND SHALL ACCOUNT FOR ALL EXPENDITURES.
48-3853. Handling district monies
A. THE DISTRICT SHALL DEPOSIT ALL MONIES IT RECEIVES FROM ANY SOURCE WITH THE COUNTY TREASURER TO THE CREDIT OF THE HEALTHCARE DISTRICT. THE MONIES MAY BE PAID OUT ONLY ON WARRANTS APPROVED BY THE BOARD OF DIRECTORS.
B. THE BOARD MAY DIRECT THE COUNTY TREASURER TO INVEST AND REINVEST ALL DISTRICT MONIES AS A SINKING FUND. THE INVESTMENTS SHALL BE MADE FOR THE BEST INTERESTS OF THE DISTRICT.
C. THE MONIES MAY BE INVESTED AND REINVESTED UNDER THE AUTHORITY OF THE FEDERAL FARM CREDIT ACT OF 1933, OR INVESTED AND REINVESTED IN ANY OF THE FOLLOWING:
1. UNITED STATES TREASURY OBLIGATIONS.
2. CONSOLIDATED FARM LOAN BONDS.
3. OBLIGATIONS ISSUED BY THE FEDERAL INTERMEDIATE CREDIT BANKS OR BY BONDS FOR COOPERATIVES ON AUTHORITY OF THE FARM CREDIT ACT OF 1933.
4. ANY OTHER OBLIGATIONS GUARANTEED BY THE UNITED STATES GOVERNMENT.
5. ANY INVESTMENTS THAT ARE AUTHORIZED BY ANY OTHER AGENCIES OF THE UNITED STATES GOVERNMENT AND THAT ARE AUTHORIZED TO SECURE PUBLIC DEPOSITS.
6. STATE AND LOCAL GOVERNMENT SERIES UNITED STATES TREASURY SECURITIES.
7. STATE, COUNTY OR MUNICIPAL BONDS ISSUED IN THIS STATE AND ON WHICH THE PAYMENTS OF INTEREST HAVE NOT BEEN DEFERRED.
8. INVESTMENT AGREEMENTS AND REPURCHASE AGREEMENTS COLLATERALIZED BY INVESTMENTS DESCRIBED IN PARAGRAPHS 1 THROUGH 5.
D. THE PURCHASE OF THE SECURITIES SHALL BE MADE BY THE COUNTY TREASURER ON AUTHORITY OF A RESOLUTION OF THE BOARD OF DIRECTORS. THE COUNTY TREASURER SHALL BE THE CUSTODIAN OF ALL SECURITIES SO PURCHASED. THE INVESTMENTS MAY BE LIQUIDATED ON AN ORDER OF THE BOARD OF DIRECTORS.
E. ALL MONEY EARNED AS INTEREST OR OTHERWISE DERIVED BY VIRTUE OF THE PROVISIONS OF THIS SECTION SHALL BE CREDITED TO THE SINKING FUND.
48-3854. Compromise of claims for services
THE BOARD OF DIRECTORS MAY DELEGATE TO THE CHIEF EXECUTIVE OFFICER THE AUTHORITY TO COMPROMISE CLAIMS FOR SERVICES PROVIDED BY THE DISTRICT UP TO TWENTY-FIVE THOUSAND DOLLARS, AND UP TO SEVENTY-FIVE THOUSAND DOLLARS WITH APPROVAL OF THE HEALTHCARE DISTRICT ADVISORY BOARD.
48-3855. Solicitations of financial contributions
THE BOARD OF DIRECTORS MAY ESTABLISH A FOUNDATION OR CHARITABLE ORGANIZATION TO SOLICIT DONATIONS OF FINANCIAL CONTRIBUTIONS, REAL OR PERSONAL PROPERTY AND SERVICES FOR USE SOLELY FOR PERFORMING THE DUTIES AND OBLIGATIONS OF THE DISTRICT.
48-3856. Reimbursement for county services
SERVICES PROVIDED BY A COUNTY TO A HEALTHCARE DISTRICT ARE SUBJECT TO REIMBURSEMENT PURSUANT TO SECTION 11-251.06.
48-3857. Annual audit
THE DISTRICT SHALL SUBMIT AN INDEPENDENTLY AUDITED FINANCIAL STATEMENT TO THE AUDITOR GENERAL WITHIN NINETY DAYS AFTER THE CLOSE OF EACH FISCAL YEAR. THE AUDITOR GENERAL SHALL REVIEW THE STATEMENT AND TRANSMIT IT WITH A REPORT TO THE COUNTY BOARD OF SUPERVISORS.
ARTICLE 4. DISTRICT BONDS
48-3881. District bonds; election
A. A DISTRICT MAY ISSUE BONDS FOR THE PURPOSE OF CARRYING OUT ANY OF THE PROVISIONS OF THIS CHAPTER.
B. IF THE BOARD OF DIRECTORS DETERMINES THAT BONDS SHOULD BE ISSUED, IT SHALL SUBMIT THE ISSUE TO THE BOARD OF SUPERVISORS, AND THE BOARD OF SUPERVISORS SHALL SUBMIT THE QUESTION TO THE QUALIFIED ELECTORS IN THE COUNTY IN THE MANNER PRESCRIBED BY TITLE 35, CHAPTER 3, ARTICLE 3. IF A MAJORITY OF THE ELECTORS VOTING ON THE ISSUE APPROVE, THE BONDS SHALL BE ISSUED AS PROVIDED BY LAW.
48-3882. Securing district bonds
IN CONNECTION WITH ISSUING BONDS AND TO SECURE THE PRINCIPAL AND INTEREST ON THE BONDS, THE BOARD BY RESOLUTION MAY PLEDGE OR ENCUMBER FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON THE BONDS ALL OR PART OF ANY REVENUES AND OTHER MONIES RECEIVED BY THE DISTRICT
48-3883. Reserves; tax levy to maintain reserves
A. ANY BONDS ISSUED UNDER THIS ARTICLE MAY CONTAIN A PROVISION REQUIRING THE ESTABLISHMENT OF A RESERVE OR RESERVES IN AN AMOUNT EQUAL TO THE REQUIREMENTS OF PRINCIPAL AND INTEREST PAYMENTS FOR THE TWO YEARS DURING THE LIFE OF THE BONDS REQUIRING THE LARGEST AMOUNT OF PRINCIPAL AND INTEREST PAYMENTS. THE DISTRICT SHALL MAINTAIN THE RESERVE DURING THE LIFE OF THE BOND ISSUE FOR THE PURPOSE OF PROTECTING AGAINST ANY DEFICIENCY IN TAX COLLECTIONS.
B. IF IT BECOMES NECESSARY TO WITHDRAW MONIES FROM THE RESERVE TO PROTECT AGAINST ANY DEFICIENCY, THE BOARD OF DIRECTORS OF THE DISTRICT SHALL LEVY A TAX ON THE TAXABLE PROPERTY IN THE DISTRICT SUFFICIENT TO MAINTAIN THE RESERVE FUND IN THE ORIGINAL AMOUNT. IN MAKING THE LEVY FOR THE PAYMENT OF PRINCIPAL AND INTEREST FOR THE LAST YEAR WHEN THE BONDS MATURE, THE BOARD OF DIRECTORS SHALL TAKE INTO CONSIDERATION THE AMOUNT OF MONEY THEN IN THE RESERVE FUND AND SHALL LEVY AN AMOUNT SUFFICIENT TO PAY THE PRINCIPAL AND INTEREST ON THE BONDS, LESS THE AMOUNT THEN IN THE RESERVE FUND.
48-3884. Characteristics of bonds; negotiable; obligation; legal investments; exemption from taxation
A. BONDS ISSUED UNDER THIS ARTICLE ARE FULLY NEGOTIABLE WITHIN THE MEANING AND FOR ALL PURPOSES OF THE UNIFORM COMMERCIAL CODE, SUBJECT ONLY TO ANY PROVISIONS FOR REGISTRATION, REGARDLESS OF WHETHER THE BONDS ACTUALLY CONSTITUTE NEGOTIABLE INSTRUMENTS UNDER THE UNIFORM COMMERCIAL CODE.
B. THE BONDS, THEIR TRANSFER AND THE INCOME FROM THE BONDS ARE AT ALL TIMES FREE FROM TAXATION IN THIS STATE.
C. BONDS ISSUED UNDER THIS ARTICLE:
1. ARE OBLIGATIONS OF THE DISTRICT AND ARE NOT GENERAL, SPECIAL OR OTHER OBLIGATIONS OF THIS STATE OR THE COUNTY. THE MEMBERS OF THE BOARD AND PERSONS WHO EXECUTE THE BONDS ARE NOT PERSONALLY LIABLE FOR PAYMENT OF THE BONDS.
2. ARE PAYABLE ONLY ACCORDING TO THEIR TERMS.
3. DO NOT CONSTITUTE A DEBT OF THIS STATE OR OF THE COUNTY.
4. ARE NOT ENFORCEABLE AGAINST THIS STATE OR THE COUNTY NOR IS PAYMENT OF THE BONDS ENFORCEABLE OUT OF ANY MONIES OTHER THAN THE REVENUE PLEDGED AND ASSIGNED TO OR IN TRUST FOR THE BENEFIT OF THE HOLDER OR HOLDERS OF THE BONDS.
5. ARE SECURITIES IN WHICH PUBLIC OFFICERS AND BODIES OF THIS STATE AND OF MUNICIPALITIES AND POLITICAL SUBDIVISIONS OF THIS STATE, ALL COMPANIES, ASSOCIATIONS AND OTHER PERSONS CARRYING ON AN INSURANCE BUSINESS, ALL FINANCIAL INSTITUTIONS, INVESTMENT COMPANIES AND OTHER PERSONS CARRYING ON A BANKING BUSINESS, ALL FIDUCIARIES AND ALL OTHER PERSONS WHO ARE AUTHORIZED TO INVEST IN GOVERNMENT OBLIGATIONS MAY PROPERLY AND LEGALLY INVEST.
6. ARE SECURITIES THAT MAY BE DEPOSITED WITH PUBLIC OFFICERS OR BODIES OF THIS STATE AND MUNICIPALITIES AND POLITICAL SUBDIVISIONS OF THIS STATE FOR PURPOSES THAT REQUIRE THE DEPOSIT OF GOVERNMENT BONDS OR OBLIGATIONS.
48-3885. Effect of changing circumstances on bonds; agreement of state
A. BONDS ISSUED UNDER THIS ARTICLE REMAIN VALID AND BINDING OBLIGATIONS OF THE DISTRICT NOTWITHSTANDING THAT BEFORE THE DELIVERY OF THE BONDS ANY OF THE PERSONS WHOSE SIGNATURES APPEAR ON THE BONDS CEASE TO BE OFFICERS OF THE DISTRICT.
B. AN AMENDMENT OF ANY PROVISION IN THIS CHAPTER DOES NOT DIMINISH OR IMPAIR THE VALIDITY OF BONDS ISSUED UNDER THIS ARTICLE OR THE REMEDIES AND RIGHTS OF BONDHOLDERS.
C. THIS STATE PLEDGES TO AND AGREES WITH THE HOLDERS OF THE BONDS AUTHORIZED BY THIS ARTICLE THAT THIS STATE WILL NOT LIMIT, ALTER OR IMPAIR THE RIGHTS VESTED IN THE DISTRICT TO RECEIVE THE MONIES NECESSARY TO FULFILL THE TERMS OF ANY AGREEMENTS MADE WITH THE HOLDERS OF THE BONDS, OR IN ANY WAY IMPAIR THE RIGHTS AND REMEDIES OF THE BONDHOLDERS, UNTIL ALL BONDS ISSUED UNDER THIS ARTICLE, TOGETHER WITH INTEREST ON THE BONDS, INTEREST ON ANY UNPAID INSTALLMENTS OF PRINCIPAL OR INTEREST AND ALL COSTS AND EXPENSES IN CONNECTION WITH ANY ACTION OR PROCEEDINGS BY OR ON BEHALF OF THE BONDHOLDERS, ARE FULLY MET AND DISCHARGED. THE BOARD, AS AGENT FOR THIS STATE, MAY INCLUDE THIS PLEDGE AND UNDERTAKING IN ITS RESOLUTIONS AND INDENTURES AUTHORIZING AND SECURING ITS BONDS.