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Statutes > Texas > Health-and-safety-code > Title-4-health-facilities > Chapter-282-hospital-districts-in-counties-of-75-000-or-less

HEALTH AND SAFETY CODE

TITLE 4. HEALTH FACILITIES

SUBTITLE D. HOSPITAL DISTRICTS

CHAPTER 282. HOSPITAL DISTRICTS IN COUNTIES OF 75,000 OR LESS

SUBCHAPTER A. CREATION OF DISTRICT

Sec. 282.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of trustees of a district.

(2) "District" means a hospital district created under this

chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.002. DISTRICT AUTHORIZATION. (a) The commissioners

court of a county with a population of 75,000 or less and an

assessed property valuation of at least $200,000,000 may create

one or more hospital districts.

(b) The district may include a municipality or town, or a part

of a municipality or town, but the district may not include part

of another district.

(c) To be formed the proposed district must be composed of

territory having property of an assessed value of more than

$25,000,000.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.003. CREATION ELECTION REQUIRED. The creation of the

district must be approved by a majority of the qualified voters

of the area of the proposed district who vote at an election

ordered and held for that purpose.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.004. PETITION FOR ELECTION. (a) To propose the

establishment of a district:

(1) a petition for a creation election signed by at least five

percent of the qualified property taxpaying voters of the area of

the proposed district must be presented to the commissioners

court; and

(2) $200 in cash must be deposited with the county clerk at the

time of the presentation of the petition.

(b) The petition must state:

(1) the boundaries of the proposed district;

(2) the public necessity for the proposed district; and

(3) the name of the proposed district which includes the county

name.

(c) The petition may include a request for the commissioners

court to provide on the ballot at the creation election for

voting for or against:

(1) imposing a tax to provide funds to construct, equip,

maintain, or purchase hospital buildings or land for the

district; or

(2) the issuance of bonds to acquire sites for and to construct

hospital buildings and imposing a tax at the rate necessary to

create an interest and sinking fund sufficient to pay the

principal of and interest on the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.005. HEARING; ELECTION ORDER. (a) When the petition

is presented to the commissioners court, the commissioners court

shall:

(1) set a date for a hearing on the petition at a regular

session or special session called for that purpose, not less than

30 days nor more than 60 days after the date on which the

petition is presented; and

(2) order the county clerk to give notice of the date and place

of the hearing by posting a copy of the petition and the order

for at least 20 days before the date of the election at the

courthouse door and at four other places in the proposed

district.

(b) If the court finds at the hearing that the petition meets

the requirements of this chapter, the court shall order an

election to be held on the first authorized uniform election date

prescribed by the Election Code that allows sufficient time to

comply with other requirements of law.

(c) The order must contain a description of the metes and bounds

of the proposed district and must set the date of the election.

(d) The ballot for election shall be printed to provide for

voting for or against:

(1) the creation of the district; and

(2) if the petition includes a request under Section 282.004(c),

the imposition of a tax or the issuance of bonds according to the

terms of the petition.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.006. ELECTION COSTS; DISPOSITION OF DEPOSIT. (a) The

county clerk shall retain the amount deposited under Section

282.004(a) until the commissioners court declares the election

results.

(b) If at the election the majority of the voters approved the

creation of the district, the county clerk shall return that

amount to the petitioners or the petitioners' agent or attorney.

(c) If at the election the majority of the voters disapproved

the creation of the district, the county clerk shall:

(1) pay from the amount deposited on warrants approved and

signed by the county judge, all costs and expenses pertaining to

the proposed district, including the costs related to the

elections;

(2) return the remaining amount, if any, to the petitioners or

the petitioners' agent or attorney.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 282.021. ELECTION OF BOARD. (a) Board members shall be

elected from the district at large.

(b) Initial board members shall be elected at the district

creation election.

(c) A person who wishes to have his name printed on the ballot

as a candidate to serve as an initial district board member must

present to the commissioners court a petition requesting that the

person's name be placed on the ballot at the district creation

election. The petition must be accompanied by a second petition

signed by at least 100 qualified voters of the proposed district

requesting that the person's name be placed on the ballot as a

candidate for board membership. The petitions must be filed with

the commissioners court before the third day before the date on

which the election order is issued.

(d) The commissioners court shall declare that the five

candidates receiving the highest number of votes at the initial

election of board members are district board members. When they

are qualified under this chapter, the candidates shall serve as

district board members.

(e) The initial board members shall serve as district board

members until the next regular election of state and county

officers. An election for board members shall be held at that

time and at the general election in each second year after that

time.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.0211. OPTIONAL FOUR-YEAR TERMS. (a) The board may, on

its own motion, order that board members are to be elected in

even-numbered years to serve staggered four-year terms.

(b) The first election of board members in an even-numbered year

that occurs at least 120 days after the date on which an order is

entered under Subsection (a) shall be held as previously

scheduled. The three candidates receiving the highest number of

votes at that election serve for a term of four years. The

remaining two directors elected at that election serve for a term

of two years. Subsequent members shall be elected in

even-numbered years and shall serve four-year terms.

Added by Acts 1991, 72nd Leg., ch. 645, Sec. 1, eff. June 16,

1991.

Sec. 282.022. OATH AND BOND. (a) Before assuming the duties of

office on the board, each district board member elect must:

(1) take and subscribe an oath before the county judge to

faithfully and impartially discharge the duties of a board member

and to give an account of the member's activities to the

commissioners court when requested to do so; and

(2) execute a good and sufficient bond for $5,000 payable to the

county judge for the use and benefit of the district, conditioned

on the faithful performance of the person's duties as a board

member.

(b) The county clerk shall file and maintain the oath as part of

the district records.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.023. COMPENSATION. A board member serves without

compensation but is entitled to reimbursement for actual expenses

incurred in the performance of official duties.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.024. OFFICERS. The board shall elect from among its

members a chairman, a secretary, and other officers the board

considers appropriate.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.025. QUORUM; MEETING PROCEDURE AND RECORD. (a) Three

board members constitute a quorum.

(b) All board proceedings shall be by motion or resolution and

shall be recorded in a book kept for that purpose. The book is a

public record.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.026. SEAL. The board shall adopt an official seal.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.027. SUPERINTENDENT; DUTIES. (a) The board shall

appoint a superintendent to serve as the district's chief

administrator.

(b) The superintendent serves at the will of the board and is

responsible to the board for the efficient administration of

hospital affairs.

(c) The superintendent is entitled to compensation as determined

by the board.

(d) The superintendent may attend board meetings and meetings of

a board committee and may participate in the discussion of

matters within the superintendent's functions, but the

superintendent may not vote on matters considered by the board.

(e) The superintendent shall:

(1) control administrative functions of the hospital;

(2) carry out the board orders;

(3) ensure that the district complies with state law relating to

matters within the superintendent's functions; and

(4) fully advise the board of the district's financial condition

and needs.

(f) At least once a year, the superintendent shall:

(1) prepare an estimate of administrative expenses for the

succeeding fiscal year;

(2) recommend to the board and estimate the cost of improvements

to be made in the succeeding fiscal year;

(3) certify to the board district bills, allowances, and

payrolls, including public works contractors' claims; and

(4) recommend to the board salary amounts of district employees

under the administrator and a salary scale to be paid for

different services required by the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.028. OTHER OFFICERS AND DISTRICT EMPLOYEES. (a) The

board shall appoint other district officers that the board

considers necessary.

(b) A person appointed under Subsection (a) serves at the will

of the board and is entitled to receive compensation as

determined by the board.

(c) The board may contract with or employ legal, technical, and

professional assistance and other employees.

(d) If the superintendent is temporarily incapacitated or

absent, the board may designate a competent person to perform the

superintendent's powers or duties.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER C. GENERAL POWERS AND DUTIES

Sec. 282.041. MANAGEMENT, CONTROL, AND ADMINISTRATION. (a) The

board shall manage, control, and administer the district.

(b) The board is a corporate body in the name of the

"____________ County Public Hospital District No. __________."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.042. DISTRICT RULES. The board may adopt rules and

bylaws the board considers proper.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.043. POWERS RELATING TO DISTRICT PROPERTY, FACILITIES,

AND EQUIPMENT. (a) On the district's behalf, the board may

hold, construct, condemn, purchase, acquire, lease, add to,

maintain, operate, develop, regulate, sell, and convey land,

property, a property right, equipment, a hospital facility, or a

hospital system to maintain a district hospital, building,

structure, or other facility.

(b) The board may lease an existing hospital, equipment, or

property used in connection with a district hospital and

equipment at a rate the board considers proper.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.044. CONTRACTING AUTHORITY. (a) In performing its

powers under this subchapter the board may contract with:

(1) the federal government;

(2) this state;

(3) a municipality; and

(4) another hospital district.

(b) The district may incur indebtedness or borrow money for

district purposes on the credit of the district or secured by the

revenues of a district hospital.

(c) The district may contract with another community,

corporation, or individual for services provided by the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.045. PURCHASING PROCEDURES. The district is subject to

the County Purchasing Act (Subchapter C, Chapter 262, Local

Government Code), and the board shall comply with the competitive

bidding or proposal procedures prescribed by that Act.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.046. EMINENT DOMAIN. (a) On a resolution by the

board, the district may exercise the power of eminent domain for

the acquisition of property necessary to carry out the powers and

duties of the district, including preventing damage to district

property, property rights, equipment, hospital facilities and

systems, and property adjacent to district property.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code, for the

exercise of that power by a municipality.

(c) The district may not exercise the power of eminent domain

against:

(1) a hospital, clinic, or sanatorium operated as a charitable,

nonprofit establishment or operated by a religious organization;

or

(2) a privately owned or operated hospital or clinic, whether or

not incorporated.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.047. GIFTS AND ENDOWMENTS. The board may accept

bequests and contributions on behalf of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.048. AUTHORITY TO SUE AND BE SUED; DISTRICT LIABILITY.

(a) The board may sue and be sued on behalf of the district.

(b) A suit against the district must be brought in the county in

which the district is located.

(c) The district is not liable for negligence for an act of a

district officer, agent, or employee.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.049. OTHER BOARD POWERS. The board may:

(1) promote health in the district;

(2) print and publish information; and

(3) do any other thing necessary to the performance of the

board's duties under this chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.050. PROVISION OF HOSPITAL SERVICES. (a) The district

shall provide adequate hospital services for the district. A

person who resides in the district is entitled to receive those

services at available district hospital facilities at a rate

determined by the board and in any manner the board considers

expedient or necessary under existing conditions. The district

may provide the services in hospitals located outside the

district.

(b) The district may furnish hospital services to a person who

does not reside in the district at a reasonable and fair rate the

board considers proper, but the district shall give priority to a

district resident in the provision of hospital services.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER D. DISTRICT FINANCES

Sec. 282.061. ANNUAL REPORT. (a) Not later than June 1 of each

year, the board shall prepare and file with the commissioners

court a full, detailed report of the condition of the district.

The report must include:

(1) an estimate of the cost of maintenance, operation, and

needed repairs for the succeeding year;

(2) an inventory of all funds and other property of the

district; and

(3) a list of all legal demands, debts, and obligations against

the district.

(b) The board shall verify the report.

(c) The commissioners court shall carefully investigate and

consider the report before setting a tax rate.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.062. TREASURER. (a) The county treasurer of the

county in which the district is located serves as treasurer of

the construction and maintenance fund and the interest and

sinking fund of the district.

(b) All money to be credited to the construction and maintenance

fund or the interest and sinking fund shall be paid to the

treasurer.

(c) The treasurer may not pay money from the construction and

maintenance fund or the interest and sinking fund unless the

treasurer receives a warrant ordering the payment signed by the

district board chairman or another district officer designated by

the board.

(d) The treasurer shall open a construction and maintenance fund

account and an interest and sinking fund account with the

district and shall keep a record of all of the district's money

received for the accounts and paid from the accounts. The

treasurer may not pay money from the accounts except on a voucher

signed by the chairman or two board members.

(e) The treasurer shall maintain a file of the payment orders

from the accounts.

(f) As required by the board or the commissioners court, the

treasurer shall give a correct accounting to the board or the

commissioners court of all matters relating to the accounts.

(g) For services on behalf of the district, the treasurer is

entitled to receive an amount equal to:

(1) one-fourth of one percent of all money received by the

treasurer for the construction and maintenance fund or the

interest and sinking fund; and

(2) one-eighth of one percent of all money received by the

treasurer and paid out of the construction and maintenance fund

or the interest and sinking fund of the district.

(h) The treasurer is not entitled to receive a commission under

Subsection (g) on district money the treasurer receives from the

preceding treasurer.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 119, eff. Sept. 1,

1991.

Sec. 282.063. DISTRICT FUNDS; INVESTMENT OF FUNDS. (a) The

treasurer shall maintain a construction and maintenance fund and

an interest and sinking fund for the district and shall place

money in those funds as required by this chapter or as the board

by resolution directs. All other money received by the district

shall be placed in a fund or funds as provided by the board.

(b) The amount of taxes collected that is necessary to pay the

principal of and interest on the bonds as they mature shall be

credited to the interest and sinking fund. All money received by

the district from the sale of bonds shall be credited to the

construction and maintenance fund.

(c) The treasurer shall pay from the construction and

maintenance fund or from a fund or funds designated by the board

the expenses, debts, and obligations of the district created

after the filing of the original petition and incurred in the

creation, operation, and maintenance of the district, other than

the principal of and interest on bonds.

(d) The interest and sinking fund may be invested for the

benefit of the district in bonds and securities approved by the

attorney general.

(e) The construction and maintenance fund and interest and

sinking fund shall be held for the purposes for which they were

created. If money is improperly paid from either fund, the

commissioners court may require the county treasurer to transfer

to the fund from the district account the amount necessary to

restore that amount.

(f) District funds shall be deposited in the county depositories

in the manner required by law for county depositories. Interest

collected on those funds belongs to the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 119, eff. Sept. 1,

1991.

Sec. 282.064. FISCAL YEAR. (a) The district operates on the

fiscal year established by the board.

(b) The fiscal year may not be changed if revenue bonds of the

district are outstanding.

(c) The fiscal year may not be changed more than once in any

24-month period.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 120, eff. Sept. 1,

1991.

Sec. 282.065. ANNUAL AUDIT; OPEN RECORDS. (a) The board

annually shall have an audit made of the financial condition of

the district.

(b) The audit and other district records are open to inspection

during regular business hours at the district's principal office.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 120, eff. Sept. 1,

1991.

SUBCHAPTER E. DISTRICT BONDS

Sec. 282.071. GENERAL OBLIGATION BONDS. The commissioners court

may issue and sell bonds in the district's name and on the

district's faith and credit to acquire or construct hospital

buildings or land if the bonds are approved by a majority of the

qualified voters at the election to create the district in

accordance with Subchapter A.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.072. INTEREST, MATURITY, AND DENOMINATION. (a)

District bonds mature not more than 30 years after their date and

bear interest at a rate ordered by the commissioners court but

not more than six percent annually.

(b) The bonds must provide the interest rate and the time,

place, manner, and conditions of payment as ordered by the

commissioners court.

(c) The bonds may be payable annually or semiannually.

(d) The bonds must be issued in denominations of not less than

$100 nor more than $1,000.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.073. EXECUTION OF BONDS. The county judge shall sign

the bonds, and the county clerk shall attest the signature and

place the seal of the court on the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.074. APPROVAL AND REGISTRATION OF BONDS. (a) Before

the bonds are offered for sale, the district shall forward to the

attorney general:

(1) a copy of the bonds to be issued;

(2) a certified copy of the court order imposing the tax to pay

the interest on the bonds and provide a sinking fund;

(3) a statement of the total bonded indebtedness of the

district, including the series of bonds proposed;

(4) the assessed value of property for the purpose of taxation

as shown by the most recent official county assessment; and

(5) any other information that the attorney general requires.

(b) The attorney general shall:

(1) examine the bonds; and

(2) certify the bonds if the attorney general determines that

the bonds are issued in conformity with the constitution and law

and that they are valid and binding obligations of the district.

(c) When the bonds are approved by the attorney general, the

comptroller shall register the bonds in a book kept for that

purpose and maintain the certificate of approval for the bonds.

(d) On approval and registration under this section, the bonds

are incontestable for any cause. The certificate of approval or a

certified copy of the certificate is admissible evidence in a

suit to enforce the collection of the bonds as prima facie proof

of the validity of the bonds with attached coupons. In that suit,

only forgery or fraud may be offered as a defense against the

validity of the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.075. BOND RECORD BOOK. (a) Before issuing the bonds,

the commissioners court shall provide to the county clerk a

well-bound book in which the clerk shall record all bonds issued,

including the following information:

(1) the bond numbers, amount, rate of interest, and date of

issue;

(2) the date when the bonds are due;

(3) the place where the bonds are payable;

(4) the amount received for each bond;

(5) the annual assessment made to pay bond interest and to

provide a sinking fund to pay the bonds; and

(6) the payment made of each bond.

(b) The record book must be open for inspection at all times by

a taxpayer of the district or a bondholder.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.076. COMPENSATION OF COUNTY CLERK. For recording

services provided to the district, the county clerk is entitled

to receive fees as provided by Chapter 118, Local Government

Code.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.077. BOND OF COUNTY JUDGE. (a) When the bonds are

registered, the county judge shall execute a good and sufficient

bond, approved by the board and payable to the board, for an

amount not less than the amount of the bonds issued. The bond

must be conditioned on the faithful performance of the judge's

duties.

(b) If the bond is executed by a satisfactory surety, the

district may pay from the district construction and maintenance

fund a reasonable premium on the bond on receipt of an invoice

for the premium. If the amount of the premium is disputed as

unreasonable, a court of competent jurisdiction may determine

whether or not the premium is reasonable.

(c) The board may charge the cost of the bond premium against

the commission allowed the county judge on the sale of district

bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.078. SALE OF THE BONDS. (a) When the bonds are

registered, the county judge, under the direction of the

commissioners court, shall advertise and sell the bonds on the

best terms and for the best price possible, but for a price not

less than the sum of the amounts of the par value and the accrued

interest.

(b) The county judge shall give the money received from the sale

of a bond to the county treasurer.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.079. DISPOSITION OF UNNEEDED BONDS. With the consent

of the commissioners court made of record, bonds that are not

required for the purpose for which they were voted may be sold

and the proceeds may be used to maintain, preserve, and operate

the district hospital and to pay district debts and other

obligations.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.080. ADDITIONAL BOND ISSUE AND ELECTION. (a) The

board shall certify to the commissioners court the necessity for

an additional bond issue if:

(1) the proceeds of the original bond issue are insufficient to

complete the construction, equipment, maintenance, or purchase of

hospital buildings or land for the district; or

(2) the board decides to provide for additional construction,

equipment, maintenance, or purchase of hospital buildings or

land.

(b) The certification must state:

(1) the amount required;

(2) the purpose for the funds;

(3) the rate of interest of the proposed bonds; and

(4) the maturity date of the proposed bonds.

(c) When the commissioners court receives the certification, the

commissioners court shall order an election on the issuance of

the bonds to be held in the district on the first uniform

election date prescribed by the Election Code that allows

sufficient time to comply with other requirements of law.

(d) The sum of the amount of any outstanding bonds and the

amount of additional bonds issued under this section may not

exceed one-fourth of the assessed value of the real property in

the district, as shown by the most recent annual assessment made

for county taxation.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.081. CHANGE IN USE OF BOND PROCEEDS AFTER BOND

ISSUANCE. (a) After the issuance of bonds, the board may change

the use of the bond proceeds to include a change or improvement

to the district hospital if the change or improvement will not

increase the cost of the proposed project beyond the amount of

the authorized bonds.

(b) The board may make the change in the use of the bond

proceeds by:

(1) entering in the minutes of the board a notation of the

change; and

(2) by giving notice of the change by publication of the

notation and the page number of the board minutes on which the

notation was entered.

(c) The publication must be in English and must run for two

successive weeks in a newspaper of general circulation in the

county in which the district is located.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER F. TAXES TO PAY BONDS

Sec. 282.101. TAXES TO PAY BONDS. (a) When the bonds have been

approved by the voters at the election authorizing the levy of

taxes, the commissioners court shall impose a property tax for

the benefit of the district. The tax rate must be sufficient to

create an interest and sinking fund to pay the principal of and

interest on the bonds as they become due.

(b) After investigation and consideration of the annual report

in accordance with Section 282.061, the commissioners court shall

impose and collect taxes annually on all taxable property in the

district. The amount of tax revenue:

(1) must be sufficient to maintain, preserve, and operate the

district hospital and to pay all legal district debts and other

obligations; and

(2) may not exceed two-tenths of one percent of the annual total

assessed valuation of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.102. TAX ASSESSOR-COLLECTOR. (a) The county tax

assessor-collector shall levy and collect taxes for the district.

(b) After receiving a petition of at least five percent of the

qualified taxpaying voters of a created district, the

commissioners court may order an election to determine whether

the district should have a tax assessor and collector other than

the county tax assessor-collector. The commissioners court may

order the election after:

(1) the district is created; and

(2) giving notice in the manner as provided for the creation

election.

(c) If the voters determine by a two-thirds vote that the

district should have a district tax assessor-collector, the board

shall appoint a suitable person to serve in that position.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER G. CONVERSION OF DISTRICTS

Sec. 282.121. AUTHORITY TO CONVERT. A district created in

accordance with this chapter may be converted into a district

operating under Article IX, Section 9, of the Texas Constitution.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.122. CONVERSION HEARING AND ELECTION. (a) A district

may be converted under this subchapter only if the conversion is

approved by a majority of the qualified voters of the district

who vote at an election called and held for that purpose.

(b) The board by order may set a time and place to hold a

hearing on the question of converting the district under this

subchapter. The board shall set a date for the hearing that is

after the 30th day after the date on which the board issues the

order.

(c) If after the hearing the board finds that conversion of the

district would be in the best interest of the district, the board

may order an election on the question of converting the district.

(d) The election shall be held not later than the 60th day after

the date on which the election is ordered. Section 41.001(a),

Election Code, does not apply to an election ordered under this

section.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.123. BALLOT PROPOSITION. The ballot for the election

shall be printed to permit voting for or against the proposition:

"The conversion of the __________ County Public Hospital District

No. _____ (name of district) from a district operating under

Chapter 282, Health and Safety Code, to a district operating

under Article IX, Section 9, of the Texas Constitution, and the

levy of annual taxes for hospital purposes at a rate not to

exceed _______ (insert amount not to exceed 75 cents) on each

$100 valuation of all taxable property in the district."

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.124. EFFECTIVE DATE OF CONVERSION. If a majority of

the qualified voters participating in the election vote in favor

of the proposition, the conversion becomes effective on the 30th

day after the date that the election results are declared.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.125. RESPONSIBILITY OF COUNTY. On conversion of a

district under this subchapter, the county in which the district

is located shall convey or transfer to the district:

(1) money held by the county treasurer for the district under

Subchapter D, including any money in the district's construction

and maintenance fund or interest and sinking fund; and

(2) taxes levied by the county for the benefit of the district

under Subchapter F.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.126. DISTRICT RESPONSIBILITIES. On conversion of the

district under this subchapter, the district assumes any

outstanding indebtedness incurred by the county under Subchapter

E.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.127. EFFECT OF CONVERSION. (a) A district converted

under this subchapter is governed by Article IX, Section 9, of

the Texas Constitution and by Chapter 206, Acts of the 71st

Legislature, Regular Session, 1989 (Article 4494q-1, Vernon's

Texas Civil Statutes), as if it had been originally created under

that section and that Act, except that the board shall continue

to be elected as provided by this chapter.

(b) The district's identity is not affected by the conversion,

and the district is liable for all outstanding debts and

obligations assumed or incurred by the district.

(c) Notwithstanding any other provision of law, the board may

impose taxes for the entire year in which the district is

converted unless the county has imposed taxes for the benefit of

the district for that year.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

State Codes and Statutes

Statutes > Texas > Health-and-safety-code > Title-4-health-facilities > Chapter-282-hospital-districts-in-counties-of-75-000-or-less

HEALTH AND SAFETY CODE

TITLE 4. HEALTH FACILITIES

SUBTITLE D. HOSPITAL DISTRICTS

CHAPTER 282. HOSPITAL DISTRICTS IN COUNTIES OF 75,000 OR LESS

SUBCHAPTER A. CREATION OF DISTRICT

Sec. 282.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of trustees of a district.

(2) "District" means a hospital district created under this

chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.002. DISTRICT AUTHORIZATION. (a) The commissioners

court of a county with a population of 75,000 or less and an

assessed property valuation of at least $200,000,000 may create

one or more hospital districts.

(b) The district may include a municipality or town, or a part

of a municipality or town, but the district may not include part

of another district.

(c) To be formed the proposed district must be composed of

territory having property of an assessed value of more than

$25,000,000.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.003. CREATION ELECTION REQUIRED. The creation of the

district must be approved by a majority of the qualified voters

of the area of the proposed district who vote at an election

ordered and held for that purpose.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.004. PETITION FOR ELECTION. (a) To propose the

establishment of a district:

(1) a petition for a creation election signed by at least five

percent of the qualified property taxpaying voters of the area of

the proposed district must be presented to the commissioners

court; and

(2) $200 in cash must be deposited with the county clerk at the

time of the presentation of the petition.

(b) The petition must state:

(1) the boundaries of the proposed district;

(2) the public necessity for the proposed district; and

(3) the name of the proposed district which includes the county

name.

(c) The petition may include a request for the commissioners

court to provide on the ballot at the creation election for

voting for or against:

(1) imposing a tax to provide funds to construct, equip,

maintain, or purchase hospital buildings or land for the

district; or

(2) the issuance of bonds to acquire sites for and to construct

hospital buildings and imposing a tax at the rate necessary to

create an interest and sinking fund sufficient to pay the

principal of and interest on the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.005. HEARING; ELECTION ORDER. (a) When the petition

is presented to the commissioners court, the commissioners court

shall:

(1) set a date for a hearing on the petition at a regular

session or special session called for that purpose, not less than

30 days nor more than 60 days after the date on which the

petition is presented; and

(2) order the county clerk to give notice of the date and place

of the hearing by posting a copy of the petition and the order

for at least 20 days before the date of the election at the

courthouse door and at four other places in the proposed

district.

(b) If the court finds at the hearing that the petition meets

the requirements of this chapter, the court shall order an

election to be held on the first authorized uniform election date

prescribed by the Election Code that allows sufficient time to

comply with other requirements of law.

(c) The order must contain a description of the metes and bounds

of the proposed district and must set the date of the election.

(d) The ballot for election shall be printed to provide for

voting for or against:

(1) the creation of the district; and

(2) if the petition includes a request under Section 282.004(c),

the imposition of a tax or the issuance of bonds according to the

terms of the petition.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.006. ELECTION COSTS; DISPOSITION OF DEPOSIT. (a) The

county clerk shall retain the amount deposited under Section

282.004(a) until the commissioners court declares the election

results.

(b) If at the election the majority of the voters approved the

creation of the district, the county clerk shall return that

amount to the petitioners or the petitioners' agent or attorney.

(c) If at the election the majority of the voters disapproved

the creation of the district, the county clerk shall:

(1) pay from the amount deposited on warrants approved and

signed by the county judge, all costs and expenses pertaining to

the proposed district, including the costs related to the

elections;

(2) return the remaining amount, if any, to the petitioners or

the petitioners' agent or attorney.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 282.021. ELECTION OF BOARD. (a) Board members shall be

elected from the district at large.

(b) Initial board members shall be elected at the district

creation election.

(c) A person who wishes to have his name printed on the ballot

as a candidate to serve as an initial district board member must

present to the commissioners court a petition requesting that the

person's name be placed on the ballot at the district creation

election. The petition must be accompanied by a second petition

signed by at least 100 qualified voters of the proposed district

requesting that the person's name be placed on the ballot as a

candidate for board membership. The petitions must be filed with

the commissioners court before the third day before the date on

which the election order is issued.

(d) The commissioners court shall declare that the five

candidates receiving the highest number of votes at the initial

election of board members are district board members. When they

are qualified under this chapter, the candidates shall serve as

district board members.

(e) The initial board members shall serve as district board

members until the next regular election of state and county

officers. An election for board members shall be held at that

time and at the general election in each second year after that

time.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.0211. OPTIONAL FOUR-YEAR TERMS. (a) The board may, on

its own motion, order that board members are to be elected in

even-numbered years to serve staggered four-year terms.

(b) The first election of board members in an even-numbered year

that occurs at least 120 days after the date on which an order is

entered under Subsection (a) shall be held as previously

scheduled. The three candidates receiving the highest number of

votes at that election serve for a term of four years. The

remaining two directors elected at that election serve for a term

of two years. Subsequent members shall be elected in

even-numbered years and shall serve four-year terms.

Added by Acts 1991, 72nd Leg., ch. 645, Sec. 1, eff. June 16,

1991.

Sec. 282.022. OATH AND BOND. (a) Before assuming the duties of

office on the board, each district board member elect must:

(1) take and subscribe an oath before the county judge to

faithfully and impartially discharge the duties of a board member

and to give an account of the member's activities to the

commissioners court when requested to do so; and

(2) execute a good and sufficient bond for $5,000 payable to the

county judge for the use and benefit of the district, conditioned

on the faithful performance of the person's duties as a board

member.

(b) The county clerk shall file and maintain the oath as part of

the district records.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.023. COMPENSATION. A board member serves without

compensation but is entitled to reimbursement for actual expenses

incurred in the performance of official duties.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.024. OFFICERS. The board shall elect from among its

members a chairman, a secretary, and other officers the board

considers appropriate.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.025. QUORUM; MEETING PROCEDURE AND RECORD. (a) Three

board members constitute a quorum.

(b) All board proceedings shall be by motion or resolution and

shall be recorded in a book kept for that purpose. The book is a

public record.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.026. SEAL. The board shall adopt an official seal.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.027. SUPERINTENDENT; DUTIES. (a) The board shall

appoint a superintendent to serve as the district's chief

administrator.

(b) The superintendent serves at the will of the board and is

responsible to the board for the efficient administration of

hospital affairs.

(c) The superintendent is entitled to compensation as determined

by the board.

(d) The superintendent may attend board meetings and meetings of

a board committee and may participate in the discussion of

matters within the superintendent's functions, but the

superintendent may not vote on matters considered by the board.

(e) The superintendent shall:

(1) control administrative functions of the hospital;

(2) carry out the board orders;

(3) ensure that the district complies with state law relating to

matters within the superintendent's functions; and

(4) fully advise the board of the district's financial condition

and needs.

(f) At least once a year, the superintendent shall:

(1) prepare an estimate of administrative expenses for the

succeeding fiscal year;

(2) recommend to the board and estimate the cost of improvements

to be made in the succeeding fiscal year;

(3) certify to the board district bills, allowances, and

payrolls, including public works contractors' claims; and

(4) recommend to the board salary amounts of district employees

under the administrator and a salary scale to be paid for

different services required by the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.028. OTHER OFFICERS AND DISTRICT EMPLOYEES. (a) The

board shall appoint other district officers that the board

considers necessary.

(b) A person appointed under Subsection (a) serves at the will

of the board and is entitled to receive compensation as

determined by the board.

(c) The board may contract with or employ legal, technical, and

professional assistance and other employees.

(d) If the superintendent is temporarily incapacitated or

absent, the board may designate a competent person to perform the

superintendent's powers or duties.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER C. GENERAL POWERS AND DUTIES

Sec. 282.041. MANAGEMENT, CONTROL, AND ADMINISTRATION. (a) The

board shall manage, control, and administer the district.

(b) The board is a corporate body in the name of the

"____________ County Public Hospital District No. __________."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.042. DISTRICT RULES. The board may adopt rules and

bylaws the board considers proper.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.043. POWERS RELATING TO DISTRICT PROPERTY, FACILITIES,

AND EQUIPMENT. (a) On the district's behalf, the board may

hold, construct, condemn, purchase, acquire, lease, add to,

maintain, operate, develop, regulate, sell, and convey land,

property, a property right, equipment, a hospital facility, or a

hospital system to maintain a district hospital, building,

structure, or other facility.

(b) The board may lease an existing hospital, equipment, or

property used in connection with a district hospital and

equipment at a rate the board considers proper.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.044. CONTRACTING AUTHORITY. (a) In performing its

powers under this subchapter the board may contract with:

(1) the federal government;

(2) this state;

(3) a municipality; and

(4) another hospital district.

(b) The district may incur indebtedness or borrow money for

district purposes on the credit of the district or secured by the

revenues of a district hospital.

(c) The district may contract with another community,

corporation, or individual for services provided by the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.045. PURCHASING PROCEDURES. The district is subject to

the County Purchasing Act (Subchapter C, Chapter 262, Local

Government Code), and the board shall comply with the competitive

bidding or proposal procedures prescribed by that Act.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.046. EMINENT DOMAIN. (a) On a resolution by the

board, the district may exercise the power of eminent domain for

the acquisition of property necessary to carry out the powers and

duties of the district, including preventing damage to district

property, property rights, equipment, hospital facilities and

systems, and property adjacent to district property.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code, for the

exercise of that power by a municipality.

(c) The district may not exercise the power of eminent domain

against:

(1) a hospital, clinic, or sanatorium operated as a charitable,

nonprofit establishment or operated by a religious organization;

or

(2) a privately owned or operated hospital or clinic, whether or

not incorporated.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.047. GIFTS AND ENDOWMENTS. The board may accept

bequests and contributions on behalf of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.048. AUTHORITY TO SUE AND BE SUED; DISTRICT LIABILITY.

(a) The board may sue and be sued on behalf of the district.

(b) A suit against the district must be brought in the county in

which the district is located.

(c) The district is not liable for negligence for an act of a

district officer, agent, or employee.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.049. OTHER BOARD POWERS. The board may:

(1) promote health in the district;

(2) print and publish information; and

(3) do any other thing necessary to the performance of the

board's duties under this chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.050. PROVISION OF HOSPITAL SERVICES. (a) The district

shall provide adequate hospital services for the district. A

person who resides in the district is entitled to receive those

services at available district hospital facilities at a rate

determined by the board and in any manner the board considers

expedient or necessary under existing conditions. The district

may provide the services in hospitals located outside the

district.

(b) The district may furnish hospital services to a person who

does not reside in the district at a reasonable and fair rate the

board considers proper, but the district shall give priority to a

district resident in the provision of hospital services.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER D. DISTRICT FINANCES

Sec. 282.061. ANNUAL REPORT. (a) Not later than June 1 of each

year, the board shall prepare and file with the commissioners

court a full, detailed report of the condition of the district.

The report must include:

(1) an estimate of the cost of maintenance, operation, and

needed repairs for the succeeding year;

(2) an inventory of all funds and other property of the

district; and

(3) a list of all legal demands, debts, and obligations against

the district.

(b) The board shall verify the report.

(c) The commissioners court shall carefully investigate and

consider the report before setting a tax rate.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.062. TREASURER. (a) The county treasurer of the

county in which the district is located serves as treasurer of

the construction and maintenance fund and the interest and

sinking fund of the district.

(b) All money to be credited to the construction and maintenance

fund or the interest and sinking fund shall be paid to the

treasurer.

(c) The treasurer may not pay money from the construction and

maintenance fund or the interest and sinking fund unless the

treasurer receives a warrant ordering the payment signed by the

district board chairman or another district officer designated by

the board.

(d) The treasurer shall open a construction and maintenance fund

account and an interest and sinking fund account with the

district and shall keep a record of all of the district's money

received for the accounts and paid from the accounts. The

treasurer may not pay money from the accounts except on a voucher

signed by the chairman or two board members.

(e) The treasurer shall maintain a file of the payment orders

from the accounts.

(f) As required by the board or the commissioners court, the

treasurer shall give a correct accounting to the board or the

commissioners court of all matters relating to the accounts.

(g) For services on behalf of the district, the treasurer is

entitled to receive an amount equal to:

(1) one-fourth of one percent of all money received by the

treasurer for the construction and maintenance fund or the

interest and sinking fund; and

(2) one-eighth of one percent of all money received by the

treasurer and paid out of the construction and maintenance fund

or the interest and sinking fund of the district.

(h) The treasurer is not entitled to receive a commission under

Subsection (g) on district money the treasurer receives from the

preceding treasurer.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 119, eff. Sept. 1,

1991.

Sec. 282.063. DISTRICT FUNDS; INVESTMENT OF FUNDS. (a) The

treasurer shall maintain a construction and maintenance fund and

an interest and sinking fund for the district and shall place

money in those funds as required by this chapter or as the board

by resolution directs. All other money received by the district

shall be placed in a fund or funds as provided by the board.

(b) The amount of taxes collected that is necessary to pay the

principal of and interest on the bonds as they mature shall be

credited to the interest and sinking fund. All money received by

the district from the sale of bonds shall be credited to the

construction and maintenance fund.

(c) The treasurer shall pay from the construction and

maintenance fund or from a fund or funds designated by the board

the expenses, debts, and obligations of the district created

after the filing of the original petition and incurred in the

creation, operation, and maintenance of the district, other than

the principal of and interest on bonds.

(d) The interest and sinking fund may be invested for the

benefit of the district in bonds and securities approved by the

attorney general.

(e) The construction and maintenance fund and interest and

sinking fund shall be held for the purposes for which they were

created. If money is improperly paid from either fund, the

commissioners court may require the county treasurer to transfer

to the fund from the district account the amount necessary to

restore that amount.

(f) District funds shall be deposited in the county depositories

in the manner required by law for county depositories. Interest

collected on those funds belongs to the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 119, eff. Sept. 1,

1991.

Sec. 282.064. FISCAL YEAR. (a) The district operates on the

fiscal year established by the board.

(b) The fiscal year may not be changed if revenue bonds of the

district are outstanding.

(c) The fiscal year may not be changed more than once in any

24-month period.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 120, eff. Sept. 1,

1991.

Sec. 282.065. ANNUAL AUDIT; OPEN RECORDS. (a) The board

annually shall have an audit made of the financial condition of

the district.

(b) The audit and other district records are open to inspection

during regular business hours at the district's principal office.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 120, eff. Sept. 1,

1991.

SUBCHAPTER E. DISTRICT BONDS

Sec. 282.071. GENERAL OBLIGATION BONDS. The commissioners court

may issue and sell bonds in the district's name and on the

district's faith and credit to acquire or construct hospital

buildings or land if the bonds are approved by a majority of the

qualified voters at the election to create the district in

accordance with Subchapter A.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.072. INTEREST, MATURITY, AND DENOMINATION. (a)

District bonds mature not more than 30 years after their date and

bear interest at a rate ordered by the commissioners court but

not more than six percent annually.

(b) The bonds must provide the interest rate and the time,

place, manner, and conditions of payment as ordered by the

commissioners court.

(c) The bonds may be payable annually or semiannually.

(d) The bonds must be issued in denominations of not less than

$100 nor more than $1,000.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.073. EXECUTION OF BONDS. The county judge shall sign

the bonds, and the county clerk shall attest the signature and

place the seal of the court on the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.074. APPROVAL AND REGISTRATION OF BONDS. (a) Before

the bonds are offered for sale, the district shall forward to the

attorney general:

(1) a copy of the bonds to be issued;

(2) a certified copy of the court order imposing the tax to pay

the interest on the bonds and provide a sinking fund;

(3) a statement of the total bonded indebtedness of the

district, including the series of bonds proposed;

(4) the assessed value of property for the purpose of taxation

as shown by the most recent official county assessment; and

(5) any other information that the attorney general requires.

(b) The attorney general shall:

(1) examine the bonds; and

(2) certify the bonds if the attorney general determines that

the bonds are issued in conformity with the constitution and law

and that they are valid and binding obligations of the district.

(c) When the bonds are approved by the attorney general, the

comptroller shall register the bonds in a book kept for that

purpose and maintain the certificate of approval for the bonds.

(d) On approval and registration under this section, the bonds

are incontestable for any cause. The certificate of approval or a

certified copy of the certificate is admissible evidence in a

suit to enforce the collection of the bonds as prima facie proof

of the validity of the bonds with attached coupons. In that suit,

only forgery or fraud may be offered as a defense against the

validity of the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.075. BOND RECORD BOOK. (a) Before issuing the bonds,

the commissioners court shall provide to the county clerk a

well-bound book in which the clerk shall record all bonds issued,

including the following information:

(1) the bond numbers, amount, rate of interest, and date of

issue;

(2) the date when the bonds are due;

(3) the place where the bonds are payable;

(4) the amount received for each bond;

(5) the annual assessment made to pay bond interest and to

provide a sinking fund to pay the bonds; and

(6) the payment made of each bond.

(b) The record book must be open for inspection at all times by

a taxpayer of the district or a bondholder.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.076. COMPENSATION OF COUNTY CLERK. For recording

services provided to the district, the county clerk is entitled

to receive fees as provided by Chapter 118, Local Government

Code.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.077. BOND OF COUNTY JUDGE. (a) When the bonds are

registered, the county judge shall execute a good and sufficient

bond, approved by the board and payable to the board, for an

amount not less than the amount of the bonds issued. The bond

must be conditioned on the faithful performance of the judge's

duties.

(b) If the bond is executed by a satisfactory surety, the

district may pay from the district construction and maintenance

fund a reasonable premium on the bond on receipt of an invoice

for the premium. If the amount of the premium is disputed as

unreasonable, a court of competent jurisdiction may determine

whether or not the premium is reasonable.

(c) The board may charge the cost of the bond premium against

the commission allowed the county judge on the sale of district

bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.078. SALE OF THE BONDS. (a) When the bonds are

registered, the county judge, under the direction of the

commissioners court, shall advertise and sell the bonds on the

best terms and for the best price possible, but for a price not

less than the sum of the amounts of the par value and the accrued

interest.

(b) The county judge shall give the money received from the sale

of a bond to the county treasurer.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.079. DISPOSITION OF UNNEEDED BONDS. With the consent

of the commissioners court made of record, bonds that are not

required for the purpose for which they were voted may be sold

and the proceeds may be used to maintain, preserve, and operate

the district hospital and to pay district debts and other

obligations.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.080. ADDITIONAL BOND ISSUE AND ELECTION. (a) The

board shall certify to the commissioners court the necessity for

an additional bond issue if:

(1) the proceeds of the original bond issue are insufficient to

complete the construction, equipment, maintenance, or purchase of

hospital buildings or land for the district; or

(2) the board decides to provide for additional construction,

equipment, maintenance, or purchase of hospital buildings or

land.

(b) The certification must state:

(1) the amount required;

(2) the purpose for the funds;

(3) the rate of interest of the proposed bonds; and

(4) the maturity date of the proposed bonds.

(c) When the commissioners court receives the certification, the

commissioners court shall order an election on the issuance of

the bonds to be held in the district on the first uniform

election date prescribed by the Election Code that allows

sufficient time to comply with other requirements of law.

(d) The sum of the amount of any outstanding bonds and the

amount of additional bonds issued under this section may not

exceed one-fourth of the assessed value of the real property in

the district, as shown by the most recent annual assessment made

for county taxation.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.081. CHANGE IN USE OF BOND PROCEEDS AFTER BOND

ISSUANCE. (a) After the issuance of bonds, the board may change

the use of the bond proceeds to include a change or improvement

to the district hospital if the change or improvement will not

increase the cost of the proposed project beyond the amount of

the authorized bonds.

(b) The board may make the change in the use of the bond

proceeds by:

(1) entering in the minutes of the board a notation of the

change; and

(2) by giving notice of the change by publication of the

notation and the page number of the board minutes on which the

notation was entered.

(c) The publication must be in English and must run for two

successive weeks in a newspaper of general circulation in the

county in which the district is located.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER F. TAXES TO PAY BONDS

Sec. 282.101. TAXES TO PAY BONDS. (a) When the bonds have been

approved by the voters at the election authorizing the levy of

taxes, the commissioners court shall impose a property tax for

the benefit of the district. The tax rate must be sufficient to

create an interest and sinking fund to pay the principal of and

interest on the bonds as they become due.

(b) After investigation and consideration of the annual report

in accordance with Section 282.061, the commissioners court shall

impose and collect taxes annually on all taxable property in the

district. The amount of tax revenue:

(1) must be sufficient to maintain, preserve, and operate the

district hospital and to pay all legal district debts and other

obligations; and

(2) may not exceed two-tenths of one percent of the annual total

assessed valuation of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.102. TAX ASSESSOR-COLLECTOR. (a) The county tax

assessor-collector shall levy and collect taxes for the district.

(b) After receiving a petition of at least five percent of the

qualified taxpaying voters of a created district, the

commissioners court may order an election to determine whether

the district should have a tax assessor and collector other than

the county tax assessor-collector. The commissioners court may

order the election after:

(1) the district is created; and

(2) giving notice in the manner as provided for the creation

election.

(c) If the voters determine by a two-thirds vote that the

district should have a district tax assessor-collector, the board

shall appoint a suitable person to serve in that position.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER G. CONVERSION OF DISTRICTS

Sec. 282.121. AUTHORITY TO CONVERT. A district created in

accordance with this chapter may be converted into a district

operating under Article IX, Section 9, of the Texas Constitution.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.122. CONVERSION HEARING AND ELECTION. (a) A district

may be converted under this subchapter only if the conversion is

approved by a majority of the qualified voters of the district

who vote at an election called and held for that purpose.

(b) The board by order may set a time and place to hold a

hearing on the question of converting the district under this

subchapter. The board shall set a date for the hearing that is

after the 30th day after the date on which the board issues the

order.

(c) If after the hearing the board finds that conversion of the

district would be in the best interest of the district, the board

may order an election on the question of converting the district.

(d) The election shall be held not later than the 60th day after

the date on which the election is ordered. Section 41.001(a),

Election Code, does not apply to an election ordered under this

section.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.123. BALLOT PROPOSITION. The ballot for the election

shall be printed to permit voting for or against the proposition:

"The conversion of the __________ County Public Hospital District

No. _____ (name of district) from a district operating under

Chapter 282, Health and Safety Code, to a district operating

under Article IX, Section 9, of the Texas Constitution, and the

levy of annual taxes for hospital purposes at a rate not to

exceed _______ (insert amount not to exceed 75 cents) on each

$100 valuation of all taxable property in the district."

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.124. EFFECTIVE DATE OF CONVERSION. If a majority of

the qualified voters participating in the election vote in favor

of the proposition, the conversion becomes effective on the 30th

day after the date that the election results are declared.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.125. RESPONSIBILITY OF COUNTY. On conversion of a

district under this subchapter, the county in which the district

is located shall convey or transfer to the district:

(1) money held by the county treasurer for the district under

Subchapter D, including any money in the district's construction

and maintenance fund or interest and sinking fund; and

(2) taxes levied by the county for the benefit of the district

under Subchapter F.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.126. DISTRICT RESPONSIBILITIES. On conversion of the

district under this subchapter, the district assumes any

outstanding indebtedness incurred by the county under Subchapter

E.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.127. EFFECT OF CONVERSION. (a) A district converted

under this subchapter is governed by Article IX, Section 9, of

the Texas Constitution and by Chapter 206, Acts of the 71st

Legislature, Regular Session, 1989 (Article 4494q-1, Vernon's

Texas Civil Statutes), as if it had been originally created under

that section and that Act, except that the board shall continue

to be elected as provided by this chapter.

(b) The district's identity is not affected by the conversion,

and the district is liable for all outstanding debts and

obligations assumed or incurred by the district.

(c) Notwithstanding any other provision of law, the board may

impose taxes for the entire year in which the district is

converted unless the county has imposed taxes for the benefit of

the district for that year.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Health-and-safety-code > Title-4-health-facilities > Chapter-282-hospital-districts-in-counties-of-75-000-or-less

HEALTH AND SAFETY CODE

TITLE 4. HEALTH FACILITIES

SUBTITLE D. HOSPITAL DISTRICTS

CHAPTER 282. HOSPITAL DISTRICTS IN COUNTIES OF 75,000 OR LESS

SUBCHAPTER A. CREATION OF DISTRICT

Sec. 282.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of trustees of a district.

(2) "District" means a hospital district created under this

chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.002. DISTRICT AUTHORIZATION. (a) The commissioners

court of a county with a population of 75,000 or less and an

assessed property valuation of at least $200,000,000 may create

one or more hospital districts.

(b) The district may include a municipality or town, or a part

of a municipality or town, but the district may not include part

of another district.

(c) To be formed the proposed district must be composed of

territory having property of an assessed value of more than

$25,000,000.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.003. CREATION ELECTION REQUIRED. The creation of the

district must be approved by a majority of the qualified voters

of the area of the proposed district who vote at an election

ordered and held for that purpose.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.004. PETITION FOR ELECTION. (a) To propose the

establishment of a district:

(1) a petition for a creation election signed by at least five

percent of the qualified property taxpaying voters of the area of

the proposed district must be presented to the commissioners

court; and

(2) $200 in cash must be deposited with the county clerk at the

time of the presentation of the petition.

(b) The petition must state:

(1) the boundaries of the proposed district;

(2) the public necessity for the proposed district; and

(3) the name of the proposed district which includes the county

name.

(c) The petition may include a request for the commissioners

court to provide on the ballot at the creation election for

voting for or against:

(1) imposing a tax to provide funds to construct, equip,

maintain, or purchase hospital buildings or land for the

district; or

(2) the issuance of bonds to acquire sites for and to construct

hospital buildings and imposing a tax at the rate necessary to

create an interest and sinking fund sufficient to pay the

principal of and interest on the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.005. HEARING; ELECTION ORDER. (a) When the petition

is presented to the commissioners court, the commissioners court

shall:

(1) set a date for a hearing on the petition at a regular

session or special session called for that purpose, not less than

30 days nor more than 60 days after the date on which the

petition is presented; and

(2) order the county clerk to give notice of the date and place

of the hearing by posting a copy of the petition and the order

for at least 20 days before the date of the election at the

courthouse door and at four other places in the proposed

district.

(b) If the court finds at the hearing that the petition meets

the requirements of this chapter, the court shall order an

election to be held on the first authorized uniform election date

prescribed by the Election Code that allows sufficient time to

comply with other requirements of law.

(c) The order must contain a description of the metes and bounds

of the proposed district and must set the date of the election.

(d) The ballot for election shall be printed to provide for

voting for or against:

(1) the creation of the district; and

(2) if the petition includes a request under Section 282.004(c),

the imposition of a tax or the issuance of bonds according to the

terms of the petition.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.006. ELECTION COSTS; DISPOSITION OF DEPOSIT. (a) The

county clerk shall retain the amount deposited under Section

282.004(a) until the commissioners court declares the election

results.

(b) If at the election the majority of the voters approved the

creation of the district, the county clerk shall return that

amount to the petitioners or the petitioners' agent or attorney.

(c) If at the election the majority of the voters disapproved

the creation of the district, the county clerk shall:

(1) pay from the amount deposited on warrants approved and

signed by the county judge, all costs and expenses pertaining to

the proposed district, including the costs related to the

elections;

(2) return the remaining amount, if any, to the petitioners or

the petitioners' agent or attorney.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 282.021. ELECTION OF BOARD. (a) Board members shall be

elected from the district at large.

(b) Initial board members shall be elected at the district

creation election.

(c) A person who wishes to have his name printed on the ballot

as a candidate to serve as an initial district board member must

present to the commissioners court a petition requesting that the

person's name be placed on the ballot at the district creation

election. The petition must be accompanied by a second petition

signed by at least 100 qualified voters of the proposed district

requesting that the person's name be placed on the ballot as a

candidate for board membership. The petitions must be filed with

the commissioners court before the third day before the date on

which the election order is issued.

(d) The commissioners court shall declare that the five

candidates receiving the highest number of votes at the initial

election of board members are district board members. When they

are qualified under this chapter, the candidates shall serve as

district board members.

(e) The initial board members shall serve as district board

members until the next regular election of state and county

officers. An election for board members shall be held at that

time and at the general election in each second year after that

time.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.0211. OPTIONAL FOUR-YEAR TERMS. (a) The board may, on

its own motion, order that board members are to be elected in

even-numbered years to serve staggered four-year terms.

(b) The first election of board members in an even-numbered year

that occurs at least 120 days after the date on which an order is

entered under Subsection (a) shall be held as previously

scheduled. The three candidates receiving the highest number of

votes at that election serve for a term of four years. The

remaining two directors elected at that election serve for a term

of two years. Subsequent members shall be elected in

even-numbered years and shall serve four-year terms.

Added by Acts 1991, 72nd Leg., ch. 645, Sec. 1, eff. June 16,

1991.

Sec. 282.022. OATH AND BOND. (a) Before assuming the duties of

office on the board, each district board member elect must:

(1) take and subscribe an oath before the county judge to

faithfully and impartially discharge the duties of a board member

and to give an account of the member's activities to the

commissioners court when requested to do so; and

(2) execute a good and sufficient bond for $5,000 payable to the

county judge for the use and benefit of the district, conditioned

on the faithful performance of the person's duties as a board

member.

(b) The county clerk shall file and maintain the oath as part of

the district records.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.023. COMPENSATION. A board member serves without

compensation but is entitled to reimbursement for actual expenses

incurred in the performance of official duties.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.024. OFFICERS. The board shall elect from among its

members a chairman, a secretary, and other officers the board

considers appropriate.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.025. QUORUM; MEETING PROCEDURE AND RECORD. (a) Three

board members constitute a quorum.

(b) All board proceedings shall be by motion or resolution and

shall be recorded in a book kept for that purpose. The book is a

public record.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.026. SEAL. The board shall adopt an official seal.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.027. SUPERINTENDENT; DUTIES. (a) The board shall

appoint a superintendent to serve as the district's chief

administrator.

(b) The superintendent serves at the will of the board and is

responsible to the board for the efficient administration of

hospital affairs.

(c) The superintendent is entitled to compensation as determined

by the board.

(d) The superintendent may attend board meetings and meetings of

a board committee and may participate in the discussion of

matters within the superintendent's functions, but the

superintendent may not vote on matters considered by the board.

(e) The superintendent shall:

(1) control administrative functions of the hospital;

(2) carry out the board orders;

(3) ensure that the district complies with state law relating to

matters within the superintendent's functions; and

(4) fully advise the board of the district's financial condition

and needs.

(f) At least once a year, the superintendent shall:

(1) prepare an estimate of administrative expenses for the

succeeding fiscal year;

(2) recommend to the board and estimate the cost of improvements

to be made in the succeeding fiscal year;

(3) certify to the board district bills, allowances, and

payrolls, including public works contractors' claims; and

(4) recommend to the board salary amounts of district employees

under the administrator and a salary scale to be paid for

different services required by the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.028. OTHER OFFICERS AND DISTRICT EMPLOYEES. (a) The

board shall appoint other district officers that the board

considers necessary.

(b) A person appointed under Subsection (a) serves at the will

of the board and is entitled to receive compensation as

determined by the board.

(c) The board may contract with or employ legal, technical, and

professional assistance and other employees.

(d) If the superintendent is temporarily incapacitated or

absent, the board may designate a competent person to perform the

superintendent's powers or duties.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER C. GENERAL POWERS AND DUTIES

Sec. 282.041. MANAGEMENT, CONTROL, AND ADMINISTRATION. (a) The

board shall manage, control, and administer the district.

(b) The board is a corporate body in the name of the

"____________ County Public Hospital District No. __________."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.042. DISTRICT RULES. The board may adopt rules and

bylaws the board considers proper.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.043. POWERS RELATING TO DISTRICT PROPERTY, FACILITIES,

AND EQUIPMENT. (a) On the district's behalf, the board may

hold, construct, condemn, purchase, acquire, lease, add to,

maintain, operate, develop, regulate, sell, and convey land,

property, a property right, equipment, a hospital facility, or a

hospital system to maintain a district hospital, building,

structure, or other facility.

(b) The board may lease an existing hospital, equipment, or

property used in connection with a district hospital and

equipment at a rate the board considers proper.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.044. CONTRACTING AUTHORITY. (a) In performing its

powers under this subchapter the board may contract with:

(1) the federal government;

(2) this state;

(3) a municipality; and

(4) another hospital district.

(b) The district may incur indebtedness or borrow money for

district purposes on the credit of the district or secured by the

revenues of a district hospital.

(c) The district may contract with another community,

corporation, or individual for services provided by the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.045. PURCHASING PROCEDURES. The district is subject to

the County Purchasing Act (Subchapter C, Chapter 262, Local

Government Code), and the board shall comply with the competitive

bidding or proposal procedures prescribed by that Act.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.046. EMINENT DOMAIN. (a) On a resolution by the

board, the district may exercise the power of eminent domain for

the acquisition of property necessary to carry out the powers and

duties of the district, including preventing damage to district

property, property rights, equipment, hospital facilities and

systems, and property adjacent to district property.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code, for the

exercise of that power by a municipality.

(c) The district may not exercise the power of eminent domain

against:

(1) a hospital, clinic, or sanatorium operated as a charitable,

nonprofit establishment or operated by a religious organization;

or

(2) a privately owned or operated hospital or clinic, whether or

not incorporated.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.047. GIFTS AND ENDOWMENTS. The board may accept

bequests and contributions on behalf of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.048. AUTHORITY TO SUE AND BE SUED; DISTRICT LIABILITY.

(a) The board may sue and be sued on behalf of the district.

(b) A suit against the district must be brought in the county in

which the district is located.

(c) The district is not liable for negligence for an act of a

district officer, agent, or employee.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.049. OTHER BOARD POWERS. The board may:

(1) promote health in the district;

(2) print and publish information; and

(3) do any other thing necessary to the performance of the

board's duties under this chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.050. PROVISION OF HOSPITAL SERVICES. (a) The district

shall provide adequate hospital services for the district. A

person who resides in the district is entitled to receive those

services at available district hospital facilities at a rate

determined by the board and in any manner the board considers

expedient or necessary under existing conditions. The district

may provide the services in hospitals located outside the

district.

(b) The district may furnish hospital services to a person who

does not reside in the district at a reasonable and fair rate the

board considers proper, but the district shall give priority to a

district resident in the provision of hospital services.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER D. DISTRICT FINANCES

Sec. 282.061. ANNUAL REPORT. (a) Not later than June 1 of each

year, the board shall prepare and file with the commissioners

court a full, detailed report of the condition of the district.

The report must include:

(1) an estimate of the cost of maintenance, operation, and

needed repairs for the succeeding year;

(2) an inventory of all funds and other property of the

district; and

(3) a list of all legal demands, debts, and obligations against

the district.

(b) The board shall verify the report.

(c) The commissioners court shall carefully investigate and

consider the report before setting a tax rate.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.062. TREASURER. (a) The county treasurer of the

county in which the district is located serves as treasurer of

the construction and maintenance fund and the interest and

sinking fund of the district.

(b) All money to be credited to the construction and maintenance

fund or the interest and sinking fund shall be paid to the

treasurer.

(c) The treasurer may not pay money from the construction and

maintenance fund or the interest and sinking fund unless the

treasurer receives a warrant ordering the payment signed by the

district board chairman or another district officer designated by

the board.

(d) The treasurer shall open a construction and maintenance fund

account and an interest and sinking fund account with the

district and shall keep a record of all of the district's money

received for the accounts and paid from the accounts. The

treasurer may not pay money from the accounts except on a voucher

signed by the chairman or two board members.

(e) The treasurer shall maintain a file of the payment orders

from the accounts.

(f) As required by the board or the commissioners court, the

treasurer shall give a correct accounting to the board or the

commissioners court of all matters relating to the accounts.

(g) For services on behalf of the district, the treasurer is

entitled to receive an amount equal to:

(1) one-fourth of one percent of all money received by the

treasurer for the construction and maintenance fund or the

interest and sinking fund; and

(2) one-eighth of one percent of all money received by the

treasurer and paid out of the construction and maintenance fund

or the interest and sinking fund of the district.

(h) The treasurer is not entitled to receive a commission under

Subsection (g) on district money the treasurer receives from the

preceding treasurer.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 119, eff. Sept. 1,

1991.

Sec. 282.063. DISTRICT FUNDS; INVESTMENT OF FUNDS. (a) The

treasurer shall maintain a construction and maintenance fund and

an interest and sinking fund for the district and shall place

money in those funds as required by this chapter or as the board

by resolution directs. All other money received by the district

shall be placed in a fund or funds as provided by the board.

(b) The amount of taxes collected that is necessary to pay the

principal of and interest on the bonds as they mature shall be

credited to the interest and sinking fund. All money received by

the district from the sale of bonds shall be credited to the

construction and maintenance fund.

(c) The treasurer shall pay from the construction and

maintenance fund or from a fund or funds designated by the board

the expenses, debts, and obligations of the district created

after the filing of the original petition and incurred in the

creation, operation, and maintenance of the district, other than

the principal of and interest on bonds.

(d) The interest and sinking fund may be invested for the

benefit of the district in bonds and securities approved by the

attorney general.

(e) The construction and maintenance fund and interest and

sinking fund shall be held for the purposes for which they were

created. If money is improperly paid from either fund, the

commissioners court may require the county treasurer to transfer

to the fund from the district account the amount necessary to

restore that amount.

(f) District funds shall be deposited in the county depositories

in the manner required by law for county depositories. Interest

collected on those funds belongs to the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 119, eff. Sept. 1,

1991.

Sec. 282.064. FISCAL YEAR. (a) The district operates on the

fiscal year established by the board.

(b) The fiscal year may not be changed if revenue bonds of the

district are outstanding.

(c) The fiscal year may not be changed more than once in any

24-month period.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 120, eff. Sept. 1,

1991.

Sec. 282.065. ANNUAL AUDIT; OPEN RECORDS. (a) The board

annually shall have an audit made of the financial condition of

the district.

(b) The audit and other district records are open to inspection

during regular business hours at the district's principal office.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 120, eff. Sept. 1,

1991.

SUBCHAPTER E. DISTRICT BONDS

Sec. 282.071. GENERAL OBLIGATION BONDS. The commissioners court

may issue and sell bonds in the district's name and on the

district's faith and credit to acquire or construct hospital

buildings or land if the bonds are approved by a majority of the

qualified voters at the election to create the district in

accordance with Subchapter A.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.072. INTEREST, MATURITY, AND DENOMINATION. (a)

District bonds mature not more than 30 years after their date and

bear interest at a rate ordered by the commissioners court but

not more than six percent annually.

(b) The bonds must provide the interest rate and the time,

place, manner, and conditions of payment as ordered by the

commissioners court.

(c) The bonds may be payable annually or semiannually.

(d) The bonds must be issued in denominations of not less than

$100 nor more than $1,000.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.073. EXECUTION OF BONDS. The county judge shall sign

the bonds, and the county clerk shall attest the signature and

place the seal of the court on the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.074. APPROVAL AND REGISTRATION OF BONDS. (a) Before

the bonds are offered for sale, the district shall forward to the

attorney general:

(1) a copy of the bonds to be issued;

(2) a certified copy of the court order imposing the tax to pay

the interest on the bonds and provide a sinking fund;

(3) a statement of the total bonded indebtedness of the

district, including the series of bonds proposed;

(4) the assessed value of property for the purpose of taxation

as shown by the most recent official county assessment; and

(5) any other information that the attorney general requires.

(b) The attorney general shall:

(1) examine the bonds; and

(2) certify the bonds if the attorney general determines that

the bonds are issued in conformity with the constitution and law

and that they are valid and binding obligations of the district.

(c) When the bonds are approved by the attorney general, the

comptroller shall register the bonds in a book kept for that

purpose and maintain the certificate of approval for the bonds.

(d) On approval and registration under this section, the bonds

are incontestable for any cause. The certificate of approval or a

certified copy of the certificate is admissible evidence in a

suit to enforce the collection of the bonds as prima facie proof

of the validity of the bonds with attached coupons. In that suit,

only forgery or fraud may be offered as a defense against the

validity of the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.075. BOND RECORD BOOK. (a) Before issuing the bonds,

the commissioners court shall provide to the county clerk a

well-bound book in which the clerk shall record all bonds issued,

including the following information:

(1) the bond numbers, amount, rate of interest, and date of

issue;

(2) the date when the bonds are due;

(3) the place where the bonds are payable;

(4) the amount received for each bond;

(5) the annual assessment made to pay bond interest and to

provide a sinking fund to pay the bonds; and

(6) the payment made of each bond.

(b) The record book must be open for inspection at all times by

a taxpayer of the district or a bondholder.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.076. COMPENSATION OF COUNTY CLERK. For recording

services provided to the district, the county clerk is entitled

to receive fees as provided by Chapter 118, Local Government

Code.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.077. BOND OF COUNTY JUDGE. (a) When the bonds are

registered, the county judge shall execute a good and sufficient

bond, approved by the board and payable to the board, for an

amount not less than the amount of the bonds issued. The bond

must be conditioned on the faithful performance of the judge's

duties.

(b) If the bond is executed by a satisfactory surety, the

district may pay from the district construction and maintenance

fund a reasonable premium on the bond on receipt of an invoice

for the premium. If the amount of the premium is disputed as

unreasonable, a court of competent jurisdiction may determine

whether or not the premium is reasonable.

(c) The board may charge the cost of the bond premium against

the commission allowed the county judge on the sale of district

bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.078. SALE OF THE BONDS. (a) When the bonds are

registered, the county judge, under the direction of the

commissioners court, shall advertise and sell the bonds on the

best terms and for the best price possible, but for a price not

less than the sum of the amounts of the par value and the accrued

interest.

(b) The county judge shall give the money received from the sale

of a bond to the county treasurer.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.079. DISPOSITION OF UNNEEDED BONDS. With the consent

of the commissioners court made of record, bonds that are not

required for the purpose for which they were voted may be sold

and the proceeds may be used to maintain, preserve, and operate

the district hospital and to pay district debts and other

obligations.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.080. ADDITIONAL BOND ISSUE AND ELECTION. (a) The

board shall certify to the commissioners court the necessity for

an additional bond issue if:

(1) the proceeds of the original bond issue are insufficient to

complete the construction, equipment, maintenance, or purchase of

hospital buildings or land for the district; or

(2) the board decides to provide for additional construction,

equipment, maintenance, or purchase of hospital buildings or

land.

(b) The certification must state:

(1) the amount required;

(2) the purpose for the funds;

(3) the rate of interest of the proposed bonds; and

(4) the maturity date of the proposed bonds.

(c) When the commissioners court receives the certification, the

commissioners court shall order an election on the issuance of

the bonds to be held in the district on the first uniform

election date prescribed by the Election Code that allows

sufficient time to comply with other requirements of law.

(d) The sum of the amount of any outstanding bonds and the

amount of additional bonds issued under this section may not

exceed one-fourth of the assessed value of the real property in

the district, as shown by the most recent annual assessment made

for county taxation.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.081. CHANGE IN USE OF BOND PROCEEDS AFTER BOND

ISSUANCE. (a) After the issuance of bonds, the board may change

the use of the bond proceeds to include a change or improvement

to the district hospital if the change or improvement will not

increase the cost of the proposed project beyond the amount of

the authorized bonds.

(b) The board may make the change in the use of the bond

proceeds by:

(1) entering in the minutes of the board a notation of the

change; and

(2) by giving notice of the change by publication of the

notation and the page number of the board minutes on which the

notation was entered.

(c) The publication must be in English and must run for two

successive weeks in a newspaper of general circulation in the

county in which the district is located.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER F. TAXES TO PAY BONDS

Sec. 282.101. TAXES TO PAY BONDS. (a) When the bonds have been

approved by the voters at the election authorizing the levy of

taxes, the commissioners court shall impose a property tax for

the benefit of the district. The tax rate must be sufficient to

create an interest and sinking fund to pay the principal of and

interest on the bonds as they become due.

(b) After investigation and consideration of the annual report

in accordance with Section 282.061, the commissioners court shall

impose and collect taxes annually on all taxable property in the

district. The amount of tax revenue:

(1) must be sufficient to maintain, preserve, and operate the

district hospital and to pay all legal district debts and other

obligations; and

(2) may not exceed two-tenths of one percent of the annual total

assessed valuation of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 282.102. TAX ASSESSOR-COLLECTOR. (a) The county tax

assessor-collector shall levy and collect taxes for the district.

(b) After receiving a petition of at least five percent of the

qualified taxpaying voters of a created district, the

commissioners court may order an election to determine whether

the district should have a tax assessor and collector other than

the county tax assessor-collector. The commissioners court may

order the election after:

(1) the district is created; and

(2) giving notice in the manner as provided for the creation

election.

(c) If the voters determine by a two-thirds vote that the

district should have a district tax assessor-collector, the board

shall appoint a suitable person to serve in that position.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER G. CONVERSION OF DISTRICTS

Sec. 282.121. AUTHORITY TO CONVERT. A district created in

accordance with this chapter may be converted into a district

operating under Article IX, Section 9, of the Texas Constitution.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.122. CONVERSION HEARING AND ELECTION. (a) A district

may be converted under this subchapter only if the conversion is

approved by a majority of the qualified voters of the district

who vote at an election called and held for that purpose.

(b) The board by order may set a time and place to hold a

hearing on the question of converting the district under this

subchapter. The board shall set a date for the hearing that is

after the 30th day after the date on which the board issues the

order.

(c) If after the hearing the board finds that conversion of the

district would be in the best interest of the district, the board

may order an election on the question of converting the district.

(d) The election shall be held not later than the 60th day after

the date on which the election is ordered. Section 41.001(a),

Election Code, does not apply to an election ordered under this

section.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.123. BALLOT PROPOSITION. The ballot for the election

shall be printed to permit voting for or against the proposition:

"The conversion of the __________ County Public Hospital District

No. _____ (name of district) from a district operating under

Chapter 282, Health and Safety Code, to a district operating

under Article IX, Section 9, of the Texas Constitution, and the

levy of annual taxes for hospital purposes at a rate not to

exceed _______ (insert amount not to exceed 75 cents) on each

$100 valuation of all taxable property in the district."

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.124. EFFECTIVE DATE OF CONVERSION. If a majority of

the qualified voters participating in the election vote in favor

of the proposition, the conversion becomes effective on the 30th

day after the date that the election results are declared.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.125. RESPONSIBILITY OF COUNTY. On conversion of a

district under this subchapter, the county in which the district

is located shall convey or transfer to the district:

(1) money held by the county treasurer for the district under

Subchapter D, including any money in the district's construction

and maintenance fund or interest and sinking fund; and

(2) taxes levied by the county for the benefit of the district

under Subchapter F.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.126. DISTRICT RESPONSIBILITIES. On conversion of the

district under this subchapter, the district assumes any

outstanding indebtedness incurred by the county under Subchapter

E.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.

Sec. 282.127. EFFECT OF CONVERSION. (a) A district converted

under this subchapter is governed by Article IX, Section 9, of

the Texas Constitution and by Chapter 206, Acts of the 71st

Legislature, Regular Session, 1989 (Article 4494q-1, Vernon's

Texas Civil Statutes), as if it had been originally created under

that section and that Act, except that the board shall continue

to be elected as provided by this chapter.

(b) The district's identity is not affected by the conversion,

and the district is liable for all outstanding debts and

obligations assumed or incurred by the district.

(c) Notwithstanding any other provision of law, the board may

impose taxes for the entire year in which the district is

converted unless the county has imposed taxes for the benefit of

the district for that year.

Added by Acts 1991, 72nd Leg., ch. 94, Sec. 1, eff. May 15, 1991.